1.1                          A bill for an act 
  1.2             relating to economic development; repealing obsolete 
  1.3             provisions relating to the Minnesota export finance 
  1.4             authority and a business migration report; modifying 
  1.5             conference and service center use in the Minnesota 
  1.6             world trade center; modifying the urban initiative 
  1.7             program; coordinating funding for wastewater and 
  1.8             drinking water funding; extending availability of 
  1.9             funding for travel information centers; increasing 
  1.10            bonding authority for the public facilities authority; 
  1.11            reinstating a repealed law; amending Minnesota 
  1.12            Statutes 2000, sections 48.24, subdivision 5; 116J.58, 
  1.13            subdivision 1; 116J.9665, subdivisions 1, 4, 6; 
  1.14            116M.14, subdivision 4; 116M.18, subdivisions 2, 3, 4, 
  1.15            5, 8, by adding a subdivision; 446A.07, subdivisions 
  1.16            4, 11; 446A.12, subdivision 1; Laws 2001, First 
  1.17            Special Session chapter 4, article 1, section 2, 
  1.18            subdivision 5; repealing Minnesota Statutes 2000, 
  1.19            sections 116J.9672; 116J.9673. 
  1.20  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.21     Section 1.  Minnesota Statutes 2000, section 48.24, 
  1.22  subdivision 5, is amended to read: 
  1.23     Subd. 5.  Loans or obligations shall not be subject under 
  1.24  this section to any limitation based upon such capital and 
  1.25  surplus to the extent that they are secured or covered by 
  1.26  guarantees, or by commitments or agreements to take over or to 
  1.27  purchase the same, made by: 
  1.28     (1) the commissioner of agriculture on the purchase of 
  1.29  agricultural land; 
  1.30     (2) any Federal Reserve bank; 
  1.31     (3) the United States or any department, bureau, board, 
  1.32  commission, or establishment of the United States, including any 
  2.1   corporation wholly owned directly or indirectly by the United 
  2.2   States; 
  2.3      (4) the Minnesota energy and economic development 
  2.4   authority; or 
  2.5      (5) the Minnesota export finance authority; or 
  2.6      (6) a municipality or political subdivision within 
  2.7   Minnesota to the extent that the guarantee or collateral is a 
  2.8   valid and enforceable general obligation of that political body. 
  2.9      Sec. 2.  Minnesota Statutes 2000, section 116J.58, 
  2.10  subdivision 1, is amended to read: 
  2.11     Subdivision 1.  [ENUMERATION.] The commissioner shall: 
  2.12     (1) investigate, study, and undertake ways and means of 
  2.13  promoting and encouraging the prosperous development and 
  2.14  protection of the legitimate interest and welfare of Minnesota 
  2.15  business, industry, and commerce, within and outside the state; 
  2.16     (2) locate markets for manufacturers and processors and aid 
  2.17  merchants in locating and contacting markets; 
  2.18     (3) investigate and study conditions affecting Minnesota 
  2.19  business, industry, and commerce and collect and disseminate 
  2.20  information, and engage in technical studies, scientific 
  2.21  investigations, and statistical research and educational 
  2.22  activities necessary or useful for the proper execution of the 
  2.23  powers and duties of the commissioner in promoting and 
  2.24  developing Minnesota business, industry, and commerce, both 
  2.25  within and outside the state; 
  2.26     (4) plan and develop an effective business information 
  2.27  service both for the direct assistance of business and industry 
  2.28  of the state and for the encouragement of business and industry 
  2.29  outside the state to use economic facilities within the state; 
  2.30     (5) compile, collect, and develop periodically, or 
  2.31  otherwise make available, information relating to current 
  2.32  business conditions; 
  2.33     (6) conduct or encourage research designed to further new 
  2.34  and more extensive uses of the natural and other resources of 
  2.35  the state and designed to develop new products and industrial 
  2.36  processes; 
  3.1      (7) study trends and developments in the industries of the 
  3.2   state and analyze the reasons underlying the trends; study costs 
  3.3   and other factors affecting successful operation of businesses 
  3.4   within the state; and make recommendations regarding 
  3.5   circumstances promoting or hampering business and industrial 
  3.6   development; 
  3.7      (8) serve as a clearing house for business and industrial 
  3.8   problems of the state; and advise small business enterprises 
  3.9   regarding improved methods of accounting and bookkeeping; 
  3.10     (9) cooperate with interstate commissions engaged in 
  3.11  formulating and promoting the adoption of interstate compacts 
  3.12  and agreements helpful to business, industry, and commerce; 
  3.13     (10) cooperate with other state departments, and with 
  3.14  boards, commissions, and other state agencies, in the 
  3.15  preparation and coordination of plans and policies for the 
  3.16  development of the state and for the use and conservation of its 
  3.17  resources insofar as the use, conservation, and development may 
  3.18  be appropriately directed or influenced by a state agency; 
  3.19     (11) assemble and coordinate information relative to the 
  3.20  status, scope, cost, and employment possibilities and the 
  3.21  availability of materials, equipment, and labor in connection 
  3.22  with public works projects, state, county, and municipal; 
  3.23  recommend limitations on the public works; gather current 
  3.24  progress information with reference to public and private works 
  3.25  projects of the state and its political subdivisions with 
  3.26  reference to conditions of employment; inquire into and report 
  3.27  to the governor, when requested by the governor, with respect to 
  3.28  any program of public state improvements and the financing 
  3.29  thereof; and request and obtain information from other state 
  3.30  departments or agencies as may be needed properly to report 
  3.31  thereon; 
  3.32     (12) study changes in population and current trends and 
  3.33  prepare plans and suggest policies for the development and 
  3.34  conservation of the resources of the state; 
  3.35     (13) confer and cooperate with the executive, legislative, 
  3.36  or planning authorities of the United States and neighboring 
  4.1   states and provinces and of the counties and municipalities of 
  4.2   such neighboring states, for the purpose of bringing about a 
  4.3   coordination between the development of such neighboring 
  4.4   provinces, states, counties, and municipalities and the 
  4.5   development of this state; 
  4.6      (14) generally, gather, compile, and make available 
  4.7   statistical information relating to business, trade, commerce, 
  4.8   industry, transportation, communication, natural resources, and 
  4.9   other like subjects in this state, with authority to call upon 
  4.10  other departments of the state for statistical data and results 
  4.11  obtained by them and to arrange and compile that statistical 
  4.12  information in a manner that seems wise; 
  4.13     (15) prepare an annual report to the legislature estimating 
  4.14  and, to the extent possible, describing the number of Minnesota 
  4.15  companies which have left the state or moved to surrounding 
  4.16  states or other countries.  The report should include an 
  4.17  estimate of the number of jobs lost by these moves, an estimate 
  4.18  of the total employment payroll, average hourly wage of those 
  4.19  jobs lost and those created in the new location, and to the 
  4.20  extent possible, the reasons for each company moving out of 
  4.21  state, if known; 
  4.22     (16) publish documents and annually convene regional 
  4.23  meetings to inform businesses, local government units, 
  4.24  assistance providers, and other interested persons of changes in 
  4.25  state and federal law related to economic development; 
  4.26     (17) (16) annually convene conferences of providers of 
  4.27  economic development related financial and technical assistance 
  4.28  for the purposes of exchanging information on economic 
  4.29  development assistance, coordinating economic development 
  4.30  activities, and formulating economic development strategies; 
  4.31     (18) (17) provide business with information on the economic 
  4.32  benefits of energy conservation and on the availability of 
  4.33  energy conservation assistance; and 
  4.34     (19) (18) prepare, as part of biennial budget process, 
  4.35  performance measures for each business loan or grant program 
  4.36  within the jurisdiction of the commissioner.  Measures would 
  5.1   include source of funds for each program, numbers of jobs 
  5.2   proposed or promised at the time of application and the number 
  5.3   of jobs created, estimated number of jobs retained, the average 
  5.4   salary and benefits for the jobs resulting from the program, and 
  5.5   the number of projects approved. 
  5.6      Sec. 3.  Minnesota Statutes 2000, section 116J.9665, 
  5.7   subdivision 1, is amended to read: 
  5.8      Subdivision 1.  [DEFINITIONS.] For purposes of this 
  5.9   section, the following terms have the meanings given them: 
  5.10     (1) "Conference and service center" means the approximately 
  5.11  20,000 square feet of space on the third and fourth floors of 
  5.12  the Minnesota world trade center that the state of Minnesota has 
  5.13  the right to possess, occupy, and use subject to the terms and 
  5.14  conditions of the development agreement. 
  5.15     (2) "Development agreement" means the agreement entered 
  5.16  into by and between the world trade center board, as agent of 
  5.17  the state of Minnesota, and Oxford Development Minnesota, Inc. 
  5.18  dated July 27, 1984, and the amendments to that agreement, for 
  5.19  development and construction of a world trade center at a 
  5.20  designated site in Minnesota. 
  5.21     (3) (2) "Minnesota world trade center" means the facility 
  5.22  constructed in accordance with the development agreement or 
  5.23  other facilities meeting the membership requirements of the 
  5.24  World Trade Centers Association. 
  5.25     Sec. 4.  Minnesota Statutes 2000, section 116J.9665, 
  5.26  subdivision 4, is amended to read: 
  5.27     Subd. 4.  [DUTIES.] The commissioner shall: 
  5.28     (1) promote and market the Minnesota world trade center and 
  5.29  membership in the World Trade Centers Association; 
  5.30     (2) sponsor conferences or other promotional events in the 
  5.31  conference and service center; 
  5.32     (3) sponsor, develop, and conduct educational programs 
  5.33  related to international trade; 
  5.34     (4) (3) establish and maintain an office in the Minnesota 
  5.35  world trade center; and 
  5.36     (5) (4) not duplicate programs or services provided by the 
  6.1   commissioner of agriculture. 
  6.2      Sec. 5.  Minnesota Statutes 2000, section 116J.9665, 
  6.3   subdivision 6, is amended to read: 
  6.4      Subd. 6.  [WORLD TRADE CENTER ACCOUNT.] The world trade 
  6.5   center account is in the special revenue fund.  All money 
  6.6   received from the use of the conference and service center or 
  6.7   appropriated under this section must be deposited in the 
  6.8   account.  Money in the account including interest earned is 
  6.9   appropriated to the commissioner and must be used exclusively 
  6.10  for the purposes of this section. 
  6.11     Sec. 6.  Minnesota Statutes 2000, section 116M.14, 
  6.12  subdivision 4, is amended to read: 
  6.13     Subd. 4.  [LOW-INCOME AREA.] "Low-income area" means 
  6.14  Minneapolis, St. Paul, and inner ring suburbs as defined by the 
  6.15  metropolitan council that had a median household income below 
  6.16  $31,000 as reported in the 1990 census those cities in the 
  6.17  metropolitan area as defined in section 473.121, subdivision 2, 
  6.18  that have an average income that is below 60 percent of the 
  6.19  median income for a four-person family as of the latest report 
  6.20  by the United States Census Bureau. 
  6.21     Sec. 7.  Minnesota Statutes 2000, section 116M.18, 
  6.22  subdivision 2, is amended to read: 
  6.23     Subd. 2.  [CHALLENGE GRANT ELIGIBILITY; NONPROFIT 
  6.24  CORPORATION.] The board may enter into agreements with nonprofit 
  6.25  corporations to fund and guarantee loans the nonprofit 
  6.26  corporation makes in low-income areas under subdivision 4.  A 
  6.27  corporation must demonstrate that:  
  6.28     (1) its board of directors includes citizens experienced in 
  6.29  development, minority business enterprises, and creating jobs in 
  6.30  low-income areas; 
  6.31     (2) it has the technical skills to analyze projects; 
  6.32     (3) it is familiar with other available public and private 
  6.33  funding sources and economic development programs; 
  6.34     (4) it can initiate and implement economic development 
  6.35  projects; 
  6.36     (5) it can establish and administer a revolving loan 
  7.1   account; and 
  7.2      (6) it can work with job referral networks which assist 
  7.3   minority and other persons in low-income areas. 
  7.4      Sec. 8.  Minnesota Statutes 2000, section 116M.18, 
  7.5   subdivision 3, is amended to read: 
  7.6      Subd. 3.  [REVOLVING LOAN FUND.] (a) The board shall 
  7.7   establish a revolving loan fund to make grants to nonprofit 
  7.8   corporations for the purpose of making loans and loan guarantees 
  7.9   to new and expanding businesses in a low-income area to promote 
  7.10  minority business enterprises and job creation for minority and 
  7.11  other persons in low-income areas.  
  7.12     (b) Eligible business enterprises include, but are not 
  7.13  limited to, technologically innovative industries, value-added 
  7.14  manufacturing, and information industries.  Loan applications 
  7.15  given preliminary approval by the nonprofit corporation must be 
  7.16  forwarded to the board for approval.  The commissioner must give 
  7.17  final approval for each loan or loan guarantee made by the 
  7.18  nonprofit corporation.  The amount of a grant the state funds 
  7.19  contributed to any loan or loan guarantee may not exceed 50 
  7.20  percent of each loan.  The amount of nonstate money must equal 
  7.21  at least 50 percent for each loan. 
  7.22     Sec. 9.  Minnesota Statutes 2000, section 116M.18, 
  7.23  subdivision 4, is amended to read: 
  7.24     Subd. 4.  [BUSINESS LOAN CRITERIA.] (a) The criteria in 
  7.25  this subdivision apply to loans made or guaranteed by nonprofit 
  7.26  corporations under the urban challenge grant program.  
  7.27     (b) Loans or guarantees must be made to businesses that are 
  7.28  not likely to undertake a project for which loans are sought 
  7.29  without assistance from the urban challenge grant program.  
  7.30     (c) A loan or guarantee must be used for a project designed 
  7.31  to benefit persons in low-income areas through the creation of 
  7.32  job or business opportunities for them.  Priority must be given 
  7.33  for loans to the lowest income areas.  
  7.34     (d) The minimum state contribution to a loan or guarantee 
  7.35  is $5,000 and the maximum is $150,000. 
  7.36     (e) A loan The state contribution must be matched by at 
  8.1   least an equal amount of new private investment.  
  8.2      (f) A loan may not be used for a retail development project.
  8.3      (g) The business must agree to work with job referral 
  8.4   networks that focus on minority applicants from low-income areas.
  8.5      Sec. 10.  Minnesota Statutes 2000, section 116M.18, 
  8.6   subdivision 5, is amended to read: 
  8.7      Subd. 5.  [REVOLVING FUND ADMINISTRATION; RULES.] (a) The 
  8.8   board shall establish a minimum interest rate for loans or 
  8.9   guarantees to ensure that necessary loan administration costs 
  8.10  are covered.  
  8.11     (b) Loan repayment amounts equal to one-half of the 
  8.12  principal and interest must be deposited in a revolving fund 
  8.13  created by the board for challenge grants.  The remaining amount 
  8.14  of the loan repayment may be deposited in a revolving loan fund 
  8.15  created by the nonprofit corporation originating the loan being 
  8.16  repaid for further distribution, consistent with the loan 
  8.17  criteria specified in subdivision 4.  
  8.18     (c) Administrative expenses of the board and nonprofit 
  8.19  corporations with whom the board enters into agreements under 
  8.20  subdivision 2, including expenses incurred by a nonprofit 
  8.21  corporation in providing financial, technical, managerial, and 
  8.22  marketing assistance to a business enterprise receiving a loan 
  8.23  under subdivision 4, may be paid out of the interest earned on 
  8.24  loans and out of interest earned on money invested by the state 
  8.25  board of investment under section 116M.16, subdivision 2, as may 
  8.26  be provided by the board.  
  8.27     Sec. 11.  Minnesota Statutes 2000, section 116M.18, is 
  8.28  amended by adding a subdivision to read: 
  8.29     Subd. 6a.  [NONPROFIT CORPORATION LOANS.] The board may 
  8.30  make loans to a nonprofit corporation with which it has entered 
  8.31  into an agreement under subdivision 1.  These loans must be used 
  8.32  to support a new or expanding business.  This support may 
  8.33  include such forms of financing as the sale of goods to the 
  8.34  business on installment or deferred payments, lease purchase 
  8.35  agreements, or royalty investments in the business.  The 
  8.36  nonprofit corporation must provide at least an equal match to 
  9.1   the loan received by the board.  The maximum loan available to 
  9.2   the nonprofit corporation under this subdivision is $50,000.  
  9.3   Loans made to the nonprofit corporation under this subdivision 
  9.4   may be made without interest.  Repayments made by the nonprofit 
  9.5   corporation must be deposited in the revolving fund created for 
  9.6   urban initiative grants. 
  9.7      Sec. 12.  Minnesota Statutes 2000, section 116M.18, 
  9.8   subdivision 8, is amended to read: 
  9.9      Subd. 8.  [REPORTING REQUIREMENTS.] A nonprofit corporation 
  9.10  that receives a challenge grant shall:  
  9.11     (1) submit an annual report to the board by September 30 of 
  9.12  each year that includes a description of projects supported by 
  9.13  the urban challenge grant program, an account of loans made 
  9.14  during the calendar year, the program's impact on minority 
  9.15  business enterprises and job creation for minority persons and 
  9.16  persons in low-income areas, the source and amount of money 
  9.17  collected and distributed by the urban challenge grant program, 
  9.18  the program's assets and liabilities, and an explanation of 
  9.19  administrative expenses; and 
  9.20     (2) provide for an independent annual audit to be performed 
  9.21  in accordance with generally accepted accounting practices and 
  9.22  auditing standards and submit a copy of each annual audit report 
  9.23  to the board. 
  9.24     Sec. 13.  Minnesota Statutes 2000, section 446A.07, 
  9.25  subdivision 4, is amended to read: 
  9.26     Subd. 4.  [INTENDED USE PLAN.] The pollution control agency 
  9.27  public facilities authority shall annually prepare and submit to 
  9.28  the United States Environmental Protection Agency an intended 
  9.29  use plan.  The plan must identify the intended uses of the 
  9.30  amounts available to the water pollution control revolving fund, 
  9.31  including a list of wastewater treatment and storm water 
  9.32  projects and all other eligible activities to be funded during 
  9.33  the fiscal year.  Information regarding eligible activities must 
  9.34  be submitted to the pollution control agency by the appropriate 
  9.35  state agency or department within 30 days of written 
  9.36  notification by the pollution control agency. The pollution 
 10.1   control agency shall provide to the public facilities authority 
 10.2   a prioritized list of wastewater and storm water projects to be 
 10.3   considered for funding and the pollution control agency's 
 10.4   evaluation of each project's selected treatment alternative 
 10.5   based on environmental and cost factors.  The pollution control 
 10.6   agency public facilities authority may not submit the plan until 
 10.7   it has received the review and comment of the authority 
 10.8   pollution control agency or until 30 days have elapsed since the 
 10.9   plan was submitted to the authority pollution control agency, 
 10.10  whichever occurs first.  In addition, the public facilities 
 10.11  authority shall offer municipalities seeking placement on the 
 10.12  intended use plan an opportunity to review and comment on the 
 10.13  plan before it is adopted.  The plan may be amended to add 
 10.14  additional projects for consideration for funding as it 
 10.15  determines funds are available and additional projects are able 
 10.16  to proceed. 
 10.17     Sec. 14.  Minnesota Statutes 2000, section 446A.07, 
 10.18  subdivision 11, is amended to read: 
 10.19     Subd. 11.  [RULES OF AGENCY.] The agency shall adopt rules 
 10.20  relating to the procedure for preparation of the annual intended 
 10.21  use plan and other matters that the agency considers necessary 
 10.22  for proper loan administration.  Eligible of the agency's duties 
 10.23  as provided in this section, including the review and 
 10.24  certification for approving projects for funding to the public 
 10.25  facilities authority and any related or required activities are 
 10.26  those required under the federal Water Pollution Control Act of 
 10.27  1987, as amended. 
 10.28     Sec. 15.  Minnesota Statutes 2000, section 446A.12, 
 10.29  subdivision 1, is amended to read: 
 10.30     Subdivision 1.  [BONDING AUTHORITY.] The authority may 
 10.31  issue negotiable bonds in a principal amount that the authority 
 10.32  determines necessary to provide sufficient funds for achieving 
 10.33  its purposes, including the making of loans and purchase of 
 10.34  securities, the payment of interest on bonds of the authority, 
 10.35  the establishment of reserves to secure its bonds, the payment 
 10.36  of fees to a third party providing credit enhancement, and the 
 11.1   payment of all other expenditures of the authority incident to 
 11.2   and necessary or convenient to carry out its corporate purposes 
 11.3   and powers, but not including the making of grants.  Bonds of 
 11.4   the authority may be issued as bonds or notes or in any other 
 11.5   form authorized by law.  The principal amount of bonds issued 
 11.6   and outstanding under this section at any time may not exceed 
 11.7   $850,000,000 $1,000,000,000, excluding bonds for which refunding 
 11.8   bonds or crossover refunding bonds have been issued. 
 11.9      Sec. 16.  Laws 2001, First Special Session chapter 4, 
 11.10  article 1, section 2, subdivision 5, is amended to read: 
 11.11  Subd. 5.  Office of Tourism 
 11.12     10,219,000      10,111,000 
 11.13  To develop maximum private sector 
 11.14  involvement in tourism, $3,500,000 the 
 11.15  first year and $3,500,000 the second 
 11.16  year of the amounts appropriated for 
 11.17  marketing activities are contingent on 
 11.18  receipt of an equal contribution from 
 11.19  nonstate sources that have been 
 11.20  certified by the commissioner.  Up to 
 11.21  one-half of the match may be given in 
 11.22  in-kind contributions. 
 11.23  In order to maximize marketing grant 
 11.24  benefits, the commissioner must give 
 11.25  priority for joint venture marketing 
 11.26  grants to organizations with year-round 
 11.27  sustained tourism activities.  For 
 11.28  programs and projects submitted, the 
 11.29  commissioner must give priority to 
 11.30  those that encompass two or more areas 
 11.31  or that attract nonresident travelers 
 11.32  to the state. 
 11.33  If an appropriation for either year for 
 11.34  grants is not sufficient, the 
 11.35  appropriation for the other year is 
 11.36  available for it. 
 11.37  The commissioner may use grant dollars 
 11.38  or the value of in-kind services to 
 11.39  provide the state contribution for the 
 11.40  partnership program. 
 11.41  Any unexpended money from general fund 
 11.42  appropriations made under this 
 11.43  subdivision does not cancel but must be 
 11.44  placed in a special advertising account 
 11.45  for use by the office of tourism to 
 11.46  purchase additional media. 
 11.47  Of this amount, $50,000 the first year 
 11.48  is for a one-time grant to the 
 11.49  Mississippi River parkway commission to 
 11.50  support the increased promotion of 
 11.51  tourism along the Great River Road. 
 11.52  $829,000 the first year and $829,000 
 11.53  the second year are for the Minnesota 
 12.1   film board.  $329,000 of this 
 12.2   appropriation in each year is available 
 12.3   only upon receipt by the board of $1 in 
 12.4   matching contributions of money or 
 12.5   in-kind from nonstate sources for every 
 12.6   $3 provided by this appropriation.  Of 
 12.7   this amount, $500,000 the first year 
 12.8   and $500,000 the second year are for 
 12.9   grants to the Minnesota film board for 
 12.10  a film production jobs fund to 
 12.11  stimulate film production in 
 12.12  Minnesota.  This appropriation is to 
 12.13  reimburse film and television producers 
 12.14  for up to ten percent of the documented 
 12.15  wages and cost of services that they 
 12.16  paid to Minnesotans for film and 
 12.17  television production after January 1, 
 12.18  2001. 
 12.19  $150,000 the first year is for 
 12.20  partnerships with local tourism 
 12.21  interests to operate travel information 
 12.22  centers.  This is a one-time 
 12.23  appropriation. This appropriation is 
 12.24  available until spent. 
 12.25     Sec. 17.  [REINSTATEMENT OF LAW.] 
 12.26     Notwithstanding its repeal by Laws 2001, First Special 
 12.27  Session chapter 4, article 2, section 41, Minnesota Statutes 
 12.28  2000, section 268.976, as amended by Laws 2001, chapter 175, 
 12.29  section 50, is revived. 
 12.30     Sec. 18.  [REPEALER.] 
 12.31     Minnesota Statutes 2000, sections 116J.9672; and 116J.9673, 
 12.32  are repealed.