116J.01 DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT.
    Subdivision 1. Appointment. The Department of Employment and Economic Development
is supervised and controlled by the commissioner of employment 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    Subd. 3.[Repealed, 1993 c 163 art 1 s 35]
    Subd. 4.[Repealed, 2004 c 171 s 20]
    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 four deputy commissioners in the unclassified service.
(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 employment and economic
development officers in state offices in nonmetropolitan areas of the state who will work with
local units of government on developing local employment and economic development.
    Subd. 6. Unclassified positions. The commissioner may establish positions in the
unclassified service in accordance with section 43A.08. The commissioner may appoint and define
the duties of other subordinate officers and employees as the commissioner deems necessary
to discharge the functions of the department.
The commissioner may establish the position of director of the state job training office
in the unclassified service.
History: 1981 c 356 s 64; 1983 c 289 s 40-42; 1984 c 558 art 4 s 3; 1Sp1985 c 14 art 9 s 39;
1987 c 312 art 1 s 14; 1989 c 335 art 1 s 136,137; 1990 c 571 s 42; 1990 c 589 art 1 s 2; 1991 c
261 s 1; 1993 c 163 art 1 s 12; 1994 c 483 s 1; 1996 c 369 s 2,3; 1997 c 200 art 1 s 50; 2001 c
175 s 52; 2001 c 200 s 1,2; 1Sp2003 c 4 s 1; 2004 c 171 s 3; 2004 c 206 s 9,52

NOTE: Subdivision 4 was also amended by Laws 2004, chapter 206, section 8, to read
as follows:
"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."

116J.011 MISSION.
The mission of the Department of Employment and Economic Development is to facilitate
an economic environment that produces net new job growth in excess of the national average
while improving the quality of the state workforce. These actions will support the economic
success of Minnesota individuals, businesses, and communities by providing opportunities
for growth. 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.
History: 1993 c 163 art 1 s 13; 1995 c 248 art 11 s 8; 1998 c 366 s 55; 2003 c 128 art 13 s
5; 1Sp2003 c 4 s 1; 2004 c 206 s 10

116J.0124 PLAIN LANGUAGE IN WRITTEN MATERIALS.
(a) To the extent reasonable and consistent with the goals of providing easily understandable
and readable materials and complying with federal and state laws governing the programs, all
written materials relating to services and determinations of eligibility for or amounts of benefits
that will be given to applicants for or recipients of assistance under a program administered or
supervised by the commissioner of economic security must be understandable to a person of
average intelligence and education.
(b) All written materials relating to determinations of eligibility for or amounts of benefits
that will be given to applicants for or recipients of assistance under programs administered or
supervised by the commissioner of economic security must be developed to satisfy the plain
language requirements of the Plain Language Contract Act under sections 325G.29 to 325G.36.
Materials may be submitted to the attorney general for review and certification. Regardless of
section 325G.35, subdivision 1, the attorney general shall review submitted materials to determine
whether they comply with the requirements of section 325G.31. The remedies available pursuant
to sections 8.31 and 325G.33 to 325G.36 do not apply to these materials. Failure to comply with
this section does not provide a basis for suspending the implementation or operation of other laws
governing programs administered by the commissioner.
(c) The requirements of this section apply to all materials modified or developed by the
commissioner on or after July 1, 1988. The requirements of this section do not apply to materials
that must be submitted to a federal agency for approval, to the extent that application of the
requirements prevents federal approval.
(d) Nothing in this section may be construed to prohibit a lawsuit brought to require the
commissioner to comply with this section.
History: 1988 c 689 art 2 s 220; 1994 c 483 s 1; 1995 c 259 art 1 s 41; 1996 c 339 s 4; 1997
c 7 art 1 s 104; 2001 c 175 s 52; 2004 c 206 s 52

116J.0125 ANNUAL REPORT TO LEGISLATURE.
The commissioner shall provide to the legislature no later than January 15 of each year a
report of department programs and services. The report must include:
(1) a description of the department's programs and services;
(2) the number of clients served by each program or service;
(3) an evaluation of each program or service; and
(4) recommendations for changes or improvements to the programs or services.
History: 1996 c 339 s 5; 2004 c 206 s 52

116J.014 COOPERATION WITH OTHER STATE AGENCIES.
To effectively coordinate job training and placement services with future job needs of the
state the commissioner shall maintain close liaison, coordination and cooperation with the
commissioner of any other state agency involved in employment issues affecting the state.
History: 1977 c 430 s 13; 1981 c 356 s 186; 1983 c 289 s 115 subd 1; 1987 c 312 art 1 s 26
subd 2; 1Sp2003 c 4 s 1; 2004 c 206 s 41,52

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 employment and
economic development.
    Subd. 3. Department. "Department" means the Department of Employment and Economic
Development.
History: 1981 c 356 s 66,248; 1983 c 289 s 43; 1987 c 312 art 1 s 15; 1Sp2003 c 4 s 1

116J.035 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.
    Subd. 3.[Repealed, 1987 c 403 art 2 s 164]
    Subd. 4. Delegation of powers. The commissioner may delegate, in written orders filed with
the secretary of state, any powers or duties subject to the commissioner's control to officers and
employees in the department. Regardless of any other law, the commissioner may delegate the
execution of specific contracts or specific types of contracts to the commissioner's deputies,
an assistant commissioner, or a program director if the delegation has been approved by the
commissioner of administration and filed with the secretary of state.
    Subd. 5. Demonstration projects. The commissioner may conduct and administer
demonstration projects to test methods and procedures for providing employment and training
services. The demonstration must provide new methods and procedures of administration and
must not conflict with the basic purposes, coverage, or benefits provided by law. No demonstration
project authorized by this section is effective until any required approval by a federal agency is
obtained and the comprehensive plan, including the estimated project costs, is filed with the
commissioner of administration.
    Subd. 6. Receipt of gifts, money. The commissioner may accept gifts, bequests, grants,
payments for services, and other public and private money to help finance the activities of the
department.
History: 1984 c 604 s 2; 1Sp1985 c 14 art 9 s 4,39,40; 1986 c 444; 1987 c 403 art 2 s
129,130; art 3 s 50; 1989 c 282 art 5 s 123,124; 1990 c 571 s 42; 1990 c 589 art 1 s 2; 1994 c 483
s 1; 1995 c 186 s 34; 1995 c 248 art 11 s 19; 1995 c 259 art 1 s 40; 1996 c 339 s 2,3; 1997 c
7 art 5 s 34; 1997 c 66 s 80; 1997 c 85 art 4 s 26; 1997 c 245 art 4 s 6; 1998 c 265 s 2; 1998
c 366 s 65; 1998 c 386 art 2 s 33; 1999 c 107 s 66; 1999 c 159 s 119; 2000 c 343 s 4; 2001 c
79 s 3; 2001 c 175 s 52; 1Sp2001 c 9 art 10 s 61; 2002 c 379 art 1 s 113; 1Sp2003 c 14 art 1 s
106; 2004 c 206 s 11,40,52

116J.036 [Repealed, 2004 c 171 s 20;2004 c 206 s 53]

116J.037 CERTIFICATION OF ELECTRONIC-COMMERCE-READY CITIES AND
COUNTIES.
A county or statutory or home rule charter city of Minnesota shall be designated an
electronic-commerce-ready city or county by the Department of Employment and Economic
Development and may be annually recertified as an electronic-commerce-ready city or county if it:
(1) has formed effective public-private partnerships with communication providers, the
business community, banks, schools, health care, government, and nonprofit social and service
organizations to become electronic commerce ready;
(2) makes available training and continuing education to develop an
electronic-commerce-ready workforce;
(3) develops a plan for electronic commerce readiness that reflects resource integration
across economic and government sectors, including current and future investments by business,
government, education, and health care to achieve cooperative community and economic
development benefits;
(4) uses local funding sources to catalyze and sustain information technology investments to
adapt to new business priorities as electronic commerce grows; and
(5) maintains public access sites to ensure access to electronic commerce applications and
community networking tools, such as electronic mail.
History: 1999 c 223 art 2 s 17; 1Sp2003 c 4 s 1

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 DESIGNATION; DUTIES; DATA.
    Subdivision 1. State agency. The commissioner of employment and economic development
is designated the "state agency" as defined by United States Code, title 29, section 49c, the
Wagner-Peyser Act, as amended.
    Subd. 2. Duties. The commissioner of employment 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, administer, and supervise other state and federal grants and grant programs
for planning, community affairs, community development purposes, employment and training
services, and other state and federal programs assigned to the department by law or by the
governor in accordance with section 4.07;
(5) 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;
(6) act as the agent of, and cooperate with, the federal government in matters of mutual
concern, including the administration of any federal funds granted to the state to aid in the
performance of functions of the commissioner;
(7) provide consistent, integrated employment and training services across the state;
(8) administer the Wagner-Peyser Act, the Workforce Investment Act, and other federal
employment and training programs;
(9) establish the standards for all employment and training services administered under this
chapter and chapters 116L, 248, 268, and 268A;
(10) administer the aspects of the Minnesota family investment program, general assistance,
and food stamps that relate to employment and training services, subject to the contract under
section 116L.86, subdivision 1;
(11) obtain reports from local service units and service providers for the purpose of
evaluating the performance of employment and training services;
(12) as requested, certify employment and training services, and decertify services that fail to
comply with performance criteria according to standards established by the commissioner;
(13) develop standards for the contents and structure of the local service unit plans and
plans for Indian tribe employment and training services, review and comment on those plans,
and approve or disapprove the plans;
(14) supervise the county boards of commissioners, local service units, and any other units
of government designated in federal or state law as responsible for employment and training
programs;
(15) establish administrative standards and payment conditions for providers of employment
and training services;
(16) enter into agreements with Indian tribes as necessary to provide employment and
training services as appropriate funds become available;
(17) cooperate with the federal government and its employment and training agencies in
any reasonable manner as necessary to qualify for federal aid for employment and training
services and money;
(18) administer and supervise all forms of unemployment insurance provided for under
federal and state laws;
(19) provide current state and substate labor market information and forecasts, in cooperation
with other agencies;
(20) require all general employment and training programs that receive state funds to make
available information about opportunities for women in nontraditional careers in the trades and
technical occupations;
(21) consult with the Rehabilitation Council for the Blind on matters pertaining to programs
and services for the blind and visually impaired;
(22) enter into agreements with other departments of the state and local units of government
as necessary; and
(23) establish and maintain administrative units necessary to perform administrative
functions common to all divisions of the department.
    Subd. 3. Classification of data on individuals. Data collected on individuals pursuant to a
program operated by the commissioner are private data on individuals as defined in section 13.02,
subdivision 12 , unless more restrictively classified by law.
History: 1984 c 558 art 4 s 4; 1Sp1985 c 14 art 9 s 40; 1987 c 312 art 1 s 26; 1987 c 403 art
2 s 129,130; art 3 s 50; 1989 c 282 art 5 s 123,124; 1993 c 172 s 78; 1994 c 483 s 1; 1995 c 248
art 11 s 19; 1995 c 259 art 1 s 40; 1996 c 339 s 2,3; 1997 c 7 art 5 s 34; 1997 c 66 s 80; 1997 c 85
art 4 s 26; 1997 c 245 art 4 s 6; 1998 c 265 s 2; 1998 c 366 s 65; 1999 c 107 s 66; 1999 c 159 s
119; 2000 c 343 s 4; 2001 c 79 s 3; 2001 c 175 s 52; 1Sp2001 c 9 art 10 s 61; 2002 c 379 art 1 s
113; 1Sp2003 c 4 s 1; 1Sp2003 c 14 art 1 s 106; 2004 c 206 s 12,40,52

116J.402 COOPERATIVE CONTRACTS.
The commissioner of employment 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.
History: 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; 1Sp2003 c 4 s 1

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.
History: 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.407 DAIRY MODERNIZATION.
    Subdivision 1. Generally. The commissioner shall make funds available to eligible regional
or statewide development organizations defined under section 116J.8731 to be used for the
purposes of this section.
    Subd. 2. Eligible expenditures. Money may be used for loans for the acquisition,
construction, or improvement of buildings or facilities, or the acquisition of equipment, for
dairy animal housing, confinement, animal feeding, milk production, and waste management,
including the following, if related to dairy animals:
(1) free-stall barns;
(2) fences;
(3) watering facilities;
(4) feed storage and handling equipment;
(5) milking parlors;
(6) robotic equipment;
(7) scales;
(8) milk storage and cooling facilities;
(9) bulk tanks;
(10) manure pumping and storage facilities;
(11) digesters;
(12) equipment used to produce energy;
(13) capital investment in pasture; and
(14) on-farm processing facilities.
    Subd. 3. Application process. The commissioner of agriculture and the commissioner of
employment and economic development shall establish a process by which an eligible dairy
producer may make application for assistance under this section to the county in which the
producer is located. The application must require the producer and county to provide information
regarding the producer's existing business, the intended use of the requested funds, and other
information the commissioners find necessary to evaluate the feasibility, likely success, and
economic return of the project, and to ensure that money can be provided consistent with other
state and federal laws.
History: 2004 c 254 s 24

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 employment and
economic development.
    Subd. 2a. Job enhancement. "Job enhancement" means:
(1) an increase in wages, and an increase in the responsibility or skill level of job duties; or
(2) the provision of additional training or education for employees in existing jobs.
    Subd. 3.[Repealed, 2003 c 128 art 13 s 40]
    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.
History: 1987 c 312 art 1 s 26 subd 2; 1987 c 386 art 1 s 3; 1996 c 369 s 12; 2003 c 128
art 13 s 6; 1Sp2003 c 4 s 1

116J.412 ACCOUNT ALLOCATION.
The commissioner shall allocate $6,000,000 from the rural rehabilitation account to be
used for the challenge grant program.
History: 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.
History: 1987 c 386 art 1 s 5; 1995 c 224 s 63; 1996 c 369 s 10,12

116J.414 [Repealed, 2004 c 206 s 53]

116J.415 CHALLENGE GRANT PROGRAM.
    Subdivision 1. Organization. The commissioner shall make challenge grants to regional
organizations, for the purpose of providing financial assistance to encourage private investment, to
provide jobs or job enhancement 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 allocate all funds remaining in each
regional subaccount of the rural rehabilitation account, as established under section 116J.955, to
each respective regional organization. The money designated to each region must be used for
assistance 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 fund. A regional organization shall establish a commissioner certified
revolving fund to promote economic development in rural Minnesota. Funds may be used to
provide loans, loan guarantees, interest buy-downs, and other forms of participation with private
sources of financing, provided that the financial assistance must be for a principal amount that
does not exceed one-half of the cost of the project for which financing is sought.
    Subd. 5. Assistance criteria. Projects supported through the challenge grant program must
be used principally to benefit low-income persons by:
(1) creating new jobs, job enhancement, or retaining existing jobs;
(2) increasing the local tax base;
(3) demonstrating that investment of public dollars induces private funds;
(4) providing higher wage levels to the community or adding value to current workforce
skills;
(5) retaining existing business; or
(6) attracting out-of-state business.
    Subd. 6.[Repealed, 2003 c 128 art 13 s 40]
    Subd. 7. Revolving fund administration. Repayment amounts must be deposited in the
regional revolving fund for further distribution by the regional organization, consistent with the
loan criteria specified in subdivisions 4 and 5.
    Subd. 8. Rules. The commissioner shall adopt rules to implement the duties specified
in this section.
    Subd. 9.[Repealed, 2003 c 128 art 13 s 40]
    Subd. 10.[Repealed, 2003 c 128 art 13 s 40]
    Subd. 11. Reporting requirements. An organization that receives a challenge grant shall:
(1) submit an annual report to the commissioner by August 30 for the preceding fiscal year
that includes an account of loans made, written off, and fully paid during the calendar year, the
source and amount of money collected and distributed by the regional revolving fund, and the
funds' cash balance and loans receivable; 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.
History: 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; 1999 c 223 art 2 s 18; 2003 c 128 art 13 s 7-12

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. (a) 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.
(b) If the board organizes the center as a nonprofit corporation under section 501(c)(3) of
the Internal Revenue Code, staff of the center may participate in state insurance plans that apply
to state employees generally, and are subject to regulation by the state Campaign Finance and
Public Disclosure Board.
    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.
The board shall appoint one additional member to the board of directors who shall represent
the general public.
If the board concludes at any time that the composition of the board does not adequately
reflect the ethnic and gender diversity of rural Minnesota, the board may appoint up to four
additional members in order to better reflect this diversity. Members appointed by the board under
this paragraph shall serve six-year terms. The board may not appoint additional members such
that the board would have a total of more than 20 members.
    Subd. 3. Duties. The center shall:
(1) research and 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;
(5) involve students in center projects; and
(6) submit to the legislature a report on the "State of Rural Minnesota" no later than March 1
in each odd-numbered year.
    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.
    Subd. 6. Use of appropriation. State appropriations to the board, whether from the general
fund or the rural policy and development fund, may, at the discretion of the board, be expended
for administration of the center and to carry out its duties under this section or under other law.
    Subd. 7. Board compensation. Compensation and expense reimbursement of board
members is as provided in section 15.0575, subdivision 3.
History: 1997 c 200 art 1 s 51; 1Sp1998 c 1 art 3 s 18,19; 1999 c 223 art 2 s 19-22; 2000 c
488 art 2 s 5; 2001 c 86 s 1; 2006 c 281 art 4 s 5

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.
History: 1997 c 200 art 1 s 52

116J.423 MINNESOTA MINERALS 21ST CENTURY FUND.
    Subdivision 1. Created. The Minnesota minerals 21st century fund is created as a separate
account in the treasury. Money in the account is appropriated to the commissioner of employment
and economic development for the purposes of this section. All money earned by the account,
loan repayments of principal and interest, and earnings on investments must be credited to the
account. For the purpose of this section, "fund" means the Minnesota minerals 21st century fund.
The commissioner shall operate the account as a revolving account.
    Subd. 2. Use of fund. The commissioner shall use money in the fund to make loans or equity
investments in mineral processing facilities including, but not limited to, taconite processing,
direct reduction processing, and steel production. The commissioner must, prior to making any
loans or equity investments and after consultation with industry and public officials, develop a
strategy for making loans and equity investments that assists the Minnesota mineral industry in
becoming globally competitive. Money in the fund may also be used to pay for the costs of
carrying out the commissioner's due diligence duties under this section.
    Subd. 3. Requirements prior to committing funds. The commissioner, prior to making a
commitment for a loan or equity investment must, at a minimum, conduct due diligence research
regarding the proposed loan or equity investment, including contracting with professionals as
needed to assist in the due diligence.
    Subd. 4. Requirements for fund disbursements. The commissioner may make conditional
commitments for loans or equity investments but disbursements of funds pursuant to a
commitment may not be made until commitments for the remainder of a project's funding
are made that are satisfactory to the commissioner and disbursements made from the other
commitments sufficient to protect the interests of the state in its loan or investment.
    Subd. 5. Company contribution. The commissioner may provide loans or equity
investments that match, in a proportion determined by the commissioner, an investment made
by the owner of a facility.
History: 1999 c 223 art 2 s 23; 1Sp2003 c 4 s 1

116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD
CONTRIBUTION.
The commissioner of the Iron Range Resources and Rehabilitation Board with approval of
the board shall provide an equal match for any loan or equity investment made for a facility
located in the tax relief area defined in section 273.134, paragraph (b), by the Minnesota minerals
21st century fund created by section 116J.423. The match may be in the form of a loan or equity
investment, notwithstanding whether the fund makes a loan or equity investment. The state shall
not acquire an equity interest because of an equity investment or loan by the board and the board
at its sole discretion shall decide what interest it acquires in a project. The commissioner of
employment and economic development may require a commitment from the board to make the
match prior to disbursing money from the fund.
History: 1999 c 223 art 2 s 24; 1Sp2001 c 5 art 6 s 1; 1Sp2003 c 4 s 1

116J.43 [Renumbered 116K.05]

116J.431 GREATER MINNESOTA BUSINESS DEVELOPMENT PUBLIC
INFRASTRUCTURE GRANT PROGRAM.
    Subdivision 1. Grant program established. The commissioner shall make grants to cities
to provide up to 50 percent of the capital costs of public infrastructure necessary for an eligible
economic development project. The city receiving a grant must provide for the remainder of the
costs of the project, either in cash or in kind. In-kind contributions may include the value of site
preparation other than the public infrastructure needed for the project.
For purposes of this section, "city" means a statutory or home rule charter city located
outside the metropolitan area, as defined in section 473.121, subdivision 2.
"Public infrastructure" means publicly owned physical infrastructure necessary to support
economic development projects, including, but not limited to, sewers, water supply systems,
utility extensions, streets, wastewater treatment systems, stormwater management systems, and
facilities for pretreatment of wastewater to remove phosphorus.
The purpose of the grants is to keep or enhance jobs in the area, increase the tax base, or to
expand or create new economic development.
    Subd. 2. Eligible projects. An economic development project for which a city may be
eligible to receive a grant under this section includes:
(1) manufacturing;
(2) technology;
(3) warehousing and distribution;
(4) research and development;
(5) agricultural processing, defined as transforming, packaging, sorting, or grading livestock
or livestock products into goods that are used for intermediate or final consumption, including
goods for nonfood use; or
(6) industrial park development that would be used by any other business listed in this
subdivision.
    Subd. 3. Ineligible projects. The following projects are not eligible for a grant under this
section:
(1) retail development; or
(2) office space development, except as incidental to an eligible purpose.
    Subd. 4. Application. The commissioner must develop forms and procedures for soliciting
and reviewing applications for grants under this section. At a minimum, a city must include in its
application a resolution of the city council certifying that the required local match is available.
The commissioner must evaluate complete applications for eligible projects using the following
criteria:
(1) the project is an eligible project as defined under subdivision 2;
(2) the project will result in substantial public and private capital investment and provide
substantial economic benefit to the city in which the project would be located;
(3) the project is not relocating substantially the same operation from another location in
the state, unless the commissioner determines the project cannot be reasonably accommodated
within the city in which the business is currently located, or the business would otherwise relocate
to another state; and
(4) the project will create or maintain full-time jobs.
The determination of whether to make a grant for a site is within the discretion of the
commissioner, subject to this section. The commissioner's decisions and application of the
priorities are not subject to judicial review, except for abuse of discretion.
    Subd. 5. Set asides. (a) During the first two years of the program, $2,000,000, must be used
only for grants to cities with a population of less than 5,000.
(b) Twenty percent of the amount available must be used only for grants for industrial
park developments.
    Subd. 6. Maximum grant amount. A city may receive no more than $1,000,000 in two
years for one or more projects.
    Subd. 7. Cancellation of grant; return of grant money. If after five years, the commissioner
determines that a project has not proceeded in a timely manner and is unlikely to be completed,
the commissioner must cancel the grant and require the grantee to return all grant money awarded
for that project. For industrial park development projects, if after five years the industrial park is
not developed and available for business use, the commissioner must cancel the grant and require
the grantee to return all grant money for that project. If the industrial park is developed and
available for use within five years, but no businesses have located in the park, the grantee is not
required to return any grant money.
    Subd. 8. Appropriation. Grant money returned to the commissioner is appropriated to the
commissioner to make additional grants under this section.
History: 2002 c 393 s 46

116J.435 BIOSCIENCE BUSINESS DEVELOPMENT PUBLIC INFRASTRUCTURE
GRANT PROGRAM.
    Subdivision 1. Creation of account. A bioscience business development public infrastructure
account is created in the bond proceeds fund. Money in the account may only be used for capital
costs of public infrastructure for eligible bioscience business development projects.
    Subd. 2. Definitions. For purposes of this section:
(1) "local governmental unit" means a county, city, town, special district, or other political
subdivision or public corporation;
(2) "governing body" means the council, board of commissioners, board of trustees, or other
body charged with governing a local governmental unit;
(3) "public infrastructure" means publicly owned physical infrastructure in this state,
including, but not limited to, wastewater collection and treatment systems, drinking water
systems, storm sewers, utility extensions, telecommunications infrastructure, streets, roads,
bridges, parking ramps, facilities that support basic science and clinical research, and research
infrastructure; and
(4) "eligible project" means a bioscience business development capital improvement project
in this state, including: manufacturing; technology; warehousing and distribution; research and
development; bioscience business incubator; agricultural bioprocessing; or industrial, office, or
research park development that would be used by a bioscience-based business.
    Subd. 3. Grant program established. (a) The commissioner shall make competitive grants
to local governmental units to acquire and prepare land on which public infrastructure required to
support an eligible project will be located, including demolition of structures and remediation of
any hazardous conditions on the land, or to predesign, design, acquire, construct, furnish, and
equip public infrastructure required to support an eligible project. The local governmental unit
receiving a grant must provide for the remainder of the public infrastructure costs.
(b) The amount of a grant may not exceed the lesser of the cost of the public infrastructure
or 50 percent of the sum of the cost of the public infrastructure plus the cost of the completed
eligible project.
(c) The purpose of the program is to keep or enhance jobs in the area, increase the tax
base, or to expand or create new economic development through the growth of new bioscience
businesses and organizations.
    Subd. 4. Application. (a) The commissioner must develop forms and procedures for
soliciting and reviewing applications for grants under this section. At a minimum, a local
governmental unit must include the following information in its application:
(1) a resolution of its governing body certifying that the money required to be supplied by
the local governmental unit to complete the public infrastructure is available and committed;
(2) a detailed estimate, along with necessary supporting evidence, of the total development
costs for the public infrastructure and eligible project;
(3) an assessment of the potential or likely use of the site for bioscience activities after
completion of the public infrastructure and eligible project;
(4) a timeline indicating the major milestones of the public infrastructure and eligible project
and their anticipated completion dates;
(5) a commitment from the governing body to repay the grant if the milestones are not
realized by the completion date identified in clause (4); and
(6) any additional information or material the commissioner prescribes.
(b) The determination of whether to make a grant under subdivision 3 is within the discretion
of the commissioner, subject to this section. The commissioner's decisions and application of the
priorities are not subject to judicial review, except for abuse of discretion.
    Subd. 5. Priorities. (a) If applications for grants exceed the available appropriations,
grants must be made for public infrastructure that, in the commissioner's judgment, provides
the highest return in public benefits for the public costs incurred. "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.
In making this judgment, the commissioner shall give priority to eligible projects with one or
more of the following characteristics:
(1) the potential of the local governmental unit to attract viable bioscience businesses;
(2) proximity to public transit if located in a metropolitan county, as defined in section
473.121, subdivision 4;
(3) multijurisdictional eligible projects that take into account the need for affordable housing,
transportation, and environmental impact;
(4) the eligible project is not relocating substantially the same operation from another
location in the state, unless the commissioner determines the eligible project cannot be reasonably
accommodated within the local governmental unit in which the business is currently located, or
the business would otherwise relocate to another state or country; and
(5) the number of jobs that will be created.
(b) The factors in paragraph (a) 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.
    Subd. 6. Cancellation of grant. If a grant is awarded to a local governmental unit and funds
are not encumbered for the grant within four years after the award date, the grant must be canceled.
    Subd. 7. Repayment of grant. If an eligible project supported by public infrastructure
funded with a grant awarded under this section is not occupied by a bioscience business in
accordance with the grant application under subdivision 4 within five years after the date of
the last grant payment, the grant recipient must repay the amount of the grant received. The
commissioner must deposit all money received under this subdivision into the state treasury and
credit it to the debt service account in the state bond fund.
History: 2006 c 258 s 34

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 [Repealed, 2001 c 200 s 4]

116J.542 [Repealed, 2001 c 200 s 4]

116J.543 [Repealed, 2006 c 282 art 11 s 32]

116J.551 CREATION OF ACCOUNTS.
    Subdivision 1. Grant account. A contaminated site cleanup and development grant 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. Notwithstanding section 16A.28, money appropriated to the
account for this program from any source is available until spent.
    Subd. 2. Revolving loan account. A revolving loan account is created in a special revenue
fund for the Minnesota cleanup revolving loan fund, funded by the United States Environmental
Protection Agency. Money in the account may be invested by the State Board of Investment.
Money in the account must be used to provide loans and grants in accordance with section
116J.559 and the Brownfields Revitalization and Environmental Restoration Act of 2001, Public
Law 107-118, title II, under the authority of the United States Environmental Protection Agency,
and to pay for the commissioner's cost in reviewing applications and making loans and/or grants.
History: 1993 c 375 art 13 s 1; 2004 c 206 s 13; 1Sp2005 c 1 art 4 s 15; 2007 c 135 art 2 s 6

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.
History: 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. (a) 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
licensed under chapter 82B using accepted appraisal methodology or, the estimated market
value of the property for the latest year shown on the most recent valuation notice used under
section 273.121;
(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.
(b) A response action plan is not required as a condition to receive a grant under section
116J.554, subdivision 1, paragraph (c).
History: 1993 c 375 art 13 s 3; 1999 c 203 s 4; 2003 c 128 art 13 s 13

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.20;
    (2) 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.
History: 1993 c 375 art 13 s 4; 1995 c 255 art 2 s 3; 1997 c 246 s 14,15; 2003 c 128 art 13 s
14; 2004 c 228 art 1 s 73; 2007 c 135 art 2 s 7

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 by considering but not limited to the current market value
of the site versus the cleanup cost;
    (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.
History: 1993 c 375 art 13 s 5; 1995 c 224 s 54; 1995 c 255 art 2 s 2; 1996 c 470 s 27;
2007 c 135 art 2 s 8

116J.556 LOCAL MATCH REQUIREMENT.
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.
History: 1993 c 375 art 13 s 6; 1995 c 255 art 2 s 4; 1997 c 246 s 16; 2003 c 2 art 1
s 15; 2005 c 152 art 2 s 1

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.
History: 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.
History: 1994 c 643 s 54

116J.559 LOANS.
The commissioner may provide loans and grants that meet the criteria of the Brownfields
Revitalization and Environmental Restoration Act of 2001, Public Law 107-118, title II, under the
authority of the United States Environmental Protection Agency, from the account established
in section 116J.551, subdivision 2. The commissioner shall prioritize the projects pursuant
to section 116J.555.
History: 2004 c 206 s 14

116J.561 [Repealed, 2002 c 393 s 91]

116J.562 [Repealed, 2002 c 393 s 91]

116J.563 [Repealed, 2002 c 393 s 91]

116J.564 [Repealed, 2002 c 393 s 91]

116J.565 [Repealed, 2002 c 393 s 91]

116J.566 [Repealed, 2002 c 393 s 91]

116J.567 [Repealed, 2002 c 393 s 91]

116J.57 [Expired, 1997 c 246 s 17]

116J.571 CREATION OF ACCOUNTS.
Two redevelopment accounts are created, one in the general fund and one in the bond
proceeds fund. Money in the accounts may be used to make grants as provided in section 116J.575
and to pay for the commissioner's costs in reviewing applications and making grants.
History: 2002 c 393 s 47; 1Sp2005 c 1 art 4 s 16

116J.572 DEFINITIONS.
    Subdivision 1. Scope of application. For purposes of sections 116J.571 to 116J.575, the
terms in this section have the meanings given.
    Subd. 2. Development authority. "Development authority" includes a statutory or home
rule charter city, county, housing and redevelopment authority, economic development authority,
or port authority.
    Subd. 2a. Metropolitan area. "Metropolitan area" means the seven-county metropolitan
area, as defined in section 473.121, subdivision 2.
    Subd. 2b. 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. 3. Redevelopment costs or costs. "Redevelopment costs" or "costs" means the costs
of land acquisition, stabilizing unstable soils when infill is required, demolition, infrastructure
improvements, and ponding or other environmental infrastructure and costs necessary for adaptive
reuse of buildings, including remedial activities.
    Subd. 4.[Repealed by amendment, 1Sp2005 c 1 art 4 s 17]
History: 2002 c 393 s 48; 1Sp2005 c 1 art 4 s 17

116J.573 [Repealed, 1Sp2005 c 1 art 4 s 124]

116J.574 GRANT APPLICATIONS.
    Subdivision 1. Application required. To obtain a redevelopment grant, a development
authority shall apply to the commissioner. The governing body of the municipality must approve
the application by resolution.
    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 the commissioner prescribes.
History: 2002 c 393 s 50; 1Sp2005 c 1 art 4 s 18

116J.575 GRANTS.
    Subdivision 1. Commissioner discretion. The commissioner may make a grant for up to
50 percent of the eligible costs of a project. The determination of whether to make a grant for a
site is within the discretion of the commissioner, subject to this section and sections 116J.571 to
116J.574 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.
    Subd. 1a. Priorities. (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. "Public benefits" include job creation, bioscience
development, 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.
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;
    (5) redevelopment costs related to expansion of a bioscience business in Minnesota; and
    (6) multijurisdictional projects that take into account the need for affordable housing,
transportation, and environmental impact.
    (b) The factors in paragraph (a) 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. Unless sufficient applications are not received for qualifying sites outside of
the metropolitan area, at least 50 percent of the money provided as grants must be made for
sites located outside of the metropolitan area.
    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.
    Subd. 3. Match required. In order to qualify for a grant under sections 116J.571 to 116J.575,
the municipality must pay for at least one-half of the redevelopment costs as a local match from
any money available to the municipality.
History: 2002 c 393 s 51; 2005 c 20 art 1 s 33; 1Sp2005 c 1 art 4 s 19; 2006 c 212 art 3 s
9; 2007 c 135 art 2 s 9,10

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 clearinghouse 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) 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;
(16) 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;
(17) provide business with information on the economic benefits of energy conservation and
on the availability of energy conservation assistance; and
(18) 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.[Repealed, 1Sp2005 c 1 art 4 s 124]
    Subd. 4.[Repealed, 1986 c 465 art 1 s 31]
History: 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; 2002 c 380 art 2 s 2

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

116J.59 IMPREST FUNDS, USE.
The commissioner of employment 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.
History: 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; 1Sp2003 c 4 s 1

116J.60 PROMOTIONAL EXPENSES.
In the promotion of trade and economic development of the state, the commissioner of
employment 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.
History: 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; 1Sp2003 c 4 s 1; 2004 c 171 s 4

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.
History: 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    Subdivision 1.[Repealed, 2004 c 171 s 20]
    Subd. 2.[Repealed, 1993 c 163 art 1 s 35]
    Subd. 3.[Repealed, 1991 c 238 art 1 s 26]

116J.616 [Repealed, 2004 c 171 s 20]

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.[Repealed, 2003 c 128 art 13 s 40]
    Subd. 6.[Repealed, 2003 c 128 art 13 s 40]
History: 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. Sale. 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. (a) 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.
Except as described in paragraph (b), all fees for materials and services must be deposited
in the general fund.
(b) The commissioner may sell marketing materials at cost to economic development
organizations and others in quantities that would not otherwise be available through general fund
appropriations. Funds received must be placed in a special revolving account and are appropriated
to the commissioner to pay for the production of the materials.
    Subd. 3. Advertising. 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.[Repealed, 2004 c 171 s 20]
History: 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; 1999 c 223 art 2 s 25; 1Sp2005 c 1 art 4 s 20

116J.64 LOANS TO INDIANS.
    Subdivision 1. Scope. For purposes of this section the following terms shall have the
meanings ascribed to them herein.
    Subd. 2. Indian. "Indian" means a person who is an enrolled member of a federally
recognized Minnesota based band or tribe.
    Subd. 3. Person. "Person" means an individual Indian, or a partnership comprising Indians
only, or a corporation whose stock is owned wholly by Indians.
    Subd. 4. Tribal government. "Tribal government" means the reservation business
committee, board of trustees, tribal council, federally recognized tribal entity, or equivalent duly
constituted tribal authority.
    Subd. 5. Agency. "Agency" means the Department of Employment and Economic
Development.
    Subd. 5a. Eligible organization. "Eligible organization" means any organization approved
by a tribal government to administer its portion of the Indian business loan fund allotted to
the tribal government.
    Subd. 6. Administration. (a) 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
commissioner of finance 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 Indians as that term is defined in subdivision 2.
(b) The tribal governments or eligible organization may administer the account, provided
that, before making any eligible loans, each tribal government must submit to the agency, for its
review and approval, a plan for that government's loan program which specifically describes, as to
that program, its content, the application and reporting forms, utilization of money, administration,
operation, implementation, and other matters required by the agency. The plan may provide for
the tribal government to contract with an eligible organization to administer its loan program.
(c) All such plans 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. Each tribal government may allocate all, or a portion of, the
funds in its account to one or more other tribal governments for purposes of making eligible loans.
As a condition to the making of such eligible loans, the tribal governments 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.
(d) Whenever money is appropriated by the commissioner of finance 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. Processing. (a) An Indian desiring a loan for the purpose of starting a business
enterprise or expanding an existing business shall make application to the appropriate tribal
government. The application shall be forwarded to the appropriate eligible organization, if it is
participating in the program, for consideration in conformity with the plans submitted by said
tribal governments. The tribal government may approve the application if it determines that the
loan would advance the goals of the Indian business loan program. If the tribal government is not
participating in the program, the agency may directly approve or deny the loan application.
(b) If the application is approved, the tribal government shall forward the application,
together with all relevant documents pertinent thereto, to the commissioner of the agency, who
shall cause a warrant to be drawn in favor of the applicable tribal government, or the agency, if it
is administering the loan, with appropriate notations identifying the borrower.
(c) The tribal government, eligible organization, or the agency, if it is administering the
loan, shall maintain records of transactions for each borrower in a manner consistent with good
accounting practice. The interest rate on a loan shall be established by the tribal government or
the agency, but may be no less than two percent per annum nor more than ten percent per annum.
When any portion of a debt is repaid, the tribal government, eligible organization, or the agency,
if it is administering the loan, shall remit the amount so received plus interest paid thereon to
the commissioner of finance through the agency. The amount so received shall be credited to
the Indian business loan account.
(d) On the placing of a loan, additional money equal to ten percent of the total amount made
available to any tribal government, eligible organization, or the agency, if it is administering the
loan, for loans during the fiscal year shall be paid to the tribal government, eligible organization,
or the agency, prior to December 31 for the purpose of financing administrative costs.
    Subd. 8. Loan period. Loans made under subdivision 7 shall be limited to a period of ten
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 20 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, or greater than, the face value of the loan to
ensure that adequate collateral is provided.
    Subd. 9. Penalty. 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 is an individual, partnership or corporation, shall be guilty of a gross misdemeanor.
    Subd. 10. Tax revenue. The county auditor shall remit the tax revenue received yearly to the
commissioner of finance as required by subdivision 6 no later than December 15.
    Subd. 11. Appropriation. There is appropriated annually an amount equal to the tax revenue
allotted under subdivision 7.
History: 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; 2003 c 112 art 2 s 50; 2003 c 128 art 13 s 15; 2004 c 206 s 15-21

116J.645 [Repealed, 1993 c 163 art 1 s 35; 1993 c 337 s 20]

116J.65 [Renumbered 116M.04]

116J.655 [Renumbered 121.72]

116J.656 SMALL BUSINESS ACCESS TO FEDERAL RESEARCH FUNDS.
(a) The commissioner shall assist small businesses to access federal money through the
federal Small Business Innovation Research program and the Small Business Technology
Transfer program. In providing this assistance, the commissioner shall maintain connections
to eligible federal programs, assess specific funding opportunities, review funding proposals,
provide referrals to specific consulting services, and hold training workshops throughout the state.
(b) Unless prohibited by federal law, the commissioner must implement fees for services that
help companies seek federal Phase II Small Business Innovation Research grants. The fees must
be deposited in a special revenue account and are annually appropriated to the commissioner for
the Small Business Innovation Research and Small Business Technology Transfer programs.
History: 2006 c 282 art 11 s 9

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.
History: 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. Generally. 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. Duties. 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]
    Subd. 5. Advisory board meetings. (a) If compliance with section 13D.02 is impractical,
the Small Business Development Center Advisory Board, created pursuant to United States Code,
title 15, section 648, may conduct a meeting of its members by telephone or other electronic
means so long as the following conditions are met:
(1) all members of the board participating in the meeting, wherever their physical location,
can hear one another and can hear all discussion and testimony;
(2) members of the public present at the regular meeting location of the board can hear
clearly all discussion and testimony and all votes of members of the board and, if needed, receive
those services required by sections 15.44 and 15.441;
(3) at least one member of the board is physically present at the regular meeting location; and
(4) all votes are conducted by roll call, so each member's vote on each issue can be identified
and recorded.
(b) Each member of the board participating in a meeting by telephone or other electronic
means is considered present at the meeting for purposes of determining a quorum and participating
in all proceedings.
(c) If telephone or other electronic means is used to conduct a meeting, the board, to the
extent practical, shall allow a person to monitor the meeting electronically from a remote location.
The board may require the person making such a connection to pay for documented marginal
costs that the board incurs as a result of the additional connection.
(d) If telephone or other electronic means is used to conduct a regular, special, or emergency
meeting, the board shall provide notice of the regular meeting location, of the fact that some
members may participate by telephone or other electronic means, and of the provisions of
paragraph (c). The timing and method of providing notice is governed by section 13D.04.
History: 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; 2005 c 163 s 53

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.
History: 1981 c 342 art 2 s 2; 1981 c 356 s 248

116J.691 [Renumbered 116O.091]

116J.692 [Renumbered 116O.092]

116J.693 [Repealed, 2003 c 128 art 13 s 40]

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 326A;
(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 and cosmetologists regulated pursuant to chapter 154;
(x) boiler operators regulated pursuant to chapter 183;
(xi) chiropractors regulated pursuant to chapter 148;
(xii) collection agencies regulated pursuant to chapter 332;
(xiii) dentists, registered dental assistants, and dental hygienists regulated pursuant to
chapter 150A;
(xiv) detectives regulated pursuant to chapter 326;
(xv) electricians regulated pursuant to chapter 326;
(xvi) mortuary science practitioners regulated pursuant to chapter 149A;
(xvii) engineers regulated pursuant to chapter 326;
(xviii) insurance brokers and salespersons regulated pursuant to chapter 60A;
(xix) certified interior designers regulated pursuant to chapter 326;
(xx) midwives regulated pursuant to chapter 147D;
(xxi) nursing home administrators regulated pursuant to chapter 144A;
(xxii) optometrists regulated pursuant to chapter 148;
(xxiii) osteopathic physicians regulated pursuant to chapter 147;
(xxiv) pharmacists regulated pursuant to chapter 151;
(xxv) physical therapists regulated pursuant to chapter 148;
(xxvi) physician assistants regulated pursuant to chapter 147A;
(xxvii) physicians and surgeons regulated pursuant to chapter 147;
(xxviii) plumbers regulated pursuant to chapter 326;
(xxix) podiatrists regulated pursuant to chapter 153;
(xxx) practical nurses regulated pursuant to chapter 148;
(xxxi) professional fund-raisers regulated pursuant to chapter 309;
(xxxii) psychologists regulated pursuant to chapter 148;
(xxxiii) real estate brokers, salespersons, and others regulated pursuant to chapters 82 and 83;
(xxxiv) registered nurses regulated pursuant to chapter 148;
(xxxv) securities brokers, dealers, agents, and investment advisers regulated pursuant
to chapter 80A;
(xxxvi) steamfitters regulated pursuant to chapter 326;
(xxxvii) teachers and supervisory and support personnel regulated pursuant to chapter 125;
(xxxviii) veterinarians regulated pursuant to chapter 156;
(xxxix) water conditioning contractors and installers regulated pursuant to chapter 326;
(xl) water well contractors regulated pursuant to chapter 103I;
(xli) water and waste treatment operators regulated pursuant to chapter 115;
(xlii) motor carriers regulated pursuant to chapter 221;
(xliii) professional firms regulated under chapter 319B;
(xliv) real estate appraisers regulated pursuant to chapter 82B;
(xlv) residential building contractors, residential remodelers, residential roofers,
manufactured home installers, and specialty contractors regulated pursuant to chapter 326;
(xlvi) licensed professional counselors regulated pursuant to chapter 148B;
(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.
History: 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; 1999 c 86 art 1 s
25; 2000 c 260 s 16; 2001 c 109 art 2 s 2; 2003 c 118 s 1; 2004 c 269 art 3 s 1

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.
History: 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.
History: 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.
History: 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 Employment 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.
History: 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; 1Sp2003 c 4 s 1

116J.75 [Repealed, 2001 c 200 s 4]

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.
History: 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.
History: 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.
History: 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.
History: 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 employment 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.
History: 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; 1Sp2003 c 4 s 1

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 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.
History: 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.
History: 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.
History: 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.
History: 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.
History: 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.
History: 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 116L.19,
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. 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.
History: 1990 c 604 art 10 s 7; 1991 c 322 s 19; 2004 c 206 s 52; 2004 c 228 art 1 s 72;
2005 c 10 art 3 s 5

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, which includes investments in
technology and equipment that increase productivity and provide for a higher wage;
(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) improving the quality of existing jobs, based on increases in wages or improvements in
the job duties, training, or education associated with those jobs;
(5) 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
(6) 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 received
from repayment of funds awarded under this section to a regional development commission,
other regional entity, or statewide community capital fund as determined by the commissioner,
to capitalize or to provide the local match required for capitalization of a regional or statewide
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, retention of existing jobs, or improvements in the quality of existing
jobs as measured by the wages, skills, or education associated with those 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 $1,000,000. 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. A
local community or recognized Indian tribal government may retain 20 percent, but not more
than $100,000 of a Minnesota investment fund grant 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 a Minnesota
investment revolving loan account in the state treasury. Funds in the account are appropriated to
the commissioner and must be used in the same manner as are funds appropriated to the Minnesota
investment fund. Funds repaid to the state through existing Minnesota investment fund agreements
must be credited to the Minnesota investment revolving loan account effective July 1, 2005. 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 or job enhancement goals. A recipient that
breaches the agreement must repay the grant directly to the commissioner. Repayments under
this subdivision must be deposited in the Minnesota investment revolving loan account. If the
commissioner determines, during the repayment period of a Minnesota investment fund loan,
that the project for which the loan was made is in imminent danger of ceasing operations due
to financial difficulties, the commissioner may elect to delay loan payments due on the loan
for a period of no more than two years. In making a determination about whether a recipient
qualifies for possible delay in payments, the commissioner must consider all available information
regarding the health of the affected business and the industry in which it operates, the potential
for displacement of workers in the event that operations cease, and the likelihood that a delay of
payments will provide the business with a reasonable ability to improve its financial condition.
History: 1996 c 452 s 29; 2001 c 102 s 1; 1Sp2001 c 4 art 2 s 2; 2003 c 128 art 13 s 16-19;
1Sp2005 c 1 art 4 s 21

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 363A.03,
subdivision 12 .
(d) "Full-time employee" means an employee who is employed for at least 35 hours per week.
    Subd. 2. Establishment. The commissioner of employment 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 co-payment 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]
History: 1993 c 369 s 48; 1Sp2003 c 4 s 1

116J.8745 MICROENTERPRISE ENTREPRENEURIAL ASSISTANCE.
    Subdivision 1. Technical assistance. The commissioner of employment and economic
development shall make grants to nonprofit organizations to provide technical assistance to
individuals to support the startup and growth of self-employment and microbusinesses. Eligible
businesses are microenterprises employing under five people plus the owner and requiring under
$25,000 or no capital to start or expand the business.
    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;
(6) a demonstration of ability to collaborate with other agencies including educational and
financial institutions; and
(7) project goals identifying the number of eligible businesses to be assisted with the state
funds awarded under the grant.
    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.
History: 1997 c 200 art 1 s 55; 1999 c 223 art 2 s 26,27; 1Sp2003 c 4 s 1

116J.8747 JOB TRAINING PROGRAM GRANT.
    Subdivision 1. Grant allowed. The commissioner may provide a grant to a qualified job
training program from money appropriated for the purposes of this section as follows:
(1) a $9,000 placement grant paid to a job training program upon placement in employment
of a qualified graduate of the program; and
(2) a $9,000 retention grant paid to a job training program upon retention in employment of a
qualified graduate of the program for at least one year.
    Subd. 2. Qualified job training program. To qualify for grants under this section, a job
training program must satisfy the following requirements:
(1) the program must be operated by a nonprofit corporation that qualifies under section
501(c)(3) of the Internal Revenue Code;
(2) the program must spend at least $15,000 per graduate of the program;
(3) the program must provide education and training in:
(i) basic skills, such as reading, writing, mathematics, and communications;
(ii) thinking skills, such as reasoning, creative thinking, decision making, and problem
solving; and
(iii) personal qualities, such as responsibility, self-esteem, self-management, honesty, and
integrity;
(4) the program must provide income supplements, when needed, to participants for housing,
counseling, tuition, and other basic needs;
(5) the program's education and training course must last for an average of at least six months;
(6) individuals served by the program must:
(i) be 18 years of age or older;
(ii) have federal adjusted gross income of no more than $11,000 per year in the calendar
year immediately before entering the program;
(iii) have assets of no more than $7,000, excluding the value of a homestead; and
(iv) not have been claimed as a dependent on the federal tax return of another person in the
previous taxable year; and
(7) the program must be certified by the commissioner of employment and economic
development as meeting the requirements of this subdivision.
    Subd. 3. Graduation and retention grant requirements. For purposes of a placement grant
under this section, a qualified graduate is a graduate of a job training program qualifying under
subdivision 2 who is placed in a job in Minnesota that pays at least $9 per hour or its equivalent
plus health care benefits. To qualify for a retention grant under this section for a retention fee, a
job in which the graduate is retained must pay at least $10 per hour or its equivalent plus health
care benefits at the end of the first year of employment.
    Subd. 4. Duties of program. (a) A program certified by the commissioner under subdivision
2 must comply with the requirements of this subdivision.
(b) A program must maintain records for each qualified graduate. The records must include
information sufficient to verify the graduate's eligibility under this section, identify the employer,
and describe the job including its compensation rate and benefits.
(c) A program must report by January 1 of each year to the commissioner. The report must
include, at least, information on:
(1) the number of graduates placed;
(2) demographic information on the graduates;
(3) the type of position in which each graduate is placed, including compensation
information;
(4) the tenure of each graduate at the placed position or in other jobs;
(5) the amount of employer fees paid to the program;
(6) the amount of money raised by the program from other sources; and
(7) the types and sizes of employers with which graduates have been placed and retained.
History: 2003 c 128 art 13 s 20; 1Sp2003 c 4 s 1; 1Sp2005 c 1 art 4 s 22

116J.875 [Renumbered 116M.02]

116J.8755 [Repealed, 2001 c 200 s 4]

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 employment and
economic development.
    Subd. 6a. Community development venture capital fund. "Community development
venture capital fund" means a regional or local venture capital fund that makes equity investments
in small or emerging companies and has a financial as well as a social mission.
    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.
History: 1989 c 335 art 1 s 146; 2001 c 153 s 1; 1Sp2003 c 4 s 1

116J.8761 CAPITAL ACCESS PROGRAM; CREATION; ADMINISTRATION.
A capital access program is created in the Department of Employment 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. Capital may be
provided in the form of equity investments for community development venture capital funds or
loans for all other assistance under the program. 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.
History: 1989 c 335 art 1 s 147; 2001 c 153 s 2; 1Sp2003 c 4 s 1

116J.8762 COMMISSIONER; DUTIES.
    Subdivision 1. Duties. The commissioner must:
(1) with respect to loans:
(i) market the capital access program to businesses and other persons in the state in
cooperation with financial institutions and statewide associations representing financial
institutions;
(ii) 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
(iii) 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; and
(2) with respect to equity investments:
(i) market the program to businesses and community development venture capital funds; and
(ii) enter into appropriate contracts and agreements with community development venture
capital funds.
    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.
History: 1989 c 335 art 1 s 148; 2001 c 153 s 3

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.
History: 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. 2a. Enrollment of loans without commissioner's full premium payment. The
commissioner may continue to accept loans for enrollment into the program even if the amount of
funds contained in the account is zero or an amount less than the full amount that is required to be
transferred under section 116J.8765, subdivision 2, paragraph (a), (b), or (c).
    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.
History: 1989 c 335 art 1 s 150; 2003 c 128 art 13 s 21

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.
History: 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.
History: 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.
History: 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.
History: 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.
History: 1989 c 335 art 1 s 155

116J.8770 EQUITY INVESTMENTS.
The commissioner may invest funds from the capital access account to make equity
investments in community development venture capital funds for the purpose of providing capital
for small and emerging businesses. The community development venture capital fund must have
experience in equity investments with small businesses and the ability to raise private capital.
History: 2001 c 153 s 4

116J.8771 WAIVER.
The capital access program is exempt from section 16C.05, subdivision 2, paragraph (b).
History: 2001 c 153 s 5; 1Sp2003 c 1 art 2 s 64

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.885 BIOMEDICAL INNOVATION AND COMMERCIALIZATION INITIATIVE.
    Subdivision 1. Established. The commissioner of employment and economic development
shall establish the Biomedical Innovation and Commercialization Initiative (BICI) as a
collaborative economic development initiative between the University of Minnesota, Minnesota's
medical technology industry, and investors. BICI is not a state agency.
The board established in subdivision 2 shall organize and operate BICI as a for-profit entity
and in a manner and form that the board determines best allows BICI to carry out its objectives.
Any distribution from BICI must be returned to all investors, including the state, in the same
proportion as funds were contributed.
    Subd. 2. Board. BICI is governed by a board of directors, appointed to six-year terms,
comprised of:
(1) a representative chosen by the governor;
(2) a representative chosen by the University of Minnesota; and
(3) five representatives from the state's medical technology industry, chosen by private
sector investors.
The board may use up to five percent of its total capitalization to establish a management and
administrative budget, including the hiring of staff and for professional management expenses.
Members of the staff are not state employees.
    Subd. 3. Duties of BICI. BICI shall:
(1) add business and financial expertise to technologies that are being developed by
University of Minnesota faculty and staff to enhance commercial value;
(2) promote the depth, breadth, and value of technologies being developed by the biomedical
academic community;
(3) catalyze the development of functional, mutually advantageous relationships between
industry, faculty, staff, the university, and extended research community;
(4) provide a financial return on commercialization efforts to the stakeholders in BICI; and
(5) directly commercialize technologies through the startup of new Minnesota companies
or enhance the marketing of technologies to existing companies creating expanded economic
development opportunities.
    Subd. 4. Statewide focus. BICI may contract and collaborate with higher education and
other research institutions located throughout the state.
    Subd. 5. Powers of board. The board has the power to do all things reasonable and necessary
to carry out the duties of BICI including, without limitation, the power to:
(1) enter into contracts for goods and 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 for BICI; and
(6) delegate any of its powers.
    Subd. 6. Board compensation. Compensation and expense reimbursement of board
members is as provided in section 15.0575, subdivision 1.
History: 1Sp2001 c 5 art 19 s 1; 1Sp2003 c 4 s 1

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.941 [Repealed, 1987 c 316 s 4; 1989 c 335 art 1 s 270]

116J.942 [Repealed, 1987 c 316 s 4; 1989 c 335 art 1 s 270]

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, as may be amended or modified by, the United States Secretary of
Agriculture as provided in Public Law 499, 81st Congress, enacted May 3, 1950 and as allowed
under Laws 1987, chapter 386, article 1. Not more than three percent of the combined book value
of the Minnesota rural rehabilitation account and the regional revolving funds may be used for
administrative purposes in a year without approval of the United States Secretary of Agriculture.
Any funds used for administrative purposes may only be drawn from money remaining in the
Minnesota rural rehabilitation account.
    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 499, 81st Congress, May 3, 1950, is transferred to the commissioner.
History: 1985 c 254 s 2; 1987 c 386 art 1 s 1,2; 1989 c 335 art 4 s 49,50; 2003 c 128
art 13 s 22

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; and
    (12) 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 employment and economic
development and the Minnesota Trade Division may not duplicate programs and activities of the
commissioner of agriculture.
    (c) The commissioner shall notify the chairs of the senate Finance and house Ways and
Means Committees of each agreement under this subdivision to establish and maintain an office
or other type of representation in a foreign country.
    (d) The Minnesota Trade Office shall serve as the state's office of protocol providing
assistance to official visits by foreign government representatives and shall serve as liaison to
the foreign diplomatic corps in Minnesota.
    Subd. 2. Agricultural promotion. The commissioner of agriculture and the commissioner of
employment and economic development shall cooperate with each other to promote the beneficial
agricultural interests of the state. The commissioner of agriculture has primary responsibility for
promoting state agricultural interests to international markets. The commissioner of agriculture is
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 and international marketing of state agricultural products.
History: 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; 2000 c 260 s 17; 2003 c 128 art 13 s 23; 1Sp2003 c 4 s 1; 2004 c
206 s 22; 2004 c 228 art 1 s 27; 2004 c 284 art 2 s 12; 2007 c 135 art 2 s 11

116J.9665 [Repealed, 2003 c 128 art 13 s 40]

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

116J.9671 [Repealed, 2001 c 200 s 4]

116J.9672 [Repealed, 2002 c 380 art 2 s 21]

116J.9673 [Repealed, 2002 c 380 art 2 s 21]

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 Employment and Economic Development shall:
(1) be responsible for administering all state community development and assistance
programs, including the economic recovery account, 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, the Minnesota cleanup
revolving loan fund program created under the Brownfields Revitalization and Environmental
Restoration Act of 2001, Public Law 107-118, title II, under the authority of the United States
Environmental Protection Agency, and land and water conservation programs;
(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.[Repealed, 2001 c 200 s 4]
History: 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; 1Sp2003 c 4 s 1; 2004 c 206 s 23

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 employment 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 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 employment 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 363A.
(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 employment 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]
History: 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; 1Sp2003 c 4 s 1

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.
History: 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.
History: 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.
History: 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]
History: 1993 c 369 s 53

116J.991 [Repealed, 1999 c 243 art 12 s 4]

116J.992 [Repealed, 2001 c 200 s 4]

116J.993 DEFINITIONS.
    Subdivision 1. Scope. For the purposes of sections 116J.993 to 116J.995, the terms defined
in this section have the meanings given them.
    Subd. 2. Benefit date. "Benefit date" means the date that the recipient receives the business
subsidy. If the business subsidy involves the purchase, lease, or donation of physical equipment,
then the benefit date begins when the recipient puts the equipment into service. If the business
subsidy is for improvements to property, then the benefit date refers to the earliest date of either:
(1) when the improvements are finished for the entire project; or
(2) when a business occupies the property. If a business occupies the property and the
subsidy grantor expects that other businesses will also occupy the same property, the grantor may
assign a separate benefit date for each business when it first occupies the property.
    Subd. 3. Business subsidy. "Business subsidy" or "subsidy" means a state or local
government agency grant, contribution of personal property, real property, infrastructure, the
principal amount of a loan at rates below those commercially available to the recipient, any
reduction or deferral of any tax or any fee, any guarantee of any payment under any loan, lease, or
other obligation, or any preferential use of government facilities given to a business.
The following forms of financial assistance are not a business subsidy:
(1) a business subsidy of less than $25,000;
(2) assistance that is generally available to all businesses or to a general class of similar
businesses, such as a line of business, size, location, or similar general criteria;
(3) public improvements to buildings or lands owned by the state or local government
that serve a public purpose and do not principally benefit a single business or defined group of
businesses at the time the improvements are made;
(4) redevelopment property polluted by contaminants as defined in section 116J.552,
subdivision 3 ;
(5) assistance provided for the sole purpose of renovating old or decaying building stock
or bringing it up to code and assistance provided for designated historic preservation districts,
provided that the assistance is equal to or less than 50 percent of the total cost;
(6) assistance to provide job readiness and training services if the sole purpose of the
assistance is to provide those services;
(7) assistance for housing;
(8) assistance for pollution control or abatement, including assistance for a tax increment
financing hazardous substance subdistrict as defined under section 469.174, subdivision 23;
(9) assistance for energy conservation;
(10) tax reductions resulting from conformity with federal tax law;
(11) workers' compensation and unemployment insurance;
(12) benefits derived from regulation;
(13) indirect benefits derived from assistance to educational institutions;
(14) funds from bonds allocated under chapter 474A, bonds issued to refund outstanding
bonds, and bonds issued for the benefit of an organization described in section 501(c)(3) of the
Internal Revenue Code of 1986, as amended through December 31, 1999;
(15) assistance for a collaboration between a Minnesota higher education institution and a
business;
(16) assistance for a tax increment financing soils condition district as defined under section
469.174, subdivision 19;
(17) redevelopment when the recipient's investment in the purchase of the site and in site
preparation is 70 percent or more of the assessor's current year's estimated market value;
(18) general changes in tax increment financing law and other general tax law changes of a
principally technical nature;
(19) federal assistance until the assistance has been repaid to, and reinvested by, the state or
local government agency;
(20) funds from dock and wharf bonds issued by a seaway port authority;
(21) business loans and loan guarantees of $75,000 or less;
(22) federal loan funds provided through the United States Department of Commerce,
Economic Development Administration; and
(23) property tax abatements granted under section 469.1813 to property that is subject to
valuation under Minnesota Rules, chapter 8100.
    Subd. 4. Grantor. "Grantor" means any state or local government agency with the authority
to grant a business subsidy.
    Subd. 5. Local government agency. "Local government agency" includes a statutory or
home rule charter city, housing and redevelopment authority, town, county, port authority,
economic development authority, community development agency, nonprofit entity created by
a local government agency, or any other entity created by or authorized by a local government
with authority to provide business subsidies.
    Subd. 6. Recipient. "Recipient" means any for-profit or nonprofit business entity that
receives a business subsidy. Only nonprofit entities with at least 100 full-time equivalent positions
and with a ratio of highest to lowest paid employee, that exceeds ten to one, determined on the
basis of full-time equivalent positions, are included in this definition.
    Subd. 6a. Residence. "Residence" means the place where an individual has established a
permanent home from which the individual has no present intention of moving.
    Subd. 7. State government agency. "State government agency" means any state agency that
has the authority to award business subsidies.
History: 1999 c 243 art 12 s 1; 2000 c 482 s 1; 2004 c 206 s 52; 1Sp2005 c 3 art 7 s 1;
2006 c 259 art 4 s 1

116J.994 REGULATING LOCAL AND STATE BUSINESS SUBSIDIES.
    Subdivision 1. Public purpose. A business subsidy must meet a public purpose which may
include, but may not be limited to, increasing the tax base. Job retention may only be used as a
public purpose in cases where job loss is specific and demonstrable.
    Subd. 2. Developing a set of criteria. A business subsidy may not be granted until the
grantor has adopted criteria after a public hearing for awarding business subsidies that comply
with this section. The criteria may not be adopted on a case-by-case basis. The criteria must
set specific minimum requirements that recipients must meet in order to be eligible to receive
business subsidies. The criteria must include a specific wage floor for the wages to be paid for
the jobs created. The wage floor may be stated as a specific dollar amount or may be stated as
a formula that will generate a specific dollar amount. A grantor may deviate from its criteria
by documenting in writing the reason for the deviation and attaching a copy of the document
to its next annual report to the department. The commissioner of employment and economic
development may assist local government agencies in developing criteria. A copy of the criteria
must be submitted to the Department of Employment and Economic Development along with
the first annual report following the enactment of this section or with the first annual report after
it has adopted criteria, whichever is earlier.
    Subd. 3. Subsidy agreement. (a) A recipient must enter into a subsidy agreement with the
grantor of the subsidy that includes:
(1) a description of the subsidy, including the amount and type of subsidy, and type of
district if the subsidy is tax increment financing;
(2) a statement of the public purposes for the subsidy;
(3) measurable, specific, and tangible goals for the subsidy;
(4) a description of the financial obligation of the recipient if the goals are not met;
(5) a statement of why the subsidy is needed;
(6) a commitment to continue operations in the jurisdiction where the subsidy is used for at
least five years after the benefit date;
(7) the name and address of the parent corporation of the recipient, if any; and
(8) a list of all financial assistance by all grantors for the project.
(b) Business subsidies in the form of grants must be structured as forgivable loans. For
other types of business subsidies, the agreement must state the fair market value of the subsidy
to the recipient, including the value of conveying property at less than a fair market price, or
other in-kind benefits to the recipient.
(c) If a business subsidy benefits more than one recipient, the grantor must assign a
proportion of the business subsidy to each recipient that signs a subsidy agreement. The
proportion assessed to each recipient must reflect a reasonable estimate of the recipient's share
of the total benefits of the project.
(d) The state or local government agency and the recipient must both sign the subsidy
agreement and, if the grantor is a local government agency, the agreement must be approved by the
local elected governing body, except for the St. Paul Port Authority and a seaway port authority.
(e) Notwithstanding the provision in paragraph (a), clause (6), a recipient may be authorized
to move from the jurisdiction where the subsidy is used within the five-year period after the
benefit date if, after a public hearing, the grantor approves the recipient's request to move. For the
purpose of this paragraph, if the grantor is a state government agency other than the Iron Range
Resources and Rehabilitation Board, "jurisdiction" means a city or township.
    Subd. 4. Wage and job goals. The subsidy agreement, in addition to any other goals, must
include: (1) goals for the number of jobs created, which may include separate goals for the
number of part-time or full-time jobs, or, in cases where job loss is specific and demonstrable,
goals for the number of jobs retained; (2) wage goals for any jobs created or retained; and (3)
wage goals for any jobs to be enhanced through increased wages. After a public hearing, if the
creation or retention of jobs is determined not to be a goal, the wage and job goals may be set
at zero. The goals for the number of jobs to be created or retained must result in job creation or
retention by the recipient within the granting jurisdiction overall.
In addition to other specific goal time frames, the wage and job goals must contain specific
goals to be attained within two years of the benefit date.
    Subd. 5. Public notice and hearing. (a) Before granting a business subsidy that exceeds
$500,000 for a state government grantor and $100,000 for a local government grantor, the grantor
must provide public notice and a hearing on the subsidy. A public hearing and notice under this
subdivision is not required if a hearing and notice on the subsidy is otherwise required by law.
(b) Public notice of a proposed business subsidy under this subdivision by a state government
grantor, other than the Iron Range Resources and Rehabilitation Board, must be published in the
State Register. Public notice of a proposed business subsidy under this subdivision by a local
government grantor or the Iron Range Resources and Rehabilitation Board must be published in
a local newspaper of general circulation. The public notice must identify the location at which
information about the business subsidy, including a summary of the terms of the subsidy, is
available. Published notice should be sufficiently conspicuous in size and placement to distinguish
the notice from the surrounding text. The grantor must make the information available in printed
paper copies and, if possible, on the Internet. The government agency must provide at least a
ten-day notice for the public hearing.
(c) The public notice must include the date, time, and place of the hearing.
(d) The public hearing by a state government grantor other than the Iron Range Resources
and Rehabilitation Board must be held in St. Paul.
(e) If more than one nonstate grantor provides a business subsidy to the same recipient, the
nonstate grantors may designate one nonstate grantor to hold a single public hearing regarding the
business subsidies provided by all nonstate grantors. For the purposes of this paragraph, "nonstate
grantor" includes the iron range resources and rehabilitation board.
(f) The public notice of any public meeting about a business subsidy agreement, including
those required by this subdivision and by subdivision 4, must include notice that a person with
residence in or the owner of taxable property in the granting jurisdiction may file a written
complaint with the grantor if the grantor fails to comply with sections 116J.993 to 116J.995,
and that no action may be filed against the grantor for the failure to comply unless a written
complaint is filed.
    Subd. 6. Failure to meet goals. The subsidy agreement must specify the recipient's
obligation if the recipient does not fulfill the agreement. At a minimum, the agreement must
require a recipient failing to meet subsidy agreement goals to pay back the assistance plus interest
to the grantor or, at the grantor's option, to the account created under section 116J.551 provided
that repayment may be prorated to reflect partial fulfillment of goals. The interest rate must be
set at no less than the implicit price deflator for government consumption expenditures and
gross investment for state and local governments prepared by the Bureau of Economic Analysis
of the United States Department of Commerce for the 12-month period ending March 31 of the
previous year. The grantor, after a public hearing, may extend for up to one year the period for
meeting the wage and job goals under subdivision 4 provided in a subsidy agreement. A grantor
may extend the period for meeting other goals under subdivision 3, paragraph (a), clause (3),
by documenting in writing the reason for the extension and attaching a copy of the document
to its next annual report to the department.
A recipient that fails to meet the terms of a subsidy agreement may not receive a business
subsidy from any grantor for a period of five years from the date of failure or until a recipient
satisfies its repayment obligation under this subdivision, whichever occurs first.
Before a grantor signs a business subsidy agreement, the grantor must check with the
compilation and summary report required by this section to determine if the recipient is eligible to
receive a business subsidy.
    Subd. 7. Reports by recipients to grantors. (a) A business subsidy grantor must monitor
the progress by the recipient in achieving agreement goals.
(b) A recipient must provide information regarding goals and results for two years after the
benefit date or until the goals are met, whichever is later. If the goals are not met, the recipient
must continue to provide information on the subsidy until the subsidy is repaid. The information
must be filed on forms developed by the commissioner in cooperation with representatives of
local government. Copies of the completed forms must be sent to the local government agency
that provided the subsidy or to the commissioner if the grantor is a state agency. If the Iron Range
Resources and Rehabilitation Board is the grantor, the copies must be sent to the board. The
report must include:
(1) the type, public purpose, and amount of subsidies and type of district, if the subsidy
is tax increment financing;
(2) the hourly wage of each job created with separate bands of wages;
(3) the sum of the hourly wages and cost of health insurance provided by the employer with
separate bands of wages;
(4) the date the job and wage goals will be reached;
(5) a statement of goals identified in the subsidy agreement and an update on achievement
of those goals;
(6) the location of the recipient prior to receiving the business subsidy;
(7) the number of employees who ceased to be employed by the recipient when the recipient
relocated to become eligible for the business subsidy;
(8) why the recipient did not complete the project outlined in the subsidy agreement at their
previous location, if the recipient was previously located at another site in Minnesota;
(9) the name and address of the parent corporation of the recipient, if any;
(10) a list of all financial assistance by all grantors for the project; and
(11) other information the commissioner may request.
A report must be filed no later than March 1 of each year for the previous year. The local agency
and the Iron Range Resources and Rehabilitation Board must forward copies of the reports
received by recipients to the commissioner by April 1.
(c) Financial assistance that is excluded from the definition of "business subsidy" by section
116J.993, subdivision 3, clauses (4), (5), (8), and (16), is subject to the reporting requirements of
this subdivision, except that the report of the recipient must include instead:
(1) the type, public purpose, and amount of the financial assistance, and type of district
if the assistance is tax increment financing;
(2) progress towards meeting goals stated in the assistance agreement and the public purpose
of the assistance;
(3) if the agreement includes job creation, the hourly wage of each job created with separate
bands of wages;
(4) if the agreement includes job creation, the sum of the hourly wages and cost of health
insurance provided by the employer with separate bands of wages;
(5) the location of the recipient prior to receiving the assistance; and
(6) other information the grantor requests.
(d) If the recipient does not submit its report, the local government agency must mail the
recipient a warning within one week of the required filing date. If, after 14 days of the postmarked
date of the warning, the recipient fails to provide a report, the recipient must pay to the grantor a
penalty of $100 for each subsequent day until the report is filed. The maximum penalty shall not
exceed $1,000.
    Subd. 8. Reports by grantors. (a) Local government agencies of a local government with a
population of more than 2,500 and state government agencies, regardless of whether or not
they have awarded any business subsidies, must file a report by April 1 of each year with the
commissioner. Local government agencies of a local government with a population of 2,500 or
less are exempt from filing this report if they have not awarded a business subsidy in the past
five years. The report must include a list of recipients that did not complete the recipient report
required under subdivision 7 and a list of recipients that have not met their job and wage goals
within two years and the steps being taken to bring them into compliance or to recoup the subsidy.
If the commissioner has not received the report by April 1 from an entity required to report,
the commissioner shall issue a warning to the government agency. If the commissioner has still
not received the report by June 1 of that same year from an entity required to report, then that
government agency may not award any business subsidies until the report has been filed.
(b) The commissioner of employment and economic development must provide information
on reporting requirements to state and local government agencies.
    Subd. 9. Compilation and summary report. The Department of Employment and
Economic Development must publish a compilation and summary of the results of the reports
for the previous two calendar years by December 1 of 2004 and every other year thereafter. The
reports of the government agencies to the department and the compilation and summary report
of the department must be made available to the public. The commissioner must make copies
of all business subsidy reports submitted by local and state granting agencies available on the
department's Web site by October 1 of the year in which they were submitted.
The commissioner must coordinate the production of reports so that useful comparisons
across time periods and across grantors can be made. The commissioner may add other
information to the report as the commissioner deems necessary to evaluate business subsidies.
Among the information in the summary and compilation report, the commissioner must include:
(1) total amount of subsidies awarded in each development region of the state;
(2) distribution of business subsidy amounts by size of the business subsidy;
(3) distribution of business subsidy amounts by time category;
(4) distribution of subsidies by type and by public purpose;
(5) percent of all business subsidies that reached their goals;
(6) percent of business subsidies that did not reach their goals by two years from the benefit
date;
(7) total dollar amount of business subsidies that did not meet their goals after two years
from the benefit date;
(8) percent of subsidies that did not meet their goals and that did not receive repayment;
(9) list of recipients that have failed to meet the terms of a subsidy agreement in the past
five years and have not satisfied their repayment obligations;
(10) number of part-time and full-time jobs within separate bands of wages for the entire
state and for each development region of the state;
(11) benefits paid within separate bands of wages for the entire state and for each
development region of the state; and
(12) number of employees in the entire state and in each development region of the state
who ceased to be employed because their employers relocated to become eligible for a business
subsidy.
    Subd. 10. Compilation. The Department of Employment and Economic Development must
publish a compilation of granting agencies' criteria policies adopted in the previous two calendar
years by December 1 of 2004 and every other year thereafter.
    Subd. 11. Enforcement. (a) A person with residence in or an owner of taxable property
located in the jurisdiction of the grantor may bring an action for equitable relief arising out of
the failure of the grantor to comply with sections 116J.993 to 116J.995. The court may award a
prevailing party in an action under this subdivision costs and reasonable attorney fees.
(b) Prior to bringing an action, the party must file a written complaint with the grantor stating
the alleged violation and proposing a remedy. The grantor has up to 30 days to reply to the
complaint in writing and may take action to comply with sections 116J.993 to 116J.995.
(c) The written complaint under this subdivision for failure to comply with subdivisions 1 to
5, must be filed with the grantor within 180 days after approval of the subsidy agreement under
subdivision 3, paragraph (d). An action under this subdivision must be commenced within 30
days following receipt of the grantor's reply, or within 180 days after approval of the subsidy
agreement under subdivision 3, paragraph (d), whichever is later.
History: 1999 c 243 art 12 s 2; 2000 c 482 s 2-11; 2001 c 7 s 28; 2003 c 128 art 13 s 24-26;
1Sp2003 c 4 s 1; 2004 c 206 s 24,25; 1Sp2005 c 1 art 4 s 23,24; 1Sp2005 c 3 art 7 s 2-5

116J.995 ECONOMIC GRANTS.
An appropriation rider in an appropriation to the Department of Employment and Economic
Development that specifies that the appropriation be granted to a particular business or class of
businesses must contain a statement of the expected benefits associated with the grant. At a
minimum, the statement must include goals for the number of jobs created or enhanced, wages
paid, and the tax revenue increases due to the grant. The wage and job goals must contain specific
goals to be attained within two years of the benefit date. The statement must specify the recipient's
obligation if the recipient does not attain the goals. At a minimum, the statement must require
a recipient failing to meet the job and wage goals to pay back the assistance plus interest to
the Department of Employment and Economic Development provided that repayment may be
prorated to reflect partial fulfillment of goals. The interest rate must be set at no less than the
implicit price deflator as defined under section 116J.994, subdivision 6. The legislature, after a
public hearing, may extend for up to one year the period for meeting the goals provided in the
statement.
History: 1999 c 243 art 12 s 3; 2000 c 482 s 12; 2001 c 7 s 29; 2003 c 128 art 13 s 27;
1Sp2003 c 4 s 1