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

CHAPTER 216--H.F.No. 2695
An act
relating to economic development; encouraging job creation; allowing
tax credits for small business investment and historic structure rehabilitation;
expanding the use of special assessment for certain energy improvements;
expanding the permitted use of tax increment financing for certain projects;
repealing restrictions on city of Bloomington's development of the Mall of
America site; providing for tax system and debt collection management;
establishing voluntary energy improvement financing program for local
governments, transportation infrastructure loans, qualified green building
and sustainable design projects, a create automotive recovery zone, and tax
increment financing districts; modifying apprenticeship training facility property
tax exemption and production tax distributions; repealing lower income fuel
credit; providing a property tax exemption for certain property leased to charter
schools; modifying research and development credit; conforming to changes
made to the Internal Revenue Code; appropriating money;amending Minnesota
Statutes 2008, sections 13.4967, by adding a subdivision; 272.02, subdivision
42; 290.068; 290.095, subdivision 11; 297A.815, subdivision 3; 297I.20,
by adding a subdivision; 429.021, subdivision 1; 429.101, subdivision 1;
446A.085, by adding a subdivision; 469.174, by adding a subdivision; 469.175,
by adding a subdivision; 469.176, subdivisions 1b, 4c, by adding subdivisions;
469.310, subdivisions 6, 11, by adding subdivisions; 469.312, subdivisions 1,
3; 469.314, subdivisions 1, 4; 469.315; Minnesota Statutes 2009 Supplement,
sections 272.02, subdivision 86; 289A.02, subdivision 7; 290.01, subdivisions
19, as amended, 31; 290A.03, subdivision 15; 291.005, subdivision 1; 298.227;
298.28, subdivision 4; 298.294; 469.153, subdivision 2; 469.174, subdivision 22;
469.312, subdivision 5; Laws 1986, chapter 391, section 1; Laws 1995, chapter
264, article 5, sections 44, subdivision 4, as amended; 45, subdivision 1, as
amended; Laws 2006, chapter 259, article 10, section 14, subdivision 3; Laws
2008, chapter 366, article 5, sections 28, subdivisions 1, 2; 29, subdivisions
1, 2, 4; Laws 2009, chapter 78, article 7, section 2; proposing coding for new
law in Minnesota Statutes, chapters 116J; 216C; 290; 469; repealing Minnesota
Statutes 2008, section 290.06, subdivision 34; Laws 1996, chapter 464, article 1,
section 8, subdivision 5.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

    Section 1. Minnesota Statutes 2008, section 13.4967, is amended by adding a
subdivision to read:
    Subd. 8. Small business investment tax credit. Data related to small business
investment tax credit certifications and certification of qualified small businesses, qualified
investors, and qualified funds, are classified in section 116J.8737.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 2. [116J.8737] SMALL BUSINESS INVESTMENT TAX CREDIT.
    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
have the meanings given.
(b) "Qualified small business" means a business that has been certified by the
commissioner under subdivision 2.
(c) "Qualified investor" means an investor who has been certified by the
commissioner under subdivision 3.
(d) "Qualified fund" means a pooled angel investment network fund that has been
certified by the commissioner under subdivision 4.
(e) "Qualified investment" means a cash investment in a qualified small business
of a minimum of:
(1) $10,000 in a calendar year by a qualified investor; or
(2) $30,000 in a calendar year by a qualified fund.
A qualified investment must be made in exchange for common stock, a partnership
or membership interest, preferred stock, debt with mandatory conversion to equity, or an
equivalent ownership interest as determined by the commissioner.
(f) "Family" means a family member within the meaning of the Internal Revenue
Code, section 267(c)(4).
(g) "Pass-through entity" means a corporation that for the applicable taxable year is
treated as an S corporation or a general partnership, limited partnership, limited liability
partnership, trust, or limited liability company and which for the applicable taxable year is
not taxed as a corporation under chapter 290.
    Subd. 2. Certification of qualified small businesses. (a) Businesses may apply
to the commissioner for certification as a qualified small business for a calendar year.
The application must be in the form and be made under the procedures specified by the
commissioner, accompanied by an application fee of $150. Application fees are deposited
in the small business investment tax credit administration account in the special revenue
fund. The application for certification for 2010 must be made available on the department's
Web site by August 1, 2010. Applications for subsequent years' certification must be made
available on the department's Web site by November 1 of the preceding year.
(b) Within 30 days of receiving an application for certification under this subdivision,
the commissioner must either certify the business as satisfying the conditions required of a
qualified small business, request additional information from the business, or reject the
application for certification. If the commissioner requests additional information from the
business, the commissioner must either certify the business or reject the application within
30 days of receiving the additional information. If the commissioner neither certifies the
business nor rejects the application within 30 days of receiving the original application or
within 30 days of receiving the additional information requested, whichever is later, then
the application is deemed rejected, and the commissioner must refund the $150 application
fee. A business that applies for certification and is rejected may reapply.
(c) To receive certification, a business must satisfy all of the following conditions:
(1) the business has its headquarters in Minnesota;
(2) at least 51 percent of the business's employees are employed in Minnesota, and
51 percent of the business's total payroll is paid or incurred in the state;
(3) the business is engaged in, or is committed to engage in, innovation in Minnesota
in one of the following as its primary business activity:
(i) using proprietary technology to add value to a product, process, or service in a
qualified high-technology field;
(ii) researching or developing a proprietary product, process, or service in a qualified
high-technology field; or
(iii) researching, developing, or producing a new proprietary technology for use in
the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation;
(4) other than the activities specifically listed in clause (3), 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;
(5) the business has fewer than 25 employees;
(6) 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, except that this requirement
must be reduced proportionately for employees who work less than full-time, and does not
apply to an executive, officer, or member of the board of the business, or to any employee
who owns, controls, or holds power to vote more than 20 percent of the outstanding
securities of the business;
(7) the business has not been in operation for more than ten years;
(8) the business has not previously received private equity investments of more
than $2,000,000; and
    (9) the business is not an entity disqualified under section 80A.50, paragraph (b),
clause (3).
(d) In applying the limit under paragraph (c), clause (5), the employees in all
members of the unitary business, as defined in section 290.17, subdivision 4, must be
included.
(e) In order for a qualified investment in a business to be eligible for tax credits, the
business must have applied for and received certification for the calendar year in which
the investment was made prior to the date on which the qualified investment was made.
(f) The commissioner must maintain a list of businesses certified under this
subdivision for the calendar year and make the list accessible to the public on the
department's Web site.
(g) For purposes of this subdivision, the following terms have the meanings given:
(1) "qualified high-technology field" includes aerospace, agricultural processing,
renewable energy, energy efficiency and conservation, environmental engineering, food
technology, cellulosic ethanol, information technology, materials science technology,
nanotechnology, telecommunications, biotechnology, medical device products,
pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar
fields; and
(2) "proprietary technology" means the technical innovations that are unique and
legally owned or licensed by a business and includes, without limitation, those innovations
that are patented, patent pending, a subject of trade secrets, or copyrighted.
    Subd. 3. Certification of qualified investors. (a) Investors may apply to the
commissioner for certification as a qualified investor for a taxable year. The application
must be in the form and be made under the procedures specified by the commissioner,
accompanied by an application fee of $350. Application fees are deposited in the small
business investment tax credit administration account in the special revenue fund. The
application for certification for 2010 must be made available on the department's Web
site by August 1, 2010. Applications for subsequent years' certification must be made
available on the department's Web site by November 1 of the preceding year.
(b) Within 30 days of receiving an application for certification under this subdivision,
the commissioner must either certify the investor as satisfying the conditions required
of a qualified investor, request additional information from the investor, or reject the
application for certification. If the commissioner requests additional information from the
investor, the commissioner must either certify the investor or reject the application within
30 days of receiving the additional information. If the commissioner neither certifies the
investor nor rejects the application within 30 days of receiving the original application or
within 30 days of receiving the additional information requested, whichever is later, then
the application is deemed rejected, and the commissioner must refund the $350 application
fee. An investor who applies for certification and is rejected may reapply.
(c) To receive certification, an investor must certify to the commissioner that the
investor will only invest in a transaction that is exempt under section 80A.46, clause (13)
or (14), or in a security registered under section 80A.50, paragraph (b).
(d) In order for a qualified investment in a qualified small business to be eligible
for tax credits, a qualified investor who makes the investment must have applied for
and received certification for the calendar year prior to making the qualified investment,
except in the case of an investor who is not an accredited investor, within the meaning of
Regulation D of the Securities and Exchange Commission, Code of Federal Regulations,
title 17, section 230.501, paragraph (a), application for certification may be made within
30 days after making the qualified investment.
    Subd. 4. Certification of qualified funds. (a) A pass-through entity may apply to
the commissioner for certification as a qualified fund for a calendar year. The application
must be in the form and be made under the procedures specified by the commissioner,
accompanied by an application fee of $1,000. Application fees are deposited in the small
business investment tax credit administration account in the special revenue fund. The
application for certification for 2010 of qualified funds must be made available on the
department's Web site by August 1, 2010. Applications for subsequent years' certification
must be made available by November 1 of the preceding year.
(b) Within 30 days of receiving an application for certification under this subdivision,
the commissioner must either certify the fund as satisfying the conditions required of a
qualified fund, request additional information from the fund, or reject the application
for certification. If the commissioner requests additional information from the fund,
the commissioner must either certify the fund or reject the application within 30 days
of receiving the additional information. If the commissioner neither certifies the fund
nor rejects the application within 30 days of receiving the original application or within
30 days of receiving the additional information requested, whichever is later, then the
application is deemed rejected, and the commissioner must refund the $1,000 application
fee. A fund that applies for certification and is rejected may reapply.
(c) To receive certification, a fund must:
(1) invest or intend to invest in qualified small businesses;
(2) be organized as a pass-through entity; and
(3) have at least three separate investors, all of whom satisfy the conditions in
subdivision 3, paragraph (c).
(d) Investments in the fund may consist of equity investments or notes that pay
interest or other fixed amounts, or any combination of both.
(e) In order for a qualified investment in a qualified small business to be eligible for
tax credits, a qualified fund that makes the investment must have applied for and received
certification for the calendar year prior to making the qualified investment.
    Subd. 5. Credit allowed. (a) A qualified investor or qualified fund is eligible for
a credit equal to 25 percent of the qualified investment in a qualified small business.
Investments made by a pass-through entity qualify for a credit only if the entity is a
qualified fund. The commissioner must not allocate more than $11,000,000 in credits to
qualified investors or qualified funds for taxable years beginning after December 31,
2009, and before January 1, 2011, and must not allocate more than $12,000,000 in credits
per year for taxable years beginning after December 31, 2010, and before January 1,
2015. Any portion of a taxable year's credits that is not allocated by the commissioner
does not cancel and may be carried forward to subsequent taxable years until all credits
have been allocated.
(b) The commissioner may not allocate more than a total maximum amount in credits
for a taxable year to a qualified investor for the investor's cumulative qualified investments
as an individual qualified investor and as an investor in a qualified fund; for married
couples filing joint returns the maximum is $250,000, and for all other filers the maximum
is $125,000. The commissioner may not allocate more than a total of $1,000,000 in credits
over all taxable years for qualified investments in any one qualified small business.
(c) The commissioner may not allocate a credit to a qualified investor either as an
individual qualified investor or as an investor in a qualified fund if the investor receives
more than 50 percent of the investor's gross annual income from the qualified small
business in which the qualified investment is proposed. A member of the family of an
individual disqualified by this paragraph is not eligible for a credit under this section. For
a married couple filing a joint return, the limitations in this paragraph apply collectively
to the investor and spouse. For purposes of determining the ownership interest of an
investor under this paragraph, the rules under section 267(c) and 267(e) of the Internal
Revenue Code apply.
(d) Applications for tax credits for 2010 must be made available on the department's
Web site by September 1, 2010, and the department must begin accepting applications
by September 1, 2010. Applications for subsequent years must be made available by
November 1 of the preceding year.
(e) Qualified investors and qualified funds must apply to the commissioner for tax
credits. Tax credits must be allocated to qualified investors or qualified funds in the order
that the tax credit request applications are filed with the department. The commissioner
must approve or reject tax credit request applications within 15 days of receiving the
application. The investment specified in the application must be made within 60 days of
the allocation of the credits. If the investment is not made within 60 days, the credit
allocation is canceled and available for reallocation. A qualified investor or qualified fund
that fails to invest as specified in the application, within 60 days of allocation of the
credits, must notify the commissioner of the failure to invest within five business days of
the expiration of the 60-day investment period.
(f) All tax credit request applications filed with the department on the same day must
be treated as having been filed contemporaneously. If two or more qualified investors or
qualified funds file tax credit request applications on the same day, and the aggregate
amount of credit allocation claims exceeds the aggregate limit of credits under this section
or the lesser amount of credits that remain unallocated on that day, then the credits must
be allocated among the qualified investors or qualified funds who filed on that day on a
pro rata basis with respect to the amounts claimed. The pro rata allocation for any one
qualified investor or qualified fund 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 qualified investor and the denominator of which is the total of all credit allocation
claims filed on behalf of all applicants on that day, by the amount of credits that remain
unallocated on that day for the taxable year.
(g) A qualified investor or qualified fund, or a qualified small business acting on their
behalf, must notify the commissioner when an investment for which credits were allocated
has been made, and the taxable year in which the investment was made. A qualified fund
must also provide the commissioner with a statement indicating the amount invested by
each investor in the qualified fund based on each investor's share of the assets of the
qualified fund at the time of the qualified investment. After receiving notification that the
investment was made, the commissioner must issue credit certificates for the taxable year
in which the investment was made to the qualified investor or, for an investment made by
a qualified fund, to each qualified investor who is an investor in the fund. The certificate
must state that the credit is subject to revocation if the qualified investor or qualified
fund does not hold the investment in the qualified small business for at least three years,
consisting of the calendar year in which the investment was made and the two following
years. The three-year holding period does not apply if:
(1) the investment by the qualified investor or qualified fund becomes worthless
before the end of the three-year period;
(2) 80 percent or more of the assets of the qualified small business is sold before
the end of the three-year period;
(3) the qualified small business is sold before the end of the three-year period; or
(4) the qualified small business's common stock begins trading on a public exchange
before the end of the three-year period.
(h) The commissioner must notify the commissioner of revenue of credit certificates
issued under this section.
    Subd. 6. Annual reports. (a) By February 1 of each year each qualified small
business that received an investment that qualified for a credit, and each qualified investor
and qualified fund that made an investment that qualified for a credit, must submit an
annual report to the commissioner and pay a filing fee of $100 as required under this
subdivision. Each qualified investor and qualified fund must submit reports for three
years following each year in which it made an investment that qualified for a credit, and
each qualified small business must submit reports for five years following the year in
which it received an investment qualifying for a credit. Reports must be made in the form
required by the commissioner. All filing fees collected are deposited in the small business
investment tax credit administration account in the special revenue fund.
(b) A report from a qualified small business must certify that the business satisfies
the following requirements:
(1) the business has its headquarters in Minnesota;
(2) at least 51 percent of the business's employees are employed in Minnesota, and
51 percent of the business's total payroll is paid or incurred in the state;
(3) that the business is engaged in, or is committed to engage in, innovation in
Minnesota as defined under subdivision 2; and
(4) that the business meets the payroll requirements in subdivision 2, paragraph
(c), clause (6).
(c) Reports from qualified investors must certify that the investor remains invested
in the qualified small business as required by subdivision 5, paragraph (g).
(d) Reports from qualified funds must certify that the fund remains invested in the
qualified small business as required by subdivision 5, paragraph (g).
(e) A qualified small business that ceases all operations and becomes insolvent
must file a final annual report in the form required by the commissioner documenting
its insolvency. In following years the business is exempt from the annual reporting
requirement, the report filing fee, and the fine for failure to file a report.
(f) A qualified small business, qualified investor, or qualified fund that fails to file an
annual report as required under this subdivision is subject to a $500 fine.
    Subd. 7. Revocation of credits. (a) If the commissioner determines that a
qualified investor or qualified fund did not meet the three-year holding period required in
subdivision 5, paragraph (g), any credit allocated and certified to the investor or fund is
revoked and must be repaid by the investor.
(b) If the commissioner determines that a business did not meet the employment and
payroll requirements in subdivision 2, paragraph (c), clause (2), in any of the five calendar
years following the year in which an investment in the business that qualified for a tax
credit under this section was made, the business must repay the following percentage of
the credits allowed for qualified investments in the business:


Year following the year in which the investment
was made:
Percentage of credit required to be
repaid:

First
100%

Second
80%

Third
60%

Fourth
40%

Fifth
20%

Sixth and later
0
(c) The commissioner must notify the commissioner of revenue of every credit
revoked and subject to full or partial repayment under this section.
(d) For the repayment of credits allowed under this section and section 290.0692,
a qualified small business, qualified investor, or investor in a qualified fund must file an
amended return with the commissioner of revenue and pay any amounts required to be
repaid within 30 days after becoming subject to repayment under this section.
    Subd. 8. Data privacy. (a) Data contained in an application submitted to the
commissioner under subdivision 2, 3, or 4 are nonpublic data, or private data on
individuals, as defined in section 13.02, subdivision 9 or 12, except that the following
data items are public:
(1) the name of a qualified small business upon approval of the application and
certification by the commissioner under subdivision 2;
(2) the name of a qualified investor upon approval of the application and certification
by the commissioner under subdivision 3;
(3) the name of a qualified fund upon approval of the application and certification
by the commissioner under subdivision 4;
(4) for credit certificates issued under subdivision 5, the amount of the credit
certificate issued, amount of the qualifying investment, the name of the qualifying investor
or qualifying fund that received the certificate, and the name of the qualifying small
business in which the qualifying investment was made;
(5) for credits revoked under subdivision 7, paragraph (a), the amount revoked and
the name of the qualified investor or qualified fund; and
(6) for credits revoked under subdivision 7, paragraphs (b) and (c), the amount
revoked and the name of the qualified small business.
(b) The following data, including data classified as nonpublic or private, must be
provided to the consultant for use in conducting the program evaluation under subdivision
10:
(1) the commissioner of employment and economic development shall provide data
contained in an application for certification received from a qualified small business,
qualified investor, or qualified fund, and any annual reporting information received on a
qualified small business, qualified investor, or qualified fund; and
(2) the commissioner of revenue shall provide data contained in any applicable tax
returns of a qualified small business, qualified investor, or qualified fund.
    Subd. 9. Report to legislature. Beginning in 2011, the commissioner must
annually report by March 15 to the chairs and ranking minority members of the legislative
committees having jurisdiction over taxes and economic development in the senate and
the house of representatives, in compliance with Minnesota Statutes, sections 3.195 and
3.197, on the tax credits issued under this section. The report must include:
(1) the number and amount of the credits issued;
(2) the recipients of the credits;
(3) for each qualified small business, its location, line of business, and if it received
an investment resulting in certification of tax credits;
(4) the total amount of investment in each qualified small business resulting in
certification of tax credits;
(5) for each qualified small business that received investments resulting in tax
credits, the total amount of additional investment that did not qualify for the tax credit;
(6) the number and amount of credits revoked under subdivision 7;
(7) the number and amount of credits that are no longer subject to the three-year
holding period because of the exceptions under subdivision 5, paragraph (g), clauses
(1) to (4); and
(8) any other information relevant to evaluating the effect of these credits.
    Subd. 10. Program evaluation. (a) No later than December 31, 2012, the
commissioner of revenue, after consultation with the commissioners of management and
budget and employment and economic development, shall contract with a qualified outside
entity or individual to evaluate the effects of the small business investment tax credit on
the Minnesota economy. The contractor must not be associated with, employed by, or
have contracts with the entities involved in or associated with the venture capital, angel
investment, life science, or high technology industries. The program evaluation must be
completed by January 2014, and provided to the chairs and ranking minority members of
the legislative committees having jurisdiction over taxes and economic development in
the senate and the house of representatives, in compliance with sections 3.195 and 3.197.
The program evaluation must include, in addition to any other matters the commissioner
considers relevant to evaluating the effectiveness of the credit, analysis of:
(1) the effect of the credit on the level of equity investment in qualified small
businesses in Minnesota, including investments by angel investors, venture capital firms,
and other sources of equity capital for startup businesses;
(2) the effect of the credit, if any, on investment in firms other than qualified small
businesses;
(3) the amount of economic activity, including the number of jobs and the wages
of those jobs, generated by qualified small businesses that received investments that
qualified for the credit;
(4) the incremental change in Minnesota state and local taxes paid as a result of
the allowance of the credit; and
(5) the net benefit to the Minnesota economy of allowance of the credit relative to
alternative uses of the resources, such as increasing the research and development credit
or reducing the corporate franchise tax rate.
(b) $100,000 is appropriated to the commissioner of revenue from the general fund
for fiscal year 2013 for the purposes of this evaluation. Any unspent amount of this
appropriation carries over to fiscal year 2014. The allocation of the credit in subdivision 5
for taxable year 2013 is reduced by $100,000. This appropriation may be used to hire a
consultant or consultants to prepare all or part of the study.
(c) To the extent necessary to complete the program evaluation, and as provided
in subdivision 8, the consultant or consultants may request from the commissioner of
revenue tax return information of taxpayers who are qualified small businesses, qualified
investors, and qualified funds. To the extent necessary to complete the program evaluation,
the consultant or consultants may request from the commissioner of employment and
economic development applications for certification and annual reports made by qualified
small businesses, qualified investors, and qualified funds.
The consultant or consultants may not disclose or release any data received under
this section except as permitted for a government entity under chapter 13, and is subject to
the penalties and remedies provided in law for violation of that chapter.
    Subd. 11. Appropriations. Amounts in the small business investment tax credit
administration account in the special revenue fund are appropriated to the commissioner of
employment and economic development for costs associated with certifying applications
and refunding application fees as provided in subdivisions 2, 3, and 4, and for personnel
and administrative expenses related to administering the small business investment tax
credit in this section.
    Subd. 12. Sunset. This section expires for taxable years beginning after December
31, 2014, except that reporting requirements under subdivision 6 and revocation of credits
under subdivision 7 remain in effect through 2016 for qualified investors and qualified
funds, and through 2018 for qualified small businesses, reporting requirements under
subdivision 9 remain in effect through 2019, and the appropriation in subdivision 11
remains in effect through 2018.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 3. [216C.435] DEFINITIONS.
    Subdivision 1. Scope. For the purposes of this section and section 216C.436, the
terms defined in this section have the meanings given them.
    Subd. 2. City. "City" means a home rule charter or statutory city.
    Subd. 3. Local government. "Local government" means a city, county, or town.
    Subd. 4. Energy audit. "Energy audit" means a formal evaluation of the energy
consumption of a building by a certified energy auditor, whose certification is approved by
the commissioner, for the purpose of identifying appropriate energy improvements that
could be made to the building and including an estimate of the length of time a specific
energy improvement will take to repay its purchase and installation costs, based on the
amount of energy saved and estimated future energy prices.
    Subd. 5. Energy improvement. "Energy improvement" means:
(1) any renovation or retrofitting of a building to improve energy efficiency that
is permanently affixed to the property and that results in a net reduction in energy
consumption without altering the principal source of energy;
(2) permanent installation of new or upgraded electrical circuits and related
equipment to enable electrical vehicle charging; or
(3) a renewable energy system attached to, installed within, or proximate to a
building that generates electrical or thermal energy from a renewable energy source.
    Subd. 6. Qualifying real property. "Qualifying real property" means a
single-family or multifamily residential dwelling, or a commercial or industrial building,
that the city has determined, after review of an energy audit or renewable energy system
feasibility study, can be benefited by installation of energy improvements.
    Subd. 7. Renewable energy. "Renewable energy" means energy produced by
means of solar thermal, solar photovoltaic, wind, or geothermal resources.
    Subd. 8. Renewable energy system feasibility study. "Renewable energy system
feasibility study" means a written study, conducted by a contractor trained to perform that
analysis, for the purpose of determining the feasibility of installing a renewable energy
system in a building, including an estimate of the length of time a specific renewable
energy system will take to repay its purchase and installation costs, based on the amount of
energy saved and estimated future energy prices. For a geothermal energy improvement,
the feasibility study must calculate net savings in terms of nongeothermal energy and costs.
    Subd. 9. Solar thermal. "Solar thermal" has the meaning given to "qualifying solar
thermal project" in section 216B.2411, subdivision 2, paragraph (e).
    Subd. 10. Solar photovoltaic. "Solar photovoltaic" has the meaning given in
section 216C.06, subdivision 16, and must meet the requirements of section 216C.25.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 4. [216C.436] VOLUNTARY ENERGY IMPROVEMENTS FINANCING
PROGRAM FOR LOCAL GOVERNMENTS.
    Subdivision 1. Program authority. A local government may establish a program
to finance energy improvements to enable owners of qualifying real property to pay for
cost-effective energy improvements to the qualifying real property with the net proceeds
and interest earnings of revenue bonds authorized in this section. A local government may
limit the number of qualifying real properties for which a property owner may receive
program financing.
    Subd. 2. Program requirements. A financing program must:
(1) impose requirements and conditions on financing arrangements to ensure timely
repayment;
(2) require an energy audit or renewable energy system feasibility study to be
conducted on the qualifying real property and reviewed by the local government prior to
approval of the financing;
(3) require the inspection of all installations and a performance verification of at
least ten percent of the energy improvements financed by the program;
(4) require that all cost-effective energy improvements be made to a qualifying
real property prior to, or in conjunction with, an applicant's repayment of financing for
energy improvements for that property;
(5) have energy improvements financed by the program performed by licensed
contractors as required by chapter 326B or other law or ordinance;
(6) require disclosures to borrowers by the local government of the risks involved in
borrowing, including the risk of foreclosure if a tax delinquency results from a default;
(7) provide financing only to those who demonstrate an ability to repay;
(8) not provide financing for a qualifying real property in which the owner is not
current on mortgage or real property tax payments;
(9) require a petition by all owners of the qualifying real property requesting
collections of repayments as a special assessment under section 429.101;
(10) provide that payments and assessments are not accelerated due to a default and
that a tax delinquency exists only for assessments not paid when due; and
(11) require that liability for special assessments related to the financing runs with
the qualifying real property.
    Subd. 3. Retail and end use prohibited. Energy generated by an energy
improvement may not be sold, transmitted, or distributed at retail and may not provide for
end use of the electrical energy from an off-site facility. On-site generation is allowed to
the extent provided for in section 216B.1611.
    This section does not modify the exclusive service territories or exclusive right to
serve as provided in sections 216B.37 to 216B.43.
    Subd. 4. Financing terms. Financing provided under this section must have:
(1) a term not to exceed the weighted average of the useful life of the energy
improvements installed, as determined by the local government, but in no event may
a term exceed 20 years;
(2) a principal amount not to exceed the lesser of ten percent of the assessed value
of the real property on which the improvements are to be installed or the actual cost of
installing the energy improvements, including the costs of necessary equipment, materials,
and labor, the costs of each related energy audit or renewable energy system feasibility
study, and the cost of verification of installation; and
(3) an interest rate sufficient to pay the financing costs of the program, including the
issuance of bonds and any financing delinquencies.
    Subd. 5. Coordination with other programs. A financing program must include
cooperation and coordination with the conservation improvement activities of the utility
serving the qualifying real property and other public and private energy improvement
programs.
    Subd. 6. Certificate of participation. Upon completion of a project, a local
government shall provide a borrower with a certificate stating participation in the program
and what energy improvements have been made with financing program proceeds.
    Subd. 7. Repayment. A local government financing an energy improvement
under this section must:
(1) secure payment with a lien against the benefited qualifying real property; and
(2) collect repayments as a special assessment as provided for in section 429.101
or by charter.
    Subd. 8. Bond issuance; repayment. (a) A local government may issue revenue
bonds as provided in chapter 475 for the purposes of this section.
(b) The bonds must be payable as to both principal and interest solely from the
revenues from the assessments established in subdivision 7.
(c) No holder of bonds issued under this subdivision may compel any exercise of the
taxing power of the local government that issued the bonds to pay principal or interest on
the bonds. Bonds issued under this subdivision are not a debt or obligation of the local
government that issued them, nor is the payment of the bonds enforceable out of any
money other than the revenue pledged to the payment of the bonds.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 5. Minnesota Statutes 2008, section 272.02, subdivision 42, is amended to read:
    Subd. 42. Property leased to school districts schools. (a) Property that is leased or
rented to a school district is exempt from taxation if it meets the following requirements:
    (1) the lease must be for a period of at least 12 consecutive months;
    (2) the terms of the lease must require the school district to pay a nominal
consideration for use of the building;
    (3) the school district must use the property to provide direct instruction in any
grade from kindergarten through grade 12; special education for disabled children; adult
basic education as described in section 124D.52; preschool and early childhood family
education; or community education programs, including provision of administrative
services directly related to the educational program at that site; and
    (4) the lease must provide that the school district has the exclusive use of the
property during the lease period.
    (b) Property that is leased or rented to a charter school formed and operated under
section 124D.10 is exempt from taxation if it meets all of the following requirements:
    (1) the lease is for a period of at least 12 consecutive months;
    (2) the property is owned by (i) a nonprofit corporation or association exempt from
federal income tax under section 501(c)(2) or (3) of the Internal Revenue Code; (ii) a
public school district, college, or university; (iii) a private academy, college, university, or
seminary of learning; (iv) a church; or (v) the state or a political subdivision of the state;
    (3) the charter school must use the property to provide (i) direct instruction in any
grade from kindergarten through grade 12; (ii) special education for disabled children; or
(iii) administrative services directly related to the educational program at that site; and
    (4) except for lease provisions that allow for the shared use of the property by (i)
the charter school and another public or private school; (ii) the charter school and a
church; or (iii) the charter school and the state or a political subdivision of the state, the
lease must provide that the charter school has the exclusive right to use the property
during the lease period.
EFFECTIVE DATE.This section is effective for assessment year 2010 and
thereafter, for taxes payable in 2011 and thereafter.

    Sec. 6. Minnesota Statutes 2009 Supplement, 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 by a nonprofit organization or a nonprofit trust, and operated by a
nonprofit organization or a nonprofit trust,;
(2) the program participants receive no compensation,; and
(3) it is located:
(i) in the Minneapolis and St. Paul standard metropolitan statistical area as
determined by the 2000 federal census or;
(ii) in a city outside the Minneapolis and St. Paul standard metropolitan statistical
area that has a population of 7,500 7,400 or greater according to the most recent federal
census; or
(iii) in a township that has a population greater than 2,000 but less than 3,000
determined by the 2000 federal census and the building was previously used by a school
and was exempt for taxes payable in 2010.
Use of the property for advanced skills training of incumbent workers does not
disqualify the property for the exemption under this subdivision. This exemption includes
up to five acres of the land on which the building is located and associated parking areas
on that land, except that if the building meets the requirements of clause (3), item (iii),
then the exemption includes up to ten acres of land 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 training.
EFFECTIVE DATE.This section is effective for property taxes payable in 2011
and thereafter.

    Sec. 7. Minnesota Statutes 2009 Supplement, section 289A.02, subdivision 7, 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 March
31, 2009 18, 2010.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 8. Minnesota Statutes 2009 Supplement, section 290.01, subdivision 19, as
amended by Laws 2010, chapter 187, section 1, 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 March 31, 2009 18, 2010,
shall be in effect for taxable years beginning after December 31, 1996. The provisions of
the act of January 22, 2010, Public Law 111-126, to accelerate the benefits for charitable
cash contributions for the relief of victims of the Haitian earthquake, are effective at the
same time it became effective for federal purposes and apply to the subtraction under
subdivision 19b, clause (6).
    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.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 9. Minnesota Statutes 2009 Supplement, section 290.01, subdivision 31, 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 March
31, 2009 18, 2010. 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.
EFFECTIVE DATE.This section is effective the day following final enactment
except that the changes incorporated by federal changes are effective at the same time as
the changes were effective for federal purposes.

    Sec. 10. Minnesota Statutes 2008, section 290.068, is amended to read:
290.068 CREDIT FOR INCREASING RESEARCH ACTIVITIES.
    Subdivision 1. Credit allowed. A corporation, other than partners in a partnership,
or shareholders in a corporation treated as an "S" corporation under section 290.9725,
is are allowed a credit against the portion of the franchise tax computed under section
290.06, subdivision 1, this chapter for the taxable year equal to:
    (a) 5 ten percent of the first $2,000,000 of the excess (if any) of
    (1) the qualified research expenses for the taxable year, over
    (2) the base amount; and
    (b) 2.5 percent on all of such excess expenses over $2,000,000.
    Subd. 2. Definitions. For purposes of this section, the following terms have the
meanings given.
    (a) "Qualified research expenses" means (i) qualified research expenses and basic
research payments as defined in section 41(b) and (e) of the Internal Revenue Code, except
it does not include expenses incurred for qualified research or basic research conducted
outside the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue
Code; and (ii) contributions to a nonprofit corporation established and operated pursuant
to the provisions of chapter 317A for the purpose of promoting the establishment and
expansion of business in this state, provided the contributions are invested by the nonprofit
corporation for the purpose of providing funds for small, technologically innovative
enterprises in Minnesota during the early stages of their development.
    (b) "Qualified research" means qualified research as defined in section 41(d) of the
Internal Revenue Code, except that the term does not include qualified research conducted
outside the state of Minnesota.
    (c) "Base amount" means base amount as defined in section 41(c) of the Internal
Revenue Code, except that the average annual gross receipts must be calculated using
Minnesota sales or receipts under section 290.191 and the definitions contained in clauses
(a) and (b) shall apply.
    Subd. 3. Limitation; carryover. (a)(1) The credit for the a taxable year beginning
before January 1, 2010, shall not exceed the liability for tax. "Liability for tax" for
purposes of this section means the tax imposed under section 290.06, subdivision 1, for the
taxable year reduced by the sum of the nonrefundable credits allowed under this chapter.
    (2) In the case of a corporation which is a partner in a partnership, the credit allowed
for the taxable year shall not exceed the lesser of the amount determined under clause (1)
for the taxable year or an amount (separately computed with respect to the corporation's
interest in the trade or business or entity) equal to the amount of tax attributable to that
portion of taxable income which is allocable or apportionable to the corporation's interest
in the trade or business or entity.
    (b) If the amount of the credit determined under this section for any taxable year
exceeds the limitation under clause (a), the excess shall be a research credit carryover to
each of the 15 succeeding taxable years. The entire amount of the excess unused credit for
the taxable year shall 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 which may be added under this clause shall not exceed the
taxpayer's liability for tax less the research credit for the taxable year.
    Subd. 4. Partnerships and S corporations. In the case of partnerships the credit
shall be allocated in the same manner provided by section 41(f)(2) of the Internal Revenue
Code.
    For shareholders in S corporations the credit must be allocated in the same manner
as provided by section 1366(a) of the Internal Revenue Code.
    Subd. 5. Adjustments; acquisitions and dispositions. If a taxpayer acquires or
disposes of the major portion of a trade or business or the major portion of a separate unit
of a trade or business in a transaction with another taxpayer, the taxpayer's qualified
research expenses and base amount are adjusted in the same manner provided by section
41(f)(3) of the Internal Revenue Code.
    Subd. 6. Credit to be refundable. If the amount of credit allowed in this section
for qualified research expenses incurred in taxable years beginning after December 31,
2009, exceeds the taxpayer's tax liability under this chapter, the commissioner shall
refund the excess amount. The credit allowed for qualified research expenses incurred
in taxable years beginning after December 31, 2009, must be used before any research
credit earned under subdivision 3.
    Subd. 7. Appropriation. An amount sufficient to pay the refunds required by this
section is appropriated to the commissioner from the general fund.
EFFECTIVE DATE.This section is effective for taxable years beginning after
December 31, 2009.

    Sec. 11. [290.0681] CREDIT FOR HISTORIC STRUCTURE
REHABILITATION.
    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
have the meanings given.
(b) "Account" means the historic credit administration account in the special
revenue fund.
(c) "Office" means the State Historic Preservation Office of the Minnesota Historical
Society.
(d) "Project" means rehabilitation of a certified historic structure, as defined in
section 47(c)(3)(A) of the Internal Revenue Code, that is located in Minnesota and is
allowed a federal credit under section 47(a)(2) of the Internal Revenue Code.
(e) "Society" means the Minnesota Historical Society.
    Subd. 2. Credit or grant allowed; certified historic structure. (a) A credit is
allowed against the tax imposed under this chapter equal to not more than 100 percent
of the credit allowed under section 47(a)(2) of the Internal Revenue Code for a project.
To qualify for the credit:
(1) the project must receive Part 3 certification and be placed in service during
the taxable year; and
(2) the taxpayer must be allowed the federal credit and be issued a credit certificate
for the taxable year as provided in subdivision 4.
(b) The society may pay a grant in lieu of the credit. The grant equals 90 percent of
the credit that would be allowed for the project.
(c) In lieu of the credit under paragraph (a), an insurance company may claim a
credit against the insurance premiums tax imposed under chapter 297I.
    Subd. 3. Applications; allocations. (a) To qualify for a credit or grant under this
section, the developer of a project must apply to the office before the rehabilitation begins.
The application must contain the information and be in the form prescribed by the office.
The office may collect a fee for application of up to $5,000, based on estimated qualified
rehabilitation expenses, to offset costs associated with personnel and administrative
expenses related to administering the credit and preparing the economic impact report
in subdivision 9. Application fees are deposited in the account. The application must
indicate if the application is for a credit or a grant in lieu of the credit or a combination of
the two and designate the taxpayer qualifying for the credit or the recipient of the grant.
    (b) Upon approving an application for credit, the office shall issue allocation
certificates that:
    (1) verify eligibility for the credit or grant;
    (2) state the amount of credit or grant anticipated with the project, with the credit
amount equal to 100 percent and the grant amount equal to 90 percent of the federal
credit anticipated in the application;
    (3) state that the credit or grant allowed may increase or decrease if the federal
credit the project receives at the time it is placed in service is different than the amount
anticipated at the time the allocation certificate is issued; and
    (4) state the fiscal year in which the credit or grant is allocated, and that the taxpayer
or grant recipient is entitled to receive the credit or grant at the time the project is placed
in service, provided that date is within three calendar years following the issuance of
the allocation certificate.
    (c) The office, in consultation with the commissioner of revenue, shall determine if
the project is eligible for a credit or a grant under this section. Eligibility for the credit is
subject to review and audit by the commissioner of revenue.
    (d) The federal credit recapture and repayment requirements under section 50 of the
Internal Revenue Code do not apply to the credit allowed under this section.
    Subd. 4. Credit certificates. (a)(1) The developer of a project for which the office
has issued an allocation certificate must notify the office when the project is placed in
service. Upon verifying that the project has been placed in service, and was allowed a
federal credit, the office must issue a credit certificate to the taxpayer designated in the
application or must issue a grant to the recipient designated in the application. The credit
certificate must state the amount of the credit.
(2) The credit amount equals the federal credit allowed for the project.
(3) The grant amount equals 90 percent of the federal credit allowed for the project.
(b) The recipient of a credit certificate may assign the certificate to another taxpayer,
which is then allowed the credit under this section or section 297I.20, subdivision 3. The
commissioner shall prescribe the forms necessary for claiming a credit by assignment.
    Subd. 5. Partnerships; multiple owners. Credits granted to a partnership, a limited
liability company taxed as a partnership, S corporation, or multiple owners of property are
passed through to the partners, members, shareholders, or owners, respectively, pro rata to
each partner, member, shareholder, or owner based on their share of the entity's assets or as
specially allocated in their organizational documents, as of the last day of the taxable year.
    Subd. 6. Credit refundable. If the amount of credit that the taxpayer is eligible to
receive under this section exceeds the liability for tax under this chapter, the commissioner
shall refund the excess to the taxpayer.
    Subd. 7. Appropriations. (a) An amount sufficient to pay the refunds authorized
under this section is appropriated to the commissioner from the general fund.
(b) An amount sufficient to pay the grants authorized under this section is
appropriated to the society from the general fund.
(c) Amounts in the account are appropriated to the society for costs associated with
personnel and administrative expenses related to administering the credit for historic
structure rehabilitation in this section, for refunding application fees under subdivision
3, and for costs associated with preparing the determination of economic impact report
required in subdivision 9.
    Subd. 8. Manner of claiming. (a) The commissioner shall prescribe the manner in
which the credit may be issued or claimed. This may include allowing the credit only as
a separately processed claim for refund.
(b) The office shall prescribe the manner in which grants are paid.
    Subd. 9. Report; determination of economic impact. The society must annually
determine the economic impact to the state from the rehabilitation of property for which
credits or grants are provided under this section and provide a written report on the impact
to the chairs and ranking minority members of the legislative committees on taxes of the
senate and house of representatives, in compliance with Minnesota Statutes, sections
3.195 and 3.197.
    Subd. 10. Sunset. This section expires after fiscal year 2015, except that the office's
authority to issue credit certificates under subdivision 4 based on allocation certificates
that were issued before fiscal year 2016 remains in effect through 2018, and the reporting
requirements in subdivision 9 remain in effect through the year following the year in
which all allocation certificates have either been canceled or resulted in issuance of credit
certificates, or 2019, whichever is earlier.
EFFECTIVE DATE.This section is effective for taxable years beginning
after December 31, 2009, for certified historic structures for which qualified costs of
rehabilitation are first paid under construction contracts entered into after May 1, 2010.

    Sec. 12. [290.0692] SMALL BUSINESS INVESTMENT CREDIT.
    Subdivision 1. Definitions. For purposes of this section, terms defined in section
116J.8737 have the meaning given in that section.
    Subd. 2. Credit allowed. A qualified investor is allowed a credit against the tax
imposed under this chapter for qualified investments made in a qualified small business
for the taxable year. The credit equals the amount and applies to the taxable year indicated
on the certificate provided to the qualified investor under section 116J.8737, but the
maximum credit in any taxable year is $250,000 for a married couple filing a joint return,
and $125,000 for all other claimants.
    Subd. 3. Proportional credits. 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 based on its share of the pass-through entity's capital assets at the
time of the qualified investment.
    Subd. 4. Credit refundable. If the amount of the credit under this section for any
taxable year exceeds the claimant's liability for tax under this chapter, the commissioner
shall refund the excess to the claimant. An amount sufficient to pay the refunds required
by this section is appropriated to the commissioner from the general fund.
    Subd. 5. Audit powers. Notwithstanding the certification eligibility issued by the
commissioner of employment and economic development under section 116J.8737, the
commissioner may utilize any audit and examination powers under chapters 270C or
289A to the extent necessary to verify that the taxpayer is eligible for the credit and to
assess for the amount of any improperly claimed credit.
EFFECTIVE DATE.This section is effective for investments made after July
1, 2010, for taxable years beginning after December 31, 2009, and before January 1,
2015, and only applies to investments made after the qualified small business receiving
the investment has been certified by the commissioner of employment and economic
development.

    Sec. 13. Minnesota Statutes 2008, section 290.095, subdivision 11, is amended to read:
    Subd. 11. Carryback or carryover adjustments. (a) Except as provided in
paragraph (c), for individuals, estates, and trusts the amount of a net operating loss
that may be carried back or carried over shall be the same dollar amount allowable in
the determination of federal taxable income, provided that, notwithstanding any other
provision, estates and trusts must apply the following adjustments to the amount of the net
operating loss that may be carried back or carried over:
    (1) Nonassignable income or losses as required by section 290.17.
    (2) Deductions not allocable to Minnesota under section 290.17.
    (b) The net operating loss carryback or carryover applied as a deduction in the taxable
year to which the net operating loss is carried back or carried over shall be equal to the
net operating loss carryback or carryover applied in the taxable year in arriving at federal
taxable income provided that trusts and estates must apply the following modifications:
    (1) Increase the amount of carryback or carryover applied in the taxable year by
the amount of losses and interest, taxes and other expenses not assignable or allowable
to Minnesota incurred in the taxable year.
    (2) Decrease the amount of carryback or carryover applied in the taxable year by
the amount of income not assignable to Minnesota earned in the taxable year. For estates
and trusts, the net operating loss carryback or carryover to the next consecutive taxable
year shall be the net operating loss carryback or carryover as calculated in clause (b)
less the amount applied in the earlier taxable year(s). No additional net operating loss
carryback or carryover shall be allowed to estates and trusts if the entire amount has been
used to offset Minnesota income in a year earlier than was possible on the federal return.
However, if a net operating loss carryback or carryover was allowed to offset federal
income in a year earlier than was possible on the Minnesota return, an estate or trust
shall still be allowed to offset Minnesota income but only if the loss was assignable to
Minnesota in the year the loss occurred.
(c) This paragraph does not apply to eligible small businesses that make a valid
election to carry back their losses for federal purposes under section 172(b)(1)(H) of the
Internal Revenue Code as amended through March 31, 2009.
(1) A net operating loss of an individual, estate, or trust that is allowed under this
subdivision and for which the taxpayer elects to carry back for more than two years under
section 172(b)(1)(H) of the Internal Revenue Code is a net operating loss carryback to
each of the two taxable years preceding the loss, and unused portions may be carried
forward for 20 taxable years after the loss.
(2) The entire amount of the net operating loss for any taxable year must be carried
to the earliest of the taxable years to which the loss may be carried. The portion of the
loss which may be carried to each of the other taxable years is the excess, if any, of the
amount of the loss over the taxable net income for each of the taxable years to which
the loss may be carried.
EFFECTIVE DATE.This section is effective for net operating losses generated in
taxable years beginning after December 31, 2007.

    Sec. 14. Minnesota Statutes 2009 Supplement, section 290A.03, subdivision 15,
is amended to read:
    Subd. 15. Internal Revenue Code. "Internal Revenue Code" means the Internal
Revenue Code of 1986, as amended through March 31, 2009 18, 2010.
EFFECTIVE DATE.This section is effective for property tax refunds based on
property taxes payable after December 31, 2009, and rent paid after December 31, 2008.

    Sec. 15. Minnesota Statutes 2009 Supplement, 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) "Commissioner" means the commissioner of revenue or any person to whom the
commissioner has delegated functions under this chapter.
    (2) "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.
    (3) "Internal Revenue Code" means the United States Internal Revenue Code of
1986, as amended through March 31, 2009 18, 2010.
    (4) "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.
    (5) "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.
    (6) "Nonresident decedent" means an individual whose domicile at the time of
death was not in Minnesota.
    (7) "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.
    (8) "Resident decedent" means an individual whose domicile at the time of death
was in Minnesota.
    (9) "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.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 16. Minnesota Statutes 2008, section 297A.815, subdivision 3, is amended to read:
    Subd. 3. Motor vehicle lease sales tax revenue. (a) For purposes of this
subdivision, "net revenue" means an amount equal to:
    (1) the revenues, including interest and penalties, collected under this section, during
the fiscal year; less
    (2) the estimated reduction in individual income tax receipts and the estimated
amount of refunds paid out under section 290.06, subdivision 34, for the fiscal year in
fiscal year 2011, $30,100,000; in fiscal year 2012, $31,100,000; and in fiscal year 2013
and following fiscal years, $32,000,000.
    (b) On or before June 30 of each fiscal year, the commissioner of revenue shall
estimate the amount of the revenues and subtraction under paragraph (a) for the current
fiscal year.
    (c) On or after July 1 of the subsequent fiscal year, the commissioner of management
and budget shall transfer the net revenue as estimated in paragraph (b) from the general
fund, as follows:
    (1) 50 percent to the greater Minnesota transit account; and
    (2) 50 percent to the county state-aid highway fund. Notwithstanding any other law
to the contrary, the commissioner of transportation shall allocate the funds transferred
under this clause to the counties in the metropolitan area, as defined in section 473.121,
subdivision 4, excluding the counties of Hennepin and Ramsey, so that each county shall
receive of such amount the percentage that its population, as defined in section 477A.011,
subdivision 3, estimated or established by July 15 of the year prior to the current calendar
year, bears to the total population of the counties receiving funds under this clause.
    (d) For fiscal years 2010 and 2011, the amount under paragraph (a), clause (1), must
be calculated using the following percentages of the total revenues:
    (1) for fiscal year 2010, 83.75 percent; and
    (2) for fiscal year 2011, 93.75 percent.

    Sec. 17. Minnesota Statutes 2008, section 297I.20, is amended by adding a subdivision
to read:
    Subd. 3. Historic structure rehabilitation credit. An insurance company may
claim a credit against the premiums tax imposed under this chapter equal to the amount of
the credit certificate issued to it, or to a person who has assigned the credit to the insurance
company, under section 290.0681. If the amount of the credit exceeds the liability for tax
under this chapter, the commissioner shall refund the excess to the insurance company. An
amount sufficient to pay the refunds under this section is appropriated to the commissioner
from the general fund. This credit does not affect the calculation of police and fire aid
under section 69.021.
EFFECTIVE DATE.This section is effective for taxable years beginning
after December 31, 2009, for certified historic structures for which qualified costs of
rehabilitation are first paid under construction contracts entered into after May 1, 2010.

    Sec. 18. Minnesota Statutes 2009 Supplement, 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 a proposed expenditure is not
approved by at least seven Iron Range Resources and Rehabilitation Board members, 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)(i) 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 or grant for the cost of providing for a
biomass energy value-added wood product facility located in the taconite tax relief area
and in a county that contains a city of the first class. 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 or grant is subject to approval by at least seven
Iron Range Resources and Rehabilitation Board members;. If the money is provided as
a loan, interest must be payable on the loan at the rate prescribed in section 298.2213,
subdivision
3. (ii) Repayments of the loan and interest, if any, must be deposited in the
taconite environment protection fund under sections 298.222 to 298.225. If a loan or grant
is not made under this paragraph by July 1, 2010 2012, the amount that had been made
available for the loan under this paragraph must be transferred to the taconite environment
protection fund under sections 298.222 to 298.225. (iii) 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.
(c) Repayment or transfer of money to the taconite environmental protection fund
under paragraph (b), item (ii), must be allocated by the Iron Range Resources and
Rehabilitation Board for public works projects in house legislative districts in the same
proportion as taxable tonnage of production in 2007 in each house legislative district, for
distribution in 2008, bears to total taxable tonnage of production in 2007, for distribution
in 2008. Notwithstanding any other law to the contrary, expenditures under this paragraph
do not require approval by the governor. For purposes of this paragraph, "house legislative
districts" means the legislative districts in existence on May 15, 2009.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 19. Minnesota Statutes 2009 Supplement, 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), less the amount that would have been computed under Minnesota
Statutes 2008, section 126C.21, subdivision 4, for the current year for that district, 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). 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.
    (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
.
EFFECTIVE DATE.This section is effective beginning with distributions made
in 2010.

    Sec. 20. Minnesota Statutes 2009 Supplement, section 298.294, is amended to read:
298.294 INVESTMENT OF FUND.
(a) The trust fund established by section 298.292 shall be invested pursuant to law
by the State Board of Investment and the net interest, dividends, and other earnings arising
from the investments shall be transferred, except as provided in paragraph (b), on the first
day of each month to the trust and shall be included and become part of the trust fund.
The amounts transferred, including the interest, dividends, and other earnings earned
prior to July 13, 1982, together with the additional amount of $10,000,000 for fiscal year
1983, which is appropriated April 21, 1983, are appropriated from the trust fund to the
commissioner of Iron Range resources and rehabilitation for deposit in a separate account
for expenditure for the purposes set forth in section 298.292. Amounts appropriated
pursuant to this section shall not cancel but shall remain available unless expended.
(b) For fiscal years 2010 and 2011 only, $1,000,000 $1,500,000 of the net interest,
dividends, and other earnings under paragraph (a) shall be transferred to a special account.
Funds in the special account are available for loans or grants to businesses, with priority
given to businesses with 25 or fewer employees. Funds may be used for wage subsidies
for up to 52 weeks of up to $5 per hour or other activities, including, but not limited to,
short-term operating expenses and purchase of equipment and materials by businesses
under financial duress, that will create additional jobs in the taconite assistance area under
section 273.1341. Expenditures from the special account must be approved by at least
seven Iron Range Resources and Rehabilitation Board members.
(c) To qualify for a grant or loan, a business must be currently operating and have
been operating for one year immediately prior to its application for a loan or grant, and its
corporate headquarters must be located in the taconite assistance area.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 21. Minnesota Statutes 2008, section 429.021, subdivision 1, is amended to read:
    Subdivision 1. Improvements authorized. The council of a municipality shall have
power to make the following improvements:
(1) To acquire, open, and widen any street, and to improve the same by constructing,
reconstructing, and maintaining sidewalks, pavement, gutters, curbs, and vehicle parking
strips of any material, or by grading, graveling, oiling, or otherwise improving the same,
including the beautification thereof and including storm sewers or other street drainage
and connections from sewer, water, or similar mains to curb lines.
(2) To acquire, develop, construct, reconstruct, extend, and maintain storm and
sanitary sewers and systems, including outlets, holding areas and ponds, treatment plants,
pumps, lift stations, service connections, and other appurtenances of a sewer system,
within and without the corporate limits.
(3) To construct, reconstruct, extend, and maintain steam heating mains.
(4) To install, replace, extend, and maintain street lights and street lighting systems
and special lighting systems.
(5) To acquire, improve, construct, reconstruct, extend, and maintain water works
systems, including mains, valves, hydrants, service connections, wells, pumps, reservoirs,
tanks, treatment plants, and other appurtenances of a water works system, within and
without the corporate limits.
(6) To acquire, improve and equip parks, open space areas, playgrounds, and
recreational facilities within or without the corporate limits.
(7) To plant trees on streets and provide for their trimming, care, and removal.
(8) To abate nuisances and to drain swamps, marshes, and ponds on public or private
property and to fill the same.
(9) To construct, reconstruct, extend, and maintain dikes and other flood control
works.
(10) To construct, reconstruct, extend, and maintain retaining walls and area walls.
(11) To acquire, construct, reconstruct, improve, alter, extend, operate, maintain, and
promote a pedestrian skyway system. Such improvement may be made upon a petition
pursuant to section 429.031, subdivision 3.
(12) To acquire, construct, reconstruct, extend, operate, maintain, and promote
underground pedestrian concourses.
(13) To acquire, construct, improve, alter, extend, operate, maintain, and promote
public malls, plazas or courtyards.
(14) To construct, reconstruct, extend, and maintain district heating systems.
(15) To construct, reconstruct, alter, extend, operate, maintain, and promote fire
protection systems in existing buildings, but only upon a petition pursuant to section
429.031, subdivision 3.
(16) To acquire, construct, reconstruct, improve, alter, extend, and maintain highway
sound barriers.
(17) To improve, construct, reconstruct, extend, and maintain gas and electric
distribution facilities owned by a municipal gas or electric utility.
(18) To purchase, install, and maintain signs, posts, and other markers for addressing
related to the operation of enhanced 911 telephone service.
(19) To improve, construct, extend, and maintain facilities for Internet access and
other communications purposes, if the council finds that:
(i) the facilities are necessary to make available Internet access or other
communications services that are not and will not be available through other providers or
the private market in the reasonably foreseeable future; and
(ii) the service to be provided by the facilities will not compete with service provided
by private entities.
(20) To assess affected property owners for all or a portion of the costs agreed to
with an electric utility, telecommunications carrier, or cable system operator to bury or
alter a new or existing distribution system within the public right-of-way that exceeds the
utility's design and construction standards, or those set by law, tariff, or franchise, but only
upon petition under section 429.031, subdivision 3.
(21) To assess affected property owners for repayment of voluntary energy
improvement financings under section 216C.436, subdivision 7.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 22. Minnesota Statutes 2008, section 429.101, subdivision 1, is amended to read:
    Subdivision 1. Ordinances. (a) In addition to any other method authorized by
law or charter, the governing body of any municipality may provide for the collection
of unpaid special charges as a special assessment against the property benefited for all
or any part of the cost of:
    (1) snow, ice, or rubbish removal from sidewalks;
    (2) weed elimination from streets or private property;
    (3) removal or elimination of public health or safety hazards from private property,
excluding any structure included under the provisions of sections 463.15 to 463.26;
    (4) installation or repair of water service lines, street sprinkling or other dust
treatment of streets;
    (5) the trimming and care of trees and the removal of unsound trees from any street;
    (6) the treatment and removal of insect infested or diseased trees on private property,
the repair of sidewalks and alleys;
    (7) the operation of a street lighting system;
    (8) the operation and maintenance of a fire protection or a pedestrian skyway system;
    (9) inspections relating to a municipal housing maintenance code violation;
    (10) the recovery of any disbursements under section 504B.445, subdivision 4,
clause (5), including disbursements for payment of utility bills and other services, even if
provided by a third party, necessary to remedy violations as described in section 504B.445,
subdivision 4
, clause (2); or
    (11) [Repealed, 2004 c 275 s 5]
    (12) the recovery of delinquent vacant building registration fees under a municipal
program designed to identify and register vacant buildings.
    (b) The council may by ordinance adopt regulations consistent with this section to
make this authority effective, including, at the option of the council, provisions for placing
primary responsibility upon the property owner or occupant to do the work personally
(except in the case of street sprinkling or other dust treatment, alley repair, tree trimming,
care, and removal, or the operation of a street lighting system) upon notice before the work
is undertaken, and for collection from the property owner or other person served of the
charges when due before unpaid charges are made a special assessment.
(c) A home rule charter city, statutory city, county, or town operating an energy
improvements financing program under section 216C.436 has the authority granted to a
municipality under paragraph (a) with respect to energy improvements financed under
that section.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 23. Minnesota Statutes 2008, section 446A.085, is amended by adding a
subdivision to read:
    Subd. 15. Transportation infrastructure loans. A loan may be made to a statutory
or home rule charter city to finance transportation infrastructure projects for the purposes
described in subdivision 2 but without regard to whether they are eligible for financing
under a federal act or program or state law. The loan must be repayable under the terms
and conditions provided in this section and established by the authority and agreed to by
the city. The loan must be repaid by the city from the proceeds of special assessments, tax
increments, or other local taxes, such as sales taxes, lodging taxes, liquor taxes, admissions
and recreation taxes, and food and beverage taxes, authorized to be used for purposes
of the project. In addition to any method the authority considers to be appropriate, the
authority may fund those loans by issuing Build America Bonds under section 54AA of
the Internal Revenue Code, as amended.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 24. Minnesota Statutes 2009 Supplement, 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 field, or in the manufacturing,
creation, or production of intangible property, including any patent, copyright, formula,
process, design, know-how, format, or other similar item; (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.
    (k) "Project" also includes any properties designated as a qualified green building
and sustainable design project under section 469.1655.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 25. [469.1655] QUALIFIED GREEN BUILDING AND SUSTAINABLE
DESIGN PROJECTS.
    Subdivision 1. Project designation and eligibility. (a) A municipality or
redevelopment agency issuing revenue bonds under sections 469.152 to 469.165 may
designate the project for which the bonds are issued as a qualified green building and
sustainable design project as provided in this section.
    (b) The issuer must ensure that each designated project substantially:
    (1) reduces consumption of electricity compared to conventional construction;
    (2) reduces daily carbon dioxide emissions compared to energy generated from coal;
    (3) increases the use of solar photovoltaic cells or solar thermal cells in this state; or
    (4) increases the use of fuel cells to generate energy.
    (c) Before designating a project under this section, the issuer must document in
writing that the project will satisfy the eligibility criteria in this section.
    (d) At least 75 percent of the square footage of commercial buildings that are part of
the project must be registered with a recognized green building rating system, including
Minnesota's sustainable building guidelines or the United States Green Building Council's
LEED certification or the Green Building Initiative's Green Globes certification, or in the
case of residential buildings, Minnesota GreenStar rating or the National Association of
Home Builders National Green Building Standard certification, and must be reasonably
expected to receive the certification.
    Subd. 2. Applications. An application for designation under this section must
include a project proposal that describes the energy-efficiency, renewable energy, and
sustainable design features of the project and demonstrates that the project satisfies the
eligibility criteria in this section. The application must include a description of:
    (1) the amount of electric consumption reduced as compared to conventional
construction;
    (2) the amount of carbon dioxide daily emissions reduced compared to energy
generated from coal;
    (3) the amount of the gross installed capacity of the project's solar photovoltaic
capacity measured in megawatts; and
    (4) the amount in megawatts of the project's energy generated by fuel cells.
    Subd. 3. Use of bond financing. The project proposal must include a description of
the bond financing that will be allocated for financing of one or more of the following:
    (1) the purchase, construction, integration, or other use of energy-efficiency,
renewable energy, and sustainable design features of the project; or
    (2) compliance with certification standards cited under subdivision 1, paragraph (d).
EFFECTIVE DATE.This section is effective for bonds issued after June 30, 2010.

    Sec. 26. Minnesota Statutes 2008, section 469.174, is amended by adding a subdivision
to read:
    Subd. 10c. Compact development district. "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:
(1) parcels consisting of 70 percent of the area of the district are occupied by
buildings or similar structures that are classified as class 3a property under section 273.13,
subdivision 24; and
(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.
EFFECTIVE DATE.This section is effective for districts for which the request for
certification is made after June 30, 2010.

    Sec. 27. Minnesota Statutes 2009 Supplement, 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 1, 2, 3, 4, 5, or 7E, 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.
EFFECTIVE DATE.This section is effective for districts for which the request for
certification is made after June 30, 2010.

    Sec. 28. Minnesota Statutes 2008, section 469.175, is amended by adding a subdivision
to read:
    Subd. 2b. Compact development districts; sunset. The authority to establish or
approve the tax increment financing plan for a new compact development district expires
on June 30, 2012.

    Sec. 29. 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 district, a compact development district, 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.
EFFECTIVE DATE.This section is effective for districts for which the request for
certification is made after June 30, 2010.

    Sec. 30. Minnesota Statutes 2008, section 469.176, is amended by adding a subdivision
to read:
    Subd. 1i. Compact development districts. Tax increments derived from a compact
development district may be used only to pay:
(1) administrative expenses up to the amount permitted under subdivision 3;
(2) the cost of acquiring land located in the district or abutting the boundary of
the district;
(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
(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.
EFFECTIVE DATE.This section is effective for districts for which the request for
certification is made after June 30, 2010.

    Sec. 31. Minnesota Statutes 2008, section 469.176, subdivision 4c, is amended to read:
    Subd. 4c. Economic development districts. (a) Revenue derived from tax
increment from an economic development district may not be used to provide
improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form
to developments consisting of buildings and ancillary facilities, if more than 15 percent
of the buildings and facilities (determined on the basis of square footage) are used for a
purpose other than:
(1) the manufacturing or production of tangible personal property, including
processing resulting in the change in condition of the property;
(2) warehousing, storage, and distribution of tangible personal property, excluding
retail sales;
(3) research and development related to the activities listed in clause (1) or (2);
(4) telemarketing if that activity is the exclusive use of the property;
(5) tourism facilities;
(6) qualified border retail facilities; or
(7) space necessary for and related to the activities listed in clauses (1) to (6).
(b) Notwithstanding the provisions of this subdivision, revenue derived from tax
increment from an economic development district may be used to pay for site preparation
and public improvements, if the following conditions are met:
(1) bedrock soils conditions are present in 80 percent or more of the acreage of
the district;
(2) the estimated cost of physical preparation of the site exceeds the fair market
value of the land before completion of the preparation; and
(3) revenues from tax increments are expended only for the additional costs of
preparing the site because of unstable soils and the bedrock soils condition, the additional
cost of installing public improvements because of unstable soils or the bedrock soils
condition, and reasonable administrative costs.
(c) (b) Notwithstanding the provisions of this subdivision, revenues derived from tax
increment from an economic development district may be used to provide improvements,
loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000
square feet of any separately owned commercial facility located within the municipal
jurisdiction of a small city, if the revenues derived from increments are spent only to
assist the facility directly or for administrative expenses, the assistance is necessary to
develop the facility, and all of the increments, except those for administrative expenses,
are spent only for activities within the district.
(d) For purposes of this subdivision, a qualified border retail facility is a development
consisting of a shopping center or one or more retail stores, if the authority finds that all
of the following conditions are satisfied:
(1) the district is in a small city located within one mile or less of the border of
the state;
(2) the development is not located in the seven-county metropolitan area, as defined
in section 473.121, subdivision 2;
(3) the development will contain new buildings or will substantially rehabilitate
existing buildings that together contain at least 25,000 square feet of retail space; and
(4) without the use of tax increment financing for the development, the development
or a similar competing development will instead occur in the bordering state or province.
(e) (c) A city is a small city for purposes of this subdivision if the city was a small
city in the year in which the request for certification was made and applies for the rest of
the duration of the district, regardless of whether the city qualifies or ceases to qualify
as a small city.
(d) Notwithstanding the requirements of paragraph (a) and the finding requirements
of section 469.174, subdivision 12, tax increments from an economic development district
may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or
assistance in any form to developments consisting of buildings and ancillary facilities, if
all the following conditions are met:
(1) the municipality finds that the project will create or retain jobs in this state,
including construction jobs, and that construction of the project would not have
commenced before July 1, 2011, without the authority providing assistance under the
provisions of this paragraph;
(2) construction of the project begins no later than July 1, 2011; and
(3) the request for certification of the district is made no later than June 30, 2011.
EFFECTIVE DATE.This section is effective the day following final enactment
and applies to any economic development district for which the request for certification
was made after June 30, 2009.

    Sec. 32. Minnesota Statutes 2008, section 469.176, is amended by adding a subdivision
to read:
    Subd. 4m. Temporary authority to stimulate construction. (a) Notwithstanding
the restrictions in any other subdivision of this section or any other law to the contrary,
except the requirement to pay bonds to which the increments are pledged and the
provisions of subdivisions 4g and 4h, the authority may spend tax increments for one or
more of the following purposes:
(1) to provide improvements, loans, interest rate subsidies, or assistance in any
form to private development consisting of the construction or substantial rehabilitation
of buildings and ancillary facilities, if doing so will create or retain jobs in this state,
including construction jobs, and that the construction commences before July 1, 2011, and
would not have commenced before that date without the assistance; or
(2) to make an equity or similar investment in a corporation, partnership, or limited
liability company that the authority determines is necessary to make construction of a
development that meets the requirements of clause (1) financially feasible.
(b) The authority may undertake actions under the authority of this subdivision only
after approval by the municipality of a written spending plan that specifically authorizes
the authority to take the actions. The municipality shall approve the spending plan only
after a public hearing after published notice in a newspaper of general circulation in
the municipality at least once, not less than ten days nor more than 30 days prior to the
date of the hearing.
(c) The authority to spend tax increments under this subdivision expires December
31, 2011.
EFFECTIVE DATE.This section is effective the day following final enactment
and applies to tax increments derived from a district, regardless of when the request for
certification was made.

    Sec. 33. Minnesota Statutes 2008, section 469.310, subdivision 6, is amended to read:
    Subd. 6. Job opportunity building zone or zone. "Job opportunity building zone"
or "zone" means a zone designated by the commissioner under section 469.314, and
includes an agricultural processing facility zone and a create automotive recovery zone.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 34. Minnesota Statutes 2008, section 469.310, subdivision 11, is amended to read:
    Subd. 11. Qualified business. (a) A person carrying on a trade or business at a place
of business located within a job opportunity building zone is a qualified business for the
purposes of sections 469.310 to 469.320 according to the criteria in paragraphs (b) to (f).
(b) A person is a qualified business only on those parcels of land for which the
person has entered into a business subsidy agreement, as required under section 469.313,
with the appropriate local government unit in which the parcels are located.
(c) Prior to execution of the business subsidy agreement, the local government
unit must consider the following factors:
(1) how wages compare to the regional industry average;
(2) the number of jobs that will be provided relative to overall employment in the
community;
(3) the economic outlook for the industry the business will engage in;
(4) sales that will be generated from outside the state of Minnesota;
(5) how the business will build on existing regional strengths or diversify the
regional economy;
(6) how the business will increase capital investment in the zone; and
(7) any other criteria the commissioner deems necessary.
(d) A person that relocates a trade or business from outside a job opportunity
building zone into a zone is not a qualified business unless the business meets all of the
requirements of paragraphs (b) and (c) and:
(1) increases full-time employment in the first full year of operation within the job
opportunity building zone by a minimum of five jobs or 20 percent, whichever is greater,
measured relative to the operations that were relocated and maintains the required level of
employment for each year the zone designation applies; and
(2) enters a binding written agreement with the commissioner that:
(i) pledges the business will meet the requirements of clause (1);
(ii) provides for repayment of all tax benefits enumerated under section 469.315 to
the business under the procedures in section 469.319, if the requirements of clause (1) are
not met for the taxable year or for taxes payable during the year in which the requirements
were not met; and
(iii) contains any other terms the commissioner determines appropriate.
(e) The commissioner may waive the requirements under paragraph (d), clause (1),
if the commissioner determines that the qualified business will substantially achieve
the factors under this subdivision.
(f) A business is not a qualified business if, at its location or locations in the zone,
the business is primarily engaged in making retail sales to purchasers who are physically
present at the business's zone location.
(g) A qualifying business must pay each employee compensation, including benefits
not mandated by law, that on an annualized basis is equal to at least 110 percent of the
federal poverty level for a family of four.
(h) A public utility, as defined in section 336B.01, is not a qualified business.
(i) A business operating in a create automotive recovery zone is a qualified business
only if it engages in the assembly of motor vehicles at the zone location.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 35. Minnesota Statutes 2008, section 469.310, is amended by adding a subdivision
to read:
    Subd. 14. Motor vehicle assembly facility. "Motor vehicle assembly facility"
means a manufacturing facility with at least 500 employees that is used to assemble motor
vehicles and is located in a city of the first class.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 36. Minnesota Statutes 2008, section 469.310, is amended by adding a subdivision
to read:
    Subd. 4a. Create automotive recovery zone. "Create automotive recovery zone"
means a zone designated by the commissioner under section 469.314 that contains a
motor vehicle assembly facility.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 37. Minnesota Statutes 2008, section 469.312, subdivision 1, is amended to read:
    Subdivision 1. Maximum size. A job opportunity building zone may not exceed
5,000 acres. For a zone designated as an agricultural processing facility zone, the zone
also may not exceed the size of a site necessary for the agricultural processing facility,
including ancillary operations and space for expansion in the reasonably foreseeable
future. For a zone designated as a create automotive recovery zone, the zone also may
not exceed the size of the site necessary for the assembly of motor vehicles, including
ancillary operations and space for expansion in the reasonably foreseeable future.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 38. Minnesota Statutes 2008, section 469.312, subdivision 3, is amended to read:
    Subd. 3. Outside metropolitan area. Except for a create automotive recovery zone,
the area of a job opportunity building zone must be located outside of the metropolitan
area, as defined in section 473.121, subdivision 2.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 39. Minnesota Statutes 2009 Supplement, section 469.312, subdivision 5, is
amended to read:
    Subd. 5. Duration limit. (a) The maximum duration of a zone is 12 years. The
applicant may request a shorter duration. The commissioner may specify a shorter
duration, regardless of the requested duration.
(b) The duration limit under this subdivision and the duration of the zone for
purposes of allowance of tax incentives described in section 469.315 is extended by three
calendar years for each parcel of property that meets the following requirements:
(1) the qualified business operates an ethanol plant, as defined in section 41A.09, on
the site that includes the parcel; and
(2) the business subsidy agreement was executed after April 30, 2006.
(c) The duration limit under this subdivision and the duration of the zone for
purposes of allowance of tax incentives described in section 469.315 is extended by five
calendar years for each parcel of property that meets the following requirements:
(1) the parcel is located in a county with an unemployment rate that on the date that
the business subsidy agreement is executed (i) equals or exceeds ten percent or (ii) is ten
percent higher than the statewide average;
(2) the operations of the qualified business on the site include:
(i) its headquarters;
(ii) facilities for research and development; and
(iii) the manufacturing of products, used by the building, transport, consumer
products, and industrial products sectors, that reduce the use of or increase the efficiency
of the use of energy resources and that are manufactured using innovative and high
technology processes; and
(3) the business subsidy agreement is executed after July 1, 2009, and before July 1,
2011.
(d) The duration of a create automotive recovery zone is 12 years from the date of
the designation of a zone by the commissioner under section 469.314, subdivision 4,
paragraph (g).
(e) The duration limit under this subdivision and the duration of the zone for
purposes of allowance of tax incentives described in section 469.315 is extended by five
calendar years for each parcel of property that meets the following requirements:
(1) the parcel is located in a county with an unemployment rate for any of the twelve
months preceding the date on which the business subsidy agreement is executed that (i)
equals or exceeds ten percent or (ii) is ten percent higher than the statewide average;
(2) the qualified business is engaged in the business of manufacturing wind turbines
and related products for the generation of energy, and the parcel includes one or more of
the following facilities of the qualified business:
(i) the headquarters of the business in this country;
(ii) training facilities; or
(iii) manufacturing facilities; and
(3) the initial business subsidy agreement is executed after July 1, 2010, and before
November 1, 2011.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 40. Minnesota Statutes 2008, section 469.314, subdivision 1, is amended to read:
    Subdivision 1. Commissioner to designate. (a) The commissioner, in consultation
with the commissioner of revenue, shall designate not more than ten job opportunity
building zones and not more than one create automotive recovery zone. In making the
designations, the commissioner shall consider need and likelihood of success to yield the
most economic development and revitalization of economically distressed rural areas
of Minnesota.
(b) In addition to the designations under paragraph (a), the commissioner may, in
consultation with the commissioners of agriculture and revenue, designate up to five
agricultural processing facility zones.
(c) The commissioner may, upon designation of a zone, modify the development
plan, including the boundaries of the zone or subzones, if in the commissioner's opinion
a modified plan would better meet the objectives of the job opportunity building zone
program. The commissioner shall notify the applicant of the modification and provide a
statement of the reasons for the modifications.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 41. Minnesota Statutes 2008, section 469.314, subdivision 4, is amended to read:
    Subd. 4. Designation schedule. (a) The schedule in paragraphs (b) to (f) applies to
the designation of job opportunity building zones. Paragraph (g) applies to the designation
of a create automotive recovery zone.
(b) The commissioner shall publish the form for applications and any procedural,
form, or content requirements for applications by no later than August 1, 2003. The
commissioner may publish these requirements on the Internet, in the State Register, or by
any other means the commissioner determines appropriate to disseminate the information
to potential applicants for designation.
(c) Applications must be submitted by October 15, 2003.
(d) The commissioner shall designate the zones by no later than December 31, 2003.
(e) The designation of the zones takes effect January 1, 2004.
(f) The commissioner may reserve one or more of the ten authorized zones for a
second round of designations in calendar year 2004. If the commissioner chooses to
reserve designations for this purpose, the commissioner shall establish the schedule for the
second round of designations, notwithstanding the dates in paragraphs (c), (d), and (e).
The commissioner shall allow a period of at least 90 days for submission of applications
after notification of the second round. A zone designated in the second round takes effect
on January 1, 2005.
(g) The commissioner may accept applications for a create automotive recovery
zone at any time before January 1, 2016. The commissioner may designate a create
automotive recovery zone at any time after December 31, 2011, and before January 1,
2016, but only if the applicant has entered a written agreement with a qualified business
committing to make a capital investment of at least $100,000,000 to improve or retrofit a
motor vehicle assembly facility located in the zone.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 42. Minnesota Statutes 2008, section 469.315, is amended to read:
469.315 TAX INCENTIVES AVAILABLE IN ZONES.
Qualified businesses that operate in a job opportunity building zone, individuals who
invest in a qualified business that operates in a job opportunity building zone, and property
located in a job opportunity building zone qualify for:
(1) exemption from individual income taxes as provided under section 469.316;
(2) exemption from corporate franchise taxes as provided under section 469.317;
(3) exemption from the state sales and use tax and any local sales and use taxes on
qualifying purchases as provided in section 297A.68, subdivision 37;
(4) exemption from the state sales tax on motor vehicles and any local sales tax on
motor vehicles as provided under section 297B.03;
(5) exemption from the property tax as provided in section 272.02, subdivision 64;
(6) exemption from the wind energy production tax under section 272.029,
subdivision 7
; and
(7) the jobs credit allowed under section 469.318, except that a qualified business
located in a create automotive recovery zone is not eligible for the credit under section
469.318 but is eligible for the credit under section 469.3181.
EFFECTIVE DATE.This section is effective for taxable years beginning after
December 31, 2011.

    Sec. 43. [469.3181] CREATE AUTOMOTIVE RECOVERY JOBS CREDIT.
    Subdivision 1. Credit allowed. (a) A qualified business located in a create
automotive recovery zone is allowed a credit against the tax imposed under chapter 290
equal to $2,500 times the number of full-time equivalent employees receiving wages from
the qualified business for working at the facility during the taxable year. The qualified
business is allowed an additional credit equal to $1,000 times the number of full-time
equivalent employees receiving wages from the qualified business for working at the
facility during the taxable year in excess of 750 employees.
(b) For purposes of this section, "employee" and "wages" have the meanings given
them in section 290.92, subdivisions 1 and 3.
(c) For purposes of this section, "full-time equivalent employees" means the
equivalent of annualized expected hours of work equal to 2,080 hours.
    Subd. 2. Refundable. If the amount of the credit exceeds the liability for tax under
chapter 290, the commissioner of revenue shall refund the excess to the qualified business.
    Subd. 3. Appropriation. An amount sufficient to pay the refunds authorized by this
section is appropriated to the commissioner of revenue from the general fund.
    Subd. 4. Manner of claiming credit. The commissioner shall prescribe the manner
in which the credit may be issued or claimed. This may include allowing the credit only as
a separately processed claim for refund.
EFFECTIVE DATE.This section is effective for taxable years beginning after
December 31, 2011.

    Sec. 44. Laws 1986, chapter 391, section 1, is amended to read:
    Section 1.
    The legislature finds that providing areawide and local financial assistance,
including the provision of security for debt financing, but not including direct subsidies to
private interests, in the development of the former metropolitan stadium site Industrial
Development District 1 (Airport South) of the city of Bloomington, as amended, including
any phase of the Mall of America, and the Old Cedar Avenue Bridge, is a public purpose
of state, metropolitan, and local government in Minnesota and that it is a benefit to the
metropolitan area within the purpose of the metropolitan revenue distribution program
pursuant to chapter 473F.
EFFECTIVE DATE.This section is effective upon local approval of and
compliance by the governing body of the city of Bloomington with the requirements
of Minnesota Statutes, section 645.021.

    Sec. 45. 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. 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.
EFFECTIVE DATE.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).

    Sec. 46. 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, and Columbia Heights, and Brooklyn
Park, the authority may designate up to 50 100 parcels in the city to be included in a
housing replacement district over the life of a district or districts. 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 400 500 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.
EFFECTIVE DATE.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).

    Sec. 47. Laws 2006, chapter 259, article 10, section 14, subdivision 3, is amended to
read:
    Subd. 3. Application of tax increment law. Minnesota Statutes, sections 469.174
to 469.179, shall apply to the administration of the district, except:
    (1) as this section provides otherwise; and
    (2) with respect to the portion of the increment to be expended for homeless shelter
and services pursuant to subdivision 5, paragraph (b):
    (i) the use for which tax increment that may be expended is as provided by
subdivision 5; and
    (ii) Minnesota Statutes, sections 469.1761 and 469.1763, do not apply; and
    (iii) tax increment may be used for reimbursement of costs incurred at any time after
the effective date of this section, even if incurred prior to establishment of the district or
execution of a city tax increment agreement.
EFFECTIVE DATE.This section is effective upon compliance by the city of
Minneapolis with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

    Sec. 48. Laws 2008, chapter 366, article 5, section 28, subdivision 1, is amended to
read:
    Subdivision 1. Additional taxes authorized; use of proceeds. (a) 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 any phase of the Mall of America
phase II. 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.
    (b) As a condition of developing a hotel as part of the 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 of the Mall of America 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.
EFFECTIVE DATE.This section is effective upon local approval of and
compliance by the governing body of the city of Bloomington with the requirements
of Minnesota Statutes, section 645.021, except that the provisions of paragraph (b) are
effective if the city of Bloomington approves any one of sections 49, 50, 51, 52, or 62,
paragraph (b).

    Sec. 49. Laws 2008, chapter 366, article 5, section 28, subdivision 2, is amended to
read:
    Subd. 2. Sales tax. The city of Bloomington may charter a special taxing authority,
which is a separate political subdivision. The geographic area of the special taxing
authority consists of Tax Increment Financing Districts No. 1-C and No. 1-G in the
city. The city council is the governing body of the special taxing authority. The special
taxing authority may impose, by resolution, a sales tax of not less than one-half of one
percent and not more than one percent within its boundaries. The provisions of Minnesota
Statutes, section 297A.99, except for subdivisions 2 and 3, govern the imposition,
administration, collection, and enforcement of the tax authorized in this subdivision.
EFFECTIVE DATE.This section is effective upon local approval and compliance
by the governing body of the city of Bloomington with the provisions of Minnesota
Statutes, section 645.021.

    Sec. 50. 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 any phase II 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.
EFFECTIVE DATE.This section is effective upon local approval of and
compliance by the governing body of the city of Bloomington with the requirements
of Minnesota Statutes, section 645.021.

    Sec. 51. 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
related other public improvements for any phase II 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.
EFFECTIVE DATE.This section is effective upon local approval of and
compliance by the governing body of the city of Bloomington with the requirements
of Minnesota Statutes, section 645.021.

    Sec. 52. 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 any phase II 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.
EFFECTIVE DATE.This section is effective upon local approval of and
compliance by the governing body of the city of Bloomington with the requirements
of Minnesota Statutes, section 645.021.

    Sec. 53. Laws 2009, chapter 78, article 7, section 2, is amended to read:
    Sec. 2. IRON RANGE RESOURCES AND REHABILITATION; EARLY
SEPARATION INCENTIVE PROGRAM AUTHORIZATION.
(a) Notwithstanding any law to the contrary, the commissioner of Iron Range
resources and rehabilitation, in consultation with the commissioner of management and
budget, may shall offer a targeted early separation incentive program for employees of the
commissioner who have attained the age of 60 years or who have received credit for at
least 30 years of allowable service under the provisions of Minnesota Statutes, chapter 352.
(b) The early separation incentive program may include one or more of the following:
(1) employer-paid postseparation health, medical, and dental insurance until age
65; and
(2) cash incentives that may, but are not required to be, used to purchase additional
years of service credit through the Minnesota State Retirement System, to the extent that
the purchases are otherwise authorized by law.
(c) The commissioner of Iron Range resources and rehabilitation shall establish
eligibility requirements for employees to receive an incentive.
(d) The commissioner of Iron Range resources and rehabilitation, consistent with the
established program provisions under paragraph (b), and with the eligibility requirements
under paragraph (c), may designate specific programs or employees as eligible to be
offered the incentive program.
(e) Acceptance of the offered incentive must be voluntary on the part of the
employee and must be in writing. The incentive may only be offered at the sole discretion
of the commissioner of Iron Range resources and rehabilitation.
(f) The cost of the incentive is payable solely by funds made available to the
commissioner of Iron Range resources and rehabilitation by law, but only on prior approval
of the expenditures by a majority of the Iron Range Resources and Rehabilitation Board.
(g) This section and section 3 are repealed June 30, 2011 December 31, 2012.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 54. CITY OF ST. PAUL; AUTHORITY TO EXERCISE SPECIAL LAW
AUTHORITY.
Notwithstanding the failure of the governing body of the city of St. Paul 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 without local approval under Minnesota Statutes, section 645.023, subdivision
1, paragraph (a).
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 55. OAKDALE; TAX INCREMENT FINANCING DISTRICT.
    Subdivision 1. Duration of district. Notwithstanding the provisions of Minnesota
Statutes, section 469.176, subdivision 1b, the city of Oakdale may collect tax increments
from Tax Increment Financing District No. 6 (Bergen Plaza) through December 31, 2024,
subject to the conditions described in subdivision 2.
    Subd. 2. Conditions for extension. (a) Subdivision 1 applies only if the following
conditions are met:
(1) by July 1, 2011, the city of Oakdale has entered into a development agreement
with a private developer for development or redevelopment of all or a substantial part of
the area; and
(2) by November 1, 2011, the city of Oakdale or a private developer commences
construction of streets, traffic improvements, water, sewer, or related infrastructure that
serves one or both of the parcels with the following parcel identification numbers:
2902921330001 and 2902921330005. For the purposes of this section, construction
commences upon grading or other visible improvements that are part of the subject
infrastructure.
(b) All tax increments received by the city of Oakdale under subdivision 1
after December 31, 2016, must be used only to pay costs that are both (1) related to
redevelopment of the parcels specified in this subdivision including, without limitation,
any of the infrastructure referenced in this subdivision; and (2) otherwise eligible under
law to be paid with increments from the specified tax increment financing district, except
the authority under this clause does not apply to increments collected after the conclusion
of the duration limit under general law.
EFFECTIVE DATE.This section is effective upon compliance by the governing
body of the city of Oakdale with the requirements of Minnesota Statutes, sections
469.1782, subdivision 2, and 645.021, subdivision 3.

    Sec. 56. CITY OF NORTH MANKATO; TAX INCREMENT FINANCING
DISTRICT; PROJECT REQUIREMENTS.
    Subdivision 1. Addition of parcel to district. 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:
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).
    Subd. 2. Five-year rule. Minnesota Statutes, section 469.1763, subdivision 3, does
not apply to Tax Increment Financing District No. IDD 1-8, as enlarged.
    Subd. 3. Original tax capacity of district. 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.
    Subd. 4. Use of increments. Tax increments and other revenues derived from any
portion of Tax Increment Financing District No. IDD 1-8, as enlarged, may be used:
(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
(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.
    Subd. 5. Approval and effect of modification. When the governing body of the
city elects to exercise the authority provided in subdivision 1 to modify the district, the
following conditions apply:
(1) it must comply with Minnesota Statutes, section 469.175, subdivision 4, except
for paragraph (d); and
(2) beginning with the subsequent calendar year, except as otherwise explicitly
provided in this section, the district is subject to the provisions of Minnesota Statutes,
sections 469.174 to 469.1794, as if the request for certification of the entire district had
been made on the date the city elected to exercise the authority provided in subdivision 1.
    Subd. 6. Conditions. The authority granted by this section may only be exercised
by the city if:
(1) by July 1, 2011, the city has entered into a development agreement with a private
developer for redevelopment of all or a substantial part of the area; and
(2) substantial and ongoing construction of improvements for the project has begun
by November 1, 2011.
EFFECTIVE DATE.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.

    Sec. 57. CITY OF COHASSET; USE OF TAX INCREMENTS.
(a) The authority operating Tax Increment Financing Districts No. 2-1 and No.
3-1 in the city of Cohasset may transfer tax increments from each of those districts to
the city in an amount equal to the advances made by the city from its general fund to
finance expenditures under Minnesota Statutes, section 469.176, subdivision 4, for the
benefit of that district.
(b) The authority granted by this section may only be exercised by the authority if,
by July 1, 2011, the authority has entered into a development agreement with a private
developer of property to be served by the road financed by the expenditures under this
section and if substantial and ongoing construction has begun by November 1, 2011.
EFFECTIVE DATE.This section is effective the day following final enactment,
upon approval by the governing body of the city of Cohasset and compliance with
Minnesota Statutes, section 645.021, subdivision 3.

    Sec. 58. 2010 DISTRIBUTIONS ONLY.
    For distributions in 2010 only, a special fund is established to receive 28.757 cents
per ton that otherwise would be allocated under Minnesota Statutes, section 298.28,
subdivision 6:
    (1) 0.764 cent per ton must be paid to Northern Minnesota Dental to provide
incentives for at least two dentists to establish dental practices in high-need areas of the
taconite tax relief area;
(2) 0.955 cent per ton must be paid to the city of Virginia for repairs and geothermal
heat at the Olcott Park Greenhouse/Virginia Commons project;
(3) 0.796 cent per ton must be paid to the city of Virginia for health and safety
repairs at the Miners Memorial;
(4) 1.114 cents per ton must be paid to the city of Eveleth for the reconstruction
of Highway 142/Grant and Park Avenues;
(5) 0.478 cent per ton must be paid to the Greenway Joint Recreation Board for
upgrades and capital improvements to the public arena in Coleraine;
(6) 0.796 cent per ton must be paid to the city of Calumet for water treatment and
pumphouse modifications;
(7) 0.159 cent per ton must be paid to the city of Bovey for residential and
commercial claims for water damage due to water and flood-related damage caused by
the Canisteo Pit;
(8) 0.637 cent per ton must be paid to the city of Nashwauk for a community and
child care center;
(9) 0.637 cent per ton must be paid to the city of Keewatin for water and sewer
upgrades;
(10) 0.637 cent per ton must be paid to the city of Marble for the city hall and
library project;
(11) 0.955 cent per ton must be paid to the city of Grand Rapids for extension of
water and sewer services for Lakewood Housing;
(12) 0.159 cent per ton must be paid to the city of Grand Rapids for exhibits at
the Children's Museum;
(13) 0.637 cent per ton must be paid to the city of Grand Rapids for Block 20/21 soil
corrections. This amount must be matched by local sources;
(14) 0.605 cent per ton must be paid to the city of Aitkin for three water loops;
(15) 0.048 cent per ton must be paid to the city of Aitkin for signage;
(16) 0.159 cent per ton must be paid to Aitkin County for a trail;
(17) 0.637 cent per ton must be paid to the city of Cohasset for the Beiers Road
railroad crossing;
(18) 0.088 cent per ton must be paid to the town of Clinton for expansion and
striping of the community center parking lot;
(19) 0.398 cent per ton must be paid to the city of Kinney for water line replacement;
(20) 0.796 cent per ton must be paid to the city of Gilbert for infrastructure
improvements, milling, and overlay for Summit Street between Alaska Avenue and
Highway 135;
(21) 0.318 cent per ton must be paid to the city of Gilbert for sanitary sewer main
replacements and improvements in the Northeast Lower Alley area;
(22) 0.637 cent per ton must be paid to the town of White for replacement of the
Stepetz Road culvert;
(23) 0.796 cent per ton must be paid to the city of Buhl for reconstruction of Sharon
Street and associated infrastructure;
(24) 0.796 cent per ton must be paid to the city of Mountain Iron for site
improvements at the Park Ridge development;
(25) 0.796 cent per ton must be paid to the city of Mountain Iron for infrastructure
and site preparation for its renewable and sustainable energy park;
(26) 0.637 cent per ton must be paid to the city of Biwabik for sanitary sewer
improvements;
(27) 0.796 cent per ton must be paid to the city of Aurora for alley and road
rebuilding for the Summit Addition;
(28) 0.955 cent per ton must be paid to the city of Silver Bay for bioenergy facility
improvements;
(29) 0.318 cent per ton must be paid to the city of Grand Marais for water and
sewer infrastructure improvements;
(30) 0.318 cent per ton must be paid to the city of Orr for airport, water, and sewer
improvements;
(31) 0.716 cent per ton must be paid to the city of Cook for street and bridge
improvements;
(32) 0.955 cent per ton must be paid to the city of Ely for street, water, and sewer
improvements;
(33) 0.318 cent per ton must be paid to the city of Tower for water and sewer
improvements;
(34) 0.955 cent per ton must be paid to the city of Two Harbors for water and sewer
improvements;
(35) 0.637 cent per ton must be paid to the city of Babbitt for water and sewer
improvements;
(36) 0.096 cent per ton must be paid to the township of Duluth for infrastructure
improvements;
(37) 0.096 cent per ton must be paid to the township of Tofte for infrastructure
improvements;
(38) 3.184 cents per ton must be paid to the city of Hibbing for sewer improvements;
(39) 1.273 cents per ton must be paid to the city of Chisholm for NW Area Project
infrastructure improvements;
(40) 0.318 cent per ton must be paid to the city of Chisholm for health and safety
improvements at the athletic facility;
(41) 0.796 cent per ton must be paid to the city of Hoyt Lakes for residential street
improvements;
(42) 0.796 cent per ton must be paid to the Bois Forte Indian Reservation for
infrastructure related to a housing development;
(43) 0.159 cent per ton must be paid to Balkan Township for building improvements;
(44) 0.159 cent per ton must be paid to the city of Grand Rapids for a grant to
a nonprofit for a signage kiosk;
(45) 0.318 cent per ton must be paid to the city of Crane Lake for sanitary sewer
lines and adjacent development near County State-Aid Highway 24; and
(46) 0.159 cent per ton must be paid to the city of Chisholm to rehabilitate historic
wall infrastructure around the athletic complex.
EFFECTIVE DATE.This section is effective for the 2010 distribution, all of which
must be made in the August 2010 payment.

    Sec. 59. CITY OF EAST GRAND FORKS; PERMITTED USE OF TIF.
    Notwithstanding any other law to the contrary or the provisions of the tax increment
financing plan, the governing body of the city of East Grand Forks may authorize, by
resolution, the expenditure of tax increments from redevelopment district 1-1, 1-2 or
both for the purpose of making improvements to the Red River State Recreation Area,
including the construction of additional campsites. If so authorized, the expenditures are
permitted expenditures of tax increments by the authority.
EFFECTIVE DATE.This section is effective the day following final enactment
without local approval.

    Sec. 60. CITY OF ST. PAUL; TAX INCREMENT FINANCING DISTRICT.
    (a) Minnesota Statutes, section 469.1763, subdivisions 2 and 3, and section 469.176,
subdivision 4, paragraph (j), do not apply to the expenditure of the tax increments from
the Snelling University tax increment financing district (county #135) established by the
Housing and Redevelopment Authority of the city of St. Paul.
    (b) The authority granted by this section only applies to expenditure of increments
for the construction of improvements to a project or projects, including necessary related
costs, on which substantial and ongoing construction has begun by July 1, 2011.
EFFECTIVE DATE.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.

    Sec. 61. PROHIBITION ON USE FOR SPORTS FACILITIES.
No provision of this act may be used to assist the state, any subdivision or agency of
the state, a local government, or any private entity or person in financing or constructing a
stadium or ballpark.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 62. REPEALER.
(a) Minnesota Statutes 2008, section 290.06, subdivision 34, is repealed.
(b) Laws 1996, chapter 464, article 1, section 8, subdivision 5, is repealed.
EFFECTIVE DATE.Paragraph (a) is effective for taxable years beginning after
December 31, 2009. Paragraph (b) is effective upon local approval of and compliance
by the governing body of the city of Bloomington with the requirements of Minnesota
Statutes, section 645.021.
Presented to the governor March 29, 2010
Signed by the governor April 1, 2010, 11:20 a.m.

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569