1.1.................... moves to amend H.F. No. 1216 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2010, section 270C.11, is amended to read:
1.6    Subdivision 1. Statement of purpose. State governmental policy objectives
1.7are sought to be achieved both by direct expenditure of governmental funds and by
1.8the granting of Special and Selective tax relief or and tax expenditures. Both Direct
1.9expenditures of governmental funds and tax expenditures have an effect on the ability of
1.10the state and local governments to lower tax rates or to increase expenditures. As a result,
1.11tax expenditures should receive a regular and comprehensive review by the legislature
1.12as to (1) their total cost amount, (2) their effectiveness in achieving their objectives, (3)
1.13their effect on the fairness and equity of the distribution of the tax burden, and (4) the
1.14public and private sector cost of administering selective tax relief and tax expenditure
1.15financed programs expenditures. This section is intended to facilitate a regular review
1.16of the state and local selective tax relief and tax expenditure budget expenditures by the
1.17legislature by providing for the preparation of a regular biennial selective tax relief and tax
1.18expenditure budget report.
1.19    Subd. 2. Preparation; submission. The commissioner shall prepare a selective
1.20tax relief and tax expenditure budget report for the state. The selective tax relief and tax
1.21expenditure budget report shall be submitted to the legislature by February 1 of each
1.22even-numbered year.
1.23    Subd. 3. Period covered. The report shall include estimates of annual selective tax
1.24relief and tax expenditures for, at a minimum, a three-year period including the two-year
1.25period covered in the governor's budget submitted in the preceding January pursuant
1.26to section 16A.11.
2.1    Subd. 4. Contents. The report shall detail for each selective tax relief and tax
2.2expenditure item the amount of tax revenue forgone, the tax rate reduction possible if it
2.3were eliminated, a citation of the statutory or other legal authority for the selective tax
2.4relief or expenditure, and the year in which it was enacted or the tax year in which it
2.5became effective. The report may contain additional information which the commissioner
2.6considers relevant to the legislature's consideration and review of individual selective tax
2.7relief and tax expenditure items. This may include, but is not limited to, statements of
2.8the intended purpose of the selective tax relief or tax expenditure, analysis of whether the
2.9selective tax relief or expenditure is achieving that objective, the economic impact if it
2.10were eliminated, and the effect of the selective tax relief or expenditure device on the
2.11distribution of the tax burden and administration of the tax system.
2.12    Subd. 5. Revenue estimates; legislative bills. Upon reasonable notice from the
2.13chair of the house of representatives or senate tax committee that a bill is scheduled
2.14for hearing, the commissioner shall prepare an estimate of the effect on the state's tax
2.15revenues which would result from the passage of a legislative bill establishing, extending,
2.16or restricting a selective tax relief or a tax expenditure item. These revenue estimates
2.17shall contain the same information as provided in subdivision 4 for selective relief and
2.18expenditure items contained in the selective tax relief and tax expenditure budget report,
2.19as appropriate.
2.20    Subd. 6. Definitions. For purposes of this section, the following terms have the
2.21meanings given:
2.22(1) "selective tax expenditure relief" means a nonrefundable tax provision which
2.23provides a gross income definition, deduction, exemption, credit, or rate for certain
2.24persons, types of income, transactions, or property that results in reduced tax revenue; and
2.25(2) "tax expenditure" means a refundable tax provision which provides a gross
2.26income definition, deduction, exemption, credit, or rate for certain persons, types of
2.27income, transactions, or property that results in a refund in excess of tax liability to the
2.28claimant; and
2.29(2) (3) "tax" means any tax of statewide application or any tax authorized by state
2.30law to be levied by local governments generally. It does not include a special local tax
2.31levied pursuant to special law or to a special local tax levied pursuant to general authority
2.32that is no longer applicable to local governments generally.
2.33EFFECTIVE DATE.This section is effective the day following final enactment."
2.34Amend the title accordingly