1.1 A bill for an act
1.2 relating to economic development; regulating
1.3 eligibility for unemployment compensation benefits;
1.4 providing for a special assessment for interest on
1.5 federal loans; providing for extended unemployment
1.6 compensation benefits; providing for unemployment
1.7 insurance taxes; providing extra benefits for airline
1.8 industry, Fingerhut Companies, Inc., and Farmland
1.9 Foods Company; appropriating certain federal funds for
1.10 unemployment administration; providing for workforce
1.11 development fund transfers; making housekeeping
1.12 changes related to the department of trade and
1.13 economic development; repealing certain authority
1.14 given to city of Chisago relating to annexation
1.15 arguments; prohibiting employers from charging certain
1.16 expenses to employees; regulating redevelopment
1.17 grants; allowing foster parents to take certain
1.18 leaves; providing certain youth employment to
1.19 construct early childhood program facilities;
1.20 reinstating a repealed law; providing unemployment
1.21 benefits to certain employees doing food service
1.22 contract work for school districts; requiring a study
1.23 on unemployment trust fund solvency by the
1.24 unemployment insurance advisory council; amending
1.25 Minnesota Statutes 2000, sections 48.24, subdivision
1.26 5; 116J.565, subdivision 1; 116J.58, subdivision 1;
1.27 116J.9665, subdivisions 1, 4, 6; 116M.14, subdivision
1.28 4; 116M.18, subdivisions 2, 3, 4, 4a, 5, 8, by adding
1.29 a subdivision; 119A.45; 181.9412, by adding a
1.30 subdivision; 268.051, subdivision 8; 270B.14,
1.31 subdivision 8; 298.22, subdivision 7, by adding a
1.32 subdivision; 446A.07, subdivision 4; 446A.12,
1.33 subdivision 1; Minnesota Statutes 2001 Supplement,
1.34 section 116L.17, subdivision 5; Laws 2001, First
1.35 Special Session chapter 4, article 1, section 2,
1.36 subdivision 5; proposing coding for new law in
1.37 Minnesota Statutes, chapter 181; repealing Minnesota
1.38 Statutes 2000, sections 116J.9672; 116J.9673; Laws
1.39 2001, First Special Session chapter 5, article 3,
1.40 section 88.
1.41 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.42 ARTICLE 1
1.43 UNEMPLOYMENT INSURANCE
2.1 Section 1. Minnesota Statutes 2000, section 268.051,
2.2 subdivision 8, is amended to read:
2.3 Subd. 8. [SOLVENCY SPECIAL ASSESSMENT FOR INTEREST ON
2.4 FEDERAL LOAN.] (a) If the fund balance is less than $150,000,000
2.5 on June 30 October 31 of any year, the commissioner, in
2.6 consultation with the commissioner of finance, determines that
2.7 an interest payment will be due during the following calendar
2.8 year on any loan from the federal unemployment trust fund under
2.9 section 268.194, subdivision 6, a solvency special assessment on
2.10 taxpaying employers will be in effect for the following calendar
2.11 year. The taxpaying employer shall pay quarterly a solvency The
2.12 legislature authorizes the commissioner, in consultation with
2.13 the commissioner of finance, to determine the appropriate level
2.14 of the assessment, of ten from two percent to eight percent of
2.15 the quarterly unemployment taxes due, that will be necessary to
2.16 pay the interest due on the loan.
2.17 (b) The solvency special assessment shall be placed into a
2.18 special account from which the commissioner shall pay any
2.19 interest accruing that has accrued on any loan from the federal
2.20 unemployment trust fund provided for under section 268.194,
2.21 subdivision 6. If, at the end of each calendar quarter, the
2.22 commissioner, in consultation with the commissioner of finance,
2.23 determines that the balance in this special account, including
2.24 interest earned on the special account, is more than is
2.25 necessary to pay the interest which has accrued on any loan as
2.26 of that date, or will accrue over the following calendar
2.27 quarter, the commissioner shall immediately pay to the fund the
2.28 amount in excess of that necessary to pay the interest on any
2.29 loan.
2.30 [EFFECTIVE DATE.] This section is effective the day
2.31 following final enactment.
2.32 Sec. 2. Minnesota Statutes 2000, section 270B.14,
2.33 subdivision 8, is amended to read:
2.34 Subd. 8. [EXCHANGE BETWEEN DEPARTMENTS OF LABOR AND
2.35 INDUSTRY AND REVENUE.] The departments of labor and industry and
2.36 revenue may exchange information as follows:
3.1 (1) data used in determining whether a business is an
3.2 employer or a contracting agent;
3.3 (2) taxpayer identity information relating to employers and
3.4 employees for purposes of supporting tax administration and
3.5 chapter chapters 176, 177, and 181; and
3.6 (3) data to the extent provided in and for the purpose set
3.7 out in section 176.181, subdivision 8.
3.8 Sec. 3. [UNEMPLOYMENT INSURANCE; FOOD SERVICES.]
3.9 Notwithstanding the provisions of Minnesota Statutes,
3.10 section 268.085, subdivision 8, wage credits from an employer
3.11 are not subject to the provisions of Minnesota Statutes, section
3.12 268.085, subdivision 7, if those wage credits were earned by an
3.13 employee of a private employer performing work pursuant to a
3.14 contract between the employer and an elementary or secondary
3.15 school and the employment was related to food services provided
3.16 to the school by the employer. This section expires December
3.17 31, 2004.
3.18 [EFFECTIVE DATE.] This section is effective the day
3.19 following final enactment.
3.20 Sec. 4. [2003 UNEMPLOYMENT INSURANCE BASE TAX RATE.]
3.21 Notwithstanding Minnesota Statutes, section 268.051,
3.22 subdivision 2, and Laws 2001, First Special Session chapter 2,
3.23 article 2, section 32, subdivision 2, the unemployment insurance
3.24 base tax rate for employers is 0.38 percent for calendar year
3.25 2003.
3.26 Sec. 5. [EXTRA UNEMPLOYMENT BENEFITS.]
3.27 Subdivision 1. [AVAILABILITY.] Extra unemployment benefits
3.28 are available to an applicant who was permanently laid off due
3.29 to lack of work if:
3.30 (1) the applicant was laid off from the Farmland Foods
3.31 Company in Freeborn county on or after July 8, 2001;
3.32 (2) the applicant was laid off by Fingerhut Companies,
3.33 Incorporated on or after January 1, 2002, and worked at one of
3.34 that employer's facilities in the St. Cloud, Eveleth, or Mora
3.35 areas; or
3.36 (3) the applicant was laid off by Northwest Airlines, Sun
4.1 Country Airlines, Mesaba Airlines, United Airlines, LSG Sky
4.2 Chefs, Air Wisconsin, American Airlines, American TransAir,
4.3 Champion Air, Chautaugua Airlines, Continental Airlines, Emery
4.4 Worldwide Air, Great Lakes Airlines, PanAm International, Skyway
4.5 Airlines, or U.S. Airways on or after September 11, 2001, and
4.6 before June 1, 2002.
4.7 Subd. 2. [PAYMENT FROM FUND; EFFECT ON EMPLOYER.] Extra
4.8 benefits under this section are payable from the fund.
4.9 Subd. 3. [ELIGIBILITY CONDITIONS.] An applicant described
4.10 in subdivision 1 is eligible to collect benefits for any week
4.11 through December 31, 2003, if:
4.12 (1) a majority of the applicant's wage credits were with
4.13 the employer responsible for the layoff described in subdivision
4.14 1;
4.15 (2) the applicant meets the eligibility requirements of
4.16 Minnesota Statutes, section 268.085;
4.17 (3) the applicant is not subject to a disqualification
4.18 under Minnesota Statutes, section 268.095;
4.19 (4) the applicant is not entitled to any regular,
4.20 additional, or extended unemployment benefits for that week and
4.21 the applicant is not entitled to receive unemployment benefits
4.22 under any other state or federal law or the law of Canada for
4.23 that week; and
4.24 (5) the applicant is enrolled in, or has within the last
4.25 two weeks successfully completed, a program that qualifies as
4.26 reemployment assistance training under the state dislocated
4.27 worker program, except that an applicant whose training is
4.28 scheduled to begin in more than 30 days may be considered to be
4.29 in training if:
4.30 (i) the applicant's chosen training program does not offer
4.31 an available start date within 30 days;
4.32 (ii) the applicant is scheduled to begin training on the
4.33 earliest available start date for the chosen training program;
4.34 and
4.35 (iii) the applicant is scheduled to begin training in no
4.36 more than 60 days.
5.1 If an applicant qualifies for a new regular benefit account
5.2 at any time after exhausting regular unemployment benefits as a
5.3 result of the layoff under subdivision 1, the applicant must
5.4 apply for and exhaust entitlement to those new regular or any
5.5 other type of unemployment benefits under any state or federal
5.6 law.
5.7 Subd. 4. [WEEKLY AMOUNT OF EXTRA BENEFITS.] The weekly
5.8 unemployment extra benefits amount available to an applicant
5.9 under this section is the same as the applicant's regular weekly
5.10 benefit amount on the benefit account established as a result of
5.11 the layoff under subdivision 1.
5.12 Subd. 5. [MAXIMUM AMOUNT OF EXTRA UNEMPLOYMENT
5.13 BENEFITS.] The maximum amount of extra unemployment benefits
5.14 available is 13 times the applicant's weekly extra unemployment
5.15 benefit amount.
5.16 Subd. 6. [PROGRAM EXPIRATION.] This extra unemployment
5.17 benefit program expires December 31, 2003. No extra
5.18 unemployment benefits shall be paid under this section after the
5.19 expiration of this program.
5.20 Subd. 7. [EFFECTIVE DATE.] This section is effective the
5.21 day following final enactment and is effective retroactive to
5.22 June 1, 2001.
5.23 Sec. 6. [FINDINGS.]
5.24 The legislature finds that the extra benefits provided to
5.25 workers in this act are appropriate because the affected
5.26 employees or their employers meet one of the following criteria:
5.27 (a) Benefit extensions may be appropriate where:
5.28 (1) taking into consideration the effect of the layoff
5.29 affecting the applicant, the unemployment rate in the
5.30 applicant's county of employment is higher than the statewide
5.31 average rate of unemployment;
5.32 (2) the employer involved in the layoff has permanently
5.33 ceased operations at the location where the employee worked;
5.34 (3) the community or communities in which the employees
5.35 worked is disproportionately affected by the layoff; and
5.36 (4) the community or communities in which the affected
6.1 employees live is in a remote location where opportunities for
6.2 reemployment are limited.
6.3 (b) Benefit extensions may be appropriate in some cases
6.4 where the affected employees were part of layoffs that resulted
6.5 from an act of war or terrorism.
6.6 Sec. 7. [PAYMENT OF SPECIAL STATE TEMPORARY EXTENDED
6.7 UNEMPLOYMENT BENEFITS.]
6.8 Subdivision 1. [ELIGIBILITY.] Special state temporary
6.9 extended unemployment benefits shall be paid to an applicant who
6.10 does not qualify for unemployment benefits under the federal
6.11 Temporary Extended Unemployment Compensation Act of 2002 because
6.12 the applicant does not meet the requirement under section
6.13 202(d)(2)(A) of that act. Special state extended unemployment
6.14 benefits shall be paid to individuals who have established a
6.15 benefit account effective on or after March 19, 2000, under the
6.16 same terms and conditions as apply to federal temporary extended
6.17 unemployment compensation. An applicant may not receive more
6.18 than a combined total of 13 times the applicant's weekly benefit
6.19 amount available under the federal Temporary Extended
6.20 Unemployment Compensation Act and this section.
6.21 Subd. 2. [PAYMENT FROM THE FUND; EFFECT ON
6.22 EMPLOYER.] Special state temporary extended unemployment
6.23 benefits shall be paid from the Minnesota unemployment insurance
6.24 program trust fund. Special state temporary extended
6.25 unemployment benefits paid shall not be used in computing the
6.26 future unemployment tax rate of a taxpaying employer nor charged
6.27 to the reimbursing account of a government or nonprofit employer.
6.28 Subd. 3. [EXPIRATION.] This program expires December 28,
6.29 2002. No payments under this section shall be paid for any week
6.30 after the expiration date.
6.31 [EFFECTIVE DATE.] This section is effective the day
6.32 following final enactment and is retroactive to March 10, 2002.
6.33 Sec. 8. [ADVISORY COUNCIL REPORT TRUST FUND SOLVENCY.]
6.34 The unemployment insurance advisory council shall present
6.35 to the legislature, by January 15, 2003, a report, including
6.36 proposals for any legislation, on the long-term solvency of the
7.1 Minnesota unemployment insurance program trust fund.
7.2 Sec. 9. [REED ACT FEDERAL FUNDS APPROPRIATION.]
7.3 $12,000,000 of the approximately $163,000,000 of federal
7.4 "Reed Act" money transferred to the state of Minnesota on March
7.5 13, 2002, pursuant to section 209 of the Temporary Extended
7.6 Unemployment Compensation Act of 2002, is appropriated from the
7.7 unemployment insurance program trust fund to the commissioner of
7.8 economic security for unemployment insurance program
7.9 administration. The amount appropriated must be transferred to
7.10 the appropriate account used to pay unemployment insurance
7.11 program administration costs.
7.12 [EFFECTIVE DATE.] This section is effective July 1, 2002.
7.13 Sec. 10. [WORKFORCE DEVELOPMENT FUND TRANSFERS.]
7.14 Notwithstanding Laws 2001, First Special Session chapter 4,
7.15 article 2, sections 31 and 32, the amount actually collected in
7.16 calendar years 2002 and 2003, to a maximum of $12,000,000, net
7.17 of collection costs, and otherwise required to be deposited in
7.18 the unemployment insurance technology initiative account by
7.19 those sections shall be deposited into the workforce development
7.20 fund created under Minnesota Statutes, section 268.022.
7.21 [EFFECTIVE DATE.] This section is effective the day
7.22 following final enactment and retroactive to January 1, 2002.
7.23 Sec. 11. [TRANSFERS.]
7.24 (a) On or before July 15, 2002, the commissioner of finance
7.25 shall transfer $89,000 from the general fund to the workforce
7.26 development fund.
7.27 (b) After July 16, 2002, but on or before July 15, 2003,
7.28 the commissioner of finance shall transfer $1,069,000 from the
7.29 general fund to the workforce development fund.
7.30 (c) After July 16, 2003, but on or before July 15, 2004,
7.31 the commissioner of finance shall transfer $1,069,000 from the
7.32 general fund to the workforce development fund.
7.33 ARTICLE 2
7.34 TRADE AND ECONOMIC DEVELOPMENT
7.35 Section 1. Minnesota Statutes 2000, section 48.24,
7.36 subdivision 5, is amended to read:
8.1 Subd. 5. Loans or obligations shall not be subject under
8.2 this section to any limitation based upon such capital and
8.3 surplus to the extent that they are secured or covered by
8.4 guarantees, or by commitments or agreements to take over or to
8.5 purchase the same, made by:
8.6 (1) the commissioner of agriculture on the purchase of
8.7 agricultural land;
8.8 (2) any Federal Reserve bank;
8.9 (3) the United States or any department, bureau, board,
8.10 commission, or establishment of the United States, including any
8.11 corporation wholly owned directly or indirectly by the United
8.12 States;
8.13 (4) the Minnesota energy and economic development
8.14 authority; or
8.15 (5) the Minnesota export finance authority; or
8.16 (6) a municipality or political subdivision within
8.17 Minnesota to the extent that the guarantee or collateral is a
8.18 valid and enforceable general obligation of that political body.
8.19 Sec. 2. Minnesota Statutes 2000, section 116J.58,
8.20 subdivision 1, is amended to read:
8.21 Subdivision 1. [ENUMERATION.] The commissioner shall:
8.22 (1) investigate, study, and undertake ways and means of
8.23 promoting and encouraging the prosperous development and
8.24 protection of the legitimate interest and welfare of Minnesota
8.25 business, industry, and commerce, within and outside the state;
8.26 (2) locate markets for manufacturers and processors and aid
8.27 merchants in locating and contacting markets;
8.28 (3) investigate and study conditions affecting Minnesota
8.29 business, industry, and commerce and collect and disseminate
8.30 information, and engage in technical studies, scientific
8.31 investigations, and statistical research and educational
8.32 activities necessary or useful for the proper execution of the
8.33 powers and duties of the commissioner in promoting and
8.34 developing Minnesota business, industry, and commerce, both
8.35 within and outside the state;
8.36 (4) plan and develop an effective business information
9.1 service both for the direct assistance of business and industry
9.2 of the state and for the encouragement of business and industry
9.3 outside the state to use economic facilities within the state;
9.4 (5) compile, collect, and develop periodically, or
9.5 otherwise make available, information relating to current
9.6 business conditions;
9.7 (6) conduct or encourage research designed to further new
9.8 and more extensive uses of the natural and other resources of
9.9 the state and designed to develop new products and industrial
9.10 processes;
9.11 (7) study trends and developments in the industries of the
9.12 state and analyze the reasons underlying the trends; study costs
9.13 and other factors affecting successful operation of businesses
9.14 within the state; and make recommendations regarding
9.15 circumstances promoting or hampering business and industrial
9.16 development;
9.17 (8) serve as a clearing house for business and industrial
9.18 problems of the state; and advise small business enterprises
9.19 regarding improved methods of accounting and bookkeeping;
9.20 (9) cooperate with interstate commissions engaged in
9.21 formulating and promoting the adoption of interstate compacts
9.22 and agreements helpful to business, industry, and commerce;
9.23 (10) cooperate with other state departments, and with
9.24 boards, commissions, and other state agencies, in the
9.25 preparation and coordination of plans and policies for the
9.26 development of the state and for the use and conservation of its
9.27 resources insofar as the use, conservation, and development may
9.28 be appropriately directed or influenced by a state agency;
9.29 (11) assemble and coordinate information relative to the
9.30 status, scope, cost, and employment possibilities and the
9.31 availability of materials, equipment, and labor in connection
9.32 with public works projects, state, county, and municipal;
9.33 recommend limitations on the public works; gather current
9.34 progress information with reference to public and private works
9.35 projects of the state and its political subdivisions with
9.36 reference to conditions of employment; inquire into and report
10.1 to the governor, when requested by the governor, with respect to
10.2 any program of public state improvements and the financing
10.3 thereof; and request and obtain information from other state
10.4 departments or agencies as may be needed properly to report
10.5 thereon;
10.6 (12) study changes in population and current trends and
10.7 prepare plans and suggest policies for the development and
10.8 conservation of the resources of the state;
10.9 (13) confer and cooperate with the executive, legislative,
10.10 or planning authorities of the United States and neighboring
10.11 states and provinces and of the counties and municipalities of
10.12 such neighboring states, for the purpose of bringing about a
10.13 coordination between the development of such neighboring
10.14 provinces, states, counties, and municipalities and the
10.15 development of this state;
10.16 (14) generally, gather, compile, and make available
10.17 statistical information relating to business, trade, commerce,
10.18 industry, transportation, communication, natural resources, and
10.19 other like subjects in this state, with authority to call upon
10.20 other departments of the state for statistical data and results
10.21 obtained by them and to arrange and compile that statistical
10.22 information in a manner that seems wise;
10.23 (15) prepare an annual report to the legislature estimating
10.24 and, to the extent possible, describing the number of Minnesota
10.25 companies which have left the state or moved to surrounding
10.26 states or other countries. The report should include an
10.27 estimate of the number of jobs lost by these moves, an estimate
10.28 of the total employment payroll, average hourly wage of those
10.29 jobs lost and those created in the new location, and to the
10.30 extent possible, the reasons for each company moving out of
10.31 state, if known;
10.32 (16) publish documents and annually convene regional
10.33 meetings to inform businesses, local government units,
10.34 assistance providers, and other interested persons of changes in
10.35 state and federal law related to economic development;
10.36 (17) (16) annually convene conferences of providers of
11.1 economic development related financial and technical assistance
11.2 for the purposes of exchanging information on economic
11.3 development assistance, coordinating economic development
11.4 activities, and formulating economic development strategies;
11.5 (18) (17) provide business with information on the economic
11.6 benefits of energy conservation and on the availability of
11.7 energy conservation assistance; and
11.8 (19) (18) prepare, as part of biennial budget process,
11.9 performance measures for each business loan or grant program
11.10 within the jurisdiction of the commissioner. Measures would
11.11 include source of funds for each program, numbers of jobs
11.12 proposed or promised at the time of application and the number
11.13 of jobs created, estimated number of jobs retained, the average
11.14 salary and benefits for the jobs resulting from the program, and
11.15 the number of projects approved.
11.16 Sec. 3. Minnesota Statutes 2000, section 116J.9665,
11.17 subdivision 1, is amended to read:
11.18 Subdivision 1. [DEFINITIONS.] For purposes of this
11.19 section, the following terms have the meanings given them:
11.20 (1) "Conference and service center" means the approximately
11.21 20,000 square feet of space on the third and fourth floors of
11.22 the Minnesota world trade center that the state of Minnesota has
11.23 the right to possess, occupy, and use subject to the terms and
11.24 conditions of the development agreement.
11.25 (2) "Development agreement" means the agreement entered
11.26 into by and between the world trade center board, as agent of
11.27 the state of Minnesota, and Oxford Development Minnesota, Inc.
11.28 dated July 27, 1984, and the amendments to that agreement, for
11.29 development and construction of a world trade center at a
11.30 designated site in Minnesota.
11.31 (3) (2) "Minnesota world trade center" means the facility
11.32 constructed in accordance with the development agreement or
11.33 other facilities meeting the membership requirements of the
11.34 World Trade Centers Association.
11.35 Sec. 4. Minnesota Statutes 2000, section 116J.9665,
11.36 subdivision 4, is amended to read:
12.1 Subd. 4. [DUTIES.] The commissioner shall:
12.2 (1) promote and market the Minnesota world trade center and
12.3 membership in the World Trade Centers Association;
12.4 (2) sponsor conferences or other promotional events in the
12.5 conference and service center;
12.6 (3) sponsor, develop, and conduct educational programs
12.7 related to international trade;
12.8 (4) (3) establish and maintain an office in the Minnesota
12.9 world trade center; and
12.10 (5) (4) not duplicate programs or services provided by the
12.11 commissioner of agriculture.
12.12 Sec. 5. Minnesota Statutes 2000, section 116J.9665,
12.13 subdivision 6, is amended to read:
12.14 Subd. 6. [WORLD TRADE CENTER ACCOUNT.] The world trade
12.15 center account is in the special revenue fund. All money
12.16 received from the use of the conference and service center or
12.17 appropriated under this section must be deposited in the
12.18 account. Money in the account including interest earned is
12.19 appropriated to the commissioner and must be used exclusively
12.20 for the purposes of this section.
12.21 Sec. 6. Minnesota Statutes 2001 Supplement, section
12.22 116L.17, subdivision 5, is amended to read:
12.23 Subd. 5. [COST LIMITATIONS.] (a) Funds allocated to a
12.24 grantee are subject to the following cost limitations:
12.25 (1) no more than ten percent may be allocated for
12.26 administration;
12.27 (2) at least 50 percent must be allocated for training
12.28 assistance as provided in subdivision 4, clause (2); and
12.29 (3) no more than 15 percent may be allocated for support
12.30 services as provided in subdivision 4, clause (3).
12.31 (b) A waiver of the training assistance minimum in clause
12.32 (2) may be sought, but no waiver shall allow less than 30
12.33 percent of the grant to be spent on training assistance. A
12.34 waiver of the support services maximum in clause (3) may be
12.35 sought, but no waiver shall allow more than 20 percent of the
12.36 grant to be spent on support services. A waiver may be granted
13.1 below the minimum and above the maximum otherwise allowed by
13.2 this paragraph if funds other than state funds appropriated for
13.3 the dislocated worker program are used to fund training
13.4 assistance.
13.5 Sec. 7. Minnesota Statutes 2000, section 116M.14,
13.6 subdivision 4, is amended to read:
13.7 Subd. 4. [LOW-INCOME AREA.] "Low-income area" means
13.8 Minneapolis, St. Paul, and inner ring suburbs as defined by the
13.9 metropolitan council that had a median household income below
13.10 $31,000 as reported in the 1990 census those cities in the
13.11 metropolitan area as defined in section 473.121, subdivision 2,
13.12 that have an average income that is below 60 percent of the
13.13 median income for a four-person family as of the latest report
13.14 by the United States Census Bureau.
13.15 Sec. 8. Minnesota Statutes 2000, section 116M.18,
13.16 subdivision 2, is amended to read:
13.17 Subd. 2. [CHALLENGE GRANT ELIGIBILITY; NONPROFIT
13.18 CORPORATION.] The board may enter into agreements with nonprofit
13.19 corporations to fund and guarantee loans the nonprofit
13.20 corporation makes in low-income areas under subdivision 4. A
13.21 corporation must demonstrate that:
13.22 (1) its board of directors includes citizens experienced in
13.23 development, minority business enterprises, and creating jobs in
13.24 low-income areas;
13.25 (2) it has the technical skills to analyze projects;
13.26 (3) it is familiar with other available public and private
13.27 funding sources and economic development programs;
13.28 (4) it can initiate and implement economic development
13.29 projects;
13.30 (5) it can establish and administer a revolving loan
13.31 account; and
13.32 (6) it can work with job referral networks which assist
13.33 minority and other persons in low-income areas.
13.34 Sec. 9. Minnesota Statutes 2000, section 116M.18,
13.35 subdivision 3, is amended to read:
13.36 Subd. 3. [REVOLVING LOAN FUND.] (a) The board shall
14.1 establish a revolving loan fund to make grants to nonprofit
14.2 corporations for the purpose of making loans and loan guarantees
14.3 to new and expanding businesses in a low-income area to promote
14.4 minority business enterprises and job creation for minority and
14.5 other persons in low-income areas.
14.6 (b) Eligible business enterprises include, but are not
14.7 limited to, technologically innovative industries, value-added
14.8 manufacturing, and information industries. Loan applications
14.9 given preliminary approval by the nonprofit corporation must be
14.10 forwarded to the board for approval. The commissioner must give
14.11 final approval for each loan or loan guarantee made by the
14.12 nonprofit corporation. The amount of a grant the state funds
14.13 contributed to any loan or loan guarantee may not exceed 50
14.14 percent of each loan. The amount of nonstate money must equal
14.15 at least 50 percent for each loan.
14.16 Sec. 10. Minnesota Statutes 2000, section 116M.18,
14.17 subdivision 4, is amended to read:
14.18 Subd. 4. [BUSINESS LOAN CRITERIA.] (a) The criteria in
14.19 this subdivision apply to loans made or guaranteed by nonprofit
14.20 corporations under the urban challenge grant program.
14.21 (b) Loans or guarantees must be made to businesses that are
14.22 not likely to undertake a project for which loans are sought
14.23 without assistance from the urban challenge grant program.
14.24 (c) A loan or guarantee must be used for a project designed
14.25 to benefit persons in low-income areas through the creation of
14.26 job or business opportunities for them. Priority must be given
14.27 for loans to the lowest income areas.
14.28 (d) The minimum state contribution to a loan or guarantee
14.29 is $5,000 and the maximum is $150,000.
14.30 (e) A loan The state contribution must be matched by at
14.31 least an equal amount of new private investment.
14.32 (f) A loan may not be used for a retail development project.
14.33 (g) The business must agree to work with job referral
14.34 networks that focus on minority applicants from low-income areas.
14.35 Sec. 11. Minnesota Statutes 2000, section 116M.18,
14.36 subdivision 4a, is amended to read:
15.1 Subd. 4a. [MICROENTERPRISE LOAN.] Urban challenge grants
15.2 may be used to make microenterprise loans to small, beginning
15.3 businesses, including a sole proprietorship. Microenterprise
15.4 loans are subject to this section except that:
15.5 (1) they may also be made to qualified retail businesses;
15.6 (2) they may be made for a minimum of $1,000 and a maximum
15.7 of $10,000 $25,000; and
15.8 (3) they do not require a match.
15.9 Sec. 12. Minnesota Statutes 2000, section 116M.18,
15.10 subdivision 5, is amended to read:
15.11 Subd. 5. [REVOLVING FUND ADMINISTRATION; RULES.] (a) The
15.12 board shall establish a minimum interest rate for loans or
15.13 guarantees to ensure that necessary loan administration costs
15.14 are covered.
15.15 (b) Loan repayment amounts equal to one-half of the
15.16 principal and interest must be deposited in a revolving fund
15.17 created by the board for challenge grants. The remaining amount
15.18 of the loan repayment may be deposited in a revolving loan fund
15.19 created by the nonprofit corporation originating the loan being
15.20 repaid for further distribution, consistent with the loan
15.21 criteria specified in subdivision 4.
15.22 (c) Administrative expenses of the board and nonprofit
15.23 corporations with whom the board enters into agreements under
15.24 subdivision 2, including expenses incurred by a nonprofit
15.25 corporation in providing financial, technical, managerial, and
15.26 marketing assistance to a business enterprise receiving a loan
15.27 under subdivision 4, may be paid out of the interest earned on
15.28 loans and out of interest earned on money invested by the state
15.29 board of investment under section 116M.16, subdivision 2, as may
15.30 be provided by the board.
15.31 Sec. 13. Minnesota Statutes 2000, section 116M.18, is
15.32 amended by adding a subdivision to read:
15.33 Subd. 6a. [NONPROFIT CORPORATION LOANS.] The board may
15.34 make loans to a nonprofit corporation with which it has entered
15.35 into an agreement under subdivision 1. These loans must be used
15.36 to support a new or expanding business. This support may
16.1 include such forms of financing as the sale of goods to the
16.2 business on installment or deferred payments, lease purchase
16.3 agreements, or royalty investments in the business. The
16.4 nonprofit corporation must provide at least an equal match to
16.5 the loan received by the board. The maximum loan available to
16.6 the nonprofit corporation under this subdivision is $50,000.
16.7 Loans made to the nonprofit corporation under this subdivision
16.8 may be made without interest. Repayments made by the nonprofit
16.9 corporation must be deposited in the revolving fund created for
16.10 urban initiative grants.
16.11 Sec. 14. Minnesota Statutes 2000, section 116M.18,
16.12 subdivision 8, is amended to read:
16.13 Subd. 8. [REPORTING REQUIREMENTS.] A nonprofit corporation
16.14 that receives a challenge grant shall:
16.15 (1) submit an annual report to the board by September 30 of
16.16 each year that includes a description of projects supported by
16.17 the urban challenge grant program, an account of loans made
16.18 during the calendar year, the program's impact on minority
16.19 business enterprises and job creation for minority persons and
16.20 persons in low-income areas, the source and amount of money
16.21 collected and distributed by the urban challenge grant program,
16.22 the program's assets and liabilities, and an explanation of
16.23 administrative expenses; and
16.24 (2) provide for an independent annual audit to be performed
16.25 in accordance with generally accepted accounting practices and
16.26 auditing standards and submit a copy of each annual audit report
16.27 to the board.
16.28 Sec. 15. Minnesota Statutes 2000, section 298.22,
16.29 subdivision 7, is amended to read:
16.30 Subd. 7. [GIANTS RIDGE RECREATION AREA PROJECT AREA
16.31 DEVELOPMENT AUTHORITY.] (a) In addition to the other powers
16.32 granted in this section and other law and notwithstanding any
16.33 limitations contained in subdivision 5, the commissioner, for
16.34 purposes of fostering economic development and tourism within
16.35 the Giants Ridge recreation area or the Ironworld Discovery
16.36 Center area, may spend any money made available to the agency
17.1 under section 298.28 to acquire real or personal property or
17.2 interests therein by gift, purchase, or lease and may convey by
17.3 lease, sale, or other means of conveyance or commitment any or
17.4 all of those property interests acquired owned or administered
17.5 by the commissioner within such areas.
17.6 (b) In furtherance of development of the Giants Ridge
17.7 recreation area or the Ironworld Discovery Center area, the
17.8 commissioner may establish and participate in charitable
17.9 foundations and nonprofit corporations, including a corporation
17.10 within the meaning of section 317A.011, subdivision 6.
17.11 (c) The term "Giants Ridge recreation area" refers to an
17.12 economic development project area established by the
17.13 commissioner in furtherance of the powers delegated in this
17.14 section within St. Louis county in the western portions of the
17.15 town of White and in the eastern portion of the westerly,
17.16 adjacent, unorganized township.
17.17 (d) The term "Ironworld Discovery Center area" refers to an
17.18 economic development and tourism promotion project area
17.19 established by the commissioner in furtherance of the powers
17.20 delegated in this section within St. Louis county in the south
17.21 portion of the town of Balkan.
17.22 Sec. 16. Minnesota Statutes 2000, section 298.22, is
17.23 amended by adding a subdivision to read:
17.24 Subd. 9. [ECONOMIC DEVELOPMENT AND TRADE PROMOTION.] In
17.25 the promotion of tourism, trade, and economic development, the
17.26 commissioner may expend money made available to the agency under
17.27 section 298.28 in the same manner as private persons, firms,
17.28 corporations, and associations make expenditures for these
17.29 purposes. An expenditure for food, lodging, or travel is not
17.30 governed by the travel rules of the commissioner of employee
17.31 relations.
17.32 Sec. 17. Minnesota Statutes 2000, section 446A.07,
17.33 subdivision 4, is amended to read:
17.34 Subd. 4. [INTENDED USE PLAN.] (a) The pollution control
17.35 agency public facilities authority shall annually prepare and
17.36 submit to the United States Environmental Protection Agency an
18.1 intended use plan. The plan must identify the intended uses of
18.2 the amounts available to the water pollution control revolving
18.3 fund, including a list of wastewater treatment and storm water
18.4 projects and all other eligible activities to be funded during
18.5 the fiscal year. Information regarding eligible activities must
18.6 be submitted to the pollution control agency by the appropriate
18.7 state agency or department within 30 days of written
18.8 notification by the pollution control agency.
18.9 (b) To be eligible for placement on the intended use plan:
18.10 (1) a project must be listed on the pollution control
18.11 agency's project priority list;
18.12 (2) the applicant must submit a written request to the
18.13 public facilities authority, including a brief description of
18.14 the project, a project cost estimate and the requested loan
18.15 amount, and a proposed project schedule; and
18.16 (3) for a construction loan, the project must have a
18.17 facility plan approved by the pollution control agency.
18.18 (c) The pollution control agency shall annually provide to
18.19 the public facilities authority its project priority list of
18.20 wastewater and storm water projects to be considered for funding.
18.21 The pollution control agency public facilities authority may not
18.22 submit the plan until it has received the review and comment of
18.23 the authority pollution control agency or until 30 days have
18.24 elapsed since the plan was submitted to the authority pollution
18.25 control agency, whichever occurs first. In addition, the public
18.26 facilities authority shall offer municipalities seeking
18.27 placement on the intended use plan an opportunity to review and
18.28 comment on the plan before it is adopted. The plan may be
18.29 amended to add additional projects for consideration for funding
18.30 as it determines funds are available and additional projects are
18.31 able to proceed.
18.32 Sec. 18. Minnesota Statutes 2000, section 446A.12,
18.33 subdivision 1, is amended to read:
18.34 Subdivision 1. [BONDING AUTHORITY.] The authority may
18.35 issue negotiable bonds in a principal amount that the authority
18.36 determines necessary to provide sufficient funds for achieving
19.1 its purposes, including the making of loans and purchase of
19.2 securities, the payment of interest on bonds of the authority,
19.3 the establishment of reserves to secure its bonds, the payment
19.4 of fees to a third party providing credit enhancement, and the
19.5 payment of all other expenditures of the authority incident to
19.6 and necessary or convenient to carry out its corporate purposes
19.7 and powers, but not including the making of grants. Bonds of
19.8 the authority may be issued as bonds or notes or in any other
19.9 form authorized by law. The principal amount of bonds issued
19.10 and outstanding under this section at any time may not exceed
19.11 $850,000,000 $1,000,000,000, excluding bonds for which refunding
19.12 bonds or crossover refunding bonds have been issued.
19.13 Sec. 19. Laws 2001, First Special Session chapter 4,
19.14 article 1, section 2, subdivision 5, is amended to read:
19.15 Subd. 5. Office of Tourism
19.16 10,219,000 10,111,000
19.17 To develop maximum private sector
19.18 involvement in tourism, $3,500,000 the
19.19 first year and $3,500,000 the second
19.20 year of the amounts appropriated for
19.21 marketing activities are contingent on
19.22 receipt of an equal contribution from
19.23 nonstate sources that have been
19.24 certified by the commissioner. Up to
19.25 one-half of the match may be given in
19.26 in-kind contributions.
19.27 In order to maximize marketing grant
19.28 benefits, the commissioner must give
19.29 priority for joint venture marketing
19.30 grants to organizations with year-round
19.31 sustained tourism activities. For
19.32 programs and projects submitted, the
19.33 commissioner must give priority to
19.34 those that encompass two or more areas
19.35 or that attract nonresident travelers
19.36 to the state.
19.37 If an appropriation for either year for
19.38 grants is not sufficient, the
19.39 appropriation for the other year is
19.40 available for it.
19.41 The commissioner may use grant dollars
19.42 or the value of in-kind services to
19.43 provide the state contribution for the
19.44 partnership program.
19.45 Any unexpended money from general fund
19.46 appropriations made under this
19.47 subdivision does not cancel but must be
19.48 placed in a special advertising account
19.49 for use by the office of tourism to
19.50 purchase additional media.
20.1 Of this amount, $50,000 the first year
20.2 is for a one-time grant to the
20.3 Mississippi River parkway commission to
20.4 support the increased promotion of
20.5 tourism along the Great River Road.
20.6 $829,000 the first year and $829,000
20.7 the second year are for the Minnesota
20.8 film board. $329,000 of this
20.9 appropriation in each year is available
20.10 only upon receipt by the board of $1 in
20.11 matching contributions of money or
20.12 in-kind from nonstate sources for every
20.13 $3 provided by this appropriation. Of
20.14 this amount, $500,000 the first year
20.15 and $500,000 the second year are for
20.16 grants to the Minnesota film board for
20.17 a film production jobs fund to
20.18 stimulate film production in
20.19 Minnesota. This appropriation is to
20.20 reimburse film and television producers
20.21 for up to ten percent of the documented
20.22 wages and cost of services that they
20.23 paid to Minnesotans for film and
20.24 television production after January 1,
20.25 2001.
20.26 $150,000 the first year is for
20.27 partnerships with local tourism
20.28 interests to operate travel information
20.29 centers. This is a one-time
20.30 appropriation. This appropriation is
20.31 available until spent.
20.32 Sec. 20. [REINSTATEMENT OF LAW.]
20.33 Notwithstanding its repeal by Laws 2001, First Special
20.34 Session chapter 4, article 2, section 41, Minnesota Statutes
20.35 2000, section 268.976, as amended by Laws 2001, chapter 175,
20.36 section 50, is revived.
20.37 Sec. 21. [REPEALER.]
20.38 (a) Minnesota Statutes 2000, sections 116J.9672; and
20.39 116J.9673, are repealed.
20.40 (b) Laws 2001, First Special Session chapter 5, article 3,
20.41 section 88, is repealed.
20.42 [EFFECTIVE DATE.] Paragraph (b) is effective July 1, 2002.
20.43 ARTICLE 3
20.44 BACKGROUND CHECKS
20.45 Section 1. [181.645] [EXPENSES FOR BACKGROUND CHECKS,
20.46 TESTING, AND ORIENTATION.]
20.47 Except as provided by section 123B.03 or as otherwise
20.48 specifically provided by law, an employer, as defined in section
20.49 181.931, or a prospective employer may not require an employee
20.50 or prospective employee to pay for expenses incurred in criminal
21.1 or background checks, credit checks, or orientation. An
21.2 employer or prospective employer may not require an employee or
21.3 prospective employee to pay for the expenses of training or
21.4 testing that is required by federal or state law or is required
21.5 by the employer for the employee to maintain the employee's
21.6 current position, unless the training or testing is required to
21.7 obtain or maintain a license, registration, or certification for
21.8 the employee or prospective employee.
21.9 ARTICLE 4
21.10 REDEVELOPMENT GRANTS
21.11 Section 1. Minnesota Statutes 2000, section 116J.565,
21.12 subdivision 1, is amended to read:
21.13 Subdivision 1. [CHARACTERISTICS.] (a) If applications for
21.14 grants exceed the available appropriations, grants shall be made
21.15 for sites that, in the commissioner's judgment, provide the
21.16 highest return in public benefits for the public costs
21.17 incurred. In making this judgment, the commissioner shall give
21.18 priority to redevelopment projects with one or more of the
21.19 following characteristics:
21.20 (1) the need for redevelopment in conjunction with
21.21 contamination remediation needs;
21.22 (2) the redevelopment project meets current tax increment
21.23 financing requirements for a redevelopment district and tax
21.24 increments will contribute to the project;
21.25 (3) the redevelopment potential within the municipality;
21.26 (4) proximity to public transit if located in the
21.27 metropolitan area; and
21.28 (5) multijurisdictional projects that take into account the
21.29 need for affordable housing, transportation, and environmental
21.30 impact.
21.31 (b) The factors in paragraph (a), clauses (1) to (5), are
21.32 not listed in a rank order of priority; rather the commissioner
21.33 may weigh each factor, depending upon the facts and
21.34 circumstances, as the commissioner considers appropriate. The
21.35 commissioner may consider other factors that affect the net
21.36 return of public benefits for completion of the redevelopment
22.1 plan. The commissioner, notwithstanding the listing of
22.2 priorities and the goal of maximizing the return of public
22.3 benefits, shall make grants that distribute available money to
22.4 sites both within and outside of the metropolitan area. The
22.5 commissioner shall provide a written statement of the supporting
22.6 reasons for each grant. Unless sufficient applications are not
22.7 received within the first nine months of a fiscal year for
22.8 qualifying sites outside of the metropolitan area, at least 25
22.9 50 percent of the money provided as grants in a fiscal year must
22.10 be made for sites located outside of the metropolitan area. The
22.11 commissioner shall consult with the metropolitan council about
22.12 metropolitan area grants.
22.13 Sec. 2. [BROWNFIELD SITE; ACQUISITION.]
22.14 Funds in the redevelopment accounts created in Minnesota
22.15 Statutes, section 116J.561, and allocated for sites within the
22.16 metropolitan area may be used for the purchase of a brownfield
22.17 site for a facility to house the department of military affairs'
22.18 training and community center.
22.19 ARTICLE 5
22.20 SCHOOL CONFERENCE AND ACTIVITY LEAVE
22.21 Section 1. Minnesota Statutes 2000, section 181.9412, is
22.22 amended by adding a subdivision to read:
22.23 Subd. 1a. [FOSTER CHILD.] For the purpose of this section,
22.24 "child" includes a foster child.
22.25 ARTICLE 6
22.26 YOUTH EMPLOYMENT
22.27 Section 1. Minnesota Statutes 2000, section 119A.45, is
22.28 amended to read:
22.29 119A.45 [EARLY CHILDHOOD LEARNING AND CHILD PROTECTION
22.30 FACILITIES.]
22.31 The commissioner may make grants to state agencies and
22.32 political subdivisions to construct or rehabilitate facilities
22.33 for early childhood programs, with priority to centers in
22.34 counties or municipalities with the highest percentage of
22.35 children living in poverty. The commissioner may also make
22.36 grants to state agencies and political subdivisions to construct
23.1 or rehabilitate facilities for crisis nurseries or parenting
23.2 time centers. The facilities must be owned by the state or a
23.3 political subdivision, but may be leased under section 16A.695
23.4 to organizations that operate the programs. The commissioner
23.5 must prescribe the terms and conditions of the leases. A grant
23.6 for an individual facility must not exceed $200,000 for each
23.7 program that is housed in the facility, up to a maximum of
23.8 $500,000 for a facility that houses three programs or more.
23.9 Programs include Head Start, early childhood and family
23.10 education programs, and other early childhood intervention
23.11 programs. The commissioner must give priority to grants that
23.12 involve collaboration among sponsors of programs under this
23.13 section and may give priority to projects that collaborate with
23.14 child care providers, including all-day and school-age child
23.15 care programs, special needs care, sick child care,
23.16 nontraditional hour care, and programs that include services to
23.17 refugee and immigrant families. The commissioner may give
23.18 priority to grants for programs that will increase their child
23.19 care workers' wages as a result of the grant. At least 25
23.20 percent of the amounts appropriated for these grants up to
23.21 $50,000 must If there is work that is appropriate for
23.22 youthbuild, as mutually agreed upon by the grantee and the local
23.23 youthbuild program, considering safety and skills needed, and if
23.24 it is demonstrated by youthbuild that using youthbuild will not
23.25 increase the overall cost of the project, then priority must be
23.26 given to grants for programs that utilize youthbuild under
23.27 sections 268.361 to 268.366 or other youth employment and
23.28 training programs for at least 25 percent of each grant awarded
23.29 or $50,000, whichever is less, of the labor portion of the
23.30 construction. Eligible programs must consult with appropriate
23.31 labor organizations to deliver education and training. State
23.32 appropriations must be matched on a 50 percent basis with
23.33 nonstate funds. The matching requirement must apply programwide
23.34 and not to individual grants.
23.35 ARTICLE 7
23.36 COMPETITIVE BIDDING FOR UTILITIES
24.1 Section 1. [IDENTIFICATION AND EVALUATION; COMPETITIVE
24.2 BIDDING CRITERIA.]
24.3 The commissioner of commerce shall identify and evaluate
24.4 various criteria that could be used by a utility in evaluating
24.5 and selecting bids submitted in a competitive bidding process
24.6 established under Minnesota Statutes, section 216B.2422,
24.7 subdivision 5.
24.8 To assist in the evaluation, the commissioner shall convene
24.9 a series of forums at which input from citizens and stakeholders
24.10 can be solicited. The commissioner shall present this
24.11 evaluation in a report to the house and senate policy and
24.12 finance committees with jurisdiction over energy regulatory
24.13 issues and agencies by January 15, 2003.