1.1.................... moves to amend H.F. No. 2329 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2008, section 469.310, subdivision 6, is amended to
1.4read:
1.5    Subd. 6. Job opportunity building zone or zone. "Job opportunity building zone"
1.6or "zone" means a zone designated by the commissioner under section 469.314, and
1.7includes an agricultural processing facility zone and a create automotive recovery zone.
1.8EFFECTIVE DATE.This section is effective the day following final enactment.

1.9    Sec. 2. Minnesota Statutes 2008, section 469.310, subdivision 11, is amended to read:
1.10    Subd. 11. Qualified business. (a) A person carrying on a trade or business at a place
1.11of business located within a job opportunity building zone is a qualified business for the
1.12purposes of sections 469.310 to 469.320 according to the criteria in paragraphs (b) to (f).
1.13(b) A person is a qualified business only on those parcels of land for which the
1.14person has entered into a business subsidy agreement, as required under section 469.313,
1.15with the appropriate local government unit in which the parcels are located.
1.16(c) Prior to execution of the business subsidy agreement, the local government
1.17unit must consider the following factors:
1.18(1) how wages compare to the regional industry average;
1.19(2) the number of jobs that will be provided relative to overall employment in the
1.20community;
1.21(3) the economic outlook for the industry the business will engage in;
1.22(4) sales that will be generated from outside the state of Minnesota;
1.23(5) how the business will build on existing regional strengths or diversify the
1.24regional economy;
1.25(6) how the business will increase capital investment in the zone; and
2.1(7) any other criteria the commissioner deems necessary.
2.2(d) A person that relocates a trade or business from outside a job opportunity
2.3building zone into a zone is not a qualified business unless the business meets all of the
2.4requirements of paragraphs (b) and (c) and:
2.5(1) increases full-time employment in the first full year of operation within the job
2.6opportunity building zone by a minimum of five jobs or 20 percent, whichever is greater,
2.7measured relative to the operations that were relocated and maintains the required level of
2.8employment for each year the zone designation applies; and
2.9(2) enters a binding written agreement with the commissioner that:
2.10(i) pledges the business will meet the requirements of clause (1);
2.11(ii) provides for repayment of all tax benefits enumerated under section 469.315 to
2.12the business under the procedures in section 469.319, if the requirements of clause (1) are
2.13not met for the taxable year or for taxes payable during the year in which the requirements
2.14were not met; and
2.15(iii) contains any other terms the commissioner determines appropriate.
2.16(e) The commissioner may waive the requirements under paragraph (d), clause (1),
2.17if the commissioner determines that the qualified business will substantially achieve
2.18the factors under this subdivision.
2.19(f) A business is not a qualified business if, at its location or locations in the zone,
2.20the business is primarily engaged in making retail sales to purchasers who are physically
2.21present at the business's zone location.
2.22(g) A qualifying business must pay each employee compensation, including benefits
2.23not mandated by law, that on an annualized basis is equal to at least 110 percent of the
2.24federal poverty level for a family of four.
2.25(h) A public utility, as defined in section 336B.01, is not a qualified business.
2.26(i) A business operating in a create automotive recovery zone is a qualified business
2.27only if it engages in the assembly of motor vehicles at the zone location.
2.28EFFECTIVE DATE.This section is effective the day following final enactment.

2.29    Sec. 3. Minnesota Statutes 2008, section 469.310, is amended by adding a subdivision
2.30to read:
2.31    Subd. 14. Motor vehicle assembly facility. "Motor vehicle assembly facility"
2.32means a manufacturing facility with at least 500 employees that is used to assemble motor
2.33vehicles and is located in a city of the first class.
2.34EFFECTIVE DATE.This section is effective the day following final enactment.

3.1    Sec. 4. Minnesota Statutes 2008, section 469.310, is amended by adding a subdivision
3.2to read:
3.3    Subd. 15. Create automotive recovery zone. "Create automotive recovery zone"
3.4means a zone designated by the commissioner under section 469.314 that contains a
3.5motor vehicle assembly facility.
3.6EFFECTIVE DATE.This section is effective the day following final enactment.

3.7    Sec. 5. Minnesota Statutes 2008, section 469.312, subdivision 1, is amended to read:
3.8    Subdivision 1. Maximum size. A job opportunity building zone may not exceed
3.95,000 acres. For a zone designated as an agricultural processing facility zone, the zone
3.10also may not exceed the size of a site necessary for the agricultural processing facility,
3.11including ancillary operations and space for expansion in the reasonably foreseeable
3.12future. For a zone designated as a create automotive recovery zone, the zone also may
3.13not exceed the size of the site necessary for the assembly of motor vehicles, including
3.14ancillary operations and space for expansion in the reasonably foreseeable future.
3.15EFFECTIVE DATE.This section is effective the day following final enactment.

3.16    Sec. 6. Minnesota Statutes 2008, section 469.312, subdivision 3, is amended to read:
3.17    Subd. 3. Outside metropolitan area. Except for a create automotive recovery zone,
3.18the area of a job opportunity building zone must be located outside of the metropolitan
3.19area, as defined in section 473.121, subdivision 2.
3.20EFFECTIVE DATE.This section is effective the day following final enactment.

3.21    Sec. 7. Minnesota Statutes 2009 Supplement, section 469.312, subdivision 5, is
3.22amended to read:
3.23    Subd. 5. Duration limit. (a) The maximum duration of a zone is 12 years. The
3.24applicant may request a shorter duration. The commissioner may specify a shorter
3.25duration, regardless of the requested duration.
3.26(b) The duration limit under this subdivision and the duration of the zone for
3.27purposes of allowance of tax incentives described in section 469.315 is extended by three
3.28calendar years for each parcel of property that meets the following requirements:
3.29(1) the qualified business operates an ethanol plant, as defined in section 41A.09, on
3.30the site that includes the parcel; and
3.31(2) the business subsidy agreement was executed after April 30, 2006.
4.1(c) The duration limit under this subdivision and the duration of the zone for
4.2purposes of allowance of tax incentives described in section 469.315 is extended by five
4.3calendar years for each parcel of property that meets the following requirements:
4.4(1) the parcel is located in a county with an unemployment rate that on the date that
4.5the business subsidy agreement is executed (i) equals or exceeds ten percent or (ii) is ten
4.6percent higher than the statewide average;
4.7(2) the operations of the qualified business on the site include:
4.8(i) its headquarters;
4.9(ii) facilities for research and development; and
4.10(iii) the manufacturing of products, used by the building, transport, consumer
4.11products, and industrial products sectors, that reduce the use of or increase the efficiency
4.12of the use of energy resources and that are manufactured using innovative and high
4.13technology processes; and
4.14(3) the business subsidy agreement is executed after July 1, 2009, and before July 1,
4.152011.
4.16(d) The duration of a create automotive recovery zone is 12 years from the date of
4.17the designation of a zone by the commissioner under section 469.314, subdivision 4,
4.18paragraph (g).
4.19EFFECTIVE DATE.This section is effective the day following final enactment.

4.20    Sec. 8. Minnesota Statutes 2008, section 469.314, subdivision 1, is amended to read:
4.21    Subdivision 1. Commissioner to designate. (a) The commissioner, in consultation
4.22with the commissioner of revenue, shall designate not more than ten job opportunity
4.23building zones and not more than one create automotive recovery zone. In making the
4.24designations, the commissioner shall consider need and likelihood of success to yield the
4.25most economic development and revitalization of economically distressed rural areas
4.26of Minnesota.
4.27(b) In addition to the designations under paragraph (a), the commissioner may, in
4.28consultation with the commissioners of agriculture and revenue, designate up to five
4.29agricultural processing facility zones.
4.30(c) The commissioner may, upon designation of a zone, modify the development
4.31plan, including the boundaries of the zone or subzones, if in the commissioner's opinion
4.32a modified plan would better meet the objectives of the job opportunity building zone
4.33program. The commissioner shall notify the applicant of the modification and provide a
4.34statement of the reasons for the modifications.
5.1EFFECTIVE DATE.This section is effective the day following final enactment.

5.2    Sec. 9. Minnesota Statutes 2008, section 469.314, subdivision 4, is amended to read:
5.3    Subd. 4. Designation schedule. (a) The schedule in paragraphs (b) to (f) applies to
5.4the designation of job opportunity building zones. Paragraph (g) applies to the designation
5.5of a create automotive recovery zone.
5.6(b) The commissioner shall publish the form for applications and any procedural,
5.7form, or content requirements for applications by no later than August 1, 2003. The
5.8commissioner may publish these requirements on the Internet, in the State Register, or by
5.9any other means the commissioner determines appropriate to disseminate the information
5.10to potential applicants for designation.
5.11(c) Applications must be submitted by October 15, 2003.
5.12(d) The commissioner shall designate the zones by no later than December 31, 2003.
5.13(e) The designation of the zones takes effect January 1, 2004.
5.14(f) The commissioner may reserve one or more of the ten authorized zones for a
5.15second round of designations in calendar year 2004. If the commissioner chooses to
5.16reserve designations for this purpose, the commissioner shall establish the schedule for the
5.17second round of designations, notwithstanding the dates in paragraphs (c), (d), and (e).
5.18The commissioner shall allow a period of at least 90 days for submission of applications
5.19after notification of the second round. A zone designated in the second round takes effect
5.20on January 1, 2005.
5.21(g) The commissioner may accept applications for a create automotive recovery zone
5.22at any time before January 1, 2016. The commissioner may designate a create automotive
5.23recovery zone at any time after December 31, 2011, but before January 1, 2016.
5.24EFFECTIVE DATE.This section is effective the day following final enactment.

5.25    Sec. 10. Minnesota Statutes 2008, section 469.315, is amended to read:
5.26469.315 TAX INCENTIVES AVAILABLE IN ZONES.
5.27Qualified businesses that operate in a job opportunity building zone, individuals who
5.28invest in a qualified business that operates in a job opportunity building zone, and property
5.29located in a job opportunity building zone qualify for:
5.30(1) exemption from individual income taxes as provided under section 469.316;
5.31(2) exemption from corporate franchise taxes as provided under section 469.317;
5.32(3) exemption from the state sales and use tax and any local sales and use taxes on
5.33qualifying purchases as provided in section 297A.68, subdivision 37;
6.1(4) exemption from the state sales tax on motor vehicles and any local sales tax on
6.2motor vehicles as provided under section 297B.03;
6.3(5) exemption from the property tax as provided in section 272.02, subdivision 64;
6.4(6) exemption from the wind energy production tax under section 272.029,
6.5subdivision 7 ; and
6.6(7) the jobs credit allowed under section 469.318 , except that a qualified business
6.7located in a create automotive recovery zone is not eligible for the credit under section
6.8469.318 but is eligible for the credit under section 469.3181.
6.9EFFECTIVE DATE.This section is effective for taxable years beginning after
6.10December 31, 2011.

6.11    Sec. 11. [469.3181] CREATE AUTOMOTIVE RECOVERY JOBS CREDIT.
6.12    Subdivision 1. Credit allowed. (a) A qualified business located in a create
6.13automotive recovery zone is allowed a credit against the tax imposed under chapter 290
6.14equal to $2,500 times the number of full-time equivalent employees receiving wages from
6.15the qualified business for working at the facility during the taxable year. The qualified
6.16business is allowed an additional credit equal to $1,000 times the number of full-time
6.17equivalent employees receiving wages from the qualified business for working at the
6.18facility during the taxable year in excess of 750 employees.
6.19(b) For purposes of this section, "employee" and "wages" have the meanings given
6.20them in section 290.92, subdivisions 1 and 3.
6.21(c) For purposes of this section, "full-time equivalent employees" means the
6.22equivalent of annualized expected hours of work equal to 2,080 hours.
6.23    Subd. 2. Refundable. If the amount of the credit exceeds the liability for tax under
6.24chapter 290, the commissioner of revenue shall refund the excess to the qualified business.
6.25    Subd. 3. Appropriation. An amount sufficient to pay the refunds authorized by this
6.26section is appropriated to the commissioner of revenue from the general fund.
6.27EFFECTIVE DATE.This section is effective for taxable years beginning after
6.28December 31, 2011."
6.29Delete the title and insert:
6.31relating to economic development; establishing a create automotive recovery
6.32zone program; providing tax benefits for a motor vehicle assembly facility
6.33operating in a create automotive recovery zone; appropriating money;amending
6.34Minnesota Statutes 2008, sections 469.310, subdivisions 6, 11, by adding
6.35subdivisions; 469.312, subdivisions 1, 3; 469.314, subdivisions 1, 4; 469.315;
6.36Minnesota Statutes 2009 Supplement, section 469.312, subdivision 5; proposing
6.37coding for new law in Minnesota Statutes, chapter 469."