10-27-1999 Council Agenda - Laserfiche WebLink

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July 27, 1999 +.\, ESOr,1 Trade &— Economic Development To all Minnesota state and local government agencies: The 1999 Minnesota Legislature enacted a new law (Laws of Minnesota 1999, Chapter 243, Article 12; to be codified as Minn. Stat. §1167.993 to §116J.995) regulating business subsidies awarded on or after August 1. The 1999 law repeals its predecessor, Minn. Stat. §1167.991, and introduces new operating and reporting requirements. As the agency responsible for administering the state's business assistance reporting system, the Department of Trade and Economic Development (DTED) developed the accompanying fact sheet to help agencies understand how the law affects them. Several points on the fact sheet should be emphasized. Agencies should note that before signing any business subsidy agreements on or after August 1, 1999, they must adopt criteria that have been developed after a public hearing. The law allows agencies considerable flexibility in determining what these criteria are. For instance, while the law requires that each business subsidy agreement include wage and job goals and meet a stated public purpose, it places responsibility on individual agencies for developing specific criteria for awarding business subsidies. The law includes a detailed definition of business subsidies that are subject to administrative and reporting requirements. In addition, the law places different reporting requirements on four types of assistance that are not defined as business subsidies. Financial assistance requiring different reporting requirements include certain types of assistance for brownfields, building stock renovation, pollution control or abatement, and tax increment financing soils condition districts. Agencies awarding business subsidies or qualifying financial assistance are required to report yearly on their agreements to DTED, although agencies no longer need to report on agreements signed prior to August 1, 1999. The law also requires that local government agencies representing a population of 2,500 or more and state government agencies file reports even if they have not awarded any business subsidies. Local government agencies in communities with fewer than 2,500 people are exempt from reporting unless they have awarded a business subsidy in the past five years. As in the past, DTED will mail agencies the annual Minnesota Business Assistance Form in February, and agencies will have until April 1 to submit their reports. The form will also be made available on DTED's website this fall. Please note that the legislative author has agreed that recipients should continue reporting to the granting agency, not to DTED; it is the granting agency's responsibility to report to DTED. Statute language consistent with this process will be introduced during the 2000 legislative session. The accompanying fact sheet summarizes key elements in the law and provides sample public purposes and criteria which agencies may want to consider as they develop their own guidelines. Agencies should read the law for specific details. The fact sheet gives instructions for accessing the law on the Internet. Kind regards, 3d 5ikoe o Bob Isaacson Director, Analysis and Evaluation Office 500 Metro Square, 121 7i 651- 297 -1291 • 800 -657, RE0 PAGE 173 www.dted.state.mn.us a 55101 -2146 USA DD 800 - 627 -3529