1.1 	A bill for an act
1.2 	relating to economic development; modifying the purpose of the Minnesota 
1.3 	Investment Fund; adding a new condition for the evaluation of Minnesota 
1.4 	Investment Fund projects; amending Minnesota Statutes 2004, section 116J.8731, 
1.5 	subdivisions 1, 4.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 116J.8731, subdivision 1, is amended to 
1.8 	read:
1.9 		Subdivision 1.Purpose. The Minnesota investment fund is created to provide 
1.10 	financial assistance, through partnership with communities, for the creation of new 
1.11 	employment or to maintain existing employment, and for business start-up, expansions, 
1.12 	and retention. It shall accomplish these goals by the following means:
1.13 	(1) creation or retention of permanent private-sector jobs in order to create 
1.14 	above-average economic growth consistent with environmental protection, which includes 
1.15 	investments in technology and equipment that increase productivity and provide for a 
1.16 	higher wage;
1.17 	(2) stimulation or leverage of private investment to ensure economic renewal and 
1.18 	competitiveness;
1.19 	(3) increasing the local tax base, based on demonstrated measurable outcomes, to 
1.20 	guarantee a diversified industry mix;
1.21 	(4) improving the quality of existing jobs, based on increases in wages or 
1.22 	improvements in the job duties, training, or education associated with those jobs;
1.23 	(5) improvement of employment and economic opportunity for citizens in the region 
1.24 	to create a reasonable standard of living, consistent with federal and state guidelines 
1.25 	on low- to moderate-income persons; ~~and~~
2.1 	(6) stimulation of productivity growth through improved manufacturing or new 
2.2 	technologies, including cold weather testing; and 
2.3 	(7) promoting businesses that convert to manufacturing environmentally safe 
2.4 	products.

2.5 	Sec. 2. Minnesota Statutes 2004, section 116J.8731, subdivision 4, is amended to read:
2.6 		Subd. 4.Eligible projects. Assistance must be evaluated on the existence of the 
2.7 	following conditions:
2.8 	(1) creation of new jobs, retention of existing jobs, or improvements in the quality of 
2.9 	existing jobs as measured by the wages, skills, or education associated with those jobs;
2.10 	(2) increase in the tax base;
2.11 	(3) the project can demonstrate that investment of public dollars induces private 
2.12 	funds;
2.13 	(4) the project can demonstrate an excessive public infrastructure or improvement 
2.14 	cost beyond the means of the affected community and private participants in the project;
2.15 	(5) the project provides higher wage levels to the community or will add value to 
2.16 	current workforce skills;
2.17 	(6) the project encourages environmentally safe production and products; 
2.18 	(7) whether assistance is necessary to retain existing business; and
2.19 	~~(7)~~ (8) whether assistance is necessary to attract out-of-state business.
2.20 	A grant or loan cannot be made based solely on a finding that the conditions in 
2.21 	clause ~~(6) or~~ (7) or (8) exist. A finding must be made that a condition in clause (1), (2), 
2.22 	(3), (4), or (5) also exists.
2.23 	Applications recommended for funding shall be submitted to the commissioner.