1.1.................... moves to amend H. F. No. 3149, the delete everything amendment
1.2(A08-1657), as follows:
1.3Page 29, after line 20, insert:


1.6    Section 1. Minnesota Statutes 2006, section 116J.03, is amended by adding a
1.7subdivision to read:
1.8    Subd. 4. Targeted rural opportunity community. "Targeted rural opportunity
1.9community" means a city or township in a county that either lost population from 1980
1.10to 2000 according to the decennial census or had an unemployment rate higher than the
1.11Minnesota state annual average in 2006 according to local area unemployment statistics
1.12published by the Department of Employment and Economic Development.
1.13EFFECTIVE DATE.This section is effective the day following final enactment.

1.14    Sec. 2. Minnesota Statutes 2006, section 469.310, subdivision 11, is amended to read:
1.15    Subd. 11. Qualified business. (a) A person carrying on a trade or business at a
1.16place of business located within a job opportunity building zone is a qualified business
1.17for the purposes of sections 469.310 to 469.320 according to the criteria in paragraphs
1.18(b) to (f) (h).
1.19    (b) A person is a qualified business only on those parcels of land for which the person
1.20has entered into a business subsidy agreement, as required under section sections 469.3102
1.21and 469.313, with the appropriate local government unit in which the parcels are located.
1.22    (c) Prior to execution of the business subsidy agreement, the local government
1.23unit must consider the following factors:
1.24    (1) how wages compare to the regional industry average;
2.1    (2) the number of jobs that will be provided relative to overall employment in the
2.2community;
2.3    (3) the economic outlook for the industry the business will engage in;
2.4    (4) sales that will be generated from outside the state of Minnesota;
2.5    (5) how the business will build on existing regional strengths or diversify the
2.6regional economy;
2.7    (6) how the business will increase capital investment in the zone; and
2.8    (7) any other criteria the commissioner deems necessary.
2.9    (c) A business must achieve the goals listed in the business subsidy agreement
2.10within two years of the benefit date, or the business must repay the benefits listed in
2.11section 469.315. The commissioner of employment and economic development may
2.12extend the period for meeting any goals listed in a business subsidy agreement for up to
2.13one year if the commissioner has reason to believe the business will achieve the goals
2.14within the additional year.
2.15    (d) A person that begins or expands a trade or business is not a qualified business
2.16unless the business meets the requirements of paragraph (b) and increases full-time
2.17employment by a minimum of ten jobs within the first two years from the date the business
2.18subsidy agreement is signed, unless the business is located in a targeted rural opportunity
2.19community, in which case the business must increase full-time employment by a minimum
2.20of five jobs from the date the business subsidy agreement is signed.
2.21    (d) (e) A person that relocates a trade or business from outside a job opportunity
2.22building zone into a zone is not a qualified business unless the business meets all of the
2.23requirements of paragraphs paragraph (b) and (c) and:
2.24    (1) increases full-time employment in the first full year of operation within the job
2.25opportunity building zone within the first two years from the date the business subsidy
2.26agreement is signed by a minimum of five jobs or 20 percent, whichever is greater,
2.27measured relative to the operations that were relocated and maintains the required level of
2.28employment for each year the zone designation applies; and
2.29    (2) enters a binding written agreement with the commissioner business subsidy
2.30agreement that:
2.31    (i) pledges the business will meet the requirements of clause (1);
2.32    (ii) provides for repayment of all tax benefits enumerated under section 469.315 to
2.33the business under the procedures in section 469.319, if the requirements of clause (1) are
2.34not met for the taxable year or for taxes payable during the year in which the requirements
2.35were not met; and
2.36    (iii) contains any other terms the commissioner determines appropriate.
3.1    (e) (f) The commissioner may waive the requirements under paragraph (d), clause
3.2(1) or (e), if the commissioner determines that the qualified business will substantially
3.3achieve the factors under this subdivision waiver is necessary to retain an existing business
3.4from moving out of Minnesota.
3.5    (f) (g) A business is not a qualified business if, at its location or locations in the
3.6zone, the business is primarily engaged in making retail sales to purchasers who are
3.7physically present at the business's zone location.
3.8    (g) (h) A qualifying business must pay each employee compensation, including
3.9benefits not mandated by law, that on an annualized basis is equal to at least 110 percent of
3.10the federal poverty level for a family of four.
3.11    (h) (i) A public utility, as defined in section 336B.01, is not a qualified business.
3.12EFFECTIVE DATE.This section is effective the day following final enactment.

3.13    Sec. 3. [469.3101] STATE REVIEW CRITERIA.
3.14    (a) The commissioner may only approve a business subsidy agreement if the
3.15commissioner determines that the expected net benefits of the proposed project to the state
3.16and local economy exceed the expected tax benefits received by the business. In making
3.17this determination, the commissioner must consider the following factors:
3.18    (1) local or Minnesota competitors of the business that will be significantly and
3.19adversely affected by the business subsidy agreement;
3.20    (2) other financial assistance that is available;
3.21    (3) the business would not have expanded or began operations in Minnesota without
3.22the expected tax benefits;
3.23    (4) the business would not have relocated from outside the state to Minnesota
3.24without the expected tax benefits;
3.25    (5) the business would have moved to another state or expanded in another state
3.26rather than remaining or expanding in Minnesota without the expected tax benefits; and
3.27    (6) any other factors that the commissioner determines are appropriate.
3.28    (b) The local government unit and the qualified business must provide the
3.29commissioner with the information that the commissioner needs to review a business
3.30subsidy agreement under paragraph (a). The information must be in the form and manner
3.31required by the commissioner.
3.32EFFECTIVE DATE.This section is effective the day following final enactment.

3.33    Sec. 4. [469.3102] BUSINESS SUBSIDY AGREEMENTS; REPORTS.
4.1    Subdivision 1. JOBZ business subsidy agreement. A business subsidy agreement
4.2required under section 469.310, subdivision 11, paragraph (b), must comply with this
4.3section.
4.4    Subd. 2. Business subsidy agreement requirements. A business subsidy
4.5agreement is not effective until the commissioner has approved the agreement in writing.
4.6The commissioner may not approve an agreement that violates sections 116J.993 to
4.7116J.995 or 469.310 to 469.3201. The commissioner may not approve an agreement
4.8unless:
4.9    (1) the qualified business is required to create or retain a minimum number of jobs;
4.10    (2) the agreement defines "jobs" for purposes of determining compliance with wage
4.11and job goals as all jobs and only those jobs that constitute "employment" for purposes of
4.12state unemployment insurance;
4.13    (3) the qualified business is required to report all jobs created or retained because of
4.14JOBZ as a separate business location for purposes of section 268.044; and
4.15    (4) the qualified business agrees to provide the appropriate data practices release so
4.16that the commissioner of revenue and the commissioner of employment and economic
4.17development can monitor compliance with the terms of the agreement.
4.18    Subd. 3. Standard agreement. The commissioner must develop and require the
4.19use of a standard business subsidy agreement that imposes definitive and enforceable
4.20obligations on the qualified business.
4.21    Subd. 4. Business subsidy reports. (a) A local government unit must annually
4.22report to the commissioner on the progress of the qualified business in meeting the goals
4.23listed in the business subsidy agreement. The report must be filed with the commissioner
4.24within 30 days of the end of the immediately preceding yearly period for which job
4.25creation, job retention, or investment obligations are imposed on a business and must be
4.26in a form prescribed by the commissioner. The commissioner must schedule department
4.27compliance reviews and reporting dates under business subsidy agreements so that reports
4.28are due throughout the year and compliance reviews are done on a continuous basis as
4.29reports are filed.
4.30    (b) The commissioner must hold a qualified business out of compliance or remove
4.31the business from the program if the qualified business fails to provide the information
4.32requested by the local government unit for the report under paragraph (a) within 30 days
4.33of written notice that the information is overdue. This report is in lieu of the reports
4.34required under section 116J.994, subdivisions 7 and 8.
4.35    Subd. 5. Public notice and hearing. A local government unit must provide public
4.36notice and hearing as required under section 116J.994, subdivision 5, before approving a
5.1business subsidy agreement. Public notice of a proposed business subsidy agreement must
5.2be published in a local newspaper of general circulation. The public hearing must be held
5.3in a location specified by the local government unit. Notwithstanding the requirements of
5.4section 116J.994, subdivision 5, the commissioner is not required to provide an additional
5.5public notice and hearing when entering into a business subsidy agreement with a local
5.6government unit and a qualified business.
5.7EFFECTIVE DATE.This section is effective the day following final enactment.

5.8    Sec. 5. Minnesota Statutes 2006, section 469.312, subdivision 5, is amended to read:
5.9    Subd. 5. Duration limit. (a) The maximum duration of a zone is 12 years. The
5.10applicant may request a shorter duration. The commissioner may specify a shorter
5.11duration, regardless of the requested duration.
5.12    (b) The duration limit under this subdivision and the duration of the zone for
5.13purposes of allowance of tax incentives described in section 469.315 is extended by three
5.14calendar years for each parcel of property that meets the following requirements:
5.15    (1) the qualified business operates an ethanol plant, as defined in section 41A.09, on
5.16the site that includes the parcel; and
5.17    (2) the business subsidy agreement was executed after April 30, 2006.
5.18    (c)(1) Notwithstanding the 12-year zone limitation, all qualified businesses that sign
5.19a business subsidy agreement, as required under sections 469.310, subdivision 11, and
5.20469.313, before December 31, 2015, are entitled to claim the tax benefits for which they
5.21qualify under section 469.315 for the year in which the business subsidy agreement is
5.22signed and ten additional years.
5.23    (2) Notwithstanding the 12-year zone limitation, all qualified businesses that sign
5.24a business subsidy agreement, as required under sections 469.310, subdivision 11, and
5.25469.313, before December 31, 2015, and are located in a targeted rural opportunity
5.26community, as defined under section 116J.03, subdivision 4, are entitled to claim the tax
5.27benefits for which they qualify under section 469.315 for the year in which the business
5.28subsidy agreement is signed and 12 additional years.
5.29    (3) This paragraph does not apply to:
5.30    (i) any acreage designated as a job opportunity building zone for which any person
5.31has fully executed a business subsidy agreement before this paragraph became effective; or
5.32    (ii) any trade or business that relocated as defined in section 469.310, subdivision
5.3312, and received benefits under section 469.315 prior to the relocation.
5.34EFFECTIVE DATE.This section is effective the day following final enactment."
5.35Page 37, delete section 9
6.1Renumber the remaining articles in sequence