1.1                          A bill for an act 
  1.2             relating to state government; providing for 
  1.3             infrastructure development; providing an income and 
  1.4             franchise tax credit for contributions to 
  1.5             infrastructure; dedicating certain tax proceeds to 
  1.6             infrastructure development; appropriating money; 
  1.7             amending Minnesota Statutes 1996, section 290.62; 
  1.8             Minnesota Statutes 1997 Supplement, section 16A.152, 
  1.9             subdivision 2; proposing coding for new law in 
  1.10            Minnesota Statutes, chapters 16A; and 290. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 1997 Supplement, section 
  1.13  16A.152, subdivision 2, is amended to read: 
  1.14     Subd. 2.  [ADDITIONAL REVENUES; PRIORITY.] If on the basis 
  1.15  of a forecast of general fund revenues and expenditures after 
  1.16  November 1 in an odd-numbered year, the commissioner of finance 
  1.17  determines that there will be a positive unrestricted budgetary 
  1.18  general fund balance at the close of the biennium, the 
  1.19  commissioner of finance must allocate money as follows: 
  1.20     (a) first, to the budget reserve until the total amount in 
  1.21  the account equals $522,000,000; then 
  1.22     (b) 60 percent to the property tax reform account 
  1.23  established in section 16A.1521; and 
  1.24     (c) 40 percent is an unrestricted balance in the general 
  1.25  fund to the build Minnesota infrastructure account established 
  1.26  in section 16A.1522. 
  1.27     The amounts necessary to meet the requirements of this 
  1.28  section are appropriated from the general fund within two weeks 
  2.1   after the forecast is released. 
  2.2      Sec. 2.  [16A.1522] [BUILD MINNESOTA INFRASTRUCTURE 
  2.3   ACCOUNT.] 
  2.4      (a) A build Minnesota infrastructure account is established 
  2.5   in the general fund. 
  2.6      (b) Amounts in the account are available for and may only 
  2.7   be spent as appropriated by law on infrastructure as follows: 
  2.8      (1) 50 percent of amounts in the account are credited to a 
  2.9   metropolitan development fund dedicated to funding 
  2.10  infrastructure projects in the seven-county metropolitan area; 
  2.11  and 
  2.12     (2) 50 percent of amounts in the account are credited to a 
  2.13  greater Minnesota development fund dedicated to funding 
  2.14  infrastructure projects located outside the seven-county 
  2.15  metropolitan area. 
  2.16     Sec. 3.  [290.0675] [CREDIT FOR CONTRIBUTIONS TO 
  2.17  INFRASTRUCTURE.] 
  2.18     (a) A credit is allowed against the tax imposed under this 
  2.19  chapter for the taxable year equal to the aggregate amount of 
  2.20  charitable contributions made during the taxable year to the 
  2.21  state of Minnesota for deposit in the build Minnesota 
  2.22  infrastructure account established in section 16A.1522. 
  2.23     (b) The credit for the taxable year may not exceed the 
  2.24  liability for tax under this chapter.  Unused portions of the 
  2.25  credit may not be carried to another taxable year. 
  2.26     Sec. 4.  Minnesota Statutes 1996, section 290.62, is 
  2.27  amended to read: 
  2.28     290.62 [DISTRIBUTION OF REVENUES.] 
  2.29     All revenues derived from the taxes, interest, penalties 
  2.30  and charges under this chapter shall, notwithstanding any other 
  2.31  provisions of law, be paid into the state treasury and credited 
  2.32  to the general fund, and be distributed as follows: 
  2.33     (1) There shall, notwithstanding any other provision of the 
  2.34  law, be paid from this general fund all refunds of taxes 
  2.35  erroneously collected from taxpayers under this chapter as 
  2.36  provided herein; 
  3.1      (2) There is hereby appropriated to the persons entitled to 
  3.2   payment herein, from the fund or account in the state treasury 
  3.3   to which the money was credited, an amount sufficient to make 
  3.4   the refund and payment; and 
  3.5      (3) $50,000,000 of the proceeds of the corporate franchise 
  3.6   tax imposed under section 290.06, subdivision 1, shall be 
  3.7   annually credited to the build Minnesota infrastructure account 
  3.8   established in section 16A.1522. 
  3.9      Sec. 5.  [EFFECTIVE DATE.] 
  3.10     Sections 3 and 4 are effective for taxable years beginning 
  3.11  after December 31, 1997.