Bill Text: MN HF3254 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Border city allocations modified, study and report mandated on North Dakota oil production and economic impacts in Minnesota, and money appropriated.
Spectrum: Slight Partisan Bill (Democrat 4-2)
Status: (Introduced - Dead) 2014-03-27 - Committee report, to adopt as amended and re-refer to Taxes [HF3254 Detail]
Download: Minnesota-2013-HF3254-Engrossed.html
1.2relating to economic development; modifying border city allocations; mandating
1.3a study and report on North Dakota oil production and economic impacts
1.4in Minnesota; appropriating money;amending Minnesota Statutes 2013
1.5Supplement, section 469.169, subdivision 19.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2013 Supplement, section 469.169, subdivision 19,
1.8is amended to read:
1.9 Subd. 19. Additional border city allocation; 2013. (a) In addition to the tax
1.10reductions authorized in subdivisions 12 to 18, the commissioner shall allocate $750,000
1.11for tax reductions to border city enterprise zones in cities located on the western border
1.12of the state. The commissioner shall allocate this amount among cities on a per capita
1.13basis. Allocations made under this subdivision may be used for tax reductions under
1.14section469.171 , or for other offsets of taxes imposed on or remitted by businesses located
1.15in the enterprise zone, but only if the municipality determines that the granting of the tax
1.16reduction or offset is necessary to retain a business within or attract a business to the zone.
1.17The city alternatively may elect to use any portion of the allocation under this paragraph
1.18for tax reductions under section469.1732 or
469.1734 .
1.19 (b) The commissioner shall allocate $750,000 for tax reductions under section
1.20469.1732
or
469.1734 to cities with border city enterprise zones located on the western
1.21border of the state. The commissioner shall allocate this amount among the cities on a per
1.22capita basis. The city alternatively may elect to use any portion of the allocation provided
1.23in this paragraph for tax reductions under section469.171 .
1.24(c) On April 1, 2015, the commissioner shall cancel an amount of the allocations
1.25under paragraphs (a) and (b) to the general fund in an amount sufficient to equal the
2.1expenditures made by the commissioner under the appropriation in section 2. The
2.2cancellation must be apportioned equally between the allocations under paragraphs (a)
2.3and (b) and distributed among the border cities on a per capita basis.
2.4EFFECTIVE DATE.This section is effective the day following final enactment.
2.5 Sec. 2. STUDY OF NORTH DAKOTA OIL PRODUCTION; IMPACT ON
2.6MINNESOTA.
2.7(a) $150,000 in fiscal year 2014 is appropriated from the general fund to the
2.8commissioner of employment and economic development, in consultation with the
2.9commissioner of revenue, to finance a study and analysis of the effects of current and
2.10projected oil production in North Dakota on the Minnesota economy with special focus on
2.11the northwestern region of Minnesota and area border cities as provided in paragraph (b).
2.12(b) The study and analysis must address:
2.13(1) current and projected economic, fiscal, and demographic effects and issues;
2.14(2) direct and indirect costs and benefits;
2.15(3) positive and negative effects; and
2.16(4) economic challenges and opportunities for economic growth or diversification.
2.17(c) The study must be objective, evidence-based, and designed to produce empirical
2.18data. Study data must be utilized to formulate policy recommendations on how the state,
2.19the northwestern region of the state, and border cities may respond to the challenges and
2.20opportunities for economic growth and financial investment that may be derived from the
2.21regional economic changes that are the result of oil production in North Dakota.
2.22(d) For the purposes of this section, "border cities" has the meaning given in
2.23Minnesota Statutes, section 469.1731.
2.24(e) The study and analysis must be conducted by an independent entity with
2.25demonstrated knowledge in the following areas:
2.26(1) the economy and demography of Minnesota;
2.27(2) the domestic and foreign oil industry; and
2.28(3) technologies, markets, and geopolitical factors that have an impact on current
2.29and future oil production in the region.
2.30(f) The commissioner shall report on the findings and recommendations of the study
2.31to the committees of the house of representatives and senate having jurisdiction over
2.32economic development and workforce issues by February 15, 2015.
2.33(g) Any amount of the appropriation under paragraph (a) that remains unexpended
2.34on March 31, 2015, lapses and is canceled to the general fund on that date.
3.1EFFECTIVE DATE.This section is effective the day following final enactment.
1.3a study and report on North Dakota oil production and economic impacts
1.4in Minnesota; appropriating money;amending Minnesota Statutes 2013
1.5Supplement, section 469.169, subdivision 19.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2013 Supplement, section 469.169, subdivision 19,
1.8is amended to read:
1.9 Subd. 19. Additional border city allocation; 2013. (a) In addition to the tax
1.10reductions authorized in subdivisions 12 to 18, the commissioner shall allocate $750,000
1.11for tax reductions to border city enterprise zones in cities located on the western border
1.12of the state. The commissioner shall allocate this amount among cities on a per capita
1.13basis. Allocations made under this subdivision may be used for tax reductions under
1.14section
1.15in the enterprise zone, but only if the municipality determines that the granting of the tax
1.16reduction or offset is necessary to retain a business within or attract a business to the zone.
1.17The city alternatively may elect to use any portion of the allocation under this paragraph
1.18for tax reductions under section
1.19 (b) The commissioner shall allocate $750,000 for tax reductions under section
1.21border of the state. The commissioner shall allocate this amount among the cities on a per
1.22capita basis. The city alternatively may elect to use any portion of the allocation provided
1.23in this paragraph for tax reductions under section
1.24(c) On April 1, 2015, the commissioner shall cancel an amount of the allocations
1.25under paragraphs (a) and (b) to the general fund in an amount sufficient to equal the
2.1expenditures made by the commissioner under the appropriation in section 2. The
2.2cancellation must be apportioned equally between the allocations under paragraphs (a)
2.3and (b) and distributed among the border cities on a per capita basis.
2.4EFFECTIVE DATE.This section is effective the day following final enactment.
2.5 Sec. 2. STUDY OF NORTH DAKOTA OIL PRODUCTION; IMPACT ON
2.6MINNESOTA.
2.7(a) $150,000 in fiscal year 2014 is appropriated from the general fund to the
2.8commissioner of employment and economic development, in consultation with the
2.9commissioner of revenue, to finance a study and analysis of the effects of current and
2.10projected oil production in North Dakota on the Minnesota economy with special focus on
2.11the northwestern region of Minnesota and area border cities as provided in paragraph (b).
2.12(b) The study and analysis must address:
2.13(1) current and projected economic, fiscal, and demographic effects and issues;
2.14(2) direct and indirect costs and benefits;
2.15(3) positive and negative effects; and
2.16(4) economic challenges and opportunities for economic growth or diversification.
2.17(c) The study must be objective, evidence-based, and designed to produce empirical
2.18data. Study data must be utilized to formulate policy recommendations on how the state,
2.19the northwestern region of the state, and border cities may respond to the challenges and
2.20opportunities for economic growth and financial investment that may be derived from the
2.21regional economic changes that are the result of oil production in North Dakota.
2.22(d) For the purposes of this section, "border cities" has the meaning given in
2.23Minnesota Statutes, section 469.1731.
2.24(e) The study and analysis must be conducted by an independent entity with
2.25demonstrated knowledge in the following areas:
2.26(1) the economy and demography of Minnesota;
2.27(2) the domestic and foreign oil industry; and
2.28(3) technologies, markets, and geopolitical factors that have an impact on current
2.29and future oil production in the region.
2.30(f) The commissioner shall report on the findings and recommendations of the study
2.31to the committees of the house of representatives and senate having jurisdiction over
2.32economic development and workforce issues by February 15, 2015.
2.33(g) Any amount of the appropriation under paragraph (a) that remains unexpended
2.34on March 31, 2015, lapses and is canceled to the general fund on that date.
3.1EFFECTIVE DATE.This section is effective the day following final enactment.
