1998 Minnesota Statutes

CHAPTER 116J. Department of trade and economic development

     116J.01 Department of trade and economic development. 

    Subdivision 1.    Appointment.  The department of trade 
 and economic development is supervised and controlled by the 
 commissioner of trade and economic development, who is appointed 
 by the governor and serves under section 15.06.  

    Subd. 2.    Confidential secretary.  The commissioner 
 may appoint a confidential secretary in the unclassified service.

    Subd. 3. Repealed, 1993 c 163 art 1 s 35 

    Subd. 4.    Appointment of director of the office of 
 tourism.  The director of the office of tourism shall be 
 appointed by the governor.  The director is under the 
 supervision of the commissioner and serves in the unclassified 
 service. 

    Subd. 5.    Departmental organization.  (a) The 
 commissioner shall organize the department as provided in 
 section 15.06.  

    (b) The commissioner may establish divisions and offices 
 within the department.  The commissioner may employ three deputy 
 commissioners in the unclassified service.  One deputy must 
 direct the Minnesota trade office and must be experienced and 
 knowledgeable in matters of international trade.  

    (c) The commissioner shall: 

    (1) employ assistants and other officers, employees, and 
 agents that the commissioner considers necessary to discharge 
 the functions of the commissioner's office; 

    (2) define the duties of the officers, employees, and 
 agents, and delegate to them any of the commissioner's powers, 
 duties, and responsibilities, subject to the commissioner's 
 control and under conditions prescribed by the commissioner.  

    (d) The commissioner shall ensure that there are at least 
 three trade and economic development officers in state offices 
 in nonmetropolitan areas of the state who will work with local 
 units of government on developing local trade and economic 
 development. 

    HIST: 1981 c 356 s 64; 1983 c 289 s 40-42; 1984 c 558 art 4 s 
 3; 1987 c 312 art 1 s 14; 1989 c 335 art 1 s 136,137; 1991 c 261 
 s 1; 1993 c 163 art 1 s 12; 1996 c 369 s 2,3; 1997 c 200 art 1 s 
 50 

     116J.011 Mission. 

    The mission of the department of trade and economic 
 development is to employ all of the available state government 
 resources to facilitate an economic environment that produces 
 net new job growth in excess of the national average and to 
 increase nonresident and resident tourism revenues.  It is part 
 of the department's mission that within the department's 
 resources the commissioner shall endeavor to: 

    (1) prevent the waste or unnecessary spending of public 
 money; 

    (2) use innovative fiscal and human resource practices to 
 manage the state's resources and operate the department as 
 efficiently as possible; 

    (3) coordinate the department's activities wherever 
 appropriate with the activities of other governmental agencies; 

    (4) use technology where appropriate to increase agency 
 productivity, improve customer service, increase public access 
 to information about government, and increase public 
 participation in the business of government; 

    (5) utilize constructive and cooperative labor-management 
 practices to the extent otherwise required by chapters 43A and 
 179A; 

    (6) report to the legislature on the performance of agency 
 operations and the accomplishment of agency goals in the 
 agency's biennial budget according to section 16A.10, 
 subdivision 1; and 

    (7) recommend to the legislature appropriate changes in law 
 necessary to carry out the mission and improve the performance 
 of the department. 

    HIST: 1993 c 163 art 1 s 13; 1995 c 248 art 11 s 8; 1998 c 366 
 s 55 

  116J.02 Repealed, 1983 c 289 s 119 

     116J.03 Definitions. 

    Subdivision 1.    Scope.  As used in this chapter, the 
 terms defined in this section have the meaning given them.  

    Subd. 2.    Commissioner.  "Commissioner" means the 
 commissioner of trade and economic development.  

    Subd. 3.    Department.  "Department" means the 
 department of trade and economic development.  

    HIST: 1981 c 356 s 66,248; 1983 c 289 s 43; 1987 c 312 art 1 s 
 15 

     116J.035 Duties and powers of commissioner; rules. 

    Subdivision 1.    Powers.  The commissioner may:  

    (1) apply for, receive, and expend money from municipal, 
 county, regional, and other government agencies; 

    (2) apply for, accept, and disburse grants and other aids 
 from other public or private sources; 

    (3) contract for professional services if such work or 
 services cannot be satisfactorily performed by employees of the 
 department or by any other state agency; 

    (4) enter into interstate compacts to jointly carry out 
 such research and planning with other states or the federal 
 government where appropriate; 

    (5) distribute informational material at no cost to the 
 public upon reasonable request; and 

    (6) enter into contracts necessary for the performance of 
 the commissioner's duties with federal, state, regional, 
 metropolitan, local, and other agencies or units of government; 
 educational institutions, including the University of 
 Minnesota.  Contracts made pursuant to this section shall not be 
 subject to the competitive bidding requirements of chapter 16C.  

    The commissioner may apply for, receive, and expend money 
 made available from federal or other sources for the purpose of 
 carrying out the duties and responsibilities of the commissioner 
 pursuant to this chapter.  

    All moneys received by the commissioner pursuant to this 
 chapter shall be deposited in the state treasury and are 
 appropriated to the commissioner for the purpose for which the 
 moneys have been received.  The money shall not cancel and shall 
 be available until expended.  

    Subd. 2.    Rules.  The commissioner may adopt rules 
 pursuant to chapter 14 as necessary to carry out the 
 commissioner's duties and responsibilities pursuant to this 
 chapter.  

    Subd. 3. Repealed, 1987 c 403 art 2 s 164 

    HIST: 1984 c 604 s 2; 1Sp1985 c 14 art 9 s 4; 1986 c 444; 1995 
 c 186 s 34; 1998 c 386 art 2 s 33 

  116J.04 Repealed, 1988 c 629 s 64 

  116J.05 Renumbered 216C.05 

    116J.06 Subdivision 1. Renumbered 216C.06 
 subdivision 1 

    Subd. 2. Renumbered 216C.06 subd 2 

    Subd. 3. Renumbered 216B.2421 subd 2 

    Subd. 4. Renumbered 216C.06 subd 3 

    Subd. 5. Renumbered 216C.06 subd 4 

    Subd. 6. Renumbered 216C.06 subd 5 

    Subd. 7. Renumbered 216C.06 subd 6 

    Subd. 8. Renumbered 216C.06 subd 7 

    Subd. 9. Renumbered 216C.06 subd 8 

    Subd. 10. Renumbered 216C.06 subd 9 

    Subd. 11. Renumbered 216C.06 subd 10 

    Subd. 12. Renumbered 216C.06 subd 11 

    Subd. 13. Renumbered 216C.06 subd 12 

  116J.07 Renumbered 216C.07 

  116J.08 Renumbered 216C.08 

  116J.09 Renumbered 216C.09 

  116J.10 Renumbered 216C.10 

  116J.11 Renumbered 216C.11 

  116J.12 Renumbered 216C.12 

  116J.13 Renumbered 216C.13 

  116J.14 Renumbered 216C.14 

  116J.15 Renumbered 216C.15 

  116J.16 Renumbered 216C.16 

  116J.17 Renumbered 216C.17 

  116J.18 Renumbered 216C.18 

  116J.19 Renumbered 216C.19 

  116J.20 Renumbered 216C.20 

  116J.21 Renumbered 216C.21 

  116J.22 Renumbered 216C.22 

  116J.23 Renumbered 216C.23 

  116J.24 Renumbered 216C.24 

  116J.25 Renumbered 216C.25 

  116J.26 Renumbered 216C.26 

  116J.261 Renumbered 216C.261 

  116J.262 Renumbered 216C.262 

    116J.27 Subdivision 1. Renumbered 216C.27 
 subdivision 1 

    Subd. 2. Renumbered 216C.27 subd 2 

    Subd. 3. Renumbered 216C.27 subd 3 

    Subd. 4. Renumbered 216C.27 subd 4 

    Subd. 4a. Renumbered 216C.27 subd 5 

    Subd. 4b. Renumbered 216C.27 subd 6 

    Subd. 5. Repealed, 1983 c 301 s 235 

    Subd. 6. Renumbered 216C.27 subd 7 

    Subd. 7. Repealed, 1983 c 301 s 235 

    Subd. 8. Renumbered 216C.27 subd 8 

  116J.28 Renumbered 216B.243 

  116J.29 Renumbered 216C.29 

  116J.30 Renumbered 216C.30 

  116J.31 Renumbered 216C.31 

  116J.315 Renumbered 216C.315 

  116J.32 Renumbered 216C.32 

  116J.33 Renumbered 216C.33 

  116J.34 Renumbered 216C.34 

  116J.35 Renumbered 216C.35 

  116J.36 Renumbered 216C.36 

  116J.37 Renumbered 216C.37 

  116J.373 Renumbered 216C.373 

  116J.38 Renumbered 216C.38 

  116J.381 Renumbered 216C.381 

  116J.40 Renumbered 116K.01 

     116J.401 Powers and duties. 

    The commissioner of trade and economic development shall:  

    (1) provide regional development commissions, the 
 metropolitan council, and units of local government with 
 information, technical assistance, training, and advice on using 
 federal and state programs; 

    (2) receive and administer the Small Cities Community 
 Development Block Grant Program authorized by Congress under the 
 Housing and Community Development Act of 1974, as amended; 

    (3) receive and administer the section 107 technical 
 assistance program grants authorized by Congress under the 
 Housing and Community Development Act of 1974, as amended; 

    (4) receive and administer grants for the Minnesota jail 
 resource center authorized by Congress under the Juvenile 
 Justice and Delinquency Prevention Act of 1974, as amended; 

    (5) receive and administer other state and federal grants 
 and grant programs for planning, community affairs, community 
 development purposes, and other state and federal programs 
 assigned to the department by law or by the governor in 
 accordance with section 4.07; and 

    (6) receive applications for state and federal grants and 
 grant programs for planning, community affairs, and community 
 development purposes, and other state and federal programs 
 assigned to the department by law or by the governor in 
 accordance with section 4.07.  

    HIST: 1984 c 558 art 4 s 4; 1987 c 312 art 1 s 26 subd 2; 1993 
 c 172 s 78 

     116J.402 Cooperative contracts. 

    The commissioner of trade and economic development may 
 apply for, receive, and spend money for community development 
 from municipal, county, regional, and other planning agencies. 
 The commissioner may also apply for, accept, and disburse grants 
 and other aids for community development and related planning 
 from the federal government and other sources.  The commissioner 
 may enter into contracts with agencies of the federal 
 government, local governmental units, regional development 
 commissions, and the metropolitan council, other state agencies, 
 the University of Minnesota, and other educational institutions, 
 and private persons as necessary to perform the commissioner's 
 duties.  Contracts made according to this section, except those 
 with private persons, are not subject to the provisions of 
 chapter 16C concerning competitive bidding.  

    The commissioner may apply for, receive, and spend money 
 made available from federal sources or other sources for the 
 purposes of carrying out the duties and responsibilities of the 
 commissioner.  

    Money received by the commissioner under this section must 
 be deposited in the state treasury and is appropriated to the 
 commissioner for the purposes for which the money has been 
 received.  The money does not cancel and is available until 
 spent.  

    HIST: 1984 c 558 art 4 s 5; 1986 c 444; 1987 c 312 art 1 s 26 
 subd 2; 1993 c 163 art 1 s 14; 1995 c 186 s 35; 1998 c 386 art 2 
 s 34 

     116J.403 Rules. 

    No money made available to the commissioner for the Small 
 Cities Community Development Block Grant Program shall be spent 
 for community development and related planning programs until 
 the commissioner adopts rules prescribing standards and 
 procedures to govern the expenditure.  The rules must be adopted 
 under the Administrative Procedure Act in chapter 14 and must 
 conform with all terms and conditions imposed on the 
 commissioner when the money is made available.  

    HIST: 1984 c 558 art 4 s 6; 1984 c 640 s 32; 1986 c 444; 1996 
 c 305 art 2 s 26 

  116J.404 Repealed, 1987 c 312 art 1 s 25 

  116J.405 Repealed, 1987 c 312 art 1 s 25 

  116J.406 Repealed, 1993 c 172 s 93 

  116J.41 Repealed, 1983 c 289 s 119 

     116J.411 Definitions. 

    Subdivision 1.    Terms.  For the purposes of sections 
 116J.411 to 116J.415, the following terms have the meaning given 
 them.  

    Subd. 2.    Commissioner.  "Commissioner" means the 
 commissioner of trade and economic development. 

    Subd. 3.    Local governmental unit.  "Local 
 governmental unit" means a home rule charter or statutory city 
 when the project is located in an incorporated area, a county 
 when the project is located in an unincorporated area, or an 
 American Indian tribal council when the project is located 
 within a federally recognized American Indian reservation or 
 community. 

    Subd. 4.    Low income.  "Low income" means equal to or 
 below the nonmetropolitan median household income. 

    Subd. 5.    Principally.  "Principally" means more than 
 half. 

    Subd. 6.    Regional organization.  "Regional 
 organization" or "organization" means an organization selected 
 under section 116J.415, subdivision 3. 

    Subd. 7.    Rural.  "Rural" means the area of Minnesota 
 located outside of the metropolitan area as defined in section 
 473.121, subdivision 2. 

    HIST: 1987 c 312 art 1 s 26 subd 2; 1987 c 386 art 1 s 3; 1996 
 c 369 s 12 

     116J.412 Account allocation. 

    The commissioner shall allocate $6,000,000 from the rural 
 rehabilitation account to be used for the challenge grant 
 program.  

    HIST: 1987 c 312 art 1 s 26 subd 2; 1987 c 386 art 1 s 4; 1989 
 c 335 art 4 s 52; 1990 c 375 s 3; 1991 c 322 s 19; 1994 c 483 s 
 1; 1995 c 232 s 6; 1996 c 369 s 12 

     116J.413 Powers relating to rural development. 

    Subdivision 1.    Contracts.  The commissioner may enter 
 into contracts and grant agreements necessary to carry out the 
 commissioner's responsibilities. 

    Subd. 2.    Gifts; grants.  The commissioner may apply 
 for, accept, and disburse gifts, grants, loans, or other 
 property from the United States, the state, private foundations, 
 or any other source; may enter into an agreement required for 
 the gifts, grants, or loans; and may hold, use, and dispose of 
 its assets in accordance with the terms of the gift, grant, 
 loan, or agreement.  Money received by the commissioner under 
 this subdivision must be deposited in a separate account in the 
 state treasury and invested by the state board of investment.  
 The amount deposited, including investment earnings, is 
 appropriated to the commissioner to carry out duties under this 
 section.  

    HIST: 1987 c 386 art 1 s 5; 1995 c 224 s 63; 1996 c 369 s 
 10,12 

     116J.414 Rural investment guide. 

    The commissioner shall adopt a comprehensive state rural 
 investment guide.  The guide must recognize the community and 
 economic needs, the food and agricultural policy, and the 
 resources of rural Minnesota.  The commissioner shall submit the 
 guide to the appropriate committees of the legislature.  The 
 guide shall be prepared every fourth year. 

    HIST: 1987 c 386 art 1 s 8; 1995 c 232 s 7; 1996 c 369 s 11,12 

     116J.415 Challenge grant program. 

    Subdivision 1.    Organization.  The commissioner shall 
 make challenge grants to regional organizations to encourage 
 private investment, to provide jobs for low-income persons, and 
 to promote economic development in the rural areas of the state. 

    Subd. 2.    Funding regions.  The commissioner shall 
 divide the state outside of the metropolitan area as defined in 
 section 473.121, subdivision 2, into six regions.  A region's 
 boundaries must be coterminous with the boundaries of one or 
 more of the development regions established under section 
 462.385.  The commissioner shall designate up to $1,000,000 for 
 each region, to be awarded over a period of three years.  The 
 money designated to each region must be used for revolving loans 
 authorized in this section.  

    Subd. 3.    Selection of organizations to receive 
 challenge grants.  The commissioner shall select at least one 
 organization for each region to receive the challenge grants and 
 shall enter into grant agreements with the organizations.  An 
 organization must be a nonprofit corporation and must 
 demonstrate that:  

    (1) its board of directors includes citizens experienced in 
 rural development, representatives of the regional development 
 commissions, and representatives from all geographic areas in 
 the region; 

    (2) it has the technical skills to analyze projects; 

    (3) it is familiar with other available public and private 
 funding sources and economic development programs; 

    (4) it can initiate and implement economic development 
 projects; and 

    (5) it can establish and administer a revolving loan 
 account. 

    Subd. 4.    Revolving loan fund.  A regional 
 organization shall establish a commissioner certified revolving 
 loan fund to provide loans to new and expanding businesses in 
 rural Minnesota to promote economic development.  Eligible 
 business enterprises include technologically innovative 
 industries, value-added manufacturing, agriprocessing, 
 information industries, and agricultural marketing.  Loan 
 applications given preliminary approval by the organization must 
 be forwarded to the commissioner for final approval.  The amount 
 of state money allocated for each loan is appropriated from the 
 rural rehabilitation account established in section 116J.955 to 
 the organization's regional revolving loan fund when the 
 commissioner gives final approval for each loan.  The amount of 
 money appropriated from the rural rehabilitation account may not 
 exceed 50 percent for each loan.  The amount of nonpublic money 
 must equal at least 50 percent for each loan. 

    Subd. 5.    Loan criteria.  The following criteria apply 
 to loans made under the challenge grant program:  

    (1) loans must be made to businesses that are not likely to 
 undertake a project for which loans are sought without 
 assistance from the challenge grant program; 

    (2) a loan must be used for a project designed principally 
 to benefit low-income persons through the creation of job or 
 business opportunities for them; 

    (3) the minimum loan is $5,000 and the maximum is $100,000; 

    (4) a loan may not exceed 50 percent of the total cost of 
 an individual project; 

    (5) a loan may not be used for a retail development 
 project; and 

    (6) a business applying for a loan, except a 
 microenterprise loan under subdivision 6, must be sponsored by a 
 resolution of the governing body of the local governmental unit 
 within whose jurisdiction the project is located. 

    Subd. 6.    Microenterprise loans.  Challenge grants may 
 be used to make microenterprise loans to small, beginning 
 businesses, including a sole proprietorship.  Microenterprise 
 loans are subject to this section except that: 

    (1) they may also be made to qualified retail businesses; 

    (2) they may be for a minimum of $1,000 and a maximum of 
 $10,000; and 

    (3) they do not require a match. 

    Subd. 7.    Revolving fund administration.  (a) The 
 commissioner shall establish a minimum interest rate for loans 
 to ensure that necessary management costs are covered.  

    (b) Loan repayment amounts equal to one-half of the 
 principal and interest must be deposited in the rural 
 rehabilitation revolving fund for challenge grants to the region 
 from which the money was originally designated.  The remaining 
 amount of the loan repayment may be deposited in the regional 
 revolving loan fund for further distribution by the regional 
 organization, consistent with the loan criteria specified in 
 subdivisions 4 and 5. 

    (c) The first $1,000,000 of revolving loans for each region 
 must be matched by nonstate sources.  The matching requirement 
 does not apply to loans made under paragraph (b). 

    (d) Administrative expenses of each organization may be 
 paid out of the interest earned on loans and on interest earned 
 on money invested by the state board of investment under section 
 116J.413, subdivision 2. 

    Subd. 8.    Rules.  The commissioner shall adopt rules 
 to implement the duties specified in this section.  

    Subd. 9.    Local governmental unit loans.  A local 
 governmental unit may receive a loan under this section if the 
 local governmental unit has established a local revolving loan 
 fund and can provide at least an equal match to the loan 
 received from a regional organization.  For the purpose of 
 providing the match to establish the local revolving loan fund, 
 the local governmental unit may use any unencumbered money in 
 the general fund of the unit.  Revenues from tax increments 
 derived from a district located within the boundaries of the 
 local governmental unit may be used to fund a second local 
 revolving loan fund only if (1) those revenues are loaned in a 
 manner authorized in the district's tax increment financing plan 
 to a business located within the tax increment district, and (2) 
 the revenues are deposited in a loan fund that is separate from 
 the loan fund in which general fund money is established.  The 
 local governmental unit may deposit up to $50,000 of local 
 public money in each of the local revolving funds that may be 
 established under this subdivision.  The maximum loan available 
 to a local governmental unit under this section is $50,000.  The 
 money loaned to a local governmental unit by a regional 
 organization must be matched by the local revolving loan fund 
 and used to provide loans to businesses to promote local 
 economic development.  One-half of the money loaned to a local 
 governmental unit under this section by a regional organization 
 must be repaid to the rural rehabilitation account.  One-half of 
 the money may be retained by the local governmental unit's 
 revolving loan fund for further distribution by the local 
 governmental unit. 

    Subd. 10.    Regional cooperation.  An organization that 
 receives a challenge grant shall cooperate with other regional 
 organizations, including regional development commissions, 
 community development corporations, community action agencies, 
 and the Minnesota small business development centers and 
 satellites, in carrying out challenge grant program and 
 technical assistance responsibilities. 

    Subd. 11.    Reporting requirements.  An organization 
 that receives a challenge grant shall: 

    (1) submit an annual report to the commissioner by February 
 15 of each year that includes a description of projects 
 supported by the challenge grant program, an account of loans 
 made during the calendar year, the source and amount of money 
 collected and distributed by the challenge grant program, the 
 program's assets and liabilities, and an explanation of 
 administrative expenses; and 

    (2) provide for an independent annual audit to be performed 
 in accordance with generally accepted accounting practices and 
 auditing standards and submit a copy of each annual audit report 
 to the commissioner. 

    HIST: 1987 c 384 art 3 s 18; 1987 c 386 art 1 s 10; 1988 c 615 
 s 6; 1989 c 335 art 4 s 53,54,106; 1995 c 224 s 64-66; 1996 c 
 369 s 12 

    116J.42 Subdivision 1.  Renumbered 116K.04 
 subdivision 1 

    Subd. 2.  Renumbered 116K.04 subd 2 

    Subd. 3.  Repealed, 1983 c 289 s 119 

    Subd. 4.  Renumbered 116K.04 subd 3 

    Subd. 5.  Repealed, 1983 c 289 s 119 

    Subd. 6.  Repealed, 1983 c 289 s 119 

    Subd. 7.  Renumbered 116K.04 subd 4 

    Subd. 8.  Renumbered 116K.04 subd 5 

    Subd. 9.  Renumbered 116J.404 

     116J.421 Rural policy and development center. 

    Subdivision 1.    Established.  The rural policy and 
 development center is established at Mankato State University. 

    The center may be established by the board as a nonprofit 
 corporation under section 501(c)(3) of the Internal Revenue Code 
 or the board may organize and operate the center in a manner and 
 form that the board determines best allows the center to carry 
 out its duties. 

    Subd. 2.    Governance.  The center is governed by a 
 board of directors appointed to six-year terms by the governor 
 comprised of: 

    (1) a representative from each of the two largest statewide 
 general farm organizations; 

    (2) a representative from a regional initiative 
 organization selected under section 116J.415, subdivision 3; 

    (3) the president of Mankato State University; 

    (4) a representative from the general public residing in a 
 town of less than 5,000 located outside of the metropolitan 
 area; 

    (5) a member of the house of representatives appointed by 
 the speaker of the house and a member of the senate appointed by 
 the subcommittee on committees of the senate committee on rules 
 and administration appointed for two-year terms; 

    (6) three representatives from business, including one 
 representing rural manufacturing and one rural retail and 
 service business; 

    (7) three representatives from private foundations with a 
 demonstrated commitment to rural issues; 

    (8) one representative from a rural county government; and 

    (9) one representative from a rural regional government. 

    Subd. 3.    Duties.  The center shall: 

    (1) identify present and emerging social and economic 
 issues for rural Minnesota, including health care, 
 transportation, crime, housing, and job training; 

    (2) forge alliances and partnerships with rural communities 
 to find practical solutions to economic and social problems; 

    (3) provide a resource center for rural communities on 
 issues of importance to them; 

    (4) encourage collaboration across higher education 
 institutions to provide interdisciplinary team approaches to 
 problem solving with rural communities; and 

    (5) involve students in center projects. 

    Subd. 4.    Statewide focus.  The center has a statewide 
 mission.  It may contract and collaborate with higher education 
 and other institutions located throughout the state. 

    Subd. 5.    Powers.  The board has the power to do all 
 things reasonable and necessary to carry out the duties of the 
 center including, without limitation, the power to: 

    (1) enter into contracts for goods or services with 
 individuals and private and public entities; 

    (2) sue and be sued; 

    (3) acquire, hold, lease, and transfer any interest in real 
 and personal property; 

    (4) accept appropriations, gifts, grants, and bequests; 

    (5) hire employees; and 

    (6) delegate any of its powers. 

    HIST: 1997 c 200 art 1 s 51; 1Sp1998 c 1 art 3 s 18,19 

     116J.422 Rural policy and development center fund. 

    A rural policy and development center fund is established 
 as an account in the state treasury.  The commissioner of 
 finance shall credit to the account the amounts authorized under 
 this section and appropriations and transfers to the account.  
 The state board of investment shall ensure that account money is 
 invested under section 11A.24.  All money earned by the account 
 must be credited to the account.  The principal of the account 
 and any unexpended earnings must be invested and reinvested by 
 the state board of investment. 

    Gifts and donations, including land or interests in land, 
 may be made to the account.  Noncash gifts and donations must be 
 disposed of for cash as soon as the board prudently can maximize 
 the value of the gift or donation.  Gifts and donations of 
 marketable securities may be held or be disposed of for cash at 
 the option of the board.  The cash receipts of gifts and 
 donations of cash or capital assets and marketable securities 
 disposed of for cash must be credited immediately to the 
 principal of the account.  The value of marketable securities at 
 the time the gift or donation is made must be credited to the 
 principal of the account and any earnings from the marketable 
 securities are earnings of the account.  The earnings in the 
 account are annually appropriated to the board of the center for 
 rural policy and development to carry out the duties of the 
 center. 

    HIST: 1997 c 200 art 1 s 52 

  116J.43 Renumbered 116K.05 

  116J.44 Renumbered 116K.06 

  116J.45 Renumbered 116K.07 

  116J.46 Repealed, 1983 c 289 s 119 

  116J.47 Repealed, 1983 c 289 s 119 

  116J.48 Renumbered 116K.08 

  116J.49 Renumbered 116K.09 

  116J.50 Renumbered 116K.10 

  116J.51 Renumbered 116K.11 

  116J.52 Renumbered 116K.12 

  116J.53 Renumbered 116K.13 

  116J.54 Renumbered 116J.406 

     116J.541 Report on the effect of tax incentives upon the 
  number of jobs. 

    On a biennial basis, the commissioner of trade and economic 
 development shall analyze the effect of all business related tax 
 reductions or waivers on the aggregate number of jobs created 
 and wages paid in those new jobs.  The commissioner of trade and 
 economic development shall present the results of the analysis 
 to the legislature. 

    HIST: 1995 c 264 art 5 s 2 

     116J.542 Goals for new tax expenditures. 

    Each newly enacted business related tax expenditure must 
 include measurable goals for jobs and wages and require a 
 biennial review conducted by the commissioner of trade and 
 economic development for continuation based upon meeting those 
 goals.  The commissioner of trade and economic development shall 
 report the results of the review to the legislature. 

    HIST: 1995 c 264 art 5 s 3 

     116J.543 Film production jobs program. 

    The film production jobs program is created.  The program 
 shall be operated by the Minnesota film board with 
 administrative oversight and control by the commissioner of 
 trade and economic development.  The program shall make payment 
 to producers of long-form and narrative film productions that 
 directly create new film jobs in Minnesota.  To be eligible for 
 a payment, a producer must submit documentation to the Minnesota 
 film board of expenditures for wages for work on new film 
 production jobs in Minnesota by resident Minnesotans.  The film 
 jobs include work such as technical crews, acting talent, set 
 construction, soundstage or equipment rental, local 
 postproduction film processing, and other film production jobs.  

    The film board must make recommendations to the 
 commissioner about program payment, but the recommendations are 
 not binding and the commissioner has the authority to make the 
 final determination on payments.  The commissioner's 
 determination must be based on the amount of wages documented to 
 the film board and the likelihood that the payment will lead to 
 further documentable wage payments.  Payment may not exceed 
 $100,000 for a single long-form and narrative film.  No more 
 than five percent of the funds appropriated for the program in 
 any year may be expended for administration.  Individual feature 
 film projects shooting on or after January 1, 1997, will be 
 eligible for fund allocations. 

    HIST: 1997 c 200 art 1 s 53 

     116J.551 Creation of account. 

    A contaminated site cleanup and development account is 
 created in the general fund.  Money in the account may be used, 
 as appropriated by law, to make grants as provided in section 
 116J.554 and to pay for the commissioner's costs in reviewing 
 applications and making grants. 

    HIST: 1993 c 375 art 13 s 1 

     116J.552 Definitions. 

    Subdivision 1.    Scope of application.  For purposes of 
 sections 116J.551 to 116J.557, the following terms have the 
 meanings given. 

    Subd. 2.    Cleanup costs.  "Cleanup costs" or "costs" 
 means the costs of developing and implementing a response action 
 plan, but does not include implementation costs incurred before 
 the award of a grant unless the application for the grant was 
 submitted within 180 days after the response action plan was 
 approved by the commissioner of the pollution control agency. 

    Subd. 3.    Contaminant.  "Contaminant" means a 
 hazardous substance or a pollutant or contaminant as those terms 
 are defined in section 115B.02. 

    Subd. 4.    Development authority.  "Development 
 authority" includes a statutory or home rule charter city, 
 county, housing and redevelopment authority, economic 
 development authority, and a port authority. 

    Subd. 5.    Metropolitan area.  "Metropolitan area" 
 means the seven-county metropolitan area, as defined in section 
 473.121, subdivision 2. 

    Subd. 6.    Municipality.  "Municipality" means the 
 statutory or home rule charter city, town, or, in the case of 
 unorganized territory, the county in which the site is located. 

    Subd. 7.    Project costs.  "Project costs" includes 
 cleanup costs for the site and the cost of related site 
 acquisition, demolition of existing improvements, and 
 installation of public improvements necessary for the 
 development authority to implement the response action plan. 

    Subd. 8.    Response action plan.  "Response action plan"
 means a response action plan approved by the commissioner of the 
 pollution control agency, including a "development action 
 response plan" that meets the requirements of section 469.174, 
 subdivision 17; and a "voluntary response action plan" under 
 section 115B.175, subdivision 3. 

    HIST: 1993 c 375 art 13 s 2; 1995 c 224 s 53; 1995 c 255 art 2 
 s 1; 1997 c 200 art 2 s 8 

     116J.553 Grant applications. 

    Subdivision 1.    Application required.  To obtain a 
 contamination cleanup development grant, the development 
 authority shall apply to the commissioner.  The governing body 
 of the municipality must approve, by resolution, the application.

    Subd. 2.    Required content.  The commissioner shall 
 prescribe and provide the application form.  The application 
 must include at least the following information: 

    (1) identification of the site; 

    (2) an approved response action plan for the site, 
 including the results of engineering and other tests showing the 
 nature and extent of the release or threatened release of 
 contaminants at the site; 

    (3) a detailed estimate, along with necessary supporting 
 evidence, of the total cleanup costs for the site; 

    (4) an appraisal of the current market value of the 
 property, separately taking into account the effect of the 
 contaminants on the market value, prepared by a qualified 
 independent appraiser using accepted appraisal methodology; 

    (5) an assessment of the development potential or likely 
 use of the site after completion of the response action plan, 
 including any specific commitments from third parties to 
 construct improvements on the site; 

    (6) the manner in which the municipality will meet the 
 local match requirement; and 

    (7) any additional information or material that the 
 commissioner prescribes. 

    HIST: 1993 c 375 art 13 s 3 

     116J.554 Grants. 

    Subdivision 1.    Authority.  (a) The commissioner may 
 make a grant to an applicant development authority to pay for up 
 to 75 percent of the project costs for a qualifying site. 

    (b) The commissioner may also make a grant to an applicant 
 development authority to pay up to 75 percent or $50,000, 
 whichever is less, toward the cost of performing contaminant 
 investigations and the development of a response action plan for 
 a qualifying site. 

    (c) The commissioner may also make a grant to an applicant 
 to fill a site that would represent more than 50 percent of the 
 remaining land in a city suitable for industrial development if 
 it were properly filled. 

    (d) The determination of whether to make a grant for a 
 qualifying site is within the sole discretion of the 
 commissioner, subject to the process provided by this section, 
 and available unencumbered money in the appropriation.  The 
 commissioner's decisions and application of the priorities under 
 section 116J.555 are not subject to judicial review, except for 
 abuse of discretion. 

    (e) The total amount of money provided in grants under 
 paragraph (b) may not exceed $250,000 per fiscal year. 

    (f) In making grants under paragraph (b), the commissioner 
 shall give priority to applicants that have not received a grant 
 under paragraph (a) or section 473.252 during the year ending on 
 the date of application. 

    Subd. 1a.    Metropolitan livable communities.  The 
 commissioner may not make a grant to a municipality in the 
 metropolitan area unless it is participating in the local 
 housing incentives program under section 473.254.  

    Subd. 2.    Qualifying sites.  A site qualifies for a 
 grant under this section, if the following criteria are met: 

    (1) the site is not scheduled for funding during the 
 current or next fiscal year under the Comprehensive 
 Environmental Response, Compensation, and Liability Act, United 
 States Code, title 42, section 9601, et seq. or under the 
 Environmental Response, and Liability Act under sections 115B.01 
 to 115B.24; 

    (2) the appraised value of the site after adjusting for the 
 effect on the value of the presence or possible presence of 
 contaminants using accepted appraisal methodology (i) is less 
 than 75 percent of the estimated project costs for the site or 
 (ii) is less than or equal to the estimated cleanup costs for 
 the site and the cleanup costs equal or exceed $3 per square 
 foot for the site; and 

    (3) if the proposed cleanup is completed, it is expected 
 that the site will be improved with buildings or other 
 improvements and these improvements will provide a substantial 
 increase in the property tax base within a reasonable period of 
 time or the site will be used for an important publicly owned or 
 tax-exempt facility. 

    HIST: 1993 c 375 art 13 s 4; 1995 c 255 art 2 s 3; 1997 c 246 
 s 14,15 

     116J.555 Priorities. 

    Subdivision 1.    Priorities.  (a) The legislature 
 expects that applications for grants will exceed the available 
 appropriations and the agency will be able to provide grants to 
 only some of the applicant development authorities. 

    (b) If applications for grants for qualified sites exceed 
 the available appropriations, the agency shall make grants for 
 sites that, in the commissioner's judgment, provide the highest 
 return in public benefits for the public costs incurred and that 
 meet all the requirements provided by law.  In making this 
 judgment, the commissioner shall consider the following factors: 

    (1) the recommendations or ranking of projects by the 
 commissioner of the pollution control agency regarding the 
 potential threat to public health and the environment that would 
 be reduced or eliminated by completion of each of the response 
 action plans; 

    (2) the potential increase in the property tax base of the 
 local taxing jurisdictions, considered relative to the fiscal 
 needs of the jurisdictions, that will result from developments 
 that will occur because of completion of each of the response 
 action plans; 

    (3) the social value to the community of the cleanup and 
 redevelopment of the site, including the importance of 
 development of the proposed public facilities on each of the 
 sites; 

    (4) the probability that each site will be cleaned up 
 without use of government money in the reasonably foreseeable 
 future; 

    (5) the amount of cleanup costs for each site; and 

    (6) the amount of the commitment of municipal or other 
 local resources to pay for the cleanup costs.  

    The factors are not listed in a rank order of priority; 
 rather the commissioner may weigh each factor, depending upon 
 the facts and circumstances, as the commissioner considers 
 appropriate.  The commissioner may consider other factors that 
 affect the net return of public benefits for completion of the 
 response action plan.  The commissioner, notwithstanding the 
 listing of priorities and the goal of maximizing the return of 
 public benefits, shall make grants that distribute available 
 money to sites both within and outside of the metropolitan 
 area.  The commissioner shall provide a written statement of the 
 supporting reasons for each grant.  Unless sufficient 
 applications are not received for qualifying sites outside of 
 the metropolitan area, at least 25 percent of the money provided 
 as grants must be made for sites located outside of the 
 metropolitan area. 

    Subd. 2.    Application cycles; reporting to legislature. 
  (a) In making grants, the commissioner shall establish 
 semiannual application deadlines in which grants will be 
 authorized from all or part of the available appropriations of 
 money in the account. 

    (b) After each semiannual cycle in which grants are 
 awarded, the commissioner shall report to the environment and 
 natural resources committees of the senate and house of 
 representatives, the finance division of the senate committee on 
 environment and natural resources, and the house of 
 representatives committee on environment and natural resources 
 finance the grants awarded and appropriate supporting 
 information describing each grant made.  This report must be 
 made within 30 days after the grants are awarded. 

    (c) The commissioner shall annually report to the 
 legislative committees in paragraph (b) on the status of the 
 cleanup projects undertaken under grants made under the 
 programs.  The commissioner shall include in the annual report 
 information on the cleanup and development activities undertaken 
 for the grants made in that and previous fiscal years.  The 
 commissioner shall make this report no later than 120 days after 
 the end of the fiscal year. 

    HIST: 1993 c 375 art 13 s 5; 1995 c 224 s 54; 1995 c 255 art 2 
 s 2; 1996 c 470 s 27 

     116J.556 Local match requirement. 

    (a) In order to qualify for a grant under sections 116J.551 
 to 116J.557, the municipality must pay for at least one-quarter 
 of the project costs as a local match.  The municipality shall 
 pay an amount of the project costs equal to at least 12 percent 
 of the cleanup costs from the municipality's general fund, a 
 property tax levy for that purpose, or other unrestricted money 
 available to the municipality (excluding tax increments).  These 
 unrestricted moneys may be spent for project costs, other than 
 cleanup costs, and qualify for the local match payment equal to 
 12 percent of cleanup costs.  The rest of the local match may be 
 paid with tax increments, regional, state, or federal money 
 available for the redevelopment of brownfields or any other 
 money available to the municipality. 

    (b) If the development authority establishes a tax 
 increment financing district or hazardous substance subdistrict 
 on the site to pay for part of the local match requirement, the 
 district or subdistrict is not subject to the state aid 
 reductions under section 273.1399.  In order to qualify for the 
 exemption from the state aid reductions, the municipality must 
 elect, by resolution, on or before the request for certification 
 is filed that all tax increments from the district or 
 subdistrict will be used exclusively to pay (1) for project 
 costs for the site and (2) administrative costs for the district 
 or subdistrict.  The district or subdistrict must be decertified 
 when an amount of tax increments equal to no more than three 
 times the costs of implementing the response action plan for the 
 site and the administrative costs for the district or 
 subdistrict have been received, after deducting the amount of 
 the state grant. 

    HIST: 1993 c 375 art 13 s 6; 1995 c 255 art 2 s 4; 1997 c 246 
 s 16 

     116J.557 Cost recovery actions. 

    Subdivision 1.    Cause of action.  The attorney general 
 or a development authority or municipality that incurs cleanup 
 costs to implement an approved response action plan pursuant to 
 sections 116J.551 to 116J.557, may bring an action under section 
 115B.04 or other law to recover the reasonable and necessary 
 cleanup costs incurred by the development authority or 
 municipality.  The attorney general, development authority, or 
 municipality may recover all cleanup costs incurred whether paid 
 from the proceeds of a grant under sections 116J.551 to 116J.557 
 or funds of the development authority or municipality.  
 Recoverable costs include administrative and legal costs related 
 to the development and implementation of the response action 
 plan but do not include any cost associated with development or 
 redevelopment of property.  A development authority or 
 municipality must have the consent of the attorney general to 
 bring or settle an action under this subdivision to recover 
 cleanup costs paid from the proceeds of a grant. 

    Subd. 2.    Procedures.  The commissioner shall notify 
 the attorney general when a grant is awarded under sections 
 116J.551 to 116J.557.  Upon request of the attorney general the 
 development authority shall prepare and submit a certification 
 of the cleanup costs and shall cooperate in any cost recovery 
 action brought by the attorney general under subdivision 1.  
 Certification by the development authority of the cleanup costs 
 incurred to develop and implement the approved response action 
 plan is prima facie evidence that the costs are reasonable and 
 necessary in any action brought under this section. 

    Subd. 3.    Attorney general assistance and costs.  (a) 
 The attorney general may assist a development authority or 
 municipality, if requested to do so, in bringing an action under 
 subdivision 1 by providing legal and technical advice or other 
 appropriate assistance.  The attorney general shall not assess 
 any fee to the development authority or municipality for the 
 assistance but may recover the cost of the assistance as 
 provided in paragraph (b). 

    (b) If the attorney general brings or assists in an action 
 brought under subdivision 1, the reasonable litigation expenses 
 or other costs of legal or technical assistance incurred by the 
 attorney general must be deducted from any recovery and paid to 
 the attorney general before proceeds of the recovery are 
 otherwise distributed.  The attorney general shall deposit any 
 money so deducted in the general fund. 

    Subd. 4.    Disposition of recovered amounts.  Amounts 
 recovered from responsible persons, after any deduction under 
 subdivision 3, and all other amounts otherwise received by the 
 municipality, the agency, or the attorney general for the site 
 shall be used to reimburse the municipality and the account in 
 proportion to their respective payments for response costs.  The 
 amount of recovered costs apportioned to tax increments must be 
 treated by the municipality and development authority as an 
 excess increment under section 469.176, subdivision 2. 

    HIST: 1993 c 375 art 13 s 7; 1994 c 465 art 2 s 1 

     116J.558 Effect of issuance of grants. 

    The issuance of a contamination cleanup grant under 
 sections 116J.551 to 116J.557 has no effect on the 
 responsibility or the liability of the state, under chapter 115B 
 or any other law, in relation to the contamination at a site or 
 sites for which the grant is issued.  The issuance of a grant 
 neither implies any state responsibility for the contamination 
 nor imposes any obligation on the state to participate in the 
 cleanup of the contamination or in the cleanup costs beyond the 
 amount of the grant. 

    HIST: 1994 c 643 s 54 

     116J.561 Creation of account. 

    A redevelopment account is created in the general fund.  
 Money in the account may be used to make grants as provided in 
 section 116J.564 and to pay for the commissioner's costs in 
 reviewing applications and making grants. 

    HIST: 1998 c 404 s 41 

     116J.562 Definitions. 

    Subdivision 1.    Scope of application.  For purposes of 
 sections 116J.561 to 116J.565, the terms in subdivisions 2 to 5 
 have the meanings given. 

    Subd. 2.    Redevelopment costs or costs.  
 "Redevelopment costs" or "costs" means the costs of land 
 acquisition, demolition, infrastructure improvement, and 
 ponding, or other environmental infrastructure. 

    Subd. 3.    Development authority.  "Development 
 authority" includes a statutory or home rule charter city, 
 county, housing and redevelopment authority, economic 
 development authority, and port authority. 

    Subd. 4.    Metropolitan area.  "Metropolitan area" 
 means the seven-county metropolitan area, as defined in section 
 473.121, subdivision 2. 

    Subd. 5.    Municipality.  "Municipality" means the 
 statutory or home rule charter city, town, or, in the case of 
 unorganized territory, county in which the redevelopment is 
 located. 

    Subd. 6.    Public benefits.  "Public benefits" include 
 job creation, environmental benefits to the state and region, 
 efficient use of public transportation, efficient use of 
 existing infrastructure, provision of affordable housing, 
 multiuse development that constitutes community rebuilding 
 rather than single-use development, crime reduction, blight 
 reduction, community stabilization, and property tax base 
 maintenance or improvement. 

    HIST: 1998 c 404 s 42 

     116J.563 Grant applications. 

    Subdivision 1.    Application required.  To obtain a 
 redevelopment grant, the development authority shall apply to 
 the commissioner.  The governing body of the municipality must 
 approve, by resolution, the application. 

    Subd. 2.    Required content.  The commissioner shall 
 prescribe and provide the application form.  The application 
 must include at least the following information: 

    (1) identification of the site; 

    (2) a redevelopment plan for the site; 

    (3) a detailed estimate, along with necessary supporting 
 evidence, of the total redevelopment costs for the site; 

    (4) an assessment of the development potential or likely 
 use of the site after completion of the redevelopment plan, 
 including any specific commitments from third parties to 
 construct improvements on the site; 

    (5) the manner in which the municipality will meet the 
 local match requirement; and 

    (6) any additional information or material that the 
 commissioner prescribes. 

    HIST: 1998 c 404 s 43 

     116J.564 Grants. 

    The commissioner may make a grant to an applicant 
 development authority to pay for up to 50 percent of the 
 redevelopment costs for a qualifying site.  The determination of 
 whether to make a grant for a site is within the sole discretion 
 of the commissioner, subject to sections 116J.561 to 116J.566 
 and available unencumbered money in the redevelopment account.  
 The commissioner's decisions and application of the priorities 
 under this section are not subject to judicial review, except 
 for abuse of discretion. 

    HIST: 1998 c 404 s 44 

     116J.565 Priorities. 

    Subdivision 1.    Characteristics.  (a) If applications 
 for grants exceed the available appropriations, grants shall be 
 made for sites that, in the commissioner's judgment, provide the 
 highest return in public benefits for the public costs 
 incurred.  In making this judgment, the commissioner shall give 
 priority to redevelopment projects with one or more of the 
 following characteristics: 

    (1) the need for redevelopment in conjunction with 
 contamination remediation needs; 

    (2) the redevelopment project meets current tax increment 
 financing requirements for a redevelopment district and tax 
 increments will contribute to the project; 

    (3) the redevelopment potential within the municipality; 

    (4) proximity to public transit if located in the 
 metropolitan area; and 

    (5) multijurisdictional projects that take into account the 
 need for affordable housing, transportation, and environmental 
 impact. 

    (b) The factors in paragraph (a), clauses (1) to (5), are 
 not listed in a rank order of priority; rather the commissioner 
 may weigh each factor, depending upon the facts and 
 circumstances, as the commissioner considers appropriate.  The 
 commissioner may consider other factors that affect the net 
 return of public benefits for completion of the redevelopment 
 plan.  The commissioner, notwithstanding the listing of 
 priorities and the goal of maximizing the return of public 
 benefits, shall make grants that distribute available money to 
 sites both within and outside of the metropolitan area.  The 
 commissioner shall provide a written statement of the supporting 
 reasons for each grant.  Unless sufficient applications are not 
 received for qualifying sites outside of the metropolitan area, 
 at least 25 percent of the money provided as grants must be made 
 for sites located outside of the metropolitan area.  The 
 commissioner shall consult with the metropolitan council about 
 metropolitan area grants. 

    Subd. 2.    Application cycles.  In making grants, the 
 commissioner shall establish semiannual application deadlines in 
 which grants will be authorized from all or part of the 
 available money in the account. 

    HIST: 1998 c 404 s 45 

     116J.566 Local match requirement. 

    In order to qualify for a grant under sections 116J.561 to 
 116J.567, the municipality must pay for at least one-half of the 
 redevelopment costs as a local match from any money available to 
 the municipality. 

    HIST: 1998 c 404 s 46 

     116J.567 Sale of land. 

    Bond proceeds funds in the account may only be used for 
 redevelopment costs for publicly owned property.  Nonbond 
 proceeds funds in the account may be used for redevelopment 
 costs as defined in section 116J.562, subdivision 2, provided 
 that the land upon which the improvements are made will 
 ultimately be sold to a private developer at the fair market 
 value of the land.  Net sale proceeds, up to the amount of the 
 grant, must be paid to the account by the development authority 
 within two years of the sale. 

    HIST: 1998 c 404 s 47 

     116J.57 Underground petroleum tank replacement loan 
  program. 

    Subdivision 1.    Loan program.  (a) The commissioner 
 shall establish and implement an underground petroleum tank 
 replacement loan program to facilitate the continued operation 
 of small gasoline retailers, as defined in section 115C.09, 
 subdivision 3f, paragraph (a), in this state. 

    (b) The commissioner may make a direct loan for the cost of 
 a replacement tank to a small gasoline retailer who has 
 dispensed less than 500,000 gallons of motor fuel during the 
 previous year who demonstrates an ability to repay the loan.  
 The interest rate on the loan shall not exceed three percent per 
 year, and the term of the loan may not exceed seven years.  
 Loans made under this subdivision may not exceed $10,000 or the 
 total out-of-pocket expenses of the small gasoline retailer for 
 tank replacement, whichever is less.  Payments on the principal 
 shall be credited to the petroleum tank fund under section 
 115C.08.  The interest payments must be deposited in the state 
 treasury and credited to an account in the special revenue 
 fund.  Money in this account is appropriated to the commissioner 
 for administrative expenses of the underground petroleum tank 
 replacement loan program. 

    Subd. 2.    Appropriation.  An amount necessary is 
 appropriated from the petroleum tank release cleanup fund to the 
 commissioner of trade and economic development for the 
 underground petroleum tank replacement loan program established 
 under this section. 

    Subd. 3.    Expiration.  This section expires January 1, 
 2000.  

    HIST: 1997 c 246 s 17 

     116J.58 Powers and duties. 

    Subdivision 1.    Enumeration.  The commissioner shall: 

    (1) investigate, study, and undertake ways and means of 
 promoting and encouraging the prosperous development and 
 protection of the legitimate interest and welfare of Minnesota 
 business, industry, and commerce, within and outside the state; 

    (2) locate markets for manufacturers and processors and aid 
 merchants in locating and contacting markets; 

    (3) investigate and study conditions affecting Minnesota 
 business, industry, and commerce and collect and disseminate 
 information, and engage in technical studies, scientific 
 investigations, and statistical research and educational 
 activities necessary or useful for the proper execution of the 
 powers and duties of the commissioner in promoting and 
 developing Minnesota business, industry, and commerce, both 
 within and outside the state; 

    (4) plan and develop an effective business information 
 service both for the direct assistance of business and industry 
 of the state and for the encouragement of business and industry 
 outside the state to use economic facilities within the state; 

    (5) compile, collect, and develop periodically, or 
 otherwise make available, information relating to current 
 business conditions; 

    (6) conduct or encourage research designed to further new 
 and more extensive uses of the natural and other resources of 
 the state and designed to develop new products and industrial 
 processes; 

    (7) study trends and developments in the industries of the 
 state and analyze the reasons underlying the trends; study costs 
 and other factors affecting successful operation of businesses 
 within the state; and make recommendations regarding 
 circumstances promoting or hampering business and industrial 
 development; 

    (8) serve as a clearing house for business and industrial 
 problems of the state; and advise small business enterprises 
 regarding improved methods of accounting and bookkeeping; 

    (9) cooperate with interstate commissions engaged in 
 formulating and promoting the adoption of interstate compacts 
 and agreements helpful to business, industry, and commerce; 

    (10) cooperate with other state departments, and with 
 boards, commissions, and other state agencies, in the 
 preparation and coordination of plans and policies for the 
 development of the state and for the use and conservation of its 
 resources insofar as the use, conservation, and development may 
 be appropriately directed or influenced by a state agency; 

    (11) assemble and coordinate information relative to the 
 status, scope, cost, and employment possibilities and the 
 availability of materials, equipment, and labor in connection 
 with public works projects, state, county, and municipal; 
 recommend limitations on the public works; gather current 
 progress information with reference to public and private works 
 projects of the state and its political subdivisions with 
 reference to conditions of employment; inquire into and report 
 to the governor, when requested by the governor, with respect to 
 any program of public state improvements and the financing 
 thereof; and request and obtain information from other state 
 departments or agencies as may be needed properly to report 
 thereon; 

    (12) study changes in population and current trends and 
 prepare plans and suggest policies for the development and 
 conservation of the resources of the state; 

    (13) confer and cooperate with the executive, legislative, 
 or planning authorities of the United States and neighboring 
 states and provinces and of the counties and municipalities of 
 such neighboring states, for the purpose of bringing about a 
 coordination between the development of such neighboring 
 provinces, states, counties, and municipalities and the 
 development of this state; 

    (14) generally, gather, compile, and make available 
 statistical information relating to business, trade, commerce, 
 industry, transportation, communication, natural resources, and 
 other like subjects in this state, with authority to call upon 
 other departments of the state for statistical data and results 
 obtained by them and to arrange and compile that statistical 
 information in a manner that seems wise; 

    (15) prepare an annual report to the legislature estimating 
 and, to the extent possible, describing the number of Minnesota 
 companies which have left the state or moved to surrounding 
 states or other countries.  The report should include an 
 estimate of the number of jobs lost by these moves, an estimate 
 of the total employment payroll, average hourly wage of those 
 jobs lost and those created in the new location, and to the 
 extent possible, the reasons for each company moving out of 
 state, if known; 

    (16) publish documents and annually convene regional 
 meetings to inform businesses, local government units, 
 assistance providers, and other interested persons of changes in 
 state and federal law related to economic development; 

    (17) annually convene conferences of providers of economic 
 development related financial and technical assistance for the 
 purposes of exchanging information on economic development 
 assistance, coordinating economic development activities, and 
 formulating economic development strategies; 

    (18) provide business with information on the economic 
 benefits of energy conservation and on the availability of 
 energy conservation assistance; and 

    (19) prepare, as part of biennial budget process, 
 performance measures for each business loan or grant program 
 within the jurisdiction of the commissioner.  Measures would 
 include source of funds for each program, numbers of jobs 
 proposed or promised at the time of application and the number 
 of jobs created, estimated number of jobs retained, the average 
 salary and benefits for the jobs resulting from the program, and 
 the number of projects approved. 

    Subd. 2.    Promotional contracts.  In order to best 
 carry out duties and responsibilities and to serve the people of 
 the state in the promotion of tourism, trade, and economic 
 development, the commissioner may engage in programs and 
 projects jointly with a private person, firm, corporation or 
 association and may enter into contracts under terms to be 
 mutually agreed upon to carry out such programs and projects not 
 including acquisition of land or buildings.  Contracts may be 
 negotiated and are not subject to the provisions of chapter 16C 
 relating to competitive bidding.  

    Subd. 3.    Commissioner may enter into project 
 agreements.  The commissioner may enter into project 
 agreements with organizations or corporations for the purpose of 
 developing the tourism potential of the state. If in the 
 judgment of the commissioner a project will make a meaningful 
 contribution to the tourism development of the state, the 
 commissioner may enter into local or regional agreements.  

    Subd. 4. Repealed, 1986 c 465 art 1 s 31 

    HIST: 1947 c 587 s 6; 1967 c 299 s 5; 1979 c 333 s 98; 1981 c 
 284 s 1; 1981 c 356 s 207,248; 1983 c 289 s 54; 1984 c 582 s 
 1,23; 1984 c 640 s 32; 1985 c 248 s 30; 1Sp1985 c 14 art 8 s 63; 
 1986 c 444; 1987 c 312 art 1 s 16; 1989 c 335 art 1 s 140; 1993 
 c 163 art 1 s 15; 1993 c 252 s 1; 1995 c 232 s 1; 1996 c 369 s 
 4; 1998 c 386 art 2 s 35 

  116J.581 Repealed, 1997 c 200 art 1 s 74 

     116J.59 Imprest funds, use.  

    The commissioner of trade and economic development may use 
 the money in the imprest fund of the department in order to 
 facilitate and expedite its business particularly in the making 
 of advances of moneys to officers and employees of the 
 department and members of the advisory committee for the purpose 
 of defraying the expenses of travel, subsistence, and other 
 similar expenses, and in meeting emergencies, and in accordance 
 with such requirements therefor as may be prescribed by the 
 commissioner of finance.  The imprest fund shall be reimbursed 
 for all moneys advanced in the manner prescribed by the rules of 
 the commissioner of administration. 

    HIST: 1967 c 299 s 8; 1973 c 492 s 14; 1975 c 271 s 6; 1981 c 
 356 s 248; 1983 c 289 s 115 subd 1; 1986 c 444; 1987 c 312 art 1 
 s 26 subd 2 

     116J.60 Promotional expenses. 

    In the promotion of tourism, trade, and economic 
 development of the state, the commissioner of trade and economic 
 development may expend money appropriated by the legislature for 
 these purposes in the same manner as private persons, firms, 
 corporations, and associations make expenditures for these 
 purposes.  An expenditure for food, lodging, or travel is not 
 governed by the travel rules of the commissioner of employee 
 relations.  No money shall be expended for the appearance in 
 radio or television broadcasts by an elected public official. 

    HIST: Ex1967 c 48 s 84; 1973 c 492 s 14; 1977 c 455 s 84; 1981 
 c 356 s 248; 1983 c 289 s 55; 1987 c 312 art 1 s 17 

     116J.61 Additional powers and duties. 

    The commissioner shall: 

    (1) have control of the work of carrying on a continuous 
 program of education for business people; 

    (2) publish, disseminate, and distribute information and 
 statistics; 

    (3) promote and encourage the expansion and development of 
 markets for Minnesota products; 

    (4) promote and encourage the location and development of 
 new business in the state as well as the maintenance and 
 expansion of existing business and for that purpose cooperate 
 with state and local agencies and individuals, both within and 
 outside the state; 

    (5) advertise and disseminate information as to natural 
 resources, desirable locations, and other advantages for the 
 purpose of attracting business to locate in this state; 

    (6) aid the various communities in this state in attracting 
 business to locate therein; 

    (7) advise and cooperate with municipal, county, regional, 
 and other planning agencies and planning groups within the state 
 for the purpose of promoting coordination between the state and 
 localities as to plans and development in order to maintain a 
 high level of gainful employment in private profitable 
 production and achieve commensurate advancement in social and 
 cultural welfare; coordinate the activities of statewide and 
 local planning agencies, correlate information secured from them 
 and from state departments and disseminate information and 
 suggestions to the planning agencies; and encourage and assist 
 in the organization and functioning of local planning agencies 
 where none exist; and may provide at the request of any 
 governmental subdivision hereinafter mentioned planning 
 assistance, which includes but is not limited to surveys, land 
 use studies, urban renewal plans, technical services and other 
 planning work to any city or other municipality in the state or 
 perform similar planning work in any county, metropolitan or 
 regional area in the state.  The commissioner shall not perform 
 the planning work with respect to a metropolitan or regional 
 area which is under the jurisdiction for planning purposes of a 
 county, metropolitan, regional or joint planning body, except at 
 the request or with the consent of the respective county, 
 metropolitan, regional or joint planning body.  The commissioner 
 is authorized to receive and expend money from municipal, 
 county, regional and other planning agencies; and may accept and 
 disburse grants and other aids for planning purposes from the 
 federal government and from other public or private sources, and 
 may utilize moneys so received for the employment of consultants 
 and other temporary personnel to assist in the supervision or 
 performance of planning work supported by money other than state 
 appropriated money, and may enter into contracts with agencies 
 of the federal government, units of local government or 
 combinations thereof, and with private persons that are 
 necessary in the performance of the planning assistance function 
 of the commissioner.  The commissioner may assist any local 
 government unit in filling out application forms for the federal 
 grants-in-aid.  In furtherance of their planning functions, any 
 city or town, however organized, may expend money and contract 
 with agencies of the federal government, appropriate departments 
 of state government, other local units of government and with 
 private persons; and 

    (8) adopt measures calculated to promote public interest in 
 and understanding of the problems of planning and, to that end, 
 may publish and distribute copies of any plan or any report and 
 may employ other means of publicity and education that will give 
 full effect to the provisions of sections 116J.58 to 116J.63. 

    HIST: 1947 c 587 s 7; 1957 c 842 s 1; 1959 c 598 s 1; 1969 c 
 1129 art 3 s 2; 1971 c 24 s 41; 1973 c 123 art 5 s 7; 1981 c 356 
 s 208,248; 1983 c 289 s 56; 1984 c 604 s 3; 1986 c 444; 1993 c 
 163 art 1 s 16 

  116J.613 Renumbered 116K.14 

     116J.615 Office of tourism. 

    Subdivision 1.    Duties of director.  The director of 
 tourism shall:  

    (1) publish, disseminate, and distribute informational and 
 promotional literature; 

    (2) promote and encourage the expansion and development of 
 international tourism marketing; 

    (3) advertise and disseminate information about travel 
 opportunities in the state of Minnesota; 

    (4) aid various local communities to improve their tourism 
 marketing programs; 

    (5) coordinate and implement a comprehensive state tourism 
 marketing program that takes into consideration all public and 
 private businesses and attractions; 

    (6) conduct market research and analysis to improve 
 marketing techniques in the area of tourism; 

    (7) investigate and study conditions affecting Minnesota's 
 tourism industry, collect and disseminate information, and 
 engage in technical studies, scientific investigations, and 
 statistical research and educational activities necessary or 
 useful for the proper execution of the powers and duties of the 
 director in promoting and developing Minnesota's tourism 
 industry, both within and outside the state; 

    (8) apply for, accept, receive, and expend any funds for 
 the promotion of tourism in Minnesota.  All money received by 
 the director under this subdivision shall be deposited in the 
 state treasury and is appropriated to the director for the 
 purposes for which the money has been received.  The director 
 may enter into interagency agreements and may agree to share net 
 revenues with the contributing agencies.  The money does not 
 cancel and is available until expended; and 

    (9) plan and conduct information and publicity programs to 
 attract tourists, visitors, and other interested persons from 
 outside the state to this state; encourage and coordinate 
 efforts of other public and private organizations or groups of 
 citizens to publicize facilities and attractions in this state; 
 and work with representatives of the hospitality and tourism 
 industry to carry out its programs. 

    Subd. 2. Repealed, 1993 c 163 art 1 s 35 

    Subd. 3. Repealed, 1991 c 238 art 1 s 26 

    HIST: 1983 c 289 s 57; 1988 c 686 art 1 s 63; 1997 c 200 art 1 
 s 54 

     116J.616 Specific agreements prohibited. 

    The commissioner or director of tourism may not enter into 
 an agreement which would obligate the state to pay any part of a 
 debt incurred by a public or private facility, organization, or 
 attraction. 

    HIST: 1989 c 335 art 1 s 138 

     116J.617 Tourism loan program. 

    Subdivision 1.    Establishment.  The commissioner may 
 establish a tourism revolving loan program and a tourism 
 guarantee loan program to provide loans, participate in loans, 
 or guarantee loans to resorts, campgrounds, lodging facilities, 
 and other tourism-related businesses.  The commissioner shall 
 work with financial institutions in making or participating in 
 loans or guaranteeing loans under this section. 

    Subd. 2.    Eligible borrower.  To receive a loan under 
 this section, the borrower must be a sole proprietorship, 
 partnership, or corporation engaged in a tourism-related 
 business or other entity that is defined by the standard 
 industrial classification codes of 7011 and 7033 as set out in 
 the Code of Federal Regulations, title 13, section 121.2.  An 
 eligible borrower under this section must maintain the business 
 or other entity as a tourism-related entity as defined by this 
 subdivision during the term of the loan.  An eligible borrower 
 may not receive a loan or loan guarantee under this section if 
 the borrower has received a tourism-related loan, loan 
 participation, or guarantee made by the state in the past 36 
 months. 

    Subd. 3.    Eligible loan.  The maximum loan made or 
 participated in under this section may not be for more than 50 
 percent of the total cost of the project.  Loan proceeds may be 
 used for the following purposes:  acquisition of an existing 
 building, building construction and improvement, land site 
 improvement, equipment, other construction costs, and 
 engineering costs.  Project-related expenditures made more than 
 30 days before an application may not be financed by a loan 
 made, guaranteed, or participated in under this section. 

    Subd. 4.    Loan terms.  The maximum term of a loan 
 made, guaranteed, or participated in under this section may not 
 exceed the useful life of the real property or 80 percent of the 
 useful life of the equipment or machinery, or the following 
 limits, whichever is less: 

    (1) ten years for land, building, or other real property; 

    (2) five years for equipment or machinery; or 

    (3) a weighted average of the limits under clauses (1) and 
 (2) for loans made, guaranteed, or participated in for a 
 combination of real property and equipment or machinery. 

    The commissioner may establish interest rates for loans 
 made under this section.  All loans made must be secured by 
 collateral. 

    Subd. 5.    Tourism loan account.  The tourism loan 
 account is created in the special revenue fund.  The fund 
 consists of money appropriated or transferred to the account and 
 interest collected through the tourism revolving loan program, 
 and gifts, donations, and bequests made to the account.  Money 
 in the account is appropriated to the commissioner for purposes 
 of this section.  Fees collected through the tourism revolving 
 loan program must be credited to the general fund. 

    Subd. 6.    Investment interest.  All interest and 
 profits accruing from the investment of money from the tourism 
 loan account are credited to the account, and any loss incurred 
 in the principal of the investments of the account is debited to 
 the account. 

    HIST: 1989 c 335 art 1 s 139; 1993 c 369 s 46 

  116J.62 Repealed, 1983 c 289 s 119 

     116J.63 Sale of pamphlets and publications; fees; 
  advertising. 

    Subdivision 1.  The commissioner may sell reports, 
 publications, or related publicity or promotional material of 
 the department that the commissioner determines should not be 
 supplied gratis to those who wish to employ them in the conduct 
 of their business. 

    Subd. 2.  Fees for reports, publications, or related 
 publicity or promotional material are not subject to the 
 rulemaking requirements of chapter 14 and are not subject to 
 section 16A.1285.  The fees prescribed by the commissioner must 
 be commensurate with the distribution objective of the 
 department for the material produced or with the cost of 
 furnishing the services.  All fees for materials and services 
 must be deposited in the general fund. 

    Subd. 3.  Department publications may contain advertising 
 and may receive advertising revenue from profit and nonprofit 
 organizations, associations, individuals and corporations, and 
 other state, federal or local government agencies.  Advertising 
 revenues shall be deposited in the general fund.  The 
 commissioner shall set advertising rates and fees commensurate 
 with services rendered and distribution objectives.  

    Subd. 4.  The office of tourism may market tourism-related 
 publications and media promotional material to businesses and 
 organizations.  The proceeds from the marketing must be placed 
 in a special account and are appropriated to the commissioner to 
 prepare and distribute the office's publications and media 
 promotional materials. 

    HIST: 1947 c 587 s 14; 1979 c 333 s 99; 1981 c 356 s 248; 1986 
 c 444; 1987 c 312 art 1 s 19; 1989 c 335 art 1 s 141; 1996 c 305 
 art 3 s 20 

     116J.64 Loans to Indians. 

    Subdivision 1.  For purposes of this section the following 
 terms shall have the meanings ascribed to them herein. 

    Subd. 2.  "Indian" means a person of one-quarter or more 
 Indian blood and who is an enrolled member of a federally 
 recognized Minnesota based band or tribe. 

    Subd. 3.  "Person" means an individual Indian, or a 
 partnership comprising Indians only, or a corporation whose 
 stock is owned wholly by Indians. 

    Subd. 4.  "Tribal council" means the reservation business 
 committee or equivalent duly constituted tribal authority. 

    Subd. 5.  "Agency" means the Indian affairs council.  

    Subd. 6.  The remaining 20 percent of the tax revenue 
 received by the county auditor under section 273.165, 
 subdivision 1, shall be remitted by the county auditor to the 
 state treasurer and shall be deposited in an account in the 
 special revenue fund.  The account is established under the 
 jurisdiction and control of the agency, which may engage in a 
 business loan program for American Indians as that term is 
 defined in subdivision 2.  The tribal councils may administer 
 the account, provided that, before making any eligible loans, 
 each tribal council must submit to the agency, for its review 
 and approval, a plan for that council's loan program which 
 specifically describes, as to that program, its content, 
 utilization of money, administration, operation, implementation, 
 and other matters required by the agency.  All such programs 
 must provide for a reasonable balance in the distribution of 
 money appropriated pursuant to this section to make business 
 loans between Indians residing on and off the reservations 
 within the state.  As a condition to the making of such eligible 
 loans, the tribal councils shall enter into a loan agreement and 
 other contractual arrangements with the agency to carry out this 
 chapter, and shall agree that all official books and records 
 relating to the business loan program shall be subject to audit 
 by the legislative auditor in the same manner prescribed for 
 agencies of state government.  

    Whenever money is appropriated by the state treasurer to 
 the agency solely for the purposes in this subdivision, the 
 agency shall record in the Indian business loan account the 
 receipt and disbursement of the money and of the income, gain 
 and loss from the investment and reinvestment of the money.  

    Subd. 7.  An Indian desiring a loan for the purpose of 
 starting a business enterprise, expanding an existing business, 
 or for technical and management assistance, shall make 
 application to the Indian affairs council.  The Indian affairs 
 council shall prescribe the necessary forms and advise the 
 prospective borrower as to the conditions under which the 
 application may be expected to receive favorable consideration.  
 The application shall be forwarded to the appropriate tribal 
 council, if it is participating in the program, for approval or 
 disapproval, and shall be in conformity with the plans submitted 
 by said tribal councils.  If the tribal council is not 
 participating in the program, the Indian affairs council may 
 directly administer the loan.  If the application is approved, 
 the Indian affairs council shall forward the application, 
 together with all relevant documents pertinent thereto, to the 
 commissioner of finance, who shall draw a warrant in favor of 
 the applicable tribal council or the Indian affairs council, if 
 it is administering the loan, with appropriate notations 
 identifying the borrower.  The tribal council or the Indian 
 affairs council, if it is administering the loan, shall 
 thereafter reimburse suppliers and vendors for purchases of 
 equipment, real estate and inventory made by the borrower 
 pursuant to the conditions or guidelines established by the 
 Indian affairs council.  The tribal council or the Indian 
 affairs council, if it is administering the loan, shall maintain 
 records of transactions for each borrower in a manner consistent 
 with good accounting practice.  Simple interest at two percent 
 of the amount of the debt owed shall be charged.  When any 
 portion of a debt is repaid, the tribal council or the Indian 
 affairs council, if it is administering the loan, shall remit 
 the amount so received plus interest paid thereon to the state 
 treasurer through the Indian affairs council.  The amount so 
 received shall be credited to the Indian business loan account.  
 The tribal council or the Indian affairs council, if it is 
 administering the loan, shall secure a fidelity bond from a 
 surety company, in favor of the state treasurer, in an amount 
 equal to the maximum amount to the credit of its loan account 
 during the fiscal year.  On the placing of a loan, additional 
 money equal to ten percent of the total amount made available to 
 any tribal council or the Indian affairs council, if it is 
 administering the loan, for loans during the fiscal year shall 
 be paid to the council prior to December 31 for the purpose of 
 financing administrative costs. 

    Subd. 8.  Loans made under subdivision 7 shall be limited 
 to a period of 20 years, if made for the purpose of financing 
 nonreal estate purchases.  Loans made for the purpose of 
 financing real estate purchases, where such real property is to 
 be used for nonresidential purposes only, shall be limited to a 
 period of 40 years, and shall be a lien on the real property so 
 acquired.  Under no circumstances shall the state take a 
 position junior to third lien.  In instances where it is 
 impossible or undesirable to secure a lien against real 
 property, the state may secure a lien against personal property 
 for an amount equal to the face value of the loan. 

    Subd. 9.  Any person misrepresenting facts regarding the 
 Indian ancestry of a prospective borrower for the purpose of 
 securing a loan under subdivision 7, whether such borrower be an 
 individual, partnership or corporation, shall be guilty of a 
 gross misdemeanor. 

    Subd. 10.  The county auditor shall remit the tax revenue 
 received yearly to the state treasurer as required by 
 subdivision 6 no later than December 15. 

    Subd. 11.  There is appropriated annually an amount equal 
 to the tax revenue allotted under subdivision 7. 

    HIST: 1973 c 254 s 3; 1973 c 492 s 14; 1973 c 650 art 20 s 4; 
 1977 c 430 s 25 subd 1; 1979 c 333 s 100-102; 1980 c 391 s 1-3; 
 1981 c 308 s 1-7; 1981 c 356 s 210,211,248; 1982 c 424 s 128; 
 1984 c 558 art 4 s 1,2; 1Sp1985 c 14 art 4 s 16; 1986 c 444; 
 1989 c 335 art 4 s 47; 1989 c 356 s 27 

  116J.65 Renumbered 116M.04 

  116J.655 Renumbered 121.72 

     116J.66 Business assistance. 

    The commissioner shall establish within the department a 
 business assistance center.  The center shall consist of (1) a 
 bureau of small business which shall have as its sole function 
 the provision of assistance to small businesses in the state and 
 (2) a bureau of licenses to assist all businesses in obtaining 
 state licenses and permits.  This center shall be accorded at 
 least equal status with the other major operating units within 
 the department. 

    HIST: 1978 c 709 s 2; 1979 c 246 s 2; 1981 c 356 s 214,248 

  116J.661 Repealed, 1993 c 163 art 1 s 35 

  116J.67 Renumbered 116M.05 

     116J.68 Bureau of small business. 

    Subdivision 1.  The bureau of small business within the 
 business assistance center shall serve as a clearinghouse and 
 referral service for information needed by small businesses 
 including small targeted group businesses and small businesses 
 located in an economically disadvantaged area. 

    Subd. 2.  The bureau shall:  

    (a) provide information and assistance with respect to all 
 aspects of business planning and business management related to 
 the start-up, operation, or expansion of a small business in 
 Minnesota; 

    (b) refer persons interested in the start-up, operation, or 
 expansion of a small business in Minnesota to assistance 
 programs sponsored by federal agencies, state agencies, 
 educational institutions, chambers of commerce, civic 
 organizations, community development groups, private industry 
 associations, and other organizations or to the business 
 assistance referral system established by the Minnesota Project 
 Outreach Corporation; 

    (c) plan, develop, and implement a master file of 
 information on small business assistance programs of federal, 
 state, and local governments, and other public and private 
 organizations so as to provide comprehensive, timely information 
 to the bureau's clients; 

    (d) employ staff with adequate and appropriate skills and 
 education and training for the delivery of information and 
 assistance; 

    (e) seek out and utilize, to the extent practicable, 
 contributed expertise and services of federal, state, and local 
 governments, educational institutions, and other public and 
 private organizations; 

    (f) maintain a close and continued relationship with the 
 director of the procurement program within the department of 
 administration so as to facilitate the department's duties and 
 responsibilities under sections 16C.16 to 16C.19 relating to the 
 small targeted group business and economically disadvantaged 
 business program of the state; 

    (g) develop an information system which will enable the 
 commissioner and other state agencies to efficiently store, 
 retrieve, analyze, and exchange data regarding small business 
 development and growth in the state.  All executive branch 
 agencies of state government and the secretary of state shall to 
 the extent practicable, assist the bureau in the development and 
 implementation of the information system; 

    (h) establish and maintain a toll free telephone number so 
 that all small business persons anywhere in the state can call 
 the bureau office for assistance.  An outreach program shall be 
 established to make the existence of the bureau well known to 
 its potential clientele throughout the state.  If the small 
 business person requires a referral to another provider the 
 bureau may use the business assistance referral system 
 established by the Minnesota Project Outreach Corporation; 

    (i) conduct research and provide data as required by the 
 state legislature; 

    (j) develop and publish material on all aspects of the 
 start-up, operation, or expansion of a small business in 
 Minnesota; 

    (k) collect and disseminate information on state 
 procurement opportunities, including information on the 
 procurement process; 

    (l) develop a public awareness program through the use of 
 newsletters, personal contacts, and electronic and print news 
 media advertising about state assistance programs for small 
 businesses, including those programs specifically for socially 
 disadvantaged small business persons; 

    (m) enter into agreements with the federal government and 
 other public and private entities to serve as the statewide 
 coordinator or host agency for the federal small business 
 development center program under United States Code, title 15, 
 section 648; and 

    (n) assist providers in the evaluation of their programs 
 and the assessment of their service area needs.  The bureau may 
 establish model evaluation techniques and performance standards 
 for providers to use. 

    Subd. 3. Repealed, 1984 c 604 s 5 

    Subd. 4. Repealed, 1984 c 604 s 5 

    HIST: 1979 c 246 s 3; 1981 c 356 s 248; 1984 c 604 s 5; 1987 c 
 384 art 2 s 1; 1989 c 335 art 1 s 142; 1989 c 352 s 8,25; 1990 c 
 541 s 11,29; 1991 c 199 art 1 s 31; 1993 c 163 art 1 s 17; 1996 
 c 305 art 1 s 29; 1998 c 386 art 2 s 36 

     116J.69 Uniform business licensing policy. 

    Subdivision 1.    Finding.  The legislature finds that a 
 uniform policy on business licenses is necessary to maintain an 
 adequate level of protection of the public welfare while 
 preventing business licensing from becoming overly burdensome 
 for the citizens and businesses of Minnesota.  

    Subd. 2.    Policy.  It is the policy of the state of 
 Minnesota that to the extent practicable, when required, a 
 business license:  

    (a) Should be necessary to protect the safety, health or 
 welfare of the citizens of the state or to ensure fair 
 competition, competency in business, responsible financial 
 practices, or other ethical business conduct; 

    (b) Should not duplicate or significantly overlap any other 
 business license; 

    (c) Should be issued and renewed for the longest period 
 possible consistent with the need to review eligibility and 
 compliance with the terms and conditions of the license; 

    (d) Should contain a termination or renewal date determined 
 by the agency to be as convenient as possible for the license 
 holder consistent with clause (c).  When an agency issues more 
 than one license to the same business these licenses should have 
 the same calendar renewal date; and 

    (e) Should involve payment of a fee in an amount no greater 
 than specified by statute.  If a fee is authorized by statute 
 and set by rule, the fee shall be no greater than necessary to 
 recover the administrative cost of issuing or renewing the 
 license or enforcing its terms and conditions.  The fees and 
 conditions may be different for different classes of businesses 
 and for initial issuance and subsequent renewals.  

    HIST: 1981 c 342 art 2 s 2; 1981 c 356 s 248 

  116J.691 Renumbered 116O.091 

  116J.692 Renumbered 116O.092 

     116J.693 Advantage Minnesota, Inc. 

    Subdivision 1.    Establishment; purpose.  Advantage 
 Minnesota, Inc. is established as a nonprofit public corporation 
 under chapter 317A and is subject to the provisions of that 
 chapter.  The corporation is not a state agency.  The purpose of 
 the corporation is to market the economic development potential 
 of the state in order to enhance the state's economic growth.  
 Advantage Minnesota, Inc. objectives are to encourage businesses 
 to remain in the state and promote in-state expansion of current 
 and new Minnesota employers and businesses.  

    Subd. 2.    Board of directors.  (a) Advantage 
 Minnesota, Inc. shall be governed by a board of directors 
 consisting of voting and nonvoting members.  

    (b) The voting members of the board shall be:  

    (1) representatives of business, professional, and industry 
 organizations that have been certified by the commissioner as 
 having made a financial contribution to Advantage Minnesota, 
 Inc. for their period of service in accordance with matching 
 funds requirements established by the commissioner; 

    (2) representatives of labor organizations and educational 
 institutions, if any, as designated from time to time by the 
 board; 

    (3) the governor or a designee of the governor; 

    (4) the commissioner; and 

    (5) other persons, if any, as designated from time to time 
 by the board.  

    (c) The nonvoting members of the board shall be the 
 majority and minority leaders of the senate, the speaker of the 
 house of representatives and the minority leader of the house of 
 representatives, or their designees.  

    (d) Meetings of the board are subject to section 471.705. 

    Subd. 3.    Executive committee; employees.  (a) The 
 board of directors shall create an executive committee of 12 
 members of the board including the commissioner, the vice-chair 
 of the board of directors, and two members of the legislature.  
 The president of the corporation shall be appointed by the 
 executive committee and ratified by the board.  The executive 
 committee shall oversee the daily operations of the corporation. 

    (b) Meetings of the executive committee are subject to 
 section 471.705 except when security, trade secret, potential 
 client lists, pending proposals, negotiations, employee matters, 
 or labor relations information are discussed.  

    (c) The employees of the corporation are not state 
 employees. 

    Subd. 4.    Bylaws.  Bylaws of Advantage Minnesota, Inc. 
 shall provide for the qualification and removal of directors, 
 and for filling vacancies on the board in a manner not 
 inconsistent with this section. 

    Subd. 5.    Other committees.  The executive committee 
 may, by resolution, create one or more committees, each 
 consisting of directors designated by the executive committee.  
 The duties, responsibilities, and limitations of each committee 
 shall be outlined in the resolution creating such committees. 

    Subd. 6.    Articles of incorporation.  The articles of 
 incorporation of Advantage Minnesota, Inc. must be filed with 
 the secretary of state under chapter 317A and must be consistent 
 with this section.  

    Subd. 7.    Audit.  Advantage Minnesota, Inc. shall 
 contract with a certified public accounting firm to perform a 
 financial and compliance audit of the corporation in accordance 
 with generally accepted accounting standards. 

    Subd. 8.    Report.  The commissioner shall submit an 
 annual report on the activities of Advantage Minnesota, Inc. by 
 January 15 of each year to the appropriations, finance, and 
 economic development committees of the legislature and to the 
 governor.  The report must include a description of the 
 corporation's activities for the past year, a list of all 
 contracts entered into by the corporation, and a financial 
 report of revenues and expenditures of the corporation. 

    HIST: 1991 c 252 s 1; 1992 c 464 art 1 s 17; 1995 c 232 s 2-5 

     116J.70 Definitions. 

    Subdivision 1.    Application.  For the purposes of 
 sections 116J.69 to 116J.71, the terms defined in this section 
 have the meanings given them.  

    Subd. 2.    Business license.  "Business license" or 
 "license" means any permit, registration, certification, or 
 other form of approval authorized by statute or rule to be 
 issued by any agency or instrumentality of the state of 
 Minnesota as a condition of doing business in Minnesota.  The 
 term also includes, when applicable, the substantive and 
 procedural criteria governing the qualifications for, and 
 issuance and maintenance of, a business license.  

    Subd. 2a.    License; exceptions.  "Business license" or 
 "license" does not include the following:  

    (1) any occupational license or registration issued by a 
 licensing board listed in section 214.01 or any occupational 
 registration issued by the commissioner of health pursuant to 
 section 214.13; 

    (2) any license issued by a county, home rule charter city, 
 statutory city, township, or other political subdivision; 

    (3) any license required to practice the following 
 occupation regulated by the following sections:  

    (i) abstracters regulated pursuant to chapter 386; 

    (ii) accountants regulated pursuant to chapter 326; 

    (iii) adjusters regulated pursuant to chapter 72B; 

    (iv) architects regulated pursuant to chapter 326; 

    (v) assessors regulated pursuant to chapter 270; 

    (vi) athletic trainers regulated pursuant to chapter 148; 

    (vii) attorneys regulated pursuant to chapter 481; 

    (viii) auctioneers regulated pursuant to chapter 330; 

    (ix) barbers regulated pursuant to chapter 154; 

    (x) beauticians regulated pursuant to chapter 155A; 

    (xi) boiler operators regulated pursuant to chapter 183; 

    (xii) chiropractors regulated pursuant to chapter 148; 

    (xiii) collection agencies regulated pursuant to chapter 
 332; 

    (xiv) cosmetologists regulated pursuant to chapter 155A; 

    (xv) dentists, registered dental assistants, and dental 
 hygienists regulated pursuant to chapter 150A; 

    (xvi) detectives regulated pursuant to chapter 326; 

    (xvii) electricians regulated pursuant to chapter 326; 

    (xviii) mortuary science practitioners regulated pursuant 
 to chapter 149A; 

    (xix) engineers regulated pursuant to chapter 326; 

    (xx) insurance brokers and salespersons regulated pursuant 
 to chapter 60A; 

    (xxi) certified interior designers regulated pursuant to 
 chapter 326; 

    (xxii) midwives regulated pursuant to chapter 148; 

    (xxiii) nursing home administrators regulated pursuant to 
 chapter 144A; 

    (xxiv) optometrists regulated pursuant to chapter 148; 

    (xxv) osteopathic physicians regulated pursuant to chapter 
 147; 

    (xxvi) pharmacists regulated pursuant to chapter 151; 

    (xxvii) physical therapists regulated pursuant to chapter 
 148; 

    (xxviii) physician assistants regulated pursuant to chapter 
 147A; 

    (xxix) physicians and surgeons regulated pursuant to 
 chapter 147; 

    (xxx) plumbers regulated pursuant to chapter 326; 

    (xxxi) podiatrists regulated pursuant to chapter 153; 

    (xxxii) practical nurses regulated pursuant to chapter 148; 

    (xxxiii) professional fund raisers regulated pursuant to 
 chapter 309; 

    (xxxiv) psychologists regulated pursuant to chapter 148; 

    (xxxv) real estate brokers, salespersons, and others 
 regulated pursuant to chapters 82 and 83; 

    (xxxvi) registered nurses regulated pursuant to chapter 
 148; 

    (xxxvii) securities brokers, dealers, agents, and 
 investment advisers regulated pursuant to chapter 80A; 

    (xxxviii) steamfitters regulated pursuant to chapter 326; 

    (xxxix) teachers and supervisory and support personnel 
 regulated pursuant to chapter 125; 

    (xl) veterinarians regulated pursuant to chapter 156; 

    (xli) water conditioning contractors and installers 
 regulated pursuant to chapter 326; 

    (xlii) water well contractors regulated pursuant to chapter 
 103I; 

    (xliii) water and waste treatment operators regulated 
 pursuant to chapter 115; 

    (xliv) motor carriers regulated pursuant to chapter 221; 

    (xlv) professional corporations regulated pursuant to 
 chapter 319A or professional firms regulated under chapter 319B; 

    (xlvi) real estate appraisers regulated pursuant to chapter 
 82B; 

    (xlvii) residential building contractors, residential 
 remodelers, residential roofers, manufactured home installers, 
 and specialty contractors regulated pursuant to chapter 326; 

    (4) any driver's license required pursuant to chapter 171; 

    (5) any aircraft license required pursuant to chapter 360; 

    (6) any watercraft license required pursuant to chapter 
 86B; 

    (7) any license, permit, registration, certification, or 
 other approval pertaining to a regulatory or management program 
 related to the protection, conservation, or use of or 
 interference with the resources of land, air, or water, which is 
 required to be obtained from a state agency or instrumentality; 
 and 

    (8) any pollution control rule or standard established by 
 the pollution control agency or any health rule or standard 
 established by the commissioner of health or any licensing rule 
 or standard established by the commissioner of human services.  

    HIST: 1981 c 342 art 2 s 3; 1981 c 356 s 248; 1Sp1981 c 4 art 
 4 s 14; 1982 c 413 s 1; 1983 c 70 s 1; 1983 c 216 art 1 s 23; 
 1984 c 654 art 5 s 7,58; 1Sp1986 c 3 art 1 s 12; 1990 c 391 art 
 8 s 28; 1992 c 464 art 1 s 18; 1992 c 507 s 1; 1993 c 232 s 1; 
 1993 c 245 s 1; 1993 c 366 s 17; 1995 c 186 s 36; 1995 c 205 art 
 2 s 1; 1997 c 174 art 12 s 70; 1997 c 215 s 3 

     116J.71 New licenses. 

    Any new business license authorized by the legislature or 
 established by rule after June 2, 1981, shall conform to the 
 policy in section 116J.69.  

    HIST: 1981 c 342 art 2 s 5; 1981 c 356 s 248 

     116J.72 Existing licenses. 

    Nothing in sections 116J.69 to 116J.71 shall affect the 
 validity of duration of an existing issued license.  

    HIST: 1981 c 342 art 2 s 6; 1981 c 356 s 248; 1987 c 384 art 2 
 s 23 

     116J.73 Bureau of business licenses; declaration of 
  purpose. 

    It is the intent of the legislature that a program of 
 business license assistance be established to provide a 
 centralized state government office to which business license 
 applicants may obtain comprehensive license information and 
 assistance.  The program of business assistance will be directed 
 to commercial business undertakings, projects, and activities 
 rather than to the issuance of licenses for individual 
 privileges, including the occupational licenses for practicing a 
 trade or profession, licenses for operating a motor vehicle, and 
 amateur sporting licenses, including, but not limited to, 
 hunting and fishing.  

    HIST: 1981 c 342 art 3 s 1; 1981 c 356 s 248 

     116J.74 Definitions. 

    Subdivision 1.    Terms.  For the purposes of sections 
 116J.73 to 116J.86, the following terms have the meanings given 
 them.  

    Subd. 2.    Agency.  "Agency" has the meaning given it 
 in section 14.02, subdivision 2.  

    Subd. 3.    Applicant.  "Applicant" means a person 
 acting personally or authorized to act on behalf of any other 
 person for the purpose of securing a license. 

    Subd. 4.    Bureau.  "Bureau" means the bureau of 
 business licenses.  

    Subd. 5.    Commissioner.  "Commissioner" means the 
 commissioner of the department of trade and economic development.

    Subd. 6.    Director.  "Director" means the director of 
 the bureau of business licenses.  

    Subd. 7.    Business license.  "Business license" or 
 "license" has the meaning given it in section 116J.70, 
 subdivision 2.  

    Subd. 7a.    Exception.  "Business license" or "license" 
 does not include any license excepted in section 116J.70, 
 subdivision 2a.  

    Subd. 8.    Person.  "Person" means any individual, 
 proprietorship, partnership, association, cooperative, 
 corporation, nonprofit organization, state or local government 
 agency, and any other organization required to obtain one or 
 more licenses.  

    HIST: 1981 c 342 art 3 s 2; 1981 c 356 s 248; 1982 c 424 s 
 130; 1983 c 289 s 115 subd 1; 1986 c 444; 1987 c 312 art 1 s 26 
 subd 2 

     116J.75 Bureau of business licenses. 

    Subdivision 1.    Appointment of director.  The head of 
 the bureau shall be the director of business licenses.  The 
 director shall be appointed by the commissioner in accordance 
 with section 116J.01, and shall be in the classified service. 

    Subd. 2.    Director's powers and duties.  The director 
 shall direct the work of the bureau.  The director may, with the 
 advice and consent of the commissioner, hire necessary 
 employees, prescribe their duties, fix their compensation, and 
 provide for the reimbursement of their expenses.  

    Subd. 3.    Director's report.  The director shall 
 report to the commissioner or a designee on the activities of 
 the bureau to ensure the consistency of those activities with 
 the overall economic development policies of the state.  

    Subd. 4.    Coordination with other agencies.  The 
 commissioner, working with other agency heads, shall assure that 
 the activities of the bureau are fully coordinated with related 
 activities of other agencies.  

    HIST: 1981 c 342 art 3 s 3; 1981 c 356 s 248; 1986 c 444; 1987 
 c 312 art 1 s 10 subd 1; 1997 c 7 art 1 s 39 

     116J.76 General functions; powers and duties. 

    The bureau, by and through the director or the director's 
 duly authorized employees, shall have the following functions, 
 powers, and duties:  

    (a) providing comprehensive information on licenses 
 required for business undertakings, projects, and activities in 
 the state and making the information available to applicants and 
 other persons; 

    (b) providing interested persons with an opinion as to the 
 number, kind, and source of required licenses and potential 
 difficulties in obtaining the licenses, based on a review of a 
 potential applicant's business concept at an early stage in its 
 planning; 

    (c) developing with the assistance of other departments a 
 master application procedure to expedite the identification and 
 processing of these licenses; 

    (d) facilitating or recommending consolidation of hearings 
 required pursuant to licensing applications when feasible and 
 advantageous; 

    (e) encouraging and facilitating the participation of 
 federal and local government agencies in licensing coordination; 

    (f) making recommendations for eliminating, consolidating, 
 simplifying, expediting, or otherwise improving licensing 
 procedures affecting business undertakings; 

    (g) serving as an advocate for small business license 
 applicants with state, federal, and local agencies in the 
 process of applying for licenses and complying with licensing 
 standards and requirements; and 

    (h) adopting rules, procedures, instructions, and forms as 
 are required to carry out the functions, powers, and duties 
 imposed upon the bureau by sections 116J.73 to 116J.86. 

    HIST: 1981 c 342 art 3 s 4; 1981 c 356 s 248; 1Sp1985 c 13 s 
 247; 1986 c 444 

     116J.77 Assistance of other agencies. 

    To effect the purposes of sections 116J.73 to 116J.86, and 
 when requested by the commissioner, an agency shall to the 
 extent practicable provide assistance, services, facilities, and 
 data as will enable the bureau to carry out its functions, 
 powers, and duties.  

    HIST: 1981 c 342 art 3 s 5; 1981 c 356 s 248 

     116J.78 Comprehensive license information. 

    Subdivision 1.    Reports by agencies.  Not later than 
 90 days from June 2, 1981, each agency issuing licenses for 
 business undertakings, projects, and activities shall report to 
 the bureau, in a form prescribed by the bureau, on each and 
 every type of license administered or issued by the agency.  
 Application forms, applicable agency rules, fee schedules, and 
 the estimated time period necessary for license application 
 consideration based on experience and statutory or regulatory 
 requirements shall accompany each report.  The reports shall be 
 updated every two years.  

    Subd. 2.    Report supplementation.  Each agency issuing 
 licenses for business undertakings, projects, and activities 
 shall, subsequent to its report pursuant to subdivision 1, 
 provide the bureau with a report of any new license or 
 modification of any existing license, or licensing procedures, 
 together with applicable forms, rules, and information required 
 under subdivisions 1 and 2 regarding new or modified licenses.  

    Subd. 3.    Preparation of information file.  The bureau 
 shall prepare an information file on agency license requirements 
 upon receipt of the agency reports and shall develop methods for 
 its maintenance, revision, updating, and ready access.  

    Subd. 4.    License information provided by bureau.  The 
 bureau shall provide comprehensive license information on the 
 basis of information submitted in subdivisions 1 to 3.  The 
 bureau may prepare and distribute publications, guides, and 
 other materials based upon the agency reports and the 
 information file.  These materials are designed to serve the 
 convenience of license applicants and explain license 
 requirements affecting business, including requirements having 
 multiple license or multiple agency aspects.  

    HIST: 1981 c 342 art 3 s 6; 1981 c 356 s 248 

     116J.79 Preapplication conferences. 

    Subdivision 1.    Requests for conference.  The bureau, 
 at the request of any person, proceeding in accordance with this 
 section, may conduct a preapplication conference, pending the 
 formal submission of application forms, in which affected 
 agencies shall participate to the extent practicable in order to 
 clarify the nature and scope of their interest, to provide 
 guidance regarding license application and review procedures, 
 and to coordinate agency actions and data collection or 
 submission regarding license application.  

    Subd. 2.    Multiple licenses; agencies to provide review 
 and opinion.  If, in the course of a preapplication 
 conference, it becomes clear in the opinion of the director that 
 a proposed business undertaking:  (a) may require multiple 
 licenses from the same or different state departments; (b) will 
 take place in phases over an extended period of time; (c) will 
 involve substantial expense for preparation of detailed plans, 
 specifications and license applications; or (d) is of a new or 
 unique nature, then each affected agency shall, at the request 
 of the director to the extent practicable, provide the applicant 
 with a written review and opinion as to all licenses which the 
 agency would require for the proposed undertaking, the standards 
 and conditions which would have to be met in order to obtain the 
 licenses, timetables involved, and any properly related 
 circumstances or findings.  

    Subd. 3.    Written opinions; time limits; extensions.  
 Each agency participating in the review and opinion process 
 shall render the written opinion within a period not exceeding 
 60 days from the date fixed by the director.  This period may be 
 extended by the director at the request of an interested agency 
 for the further consideration of information provided in 
 accordance with this section.  The director shall advise the 
 person having requested the review and opinion of the extension, 
 the reasons for it, and the revised period fixed by the director 
 for rendering the written opinion.  The person shall be entitled 
 to confer with the bureau and with any agency having been 
 granted an extension of time to ascertain what further 
 information, if any, is required to facilitate the rendering of 
 the review and opinion.  

    Subd. 4.    Effect of review and opinion procedure.  A 
 preapplication review and opinion shall not relieve the person 
 from the responsibility of obtaining any required licenses and 
 shall be contingent upon the submission of all detailed plans, 
 specifications, and information required for license 
 applications.  An agency's written opinion as to required 
 licenses shall remain in effect indefinitely for the proposed 
 business undertaking, project, or activity as described in the 
 applicant's submission.  However, if new license requirements or 
 related standards over which an agency has no control or 
 discretion in establishing subsequently become effective, the 
 new license requirements or standards shall not be considered to 
 have been part of the preapplication review and opinion.  The 
 opinion of the agency may be modified or amended by the agency 
 at any time and shall not prohibit the agency from requiring 
 additional licenses as deemed necessary for the applicant.  

    Subd. 5.    Rules of procedure.  The bureau shall 
 promulgate rules for the procedures to be followed in the 
 conduct of preapplication reviews and opinions.  

    HIST: 1981 c 342 art 3 s 7; 1981 c 356 s 248 

     116J.80 Master application procedure. 

    Subdivision 1.    Development and implementation.  The 
 bureau shall develop and implement a master application 
 procedure to expedite the identification and processing of 
 licenses for business undertakings, projects, and activities.  A 
 master application shall be made on a form prescribed by the 
 bureau.  This form shall request concise and specific 
 information necessary to determine those licenses which are or 
 may be required for the undertaking, project, or activity in 
 order to insure speedy issuance of the licenses when all 
 necessary requirements are met.  

    Subd. 2.    Bureau assistance in preparing.  Use of the 
 master application procedure shall be at the option of any 
 person proposing a business undertaking, project, or activity.  
 Upon request, the bureau shall assist any person in preparing a 
 master application, describe the procedures involved, and 
 provide other information from the comprehensive license 
 information file as may be helpful or necessary.  

    Subd. 3.    Receipt of application; notification to 
 agencies.  Upon receipt of a master application the bureau 
 shall immediately notify in writing each agency having a 
 possible interest in the proposed business undertaking, project, 
 or activity with respect to licenses which are or may be 
 required.  

    Subd. 4.    Agency response.  Each agency so notified 
 shall respond to the bureau within 20 days of receipt of the 
 notice and shall advise the bureau whether one or more licenses 
 under its jurisdiction are or may be required for the business 
 undertaking, project, or activity described in the master 
 application.  The response shall specify the licenses which in 
 the opinion of the agency are or may be required, if any, and 
 shall indicate the fees to be charged.  

    Subd. 5.    Consequences of negative or nonresponses.  
 Any agency so notified which responds that it does not have an 
 interest in the license requirements of the business 
 undertaking, project, or activity described in the master 
 application, or which does not respond within the time period 
 specified in subdivision 4, shall not require a license for the 
 undertaking, project, or activity described in the master 
 application.  Except that where unusual circumstances have 
 prevented an agency from notifying the bureau, and the agency 
 establishes that failure to require a license would result in 
 substantial harm to the public health or welfare, the 
 commissioner may order that the license be required.  

    Subd. 6.    Failure to provide accurate or pertinent 
 information.  The provisions of subdivision 5 shall not apply 
 if the commissioner of trade and economic development determines 
 that the master application contained false, misleading, or 
 deceptive information, or failed to include pertinent 
 information, the lack of which could reasonably lead an agency 
 to misjudge the applicability of licenses under its 
 jurisdiction, or if new license requirements or related 
 standards subsequently became effective for which an agency had 
 no discretion in establishing the effective date.  

    Subd. 7.    Notification to applicant.  The bureau, 
 following the 20 day notice and response period, shall promptly 
 provide the person having submitted a master application with 
 application forms and related information for all licenses 
 specified by the interested agencies and shall advise the person:

    (a) That all forms are to be completed and submitted to the 
 interested agencies; and 

    (b) At the option of the applicant, that the bureau will 
 receive all forms as a package with the fees to be charged, if 
 any, and that the bureau will immediately separate and submit 
 the forms and any allocable fees to the appropriate agencies.  

    Subd. 8.    Withdrawal of application.  An applicant may 
 withdraw a master application at any time without forfeiture of 
 any license approval applied for or obtained under the master 
 application procedures contained in this section.  

    HIST: 1981 c 342 art 3 s 8; 1981 c 356 s 248; 1983 c 289 s 115 
 subd 1; 1987 c 312 art 1 s 26 subd 2 

     116J.81 License coordination and assistance to 
  applicants. 

    Subdivision 1.    Authorization.  Any applicant for 
 licenses required for a business undertaking, project, or 
 activity may confer with the bureau to obtain assistance in the 
 prompt and efficient processing and review of applications.  

    Subd. 2.    Duties of the bureau.  The bureau shall, so 
 far as possible, render assistance; and the director may 
 designate an officer or employee of the bureau to act as an 
 expediter for the purpose of:  

    (1) facilitating contacts for the applicant with agencies 
 responsible for processing and reviewing license applications; 

    (2) arranging conferences to clarify the interest and 
 requirements of any agency with respect to license applications; 

    (3) considering with agencies the feasibility of 
 consolidating hearings and data required of the applicant; and 

    (4) assisting the applicant in the resolution of 
 outstanding issues identified by agencies, including delays 
 experienced in license review.  

    HIST: 1981 c 342 art 3 s 9; 1981 c 356 s 248 

     116J.82 Consolidated hearings. 

    Subdivision 1.    Bureau may request.  The bureau may 
 request the office of administrative hearings to consolidate 
 hearings insofar as it is feasible and agreeable to all parties. 

    Subd. 2.    Rules of procedure.  A consolidated hearing 
 shall be conducted in a manner consistent with sections 14.001 
 to 14.69, and the applicable rules of the office of 
 administrative hearings.  

    Subd. 3.    Prehearing conference.  The office of 
 administrative hearings, with the consent of the agencies having 
 license jurisdiction, may provide for a prehearing conference to 
 assist in the disposition of the type, time, place, and parties 
 of the consolidated hearing, the simplification of the issues, 
 the stipulations as to agreed facts and necessary documents, and 
 other relevant matters.  

    HIST: 1981 c 342 art 3 s 10; 1981 c 356 s 248; 1982 c 424 s 
 130; 1987 c 384 art 2 s 1; 1990 c 422 s 10 

     116J.83 License authority retained. 

    Each agency having jurisdiction to approve or deny a 
 license shall have the continuing power vested in it to make 
 such determinations.  The provisions of sections 116J.73 to 
 116J.86 shall not lessen or reduce these powers and shall modify 
 the procedures followed in carrying out these powers only to the 
 extent provided in sections 116J.73 to 116J.86.  

    HIST: 1981 c 342 art 3 s 11; 1981 c 356 s 248 

     116J.84 Services provided at no charge. 

    Services rendered by the bureau shall be made available 
 without charge.  Nothing contained in this section shall relieve 
 an applicant of any part of the fees or charges established for 
 the review and approval of license applications or relieve an 
 applicant of any of the apportioned costs of a consolidated 
 hearing conducted under sections 116J.79 and 116J.80.  

    HIST: 1981 c 342 art 3 s 12; 1981 c 356 s 248 

     116J.85 Federal and local government participation. 

    Subdivision 1.    Encouragement.  Federal and local 
 government license agencies shall be encouraged to participate 
 in the business license information, coordination, and 
 assistance services of the bureau and to make information 
 available to applicants through the bureau with respect to any 
 business undertaking, project, or activity which is referred to 
 the bureau under the provisions of sections 116J.73 to 116J.86.  

    Subd. 2.    Assistance to federal and local agency license 
 applicants.  The bureau shall, so far as is practicable, 
 advise applicants of federal and local agency license 
 requirements and shall maintain an information file on licenses 
 for which the state has delegated issuance authority to local 
 government agencies.  

    Subd. 3.    Coordination of license review procedures.  
 The director shall consult with local government officials with 
 respect to cooperation in coordinating state and local license 
 application and review procedures and shall recommend to the 
 governor and the legislature any actions which would facilitate 
 this coordination.  

    HIST: 1981 c 342 art 3 s 13; 1981 c 356 s 248 

     116J.86 Compilation and maintenance of statistical data. 

    The bureau shall obtain and keep on an annual basis 
 appropriate statistical data regarding the number of licenses 
 issued by agencies, the amount of time necessary for the 
 licenses to be issued, the cost of obtaining the licenses, the 
 types of projects for which specific licenses are issued, a 
 geographic distribution of licenses issued, and other pertinent 
 data which the director deems appropriate.  The bureau shall 
 analyze the data by type of license and by agency responsible 
 and shall make its findings available to the public.  

    HIST: 1981 c 342 art 3 s 14; 1981 c 356 s 248 

  116J.87 Repealed, 1987 c 404 s 191 

     116J.871 Financial assistance limitations; prevailing 
  wage. 

    Subdivision 1.    Definitions.  (a) For the purposes of 
 this section, the following terms have the meanings given them. 

    (b) "Economic development" means financial assistance 
 provided to a person directly or to a local unit of government 
 or nonprofit organization on behalf of a person who is engaged 
 in the manufacture or sale of goods and services.  Economic 
 development does not include (i) financial assistance for 
 rehabilitation of existing housing or (ii) financial assistance 
 for new housing construction in which total financial assistance 
 at a single project site is less than $100,000. 

    (c) "Financial assistance" means (i) a grant awarded by a 
 state agency for economic development related purposes if a 
 single business receives $200,000 or more of the grant proceeds; 
 (ii) a loan or the guaranty or purchase of a loan made by a 
 state agency for economic development related purposes if a 
 single business receives $500,000 or more of the loan proceeds; 
 or (iii) a reduction, credit, or abatement of a tax assessed 
 under chapter 297A where the tax reduction, credit, or abatement 
 applies to a geographic area smaller than the entire state and 
 was granted for economic development related purposes.  
 Financial assistance does not include payments by the state of 
 aids and credits under chapter 273 or 477A to a political 
 subdivision. 

    (d) "Project site" means the location where improvements 
 are made that are financed in whole or in part by the financial 
 assistance; or the location of employees that receive financial 
 assistance in the form of employment and training services as 
 defined in section 268.0111, subdivision 4, or customized 
 training from a technical college. 

    (e) "State agency" means any agency defined under section 
 16B.01, subdivision 2, Minnesota Technology, Inc., and the iron 
 range resources and rehabilitation board. 

    Subd. 2.    Prevailing wage required.  A state agency 
 may provide financial assistance to a person only if the person 
 receiving or benefiting from the financial assistance certifies 
 to the commissioner of labor and industry that laborers and 
 mechanics at the project site during construction, installation, 
 remodeling, and repairs for which the financial assistance was 
 provided will be paid the prevailing wage rate as defined in 
 section 177.42, subdivision 6. 

    Subd. 3.    Prevailing wage; penalty.  It is a 
 misdemeanor for a person who has certified that prevailing wages 
 will be paid to laborers and mechanics under subdivision 2 to 
 subsequently fail to pay the prevailing wage.  This misdemeanor 
 is punishable by a fine of not more than $700, or imprisonment 
 for not more than 90 days, or both.  Each day a violation of 
 this subdivision continues is a separate offense. 

    Subd. 4.    Notification.  A state agency shall notify 
 any person applying for financial assistance from the state 
 agency of the requirements under subdivision 2 and of the 
 penalties under subdivision 3. 

    Subd. 5.    Exception.  Nothing in this section denies 
 any financial assistance granted to or qualified for by a person 
 whose construction, installation, remodeling, or repairs 
 commenced prior to August 1, 1990. 

    HIST: 1990 c 604 art 10 s 7; 1991 c 322 s 19 

  116J.873 Repealed, 1996 c 452 s 40 

     116J.8731 Minnesota investment fund. 

    Subdivision 1.    Purpose.  The Minnesota investment 
 fund is created to provide financial assistance, through 
 partnership with communities, for the creation of new employment 
 or to maintain existing employment, and for business start-up, 
 expansions, and retention.  It shall accomplish these goals by 
 the following means: 

    (1) creation or retention of permanent private-sector jobs 
 in order to create above-average economic growth consistent with 
 environmental protection; 

    (2) stimulation or leverage of private investment to ensure 
 economic renewal and competitiveness; 

    (3) increasing the local tax base, based on demonstrated 
 measurable outcomes, to guarantee a diversified industry mix; 

    (4) improvement of employment and economic opportunity for 
 citizens in the region to create a reasonable standard of 
 living, consistent with federal and state guidelines on low- to 
 moderate-income persons; and 

    (5) stimulation of productivity growth through improved 
 manufacturing or new technologies, including cold weather 
 testing.  

    Subd. 2.    Administration.  The commissioner shall 
 administer the fund as part of the Small Cities Development 
 Block Grant Program.  Funds shall be made available to local 
 communities and recognized Indian tribal governments in 
 accordance with the rules adopted for economic development 
 grants in the small cities community development block grant 
 program, except that all units of general purpose local 
 government are eligible applicants for Minnesota investment 
 funds.  A home rule charter or statutory city, county, or town 
 may loan or grant money under this section to a regional 
 development commission to provide the local match required for 
 capitalization of a regional revolving loan fund.  

    Subd. 3.    Eligible expenditures.  The money 
 appropriated for this section may be used to provide grants for 
 infrastructure, loans, loan guarantees, interest buy-downs, and 
 other forms of participation with private sources of financing, 
 provided that a loan to a private enterprise must be for a 
 principal amount not to exceed one-half of the cost of the 
 project for which financing is sought. 

    Subd. 4.    Eligible projects.  Assistance must be 
 evaluated on the existence of the following conditions: 

    (1) creation of new jobs or retention of existing jobs; 

    (2) increase in the tax base; 

    (3) the project can demonstrate that investment of public 
 dollars induces private funds; 

    (4) the project can demonstrate an excessive public 
 infrastructure or improvement cost beyond the means of the 
 affected community and private participants in the project; 

    (5) the project provides higher wage levels to the 
 community or will add value to current workforce skills; 

    (6) whether assistance is necessary to retain existing 
 business; and 

    (7) whether assistance is necessary to attract out-of-state 
 business.  

    A grant or loan cannot be made based solely on a finding 
 that the conditions in clause (6) or (7) exist.  A finding must 
 be made that a condition in clause (1), (2), (3), (4), or (5) 
 also exists. 

    Applications recommended for funding shall be submitted to 
 the commissioner. 

    Subd. 5.    Grant limits.  A Minnesota investment fund 
 grant may not be approved for an amount in excess of $500,000.  
 This limit covers all money paid to complete the same project, 
 whether paid to one or more grant recipients and whether paid in 
 one or more fiscal years.  The portion of a Minnesota investment 
 fund grant that exceeds $100,000 must be repaid to the state 
 when it is repaid to the local community or recognized Indian 
 tribal government by the person or entity to which it was loaned 
 by the local community or Indian tribal government.  Money 
 repaid to the state must be credited to the general fund.  A 
 grant or loan may not be made to a person or entity for the 
 operation or expansion of a casino or a store which is used 
 solely or principally for retail sales.  Persons or entities 
 receiving grants or loans must pay each employee total 
 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. 

    Subd. 6.    Sports facility.  A Minnesota investment 
 fund grant or loan cannot be used for a project related to a 
 sports facility.  For the purpose of this subdivision, "sports 
 facility" means a building that has a professional sports team 
 as a principal tenant. 

    Subd. 7.    Contractual obligation.  A business 
 receiving Minnesota investment fund grants must demonstrate why 
 the grant is necessary for a project and enter into an agreement 
 with the local grantor.  The agreement, among other things, must 
 obligate the recipient to pay the minimum compensation set by 
 this section and meet job creation goals.  A recipient that 
 breaches the agreement must repay the grant directly to the 
 commissioner.  Repayments under this subdivision must be 
 deposited in the general fund. 

    HIST: 1996 c 452 s 29 

     116J.874 Affirmative enterprise program. 

    Subdivision 1.    Definitions.  (a) The definitions in 
 this subdivision apply to this section. 

    (b) "Business entity" means a sole proprietorship, 
 partnership, limited liability company, or corporation. 

    (c) "Disabled person" means a person with a disability as 
 defined under section 363.01, subdivision 13. 

    (d) "Full-time employee" means an employee who is employed 
 for at least 35 hours per week. 

    Subd. 2.    Establishment.  The commissioner of trade 
 and economic development shall establish the affirmative 
 enterprise program for the purpose of encouraging the full-time 
 employment of disabled persons in areas of economic need.  The 
 commissioner shall determine areas of economic need based on 
 present and past levels of unemployment and population loss, and 
 present and past reductions in industrial and business activity. 

    Subd. 3.    Eligibility.  A business entity is eligible 
 for an affirmative enterprise grant if it meets the following 
 criteria: 

    (1) except in the case of a business entity with fewer than 
 ten employees, it employs at least 25 percent of its full-time 
 employees from persons who are not disabled; 

    (2) it employs at least 50 percent of its full-time 
 employees from disabled persons; 

    (3) it maintains an integrated work force of nondisabled 
 and disabled persons at the highest possible level; 

    (4) every full-time employee has an employee status with 
 all accompanying rights and responsibilities; 

    (5) the following benefits are provided to each full-time 
 employee: 

    (i) paid vacation; 

    (ii) paid holidays; 

    (iii) paid sick leave; 

    (iv) a personalized career plan; 

    (v) retirement with employer participation; and 

    (vi) a copayment health insurance plan; 

    (6) a full-time employee selected by all employees of the 
 business entity meets with the business entity's management at 
 least once a month; 

    (7) each full-time employee is informed of other less 
 restrictive employment when it becomes available; 

    (8) all full-time employees are required to participate in 
 at least two evaluations per year with accompanying wage 
 adjustments; and 

    (9) profit-sharing based on the business entity's 
 performance is provided to all full-time employees.  

    Subd. 4.    Grants.  Affirmative enterprise grants must 
 be used by the business to provide training and support services 
 to disabled persons in conjunction with economic development. 

    Subd. 5.    Preference.  Preference for grant awards 
 must be given to a business entity that:  (1) offers ownership 
 options or individual personal improvement plans with 
 employer-sponsored training, has a long-term business plan, and 
 is working collaboratively with the local economic development 
 authority or organization; or (2) has a higher percentage of 
 disabled employees than another eligible entity. 

    Subd. 6. Repealed, 1995 c 224 s 126 

    HIST: 1993 c 369 s 48 

     116J.8745 Microenterprise entrepreneurial assistance. 

    Subdivision 1.    Technical assistance; loan 
 administration.  The commissioner of trade and economic 
 development shall make grants to nonprofit organizations to 
 provide technical assistance to individuals with entrepreneurial 
 plans that require microenterprise loans in an amount ranging 
 from approximately $1,000 to $25,000, and for loan 
 administration costs related to those microenterprise loans.  
 Microenterprise is a small business which employs under five 
 employees plus the owner and requires under $25,000 to start. 

    Subd. 2.    Grant eligibility and allocation.  Nonprofit 
 organizations must apply for grants under this section following 
 procedures established by the commissioner.  To be eligible for 
 a grant, an organization must demonstrate to the commissioner 
 that it has the appropriate expertise.  The commissioner shall 
 give preference for grants to organizations that target 
 nontraditional entrepreneurs such as women, members of a 
 minority, low-income individuals, or persons seeking work who 
 are currently on or recently removed from welfare assistance. 

    An application must include: 

    (1) the local need for microenterprise support; 

    (2) proposed criteria for business eligibility; 

    (3) proposals for identifying and serving eligible 
 businesses; 

    (4) a description of technical assistance to be provided to 
 eligible businesses; 

    (5) proposals to coordinate technical assistance with 
 financial assistance; and 

    (6) a demonstration of ability to collaborate with other 
 agencies including educational and financial institutions. 

    Subd. 3.    Grant evaluations.  Grant recipients must 
 report to the commissioner by February 1 in each of the two 
 years succeeding the year of receipt of the grant.  The report 
 must detail the number of customers served, the number of 
 businesses started, stabilized, or expanded, the number of jobs 
 created and retained, and business success rates.  The 
 commissioner shall report to the legislature on the 
 microenterprise entrepreneurial assistance.  The report shall 
 contain an evaluation of the results, recommendations to 
 continue or change the program, and a suggested level of funding.

    HIST: 1997 c 200 art 1 s 55 

  116J.875 Renumbered 116M.02 

     116J.8755 Small business; electronic access to 
  international markets. 

    The commissioner shall develop a plan for enabling small 
 businesses to gain electronic access to international markets 
 through mechanisms that may include electronic trade points. 

    HIST: 1997 c 200 art 1 s 56 

     116J.876 Definitions. 

    Subdivision 1.    Terms.  For the purposes of this 
 section and sections 116J.8761 to 116J.8769, the terms defined 
 in this section have the meanings given them. 

    Subd. 2.    Agreement.  "Agreement" means an agreement 
 between a lender and the commissioner under which a lender may 
 participate in the program. 

    Subd. 3.    Borrower.  "Borrower" means the recipient of 
 a loan which is, has been, or will be filed by the lender for 
 enrollment under the program and meets the following 
 requirements: 

    (1) the borrower is a corporation, partnership, joint 
 venture, sole proprietorship, cooperative, or other entity, 
 whether profit or nonprofit, which is authorized to conduct 
 business in the state; and 

    (2) the borrower is not an executive officer, director, or 
 principal shareholder of the lender, or a member of the 
 immediate family of an executive officer, director, or principal 
 shareholder of the lender, or an entity controlled by an 
 executive officer, director, principal shareholder, or member of 
 the immediate family. 

    Subd. 4.    Capital access account; account.  "Capital 
 access account" or "account" means an account created in the 
 special revenue fund for the purposes of the capital access 
 program. 

    Subd. 5.    Claim.  "Claim" means any claim filed by the 
 lender under section 116J.8767. 

    Subd. 6.    Commissioner.  "Commissioner" means the 
 commissioner of trade and economic development. 

    Subd. 7.    Early loan.  "Early loan" means an enrolled 
 loan where at the time of enrollment the amount of previously 
 enrolled loans made by the lender under the program was less 
 than $5,000,000. 

    Subd. 8.    Eligible loan.  "Eligible loan" means a loan 
 made by the lender to a borrower that meets the requirements of 
 section 116J.8764. 

    Subd. 9.    Enrolled loan.  "Enrolled loan" means a loan 
 enrolled by the commissioner under the terms of section 
 116J.8764. 

    Subd. 10.    Lender.  "Lender" means a financial 
 institution as defined in section 13A.01, subdivision 2, that 
 has entered into an agreement with the commissioner to 
 participate in the program.  

    Subd. 11.    Passive real estate ownership.  "Passive 
 real estate ownership" means ownership of real estate for the 
 purpose of deriving income from speculation, trade, or rentals, 
 except that the term does not include (1) the ownership of that 
 portion of real estate being used or intended to be used for the 
 operation of the business of the owner of the real estate; or 
 (2) ownership of real estate for the purpose of construction or 
 renovation until the completion of the construction or 
 renovation phase. 

    Subd. 12.    Program.  "Program" means the capital 
 access program created by sections 116J.876 to 116J.8769.  

    Subd. 13.    Reserve fund.  "Reserve fund" means an 
 administrative account maintained by the commissioner for funds 
 accumulated under an agreement with the commissioner to cover 
 losses sustained by the lender on enrolled loans. 

    HIST: 1989 c 335 art 1 s 146 

     116J.8761 Capital access program; creation; 
  administration. 

    A capital access program is created in the department of 
 trade and economic development.  The purpose of the capital 
 access program is to provide capital to businesses, particularly 
 small and medium-sized businesses, to foster economic 
 development.  Loans made under this program are to be slightly 
 riskier than conventional loans, but still offer a high degree 
 of soundness in connection with the capital access program. 

    The commissioner has the power to administer the program, 
 enter into contracts, and take action reasonably necessary to 
 ensure compliance with the program.  The lender shall provide 
 the commissioner with information regarding its participation in 
 the program as the commissioner may reasonably require.  Upon 
 notice to the lender, the commissioner may inspect the files of 
 the lender relating to any loans enrolled under the program 
 during normal business hours of the lender. 

    A lender is eligible to participate in the program upon 
 entering into an agreement with the commissioner governing the 
 duties of the commissioner and the lender under the program. 

    HIST: 1989 c 335 art 1 s 147 

     116J.8762 Commissioner; duties. 

    Subdivision 1.    Duties.  The commissioner must: 

    (1) market the capital access program to businesses and 
 other persons in the state in cooperation with financial 
 institutions and statewide associations representing financial 
 institutions; 

    (2) establish a reservation or allocation system so that 
 lenders may reserve an allocation of funds in the account before 
 or after the lender enters into a loan agreement or contract 
 with a borrower; and 

    (3) develop the program, in cooperation with financial 
 institutions and statewide associations representing financial 
 institutions, so that the degree of flexibility for the 
 commissioner and the participating lenders is maximized and the 
 state oversight of individual loans is minimized, and the fiscal 
 integrity of the program is maintained. 

    Subd. 2.    Interests of commissioner.  Except upon the 
 exercise of the commissioner's right of subrogation under 
 section 116J.8767, the commissioner has no legal or equitable 
 interest in any collateral, security, or other right of recovery 
 in connection with any loan enrolled in the program, and the 
 commissioner's consent is not necessary for any amendment to the 
 lender's loan documents. 

    HIST: 1989 c 335 art 1 s 148 

     116J.8763 Eligible loans. 

    Subdivision 1.    Loan types.  Eligible loans may 
 include: 

    (1) loans made for industrial, commercial, or agricultural 
 purposes; 

    (2) refinancing of loans made for the purposes in clause 
 (1); and 

    (3) lines of credit agreements established between the 
 lender and borrower which are used for the purposes in clause 
 (1). 

    Subd. 2.    Loan restrictions.  Eligible loans must meet 
 the following criteria: 

    (1) the lender has not made the loan in order to enroll in 
 the program prior debt which is not covered under the program 
 and which is or was owed by the borrower to the lender; 

    (2) the proceeds of the loan will not be used for that 
 portion of a project or development devoted to housing; 

    (3) the proceeds of the loan will not be used to finance 
 passive real estate ownership; and 

    (4) the proceeds of the loan will be used to finance a 
 project or enterprise located within this state which will 
 foster economic development in Minnesota. 

    Subd. 3.    Loan provisions.  An eligible loan may 
 provide for an interest rate, fees, and other terms and 
 conditions as the lender and borrower may agree.  If the loan 
 amount to be borrowed is determined by a commitment agreement 
 that establishes a line of credit, the amount of the loan is the 
 maximum amount available to the borrower under the agreement. 

    HIST: 1989 c 335 art 1 s 149 

     116J.8764 Enrollment of loans in program. 

    Subdivision 1.    Filing requirements.  (a) To enroll a 
 loan under this program, the lender must file a completed loan 
 enrollment form with the commissioner.  The lender must also 
 certify the following to the commissioner as part of the filing: 

    (1) the lender has no substantial reason to believe that 
 the loan is being made to a borrower who does not meet the 
 requirements of section 116J.876, subdivision 3; 

    (2) that the lender has received from the borrower a 
 written representation, warranty, pledge, and waiver stating 
 that the borrower has no legal, beneficial, or equitable 
 interest in the nonrefundable premium charges or any other funds 
 credited to the reserve fund established to cover losses 
 sustained by the lender on enrolled loans; 

    (3) the loan being filed for enrollment is an eligible loan 
 under section 116J.8763; and 

    (4) premium changes required of the borrower and lender 
 under this section have been deposited in the reserve fund. 

    (b) The lender shall file the loan enrollment form within 
 ten business days after the lender makes the loan.  The date on 
 which the lender makes a loan is the date on which the lender 
 first disburses proceeds of the loan to the borrower or an 
 earlier date on which the loan documents have been executed and 
 the lender has obligated itself to disburse proceeds of the loan.
 The filing date of a loan enrollment form is the date on which 
 the lender delivers the required documentation to the 
 commissioner, delivers it to a professional courier service for 
 delivery to the commissioner, or mails it to the commissioner by 
 certified mail. 

    Subd. 2.    Commissioner enrollment; acknowledgment.  
 When the commissioner receives the loan enrollment form, the 
 commissioner shall enroll the loan, unless the information 
 provided under subdivision 1 indicates that the loan is not an 
 eligible loan, and shall deliver to the lender within five 
 business days of receipt an acknowledgment of enrollment, signed 
 by the commissioner or designee, including documentation of the 
 amount being transferred by the commissioner into the reserve 
 fund under this section. 

    Subd. 3.    Amount covered.  When filing a loan 
 enrollment form, the lender may specify an amount to be covered 
 under the program.  The amount may be less than the total amount 
 of the loan.  Unless the context clearly requires otherwise, 
 when used in connection with a loan or loans, the words "amount" 
 and "proceeds" refer only to the amount covered under the 
 agreement. 

    Subd. 4.    Amount covered in refinancings.  (a) In the 
 case of a loan to refinance a loan previously made to the 
 borrower by the lender that was not enrolled under the program, 
 the lender may obtain coverage under the program for an amount 
 not exceeding the amount of additional financing. 

    (b) If an enrolled loan is refinanced and the total amount 
 to be covered under the program does not exceed the covered 
 amount of the loan as previously enrolled, the refinanced loan 
 may continue as an enrolled loan without payment of additional 
 premium charges or transfers by the commissioner to the reserve 
 fund. 

    (c) If an enrolled loan is refinanced in an amount 
 exceeding the amount of the loan as previously enrolled, the 
 lender may obtain coverage of the amount of the refinanced loan 
 that exceeds the amount covered when the loan was previously 
 enrolled by refiling the loan for enrollment under subdivision 1.

    (d) Fluctuations in the outstanding balance of a line of 
 credit, without increasing the enrolled amount under the 
 program, are not a refinancing of the loan. 

    Subd. 5.    Termination of enrollment.  If the 
 outstanding balance of an enrolled loan which is not a line of 
 credit is reduced to zero, the loan is no longer an enrolled 
 loan.  If an enrolled loan which is a line of credit has an 
 outstanding balance of zero for a 12-month period, the line of 
 credit is no longer an enrolled loan, unless, before the 
 expiration of the 12-month period, the lender reaffirms in 
 writing to the borrower that the line of credit will remain open 
 and the borrower acknowledges the reaffirmation in writing. 

    HIST: 1989 c 335 art 1 s 150 

     116J.8765 Reserve fund; premiums. 

    Subdivision 1.    Creation.  Upon execution of an 
 agreement between the lender and the commissioner, the 
 commissioner shall establish a reserve fund account with the 
 lender in the name of the commissioner for the purpose of 
 receiving all required premium charges to be paid by the lender 
 and the borrower and transfers made by the commissioner under 
 sections 116J.876 to 116J.8769. 

    Subd. 2.    Premium payments and transfers to reserve 
 fund.  The premium charges payable to the reserve fund by the 
 lender and the borrower in connection with a loan filed for 
 enrollment are determined by the lender.  The premium paid by 
 the borrower may not be less than 1.5 percent nor greater than 
 3.5 percent of the amount of the loan.  The premium paid by the 
 lender shall be equal to the amount of the premium paid by the 
 borrower.  The lender may recover from the borrower the cost of 
 the lender's premium payment, in any manner in which the lender 
 and borrower agree.  When enrolling a loan, the commissioner 
 shall transfer into the reserve fund from the account premium 
 amounts determined as follows: 

    (a) If the amount of any loan, plus the amount of loans 
 previously enrolled by the lender, is less than $2,000,000, the 
 premium amount transferred must be equal to 150 percent of the 
 combined premiums paid into the reserve fund by the borrower and 
 the lender for each enrolled loan. 

    (b) If, prior to the enrollment of the loan, the amount of 
 loans previously enrolled by the lender equals or exceeds 
 $2,000,000, the premium amount transferred must be equal to the 
 combined premiums paid into the reserve fund by the borrower and 
 the lender for each enrolled loan. 

    (c) If the amount of loans previously enrolled by the 
 lender is less than $2,000,000, but the enrollment of a loan 
 will cause the aggregate amount of all enrolled loans made by 
 the lender to exceed $2,000,000, the premium amount transferred 
 must be equal to a percentage of the combined amount paid by the 
 lender and the borrower.  The percentage must be determined by 
 (1) multiplying by 150 that portion of the loan which when added 
 to the amount of all previously enrolled loans totals 
 $2,000,000, (2) multiplying the balance of the loan by 100, and 
 (3) adding the products of the two amounts and dividing the sum 
 by the total amount of the loan. 

    Subd. 3.    Limitation of transfers.  A maximum premium 
 amount of $150,000 may be transferred into the reserve funds of 
 all lenders participating in the program by the commissioner 
 over any three-year period in connection with any one borrower 
 or any group of borrowers among which a common enterprise 
 exists.  This maximum premium amount may be exceeded upon the 
 written request by a lender only if the commissioner approves in 
 writing the transfer of an amount in excess of $150,000.  For 
 the purpose of this subdivision, the term "common enterprise" 
 has the meaning given it in Code of Federal Regulations, title 
 12, section 32, as amended. 

    Subd. 4.    Control and investment of reserve fund.  (a) 
 All money credited to the reserve fund is under the exclusive 
 control of the commissioner.  The commissioner may not withdraw 
 money from the reserve fund except as specifically provided in 
 this subdivision and sections 116J.8766 and 116J.8768. 

    (b) Money in the reserve fund must be deposited by the 
 commissioner in an account with the lender unless the 
 commissioner determines that the lender is not in substantial 
 compliance with the requirements of the agreement.  If money in 
 the reserve fund is not deposited by the commissioner in an 
 account with the lender, it must be invested or reinvested by 
 the commissioner in (1) direct obligations of the United States 
 or the state of Minnesota or in obligations the principal and 
 interest of which are unconditionally guaranteed by the United 
 States or the state of Minnesota, or (2) a deposit account at a 
 depository institution whose deposits are insured by the Federal 
 Deposit Insurance Corporation or the Federal Savings and Loan 
 Insurance Corporation. 

    (c) Interest or income earned on the money credited to the 
 reserve fund is part of the reserve fund.  The commissioner may 
 withdraw at any time from the reserve fund 50 percent of all 
 interest or income that has been credited to the reserve fund, 
 except that after the first withdrawal the commissioner may not 
 withdraw more than 50 percent of all interest or income that has 
 been credited to the reserve fund since the time of the last 
 withdrawal.  Any withdrawal made under this subdivision may be 
 made prior to paying any claim.  None of the amounts withdrawn 
 need to be transferred back to the reserve fund.  Any withdrawal 
 under this subdivision must be credited in the capital access 
 account. 

    Subd. 5.    Pledge of the reserve fund.  The 
 commissioner shall pledge to the lender that the money in the 
 reserve fund will be available to pay claims under section 
 116J.8766, that the lender will have a first security interest 
 in the money in the reserve fund to pay the claims, and that the 
 commissioner will not encumber or pledge the money to any other 
 party.  

    Subd. 6.    Quarterly reports; inspections.  (a) If the 
 reserve fund is not maintained with the lender, the commissioner 
 shall provide to the lender quarterly transaction reports 
 indicating the balance in the reserve fund, payments and 
 transfers into the reserve fund, withdrawals from the reserve 
 fund, and interest or income earned on money credited to the 
 reserve fund. 

    (b) The records of the commissioner with respect to all 
 payments and transfers into the reserve fund, withdrawals from 
 the reserve fund, and interest or income earned on the money 
 credited to the reserve fund, are available to the lender at the 
 offices of the commissioner during normal business hours. 

    HIST: 1989 c 335 art 1 s 151 

     116J.8766 Claims by lender to reserve fund. 

    Subdivision 1.    Claim process.  (a) If the lender 
 charges off all or part of an enrolled loan, the lender may file 
 a claim with the commissioner.  The claim must be filed 
 contemporaneously with the charge-off. 

    (b) The lender's claim may include, in addition to the 
 amount of principal charged off plus accrued interest, one-half 
 of the documented out-of-pocket expenses incurred in pursuing 
 its collection efforts, including preservation of collateral.  
 The amount of principal and accrued interest included in the 
 claim may not exceed the principal amount covered under the 
 program upon enrollment, plus accrued interest attributable to 
 the covered principal amount. 

    (c) The lender shall determine when and how much to charge 
 off on an enrolled loan in a manner consistent with its normal 
 method for making these determinations on similar loans which 
 are not enrolled loans. 

    (d) If the lender files two or more claims 
 contemporaneously and there are insufficient funds in its 
 reserve fund at that time to cover the entire amount of the 
 claims, the lender may designate the order of priority in which 
 the commissioner shall pay the claims. 

    Subd. 2.    Disbursement of reserve fund.  (a) Upon 
 receipt by the commissioner of a claim filed by the lender, the 
 commissioner shall, within ten business days, pay or authorize 
 the lender to withdraw from the reserve fund the amount of the 
 claim as submitted, unless the information provided by the 
 lender was known by the lender to be false at the time the loan 
 was filed for enrollment.  No other violation of sections 
 116J.876 to 116J.8769 or the agreement is grounds for denial of 
 a claim.  All money transferred or credited to the reserve fund 
 from any source is appropriated to the commissioner to pay 
 claims under this section. 

    (b) If there is insufficient money in the reserve fund to 
 cover the entire amount of the lender's claim, the commissioner 
 shall pay to the lender or authorize the lender to withdraw an 
 amount equal to the current balance in the reserve fund and the 
 following shall apply: 

    (1) If the enrolled loan for which the claim has been filed 
 is not an early loan, the payment fully satisfies the claim, and 
 the lender has no right to receive any further amount from the 
 reserve fund with respect to that claim. 

    (2) If the loan is an early loan, the partial payment does 
 not satisfy the lender's claim, and at any time that the 
 remaining balance of the claim is not greater than 75 percent of 
 the balance in the reserve fund at the time of the loss, the 
 commissioner, upon request of the lender, shall pay the 
 remaining balance of the claim. 

    Subd. 3.    Recovery by lender subsequent to claim.  If, 
 subsequent to payment of a claim by the commissioner, the lender 
 recovers from a borrower any amount for which payment of the 
 claim was made, the lender shall promptly pay to the 
 commissioner for deposit in the reserve fund the amount 
 recovered, less one-half of any documented out-of-pocket 
 expenses incurred.  The lender need pay to the commissioner for 
 deposit in the reserve fund only amounts in excess of the amount 
 of recovery needed to fully cover the lender's loss on an 
 enrolled loan. 

    For the purposes of this subdivision and section 116J.8767, 
 the lender's loss on an enrolled loan includes any losses on the 
 loan including principal, accrued interest, and one-half of the 
 documented out-of-pocket expenses attributable to principal 
 amounts in excess of the amount covered under the program or the 
 principal amount included in the claim. 

    Subd. 4.    Technical assistance.  When a borrower 
 becomes 60 days delinquent in the payments of an enrolled loan 
 or before a lender files a claim with the commissioner, the 
 lender must notify the commissioner of the delinquency.  The 
 commissioner, after notification, shall inform the borrower of 
 the technical assistance providers in the borrower's area that 
 may assist in solving any business or management problems 
 experienced by the borrower. 

    HIST: 1989 c 335 art 1 s 152; 1990 c 423 s 4; 1991 c 345 art 1 
 s 72 

     116J.8767 Subrogation of claims. 

    Subdivision 1.    Limitation.  The commissioner may 
 exercise the right of subrogation under this section if the 
 commissioner determines, in the commissioner's discretion, that 
 the lender has not exercised reasonable care and diligence in 
 its collection activities with respect to the loan or that there 
 is a reasonable basis for believing that the lender will not 
 exercise reasonable care and diligence in the future with 
 respect to the collection activities. 

    Subd. 2.    Assignment of rights.  If the payment of a 
 claim has fully covered the lender's loss on an enrolled loan, 
 or if the payment of a claim when combined with any recovery 
 from the borrower has fully covered the lender's loss, the 
 commissioner, upon request, is subrogated to the rights of the 
 lender with respect to any collateral, security, or other right 
 of recovery in connection with the loan that has not been 
 realized by the lender.  The lender thereafter shall assign to 
 the commissioner any right, title, or interest to any 
 collateral, security, or other right of recovery in connection 
 with the loan. 

    Subd. 3.    Lender obligations.  If an assignment has 
 been made, the commissioner is not required to undertake any 
 obligations of the lender under its loan documents, except for 
 any obligations directly related to the commissioner's assigned 
 rights of recovery in connection with the loan.  The lender 
 shall fulfill any other obligations it may have under the loan 
 documents in the same manner and to the same degree as required 
 had the assignment not been made.  The lender shall provide the 
 commissioner with all reasonable assistance the commissioner 
 requests in proceeding with respect to any collateral, security, 
 or other right of recovery, except that the lender need not 
 incur any out-of-pocket expenses. 

    Subd. 4.    Payment of lender's loss.  If the 
 commissioner decides to exercise the right of subrogation in 
 connection with an enrolled loan and would be entitled to 
 exercise the right except for the fact that the lender's loss 
 has not been fully covered, the commissioner may pay from money 
 in the reserve fund an amount sufficient to fully cover the 
 lender's loss even though the payment may cover a principal 
 amount not covered under the program or not included in the 
 lender's claim.  Upon making the payment, the commissioner is 
 subrogated to the rights of the lender. 

    Subd. 5.    Recovered funds.  Any money received by the 
 commissioner as a result of enforcement actions taken with 
 respect to any collateral, security, or other rights of recovery 
 must be promptly deposited by the commissioner in the reserve 
 fund, less any out-of-pocket expenses incurred by the 
 commissioner in taking such enforcement actions. 

    HIST: 1989 c 335 art 1 s 153 

     116J.8768 Excess reserve funds. 

    Subdivision 1.    Reports.  The lender shall file 
 quarterly reports with the commissioner indicating the number 
 and aggregate outstanding balance of all enrolled loans as of 
 the end of each quarter.  A quarterly report is not required for 
 any quarter that ends with a balance in the reserve fund of 
 zero, except that a calendar year-end report must be filed.  In 
 computing the aggregate outstanding balance of all enrolled 
 loans, the balance of any loan may not be greater than the 
 covered amount of the loan as enrolled. 

    Subd. 2.    Withdrawal of excess reserve funds.  (a) If 
 reports filed under this section indicate that for the 
 immediately preceding 24-month period the balance in the reserve 
 fund continually exceeded the aggregate outstanding balance of 
 all enrolled loans, the commissioner may withdraw from the 
 reserve fund, on or before the last day of the month for which a 
 report is due, an amount not greater than the amount by which 
 the reserve fund balance exceeded the aggregate outstanding 
 balance of all enrolled loans as of the most recent report, 
 unless the lender has provided to the commissioner adequate 
 documentation that at some time during that 24-month period the 
 aggregate outstanding balance of all enrolled loans exceeded the 
 balance then in the reserve fund.  Any amounts withdrawn from 
 the reserve fund must be transferred to the account. 

    (b) If a report is not filed within 30 days of its original 
 due date, the commissioner may withdraw from the reserve fund 
 based on the commissioner's determination from an inspection of 
 the lender's files an amount not greater than the amount by 
 which the reserve fund balance exceeded the aggregate 
 outstanding balance of all enrolled loans as of the date for 
 which the report was required to be filed. 

    HIST: 1989 c 335 art 1 s 154 

     116J.8769 Termination. 

    The commissioner may terminate the obligation to a lender 
 to enroll loans under the program if the commissioner determines 
 that the lender is not in substantial compliance with the 
 requirements of the program.  The termination takes effect on 
 the date specified in the notice of termination, except that the 
 termination does not apply to any loan made on or before the 
 date on which the notice of termination is received by the 
 lender.  If the commissioner is terminating the enrollment of 
 loans for all participating lenders under the program, the 
 commissioner shall provide notice of at least 90 days to the 
 lender.  Any terminations under this section are prospective 
 only and do not apply to any loans previously refinanced.  After 
 termination, the amount covered under the program may not be 
 increased beyond the covered amount as previously enrolled. 

    HIST: 1989 c 335 art 1 s 155 

    116J.88 Subdivision 1.  Renumbered 116M.03 
 subdivision 1 

    Subd. 2.  Renumbered 116M.03 subd 2 

    Subd. 3.  Repealed, 1983 c 289 s 119 

    Subd. 3a.  Renumbered 116M.03 subd 3 

    Subd. 4.  Renumbered 116M.03 subd 4 

    Subd. 4a.  Renumbered 116M.03 subd 5 

    Subd. 4b.  Renumbered 116M.03 subd 6 

    Subd. 4c.  Renumbered 116M.03 subd 7 

    Subd. 5.  Renumbered 116M.03 subd 8 

    Subd. 6.  Renumbered 116M.03 subd 9 

    Subd. 6a.  Renumbered 116M.03 subd 10 

    Subd. 7.  Renumbered 116M.03 subd 11 

    Subd. 7a.  Renumbered 116M.03 subd 12 

    Subd. 7b.  Renumbered 116M.03 subd 13 

    Subd. 8.  Renumbered 116M.03 subd 14 

    Subd. 8a.  Renumbered 116M.03 subd 15 

    Subd. 8b.  Renumbered 116M.03 subd 16 

    Subd. 9.  Renumbered 116M.03 subd 17 

    Subd. 10.  Renumbered 116M.03 subd 18 

    Subd. 11.  Renumbered 116M.03 subd 19 

    Subd. 12.  Renumbered 116M.03 subd 20 

    Subd. 13.  Renumbered 116M.03 subd 21 

    Subd. 14.  Renumbered 116M.03 subd 22 

    Subd. 15.  Renumbered 116M.03 subd 23 

    Subd. 16.  Renumbered 116M.03 subd 24 

    Subd. 17.  Renumbered 116M.03 subd 25 

    Subd. 18.  Renumbered 116M.03 subd 26 

    116J.89 Subdivision 1.  Renumbered 116M.06 
 subdivision 1 

    Subd. 1a.  Renumbered 116M.06 subd 2 

    Subd. 1b.  Renumbered 116M.06 subd 3 

    Subd. 1c.  Renumbered 116M.06 subd 4 

    Subd. 1d.  Renumbered 116M.06 subd 5 

    Subd. 2.  Renumbered 116M.06 subd 6 

    Subd. 3.  Renumbered 116M.06 subd 7 

    Subd. 4.  Renumbered 116M.06 subd 8 

    Subd. 5.  Renumbered 116M.06 subd 9 

    Subd. 6.  Renumbered 116M.06 subd 10 

    Subd. 7.  Repealed, 1983 c 213 s 25 

    Subd. 8.  Renumbered 116M.06 subd 11 

    Subd. 9.  Renumbered 116M.06 subd 12 

    Subd. 10.  Renumbered 116M.06 subd 13 

    116J.90 Subdivision 1.  Renumbered 116M.07 
 subdivision 1 

    Subd. 2.  Renumbered 116M.07 subd 2 

    Subd. 2a.  Renumbered 116M.07 subd 3 

    Subd. 3.  Renumbered 116M.07 subd 4 

    Subd. 3a.  Renumbered 116M.07 subd 5 

    Subd. 3b.  Renumbered 116M.07 subd 6 

    Subd. 3c.  Renumbered 116M.07 subd 7 

    Subd. 4.  Renumbered 116M.07 subd 8 

    Subd. 4a.  Renumbered 116M.07 subd 9 

    Subd. 5.  Renumbered 116M.07 subd 10 

    Subd. 5a.  Renumbered 116M.07 subd 11 

    Subd. 6.  Renumbered 116M.07 subd 12 

    Subd. 7.  Renumbered 116M.07 subd 13 

    116J.91 Subdivision 1.  Renumbered 116M.08 
 subdivision 1 

    Subd. 2.  Renumbered 116M.08 subd 2 

    Subd. 3.  Renumbered 116M.08 subd 3 

    Subd. 4.  Renumbered 116M.08 subd 4 

    Subd. 5.  Renumbered 116M.08 subd 5 

    Subd. 6.  Renumbered 116M.08 subd 6 

    Subd. 7.  Renumbered 116M.08 subd 7 

    Subd. 8.  Renumbered 116M.08 subd 8 

    Subd. 9.  Renumbered 116M.08 subd 9 

    Subd. 10.  Renumbered 116M.08 subd 10 

    Subd. 11.  Renumbered 116M.08 subd 11 

    Subd. 12.  Renumbered 116M.08 subd 12 

    Subd. 13.  Renumbered 116M.08 subd 13 

    Subd. 14.  Renumbered 116M.08 subd 14 

    Subd. 15.  Renumbered 116M.08 subd 15 

    Subd. 16.  Renumbered 116M.08 subd 16 

    Subd. 17.  Renumbered 116M.08 subd 17 

    Subd. 18.  Renumbered 116M.08 subd 18 

    Subd. 19.  Renumbered 116M.08 subd 19 

    Subd. 19a.  Renumbered 116M.08 subd 20 

    Subd. 20.  Renumbered 116M.08 subd 21 

  116J.921 Renumbered 116M.09 

  116J.922 Repealed, 1984 c 583 s 37 

    116J.923 Subdivision 1.  Renumbered 116M.10 
 subdivision 1 

    Subd. 2.  Repealed, 1984 c 583 s 37 

    Subd. 3.  Renumbered 116M.10 subd 2 

    Subd. 4.  Renumbered 116M.10 subd 3 

    Subd. 5.  Renumbered 116M.10 subd 4 

    Subd. 6.  Renumbered 116M.10 subd 5 

    Subd. 7.  Renumbered 116M.10 subd 6 

    Subd. 8.  Renumbered 116M.10 subd 7 

    Subd. 9.  Renumbered 116M.10 subd 8 

    Subd. 10.  Renumbered 116M.10 subd 9 

    Subd. 11.  Renumbered 116M.10 subd 10 

    Subd. 12.  Repealed, 1984 c 583 s 37 

    116J.924 Subdivision 1.  Repealed, 1984 c 583 s 37 

    Subd. 2.  Renumbered 116M.11 subdivision 1 

    Subd. 3.  Renumbered 116M.11 subd 2 

    Subd. 4.  Renumbered 116M.11 subd 3 

    Subd. 5.  Renumbered 116M.11 subd 4 

  116J.925 Renumbered 116M.12 

  116J.926 Renumbered 116M.13 

  116J.94 Repealed, 1987 c 314 s 5 

  116J.951 Repealed, 1987 c 386 art 1 s 13 

     116J.955 Rural rehabilitation revolving account. 

    Subdivision 1.    Establishment.  The rural 
 rehabilitation account is in the special revenue fund.  The 
 money transferred to the state as a result of liquidating the 
 rural rehabilitation corporation trust, and money derived from 
 transfer of the trust to the state, must be credited to the 
 rural rehabilitation account.  The principal amount of the rural 
 rehabilitation account must be invested by the state investment 
 board.  The income attributable to investment of the principal 
 is appropriated to the commissioner for the purposes of Laws 
 1987, chapter 386, article 1. 

    Subd. 2.    Expenditure of account.  The commissioner 
 may use the rural rehabilitation account for the purposes that 
 are allowed under the Minnesota rural rehabilitation 
 corporation's charter and agreement with the United States 
 Secretary of Agriculture as provided in Public Law Number 499, 
 81st Congress, enacted May 3, 1950 and as allowed under Laws 
 1987, chapter 386, article 1.  Not more than three percent of 
 the book value of the Minnesota rural rehabilitation 
 corporation's assets may be used for administrative purposes in 
 a year without approval of the United States Secretary of 
 Agriculture.  

    Subd. 3.    Transfer of authorized records to 
 commissioner.  The authority, assets, books, and records held 
 by the Minnesota rural rehabilitation corporation and later by 
 the state executive council under Public Law Number 499, 81st 
 Congress, May 3, 1950, is transferred to the commissioner.  

    HIST: 1985 c 254 s 2; 1987 c 386 art 1 s 1,2; 1989 c 335 art 4 
 s 49,50 

  116J.961 Repealed, 1987 c 386 art 1 s 13 

  116J.965 Repealed, 1987 c 386 art 1 s 13 

     116J.966 Commissioner's trade promotion duties. 

    Subdivision 1.    Generally.  (a) The commissioner shall 
 promote, develop, and facilitate trade and foreign investment in 
 Minnesota.  In furtherance of these goals, and in addition to 
 the powers granted by section 116J.035, the commissioner may:  

    (1) locate, develop, and promote international markets for 
 Minnesota products and services; 

    (2) arrange and lead trade missions to countries with 
 promising international markets for Minnesota goods, technology, 
 services, and agricultural products; 

    (3) promote Minnesota products and services at domestic and 
 international trade shows; 

    (4) organize, promote, and present domestic and 
 international trade shows featuring Minnesota products and 
 services; 

    (5) host trade delegations and assist foreign traders in 
 contacting appropriate Minnesota businesses and investments; 

    (6) develop contacts with Minnesota businesses and gather 
 and provide information to assist them in locating and 
 communicating with international trading or joint venture 
 counterparts; 

    (7) provide information, education, and counseling services 
 to Minnesota businesses regarding the economic, commercial, 
 legal, and cultural contexts of international trade; 

    (8) provide Minnesota businesses with international trade 
 leads and information about the availability and sources of 
 services relating to international trade, such as export 
 financing, licensing, freight forwarding, international 
 advertising, translation, and custom brokering; 

    (9) locate, attract, and promote foreign direct investment 
 and business development in Minnesota to enhance employment 
 opportunities in Minnesota; 

    (10) provide foreign businesses and investors desiring to 
 locate facilities in Minnesota information regarding sources of 
 governmental, legal, real estate, financial, and business 
 services; 

    (11) enter into contracts or other agreements with private 
 persons and public entities, including agreements to establish 
 and maintain offices and other types of representation in 
 foreign countries, to carry out the purposes of promoting 
 international trade and attracting investment from foreign 
 countries to Minnesota and to carry out this section, without 
 regard to section 16C.06; 

    (12) enter into administrative, programming, and service 
 partnerships with the Minnesota world trade center; and 

    (13) market trade-related materials to businesses and 
 organizations, and the proceeds of which must be placed in a 
 special revolving account and are appropriated to the 
 commissioner to prepare and distribute trade-related materials.  

    (b) The programs and activities of the commissioner of 
 trade and economic development and the Minnesota trade division 
 may not duplicate programs and activities of the commissioner of 
 agriculture or the Minnesota world trade center corporation. 

    (c) The commissioner shall notify the chairs of the senate 
 finance and house appropriations committees of each agreement 
 under this subdivision to establish and maintain an office or 
 other type of representation in a foreign country.  

    Subd. 2.    Agricultural promotion.  The commissioner of 
 agriculture, the commissioner of trade and economic development, 
 and the director of the Minnesota trade division shall cooperate 
 with each other to promote the beneficial agricultural interests 
 of the state.  The commissioner of trade and economic 
 development and the director of the Minnesota trade division 
 have primary responsibility for promoting state agricultural 
 interests to international markets.  The commissioner of trade 
 and economic development and the director of the Minnesota trade 
 division are also responsible for the promotion of national 
 trade programs related to international marketing.  The 
 commissioner of agriculture has primary responsibility for 
 promoting the agriculture interests of producers, promoting 
 state agricultural markets, and promoting agricultural interests 
 of the state in cooperative production and marketing efforts 
 with other states and the United States Department of 
 Agriculture.  The commissioner of agriculture is also 
 responsible for promoting the national marketing of state 
 agricultural products. 

    HIST: 1987 c 312 art 1 s 20; 1988 c 686 art 1 s 65; 1993 c 163 
 art 1 s 20; 1994 c 632 art 4 s 45; 1998 c 386 art 2 s 37 

  116J.967 Repealed, 1991 c 345 art 1 s 117 

     116J.9671 Trade and export development. 

    The commissioner of the department of trade and economic 
 development shall encourage and develop commerce and devise ways 
 and means of removing trade barriers hampering the free flow of 
 commerce between this and other states.  

    HIST: 1983 c 289 s 6; 1987 c 312 art 1 s 26 subd 1; 1987 c 396 
 art 10 s 3,8 

     116J.9672 Definitions. 

    Subdivision 1.    Scope.  For the purposes of section 
 116J.9673, the following terms have the meanings given them.  

    Subd. 2.    Finance authority.  "Finance authority" 
 means the export finance authority.  

    Subd. 3.    Preexport.  "Preexport" means that period of 
 time between the formation of a sale and the actual shipment of 
 the goods.  

    Subd. 4.    Postexport.  "Postexport" means the period 
 of time between a shipment of goods and receipt of final payment 
 for the goods. 

    HIST: 1983 c 289 s 7; 1984 c 461 s 1; 1987 c 312 art 1 s 26 
 subd 1; 1987 c 396 art 10 s 8 

     116J.9673 Export finance authority. 

    Subdivision 1.    Creation; purpose.  The export finance 
 authority is created to aid and facilitate the financing of 
 exports from this state.  The finance authority powers shall be 
 used exclusively to meet the credit needs of Minnesota exporters.

    Subd. 2.    Board of directors.  The governor shall 
 appoint seven members to the authority's board of directors.  
 Six members shall be knowledgeable in international finance, 
 exporting, or international law and one member shall represent a 
 company specializing in agricultural trade. 

    The commissioner of the department of trade and economic 
 development shall be chair of the board.  Membership, terms, 
 compensation and removals are governed by section 15.0575.  
 Board members shall perform their duties in a non-self-serving 
 manner and in compliance with section 10A.07.  

    Subd. 3.    Powers.  The finance authority has the power 
 and authority to perform the following functions and may:  

    (1) insure, coinsure, and guarantee against commercial 
 preexport and postexport credit risks; 

    (2) sue and be sued; 

    (3) enter into agreements and transactions with any person, 
 partnership, or corporation, both foreign and domestic, state, 
 federal, and foreign governments and governmental agencies; 

    (4) acquire and hold personal and real property pursuant to 
 the provisions of insurance and the granting of guarantees; 

    (5) pledge and appropriate collateral; 

    (6) charge premiums, interest, and fees; 

    (7) provide administrative, consultative, and technical 
 services to assist in the financing of exports; 

    (8) prepare and receive reports regarding credit, 
 insurance, and guarantees with respect to export finance; 

    (9) perform all necessary and appropriate operations, 
 administration, processing, and marketing functions related to 
 the authority's functions; and 

    (10) adopt rules necessary to carry out responsibilities 
 under this section.  

    Subd. 4.    Working capital account.  An export finance 
 authority working capital account is created as a special 
 account in the state treasury.  All premiums and interest 
 collected under subdivision 3, clause (6), must be deposited 
 into this account.  Fees collected must be credited to the 
 general fund.  The balance in the account may exceed $918,000 on 
 June 30, 1994, and $1,000,000 on June 30 of each subsequent year 
 through accumulated earnings.  Any balance in excess of $918,000 
 on June 30, 1994, and $1,000,000 on June 30 of every subsequent 
 year must be transferred to the general fund.  Money in the 
 account including interest earned and appropriations made by the 
 legislature for the purposes of this section, is appropriated 
 annually to the finance authority for the purposes of this 
 section.  The balance in the account may decline below $918,000 
 on June 30, 1994, and $1,000,000 on June 30 of each subsequent 
 year as required to pay defaults on guaranteed loans. 

    Subd. 5.    Annual report.  The chair and board of 
 directors shall submit to the governor an annual report on the 
 activities of the finance authority.  

    Subd. 6.    Liability limitation.  The finance authority 
 may not have at any one time net liabilities greater than four 
 times its capital and reserves.  

    Subd. 7.    Insurance and guarantees.  The finance 
 authority may provide insurance and guarantees to the following 
 extent:  

    (1) The finance authority may provide to any one person 
 insurance or guarantees for preexport transactions or for 
 postexport transactions.  When insuring, coinsuring, or 
 guaranteeing the postexport portion of transactions, the finance 
 authority shall retain not more than ten percent of the 
 commercial risk, or alternatively, the normal and standard 
 deductible of the insurance policy.  

    (2) The policy of the finance authority is to provide 
 insurance and guarantees for export credits that would otherwise 
 not be made and that the chair and the board deem to represent a 
 reasonable risk and have a sufficient likelihood of repayment.  

    (3) The finance authority shall contract with, among 
 others, the Foreign Credit Insurance Association, the United 
 States Export-Import Bank, and private insurers to secure 
 insurance or reinsurance for country and commercial risks for 
 the finance authority's insurance program.  The finance 
 authority may purchase insurance policies using money from the 
 finance authority's appropriations. 

    (4) Losses incurred by the finance authority that relate to 
 its insurance or guarantee activities shall be solely borne by 
 the finance authority to the extent of its capital and reserves. 

    Subd. 8.    Staffing.  The commissioner of the 
 department of trade and economic development shall provide staff 
 to work for the finance authority.  

    HIST: 1983 c 289 s 8; 1984 c 461 s 2-5; 1986 c 444; 1987 c 312 
 art 1 s 26 subd 1; 1987 c 396 art 10 s 8; 1988 c 686 art 1 s 46; 
 1989 c 335 art 4 s 51; 1992 c 513 art 4 s 33; 1992 c 602 s 
 10,11; 1994 c 632 art 4 s 46 

  116J.968 Repealed, 1989 c 335 art 4 s 109 

  116J.970 Repealed, 1988 c 629 s 23; 1991 c 322 s 20 

  116J.971 Repealed, 1988 c 629 s 23; 1991 c 322 s 20 

  116J.974 Repealed, 1996 c 310 s 1 

  116J.975 Repealed, 1997 c 7 art 1 s 40 

     116J.980 Community development. 

    Subdivision 1.    Duties.  The department of trade and 
 economic development shall:  

    (1) be responsible for administering all state community 
 development and assistance programs, including the economic 
 recovery account, the outdoor recreation grant program, the 
 rural development programs, the Minnesota public facilities 
 authority loan and grant programs, and the enterprise zone 
 program; 

    (2) be responsible for state administration of federally 
 funded community development and assistance programs, including 
 the small cities development grant program and land and water 
 conservation program; 

    (3) provide technical assistance to rural communities for 
 community development in cooperation with regional development 
 commissions; 

    (4) coordinate the development and review of state rural 
 development policies; and 

    (5) be responsible for coordinating community assistance 
 and development programs in cooperation with regional 
 development commissions. 

    Subd. 2.    General complement authority.  The 
 department may combine all related state and federal complement 
 positions into general fund positions, to carry out the 
 responsibilities under subdivision 1.  The number of general 
 fund positions must not exceed the aggregate number of all state 
 and federal positions that are to be combined.  Records of the 
 actual number of employee hours charged to each state and 
 federal account must be maintained for each general fund 
 position. 

    Subd. 3.    Coordination required for housing related 
 grants.  The commissioner must coordinate with the 
 commissioner of the Minnesota housing finance agency to ensure 
 that housing related grant applications for the Small Cities 
 Community Development Block Grant Program under section 116J.401 
 are consistent with the agency's most recent housing 
 affordability plan and do not duplicate existing state housing 
 programs. 

    Subd. 4.    Preference for outdoor recreation grants.  
 In awarding grants under the outdoor recreation grant program, 
 the commissioner shall give special consideration to proposed 
 outdoor recreation projects for which particular need has been 
 demonstrated by the applicant based on, but not limited to, the 
 following factors: 

    (1) low to moderate income status of persons living 
 adjacent to or most likely to make use of the proposed facility; 

    (2) lack of adequate transportation or access to existing 
 outdoor recreation facilities by those most likely to use the 
 proposed facility; 

    (3) the need for outdoor recreation facilities designed to 
 accommodate handicapped persons and other special populations 
 that would be met by the proposed facility; 

    (4) the overall inadequacy or lack of outdoor recreation 
 facilities within the area to be served by the proposed project; 

    (5) the need for acquisition of land in fully developed 
 areas with limited opportunities for recreation facility 
 development; and 

    (6) a high population of school-aged children in the area 
 to be served by the proposed outdoor recreation facility and a 
 lack of appropriate recreation facilities for children. 

    The commissioner shall incorporate into the annual project 
 ranking process a procedure for awarding additional ranking 
 points to those project applications which demonstrate a special 
 need based on the above or similar factors. 

    HIST: 1987 c 312 art 1 s 26 subd 2; 1987 c 386 art 4 s 1; 1989 
 c 335 art 4 s 106; 1990 c 429 s 1; 1991 c 157 s 1; 1993 c 163 
 art 1 s 21,22; 1996 c 369 s 9 

  116J.981 Repealed, 1996 c 310 s 1; 1996 c 369 s 13 

     116J.982 Community development corporations. 

    Subdivision 1.    Definitions.  For the purposes of this 
 section, the terms in this subdivision have the meanings given 
 them: 

    (a) "Commissioner" means the commissioner of trade and 
 economic development. 

    (b) "Economic development region" means an area so 
 designated in the governor's executive order number 83-15, dated 
 March 15, 1983. 

    (c) "Federal poverty level" means the income level 
 published annually by the United States Department of Health and 
 Human Services under authority of the Omnibus Budget 
 Reconciliation Act of 1981, Public Law Number 97-35, title VI, 
 section 673(2). 

    (d) "Low income" means an annual income below the federal 
 poverty level.  

    (e) A "low-income area" means an area in which (1) ten 
 percent of the population have low incomes, or (2) there is one 
 or more recognized subareas such as a census tract, city, 
 township, or county in which 15 percent of the population have 
 low incomes. 

    Subd. 2.    Administration.  The commissioner shall 
 administer this section except for subdivision 6, which shall be 
 administered by the commissioner of housing finance.  The 
 commissioners of trade and economic development and housing 
 finance may, separately or jointly, adopt rules necessary to 
 implement this section. 

    Subd. 3.    Certification; corporations eligible.  (a) 
 The commissioner shall certify a community development 
 corporation under this section if the corporation is a nonprofit 
 corporation incorporated under chapter 317A and meets the other 
 criteria in this subdivision. 

    (b) The corporation, in its articles of incorporation or 
 bylaws, must designate a low-income area as the specific 
 geographic community within which it will operate.  Within 
 cities of the first class, a designated community must be an 
 identifiable neighborhood or a combination of neighborhoods but 
 may not be the entire city.  Outside cities of the first class, 
 a designated community may be an identifiable neighborhood or 
 neighborhoods, or home rule charter or statutory cities, 
 townships, unincorporated areas, or combinations of those 
 entities, but may not be an entire economic development region 
 nor cross existing economic development region boundaries except 
 as provided in this section.  

    (c) The corporation's major purpose, in its articles of 
 incorporation or bylaws, must be economic development, 
 redevelopment, or housing in its designated community. 

    (d) The corporation must be tax exempt under section 501, 
 paragraph (c), clause (3), of the Internal Revenue Code of 1986, 
 as amended. 

    (e) The membership and board of directors of the 
 corporation must be representative of the designated community.  
 At least 20 percent of the directors shall have low incomes or 
 shall reside in low-income areas described in subdivision 1, 
 paragraph (e), clause (1), or the low-income subarea described 
 in subdivision 1, paragraph (e), clause (2).  At least 60 
 percent of the directors must be residents of, or be employed 
 in, the designated community.  Other directors shall be 
 business, financial, or civic leaders or 
 representatives-at-large of the designated community.  At least 
 40 percent of the directors must reside in the designated 
 community.  Notwithstanding the requirements of this paragraph, 
 a corporation which meets board structure requirements for a 
 community housing development corporation under Code of Federal 
 Regulations, title 24, part 92.2, is deemed to meet the board 
 membership requirements of this subdivision. 

    (f) The corporation shall not discriminate against any 
 persons on the basis of a status protected under chapter 363.  

    (g) The corporation shall demonstrate that it has or can 
 obtain the technical skills to analyze projects, that it is 
 familiar with available public and private funding sources and 
 economic development, redevelopment, and housing programs, and 
 that it is capable of packaging economic development, 
 redevelopment, and housing projects. 

    (h) The corporation must have completed two or more 
 economic development, redevelopment, or housing projects within 
 its designated community during the last three years. 

    Subd. 4.    Approval for certification.  The 
 commissioner shall certify as a community development 
 corporation any organization which meets the criteria in 
 subdivision 3.  The certification is for two years from the date 
 of certification and is renewable.  The commissioner shall 
 certify as a community development corporation for a 
 nonrenewable period of three years from the date of 
 certification an organization which meets all the criteria in 
 subdivision 3, except for paragraphs (d) and (h), but which 
 plans to meet those requirements by the end of the three years. 

    As part of the certification process, the commissioner 
 shall resolve disputes concerning boundaries of the designated 
 community of a community development corporation. 

    Subd. 5.    Grants; economic development contracts.  The 
 commissioner may make a grant to a community development 
 corporation and enter into contracts with certified community 
 development corporations for: 

    (1) specific economic development projects within the 
 designated community, such as development of a proposal for a 
 venture grant, or for establishment of a business venture, 
 including assistance to an existing business venture, purchase 
 of partial or full ownership of a business venture, real estate 
 development, strategic development planning, infrastructure 
 development, or development of resources or facilities necessary 
 for the establishment of a business venture; 

    (2) dissemination of information about, or taking 
 applications for, programs operated by the commissioner; and 

    (3) developing the internal organizational capacity to 
 engage in economic development activities such as the 
 partnership activities listed in clause (1). 

    Subd. 6.    Housing contracts.  The commissioner of the 
 housing finance agency may enter into contracts with certified 
 community development corporations for purposes of housing 
 activities associated with economic development activity under 
 subdivision 5. 

    Subd. 6a. Repealed, 1993 c 163 art 1 s 35 

    Subd. 7.    Other programs.  A certified community 
 development corporation is eligible to participate in a program 
 available to nonprofit organizations which is operated by the 
 commissioners of trade and economic development or housing 
 finance if the certified development corporation meets the 
 requirements of the program. 

    Subd. 7a.    Real estate license exemption.  A certified 
 community development corporation is exempt from the licensure 
 requirements of section 82.20. 

    Subd. 8. Repealed, 1993 c 163 art 1 s 35 

    Subd. 9. Repealed, 1993 c 163 art 1 s 35 

    HIST: 1987 c 312 art 1 s 26 subd 2; 1987 c 386 art 4 s 3; 1988 
 c 580 s 2; 1989 c 304 a 137; 1993 c 369 s 49; 1995 c 224 s 57 

  116J.983 Repealed, 1993 c 163 art 1 s 35 

    116J.984 Subdivision 1.  Repealed, 1993 c 
 163 art 1 s 35 

    Subd. 2.  Repealed, 1993 c 163 art 1 s 35 

    Subd. 3.  Repealed, 1993 c 163 art 1 s 35 

    Subd. 4.  Repealed, 1993 c 163 art 1 s 35 

    Subd. 6.  Repealed, 1993 c 163 art 1 s 35 

    Subd. 7.  Repealed, 1993 c 163 art 1 s 35 

    Subd. 8.  Repealed, 1993 c 163 art 1 s 35 

    Subd. 9.  Repealed, 1993 c 163 art 1 s 35 

    Subd. 10.  Repealed, 1993 c 163 art 1 s 35 

    Subd. 11.  Repealed, 1993 c 163 art 1 s 35; 
 1993 c 337 s 20 

  116J.985 Repealed, 1993 c 177 s 15 

  116J.986 Repealed, 1996 c 310 s 1 

     116J.987 Definitions. 

    Subdivision 1.    Application.  The definitions in this 
 section apply to sections 116J.987 to 116J.990. 

    Subd. 2.    Board.  "Board" means the board of invention.

    Subd. 3.    Commercial invention.  "Commercial invention"
 means new and useful processes, machines, manufacturing 
 procedures, or any new and useful improvements or applications 
 of commercial inventions, regardless of whether or not the 
 invention is patentable. 

    Subd. 4.    Invention.  "Invention" means creative 
 activity resulting in new and potentially useful and applied 
 products or ideas of commercial and social merit.  Invention 
 includes commercial and social inventions. 

    Subd. 5.    Social invention.  "Social invention" means 
 new procedures, new uses for known procedures, and organizations 
 that change the way in which people relate to their environment 
 or to each other. 

    HIST: 1993 c 369 s 50 

     116J.988 Board of invention. 

    Subdivision 1.    Membership.  The board of invention 
 consists of 11 members appointed by the governor, subject to the 
 advice and consent of the senate.  One member must be appointed 
 from each of the congressional districts.  The remaining members 
 may be appointed at large. 

    Subd. 2.    Terms.  The membership terms, removal, and 
 filling of vacancies of board members are as provided in section 
 15.0575. 

    Subd. 3.    Chair; other officers.  The board shall 
 annually elect a chair and other officers as necessary from its 
 members. 

    Subd. 4.    Staff.  The board may employ an executive 
 director who is knowledgeable in invention and has demonstrated 
 proficiency in the administration of programs relating to 
 invention.  The executive director shall perform the duties that 
 the board may require in carrying out its responsibilities.  

    HIST: 1993 c 369 s 51 

     116J.989 Powers. 

    Subdivision 1.    Contracts.  The board may enter into 
 contracts and grant agreements necessary to carry out its 
 responsibilities. 

    Subd. 2.    Gifts; grants.  The board may apply for, 
 accept, and disburse gifts, grants, or other property from the 
 United States, the state, private foundations, or any other 
 source.  It may enter into an agreement required for the gifts 
 or grants and may hold, use, and dispose of its assets in 
 accordance with the terms of the gift, grant, or agreement.  
 Money received by the board under this subdivision must be 
 deposited in the state treasury.  The amount deposited is 
 appropriated to the board to carry out its duties. 

    HIST: 1993 c 369 s 52 

     116J.990 Duties. 

    Subdivision 1.    General duties.  The board shall 
 encourage the creation, performance, and appreciation of 
 invention in the state.  The board shall investigate and 
 evaluate new methods to enhance invention. 

    Subd. 2.    Grant program.  The board shall establish an 
 invention grant program to award grants to individuals, 
 nonprofits, or private organizations to encourage the 
 development of both commercial and social inventions. 

    Subd. 3.    Technical assistance.  The board shall 
 provide information services relating to invention to the 
 general public. 

    Subd. 4.    Coordination.  The board may review all 
 public and private programs relating to invention and innovation.

    Subd. 5.    Budget.  The board shall adopt an annual 
 budget and work program. 

    Subd. 6.    Report.  The board shall submit a report to 
 the legislature and the governor by January 31 of each year.  
 The report must include a review of invention activities in the 
 state, a review of the board's activities, a listing of grants 
 made under the invention grant program, an evaluation of 
 invention initiatives, and recommendations concerning state 
 support of invention activities. 

    Subd. 7. Repealed, 1997 c 200 art 1 s 74 

    HIST: 1993 c 369 s 53 

     116J.991 Public assistance to business; wage and job 
  requirements. 

    A business that receives state or local government 
 assistance for economic development or job growth purposes must 
 create a net increase in jobs in Minnesota within two years of 
 receiving the assistance. 

    The government agency providing the assistance must 
 establish wage level and job creation goals to be met by the 
 business receiving the assistance.  A business that fails to 
 meet the goals must repay the assistance to the government 
 agency. 

    Each government agency must report the wage and job goals 
 and the results for each project in achieving those goals to the 
 department of trade and economic development.  The department 
 shall compile and publish the results of the reports for the 
 previous calendar year by June 1 of each year.  The reports of 
 the agencies to the department and the compilation report of the 
 department shall be made available to the public. 

    For the purpose of this section, "assistance" means a grant 
 or loan in excess of $25,000 or tax increment financing. 

    HIST: 1995 c 224 s 58 

     116J.992 Taconite mining grants. 

    (a) The commissioner shall establish a program to make 
 grants to taconite mining companies to enable them to research 
 technologies that: 

    (1) reduce energy consumption; 

    (2) reduce environmental emissions; 

    (3) improve productivity; or 

    (4) improve pellet quality. 

    (b) To receive a grant a recipient must convey to the state 
 permanent ownership of both mineral reserves and corresponding 
 surface lands that: 

    (1) contain unmined taconite with a 23 percent minimum 
 magnetic iron content; 

    (2) have an open pit stripping ratio of less than 1.5 to 1; 

    (3) are unencumbered by current or planned surface 
 development; 

    (4) are substantially unencumbered by past mining activity; 

    (5) have marketable title for both surface and mineral 
 interests; and 

    (6) are in an area that could reasonably be expected to be 
 mined within 50 years. 

    (c) A grant may not exceed the value of the mineral 
 reserves and surface land as assessed by the commissioner of 
 natural resources.  When assessing value, the commissioner must, 
 at a minimum, take into account the future value of any royalty 
 stream, the state's cost of capital, the costs of removing any 
 encumbrances, and the probability that the reserves will be 
 mined in the future.  Any revenue generated by ownership or sale 
 of the property must be deposited in the general fund. 

    HIST: 1997 c 200 art 1 s 57