Senate Counsel, Research
and Fiscal Analysis
Minnesota Senate Bldg.
95 University Avenue W. Suite 3300
St. Paul, MN 55155
(651) 296-4791
Tom Bottern
Director
   Senate   
State of Minnesota
 
 
 
 
 
S.F. No. 1596 - Economic Development Incentive Programs Legislative Auditor Evaluation Requirement - the First Engrossment
 
Author: Senator Ann H. Rest
 
Prepared By: Stephanie James, Senate Counsel (651/296-0103)
 
Date: March 16, 2015



 

Section 1 [Evaluation of Economic Development Incentive Programs] requires the Legislative Auditor to evaluate certain general and exclusive incentives that are implemented to encourage businesses to locate, expand, invest, or remain in Minnesota.

Subdivision 1 [Definitions] defines “general incentives” and “exclusive incentives.”  A general incentive  is a state program; statutory provision; tax expenditure, including tax credits, tax exemptions, tax deductions, grants, or loans, that is intended to encourage businesses to locate, expand, invest, or remain in Minnesota or to hire or retain employees in Minnesota.  And exclusive incentive is intended to encourage a single specific entity, project, or associated projects to locate expand, invest, or remain in Minnesota or to hire or retain employees in Minnesota.

Subdivision 2 [Selection of general incentives for review; schedule for evaluation; report] establishes a process for the Legislative Audit Commission to select at least one general incentive annually for the Legislative Auditor’s evaluation.  The Legislative Auditor will evaluate the selected general incentive, using an evaluation plan developed by the Legislative Audit Commission, and submit a written report to the Legislative Audit Commission.

Subdivision 3 [Exclusive incentive schedule] requires the Legislative Auditor to complete an analysis of best practices for exclusive incentives once every four years.

Subdivision 4 [Evaluation plans] requires the Legislative Audit Commission to establish a plan that identifies the elements that the Legislative Auditor must include in an evaluation of general and exclusive incentives.

Section 2 [Audit Data] adds the legislative auditor’s evaluation of general and exclusive incentives to the list of things that are an “audit” for purposes of data classification.  Data relating to an audit is not public until the final report of the audit is released or the audit is no longer being pursued.  The data becomes public upon release of the audit report.

Section 3 [Consideration of General Incentives] requires the commissioner of management and budget to report evaluations of general incentives to the legislature in conjunction with the governor’s budget submission. The commissioner’s report must include a recommendation for whether an evaluated incentive should be continued or modified or whether the state would be better served by using other incentives or strategies to achieve the incentive’s goals.

Section 4 [Consideration of Best Practices for Exclusive Incentives] requires the Commissioner of Management and Budget to report evaluations of best practices for exclusive incentives to the legislature in conjunction with the Governor’s budget submission, including recommendations for when and how Minnesota should offer and manage exclusive incentives in the future and how they should be structured.

Section 5 [Appropriation] appropriates money from the general fund to the Office of the Legislative Auditor for purposes of section 1.

 
Check on the status of this bill
 
Back to Senate Counsel and Research Bill Summaries page
 

 
This page is maintained by the Office of Senate Counsel, Research, and Fiscal Analysis for the Minnesota Senate.
 
Last review or update: 03/16/2015
 
If you see any errors on this page, please e-mail us at webmaster@senate.mn