1.1 	A bill for an act
1.2 	relating to economic development; modifying provisions
1.3 	relating to job opportunity building zones and
1.4 	biotechnology and health sciences industry zone;
1.5 	amending Minnesota Statutes 2004, sections 272.02,
1.6 	subdivision 64; 289A.56, by adding a subdivision;
1.7 	297A.68, subdivisions 37, 38; 469.310, subdivision 11,
1.8 	by adding a subdivision; 469.316; 469.317; 469.319,
1.9 	subdivision 1, by adding a subdivision; 469.320,
1.10 	subdivision 3; 469.330, subdivision 11; 469.337;
1.11 	469.340, subdivision 1; repealing Minnesota Statutes
1.12 	2004, sections 272.02, subdivision 65; 477A.08.
1.13 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.14 	Section 1. Minnesota Statutes 2004, section 272.02,
1.15 	subdivision 64, is amended to read:
1.16 		Subd. 64.Job opportunity building zone property.  (a)
1.17 	Improvements to real property, and personal property, classified
1.18 	under section 273.13, subdivision 24, and located within a job
1.19 	opportunity building zone, designated under section 469.314, are
1.20 	exempt from ad valorem taxes levied under chapter 275.
1.21 	(b) Improvements to real property, and tangible personal
1.22 	property, of an agricultural production facility located within
1.23 	an agricultural processing facility zone, designated under
1.24 	section 469.314, is exempt from ad valorem taxes levied under
1.25 	chapter 275.
1.26 	(c) For property to qualify for exemption under paragraph
1.27 	(a), the occupant must be a qualified business, as defined in
1.28 	section 469.310.
1.29 	(d) The exemption applies beginning for the first
2.1 	assessment year after designation of the job opportunity
2.2 	building zone by the commissioner of employment and economic
2.3 	development.  The exemption applies to each assessment year that
2.4 	begins during the duration of the job opportunity building zone
2.5 	and to property .  To be exempt, the property must be occupied by
2.6 	July 1 of the assessment year by a qualified business that has
2.7 	signed the business subsidy agreement and relocation agreement,
2.8 	if required, by July 1 of the assessment year.  This exemption
2.9 	does not apply to:
2.10 	(1) the levy under section 475.61 or similar levy
2.11 	provisions under any other law to pay general obligation bonds;
2.12 	or
2.13 	(2) a levy under section 126C.17, if the levy was approved
2.14 	by the voters before the designation of the job opportunity
2.15 	building zone.
2.16 	
EFFECTIVE DATE. This section is effective for taxes
2.17 	payable in 2006 and thereafter.

2.18 	Sec. 2. Minnesota Statutes 2004, section 289A.56, is
2.19 	amended by adding a subdivision to read:
2.20 		Subd. 7.Biotechnology and health sciences industry zone
2.21 	refunds. Notwithstanding subdivision 3, for refunds payable
2.22 	under section 297A.68, subdivision 38, interest is computed from
2.23 	90 days after the refund claim is filed with the commissioner.
2.24 	
EFFECTIVE DATE. This section is effective for refund
2.25 	claims filed on or after July 1, 2005.

2.26 	Sec. 3. Minnesota Statutes 2004, section 297A.68,
2.27 	subdivision 37, is amended to read:
2.28 		Subd. 37.Job opportunity building zones.  (a) Purchases
2.29 	of tangible personal property or taxable services by a qualified
2.30 	business, as defined in section 469.310, are exempt if the
2.31 	property or services are primarily used or consumed in a job
2.32 	opportunity building zone designated under section 469.314.
2.33 	(b) Purchase and use of construction materials and ,
2.34 	supplies for , or equipment used or consumed in the construction
2.35 	of improvements to real property in a job opportunity building
2.36 	zone are exempt if the improvements after completion of
3.1 	construction are to be used in the conduct of a qualified
3.2 	business, as defined in section 469.310.  This exemption applies
3.3 	regardless of whether the purchases are made by the business or
3.4 	a contractor.
3.5 	(c) The exemptions under this subdivision apply to a local
3.6 	sales and use tax regardless of whether the local sales tax is
3.7 	imposed on the sales taxable as defined under this chapter.
3.8 	(d) This subdivision applies to sales, if the purchase was
3.9 	made and delivery received during the duration of the zone.
3.10 	(e) The lease of a motor vehicle by a qualified business,
3.11 	as defined in section 469.310, is exempt if the motor vehicle is
3.12 	principally garaged in the job opportunity building zone and is
3.13 	primarily used as part of or in direct support of the business's
3.14 	operations carried on in the job opportunity building zone.
3.15 	
EFFECTIVE DATE. This section is effective for leases
3.16 	entered into or sales made after December 31, 2003.

3.17 	Sec. 4. Minnesota Statutes 2004, section 297A.68,
3.18 	subdivision 38, is amended to read:
3.19 		Subd. 38.Biotechnology and health sciences industry
3.20 	zone.  (a) Purchases of tangible personal property or taxable
3.21 	services by a qualified business, as defined in section 469.330,
3.22 	are exempt if the property or services are primarily used or
3.23 	consumed in a biotechnology and health sciences industry zone
3.24 	designated under section 469.334.
3.25 	(b) Purchase and use of construction materials and ,
3.26 	supplies for , or equipment used or consumed in the construction
3.27 	of improvements to real property in a biotechnology and health
3.28 	sciences industry zone are exempt if the improvements after
3.29 	completion of construction are to be used in the conduct of a
3.30 	qualified business, as defined in section 469.330.  This
3.31 	exemption applies regardless of whether the purchases are made
3.32 	by the business or a contractor.
3.33 	(c) The exemptions under this subdivision apply to a local
3.34 	sales and use tax regardless of whether the local sales tax is
3.35 	imposed on the sales taxable as defined under this chapter.
3.36 	(d)(1) The tax on sales of goods or services exempted under
4.1 	this subdivision are imposed and collected as if the applicable
4.2 	rate under section 297A.62 applied.  Upon application by the
4.3 	purchaser, on forms prescribed by the commissioner, a refund
4.4 	equal to the tax paid must be paid to the purchaser.  The
4.5 	application must include sufficient information to permit the
4.6 	commissioner to verify the sales tax paid and the eligibility of
4.7 	the claimant to receive the credit.  No more than two
4.8 	applications for refunds may be filed under this subdivision in
4.9 	a calendar year.  The provisions of section 289A.40 apply to the
4.10 	refunds payable under this subdivision.
4.11 	(2) The amount required to make the refunds is annually
4.12 	appropriated to the commissioner of revenue.
4.13 	(3) The aggregate amount refunded to a qualified business
4.14 	must not exceed the amount allocated to the qualified business
4.15 	under section 469.335.
4.16 	(e) This subdivision applies only to sales made during the
4.17 	duration of the designation of the zone.
4.18 	
EFFECTIVE DATE. This section is effective for sales made
4.19 	after December 31, 2003.

4.20 	Sec. 5. Minnesota Statutes 2004, section 469.310,
4.21 	subdivision 11, is amended to read:
4.22 		Subd. 11.Qualified business.  (a) "Qualified business"
4.23 	means A person carrying on a trade or business at a place of
4.24 	business located within a job opportunity building zone is a
4.25 	qualified business for the purposes of sections 469.310 to
4.26 	469.320 according to the criteria in paragraphs (b) to (f).
4.27 	(b) A person is a qualified business only on those parcels
4.28 	of land for which the person has entered into a business subsidy
4.29 	agreement, as required under section 469.313, with the
4.30 	appropriate local government unit in which the parcels are
4.31 	located.
4.32 	(c) Prior to execution of the business subsidy agreement,
4.33 	the local government unit must consider the following factors:
4.34 	(1) how wages plus benefits compare to 110 percent of the
4.35 	statewide poverty rate for a family of four;
4.36 	(2) how wages compare to the regional industry average;
5.1 	(3) the number of jobs that will be provided relative to
5.2 	overall employment in the community;
5.3 	(4) the economic outlook for the industry the business will
5.4 	engage in;
5.5 	(5) sales that will be generated from outside the state of
5.6 	Minnesota;
5.7 	(6) how the business will build on existing regional
5.8 	strengths or diversify the regional economy;
5.9 	(7) how the business will increase capital investment in
5.10 	the zone; and 
5.11 	(8) any other criteria the commissioner deems necessary.
5.12 	(b) (d) A person that relocates a trade or business from
5.13 	outside a job opportunity building zone into a zone is not a
5.14 	qualified business,unless the business meets all of the
5.15 	requirements of paragraphs (b) and (c) and:
5.16 	(1) (i) increases full-time employment in the first full
5.17 	year of operation within the job opportunity building zone by at
5.18 	least a minimum of five jobs or 20 percent, whichever is
5.19 	greater,measured relative to the operations that were relocated
5.20 	and maintains the required level of employment for each year the
5.21 	zone designation applies; or 
5.22 	(ii) makes a capital investment in the property located
5.23 	within a zone equivalent to ten percent of the gross revenues of
5.24 	operation that were relocated in the immediately preceding
5.25 	taxable year;and
5.26 	(2) enters a binding written agreement with the
5.27 	commissioner that:
5.28 	(i) pledges the business will meet the requirements of
5.29 	clause (1);
5.30 	(ii) provides for repayment of all tax benefits enumerated
5.31 	under section 469.315 to the business under the procedures in
5.32 	section 469.319, if the requirements of clause (1) are not met
5.33 	for the taxable year or for taxes payable during the year in
5.34 	which the requirements were not met; and
5.35 	(iii) contains any other terms the commissioner determines
5.36 	appropriate.
6.1 	(e) The commissioner may waive the requirements under
6.2 	paragraph (d), clause (1), if the commissioner determines that
6.3 	the qualified business will substantially achieve the factors
6.4 	under this subdivision.
6.5 	(f) A business is not a qualified business if, at its
6.6 	location or locations in the zone, the business is primarily
6.7 	engaged in making retail sales to purchasers who are physically
6.8 	present at the business's zone location.
6.9 	
EFFECTIVE DATE. This section is effective the day
6.10 	following final enactment and applies to any business entering a
6.11 	business subsidy agreement for a job opportunity development
6.12 	zone after that date, except that paragraph (b) is effective
6.13 	retroactively from June 9, 2003.

6.14 	Sec. 6. Minnesota Statutes 2004, section 469.310, is
6.15 	amended by adding a subdivision to read:
6.16 		Subd. 13.Relocation payroll percentage. "Relocation
6.17 	payroll percentage" is a fraction, the numerator of which is the
6.18 	zone payroll of the business for the tax year minus the payroll
6.19 	from the relocated operations in the last full year of
6.20 	operations prior to the relocation, and the denominator of which
6.21 	is the zone payroll of the business for the tax year.  The
6.22 	relocation payroll percentage of a business that is not a
6.23 	relocating business is 100 percent.
6.24 	
EFFECTIVE DATE. This section is effective the day
6.25 	following final enactment but applies only to qualified
6.26 	businesses with business subsidy agreements that are fully
6.27 	executed after June 30, 2005.

6.28 	Sec. 7. Minnesota Statutes 2004, section 469.316, is
6.29 	amended to read:
6.30 	469.316 INDIVIDUAL INCOME TAX EXEMPTION.
6.31 		Subdivision 1.Application. An individual, estate, or
6.32 	trust operating a trade or business in a job opportunity
6.33 	building zone, and an individual, estate, or trust making a
6.34 	qualifying investment in a qualified business operating in a job
6.35 	opportunity building zone qualifies for the exemptions from
6.36 	taxes imposed under chapter 290, as provided in this section.
7.1 	The exemptions provided under this section apply only to the
7.2 	extent that the income otherwise would be taxable under chapter
7.3 	290.  Subtractions under this section from federal taxable
7.4 	income, alternative minimum taxable income, or any other base
7.5 	subject to tax are limited to the amount that otherwise would be
7.6 	included in the tax base absent the exemption under this
7.7 	section.  This section applies only to taxable years beginning
7.8 	during the duration of the job opportunity building zone.
7.9 		Subd. 2.Rents. An individual, estate, or trust is
7.10 	exempt from the taxes imposed under chapter 290 on net rents
7.11 	derived from real or tangible personal property used by a
7.12 	qualified business and located in a zone for a taxable year in
7.13 	which the zone was designated a job opportunity building zone.
7.14 	If tangible personal property was used both within and outside
7.15 	of the zone by the qualified business, the exemption amount for
7.16 	the net rental income must be multiplied by a fraction, the
7.17 	numerator of which is the number of days the property was used
7.18 	in the zone and the denominator of which is the total days the
7.19 	property is rented by the qualified business.
7.20 		Subd. 3.Business income. An individual, estate, or
7.21 	trust is exempt from the taxes imposed under chapter 290 on net
7.22 	income from the operation of a qualified business in a job
7.23 	opportunity building zone.  If the trade or business is carried
7.24 	on within and without the zone and the individual is not a
7.25 	resident of Minnesota, or the taxpayer is an estate or trust,
7.26 	the exemption must be apportioned based on the zone percentage
7.27 	and the relocation payroll percentage for the taxable year.  If
7.28 	the trade or business is carried on within and without the zone
7.29 	and the individual is a resident of Minnesota, the exemption
7.30 	must be apportioned based on the zone percentage and the
7.31 	relocation payroll percentage for the taxable year, except the
7.32 	ratios under section 469.310, subdivision 7, clause (1), items
7.33 	(i) and (ii), must use the denominators of the property and
7.34 	payroll factors determined under section 290.191.  No
7.35 	subtraction is allowed under this section in excess of 20
7.36 	percent of the sum of the job opportunity building zone payroll
8.1 	and the adjusted basis of the property at the time that the
8.2 	property is first used in the job opportunity building zone by
8.3 	the business.
8.4 		Subd. 4.Capital gains. (a) An individual, estate, or
8.5 	trust is exempt from the taxes imposed under chapter 290 on:
8.6 	(1) net gain derived on a sale or exchange of real property
8.7 	located in the zone and used by a qualified business.  If the
8.8 	property was held by the individual, estate, or trust during a
8.9 	period when the zone was not designated, the gain must be
8.10 	prorated based on the percentage of time, measured in calendar
8.11 	days, that the real property was held by the individual, estate,
8.12 	or trust during the period the zone designation was in effect to
8.13 	the total period of time the real property was held by the
8.14 	individual;
8.15 	(2) net gain derived on a sale or exchange of tangible
8.16 	personal property used by a qualified business in the zone.  If
8.17 	the property was held by the individual, estate, or trust during
8.18 	a period when the zone was not designated, the gain must be
8.19 	prorated based on the percentage of time, measured in calendar
8.20 	days, that the property was held by the individual, estate, or
8.21 	trust during the period the zone designation was in effect to
8.22 	the total period of time the property was held by the
8.23 	individual.  If the tangible personal property was used outside
8.24 	of the zone during the period of the zone's designation, the
8.25 	exemption must be multiplied by a fraction, the numerator of
8.26 	which is the number of days the property was used in the zone
8.27 	during the time of the designation and the denominator of which
8.28 	is the total days the property was held during the time of the
8.29 	designation; and
8.30 	(3) net gain derived on a sale of an ownership interest in
8.31 	a qualified business operating in the job opportunity building
8.32 	zone, meeting the requirements of paragraph (b).  The exemption
8.33 	on the gain must be multiplied by the zone percentage of the
8.34 	business for the taxable year prior to the sale.
8.35 	(b) A qualified business meets the requirements of
8.36 	paragraph (a), clause (3), if it is a corporation, an S
9.1 	corporation, or a partnership, and for the taxable year its job
9.2 	opportunity building zone percentage exceeds 25 percent.  For
9.3 	purposes of paragraph (a), clause (3), the zone percentage must
9.4 	be calculated by modifying the ratios under section 469.310,
9.5 	subdivision 7, clause (1), items (i) and (ii), to use the
9.6 	denominators of the property and payroll factors determined
9.7 	under section 290.191.  Upon the request of an individual,
9.8 	estate, or trust holding an ownership interest in the entity,
9.9 	the entity must certify to the owner, in writing, the job
9.10 	opportunity building zone percentage needed to determine the
9.11 	exemption.
9.12 	
EFFECTIVE DATE. This section is effective for tax years
9.13 	beginning after December 31, 2003, except that changes in
9.14 	subdivision 3 relating to the relocation payroll percentage are
9.15 	effective the day following final enactment and apply only to
9.16 	qualified businesses with business subsidy agreements that are
9.17 	fully executed after June 30, 2005.

9.18 	Sec. 8. Minnesota Statutes 2004, section 469.317, is
9.19 	amended to read:
9.20 	469.317 CORPORATE FRANCHISE TAX EXEMPTION.
9.21 	(a) A qualified business is exempt from taxation under
9.22 	section 290.02, the alternative minimum tax under section
9.23 	290.0921, and the minimum fee under section 290.0922, on the
9.24 	portion of its income attributable to operations within the
9.25 	zone.  This exemption is determined as follows:
9.26 	(1) for purposes of the tax imposed under section 290.02,
9.27 	by multiplying its taxable net income by its zone percentage and
9.28 	by its relocation payroll percentage and subtracting the result
9.29 	in determining taxable income;
9.30 	(2) for purposes of the alternative minimum tax under
9.31 	section 290.0921, by multiplying its alternative minimum taxable
9.32 	income by its zone percentage and by its relocation payroll
9.33 	percentage and reducing alternative minimum taxable income by
9.34 	this amount; and
9.35 	(3) for purposes of the minimum fee under section 290.0922,
9.36 	by excluding property and payroll in the zone from the
10.1 	computations of the fee or by exempting the entity under section
10.2 	290.0922, subdivision 2, clause (7).
10.3 	(b) No subtraction is allowed under this section in excess
10.4 	of 20 percent of the sum of the corporation's job opportunity
10.5 	building zone payroll and the adjusted basis of the property at
10.6 	the time that the property is first used in the job opportunity
10.7 	building zone by the corporation.
10.8 	(c) This section applies only to taxable years beginning
10.9 	during the duration of the job opportunity building zone.

10.10 	EFFECTIVE DATE. This section is effective the day
10.11 	following final enactment but applies only to qualified
10.12 	businesses with business subsidy agreements that are fully
10.13 	executed after June 30, 2005.

10.14 	Sec. 9. Minnesota Statutes 2004, section 469.319,
10.15 	subdivision 1, is amended to read:
10.16 		Subdivision 1.Repayment obligation.  A business must
10.17 	repay the amount of the total tax reduction listed in section
10.18 	469.315 and any refund under section 469.318 in excess of tax
10.19 	liability, received during the two years immediately before it
10.20 	ceased to operate in the zone, if the business:
10.21 	(1) received tax reductions authorized by section 469.315;
10.22 	and
10.23 	(2)(i) did not meet the goals specified in an agreement
10.24 	entered into with the applicant that states any obligation the
10.25 	qualified business must fulfill in order to be eligible for tax
10.26 	benefits.  The commissioner of employment and economic
10.27 	development may extend for up to one year the period for meeting
10.28 	any goals provided in an agreement.  The applicant may extend
10.29 	the period for meeting other goals by documenting in writing the
10.30 	reason for the extension and attaching a copy of the document to
10.31 	its next annual report to the commissioner of employment and
10.32 	economic development; or
10.33 	(ii) ceased to operate its facility located within the job
10.34 	opportunity building zone or otherwise ceases to be or is not a
10.35 	qualified business.
10.36 	
EFFECTIVE DATE. This section is effective the day
11.1 	following final enactment.

11.2 	Sec. 10. Minnesota Statutes 2004, section 469.319, is
11.3 	amended by adding a subdivision to read:
11.4 		Subd. 6.Reconciliation. Where this section is
11.5 	inconsistent with section 116J.994, subdivision 3, paragraph
11.6 	(e), or 6, or any other provisions of sections 116J.993 to
11.7 	116J.995, this section prevails.
11.8 	
EFFECTIVE DATE. This section is effective the day
11.9 	following final enactment.

11.10 	Sec. 11. Minnesota Statutes 2004, section 469.320,
11.11 	subdivision 3, is amended to read:
11.12 		Subd. 3.Remedies.  If the commissioner determines, based
11.13 	on a report filed under subdivision 1 or other available
11.14 	information, that a zone or subzone is failing to meet its
11.15 	performance goals, the commissioner may take any actions the
11.16 	commissioner determines appropriate, including modification of
11.17 	the boundaries of the zone or a subzone or termination of the
11.18 	zone or a subzone.  Before taking any action, the commissioner
11.19 	shall consult with the applicant and the affected local
11.20 	government units, including notifying them of the proposed
11.21 	actions to be taken. The commissioner shall publish any order
11.22 	modifying a zone in the State Register and on the Internet.The
11.23 	applicant may appeal the commissioner's order under the
11.24 	contested case procedures of chapter 14.
11.25 	
EFFECTIVE DATE. This section is effective the day
11.26 	following final enactment.

11.27 	Sec. 12. Minnesota Statutes 2004, section 469.330,
11.28 	subdivision 11, is amended to read:
11.29 		Subd. 11.Qualified business.  (a) "Qualified business"
11.30 	means a person carrying on a trade or business at a
11.31 	biotechnology and health sciences industry facility located
11.32 	within a biotechnology and health sciences industry zone. A
11.33 	person is a qualified business only on those parcels of land for
11.34 	which it has entered into a business subsidy agreement, as
11.35 	required under section 469.333, with the appropriate local
11.36 	government unit in which the parcels are located.
12.1 	(b) A person that relocates a biotechnology and health
12.2 	sciences industry facility from outside a biotechnology and
12.3 	health sciences industry zone into a zone is not a qualified
12.4 	business, unless the business:
12.5 	(1)(i) increases full-time employment in the first full
12.6 	year of operation within the biotechnology and health sciences
12.7 	industry zone by at least 20 percent measured relative to the
12.8 	operations that were relocated and maintains the required level
12.9 	of employment for each year the zone designation applies; or
12.10 	(ii) makes a capital investment in the property located
12.11 	within a zone equivalent to ten percent of the gross revenues of
12.12 	operation that were relocated in the immediately preceding
12.13 	taxable year; and
12.14 	(2) enters a binding written agreement with the
12.15 	commissioner that:
12.16 	(i) pledges the business will meet the requirements of
12.17 	clause (1);
12.18 	(ii) provides for repayment of all tax benefits enumerated
12.19 	under section 469.336 to the business under the procedures in
12.20 	section 469.340, if the requirements of clause (1) are not met;
12.21 	and
12.22 	(iii) contains any other terms the commissioner determines
12.23 	appropriate.
12.24 	
EFFECTIVE DATE. This section is effective retroactively
12.25 	from June 9, 2003.

12.26 	Sec. 13. Minnesota Statutes 2004, section 469.337, is
12.27 	amended to read:
12.28 	469.337 CORPORATE FRANCHISE TAX EXEMPTION.
12.29 	(a) A qualified business is exempt from taxation under
12.30 	section 290.02, the alternative minimum tax under section
12.31 	290.0921, and the minimum fee under section 290.0922, on the
12.32 	portion of its income attributable to operations of a qualified
12.33 	business within the biotechnology and health sciences industry
12.34 	zone.  This exemption is determined as follows:
12.35 	(1) for purposes of the tax imposed under section 290.02,
12.36 	by multiplying its taxable net income by its zone percentage and
13.1 	subtracting the result in determining taxable income;
13.2 	(2) for purposes of the alternative minimum tax under
13.3 	section 290.0921, by multiplying its alternative minimum taxable
13.4 	income by its zone percentage and reducing alternative minimum
13.5 	taxable income by this amount; and
13.6 	(3) for purposes of the minimum fee under section 290.0922,
13.7 	by excluding zone property and payroll in the zone from the
13.8 	computations of the fee. The qualified business is exempt from
13.9 	the minimum fee if all of its property is located in the zone
13.10 	and all of its payroll is zone payroll.
13.11 	(b) No subtraction is allowed under this section in excess
13.12 	of 20 percent of the sum of the corporation's biotechnology and
13.13 	health sciences industry zone payroll and the adjusted basis of
13.14 	the property at the time that the property is first used in the
13.15 	biotechnology and health sciences industry zone by the
13.16 	corporation.
13.17 	(c) No reduction in tax is allowed in excess of the amount
13.18 	allocated under section 469.335.

13.19 	EFFECTIVE DATE. This section is effective for tax years
13.20 	beginning after December 31, 2003.

13.21 	Sec. 14. Minnesota Statutes 2004, section 469.340,
13.22 	subdivision 1, is amended to read:
13.23 		Subdivision 1.Repayment obligation.  A business must
13.24 	repay the amount of the tax reduction listed in section 469.336
13.25 	and any refunds under sections 469.338 and 469.339 in excess of
13.26 	tax liability, received during the two years immediately before
13.27 	it ceased to operate in the zone, if the business:
13.28 	(1) received tax reductions authorized by section 469.336;
13.29 	and
13.30 	(2)(i) did not meet the goals specified in an agreement
13.31 	entered into with the applicant that states any obligation the
13.32 	qualified business must fulfill in order to be eligible for tax
13.33 	benefits.  The commissioner of employment and economic
13.34 	development may extend for up to one year the period for meeting
13.35 	any goals provided in an agreement.  The applicant may extend
13.36 	the period for meeting other goals by documenting in writing the
14.1 	reason for the extension and attaching a copy of the document to
14.2 	its next annual report to the commissioner of employment and
14.3 	economic development; or
14.4 	(ii) ceased to operate its facility located within the
14.5 	biotechnology and health sciences industry zone or otherwise
14.6 	ceases to be or is not a qualified business.
14.7 	
EFFECTIVE DATE. This section is effective the day
14.8 	following final enactment.

14.9 	Sec. 15. REVISOR'S INSTRUCTION.
 14.10 	The revisor shall renumber Minnesota Statutes, section
14.11 	469.310, subdivision 11, as section 469.3135, and insert the
14.12 	following definition of "qualified business" in Minnesota
14.13 	Statutes, section 469.310:  "'Qualified business' means the
14.14 	entity described in section 469.3135." 

14.15 	Sec. 16. REPEALER.
 14.16 	Minnesota Statutes 2004, sections 272.02, subdivision 65;
14.17 	and 477A.08, are repealed.

14.18 	EFFECTIVE DATE. The repeal of section 272.02, subdivision
14.19 	65, is effective for taxes payable in 2006 and thereafter.  The
14.20 	repeal of section 477A.08 is effective for aid payable in 2005
14.21 	and thereafter.