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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1988 

                        CHAPTER 615-H.F.No. 2568 
           An act relating to agriculture; providing for terms 
          and compensation for members of the Minnesota 
          agricultural and economic development board; changing 
          and clarifying the small business development loan 
          portion of the agricultural resource loan guarantee 
          program; establishing requirements for revenues that 
          can be used in a local revolving fund; amending 
          Minnesota Statutes 1987 Supplement, sections 41A.02, 
          subdivisions 3 and 16; 41A.036, by adding 
          subdivisions; and 116N.08, subdivision 8. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1987 Supplement, section 
41A.02, subdivision 3, is amended to read:  
    Subd. 3.  [MINNESOTA AGRICULTURAL AND ECONOMIC DEVELOPMENT 
BOARD; BOARD.] "Minnesota agricultural and economic development 
board" or "board" consists of the commissioner of finance as 
chair, the commissioner of agriculture, the commissioner of 
energy and economic development, the director of the pollution 
control agency, the president of the Greater Minnesota 
Corporation or the president's designee, and two public members 
with experience in finance, appointed by the Greater Minnesota 
Corporation.  The membership terms, compensation, removal, and 
filling of vacancies of public members of the board are as 
provided in section 15.0575. 
    Sec. 2.  Minnesota Statutes 1987 Supplement, section 
41A.02, subdivision 16, is amended to read:  
    Subd. 16.  [ELIGIBLE SMALL BUSINESS.] "Eligible small 
business" means: 
    (1) an enterprise determined by the board to constitute a 
small business concern as defined in regulations of the United 
States Small Business Administration under United States Code, 
title 15, sections 631 to 647; or 
    (2) a business an enterprise eligible to receive assistance 
under section 12 41A.036. 
    Sec. 3.  Minnesota Statutes 1987 Supplement, section 
41A.036, is amended by adding a subdivision to read: 
    Subd. 4.  [EXEMPTION FROM LIMITATION.] If the board 
determines that a revenue-producing enterprise is eligible for 
special assistance, the $1,000,000 limitation established in 
subdivision 1 does not apply. 
    Sec. 4.  Minnesota Statutes 1987 Supplement, section 
41A.036, is amended by adding a subdivision to read: 
    Subd. 5.  [DESIGNATION; CRITERIA.] A revenue-producing 
enterprise is not eligible to receive special assistance unless 
the board has passed a resolution designating the 
revenue-producing enterprise as being in need of special 
assistance.  The resolution must include findings that the 
designation and receipt of the special assistance will be of 
exceptional benefit to the state of Minnesota in that at least 
three of the following criteria are met: 
    (1) to expand or remain in Minnesota, the revenue-producing 
enterprise has demonstrated that it cannot obtain suitable 
financing from other sources; 
    (2) special assistance will enable a revenue-producing 
enterprise not currently located in Minnesota to locate a 
facility in Minnesota that directly increases the number of jobs 
in the state; 
    (3) the revenue-producing enterprise will create or retain 
significant numbers of jobs in a Minnesota community; 
    (4) the revenue-producing enterprise has a significant 
potential for growth in jobs or economic activities in Minnesota 
during the ensuing five-year period; and 
    (5) the revenue-producing enterprise will maintain a 
significant level of productivity in Minnesota during the 
ensuing five-year period. 
    Sec. 5.  Minnesota Statutes 1987 Supplement, section 
41A.036, is amended by adding a subdivision to read: 
    Subd. 6.  [SET ASIDE.] The board shall reserve at least 
$3,000,000 for the purpose of making or purchasing small 
business development loans not exceeding $250,000 in principal 
amount with respect to small business loans made or purchased by 
the board and not exceeding $250,000 in principal amount with 
respect to the board's share when the board participates in 
making or purchasing small business loans. 
    Sec. 6.  Minnesota Statutes 1987 Supplement, section 
116N.08, subdivision 8, is amended to read:  
    Subd. 8.  [LOCAL GOVERNMENTAL UNIT LOANS.] A local 
governmental unit may receive a loan under this section if the 
local governmental unit has established a local revolving loan 
fund and can provide at least an equal match to the loan 
received from a regional organization.  For the purpose of 
providing the match to establish the local revolving loan fund, 
the local governmental unit may use any unencumbered money in 
the general fund of the unit.  Revenues from tax increments 
derived from a district located within the boundaries of the 
local governmental unit may be used to fund a second local 
revolving loan fund only if (1) those revenues are loaned in a 
manner authorized in the district's tax increment financing plan 
to a business located within the tax increment district, and (2) 
the revenues are deposited in a loan fund that is separate from 
the loan fund in which general fund money is established.  The 
local governmental unit may deposit up to $50,000 of local 
public money in each of the local revolving funds that may be 
established under this subdivision.  The maximum loan available 
to a local governmental unit under this section is $50,000.  The 
money loaned to a local governmental unit by a regional 
organization must be matched by the local revolving loan fund 
and used to provide loans to businesses to promote local 
economic development.  One-half of the money loaned to a local 
governmental unit under this section by a regional organization 
must be repaid to the rural rehabilitation revolving fund.  
One-half of the money may be retained by the local governmental 
unit's revolving loan fund for further distribution by the local 
governmental unit. 
    Sec. 7.  [REPEALER.] 
    Section 5 is repealed July 1, 1989. 
    Sec. 8.  [EFFECTIVE DATE.] 
    Section 1 is effective the day following final enactment. 
    Approved April 24, 1988