<a id="pl.1.3"></a><var>1.3</var>loan program for manufacturing businesses in the state; authorizing sale and <br/>
<a id="pl.1.4"></a><var>1.4</var>issuance of revenue bonds;proposing coding for new law in Minnesota Statutes, <br/>
<a id="pl.1.5"></a><var>1.5</var>chapter 116J.<br/>
<a id="pl.1.6"></a><var>1.6</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
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<a id="bill.0.1.0"></a><a id="pl.1.7"></a><var>1.7</var>    Section 1. <b>[116J.4361] MANUFACTURING EQUIPMENT LOAN PROGRAM.</b><br/>
<a id="pl.1.8"></a><var>1.8</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br/>
<a id="pl.1.9"></a><var>1.9</var>have the meanings given.<br/>
<a id="pl.1.10"></a><var>1.10</var>(b) "Business entity" means a sole proprietorship, partnership, limited liability <br/>
<a id="pl.1.11"></a><var>1.11</var>corporation, or corporation.<br/>
<a id="pl.1.12"></a><var>1.12</var>(c) "Manufacturing" means manufacturing, fabricating, mining, or refining of <br/>
<a id="pl.1.13"></a><var>1.13</var>materials resulting in the production of personal property to be sold at wholesale or retail.<br/>
<a id="pl.1.14"></a><var>1.14</var>(d) "Manufacturing equipment" means machinery and equipment purchased and <br/>
<a id="pl.1.15"></a><var>1.15</var>used in this state by the purchaser essential to the integrated production process of <br/>
<a id="pl.1.16"></a><var>1.16</var>manufacturing.<br/>
<a id="pl.1.17"></a><var>1.17</var>(e) "Qualifying manufacturing business" means a business entity with at least .. <br/>
<a id="pl.1.18"></a><var>1.18</var>employees that is involved in manufacturing and is located or has a physical presence in <br/>
<a id="pl.1.19"></a><var>1.19</var>the state at which the manufacturing equipment will be used.<br/>
<a id="pl.1.20"></a><var>1.20</var>    Subd. 2. <b>Purpose.</b> The commissioner shall administer a manufacturing equipment <br/>
<a id="pl.1.21"></a><var>1.21</var>loan program under this section to make low-interest, long-term loans to qualifying <br/>
<a id="pl.1.22"></a><var>1.22</var>manufacturing businesses to purchase and install manufacturing equipment. A <br/>
<a id="pl.1.23"></a><var>1.23</var>manufacturing business shall apply for a loan under this section in a manner and on a form <br/>
<a id="pl.1.24"></a><var>1.24</var>prescribed by the commissioner. Loans under this section are intended to cover up to 50 <br/>
<a id="pl.1.25"></a><var>1.25</var>percent of the cost of the project.<br/>
<a id="pl.2.1"></a><var>2.1</var>    Subd. 3. <b>Loan proposals.</b> At least once a year, the commissioner shall publish in <br/>
<a id="pl.2.2"></a><var>2.2</var>the State Register a request for proposals for a loan under this section. Within 45 days <br/>
<a id="pl.2.3"></a><var>2.3</var>after the deadline for receipt of proposals, the commissioner shall select proposals based <br/>
<a id="pl.2.4"></a><var>2.4</var>on the following criteria:<br/>
<a id="pl.2.5"></a><var>2.5</var>    (1) the business growth and jobs that will be created as a result of the loan;<br/>
<a id="pl.2.6"></a><var>2.6</var>(2) the reliability, efficiency, and cost-effectiveness of the manufacturing equipment <br/>
<a id="pl.2.7"></a><var>2.7</var>to be installed under the proposal;<br/>
<a id="pl.2.8"></a><var>2.8</var>    (3) the geographic distribution of projects throughout the state;<br/>
<a id="pl.2.9"></a><var>2.9</var>    (4) the percentage of total project cost requested;<br/>
<a id="pl.2.10"></a><var>2.10</var>    (5) the proposed security for payback of the loan; and<br/>
<a id="pl.2.11"></a><var>2.11</var>    (6) other criteria determined by the commissioner to maximize economic <br/>
<a id="pl.2.12"></a><var>2.12</var>development with loans under this section.<br/>
<a id="pl.2.13"></a><var>2.13</var>    Subd. 4. <b>Loan terms.</b> A loan under this section must be issued at the lowest interest <br/>
<a id="pl.2.14"></a><var>2.14</var>rate required to recover principal and interest plus the costs of issuing the loan, and must be <br/>
<a id="pl.2.15"></a><var>2.15</var>for a minimum of 15 years, unless the commissioner determines that a shorter loan period <br/>
<a id="pl.2.16"></a><var>2.16</var>is necessary and feasible. A grace period of up to 24 months before payments become due <br/>
<a id="pl.2.17"></a><var>2.17</var>on the loan may be extended by the commissioner to qualifying manufacturing businesses.<br/>
<a id="pl.2.18"></a><var>2.18</var>    Subd. 5. <b>Account.</b> A manufacturing equipment loan account is established in the <br/>
<a id="pl.2.19"></a><var>2.19</var>state treasury. Money in the account consists of the proceeds of revenue bonds issued <br/>
<a id="pl.2.20"></a><var>2.20</var>under section 
<statute_ref>116J.4362</statute_ref>, interest and other earnings on money in the account, money <br/>
<a id="pl.2.21"></a><var>2.21</var>received in repayment of loans from the account, and money from any other source <br/>
<a id="pl.2.22"></a><var>2.22</var>credited to the account.<br/>
<a id="pl.2.23"></a><var>2.23</var>    Subd. 6. <b>Appropriation.</b> Money in the account is appropriated to the commissioner <br/>
<a id="pl.2.24"></a><var>2.24</var>to make manufacturing equipment loans under this section and to the commissioner of <br/>
<a id="pl.2.25"></a><var>2.25</var>management and budget to pay debt service and other costs under section 
<statute_ref>116J.4362</statute_ref>. <br/>
<a id="pl.2.26"></a><var>2.26</var>Payment of debt service costs and funding reserves take priority over use of money in the <br/>
<a id="pl.2.27"></a><var>2.27</var>account for any other purpose.<br/>
<br/>
<a id="bill.0.2.0"></a><a id="pl.2.28"></a><var>2.28</var>    Sec. 2. <b>[116J.4362] MANUFACTURING EQUIPMENT LOAN REVENUE </b><br/>
<a id="pl.2.29"></a><var>2.29</var><b>BONDS.</b><br/>
<a id="pl.2.30"></a><var>2.30</var>    Subdivision 1. <b>Bonding authority; definition.</b> (a) The commissioner of <br/>
<a id="pl.2.31"></a><var>2.31</var>management and budget, if requested by the commissioner of employment and economic <br/>
<a id="pl.2.32"></a><var>2.32</var>development, shall sell and issue state revenue bonds for the following purposes:<br/>
<a id="pl.2.33"></a><var>2.33</var>    (1) to make manufacturing equipment loans under section 
<statute_ref>116J.4361</statute_ref>;<br/>
<a id="pl.2.34"></a><var>2.34</var>    (2) to pay the costs of issuance, debt service, and bond insurance or other credit <br/>
<a id="pl.2.35"></a><var>2.35</var>enhancements, and to fund reserves; and<br/>
<a id="pl.3.1"></a><var>3.1</var>    (3) to refund bonds issued under this section.<br/>
<a id="pl.3.2"></a><var>3.2</var>    (b) The aggregate principal amount of bonds for the purposes of paragraph (a), <br/>
<a id="pl.3.3"></a><var>3.3</var>clause (1), that may be outstanding at any time may not exceed $.......; the principal <br/>
<a id="pl.3.4"></a><var>3.4</var>amount of bonds that may be issued for the purposes of paragraph (a), clauses (2) and <br/>
<a id="pl.3.5"></a><var>3.5</var>(3), is not limited.<br/>
<a id="pl.3.6"></a><var>3.6</var>    (c) For the purpose of this section, "commissioner" means the commissioner of <br/>
<a id="pl.3.7"></a><var>3.7</var>management and budget.<br/>
<a id="pl.3.8"></a><var>3.8</var>    Subd. 2. <b>Procedure.</b> The commissioner may sell and issue the bonds on the terms <br/>
<a id="pl.3.9"></a><var>3.9</var>and conditions the commissioner determines to be in the best interests of the state. The <br/>
<a id="pl.3.10"></a><var>3.10</var>bonds may be sold at public or private sale. The commissioner may enter into any <br/>
<a id="pl.3.11"></a><var>3.11</var>agreements or pledges the commissioner determines necessary or useful to sell the bonds <br/>
<a id="pl.3.12"></a><var>3.12</var>that are not inconsistent with section 116J.4361. Sections 
<statute_ref>16A.672</statute_ref> to 
<statute_ref>16A.675</statute_ref> apply to <br/>
<a id="pl.3.13"></a><var>3.13</var>the bonds. The proceeds of the bonds issued under this section must be credited to the <br/>
<a id="pl.3.14"></a><var>3.14</var>manufacturing equipment loan account created under section 116J.4361.<br/>
<a id="pl.3.15"></a><var>3.15</var>    Subd. 3. <b>Revenue sources.</b> The debt service on the bonds is payable only from the <br/>
<a id="pl.3.16"></a><var>3.16</var>following sources:<br/>
<a id="pl.3.17"></a><var>3.17</var>    (1) revenue credited to the manufacturing equipment loan account from the sources <br/>
<a id="pl.3.18"></a><var>3.18</var>identified in section 116J.4361 or from any other source; and<br/>
<a id="pl.3.19"></a><var>3.19</var>    (2) other revenues pledged to the payment of the bonds.<br/>
<a id="pl.3.20"></a><var>3.20</var>    Subd. 4. <b>Refunding bonds.</b> The commissioner may issue bonds to refund <br/>
<a id="pl.3.21"></a><var>3.21</var>outstanding bonds issued under subdivision 1, including the payment of any redemption <br/>
<a id="pl.3.22"></a><var>3.22</var>premiums on the bonds and any interest accrued or to accrue to the first redemption date <br/>
<a id="pl.3.23"></a><var>3.23</var>after delivery of the refunding bonds. The proceeds of the refunding bonds may, at the <br/>
<a id="pl.3.24"></a><var>3.24</var>discretion of the commissioner, be applied to the purchases or payment at maturity of the <br/>
<a id="pl.3.25"></a><var>3.25</var>bonds to be refunded, or the redemption of the outstanding bonds on the first redemption <br/>
<a id="pl.3.26"></a><var>3.26</var>date after delivery of the refunding bonds and may, until so used, be placed in escrow to <br/>
<a id="pl.3.27"></a><var>3.27</var>be applied to the purchase, retirement, or redemption. Refunding bonds issued under this <br/>
<a id="pl.3.28"></a><var>3.28</var>subdivision must be issued and secured in the manner provided by the commissioner.<br/>
<a id="pl.3.29"></a><var>3.29</var>    Subd. 5. <b>Not a general or moral obligation.</b> Bonds issued under this section are <br/>
<a id="pl.3.30"></a><var>3.30</var>not public debt, and the full faith, credit, and taxing powers of the state are not pledged <br/>
<a id="pl.3.31"></a><var>3.31</var>for their payment. The bonds may not be paid, directly in whole or in part from a tax of <br/>
<a id="pl.3.32"></a><var>3.32</var>statewide application on any class of property, income, transaction, or privilege. Payment <br/>
<a id="pl.3.33"></a><var>3.33</var>of the bonds is limited to the revenues explicitly authorized to be pledged under this <br/>
<a id="pl.3.34"></a><var>3.34</var>section. The state neither makes nor has a moral obligation to pay the bonds if the pledged <br/>
<a id="pl.3.35"></a><var>3.35</var>revenues and other legal security for them is insufficient.<br/>
<a id="pl.4.1"></a><var>4.1</var>    Subd. 6. <b>Trustee.</b> The commissioner may contract with and appoint a trustee for <br/>
<a id="pl.4.2"></a><var>4.2</var>bondholders. The trustee has the powers and authority vested in it by the commissioner <br/>
<a id="pl.4.3"></a><var>4.3</var>under the bond and trust indentures.<br/>
<a id="pl.4.4"></a><var>4.4</var>    Subd. 7. <b>Pledges.</b> A pledge made by the commissioner is valid and binding from <br/>
<a id="pl.4.5"></a><var>4.5</var>the time the pledge is made. The money or property pledged and later received by the <br/>
<a id="pl.4.6"></a><var>4.6</var>commissioner is immediately subject to the lien of the pledge without any physical <br/>
<a id="pl.4.7"></a><var>4.7</var>delivery of the property or money or further act, and the lien of the pledge is valid and <br/>
<a id="pl.4.8"></a><var>4.8</var>binding as against all parties having claims of any kind in tort, contract, or otherwise <br/>
<a id="pl.4.9"></a><var>4.9</var>against the commissioner, whether or not those parties have notice of the lien or pledge. <br/>
<a id="pl.4.10"></a><var>4.10</var>Neither the order nor any other instrument by which a pledge is created need be recorded.<br/>
<a id="pl.4.11"></a><var>4.11</var>    Subd. 8. <b>Bonds; purchase and cancellation.</b> The commissioner, subject to <br/>
<a id="pl.4.12"></a><var>4.12</var>agreements with bondholders that may then exist, may, out of any money available for the <br/>
<a id="pl.4.13"></a><var>4.13</var>purpose, purchase bonds of the commissioner at a price not exceeding (1) if the bonds are <br/>
<a id="pl.4.14"></a><var>4.14</var>then redeemable, the redemption price then applicable plus accrued interest to the next <br/>
<a id="pl.4.15"></a><var>4.15</var>interest payment date thereon, or (2) if the bonds are not redeemable, the redemption price <br/>
<a id="pl.4.16"></a><var>4.16</var>applicable on the first date after the purchase upon which the bonds become subject to <br/>
<a id="pl.4.17"></a><var>4.17</var>redemption plus accrued interest to that date.<br/>
<a id="pl.4.18"></a><var>4.18</var>    Subd. 9. <b>State pledge against impairment of contracts.</b> The state pledges and <br/>
<a id="pl.4.19"></a><var>4.19</var>agrees with the holders of any bonds that the state will not limit or alter the rights vested in <br/>
<a id="pl.4.20"></a><var>4.20</var>the commissioner to fulfill the terms of any agreements made with the bondholders, or <br/>
<a id="pl.4.21"></a><var>4.21</var>in any way impair the rights and remedies of the holders until the bonds, together with <br/>
<a id="pl.4.22"></a><var>4.22</var>interest on them, with interest on any unpaid installments of interest, and all costs and <br/>
<a id="pl.4.23"></a><var>4.23</var>expenses in connection with any action or proceeding by or on behalf of the bondholders, <br/>
<a id="pl.4.24"></a><var>4.24</var>are fully met and discharged. The commissioner may include this pledge and agreement <br/>
<a id="pl.4.25"></a><var>4.25</var>of the state in any agreement with the holders of bonds issued under this section.<br/>