1.1 	A bill for an act
1.2 	relating to economic development; expanding the Minnesota investment fund; 
1.3 	removing a restriction on construction mitigation pilot program grants;amending 
1.4 	Minnesota Statutes 2008, section 116J.8731, subdivisions 1, 4; Minnesota 
1.5 	Statutes 2009 Supplement, section 116J.8731, subdivision 3; Laws 2009, chapter 
1.6 	78, article 1, section 3, subdivision 2.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2008, section 116J.8731, subdivision 1, is amended to 
1.9 	read:
1.10 		Subdivision 1.Purpose. The Minnesota investment fund is created to provide 
1.11 	financial and technical assistance, through partnership with communities, for the creation 
1.12 	of new employment or to maintain existing employment, and for business start-up, 
1.13 	expansions, and retention. It shall accomplish these goals by the following means:
1.14 	(1) creation or retention of permanent private-sector jobs in order to create 
1.15 	above-average economic growth consistent with environmental protection, which includes 
1.16 	investments in technology and equipment that increase productivity and provide for a 
1.17 	higher wage;
1.18 	(2) stimulation or leverage of private investment to ensure economic renewal and 
1.19 	competitiveness;
1.20 	(3) increasing the local tax base, based on demonstrated measurable outcomes, to 
1.21 	guarantee a diversified industry mix;
1.22 	(4) improving the quality of existing jobs, based on increases in wages or 
1.23 	improvements in the job duties, training, or education associated with those jobs;
2.1 	(5) improvement of employment and economic opportunity for citizens in the region 
2.2 	to create a reasonable standard of living, consistent with federal and state guidelines 
2.3 	on low- to moderate-income persons; and
2.4 	(6) stimulation of productivity growth through improved manufacturing or new 
2.5 	technologies, including cold weather testing.

2.6 	Sec. 2. Minnesota Statutes 2009 Supplement, section 116J.8731, subdivision 3, is 
2.7 	amended to read:
2.8 		Subd. 3.Eligible expenditures. The money appropriated for this section may be 
2.9 	used to fund:
2.10 	(1) fund grants for infrastructure, loans, loan guarantees, interest buy-downs, and 
2.11 	other forms of participation with private sources of financing, provided that a loan to a 
2.12 	private enterprise must be for a principal amount not to exceed one-half of the cost of the 
2.13 	project for which financing is sought; and
2.14 	(2) fund strategic investments in renewable energy market development, such as 
2.15 	low interest loans for renewable energy equipment manufacturing, training grants to 
2.16 	support renewable energy workforce, development of a renewable energy supply chain 
2.17 	that represents and strengthens the industry throughout the state, and external marketing 
2.18 	to garner more national and international investment into Minnesota's renewable sector. 
2.19 	Expenditures in external marketing for renewable energy market development are not 
2.20 	subject to the limitations in clause (1).; and
2.21 	(3) provide private entrepreneurs with training, other technical assistance, and 
2.22 	financial assistance, as provided in the small cities development block grant program.

2.23 	Sec. 3. Minnesota Statutes 2008, section 116J.8731, subdivision 4, is amended to read:
2.24 		Subd. 4.Eligible projects. Assistance must be evaluated on the existence of the 
2.25 	following conditions:
2.26 	(1) creation of new jobs, retention of existing jobs, or improvements in the quality of 
2.27 	existing jobs as measured by the wages, skills, or education associated with those jobs;
2.28 	(2) increase in the tax base;
2.29 	(3) the project can demonstrate that investment of public dollars induces private 
2.30 	funds;
2.31 	(4) the project can demonstrate an excessive public infrastructure or improvement 
2.32 	cost beyond the means of the affected community and private participants in the project;
2.33 	(5) the project provides higher wage levels to the community or will add value to 
2.34 	current workforce skills;
3.1 	(6) the project supports the development of microenterprises, as defined by federal 
3.2 	statutes, through financial assistance, technical assistance, advice, or business services;
3.3 	(6) (7) whether assistance is necessary to retain existing business;
3.4 	(7) (8) whether assistance is necessary to attract out-of-state business; and
3.5 	(8) (9) the project promotes or advances the green economy as defined in section 
3.6 	116J.437.
3.7 	A grant or loan cannot be made based solely on a finding that the conditions in 
3.8 	clause (6) (7) or (7) (8) exist. A finding must be made that a condition in clause (1), (2), 
3.9 	(3), (4), or, (5), or (6) also exists.
3.10 	Applications recommended for funding shall be submitted to the commissioner.

3.11 	Sec. 4. Laws 2009, chapter 78, article 1, section 3, subdivision 2, is amended to read:

3.12
3.13	Subd. 2.Business and Community 
Development
 		8,980,000
		8,980,000

3.14	Appropriations by Fund
	
3.15	General
	7,941,000
	7,941,000
	
3.16	Remediation
	700,000
	700,000
	
3.17
3.18	Workforce 
Development
	339,000
	339,000
	
3.19 	(a) $700,000 the first year and $700,000 the 
3.20 	second year are from the remediation fund for 
3.21 	contaminated site cleanup and development 
3.22 	grants under Minnesota Statutes, section 
3.23 	116J.554. This appropriation is available 
3.24 	until expended.
3.25 	(b) $200,000 each year is from the general 
3.26 	fund for a grant to WomenVenture for 
3.27 	women's business development programs 
3.28 	and for programs that encourage and assist 
3.29 	women to enter nontraditional careers in the 
3.30 	trades; manual and technical occupations; 
3.31 	science, technology, engineering, and 
3.32 	mathematics-related occupations; and green 
3.33 	jobs. This appropriation may be matched 
3.34 	dollar for dollar with any resources available 
3.35 	from the federal government for these 
4.1 	purposes with priority given to initiatives 
4.2 	that have a goal of increasing by at least ten 
4.3 	percent the number of women in occupations 
4.4 	where women currently comprise less than 25 
4.5 	percent of the workforce. The appropriation 
4.6 	is available until expended.
4.7 	(c) $105,000 each year is from the general 
4.8 	fund and $50,000 each year is from the 
4.9 	workforce development fund for a grant to 
4.10 	the Metropolitan Economic Development 
4.11 	Association for continuing minority business 
4.12 	development programs in the metropolitan 
4.13 	area. This appropriation must be used for the 
4.14 	sole purpose of providing free or reduced 
4.15 	fee business consulting services to minority 
4.16 	entrepreneurs and contractors.
4.17 	(d)(1) $500,000 each year is from the 
4.18 	general fund for a grant to BioBusiness 
4.19 	Alliance of Minnesota for bioscience 
4.20 	business development programs to promote 
4.21 	and position the state as a global leader 
4.22 	in bioscience business activities. This 
4.23 	appropriation is added to the department's 
4.24 	base. These funds may be used to create, 
4.25 	recruit, retain, and expand biobusiness 
4.26 	activity in Minnesota; implement the 
4.27 	destination 2025 statewide plan; update 
4.28 	a statewide assessment of the bioscience 
4.29 	industry and the competitive position of 
4.30 	Minnesota-based bioscience businesses 
4.31 	relative to other states and other nations; 
4.32 	and develop and implement business and 
4.33 	scenario-planning models to create, recruit, 
4.34 	retain, and expand biobusiness activity in 
4.35 	Minnesota.
5.1 	(2) The BioBusiness Alliance must report 
5.2 	each year by February 15 to the committees 
5.3 	of the house of representatives and the senate 
5.4 	having jurisdiction over bioscience industry 
5.5 	activity in Minnesota on the use of funds; 
5.6 	the number of bioscience businesses and 
5.7 	jobs created, recruited, retained, or expanded 
5.8 	in the state since the last reporting period; 
5.9 	the competitive position of the biobusiness 
5.10 	industry; and utilization rates and results of 
5.11 	the business and scenario-planning models 
5.12 	and outcomes resulting from utilization of 
5.13 	the business and scenario-planning models.
5.14 	(e)(1) Of the money available in the 
5.15 	Minnesota Investment Fund, Minnesota 
5.16 	Statutes, section 116J.8731, to the 
5.17 	commissioner of the Department of 
5.18 	Employment and Economic Development, 
5.19 	up to $3,000,000 is appropriated in fiscal year 
5.20 	2010 for a loan to an aircraft manufacturing 
5.21 	and assembly company, associated with the 
5.22 	aerospace industry, for equipment utilized 
5.23 	to establish an aircraft completion center 
5.24 	at the Minneapolis-St. Paul International 
5.25 	Airport. The finishing center must use the 
5.26 	state's vocational training programs designed 
5.27 	specifically for aircraft maintenance training, 
5.28 	and to the extent possible, work to recruit 
5.29 	employees from these programs. The center 
5.30 	must create at least 200 new manufacturing 
5.31 	jobs within 24 months of receiving the 
5.32 	loan, and create not less than 500 new 
5.33 	manufacturing jobs over a five-year period 
5.34 	in Minnesota.
5.35 	(2) This loan is not subject to loan limitations 
5.36 	under Minnesota Statutes, section 116J.8731, 
6.1 	subdivision 5. Any match requirements 
6.2 	under Minnesota Statutes, section 116J.8731, 
6.3 	subdivision 3, may be made from current 
6.4 	resources. This is a onetime appropriation 
6.5 	and is effective the day following final 
6.6 	enactment.
6.7 	(f) $65,000 each year is from the general 
6.8 	fund for a grant to the Minnesota Inventors 
6.9 	Congress, of which at least $6,500 must be 
6.10 	used for youth inventors.
6.11 	(g) $200,000 the first year and $200,000 the 
6.12 	second year are for the Office of Science and 
6.13 	Technology. This is a onetime appropriation.
6.14 	(h) $500,000 the first year and $500,000 the 
6.15 	second year are for a grant to Enterprise 
6.16 	Minnesota, Inc., for the small business 
6.17 	growth acceleration program under 
6.18 	Minnesota Statutes, section 116O.115. This 
6.19 	is a onetime appropriation and is available 
6.20 	until expended.
6.21 	(i)(1) $100,000 each year is from the 
6.22 	workforce development fund for a grant 
6.23 	under Minnesota Statutes, section 116J.421, 
6.24 	to the Rural Policy and Development 
6.25 	Center at St. Peter, Minnesota. The grant 
6.26 	shall be used for research and policy 
6.27 	analysis on emerging economic and social 
6.28 	issues in rural Minnesota, to serve as a 
6.29 	policy resource center for rural Minnesota 
6.30 	communities, to encourage collaboration 
6.31 	across higher education institutions, to 
6.32 	provide interdisciplinary team approaches 
6.33 	to research and problem-solving in rural 
6.34 	communities, and to administer overall 
6.35 	operations of the center.
7.1 	(2) The grant shall be provided upon the 
7.2 	condition that each state-appropriated 
7.3 	dollar be matched with a nonstate dollar. 
7.4 	Acceptable matching funds are nonstate 
7.5 	contributions that the center has received and 
7.6 	have not been used to match previous state 
7.7 	grants. Any funds not spent the first year are 
7.8 	available the second year.
7.9 	(j) Notwithstanding Minnesota Statutes, 
7.10 	section 268.18, subdivision 2, $414,000 of 
7.11 	funds collected for unemployment insurance 
7.12 	administration under this subdivision is 
7.13 	appropriated as follows: $250,000 to Lake 
7.14 	County for ice storm damage; $64,000 is for 
7.15 	the city of Green Isle for reimbursement of 
7.16 	fire relief efforts and other expenses incurred 
7.17 	as a result of the fire in the city of Green Isle; 
7.18 	and $100,000 is to develop the construction 
7.19 	mitigation pilot program to make grants for 
7.20 	up to five projects statewide available to local 
7.21 	government units to mitigate the impacts of 
7.22 	transportation construction on local small 
7.23 	business. These are onetime appropriations 
7.24 	and are available until expended.
7.25 	(k) Up to $10,000,000 is appropriated 
7.26 	from the Minnesota minerals 21st century 
7.27 	fund to the commissioner of Iron Range 
7.28 	resources and rehabilitation to make a grant 
7.29 	or forgivable loan to a manufacturer of 
7.30 	windmill blades at a facility to be located 
7.31 	within the taconite tax relief area defined in 
7.32 	Minnesota Statutes, section 273.134.
7.33 	(l) $1,000,000 is appropriated from the 
7.34 	Minnesota minerals 21st century fund to 
7.35 	the Board of Trustees of the Minnesota 
8.1 	State Colleges and Universities for a grant 
8.2 	to the Northeast Higher Education District 
8.3 	for planning, design, and construction of 
8.4 	classrooms and housing facilities for upper 
8.5 	division students in the engineering program.
8.6 	(m)(1) $189,000 each year is appropriated 
8.7 	from the workforce development fund for 
8.8 	grants of $63,000 to eligible organizations 
8.9 	each year to assist in the development of 
8.10 	entrepreneurs and small businesses. Each 
8.11 	state grant dollar must be matched with $1 
8.12 	of nonstate funds. Any balance in the first 
8.13 	year does not cancel but is available in the 
8.14 	second year.
8.15 	(2) Three grants must be awarded to 
8.16 	continue or to develop a program. One 
8.17 	grant must be awarded to the Riverbend 
8.18 	Center for Entrepreneurial Facilitation 
8.19 	in Blue Earth County, and two to other 
8.20 	organizations serving Faribault and Martin 
8.21 	Counties. Grant recipients must report to the 
8.22 	commissioner by February 1 of each year 
8.23 	that the organization receives a grant with the 
8.24 	number of customers served; the number of 
8.25 	businesses started, stabilized, or expanded; 
8.26 	the number of jobs created and retained; and 
8.27 	business success rates. The commissioner 
8.28 	must report to the house of representatives 
8.29 	and senate committees with jurisdiction 
8.30 	over economic development finance on the 
8.31 	effectiveness of these programs for assisting 
8.32 	in the development of entrepreneurs and 
8.33 	small businesses.