1.1                          A bill for an act 
  1.2             relating to economic development; creating a 
  1.3             commission to examine and make recommendations on 
  1.4             state subsidy programs and tax laws related to 
  1.5             economic development. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [MINNESOTA CORPORATE SUBSIDY REFORM 
  1.8   COMMISSION.] 
  1.9      Subdivision 1.  [ESTABLISHMENT.] (a) A bipartisan Minnesota 
  1.10  corporate subsidy reform commission is created. 
  1.11     (b) The commission shall evaluate selected subsidy programs 
  1.12  and tax laws for the following: 
  1.13     (1) public purpose; including jobs, wages, and other 
  1.14  economic development benefits; 
  1.15     (2) criterion for award; and 
  1.16     (3) accountability and enforcement mechanisms used to 
  1.17  facilitate the achievement of the public purpose. 
  1.18     (c) The commission shall examine whether these subsidy 
  1.19  programs or tax laws impede competition or provide preferential 
  1.20  treatment to private enterprises. 
  1.21     Subd. 2.  [SCOPE.] The commission shall review subsidy 
  1.22  programs and tax laws including: 
  1.23     (1) tax expenditures and other tax concessions; 
  1.24     (2) direct spending and loans; 
  1.25     (3) public spending that indirectly affects the economic 
  2.1   development of the region; and 
  2.2      (4) regulation of private activity for the purpose of 
  2.3   economic development. 
  2.4      Subd. 3.  [REPORT.] The commission shall submit a report to 
  2.5   the legislature by December 15, 1997.  Included within the 
  2.6   report, the commission may suggest changes in the public 
  2.7   purpose, criterion for award, administration, accountability and 
  2.8   enforcement mechanisms, and funding of the subsidy programs.  
  2.9   The commission may also suggest changes in the applicable tax 
  2.10  laws. 
  2.11     Subd. 4.  [MEMBERSHIP.] The commission consists of 19 
  2.12  members.  The speaker of the house shall appoint five members, 
  2.13  including at least two members of the minority caucus.  The 
  2.14  commissioner of revenue shall approve a member from its 
  2.15  department.  The senate subcommittee on committees shall appoint 
  2.16  five members, including at least two members of a minority 
  2.17  caucus.  The commissioner of trade and economic development 
  2.18  shall appoint one member from its department.  These members 
  2.19  shall appoint seven members from the general public, of which at 
  2.20  most two members directly receive some type of public assistance 
  2.21  described in subdivision 2.  No public member may be a 
  2.22  registered lobbyist.  
  2.23     Subd. 5.  [STAFF ASSISTANCE.] House and senate employees 
  2.24  must staff the commission. 
  2.25     Subd. 6.  [NOTIFICATION.] In accordance with Minnesota 
  2.26  Statutes, section 471.705, the public may attend any meeting 
  2.27  held by the commission. 
  2.28     Sec. 2.  [SUNSET.] 
  2.29     This section expires July 1, 1998.