"      Section 1. That § 1-16G-3 be amended to read as follows:

     1-16G-3.   There is established in the state treasury a special revenue fund to be known as the revolving economic development and initiative fund for the purpose of making grants and loans for economic development.

     Section 2. That § 1-16G-5 be amended to read as follows:

     1-16G-5.   Funds used from the revolving economic development and initiative fund shall be available for matching on a one-to-one basis pursuant to rules as hereinafter provided. The Board of Economic Development may waive the matching requirement by a two-thirds vote of the members. Any repayment of loans made and any interest thereon shall be receipted into the revolving economic development and initiative fund and all money in the fund is hereby appropriated for the purposes of making grants and loans as provided in §§ 1-16G-3 to 1-16G-11, inclusive. The Board of Economic Development may promulgate rules pursuant to chapter 1-26, to make grants and loans from the revolving economic development and initiative fund, and may establish criteria for the qualification, application, payment, and repayment of funds for such projects.

     Section 3. That § 1-16G-8 be amended to read as follows:

     1-16G-8.   The Board of Economic Development shall promulgate rules concerning , but not limited to, the following:

applicant, job descriptions with attendant salary or wage information by job category, educational requirements by job category, methods of accounting, financing other than that provided by the economic development loan, marketing, sales, merchandising and other disciplines proposed to be used for business growth and expansion;

     1-16G-8.1.   For the purposes of §§ 1-16G-8.1 to 1-16G-8.3, inclusive, the term, capital investment entity, means a for-profit or non- profit investment entity or vehicle that intends to invest as an owner in businesses for the purpose of achieving return on investment through royalties, profit, growth, or otherwise.

     Section 5. That § 1-16G-8.2 be repealed.

     1-16G-8.2.   In addition to the loans authorized in §§ 1-16G-5 and 1-16G-8, the Board of Economic Development may make loans from the revolving economic development and initiative fund to capital investment entities. The loans shall be for the purpose of facilitating investment by capital investment entities in new businesses in this state and to facilitate the expansion or relocation of businesses in this state in order to promote economic development in this state. The total amount of such loans may not exceed twelve million dollars.

     Section 6. That § 1-16G-8.3 be repealed.

     1-16G-8.3.   The Board of Economic Development may promulgate, pursuant to chapter 1-26, rules to:

     1-16G-9.   The Board of Economic Development may designate "enterprise zones" and may, by rule, authorize loan participation of up to seventy-five percent in those enterprise zones. The term "enterprise zones" means any area of a first or second class municipality or county which has a continuous boundary; is an area of pervasive poverty, unemployment and economic distress; is an area in which the average rate of unemployment for the most recent eighteen-month period for the area, for which data are available, was at least one and one-half times the average national rate of unemployment for such eighteen-month period; is an area in which at least seventy percent of the residents living in the area have incomes below seventy percent of the median income of the income of the state; is an area in which the population of all census tracts in the county decreased by twenty percent or more between the two most recent decennial United States' census; and, the first or second class municipality or county in which the proposed zone is located establishes that either chronic abandonment or demolition of commercial or residential structures exist in the area or that substantial delinquencies relating to ad valorem real property taxes of commercial or residential structures exists in the area.

     Section 8. That § 1-16G-10 be amended to read as follows:

     1-16G-10.   The Board of Economic Development shall prepare an annual report by the first day of October November of each year detailing the activities of the board and the terms and conditions of any grants and loans made, including the current status of outstanding loans.

     Section 9. That § 1-16G-11 be amended to read as follows:

     1-16G-11.   Any documentary material or data made or received by the Board of Economic Development or Governor's Office of Economic Development for the purpose of furnishing assistance to a business, to the extent that such material or data consists of trade secrets or commercial or financial information regarding the operation of such business, may not be considered public records is not a public record , and is exempt from disclosure pursuant to the provisions of §§ 1-16G-3 to 1-16G-11, inclusive. Any discussion, consideration of, or action upon such trade secrets or commercial or financial information by the Board of Economic Development may shall be done in executive session closed to the public, notwithstanding the provisions of the open meeting laws of this state.

     1-16G-24.   Earnings on the revolving economic development and initiative fund , the South Dakota entrepreneur program, the value added tourism subfund, and the value added agriculture subfund may be used for the administrative costs of the Division of Finance of the Governor's Office of Economic Development. Such earnings shall be expended in accordance with the provisions of Title 4 on warrants drawn by the state auditor on vouchers approved by the secretary of tourism and state development. Eligible expenses may not exceed total interest earnings during the previous fiscal year prior to the deduction of loan losses for the same fiscal year.

     Section 11. That § 1-16G-29 be repealed.

     1-16G-29.   There is created within the revolving economic development and initiative fund, created in § 1-16G-3, the value added tourism subfund. The purpose of the subfund is to make grants or loans for tourism development, feasibility studies, or marketing.

     Section 12. That § 1-16G-30 be repealed.

     1-16G-30.   For purposes of §§ 1-16G-24 and 1-16G-29 to 1-16G-33, inclusive, the term, value added tourism, means the development of new or underused tourism-related activities, sites, or destinations that use historical, cultural, scenic, wildlife, or other resources so that new tourists or visitors are drawn to South Dakota or so that current classes and types of tourists or visitors lengthen their stay in South Dakota or pursue additional activities or destinations during their stay.

     Section 13. That § 1-16G-31 be repealed.

     1-16G-31.   The Board of Economic Development shall designate three million dollars of the money in the revolving economic development and initiative fund for the purposes of the value added tourism subfund.

     Section 14. That § 1-16G-32 be repealed.

     1-16G-32.   The Board of Economic Development shall administer the value added tourism subfund and make grants or loans from the value added tourism subfund. The value added tourism subfund shall be used to develop and promote value added tourism in South Dakota.

     Section 15. That § 1-16G-33 be repealed.

     1-16G-33.   In connection with the administration of the value added tourism subfund, the Board of Economic Development may, pursuant to chapter 1-26, promulgate rules to:

     1-16G-34.   There is hereby created within the revolving economic development and initiative fund, created in § 1-16G-3, the South Dakota entrepreneur support program. The purpose of the program is to make loans to South Dakota entrepreneurs and South Dakota start-up businesses to develop and promote new business activity and to create employment in the state.

     Section 17. That § 1-16G-35 be repealed.

     1-16G-35.   For purposes of §§ 1-16G-34 to 1-16G-39, inclusive, the term, start-up business, means any new business venture in the technology, communications, service, or manufacturing sector.

     Section 18. That § 1-16G-36 be repealed.

     1-16G-36.   The Board of Economic Development shall designate up to three million dollars of the money in the revolving economic development and initiative fund for the purposes of the South Dakota entrepreneur support program.

     Section 19. That § 1-16G-37 be repealed.

     1-16G-37.   The Board of Economic Development shall administer the South Dakota entrepreneur support program and make loans under the following terms:

     1-16G-38.   An applicant for a loan pursuant to §§ 1-16G-34 to 1-16G-39, inclusive, shall meet the following criteria:

     1-16G-39.   In connection with the administration of the South Dakota entrepreneur support program, the Board of Economic Development may, pursuant to chapter 1-26, promulgate rules to:

" Act to " and insert "allow for grants from the revolving economic development and initiative fund, to revise certain provisions concerning the making of grants and loans from the revolving economic development and initiative fund, and to repeal the capital investment entity program, the value-added tourism subfund and the entrepreneur support program. ".