1.1.................... moves to amend H.F. No. 1298 as follows:
1.2Page 1, after line 11, insert:

1.3    "Section 1. [16A.647] TAX CREDIT AND INTEREST SUBSIDY BONDS.
1.4    Subdivision 1. Authority to issue. When authorized by law to issue state general
1.5obligation bonds, the commissioner may issue all or part of the bonds as tax credit bonds
1.6or as interest subsidy bonds or a combination of the two. The provisions of section
1.716A.695 do not apply to bonds issued as tax credit bonds or interest subsidy bonds.
1.8    Subd. 2. Definitions. (a) For purposes of this section, the following terms have
1.9the meanings given them.
1.10(b) "Tax credit bonds" means bonds, the interest on which is includable in the
1.11income of the owner of the bonds for federal income tax purposes, but for which the
1.12owner is entitled to a federal tax credit.
1.13(c) "Interest subsidy bonds" means bonds, the interest on which is includable in the
1.14income of the owner of the bonds for federal income tax purposes, but for which the
1.15issuer is entitled to federal interest subsidy payments based on a percentage of the interest
1.16payable on the interest subsidy bonds.
1.17    Subd. 3. Method of sale. Notwithstanding the provisions of section 16A.641,
1.18subdivision 4, the commissioner may sell any series of tax credit bonds or interest
1.19subsidy bonds at negotiated sale upon the terms and conditions and the restrictions the
1.20commissioner prescribes, but the commissioner may contract for investment banking
1.21and banking services only after receiving competitive proposals for the services. The
1.22commissioner may enter into all contracts deemed necessary or desirable to accomplish
1.23the sale in a cost-effective manner.
1.24    Subd. 4. Sinking fund. The commissioner's order authorizing the issuance of
1.25interest subsidy bonds must establish a separate sinking fund account for the interest
1.26subsidy bonds in the state bond fund. There is annually appropriated, as received, to each
2.1interest subsidy bond account, in addition to amounts appropriated under section 16A.641,
2.2the interest subsidy payments received from the federal government with respect to that
2.3issue of interest subsidy bonds in that year.
2.4    Subd. 5. Sale. Tax credit bonds and interest subsidy bonds must be sold at a price
2.5not less than 98 percent of their stated principal amount. No state trunk highway bond
2.6may be sold for a price of less than par and accrued interest.

2.7    Sec. 2. Minnesota Statutes 2008, section 126C.55, subdivision 4, is amended to read:
2.8    Subd. 4. Pledge of district's full faith and credit. If, at the request of a school
2.9district or intermediate school district, the state has paid part or all of the principal or
2.10interest due on a district's debt obligation on a specific date, the pledge of the full faith and
2.11credit and unlimited taxing powers of the school district or the member districts of the
2.12intermediate district to repay the principal and interest due on those debt obligations shall
2.13also, without an election or the requirement of a further authorization, become a pledge of
2.14the full faith and credit and unlimited taxing powers of the school district or the member
2.15districts of the intermediate district to repay to the state the amount paid, with interest.
2.16Amounts paid by the state must be repaid in the order in which the state payments were
2.17made. Whenever the state pays under this section interest on bonds for which the issuer is
2.18entitled to federal interest subsidy payments, the state is subrogated to the issuer's rights to
2.19any federal interest subsidy payments relating to the interest paid by the state, unless and
2.20until the state has been reimbursed by the issuer in full."
2.21Page 11, after line 11, insert:

2.22    "Sec. 18. Minnesota Statutes 2008, section 446A.086, is amended by adding a
2.23subdivision to read:
2.24    Subd. 12. Federal interest subsidy payments. Whenever the state pays under
2.25this section interest on bonds for which the issuer is entitled to federal interest subsidy
2.26payments, the state is subrogated to the issuer's rights to any federal interest subsidy
2.27payments relating to the interest paid by the state, unless and until the state has been
2.28reimbursed by the issuer in full."
2.29Page 14, after line 16, insert:

2.30    "Sec. 24. Minnesota Statutes 2008, section 469.153, subdivision 2, is amended to read:
2.31    Subd. 2. Project. (a) "Project" means (1) any properties, real or personal, used
2.32or useful in connection with a revenue producing enterprise, or any combination of
2.33two or more such enterprises engaged or to be engaged in generating, transmitting, or
2.34distributing electricity, assembling, fabricating, manufacturing, mixing, processing,
2.35storing, warehousing, or distributing any products of agriculture, forestry, mining, or
3.1manufacture, or in research and development activity in this field, or in the manufacturing,
3.2creation, or production of intangible property, including any patent, copyright, formula,
3.3process, design, know how, format, or other similar item; (2) any properties, real or
3.4personal, used or useful in the abatement or control of noise, air, or water pollution, or in
3.5the disposal of solid wastes, in connection with a revenue producing enterprise, or any
3.6combination of two or more such enterprises engaged or to be engaged in any business
3.7or industry; (3) any properties, real or personal, used or useful in connection with the
3.8business of telephonic communications, conducted or to be conducted by a telephone
3.9company, including toll lines, poles, cables, switching, and other electronic equipment
3.10and administrative, data processing, garage, and research and development facilities;
3.11(4) any properties, real or personal, used or useful in connection with a district heating
3.12system, consisting of the use of one or more energy conversion facilities to produce hot
3.13water or steam for distribution to homes and businesses, including cogeneration facilities,
3.14distribution lines, service facilities, and retrofit facilities for modifying the user's heating
3.15or water system to use the heat energy converted from the steam or hot water.
3.16(b) "Project" also includes any properties, real or personal, used or useful in
3.17connection with a revenue producing enterprise, or any combination of two or more
3.18such enterprises engaged in any business.
3.19(c) "Project" also includes any properties, real or personal, used or useful for the
3.20promotion of tourism in the state. Properties may include hotels, motels, lodges, resorts,
3.21recreational facilities of the type that may be acquired under section 471.191, and related
3.22facilities.
3.23(d) "Project" also includes any properties, real or personal, used or useful in
3.24connection with a revenue producing enterprise, whether or not operated for profit,
3.25engaged in providing health care services, including hospitals, nursing homes, and related
3.26medical facilities.
3.27(e) "Project" does not include any property to be sold or to be affixed to or consumed
3.28in the production of property for sale, and does not include any housing facility to be
3.29rented or used as a permanent residence.
3.30(f) "Project" also means the activities of any revenue producing enterprise involving
3.31the construction, fabrication, sale, or leasing of equipment or products to be used in
3.32gathering, processing, generating, transmitting, or distributing solar, wind, geothermal,
3.33biomass, agricultural or forestry energy crops, or other alternative energy sources for
3.34use by any person or any residential, commercial, industrial, or governmental entity in
3.35heating, cooling, or otherwise providing energy for a facility owned or operated by that
3.36person or entity.
4.1(g) "Project" also includes any properties, real or personal, used or useful in
4.2connection with a county jail, county regional jail, community corrections facilities
4.3authorized by chapter 401, or other law enforcement facilities, the plans for which are
4.4approved by the commissioner of corrections; provided that the provisions of section
4.5469.155, subdivisions 7 and 13 , do not apply to those projects.
4.6(h) "Project" also includes any real properties used or useful in furtherance of the
4.7purpose and policy of section 469.141.
4.8(i) "Project" also includes related facilities as defined by section 471A.02,
4.9subdivision 11 .
4.10(j) "Project" also includes an undertaking to purchase the obligations of local
4.11governments located in whole or in part within the boundaries of the municipality that are
4.12issued or to be issued for public purposes.

4.13    Sec. 25. Minnesota Statutes 2008, section 474A.02, subdivision 2, is amended to read:
4.14    Subd. 2. Annual volume cap. "Annual volume cap" means the aggregate dollar
4.15amount of obligations constituting "private activity bonds" under federal tax law and
4.16bearing interest excluded from gross income for purposes of federal income taxation
4.17which, under the provisions of federal tax law, may be issued in one year by issuers.
4.18Employees of the department shall handle the volume cap allocations for obligations
4.19permitted under the federal American Recovery and Reinvestment Act of 2009, whether
4.20taxable or tax-exempt, in accordance with orders of the commissioner.

4.21    Sec. 26. Minnesota Statutes 2008, section 474A.02, subdivision 14, is amended to read:
4.22    Subd. 14. Manufacturing project. "Manufacturing project" means any facility
4.23which is used in the manufacturing or production of tangible personal property,
4.24including the processing resulting in a change in the condition of the property, or in the
4.25manufacturing, creation, or production of intangible property, including any patent,
4.26copyright, formula, process, design, know how, format, or other similar item."
4.27Renumber the sections in sequence and correct the internal references
4.28Amend the title accordingly