<div class="xtend">
         <div class="xtend_ce"><a id="pl.1.1"></a><var>1.1</var>A bill for an act<br />
            		
         </div><a id="pl.1.2"></a><var>1.2</var>relating to taxes; creating a Tax Expenditure Advisory Commission; providing <br />
         		<a id="pl.1.3"></a><var>1.3</var>for review and sunset of tax expenditures;proposing coding for new law as <br />
         		<a id="pl.1.4"></a><var>1.4</var>Minnesota Statutes, chapter 290D.<br />
         		<a id="pl.1.5"></a><var>1.5</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br />
         		<br />
         		<a id="bill.0.1.0"></a><a id="pl.1.6"></a><var>1.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. <b>[290D.01] TITLE AND PURPOSE.</b><br />
         		<a id="pl.1.7"></a><var>1.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Citation.</b> This chapter shall be known and cited as the Tax <br />
         		<a id="pl.1.8"></a><var>1.8</var>Expenditure Review Act.<br />
         		<a id="pl.1.9"></a><var>1.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Purpose.</b> State governmental policy objectives may be achieved both <br />
         		<a id="pl.1.10"></a><var>1.10</var>by direct expenditure of governmental funds and by granting special and selective tax <br />
         		<a id="pl.1.11"></a><var>1.11</var>preferences or tax expenditures. Both direct expenditures of governmental funds and tax <br />
         		<a id="pl.1.12"></a><var>1.12</var>expenditures have an effect on the ability of state and local governments to reduce general <br />
         		<a id="pl.1.13"></a><var>1.13</var>tax rates or to increase expenditures; therefore, tax expenditures should be subject to <br />
         		<a id="pl.1.14"></a><var>1.14</var>regular review and reauthorization in a manner similar to direct expenditures.<br />
         		<br />
         		<a id="bill.0.2.0"></a><a id="pl.1.15"></a><var>1.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. <b>[290D.02] DEFINITIONS.</b><br />
         		<a id="pl.1.16"></a><var>1.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Applicability.</b> For purposes of this chapter, the following terms have <br />
         		<a id="pl.1.17"></a><var>1.17</var>the meanings given in this section unless the context clearly indicates a different meaning.<br />
         		<a id="pl.1.18"></a><var>1.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Commission.</b> "Commission" means the Tax Expenditure Advisory <br />
         		<a id="pl.1.19"></a><var>1.19</var>Commission.<br />
         		<a id="pl.1.20"></a><var>1.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Commissioner.</b> "Commissioner" means the commissioner of revenue or a <br />
         		<a id="pl.1.21"></a><var>1.21</var>person to whom the commissioner has delegated functions.<br />
         		<a id="pl.1.22"></a><var>1.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Tax expenditure.</b> "Tax expenditure" has the meaning given in section <br />
         		<a id="pl.1.23"></a><var>1.23</var>270C.11, subdivision 6.<br />
         		<a id="pl.2.1"></a><var>2.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Tax.</b> "Tax" has the meaning given in section 270C.11, subdivision 6.<br />
         		<br />
         		<a id="bill.0.3.0"></a><a id="pl.2.2"></a><var>2.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. <b>[290D.03] TAX EXPENDITURE ADVISORY COMMISSION.</b><br />
         		<a id="pl.2.3"></a><var>2.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Membership.</b> The Tax Expenditure Advisory Commission consists <br />
         		<a id="pl.2.4"></a><var>2.4</var>of 12 members appointed by the governor, as follows:<br />
         		<a id="pl.2.5"></a><var>2.5</var>(1) three senators and three members of the house of representatives, including the <br />
         		<a id="pl.2.6"></a><var>2.6</var>chairs of the house of representatives and senate committees with jurisdiction over taxes, <br />
         		<a id="pl.2.7"></a><var>2.7</var>with no more than three of the six legislators being from the same political party; and<br />
         		<a id="pl.2.8"></a><var>2.8</var>(2) six public members, including at least one who must be a citizen representing <br />
         		<a id="pl.2.9"></a><var>2.9</var>working families, one must be a representative of a nonprofit organization, one must be a <br />
         		<a id="pl.2.10"></a><var>2.10</var>person with experience in economic or business development, and the remainder shall be <br />
         		<a id="pl.2.11"></a><var>2.11</var>individuals who have a basic understanding of state tax policy, government operations, <br />
         		<a id="pl.2.12"></a><var>2.12</var>and public services.<br />
         		<a id="pl.2.13"></a><var>2.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Terms.</b> Legislative members serve two-year terms expiring September 1 of <br />
         		<a id="pl.2.14"></a><var>2.14</var>each odd-numbered year. Public members serve two-year terms expiring September 1 of <br />
         		<a id="pl.2.15"></a><var>2.15</var>each odd-numbered year.<br />
         		<a id="pl.2.16"></a><var>2.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Limits.</b> Members who are not chairs of a house of representatives or senate <br />
         		<a id="pl.2.17"></a><var>2.17</var>committee with jurisdiction over taxes are subject to the following restrictions:<br />
         		<a id="pl.2.18"></a><var>2.18</var>(1) after an individual serves four years on the commission, the individual is not <br />
         		<a id="pl.2.19"></a><var>2.19</var>eligible for appointment to another term or part of a term;<br />
         		<a id="pl.2.20"></a><var>2.20</var>(2) a legislative member who serves a full term may not be appointed to an <br />
         		<a id="pl.2.21"></a><var>2.21</var>immediately succeeding term; and<br />
         		<a id="pl.2.22"></a><var>2.22</var>(3) a public member may not serve consecutive terms, and, for purposes of this <br />
         		<a id="pl.2.23"></a><var>2.23</var>prohibition, a member is considered to have served a term only if the member has served <br />
         		<a id="pl.2.24"></a><var>2.24</var>more than one-half of the term.<br />
         		<a id="pl.2.25"></a><var>2.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Appointments.</b> The governor shall make appointments before September <br />
         		<a id="pl.2.26"></a><var>2.26</var>1 of each odd-numbered year.<br />
         		<a id="pl.2.27"></a><var>2.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Legislative members.</b> If a legislative member ceases to be a member <br />
         		<a id="pl.2.28"></a><var>2.28</var>of the legislative body from which the member was appointed, the member vacates <br />
         		<a id="pl.2.29"></a><var>2.29</var>membership on the commission. If a legislative member who is a chair of a house of <br />
         		<a id="pl.2.30"></a><var>2.30</var>representatives or senate committee with jurisdiction over taxes ceases to be a chair of that <br />
         		<a id="pl.2.31"></a><var>2.31</var>committee, the member vacates membership on the commission.<br />
         		<a id="pl.2.32"></a><var>2.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Vacancies.</b> If a vacancy occurs, the governor shall appoint a person to serve <br />
         		<a id="pl.2.33"></a><var>2.33</var>for the remainder of the unexpired term in the same manner as the original appointment.<br />
         		<a id="pl.2.34"></a><var>2.34</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Officers.</b> The commission shall have a chair and vice-chair as presiding <br />
         		<a id="pl.2.35"></a><var>2.35</var>officers. The chair and vice-chair must alternate every two years between the two <br />
         		<a id="pl.3.1"></a><var>3.1</var>membership groups: legislators and public members. The chair and vice-chair may not be <br />
         		<a id="pl.3.2"></a><var>3.2</var>from the same membership group.<br />
         		<a id="pl.3.3"></a><var>3.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 8. <b>Quorum; voting.</b> Seven members of the commission constitute a quorum. <br />
         		<a id="pl.3.4"></a><var>3.4</var>A final action or recommendation may not be made unless approved by a recorded vote <br />
         		<a id="pl.3.5"></a><var>3.5</var>of at least seven members. All other actions by the commission shall be decided by a <br />
         		<a id="pl.3.6"></a><var>3.6</var>majority of the members present and voting.<br />
         		<a id="pl.3.7"></a><var>3.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 9. <b>Compensation.</b> Each member of the commission is entitled to <br />
         		<a id="pl.3.8"></a><var>3.8</var>reimbursement for actual and necessary expenses incurred in performing commission <br />
         		<a id="pl.3.9"></a><var>3.9</var>duties. Each legislative member is entitled to reimbursement from the appropriate <br />
         		<a id="pl.3.10"></a><var>3.10</var>fund of the member's respective legislative body. Each public member is entitled to <br />
         		<a id="pl.3.11"></a><var>3.11</var>reimbursement from funds appropriated to the commission.<br />
         		<br />
         		<a id="bill.0.4.0"></a><a id="pl.3.12"></a><var>3.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. <b>[290D.04] STAFF.</b><br />
         		<a id="pl.3.13"></a><var>3.13</var>The commission shall employ an executive director to act as the executive head of <br />
         		<a id="pl.3.14"></a><var>3.14</var>the commission. The executive director shall employ persons necessary to carry out <br />
         		<a id="pl.3.15"></a><var>3.15</var>this chapter.<br />
         		<br />
         		<a id="bill.0.5.0"></a><a id="pl.3.16"></a><var>3.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. <b>[290D.05] RULES.</b><br />
         		<a id="pl.3.17"></a><var>3.17</var>The commission shall adopt rules necessary to carry out this chapter.<br />
         		<br />
         		<a id="bill.0.6.0"></a><a id="pl.3.18"></a><var>3.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. <b>[290D.06] REPORT TO COMMISSION.</b><br />
         		<a id="pl.3.19"></a><var>3.19</var>In addition to the information provided in each even-numbered year under section <br />
         		<a id="pl.3.20"></a><var>3.20</var>270C.11, before September 1 of each year prior to the first year of a regular legislative <br />
         		<a id="pl.3.21"></a><var>3.21</var>session, the commissioner shall provide a report with the following information for each <br />
         		<a id="pl.3.22"></a><var>3.22</var>tax expenditure scheduled to expire during the following biennium:<br />
         		<a id="pl.3.23"></a><var>3.23</var>(1) the positive and negative impacts of the expenditure on the taxpayer or taxpayers <br />
         		<a id="pl.3.24"></a><var>3.24</var>before or after the tax expenditure;<br />
         		<a id="pl.3.25"></a><var>3.25</var>(2) the impact of the tax expenditure on the tax incidence in the state;<br />
         		<a id="pl.3.26"></a><var>3.26</var>(3) the economic development impacts of the preference, including the impact on <br />
         		<a id="pl.3.27"></a><var>3.27</var>jobs, wages, and benefits;<br />
         		<a id="pl.3.28"></a><var>3.28</var>(4) the cumulative fiscal impacts of other state and federal taxes providing benefits <br />
         		<a id="pl.3.29"></a><var>3.29</var>to taxpayers for similar activities;<br />
         		<a id="pl.3.30"></a><var>3.30</var>(5) the measurable impacts of the tax expenditure in meeting the goal of the <br />
         		<a id="pl.3.31"></a><var>3.31</var>expenditure;<br />
         		<a id="pl.3.32"></a><var>3.32</var>(6) a comparison of the tax expenditure with tax treatment of taxpayers engaged in <br />
         		<a id="pl.3.33"></a><var>3.33</var>similar activities in neighboring states; and <br />
         		<a id="pl.4.1"></a><var>4.1</var>(7) consideration of the probable impact on overall uniformity and fairness of the <br />
         		<a id="pl.4.2"></a><var>4.2</var>tax code.<br />
         		<br />
         		<a id="bill.0.7.0"></a><a id="pl.4.3"></a><var>4.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. <b>[290D.07] COMMISSION DUTIES.</b><br />
         		<a id="pl.4.4"></a><var>4.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Review of tax expenditures.</b> Before February 1 of the first year of a <br />
         		<a id="pl.4.5"></a><var>4.5</var>regularly scheduled legislative session, the commission shall (1) review information from <br />
         		<a id="pl.4.6"></a><var>4.6</var>the most recent tax expenditure report under section 270C.11 and the additional report <br />
         		<a id="pl.4.7"></a><var>4.7</var>under section 290D.06; (2) take public testimony; and (3) vote on recommendations for <br />
         		<a id="pl.4.8"></a><var>4.8</var>continuation or repeal of each tax expenditure subject to expire in that legislative session.<br />
         		<a id="pl.4.9"></a><var>4.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Public hearings.</b> Before January 1 of the year a tax expenditure is included <br />
         		<a id="pl.4.10"></a><var>4.10</var>in a commission report, the commission shall conduct public hearings concerning the <br />
         		<a id="pl.4.11"></a><var>4.11</var>impact of the tax expenditure on (1) the beneficiaries; (2) the state economy; (3) its <br />
         		<a id="pl.4.12"></a><var>4.12</var>performance in meeting its purpose; (4) its impact on the tax incidence in the state; and (5) <br />
         		<a id="pl.4.13"></a><var>4.13</var>any other information that the commission deems relevant.<br />
         		<a id="pl.4.14"></a><var>4.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Commission report; recommendations.</b> By February 1 of the first year of <br />
         		<a id="pl.4.15"></a><var>4.15</var>every regular legislative session, the commission shall present to the chairs of the senate <br />
         		<a id="pl.4.16"></a><var>4.16</var>and house of representatives committees with jurisdiction over taxes, a report on the tax <br />
         		<a id="pl.4.17"></a><var>4.17</var>expenditures reviewed. In the report the commission shall report its recommendations for <br />
         		<a id="pl.4.18"></a><var>4.18</var>each tax expenditure, its findings on the demonstrated ability of each tax expenditure to <br />
         		<a id="pl.4.19"></a><var>4.19</var>meet its stated goal, the impact on the general fund budget of retaining or abolishing the <br />
         		<a id="pl.4.20"></a><var>4.20</var>tax expenditure, and any other information that the commission deems relevant to explain <br />
         		<a id="pl.4.21"></a><var>4.21</var>its recommendation for each expenditure.<br />
         		<br />
         		<a id="bill.0.8.0"></a><a id="pl.4.22"></a><var>4.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. <b>[290D.08] REQUIREMENT FOR REVIEW AND PERIODIC </b><br />
         		<a id="pl.4.23"></a><var>4.23</var><b>REENACTMENT OF ALL EXISTING AND NEW TAX EXPENDITURES.</b><br />
         		<a id="pl.4.24"></a><var>4.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Expiration of existing tax expenditures.</b> The tax expenditures in <br />
         		<a id="pl.4.25"></a><var>4.25</var>statute as of July 1, 2010, are subject to sunset review and expiration on the following <br />
         		<a id="pl.4.26"></a><var>4.26</var>schedule:<br />
         		<a id="pl.4.27"></a><var>4.27</var>(1) all tax expenditures in chapters 168, 297A, and 297B, on December 31, 2012, <br />
         		<a id="pl.4.28"></a><var>4.28</var>and every tenth year thereafter;<br />
         		<a id="pl.4.29"></a><var>4.29</var>(2) all tax expenditures in chapters 295, 296A, 297D, 297E, 297F, 297G, 297H, and <br />
         		<a id="pl.4.30"></a><var>4.30</var>297I, on December 31, 2014, and every tenth year thereafter;<br />
         		<a id="pl.4.31"></a><var>4.31</var>(3) all tax expenditures in chapters 290 and 298, on December 31, 2016, and every <br />
         		<a id="pl.4.32"></a><var>4.32</var>tenth year thereafter;<br />
         		<a id="pl.4.33"></a><var>4.33</var>(4) all tax expenditures in chapters 287, 290A, 290B, 291, and 298, on December <br />
         		<a id="pl.4.34"></a><var>4.34</var>31, 2018, and every tenth year thereafter; and<br />
         		<a id="pl.5.1"></a><var>5.1</var>(5) all tax expenditures in chapters 88, 270, 272, 273, 290C, 469, and 473H, on <br />
         		<a id="pl.5.2"></a><var>5.2</var>December 31, 2020, and every tenth year thereafter.<br />
         		<a id="pl.5.3"></a><var>5.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>New and renewed tax expenditures.</b> Any legislation that creates, renews, <br />
         		<a id="pl.5.4"></a><var>5.4</var>or continues a tax expenditure must include the following provisions:<br />
         		<a id="pl.5.5"></a><var>5.5</var>(1) an intent statement that clearly provides the purposes for the tax expenditure and <br />
         		<a id="pl.5.6"></a><var>5.6</var>a standard or goal against which its effectiveness can be measured; and<br />
         		<a id="pl.5.7"></a><var>5.7</var>(2) an expiration date for the tax expenditure that may not exceed 12 years from <br />
         		<a id="pl.5.8"></a><var>5.8</var>the day the provision takes effect and must correspond to the expiration date for other tax <br />
         		<a id="pl.5.9"></a><var>5.9</var>expenditures in the same tax area, as listed in subdivision 1.<br />
         		<br />
         		<a id="bill.0.9.0"></a><a id="pl.5.10"></a><var>5.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. <b>[290D.09] MONITORING OF RECOMMENDATIONS.</b><br />
         		<a id="pl.5.11"></a><var>5.11</var>During each legislative session, the staff of the commission shall monitor legislation <br />
         		<a id="pl.5.12"></a><var>5.12</var>affecting tax expenditures that have undergone sunset review and shall periodically <br />
         		<a id="pl.5.13"></a><var>5.13</var>report to the members of the commission on proposed changes which would modify <br />
         		<a id="pl.5.14"></a><var>5.14</var>prior recommendations of the commission.<br />
         		<br />
         		<a id="bill.0.10.0"></a><a id="pl.5.15"></a><var>5.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. <b>[290D.10] CONTINUATION BY LAW.</b><br />
         		<a id="pl.5.16"></a><var>5.16</var>During the regular session in which the commission's report is received, the <br />
         		<a id="pl.5.17"></a><var>5.17</var>legislature may enact legislation to continue a tax expenditure contained in the report <br />
         		<a id="pl.5.18"></a><var>5.18</var>for a period not to exceed ten years. This chapter does not prohibit the legislature from <br />
         		<a id="pl.5.19"></a><var>5.19</var>eliminating a tax expenditure on a date earlier than that provided in this chapter.<br />
         		<br />
         		<a id="bill.0.11.0"></a><a id="pl.5.20"></a><var>5.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. <b>[290D.11] GIFTS AND GRANTS.</b><br />
         		<a id="pl.5.21"></a><var>5.21</var>The commission may accept gifts, grants, and donations from any organization <br />
         		<a id="pl.5.22"></a><var>5.22</var>described in section 501(c)(3) of the Internal Revenue Code for the purpose of funding <br />
         		<a id="pl.5.23"></a><var>5.23</var>any activity under this chapter. All gifts, grants, and donations must be accepted in an <br />
         		<a id="pl.5.24"></a><var>5.24</var>open meeting by a majority of the voting members of the commission and reported in the <br />
         		<a id="pl.5.25"></a><var>5.25</var>public record of the commission with the name of the donor and purpose of the gift, grant, <br />
         		<a id="pl.5.26"></a><var>5.26</var>or donation. Money received under this section is appropriated to the commission.<br />
         		
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