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Capital IconMinnesota Legislature
Office of the Revisor of Statutes

SF 2074

2nd Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 11:33pm

KEY: stricken = removed, old language.
underscored = added, new language.
Version List Authors and Status
Rtf
Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 1.27 1.28 1.29 1.30 1.31 1.32 1.33 1.34 1.35 1.36 1.37 1.38 1.39 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 2.36 2.37 2.38 2.39 2.40 2.41 2.42 2.43 2.44 2.45 2.46 2.47 2.48 2.49 2.50 2.51 2.52 2.53 2.54 2.55 2.56 2.57 2.58 3.1
3.2 3.3 3.4
3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 3.34 3.35 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 4.33 4.34 4.35 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 5.33 5.34 5.35 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 6.33 6.34 6.35 6.36 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 7.32 7.33 7.34 7.35 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27 8.28 8.29 8.30 8.31 8.32 8.33 8.34 8.35 8.36 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31 9.32 9.33 9.34 9.35 9.36 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31 10.32 10.33 10.34 10.35 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26 11.27 11.28 11.29 11.30 11.31 11.32 11.33 11.34 11.35 11.36 12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24
12.25
12.26 12.27 12.28 12.29 12.30 12.31 12.32 12.33 12.34 12.35 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29 13.30 13.31 13.32 13.33 13.34 13.35 13.36 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24
14.25 14.26
14.27 14.28 14.29 14.30 14.31 14.32 14.33 14.34 14.35 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19 15.20 15.21 15.22 15.23 15.24 15.25 15.26 15.27 15.28 15.29 15.30 15.31 15.32 15.33 15.34 15.35 15.36 16.1 16.2 16.3 16.4 16.5 16.6 16.7 16.8 16.9 16.10 16.11 16.12 16.13 16.14 16.15 16.16 16.17 16.18 16.19 16.20 16.21 16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29 16.30 16.31 16.32 16.33 16.34 16.35 16.36 17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21 17.22 17.23 17.24 17.25 17.26
17.27 17.28
17.29 17.30 17.31 17.32 17.33 17.34 17.35 18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18 18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28 18.29 18.30 18.31 18.32 18.33 18.34 18.35
18.36
19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8 19.9 19.10 19.11 19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24 19.25 19.26 19.27 19.28 19.29 19.30 19.31 19.32 19.33 19.34 19.35 20.1 20.2 20.3 20.4 20.5 20.6 20.7 20.8 20.9 20.10 20.11 20.12 20.13 20.14 20.15 20.16 20.17 20.18 20.19 20.20 20.21 20.22 20.23 20.24 20.25 20.26 20.27 20.28 20.29 20.30 20.31 20.32 20.33 20.34 20.35 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27 21.28 21.29 21.30 21.31 21.32 21.33
21.34 21.35
22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19 22.20 22.21 22.22
22.23 22.24
22.25 22.26 22.27 22.28 22.29 22.30 22.31 22.32 22.33 22.34 22.35 23.1 23.2 23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26 23.27 23.28 23.29 23.30 23.31 23.32 23.33 23.34 23.35 24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8 24.9 24.10 24.11 24.12 24.13 24.14 24.15 24.16 24.17 24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25 24.26 24.27 24.28 24.29 24.30 24.31 24.32 24.33 24.34 24.35 24.36 25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8 25.9 25.10 25.11 25.12 25.13 25.14 25.15
25.16
25.17 25.18 25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27 25.28 25.29 25.30 25.31 25.32 25.33 25.34 25.35 26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8 26.9 26.10 26.11 26.12 26.13 26.14 26.15 26.16 26.17 26.18 26.19 26.20 26.21 26.22 26.23 26.24 26.25 26.26 26.27 26.28 26.29 26.30 26.31 26.32 26.33 26.34 26.35 27.1 27.2 27.3 27.4 27.5 27.6 27.7 27.8 27.9 27.10 27.11 27.12 27.13 27.14 27.15 27.16 27.17 27.18 27.19 27.20 27.21 27.22 27.23 27.24 27.25 27.26 27.27 27.28 27.29 27.30 27.31 27.32 27.33 27.34 27.35 28.1 28.2 28.3 28.4
28.5 28.6 28.7
28.8 28.9 28.10 28.11 28.12 28.13 28.14 28.15 28.16 28.17 28.18 28.19 28.20 28.21 28.22 28.23 28.24 28.25 28.26 28.27 28.28 28.29 28.30 28.31 28.32 28.33 28.34 28.35 29.1 29.2 29.3 29.4 29.5 29.6 29.7 29.8 29.9 29.10 29.11 29.12 29.13 29.14 29.15 29.16 29.17 29.18 29.19 29.20
29.21 29.22
29.23 29.24 29.25 29.26 29.27 29.28 29.29 29.30 29.31 29.32 29.33 29.34 29.35
30.1 30.2
30.3 30.4 30.5 30.6 30.7 30.8 30.9 30.10 30.11 30.12 30.13 30.14 30.15 30.16 30.17 30.18 30.19 30.20 30.21 30.22 30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30 30.31 30.32 30.33 30.34 30.35 31.1 31.2 31.3 31.4 31.5 31.6 31.7 31.8 31.9 31.10 31.11 31.12 31.13 31.14
31.15 31.16
31.17 31.18 31.19 31.20 31.21 31.22 31.23 31.24 31.25 31.26 31.27 31.28 31.29 31.30 31.31 31.32 31.33 31.34 32.1 32.2 32.3 32.4 32.5 32.6 32.7 32.8 32.9 32.10 32.11 32.12 32.13 32.14 32.15 32.16 32.17 32.18 32.19 32.20 32.21 32.22 32.23 32.24 32.25 32.26 32.27 32.28 32.29 32.30 32.31 32.32 32.33 32.34 32.35 33.1 33.2 33.3 33.4 33.5 33.6 33.7 33.8 33.9 33.10 33.11 33.12 33.13 33.14 33.15 33.16 33.17 33.18 33.19 33.20 33.21 33.22 33.23 33.24 33.25 33.26 33.27 33.28 33.29 33.30 33.31 33.32 33.33 33.34 33.35 33.36
34.1 34.2
34.3 34.4 34.5 34.6 34.7 34.8 34.9 34.10 34.11 34.12 34.13 34.14 34.15 34.16 34.17 34.18 34.19 34.20 34.21 34.22 34.23 34.24 34.25 34.26 34.27 34.28 34.29 34.30 34.31 34.32 34.33 34.34 34.35 35.1 35.2 35.3 35.4 35.5 35.6 35.7 35.8 35.9 35.10 35.11 35.12 35.13 35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24 35.25 35.26 35.27 35.28 35.29 35.30 35.31
35.32
35.33 35.34 35.35 36.1 36.2 36.3 36.4 36.5 36.6 36.7 36.8 36.9 36.10 36.11 36.12 36.13 36.14 36.15 36.16 36.17 36.18 36.19 36.20 36.21 36.22 36.23 36.24 36.25 36.26 36.27 36.28 36.29 36.30 36.31 36.32
36.33 36.34
36.35 36.36 37.1 37.2 37.3 37.4 37.5 37.6 37.7 37.8 37.9 37.10 37.11 37.12 37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 37.30 37.31 37.32 37.33 37.34 37.35 38.1 38.2 38.3 38.4 38.5 38.6 38.7 38.8 38.9 38.10 38.11 38.12
38.13 38.14
38.15 38.16 38.17
38.18
38.19 38.20
38.21 38.22 38.23 38.24 38.25
38.26 38.27 38.28
38.29 38.30 39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9 39.10 39.11 39.12 39.13 39.14 39.15 39.16 39.17 39.18 39.19 39.20 39.21 39.22 39.23 39.24 39.25 39.26 39.27 39.28 39.29 39.30
39.31 39.32
39.33 39.34 40.1 40.2 40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12 40.13 40.14 40.15 40.16 40.17 40.18 40.19 40.20 40.21 40.22 40.23 40.24 40.25 40.26 40.27 40.28 40.29 40.30 40.31 40.32 40.33 40.34 40.35 41.1 41.2 41.3 41.4 41.5 41.6 41.7 41.8 41.9 41.10 41.11 41.12 41.13 41.14 41.15 41.16 41.17 41.18 41.19 41.20 41.21 41.22 41.23 41.24 41.25 41.26 41.27 41.28 41.29 41.30 41.31 41.32 41.33 41.34 41.35 41.36
42.1 42.2 42.3
42.4 42.5 42.6 42.7 42.8 42.9 42.10 42.11 42.12 42.13 42.14 42.15 42.16 42.17 42.18 42.19 42.20 42.21 42.22 42.23 42.24 42.25 42.26 42.27 42.28 42.29 42.30 42.31 42.32 42.33 42.34 42.35 43.1 43.2 43.3 43.4 43.5 43.6 43.7 43.8 43.9 43.10 43.11 43.12 43.13 43.14 43.15 43.16 43.17 43.18 43.19 43.20 43.21 43.22 43.23 43.24 43.25 43.26 43.27 43.28 43.29 43.30 43.31 43.32 43.33 43.34 43.35 43.36 44.1 44.2 44.3 44.4 44.5 44.6 44.7 44.8 44.9 44.10 44.11 44.12 44.13 44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.21 44.22 44.23 44.24 44.25 44.26 44.27 44.28 44.29 44.30 44.31 44.32 44.33 44.34 44.35 44.36 45.1 45.2 45.3
45.4 45.5
45.6 45.7 45.8 45.9 45.10 45.11 45.12 45.13 45.14 45.15 45.16 45.17 45.18 45.19 45.20 45.21 45.22 45.23 45.24 45.25 45.26 45.27 45.28 45.29 45.30 45.31 45.32 45.33 45.34 46.1 46.2 46.3 46.4 46.5 46.6 46.7 46.8 46.9 46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17 46.18 46.19 46.20 46.21 46.22 46.23 46.24 46.25 46.26 46.27 46.28 46.29 46.30 46.31 46.32 46.33 46.34 46.35 47.1 47.2 47.3 47.4 47.5 47.6 47.7 47.8 47.9 47.10 47.11 47.12 47.13 47.14 47.15 47.16 47.17 47.18 47.19 47.20 47.21 47.22 47.23 47.24 47.25 47.26 47.27 47.28 47.29 47.30 47.31 47.32 47.33 47.34 48.1 48.2 48.3 48.4 48.5 48.6 48.7 48.8 48.9 48.10 48.11 48.12 48.13 48.14 48.15 48.16 48.17
48.18 48.19
48.20 48.21 48.22 48.23 48.24 48.25 48.26 48.27 48.28 48.29 48.30 48.31 48.32 48.33 48.34 48.35 49.1 49.2 49.3 49.4 49.5 49.6 49.7 49.8 49.9 49.10 49.11 49.12 49.13 49.14 49.15 49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23 49.24 49.25 49.26 49.27 49.28 49.29 49.30 49.31 49.32 49.33 49.34 49.35 50.1 50.2 50.3 50.4 50.5 50.6 50.7 50.8 50.9 50.10 50.11 50.12 50.13 50.14 50.15 50.16 50.17 50.18 50.19 50.20 50.21 50.22 50.23 50.24 50.25 50.26 50.27 50.28 50.29 50.30 50.31 50.32 50.33 50.34 50.35 50.36 51.1 51.2 51.3 51.4 51.5 51.6 51.7 51.8 51.9 51.10 51.11 51.12 51.13
51.14 51.15
51.16 51.17 51.18 51.19 51.20 51.21 51.22
51.23 51.24 51.25
51.26 51.27 51.28 51.29 51.30 51.31 51.32 51.33 52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8 52.9 52.10 52.11 52.12 52.13 52.14 52.15 52.16 52.17 52.18 52.19 52.20 52.21 52.22 52.23 52.24 52.25 52.26 52.27 52.28 52.29 52.30 52.31 52.32 52.33 52.34 52.35 52.36 53.1 53.2
53.3 53.4
53.5 53.6 53.7 53.8 53.9 53.10 53.11 53.12 53.13 53.14 53.15 53.16 53.17 53.18 53.19 53.20 53.21 53.22 53.23 53.24 53.25 53.26 53.27 53.28 53.29 53.30 53.31 53.32 53.33 53.34 53.35 54.1 54.2 54.3 54.4 54.5 54.6 54.7 54.8 54.9 54.10 54.11 54.12 54.13 54.14 54.15 54.16
54.17 54.18
54.19 54.20 54.21 54.22
54.23 54.24 54.25
54.26 54.27 54.28 54.29 54.30 54.31 54.32 55.1 55.2 55.3 55.4 55.5 55.6 55.7 55.8 55.9 55.10 55.11 55.12 55.13 55.14 55.15 55.16 55.17 55.18 55.19 55.20 55.21 55.22 55.23 55.24 55.25 55.26 55.27 55.28
55.29 55.30 55.31
56.1 56.2
56.3 56.4 56.5 56.6 56.7 56.8 56.9 56.10 56.11 56.12 56.13 56.14 56.15 56.16 56.17 56.18 56.19
56.20 56.21
56.22 56.23 56.24 56.25 56.26 56.27 56.28 56.29 56.30 56.31 56.32 56.33 56.34 57.1 57.2 57.3 57.4 57.5 57.6 57.7 57.8 57.9 57.10
57.11 57.12
57.13 57.14 57.15 57.16 57.17 57.18 57.19 57.20 57.21 57.22 57.23 57.24 57.25 57.26 57.27 57.28 57.29 57.30 57.31 57.32 57.33 57.34 57.35 58.1 58.2 58.3 58.4 58.5 58.6 58.7 58.8 58.9 58.10 58.11 58.12 58.13 58.14 58.15 58.16 58.17 58.18 58.19 58.20 58.21 58.22 58.23 58.24 58.25 58.26 58.27 58.28 58.29 58.30 58.31 58.32 58.33 58.34 58.35 59.1 59.2 59.3 59.4 59.5 59.6 59.7 59.8 59.9 59.10 59.11 59.12 59.13 59.14 59.15 59.16 59.17 59.18 59.19 59.20 59.21 59.22 59.23 59.24 59.25 59.26 59.27 59.28 59.29 59.30 59.31 59.32 59.33 59.34 60.1 60.2 60.3
60.4 60.5
60.6 60.7 60.8 60.9 60.10 60.11 60.12 60.13 60.14
60.15 60.16
60.17 60.18 60.19 60.20 60.21 60.22 60.23 60.24 60.25 60.26 60.27 60.28 60.29 60.30 60.31 60.32 60.33 61.1 61.2 61.3 61.4 61.5 61.6 61.7 61.8 61.9 61.10 61.11 61.12 61.13 61.14 61.15 61.16 61.17
61.18 61.19 61.20
61.21 61.22 61.23 61.24 61.25 61.26 61.27 61.28 61.29 61.30 61.31 61.32 61.33 61.34 62.1 62.2 62.3 62.4 62.5 62.6
62.7 62.8 62.9
62.10 62.11 62.12 62.13 62.14 62.15 62.16 62.17 62.18 62.19 62.20 62.21 62.22 62.23
62.24 62.25
62.26 62.27 62.28 62.29 62.30 62.31 62.32 62.33 63.1 63.2 63.3 63.4 63.5 63.6 63.7 63.8 63.9 63.10 63.11 63.12 63.13 63.14 63.15 63.16
63.17 63.18 63.19 63.20 63.21
63.22 63.23 63.24 63.25 63.26 63.27 63.28 63.29 63.30 63.31 63.32 63.33 63.34 63.35 64.1 64.2 64.3 64.4
64.5 64.6 64.7
64.8 64.9 64.10 64.11 64.12 64.13 64.14 64.15 64.16 64.17 64.18 64.19 64.20 64.21 64.22 64.23 64.24 64.25 64.26 64.27 64.28 64.29 64.30 64.31 64.32 64.33 64.34 64.35 65.1 65.2 65.3 65.4 65.5 65.6 65.7 65.8 65.9 65.10 65.11 65.12 65.13 65.14 65.15
65.16 65.17 65.18
65.19 65.20 65.21 65.22 65.23 65.24
65.25 65.26 65.27
65.28 65.29 65.30 65.31 65.32 65.33 66.1 66.2 66.3 66.4
66.5 66.6 66.7
66.8 66.9 66.10 66.11 66.12 66.13 66.14 66.15 66.16 66.17 66.18 66.19 66.20 66.21 66.22 66.23 66.24 66.25 66.26 66.27 66.28 66.29 66.30 66.31 66.32 66.33 66.34
67.1 67.2 67.3
67.4 67.5 67.6 67.7 67.8 67.9 67.10 67.11 67.12 67.13 67.14 67.15 67.16 67.17 67.18 67.19 67.20
67.21 67.22
67.23 67.24 67.25 67.26 67.27 67.28 67.29 67.30 67.31
68.1 68.2 68.3
68.4 68.5 68.6 68.7 68.8 68.9 68.10 68.11 68.12 68.13 68.14 68.15 68.16 68.17 68.18 68.19 68.20 68.21 68.22
68.23 68.24 68.25
68.26 68.27 68.28 68.29 68.30 68.31 68.32 68.33 69.1 69.2 69.3
69.4 69.5 69.6
69.7 69.8 69.9 69.10 69.11 69.12 69.13 69.14 69.15 69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26
69.27 69.28 69.29 69.30
69.31 69.32
69.33 70.1 70.2 70.3 70.4 70.5 70.6 70.7 70.8 70.9 70.10 70.11 70.12 70.13
70.14 70.15
70.16 70.17 70.18 70.19 70.20 70.21 70.22
70.23 70.24
70.25 70.26 70.27 70.28 70.29 70.30 70.31 70.32 70.33
71.1 71.2
71.3 71.4 71.5 71.6 71.7 71.8 71.9 71.10 71.11
71.12 71.13 71.14 71.15 71.16 71.17 71.18 71.19 71.20 71.21
71.22
71.23 71.24 71.25 71.26 71.27 71.28 71.29 71.30 71.31 71.32 72.1 72.2 72.3 72.4 72.5 72.6 72.7 72.8 72.9 72.10 72.11 72.12 72.13 72.14 72.15 72.16 72.17 72.18 72.19 72.20 72.21 72.22 72.23 72.24 72.25 72.26 72.27 72.28 72.29
72.30 72.31
72.32 72.33 72.34 72.35 73.1 73.2 73.3 73.4 73.5 73.6 73.7 73.8 73.9 73.10 73.11 73.12 73.13 73.14 73.15 73.16 73.17 73.18 73.19 73.20 73.21 73.22 73.23 73.24 73.25 73.26 73.27
73.28 73.29 73.30 73.31 73.32 73.33 73.34 73.35 74.1 74.2 74.3 74.4 74.5 74.6 74.7 74.8
74.9 74.10
74.11 74.12 74.13 74.14 74.15 74.16 74.17 74.18 74.19 74.20 74.21 74.22 74.23 74.24 74.25 74.26 74.27 74.28 74.29 74.30 74.31
74.32 74.33
75.1 75.2 75.3 75.4 75.5 75.6 75.7 75.8 75.9 75.10 75.11 75.12 75.13 75.14 75.15 75.16 75.17
75.18 75.19
75.20 75.21 75.22 75.23 75.24 75.25 75.26 75.27 75.28 75.29 75.30 75.31 75.32
75.33 75.34
76.1 76.2 76.3 76.4 76.5 76.6 76.7 76.8 76.9 76.10 76.11 76.12 76.13 76.14 76.15 76.16 76.17 76.18 76.19 76.20 76.21 76.22 76.23 76.24 76.25 76.26 76.27 76.28 76.29
76.30 76.31
76.32 76.33 76.34 76.35 77.1 77.2 77.3 77.4 77.5 77.6 77.7
77.8 77.9
77.10 77.11 77.12 77.13 77.14 77.15 77.16 77.17
77.18 77.19
77.20 77.21 77.22 77.23 77.24 77.25 77.26 77.27 77.28 77.29
77.30 77.31
78.1 78.2 78.3 78.4 78.5 78.6 78.7 78.8 78.9
78.10 78.11
78.12 78.13 78.14 78.15 78.16 78.17 78.18 78.19 78.20 78.21 78.22 78.23 78.24 78.25 78.26 78.27 78.28
78.29 78.30
78.31 78.32 78.33 79.1 79.2 79.3 79.4 79.5 79.6 79.7 79.8 79.9 79.10 79.11 79.12 79.13 79.14 79.15 79.16 79.17 79.18 79.19 79.20 79.21 79.22 79.23 79.24 79.25 79.26 79.27 79.28 79.29 79.30 79.31 79.32 79.33 79.34 79.35 80.1 80.2 80.3
80.4 80.5
80.6 80.7 80.8 80.9 80.10 80.11 80.12 80.13 80.14 80.15 80.16 80.17 80.18 80.19 80.20 80.21 80.22 80.23 80.24 80.25 80.26 80.27 80.28 80.29 80.30 80.31 80.32 80.33 80.34 80.35 81.1 81.2 81.3 81.4 81.5 81.6 81.7 81.8 81.9 81.10 81.11 81.12 81.13 81.14 81.15 81.16 81.17 81.18 81.19 81.20 81.21 81.22 81.23 81.24 81.25 81.26 81.27 81.28 81.29 81.30 81.31 81.32 81.33 81.34 81.35 81.36 82.1 82.2 82.3 82.4 82.5 82.6 82.7 82.8 82.9 82.10 82.11 82.12 82.13 82.14 82.15 82.16 82.17 82.18 82.19 82.20 82.21 82.22 82.23 82.24 82.25 82.26 82.27 82.28 82.29 82.30 82.31 82.32 82.33 82.34 82.35 82.36 83.1 83.2 83.3 83.4 83.5 83.6 83.7 83.8 83.9 83.10 83.11 83.12 83.13 83.14 83.15 83.16 83.17 83.18 83.19 83.20 83.21 83.22 83.23 83.24 83.25 83.26 83.27 83.28 83.29 83.30 83.31 83.32 83.33 83.34 83.35 84.1 84.2 84.3 84.4 84.5 84.6 84.7 84.8 84.9 84.10 84.11 84.12 84.13 84.14 84.15 84.16 84.17 84.18 84.19 84.20 84.21 84.22 84.23 84.24 84.25 84.26 84.27 84.28 84.29 84.30 84.31 84.32 84.33 84.34 84.35 84.36 85.1 85.2 85.3 85.4 85.5 85.6 85.7 85.8 85.9 85.10 85.11 85.12 85.13 85.14 85.15 85.16 85.17 85.18 85.19 85.20 85.21 85.22 85.23 85.24
85.25 85.26 85.27 85.28
85.29 85.30 85.31 85.32 85.33 85.34 85.35 86.1 86.2 86.3 86.4 86.5 86.6 86.7 86.8 86.9 86.10 86.11 86.12 86.13 86.14 86.15 86.16 86.17 86.18 86.19
86.20
86.21 86.22 86.23 86.24 86.25 86.26 86.27 86.28 86.29 86.30
86.31
86.32 87.1 87.2 87.3 87.4 87.5 87.6 87.7 87.8 87.9 87.10 87.11 87.12 87.13 87.14 87.15 87.16 87.17 87.18 87.19 87.20 87.21 87.22 87.23 87.24 87.25 87.26 87.27 87.28 87.29 87.30 87.31 87.32
87.33 87.34 87.35 88.1 88.2 88.3 88.4 88.5 88.6 88.7 88.8 88.9 88.10 88.11 88.12 88.13 88.14 88.15 88.16 88.17 88.18 88.19 88.20 88.21 88.22 88.23 88.24 88.25 88.26 88.27 88.28 88.29 88.30 88.31 88.32 88.33 88.34 88.35 88.36 89.1 89.2 89.3 89.4 89.5 89.6 89.7 89.8 89.9 89.10 89.11 89.12 89.13 89.14 89.15 89.16 89.17 89.18 89.19 89.20 89.21 89.22 89.23 89.24 89.25 89.26 89.27 89.28 89.29 89.30 89.31 89.32 89.33 89.34 89.35 89.36 90.1 90.2 90.3 90.4 90.5 90.6 90.7 90.8 90.9 90.10 90.11 90.12 90.13 90.14 90.15 90.16 90.17 90.18 90.19 90.20 90.21 90.22 90.23 90.24 90.25 90.26 90.27 90.28 90.29 90.30 90.31 90.32 90.33 90.34 90.35 90.36 91.1 91.2 91.3 91.4 91.5 91.6 91.7 91.8 91.9 91.10 91.11 91.12
91.13 91.14
91.15 91.16 91.17 91.18 91.19 91.20 91.21 91.22 91.23 91.24 91.25 91.26 91.27 91.28 91.29 91.30 91.31 91.32 91.33 91.34 91.35 92.1 92.2 92.3 92.4 92.5 92.6 92.7 92.8 92.9 92.10 92.11 92.12 92.13 92.14 92.15 92.16 92.17 92.18 92.19 92.20 92.21 92.22 92.23 92.24 92.25 92.26 92.27 92.28 92.29 92.30 92.31 92.32 92.33 92.34 92.35 92.36 92.37 93.1 93.2 93.3 93.4 93.5 93.6 93.7 93.8 93.9 93.10 93.11 93.12 93.13 93.14 93.15 93.16 93.17 93.18 93.19 93.20 93.21 93.22 93.23 93.24 93.25 93.26 93.27 93.28 93.29 93.30 93.31 93.32 93.33 93.34 93.35 93.36 94.1 94.2 94.3 94.4 94.5 94.6 94.7 94.8 94.9 94.10 94.11 94.12 94.13 94.14 94.15 94.16 94.17 94.18 94.19 94.20
94.21
94.22 94.23 94.24 94.25 94.26 94.27 94.28 94.29 94.30 94.31 94.32 94.33 94.34 94.35 95.1 95.2 95.3 95.4 95.5 95.6 95.7 95.8 95.9 95.10 95.11 95.12 95.13 95.14 95.15 95.16 95.17 95.18 95.19 95.20 95.21 95.22 95.23 95.24 95.25 95.26 95.27 95.28 95.29 95.30 95.31 95.32 95.33 95.34 95.35 96.1 96.2 96.3 96.4 96.5 96.6 96.7 96.8 96.9 96.10 96.11 96.12 96.13 96.14 96.15 96.16 96.17 96.18 96.19 96.20 96.21 96.22 96.23 96.24 96.25 96.26 96.27 96.28 96.29 96.30 96.31 96.32 96.33 96.34 96.35 96.36 97.1 97.2 97.3 97.4 97.5 97.6 97.7 97.8 97.9 97.10 97.11 97.12 97.13 97.14 97.15 97.16 97.17 97.18 97.19 97.20 97.21 97.22 97.23 97.24 97.25 97.26 97.27 97.28 97.29 97.30 97.31 97.32 97.33 97.34 97.35 97.36 98.1 98.2 98.3 98.4
98.5 98.6
98.7 98.8 98.9 98.10 98.11 98.12 98.13 98.14 98.15 98.16
98.17 98.18
98.19 98.20 98.21 98.22 98.23 98.24 98.25 98.26 98.27 98.28 98.29 98.30 98.31
99.1 99.2
99.3 99.4 99.5 99.6 99.7 99.8 99.9 99.10 99.11 99.12 99.13 99.14 99.15 99.16 99.17 99.18 99.19 99.20 99.21 99.22 99.23 99.24 99.25 99.26 99.27 99.28 99.29 99.30 99.31 99.32 99.33 99.34 99.35 100.1 100.2 100.3 100.4 100.5 100.6 100.7 100.8 100.9 100.10 100.11 100.12 100.13 100.14 100.15 100.16 100.17
100.18 100.19
100.20 100.21 100.22 100.23 100.24 100.25 100.26 100.27 100.28 100.29 100.30 100.31 100.32 100.33 101.1 101.2
101.3
101.4 101.5 101.6 101.7
101.8 101.9 101.10 101.11 101.12 101.13
101.14 101.15
101.16 101.17 101.18 101.19 101.20 101.21 101.22 101.23 101.24 101.25 101.26 101.27 101.28 101.29 101.30 102.1 102.2 102.3
102.4 102.5
102.6 102.7 102.8 102.9 102.10
102.11
102.12 102.13 102.14 102.15 102.16 102.17 102.18 102.19
102.20 102.21 102.22 102.23 102.24 102.25 102.26 102.27 102.28 102.29 102.30 102.31 102.32 103.1 103.2 103.3 103.4 103.5 103.6 103.7 103.8 103.9 103.10 103.11 103.12 103.13 103.14 103.15 103.16 103.17 103.18 103.19 103.20 103.21 103.22
103.23 103.24 103.25 103.26 103.27
103.28
103.29 103.30 103.31 103.32 103.33 104.1 104.2 104.3 104.4 104.5 104.6 104.7
104.8
104.9 104.10 104.11 104.12 104.13 104.14 104.15 104.16 104.17 104.18 104.19 104.20 104.21 104.22 104.23 104.24 104.25 104.26 104.27 104.28 104.29 104.30 104.31
104.32 104.33
105.1 105.2 105.3 105.4 105.5 105.6 105.7 105.8 105.9 105.10 105.11 105.12 105.13 105.14 105.15 105.16 105.17 105.18 105.19 105.20 105.21 105.22 105.23 105.24 105.25 105.26 105.27 105.28 105.29 105.30 105.31 105.32 105.33 105.34 105.35 106.1 106.2 106.3 106.4
106.5 106.6
106.7 106.8 106.9 106.10 106.11 106.12 106.13 106.14
106.15 106.16
106.17 106.18 106.19 106.20 106.21 106.22
106.23 106.24 106.25 106.26 106.27 106.28 106.29 106.30 106.31 106.32 107.1 107.2 107.3 107.4 107.5 107.6 107.7 107.8 107.9 107.10 107.11 107.12 107.13 107.14 107.15 107.16 107.17 107.18 107.19
107.20 107.21
107.22 107.23 107.24 107.25 107.26 107.27 107.28 107.29 107.30 107.31 107.32 107.33 107.34 108.1 108.2
108.3 108.4
108.5 108.6 108.7 108.8 108.9 108.10 108.11 108.12 108.13 108.14 108.15 108.16 108.17 108.18
108.19 108.20
108.21 108.22 108.23 108.24 108.25 108.26 108.27 108.28 108.29 108.30
108.31 108.32
109.1 109.2 109.3 109.4 109.5 109.6 109.7 109.8 109.9 109.10 109.11 109.12 109.13 109.14 109.15 109.16 109.17 109.18 109.19 109.20
109.21 109.22
109.23 109.24 109.25 109.26 109.27 109.28 109.29 109.30 109.31 109.32 109.33 109.34 109.35 110.1 110.2 110.3 110.4
110.5 110.6
110.7 110.8 110.9 110.10 110.11 110.12 110.13 110.14 110.15 110.16 110.17 110.18 110.19 110.20 110.21 110.22 110.23 110.24 110.25 110.26 110.27 110.28 110.29 110.30 110.31 110.32 110.33 110.34
111.1
111.2 111.3 111.4 111.5 111.6 111.7 111.8 111.9 111.10 111.11 111.12 111.13 111.14 111.15 111.16 111.17 111.18 111.19 111.20 111.21 111.22 111.23 111.24 111.25
111.26
111.27 111.28 111.29 111.30 111.31 111.32 111.33 111.34 112.1 112.2 112.3
112.4 112.5 112.6 112.7 112.8
112.9 112.10
112.11 112.12
112.13 112.14
112.15 112.16
112.17 112.18 112.19 112.20 112.21 112.22 112.23 112.24 112.25 112.26 112.27 112.28 112.29 112.30 112.31 113.1 113.2 113.3 113.4 113.5 113.6 113.7 113.8 113.9 113.10 113.11 113.12 113.13 113.14
113.15 113.16 113.17 113.18 113.19 113.20 113.21 113.22 113.23 113.24 113.25 113.26 113.27 113.28 113.29 113.30
113.31 113.32 113.33 113.34 114.1 114.2 114.3 114.4 114.5 114.6 114.7 114.8 114.9 114.10 114.11 114.12 114.13 114.14 114.15 114.16 114.17 114.18 114.19 114.20 114.21 114.22 114.23 114.24 114.25 114.26 114.27 114.28 114.29 114.30 114.31 114.32 114.33 114.34 114.35 114.36
115.1 115.2 115.3
115.4 115.5 115.6 115.7 115.8 115.9 115.10 115.11 115.12 115.13 115.14 115.15 115.16 115.17 115.18 115.19 115.20 115.21 115.22 115.23 115.24
115.25
115.26 115.27 115.28 115.29 115.30 115.31
115.32 115.33
116.1 116.2 116.3 116.4 116.5 116.6 116.7 116.8 116.9
116.10 116.11 116.12 116.13 116.14 116.15 116.16 116.17 116.18 116.19 116.20 116.21 116.22
116.23 116.24 116.25 116.26 116.27 116.28
116.29 116.30
117.1 117.2
117.3 117.4 117.5 117.6 117.7 117.8 117.9 117.10 117.11 117.12 117.13 117.14 117.15 117.16 117.17 117.18 117.19 117.20
117.21
117.22 117.23 117.24 117.25 117.26
117.27 117.28
117.29 117.30 117.31 118.1 118.2 118.3 118.4 118.5 118.6 118.7 118.8 118.9 118.10 118.11 118.12 118.13 118.14 118.15 118.16 118.17 118.18 118.19 118.20 118.21 118.22 118.23 118.24 118.25 118.26 118.27 118.28 118.29 118.30 118.31 118.32 118.33 118.34 118.35 118.36 119.1 119.2 119.3 119.4 119.5 119.6 119.7 119.8 119.9 119.10 119.11 119.12 119.13 119.14 119.15 119.16 119.17 119.18 119.19 119.20 119.21 119.22 119.23 119.24 119.25 119.26 119.27 119.28 119.29 119.30 119.31 119.32 119.33 119.34 119.35 119.36 120.1 120.2 120.3 120.4 120.5 120.6 120.7 120.8 120.9 120.10 120.11 120.12 120.13 120.14 120.15 120.16 120.17 120.18 120.19 120.20 120.21 120.22 120.23 120.24 120.25 120.26 120.27 120.28 120.29 120.30 120.31 120.32 120.33 120.34 120.35 120.36 121.1 121.2 121.3 121.4 121.5 121.6 121.7 121.8 121.9 121.10 121.11 121.12 121.13 121.14 121.15 121.16 121.17 121.18 121.19 121.20 121.21 121.22 121.23 121.24 121.25 121.26 121.27 121.28 121.29 121.30 121.31 121.32 121.33 121.34 121.35 121.36 122.1 122.2 122.3 122.4 122.5 122.6 122.7 122.8 122.9 122.10 122.11 122.12 122.13 122.14 122.15 122.16 122.17 122.18 122.19 122.20 122.21 122.22 122.23 122.24 122.25 122.26 122.27 122.28 122.29 122.30 122.31 122.32 122.33 122.34 122.35 122.36 123.1 123.2 123.3 123.4 123.5 123.6 123.7 123.8 123.9 123.10 123.11 123.12 123.13 123.14 123.15
123.16 123.17 123.18 123.19 123.20 123.21 123.22 123.23 123.24 123.25 123.26 123.27
123.28
123.29 123.30 123.31 123.32 123.33 123.34 124.1 124.2 124.3 124.4 124.5
124.6
124.7 124.8 124.9 124.10 124.11 124.12 124.13 124.14 124.15 124.16 124.17 124.18 124.19 124.20 124.21 124.22 124.23 124.24 124.25 124.26 124.27 124.28 124.29 124.30 124.31 124.32 124.33 124.34 125.1 125.2 125.3 125.4 125.5 125.6 125.7 125.8 125.9
125.10
125.11 125.12 125.13
125.14 125.15
125.16 125.17
125.18 125.19 125.20
125.21 125.22 125.23 125.24 125.25 125.26 125.27 125.28
125.29 125.30 126.1 126.2 126.3 126.4 126.5 126.6 126.7 126.8 126.9 126.10
126.11 126.12
126.13 126.14 126.15 126.16 126.17 126.18 126.19 126.20 126.21 126.22 126.23
126.24 126.25
126.26 126.27 126.28 126.29 126.30 126.31 126.32 126.33 127.1 127.2 127.3 127.4 127.5 127.6 127.7 127.8 127.9 127.10 127.11 127.12 127.13 127.14 127.15 127.16 127.17 127.18 127.19 127.20 127.21 127.22 127.23 127.24 127.25 127.26 127.27 127.28 127.29 127.30 127.31 127.32 127.33 127.34 127.35 127.36
128.1 128.2
128.3 128.4 128.5 128.6 128.7 128.8 128.9 128.10 128.11 128.12 128.13 128.14 128.15 128.16 128.17 128.18 128.19 128.20 128.21 128.22 128.23 128.24 128.25 128.26 128.27 128.28 128.29 128.30 128.31 128.32 128.33 128.34 128.35 129.1 129.2 129.3 129.4 129.5 129.6 129.7 129.8 129.9 129.10 129.11 129.12 129.13 129.14 129.15 129.16 129.17 129.18 129.19 129.20 129.21 129.22 129.23 129.24 129.25 129.26 129.27 129.28 129.29 129.30 129.31 129.32 129.33 129.34 129.35 129.36 130.1 130.2 130.3 130.4 130.5 130.6 130.7 130.8 130.9 130.10 130.11 130.12 130.13 130.14 130.15 130.16 130.17 130.18 130.19 130.20 130.21 130.22 130.23 130.24 130.25 130.26 130.27 130.28 130.29 130.30 130.31 130.32 130.33 130.34 130.35 130.36 131.1 131.2
131.3 131.4
131.5 131.6 131.7 131.8 131.9 131.10 131.11 131.12 131.13 131.14 131.15 131.16 131.17 131.18 131.19 131.20 131.21 131.22 131.23 131.24 131.25 131.26 131.27 131.28 131.29 131.30 131.31
131.32 131.33
132.1 132.2 132.3 132.4 132.5 132.6 132.7 132.8 132.9 132.10 132.11 132.12 132.13
132.14 132.15
132.16 132.17 132.18 132.19 132.20 132.21 132.22 132.23 132.24 132.25 132.26 132.27 132.28 132.29 132.30 132.31 132.32 132.33 132.34
133.1 133.2
133.3 133.4 133.5 133.6 133.7 133.8 133.9 133.10 133.11 133.12 133.13 133.14 133.15 133.16 133.17 133.18 133.19 133.20 133.21 133.22 133.23 133.24 133.25 133.26 133.27 133.28 133.29 133.30 133.31 133.32 133.33 133.34 133.35 134.1 134.2 134.3 134.4 134.5 134.6 134.7 134.8 134.9 134.10 134.11 134.12 134.13 134.14 134.15 134.16 134.17 134.18
134.19 134.20 134.21 134.22 134.23 134.24 134.25 134.26 134.27 134.28 134.29 134.30 134.31 134.32 134.33 134.34 135.1 135.2 135.3 135.4 135.5 135.6 135.7 135.8 135.9 135.10 135.11 135.12
135.13
135.14 135.15 135.16 135.17 135.18 135.19 135.20 135.21 135.22 135.23 135.24 135.25 135.26 135.27 135.28
135.29 135.30
135.31 135.32 136.1 136.2 136.3 136.4
136.5 136.6 136.7 136.8 136.9 136.10 136.11 136.12 136.13 136.14 136.15 136.16 136.17 136.18 136.19 136.20 136.21 136.22 136.23 136.24
136.25 136.26 136.27
136.28 136.29 136.30 136.31 136.32 136.33 137.1 137.2 137.3 137.4 137.5 137.6 137.7 137.8 137.9 137.10 137.11 137.12 137.13 137.14 137.15 137.16 137.17 137.18 137.19
137.20 137.21 137.22
137.23 137.24 137.25 137.26 137.27 137.28 137.29 137.30 137.31 137.32 137.33 137.34 138.1 138.2
138.3
138.4 138.5 138.6 138.7 138.8 138.9 138.10 138.11 138.12 138.13 138.14 138.15 138.16 138.17 138.18 138.19
138.20
138.21 138.22 138.23 138.24 138.25 138.26 138.27 138.28 138.29 138.30 138.31 138.32 138.33
139.1
139.2 139.3 139.4 139.5 139.6 139.7 139.8 139.9 139.10 139.11 139.12 139.13 139.14 139.15 139.16 139.17 139.18 139.19
139.20
139.21 139.22 139.23 139.24 139.25 139.26 139.27 139.28 139.29 139.30 139.31 139.32 139.33 140.1 140.2
140.3 140.4 140.5
140.6 140.7 140.8 140.9 140.10 140.11 140.12 140.13 140.14 140.15 140.16 140.17 140.18
140.19
140.20 140.21 140.22 140.23 140.24 140.25 140.26 140.27 140.28 140.29 140.30 140.31 140.32 140.33 141.1 141.2
141.3
141.4 141.5 141.6 141.7 141.8 141.9 141.10 141.11 141.12 141.13 141.14 141.15 141.16 141.17 141.18
141.19 141.20 141.21
141.22 141.23 141.24 141.25 141.26 141.27 141.28 141.29 141.30 141.31 141.32 141.33 142.1 142.2 142.3 142.4 142.5 142.6 142.7 142.8 142.9 142.10 142.11 142.12 142.13 142.14 142.15 142.16 142.17 142.18 142.19 142.20
142.21 142.22 142.23
142.24 142.25 142.26 142.27 142.28 142.29
142.30 142.31 142.32
142.33 143.1 143.2 143.3 143.4 143.5
143.6 143.7
143.8 143.9 143.10 143.11 143.12 143.13 143.14
143.15
143.16 143.17 143.18 143.19 143.20 143.21 143.22 143.23 143.24 143.25 143.26 143.27 143.28 143.29
143.30 143.31
143.32 144.1 144.2 144.3 144.4 144.5 144.6 144.7 144.8 144.9 144.10
144.11 144.12 144.13
144.14 144.15 144.16 144.17 144.18 144.19 144.20 144.21 144.22 144.23 144.24 144.25 144.26 144.27 144.28 144.29 144.30 144.31 144.32 144.33 144.34 144.35 145.1 145.2 145.3 145.4 145.5 145.6 145.7 145.8
145.9 145.10 145.11
145.12 145.13 145.14 145.15 145.16 145.17 145.18 145.19 145.20 145.21 145.22 145.23 145.24 145.25 145.26
145.27 145.28 145.29 145.30 145.31 145.32 145.33 145.34 146.1 146.2 146.3 146.4 146.5 146.6 146.7
146.8 146.9 146.10
146.11 146.12 146.13 146.14 146.15 146.16 146.17 146.18 146.19 146.20 146.21 146.22 146.23 146.24
146.25 146.26 146.27
146.28 146.29 146.30 146.31 146.32 146.33 147.1 147.2 147.3 147.4 147.5 147.6 147.7 147.8 147.9
147.10 147.11 147.12
147.13 147.14 147.15
147.16
147.17 147.18
147.19 147.20 147.21 147.22 147.23 147.24 147.25 147.26 147.27 147.28 147.29 147.30 147.31 147.32 147.33 148.1 148.2 148.3 148.4 148.5 148.6 148.7 148.8 148.9 148.10 148.11 148.12 148.13 148.14
148.15 148.16 148.17
148.18 148.19 148.20 148.21 148.22 148.23 148.24 148.25 148.26 148.27 148.28 148.29 148.30 148.31
148.32 148.33 149.1 149.2 149.3 149.4 149.5 149.6 149.7 149.8 149.9 149.10
149.11 149.12 149.13 149.14 149.15 149.16 149.17 149.18 149.19 149.20 149.21 149.22 149.23 149.24 149.25 149.26 149.27 149.28 149.29 149.30 149.31 149.32 149.33 149.34 149.35
150.1 150.2 150.3 150.4 150.5 150.6 150.7 150.8 150.9 150.10 150.11 150.12 150.13
150.14 150.15 150.16 150.17 150.18 150.19 150.20 150.21 150.22 150.23 150.24 150.25
150.26 150.27
150.28 150.29 150.30 150.31 150.32 150.33 150.34
151.1 151.2 151.3 151.4 151.5 151.6 151.7 151.8 151.9 151.10 151.11
151.12 151.13 151.14 151.15 151.16 151.17 151.18 151.19 151.20 151.21 151.22 151.23 151.24 151.25 151.26 151.27 151.28 151.29 151.30
151.31 151.32 151.33 151.34 152.1 152.2 152.3 152.4 152.5 152.6
152.7 152.8 152.9 152.10 152.11
152.12 152.13 152.14 152.15 152.16 152.17 152.18 152.19 152.20 152.21 152.22 152.23 152.24 152.25 152.26 152.27 152.28 152.29 152.30 152.31 152.32 152.33 153.1 153.2 153.3 153.4 153.5 153.6 153.7 153.8 153.9 153.10 153.11 153.12 153.13 153.14 153.15 153.16 153.17 153.18 153.19 153.20 153.21 153.22 153.23 153.24 153.25 153.26 153.27 153.28 153.29 153.30 153.31 153.32 153.33 153.34
153.35 154.1 154.2 154.3 154.4 154.5 154.6
154.7 154.8 154.9
154.10 154.11 154.12 154.13 154.14 154.15 154.16 154.17 154.18 154.19 154.20 154.21 154.22 154.23 154.24 154.25 154.26 154.27 154.28 154.29
154.30 154.31 154.32 154.33 154.34 155.1 155.2 155.3 155.4 155.5 155.6 155.7 155.8 155.9 155.10 155.11 155.12 155.13 155.14 155.15 155.16 155.17 155.18 155.19 155.20 155.21 155.22 155.23 155.24 155.25 155.26 155.27 155.28 155.29 155.30 155.31 155.32 155.33 155.34 155.35 156.1 156.2 156.3 156.4 156.5 156.6 156.7 156.8 156.9 156.10 156.11 156.12 156.13 156.14
156.15 156.16 156.17 156.18 156.19 156.20 156.21 156.22 156.23 156.24 156.25 156.26 156.27 156.28 156.29 156.30 156.31 156.32 156.33 156.34 156.35 157.1 157.2 157.3 157.4 157.5 157.6 157.7
157.8 157.9 157.10 157.11 157.12 157.13 157.14 157.15
157.16 157.17 157.18 157.19 157.20 157.21
157.22 157.23 157.24 157.25 157.26 157.27 157.28 157.29 157.30 157.31 157.32 158.1 158.2 158.3 158.4 158.5
158.6 158.7 158.8 158.9 158.10 158.11 158.12 158.13
158.14 158.15 158.16
158.17 158.18 158.19 158.20 158.21 158.22
158.23 158.24
158.25 158.26 158.27
158.28 158.29
158.30 159.1 159.2 159.3 159.4 159.5 159.6 159.7 159.8 159.9 159.10 159.11 159.12 159.13 159.14 159.15 159.16 159.17 159.18 159.19 159.20 159.21 159.22 159.23 159.24 159.25 159.26 159.27 159.28 159.29 159.30 159.31 159.32 159.33
159.34 159.35 160.1 160.2 160.3 160.4 160.5 160.6 160.7 160.8 160.9 160.10 160.11 160.12 160.13 160.14 160.15 160.16 160.17 160.18 160.19 160.20 160.21 160.22 160.23 160.24 160.25 160.26 160.27 160.28 160.29 160.30 160.31 160.32 160.33 160.34 160.35 160.36 161.1 161.2 161.3 161.4 161.5 161.6 161.7 161.8 161.9 161.10 161.11 161.12 161.13 161.14 161.15 161.16 161.17 161.18 161.19 161.20 161.21 161.22 161.23 161.24
161.25 161.26 161.27 161.28 161.29 161.30 161.31 161.32 161.33 161.34 161.35 162.1 162.2 162.3 162.4 162.5 162.6 162.7 162.8 162.9 162.10 162.11 162.12 162.13 162.14 162.15 162.16 162.17 162.18 162.19 162.20 162.21 162.22 162.23 162.24 162.25 162.26 162.27 162.28 162.29 162.30 162.31 162.32 162.33 162.34 162.35 162.36 163.1 163.2 163.3 163.4 163.5 163.6 163.7 163.8 163.9 163.10 163.11 163.12 163.13 163.14 163.15 163.16 163.17 163.18 163.19 163.20
163.21
163.22 163.23 163.24 163.25 163.26 163.27 163.28 163.29 163.30 163.31 163.32 163.33 163.34 163.35 164.1 164.2 164.3 164.4 164.5 164.6 164.7 164.8 164.9 164.10 164.11 164.12 164.13 164.14 164.15 164.16 164.17 164.18 164.19 164.20 164.21 164.22 164.23 164.24 164.25 164.26 164.27 164.28 164.29 164.30 164.31 164.32 164.33 164.34 164.35 165.1 165.2 165.3 165.4 165.5 165.6 165.7 165.8 165.9 165.10 165.11 165.12 165.13 165.14 165.15 165.16 165.17 165.18 165.19 165.20 165.21 165.22 165.23 165.24 165.25 165.26 165.27 165.28 165.29 165.30
165.31 165.32 165.33 165.34 165.35 166.1 166.2 166.3
166.4
166.5 166.6 166.7 166.8 166.9 166.10 166.11 166.12 166.13 166.14 166.15 166.16 166.17 166.18 166.19 166.20 166.21 166.22 166.23 166.24 166.25 166.26 166.27 166.28 166.29 166.30 166.31 166.32 166.33 166.34 167.1 167.2 167.3 167.4 167.5 167.6 167.7 167.8 167.9 167.10 167.11 167.12 167.13 167.14 167.15 167.16 167.17
167.18 167.19 167.20 167.21 167.22 167.23 167.24 167.25 167.26 167.27 167.28 167.29 167.30 167.31 167.32 167.33 167.34 167.35
168.1 168.2 168.3
168.4 168.5 168.6 168.7 168.8 168.9 168.10 168.11 168.12 168.13 168.14 168.15 168.16 168.17 168.18 168.19 168.20 168.21 168.22 168.23 168.24 168.25 168.26 168.27 168.28 168.29 168.30 168.31 168.32 168.33 168.34
169.1 169.2
169.3 169.4 169.5 169.6 169.7 169.8 169.9 169.10 169.11
169.12 169.13
169.14 169.15 169.16 169.17 169.18 169.19 169.20 169.21 169.22 169.23 169.24 169.25 169.26 169.27 169.28 169.29 169.30 169.31 169.32 169.33 169.34 170.1 170.2 170.3 170.4 170.5 170.6 170.7 170.8 170.9 170.10 170.11 170.12 170.13 170.14 170.15 170.16
170.17
170.18 170.19 170.20 170.21 170.22 170.23 170.24 170.25 170.26
170.27 170.28
170.29 170.30 170.31 170.32 170.33 171.1 171.2 171.3 171.4 171.5 171.6 171.7 171.8 171.9 171.10 171.11 171.12 171.13 171.14 171.15 171.16 171.17 171.18 171.19 171.20 171.21 171.22 171.23 171.24 171.25 171.26 171.27 171.28 171.29
171.30 171.31
171.32 171.33 171.34 171.35 172.1 172.2 172.3 172.4 172.5 172.6 172.7 172.8 172.9 172.10 172.11 172.12 172.13
172.14
172.15 172.16 172.17 172.18 172.19 172.20 172.21 172.22 172.23 172.24 172.25 172.26 172.27 172.28 172.29 172.30 172.31 172.32 172.33 172.34 172.35 173.1 173.2 173.3 173.4 173.5 173.6 173.7 173.8 173.9 173.10 173.11 173.12 173.13 173.14 173.15 173.16 173.17 173.18 173.19 173.20 173.21 173.22 173.23 173.24 173.25 173.26 173.27 173.28 173.29 173.30 173.31 173.32 173.33 173.34 173.35 173.36 174.1 174.2 174.3 174.4 174.5 174.6 174.7 174.8 174.9 174.10 174.11 174.12 174.13 174.14 174.15 174.16 174.17 174.18 174.19 174.20 174.21 174.22 174.23 174.24 174.25 174.26 174.27 174.28 174.29 174.30 174.31 174.32 174.33 174.34 174.35 174.36 175.1 175.2 175.3 175.4 175.5 175.6 175.7 175.8 175.9 175.10 175.11
175.12
175.13 175.14 175.15 175.16 175.17 175.18 175.19 175.20 175.21 175.22 175.23 175.24 175.25 175.26 175.27 175.28 175.29 175.30 175.31 175.32 175.33 175.34 175.35 176.1 176.2 176.3 176.4 176.5 176.6 176.7 176.8 176.9 176.10 176.11 176.12 176.13 176.14 176.15 176.16 176.17 176.18 176.19 176.20 176.21 176.22 176.23 176.24 176.25 176.26 176.27 176.28 176.29 176.30 176.31 176.32 176.33
176.34 176.35
177.1 177.2 177.3 177.4 177.5 177.6 177.7 177.8 177.9 177.10
177.11
177.12 177.13 177.14 177.15 177.16 177.17 177.18 177.19 177.20 177.21 177.22 177.23 177.24
177.25
177.26 177.27
177.28
178.1 178.2
178.3 178.4 178.5 178.6 178.7 178.8 178.9 178.10 178.11 178.12 178.13 178.14 178.15 178.16 178.17 178.18 178.19 178.20 178.21 178.22 178.23 178.24 178.25 178.26 178.27 178.28 178.29 178.30 178.31 178.32 178.33 178.34 178.35 179.1 179.2 179.3 179.4 179.5 179.6
179.7 179.8
179.9 179.10 179.11 179.12 179.13 179.14 179.15 179.16 179.17 179.18 179.19 179.20 179.21 179.22 179.23 179.24 179.25 179.26 179.27 179.28 179.29 179.30 179.31 179.32 179.33 180.1 180.2 180.3 180.4 180.5 180.6 180.7 180.8 180.9 180.10 180.11 180.12 180.13 180.14 180.15
180.16 180.17 180.18
180.19 180.20 180.21 180.22 180.23 180.24 180.25 180.26 180.27 180.28 180.29 180.30 180.31 180.32 180.33
180.34
181.1 181.2 181.3 181.4 181.5 181.6 181.7 181.8 181.9 181.10 181.11 181.12
181.13
181.14 181.15
181.16
181.17 181.18
181.19 181.20 181.21 181.22 181.23 181.24 181.25 181.26 181.27 181.28 181.29 181.30 181.31 181.32 181.33 182.1 182.2 182.3 182.4 182.5
182.6
182.7 182.8 182.9 182.10 182.11 182.12 182.13 182.14
182.15
182.16 182.17 182.18 182.19 182.20 182.21 182.22 182.23 182.24 182.25 182.26 182.27 182.28 182.29 182.30 182.31 182.32 183.1 183.2 183.3 183.4 183.5 183.6 183.7 183.8 183.9 183.10 183.11 183.12 183.13
183.14
183.15 183.16 183.17 183.18 183.19 183.20 183.21 183.22 183.23 183.24 183.25 183.26 183.27 183.28
183.29
183.30 183.31 183.32 183.33 184.1 184.2 184.3
184.4
184.5 184.6 184.7 184.8 184.9 184.10 184.11 184.12 184.13 184.14 184.15
184.16
184.17 184.18 184.19 184.20 184.21 184.22 184.23 184.24 184.25 184.26 184.27 184.28 184.29
184.30
184.31 185.1 185.2 185.3 185.4 185.5 185.6 185.7 185.8 185.9 185.10 185.11 185.12 185.13 185.14 185.15 185.16 185.17 185.18 185.19 185.20 185.21 185.22 185.23 185.24 185.25 185.26 185.27 185.28 185.29 185.30 185.31 185.32 185.33 185.34 185.35 185.36 186.1 186.2 186.3 186.4 186.5 186.6
186.7 186.8 186.9
186.10 186.11 186.12 186.13 186.14 186.15 186.16
186.17
186.18 186.19 186.20 186.21 186.22 186.23 186.24 186.25 186.26
186.27
186.28 186.29 186.30 186.31
187.1 187.2 187.3
187.4 187.5 187.6 187.7
187.8 187.9 187.10
187.11 187.12 187.13 187.14 187.15
187.16
187.17 187.18 187.19 187.20 187.21 187.22
187.23 187.24 187.25
187.26 187.27 187.28 187.29 187.30 187.31 188.1 188.2 188.3 188.4 188.5 188.6 188.7 188.8 188.9 188.10 188.11 188.12 188.13 188.14 188.15 188.16 188.17 188.18 188.19 188.20
188.21
188.22 188.23 188.24 188.25 188.26 188.27
188.28 188.29 188.30
188.31 188.32 188.33
189.1
189.2 189.3
189.4 189.5 189.6 189.7 189.8 189.9 189.10 189.11 189.12 189.13 189.14 189.15 189.16 189.17 189.18 189.19 189.20 189.21
189.22 189.23
189.24 189.25 189.26 189.27 189.28 189.29 189.30 189.31 189.32 189.33 190.1 190.2 190.3 190.4 190.5 190.6 190.7 190.8
190.9 190.10
190.11 190.12 190.13 190.14 190.15 190.16 190.17 190.18 190.19 190.20 190.21 190.22 190.23
190.24 190.25
190.26 190.27 190.28 190.29
190.30
190.31 191.1 191.2 191.3 191.4 191.5 191.6 191.7 191.8 191.9 191.10 191.11 191.12 191.13 191.14 191.15 191.16 191.17 191.18 191.19 191.20 191.21 191.22 191.23 191.24 191.25 191.26 191.27 191.28 191.29 191.30 191.31 191.32 191.33 191.34 191.35 191.36 192.1 192.2 192.3 192.4 192.5 192.6 192.7 192.8 192.9 192.10 192.11 192.12 192.13 192.14 192.15 192.16
192.17 192.18 192.19 192.20 192.21 192.22 192.23 192.24 192.25 192.26 192.27 192.28 192.29 192.30 192.31 192.32 192.33 192.34 193.1 193.2
193.3 193.4 193.5 193.6 193.7 193.8 193.9 193.10 193.11 193.12 193.13 193.14 193.15 193.16 193.17 193.18 193.19 193.20 193.21 193.22 193.23 193.24 193.25 193.26 193.27 193.28 193.29 193.30 193.31 193.32 193.33 193.34 193.35 194.1 194.2 194.3 194.4 194.5 194.6 194.7 194.8 194.9 194.10 194.11 194.12 194.13 194.14 194.15 194.16 194.17 194.18 194.19 194.20 194.21 194.22 194.23 194.24 194.25 194.26 194.27 194.28 194.29 194.30 194.31 194.32 194.33 194.34 194.35 195.1 195.2 195.3 195.4 195.5 195.6 195.7 195.8 195.9 195.10 195.11 195.12 195.13 195.14 195.15 195.16 195.17 195.18 195.19 195.20 195.21 195.22 195.23 195.24 195.25 195.26 195.27 195.28 195.29 195.30 195.31 195.32 195.33 195.34 195.35 195.36 196.1 196.2 196.3 196.4 196.5 196.6 196.7 196.8 196.9 196.10 196.11 196.12 196.13 196.14 196.15 196.16 196.17 196.18 196.19 196.20 196.21 196.22 196.23 196.24 196.25 196.26 196.27 196.28 196.29 196.30 196.31 196.32 196.33 196.34 196.35 197.1 197.2 197.3 197.4 197.5 197.6 197.7 197.8 197.9 197.10 197.11 197.12 197.13 197.14 197.15 197.16 197.17 197.18 197.19 197.20 197.21 197.22 197.23 197.24 197.25 197.26 197.27
197.28 197.29
197.30 197.31 197.32 197.33 197.34 197.35 198.1 198.2 198.3 198.4 198.5 198.6 198.7 198.8 198.9 198.10 198.11 198.12 198.13 198.14 198.15 198.16 198.17 198.18 198.19 198.20 198.21 198.22
198.23
198.24 198.25 198.26 198.27 198.28 198.29 198.30 198.31 198.32 198.33 198.34 199.1 199.2 199.3 199.4 199.5 199.6 199.7 199.8 199.9 199.10 199.11 199.12 199.13 199.14 199.15 199.16 199.17 199.18 199.19 199.20 199.21 199.22 199.23 199.24 199.25 199.26 199.27 199.28 199.29 199.30 199.31 199.32 199.33 199.34 199.35 199.36 200.1 200.2 200.3 200.4 200.5 200.6 200.7 200.8 200.9 200.10 200.11 200.12 200.13 200.14 200.15 200.16 200.17 200.18 200.19 200.20 200.21 200.22 200.23 200.24 200.25 200.26 200.27 200.28 200.29 200.30 200.31 200.32 200.33 200.34 200.35 201.1 201.2 201.3 201.4 201.5 201.6 201.7 201.8 201.9 201.10 201.11 201.12 201.13 201.14 201.15 201.16 201.17 201.18 201.19 201.20 201.21 201.22 201.23 201.24 201.25 201.26 201.27 201.28 201.29 201.30 201.31 201.32 201.33 201.34 201.35 201.36 202.1 202.2 202.3 202.4 202.5 202.6 202.7 202.8 202.9 202.10 202.11 202.12 202.13 202.14 202.15 202.16 202.17 202.18 202.19 202.20 202.21 202.22 202.23 202.24 202.25 202.26 202.27 202.28 202.29 202.30 202.31 202.32 202.33 202.34 202.35 202.36 203.1 203.2 203.3 203.4 203.5 203.6 203.7 203.8 203.9 203.10 203.11 203.12 203.13 203.14 203.15 203.16 203.17
203.18
203.19 203.20 203.21 203.22 203.23 203.24 203.25 203.26 203.27 203.28 203.29 203.30 203.31 203.32 203.33 203.34 203.35 204.1 204.2 204.3 204.4 204.5 204.6 204.7 204.8 204.9 204.10 204.11 204.12 204.13 204.14 204.15 204.16 204.17 204.18 204.19 204.20 204.21 204.22 204.23 204.24 204.25 204.26 204.27 204.28 204.29 204.30 204.31 204.32 204.33 204.34 204.35 204.36 205.1 205.2 205.3 205.4 205.5 205.6 205.7 205.8 205.9 205.10 205.11 205.12 205.13 205.14 205.15 205.16 205.17 205.18 205.19 205.20 205.21 205.22 205.23 205.24 205.25 205.26 205.27 205.28 205.29 205.30 205.31 205.32 205.33 205.34 205.35 206.1 206.2 206.3 206.4 206.5 206.6 206.7 206.8 206.9 206.10 206.11 206.12 206.13 206.14 206.15 206.16 206.17 206.18 206.19 206.20 206.21 206.22 206.23 206.24 206.25 206.26 206.27 206.28 206.29 206.30 206.31 206.32 206.33 206.34 206.35 206.36 207.1 207.2 207.3 207.4 207.5 207.6 207.7 207.8 207.9 207.10 207.11 207.12 207.13 207.14 207.15 207.16 207.17 207.18 207.19 207.20 207.21 207.22 207.23 207.24 207.25 207.26 207.27 207.28 207.29 207.30 207.31 207.32 207.33 207.34 207.35 207.36 208.1 208.2 208.3 208.4 208.5 208.6 208.7 208.8 208.9 208.10 208.11 208.12 208.13 208.14 208.15 208.16 208.17 208.18 208.19 208.20 208.21 208.22 208.23 208.24 208.25 208.26 208.27 208.28
208.29
208.30 208.31 208.32 208.33 208.34 208.35 209.1 209.2 209.3 209.4
209.5
209.6 209.7 209.8 209.9 209.10 209.11 209.12 209.13 209.14 209.15 209.16 209.17 209.18 209.19 209.20 209.21 209.22 209.23
209.24 209.25
209.26 209.27 209.28 209.29 209.30 209.31 209.32 209.33 210.1 210.2 210.3
210.4 210.5
210.6 210.7 210.8 210.9 210.10 210.11 210.12 210.13 210.14 210.15 210.16 210.17
210.18
210.19 210.20 210.21 210.22 210.23 210.24 210.25 210.26 210.27 210.28 210.29 210.30 210.31 210.32 210.33 211.1 211.2 211.3 211.4 211.5 211.6 211.7 211.8 211.9 211.10 211.11 211.12 211.13 211.14 211.15 211.16 211.17 211.18 211.19 211.20 211.21 211.22 211.23 211.24 211.25 211.26 211.27 211.28 211.29
211.30 211.31
211.32 211.33 212.1 212.2 212.3 212.4 212.5 212.6 212.7 212.8 212.9 212.10 212.11 212.12 212.13 212.14 212.15 212.16 212.17
212.18
212.19 212.20 212.21 212.22 212.23 212.24 212.25 212.26 212.27 212.28 212.29
212.30 212.31
213.1 213.2 213.3 213.4 213.5 213.6
213.7 213.8
213.9 213.10 213.11 213.12 213.13 213.14 213.15 213.16 213.17 213.18 213.19 213.20 213.21 213.22 213.23
213.24 213.25
213.26 213.27 213.28 213.29 213.30 213.31 213.32 214.1 214.2 214.3 214.4 214.5 214.6 214.7 214.8 214.9 214.10 214.11 214.12 214.13 214.14 214.15 214.16 214.17 214.18 214.19 214.20 214.21
214.22 214.23
214.24 214.25 214.26 214.27 214.28 214.29 214.30 214.31 214.32 214.33 214.34 214.35 215.1 215.2 215.3 215.4 215.5 215.6 215.7 215.8 215.9 215.10 215.11 215.12 215.13
215.14 215.15
215.16 215.17 215.18 215.19 215.20 215.21 215.22 215.23 215.24 215.25 215.26 215.27 215.28 215.29 215.30 215.31 215.32 215.33
216.1 216.2
216.3 216.4 216.5 216.6 216.7 216.8 216.9 216.10 216.11
216.12
216.13 216.14
216.15 216.16 216.17 216.18 216.19 216.20 216.21 216.22 216.23 216.24 216.25 216.26 216.27 216.28 216.29 216.30 216.31 216.32 216.33 217.1 217.2 217.3 217.4 217.5 217.6 217.7 217.8 217.9 217.10 217.11 217.12 217.13 217.14 217.15 217.16 217.17 217.18 217.19 217.20 217.21 217.22 217.23 217.24 217.25 217.26 217.27 217.28 217.29 217.30 217.31 217.32 217.33 217.34 217.35 217.36 218.1 218.2 218.3 218.4 218.5 218.6 218.7 218.8 218.9 218.10 218.11 218.12 218.13 218.14 218.15 218.16 218.17 218.18 218.19 218.20 218.21 218.22
218.23
218.24 218.25 218.26 218.27 218.28 218.29 218.30 218.31 218.32 218.33 218.34 218.35 219.1 219.2 219.3 219.4 219.5 219.6 219.7 219.8 219.9 219.10 219.11 219.12 219.13 219.14 219.15 219.16 219.17 219.18 219.19 219.20 219.21 219.22 219.23 219.24 219.25 219.26 219.27 219.28 219.29 219.30 219.31 219.32 219.33 219.34 219.35 219.36 220.1 220.2 220.3 220.4 220.5 220.6 220.7 220.8 220.9 220.10 220.11 220.12 220.13 220.14 220.15 220.16 220.17 220.18 220.19 220.20 220.21 220.22 220.23 220.24
220.25
220.26 220.27 220.28 220.29 220.30 220.31 220.32 220.33 220.34 220.35
221.1
221.2 221.3 221.4 221.5 221.6 221.7 221.8 221.9 221.10 221.11 221.12 221.13 221.14 221.15 221.16 221.17 221.18 221.19 221.20 221.21 221.22 221.23 221.24 221.25 221.26 221.27 221.28 221.29 221.30 221.31 221.32 221.33 221.34 221.35 222.1 222.2 222.3 222.4 222.5 222.6 222.7 222.8 222.9 222.10 222.11 222.12 222.13 222.14 222.15 222.16 222.17 222.18 222.19 222.20 222.21 222.22 222.23 222.24
222.25
222.26 222.27 222.28 222.29 222.30 222.31 222.32 222.33 222.34 222.35
223.1 223.2
223.3 223.4 223.5 223.6 223.7 223.8 223.9 223.10 223.11 223.12 223.13 223.14 223.15 223.16 223.17 223.18 223.19 223.20 223.21 223.22 223.23 223.24 223.25 223.26 223.27 223.28 223.29 223.30 223.31 223.32 223.33 223.34 223.35 224.1 224.2 224.3 224.4 224.5 224.6 224.7 224.8 224.9 224.10 224.11 224.12 224.13 224.14 224.15 224.16 224.17 224.18 224.19 224.20 224.21
224.22
224.23 224.24 224.25 224.26 224.27 224.28 224.29 224.30 224.31 224.32 224.33 224.34 224.35 225.1 225.2 225.3 225.4 225.5 225.6 225.7 225.8 225.9 225.10 225.11 225.12 225.13 225.14 225.15 225.16 225.17 225.18 225.19 225.20 225.21 225.22 225.23 225.24 225.25 225.26 225.27 225.28 225.29 225.30 225.31 225.32 225.33 225.34 225.35 225.36
226.1
226.2 226.3 226.4 226.5 226.6 226.7 226.8 226.9 226.10 226.11 226.12 226.13 226.14 226.15 226.16 226.17 226.18 226.19 226.20 226.21 226.22 226.23 226.24 226.25 226.26 226.27 226.28 226.29 226.30 226.31 226.32
226.33
226.34 227.1 227.2 227.3 227.4 227.5 227.6 227.7 227.8 227.9 227.10 227.11 227.12 227.13 227.14 227.15 227.16 227.17 227.18 227.19 227.20 227.21 227.22 227.23 227.24 227.25
227.26
227.27 227.28 227.29 227.30 227.31 227.32 227.33 227.34 227.35 228.1 228.2 228.3 228.4 228.5 228.6 228.7 228.8 228.9 228.10 228.11 228.12 228.13
228.14
228.15 228.16 228.17 228.18 228.19 228.20 228.21 228.22 228.23
228.24
228.25 228.26
228.27
228.28 228.29
228.30 228.31 229.1 229.2 229.3 229.4 229.5 229.6 229.7 229.8 229.9 229.10 229.11
229.12
229.13 229.14 229.15 229.16 229.17 229.18
229.19
229.20 229.21 229.22 229.23 229.24 229.25 229.26 229.27 229.28 229.29 229.30
229.31
229.32 230.1 230.2 230.3 230.4 230.5 230.6 230.7 230.8 230.9
230.10
230.11 230.12 230.13 230.14 230.15 230.16 230.17 230.18
230.19
230.20 230.21 230.22 230.23 230.24 230.25 230.26 230.27 230.28 230.29
230.30
231.1 231.2
231.3 231.4 231.5 231.6 231.7 231.8 231.9 231.10 231.11 231.12 231.13 231.14 231.15 231.16 231.17 231.18 231.19 231.20 231.21 231.22 231.23 231.24 231.25 231.26 231.27 231.28 231.29 231.30 231.31 231.32 231.33 231.34 231.35 232.1 232.2 232.3 232.4 232.5 232.6 232.7 232.8 232.9 232.10 232.11 232.12 232.13 232.14 232.15 232.16 232.17 232.18 232.19 232.20 232.21 232.22 232.23 232.24 232.25 232.26 232.27 232.28 232.29 232.30 232.31 232.32 232.33 232.34 232.35 232.36 233.1 233.2 233.3 233.4 233.5 233.6 233.7 233.8 233.9 233.10 233.11 233.12 233.13 233.14 233.15 233.16 233.17 233.18 233.19 233.20 233.21 233.22 233.23 233.24 233.25 233.26 233.27 233.28 233.29 233.30 233.31 233.32 233.33 233.34 233.35 233.36 234.1 234.2 234.3 234.4 234.5 234.6 234.7 234.8 234.9 234.10 234.11 234.12 234.13 234.14 234.15 234.16 234.17 234.18 234.19 234.20 234.21 234.22 234.23 234.24 234.25 234.26 234.27 234.28 234.29 234.30 234.31 234.32 234.33 234.34 235.1 235.2 235.3 235.4 235.5 235.6 235.7 235.8 235.9 235.10 235.11 235.12 235.13 235.14 235.15 235.16 235.17 235.18 235.19 235.20 235.21 235.22 235.23 235.24 235.25 235.26 235.27 235.28 235.29 235.30 235.31 235.32 235.33 235.34 235.35 235.36 236.1 236.2 236.3 236.4 236.5 236.6 236.7 236.8 236.9 236.10 236.11 236.12 236.13 236.14 236.15 236.16 236.17 236.18 236.19 236.20 236.21 236.22 236.23 236.24 236.25 236.26 236.27 236.28 236.29 236.30 236.31 236.32 236.33 236.34 236.35 236.36 237.1 237.2 237.3 237.4 237.5 237.6 237.7 237.8 237.9 237.10 237.11 237.12 237.13 237.14 237.15 237.16 237.17 237.18 237.19 237.20 237.21 237.22 237.23 237.24 237.25 237.26 237.27 237.28 237.29 237.30 237.31 237.32 237.33 237.34 237.35 237.36 238.1 238.2 238.3 238.4 238.5 238.6 238.7 238.8 238.9 238.10 238.11 238.12 238.13 238.14 238.15 238.16 238.17 238.18
238.19 238.20 238.21 238.22 238.23 238.24 238.25 238.26 238.27 238.28 238.29 238.30 238.31 238.32 238.33 238.34 238.35 239.1 239.2 239.3 239.4 239.5 239.6 239.7 239.8 239.9
239.10 239.11
239.12 239.13 239.14 239.15 239.16 239.17 239.18 239.19 239.20 239.21 239.22 239.23 239.24 239.25 239.26 239.27 239.28 239.29 239.30 239.31 239.32 239.33 239.34 240.1 240.2 240.3 240.4 240.5 240.6 240.7 240.8 240.9 240.10 240.11 240.12 240.13 240.14 240.15 240.16 240.17 240.18 240.19 240.20 240.21 240.22 240.23 240.24 240.25 240.26 240.27 240.28 240.29 240.30 240.31 240.32 240.33 240.34 240.35
240.36
241.1 241.2 241.3 241.4 241.5 241.6 241.7 241.8 241.9 241.10 241.11 241.12 241.13 241.14 241.15 241.16 241.17 241.18 241.19 241.20 241.21 241.22 241.23 241.24 241.25 241.26 241.27 241.28 241.29 241.30 241.31 241.32 241.33 241.34 241.35 242.1 242.2 242.3 242.4 242.5 242.6 242.7 242.8 242.9 242.10 242.11 242.12 242.13
242.14 242.15
242.16 242.17 242.18
242.19 242.20 242.21
242.22 242.23 242.24
242.25 242.26 242.27
242.28 242.29 242.30 242.31 242.32 243.1 243.2 243.3 243.4 243.5 243.6 243.7 243.8 243.9 243.10 243.11 243.12 243.13 243.14 243.15 243.16 243.17 243.18 243.19 243.20 243.21 243.22 243.23
243.24 243.25 243.26 243.27 243.28 243.29 243.30 243.31
243.32 243.33
243.34 244.1 244.2 244.3 244.4 244.5 244.6 244.7 244.8 244.9 244.10 244.11 244.12 244.13 244.14 244.15 244.16 244.17 244.18 244.19 244.20 244.21 244.22 244.23 244.24 244.25 244.26 244.27 244.28 244.29 244.30 244.31 244.32 244.33 244.34 244.35
244.36
245.1 245.2 245.3 245.4 245.5 245.6 245.7 245.8 245.9 245.10 245.11 245.12 245.13 245.14 245.15 245.16 245.17 245.18 245.19 245.20 245.21 245.22
245.23 245.24 245.25 245.26
245.27 245.28 245.29 245.30 245.31 245.32 245.33 245.34 246.1 246.2 246.3 246.4 246.5 246.6 246.7 246.8 246.9 246.10 246.11 246.12 246.13 246.14 246.15 246.16 246.17 246.18 246.19 246.20 246.21 246.22 246.23 246.24 246.25 246.26 246.27 246.28 246.29 246.30 246.31 246.32 246.33 246.34 246.35 246.36 247.1 247.2 247.3 247.4 247.5 247.6 247.7 247.8 247.9 247.10 247.11 247.12 247.13 247.14 247.15 247.16 247.17 247.18 247.19 247.20 247.21 247.22 247.23 247.24 247.25
247.26 247.27
247.28 247.29 247.30 247.31 247.32 247.33 247.34 247.35 248.1 248.2 248.3 248.4 248.5 248.6 248.7 248.8 248.9 248.10 248.11 248.12 248.13 248.14 248.15 248.16 248.17 248.18 248.19 248.20 248.21 248.22 248.23 248.24 248.25 248.26 248.27 248.28 248.29 248.30 248.31 248.32 248.33 248.34 248.35 248.36 248.37 248.38 249.1 249.2 249.3 249.4
249.5 249.6
249.7 249.8 249.9 249.10 249.11 249.12 249.13 249.14 249.15 249.16
249.17 249.18
249.19 249.20 249.21

A bill for an act
 relating to the financing and operation of state and local government; making
policy, technical, administrative, enforcement, collection, refund, and other
changes to income, franchise, property, sales and use, motor vehicle, estate,
gambling, solid waste management, health care provider, cigarette and tobacco
products, insurance premiums, aggregate removal, mortgage, deed, occupation,
and production taxes, and other taxes and tax-related provisions; requiring
withholding; providing and modifying income tax credits; modifying and
authorizing sales tax exemptions; modifying and authorizing local government
sales taxes; modifying certain levies, property valuation procedures, property
tax classes, and tax bases; changing and providing property tax exemptions;
modifying truth in taxation procedures; eliminating levy limits; eliminating
the targeting refund; modifying the state general levy; providing for aids to
local governments; changing provisions relating to fiscal disparities, education
financing, and distributions of production tax proceeds; conforming provisions
to certain changes in federal laws; changing and imposing powers, duties, and
requirements on certain local governments and authorities and state departments
or agencies; providing for issuance of obligations by political subdivisions, and
use of the proceeds of the debt; limiting availability of JOBZ benefits; providing
rules for operation of certain tax increment financing districts; providing for
financing of certain postretirement benefits; authorizing loans and grants for
certain businesses; requiring studies and reports; regulating tax preparers;
establishing the amount of the budget reserve account; appropriating money;
amending Minnesota Statutes 2008, sections 37.31, subdivision 8; 123B.10,
subdivision 1; 124D.4531, by adding a subdivision; 126C.01, subdivision
3; 126C.41, subdivision 2; 126C.55, subdivision 4; 144F.01, subdivision 3;
204B.46; 270B.14, subdivision 16; 270C.12, by adding a subdivision; 270C.445;
270C.446, subdivisions 2, 5; 270C.56, subdivisions 1, 3; 272.02, subdivisions
7, 10, 86, by adding subdivisions; 272.0213; 273.11, subdivision 23; 273.111,
subdivision 4; 273.1115, subdivision 2; 273.113, subdivisions 1, 2; 273.1231,
subdivision 8; 273.124, subdivisions 3, 3a, 13, 21; 273.13, subdivisions 23, 24,
25, 33; 273.1384, subdivision 4; 273.33, subdivision 2; 273.37, subdivision
2; 274.13, subdivision 2; 274.135, subdivision 3; 274.14; 274.175; 275.025,
subdivisions 1, 4; 275.065, subdivisions 1, 3, 5a, 6; 275.16; 275.62, subdivision
1; 279.01, subdivision 1; 279.10; 282.01, subdivisions 1, 1a, 1c, 1d, 2, 3, 4, 7,
7a, by adding a subdivision; 287.04; 287.05, by adding a subdivision; 287.08;
287.22; 287.2205; 287.25; 289A.02, subdivision 7, as amended; 289A.08,
subdivision 3; 289A.12, by adding a subdivision; 289A.18, subdivision 1;
289A.19, subdivision 4; 289A.31, subdivision 5; 289A.38, subdivision 7;
289A.41; 290.01, subdivisions 19, as amended, 19a, as amended, 19b, 19c, as
amended, 19d, as amended, 31, as amended; 290.014, subdivision 2; 290.06,
subdivisions 2c, 2d, by adding a subdivision; 290.0671, subdivision 1; 290.091,
subdivisions 1, 2; 290.17, subdivision 2; 290.191, subdivision 2; 290A.03,
subdivision 15, as amended; 290A.10; 290A.14; 290A.23, subdivision 3;
290C.06; 290C.07; 291.005, subdivision 1; 295.52, subdivisions 1, 1a; 295.56;
295.57, subdivision 5; 296A.21, subdivision 1; 297A.64, subdivision 2; 297A.66,
by adding a subdivision; 297A.68, subdivision 5; 297A.70, subdivisions 2, 4;
297A.71, by adding a subdivision; 297A.75, subdivisions 1, 2, 3; 297A.992,
subdivision 2; 297A.993, subdivision 1; 297E.02, subdivision 4; 297E.06,
subdivision 4, by adding a subdivision; 297E.11, subdivision 1; 297F.09,
subdivision 7; 297G.09, subdivision 6; 297H.06, subdivision 1; 297I.30, by
adding a subdivision; 297I.35, subdivision 2; 298.17, by adding a subdivision;
298.227; 298.24, subdivision 1; 298.28, subdivisions 4, 11; 298.282, subdivision
1; 309.53, subdivision 3; 349.1641; 349.19, subdivision 9; 360.036, subdivision
2; 360.0425; 366.095, subdivision 1; 373.47, subdivision 1; 375.194, subdivision
5; 383A.75, subdivision 3; 423A.02, subdivisions 1b, 3, by adding a subdivision;
428A.01, subdivision 3; 428A.101; 428A.13, by adding a subdivision; 428A.14,
subdivision 1; 428A.21; 429.011, subdivision 2a; 446A.086, subdivision 8, by
adding a subdivision; 465.719, subdivision 9; 469.005, subdivision 1; 469.015,
subdivisions 1, 2, 3; 469.034, subdivision 2; 469.040, subdivisions 2, 4; 469.053,
by adding a subdivision; 469.153, subdivision 2; 469.174, subdivision 22, by
adding a subdivision; 469.175, subdivisions 1, 6; 469.176, subdivisions 1b, 3,
by adding a subdivision; 469.1763, subdivisions 2, 3; 469.178, subdivision 7;
469.312, by adding a subdivision; 471.191, subdivision 1; 473.121, by adding a
subdivision; 473.13, subdivision 1; 473.167, subdivision 3; 473.249, subdivision
1; 473.253, subdivision 1; 473.843, subdivision 3; 473F.08, subdivisions 3,
5; 474A.02, subdivisions 2, 14; 475.58, subdivision 1; 475.67, subdivision
8; 477A.011, subdivisions 34, 36, 42; 477A.0124, by adding a subdivision;
477A.013, subdivision 8, by adding a subdivision; Laws 1971, chapter 773,
section 4, as amended; Laws 1976, chapter 162, section 3, as amended; Laws
1986, chapter 400, section 44, as amended; Laws 1991, chapter 291, article 8,
section 27, subdivision 3, as amended; Laws 1993, chapter 375, article 9, section
46, subdivision 2, as amended, by adding a subdivision; Laws 1995, chapter 264,
article 5, sections 44, subdivision 4, as amended; 45, subdivision 1, as amended;
Laws 1998, chapter 389, article 8, section 37, subdivision 1; Laws 2001,
First Special Session chapter 5, article 3, section 8, as amended; Laws 2002,
chapter 377, article 3, section 25; Laws 2006, chapter 259, article 3, section 12,
subdivision 3; Laws 2008, chapter 366, article 5, sections 28, subdivision 1; 29,
subdivisions 1, 2, 4; 34; article 6, sections 9; 10; article 7, sections 16, subdivision
3; 18, subdivisions 2, 3; article 10, section 15; Laws 2009, chapter 12, article 2,
section 5, subdivisions 1, 2; proposing coding for new law in Minnesota Statutes,
chapters 16A; 116J; 290; 297I; 414; 475; 477A; repealing Minnesota Statutes
2008, sections 275.025, subdivision 3; 275.065, subdivisions 6b, 6c, 8, 9, 10;
275.70; 275.71; 275.72; 275.73; 275.74; 275.75; 282.01, subdivisions 1b, 9, 10,
11; 287.26; 287.27, subdivision 1; 290.06, subdivision 34; 290A.04, subdivision
2h; 297A.67, subdivision 24; 297A.815, subdivision 3; 298.28, subdivisions
11a, 13; 477A.16; Laws 1996, chapter 464, article 1, section 8, subdivision 3;
Laws 2008, chapter 366, article 5, section 30, subdivision 7; Minnesota Rules,
parts 8009.3000; 8115.0200; 8115.0300; 8115.0400; 8115.0500; 8115.0600;
8115.1000; 8115.1100; 8115.1200; 8115.1300; 8115.1400; 8115.1500;
8115.1600; 8115.1700; 8115.1800; 8115.1900; 8115.2000; 8115.2100;
8115.2200; 8115.2300; 8115.2400; 8115.2500; 8115.2600; 8115.2700;
8115.2800; 8115.2900; 8115.3000; 8115.4000; 8115.4100; 8115.4200;
8115.4300; 8115.4400; 8115.4500; 8115.4600; 8115.4700; 8115.4800;
8115.4900; 8115.5000; 8115.5100; 8115.5200; 8115.5300; 8115.5400;
8115.5500; 8115.5600; 8115.5700; 8115.5800; 8115.5900; 8115.6000;
8115.6100; 8115.6200; 8115.6300; 8115.6400; 8115.9900.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

INDIVIDUAL INCOME, CORPORATE FRANCHISE, AND
INSURANCE PREMIUM TAXES

Section 1.

new text begin [116J.665] MINNESOTA BUSINESS INVESTMENT COMPANY
CREDIT.
 new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms
have the meanings given.
 new text end

new text begin (b) "Affiliate" means:
 new text end

new text begin (1) any person who, directly or indirectly, beneficially owns, controls, or holds power
to vote 15 percent or more of the outstanding voting securities or other voting ownership
interest of a Minnesota business investment company or insurance company; and
 new text end

new text begin (2) any person, 15 percent or more of whose outstanding voting securities or other
voting ownership interests are directly or indirectly beneficially owned, controlled, or held
with power to vote by a Minnesota business investment company or insurance company.
 new text end

new text begin Notwithstanding this subdivision, an investment by a participating investor in a
Minnesota business investment company pursuant to an allocation of premium tax credits
under this section does not cause that Minnesota business investment company to become
an affiliate of that participating investor.
 new text end

new text begin (c) "Allocation date" means the date on which credits under section 297I.23 are
allocated to the participating investors of a Minnesota business investment company
under this section.
 new text end

new text begin (d) "Commissioner" means the commissioner of employment and economic
development.
 new text end

new text begin (e) "Department" means the Department of Employment and Economic
Development.
 new text end

new text begin (f) "Designated capital" means an amount of money that:
 new text end

new text begin (1) is invested by a participating investor in a Minnesota business investment
company; and
 new text end

new text begin (2) fully funds the purchase price of either or both participating investor's equity
interest in a Minnesota business investment company or a qualified debt instrument issued
by a Minnesota business investment company.
 new text end

new text begin (g) "Minnesota business investment company" means a partnership, corporation,
trust, or limited liability company, organized on a for-profit basis, that:
 new text end

new text begin (1) has its principal office located or is headquartered in Minnesota;
 new text end

new text begin (2) has as its primary business activity the investment of cash in qualified businesses;
and
 new text end

new text begin (3) is certified by the Department of Employment and Economic Development as
meeting the criteria in this section.
 new text end

new text begin (h) "Participating investor" means any insurer as defined in section 60A.02,
subdivision 4, that contributes designated capital pursuant to this section.
 new text end

new text begin (i) "Person" means any natural person or entity, including, but not limited to, a
corporation, general or limited partnership, trust, or limited liability company.
 new text end

new text begin (j) "Qualified business" means a business that is independently owned and operated
and meets all of the following requirements:
 new text end

new text begin (1) it is headquartered in Minnesota, its principal business operations are located in
this state, and at least 80 percent of its employees are located in Minnesota;
 new text end

new text begin (2) it has not more than 100 employees at the time of the first qualified investment
in the business;
 new text end

new text begin (3) it is not predominantly engaged in:
 new text end

new text begin (i) professional services provided by accountants, doctors, or lawyers;
 new text end

new text begin (ii) banking or lending;
 new text end

new text begin (iii) real estate development;
 new text end

new text begin (iv) insurance;
 new text end

new text begin (v) oil and gas exploration;
 new text end

new text begin (vi) gambling activities;
new text end

new text begin (vii) retail sales; or
 new text end

new text begin (viii) making loans to or investments in a Minnesota business investment company
or an affiliate; and
 new text end

new text begin (4) it is not a franchise of and has no financial relationship with a Minnesota business
investment company or any affiliate of a Minnesota business investment company prior to
a Minnesota business investment company's first qualified investment in the business.
 new text end

new text begin (k) "Qualified debt instrument" means a debt instrument issued by a Minnesota
business investment company that meets all of the following criteria:
 new text end

new text begin (1) it is issued at par value or a premium;
 new text end

new text begin (2) it has an original maturity date of at least four years from the date of issuance,
and a repayment schedule that is not faster than a level principal amortization over four
years; and
 new text end

new text begin (3) it satisfies the rating criteria to qualify as "NAIC1," as determined by the
Securities Valuation Office of the National Association of Insurance Commissioners.
 new text end

new text begin (l) "Qualified distribution" means any distribution or payment not made to a
participating investor or affiliate of a participating investor by a Minnesota business
investment company in connection with the following:
 new text end

new text begin (1) costs and expenses of forming, syndicating, and organizing the Minnesota
business investment company, including fees paid for professional services, and the costs
of financing and insuring the obligations of a Minnesota business investment company;
 new text end

new text begin (2) an annual management fee not to exceed one percent of designated capital on
an annual basis to offset the costs and expenses of managing and operating a Minnesota
business investment company;
 new text end

new text begin (3) reasonable and necessary fees in accordance with industry custom for ongoing
professional services, including, but not limited to, legal and accounting services related
to the operation of a Minnesota business investment company, not including lobbying
or governmental relations; and
 new text end

new text begin (4) payments of principal and interest to holders of qualified debt instruments issued
by a Minnesota business investment company may be made without restriction.
 new text end

new text begin (m) "Qualified investment" means the investment of money by a Minnesota
business investment company in a qualified business for the purchase of any debt,
debt participation, equity, or hybrid security of any nature and description, including a
debt instrument or security that has the characteristics of debt but which provides for
conversion into equity or equity participation instruments such as options or warrants.
Any repayment of a qualified investment prior to one year from the date of issuance shall
result in the amount of the qualified investment being reduced by 50 percent for purposes
of the cumulative investment requirement set forth in subdivision 8, paragraph (c).
 new text end

new text begin (n) "State premium tax liability" means any liability incurred by an insurance
company under the provisions of chapter 297I or in the case of a repeal or a reduction by
the state of the liability imposed by chapter 297I, any other tax liability imposed upon an
insurance company by the state.
 new text end

new text begin Subd. 2. new text end

new text begin Certification. new text end

new text begin (a) The commissioner must provide a standardized format
for applying for the business investment credit under section 297I.23.
 new text end

new text begin (b) An applicant must:
 new text end

new text begin (1) file an application with the commissioner;
 new text end

new text begin (2) pay a nonrefundable application fee of $7,500 at the time of filing the application;
 new text end

new text begin (3) submit as part of its application an audited balance sheet that contains an
unqualified opinion of an independent certified public accountant issued not more than 35
days before the application date that states that the applicant has an equity capitalization
of $500,000 or more in the form of unencumbered cash, marketable securities, or other
liquid assets; and
 new text end

new text begin (4) have at least two principals or persons, at least one of which is primarily located
in Minnesota, employed or engaged to manage the funds who each have a minimum of
five years of money management experience in the venture capital or business industry.
 new text end

new text begin (c) The commissioner may certify partnerships, corporations, trusts, or limited
liability companies, organized on a for-profit basis, which submit an application to be
designated as a Minnesota business investment company if the applicant is located,
headquartered, and licensed or registered to conduct business in Minnesota, has as its
primary business activity the investment of cash in qualified businesses, and meets the
other criteria set forth in this section.
new text end

new text begin (d) The commissioner must review the organizational documents of each applicant
for certification and the business history of each applicant, determine whether the applicant
has satisfied the requirements of this section, and determine whether the officers and the
board of directors, general partners, trustees, managers, or members are trustworthy and
are thoroughly acquainted with the requirements of this section.
 new text end

new text begin (e) Within 45 days after the receipt of an application, the commissioner must issue
the certification or refuse the certification and communicate in detail to the applicant the
grounds for refusal, including suggestions for the removal of the grounds.
 new text end

new text begin (f) The commissioner must begin accepting applications to become a Minnesota
business investment company as defined under section 297I.23 by August 1, 2009.
 new text end

new text begin Subd. 3. new text end

new text begin Requirements. new text end

new text begin (a) An insurance company or affiliate of an insurance
company must not, directly or indirectly:
 new text end

new text begin (1) beneficially own, whether through rights, options, convertible interest, or
otherwise, 15 percent or more of the voting securities or other voting ownership interest of
a Minnesota business investment company;
 new text end

new text begin (2) manage a Minnesota business investment company; or
 new text end

new text begin (3) control the direction of investments for a Minnesota business investment
company.
 new text end

new text begin (b) A Minnesota business investment company may obtain one or more guaranties,
indemnities, bonds, insurance policies, or other payment undertakings for the benefit
of its participating investors from any entity, except that in no case can more than one
participating investor of a Minnesota business investment company on an aggregate basis
with all affiliates of the participating investor be entitled to provide guaranties, indemnities,
bonds, insurance policies, or other payment undertakings in favor of the participating
investors of a Minnesota business investment company and its affiliates in this state.
 new text end

new text begin (c) This subdivision does not preclude a participating investor, insurance company,
or other party from exercising its legal rights and remedies, including, without limitation,
interim management of a Minnesota business investment company, in the event that a
Minnesota business investment company is in default of its statutory obligations or its
contractual obligations to a participating investor, insurance company, or other party, or
from monitoring a Minnesota business investment company to ensure its compliance
with this section or disallowing any investments that have not been approved by the
commissioner.
 new text end

new text begin (d) The commissioner may contract with an independent third party to review,
investigate, and certify that the applications comply with the provisions of this section.
 new text end

new text begin Subd. 4. new text end

new text begin Aggregate limitations on investment tax credits; allocation. new text end

new text begin (a)
The aggregate amount of investment tax credits to be allocated to all participating
investors of Minnesota business investment companies under this section shall not exceed
$150,000,000. No Minnesota business investment company, on an aggregate basis with its
affiliates, may file credit allocation claims that exceed $150,000,000.
 new text end

new text begin (b) Credits must be allocated to participating investors in the order that the credit
allocation claims are filed with the commissioner, provided that all credit allocation
claims filed with the commissioner on the same day must be treated as having been filed
contemporaneously. Any credit allocation claims filed with the commissioner prior to the
initial credit allocation claim filing date will be deemed to have been filed on the initial
credit allocation claim filing date. The commissioner will set the initial credit allocation
claim filing date to be not less than 120 days and not greater than 150 days after the
commissioner begins accepting applications for certification.
 new text end

new text begin (c) If two or more Minnesota business investment companies file credit allocation
claims with the commissioner on behalf of their respective participating investors on the
same day, and the aggregate amount of credit allocation claims exceeds the aggregate
limit of investment tax credits under this section or the lesser amount of credits that
remain unallocated on that day, then the credits shall be allocated among the participating
investors who filed on that day on a pro rata basis with respect to the amounts claimed.
The pro rata allocation for any one participating investor is the product obtained by
multiplying a fraction, the numerator of which is the amount of the credit allocation claim
filed on behalf of a participating investor and the denominator of which is the total of all
credit allocation claims filed on behalf of all participating investors on that day, by the
aggregate limit of credits under this section or the lesser amount of credits that remain
unallocated on that day.
 new text end

new text begin (d) Within ten business days after the commissioner receives a credit allocation
claim filed by a Minnesota business investment company on behalf of one or more of its
participating investors, the commissioner must notify the Minnesota business investment
company of the amount of credits allocated to each of the participating investors of that
Minnesota business investment company. In the event a Minnesota business investment
company does not receive an investment of designated capital from each participating
investor required to earn the amount of credits allocated to the participating investor
within ten business days of the Minnesota business investment company's receipt of notice
of allocation, then it shall notify the commissioner on or before the next business day, and
the credits allocated to the participating investor of the Minnesota business investment
company will be forfeited. The commissioner must then reallocate those forfeited credits
among the participating investors of the other Minnesota business investment companies
on a pro rata basis with respect to the credit allocation claims filed on behalf of the
participating investors. The commissioner may levy a fine of not more than $50,000
on any participating investor that does not invest the full amount of designated capital
required to fund the credits allocated to it by the commissioner in accordance with the
credit allocation claim filed on its behalf.
 new text end

new text begin (e) No participating investor, on an aggregate basis with its affiliates, may file an
allocation claim for more than 25 percent of the maximum amount of investment tax
credits authorized hereunder, regardless of whether the claim is made in connection with
one or more Minnesota business investment companies.
 new text end

new text begin Subd. 5. new text end

new text begin Requirements for continuance of certification. new text end

new text begin (a) To maintain its
certification, a Minnesota business investment company must make qualified investments
as follows:
 new text end

new text begin (1) within two years after the allocation date, a Minnesota business investment
company must invest an amount equal to at least 35 percent of its designated capital in
qualified investments; and
 new text end

new text begin (2) within three years after the allocation date, a Minnesota business investment
company must invest an amount equal to at least 50 percent of its designated capital
in qualified investments.
 new text end

new text begin (b) Prior to making a proposed qualified investment in a specific business, a
Minnesota business investment company must request from the commissioner a written
determination that the proposed investment will qualify as a qualified investment in a
qualified business. The commissioner must notify a Minnesota business investment
company within ten business days from the receipt of a request of its determination and an
explanation thereof. If the commissioner fails to notify the Minnesota business investment
company of its determination within the ten-day period, the proposed investment must be
deemed to be a qualified investment in a qualified business.
 new text end

new text begin (c) All designated capital not invested in qualified investments by a Minnesota
business investment company shall be held or invested in the manner the Minnesota
business investment company deems appropriate. Designated capital and proceeds of
designated capital returned to a Minnesota business investment company after being
originally invested in qualified investments may be invested again in qualified investments
and the investment shall count toward the requirements of paragraph (a) of this subdivision
with respect to making investments of designated capital in qualified investments.
 new text end

new text begin (d) If, within four years after its allocation date, a Minnesota business investment
company has not invested at least 80 percent of its designated capital in qualified
investments, neither the Minnesota business investment company nor its affiliates shall
be permitted to receive management fees.
 new text end

new text begin (e) If, within six years after its allocation date, a Minnesota business investment
company has not invested at least 100 percent of its designated capital in qualified
investments, neither the Minnesota business investment company nor its affiliates shall
be permitted to receive management fees.
 new text end

new text begin (f) A Minnesota business investment company may not invest more than 15 percent
of its designated capital in any one qualified business without the specific approval of
the commissioner.
 new text end

new text begin (g) For purposes of calculating the investment percentage thresholds of paragraph
(a), the cumulative amount of all qualified investments made by a Minnesota business
investment company from the allocation date must be considered.
 new text end

new text begin Subd. 6. new text end

new text begin Minnesota business investment company reporting requirements.
 new text end

new text begin (a) Each Minnesota business investment company must report the following to the
commissioner:
 new text end

new text begin (1) as soon as practicable after the receipt of designated capital:
 new text end

new text begin (i) the name of each participating investor from which the designated capital was
received, including the participating investor's insurance tax identification number;
 new text end

new text begin (ii) the amount of each participating investor's investment of designated capital; and
 new text end

new text begin (iii) the date on which the designated capital was received;
 new text end

new text begin (2) on an annual basis, on or before January 31 of each year:
 new text end

new text begin (i) the amount of the Minnesota business investment company's remaining
uninvested designated capital at the end of the immediately preceding taxable year;
 new text end

new text begin (ii) whether or not the Minnesota business investment company has invested more
than 15 percent of its total designated capital in any one business;
 new text end

new text begin (iii) all qualified investments that the Minnesota business investment company has
made in the previous taxable year, including the number of employees of each qualified
business in which it has made investments at the time of the investment, and as of
December 1 of the preceding taxable year; and
 new text end

new text begin (iv) for any qualified business where the Minnesota business investment company
no longer has an investment, the Minnesota business investment company must provide
employment figures for that company as of the last day before the investment was
terminated;
 new text end

new text begin (3) other information that the commissioner may reasonably request that will help
the commissioner ascertain the impact of the Minnesota business investment company
program both directly and indirectly on the economy of the state of Minnesota including,
but not limited to, the number of jobs created by qualified businesses that have received
qualified investments;
 new text end

new text begin (4) within 90 days of the close of its fiscal year, annual audited financial statements
of the Minnesota business investment company, which must include the opinion of an
independent certified public accountant; and
 new text end

new text begin (5) an "agreed upon procedures report" or equivalent regarding the operations of the
Minnesota business investment company.
 new text end

new text begin (b) A Minnesota business investment company must pay to the commissioner an
annual, nonrefundable certification fee of $5,000 on or before April 1, or $10,000 if later.
No annual certification fee is required if the payment date for the fee is within six months
of the date a Minnesota business investment company is first certified by the commissioner.
 new text end

new text begin (c) Upon satisfying the requirements of subdivision 5, paragraph (a), clause (2), a
Minnesota business investment company shall provide the notice to the commissioner
and the commissioner shall, within 60 days of receipt of the notice, either confirm that the
Minnesota business investment company has satisfied the requirements of subdivision
5, paragraph (a), clause (2), as of that date or provide notice of noncompliance and an
explanation of any existing deficiencies. If the commissioner does not provide the notice
within 60 days, the Minnesota business investment company shall be deemed to have met
the requirements of subdivision 5, paragraph (a), clause (2).
 new text end

new text begin Subd. 7. new text end

new text begin Distributions. new text end

new text begin A Minnesota business investment company may make
qualified distributions at any time. In order for a Minnesota business investment
company to make a distribution other than a qualified distribution to its equity holders,
the cumulative amount of all qualified investments of the Minnesota business investment
company must equal or exceed 100 percent of its designated capital.
 new text end

new text begin Subd. 8. new text end

new text begin Decertification. new text end

new text begin (a) The commissioner shall conduct an annual review
of each Minnesota business investment company to determine if a Minnesota business
investment company is abiding by the requirements of certification and to ensure that no
investment has been made in violation of this section. The cost of the annual review
must be paid by each Minnesota business investment company according to a reasonable
fee schedule adopted by the commissioner.
 new text end

new text begin (b) Any material violation of this section, including any material misrepresentation
made to the commissioner in connection with the application process, may be grounds
for decertification of a Minnesota business investment company and the disallowance of
credits under section 297I.23, provided that in all instances the commissioner shall provide
notice to the Minnesota business investment company of the grounds of the proposed
decertification and the opportunity to remedy the violation before the decertification
becomes effective.
 new text end

new text begin (c) After a Minnesota business investment company has invested an amount
cumulatively equal to 100 percent of its designated capital in qualified investments,
provided that the Minnesota business investment company has met all other requirements
under this section as of that date, the Minnesota business investment company shall
no longer be subject to regulation by the commissioner or the reporting requirements
under subdivision 6. Upon receiving certification by a Minnesota business investment
company that it has invested an amount equal to 100 percent of its designated capital, the
commissioner must notify a Minnesota business investment company within 60 days that
it has or has not met the requirements, with a reason for the determination if it has not.
If the commissioner does not provide notification of deregulation within 60 days, the
Minnesota business investment company shall be deemed to have met the requirements
and shall be deemed to no longer be subject to regulation by the commissioner.
 new text end

new text begin (d) The commissioner must send written notice of any decertification proceedings to
the commissioner of revenue and to the address of each participating investor whose tax
credit may be subject to recapture or forfeiture, using the address shown on the last filing
submitted to the commissioner.
 new text end

new text begin Subd. 9. new text end

new text begin Registration requirements. new text end

new text begin All investments by participating investors
for which tax credits are awarded under this section must be registered or specifically
exempt from registration.
 new text end

new text begin Subd. 10. new text end

new text begin Reports to governor and legislature. new text end

new text begin The commissioner must make
an annual report to the governor and the chairs and ranking minority members of the
legislative committees having jurisdiction over taxes and economic development. The
report must include:
 new text end

new text begin (1) the number of Minnesota business investment companies holding designated
capital;
 new text end

new text begin (2) the amount of designated capital invested in each Minnesota business investment
company;
 new text end

new text begin (3) the cumulative amount that each Minnesota business investment company has
invested as of January 1, 2010, and the cumulative total each year thereafter;
 new text end

new text begin (4) the cumulative amount of follow-on capital that the investments of each
Minnesota business investment company have created in terms of capital invested in
qualified businesses at the same time or subsequent to investments made by a Minnesota
business investment company in the businesses by sources other than Minnesota business
investment companies;
 new text end

new text begin (5) the total amount of investment tax credits applied under this section for each year;
 new text end

new text begin (6) the performance of each Minnesota business investment company with regard to
the requirements for continued certification;
 new text end

new text begin (7) the classification of the companies in which each Minnesota business investment
company has invested according to industrial sector and size of company;
 new text end

new text begin (8) the gross number of jobs created by investments made by each Minnesota
business investment company and the number of jobs retained;
 new text end

new text begin (9) the location of the companies in which each Minnesota business investment
company has invested;
 new text end

new text begin (10) those Minnesota business investment companies that have been decertified,
including the reasons for decertification; and
 new text end

new text begin (11) other related information necessary to evaluate the effect of this section on
economic development.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 2.

Minnesota Statutes 2008, section 290.01, subdivision 19a, as amended by Laws
2009, chapter 12, article 1, section 3, is amended to read:


Subd. 19a.

Additions to federal taxable income.

For individuals, estates, and
trusts, there shall be added to federal taxable income:

(1)(i) interest income on obligations of any state other than Minnesota or a political
or governmental subdivision, municipality, or governmental agency or instrumentality
of any state other than Minnesota exempt from federal income taxes under the Internal
Revenue Code or any other federal statute; and

(ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue
Code, except the portion of the exempt-interest dividends derived from interest income
on obligations of the state of Minnesota or its political or governmental subdivisions,
municipalities, governmental agencies or instrumentalities, but only if the portion of the
exempt-interest dividends from such Minnesota sources paid to all shareholders represents
95 percent or more of the exempt-interest dividends that are paid by the regulated
investment company as defined in section 851(a) of the Internal Revenue Code, or the
fund of the regulated investment company as defined in section 851(g) of the Internal
Revenue Code, making the payment; and

(iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal
government described in section 7871(c) of the Internal Revenue Code shall be treated as
interest income on obligations of the state in which the tribe is located;

(2) the amount of income or sales and use taxes paid or accrued within the taxable
year under this chapter and the amount of taxes based on net income paid or sales and
use taxes paid to any other state or to any province or territory of Canada, to the extent
allowed as a deduction under section 63(d) of the Internal Revenue Code, but the addition
may not be more than the amount by which the itemized deductions as allowed under
section 63(d) of the Internal Revenue Code exceeds the amount of the standard deduction
as defined in section 63(c) of the Internal Revenue Code, disregarding the amount allowed
under section 63(c)(1)(C) of the Internal Revenue Code. For the purpose of this paragraph,
the disallowance of itemized deductions under section 68 of the Internal Revenue Code of
1986, income or sales and use tax is the last itemized deduction disallowed;

(3) the capital gain amount of a lump-sum distribution to which the special tax under
section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;

(4) the amount of income taxes paid or accrued within the taxable year under this
chapter and taxes based on net income paid to any other state or any province or territory
of Canada, to the extent allowed as a deduction in determining federal adjusted gross
income. For the purpose of this paragraph, income taxes do not include the taxes imposed
by sections 290.0922, subdivision 1, paragraph (b), 290.9727, 290.9728, and 290.9729;

(5) the amount of expense, interest, or taxes disallowed pursuant to section 290.10
other than expenses or interest used in computing net interest income for the subtraction
allowed under subdivision 19b, clause (1);

(6) the amount of a partner's pro rata share of net income which does not flow
through to the partner because the partnership elected to pay the tax on the income under
section 6242(a)(2) of the Internal Revenue Code;

(7) 80 percent of the depreciation deduction allowed under section 168(k) of the
Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that
in the taxable year generates a deduction for depreciation under section 168(k) and the
activity generates a loss for the taxable year that the taxpayer is not allowed to claim for
the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is
limited to excess of the depreciation claimed by the activity under section 168(k) over the
amount of the loss from the activity that is not allowed in the taxable year. In succeeding
taxable years when the losses not allowed in the taxable year are allowed, the depreciation
under section 168(k) is allowed;

(8) 80 percent of the amount by which the deduction allowed by section 179 of the
Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal
Revenue Code of 1986, as amended through December 31, 2003;

(9) to the extent deducted in computing federal taxable income, the amount of the
deduction allowable under section 199 of the Internal Revenue Code;

(10) the exclusion allowed under section 139A of the Internal Revenue Code for
federal subsidies for prescription drug plans;

(11) the amount of expenses disallowed under section 290.10, subdivision 2;

(12) the amount deducted for qualified tuition and related expenses under section
222 of the Internal Revenue Code, to the extent deducted from gross income;

(13) the amount deducted for certain expenses of elementary and secondary school
teachers under section 62(a)(2)(D) of the Internal Revenue Code, to the extent deducted
from gross income; deleted text begin and
deleted text end

(14) the additional standard deduction for property taxes payable that is allowable
under section 63(c)(1)(C) of the Internal Revenue Codenew text begin ; and
new text end

new text begin (15) to the extent deducted in computing federal taxable income, the amount of
the deduction allowed under section 163(h)(3)(A)(i) of the Internal Revenue Code for a
qualified residence defined in section 163(h)(4)(A)(i)(II) of the Internal Revenue Codenew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008.
 new text end

Sec. 3.

Minnesota Statutes 2008, section 290.01, subdivision 19b, is amended to read:


Subd. 19b.

Subtractions from federal taxable income.

For individuals, estates,
and trusts, there shall be subtracted from federal taxable income:

(1) net interest income on obligations of any authority, commission, or
instrumentality of the United States to the extent includable in taxable income for federal
income tax purposes but exempt from state income tax under the laws of the United States;

(2) if included in federal taxable income, the amount of any overpayment of income
tax to Minnesota or to any other state, for any previous taxable year, whether the amount
is received as a refund or as a credit to another taxable year's income tax liability;

(3) the amount paid to others, less the amount used to claim the credit allowed under
section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten
to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
transportation of each qualifying child in attending an elementary or secondary school
situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
resident of this state may legally fulfill the state's compulsory attendance laws, which
is not operated for profit, and which adheres to the provisions of the Civil Rights Act
of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause,
"textbooks" includes books and other instructional materials and equipment purchased
or leased for use in elementary and secondary schools in teaching only those subjects
legally and commonly taught in public elementary and secondary schools in this state.
Equipment expenses qualifying for deduction includes expenses as defined and limited in
section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional
books and materials used in the teaching of religious tenets, doctrines, or worship, the
purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
or materials for, or transportation to, extracurricular activities including sporting events,
musical or dramatic events, speech activities, driver's education, or similar programs. For
purposes of the subtraction provided by this clause, "qualifying child" has the meaning
given in section 32(c)(3) of the Internal Revenue Code;

(4) income as provided under section 290.0802;

(5) to the extent included in federal adjusted gross income, income realized on
disposition of property exempt from tax under section 290.491;

(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
of the Internal Revenue Code in determining federal taxable income by an individual
who does not itemize deductions for federal income tax purposes for the taxable year, an
amount equal to 50 percent of the excess of charitable contributions over $500 allowable
as a deduction for the taxable year under section 170(a) of the Internal Revenue Code and
under the provisions of Public Law 109-1;

(7) for taxable years beginning before January 1, 2008, the amount of the federal
small ethanol producer credit allowed under section 40(a)(3) of the Internal Revenue Code
which is included in gross income under section 87 of the Internal Revenue Code;

(8) for individuals who are allowed a federal foreign tax credit for taxes that do not
qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover
of subnational foreign taxes for the taxable year, but not to exceed the total subnational
foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
"federal foreign tax credit" means the credit allowed under section 27 of the Internal
Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
the extent they exceed the federal foreign tax credit;

(9) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case
of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth
of the delayed depreciation. For purposes of this clause, "delayed depreciation" means
the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or
subdivision 19c, clause (15), in the case of a shareholder of an S corporation, minus the
positive value of any net operating loss under section 172 of the Internal Revenue Code
generated for the tax year of the addition. The resulting delayed depreciation cannot be
less than zero;

(10) job opportunity building zone income as provided under section 469.316;

(11) to the extent included in federal taxable income, the amount of compensation
paid to members of the Minnesota National Guard or other reserve components of the
United States military for active service performed in Minnesota, excluding compensation
for services performed under the Active Guard Reserve (AGR) program. For purposes of
this clause, "active service" means (i) state active service as defined in section 190.05,
subdivision 5a, clause (1); (ii) federally funded state active service as defined in section
190.05, subdivision 5b; or (iii) federal active service as defined in section 190.05,
subdivision 5c, but "active service" excludes service performed in accordance with section
190.08, subdivision 3;

(12) to the extent included in federal taxable income, the amount of compensation
paid to Minnesota residents who are members of the armed forces of the United States or
United Nations for active duty performed outside Minnesota under United States Code,
title 10, section 101(d); United States Code, title 32, section 101(12); or the authority of
the United Nations;

(13) an amount, not to exceed $10,000, equal to qualified expenses related to a
qualified donor's donation, while living, of one or more of the qualified donor's organs
to another person for human organ transplantation. For purposes of this clause, "organ"
means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
"human organ transplantation" means the medical procedure by which transfer of a human
organ is made from the body of one person to the body of another person; "qualified
expenses" means unreimbursed expenses for both the individual and the qualified donor
for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
may be subtracted under this clause only once; and "qualified donor" means the individual
or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
individual may claim the subtraction in this clause for each instance of organ donation for
transplantation during the taxable year in which the qualified expenses occur;

(14) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of a
shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in the
case of a shareholder of a corporation that is an S corporation, minus the positive value of
any net operating loss under section 172 of the Internal Revenue Code generated for the
tax year of the addition. If the net operating loss exceeds the addition for the tax year, a
subtraction is not allowed under this clause;

(15) to the extent included in federal taxable income, compensation paid to a service
member as defined in United States Code, title 10, section 101(a)(5), for military service
as defined in the Servicemembers Civil Relief Act, Public Law 108-189, section 101(2);

(16) international economic development zone income as provided under section
469.325; deleted text begin and
deleted text end

(17) to the extent included in federal taxable income, the amount of national service
educational awards received from the National Service Trust under United States Code,
title 42, sections 12601 to 12604, for service in an approved Americorps National Service
programnew text begin ; and
new text end

new text begin (18) to the extent included in federal taxable income for a shareholder of an S
corporation, or a partner of a partnership, an amount equal to ten percent of the taxpayer's
total Minnesota net partnership and S corporation income, less the taxpayer's total net
Minnesota passive partnership and S corporation income pursuant to section 469 of the
Internal Revenue Code, but not less than zeronew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008, and ending before January 1, 2013.
 new text end

Sec. 4.

Minnesota Statutes 2008, section 290.014, subdivision 2, is amended to read:


Subd. 2.

Nonresident individuals.

Except as provided in section 290.015, a
nonresident individual is subject to the return filing requirements and to tax as provided in
this chapter to the extent that the income of the nonresident individual is:

(1) allocable to this state under section 290.17, 290.191, or 290.20;

(2) taxed to the individual under the Internal Revenue Code (or not taxed under the
Internal Revenue Code by reason of its character but of a character which is taxable under
this chapter) in the individual's capacity as a beneficiary of an estate with income allocable
to this state under section 290.17, 290.191, or 290.20 and the income, taking into account
the income character provisions of section 662(b) of the Internal Revenue Code, would be
allocable to this state under section 290.17, 290.191, or 290.20 if realized by the individual
directly from the source from which realized by the estate;

(3) taxed to the individual under the Internal Revenue Code (or not taxed under the
Internal Revenue Code by reason of its character but of a character that is taxable under
this chapter) in the individual's capacity as a beneficiary or grantor or other person treated
as a substantial owner of a trust with income allocable to this state under section 290.17,
290.191, or 290.20 and the income, taking into account the income character provisions of
section 652(b), 662(b), or 664(b) of the Internal Revenue Code, would be allocable to this
state under section 290.17, 290.191, or 290.20 if realized by the individual directly from
the source from which realized by the trust;

(4) taxed to the individual under the Internal Revenue Code (or not taxed under the
Internal Revenue Code by reason of its character but of a character which is taxable under
this chapter) in the individual's capacity as a limited or general partner in a partnership
with income allocable to this state under section 290.17, 290.191, or 290.20 and the
income, taking into account the income character provisions of section 702(b) of the
Internal Revenue Code, would be allocable to this state under section 290.17, 290.191,
or 290.20 if realized by the individual directly from the source from which realized by
the partnership; deleted text begin ordeleted text end

(5) taxed to the individual under the Internal Revenue Code (or not taxed under the
Internal Revenue Code by reason of its character but of a character which is taxable under
this chapter) in the individual's capacity as a shareholder of a corporation treated as an
"S" corporation under section 290.9725, and income allocable to this state under section
290.17, 290.191, or 290.20 and the income, taking into account the income character
provisions of section 1366(b) of the Internal Revenue Code, would be allocable to this
state under section 290.17, 290.191, or 290.20 if realized by the individual directly from
the source from which realized by the corporationnew text begin ; or
new text end

new text begin (6) taxed to the individual under the Internal Revenue Code (or not taxed under the
Internal Revenue Code by reason of its character but of a character which is taxable under
this chapter) in the individual's capacity as the sole member of a limited liability company
that is disregarded for federal income tax purposes, with income allocable to this state
under section 290.17, 290.191, or 290.20, as though realized by the individual directly
from the source from which it was realized by the limited liability companynew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 5.

Minnesota Statutes 2008, section 290.06, subdivision 2c, is amended to read:


Subd. 2c.

Schedules of rates for individuals, estates, and trusts.

(a) The income
taxes imposed by this chapter upon married individuals filing joint returns and surviving
spouses as defined in section 2(a) of the Internal Revenue Code must be computed by
applying to their taxable net income the following schedule of rates:

(1) On the first deleted text begin $25,680deleted text end new text begin $33,220, for taxable years beginning after December 31,
2008, and before January 1 of the first expiration year, 6.00 percent, and for taxable
years beginning after December 31 of the calendar year prior to the first expiration yearnew text end ,
5.35 percent;

(2) On all over deleted text begin $25,680deleted text end new text begin $33,220new text end , but not over deleted text begin $102,030deleted text end new text begin $131,970, for taxable years
beginning after December 31, 2008, and before January 1 of the second expiration year,
7.70 percent, and for taxable years beginning after December 31 of the calendar year prior
to the second expiration yearnew text end , 7.05 percent;

(3) On all over deleted text begin $102,030deleted text end new text begin $131,970, but not over $250,000, for taxable years
beginning after December 31, 2008, and before January 1 of the third expiration year, 8.50
percent. For taxable years beginning after December 31 of the calendar year prior to the
third expiration year, on all over $131,970new text end , 7.85 percentnew text begin ;
new text end

new text begin (4) On all over $250,000, 9.25 percent for taxable years beginning after December
31, 2008, and before January 1 of the fourth expiration yearnew text end .

new text begin In this subdivision and section 290.091, subdivision 1, the "first expiration year"
means the taxable year beginning after a February forecast in which the commissioner
of management and budget projects a positive general fund balance as of June 30, 2013,
that equals or exceeds the projected amount of tax revenue produced by the increased tax
rate under clause (1) of this paragraph and clause (1) of paragraphs (b) and (c) of this
subdivision for that taxable year.
 new text end

new text begin In this subdivision, the "second expiration year" means the taxable year beginning
after a February forecast in which the commissioner of management and budget projects a
positive general fund balance as of June 30, 2013, that equals or exceeds the projected
amount of tax revenue produced by the increased tax rates under clause (2) of this
paragraph and clause (2) of paragraphs (b) and (c) of this subdivision for that taxable year.
 new text end

new text begin In this subdivision, the "third expiration year" means the taxable year beginning
after a February forecast in which the commissioner of management and budget projects a
positive general fund balance as of June 30, 2013, that equals or exceeds the projected
amount of tax revenue produced by the increased tax rates under clause (3) of this
paragraph and clause (3) of paragraphs (b) and (c) of this subdivision for that taxable year.
 new text end

new text begin In this subdivision, the "fourth expiration year" means the taxable year beginning
after a February forecast in which the commissioner of management and budget projects a
positive general fund balance as of June 30, 2013, that equals or exceeds the projected
amount of tax revenue produced by the increased tax rates under clause (4) of this
paragraph and clause (4) of paragraphs (b) and (c) of this subdivision for that taxable year.
 new text end

new text begin The expiration years in this subdivision must be implemented in numerical order,
provided that, if the positive general fund balance in a forecast is sufficient to eliminate
more than one rate increase in the order provided, more than one may be eliminated in
that year.
 new text end

Married individuals filing separate returns, estates, and trusts must compute their
income tax by applying the above rates to their taxable income, except that the income
brackets will be one-half of the above amounts.

(b) The income taxes imposed by this chapter upon unmarried individuals must be
computed by applying to taxable net income the following schedule of rates:

(1) On the first deleted text begin $17,570deleted text end new text begin $22,730, for taxable years beginning after December 31,
2008, and before January 1 of the first expiration year, 6.00 percent, and for taxable
years beginning after December 31 of the calendar year prior to the first expiration yearnew text end ,
5.35 percent;

(2) On all over deleted text begin $17,570deleted text end new text begin $22,730new text end , but not over deleted text begin $57,710deleted text end new text begin $74,650, for taxable years
beginning after December 31, 2008, and before January 1 of the second expiration year,
7.70 percent, and for taxable years beginning after December 31 of the calendar year prior
to the second expiration yearnew text end , 7.05 percent;

(3) On all over deleted text begin $57,710deleted text end new text begin $74,650, but not over $141,250, for taxable years beginning
after December 31, 2008, and before January 1 of the third expiration year, 8.50 percent.
For taxable years beginning after December 31 of the calendar year prior to the third
expiration year, on all over $74,650new text end , 7.85 percentnew text begin ;
new text end

new text begin (4) On all over $141,250, 9.25 percent for taxable years beginning after December
31, 2008, and before January 1 of the fourth expiration yearnew text end .

(c) The income taxes imposed by this chapter upon unmarried individuals qualifying
as a head of household as defined in section 2(b) of the Internal Revenue Code must be
computed by applying to taxable net income the following schedule of rates:

(1) On the first deleted text begin $21,630deleted text end new text begin $27,980, for taxable years beginning after December 31,
2008, and before January 1 of the first expiration year, 6.00 percent, and for taxable
years beginning after December 31 of the calendar year prior to the first expiration yearnew text end ,
5.35 percent;

(2) On all over deleted text begin $21,630deleted text end new text begin $27,980new text end , but not over deleted text begin $86,910deleted text end new text begin $112,420, for taxable years
beginning after December 31, 2008, and before January 1 of the second expiration year,
7.70 percent, and for taxable years beginning after December 31 of the calendar year prior
to the second expiration yearnew text end , 7.05 percent;

(3) On all over deleted text begin $86,910deleted text end new text begin $112,420, but not over $212,500, for taxable years beginning
after December 31, 2008, and before January 1 of the third expiration year, 8.50 percent.
For taxable years beginning after December 31 of the calendar year prior to the third
expiration year, on all over $112,420new text end , 7.85 percentnew text begin ;
new text end

new text begin (4) On all over $212,500, 9.25 percent for taxable years beginning after December
31, 2008, and before January 1 of the fourth expiration yearnew text end .

(d) In lieu of a tax computed according to the rates set forth in this subdivision, the
tax of any individual taxpayer whose taxable net income for the taxable year is less than
an amount determined by the commissioner must be computed in accordance with tables
prepared and issued by the commissioner of revenue based on income brackets of not
more than $100. The amount of tax for each bracket shall be computed at the rates set
forth in this subdivision, provided that the commissioner may disregard a fractional part of
a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.

(e) An individual who is not a Minnesota resident for the entire year must compute
the individual's Minnesota income tax as provided in this subdivision. After the
application of the nonrefundable credits provided in this chapter, the tax liability must
then be multiplied by a fraction in which:

(1) the numerator is the individual's Minnesota source federal adjusted gross income
as defined in section 62 of the Internal Revenue Code and increased by the additions
required under section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12), and
(13) and reduced by the Minnesota assignable portion of the subtraction for United States
government interest under section 290.01, subdivision 19b, clause (1), and the subtractions
under section 290.01, subdivision 19b, clauses (9), (10), (14), (15), and (16), after applying
the allocation and assignability provisions of section 290.081, clause (a), or 290.17; and

(2) the denominator is the individual's federal adjusted gross income as defined in
section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in
section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12), and (13) and
reduced by the amounts specified in section 290.01, subdivision 19b, clauses (1), (9),
(10), (14), (15), and (16).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008.
 new text end

Sec. 6.

Minnesota Statutes 2008, section 290.06, subdivision 2d, is amended to read:


Subd. 2d.

Inflation adjustment of brackets.

(a) For taxable years beginning after
December 31, deleted text begin 2000deleted text end new text begin 2009new text end , the minimum and maximum dollar amounts for each rate
bracket for which a tax is imposed in subdivision 2c shall be adjusted for inflation by the
percentage determined under paragraph (b). For the purpose of making the adjustment as
provided in this subdivision all of the rate brackets provided in subdivision 2c shall be the
rate brackets as they existed for taxable years beginning after December 31, deleted text begin 1999deleted text end new text begin 2008new text end ,
and before January 1, deleted text begin 2001deleted text end new text begin 2010new text end . The rate applicable to any rate bracket must not be
changed. The dollar amounts setting forth the tax shall be adjusted to reflect the changes
in the rate brackets. The rate brackets as adjusted must be rounded to the nearest $10
amount. If the rate bracket ends in $5, it must be rounded up to the nearest $10 amount.

(b) The commissioner shall adjust the rate brackets and by the percentage determined
pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in
section 1(f)(3)(B) the word deleted text begin "1999"deleted text end new text begin "2008"new text end shall be substituted for the word "1992." For
deleted text begin 2001deleted text end new text begin 2010new text end , the commissioner shall then determine the percent change from the 12 months
ending on August 31, deleted text begin 1999deleted text end new text begin 2008new text end , to the 12 months ending on August 31, deleted text begin 2000deleted text end new text begin 2009new text end , and
in each subsequent year, from the 12 months ending on August 31, deleted text begin 1999deleted text end new text begin 2008new text end , to the 12
months ending on August 31 of the year preceding the taxable year. The determination of
the commissioner pursuant to this subdivision shall not be considered a "rule" and shall
not be subject to the Administrative Procedure Act contained in chapter 14.

No later than December 15 of each year, the commissioner shall announce the
specific percentage that will be used to adjust the tax rate brackets.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008.
 new text end

Sec. 7.

Minnesota Statutes 2008, section 290.06, is amended by adding a subdivision
to read:


new text begin Subd. 36. new text end

new text begin Investment tax credit. new text end

new text begin (a) A credit is allowed against the tax imposed
by this chapter for a qualified taxpayer's investment in a qualified new business venture.
The credit equals 25 percent of the taxpayer's investment made in the business, but may
not exceed the least of:
 new text end

new text begin (1) the liability for tax under this chapter, including the alternative minimum taxes in
sections 290.091 and 290.0921;
 new text end

new text begin (2) $50,000 for an individual not part of a partnership; or
 new text end

new text begin (3) $300,000 for a pass-through entity or C corporation.
 new text end

new text begin (b) For purposes of this subdivision, "qualified taxpayer" means:
 new text end

new text begin (1) an accredited investor within the meaning of Regulation D of the Securities and
Exchange Commission, Code of Federal Regulations, title 17, section 230.501(a), whether
part of a pass-through entity or not; and
 new text end

new text begin (2) an accredited investor who does not own, control, or hold power to vote 20
percent or more of the outstanding securities of the qualified business venture in which the
eligible investment is proposed.
 new text end

new text begin (c) For purposes of this paragraph, "commissioner" means the commissioner
of employment and economic development. Qualified taxpayers must apply to the
commissioner for certification. The application must be in the form and made under the
procedures specified by the commissioner. The commissioner may provide certificates
entitling qualified taxpayers to tax credits under this subdivision. The maximum amount
of credits for which the commissioner may issue certificates in each taxable year is
$10,000,000 in fiscal years 2010 to 2013. In awarding certificates under this paragraph,
the commissioner must award them to qualified taxpayers in the order in which the
applications are received. A credit certificate is first available to be applied against a
taxpayer's liability in the fourth taxable year after the year in which the certificate is
awarded.
 new text end

new text begin (d) Each pass-through entity must provide each investor a statement indicating the
investor's share of the credit amount certified to the pass-through entity under paragraph
(c) based on its share of the pass-through entity's assets. The credit shall not exceed
$50,000 for each individual part of a pass-through entity.
 new text end

new text begin (e) If the amount of the credit under this subdivision in any taxable year exceeds the
limitation under paragraph (a), clause (1), the excess is a credit carryover to each of the ten
succeeding years but may not exceed $50,000 for an individual not part of a partnership
and $300,000 for a pass-through entity or C corporation. The entire amount of the excess
unused credit must be carried first to the earliest of the taxable years to which the credit
may be carried, and then to each successive year to which the credit may be carried. The
amount of the unused credit that may be added under this paragraph may not exceed the
taxpayer's liability for tax less the credit for the taxable year.
 new text end

new text begin (f) A business is a qualified business venture for purposes of this subdivision only if
the business satisfies all of the following conditions:
 new text end

new text begin (1) the business has its headquarters in Minnesota;
 new text end

new text begin (2) at least 80 percent of the business's employees are employed in Minnesota, and
80 percent of the business's total payrolls paid or incurred are in the state;
 new text end

new text begin (3) the business is engaged in, or is committed to engage in:
 new text end

new text begin (i) using advanced technology to add value to a product, process, or service in a
qualified high-technology field or qualified biotechnology or medical device field;
 new text end

new text begin (ii) conducting research in and development of a product, process, or service in a
qualified high-technology field or qualified biotechnology or medical device field;
 new text end

new text begin (iii) developing a new product, process, or service in a qualified high-technology
field or qualified biotechnology or medical device field; or
 new text end

new text begin (iv) qualified green manufacturing;
 new text end

new text begin (4) the business is not engaged in real estate development, insurance, banking,
lending, lobbying, political consulting, information technology consulting, wholesale or
retail trade, leisure, hospitality, transportation, construction, ethanol production from
corn, or professional services provided by attorneys, accountants, business consultants,
physicians, or health care consultants;
 new text end

new text begin (5) the business has fewer than 25 employees, and, if the business has more than
five employees, the business must pay its employees annual wages of at least 175 percent
of the federal poverty guideline for the year for a family of four, and must pay any
remaining employees annual wages of at least 110 percent of the federal poverty guideline
for a family of four;
 new text end

new text begin (6) the business has not been in operation for more than ten consecutive years;
 new text end

new text begin (7) the business has not received more than $1,000,000 in investments that have
qualified for and received tax credits under this section;
 new text end

new text begin (8) the business has less than $2,000,000 in annual gross sales receipts;
 new text end

new text begin (9) the business is not a subsidiary or an affiliate of a business that employs more
than 100 employees or has gross sales receipts for the previous year of more than
$1,000,000, computed by aggregating all of the employees and gross sales receipts of the
business entities affiliated with the business; and
new text end

new text begin (10) the business has not received private equity investments of more than
$2,000,000.
 new text end

new text begin (g) For purposes of this subdivision, "qualified high-technology field" includes, but
is not limited to, aerospace, agricultural processing, alternative energy, environmental
engineering, food technology, cellulosic ethanol, information technology, materials
science technology, nanotechnology, and telecommunications, but excludes business
qualifying under the definitions in paragraphs (h) and (i).
 new text end

new text begin (h) For purposes of this subdivision, "qualified biotechnology or medical device
field" means the business of manufacturing, processing, assembling, researching, or
developing biotechnology or medical device products, including biotechnology and
device products used in agriculture.
 new text end

new text begin (i) For purposes of this subdivision, "qualified green manufacturing" means a
business whose primary business activity is production of products, processes, methods,
technologies, or services intended to do one or more of the following:
 new text end

new text begin (1) increase the use of energy from renewable sources, as defined in section
216B.1691;
 new text end

new text begin (2) increase the energy efficiency of the electric utility infrastructure system or to
increase energy conservation related to electricity use, as provided in sections 216B.2401
and 216B.241;
 new text end

new text begin (3) reduce greenhouse gas emissions, as defined in section 216H.01, subdivision
2, or to mitigate greenhouse gas emissions through, but not limited to, carbon capture,
storage, or sequestration;
 new text end

new text begin (4) monitor, protect, restore, and preserve the quality of surface waters; and
 new text end

new text begin (5) expand use of biofuels, including expanding the feasibility or reducing the cost
of producing biofuels or the types of equipment, machinery, and vehicles that can use
biofuels.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 8.

new text begin [290.0678] CREDIT FOR HISTORIC STRUCTURE REHABILITATION.
 new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) As used in this section, the terms defined in this
subdivision have the meanings given.
 new text end

new text begin (b) "Certified historic structure" means a property located in Minnesota and listed
individually on the National Register of Historic Places or a historic property designated
by either a certified local government or a heritage preservation commission created
under the National Historic Preservation Act of 1966 and whose designation is approved
by the state historic preservation officer.
 new text end

new text begin (c) "Eligible property" means a certified historic structure or a structure in a certified
historic district that is offered or used for residential or business purposes.
 new text end

new text begin (d) "Structure in a certified historic district" means a structure located in Minnesota
that is certified by the State Historic Preservation Office as contributing to the historic
significance of a certified historic district listed on the National Register of Historic Places
or a local district that has been certified by the United States Department of the Interior.
 new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin A taxpayer who incurs costs for the rehabilitation of
eligible property may take a credit against the tax imposed under this chapter in an amount
equal to 20 percent of the total costs of rehabilitation. Costs of rehabilitation include,
but are not limited to, qualified rehabilitation expenditures as defined under section
47(c)(2)(A) of the Internal Revenue Code, provided that the costs of rehabilitation must
exceed 50 percent of the total basis in the property at the time the rehabilitation activity
begins and the rehabilitation must meet standards consistent with the standards of the
Secretary of the Interior for rehabilitation as determined by the State Historic Preservation
Office of the Minnesota Historical Society.
 new text end

new text begin Subd. 3. new text end

new text begin Carryforward. new text end

new text begin If the amount of the credit under subdivision 2 exceeds the
tax liability under this chapter for the year in which the cost is incurred, the amount that
exceeds the tax liability may be carried forward to each of the ten taxable years succeeding
the taxable year in which the expense was incurred. The entire amount of the credit must
be carried to the earliest taxable year to which the amount may be carried. The unused
portion of the credit must be carried to the following taxable year.
 new text end

new text begin Subd. 4. new text end

new text begin Partnerships; multiple owners; transfers. new text end

new text begin (a) Credits granted to a
partnership, a limited liability company taxed as a partnership, or multiple owners of
property shall be passed through to the partners, members, or owners, respectively, pro
rata or pursuant to an executed agreement among the partners, members, or owners
documenting an alternate distribution method.
 new text end

new text begin (b) Taxpayers eligible for credits may transfer, sell, or assign the credits in whole
or part. Any assignee may use acquired credits to offset up to 100 percent of the taxes
otherwise imposed by this chapter. The assignee shall perfect such transfer by notifying
the Department of Revenue in writing within 30 calendar days following the effective
date of the transfer in such form and manner as shall be prescribed by the Department
of Revenue. The proceeds of any sale or assignment of a credit shall be exempt from
taxation under this chapter.
 new text end

new text begin Subd. 5. new text end

new text begin Process. new text end

new text begin To claim the credit, the taxpayer must apply to the State Historic
Preservation Office of the Minnesota Historical Society before a historic rehabilitation
project begins. The State Historic Preservation Office shall determine the amount of
eligible rehabilitation costs and whether the rehabilitation meets the standards of the
United States Department of the Interior. The State Historic Preservation Office shall issue
certificates verifying eligibility for and the amount of credit. The taxpayer shall attach
the certificate to any income tax return on which the credit is claimed. The State Historic
Preservation Office of the Minnesota Historical Society may collect fees for applications
for the historic preservation tax credit. Fees shall be set at an amount that does not exceed
the costs of administering the tax credit program.
 new text end

new text begin Subd. 6. new text end

new text begin Mortgage certificates; credit for lending institutions. new text end

new text begin (a) The taxpayer
may elect, in lieu of the credit otherwise allowed under this section, to receive a historic
rehabilitation mortgage credit certificate.
 new text end

new text begin (b) For purposes of this subdivision, a historic rehabilitation mortgage credit is a
certificate that is issued to the taxpayer according to procedures prescribed by the State
Historic Preservation Office with respect to the certified rehabilitation and which meets
the requirements of this paragraph. The face amount of the certificate must be equal to
the credit that would be allowable under subdivision 2 to the taxpayer with respect to
the rehabilitation. The certificate may only be transferred by the taxpayer to a lending
institution, including a nondepository home mortgage lending institution, in connection
with a loan:
 new text end

new text begin (1) that is secured by the building with respect to which the credit is issued; and
new text end

new text begin (2) the proceeds of which may not be used for any purpose other than the acquisition
or rehabilitation of the building.
 new text end

new text begin (c) In exchange for the certificate, the lending institution must provide to the
taxpayer an amount equal to the face amount of the certificate discounted by the amount
by which the federal income tax liability of the lending institution is increased due to its
use of the certificate in the manner provided in this section. That amount must be applied,
as directed by the taxpayer, in whole or in part, to reduce:
 new text end

new text begin (1) the principal amount of the loan;
 new text end

new text begin (2) the rate of interest on the loan; or
new text end

new text begin (3) the taxpayer's cost of purchasing the building, but only in the case of a qualified
historic home that is located in a poverty-impacted area as designated by the State Historic
Preservation Office.
 new text end

new text begin The lending institution may take as a credit against the tax due under this chapter an
amount equal to the amount specified in the certificate. If the amount of the discount
retained by the lender exceeds the amount by which the lending institution's federal
income tax liability is increased due to the use of a mortgage credit certificate, the excess
shall be refunded to the borrower with interest at the rate prescribed by the State Historic
Preservation Office. The lending institution may carry forward all unused credits under
this subdivision until exhausted. Nothing in this subdivision requires a lending institution
to accept a historic rehabilitation certificate from any person.
 new text end

new text begin Subd. 7. new text end

new text begin National landmarks. new text end

new text begin Notwithstanding subdivision 2, the rehabilitation
of a property designated as a National Historic Landmark on the National Register of
Historic Places, shall be eligible for the credit under this section provided the renovation
of the specific property, designated as the National Historic Landmark, without regard to
its being part of a larger project, is consistent with the standards set forth in section 47(c)
of the Internal Revenue Code, and all other requirements of this section are met.
 new text end

new text begin Subd. 8. new text end

new text begin Determination of economic impact. new text end

new text begin The Minnesota Historical Society
shall annually determine the economic impact to the state from the rehabilitation of
eligible property for which credits are provided under this section and report on the impact
to the committees on taxes of the senate and house of representatives.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years after December 31,
2008, except that only projects that have obtained a certificate pursuant to subdivision 5
after June 30, 2009, are eligible for the credit.
 new text end

Sec. 9.

new text begin [290.0681] FILM PRODUCTION INVESTMENT CREDIT.
 new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section, the following terms
have the meanings given.
new text end

new text begin (a) "Qualifying film production" means a motion picture that is certified by the
Minnesota Film and TV Board as made wholly in Minnesota.
 new text end

new text begin (b) "Qualified investment" means an amount of cash used to pay qualified production
expenses that is provided by an investor who does not have any financial interest in the
motion picture or the production company responsible for filming the motion picture.
 new text end

new text begin (c) "Motion picture" means a feature length film, whether shot on film or digital
video, or a television series with a national distribution agreement, for theatrical or
television viewing or as a television pilot, but does not include television coverage of
news and athletic events.
 new text end

new text begin (d) "Qualified production expenses" means preproduction, production, and
postproduction expenditures incurred in Minnesota that are directly used in a qualifying
film production, including, without limitation, set construction and operation; wardrobes,
make-up, accessories, and related services; costs associated with photography and sound
synchronization, lighting, and related services and materials; editing and related services;
rental of facilities and equipment; leasing of vehicles; costs of food and lodging; digital or
tape editing, film processing, transfer of film to tape or digital format, sound mixing, and
special and visual effects; total aggregate payroll; and music, if performed, composed, or
recorded by a Minnesota musician or released or published by a Minnesota-domiciled
and headquartered company. The following are not included: (1) postproduction costs for
marketing and distribution; (2) any amounts that are later reimbursed; (3) any costs related
to the transfer of credits; and (4) any amounts paid to persons or entities as a result of their
participation in profits from the exploitation of the production.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin An individual or corporate taxpayer is allowed a credit
against the tax due under this chapter equal to 25 percent of the qualified investment in a
qualifying film production made during the taxable year.
 new text end

new text begin Subd. 3. new text end

new text begin Carryover. new text end

new text begin The credit is limited to the liability for tax, as computed under
this chapter for the taxable year. If the amount of the credit determined under this section
for any taxable year exceeds this limitation, the excess is a film investment credit carryover
to each of the five succeeding taxable years. The entire amount of the excess unused credit
for the taxable year is carried first to the earliest of the taxable years to which the credit
may be carried and then to each successive year to which the credit may be carried. The
amount of the unused credit which may be added under this subdivision shall not exceed
the taxpayer's liability for tax, less the film investment credit for the taxable year.
 new text end

new text begin Subd. 4. new text end

new text begin Certification of credits. new text end

new text begin (a) Before making a qualified investment,
taxpayers must apply to the Minnesota Film and TV Board for a film production investment
credit certificate. The application must be in the form and made under the procedures
specified by the Minnesota Film and TV Board. The Minnesota Film and TV Board must
only issue credit certificates for qualifying investments in qualifying film productions.
 new text end

new text begin (b) The Minnesota Film and TV Board may not issue certificates for more than
$1,000,000 in film production investment credits per year.
 new text end

new text begin (c) By January 31 of each year, the Minnesota Film and TV Board must report to the
commissioner of revenue the number, amount, and taxpayers to whom film production
investment credit certificates were issued during the preceding taxable year, and must
provide verification that the taxpayers issued credit certificates made the full amount of
the investment required by the certificate.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008.
 new text end

Sec. 10.

Minnesota Statutes 2008, section 290.091, subdivision 1, is amended to read:


Subdivision 1.

Imposition of tax.

In addition to all other taxes imposed by this
chapter a tax is imposed on individuals, estates, and trusts equal to the excess (if any) of

(a) an amount equal to new text begin 7.0 percent for taxable years beginning after December
31, 2008, and before January 1 of the first expiration year; 6.8 percent for taxable years
beginning after December 31 of the first expiration year and before January 1 of the
second expiration year; 6.6 percent for taxable years beginning after December 31 of the
second expiration year and before January 1 of the third expiration year; 6.5 percent
for taxable years beginning after December 31 of the third expiration year and before
January 1 of the fourth expiration year, and new text end 6.4 percent new text begin for taxable years beginning after
December 31 of the fourth expiration year, new text end of alternative minimum taxable income after
subtracting the exemption amount, over

(b) the regular tax for the taxable year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008.
 new text end

Sec. 11.

Minnesota Statutes 2008, section 290.091, subdivision 2, is amended to read:


Subd. 2.

Definitions.

For purposes of the tax imposed by this section, the following
terms have the meanings given:

(a) "Alternative minimum taxable income" means the sum of the following for
the taxable year:

(1) the taxpayer's federal alternative minimum taxable income as defined in section
55(b)(2) of the Internal Revenue Code;

(2) the taxpayer's itemized deductions allowed in computing federal alternative
minimum taxable income, but excluding:

(i) the charitable contribution deduction under section 170 of the Internal Revenue
Code;

(ii) the medical expense deduction;

(iii) the casualty, theft, and disaster loss deduction; and

(iv) the impairment-related work expenses of a disabled person;

(3) for depletion allowances computed under section 613A(c) of the Internal
Revenue Code, with respect to each property (as defined in section 614 of the Internal
Revenue Code), to the extent not included in federal alternative minimum taxable income,
the excess of the deduction for depletion allowable under section 611 of the Internal
Revenue Code for the taxable year over the adjusted basis of the property at the end of the
taxable year (determined without regard to the depletion deduction for the taxable year);

(4) to the extent not included in federal alternative minimum taxable income, the
amount of the tax preference for intangible drilling cost under section 57(a)(2) of the
Internal Revenue Code determined without regard to subparagraph (E);

(5) to the extent not included in federal alternative minimum taxable income, the
amount of interest income as provided by section 290.01, subdivision 19a, clause (1); and

(6) the amount of addition required by section 290.01, subdivision 19a, clauses
(7) to (9), (12), and (13);

less the sum of the amounts determined under the following:

(1) interest income as defined in section 290.01, subdivision 19b, clause (1);

(2) an overpayment of state income tax as provided by section 290.01, subdivision
19b, clause (2), to the extent included in federal alternative minimum taxable income;

(3) the amount of investment interest paid or accrued within the taxable year on
indebtedness to the extent that the amount does not exceed net investment income, as
defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include
amounts deducted in computing federal adjusted gross income; and

(4) amounts subtracted from federal taxable income as provided by section 290.01,
subdivision 19b, clauses (6) deleted text begin anddeleted text end new text begin ,new text end (9) to (16)new text begin , and (18)new text end .

In the case of an estate or trust, alternative minimum taxable income must be
computed as provided in section 59(c) of the Internal Revenue Code.

(b) "Investment interest" means investment interest as defined in section 163(d)(3)
of the Internal Revenue Code.

(c) "Tentative minimum tax" equals 6.4 percent of alternative minimum taxable
income after subtracting the exemption amount determined under subdivision 3.

(d) "Regular tax" means the tax that would be imposed under this chapter (without
regard to this section and section 290.032), reduced by the sum of the nonrefundable
credits allowed under this chapter.

(e) "Net minimum tax" means the minimum tax imposed by this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008, and ending before January 1, 2013.
 new text end

Sec. 12.

new text begin [290.094] SURTAX ON CERTAIN INTEREST INCOME.
 new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) Unless the language or context clearly indicates that
a different meaning is intended, for the purposes of this section, the following terms
have the meanings given them.
 new text end

new text begin (b) "Annual percentage rate" has the meanings given the term in the Code of Federal
Regulations, title 12, parts 226.14 and 226.22, related to open-end and closed-end credit.
 new text end

new text begin (c) "Borrower" means a debtor under a loan or a purchaser of debt under a credit
sale contract.
 new text end

new text begin (d) "Cardholder" means a person to whom a credit card is issued or who has agreed
with the financial institution to pay obligations arising from the issuance to or use of the
card by another person.
 new text end

new text begin (e) "Consumer loan" means a loan made by a financial institution in which:
 new text end

new text begin (1) the debtor is a person other than an organization;
 new text end

new text begin (2) the debt is incurred primarily for a personal, family, or household purpose; and
 new text end

new text begin (3) the debt is payable in installments or a finance charge is made.
 new text end

new text begin (f) "Credit" means the right granted by a financial institution to a borrower to defer
payment of a debt, to incur debt and defer its payment, or to purchase property or services
and defer payment.
 new text end

new text begin (g) "Credit card" means a card or device issued under an arrangement pursuant to
which a financial institution gives to a cardholder the privilege of obtaining credit from
the financial institution or other person in purchasing or leasing property or services,
obtaining loans, or otherwise. A transaction is "pursuant to a credit card" only if credit is
obtained according to the terms of the arrangement by transmitting information contained
on the card or device orally, in writing, by mechanical or electronic methods, or in any
other manner. A transaction is not "pursuant to a credit card" if the card or device is
used solely in that transaction to:
 new text end

new text begin (1) identify the cardholder or evidence the cardholder's creditworthiness and credit is
not obtained according to the terms of the arrangement;
 new text end

new text begin (2) obtain a guarantee of payment from the cardholder's deposit account, whether or
not the payment results in a credit extension to the cardholder by the financial institution; or
 new text end

new text begin (3) effect an immediate transfer of funds from the cardholder's deposit account by
electronic or other means, whether or not the transfer results in a credit extension to
the cardholder by the financial institution.
 new text end

new text begin (h) "Credit sale contract" means a contract evidencing a credit sale. "Credit sale"
means a sale of goods or services, or an interest in land, in which:
 new text end

new text begin (1) credit is granted by a seller who regularly engages as a seller in credit transactions
of the same kind; and
 new text end

new text begin (2) the debt is payable in installments or a finance charge is made.
 new text end

new text begin (i) "Financial institution" means a state or federally chartered bank, a state or
federally chartered bank and trust, a trust company with banking powers, a state or
federally chartered savings association, an industrial loan and thrift company organized
under chapter 53, a regulated lender organized under chapter 56, or an operating subsidiary
of any such institution.
 new text end

new text begin (j) "Loan" means:
 new text end

new text begin (1) the creation of debt by the financial institution's payment of money to the
borrower or a third person for the account of the borrower;
 new text end

new text begin (2) the creation of debt pursuant to a credit card in any manner, including a cash
advance or the financial institution's honoring a draft or similar order for the payment of
money drawn or accepted by the borrower, paying or agreeing to pay the borrower's
obligation, or purchasing or otherwise acquiring the borrower's obligation from the
obligee or the borrower's assignee;
 new text end

new text begin (3) the creation of debt by a cash advance to a borrower pursuant to an overdraft
line of credit arrangement;
 new text end

new text begin (4) the creation of debt by a credit to an account with the financial institution upon
which the borrower is entitled to draw immediately;
 new text end

new text begin (5) the forbearance of debt arising from a loan; and
 new text end

new text begin (6) the creation of debt pursuant to open-end credit.
 new text end

new text begin "Loan" does not include the forbearance of debt arising from a sale or lease, a credit
sale contract, or an overdraft from a person's deposit account with a financial institution
which is not pursuant to a written agreement to pay overdrafts with the right to defer
repayment thereof.
 new text end

new text begin (k) "Organization" means a corporation, government, government subdivision or
agency, trust, estate, partnership, joint venture, cooperative, limited liability company,
limited liability partnership, or association.
 new text end

new text begin (l) "Person" means a natural person or an organization.
 new text end

new text begin (m) "Principal" means the total of:
 new text end

new text begin (1) the amount paid to, received by, or paid or repayable for the account of, the
borrower; and
 new text end

new text begin (2) to the extent that payment is deferred:
 new text end

new text begin (i) the amount actually paid or to be paid by the financial institution for additional
charges permitted under this section; and
 new text end

new text begin (ii) prepaid finance charges.
 new text end

new text begin Subd. 2. new text end

new text begin Scope. new text end

new text begin (a) Any person or organization conducting a trade or business in
this state who is subject to the Truth in Lending requirements under Code of Regulations,
title 12, part 226 (Federal Regulation Z), and who charges interest on the credit issued
shall be subject to a surtax on each transaction as prescribed by this chapter. Transactions
include any open-end and closed-end credit transactions subject to Federal Regulation Z
such as loans, consumer loans, credit sale contracts, extensions of credit, and credit issued
pursuant to a credit card. A transferee or assignee of a transaction subject to the surtax
under this section, is also subject to the tax under this section.
 new text end

new text begin (b) The tax shall be determined for each transaction subject to the requirements of
this section that occurs during the calendar year.
 new text end

new text begin Subd. 3. new text end

new text begin Surtax rate. new text end

new text begin The surtax shall be imposed at the rate of 30 percent on any
income attributable to interest collected from the portion of an annual percentage rate that
exceeds 15 percent on transactions subject to Code of Regulations, title 12, part 226
(Federal Regulation Z).
 new text end

new text begin Subd. 4. new text end

new text begin Collection and administration. new text end

new text begin The tax imposed by this section shall
be paid annually to the commissioner of revenue and is subject to the same collection,
enforcement, and penalty provisions as other taxes imposed by this chapter.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008.
 new text end

Sec. 13.

Minnesota Statutes 2008, section 290.17, subdivision 2, is amended to read:


Subd. 2.

Income not derived from conduct of a trade or business.

The income of
a taxpayer subject to the allocation rules that is not derived from the conduct of a trade or
business must be assigned in accordance with paragraphs (a) to (f):

(a)(1) Subject to paragraphs (a)(2) and (a)(3), income from wages as defined in
section 3401(a) and (f) of the Internal Revenue Code is assigned to this state if, and to the
extent that, the work of the employee is performed within it; all other income from such
sources is treated as income from sources without this state.

Severance pay shall be considered income from labor or personal or professional
services.

(2) In the case of an individual who is a nonresident of Minnesota and who is an
athlete or entertainer, income from compensation for labor or personal services performed
within this state shall be determined in the following manner:

(i) The amount of income to be assigned to Minnesota for an individual who is a
nonresident salaried athletic team employee shall be determined by using a fraction in
which the denominator contains the total number of days in which the individual is under
a duty to perform for the employer, and the numerator is the total number of those days
spent in Minnesota. For purposes of this paragraph, off-season training activities, unless
conducted at the team's facilities as part of a team imposed program, are not included in
the total number of duty days. Bonuses earned as a result of play during the regular season
or for participation in championship, play-off, or all-star games must be allocated under
the formula. Signing bonuses are not subject to allocation under the formula if they are
not conditional on playing any games for the team, are payable separately from any other
compensation, and are nonrefundable; and

(ii) The amount of income to be assigned to Minnesota for an individual who is a
nonresident, and who is an athlete or entertainer not listed in clause (i), for that person's
athletic or entertainment performance in Minnesota shall be determined by assigning to
this state all income from performances or athletic contests in this state.

(3) For purposes of this section, amounts received by a nonresident as "retirement
income" as defined in section (b)(1) of the State Income Taxation of Pension Income
Act, Public Law 104-95, are not considered income derived from carrying on a trade
or business or from wages or other compensation for work an employee performed in
Minnesota, and are not taxable under this chapter.

(b) Income or gains from tangible property located in this state that is not employed
in the business of the recipient of the income or gains must be assigned to this state.

(c) Income or gains from intangible personal property not employed in the business
of the recipient of the income or gains must be assigned to this state if the recipient of the
income or gains is a resident of this state or is a resident trust or estate.

Gain on the sale of a partnership interest is allocable to this state in the ratio of the
original cost of partnership tangible property in this state to the original cost of partnership
tangible property everywhere, determined at the time of the sale. If more than 50 percent
of the value of the partnership's assets consists of intangibles, gain or loss from the sale
of the partnership interest is allocated to this state in accordance with the sales factor of
the partnership for its first full tax period immediately preceding the tax period of the
partnership during which the partnership interest was sold.

new text begin Gain on the sale of an interest in a single member limited liability company that
is disregarded for federal income tax purposes is allocable to this state as if the single
member limited liability company did not exist and the assets of the limited liability
company are personally owned by the sole member.
 new text end

Gain on the sale of goodwill or income from a covenant not to compete that is
connected with a business operating all or partially in Minnesota is allocated to this state
to the extent that the income from the business in the year preceding the year of sale was
assignable to Minnesota under subdivision 3.

When an employer pays an employee for a covenant not to compete, the income
allocated to this state is in the ratio of the employee's service in Minnesota in the calendar
year preceding leaving the employment of the employer over the total services performed
by the employee for the employer in that year.

(d) Income from winnings on a bet made by an individual while in Minnesota is
assigned to this state. In this paragraph, "bet" has the meaning given in section 609.75,
subdivision 2, as limited by section 609.75, subdivision 3, clauses (1), (2), and (3).

(e) All items of gross income not covered in paragraphs (a) to (d) and not part of the
taxpayer's income from a trade or business shall be assigned to the taxpayer's domicile.

(f) For the purposes of this section, working as an employee shall not be considered
to be conducting a trade or business.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 14.

Minnesota Statutes 2008, section 290.191, subdivision 2, is amended to read:


Subd. 2.

Apportionment formula of general application.

(a) Except for those
trades or businesses required to use a different formula under subdivision 3 or section
290.36, and for those trades or businesses that receive permission to use some other
method under section 290.20 or under subdivision 4, a trade or business required to
apportion its net income must apportion its income to this state on the basis of the
percentage obtained by taking the sum of:

(1) the percent for the sales factor under paragraph (b) of the percentage which
the sales made within this state in connection with the trade or business during the tax
period are of the total sales wherever made in connection with the trade or business during
the tax period;

(2) the percent for the property factor under paragraph (b) of the percentage which
the total tangible property used by the taxpayer in this state in connection with the trade or
business during the tax period is of the total tangible property, wherever located, used by
the taxpayer in connection with the trade or business during the tax period; and

(3) the percent for the payroll factor under paragraph (b) of the percentage which
the taxpayer's total payrolls paid or incurred in this state or paid in respect to labor
performed in this state in connection with the trade or business during the tax period are
of the taxpayer's total payrolls paid or incurred in connection with the trade or business
during the tax period.

(b) For purposes of paragraph (a) and subdivision 3, the following percentages apply
for deleted text begin thedeleted text end taxable years deleted text begin specifieddeleted text end new text begin beginning during calendar year 2009new text end :

deleted text begin Taxable years beginning
during calendar year
 deleted text end 		deleted text begin Sales factor
percent
 deleted text end 		deleted text begin Property factor
percent
 deleted text end 		deleted text begin Payroll factor
percent
 deleted text end
deleted text begin 2007
 deleted text end 		deleted text begin 78
 deleted text end 		deleted text begin 11
 deleted text end 		deleted text begin 11
 deleted text end
deleted text begin 2008
 deleted text end 		deleted text begin 81
 deleted text end 		deleted text begin 9.5
 deleted text end 		deleted text begin 9.5
 deleted text end
deleted text begin 2009
 deleted text end 		deleted text begin 84
 deleted text end 		deleted text begin 8
 deleted text end 		deleted text begin 8
 deleted text end
deleted text begin 2010
 deleted text end 		deleted text begin 87
 deleted text end 		deleted text begin 6.5
 deleted text end 		deleted text begin 6.5
 deleted text end
deleted text begin 2011
 deleted text end 		deleted text begin 90
 deleted text end 		deleted text begin 5
 deleted text end 		deleted text begin 5
 deleted text end
deleted text begin 2012
 deleted text end 		deleted text begin 93
 deleted text end 		deleted text begin 3.5
 deleted text end 		deleted text begin 3.5
 deleted text end
deleted text begin 2013
 deleted text end 		deleted text begin 96
 deleted text end 		deleted text begin 2
 deleted text end 		deleted text begin 2
 deleted text end
deleted text begin 2014 and later calendar years
deleted text end 		deleted text begin 100
 deleted text end 		deleted text begin 0
 deleted text end 		deleted text begin 0
 deleted text end

new text begin (1) sales factor is 81 percent;
 new text end

new text begin (2) property factor is 9.5 percent; and
 new text end

new text begin (3) payroll factor is 9.5 percent.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008.
 new text end

Sec. 15.

new text begin [297I.23] MINNESOTA BUSINESS INVESTMENT COMPANY
CREDIT.
 new text end

new text begin (a) A participating investor as defined under section 116J.665, subdivision 1,
is allowed a credit against the tax imposed in this chapter equal to 80 percent of the
participating investor's investment of designated capital in a Minnesota business
investment company. Beginning January 1, 2014, a participating investor may claim
the credit as follows:
 new text end

new text begin (1) in tax year 2014, an amount equal to 16 percent of the participating investor's
investment of designated capital;
 new text end

new text begin (2) in tax year 2015, an amount equal to 16 percent of the participating investor's
investment of designated capital;
 new text end

new text begin (3) in tax year 2016, an amount equal to 16 percent of the participating investor's
investment of designated capital;
new text end

new text begin (4) in tax year 2017, an amount equal to 16 percent of the participating investor's
investment of designated capital; and
 new text end

new text begin (5) in tax year 2018, an amount equal to 16 percent of the participating investor's
investment of designated capital.
 new text end

new text begin (b) The credit for any taxable year must not exceed the liability for tax under
this chapter for the year. If the amount of the credit determined under this section for
any taxable year exceeds the liability for tax under this chapter, the excess shall be an
investment tax credit carryover to future taxable years without limitation. Credits may be
used in connection with both final payments and prepayments of a participating investor's
state premium tax liability.
 new text end

new text begin (c) A participating investor claiming a credit under this section is not required to pay
any additional retaliatory tax levied as a result of claiming the credit.
 new text end

new text begin (d) If the taxes paid by a participating investor with respect to its state premium
tax liability constitute a credit against any other tax that is imposed by this state, the
participating investor's credit against the other tax shall not be reduced by virtue of the
reduction in the participating investor's tax liability based on the tax credit allowed
under this section.
 new text end

new text begin (e) Final decertification of Minnesota business investment company under section
116J.665 may result in the disallowance and the recapture of the credit allowed under this
section. The amount to be disallowed and recaptured must be assessed as follows:
 new text end

new text begin (1) decertification of a Minnesota business investment company within two years of
its allocation date and prior to meeting the requirements of section 116J.665, subdivision
5, paragraph (a), clause (1), shall result in the disallowance of all of the credits allowed
under this section; and
 new text end

new text begin (2) decertification of Minnesota business investment company that has already met
the requirements of section 116J.665, subdivision 5, paragraph (a), clause (1), shall not
cause the disallowance of any credits allowed under this section nor the recapture of any
portion of the credits that was previously taken.
 new text end

new text begin (f) A participating investor must not transfer, agree to transfer, sell, or agree to
sell the credit under this section until 180 days from the date on which the participating
investor invested designated capital. After 180 days from the date of investment, a
participating investor, or subsequent transferee, may transfer credits based upon rules
adopted by the commissioner to facilitate the transfers. Any transfer or sale of the credits
does not affect the time schedule for claiming the credit. Any tax credits recaptured
under this section remain the liability of the participating investor that applied the credit
towards its tax liability.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2009.
 new text end

Sec. 16. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, sections 290.06, subdivision 34; and 297A.815,
subdivision 3, new text end new text begin are repealed.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

ARTICLE 2

FEDERAL UPDATE

Section 1.

Minnesota Statutes 2008, section 289A.02, subdivision 7, as amended by
Laws 2009, chapter 12, article 1, section 1, is amended to read:


Subd. 7.

Internal Revenue Code.

Unless specifically defined otherwise, "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through deleted text begin December
31, 2008deleted text end new text begin March 31, 2009new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
except the changes incorporated by federal changes are effective at the same time as the
changes were effective for federal purposes.
 new text end

Sec. 2.

Minnesota Statutes 2008, section 290.01, subdivision 19, as amended by Laws
2009, chapter 12, article 1, section 2, is amended to read:


Subd. 19.

Net income.

The term "net income" means the federal taxable income,
as defined in section 63 of the Internal Revenue Code of 1986, as amended through the
date named in this subdivision, incorporating the federal effective dates of changes to the
Internal Revenue Code and any elections made by the taxpayer in accordance with the
Internal Revenue Code in determining federal taxable income for federal income tax
purposes, and with the modifications provided in subdivisions 19a to 19f.

In the case of a regulated investment company or a fund thereof, as defined in section
851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
except that:

(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
Revenue Code does not apply;

(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal
Revenue Code must be applied by allowing a deduction for capital gain dividends and
exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal
Revenue Code; and

(3) the deduction for dividends paid must also be applied in the amount of any
undistributed capital gains which the regulated investment company elects to have treated
as provided in section 852(b)(3)(D) of the Internal Revenue Code.

The net income of a real estate investment trust as defined and limited by section
856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
taxable income as defined in section 857(b)(2) of the Internal Revenue Code.

The net income of a designated settlement fund as defined in section 468B(d) of
the Internal Revenue Code means the gross income as defined in section 468B(b) of the
Internal Revenue Code.

The Internal Revenue Code of 1986, as amended through deleted text begin December 31, 2008deleted text end new text begin March
31, 2009new text end , shall be in effect for taxable years beginning after December 31, 1996.

Except as otherwise provided, references to the Internal Revenue Code in
subdivisions 19 to 19f mean the code in effect for purposes of determining net income for
the applicable year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2007.
 new text end

Sec. 3.

Minnesota Statutes 2008, section 290.01, subdivision 19a, as amended by Laws
2009, chapter 12, article 1, section 3, is amended to read:


Subd. 19a.

Additions to federal taxable income.

For individuals, estates, and
trusts, there shall be added to federal taxable income:

(1)(i) interest income on obligations of any state other than Minnesota or a political
or governmental subdivision, municipality, or governmental agency or instrumentality
of any state other than Minnesota exempt from federal income taxes under the Internal
Revenue Code or any other federal statute; and

(ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue
Code, except the portion of the exempt-interest dividends derived from interest income
on obligations of the state of Minnesota or its political or governmental subdivisions,
municipalities, governmental agencies or instrumentalities, but only if the portion of the
exempt-interest dividends from such Minnesota sources paid to all shareholders represents
95 percent or more of the exempt-interest dividends that are paid by the regulated
investment company as defined in section 851(a) of the Internal Revenue Code, or the
fund of the regulated investment company as defined in section 851(g) of the Internal
Revenue Code, making the payment; and

(iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal
government described in section 7871(c) of the Internal Revenue Code shall be treated as
interest income on obligations of the state in which the tribe is located;

(2) the amount of income deleted text begin ordeleted text end new text begin ,new text end sales and usenew text begin , motor vehicle sales, or excisenew text end taxes paid
or accrued within the taxable year under this chapter and the amount of taxes based on
net income paid deleted text begin ordeleted text end new text begin ,new text end sales and usenew text begin , motor vehicle sales, or excisenew text end taxes paid to any other
state or to any province or territory of Canada, to the extent allowed as a deduction under
section 63(d) of the Internal Revenue Code, but the addition may not be more than the
amount by which the itemized deductions as allowed under section 63(d) of the Internal
Revenue Code exceeds the amount of the standard deduction as defined in section 63(c)
of the Internal Revenue Code, disregarding the deleted text begin amountdeleted text end new text begin amountsnew text end allowed under deleted text begin sectiondeleted text end new text begin
sectionsnew text end 63(c)(1)(C)new text begin and 63(c)(1)(E)new text end of the Internal Revenue Code. For the purpose of
this paragraph, the disallowance of itemized deductions under section 68 of the Internal
Revenue Code of 1986, income deleted text begin ordeleted text end new text begin ,new text end sales and use deleted text begin tax isdeleted text end new text begin , motor vehicle sales, or excise
taxes arenew text end the last itemized deleted text begin deductiondeleted text end new text begin deductionsnew text end disallowed;

(3) the capital gain amount of a lump-sum distribution to which the special tax under
section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;

(4) the amount of income taxes paid or accrued within the taxable year under this
chapter and taxes based on net income paid to any other state or any province or territory
of Canada, to the extent allowed as a deduction in determining federal adjusted gross
income. For the purpose of this paragraph, income taxes do not include the taxes imposed
by sections 290.0922, subdivision 1, paragraph (b), 290.9727, 290.9728, and 290.9729;

(5) the amount of expense, interest, or taxes disallowed pursuant to section 290.10
other than expenses or interest used in computing net interest income for the subtraction
allowed under subdivision 19b, clause (1);

(6) the amount of a partner's pro rata share of net income which does not flow
through to the partner because the partnership elected to pay the tax on the income under
section 6242(a)(2) of the Internal Revenue Code;

(7) 80 percent of the depreciation deduction allowed under section 168(k) of the
Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that
in the taxable year generates a deduction for depreciation under section 168(k) and the
activity generates a loss for the taxable year that the taxpayer is not allowed to claim for
the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is
limited to excess of the depreciation claimed by the activity under section 168(k) over the
amount of the loss from the activity that is not allowed in the taxable year. In succeeding
taxable years when the losses not allowed in the taxable year are allowed, the depreciation
under section 168(k) is allowed;

(8) 80 percent of the amount by which the deduction allowed by section 179 of the
Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal
Revenue Code of 1986, as amended through December 31, 2003;

(9) to the extent deducted in computing federal taxable income, the amount of the
deduction allowable under section 199 of the Internal Revenue Code;

(10) the exclusion allowed under section 139A of the Internal Revenue Code for
federal subsidies for prescription drug plans;

(11) the amount of expenses disallowed under section 290.10, subdivision 2;

(12) the amount deducted for qualified tuition and related expenses under section
222 of the Internal Revenue Code, to the extent deducted from gross income;

(13) the amount deducted for certain expenses of elementary and secondary school
teachers under section 62(a)(2)(D) of the Internal Revenue Code, to the extent deducted
from gross income; deleted text begin and
deleted text end

(14) the additional standard deduction for property taxes payable that is allowable
under section 63(c)(1)(C) of the Internal Revenue Codenew text begin ;
new text end

new text begin (15) the additional standard deduction for qualified motor vehicle sales taxes
allowable under section 63(c)(1)(E) of the Internal Revenue Code; and
 new text end

new text begin (16) discharge of indebtedness income resulting from reacquisition of business
indebtedness and deferred under section 108(i) of the Internal Revenue Codenew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008, except that clause (16) is effective for taxable years ending after
December 31, 2008.
 new text end

Sec. 4.

Minnesota Statutes 2008, section 290.01, subdivision 19b, is amended to read:


Subd. 19b.

Subtractions from federal taxable income.

For individuals, estates,
and trusts, there shall be subtracted from federal taxable income:

(1) net interest income on obligations of any authority, commission, or
instrumentality of the United States to the extent includable in taxable income for federal
income tax purposes but exempt from state income tax under the laws of the United States;

(2) if included in federal taxable income, the amount of any overpayment of income
tax to Minnesota or to any other state, for any previous taxable year, whether the amount
is received as a refund or as a credit to another taxable year's income tax liability;

(3) the amount paid to others, less the amount used to claim the credit allowed under
section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten
to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
transportation of each qualifying child in attending an elementary or secondary school
situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
resident of this state may legally fulfill the state's compulsory attendance laws, which
is not operated for profit, and which adheres to the provisions of the Civil Rights Act
of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause,
"textbooks" includes books and other instructional materials and equipment purchased
or leased for use in elementary and secondary schools in teaching only those subjects
legally and commonly taught in public elementary and secondary schools in this state.
Equipment expenses qualifying for deduction includes expenses as defined and limited in
section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional
books and materials used in the teaching of religious tenets, doctrines, or worship, the
purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
or materials for, or transportation to, extracurricular activities including sporting events,
musical or dramatic events, speech activities, driver's education, or similar programs. For
purposes of the subtraction provided by this clause, "qualifying child" has the meaning
given in section 32(c)(3) of the Internal Revenue Code;

(4) income as provided under section 290.0802;

(5) to the extent included in federal adjusted gross income, income realized on
disposition of property exempt from tax under section 290.491;

(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
of the Internal Revenue Code in determining federal taxable income by an individual
who does not itemize deductions for federal income tax purposes for the taxable year, an
amount equal to 50 percent of the excess of charitable contributions over $500 allowable
as a deduction for the taxable year under section 170(a) of the Internal Revenue Code and
under the provisions of Public Law 109-1;

(7) for taxable years beginning before January 1, 2008, the amount of the federal
small ethanol producer credit allowed under section 40(a)(3) of the Internal Revenue Code
which is included in gross income under section 87 of the Internal Revenue Code;

(8) for individuals who are allowed a federal foreign tax credit for taxes that do not
qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover
of subnational foreign taxes for the taxable year, but not to exceed the total subnational
foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
"federal foreign tax credit" means the credit allowed under section 27 of the Internal
Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
the extent they exceed the federal foreign tax credit;

(9) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case
of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth
of the delayed depreciation. For purposes of this clause, "delayed depreciation" means
the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or
subdivision 19c, clause (15), in the case of a shareholder of an S corporation, minus the
positive value of any net operating loss under section 172 of the Internal Revenue Code
generated for the tax year of the addition. The resulting delayed depreciation cannot be
less than zero;

(10) job opportunity building zone income as provided under section 469.316;

(11) to the extent included in federal taxable income, the amount of compensation
paid to members of the Minnesota National Guard or other reserve components of the
United States military for active service performed in Minnesota, excluding compensation
for services performed under the Active Guard Reserve (AGR) program. For purposes of
this clause, "active service" means (i) state active service as defined in section 190.05,
subdivision 5a, clause (1); (ii) federally funded state active service as defined in section
190.05, subdivision 5b; or (iii) federal active service as defined in section 190.05,
subdivision 5c, but "active service" excludes service performed in accordance with section
190.08, subdivision 3;

(12) to the extent included in federal taxable income, the amount of compensation
paid to Minnesota residents who are members of the armed forces of the United States or
United Nations for active duty performed outside Minnesota under United States Code,
title 10, section 101(d); United States Code, title 32, section 101(12); or the authority of
the United Nations;

(13) an amount, not to exceed $10,000, equal to qualified expenses related to a
qualified donor's donation, while living, of one or more of the qualified donor's organs
to another person for human organ transplantation. For purposes of this clause, "organ"
means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
"human organ transplantation" means the medical procedure by which transfer of a human
organ is made from the body of one person to the body of another person; "qualified
expenses" means unreimbursed expenses for both the individual and the qualified donor
for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
may be subtracted under this clause only once; and "qualified donor" means the individual
or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
individual may claim the subtraction in this clause for each instance of organ donation for
transplantation during the taxable year in which the qualified expenses occur;

(14) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of a
shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in the
case of a shareholder of a corporation that is an S corporation, minus the positive value of
any net operating loss under section 172 of the Internal Revenue Code generated for the
tax year of the addition. If the net operating loss exceeds the addition for the tax year, a
subtraction is not allowed under this clause;

(15) to the extent included in federal taxable income, compensation paid to a service
member as defined in United States Code, title 10, section 101(a)(5), for military service
as defined in the Servicemembers Civil Relief Act, Public Law 108-189, section 101(2);

(16) international economic development zone income as provided under section
469.325; deleted text begin and
deleted text end

(17) to the extent included in federal taxable income, the amount of national service
educational awards received from the National Service Trust under United States Code,
title 42, sections 12601 to 12604, for service in an approved Americorps National Service
programnew text begin ; and
new text end

new text begin (18) to the extent included in federal taxable income, discharge of indebtedness
income resulting from reacquisition of business indebtedness included in federal taxable
income under section 108(i) of the Internal Revenue Code. This subtraction applies only
to the extent that the income was included in net income in a prior year as a result of the
addition under section 290.01, subdivision 19a, clause (16)new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years ending after
December 31, 2008.
 new text end

Sec. 5.

Minnesota Statutes 2008, section 290.01, subdivision 19c, as amended by Laws
2009, chapter 12, article 1, section 4, is amended to read:


Subd. 19c.

Corporations; additions to federal taxable income.

For corporations,
there shall be added to federal taxable income:

(1) the amount of any deduction taken for federal income tax purposes for income,
excise, or franchise taxes based on net income or related minimum taxes, including but not
limited to the tax imposed under section 290.0922, paid by the corporation to Minnesota,
another state, a political subdivision of another state, the District of Columbia, or any
foreign country or possession of the United States;

(2) interest not subject to federal tax upon obligations of: the United States, its
possessions, its agencies, or its instrumentalities; the state of Minnesota or any other
state, any of its political or governmental subdivisions, any of its municipalities, or any
of its governmental agencies or instrumentalities; the District of Columbia; or Indian
tribal governments;

(3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal
Revenue Code;

(4) the amount of any net operating loss deduction taken for federal income tax
purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss
deduction under section 810 of the Internal Revenue Code;

(5) the amount of any special deductions taken for federal income tax purposes
under sections 241 to 247 and 965 of the Internal Revenue Code;

(6) losses from the business of mining, as defined in section 290.05, subdivision 1,
clause (a), that are not subject to Minnesota income tax;

(7) the amount of any capital losses deducted for federal income tax purposes under
sections 1211 and 1212 of the Internal Revenue Code;

(8) the exempt foreign trade income of a foreign sales corporation under sections
921(a) and 291 of the Internal Revenue Code;

(9) the amount of percentage depletion deducted under sections 611 through 614 and
291 of the Internal Revenue Code;

(10) for certified pollution control facilities placed in service in a taxable year
beginning before December 31, 1986, and for which amortization deductions were elected
under section 169 of the Internal Revenue Code of 1954, as amended through December
31, 1985, the amount of the amortization deduction allowed in computing federal taxable
income for those facilities;

(11) the amount of any deemed dividend from a foreign operating corporation
determined pursuant to section 290.17, subdivision 4, paragraph (g). The deemed dividend
shall be reduced by the amount of the addition to income required by clauses (20), (21),
(22), and (23);

(12) the amount of a partner's pro rata share of net income which does not flow
through to the partner because the partnership elected to pay the tax on the income under
section 6242(a)(2) of the Internal Revenue Code;

(13) the amount of net income excluded under section 114 of the Internal Revenue
Code;

(14) any increase in subpart F income, as defined in section 952(a) of the Internal
Revenue Code, for the taxable year when subpart F income is calculated without regard to
the provisions of Division C, title III, section 304(a)(1)-(2) of Public Law 110-343;

(15) 80 percent of the depreciation deduction allowed under section 168(k)(1)(A)
and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if the taxpayer
has an activity that in the taxable year generates a deduction for depreciation under
section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable year
that the taxpayer is not allowed to claim for the taxable year, "the depreciation allowed
under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess of the
depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) over the
amount of the loss from the activity that is not allowed in the taxable year. In succeeding
taxable years when the losses not allowed in the taxable year are allowed, the depreciation
under section 168(k)(1)(A) and (k)(4)(A) is allowed;

(16) 80 percent of the amount by which the deduction allowed by section 179 of the
Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal
Revenue Code of 1986, as amended through December 31, 2003;

(17) to the extent deducted in computing federal taxable income, the amount of the
deduction allowable under section 199 of the Internal Revenue Code;

(18) the exclusion allowed under section 139A of the Internal Revenue Code for
federal subsidies for prescription drug plans;

(19) the amount of expenses disallowed under section 290.10, subdivision 2;

(20) an amount equal to the interest and intangible expenses, losses, and costs paid,
accrued, or incurred by any member of the taxpayer's unitary group to or for the benefit
of a corporation that is a member of the taxpayer's unitary business group that qualifies
as a foreign operating corporation. For purposes of this clause, intangible expenses and
costs include:

(i) expenses, losses, and costs for, or related to, the direct or indirect acquisition,
use, maintenance or management, ownership, sale, exchange, or any other disposition of
intangible property;

(ii) losses incurred, directly or indirectly, from factoring transactions or discounting
transactions;

(iii) royalty, patent, technical, and copyright fees;

(iv) licensing fees; and

(v) other similar expenses and costs.

For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent
applications, trade names, trademarks, service marks, copyrights, mask works, trade
secrets, and similar types of intangible assets.

This clause does not apply to any item of interest or intangible expenses or costs paid,
accrued, or incurred, directly or indirectly, to a foreign operating corporation with respect
to such item of income to the extent that the income to the foreign operating corporation
is income from sources without the United States as defined in subtitle A, chapter 1,
subchapter N, part 1, of the Internal Revenue Code;

(21) except as already included in the taxpayer's taxable income pursuant to clause
(20), any interest income and income generated from intangible property received or
accrued by a foreign operating corporation that is a member of the taxpayer's unitary
group. For purposes of this clause, income generated from intangible property includes:

(i) income related to the direct or indirect acquisition, use, maintenance or
management, ownership, sale, exchange, or any other disposition of intangible property;

(ii) income from factoring transactions or discounting transactions;

(iii) royalty, patent, technical, and copyright fees;

(iv) licensing fees; and

(v) other similar income.

For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent
applications, trade names, trademarks, service marks, copyrights, mask works, trade
secrets, and similar types of intangible assets.

This clause does not apply to any item of interest or intangible income received or accrued
by a foreign operating corporation with respect to such item of income to the extent that
the income is income from sources without the United States as defined in subtitle A,
chapter 1, subchapter N, part 1, of the Internal Revenue Code;

(22) the dividends attributable to the income of a foreign operating corporation that
is a member of the taxpayer's unitary group in an amount that is equal to the dividends
paid deduction of a real estate investment trust under section 561(a) of the Internal
Revenue Code for amounts paid or accrued by the real estate investment trust to the
foreign operating corporation;

(23) the income of a foreign operating corporation that is a member of the taxpayer's
unitary group in an amount that is equal to gains derived from the sale of real or personal
property located in the United States; deleted text begin and
deleted text end

(24) the additional amount allowed as a deduction for donation of computer
technology and equipment under section 170(e)(6) of the Internal Revenue Code, to the
extent deducted from taxable incomenew text begin ; and
new text end

new text begin (25) discharge of indebtedness income resulting from reacquisition of business
indebtedness and deferred under section 108(i) of the Internal Revenue Codenew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years ending after
December 31, 2008.
 new text end

Sec. 6.

Minnesota Statutes 2008, section 290.01, subdivision 19d, as amended by Laws
2009, chapter 12, article 1, section 5, is amended to read:


Subd. 19d.

Corporations; modifications decreasing federal taxable income.

For
corporations, there shall be subtracted from federal taxable income after the increases
provided in subdivision 19c:

(1) the amount of foreign dividend gross-up added to gross income for federal
income tax purposes under section 78 of the Internal Revenue Code;

(2) the amount of salary expense not allowed for federal income tax purposes due to
claiming the work opportunity credit under section 51 of the Internal Revenue Code;

(3) any dividend (not including any distribution in liquidation) paid within the
taxable year by a national or state bank to the United States, or to any instrumentality of
the United States exempt from federal income taxes, on the preferred stock of the bank
owned by the United States or the instrumentality;

(4) amounts disallowed for intangible drilling costs due to differences between
this chapter and the Internal Revenue Code in taxable years beginning before January
1, 1987, as follows:

(i) to the extent the disallowed costs are represented by physical property, an amount
equal to the allowance for depreciation under Minnesota Statutes 1986, section 290.09,
subdivision 7, subject to the modifications contained in subdivision 19e; and

(ii) to the extent the disallowed costs are not represented by physical property, an
amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section
290.09, subdivision 8;

(5) the deduction for capital losses pursuant to sections 1211 and 1212 of the
Internal Revenue Code, except that:

(i) for capital losses incurred in taxable years beginning after December 31, 1986,
capital loss carrybacks shall not be allowed;

(ii) for capital losses incurred in taxable years beginning after December 31, 1986,
a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be
allowed;

(iii) for capital losses incurred in taxable years beginning before January 1, 1987, a
capital loss carryback to each of the three taxable years preceding the loss year, subject to
the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed; and

(iv) for capital losses incurred in taxable years beginning before January 1, 1987,
a capital loss carryover to each of the five taxable years succeeding the loss year to the
extent such loss was not used in a prior taxable year and subject to the provisions of
Minnesota Statutes 1986, section 290.16, shall be allowed;

(6) an amount for interest and expenses relating to income not taxable for federal
income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and
expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or
291 of the Internal Revenue Code in computing federal taxable income;

(7) in the case of mines, oil and gas wells, other natural deposits, and timber for
which percentage depletion was disallowed pursuant to subdivision 19c, clause (9), a
reasonable allowance for depletion based on actual cost. In the case of leases the deduction
must be apportioned between the lessor and lessee in accordance with rules prescribed
by the commissioner. In the case of property held in trust, the allowable deduction must
be apportioned between the income beneficiaries and the trustee in accordance with the
pertinent provisions of the trust, or if there is no provision in the instrument, on the basis
of the trust's income allocable to each;

(8) for certified pollution control facilities placed in service in a taxable year
beginning before December 31, 1986, and for which amortization deductions were elected
under section 169 of the Internal Revenue Code of 1954, as amended through December
31, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes
1986, section 290.09, subdivision 7;

(9) amounts included in federal taxable income that are due to refunds of income,
excise, or franchise taxes based on net income or related minimum taxes paid by the
corporation to Minnesota, another state, a political subdivision of another state, the
District of Columbia, or a foreign country or possession of the United States to the extent
that the taxes were added to federal taxable income under section 290.01, subdivision 19c,
clause (1), in a prior taxable year;

(10) 80 percent of royalties, fees, or other like income accrued or received from a
foreign operating corporation or a foreign corporation which is part of the same unitary
business as the receiving corporation, unless the income resulting from such payments or
accruals is income from sources within the United States as defined in subtitle A, chapter
1, subchapter N, part 1, of the Internal Revenue Code;

(11) income or gains from the business of mining as defined in section 290.05,
subdivision 1, clause (a), that are not subject to Minnesota franchise tax;

(12) the amount of disability access expenditures in the taxable year which are not
allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;

(13) the amount of qualified research expenses not allowed for federal income tax
purposes under section 280C(c) of the Internal Revenue Code, but only to the extent that
the amount exceeds the amount of the credit allowed under section 290.068;

(14) the amount of salary expenses not allowed for federal income tax purposes due
to claiming the Indian employment credit under section 45A(a) of the Internal Revenue
Code;

(15) for taxable years beginning before January 1, 2008, the amount of the federal
small ethanol producer credit allowed under section 40(a)(3) of the Internal Revenue Code
which is included in gross income under section 87 of the Internal Revenue Code;

(16) for a corporation whose foreign sales corporation, as defined in section 922
of the Internal Revenue Code, constituted a foreign operating corporation during any
taxable year ending before January 1, 1995, and a return was filed by August 15, 1996,
claiming the deduction under section 290.21, subdivision 4, for income received from
the foreign operating corporation, an amount equal to 1.23 multiplied by the amount of
income excluded under section 114 of the Internal Revenue Code, provided the income is
not income of a foreign operating company;

(17) any decrease in subpart F income, as defined in section 952(a) of the Internal
Revenue Code, for the taxable year when subpart F income is calculated without regard to
the provisions of Division C, title III, section 304(a)(1)-(2) of Public Law 110-343;

(18) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19c, clause (15), an amount equal to one-fifth of
the delayed depreciation. For purposes of this clause, "delayed depreciation" means the
amount of the addition made by the taxpayer under subdivision 19c, clause (15). The
resulting delayed depreciation cannot be less than zero; deleted text begin anddeleted text end

(19) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19c, clause (16), an amount equal to one-fifth of
the amount of the additionnew text begin ; and
new text end

new text begin (20) to the extent included in federal taxable income, discharge of indebtedness
income resulting from reacquisition of business indebtedness included in federal taxable
income under section 108(i) of the Internal Revenue Code. This subtraction applies only
to the extent that the income was included in net income in a prior year as a result of the
addition under section 290.01, subdivision 19c, clause (25)new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years ending after
December 31, 2008.
 new text end

Sec. 7.

Minnesota Statutes 2008, section 290.01, subdivision 31, as amended by Laws
2009, chapter 12, article 1, section 7, is amended to read:


Subd. 31.

Internal Revenue Code.

Unless specifically defined otherwise, "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through deleted text begin December
31, 2008deleted text end new text begin March 31, 2009new text end . Internal Revenue Code also includes any uncodified provision
in federal law that relates to provisions of the Internal Revenue Code that are incorporated
into Minnesota law.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
except the changes incorporated by federal changes are effective at the same time as the
changes were effective for federal purposes.
 new text end

Sec. 8.

Minnesota Statutes 2008, section 290.06, subdivision 2c, is amended to read:


Subd. 2c.

Schedules of rates for individuals, estates, and trusts.

(a) The income
taxes imposed by this chapter upon married individuals filing joint returns and surviving
spouses as defined in section 2(a) of the Internal Revenue Code must be computed by
applying to their taxable net income the following schedule of rates:

(1) On the first $25,680, 5.35 percent;

(2) On all over $25,680, but not over $102,030, 7.05 percent;

(3) On all over $102,030, 7.85 percent.

Married individuals filing separate returns, estates, and trusts must compute their
income tax by applying the above rates to their taxable income, except that the income
brackets will be one-half of the above amounts.

(b) The income taxes imposed by this chapter upon unmarried individuals must be
computed by applying to taxable net income the following schedule of rates:

(1) On the first $17,570, 5.35 percent;

(2) On all over $17,570, but not over $57,710, 7.05 percent;

(3) On all over $57,710, 7.85 percent.

(c) The income taxes imposed by this chapter upon unmarried individuals qualifying
as a head of household as defined in section 2(b) of the Internal Revenue Code must be
computed by applying to taxable net income the following schedule of rates:

(1) On the first $21,630, 5.35 percent;

(2) On all over $21,630, but not over $86,910, 7.05 percent;

(3) On all over $86,910, 7.85 percent.

(d) In lieu of a tax computed according to the rates set forth in this subdivision, the
tax of any individual taxpayer whose taxable net income for the taxable year is less than
an amount determined by the commissioner must be computed in accordance with tables
prepared and issued by the commissioner of revenue based on income brackets of not
more than $100. The amount of tax for each bracket shall be computed at the rates set
forth in this subdivision, provided that the commissioner may disregard a fractional part of
a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.

(e) An individual who is not a Minnesota resident for the entire year must compute
the individual's Minnesota income tax as provided in this subdivision. After the
application of the nonrefundable credits provided in this chapter, the tax liability must
then be multiplied by a fraction in which:

(1) the numerator is the individual's Minnesota source federal adjusted gross income
as defined in section 62 of the Internal Revenue Code and increased by the additions
required under section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12),
deleted text begin anddeleted text end (13)new text begin , and (16),new text end and reduced by the Minnesota assignable portion of the subtraction
for United States government interest under section 290.01, subdivision 19b, clause (1),
and the subtractions under section 290.01, subdivision 19b, clauses (9), (10), (14), (15),
deleted text begin anddeleted text end (16)new text begin , and (18)new text end , after applying the allocation and assignability provisions of section
290.081, clause (a), or 290.17; and

(2) the denominator is the individual's federal adjusted gross income as defined in
section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in
section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12), deleted text begin anddeleted text end (13)new text begin , and (16),new text end
and reduced by the amounts specified in section 290.01, subdivision 19b, clauses (1),
(9), (10), (14), (15), deleted text begin anddeleted text end (16)new text begin , and (18)new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years ending after
December 31, 2008.
 new text end

Sec. 9.

Minnesota Statutes 2008, section 290.091, subdivision 2, is amended to read:


Subd. 2.

Definitions.

For purposes of the tax imposed by this section, the following
terms have the meanings given:

(a) "Alternative minimum taxable income" means the sum of the following for
the taxable year:

(1) the taxpayer's federal alternative minimum taxable income as defined in section
55(b)(2) of the Internal Revenue Code;

(2) the taxpayer's itemized deductions allowed in computing federal alternative
minimum taxable income, but excluding:

(i) the charitable contribution deduction under section 170 of the Internal Revenue
Code;

(ii) the medical expense deduction;

(iii) the casualty, theft, and disaster loss deduction; and

(iv) the impairment-related work expenses of a disabled person;

(3) for depletion allowances computed under section 613A(c) of the Internal
Revenue Code, with respect to each property (as defined in section 614 of the Internal
Revenue Code), to the extent not included in federal alternative minimum taxable income,
the excess of the deduction for depletion allowable under section 611 of the Internal
Revenue Code for the taxable year over the adjusted basis of the property at the end of the
taxable year (determined without regard to the depletion deduction for the taxable year);

(4) to the extent not included in federal alternative minimum taxable income, the
amount of the tax preference for intangible drilling cost under section 57(a)(2) of the
Internal Revenue Code determined without regard to subparagraph (E);

(5) to the extent not included in federal alternative minimum taxable income, the
amount of interest income as provided by section 290.01, subdivision 19a, clause (1); and

(6) the amount of addition required by section 290.01, subdivision 19a, clauses (7)
to (9), (12), deleted text begin anddeleted text end (13)new text begin , and (16)new text end ;

less the sum of the amounts determined under the following:

(1) interest income as defined in section 290.01, subdivision 19b, clause (1);

(2) an overpayment of state income tax as provided by section 290.01, subdivision
19b, clause (2), to the extent included in federal alternative minimum taxable income;

(3) the amount of investment interest paid or accrued within the taxable year on
indebtedness to the extent that the amount does not exceed net investment income, as
defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include
amounts deducted in computing federal adjusted gross income; and

(4) amounts subtracted from federal taxable income as provided by section 290.01,
subdivision 19b, clauses (6) deleted text begin anddeleted text end new text begin ,new text end (9) to (16)new text begin , and (18)new text end .

In the case of an estate or trust, alternative minimum taxable income must be
computed as provided in section 59(c) of the Internal Revenue Code.

(b) "Investment interest" means investment interest as defined in section 163(d)(3)
of the Internal Revenue Code.

(c) "Tentative minimum tax" equals 6.4 percent of alternative minimum taxable
income after subtracting the exemption amount determined under subdivision 3.

(d) "Regular tax" means the tax that would be imposed under this chapter (without
regard to this section and section 290.032), reduced by the sum of the nonrefundable
credits allowed under this chapter.

(e) "Net minimum tax" means the minimum tax imposed by this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008.
 new text end

Sec. 10.

Minnesota Statutes 2008, section 290A.03, subdivision 15, as amended by
Laws 2009, chapter 12, article 1, section 10, is amended to read:


Subd. 15.

Internal Revenue Code.

"Internal Revenue Code" means the Internal
Revenue Code of 1986, as amended through deleted text begin December 31, 2008deleted text end new text begin March 31, 2009new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property tax refunds based on
property taxes payable after December 31, 2009, and rent paid after December 31, 2008,
and thereafter.
 new text end

Sec. 11.

Minnesota Statutes 2008, section 291.005, subdivision 1, as amended by Laws
2009, chapter 12, article 1, section 11, is amended to read:


Subdivision 1.

Scope.

Unless the context otherwise clearly requires, the following
terms used in this chapter shall have the following meanings:

(1) "Federal gross estate" means the gross estate of a decedent as valued and
otherwise determined for federal estate tax purposes by federal taxing authorities pursuant
to the provisions of the Internal Revenue Code.

(2) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
excluding therefrom any property included therein which has its situs outside Minnesota,
and (b) including therein any property omitted from the federal gross estate which is
includable therein, has its situs in Minnesota, and was not disclosed to federal taxing
authorities.

(3) "Personal representative" means the executor, administrator or other person
appointed by the court to administer and dispose of the property of the decedent. If there
is no executor, administrator or other person appointed, qualified, and acting within this
state, then any person in actual or constructive possession of any property having a situs in
this state which is included in the federal gross estate of the decedent shall be deemed
to be a personal representative to the extent of the property and the Minnesota estate tax
due with respect to the property.

(4) "Resident decedent" means an individual whose domicile at the time of death
was in Minnesota.

(5) "Nonresident decedent" means an individual whose domicile at the time of
death was not in Minnesota.

(6) "Situs of property" means, with respect to real property, the state or country in
which it is located; with respect to tangible personal property, the state or country in which
it was normally kept or located at the time of the decedent's death; and with respect to
intangible personal property, the state or country in which the decedent was domiciled
at death.

(7) "Commissioner" means the commissioner of revenue or any person to whom the
commissioner has delegated functions under this chapter.

(8) "Internal Revenue Code" means the United States Internal Revenue Code of
1986, as amended through deleted text begin December 31, 2008deleted text end new text begin March 31, 2009new text end .

(9) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as
defined by section 2011(b)(3) of the Internal Revenue Code, increased by the amount of
deduction for state death taxes allowed under section 2058 of the Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
except the changes incorporated by federal changes are effective at the same time as the
changes were effective for federal purposes.
 new text end

ARTICLE 3

SALES AND EXCISE TAXES

Section 1.

Minnesota Statutes 2008, section 297A.64, subdivision 2, is amended to
read:


Subd. 2.

Fee imposed.

new text begin (a) new text end A fee equal to five percent of the sales price is imposed
on leases or rentals of vehicles subject to the tax under subdivision 1. The lessor on the
invoice to the customer may designate the fee as "a fee imposed by the State of Minnesota
for the registration of rental cars."

new text begin (b) The provisions of this subdivision do not apply to the vehicles of a nonprofit
corporation or similar entity, consisting of individual or group members who pay the
organization for the use of a motor vehicle, if the organization:
 new text end

new text begin (1) owns or leases a fleet of vehicles of the type subject to the tax under subdivision 1
that are available to its members for use, priced on the basis of intervals of one hour or less;
 new text end

new text begin (2) parks its vehicles at unstaffed, self-service locations that are accessible at any
time of the day;
 new text end

new text begin (3) maintains its vehicles, insures its vehicles on behalf of its members, and
purchases fuel for its fleet; and
 new text end

new text begin (4) does not charge usage rates that decline on a per unit basis, whether specified
based on distance or time.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009, and applies to
registrations made or renewed on or after that date.
 new text end

Sec. 2.

Minnesota Statutes 2008, section 297A.66, is amended by adding a subdivision
to read:


new text begin Subd. 4a. new text end

new text begin Solicitor. new text end

new text begin (a) "Solicitor," for purposes of subdivision 1, paragraph (a),
means a person, whether an independent contractor or other representative, who directly
or indirectly solicits business for the retailer.
 new text end

new text begin (b) A retailer is presumed to have a solicitor in this state if it enters into an agreement
with a resident under which the resident, for a commission or other consideration, directly
or indirectly refers potential customers, whether by a link on an Internet Web site, or
otherwise, to the seller. This paragraph only applies if the total gross receipts from
sales to customers located in the state who were referred to the retailer by all residents
with this type of agreement with the retailer is at least $10,000 in the 12-month period
ending on the last day of the most recent calendar quarter before the calendar quarter in
which the sale is made.
 new text end

new text begin (c) The presumption under paragraph (b) may be rebutted by proof that the resident
with whom the seller has an agreement did not engage in any solicitation in the state
on behalf of the retailer that would satisfy the nexus requirement of the United States
Constitution during the 12-month period in question. Nothing in this section shall be
construed to narrow the scope of the terms affiliate, agent, salesperson, canvasser, or other
representative for purposes of subdivision 1, paragraph (a).
 new text end

new text begin (d) For purposes of this paragraph, "resident" includes an individual who is a
resident of this state, as defined in section 290.01, or a business that owns tangible
personal property located in this state or has one or more employees providing services
for it in this state.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2009.
 new text end

Sec. 3.

Minnesota Statutes 2008, section 297A.68, subdivision 5, is amended to read:


Subd. 5.

Capital equipment.

(a) Capital equipment is exempt. deleted text begin The tax must be
imposed and collected as if the rate under section 297A.62, subdivision 1, applied, and
then refunded in the manner provided in section 297A.75.
deleted text end

"Capital equipment" means machinery and equipment purchased or leased, and used
in this state by the purchaser or lessee primarily for manufacturing, fabricating, mining,
or refining tangible personal property to be sold ultimately at retail if the machinery and
equipment are essential to the integrated production process of manufacturing, fabricating,
mining, or refining. Capital equipment also includes machinery and equipment
used primarily to electronically transmit results retrieved by a customer of an online
computerized data retrieval system.

(b) Capital equipment includes, but is not limited to:

(1) machinery and equipment used to operate, control, or regulate the production
equipment;

(2) machinery and equipment used for research and development, design, quality
control, and testing activities;

(3) environmental control devices that are used to maintain conditions such as
temperature, humidity, light, or air pressure when those conditions are essential to and are
part of the production process;

(4) materials and supplies used to construct and install machinery or equipment;

(5) repair and replacement parts, including accessories, whether purchased as spare
parts, repair parts, or as upgrades or modifications to machinery or equipment;

(6) materials used for foundations that support machinery or equipment;

(7) materials used to construct and install special purpose buildings used in the
production process;

(8) ready-mixed concrete equipment in which the ready-mixed concrete is mixed
as part of the delivery process regardless if mounted on a chassis, repair parts for
ready-mixed concrete trucks, and leases of ready-mixed concrete trucks; and

(9) machinery or equipment used for research, development, design, or production
of computer software.

(c) Capital equipment does not include the following:

(1) motor vehicles taxed under chapter 297B;

(2) machinery or equipment used to receive or store raw materials;

(3) building materials, except for materials included in paragraph (b), clauses (6)
and (7);

(4) machinery or equipment used for nonproduction purposes, including, but not
limited to, the following: plant security, fire prevention, first aid, and hospital stations;
support operations or administration; pollution control; and plant cleaning, disposal of
scrap and waste, plant communications, space heating, cooling, lighting, or safety;

(5) farm machinery and aquaculture production equipment as defined by section
297A.61, subdivisions 12 and 13;

(6) machinery or equipment purchased and installed by a contractor as part of an
improvement to real property;

(7) machinery and equipment used by restaurants in the furnishing, preparing, or
serving of prepared foods as defined in section 297A.61, subdivision 31;

(8) machinery and equipment used to furnish the services listed in section 297A.61,
subdivision 3, paragraph (g), clause (6), items (i) to (vi) and (viii);

(9) machinery or equipment used in the transportation, transmission, or distribution
of petroleum, liquefied gas, natural gas, water, or steam, in, by, or through pipes, lines,
tanks, mains, or other means of transporting those products. This clause does not apply to
machinery or equipment used to blend petroleum or biodiesel fuel as defined in section
239.77; or

(10) any other item that is not essential to the integrated process of manufacturing,
fabricating, mining, or refining.

(d) For purposes of this subdivision:

(1) "Equipment" means independent devices or tools separate from machinery but
essential to an integrated production process, including computers and computer software,
used in operating, controlling, or regulating machinery and equipment; and any subunit or
assembly comprising a component of any machinery or accessory or attachment parts of
machinery, such as tools, dies, jigs, patterns, and molds.

(2) "Fabricating" means to make, build, create, produce, or assemble components or
property to work in a new or different manner.

(3) "Integrated production process" means a process or series of operations through
which tangible personal property is manufactured, fabricated, mined, or refined. For
purposes of this clause, (i) manufacturing begins with the removal of raw materials
from inventory and ends when the last process prior to loading for shipment has been
completed; (ii) fabricating begins with the removal from storage or inventory of the
property to be assembled, processed, altered, or modified and ends with the creation
or production of the new or changed product; (iii) mining begins with the removal of
overburden from the site of the ores, minerals, stone, peat deposit, or surface materials and
ends when the last process before stockpiling is completed; and (iv) refining begins with
the removal from inventory or storage of a natural resource and ends with the conversion
of the item to its completed form.

(4) "Machinery" means mechanical, electronic, or electrical devices, including
computers and computer software, that are purchased or constructed to be used for the
activities set forth in paragraph (a), beginning with the removal of raw materials from
inventory through completion of the product, including packaging of the product.

(5) "Machinery and equipment used for pollution control" means machinery and
equipment used solely to eliminate, prevent, or reduce pollution resulting from an activity
described in paragraph (a).

(6) "Manufacturing" means an operation or series of operations where raw materials
are changed in form, composition, or condition by machinery and equipment and which
results in the production of a new article of tangible personal property. For purposes of
this subdivision, "manufacturing" includes the generation of electricity or steam to be
sold at retail.

(7) "Mining" means the extraction of minerals, ores, stone, or peat.

(8) "Online data retrieval system" means a system whose cumulation of information
is equally available and accessible to all its customers.

(9) "Primarily" means machinery and equipment used 50 percent or more of the time
in an activity described in paragraph (a).

(10) "Refining" means the process of converting a natural resource to an intermediate
or finished product, including the treatment of water to be sold at retail.

(11) This subdivision does not apply to telecommunications equipment as
provided in subdivision 35, and does not apply to wire, cable, fiber, poles, or conduit
for telecommunications services.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases after
December 31, 2009.
 new text end

Sec. 4.

Minnesota Statutes 2008, section 297A.71, is amended by adding a subdivision
to read:


new text begin Subd. 41. new text end

new text begin Construction materials; meat processing facility. new text end

new text begin Materials and
supplies used or consumed in, and equipment incorporated into, the construction or
improvement of a meat processing facility are exempt. This facility must be constructed to
replace a meat processing facility destroyed in a fire in April 2009, that employed more
than 200 employees at the time of the destruction. The tax must be imposed and collected
as if the rate under section 297A.62, subdivision 1, applied and then refunded after June
30, 2011, in the manner provided in section 297A.75.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
April 30, 2009.
 new text end

Sec. 5.

Minnesota Statutes 2008, section 297A.75, subdivision 1, is amended to read:


Subdivision 1.

Tax collected.

The tax on the gross receipts from the sale of the
following exempt items must be imposed and collected as if the sale were taxable and the
rate under section 297A.62, subdivision 1, applied. The exempt items include:

(1) deleted text begin capital equipment exempt under section 297A.68, subdivision 5;
deleted text end

deleted text begin (2)deleted text end building materials for an agricultural processing facility exempt under section
297A.71, subdivision 13;

deleted text begin (3)deleted text end new text begin (2)new text end building materials for mineral production facilities exempt under section
297A.71, subdivision 14;

deleted text begin (4)deleted text end new text begin (3)new text end building materials for correctional facilities under section 297A.71,
subdivision 3;

deleted text begin (5)deleted text end new text begin (4)new text end building materials used in a residence for disabled veterans exempt under
section 297A.71, subdivision 11;

deleted text begin (6)deleted text end new text begin (5)new text end elevators and building materials exempt under section 297A.71, subdivision
12;

deleted text begin (7)deleted text end new text begin (6)new text end building materials for the Long Lake Conservation Center exempt under
section 297A.71, subdivision 17;

deleted text begin (8) materials, supplies, fixtures, furnishings, and equipment for a county law
enforcement and family service center under section 297A.71, subdivision 26;
 deleted text end

deleted text begin (9)deleted text end new text begin (7)new text end materials and supplies for qualified low-income housing under section
297A.71, subdivision 23;

deleted text begin (10)deleted text end new text begin (8)new text end materials, supplies, and equipment for municipal electric utility facilities
under section 297A.71, subdivision 35;

deleted text begin (11)deleted text end new text begin (9)new text end equipment and materials used for the generation, transmission, and
distribution of electrical energy and an aerial camera package exempt under section
297A.68, subdivision 37;

deleted text begin (12)deleted text end new text begin (10)new text end tangible personal property and taxable services and construction materials,
supplies, and equipment exempt under section 297A.68, subdivision 41;

deleted text begin (13)deleted text end new text begin (11)new text end commuter rail vehicle and repair parts under section 297A.70, subdivision
3, clause (11); deleted text begin and
deleted text end

deleted text begin (14)deleted text end new text begin (12)new text end materials, supplies, and equipment for construction or improvement of
projects and facilities under section 297A.71, subdivision 40deleted text begin .deleted text end new text begin ; and
new text end

new text begin (13) materials, supplies, and equipment for construction or improvement of a meat
processing facility exempt under section 297A.71, subdivision 41.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases after
December 31, 2009, except that clause (13) is effective for sales and purchases beginning
after April 30, 2009.
 new text end

Sec. 6.

Minnesota Statutes 2008, section 297A.75, subdivision 2, is amended to read:


Subd. 2.

Refund; eligible persons.

Upon application on forms prescribed by the
commissioner, a refund equal to the tax paid on the gross receipts of the exempt items
must be paid to the applicant. Only the following persons may apply for the refund:

(1) for subdivision 1, clauses (1) deleted text begin to (3)deleted text end new text begin , (2) and (13)new text end , the applicant must be the
purchaser;

(2) for subdivision 1, clauses deleted text begin (4), (7),deleted text end new text begin (3)new text end and deleted text begin (8)deleted text end new text begin (6)new text end , the applicant must be the
governmental subdivision;

(3) for subdivision 1, clause deleted text begin (5)deleted text end new text begin (4)new text end , the applicant must be the recipient of the
benefits provided in United States Code, title 38, chapter 21;

(4) for subdivision 1, clause deleted text begin (6)deleted text end new text begin (5)new text end , the applicant must be the owner of the
homestead property;

(5) for subdivision 1, clause deleted text begin (9)deleted text end new text begin (7)new text end , the owner of the qualified low-income housing
project;

(6) for subdivision 1, clause deleted text begin (10)deleted text end new text begin (8)new text end , the applicant must be a municipal electric
utility or a joint venture of municipal electric utilities;

(7) for subdivision 1, clauses deleted text begin (11)deleted text end new text begin (9)new text end and deleted text begin (12)deleted text end new text begin (10)new text end , the owner of the qualifying
business; and

(8) for subdivision 1, clauses (13) and (14), the applicant must be the governmental
entity that owns or contracts for the project or facility.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases after
December 31, 2009, except that clause (1) related to section 297A.71, subdivision 41, is
effective for sales and purchases beginning after April 30, 2009.
 new text end

Sec. 7.

Minnesota Statutes 2008, section 297A.75, subdivision 3, is amended to read:


Subd. 3.

Application.

(a) The application must include sufficient information
to permit the commissioner to verify the tax paid. If the tax was paid by a contractor,
subcontractor, or builder, under subdivision 1, clause new text begin (3), new text end (4), (5), (6), (7), (8), (9), (10),
(11), new text begin or new text end (12), deleted text begin (13), or (14),deleted text end the contractor, subcontractor, or builder must furnish to the
refund applicant a statement including the cost of the exempt items and the taxes paid on
the items unless otherwise specifically provided by this subdivision. The provisions of
sections 289A.40 and 289A.50 apply to refunds under this section.

(b) deleted text begin An applicant may not file more than two applications per calendar year for
refunds for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.
deleted text end

deleted text begin (c)deleted text end Total refunds for purchases of items in section 297A.71, subdivision 40, must not
exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases
of items in sections 297A.70, subdivision 3, paragraph (a), clause (11), and 297A.71,
subdivision 40, must not be filed until after June 30, 2009.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases after
December 31, 2009.
 new text end

Sec. 8.

Laws 1986, chapter 400, section 44, as amended by Laws 1995, chapter 264,
article 2, section 39, is amended to read:


Sec. 44. DOWNTOWN TAXING AREA.

If a bill is enacted into law in the 1986 legislative session which authorizes the city
of Minneapolis to issue bonds and expend certain funds including taxes to finance the
acquisition and betterment of a convention center and related facilities, which authorizes
certain taxes to be levied in a downtown taxing area, then, notwithstanding the provisions
of that law "downtown taxing area" shall mean the geographic area bounded by the
portion of the Mississippi River between I-35W and Washington Avenue, the portion
of Washington Avenue between the river and I-35W, the portion of I-35W between
Washington Avenue and 8th Street South, the portion of 8th Street South between I-35W
and Portland Avenue South, the portion of Portland Avenue South between 8th Street
South and I-94, the portion of I-94 from the intersection of Portland Avenue South to
the intersection of I-94 and the Burlington Northern Railroad tracks, the portion of the
Burlington Northern Railroad tracks from I-94 to Main Street and including Nicollet
Island, and the portion of Main Street to Hennepin Avenue and the portion of Hennepin
Avenue between Main Street and 2nd Street S.E., and the portion of 2nd Street S.E.
between Main Street and Bank Street, and the portion of Bank Street between 2nd Street
S.E. and University Avenue S.E., and the portion of University Avenue S.E. between Bank
Street and I-35W, and by I-35W from University Avenue S.E., to the river. The downtown
taxing area excludes the area bounded on the south and west by Oak Grove Street, on the
east by Spruce Place, and on the north by West 15th Street.new text begin The downtown taxing area also
excludes any property located in a zone that is contained in chapter 546 of the Minneapolis
Zoning Code of Ordinances, on which a restaurant or liquor establishment is operated.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales made after July 31, 2012,
provided that the proceeds of the tax collected between July 1, 2009, and July 31, 2012,
by a restaurant or liquor establishment that is excluded from the downtown taxing area
by this section, when collected by the commissioner of revenue, shall be deposited in the
general fund of the state treasury.
 new text end

Sec. 9.

Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by
Laws 1998, chapter 389, article 8, section 28, and Laws 2008, chapter 366, article 7,
section 9, is amended to read:


Subd. 3.

Use of revenues.

Revenues received from taxes authorized by subdivisions
1 and 2 shall be used by the city to pay the cost of collecting the tax and to pay all or
a portion of the expenses of constructing and improving facilities as part of an urban
revitalization project in downtown Mankato known as Riverfront 2000. Authorized
expenses include, but are not limited to, acquiring property and paying relocation expenses
related to the development of Riverfront 2000 and related facilities, and securing or paying
debt service on bonds or other obligations issued to finance the construction of Riverfront
2000 and related facilities. For purposes of this section, "Riverfront 2000 and related
facilities" means a civic-convention center, an arena, a riverfront park, a technology center
and related educational facilities, and all publicly owned real or personal property that
the governing body of the city determines will be necessary to facilitate the use of these
facilities, including but not limited to parking, skyways, pedestrian bridges, lighting, and
landscaping. It also includes the performing arts theatre and the Southern Minnesota
Women's Hockey Exposition Center, deleted text begin attached to the Mankato Civic Centerdeleted text end for use by
Minnesota State University, Mankato.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of
the city of Mankato and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
 new text end

Sec. 10.

Laws 1993, chapter 375, article 9, section 46, subdivision 2, as amended by
Laws 1997, chapter 231, article 7, section 40, and Laws 1998, chapter 389, article 8,
section 30, and Laws 2003, First Special Session chapter 21, article 8, section 13, and
Laws 2005, First Special Session chapter 3, article 5, section 26, is amended to read:


Subd. 2.

Use of revenues.

Revenues received from the tax authorized by
subdivision 1 may only be used by the city to pay the cost of collecting the tax, and to pay
for the following projects or to secure or pay any principal, premium, or interest on bonds
issued in accordance with subdivision 3 for the following projects.

(a) To pay all or a portion of the capital expenses of construction, equipment and
acquisition costs for the expansion and remodeling of the St. Paul Civic Center complex,
including the demolition of the existing arena and the construction and equipping of a
new arena.

(b) Except as provided in paragraphs (e) and (f), the remainder of the funds must be
spent for:

(1) capital projects to further residential, cultural, commercial, and economic
development in both downtown St. Paul and St. Paul neighborhoods; and

(2) capital and operating expenses of cultural organizations in the city, provided
that the amount spent under this clause must equal ten percent of the total amount spent
under this paragraph in any year.

(c) The amount apportioned under paragraph (b) shall be no less than 60 percent
of the revenues derived from the tax each year, except to the extent that a portion of that
amount is required to pay debt service on (1) bonds issued for the purposes of paragraph (a)
prior to March 1, 1998; or (2) bonds issued for the purposes of paragraph (a) after March 1,
1998, but only if the city council determines that 40 percent of the revenues derived from
the tax together with other revenues pledged to the payment of the bonds, including the
proceeds of definitive bonds, is expected to exceed the annual debt service on the bonds.

(d) If in any year more than 40 percent of the revenue derived from the tax authorized
by subdivision 1 is used to pay debt service on the bonds issued for the purposes of
paragraph (a) and to fund a reserve for the bonds, the amount of the debt service payment
that exceeds 40 percent of the revenue must be determined for that year. In any year when
40 percent of the revenue produced by the sales tax exceeds the amount required to pay
debt service on the bonds and to fund a reserve for the bonds under paragraph (a), the
amount of the excess must be made available for capital projects to further residential,
cultural, commercial, and economic development in the neighborhoods and downtown
until the cumulative amounts determined for all years under the preceding sentence have
been made available under this sentence. The amount made available as reimbursement in
the preceding sentence is not included in the 60 percent determined under paragraph (c).

(e) In each of calendar years 2006deleted text begin , 2007, 2008, and 2009deleted text end new text begin to 2014new text end , revenue not to
exceed $3,500,000 may be used to pay the principal of bonds issued for capital projects of
the city. After December 31, deleted text begin 2009deleted text end new text begin 2014new text end , revenue from the tax imposed under subdivision
1 may not be used for this purpose.

(f) By January 15 of each year, the mayor and the city council must report to the
legislature on the use of sales tax revenues during the preceding one-year period.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of
the city of St. Paul and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
 new text end

Sec. 11.

Laws 1993, chapter 375, article 9, section 46, is amended by adding a
subdivision to read:


new text begin Subd. 2a. new text end

new text begin Unexpended funds and interest. new text end

new text begin Any interest from loan repayments
or returned funds from revenues apportioned under subdivision 2, paragraph (b), clause
(1), must be made available only for projects qualifying under subdivision 2, paragraph
(b), clause (1).
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of
the city of St. Paul and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
 new text end

Sec. 12.

Laws 1998, chapter 389, article 8, section 37, subdivision 1, is amended to
read:


Subdivision 1.

Requirement.

Expenditures of revenues from the sales tax imposed
by the city of St. Paul that are dedicated to neighborhood investments may be made only
after review of the proposals for expenditures by the citizen review panel described in this
section. new text begin The panel must ensure that the application process for all proposals is open, fair,
and competitive. All proposals must be reviewed by the panel prior to presentation of the
proposal to the city council. new text end The panel must evaluate the proposals and provide a report
to the city council that makes recommendations regarding the proposed expenditures
in rank order.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of
the city of St. Paul and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
 new text end

Sec. 13.

Laws 2002, chapter 377, article 3, section 25, is amended to read:


Sec. 25. ROCHESTER LODGING TAX.

Subdivision 1.

Authorization.

Notwithstanding Minnesota Statutes, section
469.190 or 477A.016, or any other law, the city of Rochester may impose an additional
tax of one percent on the gross receipts from the furnishing for consideration of lodging at
a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing of it
for a continuous period of 30 days or more.

new text begin Subd. 1a. new text end

new text begin Authorization. new text end

new text begin Notwithstanding Minnesota Statutes, section 469.190 or
477A.016, or any other law, and in addition to the tax authorized by subdivision 1, the city
of Rochester may impose an additional tax of one percent on the gross receipts from the
furnishing for consideration of lodging at a hotel, motel, rooming house, tourist court, or
resort, other than the renting or leasing of it for a continuous period of 30 days or more
only upon approval of the city governing body of a total financial package for the project.
 new text end

Subd. 2.

Disposition of proceeds.

new text begin (a) new text end The gross proceeds from deleted text begin anydeleted text end new text begin thenew text end tax imposed
under subdivision 1 must be used by the city to fund a local convention or tourism bureau
for the purpose of marketing and promoting the city as a tourist or convention center.

new text begin (b) The gross proceeds from the one percent tax imposed under subdivision 1a
shall be used to pay for: (1) construction, renovation, improvement, and expansion of
the Mayo Civic Center and related skyway access, lighting, or landscaping; and (2) for
payment of any principal, interest, or premium on bonds issued to finance the Mayo
Civic Center Complex.
 new text end

new text begin Subd. 3. new text end

new text begin Expiration of taxing authority. new text end

new text begin The authority of the city to impose a tax
under subdivision 1a shall expire when the principal and interest on any bonds or other
obligations issued to finance the Mayo Civic Center Complex and related skyway access,
lighting, or landscaping described by the design grant authorized pursuant to Laws 2008,
chapter 179, section 21, subdivision 12, have been paid or at an earlier time as the city
shall, by ordinance, determine.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of
the city of Rochester and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
 new text end

Sec. 14.

Laws 2006, chapter 259, article 3, section 12, subdivision 3, is amended to
read:


Subd. 3.

Use of revenues.

Revenues received from the taxes authorized by
subdivisions 1 and 2 must be used to pay all or part of the capital costs of transportation
projects included in the 2004 U.S. Highway 14-Owatonna Beltline Study by the Minnesota
Department of Transportation, Steele County, and the city of Owatonna; regional parks
and trail developments; and the West Hills complex, including the firehall, and library
improvement projects; as described in the city resolution No. 4-06, Exhibit A, as adopted
by the city on January 17, 2006. new text begin Notwithstanding the specific transportation projects
described in city resolution No. 4-06, Exhibit A, the city may transfer up to $1,500,000
of the sales and use tax revenues from the Alexander Street to 39th Avenue Southwest
project to the reconstruction of 18th Street Southwest from 24th Avenue Southwest to 39th
Avenue West. new text end The amount paid from these revenues for transportation projects may not
exceed $4,450,000 plus associated bond costs. The amount paid from these revenues for
park and trail projects may not exceed $5,400,000 plus associated bond costs. The amount
paid from these revenues for West Hills complex, fire hall, and library improvement
projects may not exceed $2,823,000 plus associated bond costs.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of
the city of Owatonna complies with Minnesota Statutes, section 645.021, subdivision 3.
 new text end

Sec. 15.

Laws 2008, chapter 366, article 7, section 16, subdivision 3, is amended to
read:


Subd. 3.

Use of proceeds from authorized taxes.

The proceeds of any tax imposed
under subdivisions 1 and 2 shall be used by the city to pay all or a portion of the expenses
of operation and maintenance of the Riverfront 2000 and related facilities, including a
performing arts theatre and the Southern Minnesota Women's Hockey Exposition Center,
deleted text begin attached to the Mankato Civic Centerdeleted text end for use by Minnesota State University, Mankato.
Authorized expenses include securing or paying debt service on bonds or other obligations
issued to finance the construction of the facilities.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of
the city of Mankato and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
 new text end

Sec. 16.

Laws 2008, chapter 366, article 7, section 18, subdivision 2, is amended to
read:


Subd. 2.

Use of revenues.

Revenues received from the tax authorized by
subdivision 1 must be used by Cook County to pay the costs of collecting the tax and
to pay for the following projects:

(1) construction deleted text begin anddeleted text end new text begin ,new text end improvementsnew text begin , and additionsnew text end to deleted text begin a countydeleted text end community deleted text begin centerdeleted text end new text begin
centers new text end and new text begin public new text end recreation deleted text begin areadeleted text end new text begin areasnew text end , including, but not limited to, improvements and
additions to the deleted text begin skateboard park, hockey rink, ball fields, community center addition,
countydeleted text end new text begin publicnew text end parking deleted text begin area, tennis courts, and all associated improvementsdeleted text end new text begin areasnew text end ; deleted text begin and
deleted text end

(2) construction new text begin of new text end and improvements to the Grand Marais Public Librarynew text begin ;
new text end

new text begin (3) construction and improvement of a countywide high-speed communications
infrastructure network; and
 new text end

new text begin (4) construction and improvement of a district energy plant for public facilities in
Grand Maraisnew text end .

Authorized expenses include, but are not limited to, paying construction expenses related
to these improvements, and paying debt service on bonds or other obligations issued to
finance acquisition and construction of these improvements. The total amount of revenues
from the taxes in subdivision 1 that may be used to fund these projects is deleted text begin $14,000,000deleted text end new text begin
$20,000,000 new text end plus any associated bond costs.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body
of Cook County and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
 new text end

Sec. 17.

Laws 2008, chapter 366, article 7, section 18, subdivision 3, is amended to
read:


Subd. 3.

Bonding authority.

Cook County may issue bonds under Minnesota
Statutes, chapter 475, to pay capital and administrative expenses for the projects
authorized in subdivision 2, in an amount that does not exceed deleted text begin $14,000,000deleted text end new text begin $20,000,000new text end .
An election to approve the bonds under Minnesota Statutes, section 475.58, is not
required. The issuance of bonds under this subdivision is not subject to Minnesota
Statutes, sections 275.60 and 275.61. The debt represented by the bonds is not included
in computing any debt limitation applicable to the county, and any levy of taxes under
Minnesota Statutes, section 475.61, to pay principal and interest on the bonds is not
subject to any levy limitation.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body
of Cook County and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
 new text end

Sec. 18. new text begin ROCHESTER FOOD AND BEVERAGE TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Authorization. new text end

new text begin Notwithstanding Minnesota Statutes, section
477A.016, or any other law or charter provision, the city of Rochester may impose a tax of
one percent on the gross receipts on all sales of food and beverages by restaurants and
places of refreshment, as defined by resolution of the city, that occur in the city. For
purposes of this section, "food and beverages" include retail on-sale of intoxicating liquor
and fermented malt beverages.
 new text end

new text begin Subd. 2. new text end

new text begin Use of proceeds. new text end

new text begin The proceeds of this tax shall be used for: (1) paying the
cost of collection; (2) to pay for construction, renovation, improvement, and expansion
of the Mayo Civic Center Complex and related skyway access, lighting, or landscaping;
and (3) for payment of any principal, interest, or premium on bonds issued to finance
the Mayo Civic Center Complex.
 new text end

new text begin Subd. 3. new text end

new text begin Imposition of the tax. new text end

new text begin The tax under this section may only be imposed
upon approval of the city governing body of a total financing package for the project.
 new text end

new text begin Subd. 4. new text end

new text begin Expiration of taxing authority. new text end

new text begin The authority granted under subdivision
1 to the city to impose a one percent tax on food and beverages shall expire when the
principal and interest on any bonds or other obligations issued to finance the Mayo Civic
Center Complex and related skyway access, lighting, or landscaping described by the
design grant authorized pursuant to Laws 2008, chapter 179, section 21, subdivision 12,
have been paid or at an earlier time as the city shall, by ordinance, determine.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of
the city of Rochester and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3, and upon approval of the city governing body of a total
financing package to renovate, improve, or expand the Mayo Civic Center Complex.
 new text end

ARTICLE 4

PROPERTY TAXES

Section 1.

Minnesota Statutes 2008, section 123B.10, subdivision 1, is amended to read:


Subdivision 1.

Budgets; form of notification.

(a) Every board must publish revenue
and expenditure budgets for the current year and the actual revenues, expenditures, fund
balances for the prior year and projected fund balances for the current year in a form
prescribed by the commissioner within one week of the acceptance of the final audit by
the board, or November 30, whichever is earlier. The forms prescribed must be designed
so that year to year comparisons of revenue, expenditures and fund balances can be made.

(b) A school board annually must notify the public of its revenue, expenditures, fund
balances, and other relevant budget information. The board must deleted text begin include the budget
information required by this section in the materials provided as a part of its truth in
taxation hearing,deleted text end post the materials in a conspicuous place on the district's official Web
site, including a link to the district's school report card on the Department of Education's
Web site, and publish the information in a qualified newspaper of general circulation
in the district.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
 new text end

Sec. 2.

Minnesota Statutes 2008, section 124D.4531, is amended by adding a
subdivision to read:


new text begin Subd. 5. new text end

new text begin Allocation from districts participating in agreements for secondary
education or interdistrict cooperation. new text end

new text begin For purposes of this section, a district with a
career and technical program approved under this section that participates in an agreement
under section 123A.30 or 123A.32 must allocate its levy authority under this section
among participating districts.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxes payable in
2008.
 new text end

Sec. 3.

Minnesota Statutes 2008, section 126C.01, subdivision 3, is amended to read:


Subd. 3.

Referendum market value.

"Referendum market value" means the market
value of all taxable property, excluding property classified as class 2deleted text begin , noncommercial
4c(1), or 4c(4)deleted text end under section 273.13. The portion of class 2a property consisting of the
house, garage, and surrounding one acre of land of an agricultural homestead is included
in referendum market value. Any class of property, or any portion of a class of property,
that is included in the definition of referendum market value and that has a class rate of
less than one percent under section 273.13 shall have a referendum market value equal
to its net tax capacity multiplied by 100.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
 new text end

Sec. 4.

Minnesota Statutes 2008, section 126C.41, subdivision 2, is amended to read:


Subd. 2.

Retired employee health benefits.

A district may levy an amount up to the
amount the district is required by the collective bargaining agreement in effect on March
30, 1992, to pay for health insurance or unreimbursed medical expenses for licensed
and nonlicensed employees who have terminated services in the employing district and
withdrawn from active teaching service or other active service, as applicable, new text begin either (1)
new text end before July 1, new text begin 1992, or (2) before July 1, new text end 1998, new text begin but for employees retiring after June 30,
1992, and before July 1, 1998, only new text end if a sunset clause is in effect for the current collective
bargaining agreement. The total amount of the levy each year may not exceed $600,000.

Sec. 5.

Minnesota Statutes 2008, section 144F.01, subdivision 3, is amended to read:


Subd. 3.

Board.

The special taxing district under this section is governed by a
board made up initially of representatives of each participating political subdivision in
the proportions set out in the establishing resolution, subject to change as provided in the
district's charter, if any, or in the district's bylaws. new text begin If a township states in its resolution that
less than the entire township will participate in the district, the partial townships shall be
represented on the board by only one member, appointed from among those townships
so participating. The method for appointment shall be governed by the bylaws of the
district's joint powers agreement. new text end Each participant's representative serves at the pleasure
of that participant's governing bodynew text begin or bodiesnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 6.

Minnesota Statutes 2008, section 272.02, subdivision 7, is amended to read:


Subd. 7.

Institutions of public charity.

new text begin (a) new text end Institutions of purely public charity new text begin that
are exempt from federal income taxation under section 501(c)(3) of the Internal Revenue
Code new text end are exemptdeleted text begin .deleted text end new text begin if they meet the requirements of this subdivision. In determining
whether real property is exempt under this subdivision, the following factors must be
considered:
new text end

new text begin (1) whether the stated purpose of the undertaking is to be helpful to others without
immediate expectation of material reward;
 new text end

new text begin (2) whether the institution of public charity is supported by material donations, gifts,
or government grants for services to the public in whole or in part;
 new text end

new text begin (3) whether a material number of the recipients of the charity receive benefits or
services at reduced or no cost, or whether the organization provides services to the public
that alleviate burdens or responsibilities that would otherwise be borne by the government;
 new text end

new text begin (4) if income received, including material gifts and donations, that produces a profit
to the charitable institution is not distributed to private interests;
 new text end

new text begin (5) whether the beneficiaries of the charity are restricted or unrestricted, and, if
restricted, whether the class of persons to whom the charity is made available is one
having a reasonable relationship to the charitable objectives; and
 new text end

new text begin (6) whether dividends, in form or substance, or assets upon dissolution, are available
to private interests.
 new text end

new text begin A charitable organization must satisfy the factors in clauses (1) to (6) for its property
to be exempt under this subdivision, unless there is a compelling factual reason for failing
to meet the factors in clause (2), (3), or (5). If there is a compelling factual reason for
failing to meet the factors in clause (2), (3), or (5), an organization is a purely public
charity under this subdivision without meeting those factors.
new text end

new text begin After an exemption is properly granted under this subdivision, it will remain in effect
unless there is a material change in facts.
 new text end

new text begin (b) For purposes of this subdivision, a grant is a written instrument or electronic
document defining a legal relationship between a granting agency and a grantee when
the principal purpose of the relationship is to transfer cash or something of value to the
grantee to support a public purpose authorized by law in a general manner instead of
acquiring by professional or technical contract, purchase, lease, or barter property or
services for the direct benefit or use of the granting agency.
 new text end

new text begin (c)new text end In determining whether rental housing property qualifies for exemption under
this subdivision, the following are not gifts or donations to the owner of the rental housing:

(1) rent assistance provided by the government to or on behalf of tenants; and

(2) financing assistance or tax credits provided by the government to the owner on
condition that specific units or a specific quantity of units be set aside for persons or
families with certain income characteristics.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
 new text end

Sec. 7.

Minnesota Statutes 2008, section 272.02, subdivision 10, is amended to read:


Subd. 10.

Personal property used for pollution control.

Personal property used
primarily for the abatement and control of air, water, or land pollution is exempt to the
extent that it is so used, and real property is exempt if it is used primarily for abatement
and control of air, water, or land pollution as part of an agricultural operation, as a part
of a centralized treatment and recovery facility operating under a permit issued by the
Minnesota Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota
Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, as a wastewater
treatment facility and for the treatment, recovery, and stabilization of metals, oils,
chemicals, water, sludges, or inorganic materials from hazardous industrial wastes, or as
part of an electric generation system. For purposes of this subdivision, personal property
includes ponderous machinery and equipment used in a business or production activity
that at common law is considered real property.

Any taxpayer requesting exemption of all or a portion of any real property or any
equipment or device, or part thereof, operated primarily for the control or abatement of
air, water, or land pollution shall file an application with the commissioner of revenue.
The Minnesota Pollution Control Agency shall upon request of the commissioner furnish
information and advice to the commissioner.

The information and advice furnished by the Minnesota Pollution Control Agency
must include statements as to whether the equipment, device, or real property meets
a standard, rule, criteria, guideline, policy, or order of the Minnesota Pollution Control
Agency, and whether the equipment, device, or real property is installed or operated
in accordance with it. new text begin In the case of an exemption requested under this subdivision
for personal property at an electric generation facility, the commissioner must submit
the advice provided by the Minnesota Pollution Control Agency to the municipality
and the county in which the property is located for their approval. If the county and
municipality do not submit their approval or disapproval to the commissioner within 90
days, the exemption is deemed to be approved. new text end On determining that property qualifies for
exemption, the commissioner shall issue an order exempting the property from taxation.
The equipment, device, or real property shall continue to be exempt from taxation as long
as the order issued by the commissioner remains in effect.

Sec. 8.

Minnesota Statutes 2008, section 272.02, subdivision 86, is amended to read:


Subd. 86.

Apprenticeship training facilities.

All or a portion of a building used
exclusively for a state-approved apprenticeship program through the Department of
Labor and Industry is exempt if (1) it is owned deleted text begin and operateddeleted text end by a nonprofit deleted text begin corporationdeleted text end new text begin
organization or a nonprofit trust, and operated by a nonprofit organization or a nonprofit
trustnew text end , (2) the program participants receive no compensation, and (3) it is located in the
Minneapolis and St. Paul standard metropolitan statistical area as determined by the 2000
federal census or in a city outside the Minneapolis and St. Paul standard metropolitan
statistical area that has a population of 7,500 or greater according to the most recent
federal census. new text begin Use of the property for advanced skills training of incumbent workers does
not disqualify the property for the exemption under this subdivision.new text end This exemption
deleted text begin does not includedeleted text end new text begin includes up to five acres of thenew text end landnew text begin on which the building is located and
associated parking areas on that land. If a parking area associated with the facility is
used for the purposes of the facility and for other purposes, a portion of the parking area
shall be exempt in proportion to the square footage of the facility used for purposes of
apprenticeship trainingnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2009, for taxes
payable in 2010, and thereafter.
 new text end

Sec. 9.

Minnesota Statutes 2008, section 272.02, is amended by adding a subdivision
to read:


new text begin Subd. 90. new text end

new text begin Electric generation facility; personal property. new text end

new text begin Notwithstanding
subdivision 9, clause (a), attached machinery and other personal property which is part
of an electric generation facility that exceeds 150 megawatts of installed capacity, does
not exceed 780 megawatts of summer capacity, and that meets the requirements of this
subdivision is exempt. At the time of construction, the facility must:
 new text end

new text begin (1) be designed to utilize natural gas as a primary fuel;
 new text end

new text begin (2) not be owned by a public utility as defined in section 216B.02, subdivision 4;
 new text end

new text begin (3) be located within five miles of at least two interstate natural gas pipelines;
 new text end

new text begin (4) be located within one mile of an existing electrical transmission substation with
operating alternating current voltages including each of 115 kV, 345kV, and 500 kV;
 new text end

new text begin (5) be designed to provide electrical capacity, energy, and ancillary services and have
satisfied all of the requirements under section 216B.243; and
 new text end

new text begin (6) have executed an interconnection agreement with the Midwest Independent
System Operator that does not require the acquisition of more than one mile of new
electric transmission right-of-way within the county where the property is located.
 new text end

new text begin Construction of the facility must be commenced after March 1, 2010, and before
March 1, 2014. Property eligible for this exemption does not include electric transmission
lines and interconnections or gas pipelines and interconnections appurtenant to the
property or the facility.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2009 and
thereafter, for taxes payable in 2010 and thereafter, subject to subdivision 92.
 new text end

Sec. 10.

Minnesota Statutes 2008, section 272.02, is amended by adding a subdivision
to read:


new text begin Subd. 91. new text end

new text begin Electric generation facility; personal property. new text end

new text begin Notwithstanding
subdivision 9, clause (a), attached machinery and other personal property that is part of
a simple-cycle electric generation facility of more than 40 megawatts and less than 125
megawatts of installed capacity and that meets the requirements of this subdivision is
exempt. At the time of construction, the facility must:
 new text end

new text begin (1) utilize natural gas as a primary fuel;
 new text end

new text begin (2) be located within two miles of parallel existing 36-inch natural gas pipelines and
an existing 115-kilovolt high-voltage electric transmission line;
 new text end

new text begin (3) be designed to provide peaking, emergency backup, or contingency services; and
 new text end

new text begin (4) satisfy a resource deficiency identified in an approved integrated resource plan
filed under section 216B.2422.
 new text end

new text begin Construction of the facility must be commenced after January 1, 2010, and
before January 1, 2014. Property eligible for this exemption does not include electric
transmission lines and interconnections or gas pipelines and interconnections appurtenant
to the property or the facility.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessments in 2011, taxes
payable in 2012, and thereafter, subject to subdivision 92.
 new text end

Sec. 11.

Minnesota Statutes 2008, section 272.02, is amended by adding a subdivision
to read:


new text begin Subd. 92. new text end

new text begin Phaseout of exemptions of personal property of electric generation
facilities. new text end

new text begin Notwithstanding any other law to the contrary, the exemptions provided under
this section for the attached machinery and other personal property of any electric
generation facility will terminate as provided in this subdivision. Each exemption
granted to begin with the 2007 or later assessment year will apply to the full value of the
attached machinery and other personal property for three assessment years; in the case
of an exemption granted beginning with the 2006 or an earlier assessment year, the full
exemption is terminated beginning with the 2009 assessment year. For the first assessment
year after the full exemption is terminated, one-third of the value of the previously
exempted property will be subject to taxation, and an additional one-third will become
taxable in each of the two subsequent assessment years.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessments in 2009 and
thereafter.
 new text end

Sec. 12.

Minnesota Statutes 2008, section 272.02, is amended by adding a subdivision
to read:


new text begin Subd. 93. new text end

new text begin Elderly living facility. new text end

new text begin An elderly living facility is exempt from taxation
if it meets all of the following requirements:
 new text end

new text begin (1) the facility consists of no more than 75 living units;
 new text end

new text begin (2) the facility is located in a city of the first class with a population of more than
350,000;
 new text end

new text begin (3) the facility is owned and operated by a nonprofit corporation organized under
chapter 317A;
new text end

new text begin (4) the owner of the facility is an affiliate of entities that own and operate assisted
living and skilled nursing facilities that:
 new text end

new text begin (i) are located across a street from the facility;
 new text end

new text begin (ii) are adjacent to a church that is exempt from taxation under subdivision 6;
 new text end

new text begin (iii) include a congregate dining program; and
new text end

new text begin (iv) provide assisted living or similar social and physical support;
 new text end

new text begin (5) the residents of the facility must be:
 new text end

new text begin (i) at least 62 years of age; or
 new text end

new text begin (ii) handicapped;
 new text end

new text begin (6) at least 30 percent of the units in the facility are occupied by persons whose
annual income does not exceed 50 percent of median family income for the area; and
new text end

new text begin (7) before the effective date of this subdivision, the facility has received approval of
street vacation and land use applications from the city in which it is to be located.
 new text end

new text begin In this subdivision, "affiliate" means any entity directly or indirectly controlling or
controlled by or under direct or indirect common control with an entity, and "control"
means the power to direct management and policies through membership or ownership
of voting securities.
 new text end

new text begin The exemption provided in this subdivision applies to taxes levied in each year or
partial year of the term of the facility's initial permanent financing or 25 years, whichever
is later.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
 new text end

Sec. 13.

Minnesota Statutes 2008, section 272.02, is amended by adding a subdivision
to read:


new text begin Subd. 94. new text end

new text begin Nursing homes. new text end

new text begin A nursing home licensed under section 144A.02 or a
boarding care home certified as a nursing facility under title 19 of the Social Security
Act that is exempt from federal income taxation pursuant to section 501(c)(3) of the
Internal Revenue Code is exempt from property taxation if the nursing home or boarding
care home either:
 new text end

new text begin (1) is certified to participate in the medical assistance program under title 19 of
the Social Security Act; or
 new text end

new text begin (2) certifies to the commissioner of revenue that it does not discharge residents
due to the inability to pay.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
 new text end

Sec. 14.

Minnesota Statutes 2008, section 272.02, is amended by adding a subdivision
to read:


new text begin Subd. 95. new text end

new text begin Railroad wye connections. new text end

new text begin Any portion of a railroad wye connection,
including the track, ties, ballast, switch gear, and related improvements, is exempt if it
meets all of the following: (1) is publicly owned; (2) is funded, in whole or in part, by
state grants; (3) is located within the metropolitan area as defined in section 473.121,
subdivision 2; (4) includes a single track segment that is no longer than 2,500 feet in
length; (5) connects intersecting rail lines; and (6) is constructed after January 1, 2009.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2009 and
thereafter, for taxes payable in 2010 and thereafter.
 new text end

Sec. 15.

Minnesota Statutes 2008, section 272.0213, is amended to read:


272.0213 LEASED SEASONAL-RECREATIONAL LAND.

deleted text begin A county board may elect, by resolution, todeleted text end new text begin Qualified lands, as defined in this
section, arenew text end exempt from taxation, includingnew text begin an exemption fromnew text end the tax under section
273.19deleted text begin , qualified landsdeleted text end . "Qualified lands" for purposes of this section means property that:

(1) is owned by a county, city, town, the state, or the federal governments;new text begin and
new text end

(2) is rented by the entity for noncommercial seasonal-recreational or noncommercial
seasonal-recreational residential usedeleted text begin ; and
deleted text end

deleted text begin (3) was rented for the purposes specified in clause (2) and was exempt from taxation
for property taxes payable in 2008deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
 new text end

Sec. 16.

Minnesota Statutes 2008, section 273.113, subdivision 1, is amended to read:


Subdivision 1.

Definition.

For the purposes of this section, the following terms
have the meanings given to them:

(1) "deleted text begin proposeddeleted text end bovine tuberculosis modified accredited zone" means the modified
accredited zone deleted text begin proposeddeleted text end new text begin designatednew text end by the Board of Animal Health under section 35.244;
deleted text begin and
deleted text end

(2) "located within" means that the herd is kept in the area for at least a part of
calendar year new text begin 2006, new text end 2007new text begin , or 2008; and
new text end

new text begin (3) "animal" means cattle, bison, goats, and farmed cervidaenew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property taxes payable in 2010
and thereafter.
 new text end

Sec. 17.

Minnesota Statutes 2008, section 273.113, subdivision 2, is amended to read:


Subd. 2.

Eligibility; amount of credit.

Agricultural new text begin and rural vacant new text end land classified
under section 273.13, subdivision 23, located within a deleted text begin proposeddeleted text end bovine tuberculosis
modified accredited zone is eligible for a property tax credit equal to the deleted text begin property taxdeleted text end
new text begin greater of: (1) $5 per acre new text end on the deleted text begin parceldeleted text end new text begin first 160 acres of the property new text end where the herd had
been locateddeleted text begin , excluding any tax attributable to residential structures.deleted text end new text begin ; or (2) an amount
equal to $5 per acre times five acres times the highest number of animals tested on the
property for bovine tuberculosis in a whole-herd test as reported by the Board of Animal
Health in 2006, 2007, or 2008. The amount of the credit cannot exceed the property tax
payable on the property where the herd had been located, excluding any tax attributable
to residential structures. new text end To begin to qualify for the tax credit, the owner shall file an
application with the county by December 1 of the levy year. The credit must be given
for each subsequent taxes payable year until the credit terminates under subdivision 4.
The assessor shall indicate the amount of the property tax reduction on the property tax
statement of each taxpayer receiving a credit under this section. The credit paid pursuant
to this section shall be deducted from the tax due on the property as provided in section
273.1393.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property taxes payable in 2010
and thereafter.
 new text end

Sec. 18.

Minnesota Statutes 2008, section 273.13, subdivision 24, is amended to read:


Subd. 24.

Class 3.

(a) Commercial and industrial property and utility real and
personal property is class 3a.

(1) Except as otherwise provided, each parcel of commercial, industrial, or utility
real property has a class rate of 1.5 percent of the first tier of market value, and 2.0 percent
of the remaining market value. In the case of contiguous parcels of property owned by the
same person or entity, only the value equal to the first-tier value of the contiguous parcels
qualifies for the reduced class rate, except that contiguous parcels owned by the same
person or entity shall be eligible for the first-tier value class rate on each separate business
operated by the owner of the property, provided the business is housed in a separate
structure. For the purposes of this subdivision, the first tier means the first $150,000 of
market value. Real property owned in fee by a utility for transmission line right-of-way
shall be classified at the class rate for the higher tier.

For purposes of this subdivision, parcels are considered to be contiguous even if
they are separated from each other by a road, street, waterway, or other similar intervening
type of property. Connections between parcels that consist of power lines or pipelines do
not cause the parcels to be contiguous. Property owners who have contiguous parcels of
property that constitute separate businesses that may qualify for the first-tier class rate shall
notify the assessor by July 1, for treatment beginning in the following taxes payable year.

(2) deleted text begin Alldeleted text end Personal property that isdeleted text begin : (i)deleted text end part of an electric generationdeleted text begin , transmission, or
distributiondeleted text end systemdeleted text begin ; or (ii)deleted text end new text begin , including tools, implements, and machinery, has a class rate
of 2.8 percent.
new text end

new text begin (3) Personal property that is either: (i)new text end part of a pipeline system transporting
or distributing water, gas, crude oil, or petroleum productsdeleted text begin ; and (iii) not described in
clause (3), and alldeleted text end new text begin , including tools, implements, and machinery; or (ii) part of an electric
transmission or distribution system, including tools, implements, and machinery, has a
class rate of 2.25 percent.
new text end

new text begin (4) new text end Railroad operating property has a class rate as provided under deleted text begin clausedeleted text end new text begin paragraphnew text end
(1) for the first tier of market value and the remaining market value. In the case of multiple
parcels in one county that are owned by one person or entity, only one first tier amount
is eligible for the reduced rate.

deleted text begin (3) The entire market value of personal property that is: (i) tools, implements, and
machinery of an electric generation, transmission, or distribution system; (ii) tools,
implements, and machinery of a pipeline system transporting or distributing water, gas,
crude oil, or petroleum products; or (iii) thedeleted text end new text begin (5) Personal property consisting ofnew text end mains
and pipes used in the distribution of steam or hot or chilled water for heating or cooling
buildings, has a class rate as provided under deleted text begin clausedeleted text end new text begin paragraphnew text end (1) for the remaining market
value in excess of the first tier.

(b) Employment property defined in section 469.166, during the period provided
in section 469.170, shall constitute class 3b. The class rates for class 3b property are
determined under paragraph (a).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2009, payable in
2010 and thereafter.
 new text end

Sec. 19.

Minnesota Statutes 2008, section 273.13, subdivision 25, is amended to read:


Subd. 25.

Class 4.

(a) Class 4a is residential real estate containing four or more
units and used or held for use by the owner or by the tenants or lessees of the owner
as a residence for rental periods of 30 days or more, excluding property qualifying for
class 4d. Class 4a also includes hospitals licensed under sections 144.50 to 144.56, other
than hospitals exempt under section 272.02, and contiguous property used for hospital
purposes, without regard to whether the property has been platted or subdivided. The
market value of class 4a property has a class rate of 1.25 percent.

(b) Class 4b includes:

(1) residential real estate containing less than four units that does not qualify as class
4bb, other than seasonal residential recreational property;

(2) manufactured homes not classified under any other provision;

(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead
farm classified under subdivision 23, paragraph (b) containing two or three units; and

(4) unimproved property that is classified residential as determined under subdivision
33.

The market value of class 4b property has a class rate of 1.25 percent.

(c) Class 4bb includes:

(1) nonhomestead residential real estate containing one unit, other than seasonal
residential recreational property; and

(2) a single family dwelling, garage, and surrounding one acre of property on a
nonhomestead farm classified under subdivision 23, paragraph (b).

Class 4bb property has the same class rates as class 1a property under subdivision 22.

Property that has been classified as seasonal residential recreational property at
any time during which it has been owned by the current owner or spouse of the current
owner does not qualify for class 4bb.

(d) Class 4c property includes:

(1) except as provided in subdivision 22, paragraph (c), or subdivision 23, paragraph
(b), clause (1), real and personal property devoted to temporary and seasonal residential
occupancy for recreation purposes, including real and personal property devoted to
temporary and seasonal residential occupancy for recreation purposes and not devoted to
commercial purposes for more than 250 days in the year preceding the year of assessment.
For purposes of this clause, property is devoted to a commercial purpose on a specific
day if any portion of the property is used for residential occupancy, and a fee is charged
for residential occupancy. Class 4c property must contain three or more rental units. A
"rental unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual
camping site equipped with water and electrical hookups for recreational vehicles. new text begin Except
for property described in item (iii) below, new text end class 4c property must provide recreational
activities such as renting ice fishing houses, boats and motors, snowmobiles, downhill or
cross-country ski equipment; provide marina services, launch services, or guide services;
or sell bait and fishing tackle. A camping pad offered for rent by a property that otherwise
qualifies for class 4c is also class 4c regardless of the term of the rental agreement, as
long as the use of the camping pad does not exceed 250 days. In order for a property to
be classified as class 4c, seasonal residential recreational for commercial purposes under
this clause, at least 40 percent of the annual gross lodging receipts related to the property
must be from business conducted during 90 consecutive days and either (i) at least 60
percent of all paid bookings by lodging guests during the year must be for periods of at
least two consecutive nights; deleted text begin ordeleted text end (ii) at least 20 percent of the annual gross receipts must
be from charges for rental of fish houses, boats and motors, snowmobiles, downhill or
cross-country ski equipment, or charges for marina services, launch services, and guide
services, or the sale of bait and fishing tacklenew text begin ; or (iii) the property contains 20 or fewer
rental units, is devoted to temporary residential occupancy for no more than 250 days in
the year, is located in a township or a city with a population of 2,500 or less, that is located
outside the metropolitan area as defined under section 473.121, subdivision 2, and that
contains a portion of a state trail administered by the Department of Natural Resourcesnew text end .
For purposes of this determination, a paid booking of five or more nights shall be counted
as two bookings. Class 4c also includes commercial use real property used exclusively
for recreational purposes in conjunction with class 4c property devoted to temporary
and seasonal residential occupancy for recreational purposes, up to a total of two acres,
provided the property is not devoted to commercial recreational use for more than 250
days in the year preceding the year of assessment and is located within two miles of the
class 4c property with which it is used. Owners of real and personal property devoted
to temporary and seasonal residential occupancy for recreation purposes and all or a
portion of which was devoted to commercial purposes for not more than 250 days in the
year preceding the year of assessment desiring classification as class 4c, must submit a
declaration to the assessor designating the cabins or units occupied for 250 days or less in
the year preceding the year of assessment by January 15 of the assessment year. Those
cabins or units and a proportionate share of the land on which they are located must be
designated class 4c as otherwise provided. The remainder of the cabins or units and
a proportionate share of the land on which they are located will be designated as class
3a. The owner of property desiring designation as class 4c property must provide guest
registers or other records demonstrating that the units for which class 4c designation is
sought were not occupied for more than 250 days in the year preceding the assessment if
so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop,
(4) conference center or meeting room, and (5) other nonresidential facility operated on a
commercial basis not directly related to temporary and seasonal residential occupancy for
recreation purposes does not qualify for class 4c;

(2) qualified property used as a golf course if:

(i) it is open to the public on a daily fee basis. It may charge membership fees or
dues, but a membership fee may not be required in order to use the property for golfing,
and its green fees for golfing must be comparable to green fees typically charged by
municipal courses; and

(ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).

A structure used as a clubhouse, restaurant, or place of refreshment in conjunction
with the golf course is classified as class 3a property;

(3) real property up to a maximum of three acres of land owned and used by a
nonprofit community service oriented organization and that is not used for residential
purposes on either a temporary or permanent basis, qualifies for class 4c provided that
it meets either of the following:

(i) the property is not used for a revenue-producing activity for more than six days
in the calendar year preceding the year of assessment; or

(ii) the organization makes annual charitable contributions and donations at least
equal to the property's previous year's property taxes and the property is allowed to be
used for public and community meetings or events for no charge, as appropriate to the
size of the facility.

For purposes of this clause,

(A) "charitable contributions and donations" has the same meaning as lawful
gambling purposes under section 349.12, subdivision 25, excluding those purposes
relating to the payment of taxes, assessments, fees, auditing costs, and utility payments;

(B) "property taxes" excludes the state general tax;

(C) a "nonprofit community service oriented organization" means any corporation,
society, association, foundation, or institution organized and operated exclusively for
charitable, religious, fraternal, civic, or educational purposes, and which is exempt
from federal income taxation pursuant to section 501(c)(3), (10), or (19) of the Internal
Revenue Code; and

(D) "revenue-producing activities" shall include but not be limited to property or that
portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
insurance business, or office or other space leased or rented to a lessee who conducts a
for-profit enterprise on the premises.

Any portion of the property qualifying under item (i) which is used for revenue-producing
activities for more than six days in the calendar year preceding the year of assessment
shall be assessed as class 3a. The use of the property for social events open exclusively
to members and their guests for periods of less than 24 hours, when an admission is
not charged nor any revenues are received by the organization shall not be considered a
revenue-producing activity.

The organization shall maintain records of its charitable contributions and donations
and of public meetings and events held on the property and make them available upon
request any time to the assessor to ensure eligibility. An organization meeting the
requirement under item (ii) must file an application by May 1 with the assessor for
eligibility for the current year's assessment. The commissioner shall prescribe a uniform
application form and instructions;

(4) postsecondary student housing of not more than one acre of land that is owned by
a nonprofit corporation organized under chapter 317A and is used exclusively by a student
cooperative, sorority, or fraternity for on-campus housing or housing located within two
miles of the border of a college campus;

(5) manufactured home parks as defined in section 327.14, subdivision 3;

(6) real property that is actively and exclusively devoted to indoor fitness, health,
social, recreational, and related uses, is owned and operated by a not-for-profit corporation,
and is located within the metropolitan area as defined in section 473.121, subdivision 2;

(7) a leased or privately owned noncommercial aircraft storage hangar not exempt
under section 272.01, subdivision 2, and the land on which it is located, provided that:

(i) the land is on an airport owned or operated by a city, town, county, Metropolitan
Airports Commission, or group thereof; and

(ii) the land lease, or any ordinance or signed agreement restricting the use of the
leased premise, prohibits commercial activity performed at the hangar.

If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must
be filed by the new owner with the assessor of the county where the property is located
within 60 days of the sale;

(8) a privately owned noncommercial aircraft storage hangar not exempt under
section 272.01, subdivision 2, and the land on which it is located, provided that:

(i) the land abuts a public airport; and

(ii) the owner of the aircraft storage hangar provides the assessor with a signed
agreement restricting the use of the premises, prohibiting commercial use or activity
performed at the hangar; and

(9) residential real estate, a portion of which is used by the owner for homestead
purposes, and that is also a place of lodging, if all of the following criteria are met:

(i) rooms are provided for rent to transient guests that generally stay for periods
of 14 or fewer days;

(ii) meals are provided to persons who rent rooms, the cost of which is incorporated
in the basic room rate;

(iii) meals are not provided to the general public except for special events on fewer
than seven days in the calendar year preceding the year of the assessment; and

(iv) the owner is the operator of the property.

The market value subject to the 4c classification under this clause is limited to five rental
units. Any rental units on the property in excess of five, must be valued and assessed as
class 3a. The portion of the property used for purposes of a homestead by the owner must
be classified as class 1a property under subdivision 22; deleted text begin and
deleted text end

(10) real property up to a maximum of three acres and operated as a restaurant
as defined under section 157.15, subdivision 12, provided it: (A) is located on a lake
as defined under section 103G.005, subdivision 15, paragraph (a), clause (3); and (B)
is either devoted to commercial purposes for not more than 250 consecutive days, or
receives at least 60 percent of its annual gross receipts from business conducted during
four consecutive months. Gross receipts from the sale of alcoholic beverages must be
included in determining the property's qualification under subitem (B). The property's
primary business must be as a restaurant and not as a bar. Gross receipts from gift shop
sales located on the premises must be excluded. Owners of real property desiring 4c
classification under this clause must submit an annual declaration to the assessor by
February 1 of the current assessment year, based on the property's relevant information for
the preceding assessment yearnew text begin ; and
new text end

new text begin (11) lakeshore and riparian property and adjacent land, not to exceed five acres, used
as a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the
public and devoted to recreational use for marina services. Buildings used in conjunction
with a marina for marina services, including but not limited to buildings used to provide
food and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle are
classified as class 3a propertynew text end .

Class 4c property has a class rate of 1.5 percent of market value, except that (i) each
parcel of seasonal residential recreational property not used for commercial purposes has
the same class rates as class 4bb property, (ii) manufactured home parks assessed under
clause (5) have the same class rate as class 4b property, (iii) commercial-use seasonal
residential recreational property new text begin and marina recreational land as described in clause (11),
new text end has a class rate of one percent for the first $500,000 of market value, and 1.25 percent for
the remaining market value, (iv) the market value of property described in clause (4) has a
class rate of one percent, (v) the market value of property described in clauses (2), (6), and
(10) has a class rate of 1.25 percent, and (vi) that portion of the market value of property
in clause (9) qualifying for class 4c property has a class rate of 1.25 percent.

(e) Class 4d property is qualifying low-income rental housing certified to the assessor
by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion
of the units in the building qualify as low-income rental housing units as certified under
section 273.128, subdivision 3, only the proportion of qualifying units to the total number
of units in the building qualify for class 4d. The remaining portion of the building shall be
classified by the assessor based upon its use. Class 4d also includes the same proportion of
land as the qualifying low-income rental housing units are to the total units in the building.
For all properties qualifying as class 4d, the market value determined by the assessor must
be based on the normal approach to value using normal unrestricted rents.

Class 4d property has a class rate of 0.75 percent.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2009, taxes
payable in 2010, and thereafter. For assessment year 2009 only, the January 15 application
date under paragraph (d), clause (1), is extended to July 1, 2009, for property initially
qualifying for the 2009 assessment under paragraph (d), clause (1), item (iii).
 new text end

Sec. 20.

Minnesota Statutes 2008, section 275.025, subdivision 1, is amended to read:


Subdivision 1.

Levy amount.

The state general levy is levied against
commercial-industrial property deleted text begin and seasonal residential recreational property,deleted text end as defined in
this section. The deleted text begin state general levy base amount is $592,000,000deleted text end new text begin tax is imposednew text end for taxes
payable in deleted text begin 2002deleted text end new text begin 2010 and subsequent years at the rate of the tax on commercial-industrial
property payable under this section in 2003new text end . deleted text begin For taxes payable in subsequent years,
the levy base amount is increased each year by multiplying the levy base amount for
the prior year by the sum of one plus the rate of increase, if any, in the implicit price
deflator for government consumption expenditures and gross investment for state and
local governments prepared by the Bureau of Economic Analysts of the United States
Department of Commerce for the 12-month period ending March 31 of the year prior to the
year the taxes are payable.deleted text end The tax under this section is not treated as a local tax rate under
section 469.177 and is not the levy of a governmental unit under chapters 276A and 473F.

deleted text begin The commissioner shall increase or decrease the preliminary or final rate for a year
as necessary to account for errors and tax base changes that affected a preliminary or final
rate for either of the two preceding years. Adjustments are allowed to the extent that the
necessary information is available to the commissioner at the time the rates for a year must
be certified, and for the following reasons:
 deleted text end

deleted text begin (1) an erroneous report of taxable value by a local official;
 deleted text end

deleted text begin (2) an erroneous calculation by the commissioner; and
 deleted text end

deleted text begin (3) an increase or decrease in taxable value for commercial-industrial or seasonal
residential recreational property reported on the abstracts of tax lists submitted under
section 275.29 that was not reported on the abstracts of assessment submitted under
section 270C.89 for the same year.
 deleted text end

deleted text begin The commissioner may, but need not, make adjustments if the total difference in the tax
levied for the year would be less than $100,000.
 deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010.
 new text end

Sec. 21.

Minnesota Statutes 2008, section 275.025, subdivision 4, is amended to read:


Subd. 4.

Apportionment and levy of state general tax.

deleted text begin Ninety-five percent ofdeleted text end
The state general tax must be levied by applying a deleted text begin uniformdeleted text end new text begin thenew text end rate new text begin determined under
subdivision 1 new text end to all commercial-industrial tax capacity deleted text begin and five percent of the state general
tax must be levied by applying a uniform rate to all seasonal residential recreational tax
capacitydeleted text end . deleted text begin On or before October 1 each year, the commissioner of revenue shall certify the
preliminary state general levy rates to each county auditor that must be used to prepare the
notices of proposed property taxes for taxes payable in the following year. By January 1
of each year, the commissioner shall certify the final state general levy rate to each county
auditor that shall be used in spreading taxesdeleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable 2010.
 new text end

Sec. 22.

Minnesota Statutes 2008, section 275.065, subdivision 1, is amended to read:


Subdivision 1.

Proposed levy.

(a) Notwithstanding any law or charter to the
contrary, on or before September 15, each taxing authority, other than a school district,
shall adopt a proposed budget and shall certify to the county auditor the proposed or, in
the case of a town, the final property tax levy for taxes payable in the following year.

(b) On or before September 30, each school district that has not mutually agreed
with its home county to extend this date shall certify to the county auditor the proposed
property tax levy for taxes payable in the following year. Each school district that has
agreed with its home county to delay the certification of its proposed property tax levy
must certify its proposed property tax levy for the following year no later than October
7. The school district shall certify the proposed levy as:

(1) a specific dollar amount by school district fund, broken down between
voter-approved and non-voter-approved levies and between referendum market value
and tax capacity levies; or

(2) the maximum levy limitation certified by the commissioner of education
according to section 126C.48, subdivision 1.

(c) If the board of estimate and taxation or any similar board that establishes
maximum tax levies for taxing jurisdictions within a first class city certifies the maximum
property tax levies for funds under its jurisdiction by charter to the county auditor by
September 15, the city shall be deemed to have certified its levies for those taxing
jurisdictions.

(d) For purposes of this section, "taxing authority" includes all home rule and
statutory cities, towns, counties, school districts, and special taxing districts as defined
in section 275.066. Intermediate school districts that levy a tax under chapter 124 or
136D, joint powers boards established under sections 123A.44 to 123A.446, and Common
School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special taxing
districts for purposes of this section.

new text begin (e) At the meeting at which the taxing authority, other than a town, adopts its
proposed tax levy under paragraph (a) or (b), the taxing authority shall announce the time
and place of its subsequent regularly scheduled meetings at which the budget and levy will
be discussed and at which the public will be allowed to speak. The time and place of those
meetings must be included in the proceedings or summary of proceedings published in the
official newspaper of the taxing authority under sections 123B.09, 375.12, or 412.191.
 new text end

Sec. 23.

Minnesota Statutes 2008, section 275.065, subdivision 3, is amended to read:


Subd. 3.

Notice of proposed property taxes.

(a) The county auditor shall prepare
and the county treasurer shall deliver after November 10 and on or before November 24
each year, by first class mail to each taxpayer at the address listed on the county's current
year's assessment roll, a notice of proposed property taxes. Upon written request by
the taxpayer, the treasurer may send the notice in electronic form or by electronic mail
instead of on paper or by ordinary mail.

(b) The commissioner of revenue shall prescribe the form of the notice.

(c) The notice must inform taxpayers that it contains the amount of property taxes
each taxing authority proposes to collect for taxes payable the following year. In the
case of a town, or in the case of the state general tax, the final tax amount will be its
proposed tax. deleted text begin In the case of taxing authorities required to hold a public meeting under
subdivision 6, the notice must clearly state that each taxing authority, including regional
library districts established under section 134.201, and including the metropolitan taxing
districts as defined in paragraph (i), but excluding all other special taxing districts and
towns, will hold a public meeting to receive public testimony on the proposed budget and
proposed or final property tax levy, or, in case of a school district, on the current budget
and proposed property tax levy.deleted text end new text begin The notice must clearly state for each city, county, school
district, regional library authority established under section 134.201, and metropolitan
taxing districts as defined in paragraph (i), the time and place of the taxing authorities'
regularly scheduled meetings in which the budget and levy will be discussed and the final
budget and levy determined, which must occur after November 24. The taxing authorities
must provide the county auditor with the information to be included in the notice on or
before the time it certifies its proposed levy under subdivision 1. The public must be
allowed to speak at the meetings. new text end It must deleted text begin clearly state the time and place of each taxing
authority's meeting,deleted text end new text begin providenew text end a telephone number for the taxing authority that taxpayers
may call if they have questions related to the noticedeleted text begin ,deleted text end and an address where comments
will be received by mail.

(d) The notice must state for each parcel:

(1) the market value of the property as determined under section 273.11, and used
for computing property taxes payable in the following year and for taxes payable in the
current year as each appears in the records of the county assessor on November 1 of the
current year; and, in the case of residential property, whether the property is classified as
homestead or nonhomestead. The notice must clearly inform taxpayers of the years to
which the market values apply and that the values are final values;

(2) the items listed below, shown separately by county, city or town, and state general
tax, net of the residential and agricultural homestead credit under section 273.1384, voter
approved school levy, other local school levy, and the sum of the special taxing districts,
and as a total of all taxing authorities:

(i) the actual tax for taxes payable in the current year; and

(ii) the proposed tax amount.

If the county levy under clause (2) includes an amount for a lake improvement
district as defined under sections 103B.501 to 103B.581, the amount attributable for that
purpose must be separately stated from the remaining county levy amount.

In the case of a town or the state general tax, the final tax shall also be its proposed
tax unless the town changes its levy at a special town meeting under section 365.52. If a
school district has certified under section 126C.17, subdivision 9, that a referendum will
be held in the school district at the November general election, the county auditor must
note next to the school district's proposed amount that a referendum is pending and that, if
approved by the voters, the tax amount may be higher than shown on the notice. In the
case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be
listed separately from the remaining amount of the city's levy. In the case of the city of
St. Paul, the levy for the St. Paul Library Agency must be listed separately from the
remaining amount of the city's levy. In the case of Ramsey County, any amount levied
under section 134.07 may be listed separately from the remaining amount of the county's
levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax
under chapter 276A or 473F applies, the proposed tax levy on the captured value or the
proposed tax levy on the tax capacity subject to the areawide tax must each be stated
separately and not included in the sum of the special taxing districts; and

(3) the increase or decrease between the total taxes payable in the current year and
the total proposed taxes, expressed as a percentage.

For purposes of this section, the amount of the tax on homesteads qualifying under
the senior citizens' property tax deferral program under chapter 290B is the total amount
of property tax before subtraction of the deferred property tax amount.

(e) The notice must clearly state that the proposed or final taxes do not include
the following:

(1) special assessments;

(2) levies approved by the voters after the date the proposed taxes are certified,
including bond referenda and school district levy referenda;

(3) deleted text begin a levy limit increase approved by the voters by the first Tuesday after the first
Monday in November of the levy year as provided under section 275.73;
deleted text end

deleted text begin (4)deleted text end amounts necessary to pay cleanup or other costs due to a natural disaster
occurring after the date the proposed taxes are certified;

deleted text begin (5)deleted text end new text begin (4)new text end amounts necessary to pay tort judgments against the taxing authority that
become final after the date the proposed taxes are certified; and

deleted text begin (6)deleted text end new text begin (5)new text end the contamination tax imposed on properties which received market value
reductions for contamination.

(f) Except as provided in subdivision 7, failure of the county auditor to prepare or
the county treasurer to deliver the notice as required in this section does not invalidate the
proposed or final tax levy or the taxes payable pursuant to the tax levy.

(g) If the notice the taxpayer receives under this section lists the property as
nonhomestead, and satisfactory documentation is provided to the county assessor by the
applicable deadline, and the property qualifies for the homestead classification in that
assessment year, the assessor shall reclassify the property to homestead for taxes payable
in the following year.

(h) In the case of class 4 residential property used as a residence for lease or rental
periods of 30 days or more, the taxpayer must either:

(1) mail or deliver a copy of the notice of proposed property taxes to each tenant,
renter, or lessee; or

(2) post a copy of the notice in a conspicuous place on the premises of the property.

The notice must be mailed or posted by the taxpayer by November 27 or within
three days of receipt of the notice, whichever is later. A taxpayer may notify the county
treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to
which the notice must be mailed in order to fulfill the requirements of this paragraph.

(i) For purposes of this subdivision, subdivisions 5a and 6, "metropolitan special
taxing districts" means the following taxing districts in the seven-county metropolitan area
that levy a property tax for any of the specified purposes listed below:

(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325,
473.446, 473.521, 473.547, or 473.834;

(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672;
and

(3) Metropolitan Mosquito Control Commission under section 473.711.

For purposes of this section, any levies made by the regional rail authorities in the
county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
398A shall be included with the appropriate county's levy deleted text begin and shall be discussed at that
county's public hearingdeleted text end .

(j) The governing body of a county, city, or school district may, with the consent
of the county board, include supplemental information with the statement of proposed
property taxes about the impact of state aid increases or decreases on property tax
increases or decreases and on the level of services provided in the affected jurisdiction.
This supplemental information may include information for the following year, the current
year, and for as many consecutive preceding years as deemed appropriate by the governing
body of the county, city, or school district. It may include only information regarding:

(1) the impact of inflation as measured by the implicit price deflator for state and
local government purchases;

(2) population growth and decline;

(3) state or federal government action; and

(4) other financial factors that affect the level of property taxation and local services
that the governing body of the county, city, or school district may deem appropriate to
include.

The information may be presented using tables, written narrative, and graphic
representations and may contain instruction toward further sources of information or
opportunity for comment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
 new text end

Sec. 24.

Minnesota Statutes 2008, section 275.065, subdivision 5a, is amended to read:


Subd. 5a.

Public advertisement.

(a) new text begin Except for property taxes levied in 2009 and
2010, new text end a city that has a population of more than 2,500, county, a metropolitan special taxing
district as defined in subdivision 3, paragraph (i), a regional library district established
under section 134.201, or school district shall advertise in a newspaper a notice of its
intent to adopt a budget and property tax levy or, in the case of a school district, to review
its current budget and proposed property taxes payable in the following year, at a public
hearing, if a public hearing is required under subdivision 6. The notice must be published
not less than two business days nor more than six business days before the hearing.

The advertisement must be at least one-eighth page in size of a standard-size or a
tabloid-size newspaper. The advertisement must not be placed in the part of the newspaper
where legal notices and classified advertisements appear. The advertisement must be
published in an official newspaper of general circulation in the taxing authority. The
newspaper selected must be one of general interest and readership in the community, and
not one of limited subject matter. The advertisement must appear in a newspaper that is
published at least once per week.

For purposes of this section, the metropolitan special taxing district's advertisement
must only be published in the Minneapolis Star and Tribune and the Saint Paul Pioneer
Press.

In addition to other requirements, a county and a city having a population of
more than 2,500 must show in the public advertisement required under this subdivision
the current local tax rate, the proposed local tax rate if no property tax levy increase
is adopted, and the proposed rate if the proposed levy is adopted. For purposes of this
subdivision, "local tax rate" means the city's or county's net tax capacity levy divided by
the city's or county's taxable net tax capacity.

(b) Subject to the provisions of paragraph (g), the advertisement for school districts,
metropolitan special taxing districts, and regional library districts must be in the following
form, except that the notice for a school district may include references to the current
budget in regard to proposed property taxes.

"NOTICE OF

PROPOSED PROPERTY TAXES

(School District/Metropolitan

Special Taxing District/Regional

Library District) of .........

The governing body of ........ will soon hold budget hearings and vote on the property
taxes for (metropolitan special taxing district/regional library district services that will be
provided in (year)/school district services that will be provided in (year) and (year)).

NOTICE OF PUBLIC HEARING:

All concerned citizens are invited to attend a public hearing and express their opinions
on the proposed (school district/metropolitan special taxing district/regional library
district) budget and property taxes, or in the case of a school district, its current budget
and proposed property taxes, payable in the following year. The hearing will be held on
(Month/Day/Year) at (Time) at (Location, Address)."

(c) Subject to the provisions of paragraph (g), the advertisement for cities and
counties must be in the following form.

"NOTICE OF PROPOSED

TOTAL BUDGET AND PROPERTY TAXES

The (city/county) governing body or board of commissioners will hold a public hearing to
discuss the budget and to vote on the amount of property taxes to collect for services the
(city/county) will provide in (year).

SPENDING: The total budget amounts below compare (city's/county's) (year) total actual
budget with the amount the (city/county) proposes to spend in (year).

(Year) Total Actual
Budget
 Proposed (Year) Budget
 Change from
(Year)-(Year)
$
. 		$
. 		.....%

TAXES: The property tax amounts below compare that portion of the current budget
levied in property taxes in (city/county) for (year) with the property taxes the (city/county)
proposes to collect in (year).

(Year) Property Taxes
 Proposed (Year) Property
Taxes
 Change from
(Year)-(Year)
$
. 		$
. 		.....%

LOCAL TAX RATE COMPARISON: The current local tax rate, the local tax rate if no tax
levy increase is adopted, and the proposed local tax rate if the proposed levy is adopted.

(Year) Tax Rate
 (Year) Tax Rate if NO
Levy Increase
 (Year) Proposed Tax
Rate
.
.
.

ATTEND THE PUBLIC HEARING

All (city/county) residents are invited to attend the public hearing of the (city/county) to
express your opinions on the budget and the proposed amount of (year) property taxes.
The hearing will be held on:

(Month/Day/Year/Time)

(Location/Address)

If the discussion of the budget cannot be completed, a time and place for continuing the
discussion will be announced at the hearing. You are also invited to send your written
comments to:

(City/County)

(Location/Address)"

(d) For purposes of this subdivision, the budget amounts listed on the advertisement
mean:

(1) for cities, the total government fund expenditures, as defined by the state auditor
under section 471.6965, less any expenditures for improvements or services that are
specially assessed or charged under chapter 429, 430, 435, or the provisions of any other
law or charter; and

(2) for counties, the total government fund expenditures, as defined by the state
auditor under section 375.169, less any expenditures for direct payments to recipients or
providers for the human service aids listed below:

(i) Minnesota family investment program under chapters 256J and 256K;

(ii) medical assistance under sections 256B.041, subdivision 5, and 256B.19,
subdivision 1;

(iii) general assistance medical care under section 256D.03, subdivision 6;

(iv) general assistance under section 256D.03, subdivision 2;

(v) Minnesota supplemental aid under section 256D.36, subdivision 1;

(vi) preadmission screening under section 256B.0911, and alternative care grants
under section 256B.0913;

(vii) general assistance medical care claims processing, medical transportation and
related costs under section 256D.03, subdivision 4;

(viii) medical transportation and related costs under section 256B.0625, subdivisions
17 to 18a;

(ix) group residential housing under section 256I.05, subdivision 8, transferred
from programs in clauses (iv) and (v); or

(x) any successor programs to those listed in clauses (i) to (ix).

(e) A city with a population of over 500 but not more than 2,500 that is required to
hold a public hearing under subdivision 6 must advertise by posted notice as defined in
section 645.12, subdivision 1. The advertisement must be posted at the time provided in
paragraph (a). It must be in the form required in paragraph (b).

(f) For purposes of this subdivision, the population of a city is the most recent
population as determined by the state demographer under section 4A.02.

(g) The commissioner of revenue shall annually prescribe the specific form and
format of the advertisements required under this subdivision, including such details as
font size and style, and spacing for the required items. The commissioner may prescribe
alternate and additional language for the advertisement for a taxing authority or for groups
of taxing authorities. At least two weeks before November 29 each year, the commissioner
shall provide a copy of the prescribed advertisements to the chairs of the committees of
the house of representatives and the senate with jurisdiction over taxes.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 25.

Minnesota Statutes 2008, section 275.065, subdivision 6, is amended to read:


Subd. 6.

deleted text begin Public hearing;deleted text end Adoption of budget and levy.

deleted text begin (a) For purposes of this
section, the following terms shall have the meanings given:
 deleted text end

deleted text begin (1) "Initial hearing" means the first and primary hearing held to discuss the taxing
authority's proposed budget and proposed property tax levy for taxes payable in the
following year, or, for school districts, the current budget and the proposed property tax
levy for taxes payable in the following year.
 deleted text end

deleted text begin (2) "Continuation hearing" means a hearing held to complete the initial hearing, if
the initial hearing is not completed on its scheduled date.
 deleted text end

deleted text begin (3) "Subsequent hearing" means the hearing held to adopt the taxing authority's final
property tax levy, and, in the case of taxing authorities other than school districts, the final
budget, for taxes payable in the following year.
 deleted text end

deleted text begin (b) Between November 29 and December 20, the governing bodies of a city that has a
population over 500, county, metropolitan special taxing districts as defined in subdivision
3, paragraph (i), and regional library districts shall each hold an initial public hearing
to discuss and seek public comment on its final budget and property tax levy for taxes
payable in the following year, and the governing body of the school district shall hold an
initial public hearing to review its current budget and proposed property tax levy for taxes
payable in the following year. The metropolitan special taxing districts shall be required to
hold only a single joint initial public hearing, the location of which will be determined by
the affected metropolitan agencies. A city, county, metropolitan special taxing district as
defined in subdivision 3, paragraph (i), regional library district established under section
134.201, or school district is not required to hold a public hearing under this subdivision
unless its proposed property tax levy for taxes payable in the following year, as certified
under subdivision 1, has increased over its final property tax levy for taxes payable in the
current year by a percentage that is greater than the percentage increase in the implicit
price deflator for government consumption expenditures and gross investment for state
and local governments prepared by the Bureau of Economic Analysts of the United States
Department of Commerce for the 12-month period ending March 31 of the current year.
 deleted text end

deleted text begin (c) The initial hearing must be held after 5:00 p.m. if scheduled on a day other than
Saturday. No initial hearing may be held on a Sunday.
 deleted text end

deleted text begin (d) At the initial hearing under this subdivision, the percentage increase in property
taxes proposed by the taxing authority, if any, and the specific purposes for which property
tax revenues are being increased must be discussed. During the discussion, the governing
body shall hear comments regarding a proposed increase and explain the reasons for the
proposed increase. The public shall be allowed to speak and to ask questions. At the public
hearing, the school district must also provide and discuss information on the distribution
of its revenues by revenue source, and the distribution of its spending by program area.
 deleted text end

deleted text begin (e) If the initial hearing is not completed on its scheduled date, the taxing authority
must announce, prior to adjournment of the hearing, the date, time, and place for the
continuation of the hearing. The continuation hearing must be held at least five business
days but no more than 14 business days after the initial hearing. A continuation hearing
may not be held later than December 20 except as provided in paragraphs (f) and (g).
A continuation hearing must be held after 5:00 p.m. if scheduled on a day other than
Saturday. No continuation hearing may be held on a Sunday.
 deleted text end

deleted text begin (f) The governing body of a county shall hold its initial hearing on the first Thursday
in December each year, and may hold additional initial hearings on other dates before
December 20 if necessary for the convenience of county residents. If the county needs a
continuation of its hearing, the continuation hearing shall be held on the third Tuesday
in December. If the third Tuesday in December falls on December 21, the county's
continuation hearing shall be held on Monday, December 20.
 deleted text end

deleted text begin (g) The metropolitan special taxing districts shall hold a joint initial public hearing
on the first Wednesday of December. A continuation hearing, if necessary, shall be held on
the second Wednesday of December even if that second Wednesday is after December 10.
 deleted text end

deleted text begin (h) The county auditor shall provide for the coordination of initial and continuation
hearing dates for all school districts and cities within the county to prevent conflicts under
clauses (i) and (j).
 deleted text end

deleted text begin (i) By August 10, each school board and the board of the regional library district
shall certify to the county auditors of the counties in which the school district or regional
library district is located the dates on which it elects to hold its initial hearing and any
continuation hearing. If a school board or regional library district does not certify these
dates by August 10, the auditor will assign the initial and continuation hearing dates. The
dates elected or assigned must not conflict with the initial and continuation hearing dates
of the county or the metropolitan special taxing districts.
 deleted text end

deleted text begin (j) By August 20, the county auditor shall notify the clerks of the cities within the
county of the dates on which school districts and regional library districts have elected to
hold their initial and continuation hearings. At the time a city certifies its proposed levy
under subdivision 1 it shall certify the dates on which it elects to hold its initial hearing and
any continuation hearing. Until September 15, the first and second Mondays of December
are reserved for the use of the cities. If a city does not certify its hearing dates by
September 15, the auditor shall assign the initial and continuation hearing dates. The dates
elected or assigned for the initial hearing must not conflict with the initial hearing dates
of the county, metropolitan special taxing districts, regional library districts, or school
districts within which the city is located. To the extent possible, the dates of the city's
continuation hearing should not conflict with the continuation hearing dates of the county,
metropolitan special taxing districts, regional library districts, or school districts within
which the city is located. This paragraph does not apply to cities of 500 population or less.
 deleted text end

deleted text begin (k) The county initial hearing date and the city, metropolitan special taxing district,
regional library district, and school district initial hearing dates must be designated on
the notices required under subdivision 3. The continuation hearing dates need not be
stated on the notices.
 deleted text end

deleted text begin (l) At a subsequent hearing, each county, school district, city over 500 population,
and metropolitan special taxing district may amend its proposed property tax levy
and must adopt a final property tax levy. Each county, city over 500 population, and
metropolitan special taxing district may also amend its proposed budget and must adopt a
final budget at the subsequent hearing. The final property tax levy must be adopted prior
to adopting the final budget. A school district is not required to adopt its final budget at the
subsequent hearing. The subsequent hearing of a taxing authority must be held on a date
subsequent to the date of the taxing authority's initial public hearing. If a continuation
hearing is held, the subsequent hearing must be held either immediately following the
continuation hearing or on a date subsequent to the continuation hearing. The subsequent
hearing may be held at a regularly scheduled board or council meeting or at a special
meeting scheduled for the purposes of the subsequent hearing. The subsequent hearing
of a taxing authority does not have to be coordinated by the county auditor to prevent a
conflict with an initial hearing, a continuation hearing, or a subsequent hearing of any
other taxing authority. All subsequent hearings must be held prior to five working days
after December 20 of the levy year. The date, time, and place of the subsequent hearing
must be announced at the initial public hearing or at the continuation hearing.
 deleted text end

deleted text begin (m)deleted text end new text begin (a)new text end The property tax levy certified under section 275.07 by a city of any
population, county, metropolitan special taxing district, regional library district, or school
district must not exceed the proposed levy determined under subdivision 1, except by an
amount up to the sum of the following amounts:

(1) the amount of a school district levy whose voters approved a referendum to
increase taxes under section 123B.63, subdivision 3, or 126C.17, subdivision 9, after
the proposed levy was certified;

(2) the amount of a city or county levy approved by the voters after the proposed
levy was certified;

(3) the amount of a levy to pay principal and interest on bonds approved by the
voters under section 475.58 after the proposed levy was certified;

(4) the amount of a levy to pay costs due to a natural disaster occurring after the
proposed levy was certified, if that amount is approved by the commissioner of revenue
under subdivision 6a;

(5) the amount of a levy to pay tort judgments against a taxing authority that become
final after the proposed levy was certified, if the amount is approved by the commissioner
of revenue under subdivision 6a;

(6) the amount of an increase in levy limits certified to the taxing authority by the
commissioner of education or the commissioner of revenue after the proposed levy was
certified; deleted text begin and
deleted text end

(7) the amount required under section 126C.55new text begin ; and
new text end

new text begin (8) the levy to pay emergency debt certificates under section 475.755 authorized and
issued after the proposed levy was certifiednew text end .

deleted text begin (n)deleted text end new text begin (b)new text end This subdivision does not apply to towns and special taxing districts other
than regional library districts and metropolitan special taxing districts.

deleted text begin (o)deleted text end new text begin (c)new text end Notwithstanding the requirements of this section, the employer is required to
meet and negotiate over employee compensation as provided for in chapter 179A.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
 new text end

Sec. 26.

Minnesota Statutes 2008, section 275.16, is amended to read:


275.16 COUNTY AUDITOR TO FIX AMOUNT OF LEVY.

If any such municipality shall return to the county auditor a levy greater than
permitted by chapters 123A, 123B, 124D, 126C, and 136C, new text begin and new text end sections 275.124 to
275.16, deleted text begin and 275.70 to 275.74,deleted text end such county auditor shall extend only such amount of
taxes as the limitations herein prescribed will permit; provided, if such levy shall include
any levy for the payment of bonded indebtedness or judgments, such levies for bonded
indebtedness or judgments shall be extended in full, and the remainder of the levies shall
be reduced so that the total thereof, including levies for bonds and judgments, shall not
exceed such amount as the limitations herein prescribed will permit.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2009, payable
in 2010, and thereafter.
 new text end

Sec. 27.

Minnesota Statutes 2008, section 275.62, subdivision 1, is amended to read:


Subdivision 1.

Report on taxes levied.

The commissioner of revenue shall establish
procedures for the annual reporting of local government levies. Each local governmental
unit shall submit a report to the commissioner by December 30 of the year in which the
tax is levied. The report shall include, but is not limited to, information on the amount of
the tax levied by the governmental unit for the following purposes:

(1) social services and related programs, which include taxes levied for the purposes
defined in Minnesota Statutes 1991 Supplement, section 275.50, subdivision 5, clauses
(a), (j), and (v);

(2) the amounts levied for each of the purposes listed in new text begin Minnesota Statutes 2008,
new text end section 275.70, subdivision 5; and

(3) other levies, which include the taxes levied for all purposes not included in
clause (1), (2), or (3).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2009, payable
in 2010, and thereafter.
 new text end

Sec. 28.

Minnesota Statutes 2008, section 279.01, subdivision 1, is amended to read:


Subdivision 1.

Due dates; penalties.

Except as provided in subdivision 3 or 4, on
May 16 or 21 days after the postmark date on the envelope containing the property tax
statement, whichever is later, a penalty accrues and thereafter is charged upon all unpaid
taxes on real estate on the current lists in the hands of the county treasurer. The penalty is
at a rate of two percent on homestead property until May 31 and four percent on June 1.
The penalty on nonhomestead property is at a rate of four percent until May 31 and eight
percent on June 1. This penalty does not accrue until June 1 of each year, or 21 days after
the postmark date on the envelope containing the property tax statements, whichever is
later, on commercial use real property used for seasonal residential recreational purposes
and classified as class 1c or 4c, and on other commercial use real property classified as
class 3a, provided that over 60 percent of the gross income earned by the enterprise on the
class 3a property is earned during the months of May, June, July, and August. In order for
the first half of the tax due on class 3a property to be paid after May 15 and before June 1,
or 21 days after the postmark date on the envelope containing the property tax statement,
whichever is later, without penalty, the owner of the property must attach an affidavit to the
payment attesting to compliance with the income provision of this subdivision. Thereafter,
for both homestead and nonhomestead property, on the first day of each month beginning
July 1, up to and including October 1 following, an additional penalty of one percent for
each month accrues and is charged on all such unpaid taxes provided that if the due date
was extended beyond May 15 as the result of any delay in mailing property tax statements
no additional penalty shall accrue if the tax is paid by the extended due date. If the tax is
not paid by the extended due date, then all penalties that would have accrued if the due
date had been May 15 shall be charged. When the taxes against any tract or lot exceed
deleted text begin $50deleted text end new text begin $250new text end , one-half thereof may be paid prior to May 16 or 21 days after the postmark
date on the envelope containing the property tax statement, whichever is later; and, if so
paid, no penalty attaches; the remaining one-half may be paid at any time prior to October
16 following, without penalty; but, if not so paid, then a penalty of two percent accrues
thereon for homestead property and a penalty of four percent on nonhomestead property.
Thereafter, for homestead property, on the first day of November an additional penalty of
four percent accrues and on the first day of December following, an additional penalty of
two percent accrues and is charged on all such unpaid taxes. Thereafter, for nonhomestead
property, on the first day of November and December following, an additional penalty of
four percent for each month accrues and is charged on all such unpaid taxes. If one-half of
such taxes are not paid prior to May 16 or 21 days after the postmark date on the envelope
containing the property tax statement, whichever is later, the same may be paid at any time
prior to October 16, with accrued penalties to the date of payment added, and thereupon
no penalty attaches to the remaining one-half until October 16 following.

This section applies to payment of personal property taxes assessed against
improvements to leased property, except as provided by section 277.01, subdivision 3.

A county may provide by resolution that in the case of a property owner that has
multiple tracts or parcels with aggregate taxes exceeding deleted text begin $50deleted text end new text begin $250new text end , payments may be
made in installments as provided in this subdivision.

The county treasurer may accept payments of more or less than the exact amount of
a tax installment due. Payments must be applied first to the oldest installment that is due
but which has not been fully paid. If the accepted payment is less than the amount due,
payments must be applied first to the penalty accrued for the year or the installment being
paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum
payment required as a condition for filing an appeal under section 278.03 or any other law,
nor does it affect the order of payment of delinquent taxes under section 280.39.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
 new text end

Sec. 29.

Minnesota Statutes 2008, section 279.10, is amended to read:


279.10 PUBLICATION CORRECTED.

Immediately after preparing forms for printing such notice and list, and at least five
days before the first day for the publication thereof, every deleted text begin suchdeleted text end publisher shall furnish
proof of the proposed publication to the county auditor for correction. When deleted text begin suchdeleted text end new text begin thenew text end copy
has been corrected, the auditor shall return deleted text begin the samedeleted text end new text begin itnew text end to the printer, who shall publish it
as corrected. On the first day on which deleted text begin suchdeleted text end new text begin thenew text end notice and list are published, the publisher
shall mail a copy of the newspaper containing deleted text begin the samedeleted text end new text begin the notice and listnew text end to the auditor. If
during the publication of the notice and list, or within ten days after the last publication
thereof, the auditor deleted text begin shall discoverdeleted text end new text begin discoversnew text end that deleted text begin suchdeleted text end new text begin thenew text end publication deleted text begin is invaliddeleted text end new text begin contains an
errornew text end , the auditor shall deleted text begin forthwithdeleted text end direct the publisher to deleted text begin republish the same as correcteddeleted text end new text begin
publish the correct informationnew text end for an additional period of two weeks. new text begin The auditor does
not have to direct the publisher to republish the entire list. new text end The publisher, if not neglectful,
deleted text begin shall bedeleted text end new text begin isnew text end entitled to deleted text begin the samedeleted text end compensation as allowed by law for deleted text begin the originaldeleted text end publicationnew text begin
of the corrected informationnew text end , but shall receive no further compensation deleted text begin therefordeleted text end if deleted text begin suchdeleted text end
new text begin the new text end republication is necessary by reason of the neglect of the publisher.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 30.

Minnesota Statutes 2008, section 360.0425, is amended to read:


360.0425 GENERAL POWERS OF AUTHORITY.

An airport authority created under section 360.0426 has all the powers granted a
municipality under sections 360.032 to deleted text begin 360.046deleted text end new text begin 360.074new text end .

Sec. 31.

Minnesota Statutes 2008, section 375.194, subdivision 5, is amended to read:


Subd. 5.

Determination of county tax rate.

The eligible county's proposed and
final tax rates shall be determined by dividing the certified levy by the total taxable net tax
capacity, without regard to any abatements granted under this section. deleted text begin The county board
shall make available the estimated amount of the abatement at the public hearing under
section 275.065, subdivision 6.deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
 new text end

Sec. 32.

Minnesota Statutes 2008, section 383A.75, subdivision 3, is amended to read:


Subd. 3.

Duties.

The committee is authorized to and shall meet from time to time
to make appropriate recommendations for the efficient and effective use of property tax
dollars raised by the jurisdictions for programs, buildings, and operations. In addition,
the committee shall:

(1) identify trends and factors likely to be driving budget outcomes over the next
five years with recommendations for how the jurisdictions should manage those trends
and factors to increase efficiency and effectiveness;

(2) agree, by October 1 of each year, on the appropriate level of overall property tax
levy for the three jurisdictions and publicly report such to the governing bodies of each
jurisdiction for ratification or modification by resolution;new text begin and
new text end

(3) deleted text begin plan for the joint truth-in-taxation hearings under section 275.065, subdivision
8; and
deleted text end

deleted text begin (4)deleted text end identify, by December 31 of each year, areas of the budget to be targeted in the
coming year for joint review to improve services or achieve efficiencies.

In carrying out its duties, the committee shall consult with public employees of
each jurisdiction and with other stakeholders of the city, county, and school district, as
appropriate.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
 new text end

Sec. 33.

Minnesota Statutes 2008, section 428A.101, is amended to read:


428A.101 DEADLINE FOR SPECIAL SERVICE DISTRICT UNDER
GENERAL LAW.

The establishment of a new special service district after June 30, deleted text begin 2009deleted text end new text begin 2013new text end , requires
enactment of a special law authorizing the establishment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 34.

Minnesota Statutes 2008, section 428A.13, is amended by adding a
subdivision to read:


new text begin Subd. 1a. new text end

new text begin Prerequisites for establishing. new text end

new text begin Prior to establishment of a housing
improvement area, the governing body of the city must:
 new text end

new text begin (1) provide full disclosure of public expenditures, as well as the terms of any loans,
bonds, or other financing arrangements for housing improvement area projects; and
 new text end

new text begin (2) ensure that all contracts for housing improvement projects are subject to section
471.345.
 new text end

Sec. 35.

Minnesota Statutes 2008, section 428A.14, subdivision 1, is amended to read:


Subdivision 1.

Authority.

Fees may be imposed by the implementing entity on the
housing units within the housing improvement area at a rate, term, or amount sufficient
to produce revenue required to provide housing improvements in the area to reimburse
the implementing entity for advances made to pay for the housing improvements or to
pay principal of, interest on, and premiums, if any, on bonds issued by the implementing
entity under section 428A.16. The fee can be imposed on the basis of the tax capacity of
the housing unit, or the total amount of square footage of the housing unit, or a method
determined by the council and specified in the resolution. new text begin If a fee is imposed on a basis
other than the tax capacity or square footage of the housing unit, the council must make
a finding that the alternative basis for the fee is a more equitable basis. Fees imposed
under this section must meet the standard for benefit to property as provided for special
assessments under chapter 429, and are subject to the same appeal processes provided
under chapter 429. new text end Before the imposition of the fees, a hearing must be held and notice
must be published in the official newspaper at least seven days before the hearing and shall
be mailed at least seven days before the hearing to any housing unit owner subject to a fee.
For purposes of this section, the notice must also include:

(1) a statement that all interested persons will be given an opportunity to be heard at
the hearing regarding a proposed housing improvement fee;

(2) the estimated cost of improvements including administrative costs to be paid for
in whole or in part by the fee imposed under the ordinance;

(3) the amount to be charged against the particular property;

(4) the right of the property owner to prepay the entire fee;

(5) the number of years the fee will be in effect; and

(6) a statement that the petition requirements of section 428A.12 have either been
met or do not apply to the proposed fee.

Within six months of the public hearing, the implementing entity may adopt a
resolution imposing a fee within the area not exceeding the amount expressed in the
notice issued under this section.

Prior to adoption of the resolution approving the fee, the condominium associations
located in the housing improvement area shall submit to the implementing entity a
financial plan prepared by an independent third party, acceptable to the implementing
entity and associations, that provides for the associations to finance maintenance and
operation of the common elements in the condominium and a long-range plan to conduct
and finance capital improvements.

Sec. 36.

Minnesota Statutes 2008, section 428A.21, is amended to read:


428A.21 DEADLINE FOR HOUSING IMPROVEMENT DISTRICTS UNDER
GENERAL LAW.

The establishment of a new housing improvement area after June 30, deleted text begin 2009deleted text end new text begin 2013new text end ,
requires enactment of a special law authorizing the establishment of the area.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 37.

Minnesota Statutes 2008, section 429.011, subdivision 2a, is amended to read:


Subd. 2a.

Municipality; certain counties.

"Municipality" also includesnew text begin the
following:
new text end

new text begin (1)new text end a county in the case of construction, reconstruction, or improvement of a county
state-aid highway deleted text begin ordeleted text end new text begin ;
new text end

new text begin (2) anew text end county highway as defined in section 160.02 including curbs and gutters and
storm sewers;
new text begin new text end

new text begin (3) new text end a county exercising its powers and duties under section 444.075, subdivision
1; deleted text begin and
deleted text end new text begin new text end

new text begin (4)new text end a county for expenses not paid for under section 403.113, subdivision 3,
paragraph (b), clause (3)new text begin ; and
new text end

new text begin (5) a county in the case of the abatement of nuisancesnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 38.

Minnesota Statutes 2008, section 446A.086, subdivision 8, is amended to read:


Subd. 8.

Tax levy for repayment.

(a) With the approval of the authority, a
governmental unit may levy in the year the state makes a payment under this section an
amount up to the amount necessary to provide funds for the repayment of the amount paid
by the state plus interest through the date of estimated repayment by the governmental
unit. The proceeds of this levy may be used only for this purpose unless they exceed the
amount actually due. Any excess must be used to repay other state payments made under
this section or must be deposited in the debt redemption fund of the governmental unit.
The amount of aids to be reduced to repay the state are decreased by the amount levied.

(b) If the state is not repaid in full for a payment made under this section by
November 30 of the calendar year following the year in which the state makes the
payment, the authority shall require the governmental unit to certify a property tax levy in
an amount up to the amount necessary to provide funds for repayment of the amount paid
by the state plus interest through the date of estimated repayment by the governmental unit.
To prevent undue hardship, the authority may allow the governmental unit to certify the
levy over a five-year period. The proceeds of the levy may be used only for this purpose
unless they are in excess of the amount actually due, in which case the excess must be used
to repay other state payments made under this section or must be deposited in the debt
redemption fund of the governmental unit. If the authority orders the governmental unit to
levy, the amount of aids reduced to repay the state are decreased by the amount levied.

deleted text begin (c) A levy under this subdivision is an increase in the levy limits of the governmental
unit for purposes of section 275.065, subdivision 6, and must be explained as a specific
increase at the meeting required under that provision.
 deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
 new text end

Sec. 39.

Minnesota Statutes 2008, section 465.719, subdivision 9, is amended to read:


Subd. 9.

Application of other laws.

A corporation created by a political subdivision
under this section must comply with every law that applies to the political subdivision,
as if the corporation is a part of the political subdivision, unless the resolution ratifying
creation of the corporation specifically exempts the corporation from part or all of a law.
If the resolution exempts the corporation from part or all of a law, the resolution must
make a detailed and specific finding as to why the corporation cannot fulfill its purpose if
the corporation is subject to that law. A corporation may not be exempted from chapter
13D, the Minnesota Open Meeting Law, sections 138.163 to 138.25, governing records
management, or chapter 13, the Minnesota Government Data Practices Act. Any affected
or interested person may bring an action in district court to void the resolution on the
grounds that the findings are not sufficiently detailed and specific, or that the corporation
can fulfill its purpose if it is subject to the law from which the resolution exempts the
corporation. Laws that apply to a political subdivision that also apply to a corporation
created by a political subdivision under this subdivision include, but are not limited to:

(1) chapter 13D, the Minnesota Open Meeting Law;

(2) chapter 13, the Minnesota Government Data Practices Act;

(3) section 471.345, the Uniform Municipal Contracting Law;

(4) sections 43A.17, limiting the compensation of employees based on the governor's
salary; 471.991 to 471.999, providing for equitable pay; and 465.72 and 465.722,
governing severance pay;

(5) deleted text begin section 275.065, providing for truth-in-taxation hearings. If any tax revenues of
the political subdivision will be appropriated to the corporation, the corporation's annual
operating and capital budgets must be included in the truth-in-taxation hearing of the
political subdivision that created the corporation;
deleted text end

deleted text begin (6)deleted text end if the corporation issues debt, its debt is included in the political subdivision's
debt limit if it would be included if issued by the political subdivision, and issuance of the
debt is subject to the election and other requirements of chapter 475 and section 471.69;

deleted text begin (7)deleted text end new text begin (6)new text end section 471.895, prohibiting acceptance of gifts from interested parties, and
sections 471.87 to 471.89, relating to interests in contracts;

deleted text begin (8)deleted text end new text begin (7)new text end chapter 466, relating to municipal tort liability;

deleted text begin (9)deleted text end new text begin (8)new text end chapter 118A, requiring deposit insurance or bond or pledged collateral for
deposits;

deleted text begin (10)deleted text end new text begin (9)new text end chapter 118A, restricting investments;

deleted text begin (11)deleted text end new text begin (10)new text end section 471.346, requiring ownership of vehicles to be identified;

deleted text begin (12)deleted text end new text begin (11)new text end sections 471.38 to 471.41, requiring claims to be in writing, itemized, and
approved by the governing board before payment can be made; and

deleted text begin (13)deleted text end new text begin (12)new text end the corporation cannot make advances of pay, make or guarantee loans to
employees, or provide in-kind benefits unless authorized by law.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
 new text end

Sec. 40.

Minnesota Statutes 2008, section 469.053, is amended by adding a subdivision
to read:


new text begin Subd. 4a. new text end

new text begin Seaway port authority levy. new text end

new text begin A levy made under this subdivision shall
replace the mandatory city levy under subdivision 4. A seaway port authority is a special
taxing district under section 275.066 and may levy a tax in any year for the benefit of the
seaway port authority. The tax must not exceed 0.01813 percent of taxable market value.
The county auditor shall distribute the proceeds of the property tax levy to the seaway
port authority.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property taxes levied in 2009 and
thereafter, payable in 2010 and thereafter.
 new text end

Sec. 41.

Minnesota Statutes 2008, section 473.121, is amended by adding a subdivision
to read:


new text begin Subd. 37. new text end

new text begin Implicit price deflator. new text end

new text begin "Implicit price deflator" means the implicit
price deflator for government consumption expenditures and gross investment for state
and local governments prepared by the Bureau of Economic Analysis of the United States
Department of Commerce for the 12-month period ending March 31 of the levy year.
 new text end

Sec. 42.

Minnesota Statutes 2008, section 473.13, subdivision 1, is amended to read:


Subdivision 1.

Budget.

(a) On or before December 20 of each yearnew text begin ,new text end the councildeleted text begin ,
after the public hearing required in section 275.065,deleted text end shall adopt a final budget covering its
anticipated receipts and disbursements for the ensuing year and shall decide upon the total
amount necessary to be raised from ad valorem tax levies to meet its budget. The budget
shall state in detail the expenditures for each program to be undertaken, including the
expenses for salaries, consultant services, overhead, travel, printing, and other items. The
budget shall state in detail the capital expenditures of the council for the budget year, based
on a five-year capital program adopted by the council and transmitted to the legislature.
After adoption of the budget and no later than five working days after December 20, the
council shall certify to the auditor of each metropolitan county the share of the tax to be
levied within that county, which must be an amount bearing the same proportion to the
total levy agreed on by the council as the net tax capacity of the county bears to the net tax
capacity of the metropolitan area. The maximum amount of any levy made for the purpose
of this chapter may not exceed the limits set by the statute authorizing the levy.

(b) Each even-numbered year the council shall prepare for its transit programs a
financial plan for the succeeding three calendar years, in half-year segments. The financial
plan must contain schedules of user charges and any changes in user charges planned or
anticipated by the council during the period of the plan. The financial plan must contain a
proposed request for state financial assistance for the succeeding biennium.

(c) In addition, the budget must show for each year:

(1) the estimated operating revenues from all sources including funds on hand at the
beginning of the year, and estimated expenditures for costs of operation, administration,
maintenance, and debt service;

(2) capital improvement funds estimated to be on hand at the beginning of the year
and estimated to be received during the year from all sources and estimated cost of capital
improvements to be paid out or expended during the year, all in such detail and form as
the council may prescribe; and

(3) the estimated source and use of pass-through funds.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
 new text end

Sec. 43.

Minnesota Statutes 2008, section 473.167, subdivision 3, is amended to read:


Subd. 3.

Tax.

The council may levy a tax on all taxable property in the metropolitan
area, as defined in section 473.121, to provide funds for loans made pursuant to
subdivisions 2 and 2a. This tax for the right-of-way acquisition loan fund shall be certified
by the council, levied, and collected in the manner provided by section 473.13. The tax
shall be in addition to that authorized by section 473.249 and any other law and shall not
affect the amount or rate of taxes which may be levied by the council or any metropolitan
agency or local governmental unit. The amount of the levy shall be as determined and
certified by the council, provided that the tax levied by the Metropolitan Council for the
right-of-way acquisition loan fund shall not exceed $2,828,379 for taxes payable in 2004
and $2,828,379 for taxes payable in 2005. The amount of the levy for taxes payable in
2006 and subsequent years shall not exceed the product of (1) the Metropolitan Council's
property tax levy limitation under this subdivision for the previous year, multiplied by
(2) one plus a percentage equal to the growth in the implicit price deflator deleted text begin as defined
in section 275.70, subdivision 2deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2009, payable
in 2010, and thereafter.
 new text end

Sec. 44.

Minnesota Statutes 2008, section 473.249, subdivision 1, is amended to read:


Subdivision 1.

Indexed limit.

(a) The Metropolitan Council may levy a tax on all
taxable property in the metropolitan area defined in section 473.121 to provide funds for
the purposes of sections 473.121 to 473.249 and for the purpose of carrying out other
responsibilities of the council as provided by law. This tax for general purposes shall be
levied and collected in the manner provided by section 473.13.

(b) The property tax levied by the Metropolitan Council for general purposes shall
not exceed $10,522,329 for taxes payable in 2004 and $10,522,329 for taxes payable
in 2005.

(c) The property tax levy limitation for general purposes for taxes payable in 2006
and subsequent years shall not exceed the product of: (1) the Metropolitan Council's
property tax levy limitation for general purposes for the previous year determined under
this subdivision multiplied by (2) one plus a percentage equal to the growth in the implicit
price deflator deleted text begin as defined in section 275.70, subdivision 2deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2009, payable
in 2010, and thereafter.
 new text end

Sec. 45.

Minnesota Statutes 2008, section 473.253, subdivision 1, is amended to read:


Subdivision 1.

Sources of funds.

The council shall credit to the livable communities
demonstration account the revenues provided in this subdivision. This tax shall be levied
and collected in the manner provided by section 473.13. The levy shall not exceed the
following amount for the years specified:

(1) for taxes payable in 2004 and 2005, $8,259,070; and

(2) for taxes payable in 2006 and subsequent years, the product of (i) the property
tax levy limit under this subdivision for the previous year multiplied by (ii) one plus a
percentage equal to the growth in the implicit price deflator deleted text begin as defined in section 275.70,
subdivision 2deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2009, payable
in 2010, and thereafter.
 new text end

Sec. 46.

Minnesota Statutes 2008, section 473F.08, subdivision 3, is amended to read:


Subd. 3.

Apportionment of levy.

The county auditor shall apportion the levy
of each governmental unit in the auditor's county in the manner prescribed by this
subdivision. The auditor shall:

(a) deleted text begin by August 20,deleted text end determine the areawide portion of the levy for each governmental
unit by multiplying the local tax rate of the governmental unit for the deleted text begin precedingdeleted text end new text begin currentnew text end
levy year times the distribution value set forth in subdivision 2, clause (b);new text begin and
new text end

(b) deleted text begin by September 5,deleted text end determine the local portion of the current year's levy by
subtracting the resulting amount from clause (a) from the governmental unit's current
year's levydeleted text begin ;
deleted text end

deleted text begin (c) for determinations made under clause (a) in the case of school districts, for
deleted text end deleted text begin taxes payable in 2002, exclude the general education tax rate and the portion of the
deleted text end deleted text begin referendum tax rate attributable to the first $415 per pupil unit from the local tax rate for
deleted text end deleted text begin the preceding levy year;
 deleted text end

deleted text begin (d) for determinations made under clause (a) in the case of the Metropolitan Council,
deleted text end deleted text begin for taxes payable in 2002, exclude the transit operating tax rate from the local tax rate
deleted text end deleted text begin for the preceding levy year; and
 deleted text end

deleted text begin (e) for determinations made under clause (a) in the case of transit opt-out cities,
deleted text end deleted text begin for taxes payable in 2002, exclude the opt-out transit rate from the local tax rate for the
deleted text end deleted text begin preceding levy yeardeleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2014 and
subsequent years.
 new text end

Sec. 47.

Minnesota Statutes 2008, section 473F.08, subdivision 5, is amended to read:


Subd. 5.

Areawide tax rate.

new text begin (a) new text end On or before deleted text begin August 25deleted text end new text begin February 5new text end of each year,
the county auditor shall certify to the administrative auditor that portion of the levy of
each governmental unit determined under subdivisions 3, clause (a), 3a, and 3b. The
administrative auditor shall then determine the areawide tax rate sufficient to yield an
amount equal to the sum of such levies from the areawide net tax capacity.

new text begin (b)new text end On or before deleted text begin September 1deleted text end new text begin February 10new text end of each year, the administrative auditor
shall certify the areawide tax rate to each of the county auditors.

new text begin (c) For the purposes of the notice required under section 275.065, the deadline
for the certification under paragraph (a) is October 10 and the deadline for certification
under paragraph (b) is October 15.
 new text end

new text begin (d) For any governmental unit for which the county auditor has not yet determined
the local tax rate by January 31, the county auditor shall determine the areawide portion
of the levy based on an estimated tax rate. In the following year, the distribution levy
of the unit must be adjusted to correct for the difference between the distribution levy
actually received and the distribution levy that would have been received if the actual tax
rate had been used.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2014 and
subsequent years.
 new text end

Sec. 48.

Minnesota Statutes 2008, section 475.58, subdivision 1, is amended to read:


Subdivision 1.

Approval by electors; exceptions.

Obligations authorized by law or
charter may be issued by any municipality upon obtaining the approval of a majority of
the electors voting on the question of issuing the obligations, but an election shall not be
required to authorize obligations issued:

(1) to pay any unpaid judgment against the municipality;

(2) for refunding obligations;

(3) for an improvement or improvement program, which obligation is payable wholly
or partly from the proceeds of special assessments levied upon property specially benefited
by the improvement or by an improvement within the improvement program, or from tax
increments, as defined in section 469.174, subdivision 25, including obligations which are
the general obligations of the municipality, if the municipality is entitled to reimbursement
in whole or in part from the proceeds of such special assessments or tax increments and
not less than 20 percent of the cost of the improvement or the improvement program is to
be assessed against benefited property or is to be paid from the proceeds of federal grant
funds or a combination thereof, or is estimated to be received from tax increments;

(4) payable wholly from the income of revenue producing conveniences;

(5) under the provisions of a home rule charter which permits the issuance of
obligations of the municipality without election;

(6) under the provisions of a law which permits the issuance of obligations of a
municipality without an election;

(7) to fund pension or retirement fund or postemployment benefit liabilities pursuant
to section 475.52, subdivision 6;

(8) under a capital improvement plan under section 373.40; deleted text begin anddeleted text end

(9) under sections 469.1813 to 469.1815 (property tax abatement authority bonds), if
the proceeds of the bonds are not used for a purpose prohibited under section 469.176,
subdivision 4g, paragraph (b)new text begin ; and
new text end

new text begin (10) under section 475.755new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 49.

new text begin [475.755] EMERGENCY DEBT CERTIFICATES.
 new text end

new text begin (a) If at any time during a fiscal year beginning before January 1, 2012, the receipts
of a local government are reasonably expected to be reduced below the amount provided
in the local government's budget when the final property tax levy to be collected during
the fiscal year was certified and the receipts are insufficient to meet the expenses incurred
or to be incurred during the fiscal year, the governing body of the local government may
authorize and sell certificates of indebtedness to mature within two years or less from the
end of the fiscal year in which the certificates are issued. The maximum principal amount
of the certificates that it may issue in a fiscal year is limited to the expected reduction in
receipts plus the cost of issuance. The certificates may be issued in the manner and on
the terms the governing body determines by resolution.
new text end

new text begin (b) The governing body of the local government shall levy taxes for the payment of
principal and interest on the certificates in accordance with section 475.61.
 new text end

new text begin (c) The certificates are not to be included in the net debt of the issuing local
government.
new text end

new text begin (d) For purposes of this section, the following terms have the meanings given:
 new text end

new text begin (1) "Local government" means a statutory or home rule charter city, a town, or
a county.
 new text end

new text begin (2) "Receipts" includes the following amounts scheduled to be received by the
local government for the fiscal year from:
 new text end

new text begin (i) taxes;
 new text end

new text begin (ii) aid payments previously certified by the state to be paid to the local government;
 new text end

new text begin (iii) state reimbursement payments for property tax credits; and
 new text end

new text begin (iv) any other source.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 50.

Laws 1976, chapter 162, section 3, as amended by Laws 1991, chapter 167,
section 3, is amended to read:


Sec. 3. COOPERATION.

The Red River watershed management board may cooperate with water management
and flood control authorities in Minnesota, North Dakota, South Dakota, and the province
of Manitoba and may enter into contracts, compacts and agreements which may be
necessary to insure integration of its projects, to control the effects of flooding or to assure
the beneficial use of water in the Red River basin.new text begin The Red River Watershed Management
Board may conduct its meetings at a public facility within the Red River basin, or within
the jurisdiction of an authority with which the Red River Watershed Management Board is
authorized to cooperate.
new text end

Sec. 51.

Laws 2001, First Special Session chapter 5, article 3, section 8, the effective
date, as amended by Laws 2005, chapter 151, article 3, section 19, and Laws 2006, chapter
259, article 4, section 20, is amended to read:


EFFECTIVE DATE. This section is effective for taxes levied in 2002, payable in
2003deleted text begin , through taxes levied in 2011, payable in 2012deleted text end new text begin and thereafternew text end .

Sec. 52.

Laws 2008, chapter 366, article 6, section 9, the effective date, is amended to
read:


EFFECTIVE DATE.

This section is effective for taxes payable in 2010 and
thereafternew text begin on land platted after May 18, 2008new text end .

Sec. 53.

Laws 2008, chapter 366, article 6, section 10, the effective date, is amended to
read:


EFFECTIVE DATE.

This section is effective for taxes payable in 2010 and
thereafternew text begin on land platted after May 18, 2008new text end .

Sec. 54.

Laws 2009, chapter 12, article 2, section 5, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) In this section, the terms defined in this subdivision
have the meanings given them.

(b) "Conservation management plan" means a written document deleted text begin approved by the
soil and water conservation districtdeleted text end providing a framework for site-specific healthy,
productive, and sustainable conservation resources. A conservation management plan
must include at least the following:

(1) conservation management goals for the land;

(2) a reliable field inventory of the individual conservation practices and cover types;

(3) a description of the soil type and quality;

(4) an aerial photo or map of the vegetation and other natural features of the land
clearly indicating the boundaries of the conservation land;

(5) the proposed future conditions of the land;

(6) prescriptions to meet proposed future conditions of the land;

(7) a recommended timetable for implementing the prescribed practices; and

(8) a legal description of the land encompassing the parcels included in the plan.

deleted text begin (c)deleted text end The Board of Water and Soil Resources shall develop and distribute guidance for
conservation management plan preparation and approvalnew text begin and provide a training course
for plan writers that consists of up to eight hours of instruction. The board may charge a
fee for the coursenew text end .

deleted text begin (d)deleted text end The commissioner of revenue is the final arbiter of disputes arising over plan
approvals.

new text begin (c) "Approved plan writers" are natural resource professionals who are
self-employed, employed by private companies or individuals, nonprofit organizations,
local units of government, or public agencies. Persons employed to write conservation
plans for soil and water conservation districts or federal agencies and University of
Minnesota extension agents are deemed to meet the standards required under this
subdivision. All other plan writers must have attended the training course provided by
the Board of Water and Soil Resources.
 new text end

Sec. 55.

Laws 2009, chapter 12, article 2, section 5, subdivision 2, is amended to read:


Subd. 2.

Requirements.

Class 2a or 2b property that had been assessed under
Minnesota Statutes 2006, section 273.111, or that is part of an agricultural homestead
under Minnesota Statutes, section 273.13, subdivision 23, paragraph (a), is entitled to
valuation and tax deferment under this section if:

(1) the land consists of at least ten acres;

(2) a conservation management plan for the land must be prepared by an approved
plan writer and implemented during the period in which the land is subject to valuation
and deferment under this section;

(3) the land must be enrolled for a minimum of ten years; and

(4) there are no delinquent property taxes on the land.

Real estate may not be enrolled for valuation and deferment under this section
and Minnesota Statutes, sections 273.111, 273.112, or 273.117, or Minnesota Statutes,
chapter 290C, concurrently.

deleted text begin No more than 50 percent of the total acreage of an agricultural homestead may be
deleted text end deleted text begin class 2b property enrolled in this program.
 deleted text end

Sec. 56. new text begin CLOQUET AREA FIRE AND AMBULANCE SPECIAL TAXING
DISTRICT.
new text end

new text begin Subdivision 1. new text end

new text begin Agreement. new text end

new text begin The city of Cloquet and Perch Lake Township, by
resolution of each of their governing bodies, may establish the Cloquet Area Fire and
Ambulance Taxing District for the purpose of providing fire and ambulance services
throughout the district. In this section, "municipality" means home rule charter and
statutory cities, towns, and Indian tribes. The district may exercise all the powers relating
to fire and ambulance services of the municipalities that receive fire and ambulance
services from the district. Any other municipality that is contiguous to a municipality that
is a member of the district may join the district with the agreement of the municipalities
that comprise the district at the time of its application to join.
 new text end

new text begin Subd. 2. new text end

new text begin Board. new text end

new text begin The Cloquet Area Fire and Ambulance Taxing District Board is
governed by a board made up initially of one or more elected officials of the governing
body of each participating municipality in the proportions set out in the establishing
resolution, subject to change as provided in the district's charter, if any, or in the district's
bylaws. Each municipality's representatives serve at the pleasure of that municipality's
governing body.
 new text end

new text begin Subd. 3. new text end

new text begin Tax. new text end

new text begin The district board may impose a property tax on taxable property
in the district. This tax shall be imposed at a rate that does not exceed 0.2835 percent of
taxable market value for taxes payable in 2010. The board shall annually determine the
separate amounts of the levy that are attributable to the cost of providing fire services and
the cost of providing ambulance services. Costs for the provision of ambulance services
shall be levied against taxable property within the area of the district that receive the
services. Costs for the provision of fire services shall be levied against taxable property
within the area of the district that receive the services.
 new text end

new text begin When an additional municipality becomes a member of the district, the additional
cost of providing ambulance and fire services to that municipality will be determined by
the board and added to the maximum levy amount.
 new text end

new text begin Each county auditor of a county that contains a municipality subject to the tax under
this section must collect the tax and pay it to the Fire and Ambulance Special Taxing
District. The district may also impose other fees or charges as allowed by law for the
provision of fire and ambulance services.
 new text end

new text begin Subd. 4. new text end

new text begin Public indebtedness. new text end

new text begin The district may incur debt in the manner provided
for a municipality by Minnesota Statutes, chapter 475, when necessary to accomplish
its duties.
 new text end

new text begin Subd. 5. new text end

new text begin Withdrawal. new text end

new text begin Notice of intent to withdraw from participation in the district
may be given only in the month of January, with a minimum of twelve months notice of
intent to withdraw. Withdrawal becomes effective for taxes levied in the year when the
notice is given. The district and its members may develop and agree upon continuing
obligations after withdrawal of a municipality.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective in Cloquet and Perch Lake Township
the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the
governing body of each.
 new text end

Sec. 57. new text begin PROPERTY TAX TREATMENT OF HORSE BREEDING AND HORSE
BOARDING PROPERTIES.
new text end

new text begin Subdivision 1. new text end

new text begin Study. new text end

new text begin In order to provide for the uniform assessment and
classification for property tax purposes of real property used for horse breeding and
horse boarding activities, the commissioner of revenue, in consultation with the
commissioner of agriculture, shall study the treatment of such properties under current
law. The commissioner must report by February 1, 2010, to the chairs and ranking
minority members of the taxes committees of the senate and the house of representatives,
summarizing the current treatment and making recommendations for needed or useful
law changes.
 new text end

new text begin Subd. 2. new text end

new text begin Appeals to the commissioner. new text end

new text begin A person who has a right, title, interest, or
lien in or upon property that had been classified as agricultural for property tax purposes
for taxes payable in 2009 based on the use of the land for breeding or boarding horses,
may appeal the classification of the land for taxes payable in 2010 to the commissioner
of revenue if the use of the land has not substantially changed. The appeal must be in
written form, and must be received by the commissioner before September 1, 2009. The
commissioner must resolve the appeal by issuance of a written order accompanied by a
statement of the commissioner's reasons for the order, on or before December 31, 2009.
When the commissioner issues an order, a copy must be sent to both the appellant and the
county assessor. The order is appealable in tax court only by the owner or taxpayer, and
only within 60 days of issuance.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 58. new text begin ABATEMENTS FOR BUSINESSES WITH DISRUPTED ACCESS.
new text end

new text begin A governing body of a municipality may abate the taxes imposed by it, in whole or
in part, on the property of a business with an estimated market value of $250,000 or less,
if access to the property has been impeded for a period of more than three consecutive
months, resulting in loss of revenue to the business, due to a public transportation project
in the vicinity of the business.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 or
thereafter.
 new text end

Sec. 59. new text begin REPORT BY ADMINISTRATIVE AUDITOR.
new text end

new text begin The administrative auditor selected pursuant to Minnesota Statutes, section 473F.03,
with the cooperation of the county auditors in the area defined by Minnesota Statutes,
section 473F.02, subdivision 2, shall develop a working model of the metropolitan revenue
distribution system that implements the changes to the system provided in sections 46 and
47. By February 1, 2012, the administrative auditor shall prepare a report to the chairs and
ranking minority members of the house of representatives and senate taxes committees
regarding the working model, including recommendations for amendments to Minnesota
Statutes, chapter 473F, that are needed in order to administer sections 46 and 47.
 new text end

Sec. 60. new text begin PURPOSE; COMMISSIONER GUIDANCE.
new text end

new text begin The purpose of section 6 is not to contract or expand the definition of "institutions
of purely public charity" but to provide clear standards that can be applied uniformly to
determine eligibility for exemption from property taxations. To carry out this purpose and
to promote uniformity in application of the provisions of this section and section 6, the
commissioner of revenue shall prepare a bulletin providing guidance to assessors as to the
commissioner's interpretation of section 6. The bulletin may include a discussion of court
decisions relevant to the requirements in section 6. This guidance must include examples
of facts or circumstances that satisfy the requirement of "a compelling factual reason for
failing to meet the factors in clause (2), (3), or (5)" under section 6. Assessors must
implement the guidance provided in the bulletin when assessing property for which an
exemption as an institution of purely public charity has been requested. The commissioner
shall distribute the bulletin to all assessors by July 1, 2010.
 new text end

Sec. 61. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2008, section 275.065, subdivisions 6b, 6c, 8, 9, and 10, new text end new text begin are
repealed.
 new text end

new text begin (b) new text end new text begin Minnesota Statutes 2008, sections 275.70; 275.71; 275.72; 275.73; 275.74;
and 275.75, new text end new text begin are repealed.
 new text end

new text begin (c) new text end new text begin Minnesota Statutes 2008, section 275.025, subdivision 3, new text end new text begin is repealed.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
 new text end

ARTICLE 5

AIDS AND CREDITS

Section 1.

Minnesota Statutes 2008, section 273.1384, subdivision 4, is amended to
read:


Subd. 4.

Payment.

(a) The commissioner of revenue shall reimburse each local
taxing jurisdiction, other than school districts, for the tax reductions granted under this
section in two equal installments on October 31 and December 26 of the taxes payable
year for which the reductions are granted, including in each payment the prior year
adjustments certified on the abstracts for that taxes payable year. The reimbursements
related to tax increments shall be issued in one installment each year on December 26.

(b) The commissioner of revenue shall certify the total of the tax reductions
granted under this section for each taxes payable year within each school district to the
commissioner of the Department of Education and the commissioner of education shall
pay the reimbursement amounts to each school district as provided in section 273.1392.

new text begin (c) The market value credit reimbursements payable in 2010, 2011, and 2012 for
each city and each county under this section are reduced by the dollar amount of the
reduction in market value credit reimbursements for that city under section 477A.013,
subdivision 11, and for that county under section 477A.0124, subdivision 6. The payable
2010, 2011, or 2012 market value credit reimbursement for a city or county is not reduced
to less than zero by this paragraph.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 2.

Minnesota Statutes 2008, section 290A.23, subdivision 3, is amended to read:


Subd. 3.

Annual appropriation.

For payments made after July 1, 1996, there is
annually appropriated from the general fund to the commissioner of revenue the amount
necessary to make the payments required under section 290A.04, deleted text begin subdivisionsdeleted text end new text begin subdivisionnew text end
2 deleted text begin and 2hdeleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims based on property taxes
payable in 2010 and thereafter.
 new text end

Sec. 3.

Minnesota Statutes 2008, section 477A.011, subdivision 36, is amended to read:


Subd. 36.

City aid base.

(a) Except as otherwise provided in this subdivision,
"city aid base" is zero.

(b) The city aid base for any city with a population less than 500 is increased by
$40,000 for aids payable in calendar year 1995 and thereafter, and the maximum amount
of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also
increased by $40,000 for aids payable in calendar year 1995 only, provided that:

(i) the average total tax capacity rate for taxes payable in 1995 exceeds 200 percent;

(ii) the city portion of the tax capacity rate exceeds 100 percent; and

(iii) its city aid base is less than $60 per capita.

(c) The city aid base for a city is increased by $20,000 in 1998 and thereafter and
the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $20,000 in calendar year 1998 only, provided that:

(i) the city has a population in 1994 of 2,500 or more;

(ii) the city is located in a county, outside of the metropolitan area, which contains a
city of the first class;

(iii) the city's net tax capacity used in calculating its 1996 aid under section
477A.013 is less than $400 per capita; and

(iv) at least four percent of the total net tax capacity, for taxes payable in 1996, of
property located in the city is classified as railroad property.

(d) The city aid base for a city is increased by $200,000 in 1999 and thereafter and
the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $200,000 in calendar year 1999 only, provided that:

(i) the city was incorporated as a statutory city after December 1, 1993;

(ii) its city aid base does not exceed $5,600; and

(iii) the city had a population in 1996 of 5,000 or more.

(e) The city aid base for a city is increased by $150,000 for aids payable in 2000 and
thereafter, and the maximum amount of total aid it may receive under section 477A.013,
subdivision 9, paragraph (c), is also increased by $150,000 in calendar year 2000 only,
provided that:

(1) the city has a population that is greater than 1,000 and less than 2,500;

(2) its commercial and industrial percentage for aids payable in 1999 is greater
than 45 percent; and

(3) the total market value of all commercial and industrial property in the city
for assessment year 1999 is at least 15 percent less than the total market value of all
commercial and industrial property in the city for assessment year 1998.

(f) The city aid base for a city is increased by $200,000 in 2000 and thereafter, and
the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $200,000 in calendar year 2000 only, provided that:

(1) the city had a population in 1997 of 2,500 or more;

(2) the net tax capacity of the city used in calculating its 1999 aid under section
477A.013 is less than $650 per capita;

(3) the pre-1940 housing percentage of the city used in calculating 1999 aid under
section 477A.013 is greater than 12 percent;

(4) the 1999 local government aid of the city under section 477A.013 is less than
20 percent of the amount that the formula aid of the city would have been if the need
increase percentage was 100 percent; and

(5) the city aid base of the city used in calculating aid under section 477A.013
is less than $7 per capita.

(g) The city aid base for a city is increased by $102,000 in 2000 and thereafter, and
the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $102,000 in calendar year 2000 only, provided that:

(1) the city has a population in 1997 of 2,000 or more;

(2) the net tax capacity of the city used in calculating its 1999 aid under section
477A.013 is less than $455 per capita;

(3) the net levy of the city used in calculating 1999 aid under section 477A.013 is
greater than $195 per capita; and

(4) the 1999 local government aid of the city under section 477A.013 is less than
38 percent of the amount that the formula aid of the city would have been if the need
increase percentage was 100 percent.

(h) The city aid base for a city is increased by $32,000 in 2001 and thereafter, and
the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $32,000 in calendar year 2001 only, provided that:

(1) the city has a population in 1998 that is greater than 200 but less than 500;

(2) the city's revenue need used in calculating aids payable in 2000 was greater
than $200 per capita;

(3) the city net tax capacity for the city used in calculating aids available in 2000
was equal to or less than $200 per capita;

(4) the city aid base of the city used in calculating aid under section 477A.013
is less than $65 per capita; and

(5) the city's formula aid for aids payable in 2000 was greater than zero.

(i) The city aid base for a city is increased by $7,200 in 2001 and thereafter, and
the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $7,200 in calendar year 2001 only, provided that:

(1) the city had a population in 1998 that is greater than 200 but less than 500;

(2) the city's commercial industrial percentage used in calculating aids payable in
2000 was less than ten percent;

(3) more than 25 percent of the city's population was 60 years old or older according
to the 1990 census;

(4) the city aid base of the city used in calculating aid under section 477A.013
is less than $15 per capita; and

(5) the city's formula aid for aids payable in 2000 was greater than zero.

(j) The city aid base for a city is increased by $45,000 in 2001 and thereafter and
by an additional $50,000 in calendar years 2002 to 2011, and the maximum amount of
total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also
increased by $45,000 in calendar year 2001 only, and by $50,000 in calendar year 2002
only, provided that:

(1) the net tax capacity of the city used in calculating its 2000 aid under section
477A.013 is less than $810 per capita;

(2) the population of the city declined more than two percent between 1988 and 1998;

(3) the net levy of the city used in calculating 2000 aid under section 477A.013 is
greater than $240 per capita; and

(4) the city received less than $36 per capita in aid under section 477A.013,
subdivision 9, for aids payable in 2000.

(k) The city aid base for a city with a population of 10,000 or more which is located
outside of the seven-county metropolitan area is increased in 2002 and thereafter, and the
maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (b) or (c), is also increased in calendar year 2002 only, by an amount equal to
the lesser of:

(1)(i) the total population of the city, as determined by the United States Bureau of
the Census, in the 2000 census, (ii) minus 5,000, (iii) times 60; or

(2) $2,500,000.

(l) The city aid base is increased by $50,000 in 2002 and thereafter, and the
maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $50,000 in calendar year 2002 only, provided that:

(1) the city is located in the seven-county metropolitan area;

(2) its population in 2000 is between 10,000 and 20,000; and

(3) its commercial industrial percentage, as calculated for city aid payable in 2001,
was greater than 25 percent.

(m) The city aid base for a city is increased by $150,000 in calendar years 2002 to
2011 and by an additional $75,000 in calendar years 2009 to 2014 and the maximum
amount of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is
also increased by $150,000 in calendar year 2002 only and by $75,000 in calendar year
2009 only, provided that:

(1) the city had a population of at least 3,000 but no more than 4,000 in 1999;

(2) its home county is located within the seven-county metropolitan area;

(3) its pre-1940 housing percentage is less than 15 percent; and

(4) its city net tax capacity per capita for taxes payable in 2000 is less than $900
per capita.

(n) The city aid base for a city is increased by $200,000 beginning in calendar
year 2003 and the maximum amount of total aid it may receive under section 477A.013,
subdivision 9, paragraph (c), is also increased by $200,000 in calendar year 2003 only,
provided that the city qualified for an increase in homestead and agricultural credit aid
under Laws 1995, chapter 264, article 8, section 18.

(o) The city aid base for a city is increased by $200,000 in 2004 only and the
maximum amount of total aid it may receive under section 477A.013, subdivision 9, is
also increased by $200,000 in calendar year 2004 only, if the city is the site of a nuclear
dry cask storage facility.

(p) The city aid base for a city is increased by $10,000 in 2004 and thereafter and the
maximum total aid it may receive under section 477A.013, subdivision 9, is also increased
by $10,000 in calendar year 2004 only, if the city was included in a federal major disaster
designation issued on April 1, 1998, and its pre-1940 housing stock was decreased by
more than 40 percent between 1990 and 2000.

(q) The city aid base for a city is increased by $30,000 in 2009 and thereafter and the
new text begin minimum and new text end maximum total aid it may receive under section 477A.013, subdivision 9,
is also increased by deleted text begin $25,000deleted text end new text begin $30,000new text end in calendar year deleted text begin 2006deleted text end new text begin 2010new text end only if the city had a
population in 2003 of at least 1,000 and has a state park for which the city provides rescue
services and which comprised at least 14 percent of the total geographic area included
within the city boundaries in 2000.

(r) The city aid base for a city is increased by $80,000 in 2009 and thereafter and
the minimum and maximum amount of total aid it may receive under section 477A.013,
subdivision 9, is also increased by $80,000 in calendar year 2009 only, if:

(1) as of May 1, 2006, at least 25 percent of the tax capacity of the city is proposed
to be placed in trust status as tax-exempt Indian land;

(2) the placement of the land is being challenged administratively or in court; and

(3) due to the challenge, the land proposed to be placed in trust is still on the tax
rolls as of May 1, 2006.

(s) The city aid base for a city is increased by $100,000 in 2007 and thereafter and
the minimum and maximum total amount of aid it may receive under this section is also
increased in calendar year 2007 only, provided that:

(1) the city has a 2004 estimated population greater than 200 but less than 2,000;

(2) its city net tax capacity for aids payable in 2006 was less than $300 per capita;

(3) the ratio of its pay 2005 tax levy compared to its city net tax capacity for aids
payable in 2006 was greater than 110 percent; and

(4) it is located in a county where at least 15,000 acres of land are classified as
tax-exempt Indian reservations according to the 2004 abstract of tax-exempt property.

(t) The city aid base for a city is increased by $30,000 in 2009 only, and the
maximum total aid it may receive under section 477A.013, subdivision 9, is also increased
by $30,000 in calendar year 2009, only if the city had a population in 2005 of less than
3,000 and the city's boundaries as of 2007 were formed by the consolidation of two cities
and one township in 2002.

(u) The city aid base for a city is increased by $100,000 in 2009 and thereafter, and
the maximum total aid it may receive under section 477A.013, subdivision 9, is also
increased by $100,000 in calendar year 2009 only, if the city had a city net tax capacity for
aids payable in 2007 of less than $150 per capita and the city experienced flooding on
March 14, 2007, that resulted in evacuation of at least 40 homes.

(v) The city aid base for a city is increased by $100,000 in 2009 to 2013, and the
maximum total aid it may receive under section 477A.013, subdivision 9, is also increased
by $100,000 in calendar year 2009 only, if the city:

(1) is located outside of the Minneapolis-St. Paul standard metropolitan statistical
area;

(2) has a 2005 population greater than 7,000 but less than 8,000; and

(3) has a 2005 net tax capacity per capita of less than $500.

(w) The city aid base is increased by $25,000 in calendar years 2009 to 2013 and the
maximum amount of total aid it may receive under section 477A.013, subdivision 9, is
increased by $25,000 in calendar year 2009 only, provided that:

(1) the city is located in the seven-county metropolitan area;

(2) its population in 2006 is less than 200; and

(3) the percentage of its housing stock built before 1940, according to the 2000
United States Census, is greater than 40 percent.

(x) The city aid base is increased by $90,000 in calendar year 2009 only and the
minimum and maximum total amount of aid it may receive under section 477A.013,
subdivision 9, is also increased by $90,000 in calendar year 2009 only, provided that the
city is located in the seven-county metropolitan area, has a 2006 population between 5,000
and 7,000 and has a 1997 population of over 7,000.

new text begin (y) The city aid base is increased by $150,000 in calendar year 2010 only, and the
minimum and maximum total amount of aid it may receive under section 477A.013,
subdivision 9, is also increased by $150,000 in calendar year 2010 only, provided that the
city is located outside the seven-county metropolitan area, with a 2006 population greater
than 425 but less than 475, and has an adjusted net tax capacity per capita greater than
$900 based on the data used to certify the 2009 aid distribution.
 new text end

new text begin (z) The city aid base is increased by $163,036 in calendar years 2010 and 2011
only, and the minimum and maximum total amount of aid it may receive under section
477A.013, subdivision 9, is also increased by $163,036 in calendar years 2010 and 2011
only, provided that the city is located outside the seven-county metropolitan area, with a
2006 population greater than 3,500, had a pre-1940 housing percentage greater than 29
percent, a commercial-industrial percentage less than nine percent, and had a population
decline percentage of zero based on the data used to certify the 2009 aid distribution.
 new text end

Sec. 4.

Minnesota Statutes 2008, section 477A.0124, is amended by adding a
subdivision to read:


new text begin Subd. 6. new text end

new text begin Aid adjustments. new text end

new text begin For aid payable in 2010, 2011, and 2012 only, each
county's total distribution amount under this section is equal to its distribution amount
under this section for aid payable in each year prior to the reductions under section
477A.0133, minus an aid reduction amount equal to 0.5 percent of the county's levy plus
aid revenue base determined under section 477A.0133, subdivision 2, for the previous year.
 new text end

new text begin Each county's reduction amount for each year is limited to the sum of the county's
distributions under this section and section 273.1384 for that year before the reductions
under this paragraph.
 new text end

new text begin The aid reduction is applied first to the county's distributions under this section, and
then, if necessary, to reduce the county's reimbursements under section 273.1384.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 5.

Minnesota Statutes 2008, section 477A.013, is amended by adding a
subdivision to read:


new text begin Subd. 11. new text end

new text begin 2010, 2011, and 2012 city aid. new text end

new text begin For aid payable in 2010, 2011, and 2012
only, each city's distribution amount under subdivision 9 is reduced by an amount equal to
0.7 percent of the city's levy plus aid revenue base determined under section 477A.0133
for the previous year.
 new text end

new text begin The reduction is limited to the sum of the city's distribution under this section and
the city's reimbursement under section 273.1384 before the reductions in this subdivision.
 new text end

new text begin The reduction amount for each year is applied first to the city's distribution under
this section, and then, if necessary, to the city's reimbursements under section 273.1384
for that year.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 6.

new text begin [477A.0133] 2010, 2011, and 2012 CITY AND COUNTY AID
REDUCTIONS.
 new text end

new text begin Subdivision 1. new text end

new text begin City aid. new text end

new text begin The commissioner of revenue shall compute an aid
reduction amount for each city for aid payable in 2010, 2011, and 2012 equal to 0.7
percent of the city's levy plus aid revenue base for the previous year.
 new text end

new text begin The "levy plus aid revenue base" for a city is the sum of that city's certified property
tax levy for taxes payable in the previous year, plus the sum of the amounts the city was
certified to receive in the previous year as:
 new text end

new text begin (1) local government aid under section 477A.013; and
 new text end

new text begin (2) taconite aids under sections 298.28 and 298.282, including any aid which was
required to be placed in a special fund for expenditure in the next succeeding year.
 new text end

new text begin The reduction is limited to the sum of the city's payable distributions in each year,
prior to the reductions under this subdivision, under sections 273.1384 and 477A.013.
 new text end

new text begin The reduction is applied first to the city's distribution under section 477A.013, and
then, if necessary, to the city's reimbursements under section 273.1384.
 new text end

new text begin To the extent that sufficient information is available on each successive payment
date within the year, the commissioner of revenue shall pay any remaining distribution or
reimbursement amount that is reduced under this subdivision in equal installments on the
payment dates provided by law.
 new text end

new text begin Subd. 2. new text end

new text begin County aid. new text end

new text begin The commissioner of revenue shall compute an aid reduction
amount for each county for aid payable in 2010, 2011, and 2012 equal to 0.5 percent of the
county's levy plus aid revenue base for the previous year.
 new text end

new text begin The "levy plus aid revenue base" for a county is the sum of that county's certified
property tax levy for taxes payable in the previous year, plus the sum of the amounts the
county was certified to receive in the previous year as:
 new text end

new text begin (1) county program aid under section 477A.0124; and
 new text end

new text begin (2) taconite aids under sections 298.28 and 298.282, including any aid which was
required to be placed in a special fund for expenditure in the next succeeding year.
 new text end

new text begin The reduction is limited to the sum of the county's payable 2009 distributions under
sections 273.1384 and 477A.0124.
 new text end

new text begin The aid reduction is applied first to the county's distributions under section
477A.0124, and then, if necessary, to reduce the county's reimbursements under section
273.1384.
 new text end

new text begin To the extent that sufficient information is available on each payment date in each
year, the commissioner of revenue shall pay any remaining distribution or reimbursement
amount that is reduced under this section in equal installments on the payment dates
provided by law.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 7. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2008, section 290A.04, subdivision 2h, new text end new text begin is repealed.
 new text end

new text begin (b) new text end new text begin Minnesota Statutes 2008, section 477A.16, new text end new text begin is repealed.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective for claims based on property taxes
payable in 2010. Paragraph (b) is effective for aids payable in 2010.
 new text end

ARTICLE 6

LOCAL DEVELOPMENT

Section 1.

new text begin [414.023] INCORPORATIONS TEMPORARILY PROHIBITED.
 new text end

new text begin The chief administrative law judge must not order any municipal incorporations
after June 1, 2009, and before June 1, 2014.
 new text end

Sec. 2.

Minnesota Statutes 2008, section 428A.01, subdivision 3, is amended to read:


Subd. 3.

Special services.

"Special services" has the meaning given in the city's
ordinance deleted text begin butdeleted text end new text begin , provided thatnew text end special services may not include a service that is ordinarily
provided throughout the city from general fund revenues of the city unless an increased
level of the service is provided in the special service district.

new text begin For a city that includes a portion of the central corridor light rail transit project,
"special services" includes public redevelopment costs related to the project, including the
cost of programs to mitigate lost parking caused by the project.
 new text end

Sec. 3.

Minnesota Statutes 2008, section 469.174, is amended by adding a subdivision
to read:


new text begin Subd. 10c. new text end

new text begin Compact development district. new text end

new text begin "Compact development district" means
a type of tax increment financing district consisting of a project, or portions of a project,
within which the authority finds by resolution that the following conditions are satisfied:
 new text end

new text begin (1) parcels consisting of 70 percent of the area of the district are occupied by
buildings or other structures that are classified as class 3a property under section 273.13,
subdivision 24; and
 new text end

new text begin (2) the planned redevelopment or development of the district, when completed, will
increase the total square footage of buildings, classified as class 3a under section 273.13,
subdivision 24, occupying the district by three times or more relative to the square footage
of similar buildings occupying the district when the resolution was approved.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for districts for which the request for
certification is made after June 30, 2009.
 new text end

Sec. 4.

Minnesota Statutes 2008, section 469.174, subdivision 22, is amended to read:


Subd. 22.

Tourism facility.

"Tourism facility" means property that:

(1) is located in a county where the median income is no more than 85 percent of
the state median income;

(2) is located in a county in development region 2, 3, 4, deleted text begin ordeleted text end 5, new text begin or 7E, new text end as defined
in section 462.385;

(3) is not located in a city with a population in excess of 20,000; and

(4) is acquired, constructed, or rehabilitated for use as a convention and meeting
facility that is privately owned, marina, hotel, motel, lodging facility, or nonhomestead
dwelling unit that in each case is intended to serve primarily individuals from outside
the county.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for requests for certification made
after June 30, 2009.
 new text end

Sec. 5.

Minnesota Statutes 2008, section 469.175, subdivision 1, is amended to read:


Subdivision 1.

Tax increment financing plan.

(a) A tax increment financing plan
shall contain:

(1) a statement of objectives of an authority for the improvement of a project;

(2) a statement as to deleted text begin the development program for the project, includingdeleted text end the property
within the project, if any, that the authority intends to acquire, identified by parcel number,
identifiable property name, block, or other appropriate means indicating the area in which
the authority intends to acquire properties;

(3) a list of any development activities that the plan proposes to take place within
the project, deleted text begin for which contracts have been entered into at the time of the preparation of
the plan,deleted text end including the names of the parties to the contract, the activity governed by the
contract, the new text begin estimated new text end cost stated in the contract, and the expected date of completion
of that activity;

(4) deleted text begin identification or description of the type of any other specific development
reasonably expected to take place within the project, and the date when the development is
likely to occur;deleted text end

deleted text begin (5)deleted text end estimates of the following:

(i) cost of the project, including administrative expensesdeleted text begin , except that if part of the
cost of the project is paid or financed with increment from the tax increment financing
district, the tax increment financing plan for the district must contain an estimate of the
amount of the cost of the project, including administrative expenses,deleted text end new text begin and interest costsnew text end
that will be paid or financed with tax increments from the districtnew text begin , but not to exceed the
estimated tax increments to be generated by the development activitynew text end ;

(ii) amount of deleted text begin bonded indebtedness to be incurreddeleted text end new text begin bonds to be issuednew text end ;

(iii) deleted text begin sources of revenue to finance or otherwise pay public costs;deleted text end

deleted text begin (iv)deleted text end the deleted text begin most recentdeleted text end new text begin original new text end net tax capacity of taxable real property within the tax
increment financing district and within any subdistrict;

deleted text begin (v)deleted text end new text begin (iv) new text end the estimated captured net tax capacity of the tax increment financing district
at completion; and

deleted text begin (vi)deleted text end new text begin (v)new text end the duration of the tax increment financing district's and any subdistrict's
existence;

deleted text begin (6)deleted text end new text begin (5)new text end statements of the authority's alternate estimates of the impact of tax increment
financing on the net tax capacities of all taxing jurisdictions in which the tax increment
financing district is located in whole or in part. For purposes of one statement, the
authority shall assume that the estimated captured net tax capacity would be available to
the taxing jurisdictions without creation of the district, and for purposes of the second
statement, the authority shall assume that none of the estimated captured net tax capacity
would be available to the taxing jurisdictions without creation of the district or subdistrict;

deleted text begin (7)deleted text end new text begin (6)new text end identification and description of studies and analyses used to make the
determination set forth in subdivision 3, clause (2); and

deleted text begin (8)deleted text end new text begin (7)new text end identification of all parcels to be included in the district or any subdistrict.

(b) The authority may specify in the tax increment financing plan the first year in
which it elects to receive increment, up to four years following the year of approval of the
district. This paragraph does not apply to an economic development district.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax increment financing plans
approved after June 30, 2009.
 new text end

Sec. 6.

Minnesota Statutes 2008, section 469.175, subdivision 6, is amended to read:


Subd. 6.

Annual financial reporting.

(a) The state auditor shall develop a uniform
system of accounting and financial reporting for tax increment financing districts. The
system of accounting and financial reporting shall, as nearly as possible:

(1) provide for full disclosure of the sources and uses of deleted text begin public funds indeleted text end new text begin tax
increments ofnew text end the district;

(2) permit comparison and reconciliation with the affected local government's
accounts and financial reports;

(3) permit auditing of the funds expended on behalf of a district, including a single
district that is part of a multidistrict project or that is funded in part or whole through
the use of a development account funded with tax increments from other districts or
with other public money;

(4) be consistent with generally accepted accounting principles.

(b) The authority must annually submit to the state auditor a financial report
in compliance with paragraph (a). Copies of the report must also be provided to the
county auditor and to the governing body of the municipality, if the authority is not
the municipality. To the extent necessary to permit compliance with the requirement
of financial reporting, the county and any other appropriate local government unit or
private entity must provide the necessary records or information to the authority or the
state auditor as provided by the system of accounting and financial reporting developed
pursuant to paragraph (a). The authority must submit the annual report for a year on or
before August 1 of the next year.

(c) The annual financial report must also include the following items:

(1) the original net tax capacity of the district and any subdistrict under section
469.177, subdivision 1;

(2) the net tax capacity for the reporting period of the district and any subdistrict;

(3) the captured net tax capacity of the district;

(4) any fiscal disparity deduction from the captured net tax capacity under section
469.177, subdivision 3;

(5) the captured net tax capacity retained for tax increment financing under section
469.177, subdivision 2, paragraph (a), clause (1);

(6) any captured net tax capacity distributed among affected taxing districts under
section 469.177, subdivision 2, paragraph (a), clause (2);

(7) the type of district;

(8) the date the municipality approved the tax increment financing plan and the
date of approval of any modification of the tax increment financing plan, the approval of
which requires notice, discussion, a public hearing, and findings under subdivision 4,
paragraph (a);

(9) the date the authority first requested certification of the original net tax capacity
of the district and the date of the request for certification regarding any parcel added
to the district;

(10) the date the county auditor first certified the original net tax capacity of the
district and the date of certification of the original net tax capacity of any parcel added
to the district;

(11) the month and year in which the authority has received or anticipates it will
receive the first increment from the district;

(12) the date the district must be decertified;

(13) for the reporting period and prior years of the district, the actual amount
received from, at least, the following categories:

(i) tax increments paid by the captured net tax capacity retained for tax increment
financing under section 469.177, subdivision 2, paragraph (a), clause (1), but excluding
any excess taxes;

(ii) tax increments that are interest or other investment earnings on or from tax
increments;

(iii) tax increments that are proceeds from the sale or lease of property, tangible or
intangible, purchased by the authority with tax increments;

(iv) tax increments that are repayments of loans or other advances made by the
authority with tax increments;

(v) bond deleted text begin or loandeleted text end proceeds;new text begin and
new text end

(vi) deleted text begin special assessments;
deleted text end

deleted text begin (vii) grants;
 deleted text end

deleted text begin (viii) transfers from funds not exclusively associated with the district; and
 deleted text end

deleted text begin (ix)deleted text end the market value homestead credit paid to the authority under section 273.1384;

(14) for the reporting period and for the prior years of the district, the actual amount
expended for, at least, the following categories:

(i) acquisition of land and buildings through condemnation or purchase;

(ii) site improvements or preparation costs;

(iii) installation of public utilities, parking facilities, streets, roads, sidewalks, or
other similar public improvements;

(iv) administrative costs, including the allocated cost of the authority;new text begin and
new text end

(v) deleted text begin public park facilities, facilities for social, recreational, or conference purposes, or
other similar public improvements; anddeleted text end new text begin for housing districts, construction of affordable
housing;
new text end

deleted text begin (vi) transfers to funds not exclusively associated with the district;
 deleted text end

(15) the amount of any payments for activities and improvements located outside of
the district that are paid for or financed with tax increments;

(16) the amount of payments of principal and interest that are made during the
reporting period on any nondefeased:

(i) general obligation tax increment financing bonds;new text begin and
new text end

(ii) other tax increment financing bondsnew text begin , including pay-as-you-go contracts and
notesnew text end ; deleted text begin and
deleted text end

deleted text begin (iii) notes and pay-as-you-go contracts;
 deleted text end

(17) the principal amount, at the end of the reporting period, of any nondefeased:

(i) general obligation tax increment financing bonds;new text begin and
new text end

(ii) other tax increment financing bondsnew text begin , including pay as you go contracts and
notesnew text end ; deleted text begin and
deleted text end

deleted text begin (iii) notes and pay-as-you-go contracts;
 deleted text end

(18) the amount of principal and interest payments that are due for the current
calendar year on any nondefeased:

(i) general obligation tax increment financing bonds;new text begin and
new text end

(ii) other tax increment financing bondsnew text begin , including pay-as-you-go contracts and
notesnew text end ; deleted text begin and
deleted text end

deleted text begin (iii) notes and pay-as-you-go contracts;
 deleted text end

(19) if the fiscal disparities contribution under chapter 276A or 473F for the district
is computed under section 469.177, subdivision 3, paragraph (a), the amount of new text begin total
new text end increased property taxes deleted text begin imposed on other properties in the municipality that approved the
tax increment financing plan as a result of the fiscal disparities contribution;deleted text end new text begin to be paid
from outside the tax increment financing district; and
new text end

(20) deleted text begin the estimate, if any, contained in the tax increment financing plan of the amount
of the cost of the project, including administrative expenses, that will be paid or financed
with tax increment; and
deleted text end

deleted text begin (21)deleted text end any additional information the state auditor may require.

(d) deleted text begin The commissioner of revenue shall prescribe the method of calculating the
increased property taxes under paragraph (c), clause (19), and the form of the statement
disclosing this information on the annual statement under subdivision 5.
deleted text end

deleted text begin (e)deleted text end The reporting requirements imposed by this subdivision apply to districts
certified before, on, and after August 1, 1979.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax increment financing reports
due after December 31, 2009.
 new text end

Sec. 7.

Minnesota Statutes 2008, section 469.176, subdivision 1b, is amended to read:


Subd. 1b.

Duration limits; terms.

(a) No tax increment shall in any event be
paid to the authority

(1) after 15 years after receipt by the authority of the first increment for a renewal
and renovation district,

(2) after 20 years after receipt by the authority of the first increment for a soils
condition district,

(3) after eight years after receipt by the authority of the first increment for an
economic development district,

(4) for a housing districtnew text begin , a compact development district,new text end or a redevelopment
district, after 25 years from the date of receipt by the authority of the first increment.

(b) For purposes of determining a duration limit under this subdivision or subdivision
1e that is based on the receipt of an increment, any increments from taxes payable in
the year in which the district terminates shall be paid to the authority. This paragraph
does not affect a duration limit calculated from the date of approval of the tax increment
financing plan or based on the recovery of costs or to a duration limit under subdivision
1c. This paragraph does not supersede the restrictions on payment of delinquent taxes in
subdivision 1f.

(c) An action by the authority to waive or decline to accept an increment has no
effect for purposes of computing a duration limit based on the receipt of increment under
this subdivision or any other provision of law. The authority is deemed to have received an
increment for any year in which it waived or declined to accept an increment, regardless
of whether the increment was paid to the authority.

(d) Receipt by a hazardous substance subdistrict of an increment as a result of a
reduction in original net tax capacity under section 469.174, subdivision 7, paragraph
(b), does not constitute receipt of increment by the overlying district for the purpose of
calculating the duration limit under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for districts for which the request for
certification is made after June 30, 2009.
 new text end

Sec. 8.

Minnesota Statutes 2008, section 469.176, is amended by adding a subdivision
to read:


new text begin Subd. 1i. new text end

new text begin Compact development districts. new text end

new text begin Tax increments derived from a compact
development district may be used only to pay:
 new text end

new text begin (1) administrative expenses up to the amount permitted under subdivision 3;
 new text end

new text begin (2) the cost of acquiring land located in the district or abutting the boundary of
the district;
 new text end

new text begin (3) demolition and removal of buildings or other improvements and other site
preparation costs for lands located in the district or abutting the boundary of the district;
and
 new text end

new text begin (4) installation of public infrastructure or public improvements serving the district,
but excluding the costs of streets, roads, highways, parking, or other public improvements
primarily designed to serve private passenger motor vehicles.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for districts for which the request for
certification is made after June 30, 2009.
 new text end

Sec. 9.

Minnesota Statutes 2008, section 469.176, subdivision 3, is amended to read:


Subd. 3.

Limitation on administrative expenses.

new text begin new text end

(a) For districts for which certification was requested before August 1, 1979, or after
June 30, 1982 and before August 1, 2001, no tax increment shall be used to pay any
administrative expenses for a project which exceed ten percent of the total estimated tax
increment expenditures authorized by the tax increment financing plan or the total tax
increment expenditures for the project, whichever is less.

(b) For districts for which certification was requested after July 31, 1979, and before
July 1, 1982, no tax increment shall be used to pay administrative expenses, as defined in
Minnesota Statutes 1980, section 273.73, for a district which exceeds five percent of the
total tax increment expenditures authorized by the tax increment financing plan or the total
estimated tax increment expenditures for the district, whichever is less.

(c) For districts for which certification was requested after July 31, 2001, no tax
increment may be used to pay any administrative expenses for a project which exceed
ten percent of total estimated tax increment expenditures authorized by the tax increment
financing plan or the total tax increments, as defined in section 469.174, subdivision 25,
clause (1), from the district, whichever is less.

new text begin (d) Increments used to pay the county's administrative expenses under subdivision
4h are not subject to the percentage limits in this subdivision.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for all districts, regardless of when
the request for certification was made.
 new text end

Sec. 10.

Minnesota Statutes 2008, section 469.1763, subdivision 2, is amended to read:


Subd. 2.

Expenditures outside district.

(a) For each tax increment financing
district, an amount equal to at least 75 percent of the total revenue derived from tax
increments paid by properties in the district must be expended on activities in the district
or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities
in the district or to pay, or secure payment of, debt service on credit enhanced bonds.
For districts, other than redevelopment districts for which the request for certification
was made after June 30, 1995, the in-district percentage for purposes of the preceding
sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax
increments paid by properties in the district may be expended, through a development fund
or otherwise, on activities outside of the district but within the defined geographic area of
the project except to pay, or secure payment of, debt service on credit enhanced bonds.
For districts, other than redevelopment districts for which the request for certification was
made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is
20 percent. The revenue derived from tax increments for the district that are expended on
costs under section 469.176, subdivision 4h, paragraph (b), may be deducted first before
calculating the percentages that must be expended within and without the district.

(b) In the case of a housing district, a housing project, as defined in section 469.174,
subdivision 11, is an activity in the district.

(c) All administrative expenses are for activities outside of the district, except that
if the only expenses for activities outside of the district under this subdivision are for
the purposes described in paragraph (d), administrative expenses will be considered as
expenditures for activities in the district.

(d) The authority may elect, in the tax increment financing plan for the district,
to increase by up to ten percentage points the permitted amount of expenditures for
activities located outside the geographic area of the district under paragraph (a). As
permitted by section 469.176, subdivision 4k, the expenditures, including the permitted
expenditures under paragraph (a), need not be made within the geographic area of the
project. Expenditures that meet the requirements of this paragraph are legally permitted
expenditures of the district, notwithstanding section 469.176, subdivisions 4b, 4c, and 4j.
To qualify for the increase under this paragraph, the expenditures must:

(1) be used exclusively to assist housing that meets the requirement for a qualified
low-income building, as that term is used in section 42 of the Internal Revenue Code;

(2) not exceed the qualified basis of the housing, as defined under section 42(c) of
the Internal Revenue Code, less the amount of any credit allowed under section 42 of
the Internal Revenue Code; and

(3) be used to:

(i) acquire and prepare the site of the housing;

(ii) acquire, construct, or rehabilitate the housing; or

(iii) make public improvements directly related to the housing.

(e) For a district created within a biotechnology and health sciences industry
zone as defined in section 469.330, subdivision 6, new text begin a district created within a transit
improvement area as defined in section 469.351, subdivisions 1 to 3, new text end or for deleted text begin andeleted text end existing
deleted text begin districtdeleted text end new text begin districtsnew text end located within deleted text begin suchdeleted text end a new text begin biotechnology and health sciences industry new text end zone,
new text begin or a transit improvement area, new text end tax increment derived from such deleted text begin a districtdeleted text end new text begin districtsnew text end may
be expended outside of the district but within the zonenew text begin or transit improvement area,new text end
only for expenditures required for the construction of public infrastructure necessary to
support the activities of the new text begin biotechnology and health sciences industry new text end zone, new text begin or the transit
improvement area, including new text end land acquisition, and other redevelopment costs as defined
in section 469.176, subdivision 4j. These expenditures are considered as expenditures
for activities within the district.

Sec. 11.

Minnesota Statutes 2008, section 469.1763, subdivision 3, is amended to read:


Subd. 3.

Five-year rule.

(a) Revenues derived from tax increments are considered
to have been expended on an activity within the district under subdivision 2 only if one
of the following occurs:

(1) before or within five years after certification of the district, the revenues are
actually paid to a third party with respect to the activity;

(2) bonds, the proceeds of which must be used to finance the activity, are issued and
sold to a third party before or within five years after certification, the revenues are spent
to repay the bonds, and the proceeds of the bonds either are, on the date of issuance,
reasonably expected to be spent before the end of the later of (i) the five-year period, or
(ii) a reasonable temporary period within the meaning of the use of that term under section
148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve
or replacement fund;

(3) binding contracts with a third party are entered into for performance of the
activity before or within five years after certification of the district and the revenues are
spent under the contractual obligation;

(4) costs with respect to the activity are paid before or within five years after
certification of the district and the revenues are spent to reimburse a party for payment
of the costs, including interest on unreimbursed costs; or

(5) expenditures are made for housing purposes as permitted by subdivision 2,
paragraphs (b) and (d), or for public infrastructure purposes within a zone as permitted
by subdivision 2, paragraph (e).

(b) For purposes of this subdivision, bonds include subsequent refunding bonds if
the original refunded bonds meet the requirements of paragraph (a), clause (2).

new text begin (c) For a redevelopment district or a renewal and renovation district certified after
June 30, 2003, and before April 20, 2009, the five-year periods described in paragraph (a)
are extended to ten years after certification of the district in order to accommodate delays
in development activities due to unanticipated economic circumstances.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 12.

Minnesota Statutes 2008, section 469.178, subdivision 7, is amended to read:


Subd. 7.

Interfund loans.

The authority or municipality may advance or loan
money to finance expenditures under section 469.176, subdivision 4, from its general
fund or any other fund under which it has legal authority to do so. The loan or advance
must be authorized, by resolution of the governing body or of the authority, whichever
has jurisdiction over the fund from which the advance or loan is deleted text begin madedeleted text end new text begin authorizednew text end , before
money is transferred, advanced, or spent, whichever is earliest. The resolution may
generally grant to the authority the power to make interfund loans under one or more tax
increment financing plans or for one or more districts. The terms and conditions for
repayment of the loan must be provided in writing and include, at a minimum, the principal
amount, the interest rate, and maximum term. The maximum rate of interest permitted to
be charged is limited to the greater of the rates specified under section 270C.40 or 549.09
as of the date the loan or advance is deleted text begin madedeleted text end new text begin authorizednew text end , unless the written agreement states
that the maximum interest rate will fluctuate as the interest rates specified under section
270C.40 or 549.09 are from time to time adjusted.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for interfund loans made after June
30, 2009.
 new text end

Sec. 13.

Minnesota Statutes 2008, section 469.312, is amended by adding a subdivision
to read:


new text begin Subd. 6. new text end

new text begin Termination of designation of qualified business. new text end

new text begin No person will be
deemed to be a qualified business eligible for the benefits provided in sections 469.310
to 469.320, unless the person has entered into a business subsidy agreement with a local
government unit as provided in section 469.310, subdivision 11, prior to May 1, 2009.
 new text end

Sec. 14.

Laws 1995, chapter 264, article 5, section 44, subdivision 4, as amended by
Laws 1996, chapter 471, article 7, section 21, and Laws 1997, chapter 231, article 10,
section 12, and Laws 2008, chapter 154, article 9, section 18, is amended to read:


Subd. 4.

Authority.

For housing replacement projects in the city of Crystal,
"authority" means the Crystal economic development authority. For housing replacement
projects in the city of Fridley, "authority" means the housing and redevelopment authority
in and for the city of Fridley or a successor in interest. For housing replacement
projects in the city of Minneapolis, "authority" means the Minneapolis community
development agency or its successors and assigns. For housing replacement projects
in the city of St. Paul, "authority" means the St. Paul housing and redevelopment
authority. For housing replacement projects in the city of Duluth, "authority" means the
Duluth economic development authority. For housing replacement projects in the city of
Richfield, "authority" is the authority as defined in Minnesota Statutes, section 469.174,
subdivision 2, that is designated by the governing body of the city of Richfield. For
housing replacement projects in the city of Columbia Heights, "authority" is the authority
as defined in Minnesota Statutes, section 469.174, subdivision 2, that is designated by
the governing body of the city of Columbia Heights.new text begin For housing replacement projects in
the city of Brooklyn Park, "authority" is the authority, as defined in Minnesota Statutes,
section 469.174, subdivision 2, that is designated by the governing body of the city of
Brooklyn Park.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to the city of Brooklyn Park without local approval under Minnesota Statutes,
section 645.023, subdivision 1, paragraph (a).
 new text end

Sec. 15.

Laws 1995, chapter 264, article 5, section 45, subdivision 1, as amended by
Laws 1996, chapter 471, article 7, section 22, and Laws 1997, chapter 231, article 10,
section 13, and Laws 2002, chapter 377, article 7, section 6, and Laws 2008, chapter 154,
article 9, section 19, is amended to read:


Subdivision 1.

Creation of projects.

(a) An authority may create a housing
replacement project under sections 44 to 47, as provided in this section.

(b) For the cities of Crystal, Fridley, Richfield, deleted text begin anddeleted text end Columbia Heightsnew text begin , and Brooklyn
Parknew text end , the authority may designate up to 50 parcels in the city to be included in a housing
replacement district. No more than ten parcels may be included in year one of the district,
with up to ten additional parcels added to the district in each of the following nine years.
For the cities of St. Paul and Duluth, each authority may designate not more than 200
parcels in the city to be included in a housing replacement district over the life of the
district. For the city of Minneapolis, the authority may designate not more than 400
parcels in the city to be included in housing replacement districts over the life of the
districts. The only parcels that may be included in a district are (1) vacant sites, (2)
parcels containing vacant houses, or (3) parcels containing houses that are structurally
substandard, as defined in Minnesota Statutes, section 469.174, subdivision 10.

(c) The city in which the authority is located must pay at least 25 percent of the
housing replacement project costs from its general fund, a property tax levy, or other
unrestricted money, not including tax increments.

(d) The housing replacement district plan must have as its sole object the acquisition
of parcels for the purpose of preparing the site to be sold for market rate housing. As
used in this section, "market rate housing" means housing that has a market value that
does not exceed 150 percent of the average market value of single-family housing in that
municipality.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to the affected cities without local approval under Minnesota Statutes, section
645.023, subdivision 1, paragraph (a).
 new text end

Sec. 16.

Laws 2008, chapter 366, article 5, section 28, subdivision 1, is amended to
read:


Subdivision 1.

Additional taxes authorized; use of proceeds.

Notwithstanding
Minnesota Statutes, section 477A.016, or any other law, ordinance, or charter provision
to the contrary, the governing body of the city of Bloomington may impose any or all of
the taxes described in this section. The proceeds of any taxes imposed under this section
or section 27, less refunds and the cost of collection, must be used to provide financing
for parking facilities or other public improvements for new text begin any phase of new text end the Mall of America
deleted text begin phase IIdeleted text end . The Port Authority of the city of Bloomington may, but is not required to,
issue or cause the sale of bonds, a developer's note, or other obligations to finance the
improvements. If a governmental entity other than the city of Bloomington issues the
obligations used to finance the parking facilities and other public improvements, the
city may transfer the funds available under this section and section 27 for financing the
project to the entity that issued the bonds.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 17.

Laws 2008, chapter 366, article 5, section 29, subdivision 1, is amended to
read:


Subdivision 1.

Issuing authority.

(a) The city of Bloomington may contract with
any of the following authorities to issue and sell revenue bonds for the purposes and
in the amounts specified in subdivision 2:

(1) the commissioner of finance, exercising the authority granted under this section
and Minnesota Statutes, sections 16A.672 to 16A.675;

(2) the Agricultural and Economic Development Board, exercising the powers
granted under this section and Minnesota Statutes, chapter 41A; or

(3) the Minnesota Public Facilities Authority, exercising the powers granted under
this section and Minnesota Statutes, chapter 446A.

(b) The authority granted in this section is in addition to the statutes in paragraph
(a) and notwithstanding any contrary provisions in them.

(c) The contract must include as a party the developer of new text begin any new text end phase deleted text begin IIdeleted text end of the Mall
of America and may include as a party any other entity deemed appropriate by the city
of Bloomington, the issuing authority, and the developer.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 18.

Laws 2008, chapter 366, article 5, section 29, subdivision 2, is amended to
read:


Subd. 2.

Purposes and amounts.

(a) The revenue bonds may be issued in a single
or multiple issues and sold for the following purposes:

(1) to pay the costs to design, construct, furnish, and equip parking facilities and
deleted text begin relateddeleted text end new text begin othernew text end public improvements for new text begin any new text end phase deleted text begin IIdeleted text end of the Mall of America;

(2) to pay the costs of issuance, debt service, and bond insurance or other credit
enhancements, and to fund reserves; and

(3) to refund bonds issued under this section.

(b) The amount of bonds that may be issued for the purposes of paragraph (a), clause
(1), may not exceed per issue the estimated cost from time to time of the parking facilities
and other public improvements, including soft costs; the amount of bonds that may be
issued for the purposes of paragraph (a), clauses (2) and (3), is not limited.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 19.

Laws 2008, chapter 366, article 5, section 29, subdivision 4, is amended to
read:


Subd. 4.

Sale and issuance; proceeds.

(a) The issuing authority may sell and issue
the bonds on the terms and conditions the issuing authority determines to be in the best
interests of the state after reviewing an agreement between the city of Bloomington and
the developer of new text begin any new text end phase deleted text begin IIdeleted text end of the Mall of America setting out the terms upon which
the city of Bloomington will use the proceeds of the bond sales. The bonds may be sold
at public or private sale at a price or prices the issuing authority finds appropriate. The
issuing authority may enter any agreements or pledges the issuing authority determines
necessary or useful to sell the bonds that are not inconsistent with this section.

(b) The city may enter into a preliminary agreement with the issuing authority under
which the city agrees, if the revenue bonds are not issued, to pay or cause to be paid the
costs and expenses incurred by the issuing authority relating to the proposed issuance of
the revenue bonds.

(c) The proceeds of the bonds issued under this section must be credited to a special
Mall of America revenue bond proceeds account with the issuing authority or a trustee
and are appropriated to the issuing authority for payment to the city of Bloomington
for the purposes specified in subdivision 2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 20.

Laws 2008, chapter 366, article 5, section 34, is amended to read:


Sec. 34. CITY OF OAKDALE; ORIGINAL TAX CAPACITY.

(a) The provisions of this section apply to redevelopment tax increment financing
districts created by the Housing and Redevelopment Authority in and for the city of
Oakdale in the areas comprised of the parcels with the following parcel identification
numbers: (1) 3102921320053; 3102921320054; 3102921320055; 3102921320056;
3102921320057; 3102921320058; 3102921320062; 3102921320063; 3102921320059;
3102921320060; deleted text begin anddeleted text end 3102921320061; deleted text begin and (2)deleted text end 3102921330005new text begin ;new text end and 3102921330004new text begin ; and
(2) 2902921330001 and 2902921330005new text end .

(b) For a district subject to this section, the Housing and Redevelopment Authority
may, when requesting certification of the original tax capacity of the district under
Minnesota Statutes, section 469.177, elect to have the original tax capacity of the district
be certified as the tax capacity of the land.

(c) The authority to request certification of a district under this section expires on
July 1, 2013.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the governing
body of the city of Oakdale and compliance with Minnesota Statutes, section 645.021,
subdivision 3.
 new text end

Sec. 21. new text begin MALL OF AMERICA; LABOR PEACE.
new text end

new text begin As a condition to providing any public financing to any phase of the Mall of America
project, the governing bodies of the city of Bloomington and the Bloomington Port
Authority shall require the developers of any phase of the Mall of America project to enter
into a labor peace agreement with the labor organization which is most actively engaged in
representing and attempting to represent hotel workers in Hennepin and Ramsey Counties.
The labor peace agreement must be an enforceable agreement and must prohibit the labor
organization and its members from engaging in any boycott or other activity advising
customers not to patronize any hotel that is part of any phase for at least the first five years
of the hotel's operation, and must cover all operations at the hotel, other than construction,
alteration, or repair of the premises separately owned and operated, which are conducted
by lessees or tenants or under management agreements, except retail operations, including
gift, jewelry, and clothing shops that have annual gross revenues of less than $250,000.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 22. new text begin CHISAGO CITY AND LINDSTROM JOINT VENTURE.
new text end

new text begin Any two or more of the cities of Chisago City and Lindstrom, their economic
development authorities, housing and redevelopment authorities, and the county of
Chisago may enter into a joint powers agreement to acquire and develop or redevelop
a business park in either city. Any party to the agreement may spend money or issue
debt for all or a part of the project, regardless of whether the project is located within its
corporate boundaries. Issuance of debt under this section is subject to Minnesota Statutes,
chapter 475, except that an election is not required. The agreement may provide for the
parties to share revenues from the project. Any party to the agreement may levy taxes
or spend its funds, as otherwise permitted by law, to pay for the project, including debt
issued to finance the project.
new text end

new text begin If the project is included in a tax increment financing district, each city and authority
that is a party to the agreement may treat the tax increment financing district as being
located within its corporate boundaries for purposes of the authority under the tax
increment financing act, Minnesota Statutes, sections 469.174 to 469.1799, to spend
increments or issue bonds for the project.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 23. new text begin CITY OF MANKATO; TAX INCREMENT FINANCING DISTRICT;
PROJECT REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Expenditures outside district. new text end

new text begin Notwithstanding Minnesota Statutes,
section 469.1763, subdivision 2, or any other law to the contrary, the city of Mankato may
expend increments generated from its South Riverfront tax increment financing district
anywhere within the South Riverfront Redevelopment project area. In this section, the
"South Riverfront Redevelopment project area" and the "South Riverfront tax increment
financing district" mean the area and district as they may be modified from time to time.
 new text end

new text begin Subd. 2. new text end

new text begin Use of increments. new text end

new text begin Tax increments derived from the South Riverfront
tax increment financing district may be used to reimburse or otherwise pay the city of
Mankato for allowable expenditures under the plan budget for the South Riverfront tax
increment district.
 new text end

new text begin Subd. 3. new text end

new text begin Interfund loans. new text end

new text begin The requirement for resolutions under Minnesota
Statutes, section 469.178, subdivision 7, does not apply to the South Riverfront tax
increment financing district.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the governing
body of the city of Mankato and upon compliance by the city with Minnesota Statutes,
section 645.021, subdivision 3.
 new text end

Sec. 24. new text begin CITY OF NORTH MANKATO; TAX INCREMENT FINANCING
DISTRICT; PROJECT REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Addition of parcel to district. new text end

new text begin Notwithstanding Minnesota Statutes,
sections 469.174, subdivision 10, and 469.175, subdivision 4, paragraph (d), or any
other law to the contrary, the governing body of the city of North Mankato may elect to
expand the boundaries of Tax Increment Financing District No. IDD 1-8 to include real
property, described as follows:
 new text end

new text begin Lots 3, 4, 5, 6, 7, 8, B, and C and part of vacated Cedar Street, Lots A, 1, and 2
lying northwesterly of a line beginning at a point on the South line of Lot A 74.67 feet
West of the southeast corner of Lot A; thence northeasterly 107.30 feet to a point on
the East line of Lot 2; thence continuing northeasterly 47.47 feet to a point on the East
right-of-way line of vacated Cedar Street; said point being 101.93 feet southerly from the
intersection of the south right-of-way line of Wheeler Avenue and the east right-of-way
line vacated Cedar Street, Lamm's Second Addition, City of North Mankato, Nicollet
County, Minnesota (tax parcel number R 18.614.0040).
 new text end

new text begin Subd. 2. new text end

new text begin Original tax capacity of district. new text end

new text begin Upon addition of the property described
in subdivision 1 in Tax Increment Financing District No. IDD 1-8, the Nicollet County
auditor shall increase the original tax capacity of Tax Increment Financing District No.
IDD 1-8 by the amount required by Minnesota Statutes, section 469.177.
 new text end

new text begin Subd. 3. new text end

new text begin Use of increments. new text end

new text begin Tax increments and other revenues derived from any
portion of Tax Increment Financing District No. IDD 1-8, as enlarged, may be used:
 new text end

new text begin (1) to reimburse or otherwise pay the port authority of the city of North Mankato
and the city of North Mankato for allowable expenditures under the plan budget for Tax
Increment Financing District No. IDD 1-8, as amended from time to time; and
 new text end

new text begin (2) to pay the principal, premium, and interest on the $990,000 city of North
Mankato taxable general obligation tax increment bonds, series 2001D, issued by the city
of North Mankato for redevelopment costs in Tax Increment Financing District No. IDD
1-8 under the tax increment financing plan for Tax Increment Financing District No. IDD
1-8 as originally adopted January 16, 1990, and amended April 2, 2001.
 new text end

new text begin Subd. 4. new text end

new text begin Approval of modification. new text end

new text begin When the governing body of the city elects to
exercise the authority provided in subdivision 1 to modify the district, it must comply with
Minnesota Statutes, section 469.175, subdivision 4, except for paragraph (d).
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the governing body
of the city of North Mankato and upon compliance by the city with Minnesota Statutes,
section 645.021, subdivision 3.
 new text end

Sec. 25. new text begin CITY OF ST. LOUIS PARK; EXTENSION OF TAX INCREMENT
DISTRICT DURATION.
new text end

new text begin Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, the duration
of the Elmwood Village Tax Increment Financing District is extended to 25 years after
receipt by the St. Louis Park Economic Development Authority of the first increment
from the district.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon compliance by the governing
body of the city of St. Louis Park with the requirements of Minnesota Statutes, sections
469.1782, subdivision 2, and 645.021, subdivision 3.
 new text end

Sec. 26. new text begin CENTRAL CORRIDOR LIGHT RAIL TRANSIT PROJECT AREA.
new text end

new text begin The Housing and Redevelopment Authority of the city of St. Paul, with the approval
of the city of St. Paul, may establish the central corridor light rail transit project area as a
redevelopment project under Minnesota Statutes, section 469.028. At least 80 percent of
the property included in the project area must be located within one quarter mile of the
central corridor light rail transit alignment.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the St. Paul City
Council in compliance with Minnesota Statutes, section 645.021.
 new text end

Sec. 27. new text begin CITIES OF ST. PAUL AND FRIDLEY; AUTHORITY TO EXERCISE
SPECIAL LAW AUTHORITY.
new text end

new text begin Notwithstanding the failure of the governing bodies of the city of St. Paul and the
city of Fridley to approve Laws 1995, chapter 264, article 5, sections 44 to 47, as required
by Laws 1995, chapter 264, article 5, section 49, the provisions of sections 44 to 47, as
amended, apply to the city of St. Paul and to the city of Fridley without local approval
under Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 28. new text begin CITY OF ST. PAUL; TAX INCREMENTS FOR CENTRAL CORRIDOR
COSTS.
new text end

new text begin The Neighborhood Commercial Scattered Site tax increment financing district
(county No. 100), the Hubbard tax increment financing district (county No. 193), the
Spruce Tree tax increment financing district (county No. 83), and the Snelling-University
tax increment financing district (county No. 135) are subject to this section.
 new text end

new text begin Minnesota Statutes, sections 469.176, subdivisions 4b; 4g, paragraph (c); 4j;
and 4l, and 469.1763, subdivision 2, paragraph (a), do not apply to the expenditure
of tax increments from the named tax increment districts. The five-year rule under
Minnesota Statutes, section 469.1763, subdivision 3, is extended for these districts to a
ten-year period. Tax increments from these districts may be expended within the original
redevelopment project areas or within the central corridor light rail transit redevelopment
project area for any public redevelopment costs and to pay the cost of programs to mitigate
lost parking caused by the construction of the central corridor light rail transit line.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the St. Paul City
Council in compliance with Minnesota Statutes, section 645.021.
 new text end

Sec. 29. new text begin CITY OF SAUK RAPIDS; TIF.
new text end

new text begin Any parcel in the city of Sauk Rapids located within Blocks 26, 27, 59, 61, and 62,
original town of Sauk Rapids Plat, is deemed to meet the requirements of Minnesota
Statutes, section 469.174, subdivision 10, paragraph (d), clause (1), if the following
conditions are met:
 new text end

new text begin (1) a building on the parcel was demolished in compliance with Minnesota Statutes,
section 469.174, subdivision 10, paragraph (d), clause (2), after the authority adopted a
resolution pursuant to Minnesota Statutes, section 469.174, subdivision 10, paragraph
(d), clause (3); and
 new text end

new text begin (2) the request for certification of the parcel as part of a district is filed with the
county auditor by December 31, 2012.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon compliance by the governing
body of the city of Sauk Rapids with the requirements of Minnesota Statutes, section
645.021, subdivision 3.
 new text end

Sec. 30. new text begin HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF
SOUTH ST. PAUL; TAX INCREMENT FINANCING DISTRICT.
new text end

new text begin Subdivision 1. new text end

new text begin Authorization. new text end

new text begin Notwithstanding the provisions of any other law,
the Housing and Redevelopment Authority of the city of South St. Paul may establish a
redevelopment tax increment financing district comprised of the properties included in the
existing Concord Street tax increment district in the city that are exempt under Minnesota
Statutes, section 469.179, subdivision 1, and were not decertified before July 1, 2009. The
district created under this section may be certified after August 1, 2009, and terminates no
later than December 31, 2024. The Housing and Redevelopment Authority of the city of
South St. Paul may create the district under this section only if it enters into an agreement
with Dakota County to pay the county annually out of the increment from this district an
amount equal to the tax that would have been payable to the county on the captured tax
capacity of the district had the district not been created.
 new text end

new text begin Subd. 2. new text end

new text begin Special rules. new text end

new text begin The requirements for qualifying a redevelopment district
under Minnesota Statutes, section 469.174, subdivision 10, do not apply to parcels located
within the district. Minnesota Statutes, section 469.176, subdivisions 4j and 4l, do not
apply to the district. The original tax capacity of the district is $354,945.
 new text end

new text begin Subd. 3. new text end

new text begin Authorized expenditures. new text end

new text begin Tax increment from the district may be
expended to pay for any eligible activities authorized by Minnesota Statutes, chapter
469, within the redevelopment area that includes the district. All such expenditures are
deemed to be activities within the district under Minnesota Statutes, section 469.1763,
subdivisions 2, 3, and 4. The Housing and Redevelopment Authority of the city of South
St. Paul must collect the second half of the 2009 tax increment from the existing Concord
Street tax increment district and use the tax increment for eligible activities within the
redevelopment area.
 new text end

new text begin Subd. 4. new text end

new text begin Adjusted net tax capacity. new text end

new text begin The captured tax capacity of the district must
be included in the adjusted net tax capacity of the city, county, and school district for the
purposes of determining local government aid, education aid, and county program aid.
The county auditor shall report to the commissioner of revenue the amount of the captured
tax capacity for the district at the time the assessment abstracts are filed.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon compliance with Minnesota
Statutes, section 645.021, subdivision 3, by the governing body of the city of South St.
Paul.
 new text end

Sec. 31. new text begin LOAN TO AIRCRAFT ASSEMBLY PROJECT.
new text end

new text begin Of the money available in the Minnesota investment fund provided in Minnesota
Statutes, section 116J.8731, $3,000,000 is appropriated in fiscal year 2010 to the
commissioner of employment and economic development for a loan to an aircraft
manufacturing and assembly company, associated with the aerospace industry, for
equipment utilized to establish an aircraft completion center at the Minneapolis-St.
Paul International Airport. The finishing center must use the state's vocational training
programs designed specifically for aircraft maintenance training and, to the extent
possible, recruit employees from these programs. The center must create at least 200 new
manufacturing jobs within 24 months of receiving the loan, and create not less than 500
new manufacturing jobs over a five-year period in Minnesota.
 new text end

new text begin This loan is not subject to loan limitations under Minnesota Statutes, section
116J.8731, subdivision 5, and any match requirements under Minnesota Statutes, section
116J.8371, subdivision 3, may be made from current resources. This is a onetime
appropriation and is effective the day following final enactment.
 new text end

Sec. 32. new text begin MOUNTAIN IRON ECONOMIC DEVELOPMENT AUTHORITY;
WIND ENERGY PROJECT.
new text end

new text begin (a) The Mountain Iron economic development authority may form or become a
member of a limited liability company organized under Minnesota Statutes, chapter 322B,
for the purpose of developing a community-based energy development project pursuant
to Minnesota Statutes, section 216B.1612. A limited liability company formed or joined
under this section is subject to the open meeting requirements established in Minnesota
Statutes, chapter 13D. A project authorized by this section may not sell, transmit, or
distribute the electrical energy at retail or provide for end use of the electrical energy to an
off-site facility of the economic development authority or the limited liability company.
Nothing in this section modifies the exclusive service territories or exclusive right to serve
as provided in Minnesota Statutes, sections 216B.37 to 216B.43.
 new text end

new text begin (b) The authority may acquire a leasehold interest in property outside its corporate
boundaries for the purpose of developing a community-based energy development project
as provided in Minnesota Statutes, section 216B.1612.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the city of Mountain
Iron and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
 new text end

Sec. 33. new text begin SEAWAY PORT AUTHORITY OF DULUTH; TAX INCREMENT
FINANCING DISTRICT; SPECIAL RULES.
new text end

new text begin If the Seaway Port Authority of Duluth adopts a tax increment financing plan
or plans and the governing body of the city of Duluth approves the plan or plans
for one or more tax increment financing districts consisting of one or more parcels
identified as: 010-2730-00010; 010-2730-00020; 010-2730-00040; 010-2730-00050;
010-2730-00070; 010-2730-00080; 010-2730-00090; 010-2730-00100; 010-2730-00160;
010-2730-00180; 010-2730-00200; 010-2730-01250; 010-2730-01340; 010-2730-01350;
010-2730-01490; 010-2730-01500; 010-2730-01510; 010-2730-01520; 010-2730-01530;
010-2730-01540; 010-2730-01550; 010-2730-01560; 010-2730-01570; 010-2730-01580;
010-2730-01590; 010-2730-1300; 010-2746-1330; 010-2746-1440; 010-2746-1380;
010-3300-4560; 010-3300-4565; 010-3300-04570; 010-3300-04580; 010-3300-04640;
010-3300-04645; 010-3300-04650, the five-year rule under Minnesota Statutes, section
469.1763, subdivision 3, is extended to a ten-year period.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the governing
body of the city of Duluth and compliance with Minnesota Statutes, section 645.021,
subdivision 3.
 new text end

Sec. 34. new text begin WINONA COUNTY ECONOMIC DEVELOPMENT AUTHORITY;
WIND ENERGY PROJECT.
new text end

new text begin (a) The Winona County economic development authority may form or become a
member of a limited liability company organized under Minnesota Statutes, chapter 322B,
for the purpose of developing a community-based energy development project pursuant
to Minnesota Statutes, section 216B.1612. A limited liability company formed or joined
under this section is subject to the open meeting requirements established in Minnesota
Statutes, chapter 13D. A project authorized by this section may not sell, transmit, or
distribute the electrical energy at retail or provide for end use of the electrical energy to an
off-site facility of the economic development authority or the limited liability company.
Nothing in this section modifies the exclusive service territories or exclusive right to serve
as provided in Minnesota Statutes, sections 216B.37 to 216B.43.
 new text end

new text begin (b) The authority may acquire a leasehold interest in property outside its corporate
boundaries for the purpose of developing a community-based energy development project
as provided in Minnesota Statutes, section 216B.1612.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the county of Winona
and its chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions
2 and 3.
 new text end

Sec. 35. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Laws 1996, chapter 464, article 1, section 8, subdivisions 3 and 5, new text end new text begin are repealed.
 new text end

new text begin (b) new text end new text begin Laws 2008, chapter 366, article 5, section 30, subdivision 7, new text end new text begin is repealed.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

ARTICLE 7

PUBLIC FINANCE

Section 1.

new text begin [16A.647] TAX CREDIT AND INTEREST SUBSIDY BONDS.
 new text end

new text begin Subdivision 1. new text end

new text begin Authority to issue. new text end

new text begin When authorized by law to issue state general
obligation bonds, the commissioner may issue all or part of the bonds as tax credit bonds
or as interest subsidy bonds or a combination of the two.
 new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given them.
 new text end

new text begin (b) "Tax credit bonds" means bonds, the interest on which is includable in the
income of the owner of the bonds for federal income tax purposes, but for which the
owner is entitled to a federal tax credit.
 new text end

new text begin (c) "Interest subsidy bonds" means bonds, the interest on which is includable in the
income of the owner of the bonds for federal income tax purposes, but for which the
issuer is entitled to federal interest subsidy payments based on a percentage of the interest
payable on the interest subsidy bonds.
 new text end

new text begin Subd. 3. new text end

new text begin Method of sale. new text end

new text begin Notwithstanding the provisions of section 16A.641,
subdivision 4, the commissioner may sell any series of tax credit bonds or interest
subsidy bonds at negotiated sale upon the terms and conditions and the restrictions the
commissioner prescribes, but the commissioner may contract for investment banking
and banking services only after receiving competitive proposals for the services. The
commissioner may enter into all contracts deemed necessary or desirable to accomplish
the sale in a cost-effective manner.
 new text end

new text begin Subd. 4. new text end

new text begin Sinking fund. new text end

new text begin The commissioner's order authorizing the issuance of
interest subsidy bonds must establish a separate sinking fund account for the interest
subsidy bonds in the state bond fund. There is annually appropriated, as received, to each
interest subsidy bond account, in addition to amounts appropriated under section 16A.641,
the interest subsidy payments received from the federal government with respect to that
issue of interest subsidy bonds in that year.
 new text end

new text begin Subd. 5. new text end

new text begin Sale. new text end

new text begin Tax credit bonds and interest subsidy bonds must be sold at a price
not less than 98 percent of their stated principal amount. No state trunk highway bond
may be sold for a price of less than par and accrued interest.
 new text end

Sec. 2.

Minnesota Statutes 2008, section 37.31, subdivision 8, is amended to read:


Subd. 8.

Expiration.

The authority to issue bonds, other than bonds to refund
outstanding bonds, under this section expires July 1, deleted text begin 2009deleted text end new text begin 2015new text end .

Sec. 3.

Minnesota Statutes 2008, section 126C.55, subdivision 4, is amended to read:


Subd. 4.

Pledge of district's full faith and credit.

If, at the request of a school
district or intermediate school district, the state has paid part or all of the principal or
interest due on a district's debt obligation on a specific date, the pledge of the full faith and
credit and unlimited taxing powers of the school district or the member districts of the
intermediate district to repay the principal and interest due on those debt obligations shall
also, without an election or the requirement of a further authorization, become a pledge of
the full faith and credit and unlimited taxing powers of the school district or the member
districts of the intermediate district to repay to the state the amount paid, with interest.
Amounts paid by the state must be repaid in the order in which the state payments were
made.new text begin Whenever the state pays under this section interest on bonds for which the issuer is
entitled to federal interest subsidy payments, the state is subrogated to the issuer's rights to
any federal interest subsidy payments relating to the interest paid by the state, unless and
until the state has been reimbursed by the issuer in full.
new text end

Sec. 4.

Minnesota Statutes 2008, section 204B.46, is amended to read:


204B.46 MAIL ELECTIONS; QUESTIONS.

A county, municipality, or school district submitting questions to the voters at a
special election may conduct an election by mail with no polling place other than the office
of the auditor or clerk. No deleted text begin more than two questions may be submitted at a mail election
and nodeleted text end offices may be voted onnew text begin at a mail electionnew text end . Notice of the election must be given
to the county auditor at least 53 days prior to the election. This notice shall also fulfill
the requirements of Minnesota Rules, part 8210.3000. The special mail ballot procedures
must be posted at least six weeks prior to the election. No earlier than 20 or later than 14
days prior to the election, the auditor or clerk shall mail ballots by nonforwardable mail
to all voters registered in the county, municipality, or school district. Eligible voters not
registered at the time the ballots are mailed may apply for ballots pursuant to chapter 203B.

Sec. 5.

Minnesota Statutes 2008, section 360.036, subdivision 2, is amended to read:


Subd. 2.

Issuance of bonds.

(a) Bonds to be issued by a municipality under sections
360.011 to 360.076, shall be authorized and issued in the manner and within the limitation
prescribed by laws or the charter of the municipality for the issuance and authorization of
bonds for public purposes generally, except as provided in paragraphs (b) and (c).

(b) No election is required to authorize the issuance of the bonds if:

(1) a board organized under section 360.042 recommends by a resolution adopted
by a vote of not less than 60 percent of its members the issuance of bonds, and the
bonds are authorized by a resolution of the governing body of each of the municipalities
acting jointly pursuant to section 360.042, adopted by a vote of not less than 60 percent
of its members; deleted text begin or
deleted text end

(2) new text begin the bonds are authorized by a resolution of the governing body of the
municipality, adopted by a vote of not less than 60 percent of its members; or
new text end

new text begin (3) new text end the bonds are being issued for the purpose of financing the costs of constructing,
enlarging, or improving airports and other air navigation facilities; and

(i) the governing body estimates that passenger facility charges and other revenues
pledged to the payment thereof will be at least 20 percent of the debt service payable
on the bonds in any year;

(ii) the project will be funded in part by a new text begin state or new text end federal grant for airport
development; and

(iii) the principal amount of the bonds issued under this clause does not exceed 25
percent of the amount of the new text begin state or new text end federal grant.

(c) If the bonds are general obligations of the municipality, the levy of taxes required
by section 475.61 to pay principal and interest on the bonds is not included in computing
or applying any levy limitation applicable to the municipality.

Sec. 6.

Minnesota Statutes 2008, section 366.095, subdivision 1, is amended to read:


Subdivision 1.

Certificates of indebtedness.

The town board may issue certificates
of indebtedness within the debt limits for a town purpose otherwise authorized by law.
The certificates shall be payable in not more than deleted text begin fivedeleted text end new text begin tennew text end years and be issued on the terms
and in the manner as the board may determine. If the amount of the certificates to be
issued exceeds 0.25 percent of the market value of the town, they shall not be issued for at
least ten days after publication in a newspaper of general circulation in the town of the
board's resolution determining to issue them. If within that time, a petition asking for an
election on the proposition signed by voters equal to ten percent of the number of voters
at the last regular town election is filed with the clerk, the certificates shall not be issued
until their issuance has been approved by a majority of the votes cast on the question at
a regular or special election. A tax levy shall be made to pay the principal and interest
on the certificates as in the case of bonds.

Sec. 7.

Minnesota Statutes 2008, section 373.47, subdivision 1, is amended to read:


Subdivision 1.

Authority to incur debt.

Subject to prior approval by the Statewide
Radio Board under section 403.36, the governing body of a county may finance the cost of
designing, constructing, and acquiring public safety communication system infrastructure
and equipment for use on the statewide, shared public safety radio system by issuing:

(1) capital improvement bonds under section 373.40, as if the infrastructure and
equipment qualified as a "capital improvement" within the meaning of section 373.40,
subdivision 1, paragraph (b)new text begin , bonds issued under this section are exempt from and shall
not be included in calculating the limitations in section 373.40, subdivision 4new text end ; and

(2) capital notes under the provisions of section 373.01, subdivision 3, as if the
equipment qualified as "capital equipment" within the meaning of section 373.01,
subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
and applies to bonds issued after May 22, 2002.
 new text end

Sec. 8.

Minnesota Statutes 2008, section 446A.086, is amended by adding a
subdivision to read:


new text begin Subd. 12. new text end

new text begin Federal interest subsidy payments. new text end

new text begin Whenever the state pays under
this section interest on bonds for which the issuer is entitled to federal interest subsidy
payments, the state is subrogated to the issuer's rights to any federal interest subsidy
payments relating to the interest paid by the state, unless and until the state has been
reimbursed by the issuer in full.
 new text end

Sec. 9.

Minnesota Statutes 2008, section 469.005, subdivision 1, is amended to read:


Subdivision 1.

County and multicounty authorities.

The area of operation of a
county authority shall include all of the county for which it is created, and in case of
a multicounty authority, it shall include all of the political subdivisions for which the
multicounty authority is created; provided, that a county authority or a multicounty
authority shall not undertake any project within the boundaries of any city which has not
empowered the authority to function therein as provided in section 469.004 unless a
resolution has been adopted by the governing body of the citydeleted text begin , and by any authority which
has been established in the city,deleted text end declaring that there is a need for the county or multicounty
authority to exercise its powers in the city. A resolution is not required for the operation of
a Section 8 program or a public housing scattered site project.

Sec. 10.

Minnesota Statutes 2008, section 469.015, subdivision 1, is amended to read:


Subdivision 1.

Bids; notice.

All construction work, and work of demolition or
clearing, and every purchase of equipment, supplies, or materials, necessary in carrying
out the purposes of sections 469.001 to 469.047, deleted text begin that involve expenditure of $50,000 or
moredeleted text end shall be awarded by contractnew text begin as provided in section 471.345new text end . Before receiving
bids new text begin under section 471.345, subdivision 3, new text end the authority shall publish, once a week for
two consecutive weeks in an official newspaper of general circulation in the community a
notice that bids will be received for that construction work, or that purchase of equipment,
supplies, or materials. The notice shall state the nature of the work and the terms and
conditions upon which the contract is to be let, naming a time and place where bids will
be received, opened and read publicly, which time shall be not less than seven days after
the date of the last publication. After the bids have been received, opened and read
publicly and recorded, the authority shall award the contract to the lowest responsible
bidder, provided that the authority reserves the right to reject any or all bids. Each
contract shall be executed in writing, and the person to whom the contract is awarded
shall give sufficient bond to the authority for its faithful performance. If no satisfactory
bid is received, the authority may readvertise. The authority may establish reasonable
qualifications to determine the fitness and responsibility of bidders and to require bidders
to meet the qualifications before bids are accepted.

Sec. 11.

Minnesota Statutes 2008, section 469.015, subdivision 2, is amended to read:


Subd. 2.

Exception; emergency.

If the authority by a vote of four-fifths of its
members shall declare that an emergency exists requiring the immediate purchase of
any equipment or material or supplies at a cost in excess of deleted text begin $50,000 but not exceeding
$75,000deleted text end new text begin the amount provided in section 471.345new text end , or making of emergency repairs, it shall
not be necessary to advertise for bids, but the material, equipment, or supplies may be
purchased in the open market at the lowest price obtainable, or the emergency repairs may
be contracted for or performed without securing formal competitive bids. An emergency,
for purposes of this subdivision, shall be understood to be unforeseen circumstances or
conditions which result in the placing in jeopardy of human life or property.

Sec. 12.

Minnesota Statutes 2008, section 469.015, subdivision 3, is amended to read:


Subd. 3.

Performance and payment bonds.

Performance and payment bonds shall
be required from contractors for any works of construction as provided in and subject to
all the provisions of sections 574.26 to 574.31 deleted text begin except for contracts entered into by an
authority for an expenditure of less than $50,000deleted text end .

Sec. 13.

Minnesota Statutes 2008, section 469.034, subdivision 2, is amended to read:


Subd. 2.

General obligation revenue bonds.

(a) An authority may pledge the
general obligation of the general jurisdiction governmental unit as additional security for
bonds payable from income or revenues of the project or the authority. The authority
must find that the pledged revenues will equal or exceed 110 percent of the principal and
interest due on the bonds for each year. The proceeds of the bonds must be used for a
qualified housing development project or projects. The obligations must be issued and
sold in the manner and following the procedures provided by chapter 475, except the
obligations are not subject to approval by the electors, and the maturities may extend to
not more than 35 years for obligations sold to finance housing for the elderly and 40 years
for other obligations issued under this subdivision. The authority is the municipality for
purposes of chapter 475.

(b) The principal amount of the issue must be approved by the governing body of
the general jurisdiction governmental unit whose general obligation is pledged. Public
hearings must be held on issuance of the obligations by both the authority and the general
jurisdiction governmental unit. The hearings must be held at least 15 days, but not more
than 120 days, before the sale of the obligations.

(c) The maximum amount of general obligation bonds that may be issued and
outstanding under this section equals the greater of (1) one-half of one percent of
the taxable market value of the general jurisdiction governmental unit whose general
obligation is pledged, or (2) $3,000,000. In the case of county or multicounty general
obligation bonds, the outstanding general obligation bonds of all cities in the county
or counties issued under this subdivision must be added in calculating the limit under
clause (1).

(d) "General jurisdiction governmental unit" means the city in which the housing
development project is located. In the case of a county or multicounty authority, the
county or counties may act as the general jurisdiction governmental unit. In the case of
a multicounty authority, the pledge of the general obligation is a pledge of a tax on the
taxable property in each of the counties.

(e) "Qualified housing development project" means a housing development project
providing housing either for the elderly or for individuals and families with incomes not
greater than 80 percent of the median family income as estimated by the United States
Department of Housing and Urban Development for the standard metropolitan statistical
area or the nonmetropolitan county in which the project is located. The project must be
owned for the term of the bonds either by the authority or by a limited partnership or other
entity in which the authority or another entity under the sole control of the authority is the
sole general partner and the partnership or other entity must receive (1) an allocation from
the Department of Finance or an entitlement issuer of tax-exempt bonding authority for
the project and a preliminary determination by the Minnesota Housing Finance Agency
or the applicable suballocator of tax credits that the project will qualify for four percent
low-income housing tax credits or (2) a reservation of nine percent low-income housing
tax credits from the Minnesota Housing Finance Agency or a suballocator of tax credits
for the project. A qualified housing development project may admit nonelderly individuals
and families with higher incomes if:

(1) three years have passed since initial occupancy;

(2) the authority finds the project is experiencing unanticipated vacancies resulting in
insufficient revenues, because of changes in population or other unforeseen circumstances
that occurred after the initial finding of adequate revenues; and

(3) the authority finds a tax levy or payment from general assets of the general
jurisdiction governmental unit will be necessary to pay debt service on the bonds if higher
income individuals or families are not admitted.

new text begin (f) The authority may issue bonds to refund bonds issued under this subdivision in
accordance with section 475.67. The finding of the adequacy of pledged revenues required
by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the
issuance of refunding bonds. This paragraph applies to refunding bonds issued on and
after July 1, 1992.
 new text end

Sec. 14.

Minnesota Statutes 2008, section 469.040, subdivision 2, is amended to read:


Subd. 2.

Leased property, exception.

Notwithstanding the provisions of
subdivision 1, any property other than property to be operated as a parking facility that
the authority leases to private individuals or corporations for development in connection
with a redevelopment project shall have the same tax status as if the leased property were
owned by the private individuals or corporations.new text begin This subdivision does not apply to
leases by the authority to individuals or families for residential use.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to housing projects and housing
development projects constructed or acquired by an authority after July 1, 1987, for
property taxes payable in 2010 and thereafter.
 new text end

Sec. 15.

Minnesota Statutes 2008, section 469.040, subdivision 4, is amended to read:


Subd. 4.

Facilities funded from multiple sources.

In the metropolitan area, as
defined in section 473.121, subdivision 2, the tax treatment provided in subdivision 3
applies to that portion of any multifamily rental housing facility represented by the ratio of
(1) the number of units in the facility that are deleted text begin subject to the requirements ofdeleted text end new text begin constructed
with funds provided undernew text end Section 5 of the United States Housing Act of 1937,new text begin and are
receiving operating subsidy under Section 5 or rental assistance under Section 8 of the
United States Housing Act of 1937new text end as the result of the implementation of a federal court
order or consent decree to (2) the total number of units within the facility.

The housing and redevelopment authority for the city in which the facility is located,
any public entity exercising the powers of such housing and redevelopment authority, or
the county housing and redevelopment authority for the county in which the facility is
located, shall annually certify to the assessor responsible for assessing the facility, at the
time and in the manner required by the assessor, the number of units in the facility that
are deleted text begin subject to the requirements ofdeleted text end new text begin constructed with funds provided undernew text end Section 5new text begin of the
United States Housing Act of 1937, and are receiving operating subsidy under Section 5
or rental assistance under Section 8new text end of the United States Housing Act of 1937.

Nothing in this subdivision shall prevent that portion of the facility not subject to
this subdivision from meeting the requirements of section 273.128, and for that purpose
the total number of units in the facility must be taken into account.

Sec. 16.

Minnesota Statutes 2008, section 469.153, subdivision 2, is amended to read:


Subd. 2.

Project.

(a) "Project" means (1) any properties, real or personal, used
or useful in connection with a revenue producing enterprise, or any combination of
two or more such enterprises engaged or to be engaged in generating, transmitting, or
distributing electricity, assembling, fabricating, manufacturing, mixing, processing,
storing, warehousing, or distributing any products of agriculture, forestry, mining, or
manufacture, or in research and development activity in this fieldnew text begin , or in the manufacturing,
creation, or production of intangible property, including any patent, copyright, formula,
process, design, know how, format, or other similar itemnew text end ; (2) any properties, real or
personal, used or useful in the abatement or control of noise, air, or water pollution, or in
the disposal of solid wastes, in connection with a revenue producing enterprise, or any
combination of two or more such enterprises engaged or to be engaged in any business
or industry; (3) any properties, real or personal, used or useful in connection with the
business of telephonic communications, conducted or to be conducted by a telephone
company, including toll lines, poles, cables, switching, and other electronic equipment
and administrative, data processing, garage, and research and development facilities;
(4) any properties, real or personal, used or useful in connection with a district heating
system, consisting of the use of one or more energy conversion facilities to produce hot
water or steam for distribution to homes and businesses, including cogeneration facilities,
distribution lines, service facilities, and retrofit facilities for modifying the user's heating
or water system to use the heat energy converted from the steam or hot water.

(b) "Project" also includes any properties, real or personal, used or useful in
connection with a revenue producing enterprise, or any combination of two or more
such enterprises engaged in any business.

(c) "Project" also includes any properties, real or personal, used or useful for the
promotion of tourism in the state. Properties may include hotels, motels, lodges, resorts,
recreational facilities of the type that may be acquired under section 471.191, and related
facilities.

(d) "Project" also includes any properties, real or personal, used or useful in
connection with a revenue producing enterprise, whether or not operated for profit,
engaged in providing health care services, including hospitals, nursing homes, and related
medical facilities.

(e) "Project" does not include any property to be sold or to be affixed to or consumed
in the production of property for sale, and does not include any housing facility to be
rented or used as a permanent residence.

(f) "Project" also means the activities of any revenue producing enterprise involving
the construction, fabrication, sale, or leasing of equipment or products to be used in
gathering, processing, generating, transmitting, or distributing solar, wind, geothermal,
biomass, agricultural or forestry energy crops, or other alternative energy sources for
use by any person or any residential, commercial, industrial, or governmental entity in
heating, cooling, or otherwise providing energy for a facility owned or operated by that
person or entity.

(g) "Project" also includes any properties, real or personal, used or useful in
connection with a county jail, county regional jail, community corrections facilities
authorized by chapter 401, or other law enforcement facilities, the plans for which are
approved by the commissioner of corrections; provided that the provisions of section
469.155, subdivisions 7 and 13, do not apply to those projects.

(h) "Project" also includes any real properties used or useful in furtherance of the
purpose and policy of section 469.141.

(i) "Project" also includes related facilities as defined by section 471A.02,
subdivision 11.

(j) "Project" also includes an undertaking to purchase the obligations of local
governments located in whole or in part within the boundaries of the municipality that are
issued or to be issued for public purposes.

Sec. 17.

Minnesota Statutes 2008, section 471.191, subdivision 1, is amended to read:


Subdivision 1.

Lease to nonprofit.

Any city operating a program of public
recreation and playgrounds pursuant to sections 471.15 to 471.19 may acquire or lease,
equip, and maintain land, buildings, and other recreational facilities, including, but
without limitation, outdoor or indoor swimming pools, skating rinks and arenas, athletic
fields, golf courses, marinas, concert halls, museums, and facilities for other kinds of
athletic or cultural participation, contests, new text begin conventions, conferences, new text end and exhibitions,
together with related automobile parking facilities as defined in section 459.14, and may
expend funds for the operation of such program and borrow and expend funds for capital
costs thereof pursuant to the provisions of this section. A school district operating a
program of public recreation and playgrounds has the rights provided in this section. Any
facilities to be operated by a nonprofit corporation, as contemplated in section 471.16,
may be leased to the corporation upon such rentals and for such term, not exceeding 30
years, and subject to such other provisions as may be agreed; including but not limited to
provisions (a) permitting the lessee, subject to whatever conditions are stated, to provide
for the construction and equipment of the facilities by any means available to it and in the
manner determined by it, without advertisement for bids as required for other municipal
facilities, and (b) granting the lessee the option to renew the lease upon such conditions
and rentals, or to purchase the facilities at such price, as may be agreed; provided that (c)
any such lease shall require the lessee to pay net rentals sufficient to pay the principal,
interest, redemption premiums, and other expenses when due with respect to all city
bonds issued for the acquisition or betterment of the facilities, less such amount of taxes
and special assessments, if any, as may become payable in any year of the term of the
lease, on the land, building, or other facilities leased, and (d) no option shall be granted
to purchase the facilities at any time at a price less than the amount required to pay all
principal and interest to become due on such bonds to the earliest date or dates on which
they may be paid and redeemed, and all redemption premiums and other expenses of
such payment and redemption.

Sec. 18.

Minnesota Statutes 2008, section 474A.02, subdivision 2, is amended to read:


Subd. 2.

Annual volume cap.

"Annual volume cap" means the aggregate dollar
amount of obligations new text begin constituting "private activity bonds" under federal tax law and
new text end bearing interest excluded from gross income for purposes of federal income taxation
which, under the provisions of federal tax law, may be issued in one year by issuers.new text begin
Employees of the department shall handle the volume cap allocations for obligations
permitted under the federal American Recovery and Reinvestment Act of 2009, whether
taxable or tax-exempt, in accordance with orders of the commissioner.
new text end

Sec. 19.

Minnesota Statutes 2008, section 474A.02, subdivision 14, is amended to read:


Subd. 14.

Manufacturing project.

"Manufacturing project" means any facility
which is used in the manufacturing or production of tangible personal property,
including the processing resulting in a change in the condition of the propertynew text begin , or in the
manufacturing, creation, or production of intangible property, including any patent,
copyright, formula, process, design, know how, format, or other similar itemnew text end .

Sec. 20.

Minnesota Statutes 2008, section 475.67, subdivision 8, is amended to read:


Subd. 8.

Escrow account securities.

Securities purchased for the escrow account
shall be limited to:

(a) general obligations of the United States, securities whose principal and interest
payments are guaranteed by the United States, and securities issued by the following
agencies of the United States: Banks for Cooperatives, Federal Home Loan Banks,
Federal Intermediate Credit Banks, Federal Land Banks, and the Federal National
Mortgage Association; or

(b) obligations issued or guaranteed by any state or any political subdivision of a
state, which at the date of purchase are rated new text begin in new text end the highest or the next highest rating
deleted text begin givendeleted text end new text begin category new text end by Standard and Poor's Corporation, Moody's Investors Service, or a
similar nationally recognized rating agency, but not less than the rating on the refunded
bonds immediately prior to the refunding.

new text begin "Rating category," as used in this subdivision, means a generic securities rating
category, without regard in the case of a long-term rating category to any refinement or
gradation of such long-term rating category by a numerical modifier or otherwise.
 new text end

Sec. 21.

Laws 1971, chapter 773, section 4, as amended by Laws 1976, chapter 234,
section 2, is amended to read:


Sec. 4. No proceeds of any bonds issued pursuant to section 1 hereof shall be
expended for the construction or equipment of any portion of the St. Paul auditorium or
civic center connected thereto; nor shall any proceeds be expended for the acquisition or
betterment of the building known as the Lowry Medical Arts Annex. All bonds issued
under this act shall mature at any time or times within tennew text begin or, for bonds for public buildings
or parking structures, 30 new text end years from the date of issue.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the city council and the
chief clerical officer of the city of St. Paul have timely completed their compliance with
Minnesota Statutes, section 645.021, subdivisions 2 and 3.
 new text end

Sec. 22. new text begin ST. PAUL PORT AUTHORITY CREDIT.
new text end

new text begin Notwithstanding Minnesota Statutes, section 474A.061, subdivision 4, the
commissioner of finance shall apply the $31,800 deposit paid in 2008 for a proposed issue
of $1,590,000 in tax exempt bonds by the St. Paul Port Authority for District Cooling
St. Paul, Inc. to an application for an allocation of tax exempt bonds by the St. Paul Port
Authority for the same project.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and expires January 1, 2011.
 new text end

Sec. 23. new text begin EFFECTIVE DATE.
new text end

new text begin Except where provided otherwise, this article is effective the day following final
enactment.
 new text end

ARTICLE 8

MINERALS

Section 1.

Minnesota Statutes 2008, section 298.17, is amended to read:


new text begin Subdivision 1. new text end

new text begin Generally. new text end

All occupation taxes paid by persons, copartnerships,
companies, joint stock companies, corporations, and associations, however or for whatever
purpose organized, engaged in the business of mining or producing iron ore or other ores,
when collected shall be apportioned and distributed in accordance with the Constitution
of the state of Minnesota, article X, section 3, in the manner following: 90 percent shall
be deposited in the state treasury and credited to the general fund of which four-ninths
shall be used for the support of elementary and secondary schools; and ten percent of the
proceeds of the tax imposed by this section shall be deposited in the state treasury and
credited to the general fund for the general support of the university.

new text begin Subd. 2. new text end

new text begin IRRRB account. new text end

Of the moneys apportioned to the general fund by
this section there is annually appropriated and credited to the Iron Range Resources and
Rehabilitation Board account in the special revenue fund an amount equal to that which
would have been generated by a 1.5 cent tax imposed by section 298.24 on each taxable
ton produced in the preceding calendar year, to be expended for the purposes of section
298.22. The money appropriated pursuant to this deleted text begin section shalldeleted text end new text begin subdivision mustnew text end be used
(1) to provide environmental development grants to local governments located within any
county in region 3 as defined in governor's executive order number 60, issued on June
12, 1970, which does not contain a municipality qualifying pursuant to section 273.134,
paragraph (b), or (2) to provide economic development loans or grants to businesses
located within any such county, provided that the county board or an advisory group
appointed by the county board to provide recommendations on economic development
shall make recommendations to the Iron Range Resources and Rehabilitation Board
regarding the loans. Payment to the Iron Range Resources and Rehabilitation Board
account shall be made by May 15 annually.

Of the money allocated to Koochiching County, one-third must be paid to the
Koochiching County Economic Development Commission.

new text begin Subd. 3. new text end

new text begin 2009 collections. new text end

new text begin If the amount of occupation tax proceeds collected
in 2009 exceeds the amount of occupation tax that was forecast to be collected in the
February 2009 forecast, one-half of the amount credited to the general fund under
subdivision 1 and not used for the support of elementary and secondary schools or the
university, that exceeds the amount that would have been credited to the general fund
for noneducation purposes if the tax had been collected at the forecast amount, must be
deposited in the Minnesota 21st Century Minerals Fund created in section 116J.423.
 new text end

Sec. 2.

Minnesota Statutes 2008, section 298.227, is amended to read:


298.227 TACONITE ECONOMIC DEVELOPMENT FUND.

(a) An amount equal to that distributed pursuant to each taconite producer's taxable
production and qualifying sales under section 298.28, subdivision 9a, shall be held by
the Iron Range Resources and Rehabilitation Board in a separate taconite economic
development fund for each taconite and direct reduced ore producer. Money from the
fund for each producer shall be released by the commissioner after review by a joint
committee consisting of an equal number of representatives of the salaried employees and
the nonsalaried production and maintenance employees of that producer. The District 11
director of the United States Steelworkers of America, on advice of each local employee
president, shall select the employee members. In nonorganized operations, the employee
committee shall be elected by the nonsalaried production and maintenance employees.
The review must be completed no later than six months after the producer presents a
proposal for expenditure of the funds to the committee. The funds held pursuant to this
section may be released only for workforce development and associated public facility
improvement, or for acquisition of plant and stationary mining equipment and facilities
for the producer or for research and development in Minnesota on new mining, or
taconite, iron, or steel production technology, but only if the producer provides a matching
expenditure to be used for the same purpose of at least 50 percent of the distribution
based on 14.7 cents per ton beginning with distributions in 2002. Effective for proposals
for expenditures of money from the fund beginning May 26, 2007, the commissioner
may not release the funds before the next scheduled meeting of the board. If the board
rejects a proposed expenditure, the funds must be deposited in the Taconite Environmental
Protection Fund under sections 298.222 to 298.225. If a producer uses money which has
been released from the fund prior to May 26, 2007 to procure haulage trucks, mobile
equipment, or mining shovels, and the producer removes the piece of equipment from the
taconite tax relief area defined in section 273.134 within ten years from the date of receipt
of the money from the fund, a portion of the money granted from the fund must be repaid
to the taconite economic development fund. The portion of the money to be repaid is 100
percent of the grant if the equipment is removed from the taconite tax relief area within 12
months after receipt of the money from the fund, declining by ten percent for each of the
subsequent nine years during which the equipment remains within the taconite tax relief
area. If a taconite production facility is sold after operations at the facility had ceased, any
money remaining in the fund for the former producer may be released to the purchaser of
the facility on the terms otherwise applicable to the former producer under this section. If
a producer fails to provide matching funds for a proposed expenditure within six months
after the commissioner approves release of the funds, the funds are available for release to
another producer in proportion to the distribution provided and under the conditions of
this section. Any portion of the fund which is not released by the commissioner within
one year of its deposit in the fund shall be divided between the taconite environmental
protection fund created in section 298.223 and the Douglas J. Johnson economic protection
trust fund created in section 298.292 for placement in their respective special accounts.
Two-thirds of the unreleased funds shall be distributed to the taconite environmental
protection fund and one-third to the Douglas J. Johnson economic protection trust fund.

(b) Notwithstanding the requirements of paragraph (a), setting the amount of
distributions and the review process, an amount equal to ten cents per taxable ton of
production in 2007, for distribution in 2008 only, that would otherwise be distributed
under paragraph (a), may be used for a loan for the cost of construction of a biomass
energy facility. This amount must be deducted from the distribution under paragraph
(a) for which a matching expenditure by the producer is not required. The granting of
the loan is subject to approval by the Iron Range Resources and Rehabilitation Board;
interest must be payable on the loan at the rate prescribed in section 298.2213, subdivision
3. Repayments of the loan and interest must be deposited in the northeast Minnesota
economic development fund established in section 298.2213. If a loan is not made under
this paragraph by July 1, deleted text begin 2009deleted text end new text begin 2010new text end , the amount that had been made available for the
loan under this paragraph must be transferred to the northeast Minnesota economic
development fund. Money distributed in 2008 to the fund established under this section
that exceeds ten cents per ton is available to qualifying producers under paragraph (a)
on a pro rata basis.

deleted text begin If 2008 H.F. No. 1812 is enacted and includes a provision that amends this section
in a manner that is different from the amendment in this section, the amendment in this
section supersedes the amendment in 2008 H.F. No. 1812, notwithstanding section 645.26.
 deleted text end

Sec. 3.

Minnesota Statutes 2008, section 298.24, subdivision 1, is amended to read:


Subdivision 1.

Imposed; calculation.

(a) For concentrate produced in 2001, 2002,
and 2003, there is imposed upon taconite and iron sulphides, and upon the mining and
quarrying thereof, and upon the production of iron ore concentrate therefrom, and upon
the concentrate so produced, a tax of $2.103 per gross ton of merchantable iron ore
concentrate produced therefrom. For concentrates produced in 2005, the tax rate is the
same rate imposed for concentrates produced in 2004. For concentrates produced in 2009
and subsequent years, the tax is also imposed upon other iron-bearing material.

(b) For concentrates produced in 2006 and subsequent years, the tax rate shall be
equal to the preceding year's tax rate plus an amount equal to the preceding year's tax
rate multiplied by the percentage increase in the implicit price deflator from the fourth
quarter of the second preceding year to the fourth quarter of the preceding yearnew text begin , that may
not be less than zeronew text end . "Implicit price deflator" means the implicit price deflator for the
gross domestic product prepared by the Bureau of Economic Analysis of the United
States Department of Commerce.

(c) An additional tax is imposed equal to three cents per gross ton of merchantable
iron ore concentrate for each one percent that the iron content of the product exceeds 72
percent, when dried at 212 degrees Fahrenheit.

(d) The tax on taconite and iron sulphides shall be imposed on the average of the
production for the current year and the previous two years. The rate of the tax imposed
will be the current year's tax rate. This clause shall not apply in the case of the closing
of a taconite facility if the property taxes on the facility would be higher if this clause
and section 298.25 were not applicable. The tax on other iron-bearing material shall be
imposed on the current year production.

(e) If the tax or any part of the tax imposed by this subdivision is held to be
unconstitutional, a tax of $2.103 per gross ton of merchantable iron ore concentrate
produced shall be imposed.

(f) Consistent with the intent of this subdivision to impose a tax based upon the
weight of merchantable iron ore concentrate, the commissioner of revenue may indirectly
determine the weight of merchantable iron ore concentrate included in fluxed pellets by
subtracting the weight of the limestone, dolomite, or olivine derivatives or other basic
flux additives included in the pellets from the weight of the pellets. For purposes of this
paragraph, "fluxed pellets" are pellets produced in a process in which limestone, dolomite,
olivine, or other basic flux additives are combined with merchantable iron ore concentrate.
No subtraction from the weight of the pellets shall be allowed for binders, mineral and
chemical additives other than basic flux additives, or moisture.

(g)(1) Notwithstanding any other provision of this subdivision, for the first two years
of a plant's commercial production of direct reduced ore from ore mined in this state, no
tax is imposed under this section. As used in this paragraph, "commercial production" is
production of more than 50,000 tons of direct reduced ore in the current year or in any
prior year, "noncommercial production" is production of 50,000 tons or less of direct
reduced ore in any year, and "direct reduced ore" is ore that results in a product that has an
iron content of at least 75 percent. For the third year of a plant's commercial production of
direct reduced ore, the rate to be applied to direct reduced ore is 25 percent of the rate
otherwise determined under this subdivision. For the fourth commercial production year,
the rate is 50 percent of the rate otherwise determined under this subdivision; for the fifth
commercial production year, the rate is 75 percent of the rate otherwise determined under
this subdivision; and for all subsequent commercial production years, the full rate is
imposed.new text begin The exemption from production tax under this paragraph does not subject the
exempt property to ad valorem taxation.
new text end

(2) Subject to clause (1), production of direct reduced ore in this state is subject to
the tax imposed by this section, but if that production is not produced by a producer of
taconite, iron sulfides, or other iron-bearing material, the production of taconite, iron
sulfides, or other iron-bearing material, that is consumed in the production of direct
reduced iron in this state is not subject to the tax imposed by this section on taconite,
iron sulfides, or other iron-bearing material.

(3) Notwithstanding any other provision of this subdivision, no tax is imposed
on direct reduced ore under this section during the facility's noncommercial production
of direct reduced ore. The taconite or iron sulphides consumed in the noncommercial
production of direct reduced ore is subject to the tax imposed by this section on taconite
and iron sulphides. Three-year average production of direct reduced ore does not
include production of direct reduced ore in any noncommercial year. Three-year average
production for a direct reduced ore facility that has noncommercial production is the
average of the commercial production of direct reduced ore for the current year and the
previous two commercial years.

(4) This paragraph applies only to plants for which all environmental permits have
been obtained and construction has begun before July 1, 2008.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 4.

Minnesota Statutes 2008, section 298.28, subdivision 4, is amended to read:


Subd. 4.

School districts.

(a) 23.15 cents per taxable ton, plus the increase provided
in paragraph (d) must be allocated to qualifying school districts to be distributed, based
upon the certification of the commissioner of revenue, under paragraphs (b), (c), and (f).

(b)(i) 3.43 cents per taxable ton must be distributed to the school districts in which
the lands from which taconite was mined or quarried were located or within which the
concentrate was produced. The distribution must be based on the apportionment formula
prescribed in subdivision 2.

(ii) Four cents per taxable ton from each taconite facility must be distributed to
each affected school district for deposit in a fund dedicated to building maintenance
and repairs, as follows:

(1) proceeds from Keewatin Taconite or its successor are distributed to Independent
School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor
districts;

(2) proceeds from the Hibbing Taconite Company or its successor are distributed to
Independent School Districts Nos. 695, Chisholm, and 701, Hibbing, or their successor
districts;

(3) proceeds from the Mittal Steel Company and Minntac or their successors are
distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl, 706, Virginia,
2711, Mesabi East, and 2154, Eveleth-Gilbert, or their successor districts;

(4) proceeds from the Northshore Mining Company or its successor are distributed
to Independent School Districts Nos. 2142, St. Louis County, and 381, Lake Superior,
or their successor districts; and

(5) proceeds from United Taconite or its successor are distributed to Independent
School Districts Nos. 2142, St. Louis County, and 2154, Eveleth-Gilbert, or their
successor districts.

Revenues that are required to be distributed to more than one district shall be
apportioned according to the number of pupil units identified in section 126C.05,
subdivision 1, enrolled in the second previous year.

(c)(i) 15.72 cents per taxable ton, less any amount distributed under paragraph (e),
shall be distributed to a group of school districts comprised of those school districts which
qualify as a tax relief area under section 273.134, paragraph (b), or in which there is a
qualifying municipality as defined by section 273.134, paragraph (a), in direct proportion
to school district indexes as follows: for each school district, its pupil units determined
under section 126C.05 for the prior school year shall be multiplied by the ratio of the
average adjusted net tax capacity per pupil unit for school districts receiving aid under
this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year
ending prior to distribution to the adjusted net tax capacity per pupil unit of the district.
Each district shall receive that portion of the distribution which its index bears to the sum
of the indices for all school districts that receive the distributions.

(ii) Notwithstanding clause (i), each school district that receives a distribution
under sections 298.018; 298.23 to 298.28, exclusive of any amount received under this
clause; 298.34 to 298.39; 298.391 to 298.396; 298.405; or any law imposing a tax on
severed mineral values after reduction for any portion distributed to cities and towns under
section 126C.48, subdivision 8, paragraph (5), that is less than the amount of its levy
reduction under section 126C.48, subdivision 8, for the second year prior to the year of the
distribution shall receive a distribution equal to the difference; the amount necessary to
make this payment shall be derived from proportionate reductions in the initial distribution
to other school districts under clause (i).

new text begin If there are insufficient tax proceeds to make the distribution provided under this
paragraph in any year, money must be transferred from the taconite property tax relief
account in subdivision 6, to the extent of the shortfall in the distribution.
 new text end

(d) Any school district described in paragraph (c) where a levy increase pursuant to
section 126C.17, subdivision 9, was authorized by referendum for taxes payable in 2001,
shall receive a distribution of 21.3 cents per ton. Each district shall receive $175 times the
pupil units identified in section 126C.05, subdivision 1, enrolled in the second previous
year or the 1983-1984 school year, whichever is greater, less the product of 1.8 percent
times the district's taxable net tax capacity in the second previous year.

If the total amount provided by paragraph (d) is insufficient to make the payments
herein required then the entitlement of $175 per pupil unit shall be reduced uniformly
so as not to exceed the funds available. Any amounts received by a qualifying school
district in any fiscal year pursuant to paragraph (d) shall not be applied to reduce general
education aid which the district receives pursuant to section 126C.13 or the permissible
levies of the district. Any amount remaining after the payments provided in this paragraph
shall be paid to the commissioner of Iron Range resources and rehabilitation who shall
deposit the same in the taconite environmental protection fund and the Douglas J. Johnson
economic protection trust fund as provided in subdivision 11.

Each district receiving money according to this paragraph shall reserve the lesser of
the amount received under this paragraph or $25 times the number of pupil units served
in the district. It may use the money for early childhood programs or for outcome-based
learning programs that enhance the academic quality of the district's curriculum. The
outcome-based learning programs must be approved by the commissioner of education.

(e) There shall be distributed to any school district the amount which the school
district was entitled to receive under section 298.32 in 1975.

(f) Four cents per taxable ton must be distributed to qualifying school districts
according to the distribution specified in paragraph (b), clause (ii), and two cents per
taxable ton must be distributed according to the distribution specified in paragraph
(c). These amounts are not subject to sections 126C.21, subdivision 4, and 126C.48,
subdivision 8.

Sec. 5.

Minnesota Statutes 2008, section 298.282, subdivision 1, is amended to read:


Subdivision 1.

Distribution of taconite municipal aid account.

The amount
deposited with the county as provided in section 298.28, subdivision 3, must be distributed
as provided by this section among: (1) the municipalities comprising a deleted text begin tax reliefdeleted text end new text begin taconite
assistancenew text end area under section deleted text begin 273.134deleted text end new text begin 273.1341new text end , paragraph (b); (2) a township that
contains a state park consisting primarily of an underground iron ore mine; and (3) a city
located within five miles of that state park, each being referred to in this section as a
qualifying municipality.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 6.

Laws 2008, chapter 366, article 10, section 15, is amended to read:


Sec. 15. 2008 DISTRIBUTIONS ONLY.

For distribution in 2008 only, a special fund is established to receive 11.4 cents
per ton that otherwise would be allocated under Minnesota Statutes, section 298.28,
subdivision 6. If sufficient funds are not available under Minnesota Statutes, section
298.28, subdivision 6, to make the payments required under this section and under
Minnesota Statutes, section 298.28, subdivision 6, the remaining amount needed to total
11.4 cents per ton may be taken from funds available under Minnesota Statutes, section
298.28, subdivision 9. If 2008 H.F. No. 1812 is enacted and includes a provision that
distributes funds that would otherwise be allocated under Minnesota Statutes, section
298.28, subdivision 6, in a manner different from the distribution required in this section,
the distribution in this section supersedes the distribution set in 2008 H.F. No. 1812
notwithstanding Minnesota Statutes, section 645.26. The following amounts are allocated
to St. Louis County acting as the fiscal agent for the recipients for the following specified
purposes:

(1) two cents per ton must be paid to the Hibbing Economic Development Authority
to retire bonds and for economic development purposes;

(2) one cent per ton must be divided among and paid in equal shares to each of the
board of St. Louis County School District No. 2142, the board of Ely School District No.
696, the board of Mountain Iron-Buhl School District No. 712, and the board of Virginia
School District No. 706 for each to study the potential for and impact of consolidation
and streamlining the operations of their school districts;

(3) 0.25 cent per ton must be paid to the city of Grand Rapids, for industrial park
work;

(4) 0.65 cent per ton must be paid to the city of Aitkin, for sewer and water for
housing projects;

(5) 0.5 cent per ton must be paid to the city of Crosby, for well and water tower
infrastructure;

(6) 0.5 cent per ton must be paid to the city of Two Harbors, for well and water
tower infrastructure;

(7) 1.5 cents per ton must be paid to the city of Silver Bay to pay for health and
safety and maintenance improvements at a former elementary school building that is
currently owned by the city, to be used for economic development purposes;

(8) 1.5 cents per ton must be paid to St. Louis County to extend water and sewer
lines from the city of Chisholm to the St. Louis County fairgrounds;

(9) 1.5 cents per ton must be paid to the White Community Hospital for debt
restructuring;

(10) 0.5 cent per ton must be paid to the city of Keewatin for street, sewer, and
water improvements;

(11) 0.5 cent per ton must be paid to the city of Calumet for street, sewer, and water
improvements; and

(12) one cent per ton must be paid to Breitung township for sewer and water
extensions associated with the development of a state park, provided that new text begin Breitung
township may retain the amount distributed to it until used for this purpose or, new text end if
a new state park is not established in Breitung township by July 1, deleted text begin 2009deleted text end new text begin 2012new text end , the
money provided in this clause must be transferred to the northeast Minnesota economic
development fund established in Minnesota Statutes, section 298.2213.

Sec. 7. new text begin GRANTS OR LOANS FOR GREEN MANUFACTURING FACILITY;
APPROPRIATION.
new text end

new text begin (a) If approved by a majority vote of the members of the Iron Range Resources and
Rehabilitation Board, $10,000,000 must be made available from the Douglas J. Johnson
economic protection trust fund, notwithstanding Minnesota Statutes, section 298.292,
subdivision 2, as a grant or forgivable loan to a manufacturer of windmill blades at a
facility to be located within the taconite tax relief area defined in Minnesota Statutes,
section 273.134.
 new text end

new text begin (b) If $10,000,000 is provided from the Douglas J. Johnson economic protection
trust fund under paragraph (a):
 new text end

new text begin (1) an additional $10,000,000 is appropriated from the general fund to the
commissioner of iron range resources and rehabilitation to be used to make a grant or
forgivable loan to the manufacturer described in paragraph (a); and
 new text end

new text begin (2) notwithstanding Minnesota Statutes, section 116J.423, the commissioner of
employment and economic development must transfer $10,000,000 from the Minnesota
minerals 21st century fund to the commissioner of iron range resources and rehabilitation
to be used to make a grant or forgivable loan to the manufacturer described in paragraph
(a).
 new text end

ARTICLE 9

DEPARTMENT INDIVIDUAL INCOME, CORPORATE FRANCHISE,
AND ESTATE TAXES

Section 1.

Minnesota Statutes 2008, section 289A.08, subdivision 3, is amended to
read:


Subd. 3.

Corporations.

new text begin (a) new text end A corporation that is subject to the state's jurisdiction to
tax under section 290.014, subdivision 5, must file a return, except that a foreign operating
corporation as defined in section 290.01, subdivision 6b, is not required to file a return.

new text begin (b) Members of a unitary business that are required to file a combined report on one
return must designate a member of the unitary business to be responsible for tax matters,
including the filing of returns, the payment of taxes, additions to tax, penalties, interest,
or any other payment, and for the receipt of refunds of taxes or interest paid in excess of
taxes lawfully due. The designated member must be a member of the unitary business that
is filing the single combined report and either:
 new text end

new text begin (1) a corporation that is subject to the taxes imposed by chapter 290; or
 new text end

new text begin (2) a corporation that is not subject to the taxes imposed by chapter 290:
 new text end

new text begin (i) Such corporation consents by filing the return as a designated member under this
clause to remit taxes, penalties, interest, or additions to tax due from the members of the
unitary business subject to tax, and receive refunds or other payments on behalf of other
members of the unitary business. The member designated under this clause is a "taxpayer"
for the purposes of this chapter and chapter 270C, and is liable for any liability imposed
on the unitary business under this chapter and chapter 290.
 new text end

new text begin (ii) If the state does not otherwise have the jurisdiction to tax the member designated
under this clause, consenting to be the designated member does not create the jurisdiction
to impose tax on the designated member, other than as described in item (i).
 new text end

new text begin (iii) The member designated under this clause must apply for a business tax account
identification number.
 new text end

new text begin (c)new text end The commissioner shall adopt rules for the filing of one return on behalf of the
members of an affiliated group of corporations that are required to file a combined report.
All members of an affiliated group that are required to file a combined report must file one
return on behalf of the members of the group under rules adopted by the commissioner.

new text begin (d)new text end If a corporation claims on a return that it has paid tax in excess of the amount of
taxes lawfully due, that corporation must include on that return information necessary for
payment of the tax in excess of the amount lawfully due by electronic means.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008.
 new text end

Sec. 2.

Minnesota Statutes 2008, section 289A.12, is amended by adding a subdivision
to read:


new text begin Subd. 16. new text end

new text begin Qualified intermediaries. new text end

new text begin The commissioner may by notice and demand
require a qualified intermediary to file a return relating to transactions for which the
intermediary acted to facilitate exchanges under section 1031 of the Internal Revenue
Code. The return must include the name, address, and state or federal tax identification
number or Social Security number of each of the parties to the exchange, information
relating to the property subject to the exchange, and any other information required by
the commissioner.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009, and applies to all
transactions whether facilitated on, before, or after that date.
 new text end

Sec. 3.

Minnesota Statutes 2008, section 289A.18, subdivision 1, is amended to read:


Subdivision 1.

Individual income, fiduciary income, corporate franchise, and
entertainment taxes; partnership and S corporation returns; information returns;
mining company returns.

The returns required to be made under sections 289A.08 and
289A.12 must be filed at the following times:

(1) returns made on the basis of the calendar year must be filed on April 15 following
the close of the calendar year, except that returns of corporations must be filed on March
15 following the close of the calendar year;

(2) returns made on the basis of the fiscal year must be filed on the 15th day of the
fourth month following the close of the fiscal year, except that returns of corporations
must be filed on the 15th day of the third month following the close of the fiscal year;

(3) returns for a fractional part of a year must be filed on the 15th day of the fourth
month following the end of the month in which falls the last day of the period for which
the return is made, except that the returns of corporations must be filed on the 15th day of
the third month following the end of the tax year; or, in the case of a corporation which is
a member of a unitary group, the return of the corporation must be filed on the 15th day of
the third month following the end of the tax year of the unitary group in which falls the
last day of the period for which the return is made;

(4) in the case of a final return of a decedent for a fractional part of a year, the return
must be filed on the 15th day of the fourth month following the close of the 12-month
period that began with the first day of that fractional part of a year;

(5) in the case of the return of a cooperative association, returns must be filed on or
before the 15th day of the ninth month following the close of the taxable year;

(6) if a corporation has been divested from a unitary group and files a return for
a fractional part of a year in which it was a member of a unitary business that files a
combined report under section 290.17, subdivision 4, the divested corporation's return
must be filed on the 15th day of the third month following the close of the common
accounting period that includes the fractional year;

(7) returns of entertainment entities must be filed on April 15 following the close of
the calendar year;

(8) returns required to be filed under section 289A.08, subdivision 4, must be filed
on the 15th day of the fifth month following the close of the taxable year;

(9) returns of mining companies must be filed on May 1 following the close of the
calendar year; and

(10) returns required to be filed with the commissioner under section 289A.12,
subdivision 2 deleted text begin ordeleted text end new text begin ,new text end 4 to 10,new text begin or 16new text end must be filed within 30 days after being demanded by
the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
 new text end

Sec. 4.

Minnesota Statutes 2008, section 289A.19, subdivision 4, is amended to read:


Subd. 4.

Estate tax returns.

deleted text begin When an extension to file the federal estate tax return
has been granted under section 6081 of the Internal Revenue Code, the time for filing
the estate tax return is extended for that period. If the estate requests an extension to
file an estate tax return within the time provided in section 289A.18, subdivision 3, the
commissioner shall extend the time for filing the estate tax return for six months. deleted text end new text begin The time
for filing an estate tax return shall be extended for either six months or the amount of
time granted under section 6081 of the Internal Revenue Code to file the federal estate
tax return, whichever is longer.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for estates of decedents dying after
December 31, 2008.
 new text end

Sec. 5.

Minnesota Statutes 2008, section 289A.31, subdivision 5, is amended to read:


Subd. 5.

Withholding tax, withholding from payments to out-of-state
contractors, and withholding by partnerships and small business corporations.

(a)
Except as provided in paragraph (b), an employer or person withholding tax under section
290.92 or 290.923, subdivision 2, who fails to pay to or deposit with the commissioner a
sum or sums required by those sections to be deducted, withheld, and paid, is personally
and individually liable to the state for the sum or sums, and added penalties and interest,
and is not liable to another person for that payment or payments. The sum or sums
deducted and withheld under section 290.92, subdivision 2a or 3, or 290.923, subdivision
2, must be held as a special fund in trust for the state of Minnesota.

(b) If the employer or person withholding tax under section 290.92 or 290.923,
subdivision 2, fails to deduct and withhold the tax in violation of those sections, and later
the taxes against which the tax may be credited are paid, the tax required to be deducted
and withheld will not be collected from the employer. This does not, however, relieve the
employer from liability for any penalties and interest otherwise applicable for failure to
deduct and withhold.new text begin This paragraph does not apply to an employer subject to paragraph
(g), or to a contractor required to withhold under section 290.92, subdivision 31.
new text end

(c) Liability for payment of withholding taxes includes a responsible person or entity
described in the personal liability provisions of section 270C.56.

(d) Liability for payment of withholding taxes includes a third party lender or surety
described in section 270C.59.

(e) A partnership or S corporation required to withhold and remit tax under section
290.92, subdivisions 4b and 4c, is liable for payment of the tax to the commissioner, and a
person having control of or responsibility for the withholding of the tax or the filing of
returns due in connection with the tax is personally liable for the tax due.

(f) A payor of sums required to be withheld under section 290.9705, subdivision
1, is liable to the state for the amount required to be deducted, and is not liable to an
out-of-state contractor for the amount of the payment.

new text begin (g) If an employer fails to withhold tax from the wages of an employee when
required to do so under section 290.92, subdivision 2a, by reason of treating such
employee as not being an employee, then the liability for tax is equal to three percent of
the wages paid to the employee. The liability for tax of an employee is not affected by
the assessment or collection of tax under this paragraph. The employer is not entitled to
recover from the employee any tax determined under this paragraph.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effect for taxes required to be withheld after
June 30, 2009.
 new text end

Sec. 6.

Minnesota Statutes 2008, section 289A.38, subdivision 7, is amended to read:


Subd. 7.

Federal tax changes.

If the amount of income, items of tax preference,
deductions, or credits for any year of a taxpayernew text begin , or the wages paid by a taxpayer for
any period,new text end as reported to the Internal Revenue Service is changed or corrected by the
commissioner of Internal Revenue or other officer of the United States or other competent
authority, or where a renegotiation of a contract or subcontract with the United States
results in a change in income, items of tax preference, deductions, credits, or withholding
tax, or, in the case of estate tax, where there are adjustments to the taxable estate, the
taxpayer shall report the change or correction or renegotiation results in writing to the
commissioner. The report must be submitted within 180 days after the final determination
and must be in the form of either an amended Minnesota estate, withholding tax, corporate
franchise tax, or income tax return conceding the accuracy of the federal determination
or a letter detailing how the federal determination is incorrect or does not change the
Minnesota tax. An amended Minnesota income tax return must be accompanied by an
amended property tax refund return, if necessary. A taxpayer filing an amended federal
tax return must also file a copy of the amended return with the commissioner of revenue
within 180 days after filing the amended return.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 7.

Minnesota Statutes 2008, section 290.01, subdivision 19b, is amended to read:


Subd. 19b.

Subtractions from federal taxable income.

For individuals, estates,
and trusts, there shall be subtracted from federal taxable income:

(1) net interest income on obligations of any authority, commission, or
instrumentality of the United States to the extent includable in taxable income for federal
income tax purposes but exempt from state income tax under the laws of the United States;

(2) if included in federal taxable income, the amount of any overpayment of income
tax to Minnesota or to any other state, for any previous taxable year, whether the amount
is received as a refund or as a credit to another taxable year's income tax liability;

(3) the amount paid to others, less the amount used to claim the credit allowed under
section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten
to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
transportation of each qualifying child in attending an elementary or secondary school
situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
resident of this state may legally fulfill the state's compulsory attendance laws, which
is not operated for profit, and which adheres to the provisions of the Civil Rights Act
of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause,
"textbooks" includes books and other instructional materials and equipment purchased
or leased for use in elementary and secondary schools in teaching only those subjects
legally and commonly taught in public elementary and secondary schools in this state.
Equipment expenses qualifying for deduction includes expenses as defined and limited in
section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional
books and materials used in the teaching of religious tenets, doctrines, or worship, the
purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
or materials for, or transportation to, extracurricular activities including sporting events,
musical or dramatic events, speech activities, driver's education, or similar programs. new text begin No
deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
the qualifying child's vehicle to provide such transportation for a qualifying child. new text end For
purposes of the subtraction provided by this clause, "qualifying child" has the meaning
given in section 32(c)(3) of the Internal Revenue Code;

(4) income as provided under section 290.0802;

(5) to the extent included in federal adjusted gross income, income realized on
disposition of property exempt from tax under section 290.491;

(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
of the Internal Revenue Code in determining federal taxable income by an individual
who does not itemize deductions for federal income tax purposes for the taxable year, an
amount equal to 50 percent of the excess of charitable contributions over $500 allowable
as a deduction for the taxable year under section 170(a) of the Internal Revenue Code and
under the provisions of Public Law 109-1;

(7) for taxable years beginning before January 1, 2008, the amount of the federal
small ethanol producer credit allowed under section 40(a)(3) of the Internal Revenue Code
which is included in gross income under section 87 of the Internal Revenue Code;

(8) for individuals who are allowed a federal foreign tax credit for taxes that do not
qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover
of subnational foreign taxes for the taxable year, but not to exceed the total subnational
foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
"federal foreign tax credit" means the credit allowed under section 27 of the Internal
Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
the extent they exceed the federal foreign tax credit;

(9) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case
of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth
of the delayed depreciation. For purposes of this clause, "delayed depreciation" means
the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or
subdivision 19c, clause (15), in the case of a shareholder of an S corporation, minus the
positive value of any net operating loss under section 172 of the Internal Revenue Code
generated for the tax year of the addition. The resulting delayed depreciation cannot be
less than zero;

(10) job opportunity building zone income as provided under section 469.316;

(11) to the extent included in federal taxable income, the amount of compensation
paid to members of the Minnesota National Guard or other reserve components of the
United States military for active service performed in Minnesota, excluding compensation
for services performed under the Active Guard Reserve (AGR) program. For purposes of
this clause, "active service" means (i) state active service as defined in section 190.05,
subdivision 5a, clause (1); (ii) federally funded state active service as defined in section
190.05, subdivision 5b; or (iii) federal active service as defined in section 190.05,
subdivision 5c, but "active service" excludes service performed in accordance with section
190.08, subdivision 3;

(12) to the extent included in federal taxable income, the amount of compensation
paid to Minnesota residents who are members of the armed forces of the United States or
United Nations for active duty performed outside Minnesota under United States Code,
title 10, section 101(d); United States Code, title 32, section 101(12); or the authority of
the United Nations;

(13) an amount, not to exceed $10,000, equal to qualified expenses related to a
qualified donor's donation, while living, of one or more of the qualified donor's organs
to another person for human organ transplantation. For purposes of this clause, "organ"
means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
"human organ transplantation" means the medical procedure by which transfer of a human
organ is made from the body of one person to the body of another person; "qualified
expenses" means unreimbursed expenses for both the individual and the qualified donor
for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
may be subtracted under this clause only once; and "qualified donor" means the individual
or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
individual may claim the subtraction in this clause for each instance of organ donation for
transplantation during the taxable year in which the qualified expenses occur;

(14) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of a
shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in the
case of a shareholder of a corporation that is an S corporation, minus the positive value of
any net operating loss under section 172 of the Internal Revenue Code generated for the
tax year of the addition. If the net operating loss exceeds the addition for the tax year, a
subtraction is not allowed under this clause;

(15) to the extent included in federal taxable income, compensation paid to a service
member as defined in United States Code, title 10, section 101(a)(5), for military service
as defined in the Servicemembers Civil Relief Act, Public Law 108-189, section 101(2);

(16) international economic development zone income as provided under section
469.325; and

(17) to the extent included in federal taxable income, the amount of national service
educational awards received from the National Service Trust under United States Code,
title 42, sections 12601 to 12604, for service in an approved Americorps National Service
program.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 8.

Minnesota Statutes 2008, section 290.0671, subdivision 1, is amended to read:


Subdivision 1.

Credit allowed.

(a) An individual is allowed a credit against the tax
imposed by this chapter equal to a percentage of earned income. To receive a credit, a
taxpayer must be eligible for a credit under section 32 of the Internal Revenue Code.

(b) For individuals with no qualifying children, the credit equals 1.9125 percent of
the first $4,620 of earned income. The credit is reduced by 1.9125 percent of earned
income or adjusted gross income, whichever is greater, in excess of $5,770, but in no
case is the credit less than zero.

(c) For individuals with one qualifying child, the credit equals 8.5 percent of the first
$6,920 of earned income and 8.5 percent of earned income over $12,080 but less than
$13,450. The credit is reduced by 5.73 percent of earned income or adjusted gross income,
whichever is greater, in excess of $15,080, but in no case is the credit less than zero.

(d) For individuals with two or more qualifying children, the credit equals ten
percent of the first $9,720 of earned income and 20 percent of earned income over
$14,860 but less than $16,800. The credit is reduced by 10.3 percent of earned income
or adjusted gross income, whichever is greater, in excess of $17,890, but in no case is
the credit less than zero.

(e) For a nonresident or part-year resident, the credit must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).

(f) For a person who was a resident for the entire tax year and has earned income
not subject to tax under this chapter, including income excluded under section 290.01,
subdivision 19b, clause (10) or (16), the credit must be allocated based on the ratio of
federal adjusted gross income reduced by the earned income not subject to tax under
this chapter over federal adjusted gross income. For purposes of this paragraph, the
subtractions for military pay under section 290.01, subdivision 19b, clauses (11) and (12),
are not considered "earned income not subject to tax under this chapter."

For the purposes of this paragraph, the exclusion of combat pay under section 112
of the Internal Revenue Code is not considered "earned income not subject to tax under
this chapter."

deleted text begin (g) For tax years beginning after December 31, 2001, and before December 31,
2004, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in
paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by
$1,000 for married taxpayers filing joint returns.
 deleted text end

deleted text begin (h) For tax years beginning after December 31, 2004, and before December 31,
2007, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in
paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by
$2,000 for married taxpayers filing joint returns.
 deleted text end

deleted text begin (i)deleted text end new text begin (g) new text end For tax years beginning after December 31, 2007, and before December
31, 2010, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in
paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by
$3,000 for married taxpayers filing joint returns. For tax years beginning after December
31, 2008, the new text begin commissioner shall annually adjust the new text end $3,000 deleted text begin is adjusted annually for
inflation under subdivision 7deleted text end new text begin by the percentage determined pursuant to the provisions of
section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B), the word
"2007" shall be substituted for the word "1992." For 2009, the commissioner shall then
determine the percent change from the 12 months ending on August 31, 2007, to the 12
months ending on August 31, 2008, and in each subsequent year, from the 12 months
ending on August 31, 2007, to the 12 months ending on August 31 of the year preceding
the taxable year. The earned income thresholds as adjusted for inflation must be rounded
to the nearest $10. If the amount ends in $5, the amount is rounded up to the nearest $10.
The determination of the commissioner under this subdivision is not a rule under the
Administrative Procedure Actnew text end .

deleted text begin (j)deleted text end new text begin (h) new text end The commissioner shall construct tables showing the amount of the credit
at various income levels and make them available to taxpayers. The tables shall follow
the schedule contained in this subdivision, except that the commissioner may graduate
the transition between income brackets.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008.
 new text end

Sec. 9.

Minnesota Statutes 2008, section 290A.10, is amended to read:


290A.10 PROOF OF TAXES PAID.

Every claimant who files a claim for relief for property taxes payable shall include
with the claim a property tax statement or a reproduction thereof in a form deemed
satisfactory by the commissioner of revenue indicating that there are no delinquent
property taxes on the homestead. Indication on the property tax statement from the county
treasurer that there are no delinquent taxes on the homestead shall be sufficient proof.
Taxes included in a confession of judgment under sectionnew text begin 277.23 ornew text end 279.37 shall not
constitute delinquent taxes as long as the claimant is current on the payments required to
be made under sectionnew text begin 277.23 ornew text end 279.37.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 10.

Minnesota Statutes 2008, section 290A.14, is amended to read:


290A.14 PROPERTY TAX STATEMENT.

The county treasurer shall prepare and send a sufficient number of copies of the
property tax statement to the owner, and to the owner's escrow agent if the taxes are
paid via an escrow account, to enable the owner to comply with the filing requirements
of this chapter and to retain one copy as a record. The property tax statement, in a form
prescribed by the commissioner, shall indicate the manner in which the claimant may
claim relief from the state under both this chapter and chapter 290B, and the amount of the
tax for which the applicant may claim relief. The statement shall also indicate if there
are delinquent property taxes on the property in the preceding year. Taxes included in a
confession of judgment under sectionnew text begin 277.23 ornew text end 279.37 shall not constitute delinquent
taxes as long as the claimant is current on the payments required to be made under sectionnew text begin
277.23 ornew text end 279.37.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 11. new text begin REPEALER.
new text end

new text begin Minnesota Rules, part 8009.3000, new text end new text begin is repealed.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

ARTICLE 10

DEPARTMENT SALES AND USE TAXES

Section 1.

Minnesota Statutes 2008, section 297A.70, subdivision 2, is amended to
read:


Subd. 2.

Sales to government.

(a) All sales, except those listed in paragraph (b),
to the following governments and political subdivisions, or to the listed agencies or
instrumentalities of governments and political subdivisions, are exempt:

(1) the United States and its agencies and instrumentalities;

(2) school districts, the University of Minnesota, state universities, community
colleges, technical colleges, state academies, the Perpich Minnesota Center for Arts
Education, and an instrumentality of a political subdivision that is accredited as an
optional/special function school by the North Central Association of Colleges and Schools;

(3) hospitals and nursing homes owned and operated by political subdivisions of
the state of tangible personal property and taxable services used at or by hospitals and
nursing homes;

(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip
operations provided for in section 473.4051;

(5) other states or political subdivisions of other states, if the sale would be exempt
from taxation if it occurred in that state; and

(6) sales to public libraries, public library systems, multicounty, multitype library
systems as defined in section 134.001, county law libraries under chapter 134A, state
agency libraries, the state library under section 480.09, and the Legislative Reference
Library.

(b) This exemption does not apply to the sales of the following products and services:

(1) building, construction, or reconstruction materials purchased by a contractor
or a subcontractor as a part of a lump-sum contract or similar type of contract with a
guaranteed maximum price covering both labor and materials for use in the construction,
alteration, or repair of a building or facility;

(2) construction materials purchased by tax exempt entities or their contractors to
be used in constructing buildings or facilities which will not be used principally by the
tax exempt entities;

(3) the leasing of a motor vehicle as defined in section 297B.01, subdivision 11,
except for leases entered into by the United States or its agencies or instrumentalities; or

(4) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause
(2), and prepared food, candy, deleted text begin anddeleted text end soft drinks, new text begin and alcoholic beverages as defined in
section 297A.67, subdivision 2, new text end except for lodging, prepared food, candy, deleted text begin anddeleted text end soft
drinksnew text begin , and alcoholic beveragesnew text end purchased directly by the United States or its agencies
or instrumentalities.

(c) As used in this subdivision, "school districts" means public school entities and
districts of every kind and nature organized under the laws of the state of Minnesota, and
any instrumentality of a school district, as defined in section 471.59.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2009.
 new text end

Sec. 2.

Minnesota Statutes 2008, section 297A.70, subdivision 4, is amended to read:


Subd. 4.

Sales to nonprofit groups.

(a) All sales, except those listed in paragraph
(b), to the following "nonprofit organizations" are exempt:

(1) a corporation, society, association, foundation, or institution organized and
operated exclusively for charitable, religious, or educational purposes if the item
purchased is used in the performance of charitable, religious, or educational functions; and

(2) any senior citizen group or association of groups that:

(i) in general limits membership to persons who are either age 55 or older, or
physically disabled; deleted text begin and
deleted text end

(ii) is organized and operated exclusively for pleasure, recreation, and other
nonprofit purposes, new text begin not including housing, new text end no part of the net earnings of which inures to
the benefit of any private shareholdersnew text begin ; and
new text end

new text begin (iii) is an exempt organization under section 501(c) of the Internal Revenue Codenew text end .

For purposes of this subdivision, charitable purpose includes the maintenance of a
cemetery owned by a religious organization.

(b) This exemption does not apply to the following sales:

(1) building, construction, or reconstruction materials purchased by a contractor
or a subcontractor as a part of a lump-sum contract or similar type of contract with a
guaranteed maximum price covering both labor and materials for use in the construction,
alteration, or repair of a building or facility;

(2) construction materials purchased by tax-exempt entities or their contractors to
be used in constructing buildings or facilities that will not be used principally by the
tax-exempt entities; and

(3) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause
(2), and prepared food, candy, deleted text begin anddeleted text end soft drinksnew text begin , and alcoholic beverages as defined in
section 297A.67, subdivision 2, except wine purchased by an established religious
organization for sacramental purposesnew text end ; and

(4) leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except
as provided in paragraph (c).

(c) This exemption applies to the leasing of a motor vehicle as defined in section
297B.01, subdivision 11, only if the vehicle is:

(1) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a
passenger automobile, as defined in section 168.002, if the automobile is designed and
used for carrying more than nine persons including the driver; and

(2) intended to be used primarily to transport tangible personal property or
individuals, other than employees, to whom the organization provides service in
performing its charitable, religious, or educational purpose.

(d) A limited liability company also qualifies for exemption under this subdivision if
(1) it consists of a sole member that would qualify for the exemption, and (2) the items
purchased qualify for the exemption.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2009, except that the amendment to paragraph (a) is effective the day following
final enactment.
 new text end

Sec. 3.

Minnesota Statutes 2008, section 297A.992, subdivision 2, is amended to read:


Subd. 2.

Authorization; rates.

(a) Notwithstanding section 297A.99, subdivisions
1, 2, and 3, or 477A.016, or any other law, the board of a county participating in a
joint powers agreement as specified in this section shall impose by resolution (1) a
transportation sales and use tax at a rate of one-quarter of one percent on retail sales and
uses taxable under this chapter, and (2) an excise tax of $20 per motor vehiclenew text begin , as defined
in section 297B.01, subdivision 11,new text end purchased or acquired from any person engaged in the
business of selling motor vehicles at retail, occurring within the jurisdiction of the taxing
authority. The taxes authorized are to fund transportation improvements as specified in
this section, including debt service on obligations issued to finance such improvements
pursuant to subdivision 7.

(b) The tax imposed under this section is not included in determining if the total tax
on lodging in the city of Minneapolis exceeds the maximum allowed tax under Laws 1986,
chapter 396, section 5, as amended by Laws 2001, First Special Session chapter 5, article
12, section 87, or in determining a tax that may be imposed under any other limitations.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 4.

Minnesota Statutes 2008, section 297A.993, subdivision 1, is amended to read:


Subdivision 1.

Authorization; rates.

Notwithstanding section 297A.99,
subdivisions 1, 2, 3, 5, and 13, or 477A.016, or any other law, the board of a county outside
the metropolitan transportation area, as defined under section 297A.992, subdivision 1, or
more than one county outside the metropolitan transportation area acting under a joint
powers agreement, may impose (1) a transportation sales tax at a rate of up to one-half of
one percent on retail sales and uses taxable under this chapter, and (2) an excise tax of $20
per motor vehiclenew text begin , as defined in section 297B.01, subdivision 11,new text end purchased or acquired
from any person engaged in the business of selling motor vehicles at retail, occurring
within the jurisdiction of the taxing authority. The taxes imposed under this section are
subject to approval by a majority of the voters in each of the counties affected at a general
election who vote on the question to impose the taxes.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 5. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, section 297A.67, subdivision 24, new text end new text begin is repealed.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

ARTICLE 11

DEPARTMENT SPECIAL TAXES

Section 1.

Minnesota Statutes 2008, section 287.04, is amended to read:


287.04 EXEMPTIONS.

The tax imposed by section 287.035 does not apply to:

(a) A decree of marriage dissolution or an instrument made pursuant to it.

(b) A mortgage given to correct a misdescription of the mortgaged property.

(c) A mortgage or other instrument that adds additional security for the same debt
for which mortgage registry tax has been paid.

(d) A contract for the conveyance of any interest in real property, including a
contract for deed.

(e) A mortgage secured by real property subject to the minerals production tax of
sections 298.24 to 298.28.

(f) The principal amount of a mortgage loan made under a low and moderate
income or other affordable housing program, if the mortgagee is a federal, state, or local
government agency.

(g) Mortgages granted by fraternal benefit societies subject to section 64B.24.

(h) A mortgage amendment or extension, as defined in section 287.01.

(i) An agricultural mortgage if the proceeds of the loan secured by the mortgage are
used to acquire or improve real property classified under section 273.13, subdivision 23,
paragraph (a)deleted text begin ,deleted text end or (b)deleted text begin , clause (1), (2), or (3)deleted text end .

(j) A mortgage on an armory building as set forth in section 193.147.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 2.

Minnesota Statutes 2008, section 287.05, is amended by adding a subdivision
to read:


new text begin Subd. 9. new text end

new text begin Modification of mortgage. new text end

new text begin If a mortgage, or a document modifying a
mortgage, contains more than one statement that purports to limit: the enforcement of
the mortgage to a certain dollar amount; the tax imposed on the mortgage under this
chapter; or the effect of a modifying document, including but not limited to the statements
authorized in subdivisions 1, 1a, and 8, then the tax must be imposed based on the
combined effect, if any, of all the statements.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 3.

Minnesota Statutes 2008, section 287.22, is amended to read:


287.22 EXEMPTIONS.

The tax imposed by section 287.21 does not apply to:

(1) an executory contract for the sale of real property under which the purchaser is
entitled to or does take possession of the real property, or any assignment or cancellation
of the contract;

(2) a mortgage or an amendment, assignment, extension, partial release, or
satisfaction of a mortgage;

(3) a will;

(4) a plat;

(5) a lease, amendment of lease, assignment of lease, or memorandum of lease;

(6) a deed, instrument, or writing in which the United States or any agency or
instrumentality thereof is the grantor, assignor, transferor, conveyor, grantee, or assignee;

(7) a deed for a cemetery lot or lots;

(8) a deed of distribution by a personal representative;

(9) a deed to or from a co-owner partitioning their undivided interest in the same
piece of real property;

(10) a deed or other instrument of conveyance issued pursuant to a permanent school
fund land exchange under section 92.121 and related laws;

(11) a referee's or sheriff's certificate of sale in a mortgage or lien foreclosure sale;

(12) a referee's, sheriff's, or certificate holder's certificate of redemption from a
mortgage or lien foreclosure sale issued under section 580.23 or other statute applicable to
redemption by an owner of real property;

(13) a deed, instrument, or writing which grants, creates, modifies, or terminates
an easement;

(14) a decree of marriage dissolution, as defined in section 287.01, subdivision 4,
or a deed or other instrument between the parties to the dissolution made pursuant to the
terms of the decree; and

(15) a transfer on death deed under section 507.071new text begin , and any affidavit or other
document to the extent it references a transfer on death deednew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 4.

Minnesota Statutes 2008, section 287.25, is amended to read:


287.25 PAYMENT OF TAXdeleted text begin ; STAMPSdeleted text end .

Except for documents filed electronically, deleted text begin the county board shall determine the
method for collection of the tax imposed by section 287.21:
deleted text end

deleted text begin (1) The tax imposed by section 287.21 may be paid by the affixing of a documentary
stamp or stamps in the amount of the tax to the document or instrument with respect to
which the tax is paid, provided that the county board may permit the payment of the
tax without the affixing of the documentary stamps and in such cases shall direct the
treasurer to endorse a receipt for such tax upon the face of the document or instrument.
Documents submitted electronically must have the deed tax data affixed electronically and
the tax paid as provided in section 287.08.
deleted text end

deleted text begin (2)deleted text end the tax imposed by section 287.21 deleted text begin maydeleted text end new text begin mustnew text end be paid in the manner prescribed by
section 287.08 relating to payment of mortgage registration taxnew text begin , and the treasurer must
endorse a receipt for the tax on the face of the document or instrumentnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 5.

Minnesota Statutes 2008, section 295.56, is amended to read:


295.56 TRANSFER OF ACCOUNTS RECEIVABLE.

When a hospital deleted text begin ordeleted text end new text begin , surgical center, new text end health care providernew text begin , or wholesale drug
distributornew text end transfers, assigns, or sells accounts receivable to another person who is subject
to tax under this chapter, liability for the tax on the accounts receivable is imposed on the
transferee, assignee, or buyer of the accounts receivable. No liability for these accounts
receivable is imposed on the transferor, assignor, or seller of the accounts receivable.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 6.

Minnesota Statutes 2008, section 295.57, subdivision 5, is amended to read:


Subd. 5.

Exemption for amounts paid for legend drugs.

If a hospitalnew text begin , surgical
center,new text end or health care provider cannot determine the actual cost or reimbursement of
legend drugs under the exemption provided in section 295.53, subdivision 1, paragraph
(a), clause deleted text begin (6)deleted text end new text begin (5)new text end , the following method must be used:

A hospitalnew text begin , surgical center,new text end or health care provider must determine the amount paid
for legend drugs used during the month or quarter and multiply that amount by a ratio,
the numerator of which is the total amount received for taxable patient services, and the
denominator of which is the total amount received for all patient services, including
amounts exempt under section 295.53, subdivision 1. The result represents the allowable
exemption for the monthly or quarterly cost of drugs.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 7.

Minnesota Statutes 2008, section 296A.21, subdivision 1, is amended to read:


Subdivision 1.

General rules.

(a) The commissioner shall make determinations,
corrections, assessments, and refunds with respect to taxes and fees under this chapter,
including interest, additions to taxes, and assessable penalties. Except as otherwise
provided in this section, the amount of taxes assessable must be assessed within 3-1/2
years after the date the return is filed.new text begin For purposes of this section, a tax return filed before
the last day prescribed by law for filing is considered to be filed on the last day.
new text end

(b) A claim for a refund of an overpayment of state tax or fees must be filed within
3-1/2 years from the date prescribed for filing the return, plus any extension of time
granted for filing the return, but only if filed within the extended time; or the claim must
be filed within one year from the date of an order assessing tax or fees, or from the date of
a return filed by the commissioner, upon payment in full of the tax, fees, penalties, and
interest shown on the order or return, whichever period expires later.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 8.

Minnesota Statutes 2008, section 297E.02, subdivision 4, is amended to read:


Subd. 4.

Pull-tab and tipboard tax.

(a) A tax is imposed on the sale of each deal
of pull-tabs and tipboards sold by a distributor. The rate of the tax is 1.7 percent of the
ideal gross of the pull-tab or tipboard deal. The sales tax imposed by chapter 297A on the
sale of the pull-tabs and tipboards by the distributor is imposed on the retail sales price
less the tax imposed by this subdivision. The retail sale of pull-tabs or tipboards by the
organization is exempt from taxes imposed by chapter 297A and is exempt from all local
taxes and license fees except a fee authorized under section 349.16, subdivision 8.

(b) The liability for the tax imposed by this section is incurred when the pull-tabs
and tipboards are delivered by the distributor to the customer or to a common or contract
carrier for delivery to the customer, or when received by the customer's authorized
representative at the distributor's place of business, regardless of the distributor's method
of accounting or the terms of the sale.

The tax imposed by this subdivision is imposed on all sales of pull-tabs and
tipboards, except the following:

(1) sales to the governing body of an Indian tribal organization for use on an Indian
reservation;

(2) sales to distributors licensed under the laws of another state or of a province of
Canada, as long as all statutory and regulatory requirements are met in the other state or
province;

(3) sales of promotional tickets as defined in section 349.12; and

(4) pull-tabs and tipboards sold to an organization that sells pull-tabs and tipboards
under the exemption from licensing in section 349.166, subdivision 2. A distributor shall
require an organization conducting exempt gambling to show proof of its exempt status
before making a tax-exempt sale of pull-tabs or tipboards to the organization. A distributor
shall identify, on all reports submitted to the commissioner, all sales of pull-tabs and
tipboards that are exempt from tax under this subdivision.

(c) A distributor having a liability of deleted text begin $120,000deleted text end new text begin $10,000new text end or more during a fiscal year
ending June 30 must remit all liabilities in the subsequent calendar year by electronic
means.

(d) Any customer who purchases deals of pull-tabs or tipboards from a distributor
may file an annual claim for a refund or credit of taxes paid pursuant to this subdivision
for unsold pull-tab and tipboard tickets. The claim must be filed with the commissioner on
a form prescribed by the commissioner by March 20 of the year following the calendar
year for which the refund is claimed. The refund must be filed as part of the customer's
February monthly return. The refund or credit is equal to 1.7 percent of the face value
of the unsold pull-tab or tipboard tickets, provided that the refund or credit will be 1.75
percent of the face value of the unsold pull-tab or tipboard tickets for claims for a refund
or credit of taxes filed on the February 2001 monthly return. The refund claimed will be
applied as a credit against tax owing under this chapter on the February monthly return. If
the refund claimed exceeds the tax owing on the February monthly return, that amount
will be refunded. The amount refunded will bear interest pursuant to section 270C.405
from 90 days after the claim is filed.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for payments due in calendar year
2010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30,
2009, and in fiscal years thereafter.
 new text end

Sec. 9.

Minnesota Statutes 2008, section 297E.06, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin Required signatures. new text end

new text begin The gambling manager and the chief executive
officer of the organization, or their respective designees, and the person who completed
the tax return must sign the tax return. The organization shall inform the commissioner of
revenue in writing of the identity of the designees as soon as practicable in the form and
manner prescribed by the commissioner.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 10.

Minnesota Statutes 2008, section 297E.11, subdivision 1, is amended to read:


Subdivision 1.

General rule.

Except as otherwise provided in this chapter, the
amount of taxes assessable must be assessed within 3-1/2 years after the return is filed,
whether or not the return is filed on or after the date prescribed. A return must not be
treated as filed until it is in processible form. A return is in processible form if it is filed
on a permitted form and contains sufficient data to identify the taxpayer and permit the
mathematical verification of the tax liability shown on the return.new text begin For purposes of this
section, a tax return filed before the last day prescribed by law for filing is considered to
be filed on the last day.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 11.

Minnesota Statutes 2008, section 297F.09, subdivision 7, is amended to read:


Subd. 7.

Electronic payment.

A cigarette or tobacco products distributor having a
liability of deleted text begin $120,000deleted text end new text begin $10,000 new text end or more during a fiscal year ending June 30 must remit all
liabilities in the subsequent calendar year by electronic means.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for payments due in calendar year
2010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30,
2009, and in fiscal years thereafter.
 new text end

Sec. 12.

Minnesota Statutes 2008, section 297G.09, subdivision 6, is amended to read:


Subd. 6.

Electronic payments.

A licensed brewer, importer, or wholesaler having
an excise tax liability of deleted text begin $120,000deleted text end new text begin $10,000 new text end or more during a fiscal year ending June 30
must remit all excise tax liabilities in the subsequent calendar year by electronic means.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for payments due in calendar year
2010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30,
2009, and in fiscal years thereafter.
 new text end

Sec. 13.

Minnesota Statutes 2008, section 297I.30, is amended by adding a subdivision
to read:


new text begin Subd. 9. new text end

new text begin Extensions for filing returns. new text end

new text begin When, in the commissioner's judgment,
good cause exists, the commissioner may extend the time for filing returns for not more
than six months.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 14.

Minnesota Statutes 2008, section 297I.35, subdivision 2, is amended to read:


Subd. 2.

Electronic payments.

If the aggregate amount of tax and surcharges
due under this chapter during a calendar year is equal to or exceeds deleted text begin $120,000deleted text end new text begin $10,000new text end ,
or if the taxpayer is required to make payment of any other tax to the commissioner by
electronic means, then all tax and surcharge payments in the subsequent calendar year
must be paid by electronic means.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for payments due in calendar year
2010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30,
2009, and in fiscal years thereafter.
 new text end

Sec. 15.

Minnesota Statutes 2008, section 298.28, subdivision 11, is amended to read:


Subd. 11.

Remainder.

(a) The proceeds of the tax imposed by section 298.24
which remain after the distributions and payments in subdivisions 2 to 10a, as certified
by the commissioner of revenue, and paragraphs (b), (c), new text begin and new text end (d)deleted text begin , and (e)deleted text end have been
made, together with interest earned on all money distributed under this section prior to
distribution, shall be divided between the taconite environmental protection fund created
in section 298.223 and the Douglas J. Johnson economic protection trust fund created in
section 298.292 as follows: Two-thirds to the taconite environmental protection fund and
one-third to the Douglas J. Johnson economic protection trust fund. The proceeds shall be
placed in the respective special accounts.

(b) There shall be distributed to each city, town, and county the amount that it
received under section 294.26 in calendar year 1977; provided, however, that the amount
distributed in 1981 to the unorganized territory number 2 of Lake County and the town
of Beaver Bay based on the between-terminal trackage of Erie Mining Company will be
distributed in 1982 and subsequent years to the unorganized territory number 2 of Lake
County and the towns of Beaver Bay and Stony River based on the miles of track of Erie
Mining Company in each taxing district.

(c) There shall be distributed to the Iron Range Resources and Rehabilitation Board
the amounts it received in 1977 under section 298.22. The amount distributed under
this paragraph shall be expended within or for the benefit of the taconite assistance area
defined in section 273.1341.

(d) There shall be distributed to each school district 62 percent of the amount that it
received under section 294.26 in calendar year 1977.

deleted text begin (e) In 2003 only, $100,000 must be distributed to a township located in a taconite
tax relief area as defined in section 273.134, paragraph (a), that received $119,259 of
homestead and agricultural credit aid and $182,014 in local government aid in 2001.
 deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 16.

Minnesota Statutes 2008, section 473.843, subdivision 3, is amended to read:


Subd. 3.

Payment of fee.

On or before the 20th day of each month each operator
shall pay the fee due under this section for the previous month, using a form provided
by the commissioner of revenue.

An operator having a fee of deleted text begin $120,000deleted text end new text begin $10,000new text end or more during a fiscal year ending
June 30 must pay all fees in the subsequent calendar year by electronic means.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for payments due in calendar year
2010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30,
2009, and in fiscal years thereafter.
 new text end

Sec. 17. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, sections 287.26; 287.27, subdivision 1; and 298.28,
subdivisions 11a and 13, new text end new text begin are repealed.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

ARTICLE 12

DEPARTMENT PROPERTY TAXES AND AIDS

Section 1.

Minnesota Statutes 2008, section 273.11, subdivision 23, is amended to read:


Subd. 23.

First tier valuation limit; agricultural homestead property.

(a)
deleted text begin Beginning with assessment year 2006,deleted text end The commissioner of revenue shall annually certify
the first tier limit for agricultural homestead property deleted text begin asdeleted text end new text begin . For assessment year 2010, the
limit is $1,110,000. Beginning with assessment year 2011, the limit isnew text end the product of (i)
deleted text begin $600,000deleted text end new text begin the first tier limit for the preceding assessment yearnew text end , and (ii) the ratio of the
statewide average taxable market value of agricultural property per acre of deeded farm
land in the preceding assessment year to the statewide average taxable market value of
agricultural property per acre of deeded farm land for new text begin the second preceding new text end assessment
year deleted text begin 2004deleted text end . The limit shall be rounded to the nearest $10,000.

(b) For the purposes of this subdivision, "agricultural property" means all class
deleted text begin 2deleted text end new text begin 2anew text end property under section 273.13, subdivision 23, except for deleted text begin (1) timberland, (2) a
landing area or public access area of a privately owned public use airport, and (3)deleted text end property
consisting of the house, garage, and immediately surrounding one acre of land of an
agricultural homestead.

(c) The commissioner shall certify the limit by January 2 of each assessment yeardeleted text begin ,
except that for assessment year 2006 the commissioner shall certify the limit by June
1, 2006deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2011 and
thereafter.
 new text end

Sec. 2.

Minnesota Statutes 2008, section 273.111, subdivision 4, is amended to read:


Subd. 4.

Determination of value.

(a) The value of any real estate described
in subdivision 3 shall upon timely application by the owner, in the manner provided
in subdivision 8, be determined solely with reference to its appropriate agricultural
classification and value notwithstanding sections 272.03, subdivision 8, and 273.11.
Furthermore, the assessor shall not consider any added values resulting from
nonagricultural factors. In order to account for the presence of nonagricultural influences
that may affect the value of agricultural land, the commissioner of revenue shall develop a
fair and uniform method of determining agricultural values for each county in the state
that are consistent with this subdivision. The commissioner shall annually assign the
resulting values to each county, and these values shall be used as the basis for determining
the agricultural value for all properties in the county qualifying for tax deferment under
this section.

(b) In the case of property qualifying for tax deferment only under subdivision 3a,
the value shall be based on the value in effect for assessment year 2008, multiplied by
the ratio of the total taxable market value of all property in the county for the new text begin year prior
to the new text end current assessment year divided by the total taxable market value of all property
in the county for assessment year 2008.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2009 and
thereafter.
 new text end

Sec. 3.

Minnesota Statutes 2008, section 273.1115, subdivision 2, is amended to read:


Subd. 2.

Requirement.

Real estate is entitled to valuation under this section only if
all of the following requirements are met:

(1) the property is classified new text begin as class new text end 1a, 1b, 2a, or 2b property under section 273.13,
subdivisions 22 and 23new text begin , or the property is classified as class 2e under section 273.13,
subdivision 23, and immediately before being classified as class 2e was classified as
class 1a or 1bnew text end ;

(2) the property is at least ten contiguous acres, when the application is filed under
subdivision 3;

(3) the owner has filed a completed application for deferment as specified in
subdivision 3 with the county assessor in the county in which the property is located;

(4) there are no delinquent taxes on the property; and

(5) a covenant on the land restricts its use as provided in subdivision 3, clause (4).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
 new text end

Sec. 4.

Minnesota Statutes 2008, section 273.1231, subdivision 8, is amended to read:


Subd. 8.

Utility property.

"Utility property" means property appraised and
classified for tax purposes by new text begin order of new text end the commissioner of revenue under sections 273.33
to 273.3711.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 5.

Minnesota Statutes 2008, section 273.124, subdivision 3, is amended to read:


Subd. 3.

Cooperatives and charitable corporations; homestead and other
property.

(a) When property is owned by a corporation or association organized under
chapter 308A or 308B, and each person who owns a share or shares in the corporation or
association is entitled to occupy a building on the property, or a unit within a building
on the property, the corporation or association may claim homestead treatment for each
dwelling, or for each unit in the case of a building containing several dwelling units, or for
the part of the value of the building occupied by a shareholder. Each building or unit must
be designated by legal description or number. The net tax capacity of each building or
unit that qualifies for assessment as a homestead under this subdivision must include not
more than one-half acre of land, if platted, nor more than 80 acres if unplatted. The net
tax capacity of the property is the sum of the net tax capacities of each of the respective
buildings or units comprising the property, including the net tax capacity of each unit's
or building's proportionate share of the land and any common buildings. To qualify for
the treatment provided by this subdivision, the corporation or association must be wholly
owned by persons having a right to occupy a building or unit owned by the corporation
or association. A charitable corporation organized under the laws of Minnesota and not
otherwise exempt thereunder with no outstanding stock qualifies for homestead treatment
with respect to member residents of the dwelling units who have purchased and hold
residential participation warrants entitling them to occupy the units.

(b) To the extent provided in paragraph (a), a cooperative or corporation organized
under chapter 308Anew text begin or 308Bnew text end may obtain separate assessment and valuation, and separate
property tax statements for each residential homestead, residential nonhomestead, or for
each seasonal residential recreational building or unit not used for commercial purposes.
The appropriate class rates under section 273.13 shall be applicable as if each building or
unit were a separate tax parcel; provided, however, that the tax parcel which exists at the
time the cooperative or corporation makes application under this subdivision shall be a
single parcel for purposes of property taxes or the enforcement and collection thereof,
other than as provided in paragraph (a) or this paragraph.

(c) A member of a corporation or association may initially obtain the separate
assessment and valuation and separate property tax statements, as provided in paragraph
(b), by applying to the assessor by June 30 of the assessment year.

(d) When a building, or dwelling units within a building, no longer qualify under
paragraph (a) or (b), the current owner must notify the assessor within 30 days. Failure to
notify the assessor within 30 days shall result in the loss of benefits under paragraph (a) or
(b) for taxes payable in the year that the failure is discovered. For these purposes, "benefits
under paragraph (a) or (b)" means the difference in the net tax capacity of the building or
units which no longer qualify as computed under paragraph (a) or (b) and as computed
under the otherwise applicable law, times the local tax rate applicable to the building for
that taxes payable year. Upon discovery of a failure to notify, the assessor shall inform the
auditor of the difference in net tax capacity for the building or buildings in which units no
longer qualify, and the auditor shall calculate the benefits under paragraph (a) or (b). Such
amount, plus a penalty equal to 100 percent of that amount, shall then be demanded of the
building's owner. The property owner may appeal the county's determination by serving
copies of a petition for review with county officials as provided in section 278.01 and
filing a proof of service as provided in section 278.01 with the Minnesota Tax Court within
60 days of the date of the notice from the county. The appeal shall be governed by the Tax
Court procedures provided in chapter 271, for cases relating to the tax laws as defined in
section 271.01, subdivision 5; disregarding sections 273.125, subdivision 5, and 278.03,
but including section 278.05, subdivision 2. If the amount of the benefits under paragraph
(a) or (b) and penalty are not paid within 60 days, and if no appeal has been filed, the
county auditor shall certify the amount of the benefit and penalty to the succeeding year's
tax list to be collected as part of the property taxes on the affected property.

Sec. 6.

Minnesota Statutes 2008, section 273.124, subdivision 3a, is amended to read:


Subd. 3a.

Manufactured home park cooperative.

When a manufactured home
park is owned by a corporation or association organized under chapter 308Anew text begin or 308Bnew text end ,
and each person who owns a share or shares in the corporation or association is entitled
to occupy a lot within the park, the corporation or association may claim homestead
treatment for each lot occupied by a shareholder. Each lot must be designated by legal
description or number, and each lot is limited to not more than one-half acre of land for
each homestead. The manufactured home park shall be valued and assessed as if it were
homestead property within class 1 if all of the following criteria are met:

(1) the occupant is using the property as a permanent residence;

(2) the occupant or the cooperative association is paying the ad valorem property
taxes and any special assessments levied against the land and structure either directly, or
indirectly through dues to the corporation; and

(3) the corporation or association organized under chapter 308Anew text begin or 308Bnew text end is wholly
owned by persons having a right to occupy a lot owned by the corporation or association.

A charitable corporation, organized under the laws of Minnesota with no outstanding
stock, and granted a ruling by the Internal Revenue Service for 501(c)(3) tax-exempt
status, qualifies for homestead treatment with respect to member residents of the
manufactured home park who hold residential participation warrants entitling them to
occupy a lot in the manufactured home park.

Sec. 7.

Minnesota Statutes 2008, section 273.124, subdivision 13, is amended to read:


Subd. 13.

Homestead application.

(a) A person who meets the homestead
requirements under subdivision 1 must file a homestead application with the county
assessor to initially obtain homestead classification.

(b) The format and contents of a uniform homestead application shall be prescribed
by the commissioner of revenue. The application must clearly inform the taxpayer that
this application must be signed by all owners who occupy the property or by the qualifying
relative and returned to the county assessor in order for the property to receive homestead
treatment.

(c) Every property owner applying for homestead classification must furnish to the
county assessor the Social Security number of each occupant who is listed as an owner
of the property on the deed of record, the name and address of each owner who does not
occupy the property, and the name and Social Security number of each owner's spouse who
occupies the property. The application must be signed by each owner who occupies the
property and by each owner's spouse who occupies the propertydeleted text begin , or, in the case of property
that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relativedeleted text end .

If a property owner occupies a homestead, the property owner's spouse may not
claim another property as a homestead unless the property owner and the property owner's
spouse file with the assessor an affidavit or other proof required by the assessor stating that
the property qualifies as a homestead under subdivision 1, paragraph (e).

Owners or spouses occupying residences owned by their spouses and previously
occupied with the other spouse, either of whom fail to include the other spouse's name
and Social Security number on the homestead application or provide the affidavits or
other proof requested, will be deemed to have elected to receive only partial homestead
treatment of their residence. The remainder of the residence will be classified as
nonhomestead residential. When an owner or spouse's name and Social Security number
appear on homestead applications for two separate residences and only one application is
signed, the owner or spouse will be deemed to have elected to homestead the residence for
which the application was signed.

The Social Security numbers, state or federal tax returns or tax return information,
including the federal income tax schedule F required by this section, or affidavits or other
proofs of the property owners and spouses submitted under this or another section to
support a claim for a property tax homestead classification are private data on individuals
as defined by section 13.02, subdivision 12, but, notwithstanding that section, the private
data may be disclosed to the commissioner of revenue, or, for purposes of proceeding
under the Revenue Recapture Act to recover personal property taxes owing, to the county
treasurer.

(d) If residential real estate is occupied and used for purposes of a homestead by
a relative of the owner and qualifies for a homestead under subdivision 1, paragraph
(c)new text begin or (d)new text end , in order for the property to receive homestead status, a homestead application
must be filed with the assessor. new text begin The application must be signed by each relative of an
owner who occupies the property and by each relative's spouse who also occupies the
property. new text end The Social Security number of each relative and spouse of a relative occupying
the property shall be required on the homestead application filed under this subdivision.
If a different relative of the owner subsequently occupies the property, the owner of the
property must notify the assessor within 30 days of the change in occupancy. The Social
Security number of a relative or relative's spouse occupying the property is private data
on individuals as defined by section 13.02, subdivision 12, but may be disclosed to the
commissioner of revenue, or, for the purposes of proceeding under the Revenue Recapture
Act to recover personal property taxes owing, to the county treasurer.

(e) The homestead application shall also notify the property owners that the
application filed under this section will not be mailed annually and that if the property
is granted homestead status for any assessment year, that same property shall remain
classified as homestead until the property is sold or transferred to another person, or
the owners, the spouse of the owner, or the relatives no longer use the property as their
homestead. Upon the sale or transfer of the homestead property, a certificate of value must
be timely filed with the county auditor as provided under section 272.115. Failure to
notify the assessor within 30 days that the property has been sold, transferred, or that the
owner, the spouse of the owner, or the relative is no longer occupying the property as a
homestead, shall result in the penalty provided under this subdivision and the property
will lose its current homestead status.

(f) If the homestead application is not returned within 30 days, the county will send a
second application to the present owners of record. The notice of proposed property taxes
prepared under section 275.065, subdivision 3, shall reflect the property's classification. If
a homestead application has not been filed with the county by December 15, the assessor
shall classify the property as nonhomestead for the current assessment year for taxes
payable in the following year, provided that the owner may be entitled to receive the
homestead classification by proper application under section 375.192.

(g) At the request of the commissioner, each county must give the commissioner a
list that includes the name and Social Security number of each occupant of homestead
property who is the property owner, property owner's spouse, qualifying relative of a
property owner, or a spouse of a qualifying relative. The commissioner shall use the
information provided on the lists as appropriate under the law, including for the detection
of improper claims by owners, or relatives of owners, under chapter 290A.

(h) If the commissioner finds that a property owner may be claiming a fraudulent
homestead, the commissioner shall notify the appropriate counties. Within 90 days of
the notification, the county assessor shall investigate to determine if the homestead
classification was properly claimed. If the property owner does not qualify, the county
assessor shall notify the county auditor who will determine the amount of homestead
benefits that had been improperly allowed. For the purpose of this section, "homestead
benefits" means the tax reduction resulting from the classification as a homestead under
section 273.13, the taconite homestead credit under section 273.135, the residential
homestead and agricultural homestead credits under section 273.1384, and the
supplemental homestead credit under section 273.1391.

The county auditor shall send a notice to the person who owned the affected property
at the time the homestead application related to the improper homestead was filed,
demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent
of the homestead benefits. The person notified may appeal the county's determination
by serving copies of a petition for review with county officials as provided in section
278.01 and filing proof of service as provided in section 278.01 with the Minnesota Tax
Court within 60 days of the date of the notice from the county. Procedurally, the appeal
is governed by the provisions in chapter 271 which apply to the appeal of a property tax
assessment or levy, but without requiring any prepayment of the amount in controversy. If
the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal
has been filed, the county auditor shall certify the amount of taxes and penalty to the county
treasurer. The county treasurer will add interest to the unpaid homestead benefits and
penalty amounts at the rate provided in section 279.03 for real property taxes becoming
delinquent in the calendar year during which the amount remains unpaid. Interest may be
assessed for the period beginning 60 days after demand for payment was made.

If the person notified is the current owner of the property, the treasurer may add the
total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes
otherwise payable on the property by including the amounts on the property tax statements
under section 276.04, subdivision 3. The amounts added under this paragraph to the ad
valorem taxes shall include interest accrued through December 31 of the year preceding
the taxes payable year for which the amounts are first added. These amounts, when added
to the property tax statement, become subject to all the laws for the enforcement of real or
personal property taxes for that year, and for any subsequent year.

If the person notified is not the current owner of the property, the treasurer may
collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of
the powers granted in sections 277.20 and 277.21 without exclusion, to enforce payment
of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent
tax obligations of the person who owned the property at the time the application related
to the improperly allowed homestead was filed. The treasurer may relieve a prior owner
of personal liability for the homestead benefits, penalty, interest, and costs, and instead
extend those amounts on the tax lists against the property as provided in this paragraph
to the extent that the current owner agrees in writing. On all demands, billings, property
tax statements, and related correspondence, the county must list and state separately the
amounts of homestead benefits, penalty, interest and costs being demanded, billed or
assessed.

(i) Any amount of homestead benefits recovered by the county from the property
owner shall be distributed to the county, city or town, and school district where the
property is located in the same proportion that each taxing district's levy was to the total
of the three taxing districts' levy for the current year. Any amount recovered attributable
to taconite homestead credit shall be transmitted to the St. Louis County auditor to be
deposited in the taconite property tax relief account. Any amount recovered that is
attributable to supplemental homestead credit is to be transmitted to the commissioner of
revenue for deposit in the general fund of the state treasury. The total amount of penalty
collected must be deposited in the county general fund.

(j) If a property owner has applied for more than one homestead and the county
assessors cannot determine which property should be classified as homestead, the county
assessors will refer the information to the commissioner. The commissioner shall make
the determination and notify the counties within 60 days.

(k) In addition to lists of homestead properties, the commissioner may ask the
counties to furnish lists of all properties and the record owners. The Social Security
numbers and federal identification numbers that are maintained by a county or city
assessor for property tax administration purposes, and that may appear on the lists retain
their classification as private or nonpublic data; but may be viewed, accessed, and used by
the county auditor or treasurer of the same county for the limited purpose of assisting the
commissioner in the preparation of microdata samples under section 270C.12.

(l) On or before April 30 each year beginning in 2007, each county must provide the
commissioner with the following data for each parcel of homestead property by electronic
means as defined in section 289A.02, subdivision 8:

(i) the property identification number assigned to the parcel for purposes of taxes
payable in the current year;

(ii) the name and Social Security number of each occupant of homestead property
who is the property owner, property owner's spouse, qualifying relative of a property
owner, or spouse of a qualifying relative;

(iii) the classification of the property under section 273.13 for taxes payable in the
current year and in the prior year;

(iv) an indication of whether the property was classified as a homestead for taxes
payable in the current year because of occupancy by a relative of the owner or by a
spouse of a relative;

(v) the property taxes payable as defined in section 290A.03, subdivision 13, for the
current year and the prior year;

(vi) the market value of improvements to the property first assessed for tax purposes
for taxes payable in the current year;

(vii) the assessor's estimated market value assigned to the property for taxes payable
in the current year and the prior year;

(viii) the taxable market value assigned to the property for taxes payable in the
current year and the prior year;

(ix) whether there are delinquent property taxes owing on the homestead;

(x) the unique taxing district in which the property is located; and

(xi) such other information as the commissioner decides is necessary.

The commissioner shall use the information provided on the lists as appropriate
under the law, including for the detection of improper claims by owners, or relatives
of owners, under chapter 290A.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications received after June
30, 2009.
 new text end

Sec. 8.

Minnesota Statutes 2008, section 273.124, subdivision 21, is amended to read:


Subd. 21.

Trust property; homestead.

Real new text begin or personal new text end property held by a trustee
under a trust is eligible for classification as homestead property ifdeleted text begin :deleted text end new text begin the property satisfies
the requirements of paragraph (a), (b), (c), or (d).
new text end

deleted text begin (1)deleted text end new text begin (a)new text end The grantor or surviving spouse of the grantor of the trust occupies and
uses the property as a homesteaddeleted text begin ;deleted text end new text begin .
new text end

deleted text begin (2)deleted text end new text begin (b)new text end A relative or surviving relative of the grantor who meets the requirements
of subdivision 1, paragraph (c), in the case of residential real estate; or subdivision 1,
paragraph (d), in the case of agricultural property, occupies and uses the property as
a homesteaddeleted text begin ;deleted text end new text begin .
new text end

deleted text begin (3)deleted text end new text begin (c)new text end A family farm corporation, joint farm venture, limited liability company, or
partnership operating a family farm in which the grantor or the grantor's surviving spouse
is a shareholder, member, or partner rents the propertydeleted text begin ,deleted text end new text begin ;new text end andnew text begin , either (1)new text end a shareholder,
member, or partner of the corporation, joint farm venture, limited liability company, or
partnership occupies and uses the property as a homesteaddeleted text begin ,deleted text end new text begin ;new text end or deleted text begin is actively farmingdeleted text end new text begin (2) the
property isnew text end at least 40 acres, including undivided government lots and correctional 40'snew text begin , and
a shareholder, member, or partner of the tenant-entity is actively farmingnew text end the property on
behalf of the corporation, joint farm venture, limited liability company, or partnershipdeleted text begin ; ordeleted text end new text begin .
new text end

deleted text begin (4)deleted text end new text begin (d)new text end A person who has received homestead classification for property taxes
payable in 2000 on the basis of an unqualified legal right under the terms of the trust
agreement to occupy the property as that person's homestead and who continues to use the
property as a homesteadnew text begin ;new text end ornew text begin ,new text end a person who received the homestead classification for taxes
payable in 2005 under deleted text begin clause (3)deleted text end new text begin paragraph (c) new text end who does not qualify under deleted text begin clause (3)deleted text end
new text begin paragraph (c) new text end for taxes payable in 2006 or thereafter but who continues to qualify under
deleted text begin clause (3)deleted text end new text begin paragraph (c) new text end as it existed for taxes payable in 2005.

For purposes of this subdivision, "grantor" is defined as the person creating or
establishing a testamentary, inter Vivos, revocable or irrevocable trust by written
instrument or through the exercise of a power of appointment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 9.

Minnesota Statutes 2008, section 273.13, subdivision 23, is amended to read:


Subd. 23.

Class 2.

(a) An agricultural homestead consists of class 2a agricultural
land that is homesteaded, along with any class 2b rural vacant land that is contiguous to
the class 2a land under the same ownership. The market value of the house and garage
and immediately surrounding one acre of land has the same class rates as class 1a or 1b
property under subdivision 22. The value of the remaining land including improvements
up to the first tier valuation limit of agricultural homestead property has a net class rate
of 0.5 percent of market value. The remaining property over the first tier has a class rate
of one percent of market value. For purposes of this subdivision, the "first tier valuation
limit of agricultural homestead property" and "first tier" means the limit certified under
section 273.11, subdivision 23.

(b) Class 2a agricultural land consists of parcels of property, or portions thereof, that
are agricultural land and buildings. Class 2a property has a net class rate of one percent of
market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a
property may contain property that would otherwise be classified as 2b, including but not
limited to sloughs, wooded wind shelters, acreage abutting ditches, and other similar land
impractical for the assessor to value separately from the rest of the property.

An assessor may classify the part of a parcel described in this subdivision that is used
for agricultural purposes as class 2a and the remainder in the class appropriate to its use.

(c) Class 2b rural vacant land consists of parcels of property, or portions thereof,
that are unplatted real estate, rural in character and not used for agricultural purposes,
including land used for growing trees for timber, lumber, and wood and wood products,
that is not improved with a structure. The presence of a minor, ancillary nonresidential
structure as defined by the commissioner of revenue does not disqualify the property from
classification under this paragraph. Any parcel of 20 acres or more improved with a
structure that is not a minor, ancillary nonresidential structure must be split-classified, and
ten acres must be assigned to the split parcel containing the structure. Class 2b property
has a net class rate of one percent of market value unless it is part of an agricultural
homestead under paragraph (a), or qualifies as class 2c under paragraph (d).

(d) Class 2c managed forest land consists of no less than 20 and no more than 1,920
acres statewide per taxpayer that is being managed under a forest management plan that
meets the requirements of chapter 290C, but is not enrolled in the sustainable forest
resource management incentive program. It has a class rate of .65 percent, provided
that the owner of the property must apply to the assessor deleted text begin to receive the reduced classdeleted text end new text begin in
order for the property to initially qualify for the reducednew text end rate and provide the information
required by the assessor to verify that the property qualifies for the reduced rate.new text begin If the
assessor receives the application and information before May 1 in an assessment year,
the property qualifies beginning with that assessment year. If the assessor receives the
application and information after April 30 in an assessment year, the property qualifies
beginning with the next assessment year.new text end The commissioner of natural resources must
concur that the land is qualified. The commissioner of natural resources shall annually
provide county assessors verification information on a timely basis.new text begin The presence of a
minor, ancillary nonresidential structure as defined by the commissioner of revenue does
not disqualify the property from classification under this paragraph.
new text end

(e) Agricultural land as used in this section means contiguous acreage of ten
acres or more, used during the preceding year for agricultural purposes. "Agricultural
purposes" as used in this section means the raising, cultivation, drying, or storage of
agricultural products for sale, or the storage of machinery or equipment used in support
of agricultural production by the same farm entity. For a property to be classified as
agricultural based only on the drying or storage of agricultural products, the products
being dried or stored must have been produced by the same farm entity as the entity
operating the drying or storage facility. "Agricultural purposes" also includes enrollment
in the Reinvest in Minnesota program under sections 103F.501 to 103F.535 or the federal
Conservation Reserve Program as contained in Public Law 99-198 or a similar state
or federal conservation program if the property was classified as agricultural (i) under
this subdivision for the assessment year 2002 or (ii) in the year prior to its enrollment.
Agricultural classification shall not be based upon the market value of any residential
structures on the parcel or contiguous parcels under the same ownership.

(f) Real estate of less than ten acres, which is exclusively or intensively used for
raising or cultivating agricultural products, shall be considered as agricultural land. To
qualify under this paragraph, property that includes a residential structure must be used
intensively for one of the following purposes:

(i) for drying or storage of grain or storage of machinery or equipment used to
support agricultural activities on other parcels of property operated by the same farming
entity;

(ii) as a nursery, provided that only those acres used to produce nursery stock are
considered agricultural land;

(iii) for livestock or poultry confinement, provided that land that is used only for
pasturing and grazing does not qualify; or

(iv) for market farming; for purposes of this paragraph, "market farming" means the
cultivation of one or more fruits or vegetables or production of animal or other agricultural
products for sale to local markets by the farmer or an organization with which the farmer
is affiliated.

(g) Land shall be classified as agricultural even if all or a portion of the agricultural
use of that property is the leasing to, or use by another person for agricultural purposes.

Classification under this subdivision is not determinative for qualifying under
section 273.111.

(h) The property classification under this section supersedes, for property tax
purposes only, any locally administered agricultural policies or land use restrictions that
define minimum or maximum farm acreage.

(i) The term "agricultural products" as used in this subdivision includes production
for sale of:

(1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing
animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains,
bees, and apiary products by the owner;

(2) fish bred for sale and consumption if the fish breeding occurs on land zoned
for agricultural use;

(3) the commercial boarding of horses if the boarding is done in conjunction with
raising or cultivating agricultural products as defined in clause (1);

(4) property which is owned and operated by nonprofit organizations used for
equestrian activities, excluding racing;

(5) game birds and waterfowl bred and raised for use on a shooting preserve licensed
under section 97A.115;

(6) insects primarily bred to be used as food for animals;

(7) trees, grown for sale as a crop, including short rotation woody crops, and not
sold for timber, lumber, wood, or wood products; and

(8) maple syrup taken from trees grown by a person licensed by the Minnesota
Department of Agriculture under chapter 28A as a food processor.

(j) If a parcel used for agricultural purposes is also used for commercial or industrial
purposes, including but not limited to:

(1) wholesale and retail sales;

(2) processing of raw agricultural products or other goods;

(3) warehousing or storage of processed goods; and

(4) office facilities for the support of the activities enumerated in clauses (1), (2),
and (3),

the assessor shall classify the part of the parcel used for agricultural purposes as class
1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its
use. The grading, sorting, and packaging of raw agricultural products for first sale is
considered an agricultural purpose. A greenhouse or other building where horticultural
or nursery products are grown that is also used for the conduct of retail sales must be
classified as agricultural if it is primarily used for the growing of horticultural or nursery
products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of
those products. Use of a greenhouse or building only for the display of already grown
horticultural or nursery products does not qualify as an agricultural purpose.

new text begin (k) new text end The assessor shall determine and list separately on the records the market value
of the homestead dwelling and the one acre of land on which that dwelling is located. If
any farm buildings or structures are located on this homesteaded acre of land, their market
value shall not be included in this separate determination.

deleted text begin (k)deleted text end new text begin (l)new text end Class 2d airport landing area consists of a landing area or public access area
of a privately owned public use airport. It has a class rate of one percent of market value.
To qualify for classification under this paragraph, a privately owned public use airport
must be licensed as a public airport under section 360.018. For purposes of this paragraph,
"landing area" means that part of a privately owned public use airport properly cleared,
regularly maintained, and made available to the public for use by aircraft and includes
runways, taxiways, aprons, and sites upon which are situated landing or navigational aids.
A landing area also includes land underlying both the primary surface and the approach
surfaces that comply with all of the following:

(i) the land is properly cleared and regularly maintained for the primary purposes of
the landing, taking off, and taxiing of aircraft; but that portion of the land that contains
facilities for servicing, repair, or maintenance of aircraft is not included as a landing area;

(ii) the land is part of the airport property; and

(iii) the land is not used for commercial or residential purposes.

The land contained in a landing area under this paragraph must be described and certified
by the commissioner of transportation. The certification is effective until it is modified,
or until the airport or landing area no longer meets the requirements of this paragraph.
For purposes of this paragraph, "public access area" means property used as an aircraft
parking ramp, apron, or storage hangar, or an arrival and departure building in connection
with the airport.

deleted text begin (l)deleted text end new text begin (m)new text end Class 2e consists of land with a commercial aggregate deposit that is not
actively being mined and is not otherwise classified as class 2a or 2b. It has a class rate of
one percent of market value. To qualify for classification under this paragraph, the property
must be at least ten contiguous acres in size and the owner of the property must record with
the county recorder of the county in which the property is located an affidavit containing:

(1) a legal description of the property;

(2) a disclosure that the property contains a commercial aggregate deposit that is not
actively being mined but is present on the entire parcel enrolled;

(3) documentation that the conditional use under the county or local zoning
ordinance of this property is for mining; and

(4) documentation that a permit has been issued by the local unit of government
or the mining activity is allowed under local ordinance. The disclosure must include a
statement from a registered professional geologist, engineer, or soil scientist delineating
the deposit and certifying that it is a commercial aggregate deposit.

For purposes of this section and section 273.1115, "commercial aggregate deposit"
means a deposit that will yield crushed stone or sand and gravel that is suitable for use
as a construction aggregate; and "actively mined" means the removal of top soil and
overburden in preparation for excavation or excavation of a commercial deposit.

deleted text begin (m)deleted text end new text begin (n)new text end When any portion of the property under this subdivision or subdivision 22
begins to be actively mined, the owner must file a supplemental affidavit within 60 days
from the day any aggregate is removed stating the number of acres of the property that is
actively being mined. The acres actively being mined must be (1) valued and classified
under subdivision 24 in the next subsequent assessment year, and (2) removed from the
aggregate resource preservation property tax program under section 273.1115, if the
land was enrolled in that program. Copies of the original affidavit and all supplemental
affidavits must be filed with the county assessor, the local zoning administrator, and the
Department of Natural Resources, Division of Land and Minerals. A supplemental
affidavit must be filed each time a subsequent portion of the property is actively mined,
provided that the minimum acreage change is five acres, even if the actual mining activity
constitutes less than five acres.

new text begin (o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are
not rules, are exempt from the rulemaking provisions of chapter 14, and the provisions
in section 14.386 concerning exempt rules do not apply.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin The section is effective the day following final enactment.
 new text end

Sec. 10.

Minnesota Statutes 2008, section 273.13, subdivision 25, is amended to read:


Subd. 25.

Class 4.

(a) Class 4a is residential real estate containing four or more
units and used or held for use by the owner or by the tenants or lessees of the owner
as a residence for rental periods of 30 days or more, excluding property qualifying for
class 4d. Class 4a also includes hospitals licensed under sections 144.50 to 144.56, other
than hospitals exempt under section 272.02, and contiguous property used for hospital
purposes, without regard to whether the property has been platted or subdivided. The
market value of class 4a property has a class rate of 1.25 percent.

(b) Class 4b includes:

(1) residential real estate containing less than four units that does not qualify as class
4bb, other than seasonal residential recreational property;

(2) manufactured homes not classified under any other provision;

(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead
farm classified under subdivision 23, paragraph (b) containing two or three units; and

(4) unimproved property that is classified residential as determined under subdivision
33.

The market value of class 4b property has a class rate of 1.25 percent.

(c) Class 4bb includes:

(1) nonhomestead residential real estate containing one unit, other than seasonal
residential recreational property; and

(2) a single family dwelling, garage, and surrounding one acre of property on a
nonhomestead farm classified under subdivision 23, paragraph (b).

Class 4bb property has the same class rates as class 1a property under subdivision 22.

Property that has been classified as seasonal residential recreational property at
any time during which it has been owned by the current owner or spouse of the current
owner does not qualify for class 4bb.

(d) Class 4c property includes:

(1) except as provided in subdivision 22, paragraph (c), deleted text begin or subdivision 23, paragraph
(b), clause (1),deleted text end real and personal property devoted to temporary and seasonal residential
occupancy for recreation purposes, including real and personal property devoted to
temporary and seasonal residential occupancy for recreation purposes and not devoted to
commercial purposes for more than 250 days in the year preceding the year of assessment.
For purposes of this clause, property is devoted to a commercial purpose on a specific
day if any portion of the property is used for residential occupancy, and a fee is charged
for residential occupancy. Class 4c property new text begin under this clause new text end must contain three or
more rental units. A "rental unit" is defined as a cabin, condominium, townhouse,
sleeping room, or individual camping site equipped with water and electrical hookups
for recreational vehicles. Class 4c property new text begin under this clause new text end must provide recreational
activities such as renting ice fishing houses, boats and motors, snowmobiles, downhill or
cross-country ski equipment; provide marina services, launch services, or guide services;
or sell bait and fishing tackle. A camping pad offered for rent by a property that otherwise
qualifies for class 4c new text begin under this clause new text end is also class 4c new text begin under this clause new text end regardless of the
term of the rental agreement, as long as the use of the camping pad does not exceed 250
days. In order for a property to be classified as class 4c, seasonal residential recreational
for commercial purposes under this clause, at least 40 percent of the annual gross lodging
receipts related to the property must be from business conducted during 90 consecutive
days and either (i) at least 60 percent of all paid bookings by lodging guests during the
year must be for periods of at least two consecutive nights; or (ii) at least 20 percent
of the annual gross receipts must be from charges for rental of fish houses, boats and
motors, snowmobiles, downhill or cross-country ski equipment, or charges for marina
services, launch services, and guide services, or the sale of bait and fishing tackle. For
purposes of this determination, a paid booking of five or more nights shall be counted as
two bookings. Class 4c new text begin property classified under this clause new text end also includes commercial
use real property used exclusively for recreational purposes in conjunction with new text begin other
new text end class 4c property new text begin classified under this clause and new text end devoted to temporary and seasonal
residential occupancy for recreational purposes, up to a total of two acres, provided the
property is not devoted to commercial recreational use for more than 250 days in the year
preceding the year of assessment and is located within two miles of the class 4c property
with which it is used. Owners of real and personal property devoted to temporary and
seasonal residential occupancy for recreation purposes and all or a portion of which was
devoted to commercial purposes for not more than 250 days in the year preceding the
year of assessment desiring classification as class 4c, must submit a declaration to the
assessor designating the cabins or units occupied for 250 days or less in the year preceding
the year of assessment by January 15 of the assessment year. Those cabins or units and
a proportionate share of the land on which they are located must be designated class
4cnew text begin under this clause new text end as otherwise provided. The remainder of the cabins or units and a
proportionate share of the land on which they are located will be designated as class 3a.
The owner of property desiring designation as class 4c property new text begin under this clause new text end must
provide guest registers or other records demonstrating that the units for which class 4c
designation is sought were not occupied for more than 250 days in the year preceding the
assessment if so requested. The portion of a property operated as a (1) restaurant, (2) bar,
(3) gift shop, (4) conference center or meeting room, and (5) other nonresidential facility
operated on a commercial basis not directly related to temporary and seasonal residential
occupancy for recreation purposes does not qualify for class 4c;

(2) qualified property used as a golf course if:

(i) it is open to the public on a daily fee basis. It may charge membership fees or
dues, but a membership fee may not be required in order to use the property for golfing,
and its green fees for golfing must be comparable to green fees typically charged by
municipal courses; and

(ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).

A structure used as a clubhouse, restaurant, or place of refreshment in conjunction
with the golf course is classified as class 3a property;

(3) real property up to a maximum of three acres of land owned and used by a
nonprofit community service oriented organization and deleted text begin that isdeleted text end not used for residential
purposes on either a temporary or permanent basis, deleted text begin qualifies for class 4cdeleted text end provided that
deleted text begin it meets either of the followingdeleted text end :

(i) the property is not used for a revenue-producing activity for more than six days
in the calendar year preceding the year of assessment; or

(ii) the organization makes annual charitable contributions and donations at least
equal to the property's previous year's property taxes and the property is allowed to be
used for public and community meetings or events for no charge, as appropriate to the
size of the facility.

For purposes of this clause,

(A) "charitable contributions and donations" has the same meaning as lawful
gambling purposes under section 349.12, subdivision 25, excluding those purposes
relating to the payment of taxes, assessments, fees, auditing costs, and utility payments;

(B) "property taxes" excludes the state general tax;

(C) a "nonprofit community service oriented organization" means any corporation,
society, association, foundation, or institution organized and operated exclusively for
charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
federal income taxation pursuant to section 501(c)(3), new text begin (8), new text end (10), or (19) of the Internal
Revenue Code; and

(D) "revenue-producing activities" shall include but not be limited to property or that
portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
insurance business, or office or other space leased or rented to a lessee who conducts a
for-profit enterprise on the premises.

Any portion of the property new text begin not new text end qualifying under new text begin either new text end item (i) deleted text begin which is used for
revenue-producing activities for more than six days in the calendar year preceding the
year of assessment shall be assessed asdeleted text end new text begin or (ii) isnew text end class 3a. The use of the property for social
events open exclusively to members and their guests for periods of less than 24 hours,
when an admission is not charged nor any revenues are received by the organization shall
not be considered a revenue-producing activity.

The organization shall maintain records of its charitable contributions and donations
and of public meetings and events held on the property and make them available upon
request any time to the assessor to ensure eligibility. An organization meeting the
requirement under item (ii) must file an application by May 1 with the assessor for
eligibility for the current year's assessment. The commissioner shall prescribe a uniform
application form and instructions;

(4) postsecondary student housing of not more than one acre of land that is owned by
a nonprofit corporation organized under chapter 317A and is used exclusively by a student
cooperative, sorority, or fraternity for on-campus housing or housing located within two
miles of the border of a college campus;

(5) manufactured home parks as defined in section 327.14, subdivision 3;

(6) real property that is actively and exclusively devoted to indoor fitness, health,
social, recreational, and related uses, is owned and operated by a not-for-profit corporation,
and is located within the metropolitan area as defined in section 473.121, subdivision 2;

(7) a leased or privately owned noncommercial aircraft storage hangar not exempt
under section 272.01, subdivision 2, and the land on which it is located, provided that:

(i) the land is on an airport owned or operated by a city, town, county, Metropolitan
Airports Commission, or group thereof; and

(ii) the land lease, or any ordinance or signed agreement restricting the use of the
leased premise, prohibits commercial activity performed at the hangar.

If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must
be filed by the new owner with the assessor of the county where the property is located
within 60 days of the sale;

(8) a privately owned noncommercial aircraft storage hangar not exempt under
section 272.01, subdivision 2, and the land on which it is located, provided that:

(i) the land abuts a public airport; and

(ii) the owner of the aircraft storage hangar provides the assessor with a signed
agreement restricting the use of the premises, prohibiting commercial use or activity
performed at the hangar; and

(9) residential real estate, a portion of which is used by the owner for homestead
purposes, and that is also a place of lodging, if all of the following criteria are met:

(i) rooms are provided for rent to transient guests that generally stay for periods
of 14 or fewer days;

(ii) meals are provided to persons who rent rooms, the cost of which is incorporated
in the basic room rate;

(iii) meals are not provided to the general public except for special events on fewer
than seven days in the calendar year preceding the year of the assessment; and

(iv) the owner is the operator of the property.

The market value subject to the 4c classification under this clause is limited to five rental
units. Any rental units on the property in excess of five, must be valued and assessed as
class 3a. The portion of the property used for purposes of a homestead by the owner must
be classified as class 1a property under subdivision 22; and

(10) real property up to a maximum of three acres and operated as a restaurant
as defined under section 157.15, subdivision 12, provided it: (A) is located on a lake
as defined under section 103G.005, subdivision 15, paragraph (a), clause (3); and (B)
is either devoted to commercial purposes for not more than 250 consecutive days, or
receives at least 60 percent of its annual gross receipts from business conducted during
four consecutive months. Gross receipts from the sale of alcoholic beverages must be
included in determining the property's qualification under subitem (B). The property's
primary business must be as a restaurant and not as a bar. Gross receipts from gift shop
sales located on the premises must be excluded. Owners of real property desiring 4c
classification under this clause must submit an annual declaration to the assessor by
February 1 of the current assessment year, based on the property's relevant information for
the preceding assessment year.

Class 4c property has a class rate of 1.5 percent of market value, except that (i) each
parcel of seasonal residential recreational property not used for commercial purposes has
the same class rates as class 4bb property, (ii) manufactured home parks assessed under
clause (5) have the same class rate as class 4b property, (iii) commercial-use seasonal
residential recreational property has a class rate of one percent for the first $500,000 of
market value, and 1.25 percent for the remaining market value, (iv) the market value of
property described in clause (4) has a class rate of one percent, (v) the market value of
property described in clauses (2), (6), and (10) has a class rate of 1.25 percent, and (vi)
that portion of the market value of property in clause (9) qualifying for class 4c property
has a class rate of 1.25 percent.

(e) Class 4d property is qualifying low-income rental housing certified to the assessor
by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion
of the units in the building qualify as low-income rental housing units as certified under
section 273.128, subdivision 3, only the proportion of qualifying units to the total number
of units in the building qualify for class 4d. The remaining portion of the building shall be
classified by the assessor based upon its use. Class 4d also includes the same proportion of
land as the qualifying low-income rental housing units are to the total units in the building.
For all properties qualifying as class 4d, the market value determined by the assessor must
be based on the normal approach to value using normal unrestricted rents.

Class 4d property has a class rate of 0.75 percent.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 11.

Minnesota Statutes 2008, section 273.13, subdivision 33, is amended to read:


Subd. 33.

Classification of unimproved property.

(a) All real property that is not
improved with a structure must be classified according to its current use.

(b) Except as provided in subdivision 23, paragraph (c)new text begin or (d)new text end , real property that is
not improved with a structure and for which there is no identifiable current use must be
classified according to its highest and best use permitted under the local zoning ordinance.
If the ordinance permits more than one use, the land must be classified according to the
highest and best use permitted under the ordinance. If no such ordinance exists, the
assessor shall consider the most likely potential use of the unimproved land based upon
the use made of surrounding land or land in proximity to the unimproved land.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 12.

Minnesota Statutes 2008, section 273.33, subdivision 2, is amended to read:


Subd. 2.

Listing and assessment by commissioner.

The personal property,
consisting of the pipeline system of mains, pipes, and equipment attached thereto, of
pipeline companies and others engaged in the operations or business of transporting natural
gas, gasoline, crude oil, or other petroleum products by pipelines, shall be listed with and
assessed by the commissioner of revenue and the values provided to the city or county
assessor by order. This subdivision shall not apply to the assessment of the products
transported through the pipelines nor to the lines of local commercial gas companies
engaged primarily in the business of distributing gas to consumers at retail nor to pipelines
used by the owner thereof to supply natural gas or other petroleum products exclusively
for such owner's own consumption and not for resale to others. If more than 85 percent
of the natural gas or other petroleum products actually transported over the pipeline is
used for the owner's own consumption and not for resale to others, then this subdivision
shall not apply; provided, however, that in that event, the pipeline shall be assessed in
proportion to the percentage of gas actually transported over such pipeline that is not used
for the owner's own consumption. On or before deleted text begin June 30deleted text end new text begin August 1new text end , the commissioner shall
certify to the auditor of each county, the amount of such personal property assessment
against each company in each district in which such property is located.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2009 and
thereafter.
 new text end

Sec. 13.

Minnesota Statutes 2008, section 273.37, subdivision 2, is amended to read:


Subd. 2.

Listing and assessment by commissioner.

Transmission lines of less
than 69 kv, transmission lines of 69 kv and above located in an unorganized township,
and distribution lines, and equipment attached thereto, having a fixed situs outside the
corporate limits of cities except distribution lines taxed as provided in sections 273.40 and
273.41, shall be listed with and assessed by the commissioner of revenue in the county
where situated and the values provided to the city or county assessor by order. The
commissioner shall assess such property at the percentage of market value fixed by law;
and, on or before deleted text begin June 30deleted text end new text begin August 1new text end , shall certify to the auditor of each county in which
such property is located the amount of the assessment made against each company and
person owning such property.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2009 and
thereafter.
 new text end

Sec. 14.

Minnesota Statutes 2008, section 274.13, subdivision 2, is amended to read:


Subd. 2.

Special board; delegated duties.

The board of equalization for any
county may appoint a special board of equalization and may delegate to it the powers and
duties in subdivision 1. The special board of equalization shall serve at the direction and
discretion of the appointing county board, subject to the restrictions imposed by law on
the appointing board. The appointing board may determine the number of members to be
appointed to the special board, the compensation and expenses to be paid, and the term of
office of each member. At least one member of the special board of equalization must be
an appraiser, realtor, or other person familiar with property valuations in the county. The
county auditor is a nonvoting member and serves as the recorder for the special board.new text begin
The special board is subject to the quorum requirements for county boards and the training
requirements for county boards in section 274.135, subdivision 2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin The section is effective the day following final enactment.
 new text end

Sec. 15.

Minnesota Statutes 2008, section 274.135, subdivision 3, is amended to read:


Subd. 3.

Proof of compliance; transfer of duties.

(a) Any county that
conducts county boards of appeal and equalization meetings must provide proof to the
commissioner by December 1, 2009, and each year thereafter, that it is in compliance
with the requirements of subdivision 2. Beginning in 2009, this notice must also verify
that there was a quorum of voting members at each meeting of the board of appeal and
equalization in the current year. A county that does not comply with these requirements
is deemed to have transferred its board of appeal and equalization powers to the special
board of equalization appointed pursuant to section 274.13, subdivision 2, beginning
with the following year's assessment and continuing unless the powers are reinstated
under paragraph (c). A county that does not comply with the requirements of subdivision
2 and has not appointed a special board of equalization shall appoint a special board of
equalization before the following year's assessment.

(b) The county shall notify the taxpayers when the board of appeal and equalization
for a county has been transferred to the special board of equalization under this subdivision
and, prior to the meeting time of the special board of equalization, the county shall make
available to those taxpayers a procedure for a review of the assessments, including, but
not limited to, open book meetings. This alternate review process must take place in
April and May.

(c) A county board whose powers are transferred to the special board of equalization
under this subdivision may be reinstated by resolution of the county board and upon proof
of compliance with the requirements of subdivision 2. The resolution and proofs must be
provided to the commissioner by December 1 in order to be effective for the following
year's assessment.

new text begin (d) If a person who was entitled to appeal to the county board of appeal and
equalization or to the county special board of equalization is not able to do so in a
particular year because the county board or special board did not meet the quorum and
training requirements in this section and section 274.13, or because the special board
was not appointed, that person may instead appeal to the commissioner of revenue,
provided that the appeal is received by the commissioner prior to August 1. The appeal
is not subject to either chapter 14 or section 270C.92. The commissioner must issue
an appropriate order to the county assessor in response to each timely appeal, either
upholding or changing the valuation or classification of the property. Prior to October 1 of
each year, the commissioner must charge and bill the county where the property is located
$500 for each tax parcel covered by an order issued under this paragraph in that year.
Amounts received by the commissioner under this paragraph must be deposited in the
state's general fund. If payment of a billed amount is not received by the commissioner
before December 1 of the year when billed, the commissioner must deduct that unpaid
amount from any state aid the commissioner would otherwise pay to the county under
chapter 477A in the next year. Late payments may either be returned to the county
uncashed and undeposited or may be accepted. If a late payment is accepted, the state aid
paid to the county under chapter 477A must be adjusted within 12 months to eliminate any
reduction that occurred because the payment was late. Amounts needed to make these
adjustments are included in the appropriation under section 477A.03, subdivision 2.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
 new text end

Sec. 16.

Minnesota Statutes 2008, section 274.14, is amended to read:


274.14 LENGTH OF SESSION; RECORD.

The board deleted text begin maydeleted text end new text begin mustnew text end meet deleted text begin on anydeleted text end new text begin after the second Friday in June on at least one
meeting day and may meet for up to new text end ten consecutive meeting days deleted text begin in June, after the
second Friday in Junedeleted text end . The actual meeting dates must be contained on the valuation
notices mailed to each property owner in the county as provided in section 273.121. For
this purpose, "meeting days" is defined as any day of the week excluding Sunday. At
the board's discretion, "meeting days" may include Saturday. No action taken by the
county board of review after June 30 is valid, except for corrections permitted in sections
273.01 and 274.01. The county auditor shall keep an accurate record of the proceedings
and orders of the board. The record must be published like other proceedings of county
commissioners. A copy of the published record must be sent to the commissioner of
revenue, with the abstract of assessment required by section 274.16.

For counties that conduct either regular board of review meetings or open book
meetings, at least one of the meeting days must include a meeting that does not end
before 7:00 p.m. For counties that require taxpayer appointments for the board of review,
appointments must include some available times that extend until at least 7:00 p.m. The
county may have a Saturday meeting in lieu of, or in addition to, the extended meeting
times under this paragraph.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 17.

Minnesota Statutes 2008, section 274.175, is amended to read:


274.175 VALUES FINALIZED.

The assessments recorded by the county assessor and the county auditor under
sections 273.124, subdivision 9; 274.16; 274.17; or other law for real and personal
property are final on July 1 of the assessment year, except for property added to the
assessment rolls under section 272.02, subdivision 38, new text begin and assessments certified to the
auditor under sections 273.33, subdivision 2, and 273.37, subdivision 2, new text end or deleted
because of tax forfeiture pursuant to chapter 281. No changes in value may be made
after July 1 of the assessment year, except for corrections permitted in sections 273.01
and 274.01new text begin , or assessments certified to the auditor under sections 273.33, subdivision 2,
and 273.37, subdivision 2new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2009 and
thereafter.
 new text end

Sec. 18.

Minnesota Statutes 2008, section 290C.06, is amended to read:


290C.06 CALCULATION OF AVERAGE ESTIMATED MARKET VALUE;
deleted text begin TIMBERLANDdeleted text end new text begin MANAGED FOREST LANDnew text end .

The commissioner shall annually calculate a statewide average estimated market
value per acre for class deleted text begin 2b timberlanddeleted text end new text begin 2c managed forest land new text end under section 273.13,
subdivision 23deleted text begin , paragraph (b)deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for calculations made in 2010 and
thereafter.
 new text end

Sec. 19.

Minnesota Statutes 2008, section 290C.07, is amended to read:


290C.07 CALCULATION OF INCENTIVE PAYMENT.

An approved claimant under the sustainable forest incentive program is eligible to
receive an annual payment. The payment shall equal the greater of:

(1) the difference between the property tax that would be paid on the land using the
previous year's statewide average total township tax rate and deleted text begin thedeleted text end new text begin anew text end class rate deleted text begin for class 2b
timberland under section 273.13, subdivision 23, paragraph (b)deleted text end new text begin of one percentnew text end , if the land
were valued at (i) the average statewide deleted text begin timberlanddeleted text end new text begin managed forest landnew text end market value per
acre calculated under section 290C.06, and (ii) the average statewide deleted text begin timberlanddeleted text end new text begin managed
forest landnew text end current use value per acre calculated under section 290C.02, subdivision 5; or

(2) two-thirds of the property tax amount determined by using the previous
year's statewide average total township tax rate, the estimated market value per acre as
calculated in section 290C.06, and deleted text begin thedeleted text end new text begin anew text end class rate deleted text begin for 2b timberland under section 273.13,
subdivision 23, paragraph (b)deleted text end new text begin of one percentnew text end , provided that the payment shall be no less
than $7 per acre for each acre enrolled in the sustainable forest incentive program.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for calculations made in 2010 and
thereafter.
 new text end

Sec. 20.

Minnesota Statutes 2008, section 477A.011, subdivision 34, is amended to
read:


Subd. 34.

City revenue need.

(a) For a city with a population equal to or greater
than 2,500, "city revenue need" is the new text begin greater of 285 or the new text end sum of (1) 5.0734098 times the
pre-1940 housing percentage; plus (2) 19.141678 times the population decline percentage;
plus (3) 2504.06334 times the road accidents factor; plus (4) 355.0547; minus (5) the
metropolitan area factor; minus (6) 49.10638 times the household size.

(b) For a city with a population less than 2,500, "city revenue need" is the sum of
(1) 2.387 times the pre-1940 housing percentage; plus (2) 2.67591 times the commercial
industrial percentage; plus (3) 3.16042 times the population decline percentage; plus (4)
1.206 times the transformed population; minus (5) 62.772.

(c) For a city with a population of 2,500 or more and a population in one of the most
recently available five years that was less than 2,500, "city revenue need" is the sum of (1)
its city revenue need calculated under paragraph (a) multiplied by its transition factor;
plus (2) its city revenue need calculated under the formula in paragraph (b) multiplied
by the difference between one and its transition factor. For purposes of this paragraph, a
city's "transition factor" is equal to 0.2 multiplied by the number of years that the city's
population estimate has been 2,500 or more. This provision only applies for aids payable
in calendar years 2006 to 2008 to cities with a 2002 population of less than 2,500. It
applies to any city for aids payable in 2009 and thereafter. deleted text begin The city revenue need under
this paragraph may not be less than 285.
deleted text end

(d) The city revenue need cannot be less than zero.

(e) For calendar year 2005 and subsequent years, the city revenue need for a city,
as determined in paragraphs (a) to (d), is multiplied by the ratio of the annual implicit
price deflator for government consumption expenditures and gross investment for state
and local governments as prepared by the United States Department of Commerce, for
the most recently available year to the 2003 implicit price deflator for state and local
government purchases.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2009 and
thereafter.
 new text end

Sec. 21.

Minnesota Statutes 2008, section 477A.011, subdivision 42, is amended to
read:


Subd. 42.

City jobs base.

(a) "City jobs base" for a city with a population of 5,000 or
more is equal to the product of (1) $25.20, (2) the number of jobs per capita in the city, and
(3) its population. For cities with a population less than 5,000, the city jobs base is equal
to zero. For a city receiving aid under subdivision 36, paragraph deleted text begin (l)deleted text end new text begin (k)new text end , its city jobs base
is reduced by the lesser of 36 percent of the amount of aid received under that paragraph
or $1,000,000. No city's city jobs base may exceed $4,725,000 under this paragraph.

(b) For calendar year 2010 and subsequent years, the city jobs base for a city, as
determined in paragraph (a), is multiplied by the ratio of the appropriation under section
477A.03, subdivision 2a, for the year in which the aid is paid to the appropriation under
that section for aids payable in 2009.

(c) For purposes of this subdivision, "jobs per capita in the city" means (1) the
average annual number of employees in the city based on the data from the Quarterly
Census of Employment and Wages, as reported by the Department of Employment and
Economic Development, for the most recent calendar year available as of May 1, 2008,
divided by (2) the city's population for the same calendar year as the employment data.
The commissioner of the Department of Employment and Economic Development shall
certify to the city the average annual number of employees for each city by June 1, 2008.
A city may challenge an estimate under this paragraph by filing its specific objection,
including the names of employers that it feels may have misreported data, in writing with
the commissioner by June 20, 2008. The commissioner shall make every reasonable effort
to address the specific objection and adjust the data as necessary. The commissioner shall
certify the estimates of the annual employment to the commissioner of revenue by July 15,
2008, including any estimates still under objection.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2009 and
thereafter.
 new text end

Sec. 22.

Minnesota Statutes 2008, section 477A.013, subdivision 8, is amended to read:


Subd. 8.

City formula aid.

(a) In calendar year 2009, the formula aid for a city
is equal to the sum of (1) its city jobs base, (2) its small city aid base, and (3) the need
increase percentage multiplied by its unmet need.

(b) In calendar year 2010 and subsequent years, the formula aid for a city is equal
to the sum of (1) its city jobs base, (2) its small city aid base, and (3) the need increase
percentage multiplied by the average of its unmet need for the most recently available
two years.

No city may have a formula aid amount less than zero. The need increase percentage
must be the same for all cities.

The applicable need increase percentage must be calculated by the Department of
Revenue so that the total of the aid under subdivision 9 equals the total amount available
for aid under section 477A.03. For aids payable in 2009 only, all data used in calculating
aid to cities under sections 477A.011 to 477A.013 will be based on the data available for
calculating aid to cities for aids payable in 2008. For aids payable in 2010 and thereafter,
data used in calculating aids to cities under sections 477A.011 to 477A.013 shall be the
most recently available data as of January 1 in the year in which the aid is calculatednew text begin
except as provided in section 477A.011, subdivisions 3 and 35new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2009 and
thereafter.
 new text end

Sec. 23. new text begin REPEALER.
new text end

new text begin Minnesota Rules, parts 8115.0200; 8115.0300; 8115.0400; 8115.0500; 8115.0600;
8115.1000; 8115.1100; 8115.1200; 8115.1300; 8115.1400; 8115.1500; 8115.1600;
8115.1700; 8115.1800; 8115.1900; 8115.2000; 8115.2100; 8115.2200; 8115.2300;
8115.2400; 8115.2500; 8115.2600; 8115.2700; 8115.2800; 8115.2900; 8115.3000;
8115.4000; 8115.4100; 8115.4200; 8115.4300; 8115.4400; 8115.4500; 8115.4600;
8115.4700; 8115.4800; 8115.4900; 8115.5000; 8115.5100; 8115.5200; 8115.5300;
8115.5400; 8115.5500; 8115.5600; 8115.5700; 8115.5800; 8115.5900; 8115.6000;
8115.6100; 8115.6200; 8115.6300; 8115.6400; and 8115.9900; new text end new text begin are repealed.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

ARTICLE 13

DEPARTMENT CONDITIONAL USE DEEDS

Section 1.

Minnesota Statutes 2008, section 282.01, subdivision 1, is amended to read:


Subdivision 1.

Classification as conservation or nonconservation.

new text begin (a) new text end It is the
general policy of this state to encourage the best use of tax-forfeited lands, recognizing that
some lands in public ownership should be retained and managed for public benefits while
other lands should be returned to private ownership. Parcels of land becoming the property
of the state in trust under law declaring the forfeiture of lands to the state for taxes must be
classified by the county board of the county in which the parcels lie as conservation deleted text begin ordeleted text end new text begin ,new text end
nonconservationnew text begin , or as conservation land suited for particular purposesnew text end . In making the
classification the board shall consider the present use of adjacent lands, the productivity of
the soil, the character of forest or other growth, accessibility of lands to established roads,
schools, and other public services, their peculiar suitability or desirability for particular
usesnew text begin ,new text end and the suitability of the forest resources on the land for multiple usedeleted text begin ,deleted text end new text begin andnew text end sustained
yield management. The classification, furthermore, must encourage and foster a mode of
land utilization that will facilitate the economical and adequate provision of transportation,
roads, water supply, drainage, sanitation, education, and recreation; facilitate reduction of
governmental expenditures; conserve and develop the natural resources; and foster and
develop agriculture and other industries in the districts and places best suited to them.

deleted text begin In making the classification the county board may use information made available
by any office or department of the federal, state, or local governments, or by any other
person or agency possessing pertinent information at the time the classification is made.
The lands may be reclassified from time to time as the county board considers necessary
or desirable, except for conservation lands held by the state free from any trust in favor of
any taxing district.
 deleted text end

deleted text begin If the lands are located within the boundaries of an organized town, with taxable
valuation in excess of $20,000, or incorporated municipality, the classification or
reclassification and sale must first be approved by the town board of the town or the
governing body of the municipality in which the lands are located. The town board of
the town or the governing body of the municipality is considered to have approved
the classification or reclassification and sale if the county board is not notified of the
disapproval of the classification or reclassification and sale within 60 days of the date the
request for approval was transmitted to the town board of the town or governing body
of the municipality. If the town board or governing body desires to acquire any parcel
lying in the town or municipality by procedures authorized in this section, it must file a
written application with the county board to withhold the parcel from public sale. The
application must be filed within 60 days of the request for classification or reclassification
and sale. The county board shall then withhold the parcel from public sale for six months.
A municipality or governmental subdivision shall pay maintenance costs incurred by
the county during the six-month period while the property is withheld from public sale,
provided the property is not offered for public sale after the six-month period. A clerical
error made by county officials does not serve to eliminate the request of the town board
or governing body if the board or governing body has forwarded the application to the
county auditor. If the town board or governing body of the municipality fails to submit an
application and a resolution of the board or governing body to acquire the property within
the withholding period, the county may offer the property for sale upon the expiration of
the withholding period.
 deleted text end

new text begin (b) Whenever the county board deems it appropriate, the board may hold a meeting
for the purpose of reclassifying tax-forfeited land that has not been sold or released from
the trust. The criteria and procedures for reclassification are the same as those required for
an initial classification.
 new text end

new text begin (c) Prior to meeting for the purpose of classifying or reclassifying tax-forfeited
lands, the county board must give notice of its intent to meet for that purpose as provided
in this paragraph. The notice must be given no more than 90 days and no less than 60
days before the date of the meeting; provided that if the meeting is rescheduled, notice
of the new date, time, and location must be given at least 14 days before the date of the
rescheduled meeting. The notice must be posted on a Web site under the procedures in
section 331A.12. The board must also mail a notice by electronic means to each person
who requests notice of meetings dealing with this subject and who agrees as provided
in chapter 325L to accept notice that is mailed by electronic means. Receipt of actual
notice under the conditions specified in section 13D.04, subdivision 7, satisfies the notice
requirements of this paragraph.
 new text end

new text begin The board may classify or reclassify tax-forfeited lands at any regular or special
meeting, as those terms are defined in chapter 13D and may conduct only this business, or
this business as well as other business or activities at the meeting.
 new text end

new text begin (d) At the meeting, the county board must allow any person or agency possessing
pertinent information to make or submit comments and recommendations about the
pending classification or reclassification. In addition, representatives of governmental
entities in attendance must be allowed to describe plans, ideas, or projects that may
involve use or acquisition of the property by that or another governmental entity. After
allowing testimony, the board may classify, reclassify, or delay taking action on any parcel
or parcels.
 new text end

new text begin (e) When classifying, reclassifying, appraising, and selling lands under this chapter,
the county board may designate the tracts as assessed and acquired, or may by resolution
provide for the subdivision of the tracts into smaller units or for the grouping of several
tracts into one tract when the subdivision or grouping is deemed advantageous for
conservation or sale purposes. This paragraph does not authorize the county board to
subdivide a parcel or tract of tax-forfeited land that, as assessed and acquired, is withheld
from sale under section 282.018, subdivision 1.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
 new text end

Sec. 2.

Minnesota Statutes 2008, section 282.01, subdivision 1a, is amended to read:


Subd. 1a.

Conveyancedeleted text begin ; generallydeleted text end new text begin to public entitiesnew text end .

new text begin (a) Upon written request
from a state agency or a governmental subdivision of the state, a parcel of unsold
tax-forfeited land is withheld from sale or lease to others for a maximum of six months.
The request must be submitted to the county auditor. Upon receipt, the county auditor
must withhold the parcel from sale or lease to any other party for six months, and
must confirm the starting date of the six-month withholding period to the requesting
agency or subdivision. If the request is from a governmental subdivision of the state, the
governmental subdivision must pay the maintenance costs incurred by the county during
the period the parcel is withheld. The county board may approve a sale or conveyance to
the requesting party during the withholding period. A conveyance of the property to the
requesting party terminates the withholding period.
 new text end

new text begin A governmental subdivision of the state must not make, and a county auditor must
not act upon, a second request to withhold a parcel from sale or lease within 18 months of
a previous request for that parcel.
 new text end

new text begin (b) new text end new text begin Nonconservation new text end tax-forfeited lands may be sold new text begin by the county board, for
their market value as determined new text end by the county boardnew text begin ,new text end to an organized or incorporated
governmental subdivision of the state for any public purpose for which the subdivision is
authorized to acquire property deleted text begin ordeleted text end new text begin .
new text end

new text begin (c) Nonconservation tax-forfeited landsnew text end may be released from the trust in favor of the
taxing districts on application deleted text begin ofdeleted text end new text begin to the county board bynew text end a state agency for an authorized
use at not less than their new text begin market new text end value as determined by the county board.

new text begin (d) Nonconservation tax-forfeited lands may be sold by the county board to an
organized or incorporated governmental subdivision of the state or state agency for less
than their market value if:
 new text end

new text begin (1) the county board determines that a sale at a reduced price is in the public interest
because (i) a reduced price is necessary to provide an incentive to correct the blighted
conditions that make the lands undesirable in the open market, or (ii) the reduced price
will lead to the development of affordable housing; and
 new text end

new text begin (2) the governmental subdivision or state agency has documented (i) its specific
plans for correcting the blighted conditions or developing affordable housing, and (ii) the
specific law or laws that empower it to acquire real property in furtherance of such plans.
 new text end

new text begin (e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts
may be conveyed bynew text end the commissioner of revenue deleted text begin may convey by deeddeleted text end in the name
of the state deleted text begin a tract of tax-forfeited land held in trust in favor of the taxing districtsdeleted text end to a
governmental subdivision for an authorized public use, if an application is submitted to
the commissioner which includes a statement of facts as to the use to be made of the
tract deleted text begin and the need therefordeleted text end and the new text begin favorable new text end recommendation of the county board.new text begin An
authorized public use under this paragraph is a use that either (i) allows an indefinite
segment of the public to physically use and enjoy the property in numbers appropriate to
its size and use, or (ii) is for a public service facility. Authorized public uses as defined
in this paragraph are limited to:
new text end

new text begin (1) a road, or right-of-way for a road;
 new text end

new text begin (2) a park that is both available to, and accessible by, the public that contains
amenities such as campgrounds, playgrounds, ball fields, trails, or shelters;
 new text end

new text begin (3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along
with a reasonable amount of surrounding land maintained in its natural state;
 new text end

new text begin (4) transit ways for buses or commuter trains;
 new text end

new text begin (5) public beaches or boat launches;
 new text end

new text begin (6) public parking;
 new text end

new text begin (7) civic recreation or conference facilities; and
 new text end

new text begin (8) public service facilities such as fire halls, police stations, lift stations, water
tower, sanitation facilities, water treatment facilities, and administrative offices.
 new text end

new text begin (f) The commissioner of revenue must convey a parcel of nonconservation
tax-forfeited land to a local governmental subdivision by quit claim deed on behalf of
the state upon the favorable recommendation of the county board if the governmental
subdivision has certified to the board that prior to forfeiture the subdivision was entitled
to the parcel under a written development agreement, but the conveyance failed to occur
prior to forfeiture. No compensation or consideration is required for, and no conditions
attach to, the conveyance.
 new text end

new text begin (g) Conservation tax-forfeited land may be sold to a governmental subdivision of
the state for less than its market value for either: (i) creation or preservation of wetlands,
(ii) drainage or storage of storm water under a storm water management plan, or (iii)
preservation, or restoration and preservation, of the land in its natural state. The deed in
such case must contain a restrictive covenant limiting the use of the land to one of these
purposes for 30 years or until the property is reconveyed back to the state in trust. At any
time, the governmental subdivision may reconvey the property to the state in trust for the
taxing districts. The deed of reconveyance is subject to approval by the commissioner of
revenue. No part of a purchase price determined under this paragraph shall be refunded
upon a reconveyance, but the amount paid for a conveyance under this paragraph may be
taken into account by the county board when setting the terms of a future sale of the same
property to the same governmental subdivision under paragraph (b) or (d).
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
 new text end

Sec. 3.

Minnesota Statutes 2008, section 282.01, subdivision 1c, is amended to read:


Subd. 1c.

Deed of conveyance; form; approvals.

The deed of conveyance for
property conveyed for deleted text begin adeleted text end new text begin an authorizednew text end public use new text begin under the authorities in subdivision
1a, paragraph (e), new text end must be on a form approved by the attorney general and must be
conditioned on continued use for the purpose stated in the applicationnew text begin as provided in this
section. These deeds are conditional use deeds that convey a defeasible estate. Reversion
of the estate occurs by operation of law and without the requirement for any affirmative
act by, or on behalf of the state when there is a failure to put the property to the approved
authorized public use for which it was conveyed, or an abandonment of that use; except as
provided in subdivision 1dnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
 new text end

Sec. 4.

Minnesota Statutes 2008, section 282.01, subdivision 1d, is amended to read:


Subd. 1d.

Reverter for failure to use; conveyance to state.

new text begin (a) new text end If after three
years from the date of the conveyance a governmental subdivision to which tax-forfeited
land has been conveyed for deleted text begin a specifieddeleted text end new text begin an authorizednew text end public use as provided in this
section fails to put the land to that use, or abandons that use, the governing body of the
subdivision deleted text begin may,deleted text end new text begin must: (1)new text end with the approval of the county board, purchase the property
for an authorized public purpose at the present deleted text begin appraiseddeleted text end new text begin marketnew text end value as determined by
the county boarddeleted text begin . In that case, the commissioner of revenue shall, upon proper written
application approved by the county board, issue an appropriate deed to the subdivisions
free of a use restriction and reverter. The governing body may alsodeleted text end new text begin , or (2)new text end authorize the
proper officers to convey the land, or the part of the land not required for an authorized
public use, to the state of Minnesotadeleted text begin .deleted text end new text begin in trust for the taxing districts. If the governing body
purchases the property under clause (1), the commissioner of revenue shall, upon property
application submitted by the county auditor, convey the property on behalf of the state by
quit claim deed to the subdivision free of a use restriction and the possibility of reversion
or defeasement. If the governing body decides to reconvey the property to the state under
clause (2),new text end the officers shall execute a deed of conveyance immediately. The conveyance is
subject to the approval of the commissioner and its form must be approved by the attorney
general. deleted text begin A sale, lease, transfer, or other conveyance of tax-forfeited lands by a housing
and redevelopment authority, a port authority, an economic development authority, or a
city as authorized by chapter 469 is not an abandonment of use and the lands shall not be
reconveyed to the state nor shall they revert to the state. A certificate made by a housing
and redevelopment authority, a port authority, an economic development authority, or a
city referring to a conveyance by it and stating that the conveyance has been made as
authorized by chapter 469 may be filed with the county recorder or registrar of titles, and
the rights of reverter in favor of the state provided by subdivision 1e will then terminate.
No vote of the people is required for the conveyance.deleted text end new text begin For the purposes of this paragraph,
there is no failure to put the land to the authorized public use and no abandonment of
that use if a formal plan of the governmental subdivision shows an intended future use
of the land for the authorized public use.
new text end

new text begin (b) Property held by a governmental subdivision of the state under a conditional use
deed executed by the commissioner of revenue after January 1, 2006, may be acquired
by that governmental subdivision after 15 years from the date of the conveyance if
the commissioner determines upon written application from the subdivision that, the
subdivision has in fact put the property to the authorized public use for which it was
conveyed, and the subdivision has made a finding that it has no current plans to change
the use of the lands. Prior to conveying the property, the commissioner shall inquire
whether the county board where the land is located objects to a conveyance of the property
to the subdivision without conditions and without further act by or obligation of the
subdivision. If the county does not object within 60 days, and the commissioner makes
a favorable determination, the commissioner shall issue a quit claim deed on behalf of
the state unconditionally conveying the property to the governmental subdivision. For
purposes of this paragraph, demonstration of an intended future use for the authorized
public use in a formal plan of the governmental subdivision does not constitute use for
that authorized public use.
 new text end

new text begin (c) Property held by a governmental subdivision of the state under a conditional use
deed executed by the commissioner of revenue before January 1, 2006, is released from
the use restriction and possibility of reversion on January 1, 2021, if the county board
records a document describing the land and citing this paragraph. The county board may
authorize the county treasurer to deduct the amount of the recording fees from future
settlements of property taxes to the subdivision.
 new text end

new text begin (d) All property held by a governmental subdivision of the state under a conditional
use deed executed by the commissioner of revenue is released from the use restriction
and possibility of reversion on the later of: (i) January 1, 2012; (ii) 40 years after the
date the deed was executed; or (iii) upon final resolution of an appeal to district court
under subdivision 1e if the appeal was commenced prior to January 1, 2012. Upon the
occurrence of item (i), (ii), or (iii), the governmental subdivision may record a certificate
referring to the land, the original conveyance, and to the release under this paragraph.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
 new text end

Sec. 5.

Minnesota Statutes 2008, section 282.01, is amended by adding a subdivision
to read:


new text begin Subd. 1g. new text end

new text begin Conditional use deed fees. new text end

new text begin (a) A governmental subdivision applying
for a conditional use deed under subdivision 1a, paragraph (e), must submit a fee of $250
to the commissioner of revenue along with the application. If the application is denied,
the commissioner shall refund $150 of the application fee.
 new text end

new text begin (b) The proceeds from the fees must be deposited in a Department of Revenue
conditional use deed revolving fund. The sums deposited into the revolving fund are
appropriated to the commissioner of revenue for the purpose of making the refunds
described in this subdivision, and administering conditional use deed laws.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications received by the
commissioner after June 30, 2009.
 new text end

Sec. 6.

Minnesota Statutes 2008, section 282.01, subdivision 2, is amended to read:


Subd. 2.

Conservation lands; county board supervision.

new text begin (a) new text end Lands classified as
conservation landsdeleted text begin , unless reclassified as nonconservation lands, sold to a governmental
subdivision of the state, designated as lands primarily suitable for forest production and
sold as hereinafter provided, or released from the trust in favor of the taxing districts, as
herein provided, willdeleted text end new text begin mustnew text end be held under the supervision of the county board of the county
within which such parcels liedeleted text begin .deleted text end new text begin and must not be conveyed or sold unless the lands are:
new text end

deleted text begin The county board may, by resolution duly adopted, declare lands classified as
conservation lands as primarily suitable for timber production and as lands which should
be placed in private ownership for such purposes. If such action be approved by the
commissioner of natural resources, the lands so designated, or any part thereof, may be
sold by the county board in the same manner as provided for the sale of lands classified as
nonconservation lands. Such county action and the approval of the commissioner shall be
limited to lands lying within areas zoned for restricted uses under the provisions of Laws
1939, chapter 340, or any amendments thereof.
 deleted text end

new text begin (1) reclassified as nonconservation lands;
 new text end

new text begin (2) conveyed to a governmental subdivision of the state under subdivision 1a;
 new text end

new text begin (3) released from the trust in favor of the taxing districts as provided in paragraph
(b); or
 new text end

new text begin (4) conveyed or sold under the authority of another general or special law.
 new text end

new text begin (b) new text end The county board may, by resolution duly adopted, resolve that certain lands
classified as conservation lands shall be devoted to conservation uses and may submit
such resolution to the commissioner of natural resources. If, upon investigation, the
commissioner of natural resources determines that the lands covered by such resolution,
or any part thereof, can be managed and developed for conservation purposes, the
commissioner shall make a certificate describing the lands and reciting the acceptance
thereof on behalf of the state for such purposes. The commissioner shall transmit the
certificate to the county auditor, who shall note the same upon the auditor's records and
record the same with the county recorder. The title to all lands so accepted shall be held
by the state free from any trust in favor of any and all taxing districts and such lands
shall be devoted thereafter to the purposes of forestry, water conservation, flood control,
parks, game refuges, controlled game management areas, public shooting grounds, or
other public recreational or conservation uses, and managed, controlled, and regulated
for such purposes under the jurisdiction of the commissioner of natural resources and
the divisions of the department.

new text begin (c) All proceeds derived from the sale of timber, lease of hay stumpage, or other
revenue from such lands under the jurisdiction of the commissioner of natural resources
shall be paid into the general fund of the state.
 new text end

deleted text begin In casedeleted text end new text begin (d) Ifnew text end the commissioner of natural resources deleted text begin shall determinedeleted text end new text begin determinesnew text end that
any tract of land deleted text begin so helddeleted text end new text begin acquired new text end by the state new text begin under paragraph (b) new text end and situated within
or adjacent to the boundaries of any governmental subdivision of the state is suitable
for use by such subdivision for any authorized public purpose, the commissioner may
convey such tract by deed in the name of the state to such subdivision upon the filing
with the commissioner of a resolution adopted by a majority vote of all the members
of the governing body thereof, stating the purpose for which the land is desired. The
deed of conveyance shall be upon a form approved by the attorney general new text begin and must be
new text end conditioned upon continued use for the purpose stated in the resolution. deleted text begin All proceeds
derived from the sale of timber, lease of hay stumpage, or other revenue from such
lands under the jurisdiction of the natural resources commissioner shall be paid into the
general fund of the state.
deleted text end

new text begin (e)new text end The county auditor, with the approval of the county board, may lease conservation
lands remaining under the deleted text begin jurisdictiondeleted text end new text begin supervisionnew text end of the county board and sell timber
and hay stumpage thereon in the manner hereinafter provided, and all proceeds derived
therefrom shall be distributed in the same manner as provided in section 282.04.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
 new text end

Sec. 7.

Minnesota Statutes 2008, section 282.01, subdivision 3, is amended to read:


Subd. 3.

Nonconservation lands; appraisal and sale.

new text begin (a) new text end All parcels of land
classified as nonconservation, except those which may be reserved, shall be sold as
provided, if it is determined, by the county board of the county in which the parcels lie,
that it is advisable to do so, having in mind their accessibility, their proximity to existing
public improvements, and the effect of their sale and occupancy on the public burdens.
Any parcels of land proposed to be sold shall be first appraised by the county board of
the county in which the parcels lie. The parcels may be reappraised whenever the county
board deems it necessary to carry out the intent of sections 282.01 to 282.13.

new text begin (b)new text end In an appraisal the value of the land and any standing timber on it shall be
separately determined. No parcel of land containing any standing timber may be sold until
the appraised value of the timber on it and the sale of the land have been approved by the
commissioner of natural resources. The commissioner shall base review of a proposed
sale on the policy and considerations specified in subdivision 1. The decision of the
commissioner shall be in writing and shall state the reasons for it. The commissioner's
decision is exempt from the rulemaking provisions of chapter 14 and section 14.386
does not apply. The county may appeal the decision of the commissioner in accordance
with chapter 14.

new text begin (c) new text end In any county in which a state forest or any part of it is located, the county
auditor shall submit to the commissioner at least 60 days before the first publication of the
list of lands to be offered for sale a list of all lands included on the list which are situated
outside of any incorporated municipality. If, at any time before the opening of the sale, the
commissioner notifies the county auditor in writing that there is standing timber on any
parcel of such land, the parcel shall not be sold unless the requirements of this section
respecting the separate appraisal of the timber and the approval of the appraisal by the
commissioner have been complied with. The commissioner may waive the requirement
of the 60-day notice as to any parcel of land which has been examined and the timber
value approved as required by this section.

new text begin (d) new text end If any public improvement is made by a municipality after any parcel of land has
been forfeited to the state for the nonpayment of taxes, and the improvement is assessed in
whole or in part against the property benefited by it, the clerk of the municipality shall
certify to the county auditor, immediately upon the determination of the assessments for
the improvement, the total amount that would have been assessed against the parcel of land
if it had been subject to assessment; or if the public improvement is made, petitioned for,
ordered in or assessed, whether the improvement is completed in whole or in part, at any
time between the appraisal and the sale of the parcel of land, the cost of the improvement
shall be included as a separate item and added to the appraised value of the parcel of land
at the time it is sold. No sale of a parcel of land shall discharge or free the parcel of land
from lien for the special benefit conferred upon it by reason of the public improvement
until the cost of it, including penalties, if any, is paid. The county board shall determine
the amount, if any, by which the value of the parcel was enhanced by the improvement and
include the amount as a separate item in fixing the appraised value for the purpose of sale.
deleted text begin In classifying, appraising, and selling the lands, the county board may designate the tracts
as assessed and acquired, or may by resolution provide for the subdivision of the tracts into
smaller units or for the grouping of several tracts into one tract when the subdivision or
grouping is deemed advantageous for the purpose of sale. Each such smaller tract or larger
tract must be classified and appraised as such before being offered for sale. If any such
lands have once been classified, the board of county commissioners, in its discretion, may,
by resolution, authorize the sale of the smaller tract or larger tract without reclassification.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
 new text end

Sec. 8.

Minnesota Statutes 2008, section 282.01, subdivision 4, is amended to read:


Subd. 4.

Sale: method, requirements, effects.

The sale new text begin authorized under
subdivision 3 new text end must be conducted by the county auditor at the county seat of the county in
which the parcels lie, except that in St. Louis and Koochiching Counties, the sale may
be conducted in any county facility within the county. new text begin The sale must not be for less than
the appraised value except as provided in subdivision 7a. new text end The parcels must be sold for
cash only deleted text begin and at not less than the appraised valuedeleted text end , unless the county board of the county
has adopted a resolution providing for their sale on terms, in which event the resolution
controls with respect to the sale. When the sale is made on terms other than for cash only
(1) a payment of at least ten percent of the purchase price must be made at the time of
purchase, and the balance must be paid in no more than ten equal annual installments, or
(2) the payments must be made in accordance with county board policy, but in no event
may the board require more than 12 installments annually, and the contract term must not
be for more than ten years. Standing timber or timber products must not be removed from
these lands until an amount equal to the appraised value of all standing timber or timber
products on the lands at the time of purchase has been paid by the purchaser. If a parcel of
land bearing standing timber or timber products is sold at public auction for more than
the appraised value, the amount bid in excess of the appraised value must be allocated
between the land and the timber in proportion to their respective appraised values. In that
case, standing timber or timber products must not be removed from the land until the
amount of the excess bid allocated to timber or timber products has been paid in addition
to the appraised value of the land. The purchaser is entitled to immediate possession,
subject to the provisions of any existing valid lease made in behalf of the state.

For sales occurring on or after July 1, 1982, the unpaid balance of the purchase price
is subject to interest at the rate determined pursuant to section 549.09. The unpaid balance
of the purchase price for sales occurring after December 31, 1990, is subject to interest
at the rate determined in section 279.03, subdivision 1a. The interest rate is subject to
change each year on the unpaid balance in the manner provided for rate changes in section
549.09 or 279.03, subdivision 1a, whichever, is applicable. Interest on the unpaid contract
balance on sales occurring before July 1, 1982, is payable at the rate applicable to the sale
at the time that the sale occurred.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
 new text end

Sec. 9.

Minnesota Statutes 2008, section 282.01, subdivision 7, is amended to read:


Subd. 7.

County sales; notice, purchase price, disposition.

The sale must
commence at the time determined by the county board of the county in which the parcels
are located. The county auditor shall offer the parcels of land in order in which they
appear in the notice of sale, and shall sell them to the highest bidder, but not for a sum
less than the appraised value, until all of the parcels of land have been offered. Then the
county auditor shall sell any remaining parcels to anyone offering to pay the appraised
value, except that if the person could have repurchased a parcel of property under section
282.012 or 282.241, that person may not purchase that same parcel of property at the sale
under this subdivision for a purchase price less than the sum of all taxes, assessments,
penalties, interest, and costs due at the time of forfeiture computed under section 282.251,
and any special assessments for improvements certified as of the date of sale. The sale
must continue until all the parcels are sold or until the county board orders a reappraisal or
withdraws any or all of the parcels from sale. The list of lands may be added to and the
added lands may be sold at any time by publishing the descriptions and appraised values.
The added lands must be: (1) parcels of land that have become forfeited and classified
as nonconservation since the commencement of any prior sale; (2) parcels new text begin classified as
nonconservation new text end that have been reappraised; (3) parcels that have been reclassified as
nonconservation; or (4) other parcels that are subject to sale but were omitted from the
existing list for any reason. The descriptions and appraised values must be published in
the same manner as provided for the publication of the original list. Parcels added to the
list must first be offered for sale to the highest bidder before they are sold at appraised
value. All parcels of land not offered for immediate sale, as well as parcels that are offered
and not immediately sold, continue to be held in trust by the state for the taxing districts
interested in each of the parcels, under the supervision of the county board. Those parcels
may be used for public purposes until sold, as directed by the county board.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
 new text end

Sec. 10.

Minnesota Statutes 2008, section 282.01, subdivision 7a, is amended to read:


Subd. 7a.

City sales; alternate procedures.

Land located in a home rule charter
or statutory city, or in a town which cannot be improved because of noncompliance with
local ordinances regarding minimum area, shape, frontage or access may be sold by the
county auditor pursuant to this subdivision if the auditor determines that a nonpublic sale
will encourage the approval of sale of the land by the city or town and promote its return
to the tax rolls. If the physical characteristics of the land indicate that its highest and best
use will be achieved by combining it with an adjoining parcel and the city or town has not
adopted a local ordinance governing minimum area, shape, frontage, or access, the land
may also be sold pursuant to this subdivision. If the property consists of an undivided
interest in land or land and improvements, the property may also be sold to the other
owners under this subdivision. The sale of land pursuant to this subdivision shall be
subject to any conditions imposed by the county board pursuant to section 282.03. The
governing body of the city or town may recommend to the county board conditions to be
imposed on the sale. The county auditor may restrict the sale to owners of lands adjoining
the land to be sold. The county auditor shall conduct the sale by sealed bid or may select
another means of sale. The land shall be sold to the highest bidder deleted text begin but in no event shall the
landdeleted text end new text begin and maynew text end be sold for less than its appraised value. All owners of land adjoining the
land to be sold shall be given a written notice at least 30 days prior to the sale.

This subdivision shall be liberally construed to encourage the sale and utilization
of tax-forfeited land, to eliminate nuisances and dangerous conditions and to increase
compliance with land use ordinances.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
 new text end

Sec. 11.

Minnesota Statutes 2008, section 287.2205, is amended to read:


287.2205 TAX-FORFEITED LAND.

Before a state deed for tax-forfeited land may be issued, the deed tax must be paid
by the purchaser of tax-forfeited land whether the purchase is the result of a public
auction or private sale or a repurchase of tax-forfeited land. State agencies and local
units of government that acquire tax-forfeited land by purchase or any other means are
subject to this section. The deed tax is $1.65 for a conveyance of tax-forfeited lands to a
governmental subdivision for an authorized public use under section 282.01, subdivision
1adeleted text begin , or for redevelopment purposes under section 282.01, subdivision 1bdeleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
 new text end

Sec. 12. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, section 282.01, subdivisions 1b, 9, 10, and 11, new text end new text begin are repealed.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
 new text end

ARTICLE 14

DEPARTMENT MISCELLANEOUS

Section 1.

Minnesota Statutes 2008, section 270B.14, subdivision 16, is amended to
read:


Subd. 16.

Disclosure to law enforcement authorities.

Under circumstances
involving threat of death or physical injury to any individual, new text begin or harassment of a
Department of Revenue employee, new text end the commissioner may disclose return information
to the extent necessary to apprise appropriate federal, state, or local law enforcement
authorities of such circumstances. new text begin For purposes of this subdivision, "harassment" is
purposeful conduct directed at an individual and causing an individual to feel frightened,
threatened, oppressed, persecuted, or intimidated. For purposes of harassment, the return
information that initially can be disclosed is limited to the name, address, and phone
number of the harassing individual, the name of the employee being harassed, and the
nature and circumstances of the harassment. new text end Data disclosed under this subdivision are
classified under section 13.82 once they are received by the law enforcement authority.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 2.

Minnesota Statutes 2008, section 270C.12, is amended by adding a subdivision
to read:


new text begin Subd. 5. new text end

new text begin Duration. new text end

new text begin Notwithstanding the provisions of any statutes to the contrary,
including section 15.059, the coordinating committee as established by this section to
oversee and coordinate preparation of the microdata samples of income tax returns and
other information shall not expire.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 3.

Minnesota Statutes 2008, section 270C.446, subdivision 2, is amended to read:


Subd. 2.

Required and excluded tax preparers.

(a) Subject to the limitations of
paragraph (b), the commissioner must publish lists of tax preparers as defined in section
289A.60, subdivision 13, paragraph (f), who have been convicted under section 289A.63
new text begin for returns or claims prepared as a tax preparer new text end or assessed penalties in excess of $1,000
under section 289A.60, subdivision 13, paragraph (a).

(b) For the purposes of this section, tax preparers are not subject to publication if:

(1) an administrative or court action contesting the penalty has been filed or served
and is unresolved at the time when notice would be given under subdivision 3;

(2) an appeal period to contest the penalty has not expired; or

(3) the commissioner has been notified that the tax preparer is deceased.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 4.

Minnesota Statutes 2008, section 270C.446, subdivision 5, is amended to read:


Subd. 5.

Removal from list.

The commissioner shall remove the name of a tax
preparer from the list of tax preparers published under this section:

(1) when the commissioner determines that the name was included on the list in error;

(2) within 90 days after the preparer has new text begin demonstrated to the commissioner that
the preparer new text end fully paid all fines imposed, served any suspension, new text begin satisfied any sentence
imposed, new text end and deleted text begin demonstrated to the satisfaction of the commissioner that the preparer hasdeleted text end
successfully completed any remedial actions required by the commissioner, the State
Board of Accountancy, or the Lawyers Board of Professional Responsibility; or

(3) when the commissioner has been notified that the tax preparer is deceased.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 5.

Minnesota Statutes 2008, section 270C.56, subdivision 1, is amended to read:


Subdivision 1.

Liability imposed.

A person who, either singly or jointly with
others, has the control of, supervision of, or responsibility for filing returns or reports,
paying taxes, or collecting or withholding and remitting taxes and who fails to do so, or a
person who is liable under any other law, is liable for the payment of taxesdeleted text begin , penalties, and
interestdeleted text end arising under chapters 295, 296A, 297A, 297F, and 297G, or sections 256.9658,
290.92, and 297E.02, anddeleted text begin , for the taxes listed in this subdivision,deleted text end the applicable penalties
deleted text begin for nonpayment under section 289A.60deleted text end new text begin and interest on those taxesnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 6.

Minnesota Statutes 2008, section 289A.41, is amended to read:


289A.41 BANKRUPTCY; SUSPENSION OF TIME.

The running of the period during which a tax must be assessed or collection
proceedings commenced is suspended during the period from the date of a filing of a
petition in bankruptcy until 30 days after either notice to the commissioner of revenue that
the bankruptcy proceedings have been closed or dismissed, ornew text begin notice thatnew text end the automatic
stay has been terminated or has expired, whichever occurs first.

The suspension of the statute of limitations under this section applies to the person
the petition in bankruptcy is filed against and other persons who may also be wholly or
partially liable for the tax.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

ARTICLE 15

MISCELLANEOUS

Section 1.

Minnesota Statutes 2008, section 270C.445, is amended to read:


270C.445 TAX PREPARATION SERVICES.

Subdivision 1.

Scope.

This section applies to a person who provides tax preparation
servicesnew text begin , except:
new text end

new text begin (1) a person who provides tax preparation services for fewer than ten clients in a
calendar year;
 new text end

new text begin (2) a person who provides tax preparation services only to immediate family
members. For the purposes of this section, "immediate family members" means a spouse,
parent, grandparent, child, or sibling;
 new text end

new text begin (3) an employee who prepares a tax return for an employer's business;
 new text end

new text begin (4) any fiduciary, or the regular employees of a fiduciary, while acting on behalf of
the fiduciary estate, testator, trustor, grantor, or beneficiaries of them; and
 new text end

new text begin (5) nonprofit organizations providing tax preparation services under the Internal
Revenue Service Volunteer Income Tax Assistance Program or Tax Counseling for the
Elderly Programnew text end .

Subd. 2.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given.

(b) "Client" means an individual for whom a tax preparer performs or agrees to
perform tax preparation services.

(c) "Person" means an individual, corporation, partnership, limited liability
company, association, trustee, or other legal entity.

(d) "Refund anticipation loan" means a loannew text begin or any other extension of creditnew text end , whether
provided by the tax preparer or another entity such as a financial institution, in anticipation
of, and whose payment is secured by, a client's federal or state income tax refund or both.

(e) "Tax preparation services" means services provided for a fee or other
consideration to a client to:

(1) assist with preparing or filing state or federal individual income tax returns;

(2) assume final responsibility for completed work on an individual income tax
return on which preliminary work has been done by another; or

(3) deleted text begin offer ordeleted text end facilitate the provision of refund anticipation loansnew text begin and refund
anticipation checksnew text end .

(f) "Tax preparer" or "preparer" means a person providing tax preparation services
subject to this section.

new text begin (g) "Advertise" means to solicit business through any means or medium.
 new text end

new text begin (h) "Facilitate" means to individually or in conjunction or cooperation with another
person:
new text end

new text begin (1) accept an application for a refund anticipation loan;
new text end

new text begin (2) pay to a client the proceeds, through direct deposit, a negotiable instrument, or
any other means, of a refund anticipation loan; or
new text end

new text begin (3) offer, arrange, process, provide, or in any other manner act to allow the making
of, a refund anticipation loan.
 new text end

new text begin (i) "Refund anticipation check" means a negotiable instrument provided to a client
by the tax preparer or another person, which is issued from the proceeds of a taxpayer's
federal or state income tax refund or both and represents the net of the refund minus the tax
preparation fee and any other fees. A refund anticipation check includes a refund transfer.
 new text end

Subd. 3.

Standards of conduct.

No tax preparer shall:

(1) without good cause fail to promptly, diligently, and without unreasonable delay
complete a client's tax return;

(2) obtain the signature of a client to a tax return or authorizing document that
contains blank spaces to be filled in after it has been signed;

(3) fail to sign a client's tax return when payment for services rendered has been
made;

(4) fail or refuse to give a client a copy of any document requiring the client's
signature within a reasonable time after the client signs the document;

(5) fail to retain for at least four years a copy of individual income tax returns;

(6) fail to maintain a confidential relationship deleted text begin between themselves and theirdeleted text end new text begin withnew text end
clients or former clients;

(7) fail to take commercially reasonable measures to safeguard a client's nonpublic
personal information;

(8) make, authorize, publish, disseminate, circulate, or cause to make, either directly
or indirectly, any false, deceptive, or misleading statement or representation relating to or
in connection with the offering or provision of tax preparation services;

(9) require a client to enter into a loan arrangement in order to complete a tax return;

(10) claim credits or deductions on a client's tax return for which the tax preparer
knows or reasonably should know the deleted text begin taxpayerdeleted text end new text begin clientnew text end does not qualify;

(11) charge, offer to accept, or accept a fee based upon a percentage of an anticipated
refund for tax preparation services;

(12) under any circumstances, withhold or fail to return to a client a document
provided by the client for use in preparing the client's tax returndeleted text begin .deleted text end new text begin ;
new text end

new text begin (13) establish an account in the preparer's name to receive a client's refund through
a direct deposit or any other instrument unless the client's name is also on the account,
except that a taxpayer may assign the portion of a refund representing the Minnesota
education credit available under section 290.0674 to a bank account without the client's
name, as provided under section 290.0679;
 new text end

new text begin (14) fail to act in the best interests of the client;
 new text end

new text begin (15) fail to safeguard and account for any money handled for the client;
 new text end

new text begin (16) fail to disclose all material facts of which the preparer has knowledge which
might reasonably affect the client's rights and interests;
 new text end

new text begin (17) violate any provision of section 332.37;
 new text end

new text begin (18) include any of the following in any document provided or signed in connection
with the provision of tax preparation services:
 new text end

new text begin (i) a hold harmless clause;
 new text end

new text begin (ii) a confession of judgment or a power of attorney to confess judgment against the
client or appear as the client in any judicial proceeding;
 new text end

new text begin (iii) a waiver of the right to a jury trial, if applicable, in any action brought by or
against a debtor;
 new text end

new text begin (iv) an assignment of or an order for payment of wages or other compensation for
services;
 new text end

new text begin (v) a provision in which the client agrees not to assert any claim or defense otherwise
available;
 new text end

new text begin (vi) a waiver of any provision of this section or a release of any obligation required
to be performed on the part of the tax preparer; or
 new text end

new text begin (vii) a waiver of the right to injunctive, declaratory, or other equitable relief or
relief on a class basis; or
 new text end

new text begin (19) if making, providing, or facilitating a refund anticipation loan, fail to provide all
disclosures required by the federal Truth in Lending Act, United States Code, title 15, in a
form that may be retained by the client.
 new text end

new text begin Subd. 3a. new text end

new text begin Written agreements required; refund anticipation loans and checks.
 new text end

new text begin (a) All agreements to make, provide, or facilitate a refund anticipation loan or refund
anticipation check must be in writing. No agreement may include a provision that
directly or indirectly arranges for payment of or deduction from any portion of the refund
anticipation loan or refund anticipation check for check cashing, credit insurance, attorney
fees, or the collection of any debt owed to any party for any other good or service other
than a debt owed to the facilitator for the repayment of a refund anticipation loan and
tax preparation fees.
 new text end

new text begin (b) If a written agreement contains a mandatory arbitration clause, the tax preparer
must provide a separate written notice to the client that:
 new text end

new text begin (1) arbitration is the exclusive means of dispute resolution for any dispute about the
written agreement;
 new text end

new text begin (2) the client has the right to affirmatively opt out of the arbitration clause within 30
days of entering into the agreement; and
new text end

new text begin (3) the client is not bound to arbitration if the claim or dispute involves a violation of
this section or the client invokes the remedies provided in subdivision 7.
 new text end

new text begin The tax preparer must advise the client, both orally and in writing, of the process by which
the client may exercise the right to opt out of the mandatory arbitration clause.
 new text end

Subd. 4.

Required disclosures; refund anticipation loansnew text begin and checksnew text end .

(a) deleted text begin Ifdeleted text end
new text begin Before or at the same time new text end a tax preparer offers to make or facilitate a refund anticipation
loan to the client, the preparer must make the disclosures in deleted text begin this subdivision. The
disclosures must be made before or at the same time the preparer offers the refund
anticipation loan to the client.
deleted text end

deleted text begin (b) The tax preparer must provide to a client a written notice on a single sheet of
paper, separate from any other document or writing, containing:
 deleted text end

deleted text begin (1) a legend, centered at the top on the single sheet of paper, in bold, capital letters,
and in 28-point type stating "NOTICE";
 deleted text end

deleted text begin (2) the following verbatim statements:
 deleted text end

deleted text begin (i) "This is a loan. The annual percentage rate (APR), based on the estimated
payment period, is (fill in the estimated APR)."
 deleted text end

deleted text begin (ii) "Your refund will be used to repay the loan. As a result, the amount of your
refund will be reduced by (fill in appropriate dollar amount) for fees, interest, and other
charges."
 deleted text end

deleted text begin (iii)
deleted text end

deleted text begin "You can get your refund in about two weeks if you file your return electronically
and have the Internal Revenue Service send your refund to your own bank account." and
 deleted text end

deleted text begin (3) if the client is subject to additional interest when a refund is delayed, the
following verbatim statement must also be included in the notice: "If you choose to take
this loan and your refund is delayed, you may have to pay additional interest."
 deleted text end

deleted text begin (c) All required statements must be in capital and small font type fonts, in a
minimum of 14-point type, with at least a double space between each line in the statement
and four spaces between each statement.
 deleted text end

deleted text begin (d) The notice must be signed and dated by the tax preparer and the clientdeleted text end new text begin subdivision
4a. Before or at the same time a tax preparer offers or facilitates a refund anticipation
check or refund transfer, the tax preparer must make the disclosures in subdivision 4bnew text end .

new text begin (b) The disclosures must be provided to the client in a written notice on a single
sheet of paper, separate from any other document or writing.
 new text end

new text begin (c) The notice must be signed and dated by the tax preparer and the client.
 new text end

new text begin (d) All required disclosures, notices, and statements must be provided in the client's
primary language, if the tax preparer advertises in that language.
 new text end

new text begin Subd. 4a. new text end

new text begin Refund anticipation loan disclosures. new text end

new text begin The disclosure required under
subdivision 4 for a refund anticipation loan must contain:
 new text end

new text begin (1) a legend, centered at the top on the single sheet of paper, in bold, capital letters,
and in 28-point type stating "NOTICE";
 new text end

new text begin (2) the following verbatim statements:
 new text end

new text begin (i) "This is a loan. This is not your refund. The annual percentage rate (APR), based
on the estimated payment period, is (fill in the estimated APR).";
 new text end

new text begin (ii) "Your refund will be used to repay the loan. As a result, the amount of your
refund will be reduced by (fill in appropriate dollar amount) for fees, interest, and other
charges.";
 new text end

new text begin (iii) "You have the right to cancel this transaction by returning the loan check or the
amount of the loan in cash within one business day after you get the loan."; and
 new text end

new text begin (iv) "You can get your refund in about two weeks if you file your return electronically
and have the Internal Revenue Service send your refund to your own bank account."; and
 new text end

new text begin (3) if the client is subject to additional interest when a refund is delayed, the
following verbatim statement must also be included in the notice: "If you choose to take
this loan and your refund check is delayed, you may have to pay."
 new text end

new text begin Subd. 4b. new text end

new text begin Refund anticipation check disclosures. new text end

new text begin (a) The disclosure required
under subdivision 4 for a refund anticipation check must contain:
 new text end

new text begin (1) a legend, centered at the top on the single sheet of paper, in bold, capital letters,
and in 28-point type stating "NOTICE"; and
 new text end

new text begin (2) the following verbatim statements:
 new text end

new text begin (i) "You do not have to purchase a refund anticipation check (RAC) to get your tax
refund.";
 new text end

new text begin (ii) "Generally, the IRS can direct deposit your income tax refund to your personal
bank account within eight to 15 days after the IRS accepts your tax return for processing.";
 new text end

new text begin (iii) "If you choose to purchase a RAC, your tax return funds will generally be made
available to you within eight to 15 days.";
 new text end

new text begin (iv) "A RAC is not a loan.";
 new text end

new text begin (v) "The cost of the RAC is (fill in dollar amount).";
 new text end

new text begin (vi) "You can either pay for your RAC now or you can have it withheld from your
refund."; and
 new text end

new text begin (vii) "The cost of your tax return is not any more or any less if you purchase a RAC."
 new text end

new text begin (b) A tax preparer offering a refund anticipation check that uses a different product
name, including but not limited to refund transfer, must substitute the product name for
"RAC" in all the statements required under this subdivision.
 new text end

Subd. 5.

Itemized bill required.

A tax preparer must provide an itemized statement
of the charges for services, at least separately stating the charges for:

(1) return preparation; deleted text begin and
deleted text end

(2) providing or facilitating a refund anticipation loannew text begin ; and
new text end

new text begin (3) each fee associated with the provision of a refund anticipation checknew text end .

Subd. 5a.

Nongame wildlife checkoff.

A tax preparer must give written notice of
the option to contribute to the nongame wildlife management account in section 290.431
to corporate clients that file an income tax return and to individual clients who file an
income tax return or property tax refund claim form. This notification must be included
with information sent to the client at the same time as the preliminary worksheets or other
documents used in preparing the client's return and must include a line for displaying
contributions.

new text begin Subd. 5b. new text end

new text begin Right to rescind refund anticipation loan. new text end

new text begin (a) A client may rescind a
refund anticipation loan on or before the close of business on the next day of business
following execution of the loan agreement or receipt of the proceeds of the loan by:
 new text end

new text begin (1) providing written notification to the tax preparer of the rescission; and
 new text end

new text begin (2) returning the original check issued for the loan; or
 new text end

new text begin (3) tendering the amount of the loan in cash to the tax preparer.
 new text end

new text begin (b) The tax preparer may charge a fee for rescinding a refund anticipation loan
only if an account has been established at a financial institution to electronically receive
the refund and the financial institution has charged a fee to establish the account. The
allowable fee the tax preparer may charge the client rescinding the refund anticipation
loan may not exceed the fee charged to the tax preparer by the financial institution to
establish the account.
 new text end

Subd. 6.

Enforcement; penalties.

The commissioner may impose an administrative
penalty of not more than $1,000 per violation of subdivision 3,new text begin 3a,new text end 4, deleted text begin ordeleted text end 5new text begin , or 5b, provided
that a penalty may not be imposed for any conduct that is also subject to the tax return
preparer penalties in section 289A.60, subdivision 13new text end . The commissioner may terminate a
tax preparer's authority to transmit returns electronically to the state, if the commissioner
determines the tax preparer engaged in a pattern and practice of violating this section.
Imposition of a penalty under this subdivision is subject to the contested case procedure
under chapter 14. The commissioner shall collect the penalty in the same manner as the
income tax. Penalties imposed under this subdivision are public data.

Subd. 6a.

Exchange of data; State Board of Accountancy.

The State Board of
Accountancy shall refer to the commissioner complaints it receives about tax preparers
who are not subject to the jurisdiction of the State Board of Accountancy and who are
alleged to have violated the provisions of subdivisions 3 to 5new text begin and 5bnew text end .

Subd. 6b.

Exchange of data; Lawyers Board of Professional Responsibility.

The
Lawyers Board of Professional Responsibility may refer to the commissioner complaints
it receives about tax preparers who are not subject to its jurisdiction and who are alleged
to have violated the provisions of subdivisions 3 to 5new text begin and 5bnew text end .

Subd. 6c.

Exchange of data; commissioner.

The commissioner shall refer
complaints about tax preparers who are alleged to have violated the provisions of
subdivisions 3 to 5new text begin and 5bnew text end to:

(1) the State Board of Accountancy, if the tax preparer is under its jurisdiction; and

(2) the Lawyers Board of Professional Responsibility, if the tax preparer is under
its jurisdiction.

Subd. 6d.

Data private.

Information exchanged on individuals under subdivisions
6a to 6c are private data under section 13.02, subdivision 12, until such time as a penalty
is imposed as provided in section 326A.08 or by the Lawyers Board of Professional
Responsibility.

Subd. 7.

Enforcement; civil actions.

(a) Any violation of this section is an unfair,
deceptive, and unlawful trade practice within the meaning of section 8.31.new text begin An action taken
under section 8.31 is in the public interest.
new text end

(b) A client may bring a civil action seeking redress for a violation of this section in
the conciliation or the district court of the county in which unlawful action is alleged to
have been committed or where the respondent resides or has a principal place of business.

(c) A deleted text begin districtdeleted text end court finding for the plaintiff must awardnew text begin :
new text end

new text begin (1)new text end actual damagesdeleted text begin , includingdeleted text end new text begin ;
new text end

new text begin (2)new text end incidental and consequential damagesdeleted text begin ,deleted text end new text begin ;
new text end

new text begin (3) statutory damages of twice the sum of: (i) the tax preparation fees; and (ii) if the
plaintiff violated subdivision 3a, 4, or 5b, all interest and fees for a refund anticipation loan;
 new text end

new text begin (4)new text end reasonable attorney feesdeleted text begin ,deleted text end new text begin ;
new text end

new text begin (5)new text end court costsdeleted text begin ,deleted text end new text begin ;new text end and

new text begin (6)new text end any other equitable relief as the court considers appropriate.

Subd. 8.

new text begin Limited new text end exemptionsdeleted text begin ; enforcement provisionsdeleted text end .

The provisions of this
section, except for deleted text begin subdivisiondeleted text end new text begin subdivisions 3a,new text end 4new text begin , and 5bnew text end , do not apply to:

(1) an attorney admitted to practice under section 481.01;

(2) a certified public accountant or other person who is subject to the jurisdiction of
the State Board of Accountancy;

(3) an enrolled agent who has passed the special enrollment examination
administered by the Internal Revenue Service;new text begin or
new text end

deleted text begin (4) any fiduciary, or the regular employees of a fiduciary, while acting on behalf of
the fiduciary estate, the testator, trustor, grantor, or beneficiaries of them;
 deleted text end

deleted text begin (5) a tax preparer who provides tax preparation services for fewer than six clients
in a calendar year;
 deleted text end

deleted text begin (6) tax preparation services to a spouse, parent, grandparent, child, or sibling of
the tax preparer; and
 deleted text end

deleted text begin (7) the preparation by an employee of the tax return of the employee's employer
 deleted text end

new text begin (4) anyone who provides, or assists in providing, tax preparation services within
the scope of duties as an employee or supervisor of a person who is exempt under this
subdivisionnew text end .

Sec. 2.

Minnesota Statutes 2008, section 270C.56, subdivision 3, is amended to read:


Subd. 3.

Procedure for assessmentnew text begin ; claims for refundsnew text end .

new text begin (a) new text end The commissioner
may assess liability for the taxes described in subdivision 1 against a person liable
under this section. The assessment may be based upon information available to the
commissioner. It must be made within the prescribed period of limitations for assessing
the underlying tax, or within one year after the date of an order assessing underlying tax,
whichever period expires later. An order assessing personal liability under this section is
reviewable under section 270C.35 and is appealable to Tax Court.

new text begin (b) If the time for appealing the order has expired and a payment is made by or
collected from the person assessed on the order in excess of the amount lawfully due from
that person of any portion of the liability shown on the order, a claim for refund may be
made by that person within 120 days after any payment of the liability if the payment is
within three and one-half years after the date the order was issued. Claims for refund
under this paragraph are limited to the amount paid during the 120-day period. Any
amounts collected under paragraph (c) after a claim for refund is filed in order to satisfy
the unpaid balance of the assessment that is the subject of the claim will be returned if
the claim is allowed. There is no claim for refund available under this paragraph if the
assessment has previously been the subject of an administrative or Tax Court appeal, or a
denied claim for refund. The taxpayer may contest denial of the refund as provided in the
procedures governing claims for refunds under section 289A.50, subdivision 7.
 new text end

new text begin (c) new text end If a person has been assessed under this section for an amount for a given period
and the time for appeal has expirednew text begin , regardless of whether an action contesting denial of a
claim for refund has been filed under paragraph (b),new text end or there has been a final determination
that the person is liable, collection action is not stayed pursuant to section 270C.33,
subdivision 5, for new text begin that assessment or for new text end subsequent assessments of additional amounts for
the same person for the same period and tax type.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders issued after the date of
final enactment.
 new text end

Sec. 3.

Minnesota Statutes 2008, section 287.08, is amended to read:


287.08 TAX, HOW PAYABLE; RECEIPTS.

(a) The tax imposed by sections 287.01 to 287.12 must be paid to the treasurer of
any county in this state in which the real property or some part is located at or before
the time of filing the mortgage for record. The treasurer shall endorse receipt on the
mortgage and the receipt is conclusive proof that the tax has been paid in the amount
stated and authorizes any county recorder or registrar of titles to record the mortgage. Its
form, in substance, shall be "registration tax hereon of ..................... dollars paid." If the
mortgage is exempt from taxation the endorsement shall, in substance, be "exempt from
registration tax." In either case the receipt must be signed by the treasurer. In case the
treasurer is unable to determine whether a claim of exemption should be allowed, the tax
must be paid as in the case of a taxable mortgage. For documents submitted electronically,
the endorsements and tax amount shall be affixed electronically and no signature by the
treasurer will be required. The actual payment method must be arranged in advance
between the submitter and the receiving county.

(b) The county treasurer may refund in whole or in part any mortgage registry tax
overpayment if a written application by the taxpayer is submitted to the county treasurer
within 3-1/2 years from the date of the overpayment. If the county has not issued a denial
of the application, the taxpayer may bring an action in Tax Court in the county in which
the tax was paid at any time after the expiration of six months from the time that the
application was submitted. A denial of refund may be appealed within 60 days from
the date of the denial by bringing an action in Tax Court in the county in which the tax
was paid. The action is commenced by the serving of a petition for relief on the county
treasurer, and by filing a copy with the court. The county attorney shall defend the action.
The county treasurer shall notify the treasurer of each county that has or would receive a
portion of the tax as paid.

(c) If the county treasurer determines a refund should be paid, or if a refund is
ordered by the court, the county treasurer of each county that actually received a portion
of the tax shall immediately pay a proportionate share of three percent of the refund
using any available county funds. The county treasurer of each county that received, or
would have received, a portion of the tax shall also pay their county's proportionate share
of the remaining 97 percent of the court-ordered refund on or before the 20th day of the
following month using solely the mortgage registry tax funds that would be paid to the
commissioner of revenue on that date under section 287.12. If the funds on hand under
this procedure are insufficient to fully fund 97 percent of the court-ordered refund, the
county treasurer of the county in which the action was brought shall file a claim with the
commissioner of revenue under section 16A.48 for the remaining portion of 97 percent of
the refund, and shall pay over the remaining portion upon receipt of a warrant from the
state issued pursuant to the claim.

(d) When any mortgage covers real property located in more than one county in this
state the total tax must be paid to the treasurer of the county where the mortgage is first
presented for recording, and the payment must be receipted as provided in paragraph (a).
If the principal debt or obligation secured by such a multiple county mortgage exceeds
deleted text begin $1,000,000deleted text end new text begin $10,000,000new text end , the nonstate portion of the tax must be divided and paid over by
the county treasurer receiving it, on or before the 20th day of each month after receipt,
to the county or counties entitled in the ratio that the market value of the real property
covered by the mortgage in each county bears to the market value of all the real property
in this state described in the mortgage. In making the division and payment the county
treasurer shall send a statement giving the description of the real property described in
the mortgage and the market value of the part located in each county. For this purpose,
the treasurer of any county may require the treasurer of any other county to certify to the
former the market valuation of any tract of real property in any mortgage.

(e) The mortgagor must pay the tax imposed by sections 287.01 to 287.12. The
mortgagee may undertake to collect and remit the tax on behalf of the mortgagor. If the
mortgagee collects money from the mortgagor to remit the tax on behalf of the mortgagor,
the mortgagee has a fiduciary duty to remit the tax on behalf of the mortgagor as to the
amount of the tax collected for that purpose and the mortgagor is relieved of any further
obligation to pay the tax as to the amount collected by the mortgagee for this purpose.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 4.

Minnesota Statutes 2008, section 291.005, subdivision 1, is amended to read:


Subdivision 1.

Scope.

Unless the context otherwise clearly requires, the following
terms used in this chapter shall have the following meanings:

(1) "Federal gross estate" means the gross estate of a decedent as valued and
otherwise determined for federal estate tax purposes by federal taxing authorities pursuant
to the provisions of the Internal Revenue Code.

(2) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
excluding therefrom any property included therein which has its situs outside Minnesota,
and (b) including therein any property omitted from the federal gross estate which is
includable therein, has its situs in Minnesota, and was not disclosed to federal taxing
authorities.

(3) "Personal representative" means the executor, administrator or other person
appointed by the court to administer and dispose of the property of the decedent. If there
is no executor, administrator or other person appointed, qualified, and acting within this
state, then any person in actual or constructive possession of any property having a situs in
this state which is included in the federal gross estate of the decedent shall be deemed
to be a personal representative to the extent of the property and the Minnesota estate tax
due with respect to the property.

(4) "Resident decedent" means an individual whose domicile at the time of death
was in Minnesota.

(5) "Nonresident decedent" means an individual whose domicile at the time of
death was not in Minnesota.

(6) "Situs of property" means, with respect to real property, the state or country in
which it is located; with respect to tangible personal property, the state or country in which
it was normally kept or located at the time of the decedent's death; and with respect to
intangible personal property, the state or country in which the decedent was domiciled
at death. new text begin For a nonresident decedent with an ownership interest in a pass-through entity
with assets that include real or tangible personal property, situs of the real or tangible
personal property is determined as if the pass-through entity does not exist and the real
or tangible personal property is personally owned by the decedent. If the pass-through
entity is owned by a person or persons in addition to the decedent, ownership of the
property is attributed to the decedent in proportion to the decedent's capital ownership
share of the pass-through entity.
new text end

(7) "Commissioner" means the commissioner of revenue or any person to whom the
commissioner has delegated functions under this chapter.

(8) "Internal Revenue Code" means the United States Internal Revenue Code of
1986, as amended through February 13, 2008.

(9) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as
defined by section 2011(b)(3) of the Internal Revenue Code, increased by the amount of
deduction for state death taxes allowed under section 2058 of the Internal Revenue Code.

new text begin (10) "Pass-through entity" includes the following:
 new text end

new text begin (i) an entity electing S corporation status under section 1362 of the Internal Revenue
Code;
 new text end

new text begin (ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
 new text end

new text begin (iii) a single member limited liability company or similar entity, regardless of
whether it is taxed as an association or is disregarded for federal income tax purposes
under Code of Federal Regulations, title 26, section 301.7701-3; or
 new text end

new text begin (iv) a trust.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for estates of decedents dying after
December 31, 2008.
 new text end

Sec. 5.

Minnesota Statutes 2008, section 295.52, subdivision 1, is amended to read:


Subdivision 1.

Hospital tax.

A tax is imposed on each hospital equal to deleted text begin twodeleted text end new text begin ...new text end
percent of its gross revenues.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for gross revenues received after
December 31, 2008, except the rate imposed for revenues received during calendar year
2009 is ....
 new text end

Sec. 6.

Minnesota Statutes 2008, section 295.52, subdivision 1a, is amended to read:


Subd. 1a.

Surgical center tax.

A tax is imposed on each surgical center equal to
deleted text begin twodeleted text end new text begin ...new text end percent of its gross revenues.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for gross revenues received after
December 31, 2008, except the rate imposed for revenues received during calendar year
2009 is ....
 new text end

Sec. 7.

Minnesota Statutes 2008, section 297E.06, subdivision 4, is amended to read:


Subd. 4.

Annual auditnew text begin , certified inventory, and cash countnew text end .

(a) An organization
licensed under chapter 349 with gross receipts from lawful gambling of more than
deleted text begin $300,000deleted text end new text begin $500,000new text end in any year must have an annual financial audit of its lawful gambling
activities and funds for that year. deleted text begin An organization licensed under chapter 349 with gross
receipts from lawful gambling of more than $150,000 but not more than $300,000 in any
year must have an annual financial review of its lawful gambling activities and funds for
that year.
deleted text end

new text begin (b) The commissioner may require a financial audit of the lawful gambling activities
and funds of an organization licensed under chapter 349, with gross receipts less than
$500,000 annually, when an organization has:
 new text end

new text begin (1) failed to timely file required gambling tax returns;
 new text end

new text begin (2) failed to timely pay the gambling tax or regulatory fee;
 new text end

new text begin (3) filed fraudulent gambling tax returns;
 new text end

new text begin (4) failed to take corrective actions required by the commissioner; or
 new text end

new text begin (5) failed to otherwise comply with chapter 297E.
 new text end

new text begin (c)new text end Audits deleted text begin and financial reviewsdeleted text end under this subdivision must be performed by an
independent accountant licensed by the state of Minnesota.

new text begin (d) An organization licensed under chapter 349 must perform an annual certified
inventory and cash count at the end of its fiscal year and submit the report to the
commissioner within 30 days after the end of its fiscal year. The report shall be on a form
prescribed by the commissioner.
 new text end

deleted text begin (b)deleted text end new text begin (e) new text end The commissioner of revenue shall prescribe standards for new text begin the new text end audits deleted text begin and
financial reviewdeleted text end new text begin , certified inventory, and cash count reportsnew text end required under this subdivision.
The standards may vary based on the gross receipts of the organization. The standards
must incorporate and be consistent with standards prescribed by the American Institute
of Certified Public Accountants. A complete, true, and correct copy of the deleted text begin auditdeleted text end new text begin audits,
certified inventory, and cash countnew text end report must be filed as prescribed by the commissioner.

Sec. 8.

Minnesota Statutes 2008, section 297H.06, subdivision 1, is amended to read:


Subdivision 1.

Certain surcharges or fees.

The amount of a surcharge, fee, or
charge established pursuant to section 115A.919, 115A.921, 115A.923, 400.08, 473.811,
deleted text begin ordeleted text end 473.843new text begin , or a service charge by a home rule charter city that owns and operates a solid
waste-to-energy resource recovery facility,new text end is exempt from the solid waste management
tax. The exemption does not apply to the tax imposed on market price under section
297H.02, subdivision 1, paragraphs (b) and (c), or section 297H.03, subdivision 1,
paragraphs (b) and (c).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes imposed after March 31,
2007.
 new text end

Sec. 9.

Minnesota Statutes 2008, section 309.53, subdivision 3, is amended to read:


Subd. 3.

Financial statement requirements.

The financial statement shall include
a balance sheet, statement of income and expense, and statement of functional expenses,
shall be consistent with forms furnished by the attorney general, and shall be prepared in
accordance with generally accepted accounting principles so as to make a full disclosure
of the following, including necessary allocations between each item and the basis of
such allocations:

(a) total receipts and total income from all sources;

(b) cost of management and general;

(c) program services;

(d) cost of fund-raising;

(e) cost of public education;

(f) funds or properties transferred out of state, with explanation as to recipient and
purpose;

(g) total net amount disbursed or dedicated within this state, broken down into total
amounts disbursed or dedicated for each major purpose, charitable or otherwise;

(h) names of professional fund-raisers used during the accounting year and the
financial compensation and profit resulting to each professional fund-raiser; and

(i) a list of the five highest paid directors, officers, and employees of the organization
and its related organizations, as that term is defined by section 317A.011, subdivision 18,
that receive total compensation of more than $50,000, together with the total compensation
paid to each. Total compensation shall include salaries, fees, bonuses, fringe benefits,
severance payments, and deferred compensation paid by the charitable organization and
all related organizations as that term is defined by section 317A.011, subdivision 18.

Unless otherwise required by this subdivision, the financial statement need not be
certified.

A financial statement of a charitable organization which has received total revenue
in excess of deleted text begin $350,000deleted text end new text begin $750,000new text end for the 12 months of operation covered by the statement
shall be accompanied by an audited financial statement prepared in accordance with
generally accepted accounting principles that has been examined by an independent
certified public accountant for the purpose of expressing an opinion. In preparing the audit
the certified public accountant shall take into consideration capital, endowment or other
reserve funds, if any, controlled by the charitable organization. For purposes of calculating
the deleted text begin $350,000deleted text end new text begin $750,000new text end total revenue threshold provided by this subdivision, the value
of donated food to a nonprofit food shelf may not be included if the food is donated for
subsequent distribution at no charge, and not for resale.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 10.

Minnesota Statutes 2008, section 349.1641, is amended to read:


349.1641 LICENSES; SUMMARY SUSPENSION.

The board may (1) summarily suspend the license of an organization that is more
than deleted text begin three monthsdeleted text end new text begin 45 daysnew text end late in filing a tax return or in paying a tax required under
chapter 297E and may keep the suspension in effect until all required returns are filed and
required taxes are paid; (2) summarily suspend for not more than 90 days any license
issued by the board or director for what the board determines are actions detrimental to the
integrity of lawful gambling in Minnesota; and (3) summarily suspend the license of a
gambling manager who has failed to receive the training required under section 349.167,
subdivision 4, clause (2), and may keep the suspension in effect until the gambling
manager passes an examination prepared and administered by the board. The examination
does not qualify as continuing education credit for the next calendar year. The board must
notify the licensee at least 14 days before suspending the license under this section. If a
license is summarily suspended under this section, a contested case hearing on the merits
must be held within 20 days of the issuance of the order of suspension, unless the parties
agree to a later hearing date. The administrative law judge's report must be issued within
20 days after the close of the hearing record. In all cases involving summary suspension,
the board must issue its final decision within 30 days after receipt of the report of the
administrative law judge and subsequent exceptions and argument under section 14.61.
When an organization's license is suspended under this section, the board shall within
three days notify all municipalities in which the organization's gambling premises are
located and all licensed distributors in the state.

Sec. 11.

Minnesota Statutes 2008, section 349.19, subdivision 9, is amended to read:


Subd. 9.

Annual new text begin financial new text end audit; filing requirement.

An organization licensed
under this chapter must have an annual financial audit deleted text begin or financial reviewdeleted text end when required
by section 297E.06, subdivision 4.

Sec. 12.

Minnesota Statutes 2008, section 423A.02, subdivision 1b, is amended to read:


Subd. 1b.

Additional amortization state aid.

(a) Annually, on October 1, the
commissioner of revenue shall allocate the additional amortization state aid transferred
under section 69.021, subdivision 11, to:

(1) all police or salaried firefighters relief associations governed by and in full
compliance with the requirements of section 69.77, that had an unfunded actuarial accrued
liability in the actuarial valuation prepared under sections 356.215 and 356.216 as of the
preceding December 31;

(2) all local police or salaried firefighter consolidation accounts governed by chapter
353A that are certified by the executive director of the public employees retirement
association as having for the current fiscal year an additional municipal contribution
amount under section 353A.09, subdivision 5, paragraph (b), and that have implemented
section 353A.083, subdivision 1, if the effective date of the consolidation preceded May
24, 1993, and that have implemented section 353A.083, subdivision 2, if the effective date
of the consolidation preceded June 1, 1995; and

(3) the municipalities that are required to make an additional municipal contribution
under section 353.665, subdivision 8, for the duration of the required additional
contribution.

(b) The commissioner shall allocate the state aid on the basis of the proportional share
of the relief association or consolidation account of the total unfunded actuarial accrued
liability of all recipient relief associations and consolidation accounts as of December 31,
1993, for relief associations, and as of June 30, 1994, for consolidation accounts.

(c) Beginning October 1, 2000, and annually thereafter, the commissioner shall
allocate the state aid, including any state aid in excess of the limitation in subdivision
4, on the following basis:

(1) 64.5 percent to the municipalities to which section 353.665, subdivision
8, paragraph (b), or 353A.09, subdivision 5, paragraph (b), apply for distribution in
accordance with paragraph (b) and subject to the limitation in subdivision 4;

(2) 34.2 percent to the city of Minneapolis to fund any unfunded actuarial accrued
liability in the actuarial valuation prepared under sections 356.215 and 356.216 as of the
preceding December 31 for the Minneapolis Police Relief Association or the Minneapolis
Fire Department Relief Association; and

(3) 1.3 percent to the city of Virginia to fund any unfunded actuarial accrued liability
in the actuarial valuation prepared under sections 356.215 and 356.216 as of the preceding
December 31 for the Virginia Fire Department Relief Association.

If there is no unfunded actuarial accrued liability in both the Minneapolis Police
Relief Association and the Minneapolis Fire Department Relief Association as disclosed
in the most recent actuarial valuations for the relief associations prepared under sections
356.215 and 356.216, the commissioner shall allocate that 34.2 percent of the aid as
follows: 49 percent to the Teachers Retirement Association, 21 percent to the St. Paul
Teachers Retirement Fund Association, and 30 percent as additional funding to support
minimum fire state aid for volunteer firefighters relief associations. If there is no unfunded
actuarial accrued liability in the Virginia Fire Department Relief Association as disclosed
in the most recent actuarial valuation for the relief association prepared under sections
356.215 and 356.216, the commissioner shall allocate that 1.3 percent of the aid as
follows: 49 percent to the Teachers Retirement Association, 21 percent to the St. Paul
Teachers Retirement Fund Association, and 30 percent as additional funding to support
minimum fire state aid for volunteer firefighters relief associations. Upon the final
payment to municipalities required by section 353.665, subdivision 8, paragraph (b),
or 353A.09, subdivision 5, paragraph (b), the commissioner shall allocate that 64.5
percent of the aid as follows: 20 percent to the St. Paul Teachers Retirement Fund
Association, 20 percent to the city of Minneapolis to fund any unfunded actuarial accrued
liability in the actuarial valuation proposed under sections 356.215 and 356.216 as of the
preceding December 31 for the Minneapolis Police Relief Association or the Minneapolis
Firefighters Relief Association, 20 percent for the city of Duluth to pay for any costs
associated with the police and firefighters pensions, and 40 percent as additional funding to
support minimum fire state aid for volunteer firefighters relief associations. The allocation
must be made by the commissioner at the same time and under the same procedures
as specified in subdivision 3. With respect to the St. Paul Teachers Retirement Fund
Association, annually, beginning on July 1, 2005, if the applicable teacher's association
five-year average time-weighted rate of investment return does not equal or exceed the
performance of a composite portfolio assumed passively managed (indexed) invested ten
percent in cash equivalents, 60 percent in bonds and similar debt securities, and 30 percent
in domestic stock calculated using the formula under section 11A.04, clause (11), the aid
allocation to that retirement fund under this section ceases until the five-year annual rate
of investment return equals or exceeds the performance of that composite portfolio.

(d) The amounts required under this subdivision are new text begin the amounts new text end annually
appropriated to the commissioner of revenuenew text begin under section 69.021, subdivision 11,
paragraph (e)new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for aid payable in
2003 and thereafter.
 new text end

Sec. 13.

Minnesota Statutes 2008, section 423A.02, subdivision 3, is amended to read:


Subd. 3.

Reallocation of amortization or supplementary amortization state
aid.

(a) Seventy percent of the difference between $5,720,000 and the current year
amortization aid deleted text begin ordeleted text end new text begin andnew text end supplemental amortization aid distributed under subdivisions 1
and 1a that is not distributed for any reason to a municipality for use by a local police
or salaried fire relief association must be distributed by the commissioner of revenue
according to this paragraph. The commissioner shall distribute 70 percent of the amounts
derived under this paragraph to the Teachers Retirement Association and 30 percent to the
St. Paul Teachers Retirement Fund Association to fund the unfunded actuarial accrued
liabilities of the respective funds. These payments shall be made on or before June 30
each fiscal year. deleted text begin The amount required under this paragraph is appropriated annually from
the general fund to the commissioner of revenue.deleted text end If the St. Paul Teachers Retirement Fund
Association becomes fully funded, its eligibility for this aid ceases. Amounts remaining
in the undistributed balance account at the end of the biennium if aid eligibility ceases
cancel to the general fund.

(b) In order to receive amortization and supplementary amortization aid under
paragraph (a), Independent School District No. 625, St. Paul, must make contributions
to the St. Paul Teachers Retirement Fund Association in accordance with the following
schedule:

Fiscal Year
 Amount
1996
 $
 0
1997
 $
 0
1998
 $
 200,000
1999
 $
 400,000
2000
 $
 600,000
2001 and thereafter
 $
 800,000

(c) Special School District No. 1, Minneapolis, and the city of Minneapolis must
each make contributions to the Teachers Retirement Association in accordance with the
following schedule:

Fiscal Year
 City amount
 School district
amount
1996
 $
 0
 $
 0
1997
 $
 0
 $
 0
1998
 $
 250,000
 $
 250,000
1999
 $
 400,000
 $
 400,000
2000
 $
 550,000
 $
 550,000
2001
 $
 700,000
 $
 700,000
2002
 $
 850,000
 $
 850,000
2003 and thereafter
 $
 1,000,000
 $
 1,000,000

(d) Money contributed under paragraph (a) and either paragraph (b) or (c), as
applicable, must be credited to a separate account in the applicable teachers retirement
fund and may not be used in determining any benefit increases. The separate account
terminates for a fund when the aid payments to the fund under paragraph (a) cease.

(e) Thirty percent of the difference between $5,720,000 and the current year
amortization aid deleted text begin ordeleted text end new text begin andnew text end supplemental amortization aid under subdivisions 1 and 1a that
is not distributed for any reason to a municipality for use by a local police or salaried
firefighter relief association must be distributed under section 69.021, subdivision 7,
paragraph (d), as additional funding to support a minimum fire state aid amount for
volunteer firefighter relief associations. deleted text begin The amount required under this paragraph is
appropriated annually to the commissioner of revenue.deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for aid payable in
2003 and thereafter.
 new text end

Sec. 14.

Minnesota Statutes 2008, section 423A.02, is amended by adding a
subdivision to read:


new text begin Subd. 3a. new text end

new text begin Appropriations for amortization state aid; supplementary
amortization state aid; and amortization state aid and supplementary state aid
reallocations. new text end

new text begin $4,720,000 is annually appropriated from the general fund to the
commissioner of revenue for amortization state aid under subdivision 1 and for the
reallocation of amortization aid under subdivision 3. $1,000,000 is annually appropriated
from the general fund to the commissioner of revenue for supplementary amortization
state aid under subdivision 1a, and for the reallocation of supplementary amortization state
aid under subdivision 3.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for aid payable in
2003 and thereafter.
 new text end

Sec. 15. new text begin APPROPRIATION.
new text end

new text begin $164,081,000 is appropriated from the general fund to the commissioner of
management and budget to be used for the purposes of 2009 S.F. No. 2078, if enacted.
 new text end