1.1.................... moves to amend H.F. No. 2695, the first engrossment, as follows:
1.2Page 1 , line 31, delete "is" and insert "are"
1.3Page 9, line 25, delete "of this section is nonpublic data" and insert "are nonpublic
1.4data or private data on individuals"
1.5Page 9, line 26, after "9" insert "or 12"
1.6Page 10, line 5, after "nonpublic" insert "or private"
1.7Page 14, line 11, delete "be provided" and insert "provide for end use of the electrical
1.8energy from an off-site facility"
1.9Page 14, line 12, delete everything before the period
1.10Page 15, line 25, strike "7,500" and insert "7,400"
1.11Page 19, line 10, after the comma insert "for refunding application fees under
1.12subdivision 3,"
1.13Page 20, after line 22, insert:

1.14    "Sec. 8. Minnesota Statutes 2008, section 297A.68, subdivision 37, is amended to read:
1.15    Subd. 37. Job opportunity building zones. (a) Purchases of tangible personal
1.16property or taxable services by a qualified business, as defined in section 469.310, are
1.17exempt if the property or services are primarily used or consumed in a job opportunity
1.18building zone designated under section 469.314. For purposes of this subdivision, an aerial
1.19camera package, including any camera, computer, and navigation device contained in the
1.20package, that is used in an aircraft that is operated under a Federal Aviation Administration
1.21Restricted Airworthiness Certificate according to Code of Federal Regulations, title 14,
1.22part 21, section 21.25(b)(3), relating to aerial surveying, and that is based, maintained, and
1.23dispatched from a job opportunity building zone, qualifies as primarily used or consumed
1.24in a job opportunity building zone if the imagery acquired from the aerial camera package
1.25is returned to the job opportunity building zone for processing. The exemption for an aerial
1.26camera package is limited as provided in this subdivision and the tax must be imposed and
1.27collected as if the rate under section 297A.62, subdivision 1, applied and then refunded in
2.1the manner provided in section 297A.75. The total amount of the aerial camera package
2.2exemption refunded for all taxpayers for all fiscal years is limited to $50,000 in taxes.
2.3    (b) Purchase and use of construction materials and supplies used or consumed in,
2.4and equipment incorporated into, the construction of improvements to real property in
2.5a job opportunity building zone are exempt if the improvements after completion of
2.6construction are to be used in the conduct of a qualified business, as defined in section
2.7469.310 . This exemption applies regardless of whether the purchases are made by the
2.8business or a contractor.
2.9    (c) The exemptions under this subdivision apply to a local sales and use tax
2.10regardless of whether the local sales tax is imposed on the sales taxable as defined under
2.11this chapter.
2.12    (d) This subdivision applies to sales, if the purchase was made and delivery received
2.13during the duration of the zone.
2.14    (e) Notwithstanding the restriction in paragraph (a), which requires items purchased
2.15to be primarily used or consumed in the zone, purchases by a qualified business that is
2.16an electrical cooperative located in Meeker County of equipment and materials used for
2.17the generation, transmission, and distribution of electrical energy are exempt under this
2.18subdivision, except that:
2.19    (1) the exemption for materials and equipment used or consumed outside the zone
2.20must not exceed $200,000 in taxes for all taxpayers for all fiscal years; and
2.21    (2) no sales and use tax exemption is allowed for equipment purchased for resale.
2.22For purposes of this paragraph, the tax must be imposed and collected as if the rate
2.23under section 297A.62, subdivision 1, applied and then refunded in the manner provided
2.24in section 297A.75.
2.25    (f) For the purchase and use of construction materials and supplies used or consumed
2.26in, and equipment incorporated into property located in a create automotive recovery zone,
2.27or for the purchase of tangible personal property or taxable services by a qualified business
2.28located in a create automotive recovery zone, the tax must be imposed and collected as if
2.29the applicable rate under section 297A.62 applied and then refunded as provided in section
2.30297A.75. The taxpayer must attach to the claim for refund information sufficient for the
2.31commissioner to determine that the improvements are being occupied by a business that
2.32has signed a business subsidy agreement. The commissioner shall not pay any refunds on
2.33taxes collected under this paragraph until after June 30, 2013.
2.34EFFECTIVE DATE.This section is effective for purchases made after December
2.3531, 2011.

3.1    Sec. 9. Minnesota Statutes 2009 Supplement, section 297A.75, subdivision 1, is
3.2amended to read:
3.3    Subdivision 1. Tax collected. The tax on the gross receipts from the sale of the
3.4following exempt items must be imposed and collected as if the sale were taxable and the
3.5rate under section 297A.62, subdivision 1, applied. The exempt items include:
3.6    (1) capital equipment exempt under section 297A.68, subdivision 5;
3.7    (2) building materials for an agricultural processing facility exempt under section
3.8297A.71, subdivision 13 ;
3.9    (3) building materials for mineral production facilities exempt under section
3.10297A.71, subdivision 14 ;
3.11    (4) building materials for correctional facilities under section 297A.71, subdivision
3.123 ;
3.13    (5) building materials used in a residence for disabled veterans exempt under section
3.14297A.71, subdivision 11 ;
3.15    (6) elevators and building materials exempt under section 297A.71, subdivision 12;
3.16    (7) building materials for the Long Lake Conservation Center exempt under section
3.17297A.71, subdivision 17 ;
3.18    (8) materials and supplies for qualified low-income housing under section 297A.71,
3.19subdivision 23 ;
3.20    (9) materials, supplies, and equipment for municipal electric utility facilities under
3.21section 297A.71, subdivision 35;
3.22    (10) equipment and materials used for the generation, transmission, and distribution
3.23of electrical energy and an aerial camera package exempt under section 297A.68,
3.24subdivision 37;
3.25    (11) tangible personal property and taxable services and construction materials,
3.26supplies, and equipment exempt under section 297A.68, subdivision 41;
3.27    (12) commuter rail vehicle and repair parts under section 297A.70, subdivision
3.283, clause (11);
3.29    (13) materials, supplies, and equipment for construction or improvement of projects
3.30and facilities under section 297A.71, subdivision 40; and
3.31    (14) materials, supplies, and equipment for construction or improvement of a meat
3.32processing facility exempt under section 297A.71, subdivision 41.; and
3.33    (15) tangible personal property and taxable services and construction materials,
3.34supplies, and equipment exempt under section 297A.68, subdivision 37, paragraph (f),
3.35that are used by a qualified business in a create automotive recovery zone.
4.1EFFECTIVE DATE.This section is effective for purchases made after December
4.231, 2011.

4.3    Sec. 10. Minnesota Statutes 2009 Supplement, section 297A.75, subdivision 2, is
4.4amended to read:
4.5    Subd. 2. Refund; eligible persons. Upon application on forms prescribed by the
4.6commissioner, a refund equal to the tax paid on the gross receipts of the exempt items
4.7must be paid to the applicant. Only the following persons may apply for the refund:
4.8    (1) for subdivision 1, clauses (1) to (3), the applicant must be the purchaser;
4.9    (2) for subdivision 1, clauses (4) and (7), the applicant must be the governmental
4.10subdivision;
4.11    (3) for subdivision 1, clause (5), the applicant must be the recipient of the benefits
4.12provided in United States Code, title 38, chapter 21;
4.13    (4) for subdivision 1, clause (6), the applicant must be the owner of the homestead
4.14property;
4.15    (5) for subdivision 1, clause (8), the owner of the qualified low-income housing
4.16project;
4.17    (6) for subdivision 1, clause (9), the applicant must be a municipal electric utility or
4.18a joint venture of municipal electric utilities;
4.19    (7) for subdivision 1, clauses (10), (11), and (14), and (15), the owner of the
4.20qualifying business; and
4.21    (8) for subdivision 1, clauses (12) and (13), the applicant must be the governmental
4.22entity that owns or contracts for the project or facility.
4.23EFFECTIVE DATE.This section is effective for purchases made after December
4.2431, 2011."
4.25Page 21, after line 3, insert:

4.26    "Sec. 9. Minnesota Statutes 2009 Supplement, section 298.227, is amended to read:
4.27298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
4.28    (a) An amount equal to that distributed pursuant to each taconite producer's taxable
4.29production and qualifying sales under section 298.28, subdivision 9a, shall be held by
4.30the Iron Range Resources and Rehabilitation Board in a separate taconite economic
4.31development fund for each taconite and direct reduced ore producer. Money from the
4.32fund for each producer shall be released by the commissioner after review by a joint
4.33committee consisting of an equal number of representatives of the salaried employees and
4.34the nonsalaried production and maintenance employees of that producer. The District 11
5.1director of the United States Steelworkers of America, on advice of each local employee
5.2president, shall select the employee members. In nonorganized operations, the employee
5.3committee shall be elected by the nonsalaried production and maintenance employees. The
5.4review must be completed no later than six months after the producer presents a proposal
5.5for expenditure of the funds to the committee. The funds held pursuant to this section may
5.6be released only for workforce development and associated public facility improvement,
5.7or for acquisition of plant and stationary mining equipment and facilities for the producer
5.8or for research and development in Minnesota on new mining, or taconite, iron, or steel
5.9production technology, but only if the producer provides a matching expenditure to be
5.10used for the same purpose of at least 50 percent of the distribution based on 14.7 cents
5.11per ton beginning with distributions in 2002. Effective for proposals for expenditures of
5.12money from the fund beginning May 26, 2007, the commissioner may not release the
5.13funds before the next scheduled meeting of the board. If a proposed expenditure is not
5.14approved by at least seven Iron Range Resources and Rehabilitation Board members, the
5.15funds must be deposited in the Taconite Environmental Protection Fund under sections
5.16298.222 to 298.225. If a producer uses money which has been released from the fund
5.17prior to May 26, 2007 to procure haulage trucks, mobile equipment, or mining shovels,
5.18and the producer removes the piece of equipment from the taconite tax relief area defined
5.19in section 273.134 within ten years from the date of receipt of the money from the fund,
5.20a portion of the money granted from the fund must be repaid to the taconite economic
5.21development fund. The portion of the money to be repaid is 100 percent of the grant if the
5.22equipment is removed from the taconite tax relief area within 12 months after receipt of
5.23the money from the fund, declining by ten percent for each of the subsequent nine years
5.24during which the equipment remains within the taconite tax relief area. If a taconite
5.25production facility is sold after operations at the facility had ceased, any money remaining
5.26in the fund for the former producer may be released to the purchaser of the facility on
5.27the terms otherwise applicable to the former producer under this section. If a producer
5.28fails to provide matching funds for a proposed expenditure within six months after the
5.29commissioner approves release of the funds, the funds are available for release to another
5.30producer in proportion to the distribution provided and under the conditions of this section.
5.31Any portion of the fund which is not released by the commissioner within one year of its
5.32deposit in the fund shall be divided between the taconite environmental protection fund
5.33created in section 298.223 and the Douglas J. Johnson economic protection trust fund
5.34created in section 298.292 for placement in their respective special accounts. Two-thirds
5.35of the unreleased funds shall be distributed to the taconite environmental protection fund
5.36and one-third to the Douglas J. Johnson economic protection trust fund.
6.1    (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of
6.2distributions and the review process, an amount equal to ten cents per taxable ton of
6.3production in 2007, for distribution in 2008 only, that would otherwise be distributed
6.4under paragraph (a), may be used for a loan or grant for the cost of providing for a
6.5biomass energy value added wood product facility located in the taconite tax relief area
6.6and in a county that contains a city of the first class. This amount must be deducted from
6.7the distribution under paragraph (a) for which a matching expenditure by the producer
6.8is not required. The granting of the loan or grant is subject to approval by at least seven
6.9Iron Range Resources and Rehabilitation Board members;. If the money is provided as
6.10a loan, interest must be payable on the loan at the rate prescribed in section 298.2213,
6.11subdivision 3. (ii) Repayments of the loan and interest, if any, must be deposited in the
6.12taconite environment protection fund under sections 298.222 to 298.225. If a loan or grant
6.13is not made under this paragraph by July 1, 2010 2012, the amount that had been made
6.14available for the loan under this paragraph must be transferred to the taconite environment
6.15protection fund under sections 298.222 to 298.225. (iii) Money distributed in 2008 to the
6.16fund established under this section that exceeds ten cents per ton is available to qualifying
6.17producers under paragraph (a) on a pro rata basis.
6.18(c) Repayment or transfer of money to the taconite environmental protection fund
6.19under paragraph (b), item (ii), must be allocated by the Iron Range Resources and
6.20Rehabilitation Board for public works projects in house legislative districts in the same
6.21proportion as taxable tonnage of production in 2007 in each house legislative district, for
6.22distribution in 2008, bears to total taxable tonnage of production in 2007, for distribution
6.23in 2008. Notwithstanding any other law to the contrary, expenditures under this paragraph
6.24do not require approval by the governor. For purposes of this paragraph, "house legislative
6.25districts" means the legislative districts in existence on May 15, 2009.
6.26EFFECTIVE DATE.This section is effective the day following final enactment.

6.27    Sec. 10. Minnesota Statutes 2009 Supplement, section 298.28, subdivision 4, is
6.28amended to read:
6.29    Subd. 4. School districts. (a) 23.15 cents per taxable ton, plus the increase provided
6.30in paragraph (d), less the amount that would have been computed under Minnesota
6.31Statutes 2008, section 126C.21, subdivision 4, for the current year for that district, must be
6.32allocated to qualifying school districts to be distributed, based upon the certification of the
6.33commissioner of revenue, under paragraphs (b), (c), and (f).
6.34    (b) (i) 3.43 cents per taxable ton must be distributed to the school districts in which
6.35the lands from which taconite was mined or quarried were located or within which the
7.1concentrate was produced. The distribution must be based on the apportionment formula
7.2prescribed in subdivision 2.
7.3    (ii) Four cents per taxable ton from each taconite facility must be distributed to
7.4each affected school district for deposit in a fund dedicated to building maintenance
7.5and repairs, as follows:
7.6    (1) proceeds from Keewatin Taconite or its successor are distributed to Independent
7.7School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor
7.8districts;
7.9    (2) proceeds from the Hibbing Taconite Company or its successor are distributed to
7.10Independent School Districts Nos. 695, Chisholm, and 701, Hibbing, or their successor
7.11districts;
7.12    (3) proceeds from the Mittal Steel Company and Minntac or their successors are
7.13distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl, 706, Virginia,
7.142711, Mesabi East, and 2154, Eveleth-Gilbert, or their successor districts;
7.15    (4) proceeds from the Northshore Mining Company or its successor are distributed
7.16to Independent School Districts Nos. 2142, St. Louis County, and 381, Lake Superior,
7.17or their successor districts; and
7.18    (5) proceeds from United Taconite or its successor are distributed to Independent
7.19School Districts Nos. 2142, St. Louis County, and 2154, Eveleth-Gilbert, or their
7.20successor districts.
7.21    Revenues that are required to be distributed to more than one district shall be
7.22apportioned according to the number of pupil units identified in section 126C.05,
7.23subdivision 1 , enrolled in the second previous year.
7.24    (c)(i) 15.72 cents per taxable ton, less any amount distributed under paragraph (e),
7.25shall be distributed to a group of school districts comprised of those school districts which
7.26qualify as a tax relief area under section 273.134, paragraph (b), or in which there is a
7.27qualifying municipality as defined by section 273.134, paragraph (a), in direct proportion
7.28to school district indexes as follows: for each school district, its pupil units determined
7.29under section 126C.05 for the prior school year shall be multiplied by the ratio of the
7.30average adjusted net tax capacity per pupil unit for school districts receiving aid under
7.31this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year
7.32ending prior to distribution to the adjusted net tax capacity per pupil unit of the district.
7.33Each district shall receive that portion of the distribution which its index bears to the sum
7.34of the indices for all school districts that receive the distributions.
7.35    (ii) Notwithstanding clause (i), each school district that receives a distribution
7.36under sections 298.018; 298.23 to 298.28, exclusive of any amount received under this
8.1clause; 298.34 to 298.39; 298.391 to 298.396; 298.405; or any law imposing a tax on
8.2severed mineral values after reduction for any portion distributed to cities and towns
8.3under section 126C.48, subdivision 8, paragraph (5), that is less than the amount of its
8.4levy reduction under section 126C.48, subdivision 8, for the second year prior to the
8.5year of the distribution shall receive a distribution equal to the difference; the amount
8.6necessary to make this payment shall be derived from proportionate reductions in the
8.7initial distribution to other school districts under clause (i). If there are insufficient tax
8.8proceeds to make the distribution provided under this paragraph in any year, money must
8.9be transferred from the taconite property tax relief account in subdivision 6, to the extent
8.10of the shortfall in the distribution.
8.11    (d) Any school district described in paragraph (c) where a levy increase pursuant to
8.12section 126C.17, subdivision 9, was authorized by referendum for taxes payable in 2001,
8.13shall receive a distribution of 21.3 cents per ton. Each district shall receive $175 times the
8.14pupil units identified in section 126C.05, subdivision 1, enrolled in the second previous
8.15year or the 1983-1984 school year, whichever is greater, less the product of 1.8 percent
8.16times the district's taxable net tax capacity in the second previous year.
8.17    If the total amount provided by paragraph (d) is insufficient to make the payments
8.18herein required then the entitlement of $175 per pupil unit shall be reduced uniformly
8.19so as not to exceed the funds available. Any amounts received by a qualifying school
8.20district in any fiscal year pursuant to paragraph (d) shall not be applied to reduce general
8.21education aid which the district receives pursuant to section 126C.13 or the permissible
8.22levies of the district. Any amount remaining after the payments provided in this paragraph
8.23shall be paid to the commissioner of Iron Range resources and rehabilitation who shall
8.24deposit the same in the taconite environmental protection fund and the Douglas J. Johnson
8.25economic protection trust fund as provided in subdivision 11.
8.26    Each district receiving money according to this paragraph shall reserve the lesser of
8.27the amount received under this paragraph or $25 times the number of pupil units served
8.28in the district. It may use the money for early childhood programs or for outcome-based
8.29learning programs that enhance the academic quality of the district's curriculum. The
8.30outcome-based learning programs must be approved by the commissioner of education.
8.31    (e) There shall be distributed to any school district the amount which the school
8.32district was entitled to receive under section 298.32 in 1975.
8.33    (f) Four cents per taxable ton must be distributed to qualifying school districts
8.34according to the distribution specified in paragraph (b), clause (ii), and two cents per
8.35taxable ton must be distributed according to the distribution specified in paragraph
9.1(c). These amounts are not subject to sections 126C.21, subdivision 4, and 126C.48,
9.2subdivision 8 .
9.3EFFECTIVE DATE.This section is effective beginning with distributions made
9.4in 2010."
9.5Page 27, after line 24, insert:

9.6    "Sec. 15. Minnesota Statutes 2009 Supplement, section 469.174, subdivision 22,
9.7is amended to read:
9.8    Subd. 22. Tourism facility. "Tourism facility" means property that:
9.9    (1) is located in a county where the median income is no more than 85 percent of
9.10the state median income;
9.11    (2) is located in a county in development region 1, 2, 3, 4, 5, or 7E, as defined
9.12in section 462.385;
9.13    (3) is not located in a city with a population in excess of 20,000; and
9.14    (4) is acquired, constructed, or rehabilitated for use as a convention and meeting
9.15facility that is privately owned, marina, hotel, motel, lodging facility, or nonhomestead
9.16dwelling unit that in each case is intended to serve primarily individuals from outside
9.17the county.
9.18EFFECTIVE DATE.This section is effective for districts for which the request for
9.19certification is made after June 30, 2010."
9.20Page 28, line 4, delete "2009" and insert "2010"
9.21Page 29, lines 4 and 19, delete "2009" and insert "2010"
9.22Page 36, line 9, delete the comma and insert a period
9.23Page 36, delete line 10
9.24Page 38, after line 4, insert:
9.25    "Subd. 4. Manner of claiming credit. The commissioner shall prescribe the
9.26manner in which the credit may be issued or claimed. This may include allowing the
9.27credit only as a separately processed claim for refund. For taxable years beginning before
9.28January 1, 2014, the commissioner must require a taxpayer to claim the credit on a
9.29separately processed claim form and may not make any payments of any credit allowed
9.30before July 1, 2013."
9.31Page 46, line 28, delete "27.544" and insert "28.121"
9.32Page 48, line 5, delete "0.637" and insert "0.796"
9.33Page 48, line 21, delete "0.318" and insert "0.716"
9.34Page 49, delete section 46
10.1Page 49, line 24, delete "of the house of representative" and insert "and ranking
10.2minority members of the house of representatives Committee on"
10.3Page 49, line 25, delete "senate Finance Committees" and insert "the senate Finance
10.4Committee"
10.5Page 50, delete section 48
10.6Page 50, after line 7, insert:
10.7    "Subd. 3. Location of employees. Any employees hired by the Department of
10.8Revenue after April 30, 2010, to conduct the activities specified in this section must have
10.9their primary place of employment at the Department of Revenue facility in Ely.

10.10    Sec. 48. CITY OF EAST GRAND FORKS; PERMITTED USE OF TIF.
10.11    Notwithstanding any other law to the contrary or the provisions of the tax increment
10.12financing plan, the governing body of the city of East Grand Forks may authorize, by
10.13resolution, the expenditure of tax increments from redevelopment district 1-1, 1-2 or
10.14both for the purpose of making improvements to the Red River State Recreation Area,
10.15including the construction of additional campsites. If so authorized, the expenditures are
10.16permitted expenditures of tax increments by the authority.
10.17EFFECTIVE DATE.This section is effective the day following final enactment
10.18without local approval."
10.19Renumber the sections in sequence and correct the internal references
10.20Amend the title accordingly