1.1 	A bill for an act
1.2 	relating to economic development; encouraging job creation; allowing tax credits 
1.3 	for small business investment and historic structure rehabilitation; expanding 
1.4 	the use of special assessment for certain energy improvements; expanding 
1.5 	the permitted use of tax increment financing for certain projects; repealing 
1.6 	restrictions on city of Bloomington's development of the Mall of America site; 
1.7 	providing for tax system and debt collection management; establishing voluntary 
1.8 	energy improvement financing program for local governments, transportation 
1.9 	infrastructure loans, qualified green building and sustainable design projects, 
1.10 	a create automotive recovery zone, and tax increment financing districts; 
1.11 	modifying apprenticeship training facility property tax exemption and minerals 
1.12 	distributions; appropriating money;amending Minnesota Statutes 2008, sections 
1.13 	13.4967, by adding a subdivision; 297I.20, by adding a subdivision; 429.021, 
1.14 	subdivision 1; 429.101, subdivision 1; 446A.085, by adding a subdivision; 
1.15 	469.174, by adding a subdivision; 469.175, by adding a subdivision; 469.176, 
1.16 	subdivisions 1b, 4c, by adding subdivisions; 469.310, subdivisions 6, 11, by 
1.17 	adding subdivisions; 469.312, subdivisions 1, 3; 469.314, subdivisions 1, 4; 
1.18 	469.315; Minnesota Statutes 2009 Supplement, sections 272.02, subdivision 86; 
1.19 	298.294; 469.153, subdivision 2; 469.312, subdivision 5; Laws 1986, chapter 
1.20 	391, section 1; Laws 1995, chapter 264, article 5, sections 44, subdivision 4, 
1.21 	as amended; 45, subdivision 1, as amended; Laws 2008, chapter 366, article 
1.22 	5, sections 28, subdivisions 1, 2; 29, subdivisions 1, 2, 4; Laws 2009, chapter 
1.23 	78, article 7, section 2; proposing coding for new law in Minnesota Statutes, 
1.24 	chapters 116J; 216C; 290; 469; repealing Laws 1996, chapter 464, article 1, 
1.25 	section 8, subdivision 5.
1.26 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.27 	Section 1. Minnesota Statutes 2008, section 13.4967, is amended by adding a 
1.28 	subdivision to read:
1.29 		Subd. 8.SMALL BUSINESS INVESTMENT TAX CREDIT. Data related to 
1.30 	small business investment tax credit certifications and certification of qualified small 
1.31 	businesses, qualified investors, and qualified funds, is classified in section 116J.8737.

1.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

2.1 	Sec. 2. [116J.8737] SMALL BUSINESS INVESTMENT TAX CREDIT.
2.2 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms 
2.3 	have the meanings given.
2.4 	(b) "Qualified small business" means a business that has been certified by the 
2.5 	commissioner under subdivision 2.
2.6 	(c) "Qualified investor" means an investor who has been certified by the 
2.7 	commissioner under subdivision 3.
2.8 	(d) "Qualified fund" means a pooled angel investment network fund that has been 
2.9 	certified by the commissioner under subdivision 4.
2.10 	(e) "Qualified investment" means a cash investment in a qualified small business 
2.11 	of a minimum of:
2.12 	(1) $10,000 in a calendar year by a qualified investor; or
2.13 	(2) $30,000 in a calendar year by a qualified fund. 
2.14 	A qualified investment must be made in exchange for common stock, a partnership 
2.15 	or membership interest, preferred stock, debt with mandatory conversion to equity, or an 
2.16 	equivalent ownership interest as determined by the commissioner.
2.17 	(f) "Family" means a family member within the meaning of the Internal Revenue 
2.18 	Code, section 267(c)(4).
2.19 	(g) "Pass-through entity" means a corporation that for the applicable taxable year is 
2.20 	treated as an S corporation or a general partnership, limited partnership, limited liability 
2.21 	partnership, trust, or limited liability company and which for the applicable taxable year is 
2.22 	not taxed as a corporation under chapter 290.
2.23 		Subd. 2.Certification of qualified small businesses. (a) Businesses may apply 
2.24 	to the commissioner for certification as a qualified small business for a calendar year. 
2.25 	The application must be in the form and be made under the procedures specified by the 
2.26 	commissioner, accompanied by an application fee of $150. Application fees are deposited 
2.27 	in the small business investment tax credit administration account in the special revenue 
2.28 	fund. The application for certification for 2010 must be made available on the department's 
2.29 	Web site by August 1, 2010. Applications for subsequent years' certification must be made 
2.30 	available on the department's Web site by November 1 of the preceding year. 
2.31 	(b) Within 30 days of receiving an application for certification under this subdivision, 
2.32 	the commissioner must either certify the business as satisfying the conditions required of a 
2.33 	qualified small business, request additional information from the business, or reject the 
2.34 	application for certification. If the commissioner requests additional information from the 
2.35 	business, the commissioner must either certify the business or reject the application within 
2.36 	30 days of receiving the additional information. If the commissioner neither certifies the 
3.1 	business nor rejects the application within 30 days of receiving the original application or 
3.2 	within 30 days of receiving the additional information requested, whichever is later, then 
3.3 	the application is deemed rejected, and the commissioner must refund the $150 application 
3.4 	fee. A business that applies for certification and is rejected may reapply.
3.5 	(c) To receive certification, a business must satisfy all of the following conditions:
3.6 	(1) the business has its headquarters in Minnesota;
3.7 	(2) at least 51 percent of the business's employees are employed in Minnesota, and 
3.8 	51 percent of the business's total payroll is paid or incurred in the state;
3.9 	(3) the business is engaged in, or is committed to engage in, innovation in Minnesota 
3.10 	in one of the following as its primary business activity:
3.11 	(i) using proprietary technology to add value to a product, process, or service in a 
3.12 	qualified high-technology field;
3.13 	(ii) researching or developing a proprietary product, process, or service in a qualified 
3.14 	high-technology field; or
3.15 	(iii) researching, developing, or producing a new proprietary technology for use in 
3.16 	the fields of tourism, forestry, mining, manufacturing, or transportation.
3.17 	(4) other than the activities specifically listed in clause (3), the business is not 
3.18 	engaged in real estate development, insurance, banking, lending, lobbying, political 
3.19 	consulting, information technology consulting, wholesale or retail trade, leisure, 
3.20 	hospitality, transportation, construction, ethanol production from corn, or professional 
3.21 	services provided by attorneys, accountants, business consultants, physicians, or health 
3.22 	care consultants;
3.23 	(5) the business has fewer than 25 employees; 
3.24 	(6) the business must pay its employees annual wages of at least 175 percent of the 
3.25 	federal poverty guideline for the year for a family of four, except that this requirement 
3.26 	must be reduced proportionately for employees who work less than full-time, and does not 
3.27 	apply to an executive, officer, or member of the board of the business, or to any employee 
3.28 	who owns, controls, or holds power to vote more than 20 percent of the outstanding 
3.29 	securities of the business;
3.30 	(7) the business has not been in operation for more than ten years; 
3.31 	(8) the business has not previously received private equity investments of more 
3.32 	than $2,000,000; and
3.33 	(9) the business is not an entity disqualified under section 80A.50, paragraph (b), 
3.34 	clause (3).
4.1 	(d) In applying the limit under paragraph (c), clause (5), the employees   in all 
4.2 	members of the unitary business, as defined in section 290.17, subdivision 4, must be 
4.3 	included.
4.4 	(e) In order for a qualified investment in a business to be eligible for tax credits, the 
4.5 	business must have applied for and received certification for the calendar year in which 
4.6 	the investment was made prior to the date on which the qualified investment was made.
4.7 	(f) The commissioner must maintain a list of businesses certified under this 
4.8 	subdivision for the calendar year and make the list accessible to the public on the 
4.9 	department's Web site.
4.10 	(g) For purposes of this subdivision, the following terms have the meanings given:
4.11 	(1) "qualified high-technology field" includes aerospace, agricultural processing, 
4.12 	renewable energy, energy efficiency and conservation, environmental engineering, food 
4.13 	technology, cellulosic ethanol, information technology, materials science technology, 
4.14 	nanotechnology, telecommunications, biotechnology, medical device products, 
4.15 	pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar 
4.16 	fields; and
4.17 	(2) "proprietary technology" means the technical innovations that are unique and 
4.18 	legally owned or licensed by a business and includes, without limitation, those innovations 
4.19 	that are patented, patent pending, a subject of trade secrets, or copyrighted.
4.20 		Subd. 3.Certification of qualified investors. (a) Investors may apply to the 
4.21 	commissioner for certification as a qualified investor for a taxable year. The application 
4.22 	must be in the form and be made under the procedures specified by the commissioner, 
4.23 	accompanied by an application fee of $350. Application fees are deposited in the small 
4.24 	business investment tax credit administration account in the special revenue fund. The 
4.25 	application for certification for 2010 must be made available on the department's Web 
4.26 	site by August 1, 2010. Applications for subsequent years' certification must be made 
4.27 	available on the department's Web site by November 1 of the preceding year.
4.28 	(b) Within 30 days of receiving an application for certification under this subdivision, 
4.29 	the commissioner must either certify the investor as satisfying the conditions required 
4.30 	of a qualified investor, request additional information from the investor, or reject the 
4.31 	application for certification. If the commissioner requests additional information from the 
4.32 	investor, the commissioner must either certify the investor or reject the application within 
4.33 	30 days of receiving the additional information. If the commissioner neither certifies the 
4.34 	investor nor rejects the application within 30 days of receiving the original application or 
4.35 	within 30 days of receiving the additional information requested, whichever is later, then 
5.1 	the application is deemed rejected, and the commissioner must refund the $350 application 
5.2 	fee. An investor who applies for certification and is rejected may reapply.
5.3 	(c) To receive certification, an investor must certify to the commissioner that the 
5.4 	investor will only invest in a transaction that is exempt under section 80A.46, clause (13) 
5.5 	or (14), or in a security registered under section 80A.50, paragraph (b).
5.6 	(d) In order for a qualified investment in a qualified small business to be eligible 
5.7 	for tax credits, a qualified investor who makes the investment must have applied for 
5.8 	and received certification for the calendar year prior to making the qualified investment, 
5.9 	except in the case of an investor who is not an accredited investor, within the meaning of 
5.10 	Regulation D of the Securities and Exchange Commission, Code of Federal Regulations, 
5.11 	title 17, section 230.501, paragraph (a), application for certification may be made within 
5.12 	30 days after making the qualified investment.
5.13 		Subd. 4.Certification of qualified funds. (a) A pass-through entity may apply to 
5.14 	the commissioner for certification as a qualified fund for a calendar year. The application 
5.15 	must be in the form and be made under the procedures specified by the commissioner, 
5.16 	accompanied by an application fee of $1,000. Application fees are deposited in the small 
5.17 	business investment tax credit administration account in the special revenue fund. The 
5.18 	application for certification for 2010 of qualified funds must be made available on the 
5.19 	department's Web site by August 1, 2010. Applications for subsequent years' certification 
5.20 	must be made available by November 1 of the preceding year.
5.21 	(b) Within 30 days of receiving an application for certification under this subdivision, 
5.22 	the commissioner must either certify the fund as satisfying the conditions required of a 
5.23 	qualified fund, request additional information from the fund, or reject the application 
5.24 	for certification. If the commissioner requests additional information from the fund, 
5.25 	the commissioner must either certify the fund or reject the application within 30 days 
5.26 	of receiving the additional information. If the commissioner neither certifies the fund 
5.27 	nor rejects the application within 30 days of receiving the original application or within 
5.28 	30 days of receiving the additional information requested, whichever is later, then the 
5.29 	application is deemed rejected, and the commissioner must refund the $1,000 application 
5.30 	fee. A fund that applies for certification and is rejected may reapply.
5.31 	(c) To receive certification, a fund must:
5.32 	(1) invest or intend to invest in qualified small businesses;
5.33 	(2) be organized as a pass-through entity; and
5.34 	(3) have at least three separate investors, all of whom satisfy the conditions in 
5.35 	subdivision 3, paragraph (c).
6.1 	(d) Investments in the fund may consist of equity investments or notes that pay 
6.2 	interest or other fixed amounts, or any combination of both.
6.3 	(e) In order for a qualified investment in a qualified small business to be eligible for 
6.4 	tax credits, a qualified fund that makes the investment must have applied for and received 
6.5 	certification for the calendar year prior to making the qualified investment.
6.6 		Subd. 5.Credit allowed. (a) A qualified investor or qualified fund is eligible for 
6.7 	a credit equal to 25 percent of the qualified investment in a qualified small business. 
6.8 	Investments made by a pass-through entity qualify for a credit only if the entity is a 
6.9 	qualified fund. The commissioner must not allocate more than $2,500,000 in credits to 
6.10 	qualified taxpayers or qualified funds for taxable years beginning after December 31, 
6.11 	2009, and before January 1, 2011, and must not allocate more than $5,000,000 in credits 
6.12 	per year for taxable years beginning after December 31, 2010, and before January 1, 
6.13 	2016. Any portion of a taxable year's credits that is not allocated by the commissioner 
6.14 	does not cancel and may be carried forward to subsequent taxable years until all credits 
6.15 	have been allocated. 
6.16 	(b) The commissioner may not allocate more than a total maximum amount in credits 
6.17 	for a taxable year to a qualified investor for the investor's cumulative qualified investments 
6.18 	as an individual qualified investor and as an investor in a qualified fund; for married 
6.19 	couples filing joint returns the maximum is $250,000, and for all other filers the maximum 
6.20 	is $125,000. The commissioner may not allocate more than a total of $1,000,000 in credits 
6.21 	over all taxable years for qualified investments in any one qualified small business.
6.22 	(c) The commissioner may not allocate a credit to a qualified investor either as an 
6.23 	individual qualified investor or as an investor in a qualified fund if the investor receives 
6.24 	more than 50 percent of the investor's gross annual income from the qualified small 
6.25 	business in which the qualified investment is proposed. A member of the family of an 
6.26 	individual disqualified by this paragraph is not eligible for a credit under this section. For 
6.27 	a married couple filing a joint return, the limitations in this paragraph apply collectively 
6.28 	to the investor and spouse. For purposes of determining the ownership interest of an 
6.29 	investor under this paragraph, the rules under section 267(c) and 267(e) of the Internal 
6.30 	Revenue Code apply.
6.31 	(d) Applications for tax credits for 2010 must be made available on the department's 
6.32 	Web site by September 1, 2010, and the department must begin accepting applications 
6.33 	by September 1, 2010. Applications for subsequent years must be made available by 
6.34 	November 1 of the preceding year.
6.35 	(e) Qualified investors and qualified funds must apply to the commissioner for tax 
6.36 	credits. Tax credits must be allocated to qualified investors or qualified funds in the order 
7.1 	that the tax credit request applications are filed with the department. The commissioner 
7.2 	must approve or reject tax credit request applications within 15 days of receiving the 
7.3 	application. The investment specified in the application must be made within 60 days of 
7.4 	the allocation of the credits. If the investment is not made within 60 days, the credit 
7.5 	allocation is canceled and available for reallocation. A qualified investor or qualified fund 
7.6 	that fails to invest as specified in the application, within 60 days of allocation of the 
7.7 	credits, must notify the commissioner of the failure to invest within five business days of 
7.8 	the expiration of the 60-day investment period.
7.9 	(f) All tax credit request applications filed with the department on the same day must 
7.10 	be treated as having been filed contemporaneously. If two or more qualified investors or 
7.11 	qualified funds file tax credit request applications on the same day, and the aggregate 
7.12 	amount of credit allocation claims exceeds the aggregate limit of credits under this section 
7.13 	or the lesser amount of credits that remain unallocated on that day, then the credits must 
7.14 	be allocated among the qualified investors or qualified funds who filed on that day on a 
7.15 	pro rata basis with respect to the amounts claimed. The pro rata allocation for any one 
7.16 	qualified investor or qualified fund is the product obtained by multiplying a fraction, 
7.17 	the numerator of which is the amount of the credit allocation claim filed on behalf of 
7.18 	a qualified investor and the denominator of which is the total of all credit allocation 
7.19 	claims filed on behalf of all applicants on that day, by the amount of credits that remain 
7.20 	unallocated on that day for the taxable year.
7.21 	(g) A qualified investor or qualified fund, or a qualified small business acting on their 
7.22 	behalf, must notify the commissioner when an investment for which credits were allocated 
7.23 	has been made, and the taxable year in which the investment was made. A qualified fund 
7.24 	must also provide the commissioner with a statement indicating the amount invested by 
7.25 	each investor in the qualified fund based on each investor's share of the assets of the 
7.26 	qualified fund at the time of the qualified investment. After receiving notification that the 
7.27 	investment was made, the commissioner must issue credit certificates for the taxable year 
7.28 	in which the investment was made to the qualified investor or, for an investment made by 
7.29 	a qualified fund, to each qualified investor who is an investor in the fund. The certificate 
7.30 	must state that the credit is subject to revocation if the qualified investor or qualified 
7.31 	fund does not hold the investment in the qualified small business for at least three years, 
7.32 	consisting of the calendar year in which the investment was made and the two following 
7.33 	years. The three-year holding period does not apply if:
7.34 	(1) the investment by the qualified investor or qualified fund becomes worthless 
7.35 	before the end of the three-year period; 
8.1 	(2) 80 percent or more of the assets of the qualified small business is sold before 
8.2 	the end of the three-year period;
8.3 	(3) the qualified small business is sold before the end of the three-year period; or
8.4 	(4) the qualified small business's common stock begins trading on a public exchange 
8.5 	before the end of the three-year period.
8.6 	(h) The commissioner must notify the commissioner of revenue of credit certificates 
8.7 	issued under this section.
8.8 		Subd. 6.Annual reports. (a) By February 1 of each year each qualified small 
8.9 	business that received an investment that qualified for a credit, and each qualified investor 
8.10 	and qualified fund that made an investment that qualified for a credit, must submit an 
8.11 	annual report to the commissioner and pay a filing fee of $100 if required under this 
8.12 	subdivision. Each qualified investor and qualified fund must submit reports for three 
8.13 	years following each year in which it made an investment that qualified for a credit, and 
8.14 	each qualified small business must submit reports for five years following the year in 
8.15 	which it received an investment qualifying for a credit. Reports must be made in the form 
8.16 	required by the commissioner. All filing fees collected are deposited in the small business 
8.17 	investment tax credit administration account in the special revenue fund.
8.18 	(b) A report from a qualified small business must certify that the business satisfies 
8.19 	the following requirements:
8.20 	(1) the business has its headquarters in Minnesota;
8.21 	(2) at least 51 percent of the business's employees are employed in Minnesota, and 
8.22 	51 percent of the business's total payroll is paid or incurred in the state;
8.23 	(3) that the business is engaged in, or is committed to engage in, innovation in 
8.24 	Minnesota as defined under subdivision 2; and
8.25 	(4) that the business meets the payroll requirements in subdivision 2, paragraph 
8.26 	(c), clause (6).
8.27 	(c) Reports from qualified investors must certify that the investor remains invested 
8.28 	in the qualified small business as required by subdivision 5, paragraph (d).
8.29 	(d) Reports from qualified funds must certify that the fund remains invested in the 
8.30 	qualified small business as required by subdivision 5, paragraph (d).
8.31 	(e) A qualified small business that ceases all operations and becomes insolvent 
8.32 	must file a final an annual report in the form required by the commissioner documenting 
8.33 	its insolvency. In following years the business is exempt from the annual reporting 
8.34 	requirement, the report filing fee, and the fine for failure to file a report.
8.35 	(f) A qualified small business, qualified investor, or qualified fund that fails to file an 
8.36 	annual report as required under this subdivision is subject to a $500 fine.
9.1 		Subd. 7.Revocation of credits. (a) If the commissioner determines that a 
9.2 	qualified investor or qualified fund did not meet the three-year holding period required in 
9.3 	subdivision 5, paragraph (d), any credit allocated and certified to the investor or fund is 
9.4 	revoked and must be repaid by the investor.
9.5 	(b) If the commissioner determines that a business did not meet the employment and 
9.6 	payroll requirements in subdivision 2, paragraph (c), clause (2), in any of the five calendar 
9.7 	years following the year in which an investment in the business that qualified for a tax 
9.8 	credit under this section was made, the business must repay the following percentage of 
9.9 	the credits allowed for qualified investments in the business:

9.10
9.11	Year following the year in which the investment 
was made:
	Percentage of credit required to be 
repaid:
	
9.12	First
	100%
	
9.13	Second
	80%
	
9.14	Third
	60%
	
9.15	Fourth
	40%
	
9.16	Fifth
	20%
	
9.17	Sixth and later
	0
	
9.18 	(c) The commissioner must notify the commissioner of revenue of every credit 
9.19 	revoked and subject to full or partial repayment under this section.
9.20 	(d) For the repayment of credits allowed under this section and section 290.0692, 
9.21 	a qualified small business, qualified investor, or investor in a qualified fund must file an 
9.22 	amended return with the commissioner of revenue and pay any amounts required to be 
9.23 	repaid within 30 days after becoming subject to repayment under this section.
9.24 		Subd. 8.Data privacy. (a) Data contained in an application submitted to the 
9.25 	commissioner under subdivision 2, 3, or 4 of this section is nonpublic data, as defined in 
9.26 	section 13.02, subdivision 9, except that the following data items are public:
9.27 	(1) the name of a qualified small business upon approval of the application and 
9.28 	certification by the commissioner under subdivision 2;
9.29 	(2) the name of a qualified investor upon approval of the application and certification 
9.30 	by the commissioner under subdivision 3;
9.31 	(3) the name of a qualified fund upon approval of the application and certification 
9.32 	by the commissioner under subdivision 4;
9.33 	(4) for credit certificates issued under subdivision 5, the amount of the credit 
9.34 	certificate issued, amount of the qualifying investment, the name of the qualifying investor 
9.35 	or qualifying fund that received the certificate, and the name of the qualifying small 
9.36 	business in which the qualifying investment was made;
10.1 	(5) for credits revoked under subdivision 7, paragraph (a), the amount revoked and 
10.2 	the name of the qualified investor or qualified fund; and
10.3 	(6) for credits revoked under subdivision 7, paragraphs (b) and (c), the amount 
10.4 	revoked and the name of the qualified small business.
10.5 	(b) The following data, including data classified as nonpublic, must be provided to 
10.6 	the consultant for use in conducting the program evaluation under subdivision 10:
10.7 	(1) the commissioner of employment and economic development shall provide data 
10.8 	contained in an application for certification received from a qualified small business, 
10.9 	qualified investor, or qualified fund, and any annual reporting information received on a 
10.10 	qualified small business, qualified investor, or qualified fund; and
10.11 	(2) the commissioner of revenue shall provide data contained in any applicable tax 
10.12 	returns of a qualified small business, qualified investor, or qualified fund.
10.13 		Subd. 9.Report to legislature. Beginning in 2011, the commissioner must 
10.14 	annually report by March 15 to the chairs and ranking minority members of the legislative 
10.15 	committees having jurisdiction over taxes and economic development in the senate and 
10.16 	the house of representatives, in compliance with Minnesota Statutes, sections 3.195 and 
10.17 	3.197, on the tax credits issued under this section. The report must include:
10.18 	(1) the number and amount of the credits issued;
10.19 	(2) the recipients of the credits;
10.20 	(3) for each qualified small business, its location, line of business, and if it received 
10.21 	an investment resulting in certification of tax credits;
10.22 	(4) the total amount of investment in each qualified small business resulting in 
10.23 	certification of tax credits;
10.24 	(5) for each qualified small business that received investments resulting in tax 
10.25 	credits, the total amount of additional investment that did not qualify for the tax credit;
10.26 	(6) the number and amount of credits revoked under subdivision 7;
10.27 	(7) the number and amount of credits that are no longer subject to the three-year 
10.28 	holding period because of the exceptions under subdivision 5, paragraph (g), clauses 
10.29 	(1) to (4); and
10.30 	(8) any other information relevant to evaluating the effect of these credits.
10.31 		Subd. 10.Program evaluation. (a) No later than December 31, 2012, the 
10.32 	commissioner of revenue, after consultation with the commissioners of management and 
10.33 	budget and employment and economic development, shall contract with a qualified outside 
10.34 	entity or individual to evaluate the effects of the small business investment tax credit on 
10.35 	the Minnesota economy. The contractor must not be associated with, employed by, or 
10.36 	have contracts with the entities involved in or associated with the venture capital, angel 
11.1 	investment, life science, or high technology industries. The program evaluation must be 
11.2 	completed by January 2014, and provided to the chairs and ranking minority members of 
11.3 	the legislative commissions having jurisdiction over taxes and economic development in 
11.4 	the senate and the house of representatives, in compliance with sections 3.195 and 3.197. 
11.5 	The program evaluation must include, in addition to any other matters the commissioner 
11.6 	considers relevant to evaluating the effectiveness of the credit, analysis of:
11.7 	(1) the effect of the credit on the level of equity investment in qualified small 
11.8 	businesses in Minnesota, including investments by angel investors, venture capital firms, 
11.9 	and other sources of equity capital for startup businesses;
11.10 	(2) the effect of the credit, if any, on investment in firms other than qualified small 
11.11 	businesses;
11.12 	(3) the amount of economic activity generated by qualified small businesses that 
11.13 	received investments that qualified for the credit;
11.14 	(4) the incremental change in Minnesota state and local taxes paid as a result of 
11.15 	the allowance of the credit; and
11.16 	(5) the net benefit to the Minnesota economy of allowance of the credit relative to 
11.17 	alternative uses of the resources, such as increasing the research and development credit 
11.18 	or reducing the corporate franchise tax rate.
11.19 	(b) $100,000 is appropriated to the commissioner of revenue from the general fund 
11.20 	for fiscal year 2013 for the purposes of this evaluation. Any unspent amount of this 
11.21 	appropriation carries over to fiscal year 2014. The allocation of the credit in subdivision 5 
11.22 	for taxable year 2013 is reduced by $100,000. This appropriation may be used to hire a 
11.23 	consultant or consultants to prepare all or part of the study.
11.24 	(c) To the extent necessary to complete the program evaluation, and as provided 
11.25 	in subdivision 8, the consultant or consultants may request from the commissioner of 
11.26 	revenue tax return information of taxpayers who are qualified small businesses, qualified 
11.27 	investors, and qualified funds. To the extent necessary to complete the program evaluation, 
11.28 	the consultant or consultants may request from the commissioner of employment and 
11.29 	economic development applications for certification and annual reports made by qualified 
11.30 	small businesses, qualified investors, and qualified funds.
11.31 	The consultant or consultants may not disclose or release any data received under 
11.32 	this section except as permitted for a government entity under chapter 13, and is subject to 
11.33 	the penalties and remedies provided in law for violation of that chapter.
11.34 		Subd. 11.Appropriations. Amounts in the small business investment tax credit 
11.35 	administration account in the special revenue fund are appropriated to the commissioner of 
11.36 	employment and economic development for costs associated with certifying applications 
12.1 	and refunding application fees as provided in subdivisions 2, 3, and 4, and for personnel 
12.2 	and administrative expenses related to administering the small business investment tax 
12.3 	credit in this section.
12.4 		Subd. 12.Sunset. This section expires for taxable years beginning after December 
12.5 	31, 2015, except that reporting requirements under subdivision 6 and revocation of credits 
12.6 	under subdivision 7 remain in effect through 2017 for qualified investors and qualified 
12.7 	funds, and through 2019 for qualified small businesses, reporting requirements under 
12.8 	subdivision 9 remain in effect through 2020, and the appropriation in subdivision 11 
12.9 	remains in effect through 2019.

12.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

12.11 	Sec. 3. [216C.435] DEFINITIONS.
12.12 		Subdivision 1.Scope. For the purposes of this section and section 216C.436, the 
12.13 	terms defined in this section have the meanings given them.
12.14 		Subd. 2.City. "City" means a home rule charter or statutory city.
12.15 		Subd. 3.Local government. "Local government" means a city, county, or town.
12.16 		Subd. 4.Energy audit. "Energy audit" means a formal evaluation of the energy 
12.17 	consumption of a building by a certified energy auditor, whose certification is approved by 
12.18 	the commissioner, for the purpose of identifying appropriate energy improvements that 
12.19 	could be made to the building and including an estimate of the length of time a specific 
12.20 	energy improvement will take to repay its purchase and installation costs, based on the 
12.21 	amount of energy saved and estimated future energy prices.
12.22 		Subd. 5.Energy improvement. "Energy improvement" means:
12.23 	(1) any renovation or retrofitting of a building to improve energy efficiency that 
12.24 	is permanently affixed to the property and that results in a net reduction in energy 
12.25 	consumption without altering the principal source of energy;
12.26 	(2) permanent installation of new or upgraded electrical circuits and related 
12.27 	equipment to enable electrical vehicle charging; or
12.28 	(3) a renewable energy system attached to, installed within, or proximate to a 
12.29 	building that generates electrical or thermal energy from a renewable energy source.
12.30 		Subd. 6.Qualifying real property. "Qualifying real property" means a 
12.31 	single-family or multifamily residential dwelling, or  a commercial or industrial building, 
12.32 	that the city has determined, after review of an energy audit or renewable energy system 
12.33 	feasibility study, can be benefited by installation of energy improvements.
12.34 		Subd. 7.Renewable energy. "Renewable energy" means energy produced by 
12.35 	means of solar thermal, solar photovoltaic,  wind, or geothermal resources.
13.1 		Subd. 8.Renewable energy system feasibility study. "Renewable energy system 
13.2 	feasibility study" means a written study, conducted by a contractor trained to perform that 
13.3 	analysis, for the purpose of determining the feasibility of installing a renewable energy 
13.4 	system in  a building, including an estimate of the length of time a specific renewable 
13.5 	energy system will take to repay its purchase and installation costs, based on the amount of 
13.6 	energy saved and estimated future energy prices.  For a geothermal energy improvement, 
13.7 	the feasibility study must calculate net savings in terms of nongeothermal energy and costs.
13.8 		Subd. 9.Solar thermal. "Solar thermal" has the meaning given to "qualifying solar 
13.9 	thermal project" in section 216B.2411, subdivision 2, paragraph (e).
13.10 		Subd. 10.Solar photovoltaic. "Solar photovoltaic" has the meaning given in 
13.11 	section 216C.06, subdivision 16, and must meet the requirements of section 216C.25.

13.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

13.13 	Sec. 4. [216C.436] VOLUNTARY ENERGY IMPROVEMENTS FINANCING 
13.14 	PROGRAM FOR LOCAL GOVERNMENTS.
13.15 		Subdivision 1.Program authority. A local government may establish a program 
13.16 	to finance energy improvements to enable owners of qualifying real property to pay for 
13.17 	cost-effective energy improvements to the qualifying real property with the net proceeds 
13.18 	and interest earnings of revenue bonds authorized in this section. A local government may 
13.19 	limit the number of qualifying real properties for which a property owner may receive 
13.20 	program financing.
13.21 		Subd. 2.Program requirements. A financing program must:
13.22 	(1) impose requirements and conditions on financing arrangements to ensure timely 
13.23 	repayment;
13.24 	(2) require an energy audit or renewable energy system feasibility study to be 
13.25 	conducted on the qualifying real property and reviewed by the local government prior to 
13.26 	approval of the financing; 
13.27 	(3) require the inspection of all installations and a performance verification of at 
13.28 	least ten percent of the energy improvements financed by the program; 
13.29 	(4) require that all cost-effective energy improvements be made to a qualifying 
13.30 	real property prior to, or in conjunction with, an applicant's repayment of financing for 
13.31 	energy improvements for that property;
13.32 	(5) have energy improvements financed by the program performed by licensed 
13.33 	contractors as required by chapter 326B or other law or ordinance;
13.34 	(6) require disclosures to borrowers by the local government of the risks involved in 
13.35 	borrowing, including the risk of foreclosure if a tax delinquency results from a default;
14.1 	(7) provide financing only to those who demonstrate an ability to repay;
14.2 	(8) not provide financing for a qualifying real property in which the owner is not 
14.3 	current on mortgage or real property tax payments;
14.4 	(9) require a petition by all owners of the qualifying real property requesting 
14.5 	collections of repayments as a special assessment under section 429.101;
14.6 	(10) provide that payments and assessments are not accelerated due to a default and 
14.7 	that a tax delinquency exists only for assessments not paid when due; and
14.8 	(11) that liability for special assessments related to the financing runs with the 
14.9 	qualifying real property.
14.10 		Subd. 3.Retail and end use prohibited. Energy generated by an energy 
14.11 	improvement may not be sold, transmitted, or distributed at retail and may not be provided 
14.12 	for end use from an off-site facility of the electrical energy. On-site generation is allowed 
14.13 	to the extent provided for in section 216B.1611.
14.14 	This section does not modify the exclusive service territories or exclusive right to 
14.15 	serve as provided in sections 216B.37 to 216B.43.
14.16 		Subd. 4.Financing terms. Financing provided under this section must have:
14.17 	(1) a term not to exceed the weighted average of the useful life of the energy 
14.18 	improvements installed, as determined by the local government, but in no event may 
14.19 	a term exceed 20 years;
14.20 	(2) a principal amount not to exceed the lesser of ten percent of the assessed value 
14.21 	of the real property on which the improvements are to be installed or the actual cost of 
14.22 	installing the energy improvements, including the costs of necessary equipment, materials, 
14.23 	and labor, the costs of each related energy audit or renewable energy system feasibility 
14.24 	study, and the cost of verification of installation; and
14.25 	(3) an interest rate sufficient to pay the financing costs of the program, including the 
14.26 	issuance of bonds and any financing delinquencies.
14.27 		Subd. 5.Coordination with other programs. A financing program must include 
14.28 	cooperation and coordination with the conservation improvement activities of the utility 
14.29 	serving the qualifying real property and other public and private energy improvement 
14.30 	programs.
14.31 		Subd. 6.Certificate of participation. Upon completion of a project, a local 
14.32 	government shall provide a borrower with a certificate stating participation in the program 
14.33 	and what energy improvements have been made with financing program proceeds.
14.34 		Subd. 7.Repayment. A local government financing an energy improvement 
14.35 	under this section must: 
14.36 	(1) secure payment with a lien against the benefited qualifying real property; and
15.1 	(2) collect repayments as a special assessment as provided for in section 429.101 
15.2 	or by charter.
15.3 		Subd. 8.Bond issuance; repayment. (a) A local government may issue revenue 
15.4 	bonds as provided in chapter 475 for the purposes of this section. 
15.5 	(b) The bonds must be payable as to both principal and interest solely from the 
15.6 	revenues from the assessments established in subdivision 6. 
15.7 	(c) No holder of bonds issued under this subdivision may compel any exercise of the 
15.8 	taxing power of the local government that issued the bonds to pay principal or interest on 
15.9 	the bonds.  Bonds issued under this subdivision are not a debt or obligation of the local 
15.10 	government that issued them, nor is the payment of the bonds enforceable out of any 
15.11 	money other than the revenue pledged to the payment of the bonds.

15.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

15.13 	Sec. 5. Minnesota Statutes 2009 Supplement, section 272.02, subdivision 86, is 
15.14 	amended to read:
15.15 		Subd. 86.Apprenticeship training facilities. All or a portion of a building used 
15.16 	exclusively for a state-approved apprenticeship program through the Department of Labor 
15.17 	and Industry is exempt if:
15.18 	(1) it is owned by a nonprofit organization or a nonprofit trust, and operated by a 
15.19 	nonprofit organization or a nonprofit trust,;
15.20 	(2) the program participants receive no compensation,; and
15.21 	(3) it is located:
15.22 	(i) in the Minneapolis and St. Paul standard metropolitan statistical area as 
15.23 	determined by the 2000 federal census or;
15.24 	(ii) in a city outside the Minneapolis and St. Paul standard metropolitan statistical 
15.25 	area that has a population of 7,500 or greater according to the most recent federal census; or
15.26 	(iii) in a township that has a population greater than 2,000 but less than 3,000 
15.27 	determined by the 2000 federal census and the building was previously used by a school 
15.28 	and was exempt for taxes payable in 2010. 
15.29 	Use of the property for advanced skills training of incumbent workers does not 
15.30 	disqualify the property for the exemption under this subdivision. This exemption includes 
15.31 	up to five acres of the land on which the building is located and associated parking areas 
15.32 	on that land, except that if the building meets the requirements of clause (3), item (iii), 
15.33 	then the exemption includes up to ten acres of land on which the building is located and 
15.34 	associated parking areas on that land. If a parking area associated with the facility is 
15.35 	used for the purposes of the facility and for other purposes, a portion of the parking area 
16.1 	shall be exempt in proportion to the square footage of the facility used for purposes of 
16.2 	apprenticeship training.

16.3 	EFFECTIVE DATE. This section is effective for property taxes payable in 2011 
16.4 	and thereafter. 

16.5 	Sec. 6. [290.0681] CREDIT FOR HISTORIC STRUCTURE REHABILITATION.
16.6 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
16.7 	have the meanings given.
16.8 	(b) "Account" means the historic credit administration account in the special 
16.9 	revenue fund.
16.10 	(c) "Office" means the State Historic Preservation Office of the Minnesota Historical 
16.11 	Society.
16.12 	(d) "Project" means rehabilitation of a certified historic structure, as defined in 
16.13 	section 47(c)(3)(A) of the Internal Revenue Code, that is located in Minnesota and is 
16.14 	allowed a federal credit under section 47(a)(2) of the Internal Revenue Code.
16.15 	(e) "Society" means the Minnesota Historical Society.
16.16 		Subd. 2.Credit or grant allowed; certified historic structure. (a) A credit is 
16.17 	allowed against the tax imposed under this chapter equal to not more than 100 percent 
16.18 	of the credit allowed under section 47(a)(2) of the Internal Revenue Code for a project. 
16.19 	To qualify for the credit:
16.20 	(1) the project must receive Part 3 certification and be placed in service during 
16.21 	the taxable year; and
16.22 	(2) the taxpayer must be allowed the federal credit and be issued a credit certificate 
16.23 	for the taxable year as provided in subdivision 4.
16.24 	(b) The society may pay a grant in lieu of the credit. The grant equals 90 percent of 
16.25 	the credit that would be allowed for the project.
16.26 	(c) In lieu of the credit under paragraph (a), an insurance company may claim a 
16.27 	credit against the insurance premiums tax imposed under chapter 297I.
16.28 		Subd. 3.Maximum limit; applications; allocations. (a) The total amount of 
16.29 	credits and grants that may be allocated is limited to $5,000,000 in each fiscal year plus 
16.30 	any amounts available for reallocation under paragraphs (c) and (f), in fiscal years 2011 
16.31 	through 2016 only.
16.32 	(b) To qualify for a credit or grant under this section, the developer of a project must 
16.33 	apply to the office before the rehabilitation begins. The application must contain the 
16.34 	information and be in the form prescribed by the office. The office may collect a fee for 
16.35 	application of up to $5,000, based on estimated qualified rehabilitation expenses, to offset 
17.1 	costs associated with personnel and administrative expenses related to administering the 
17.2 	credit and preparing the economic impact report in subdivision 9. If a project does not 
17.3 	receive an allocation certificate, the office must refund all but $250 of the application 
17.4 	fee. Application fees are deposited in the account. The application must indicate if the 
17.5 	application is for a credit or a grant in lieu of the credit or a combination of the two and 
17.6 	designate the taxpayer qualifying for the credit or the recipient of the grant.
17.7 	(c) The office must implement two credit application periods each year. The office 
17.8 	must allocate tax credits and grants using an objective scoring system that evaluates the 
17.9 	benefit to the state of each project for which an application is received. The office may 
17.10 	allocate up to one-half of the amount for the fiscal year in the first application period. 
17.11 	Amounts not allocated within a fiscal year do not cancel but are available for allocation in 
17.12 	following fiscal years, except that amounts not allocated in fiscal year 2016 cancel to the 
17.13 	general fund and are not available for reallocation.
17.14 	(d) The office must evaluate applications using the following criteria and priorities:
17.15 	(1) the amount of additional project investment leveraged as a result of receiving the 
17.16 	state credit, calculated as the ratio of total project cost to the state tax credit;
17.17 	(2) if the project has secured the financing necessary to begin development;
17.18 	(3) the amount of time expected to pass between allocation of the credit and 
17.19 	completion of the project, with priority given to projects that are expected to be placed 
17.20 	in service within two years of the start of rehabilitation;
17.21 	(4) the number of construction jobs expected to be created by the project;
17.22 	(5) the number of jobs expected to be created when the project is completed and 
17.23 	placed in service;
17.24 	(6) if the project will result in one or more vacant properties being placed in service; 
17.25 	and
17.26 	(7) if the project has the support of the local government in which the project 
17.27 	is located.
17.28 	(e) Upon approving an application for credit, the office shall issue allocation 
17.29 	certificates that:
17.30 	(1) verify eligibility for the credit or grant;
17.31 	(2) state the amount of credit or grant allocated to the rehabilitation, with the credit 
17.32 	amount equal to 100 percent and the grant amount equal to 90 percent of the federal 
17.33 	credit anticipated in the application;
17.34 	(3) state that the credit or grant allocated may be reduced if the federal credit the 
17.35 	project receives at the time it is placed in service is less than the amount anticipated at 
17.36 	the time of allocation, but that neither the credit nor the grant is increased if the federal 
18.1 	credit that the project receives at the time it is placed in service is more than the amount 
18.2 	anticipated at the time of allocation; and
18.3 	(4) state the fiscal year in which the credit or grant is allocated, and that the taxpayer 
18.4 	or grant recipient is entitled to receive the credit or grant at the time the project is placed 
18.5 	in service, provided that date is within three calendar years following the issuance of 
18.6 	the allocation certificate.
18.7 	(f) If a project is not placed in service and issued a credit certificate under subdivision 
18.8 	4 within three calendar years following the issuance of the allocation certificate, the credit 
18.9 	allocation is canceled and available for reallocation, except that allocations canceled after 
18.10 	fiscal year 2015 are not available for reallocation.
18.11 	(g) The office, in consultation with the commissioner of revenue, shall determine if 
18.12 	the project is eligible for a credit or a grant under this section. Eligibility for the credit is 
18.13 	subject to review and audit by the commissioner of revenue.
18.14 	(h) The federal credit recapture and repayment requirements under section 50 of the 
18.15 	Internal Revenue Code do not apply to the credit allowed under this section.
18.16 		Subd. 4.Credit certificates. (a)(1) The developer of a project for which the office 
18.17 	has issued an allocation certificate must notify the office when the project is placed in 
18.18 	service. Upon verifying that the project has been placed in service, and was allowed a 
18.19 	federal credit, the office must issue a credit certificate to the taxpayer designated in the 
18.20 	application or must issue a grant to the recipient designated in the application. The credit 
18.21 	certificate must state the amount of the credit.
18.22 	(2) The credit amount may not exceed the lesser of:
18.23 	(i) the federal credit; or
18.24 	(ii) the amount on the allocation certificate.
18.25 	(3) The grant amount may not exceed the lesser of:
18.26 	(i) 90 percent of the federal credit; or
18.27 	(ii) the amount on the allocation certificate.
18.28 	(b) The recipient of a credit certificate may assign the certificate to another taxpayer, 
18.29 	which is then allowed the credit under this section or section 297I.20, subdivision 3. The 
18.30 	commissioner shall prescribe the forms necessary for claiming a credit by assignment.
18.31 		Subd. 5.Partnerships; multiple owners. Credits granted to a partnership, a limited 
18.32 	liability company taxed as a partnership, S corporation, or multiple owners of property are 
18.33 	passed through to the partners, members, shareholders, or owners, respectively, pro rata to 
18.34 	each partner, member, shareholder, or owner based on their share of the entity's assets or as 
18.35 	specially allocated in their organizational documents, as of the last day of the taxable year.
19.1 		Subd. 6.Credit refundable. If the amount of credit that the taxpayer is eligible to 
19.2 	receive under this section exceeds the liability for tax under this chapter, the commissioner 
19.3 	shall refund the excess to the taxpayer.
19.4 		Subd. 7.Appropriations. (a) An amount sufficient to pay the refunds authorized 
19.5 	under this section is appropriated to the commissioner from the general fund.
19.6 	(b) An amount sufficient to pay the grants authorized under this section is 
19.7 	appropriated to the society from the general fund.
19.8 	(c) Amounts in the account are appropriated to the society for costs associated with 
19.9 	personnel and administrative expenses related to administering the credit for historic 
19.10 	structure rehabilitation in this section, and for costs associated with preparing the 
19.11 	determination of economic impact report required in subdivision 9.
19.12 		Subd. 8.Manner of claiming. (a) The commissioner shall prescribe the manner in 
19.13 	which the credit may be issued or claimed. This may include allowing the credit only as 
19.14 	a separately processed claim for refund.
19.15 	(b) The office shall prescribe the manner in which grants are paid.
19.16 		Subd. 9.Report; determination of economic impact. The society must annually 
19.17 	determine the economic impact to the state from the rehabilitation of property for which 
19.18 	credits or grants are provided under this section and provide a written report on the impact 
19.19 	to the chairs and ranking minority members of the legislative committees on taxes of the 
19.20 	senate and house of representatives, in compliance with Minnesota Statutes, sections 
19.21 	3.195 and 3.197.
19.22 		Subd. 10.Sunset. This section expires after fiscal year 2016, except that the office's 
19.23 	authority to issue credit certificates under subdivision 4 based on allocation certificates 
19.24 	that were issued before fiscal year 2017 remains in effect through 2019, and the reporting 
19.25 	requirements in subdivision 9 remain in effect through the year following the year in 
19.26 	which all allocation certificates have either been canceled or resulted in issuance of credit 
19.27 	certificates, or 2020, whichever is earlier.

19.28 	EFFECTIVE DATE. This section is effective for taxable years beginning 
19.29 	after December 31, 2009, for certified historic structures for which qualified costs of 
19.30 	rehabilitation are first paid under construction contracts entered into after May 1, 2010.

19.31 	Sec. 7. [290.0692] SMALL BUSINESS INVESTMENT CREDIT.
19.32 		Subdivision 1.Definitions. For purposes of this section, terms defined in section 
19.33 	116J.8737 have the meaning given in that section.
19.34 		Subd. 2.Credit allowed. A qualified investor is allowed a credit against the tax 
19.35 	imposed under this chapter for qualified investments made in a qualified small business 
20.1 	for the taxable year. The credit equals the amount and applies to the taxable year indicated 
20.2 	on the certificate provided to the qualified investor under section 116J.8737, but the 
20.3 	maximum credit in any taxable year is $250,000 for a married couple filing a joint return, 
20.4 	and $125,000 for all other claimants.
20.5 		Subd. 3.Proportional credits. Each pass-through entity must provide each 
20.6 	investor a statement indicating the investor's share of the credit amount certified to the 
20.7 	pass-through entity based on its share of the pass-through entity's capital assets at the 
20.8 	time of the qualified investment.
20.9 		Subd. 4.Credit refundable. If the amount of the credit under this section for any 
20.10 	taxable year exceeds the claimant's liability for tax under this chapter, the commissioner 
20.11 	shall refund the excess to the claimant. An amount sufficient to pay the refunds required 
20.12 	by this section is appropriated to the commissioner from the general fund.
20.13 		Subd. 5.Audit powers. Notwithstanding the certification eligibility issued by the 
20.14 	commissioner of employment and economic development under section 116J.8737, the 
20.15 	commissioner may utilize any audit and examination powers under chapters 270C or 
20.16 	289A to the extent necessary to verify that the taxpayer is eligible for the credit and to 
20.17 	assess for the amount of any improperly claimed credit.

20.18 	EFFECTIVE DATE. This section is effective for investments made after July 1, 
20.19 	2010, for taxable years beginning after December 31, 2009, and before January 1, 2016, 
20.20 	and only applies to investments made after the qualified investor or fund making the 
20.21 	investment and the qualified small business receiving the investment have been certified 
20.22 	by the commissioner of employment and economic development.

20.23 	Sec. 8. Minnesota Statutes 2008, section 297I.20, is amended by adding a subdivision 
20.24 	to read:
20.25 		Subd. 3.Historic structure rehabilitation credit. An insurance company may 
20.26 	claim a credit against the premiums tax imposed under this chapter equal to the amount of 
20.27 	the credit certificate issued to it, or to a person who has assigned the credit to the insurance 
20.28 	company, under section 290.0681. If the amount of the credit exceeds the liability for tax 
20.29 	under this chapter, the commissioner shall refund the excess to the insurance company. An 
20.30 	amount sufficient to pay the refunds under this section is appropriated to the commissioner 
20.31 	from the general fund. This credit does not affect the calculation of police and fire aid 
20.32 	under section 69.021.

21.1 	EFFECTIVE DATE. This section is effective for taxable years beginning 
21.2 	after December 31, 2009, for certified historic structures for which qualified costs of 
21.3 	rehabilitation are first paid under construction contracts entered into after May 1, 2010.

21.4 	Sec. 9. Minnesota Statutes 2009 Supplement, section 298.294, is amended to read:
21.5 	298.294 INVESTMENT OF FUND.
21.6 	(a) The trust fund established by section 298.292 shall be invested pursuant to law 
21.7 	by the State Board of Investment and the net interest, dividends, and other earnings arising 
21.8 	from the investments shall be transferred, except as provided in paragraph (b), on the first 
21.9 	day of each month to the trust and shall be included and become part of the trust fund. 
21.10 	The amounts transferred, including the interest, dividends, and other earnings earned 
21.11 	prior to July 13, 1982, together with the additional amount of $10,000,000 for fiscal year 
21.12 	1983, which is appropriated April 21, 1983, are appropriated from the trust fund to the 
21.13 	commissioner of Iron Range resources and rehabilitation for deposit in a separate account 
21.14 	for expenditure for the purposes set forth in section 298.292. Amounts appropriated 
21.15 	pursuant to this section shall not cancel but shall remain available unless expended.
21.16 	(b) For fiscal years 2010 and 2011 only, $1,000,000$1,500,000 of the net interest, 
21.17 	dividends, and other earnings under paragraph (a) shall be transferred to a special account. 
21.18 	Funds in the special account are available for loans or grants to businesses, with priority 
21.19 	given to businesses with 25 or fewer employees. Funds may be used for wage subsidies 
21.20 	for up to 52 weeks of up to $5 per hour or other activities, including, but not limited to, 
21.21 	short-term operating expenses and purchase of equipment and materials by businesses 
21.22 	under financial duress, that will create additional jobs in the taconite assistance area under 
21.23 	section 273.1341. Expenditures from the special account must be approved by at least 
21.24 	seven Iron Range Resources and Rehabilitation Board members.
21.25 	(c) To qualify for a grant or loan, a business must be currently operating and have 
21.26 	been operating for one year immediately prior to its application for a loan or grant, and its 
21.27 	corporate headquarters must be located in the taconite assistance area.

21.28 	EFFECTIVE DATE. This section is effective the day following final enactment.

21.29 	Sec. 10. Minnesota Statutes 2008, section 429.021, subdivision 1, is amended to read:
21.30 		Subdivision 1.Improvements authorized. The council of a municipality shall have 
21.31 	power to make the following improvements:
21.32 	(1) To acquire, open, and widen any street, and to improve the same by constructing, 
21.33 	reconstructing, and maintaining sidewalks, pavement, gutters, curbs, and vehicle parking 
22.1 	strips of any material, or by grading, graveling, oiling, or otherwise improving the same, 
22.2 	including the beautification thereof and including storm sewers or other street drainage 
22.3 	and connections from sewer, water, or similar mains to curb lines.
22.4 	(2) To acquire, develop, construct, reconstruct, extend, and maintain storm and 
22.5 	sanitary sewers and systems, including outlets, holding areas and ponds, treatment plants, 
22.6 	pumps, lift stations, service connections, and other appurtenances of a sewer system, 
22.7 	within and without the corporate limits.
22.8 	(3) To construct, reconstruct, extend, and maintain steam heating mains.
22.9 	(4) To install, replace, extend, and maintain street lights and street lighting systems 
22.10 	and special lighting systems.
22.11 	(5) To acquire, improve, construct, reconstruct, extend, and maintain water works 
22.12 	systems, including mains, valves, hydrants, service connections, wells, pumps, reservoirs, 
22.13 	tanks, treatment plants, and other appurtenances of a water works system, within and 
22.14 	without the corporate limits.
22.15 	(6) To acquire, improve and equip parks, open space areas, playgrounds, and 
22.16 	recreational facilities within or without the corporate limits.
22.17 	(7) To plant trees on streets and provide for their trimming, care, and removal.
22.18 	(8) To abate nuisances and to drain swamps, marshes, and ponds on public or private 
22.19 	property and to fill the same.
22.20 	(9) To construct, reconstruct, extend, and maintain dikes and other flood control 
22.21 	works.
22.22 	(10) To construct, reconstruct, extend, and maintain retaining walls and area walls.
22.23 	(11) To acquire, construct, reconstruct, improve, alter, extend, operate, maintain, and 
22.24 	promote a pedestrian skyway system. Such improvement may be made upon a petition 
22.25 	pursuant to section 429.031, subdivision 3.
22.26 	(12) To acquire, construct, reconstruct, extend, operate, maintain, and promote 
22.27 	underground pedestrian concourses.
22.28 	(13) To acquire, construct, improve, alter, extend, operate, maintain, and promote 
22.29 	public malls, plazas or courtyards.
22.30 	(14) To construct, reconstruct, extend, and maintain district heating systems.
22.31 	(15) To construct, reconstruct, alter, extend, operate, maintain, and promote fire 
22.32 	protection systems in existing buildings, but only upon a petition pursuant to section 
22.33 	429.031, subdivision 3.
22.34 	(16) To acquire, construct, reconstruct, improve, alter, extend, and maintain highway 
22.35 	sound barriers.
23.1 	(17) To improve, construct, reconstruct, extend, and maintain gas and electric 
23.2 	distribution facilities owned by a municipal gas or electric utility.
23.3 	(18) To purchase, install, and maintain signs, posts, and other markers for addressing 
23.4 	related to the operation of enhanced 911 telephone service.
23.5 	(19) To improve, construct, extend, and maintain facilities for Internet access and 
23.6 	other communications purposes, if the council finds that:
23.7 	(i) the facilities are necessary to make available Internet access or other 
23.8 	communications services that are not and will not be available through other providers or 
23.9 	the private market in the reasonably foreseeable future; and
23.10 	(ii) the service to be provided by the facilities will not compete with service provided 
23.11 	by private entities.
23.12 	(20) To assess affected property owners for all or a portion of the costs agreed to 
23.13 	with an electric utility, telecommunications carrier, or cable system operator to bury or 
23.14 	alter a new or existing distribution system within the public right-of-way that exceeds the 
23.15 	utility's design and construction standards, or those set by law, tariff, or franchise, but only 
23.16 	upon petition under section 429.031, subdivision 3.
23.17 	(21) To assess affected property owners for repayment of voluntary energy 
23.18 	improvement financings under section 216C.436, subdivision 7.

23.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

23.20 	Sec. 11. Minnesota Statutes 2008, section 429.101, subdivision 1, is amended to read:
23.21 		Subdivision 1.Ordinances. (a) In addition to any other method authorized by 
23.22 	law or charter, the governing body of any municipality may provide for the collection 
23.23 	of unpaid special charges as a special assessment against the property benefited for all 
23.24 	or any part of the cost of:
23.25 	(1) snow, ice, or rubbish removal from sidewalks;
23.26 	(2) weed elimination from streets or private property;
23.27 	(3) removal or elimination of public health or safety hazards from private property, 
23.28 	excluding any structure included under the provisions of sections 463.15 to 463.26; 
23.29 	(4) installation or repair of water service lines, street sprinkling or other dust 
23.30 	treatment of streets;
23.31 	(5) the trimming and care of trees and the removal of unsound trees from any street;
23.32 	(6) the treatment and removal of insect infested or diseased trees on private property, 
23.33 	the repair of sidewalks and alleys;
23.34 	(7) the operation of a street lighting system;
23.35 	(8) the operation and maintenance of a fire protection or a pedestrian skyway system;
24.1 	(9) inspections relating to a municipal housing maintenance code violation;
24.2 	(10) the recovery of any disbursements under section 504B.445, subdivision 4, 
24.3 	clause (5), including disbursements for payment of utility bills and other services, even if 
24.4 	provided by a third party, necessary to remedy violations as described in section 504B.445, 
24.5 	subdivision 4, clause (2); or 
24.6 	(11) [Repealed, 2004 c 275 s 5]
24.7 	(12) the recovery of delinquent vacant building registration fees under a municipal 
24.8 	program designed to identify and register vacant buildings.
24.9 	(b) The council may by ordinance adopt regulations consistent with this section to 
24.10 	make this authority effective, including, at the option of the council, provisions for placing 
24.11 	primary responsibility upon the property owner or occupant to do the work personally 
24.12 	(except in the case of street sprinkling or other dust treatment, alley repair, tree trimming, 
24.13 	care, and removal, or the operation of a street lighting system) upon notice before the work 
24.14 	is undertaken, and for collection from the property owner or other person served of the 
24.15 	charges when due before unpaid charges are made a special assessment.
24.16 	(c) A home rule charter city, statutory city, county, or town operating an energy 
24.17 	improvements financing program under section 216C.436 has the authority granted to a 
24.18 	municipality under paragraph (a) with respect to energy improvements financed under 
24.19 	that section.

24.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

24.21 	Sec. 12. Minnesota Statutes 2008, section 446A.085, is amended by adding a 
24.22 	subdivision to read:
24.23 		Subd. 15.Transportation infrastructure loans. A loan may be made to a statutory 
24.24 	or home rule charter city to finance transportation infrastructure projects for the purposes 
24.25 	described in subdivision 2 but without regard to whether they are eligible for financing 
24.26 	under a federal act or program or state law. The loan must be repayable under the terms 
24.27 	and conditions provided in this section and established by the authority and agreed to by 
24.28 	the city. The loan must be repaid by the city from the proceeds of special assessments, tax 
24.29 	increments, or other local taxes, such as sales taxes, lodging taxes, liquor taxes, admissions 
24.30 	and recreation taxes, and food and beverage taxes, authorized to be used for purposes 
24.31 	of the project. In addition to any method the authority considers to be appropriate, the 
24.32 	authority may fund those loans by issuing Build America Bonds under section 54AA of 
24.33 	the Internal Revenue Code, as amended.

24.34 	EFFECTIVE DATE. This section is effective the day following final enactment.

25.1 	Sec. 13. Minnesota Statutes 2009 Supplement, section 469.153, subdivision 2, is 
25.2 	amended to read:
25.3 		Subd. 2.Project. (a) "Project" means (1) any properties, real or personal, used 
25.4 	or useful in connection with a revenue producing enterprise, or any combination of 
25.5 	two or more such enterprises engaged or to be engaged in generating, transmitting, or 
25.6 	distributing electricity, assembling, fabricating, manufacturing, mixing, processing, 
25.7 	storing, warehousing, or distributing any products of agriculture, forestry, mining, or 
25.8 	manufacture, or in research and development activity in this field, or in the manufacturing, 
25.9 	creation, or production of intangible property, including any patent, copyright, formula, 
25.10 	process, design, know-how, format, or other similar item; (2) any properties, real or 
25.11 	personal, used or useful in the abatement or control of noise, air, or water pollution, or in 
25.12 	the disposal of solid wastes, in connection with a revenue producing enterprise, or any 
25.13 	combination of two or more such enterprises engaged or to be engaged in any business 
25.14 	or industry; (3) any properties, real or personal, used or useful in connection with the 
25.15 	business of telephonic communications, conducted or to be conducted by a telephone 
25.16 	company, including toll lines, poles, cables, switching, and other electronic equipment 
25.17 	and administrative, data processing, garage, and research and development facilities; 
25.18 	(4) any properties, real or personal, used or useful in connection with a district heating 
25.19 	system, consisting of the use of one or more energy conversion facilities to produce hot 
25.20 	water or steam for distribution to homes and businesses, including cogeneration facilities, 
25.21 	distribution lines, service facilities, and retrofit facilities for modifying the user's heating 
25.22 	or water system to use the heat energy converted from the steam or hot water.
25.23 	(b) "Project" also includes any properties, real or personal, used or useful in 
25.24 	connection with a revenue producing enterprise, or any combination of two or more 
25.25 	such enterprises engaged in any business.
25.26 	(c) "Project" also includes any properties, real or personal, used or useful for the 
25.27 	promotion of tourism in the state. Properties may include hotels, motels, lodges, resorts, 
25.28 	recreational facilities of the type that may be acquired under section 471.191, and related 
25.29 	facilities.
25.30 	(d) "Project" also includes any properties, real or personal, used or useful in 
25.31 	connection with a revenue producing enterprise, whether or not operated for profit, 
25.32 	engaged in providing health care services, including hospitals, nursing homes, and related 
25.33 	medical facilities.
25.34 	(e) "Project" does not include any property to be sold or to be affixed to or consumed 
25.35 	in the production of property for sale, and does not include any housing facility to be 
25.36 	rented or used as a permanent residence.
26.1 	(f) "Project" also means the activities of any revenue producing enterprise involving 
26.2 	the construction, fabrication, sale, or leasing of equipment or products to be used in 
26.3 	gathering, processing, generating, transmitting, or distributing solar, wind, geothermal, 
26.4 	biomass, agricultural or forestry energy crops, or other alternative energy sources for 
26.5 	use by any person or any residential, commercial, industrial, or governmental entity in 
26.6 	heating, cooling, or otherwise providing energy for a facility owned or operated by that 
26.7 	person or entity.
26.8 	(g) "Project" also includes any properties, real or personal, used or useful in 
26.9 	connection with a county jail, county regional jail, community corrections facilities 
26.10 	authorized by chapter 401, or other law enforcement facilities, the plans for which are 
26.11 	approved by the commissioner of corrections; provided that the provisions of section 
26.12 	469.155, subdivisions 7 and 13, do not apply to those projects.
26.13 	(h) "Project" also includes any real properties used or useful in furtherance of the 
26.14 	purpose and policy of section 469.141.
26.15 	(i) "Project" also includes related facilities as defined by section 471A.02, 
26.16 	subdivision 11.
26.17 	(j) "Project" also includes an undertaking to purchase the obligations of local 
26.18 	governments located in whole or in part within the boundaries of the municipality that are 
26.19 	issued or to be issued for public purposes.
26.20 	(k) "Project" also includes any properties designated as a qualified green building 
26.21 	and sustainable design project under section 469.1655.

26.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

26.23 	Sec. 14. [469.1655] QUALIFIED GREEN BUILDING AND SUSTAINABLE 
26.24 	DESIGN PROJECTS.
26.25 		Subdivision 1.Project designation and eligibility. (a) A municipality or 
26.26 	redevelopment agency issuing revenue bonds under sections 469.152 to 469.165 may 
26.27 	designate the project for which the bonds are issued as a qualified green building and 
26.28 	sustainable design project as provided in this section.
26.29 	(b) The issuer must ensure that each designated project substantially:
26.30 	(1) reduces consumption of electricity compared to conventional construction; 
26.31 	(2) reduces daily carbon dioxide emissions compared to energy generated from coal;
26.32 	(3) increases the use of solar photovoltaic cells or solar thermal cells in this state; or
26.33 	(4) increases the use of fuel cells to generate energy.
26.34 	(c) Before designating a project under this section, the issuer must document in 
26.35 	writing that the project will satisfy the eligibility criteria in this section.
27.1 	(d) At least 75 percent of the square footage of commercial buildings that are part of 
27.2 	the project must be registered with a recognized green building rating system, including 
27.3 	Minnesota's sustainable building guidelines or the United States Green Building Council's 
27.4 	LEED certification or the Green Building Initiative's Green Globes certification, or in the 
27.5 	case of residential buildings, Minnesota GreenStar rating or the National Association of 
27.6 	Home Builders National Green Building Standard certification, and must be reasonably 
27.7 	expected to receive the certification.
27.8 		Subd. 2.Applications. An application for designation under this section must 
27.9 	include a project proposal that describes the energy-efficiency, renewable energy, and 
27.10 	sustainable design features of the project and demonstrates that the project satisfies the 
27.11 	eligibility criteria in this section. The application must include a description of:
27.12 	(1) the amount of electric consumption reduced as compared to conventional 
27.13 	construction;
27.14 	(2) the amount of carbon dioxide daily emissions reduced compared to energy 
27.15 	generated from coal;
27.16 	(3) the amount of the gross installed capacity of the project's solar photovoltaic 
27.17 	capacity measured in megawatts; and
27.18 	(4) the amount in megawatts of the project's energy generated by fuel cells.
27.19 		Subd. 3.Use of bond financing. The project proposal must include a description of 
27.20 	the bond financing that will be allocated for financing of one or more of the following:
27.21 	(1) the purchase, construction, integration, or other use of energy-efficiency, 
27.22 	renewable energy, and sustainable design features of the project; or
27.23 	(2) compliance with certification standards cited under subdivision 1, paragraph (d).

27.24 	EFFECTIVE DATE. This section is effective for bonds issued after June 30, 2010.

27.25 	Sec. 15. Minnesota Statutes 2008, section 469.174, is amended by adding a subdivision 
27.26 	to read:
27.27 		Subd. 10c.Compact development district. "Compact development district" means 
27.28 	a type of tax increment financing district consisting of a project, or portions of a project, 
27.29 	within which the authority finds by resolution that the following conditions are satisfied:
27.30 	(1) parcels consisting of 70 percent of the area of the district are occupied by 
27.31 	buildings or similar structures that are classified as class 3a property under section 273.13, 
27.32 	subdivision 24; and
27.33 	(2) the planned redevelopment or development of the district, when completed, will 
27.34 	increase the total square footage of buildings, classified as class 3a under section 273.13, 
28.1 	subdivision 24, occupying the district by three times or more relative to the square footage 
28.2 	of similar buildings occupying the district when the resolution was approved.

28.3 	EFFECTIVE DATE. This section is effective for districts for which the request for 
28.4 	certification is made after June 30, 2009.

28.5 	Sec. 16. Minnesota Statutes 2008, section 469.175, is amended by adding a subdivision 
28.6 	to read:
28.7 		Subd. 2b.Compact development districts; sunset. The authority to establish or 
28.8 	approve the tax increment financing plan for a new compact development district expires 
28.9 	on June 30, 2012.

28.10 	Sec. 17. Minnesota Statutes 2008, section 469.176, subdivision 1b, is amended to read:
28.11 		Subd. 1b.Duration limits; terms. (a) No tax increment shall in any event be 
28.12 	paid to the authority
28.13 	(1) after 15 years after receipt by the authority of the first increment for a renewal 
28.14 	and renovation district,
28.15 	(2) after 20 years after receipt by the authority of the first increment for a soils 
28.16 	condition district,
28.17 	(3) after eight years after receipt by the authority of the first increment for an 
28.18 	economic development district,
28.19 	(4) for a housing district, a compact development district, or a redevelopment 
28.20 	district, after 25 years from the date of receipt by the authority of the first increment.
28.21 	(b) For purposes of determining a duration limit under this subdivision or subdivision 
28.22 	1e that is based on the receipt of an increment, any increments from taxes payable in 
28.23 	the year in which the district terminates shall be paid to the authority. This paragraph 
28.24 	does not affect a duration limit calculated from the date of approval of the tax increment 
28.25 	financing plan or based on the recovery of costs or to a duration limit under subdivision 
28.26 	1c. This paragraph does not supersede the restrictions on payment of delinquent taxes in 
28.27 	subdivision 1f.
28.28 	(c) An action by the authority to waive or decline to accept an increment has no 
28.29 	effect for purposes of computing a duration limit based on the receipt of increment under 
28.30 	this subdivision or any other provision of law. The authority is deemed to have received an 
28.31 	increment for any year in which it waived or declined to accept an increment, regardless 
28.32 	of whether the increment was paid to the authority.
28.33 	(d) Receipt by a hazardous substance subdistrict of an increment as a result of a 
28.34 	reduction in original net tax capacity under section 469.174, subdivision 7, paragraph 
29.1 	(b), does not constitute receipt of increment by the overlying district for the purpose of 
29.2 	calculating the duration limit under this section.  

29.3 	EFFECTIVE DATE. This section is effective for districts for which the request for 
29.4 	certification is made after June 30, 2009.

29.5 	Sec. 18. Minnesota Statutes 2008, section 469.176, is amended by adding a subdivision 
29.6 	to read:
29.7 		Subd. 1i.Compact development districts. Tax increments derived from a compact 
29.8 	development district may be used only to pay:
29.9 	(1) administrative expenses up to the amount permitted under subdivision 3;
29.10 	(2) the cost of acquiring land located in the district or abutting the boundary of 
29.11 	the district;
29.12 	(3) demolition and removal of buildings or other improvements and other site 
29.13 	preparation costs for lands located in the district or abutting the boundary of the district; 
29.14 	and
29.15 	(4) installation of public infrastructure or public improvements serving the district, 
29.16 	but excluding the costs of streets, roads, highways, parking, or other public improvements 
29.17 	primarily designed to serve private passenger motor vehicles.

29.18 	EFFECTIVE DATE. This section is effective for districts for which the request for 
29.19 	certification is made after June 30, 2009.

29.20 	Sec. 19. Minnesota Statutes 2008, section 469.176, subdivision 4c, is amended to read:
29.21 		Subd. 4c.Economic development districts. (a) Revenue derived from tax 
29.22 	increment from an economic development district may not be used to provide 
29.23 	improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form 
29.24 	to developments consisting of buildings and ancillary facilities, if more than 15 percent 
29.25 	of the buildings and facilities (determined on the basis of square footage) are used for a 
29.26 	purpose other than:
29.27 	(1) the manufacturing or production of tangible personal property, including 
29.28 	processing resulting in the change in condition of the property;
29.29 	(2) warehousing, storage, and distribution of tangible personal property, excluding 
29.30 	retail sales;
29.31 	(3) research and development related to the activities listed in clause (1) or (2);
29.32 	(4) telemarketing if that activity is the exclusive use of the property;
29.33 	(5) tourism facilities;
30.1 	(6) qualified border retail facilities; or
30.2 	(7) space necessary for and related to the activities listed in clauses (1) to (6).
30.3 	(b) Notwithstanding the provisions of this subdivision, revenue derived from tax 
30.4 	increment from an economic development district may be used to pay for site preparation 
30.5 	and public improvements, if the following conditions are met:
30.6 	(1) bedrock soils conditions are present in 80 percent or more of the acreage of 
30.7 	the district;
30.8 	(2) the estimated cost of physical preparation of the site exceeds the fair market 
30.9 	value of the land before completion of the preparation; and
30.10 	(3) revenues from tax increments are expended only for the additional costs of 
30.11 	preparing the site because of unstable soils and the bedrock soils condition, the additional 
30.12 	cost of installing public improvements because of unstable soils or the bedrock soils 
30.13 	condition, and reasonable administrative costs.
30.14 	(c) (b) Notwithstanding the provisions of this subdivision, revenues derived from tax 
30.15 	increment from an economic development district may be used to provide improvements, 
30.16 	loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000 
30.17 	square feet of any separately owned commercial facility located within the municipal 
30.18 	jurisdiction of a small city, if the revenues derived from increments are spent only to 
30.19 	assist the facility directly or for administrative expenses, the assistance is necessary to 
30.20 	develop the facility, and all of the increments, except those for administrative expenses, 
30.21 	are spent only for activities within the district.
30.22 	(d) For purposes of this subdivision, a qualified border retail facility is a development 
30.23 	consisting of a shopping center or one or more retail stores, if the authority finds that all 
30.24 	of the following conditions are satisfied:
30.25 	(1) the district is in a small city located within one mile or less of the border of 
30.26 	the state;
30.27 	(2) the development is not located in the seven-county metropolitan area, as defined 
30.28 	in section 473.121, subdivision 2;  
30.29 	(3) the development will contain new buildings or will substantially rehabilitate 
30.30 	existing buildings that together contain at least 25,000 square feet of retail space; and
30.31 	(4) without the use of tax increment financing for the development, the development 
30.32 	or a similar competing development will instead occur in the bordering state or province.
30.33 	(e)(c) A city is a small city for purposes of this subdivision if the city was a small 
30.34 	city in the year in which the request for certification was made and applies for the rest of 
30.35 	the duration of the district, regardless of whether the city qualifies or ceases to qualify 
30.36 	as a small city.
31.1 	(d) Notwithstanding the requirements of paragraph (a) and the finding requirements 
31.2 	of section 469.174, subdivision 12, tax increments from an economic development district 
31.3 	may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or 
31.4 	assistance in any form to developments consisting of buildings and ancillary facilities, if 
31.5 	all the following conditions are met:
31.6 	(1) the municipality finds that the project will create or retain jobs in this state, 
31.7 	including construction jobs, and that construction of the project would not have 
31.8 	commenced before July 1, 2011, without the authority providing assistance under the 
31.9 	provisions of this paragraph;
31.10 	(2) construction of the project begins no later than July 1, 2011; and
31.11 	(3) the request for certification of the district is made no later than June 30, 2011.

31.12 	EFFECTIVE DATE. This section is effective the day following final enactment 
31.13 	and applies to any economic development district for which the request for certification 
31.14 	was made after June 30, 2009.

31.15 	Sec. 20. Minnesota Statutes 2008, section 469.176, is amended by adding a subdivision 
31.16 	to read:
31.17 		Subd. 4m.Temporary authority to stimulate construction. (a) Notwithstanding 
31.18 	the restrictions in any other subdivision of this section or any other law to the contrary, 
31.19 	except the requirement to pay bonds to which the increments are pledged and the 
31.20 	provisions of subdivisions 4g and 4h, the authority may spend tax increments for one or 
31.21 	more of the following purposes:
31.22 	(1) to provide improvements, loans, interest rate subsidies, or assistance in any 
31.23 	form to private development consisting of the construction or substantial rehabilitation 
31.24 	of buildings and ancillary facilities, if doing so will create or retain jobs in this state, 
31.25 	including construction jobs, and that the construction commences before July 1, 2011, and 
31.26 	would not have commenced before that date without the assistance; or
31.27 	(2) to make an equity or similar investment in a corporation, partnership, or limited 
31.28 	liability company that the authority determines is necessary to make construction of a 
31.29 	development that meets the requirements of clause (1) financially feasible.
31.30 	(b) The authority may undertake actions under the authority of this subdivision only 
31.31 	after approval by the municipality of a written spending plan that specifically authorizes 
31.32 	the authority to take the actions. The municipality shall approve the spending plan only 
31.33 	after a public hearing after published notice in a newspaper of general circulation in 
31.34 	the municipality at least once, not less than ten days nor more than 30 days prior to the 
31.35 	date of the hearing.
32.1 	(c) The authority to spend tax increments under this subdivision expires December 
32.2 	31, 2011.

32.3 	EFFECTIVE DATE. This section is effective the day following final enactment 
32.4 	and applies to tax increments derived from a district, regardless of when the request for 
32.5 	certification was made.

32.6 	Sec. 21. Minnesota Statutes 2008, section 469.310, subdivision 6, is amended to read:
32.7 		Subd. 6.Job opportunity building zone or zone. "Job opportunity building zone" 
32.8 	or "zone" means a zone designated by the commissioner under section 469.314, and 
32.9 	includes an agricultural processing facility zone and a create automotive recovery zone. 

32.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

32.11 	Sec. 22. Minnesota Statutes 2008, section 469.310, subdivision 11, is amended to read:
32.12 		Subd. 11.Qualified business. (a) A person carrying on a trade or business at a place 
32.13 	of business located within a job opportunity building zone is a qualified business for the 
32.14 	purposes of sections 469.310 to 469.320 according to the criteria in paragraphs (b) to (f).
32.15 	(b) A person is a qualified business only on those parcels of land for which the 
32.16 	person has entered into a business subsidy agreement, as required under section 469.313, 
32.17 	with the appropriate local government unit in which the parcels are located.
32.18 	(c) Prior to execution of the business subsidy agreement, the local government 
32.19 	unit must consider the following factors:
32.20 	(1) how wages compare to the regional industry average;
32.21 	(2) the number of jobs that will be provided relative to overall employment in the 
32.22 	community;
32.23 	(3) the economic outlook for the industry the business will engage in;
32.24 	(4) sales that will be generated from outside the state of Minnesota;
32.25 	(5) how the business will build on existing regional strengths or diversify the 
32.26 	regional economy;
32.27 	(6) how the business will increase capital investment in the zone; and
32.28 	(7) any other criteria the commissioner deems necessary.
32.29 	(d) A person that relocates a trade or business from outside a job opportunity 
32.30 	building zone into a zone is not a qualified business unless the business meets all of the 
32.31 	requirements of paragraphs (b) and (c) and:
32.32 	(1) increases full-time employment in the first full year of operation within the job 
32.33 	opportunity building zone by a minimum of five jobs or 20 percent, whichever is greater, 
33.1 	measured relative to the operations that were relocated and maintains the required level of 
33.2 	employment for each year the zone designation applies; and
33.3 	(2) enters a binding written agreement with the commissioner that:
33.4 	(i) pledges the business will meet the requirements of clause (1);
33.5 	(ii) provides for repayment of all tax benefits enumerated under section 469.315 to 
33.6 	the business under the procedures in section 469.319, if the requirements of clause (1) are 
33.7 	not met for the taxable year or for taxes payable during the year in which the requirements 
33.8 	were not met; and
33.9 	(iii) contains any other terms the commissioner determines appropriate.
33.10 	(e) The commissioner may waive the requirements under paragraph (d), clause (1), 
33.11 	if the commissioner determines that the qualified business will substantially achieve 
33.12 	the factors under this subdivision.
33.13 	(f) A business is not a qualified business if, at its location or locations in the zone, 
33.14 	the business is primarily engaged in making retail sales to purchasers who are physically 
33.15 	present at the business's zone location.
33.16 	(g) A qualifying business must pay each employee compensation, including benefits 
33.17 	not mandated by law, that on an annualized basis is equal to at least 110 percent of the 
33.18 	federal poverty level for a family of four.
33.19 	(h) A public utility, as defined in section 336B.01, is not a qualified business.
33.20 	(i) A business operating in a create automotive recovery zone is a qualified business 
33.21 	only if it engages in the assembly of motor vehicles at the zone location.

33.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

33.23 	Sec. 23. Minnesota Statutes 2008, section 469.310, is amended by adding a subdivision 
33.24 	to read:
33.25 		Subd. 14.Motor vehicle assembly facility. "Motor vehicle assembly facility" 
33.26 	means a manufacturing facility with at least 500 employees that is used to assemble motor 
33.27 	vehicles and is located in a city of the first class.

33.28 	EFFECTIVE DATE. This section is effective the day following final enactment.

33.29 	Sec. 24. Minnesota Statutes 2008, section 469.310, is amended by adding a subdivision 
33.30 	to read:
33.31 		Subd. 15.Create automotive recovery zone. "Create automotive recovery zone" 
33.32 	means a zone designated by the commissioner under section 469.314 that contains a 
33.33 	motor vehicle assembly facility.

34.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

34.2 	Sec. 25. Minnesota Statutes 2008, section 469.312, subdivision 1, is amended to read:
34.3 		Subdivision 1.Maximum size. A job opportunity building zone may not exceed 
34.4 	5,000 acres. For a zone designated as an agricultural processing facility zone, the zone 
34.5 	also may not exceed the size of a site necessary for the agricultural processing facility, 
34.6 	including ancillary operations and space for expansion in the reasonably foreseeable 
34.7 	future. For a zone designated as a create automotive recovery zone, the zone also may 
34.8 	not exceed the size of the site necessary for the assembly of motor vehicles, including 
34.9 	ancillary operations and space for expansion in the reasonably foreseeable future.

34.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

34.11 	Sec. 26. Minnesota Statutes 2008, section 469.312, subdivision 3, is amended to read:
34.12 		Subd. 3.Outside metropolitan area. Except for a create automotive recovery zone, 
34.13 	the area of a job opportunity building zone must be located outside of the metropolitan 
34.14 	area, as defined in section 473.121, subdivision 2. 

34.15 	EFFECTIVE DATE. This section is effective the day following final enactment.

34.16 	Sec. 27. Minnesota Statutes 2009 Supplement, section 469.312, subdivision 5, is 
34.17 	amended to read:
34.18 		Subd. 5.Duration limit. (a) The maximum duration of a zone is 12 years. The 
34.19 	applicant may request a shorter duration. The commissioner may specify a shorter 
34.20 	duration, regardless of the requested duration.
34.21 	(b) The duration limit under this subdivision and the duration of the zone for 
34.22 	purposes of allowance of tax incentives described in section 469.315 is extended by three 
34.23 	calendar years for each parcel of property that meets the following requirements:
34.24 	(1) the qualified business operates an ethanol plant, as defined in section 41A.09, on 
34.25 	the site that includes the parcel; and
34.26 	(2) the business subsidy agreement was executed after April 30, 2006.
34.27 	(c) The duration limit under this subdivision and the duration of the zone for 
34.28 	purposes of allowance of tax incentives described in section 469.315 is extended by five 
34.29 	calendar years for each parcel of property that meets the following requirements:
34.30 	(1) the parcel is located in a county with an unemployment rate that on the date that 
34.31 	the business subsidy agreement is executed (i) equals or exceeds ten percent or (ii) is ten 
34.32 	percent higher than the statewide average;
35.1 	(2) the operations of the qualified business on the site include:
35.2 	(i) its headquarters;
35.3 	(ii) facilities for research and development; and
35.4 	(iii) the manufacturing of products, used by the building, transport, consumer 
35.5 	products, and industrial products sectors, that reduce the use of or increase the efficiency 
35.6 	of the use of energy resources and that are manufactured using innovative and high 
35.7 	technology processes; and
35.8 	(3) the business subsidy agreement is executed after July 1, 2009, and before July 1, 
35.9 	2011.
35.10 	(d) The duration of a create automotive recovery zone is 12 years from the date of 
35.11 	the designation of a zone by the commissioner under section 469.314, subdivision 4, 
35.12 	paragraph (g).
35.13 	(e) The duration limit under this subdivision and the duration of the zone for 
35.14 	purposes of allowance of tax incentives described in section 469.315 is extended by five 
35.15 	calendar years for each parcel of property that meets the following requirements:
35.16 	(1) the parcel is located in a county with an unemployment rate for any of the twelve 
35.17 	months preceding the date on which the business subsidy agreement is executed that (i) 
35.18 	equals or exceeds ten percent or (ii) is ten percent higher than the statewide average;
35.19 	(2) the qualified business is engaged in the business of manufacturing wind turbines 
35.20 	and related products for the generation of energy, and the parcel includes one or more of 
35.21 	the following facilities of the qualified business:
35.22 	(i) the headquarters of the business in this country;
35.23 	(ii) training facilities; or
35.24 	(iii) manufacturing facilities; and
35.25 	(3) the initial business subsidy agreement is executed after July 1, 2010, and before 
35.26 	November 1, 2011.

35.27 	EFFECTIVE DATE. This section is effective the day following final enactment.

35.28 	Sec. 28. Minnesota Statutes 2008, section 469.314, subdivision 1, is amended to read:
35.29 		Subdivision 1.Commissioner to designate. (a) The commissioner, in consultation 
35.30 	with the commissioner of revenue, shall designate not more than ten job opportunity 
35.31 	building zones and not more than one create automotive recovery zone. In making the 
35.32 	designations, the commissioner shall consider need and likelihood of success to yield the 
35.33 	most economic development and revitalization of economically distressed rural areas 
35.34 	of Minnesota.
36.1 	(b) In addition to the designations under paragraph (a), the commissioner may, in 
36.2 	consultation with the commissioners of agriculture and revenue, designate up to five 
36.3 	agricultural processing facility zones.
36.4 	(c) The commissioner may, upon designation of a zone, modify the development 
36.5 	plan, including the boundaries of the zone or subzones, if in the commissioner's opinion 
36.6 	a modified plan would better meet the objectives of the job opportunity building zone 
36.7 	program. The commissioner shall notify the applicant of the modification and provide a 
36.8 	statement of the reasons for the modifications.

36.9 	EFFECTIVE DATE. This section is effective the day following final enactment, 
36.10 	except the designation of a zone under this authority does not take effect until July 1, 2013.

36.11 	Sec. 29. Minnesota Statutes 2008, section 469.314, subdivision 4, is amended to read:
36.12 		Subd. 4.Designation schedule. (a) The schedule in paragraphs (b) to (f) applies to 
36.13 	the designation of job opportunity building zones. Paragraph (g) applies to the designation 
36.14 	of a create automotive recovery zone.
36.15 	(b) The commissioner shall publish the form for applications and any procedural, 
36.16 	form, or content requirements for applications by no later than August 1, 2003. The 
36.17 	commissioner may publish these requirements on the Internet, in the State Register, or by 
36.18 	any other means the commissioner determines appropriate to disseminate the information 
36.19 	to potential applicants for designation.
36.20 	(c) Applications must be submitted by October 15, 2003.
36.21 	(d) The commissioner shall designate the zones by no later than December 31, 2003.
36.22 	(e) The designation of the zones takes effect January 1, 2004.
36.23 	(f) The commissioner may reserve one or more of the ten authorized zones for a 
36.24 	second round of designations in calendar year 2004. If the commissioner chooses to 
36.25 	reserve designations for this purpose, the commissioner shall establish the schedule for the 
36.26 	second round of designations, notwithstanding the dates in paragraphs (c), (d), and (e). 
36.27 	The commissioner shall allow a period of at least 90 days for submission of applications 
36.28 	after notification of the second round. A zone designated in the second round takes effect 
36.29 	on January 1, 2005.
36.30 	(g) The commissioner may accept applications for a create automotive recovery 
36.31 	zone at any time before January 1, 2016. The commissioner may designate a create 
36.32 	automotive recovery zone at any time after December 31, 2011, and before January 1, 
36.33 	2016, but only if the applicant has entered a written agreement with a qualified business 
36.34 	committing to make a capital investment of at least $100,000,000 to improve or retrofit a 
36.35 	motor vehicle assembly facility located in the zone.

37.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

37.2 	Sec. 30. Minnesota Statutes 2008, section 469.315, is amended to read:
37.3 	469.315 TAX INCENTIVES AVAILABLE IN ZONES.
37.4 	Qualified businesses that operate in a job opportunity building zone, individuals who 
37.5 	invest in a qualified business that operates in a job opportunity building zone, and property 
37.6 	located in a job opportunity building zone qualify for:
37.7 	(1) exemption from individual income taxes as provided under section 469.316;  
37.8 	(2) exemption from corporate franchise taxes as provided under section 469.317;  
37.9 	(3) exemption from the state sales and use tax and any local sales and use taxes on 
37.10 	qualifying purchases as provided in section 297A.68, subdivision 37;  
37.11 	(4) exemption from the state sales tax on motor vehicles and any local sales tax on 
37.12 	motor vehicles as provided under section 297B.03;  
37.13 	(5) exemption from the property tax as provided in section 272.02, subdivision 64;  
37.14 	(6) exemption from the wind energy production tax under section 272.029, 
37.15 	subdivision 7; and  
37.16 	(7) the jobs credit allowed under section 469.318, except that a qualified business 
37.17 	located in a create automotive recovery zone is not eligible for the credit under section 
37.18 	469.318 but is eligible for the credit under section 469.3181.  

37.19 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
37.20 	December 31, 2011.

37.21 	Sec. 31. [469.3181] CREATE AUTOMOTIVE RECOVERY JOBS CREDIT.
37.22 		Subdivision 1.Credit allowed. (a) A qualified business located in a create 
37.23 	automotive recovery zone is allowed a credit against the tax imposed under chapter 290 
37.24 	equal to $2,500 times the number of full-time equivalent employees receiving wages from 
37.25 	the qualified business for working at the facility during the taxable year. The qualified 
37.26 	business is allowed an additional credit equal to $1,000 times the number of full-time 
37.27 	equivalent employees receiving wages from the qualified business for working at the 
37.28 	facility during the taxable year in excess of 750 employees.
37.29 	(b) For purposes of this section, "employee" and "wages" have the meanings given 
37.30 	them in section 290.92, subdivisions 1 and 3.
37.31 	(c) For purposes of this section, "full-time equivalent employees" means the 
37.32 	equivalent of annualized expected hours of work equal to 2,080 hours.
38.1 		Subd. 2.Refundable. If the amount of the credit exceeds the liability for tax under 
38.2 	chapter 290, the commissioner of revenue shall refund the excess to the qualified business.
38.3 		Subd. 3.Appropriation. An amount sufficient to pay the refunds authorized by this 
38.4 	section is appropriated to the commissioner of revenue from the general fund.

38.5 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
38.6 	December 31, 2012.

38.7 	Sec. 32. Laws 1986, chapter 391, section 1, is amended to read:
38.8 	Section 1. 
38.9 	The legislature finds that providing areawide and local financial assistance, 
38.10 	including the provision of security for debt financing, but not including direct subsidies to 
38.11 	private interests, in the development of the former metropolitan stadium site Industrial 
38.12 	Development District 1 (Airport South) of the city of Bloomington, as amended, including 
38.13 	any phase of the Mall of America, and the Old Cedar Avenue Bridge, is a public purpose 
38.14 	of state, metropolitan, and local government in Minnesota and that it is a benefit to the 
38.15 	metropolitan area within the purpose of the metropolitan revenue distribution program 
38.16 	pursuant to chapter 473F.

38.17 	EFFECTIVE DATE. This section is effective upon local approval of and 
38.18 	compliance by the governing body of the city of Bloomington with the requirements 
38.19 	of Minnesota Statutes, section 645.021.

38.20 	Sec. 33. Laws 1995, chapter 264, article 5, section 44, subdivision 4, as amended by 
38.21 	Laws 1996, chapter 471, article 7, section 21, and Laws 1997, chapter 231, article 10, 
38.22 	section 12, and Laws 2008, chapter 154, article 9, section 18, is amended to read:
38.23 		Subd. 4.Authority. For housing replacement projects in the city of Crystal, 
38.24 	"authority" means the Crystal economic development authority. For housing replacement 
38.25 	projects in the city of Fridley, "authority" means the housing and redevelopment authority 
38.26 	in and for the city of Fridley or a successor in interest. For housing replacement 
38.27 	projects in the city of Minneapolis, "authority" means the Minneapolis community 
38.28 	development agency or its successors and assigns. For housing replacement projects 
38.29 	in the city of St. Paul, "authority" means the St. Paul housing and redevelopment 
38.30 	authority. For housing replacement projects in the city of Duluth, "authority" means the 
38.31 	Duluth economic development authority. For housing replacement projects in the city of 
38.32 	Richfield, "authority" is the authority as defined in Minnesota Statutes, section 469.174, 
38.33 	subdivision 2, that is designated by the governing body of the city of Richfield. For 
39.1 	housing replacement projects in the city of Columbia Heights, "authority" is the authority 
39.2 	as defined in Minnesota Statutes, section 469.174, subdivision 2, that is designated by 
39.3 	the governing body of the city of Columbia Heights. For housing replacement projects in 
39.4 	the city of Brooklyn Park, "authority" is the authority as defined in Minnesota Statutes, 
39.5 	section 469.174, subdivision 2, that is designated by the governing body of the city of 
39.6 	Brooklyn Park.

39.7 	EFFECTIVE DATE. This section is effective the day following final enactment 
39.8 	and applies to the city of Brooklyn Park without local approval under Minnesota Statutes, 
39.9 	section 645.023, subdivision 1, paragraph (a).

39.10 	Sec. 34. Laws 1995, chapter 264, article 5, section 45, subdivision 1, as amended by 
39.11 	Laws 1996, chapter 471, article 7, section 22, and Laws 1997, chapter 231, article 10, 
39.12 	section 13, and Laws 2002, chapter 377, article 7, section 6, and Laws 2008, chapter 154, 
39.13 	article 9, section 19, is amended to read:
39.14 		Subdivision 1.Creation of projects. (a) An authority may create a housing 
39.15 	replacement project under sections 44 to 47, as provided in this section.
39.16 	(b) For the cities of Crystal, Fridley, Richfield, and Columbia Heights, and Brooklyn 
39.17 	Park, the authority may designate up to 50 100 parcels in the city to be included in a 
39.18 	housing replacement district over the life of a district or districts. No more than ten 
39.19 	parcels may be included in year one of the district, with up to ten additional parcels added 
39.20 	to the district in each of the following nine years. For the cities of St. Paul and Duluth, 
39.21 	each authority may designate not more than 200 parcels in the city to be included in a 
39.22 	housing replacement district over the life of the district. For the city of Minneapolis, the 
39.23 	authority may designate not more than 400 parcels in the city to be included in housing 
39.24 	replacement districts over the life of the districts. The only parcels that may be included 
39.25 	in a district are (1) vacant sites, (2) parcels containing vacant houses, or (3) parcels 
39.26 	containing houses that are structurally substandard, as defined in Minnesota Statutes, 
39.27 	section 469.174, subdivision 10.
39.28 	(c) The city in which the authority is located must pay at least 25 percent of the 
39.29 	housing replacement project costs from its general fund, a property tax levy, or other 
39.30 	unrestricted money, not including tax increments.
39.31 	(d) The housing replacement district plan must have as its sole object the acquisition 
39.32 	of parcels for the purpose of preparing the site to be sold for market rate housing. As 
39.33 	used in this section, "market rate housing" means housing that has a market value that 
39.34 	does not exceed 150 percent of the average market value of single-family housing in that 
39.35 	municipality.

40.1 	EFFECTIVE DATE. This section is effective the day following final enactment 
40.2 	and applies to the affected cities without local approval under Minnesota Statutes, section 
40.3 	645.023, subdivision 1, paragraph (a).

40.4 	Sec. 35. Laws 2008, chapter 366, article 5, section 28, subdivision 1, is amended to 
40.5 	read:
40.6 		Subdivision 1.Additional taxes authorized; use of proceeds. (a) Notwithstanding 
40.7 	Minnesota Statutes, section 477A.016, or any other law, ordinance, or charter provision 
40.8 	to the contrary, the governing body of the city of Bloomington may impose any or all of 
40.9 	the taxes described in this section. The proceeds of any taxes imposed under this section 
40.10 	or section 27, less refunds and the cost of collection, must be used to provide financing 
40.11 	for parking facilities or other public improvements for any phase of the Mall of America 
40.12 	phase II. The Port Authority of the city of Bloomington may, but is not required to, 
40.13 	issue or cause the sale of bonds, a developer's note, or other obligations to finance the 
40.14 	improvements. If a governmental entity other than the city of Bloomington issues the 
40.15 	obligations used to finance the parking facilities and other public improvements, the 
40.16 	city may transfer the funds available under this section and section 27 for financing the 
40.17 	project to the entity that issued the bonds.
40.18 	(b) As a condition to exercising the authority provided in this subdivision, the 
40.19 	governing bodies of the city of Bloomington and the Bloomington Port Authority shall 
40.20 	require the developers of any phase of the Mall of America project to enter into a 
40.21 	labor peace agreement with the labor organization which is most actively engaged in 
40.22 	representing and attempting to represent hotel workers in Hennepin and Ramsey Counties. 
40.23 	The labor peace agreement must be an enforceable agreement and must prohibit the labor 
40.24 	organization and its members from engaging in any boycott or other activity advising 
40.25 	customers not to patronize any hotel that is part of any phase of the Mall of America for 
40.26 	at least the first five years of the hotel's operation, and must cover all operations at the 
40.27 	hotel, other than construction, alteration, or repair of the premises separately owned and 
40.28 	operated, which are conducted by lessees or tenants or under management agreements, 
40.29 	except retail operations, including gift, jewelry, and clothing shops that have annual gross 
40.30 	revenues of less than $250,000.

40.31 	EFFECTIVE DATE. This section is effective upon local approval of and 
40.32 	compliance by the governing body of the city of Bloomington with the requirements 
40.33 	of Minnesota Statutes, section 645.021, except that the provisions of paragraph (b) are 
40.34 	effective if the city of Bloomington approves any one of sections 35, 36, 37, 38 or 43.

41.1 	Sec. 36. Laws 2008, chapter 366, article 5, section 28, subdivision 2, is amended to 
41.2 	read:
41.3 		Subd. 2.Sales tax. The city of Bloomington may charter a special taxing authority, 
41.4 	which is a separate political subdivision. The geographic area of the special taxing 
41.5 	authority consists of Tax Increment Financing Districts No. 1-C and No. 1-G in the 
41.6 	city. The city council is the governing body of the special taxing authority. The special 
41.7 	taxing authority may impose, by resolution, a sales tax of not less than one-half of one 
41.8 	percent and not more than one percent within its boundaries. The provisions of Minnesota 
41.9 	Statutes, section 297A.99, except for subdivisions 2 and 3, govern the imposition, 
41.10 	administration, collection, and enforcement of the tax authorized in this subdivision.

41.11 	EFFECTIVE DATE. This section is effective upon local approval and compliance 
41.12 	by the governing body of the city of Bloomington with the provisions of Minnesota 
41.13 	Statutes, section 645.021.

41.14 	Sec. 37. Laws 2008, chapter 366, article 5, section 29, subdivision 1, is amended to 
41.15 	read:
41.16 		Subdivision 1.Issuing authority. (a) The city of Bloomington may contract with 
41.17 	any of the following authorities to issue and sell revenue bonds for the purposes and 
41.18 	in the amounts specified in subdivision 2:
41.19 	(1) the commissioner of finance, exercising the authority granted under this section 
41.20 	and Minnesota Statutes, sections 16A.672 to 16A.675;
41.21 	(2) the Agricultural and Economic Development Board, exercising the powers 
41.22 	granted under this section and Minnesota Statutes, chapter 41A; or
41.23 	(3) the Minnesota Public Facilities Authority, exercising the powers granted under 
41.24 	this section and Minnesota Statutes, chapter 446A.
41.25 	(b) The authority granted in this section is in addition to the statutes in paragraph 
41.26 	(a) and notwithstanding any contrary provisions in them.
41.27 	(c) The contract must include as a party the developer of any phase II of the Mall 
41.28 	of America and may include as a party any other entity deemed appropriate by the city 
41.29 	of Bloomington, the issuing authority, and the developer.

41.30 	EFFECTIVE DATE. This section is effective upon local approval of and 
41.31 	compliance by the governing body of the city of Bloomington with the requirements 
41.32 	of Minnesota Statutes, section 645.021.

42.1 	Sec. 38. Laws 2008, chapter 366, article 5, section 29, subdivision 2, is amended to 
42.2 	read:
42.3 		Subd. 2.Purposes and amounts. (a) The revenue bonds may be issued in a single 
42.4 	or multiple issues and sold for the following purposes:
42.5 	(1) to pay the costs to design, construct, furnish, and equip parking facilities and 
42.6 	related other public improvements for any phase II of the Mall of America;
42.7 	(2) to pay the costs of issuance, debt service, and bond insurance or other credit 
42.8 	enhancements, and to fund reserves; and
42.9 	(3) to refund bonds issued under this section.
42.10 	(b) The amount of bonds that may be issued for the purposes of paragraph (a), clause 
42.11 	(1), may not exceed per issue the estimated cost from time to time of the parking facilities 
42.12 	and other public improvements, including soft costs; the amount of bonds that may be 
42.13 	issued for the purposes of paragraph (a), clauses (2) and (3), is not limited.

42.14 	EFFECTIVE DATE. This section is effective upon local approval of and 
42.15 	compliance by the governing body of the city of Bloomington with the requirements 
42.16 	of Minnesota Statutes, section 645.021.

42.17 	Sec. 39. Laws 2008, chapter 366, article 5, section 29, subdivision 4, is amended to 
42.18 	read:
42.19 		Subd. 4.Sale and issuance; proceeds. (a) The issuing authority may sell and issue 
42.20 	the bonds on the terms and conditions the issuing authority determines to be in the best 
42.21 	interests of the state after reviewing an agreement between the city of Bloomington and 
42.22 	the developer of any phase II of the Mall of America setting out the terms upon which 
42.23 	the city of Bloomington will use the proceeds of the bond sales. The bonds may be sold 
42.24 	at public or private sale at a price or prices the issuing authority finds appropriate. The 
42.25 	issuing authority may enter any agreements or pledges the issuing authority determines 
42.26 	necessary or useful to sell the bonds that are not inconsistent with this section. 
42.27 	(b) The city may enter into a preliminary agreement with the issuing authority under 
42.28 	which the city agrees, if the revenue bonds are not issued, to pay or cause to be paid the 
42.29 	costs and expenses incurred by the issuing authority relating to the proposed issuance of 
42.30 	the revenue bonds.
42.31 	(c) The proceeds of the bonds issued under this section must be credited to a special 
42.32 	Mall of America revenue bond proceeds account with the issuing authority or a trustee 
42.33 	and are appropriated to the issuing authority for payment to the city of Bloomington 
42.34 	for the purposes specified in subdivision 2.

43.1 	EFFECTIVE DATE. This section is effective upon local approval of and 
43.2 	compliance by the governing body of the city of Bloomington with the requirements 
43.3 	of Minnesota Statutes, section 645.021.

43.4 	Sec. 40. Laws 2009, chapter 78, article 7, section 2, is amended to read:
43.5 	Sec. 2. IRON RANGE RESOURCES AND REHABILITATION; EARLY 
43.6 	SEPARATION INCENTIVE PROGRAM AUTHORIZATION.
43.7 	(a) Notwithstanding any law to the contrary, the commissioner of Iron Range 
43.8 	resources and rehabilitation, in consultation with the commissioner of management and 
43.9 	budget, may shall offer a targeted early separation incentive program for employees of the 
43.10 	commissioner who have attained the age of 60 years or who have received credit for at 
43.11 	least 30 years of allowable service under the provisions of Minnesota Statutes, chapter 352.
43.12 	(b) The early separation incentive program may include one or more of the following:
43.13 	(1) employer-paid postseparation health, medical, and dental insurance until age 
43.14 	65; and
43.15 	(2) cash incentives that may, but are not required to be, used to purchase additional 
43.16 	years of service credit through the Minnesota State Retirement System, to the extent that 
43.17 	the purchases are otherwise authorized by law.
43.18 	(c) The commissioner of Iron Range resources and rehabilitation shall establish 
43.19 	eligibility requirements for employees to receive an incentive.
43.20 	(d) The commissioner of Iron Range resources and rehabilitation, consistent with the 
43.21 	established program provisions under paragraph (b), and with the eligibility requirements 
43.22 	under paragraph (c), may designate specific programs or employees as eligible to be 
43.23 	offered the incentive program.
43.24 	(e) Acceptance of the offered incentive must be voluntary on the part of the 
43.25 	employee and must be in writing. The incentive may only be offered at the sole discretion 
43.26 	of the commissioner of Iron Range resources and rehabilitation.
43.27 	(f) The cost of the incentive is payable solely by funds made available to the 
43.28 	commissioner of Iron Range resources and rehabilitation by law, but only on prior approval 
43.29 	of the expenditures by a majority of the Iron Range Resources and Rehabilitation Board.
43.30 	(g) This section and section 3 are repealed June 30, 2011 December 31, 2012.

43.31 	EFFECTIVE DATE. This section is effective the day following final enactment.

43.32 	Sec. 41. CITY OF ST. PAUL; AUTHORITY TO EXERCISE SPECIAL LAW 
43.33 	AUTHORITY.
 44.1 	Notwithstanding the failure of the governing body of the city of St. Paul to approve 
44.2 	Laws 1995, chapter 264, article 5, sections 44 to 47, as required by Laws 1995, chapter 
44.3 	264, article 5, section 49, the provisions of sections 44 to 47, as amended, apply to the city 
44.4 	of St. Paul without local approval under Minnesota Statutes, section 645.023, subdivision 
44.5 	1, paragraph (a).

44.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

44.7 	Sec. 42. OAKDALE; TAX INCREMENT FINANCING DISTRICT.
 44.8 		Subdivision 1.Duration of district. Notwithstanding the provisions of Minnesota 
44.9 	Statutes, section 469.176, subdivision 1b, the city of Oakdale may collect tax increments 
44.10 	from Tax Increment Financing District No. 6 (Bergen Plaza) through December 31, 2024, 
44.11 	subject to the conditions described in subdivision 2.
44.12 		Subd. 2.Conditions for extension. (a) Subdivision 1 applies only if the following 
44.13 	conditions are met:
44.14 	(1) by July 1, 2011, the city of Oakdale has entered into a development agreement 
44.15 	with a private developer for development or redevelopment of all or a substantial part of 
44.16 	the area; and
44.17 	(2) by November 1, 2011, the city of Oakdale or a private developer commences 
44.18 	construction of streets, traffic improvements, water, sewer, or related infrastructure that 
44.19 	serves one or both of the parcels with the following parcel identification numbers: 
44.20 	2902921330001 and 2902921330005. For the purposes of this section, construction 
44.21 	commences upon grading or other visible improvements that are part of the subject 
44.22 	infrastructure.
44.23 	(b) All tax increments received by the city of Oakdale under subdivision 1 
44.24 	after December 31, 2016, must be used only to pay costs that are both (1) related to 
44.25 	redevelopment of the parcels specified in this subdivision including, without limitation, 
44.26 	any of the infrastructure referenced in this subdivision; and (2) otherwise eligible under 
44.27 	law to be paid with increments from the specified tax increment financing district, except 
44.28 	the authority under this clause does not apply to increments collected after the conclusion 
44.29 	of the duration limit under general law.

44.30 	EFFECTIVE DATE. This section is effective upon compliance by the governing 
44.31 	body of the city of Oakdale with the requirements of Minnesota Statutes, sections 
44.32 	469.1782, subdivision 2, and 645.021, subdivision 3.

45.1 	Sec. 43. CITY OF NORTH MANKATO; TAX INCREMENT FINANCING 
45.2 	DISTRICT; PROJECT REQUIREMENTS.
 45.3 		Subdivision 1.Addition of parcel to district. Notwithstanding Minnesota Statutes, 
45.4 	sections 469.174, subdivision 10, and 469.175, subdivision 4, paragraph (d), or any 
45.5 	other law to the contrary, the governing body of the city of North Mankato may elect to 
45.6 	expand the boundaries of Tax Increment Financing District No. IDD 1-8 to include real 
45.7 	property, described as follows:
45.8 	Lots 3, 4, 5, 6, 7, 8, B, and C and part of vacated Cedar Street, Lots A, 1, and 2 
45.9 	lying northwesterly of a line beginning at a point on the South line of Lot A 74.67 feet 
45.10 	West of the southeast corner of Lot A; thence northeasterly 107.30 feet to a point on 
45.11 	the East line of Lot 2; thence continuing northeasterly 47.47 feet to a point on the East 
45.12 	right-of-way line of vacated Cedar Street; said point being 101.93 feet southerly from the 
45.13 	intersection of the south right-of-way line of Wheeler Avenue and the east right-of-way 
45.14 	line vacated Cedar Street, Lamm's Second Addition, City of North Mankato, Nicollet 
45.15 	County, Minnesota (tax parcel number R 18.614.0040).
45.16 		Subd. 2.Five-year rule. Minnesota Statutes, section 469.1763, subdivision 3, does 
45.17 	not apply to Tax Increment Financing District No. IDD 1-8, as enlarged.
45.18 		Subd. 3.Original tax capacity of district. Upon addition of the property described 
45.19 	in subdivision 1 in Tax Increment Financing District No. IDD 1-8, the Nicollet County 
45.20 	auditor shall increase the original tax capacity of Tax Increment Financing District No. 
45.21 	IDD 1-8 by the amount required by Minnesota Statutes, section 469.177.
45.22 		Subd. 4.Use of increments. Tax increments and other revenues derived from any 
45.23 	portion of Tax Increment Financing District No. IDD 1-8, as enlarged, may be used:
45.24 	(1) to reimburse or otherwise pay the port authority of the city of North Mankato 
45.25 	and the city of North Mankato for allowable expenditures under the plan budget for Tax 
45.26 	Increment Financing District No. IDD 1-8, as amended from time to time; and
45.27 	(2) to pay the principal, premium, and interest on the $990,000 city of North 
45.28 	Mankato taxable general obligation tax increment bonds, series 2001D, issued by the city 
45.29 	of North Mankato for redevelopment costs in Tax Increment Financing District No. IDD 
45.30 	1-8 under the tax increment financing plan for Tax Increment Financing District No. IDD 
45.31 	1-8 as originally adopted January 16, 1990, and amended April 2, 2001.
45.32 		Subd. 5.Approval and effect of modification. When the governing body of the 
45.33 	city elects to exercise the authority provided in subdivision 1 to modify the district, the 
45.34 	following conditions apply:
45.35 	(1) it must comply with Minnesota Statutes, section 469.175, subdivision 4, except 
45.36 	for paragraph (d); and
46.1 	(2) beginning with the subsequent calendar year, except as otherwise explicitly 
46.2 	provided in this section, the district is subject to the provisions of Minnesota Statutes, 
46.3 	sections 469.174 to 469.1794, as if the request for certification of the entire district had 
46.4 	been made on the date the city elected to exercise the authority provided in subdivision 1.
46.5 		Subd. 6.Conditions. The authority granted by this section may only be exercised 
46.6 	by the city if:
46.7 	(1) by July 1, 2011, the city has entered into a development agreement with a private 
46.8 	developer for redevelopment of all or a substantial part of the area; and
46.9 	(2) substantial and ongoing construction of improvements for the project has begun 
46.10 	by November 1, 2011.

46.11 	EFFECTIVE DATE. This section is effective upon approval by the governing body 
46.12 	of the city of North Mankato and upon compliance by the city with Minnesota Statutes, 
46.13 	section 645.021, subdivision 3.

46.14 	Sec. 44. CITY OF COHASSET; USE OF TAX INCREMENTS.
 46.15 	(a) The authority operating Tax Increment Financing Districts No. 2-1 and No. 
46.16 	3-1 in the city of Cohasset may transfer tax increments from each of those districts to 
46.17 	the city in an amount equal to the advances made by the city from its general fund to 
46.18 	finance expenditures under Minnesota Statutes, section 469.176, subdivision 4, for the 
46.19 	benefit of that district.
46.20 	(b) The authority granted by this section may only be exercised by the authority if, 
46.21 	by July 1, 2011, the authority has entered into a development agreement with a private 
46.22 	developer of property to be served by the road financed by the expenditures under this 
46.23 	section and if substantial and ongoing construction has begun by November 1, 2011.

46.24 	EFFECTIVE DATE. This section is effective the day following final enactment, 
46.25 	upon approval by the governing body of the city of Cohasset and compliance with 
46.26 	Minnesota Statutes, section 645.021, subdivision 3.

46.27 	Sec. 45. 2010 DISTRIBUTIONS ONLY.
 46.28 	For distributions in 2010 only, a special fund is established to receive 27.544 cents 
46.29 	per ton that otherwise would be allocated under Minnesota Statutes, section 298.28, 
46.30 	subdivision 6:
46.31 	(1) 0.764 cent per ton must be paid to Northern Minnesota Dental to provide 
46.32 	incentives for at least two dentists to establish dental practices in high-need areas of the 
46.33 	taconite tax relief area;
47.1 	(2) 0.955 cent per ton must be paid to the city of Virginia for repairs and geothermal 
47.2 	heat at the Olcott Park Greenhouse/Virginia Commons project;
47.3 	(3) 0.796 cent per ton must be paid to the city of Virginia for health and safety 
47.4 	repairs at the Miners Memorial;
47.5 	(4) 1.114 cents per ton must be paid to the city of Eveleth for the reconstruction 
47.6 	of Highway 142/Grant and Park Avenues;
47.7 	(5) 0.478 cent per ton must be paid to the Greenway Joint Recreation Board for 
47.8 	upgrades and capital improvements to the public arena in Coleraine;
47.9 	(6) 0.796 cent per ton must be paid to the city of Calumet for water treatment and 
47.10 	pumphouse modifications;
47.11 	(7) 0.159 cent per ton must be paid to the city of Bovey for residential and 
47.12 	commercial claims for water damage due to water and flood-related damage caused by 
47.13 	the Canisteo Pit;
47.14 	(8) 0.637 cent per ton must be paid to the city of Nashwauk for a community and 
47.15 	child care center;
47.16 	(9) 0.637 cent per ton must be paid to the city of Keewatin for water and sewer 
47.17 	upgrades;
47.18 	(10) 0.637 cent per ton must be paid to the city of Marble for the city hall and 
47.19 	library project;
47.20 	(11) 0.955 cent per ton must be paid to the city of Grand Rapids for extension of 
47.21 	water and sewer services for Lakewood Housing;
47.22 	(12) 0.159 cent per ton must be paid to the city of Grand Rapids for exhibits at 
47.23 	the Children's Museum;
47.24 	(13) 0.637 cent per ton must be paid to the city of Grand Rapids for Block 20/21 soil 
47.25 	corrections. This amount must be matched by local sources;
47.26 	(14) 0.605 cent per ton must be paid to the city of Aitkin for three water loops;
47.27 	(15) 0.048 cent per ton must be paid to the city of Aitkin for signage;
47.28 	(16) 0.159 cent per ton must be paid to Aitkin County for a trail; 
47.29 	(17) 0.637 cent per ton must be paid to the city of Cohasset for the Beiers Road 
47.30 	railroad crossing;
47.31 	(18) 0.088 cent per ton must be paid to the town of Clinton for expansion and 
47.32 	striping of the community center parking lot;
47.33 	(19) 0.398 cent per ton must be paid to the city of Kinney for water line replacement;
47.34 	(20) 0.796 cent per ton must be paid to the city of Gilbert for infrastructure 
47.35 	improvements, milling, and overlay for Summit Street between Alaska Avenue and 
47.36 	Highway 135;
48.1 	(21) 0.318 cent per ton must be paid to the city of Gilbert for sanitary sewer main 
48.2 	replacements and improvements in the Northeast Lower Alley area;
48.3 	(22) 0.637 cent per ton must be paid to the town of White for replacement of the 
48.4 	Stepetz Road culvert;
48.5 	(23) 0.637 cent per ton must be paid to the city of Buhl for reconstruction of Sharon 
48.6 	Street and associated infrastructure;
48.7 	(24) 0.637 cent per ton must be paid to the city of Mountain Iron for site 
48.8 	improvements at the Park Ridge development;
48.9 	(25) 0.796 cent per ton must be paid to the city of Mountain Iron for infrastructure 
48.10 	and site preparation for its renewable and sustainable energy park;
48.11 	(26) 0.637 cent per ton must be paid to the city of Biwabik for sanitary sewer 
48.12 	improvements;
48.13 	(27) 0.796 cent per ton must be paid to the city of Aurora for alley and road 
48.14 	rebuilding for the Summit Addition;
48.15 	(28) 0.955 cent per ton must be paid to the city of Silver Bay for bioenergy facility 
48.16 	improvements;
48.17 	(29) 0.318 cent per ton must be paid to the city of Grand Marais for water and 
48.18 	sewer infrastructure improvements;
48.19 	(30) 0.318 cent per ton must be paid to the city of Orr for airport, water, and sewer 
48.20 	improvements;
48.21 	(31) 0.318 cent per ton must be paid to the city of Cook for street and bridge 
48.22 	improvements;
48.23 	(32) 0.955 cent per ton must be paid to the city of Ely for street, water, and sewer 
48.24 	improvements;
48.25 	(33) 0.318 cent per ton must be paid to the city of Tower for water and sewer 
48.26 	improvements;
48.27 	(34) 0.955 cent per ton must be paid to the city of Two Harbors for water and sewer 
48.28 	improvements;
48.29 	(35) 0.637 cent per ton must be paid to the city of Babbitt for water and sewer 
48.30 	improvements;
48.31 	(36) 0.096 cent per ton must be paid to the township of Duluth for infrastructure 
48.32 	improvements;
48.33 	(37) 0.096 cent per ton must be paid to the township of Tofte for infrastructure 
48.34 	improvements;
48.35 	(38) 3.184 cents per ton must be paid to the city of Hibbing for sewer improvements;
49.1 	(39) 1.273 cents per ton must be paid to the city of Chisholm for NW Area Project 
49.2 	infrastructure improvements; 
49.3 	(40) 0.318 cent per ton must be paid to the city of Chisholm for health and safety 
49.4 	improvements at the athletic facility; 
49.5 	(41) 0.796 cent per ton must be paid to the city of Hoyt Lakes for residential street 
49.6 	improvements;
49.7 	(42) 0.796 cent per ton must be paid to the Bois Forte Indian Reservation for 
49.8 	infrastructure related to a housing development;
49.9 	(43) 0.159 cent per ton must be paid to Balkan Township for building improvements; 
49.10 	and
49.11 	(44) 0.159 cent per ton must be paid to the city of Grand Rapids for a grant to 
49.12 	a nonprofit for a signage kiosk.

49.13 	EFFECTIVE DATE. This section is effective for the 2010 distribution, all of which 
49.14 	must be made in the August 2010 payment.

49.15 	Sec. 46. IRON RANGE HERITAGE CENTER AND PERPICH ARCHIVES.
 49.16 	The Iron Range Resources and Rehabilitation Board shall change the name of 
49.17 	"Ironworld Discovery Center" to "Iron Range Heritage Center and Perpich Archives" 
49.18 	consistent with the changes in section 48.

49.19 	Sec. 47. APPROPRIATION; DEPARTMENT OF REVENUE.
 49.20 		Subdivision 1.Tax system management. (a) $2,428,500 is appropriated to the 
49.21 	commissioner of revenue for additional activities to identify and collect tax liabilities from 
49.22 	individuals and businesses that currently do not pay all taxes owed. This initiative is 
49.23 	expected to result in new general fund revenues of $6,532,500 for fiscal year 2011.
49.24 	(b) The department must report to the chairs of the house of representative Ways 
49.25 	and Means and senate Finance Committees by March 15, 2011, and January 15, 2012, 
49.26 	on the following performance indicators:
49.27 	(1) the number of corporations noncompliant with the corporate tax system each 
49.28 	year and the percentage and dollar amounts of valid tax liabilities collected;
49.29 	(2) the number of businesses noncompliant with the sales and use tax system and the 
49.30 	percentage and dollar amount of the valid tax liabilities collected; and
49.31 	(3) the number of individual noncompliant cases resolved and the percentage and 
49.32 	dollar amount of valid tax liabilities collected.
50.1 	(c) The reports must also identify base-level expenditures and staff positions related 
50.2 	to compliance and audit activities, including baseline information as of January 1, 2009. 
50.3 	The information must be provided at the budget activity level.
50.4 		Subd. 2.Debt collection management. $935,000 is for additional activities to 
50.5 	identify and collect tax liabilities from individuals and businesses that currently do not 
50.6 	pay all taxes owed. This initiative is expected to result in new general fund revenues of 
50.7 	$6,900,000 for fiscal year 2011.

50.8 	Sec. 48. REVISOR'S INSTRUCTION.
 50.9 	(a) The revisor of statutes shall change the terms "Douglas J. Johnson economic 
50.10 	protection trust fund" or similar terms to "Mesabi miners' memorial economic development 
50.11 	fund" or similar terms wherever they appear in Minnesota Statutes. The revisor shall also 
50.12 	make grammatical changes related to the changes in terms.
50.13 	(b) The revisor of statutes shall change the terms "Ironworld Discovery Center" to 
50.14 	"Iron Range Heritage Center and Perpich Archives" wherever they appear in Minnesota 
50.15 	Statutes.

50.16 	Sec. 49.  REPEALER.
 50.17 	Laws 1996, chapter 464, article 1, section 8, subdivision 5, is repealed.

50.18 	EFFECTIVE DATE. This section is effective upon local approval of and 
50.19 	compliance by the governing body of the city of Bloomington with the requirements 
50.20 	of Minnesota Statutes, section 645.021.