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S.F. No. 1 - Job Creation Bill
 
Author: Senator Geoff Michel
 
Prepared By: Carlon D. Fontaine, Senate Counsel (651/296-4395)
 
Date: January 18, 2011



 
ARTICLE 1.  BUSINESS TAXATION
 
Section 1 (Levy amount) freezes the dollar amount of the state general levy at $717.1 million for commercial-industrial property and $39.8 million for seasonal recreational property for taxes payable in 2012 and thereafter. Under current law, the state levy amounts are adjusted annually according to the increase in the Implicit Price Deflator for expenditures by state and local government.  Under current law, the state general levy would be $764.2 million for commercial-industrial property and $40.2 million for seasonal recreational property for taxes payable in 2012. 
 
Section 2 (Apportionment of state general tax) strikes the apportionment of the state general levy between commercial-industrial and seasonal properties.  Under current law, 95 percent of the state levy is allocated to commercial-industrial property and five percent to seasonal recreational properties. The apportionment is no longer needed because the amounts of the levy will be frozen going forward. 
 
Sections 1 and 2 are effective for taxes levied in 2011, payable in 2012 and after.
 
Section 3 (Computation, corporations) reduces the corporate franchise tax rate from 9.8 percent to 4.9 percent over a period of six years between tax years 2012 and 2017. The corporate tax rate is first reduced to 8.8 percent in tax year 2012, and then is reduced between 0.5 percent to 1.0 percent per each year until tax year 2017.  In tax year 2017, the rate is reduced to 4.9 percent. 
 
Section 4 (Tax imposed) reduces the rate of the alternative minimum tax (AMT) from 5.8 percent to 2.9 percent over a period of six years between tax years 2012 and 2017. 
 
Sections 3 and 4 are effective for taxable years beginning after December 31, 2010.
 
ARTICLE 2.  ENVIRONMENTAL PERMITTING AND REVIEW
 
Section 1 (Permitting efficiency) adds a subdivision to Minnesota Statutes, section 84.027 relating to the powers and duties of the Commissioner of the Department of Natural Resources (DNR).
 
Paragraph (a) establishes a permitting goal of issuing or denying permits within 150 days of submission of a completed application. Requires creation of management systems to help meet the goal.
 
Paragraph (b) requires the commissioner to prepare semiannual permitting efficiency reports due February 1 and August 1 each year. Requires additional report detail for permit applications that have not been issued or denied within 150 days. Requires the report to be posted on the DNR Web site and submitted to the governor and the legislature.
 
Paragraph (c) allows electronic submission of environmental review and permit documents.
 
Section 2 [Violations and prohibitions] subdivision 1 (Obtain permit) allows the Pollution Control Agency (PCA) to waive submission of plans and specifications for initial construction, installation, or operation of a disposal system, including discharges that require both a national pollutant discharge elimination system permit (NPDES) and state disposal system permit (excludes construction storm water permits – Minn. Rule 7090.2010).   
 
Subdivision 3 (Permission for extension) allows the PCA to waive submission of plans and specifications for changes or extensions to existing systems or point sources, including discharges that require both a national pollutant discharge elimination system permit (NPDES) and state disposal system permit (excludes construction storm water permits).  
 
Section 3 (Permitting efficiency) adds a new subdivision to section 116.03 relating to the PCA.
 
Paragraph (a) establishes a permitting goal of issuing or denying permits within 150 days of submission of a completed application.  Requires creation of management systems to help meet the goal.
 
Paragraph (b) requires the commissioner to prepare semiannual permitting efficiency reports due February 1 and August 1 each year.  Requires additional report detail for permit applications that have not been issued or denied within 150 days.  Requires the report to be posted on the PCA Web site and submitted to the governor and legislature.
 
Paragraph (c) allows electronic submission of environmental review and permit documents.
 
Section 4 (Adoption of standards) for rulemaking involving air quality, hazardous waste, or water quality rules that are more stringent than the federal standards, requires documentation of the reason for the stricter standard and a comparison to requirements in bordering states.
 
Section 5 (Final decisions) reduces the number of days for final decisions to be made for a required permit from 90 days to 30 days following final approval of an environmental impact statement.
 
Section 6 (Review) allows the Court of Appeals to review decisions on the need for an environmental assessment worksheet, the need for an environmental impact statement, and the adequacy of an environmental impact statement.
 
Section 7 (Assessment) requires rulemaking by the Environmental Quality Board to authorize a proposer to prepare a draft environmental impact statement for submission and review by the responsible governmental unit.
 
Section 8 (Use of assessment) allows a responsible governmental unit to assess a project proposer for reasonable costs as necessary for the preparation, review, and distribution of an environmental impact statement.
 
Section 9 [Rule amendment] requires the PCA commissioner to amend Minnesota Rules to comply with section 2 of the bill regarding the ability to waive submission of plans and specifications for discharge permits and extensions.  Allows the commissioner to use the good cause exemption to adopt the rule amendment.
 
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