1.1                          A bill for an act 
  1.2             relating to agriculture; authorizing family 
  1.3             agricultural revitalization zones (FARMZ); promoting 
  1.4             value-added processing agricultural products; amending 
  1.5             Minnesota Statutes 2003 Supplement, section 469.310, 
  1.6             by adding a subdivision; proposing coding for new law 
  1.7             in Minnesota Statutes, chapter 469. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.10  469.310, is amended by adding a subdivision to read: 
  1.11     Subd. 11a.  [QUALIFIED FARM.] "Qualified farm" means a 
  1.12  person actively engaged in farming, that invests in an 
  1.13  agricultural processing facility on the farm, and that: 
  1.14     (1) increases employment on the farm by a minimum of 25 
  1.15  percent of full-time employment in the first full year of 
  1.16  operation.  The employment may include family members; 
  1.17     (2) makes an investment equal to at least ten percent of 
  1.18  the previous years' gross revenue in the agricultural processing 
  1.19  facility; and 
  1.20     (3) enters into a binding written agreement with the 
  1.21  commissioner that: 
  1.22     (i) pledges the agricultural processing facility will meet 
  1.23  the requirements of clauses (1) and (2); and 
  1.24     (ii) provides the repayment of all tax benefits enumerated 
  1.25  under section 469.315 to the business under the procedures in 
  1.26  section 469.319, if the requirements of clauses (1) and (2) are 
  2.1   not met for the taxable year or for taxes payable during the 
  2.2   year in which the requirements are not met; and 
  2.3      (iii) contains any other terms the commissioner deems 
  2.4   appropriate. 
  2.5      <b>[EFFECTIVE DATE.]</b> This section is effective day following 
  2.6   final enactment. 
  2.7      Sec. 2.  [469.3141] [FAMILY AGRICULTURAL REVITALIZATION 
  2.8   ZONES.] 
  2.9      Subdivision 1.  [AUTHORITY TO DESIGNATE.] In addition to 
  2.10  the designations authorized under section 469.314, the 
  2.11  commissioner, in consultation with the commissioner of revenue, 
  2.12  may designate one or more family agricultural revitalization 
  2.13  zones for on-farm agricultural processing facility projects.  In 
  2.14  designating a zone, the commissioner shall consider the need for 
  2.15  tax incentives to make the project feasible and the likelihood 
  2.16  of success of the project.  The commissioner may designate a 
  2.17  zone at any time upon application for a qualifying project. 
  2.18     Subd. 2.  [QUALIFYING PROJECTS.] A qualifying project is 
  2.19  limited to the portion of a qualified farm that consists of the 
  2.20  agricultural processing facility.  The tax incentives under 
  2.21  section 469.315 do not extend to the rest of the farm. 
  2.22     Subd. 3.  [APPLICATION OF JOBZ RULES.] Except as otherwise 
  2.23  specifically provided in this section, sections 469.310 to 
  2.24  469.320 apply to family agricultural revitalization zones 
  2.25  designated under this section. 
  2.26     <b>[EFFECTIVE DATE.]</b> This section is effective day following 
  2.27  final enactment.