1.1                          A bill for an act 
  1.2             relating to state government; appropriating money for 
  1.3             economic development, jobs, housing, and certain 
  1.4             agencies of state government; establishing and 
  1.5             modifying programs; transferring duties; abolishing 
  1.6             and creating state departments; making conforming 
  1.7             changes; requiring reports; transferring the remaining 
  1.8             duties of the commissioner of public service to the 
  1.9             commissioner of commerce; creating accounts; 
  1.10            establishing technology, research, and investment 
  1.11            programs; consolidating housing programs; providing 
  1.12            for administration of the workforce development 
  1.13            program; amending Minnesota Statutes 2000, sections 
  1.14            3C.12, subdivision 2; 13.679; 15.01; 15.06, 
  1.15            subdivision 1; 15A.0815, subdivision 2; 16B.335, 
  1.16            subdivision 4; 16B.56, subdivision 1; 16B.61, 
  1.17            subdivision 1; 16B.62, subdivision 1; 16B.63, by 
  1.18            adding a subdivision; 16B.76, subdivision 1; 17.86, 
  1.19            subdivision 3; 18.024, subdivision 1; 43A.08, 
  1.20            subdivision 1a; 45.012; 103F.325, subdivisions 2, 3; 
  1.21            115A.15, subdivision 5; 116L.02; 116L.03; 116L.04, by 
  1.22            adding a subdivision; 116L.05, by adding a 
  1.23            subdivision; 116L.16; 116O.06, subdivision 2; 123B.65, 
  1.24            subdivisions 1, 3, 5; 161.45, subdivision 1; 168.61, 
  1.25            subdivision 1; 169.073; 174.03, subdivision 7; 181.30; 
  1.26            181.945; 184.29; 184.30, subdivision 1; 184.38, 
  1.27            subdivisions 6, 8, 9, 10, 11, 17, 18, 20; 184.41; 
  1.28            216A.01; 216A.035; 216A.036; 216A.05, subdivision 1; 
  1.29            216A.07, subdivision 1; 216A.08; 216A.085, subdivision 
  1.30            3; 216B.02, subdivisions 1, 7, 8; 216B.16, 
  1.31            subdivisions 1, 2, 6b, 15; 216B.162, subdivisions 7, 
  1.32            11; 216B.1675, subdivision 9; 216B.241, subdivisions 
  1.33            1a, 1b, 2b; 216C.01, subdivisions 1, 2, 3; 216C.051, 
  1.34            subdivision 6; 216C.37, subdivision 1; 216C.40, 
  1.35            subdivision 4; 216C.41; 237.02; 237.075, subdivisions 
  1.36            2, 9; 237.082; 237.21; 237.30; 237.462, subdivision 6; 
  1.37            237.51, subdivisions 1, 5, 5a; 237.52, subdivisions 2, 
  1.38            4, 5; 237.54, subdivision 2; 237.55; 237.59, 
  1.39            subdivision 2; 237.768; 239.01; 239.10; 268.022, 
  1.40            subdivision 2; 268.085, by adding a subdivision; 
  1.41            268.665, by adding subdivisions; 268.666, by adding a 
  1.42            subdivision; 325E.11; 325E.115, subdivision 2; 
  1.43            326.243; 326.90, subdivision 1; 462.353, subdivision 
  1.44            4; 462.358, subdivision 2b; 462A.01; 462A.03, 
  1.45            subdivisions 1, 6, 10, by adding a subdivision; 
  1.46            462A.04, subdivision 6; 462A.05, subdivisions 14, 14a, 
  2.1             16, 22, 26; 462A.06, subdivisions 1, 4; 462A.07, 
  2.2             subdivisions 10, 12; 462A.073, subdivision 1; 462A.15; 
  2.3             462A.17, subdivision 3; 462A.20, subdivision 3; 
  2.4             462A.201, subdivisions 2, 6; 462A.204, subdivision 3; 
  2.5             462A.205, subdivisions 4, 4a; 462A.209; 462A.2091, 
  2.6             subdivision 3; 462A.2093, subdivision 1; 462A.2097; 
  2.7             462A.21, subdivisions 5, 10, by adding subdivisions; 
  2.8             462A.222, subdivision 1a; 462A.24; 462A.33, 
  2.9             subdivisions 1, 2, 3, 5, by adding a subdivision; 
  2.10            473.195, by adding a subdivision; 473.255, 
  2.11            subdivisions 1, 2; 484.50; Laws 2000, chapter 488, 
  2.12            article 8, section 2, subdivision 6; proposing coding 
  2.13            for new law in Minnesota Statutes, chapters 11A; 16B; 
  2.14            116J; 137; 268; 462; 462A; 473; repealing Minnesota 
  2.15            Statutes 2000, sections 184.22, subdivisions 2, 3, 4, 
  2.16            5; 184.37, subdivision 2; 216A.06; 237.69, subdivision 
  2.17            3; 462A.201, subdivision 4; 462A.207; 462A.209, 
  2.18            subdivision 4; 462A.21, subdivision 17; 462A.33, 
  2.19            subdivisions 4, 6, 7. 
  2.20  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.21                             ARTICLE 1 
  2.22                    OTHER AGENCY APPROPRIATIONS 
  2.23  Section 1.  [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 
  2.24     The sums shown in the columns marked "APPROPRIATIONS" are 
  2.25  appropriated from the general fund, or another named fund, to 
  2.26  the agencies and for the purposes specified in this article, to 
  2.27  be available for the fiscal years indicated for each purpose.  
  2.28  The figures "2002" and "2003," where used in this article, mean 
  2.29  that the appropriations listed under them are available for the 
  2.30  year ending June 30, 2002, or June 30, 2003, respectively.  The 
  2.31  term "first year" means the fiscal year ending June 30, 2002, 
  2.32  and "second year" means the fiscal year ending June 30, 2003. 
  2.33                          SUMMARY BY FUND
  2.34                            2002          2003           TOTAL
  2.35  General              $ 65,622,000   $ 67,408,000   $133,030,000
  2.36  Petroleum Tank
  2.37  Cleanup                 1,064,000      1,084,000      2,146,000
  2.38  Workers' 
  2.39  Compensation           23,216,000     23,765,000     46,981,000
  2.40  Workforce
  2.41  Development Fund          793,000        808,000      1,601,000 
  2.42  TOTAL                $ 90,695,000   $ 93,065,000   $183,760,000
  2.43                                             APPROPRIATIONS 
  2.44                                         Available for the Year 
  2.45                                             Ending June 30 
  2.46                                            2002         2003 
  2.47  Sec. 2.  COMMERCE 
  2.48  Subdivision 1.  Total 
  3.1   Appropriation        26,897,000    27,557,000
  3.2                 Summary by Fund
  3.3   General              25,234,000    25,858,000
  3.4   Petroleum Tank
  3.5   Cleanup               1,064,000     1,084,000 
  3.6   Workers'
  3.7   Compensation            599,000       615,000
  3.8   The amounts that may be spent from this 
  3.9   appropriation for each program are 
  3.10  specified in the following subdivisions.
  3.11  Subd. 2.  Financial Examinations 
  3.12       6,379,000      6,555,000
  3.13  Subd. 3.  Enforcement and Compliance 
  3.14       5,526,000      5,670,000
  3.15                Summary by Fund
  3.16  General               4,927,000     5,055,000
  3.17  Workers' 
  3.18  Compensation            599,000       615,000
  3.19  Of this amount, $138,000 the first year 
  3.20  and $161,000 the second year from the 
  3.21  general fund are for the cost of 
  3.22  implementing the Minnesota Money 
  3.23  Transmitters Act, if enacted.  This 
  3.24  appropriation is available only if S.F. 
  3.25  No. 1485 or similar legislation is 
  3.26  enacted. 
  3.27  Subd. 4.  Energy
  3.28       3,809,000      3,884,000
  3.29  $588,000 each year is for transfer to 
  3.30  the energy and conservation account 
  3.31  established in Minnesota Statutes, 
  3.32  section 216B.241, subdivision 2a, for 
  3.33  programs administered by the 
  3.34  commissioner of economic security to 
  3.35  improve the energy efficiency of 
  3.36  residential oil-fired heating plants in 
  3.37  low-income households and, when 
  3.38  necessary, to provide weatherization 
  3.39  services to the homes. 
  3.40  Subd. 5.  Petroleum Tank Release 
  3.41  Cleanup 
  3.42       1,064,000      1,084,000
  3.43  This appropriation is from the 
  3.44  petroleum tank release cleanup fund. 
  3.45  Subd. 6.  Administrative Services 
  3.46       5,852,000      6,003,000 
  3.47  Subd. 7.  Telecommunications
  3.48         986,000      1,008,000
  4.1   Subd. 8.  Weights and Measures
  4.2        3,281,000      3,353,000
  4.3   Sec. 3.  BOARD OF ACCOUNTANCY            683,000        721,000
  4.4   Sec. 4.  BOARD OF ARCHITECTURE,
  4.5   ENGINEERING, LAND SURVEYING, 
  4.6   LANDSCAPE ARCHITECTURE, AND 
  4.7   INTERIOR DESIGN                          951,000        981,000 
  4.9   Sec. 5.  BOARD OF BARBER   
  4.10  EXAMINERS                                153,000        159,000
  4.11  Sec. 6.  LABOR AND INDUSTRY 
  4.12  Subdivision 1.  Total             
  4.13  Appropriation                         25,408,000     26,001,000
  4.14                Summary by Fund
  4.15  General               3,567,000     3,661,000
  4.16  Workers'     
  4.17  Compensation         21,048,000    21,532,000
  4.18  Workforce 
  4.19  Development Fund        793,000       808,000
  4.20  The amounts that may be spent from this 
  4.21  appropriation for each program are 
  4.22  specified in the following subdivisions.
  4.23  Subd. 2.  Workers' Compensation
  4.24      10,912,000     11,178,000
  4.25  This appropriation is from the workers' 
  4.26  compensation fund. 
  4.27  $125,000 the first year and $125,000 
  4.28  the second year are for grants to the 
  4.29  Vinland Center for rehabilitation 
  4.30  service. 
  4.31  Subd. 3.  Workplace Services 
  4.32       7,468,000      7,643,000
  4.33                Summary by Fund
  4.34  General               2,493,000     2,555,000
  4.35  Workers'
  4.36  Compensation          4,182,000     4,280,000
  4.37  Workforce 
  4.38  Development Fund        793,000       808,000 
  4.39  $204,000 the first year and $204,000 
  4.40  the second year are for labor education 
  4.41  and advancement program grants.  The 
  4.42  commissioner must report to the 
  4.43  legislature by February 15, 2003, on 
  4.44  the success of the program in placing 
  4.45  and retaining participants.  This 
  4.46  appropriation is from the workforce 
  4.47  development fund. 
  4.48  Subd. 4.  General Support 
  5.1        7,028,000      7,180,000
  5.2                 Summary by Fund
  5.3   General               1,074,000     1,106,000
  5.4   Workers'     
  5.5   Compensation          5,954,000     6,074,000
  5.6   Sec. 7.  BUREAU OF MEDIATION SERVICES 
  5.7   Subdivision 1.  Total
  5.8   Appropriation                          2,259,000      2,307,000
  5.9   The amounts that may be spent from this 
  5.10  appropriation for each program are 
  5.11  specified in the following subdivisions.
  5.12  Subd. 2.  Mediation Services 
  5.13       1,957,000      2,005,000
  5.14  Subd. 3.  Labor Management Cooperation Grants
  5.15         302,000        302,000
  5.16  $302,000 each year is for grants to 
  5.17  area labor-management committees.  Any 
  5.18  unencumbered balance remaining at the 
  5.19  end of the first year does not cancel 
  5.20  but is available for the second year. 
  5.21  Sec. 8.  PUBLIC UTILITIES  
  5.22  COMMISSION                             3,994,000      4,163,000
  5.23  Sec. 9.  MINNESOTA HISTORICAL 
  5.24  SOCIETY 
  5.25  Subdivision 1.  Total       
  5.26  Appropriation                         27,229,000     27,959,000
  5.27  The amounts that may be spent from this 
  5.28  appropriation for each program are 
  5.29  specified in the following subdivisions.
  5.30  Subd. 2.  Education and     
  5.31  Outreach                              15,135,000     15,762,000
  5.32  $200,000 the first year and $300,000 
  5.33  the second year are for operating 
  5.34  expenses at the Northwest Fur Company 
  5.35  Post. 
  5.36  $300,000 the first year and $500,000 
  5.37  the second year are for operating 
  5.38  expenses at the Mill City Museum, St. 
  5.39  Anthony Falls. 
  5.40  Subd. 3.  Preservation and Access
  5.41      11,568,000     11,819,000
  5.42  Subd. 4.  Fiscal Agent
  5.43  General                   526,000        378,000
  5.44  (a) Sibley House Association 
  5.45          88,000         88,000
  5.46  This appropriation is available for 
  6.1   operation and maintenance of the Sibley 
  6.2   House and related buildings on the Old 
  6.3   Mendota state historic site operated by 
  6.4   the Sibley House Association.  
  6.5   (b) Minnesota International Center 
  6.6           50,000         50,000
  6.7   (c) Minnesota Air National   
  6.8   Guard Museum 
  6.9           19,000        -0-
  6.10  (d) Institute for Learning and
  6.11  Teaching - Project 120
  6.12         110,000        110,000 
  6.13  (e) Minnesota Military Museum
  6.14          59,000         30,000
  6.15  (f) Farmamerica
  6.16         100,000        100,000 
  6.17  Notwithstanding any other law, this 
  6.18  appropriation may be used for 
  6.19  operations. 
  6.20  (g) Little Elk Heritage Preserve
  6.21          100,000           -0-
  6.22  This appropriation is to assist the 
  6.23  Institute for Minnesota Archaeology in 
  6.24  site research and preservation, 
  6.25  economic and infrastructure 
  6.26  development, public outreach, and 
  6.27  education programming.  The 
  6.28  appropriated funds may be matched by 
  6.29  nonstate sources. 
  6.30  (h) Balances Forward
  6.31  Any unencumbered balance remaining in 
  6.32  this subdivision the first year does 
  6.33  not cancel but is available for the 
  6.34  second year of the biennium. 
  6.35  Sec. 10.  COUNCIL ON BLACK
  6.36  MINNESOTANS                              339,000        349,000
  6.37  $25,000 each year is for expenses 
  6.38  associated with the Dr. Martin Luther 
  6.39  King day activities. 
  6.40  Sec. 11.  COUNCIL ON 
  6.41  CHICANO-LATINO AFFAIRS                   334,000        344,000
  6.42  Sec. 12.  COUNCIL ON
  6.43  ASIAN-PACIFIC MINNESOTANS                295,000        304,000
  6.44  Sec. 13.  INDIAN AFFAIRS
  6.45  COUNCIL                                  584,000        602,000
  6.46  Sec. 14.  WORKERS' COMPENSATION
  6.47  COURT OF APPEALS                       1,569,000      1,618,000
  6.48  This appropriation is from the workers' 
  7.1   compensation fund. 
  7.2      Sec. 15.  Minnesota Statutes 2000, section 184.29, is 
  7.3   amended to read: 
  7.4      184.29 [FEES.] 
  7.5      Before a license is granted to an applicant, the applicant 
  7.6   shall pay the following fee: 
  7.7      (a) An employment agent shall pay an annual license fee of 
  7.8   $250 for each license.  
  7.9      (b) ~~A search firm exempt under section 184.22, subdivision~~ 
  7.10  ~~2, shall pay an annual registration fee of $250, accompanying~~ 
  7.11  ~~the annual statement to the commissioner.~~  
  7.12     ~~(c)~~ An applicant for a counselor's license shall pay a 
  7.13  license fee of $20 and a renewal fee of $10.  
  7.14     ~~(d)~~ (c) An applicant for an employment agency manager's 
  7.15  license shall pay a license fee of $20 and a renewal fee of $10. 
  7.16     Sec. 16.  Minnesota Statutes 2000, section 184.30, 
  7.17  subdivision 1, is amended to read: 
  7.18     Subdivision 1.  Every application for an employment 
  7.19  agency's license~~, and every annual report required to be filed~~ 
  7.20  ~~under section 184.22, subdivision 2,~~ must be accompanied by a 
  7.21  surety bond approved by the department in the amount of $10,000 
  7.22  for each location~~; except, that for a search firm, the bond is~~ 
  7.23  ~~required only for the first five years of registration.  For a~~ 
  7.24  ~~search firm that was previously licensed as an employment~~ 
  7.25  ~~agency, the bond is required only until the firm has met the~~ 
  7.26  ~~bond requirement as an agency or as a search firm for a total of~~ 
  7.27  ~~at least five years~~.  The bond must be filed in the office of 
  7.28  the secretary of state and conditioned that the employment 
  7.29  agency and each member, shareholder, director, or officer of a 
  7.30  firm, partnership, corporation, or association operating as an 
  7.31  employment agency will comply with the provisions of sections 
  7.32  184.21 to 184.40 and any contract made by the employment agent 
  7.33  in the conduct of the business.  A person damaged by a breach of 
  7.34  any condition of the bond may bring an action on the bond, and 
  7.35  successive actions may be maintained on it. 
  7.36     Sec. 17.  Minnesota Statutes 2000, section 184.38, 
  8.1   subdivision 6, is amended to read: 
  8.2      Subd. 6.  (a) No employment agent ~~or search firm~~ shall send 
  8.3   out any applicant for employment without having obtained a job 
  8.4   order, and if no employment of the kind applied for existed at 
  8.5   the place to which the applicant was directed, the employment 
  8.6   agent ~~or search firm~~ shall refund to the applicant, within 48 
  8.7   hours of demand, any sums paid by the applicant for 
  8.8   transportation in going to and returning from the place. 
  8.9      (b) Nothing in this chapter shall be construed to prevent 
  8.10  an employment agent ~~or search firm~~ from directing an applicant 
  8.11  to an employer where the employer has previously requested 
  8.12  interviews with applicants of certain types and qualifications, 
  8.13  even though no actual vacancy existed in the employer's 
  8.14  organization at the time the applicant was so directed; nor 
  8.15  shall it prevent the employment agent ~~or search firm~~ from 
  8.16  attempting to sell the services of an applicant to the employer 
  8.17  even though no order has been placed with the employment agent 
  8.18  ~~or search firm~~; provided, that prior to scheduling an interview 
  8.19  with an employer, when no opening currently exists with that 
  8.20  employer, the applicant is clearly informed that no opening 
  8.21  exists at that time. 
  8.22     Sec. 18.  Minnesota Statutes 2000, section 184.38, 
  8.23  subdivision 8, is amended to read: 
  8.24     Subd. 8.  No employment agent ~~or search firm~~ shall 
  8.25  knowingly cause to be printed or published a false or fraudulent 
  8.26  notice or advertisement for help or for obtaining work or 
  8.27  employment.  For purposes of this subdivision the phrase "false 
  8.28  or fraudulent notice or advertisement" shall include the 
  8.29  following: 
  8.30     (a) The advertisement of any job for which there is no bona 
  8.31  fide oral or written job order and completed job order form in 
  8.32  existence at the time the advertisement is placed; 
  8.33     (b) The inclusion in any advertisement of any information 
  8.34  concerning the identity, availability, features, or requirements 
  8.35  of any advertised job when such information is not substantiated 
  8.36  by, and included in, the supporting job order form; 
  9.1      (c) The advertisement of any job opening of the type 
  9.2   described in subdivision 6, clause (b); 
  9.3      (d) The advertisement of any job without the inclusion in 
  9.4   the advertisement of the "job order number" required in 
  9.5   subdivision 18; 
  9.6      (e) If an applicant appears at any agency ~~or search firm~~ in 
  9.7   response to the advertisement of a particular job, the failure 
  9.8   to attempt placement of the applicant in the advertised job; 
  9.9   provided however, that the agency ~~or search firm~~ may refuse to 
  9.10  attempt such placement if the reason(s) for the refusal are 
  9.11  clearly and truthfully disclosed to the applicant either orally 
  9.12  or in writing. 
  9.13     Sec. 19.  Minnesota Statutes 2000, section 184.38, 
  9.14  subdivision 9, is amended to read: 
  9.15     Subd. 9.  No employment agent ~~or search firm~~ shall place or 
  9.16  assist in placing any person in unlawful employment. 
  9.17     Sec. 20.  Minnesota Statutes 2000, section 184.38, 
  9.18  subdivision 10, is amended to read: 
  9.19     Subd. 10.  No employment agent ~~or search firm~~ shall fail to 
  9.20  state in any advertisement, proposal, or contract for 
  9.21  employment, that there is a strike or lockout at the place of 
  9.22  proposed employment, if the agent ~~or firm~~ has knowledge that 
  9.23  such condition exists. 
  9.24     Sec. 21.  Minnesota Statutes 2000, section 184.38, 
  9.25  subdivision 11, is amended to read: 
  9.26     Subd. 11.  No employment agency or its employee may split, 
  9.27  divide, or share, directly or indirectly, any fee, charge, or 
  9.28  compensation received from any employer or applicant with any 
  9.29  employer, or person in any way connected with the employer's 
  9.30  business.  ~~No search firm or its employee may split, divide, or~~ 
  9.31  ~~share, directly or indirectly, any fee, charge, or compensation~~ 
  9.32  ~~received from any employer with any person connected in any way~~ 
  9.33  ~~with the employer's business.~~  A violation of this subdivision 
  9.34  shall be punished by a fine of not less than $100, and not more 
  9.35  than $3,000, or on failure to pay the fine by imprisonment for a 
  9.36  period not to exceed one year, or both, at the discretion of the 
 10.1   court. 
 10.2      Sec. 22.  Minnesota Statutes 2000, section 184.38, 
 10.3   subdivision 17, is amended to read: 
 10.4      Subd. 17.  Except for applicant information given in the 
 10.5   course of normal agency ~~or firm~~ operations, no employment agent 
 10.6   ~~or search firm~~ shall voluntarily sell, give, or otherwise 
 10.7   transfer any files, records, or other information relating to 
 10.8   its employment agency ~~or search firm~~ applicants and employers to 
 10.9   any person other than a licensed employment agent ~~or registered~~ 
 10.10  ~~search firm~~ or a person who agrees to obtain an employment 
 10.11  agency license ~~or register as a search firm~~.  Every employment 
 10.12  agent ~~or search firm~~ who ceases to engage in the business of or 
 10.13  act as an employment agent ~~or search firm~~ shall notify the 
 10.14  department of such fact within 30 days thereof, and shall advise 
 10.15  the department as to the disposition of all files and other 
 10.16  records relating to its employment agency ~~or search firm~~ 
 10.17  business. 
 10.18     Sec. 23.  Minnesota Statutes 2000, section 184.38, 
 10.19  subdivision 18, is amended to read: 
 10.20     Subd. 18.  Every job order communicated to an agency ~~or~~ 
 10.21  ~~search firm~~ shall be recorded by the agency ~~or search firm~~ on a 
 10.22  job order form which form shall contain specific information as 
 10.23  prescribed by the department.  A job order form shall be filled 
 10.24  out for each job order prior to any attempt to advertise the job 
 10.25  opening or to place persons in said job.  Such forms shall each 
 10.26  be assigned a separate number and shall be maintained by the 
 10.27  agency ~~or search firm~~ for a period of one year. 
 10.28     Sec. 24.  Minnesota Statutes 2000, section 184.38, 
 10.29  subdivision 20, is amended to read: 
 10.30     Subd. 20.  No employment agent ~~or search firm~~ shall 
 10.31  knowingly misrepresent to any employer the educational 
 10.32  background, skills, or qualifications of any job candidate; or 
 10.33  knowingly misrepresent to a job candidate the responsibilities, 
 10.34  salary, or other features of any position of employment.  
 10.35     Sec. 25.  Minnesota Statutes 2000, section 184.41, is 
 10.36  amended to read: 
 11.1      184.41 [VIOLATIONS.] 
 11.2      Any person who engages in the business of or acts as an 
 11.3   employment agent or counselor without first procuring a license 
 11.4   as required by section 184.22, and any employment agent, 
 11.5   manager, or counselor who violates the provisions of this 
 11.6   chapter~~, and any exempt firm which violates any of the~~ 
 11.7   ~~applicable provisions of this chapter,~~ is guilty of a 
 11.8   misdemeanor.  
 11.9      In addition to the penalties for commission of a 
 11.10  misdemeanor, the department may bring an action for an 
 11.11  injunction against any person who engages in the business of or 
 11.12  acts as an employment agent or counselor without first procuring 
 11.13  the license required under section 184.22, ~~or who engages in the~~ 
 11.14  ~~business of or acts as a search firm without first filing the~~ 
 11.15  ~~registration required under section 184.22, subdivision 3,~~ and 
 11.16  against any employment agent, manager, or counselor~~, or search~~ 
 11.17  ~~firm~~ who violates the applicable provisions of this chapter.  If 
 11.18  an agency, manager, or counselor~~, or search firm~~ is found guilty 
 11.19  of a misdemeanor in any action relevant to the operation of an 
 11.20  agency, ~~or search firm~~ the department may suspend or revoke the 
 11.21  license ~~or registration~~ of the agency, manager, or counselor~~, or~~ 
 11.22  ~~search firm~~. 
 11.23     Sec. 26.  Minnesota Statutes 2000, section 216C.41, is 
 11.24  amended to read: 
 11.25     216C.41 [RENEWABLE ENERGY PRODUCTION INCENTIVE.] 
 11.26     Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
 11.27  subdivision apply to this section. 
 11.28     (b) "Qualified hydroelectric facility" means a 
 11.29  hydroelectric generating facility in this state that: 
 11.30     (1) is located at the site of a dam, if the dam was in 
 11.31  existence as of March 31, 1994; and 
 11.32     (2) begins generating electricity after July 1, 1994. 
 11.33     (c) "Qualified wind energy conversion facility" means a 
 11.34  wind energy conversion system that: 
 11.35     (1) produces two megawatts or less of electricity as 
 11.36  measured by nameplate rating and begins generating electricity 
 12.1   after ~~June 30, 1997~~ December 31, 1996, and before July 1, 1999; 
 12.2      (2) begins generating electricity after June 30, 1999, 
 12.3   produces two megawatts or less of electricity as measured by 
 12.4   nameplate rating, and is: 
 12.5      (i) located within one county and owned by a natural person 
 12.6   who owns the land where the facility is sited; 
 12.7      (ii) owned by a Minnesota small business as defined in 
 12.8   section 645.445; 
 12.9      (iii) owned by a nonprofit organization; or 
 12.10     (iv) owned by a tribal council if the facility is located 
 12.11  within the boundaries of the reservation; or 
 12.12     (3) begins generating electricity after June 30, 1999, 
 12.13  produces seven megawatts or less of electricity as measured by 
 12.14  nameplate rating, and: 
 12.15     (i) is owned by a cooperative organized under chapter 308A; 
 12.16  and 
 12.17     (ii) all shares and membership in the cooperative are held 
 12.18  by natural persons or estates, at least 51 percent of whom 
 12.19  reside in a county or contiguous to a county where the wind 
 12.20  energy production facilities of the cooperative are located. 
 12.21     (d) "Qualified on-farm biogas recovery facility" means an 
 12.22  anaerobic digester system that: 
 12.23     (1) is located at the site of an agricultural operation; 
 12.24     (2) is owned by a natural person who, or an entity that, is 
 12.25  qualified to own or operate a farm under section 500.24, that 
 12.26  owns or rents the land where the facility is located; and 
 12.27     (3) begins generating electricity after July 1, 2001.  
 12.28     (e) "Anaerobic digester system" means a system of 
 12.29  components that processes animal waste based on the absence of 
 12.30  oxygen and produces gas used to generate electricity. 
 12.31     Subd. 2.  [INCENTIVE PAYMENT; APPROPRIATION.] (a) Incentive 
 12.32  payments ~~shall~~ must be made according to this section to (1) the 
 12.33  owner of a qualified on-farm biogas recovery facility, (2) the 
 12.34  owner or operator of a qualified hydropower facility or 
 12.35  qualified wind energy conversion facility for electric energy 
 12.36  generated and sold by the facility, or~~, for~~ (3) a publicly owned 
 13.1   hydropower facility~~,~~ for electric energy that is generated by 
 13.2   the facility and used by the owner of the facility outside the 
 13.3   facility.  
 13.4      (b) Payment may only be made upon receipt by the 
 13.5   commissioner of finance of an incentive payment application that 
 13.6   establishes that the applicant is eligible to receive an 
 13.7   incentive payment and that satisfies other requirements the 
 13.8   commissioner deems necessary.  The application ~~shall~~ must be in 
 13.9   a form and submitted at a time the commissioner establishes.  
 13.10     (c) There is annually appropriated from the general fund 
 13.11  sums sufficient to make the payments required under this section.
 13.12     Subd. 3.  [ELIGIBILITY WINDOW.] Payments may be made under 
 13.13  this section only for electricity generated: 
 13.14     (1) from a qualified hydroelectric facility that is 
 13.15  operational and generating electricity before December 31, 2001; 
 13.16  ~~or~~ 
 13.17     (2) from a qualified wind energy conversion facility that 
 13.18  is operational and generating electricity before January 1, 
 13.19  2005; or 
 13.20     (3) from a qualified on-farm biogas recovery facility from 
 13.21  July 1, 2001, through December 31, 2015. 
 13.22     Subd. 4.  [PAYMENT PERIOD.] A facility may receive payments 
 13.23  under this section for a ten-year period.  No payment under this 
 13.24  section may be made for electricity generated: 
 13.25     (1) by a qualified hydroelectric facility after December 
 13.26  31, 2010; ~~or~~ 
 13.27     (2) by a qualified wind energy conversion facility after 
 13.28  December 31, 2015; or 
 13.29     (3) by a qualified on-farm biogas recovery facility after 
 13.30  December 31, 2015.  
 13.31     The payment period begins and runs consecutively from the 
 13.32  first year in which electricity generated from the facility is 
 13.33  eligible for incentive payment. 
 13.34     Subd. 5.  [AMOUNT OF PAYMENT.] An incentive payment is 
 13.35  based on the number of kilowatt hours of electricity generated. 
 13.36  The amount of the payment is 1.5 cents per kilowatt hour.  For 
 14.1   electricity generated by qualified wind energy conversion 
 14.2   facilities, the incentive payment under this section is limited 
 14.3   to no more than 100 megawatts of nameplate capacity.  During any 
 14.4   period in which qualifying claims for incentive payments exceed 
 14.5   100 megawatts of nameplate capacity, the payments must be made 
 14.6   to producers in the order in which the production capacity was 
 14.7   brought into production.  
 14.8      Sec. 27.  [EQUAL PAY COMMISSION.] 
 14.9      (a) Within 90 days after the effective date of this 
 14.10  section, the commissioner of labor and industry shall appoint a 
 14.11  commission of 11 members, to be known as the "equal pay 
 14.12  commission."  Membership on the commission shall be as follows: 
 14.13     (1) two representatives of business in the state, who are 
 14.14  appointed from among individuals nominated by business 
 14.15  organizations and business trade associations; 
 14.16     (2) two representatives of labor organizations, who have 
 14.17  been nominated by state labor federations.  For purposes of this 
 14.18  clause, a state labor federation is an organization that:  (i) 
 14.19  is chartered by a federation of national or international 
 14.20  unions; (ii) admits to membership local unions; and (iii) exists 
 14.21  primarily to carry on educational, legislative, and coordinating 
 14.22  activities; 
 14.23     (3) two representatives of organizations whose objectives 
 14.24  include the elimination of pay disparities between men and women 
 14.25  or minorities and nonminorities, and who have undertaken 
 14.26  advocacy, educational, or legislative initiatives in pursuit of 
 14.27  that objective; 
 14.28     (4) three individuals drawn from higher education or 
 14.29  research institutions who have experience and expertise in the 
 14.30  collection and analysis of data concerning such pay disparities 
 14.31  and whose research has already been used in efforts to promote 
 14.32  the elimination of those disparities; and 
 14.33     (5) two members who are members of a racial or ethnic 
 14.34  minority, one of whom shall be an immigrant to this country who 
 14.35  immigrated to this country within three years prior to the 
 14.36  appointment. 
 15.1      (b) The commission shall make a full and complete study of: 
 15.2      (1) the extent of wage disparities, both in the public and 
 15.3   private sector, between men and women, and between minorities 
 15.4   and nonminorities; 
 15.5      (2) those factors that cause, or tend to cause, such 
 15.6   disparities, including segregation between women and men, and 
 15.7   between minorities and nonminorities across and within 
 15.8   occupations; payment of lower wages for work in female-dominated 
 15.9   occupations; child-rearing responsibilities; and education and 
 15.10  training; 
 15.11     (3) the consequences of such disparities on the economy and 
 15.12  families affected; and 
 15.13     (4) actions, including proposed legislation, that are 
 15.14  likely to lead to the elimination and prevention of such 
 15.15  disparities. 
 15.16     (c) The commission shall, no later than 12 months after its 
 15.17  members are appointed, make its report to the commissioner of 
 15.18  labor and industry, who shall transmit the report to the 
 15.19  governor. 
 15.20     (d) The commission's report shall include the results of 
 15.21  its study as well as recommendations, legislative and otherwise, 
 15.22  for the elimination and prevention of disparities in wages 
 15.23  between men and women, and between minorities and nonminorities. 
 15.24     (e) Compensation and removal of members shall be governed 
 15.25  by Minnesota Statutes, section 15.059. 
 15.26     Sec. 28.  [REPEALER.] 
 15.27     Minnesota Statutes 2000, sections 184.22, subdivisions 2, 
 15.28  3, 4, and 5; and 184.37, subdivision 2, are repealed. 
 15.29                             ARTICLE 2
 15.30                    PUBLIC SERVICE CONSOLIDATION 
 15.31     Section 1.  [CONSOLIDATION OF STATE REGULATION OF 
 15.32  COMMERCE.] 
 15.33     In order to make state government more efficient and 
 15.34  effective and to accomplish more efficient and effective 
 15.35  regulation of commerce in Minnesota, all of the powers, rights, 
 15.36  responsibilities, and duties that remain in the department of 
 16.1   public service after reorganization order No. 181 are 
 16.2   transferred to the department of commerce under Minnesota 
 16.3   Statutes, section 15.039.  This transfer is governed in all 
 16.4   respects by Minnesota Statutes, section 15.039.  The department 
 16.5   of public service is abolished. 
 16.6      Sec. 2.  Minnesota Statutes 2000, section 3C.12, 
 16.7   subdivision 2, is amended to read: 
 16.8      Subd. 2.  [FREE DISTRIBUTION.] The revisor shall distribute 
 16.9   without charge copies of each edition of Minnesota Statutes, 
 16.10  supplements to Minnesota Statutes, and Laws of Minnesota to the 
 16.11  persons or bodies listed in this subdivision.  Before 
 16.12  distributing the copies, the revisor shall inform these persons 
 16.13  or bodies of the cost of the publication and the availability of 
 16.14  statutes and session laws on the Internet, and shall ask whether 
 16.15  their work requires the full number of copies authorized by this 
 16.16  subdivision.  Unless a smaller number is needed, the revisor 
 16.17  shall distribute:  
 16.18     (a) 30 copies to the supreme court; 
 16.19     (b) 30 copies to the court of appeals; 
 16.20     (c) one copy to each judge of a district court; 
 16.21     (d) one copy to the court administrator of each district 
 16.22  court for use in each courtroom of the district court; 
 16.23     (e) one copy to each judge, district attorney, clerk of 
 16.24  court of the United States, and deputy clerk of each division of 
 16.25  the United States district court in Minnesota; 
 16.26     (f) 100 copies to the office of the attorney general; 
 16.27     (g) ten copies each to the governor's office, the 
 16.28  departments of agriculture, ~~commerce,~~ corrections, children, 
 16.29  families, and learning, finance, health, transportation, labor 
 16.30  and industry, economic security, natural resources, public 
 16.31  safety, ~~public service,~~ human services, revenue, and the 
 16.32  pollution control agency; 
 16.33     (h) two copies each to the lieutenant governor and the 
 16.34  state treasurer; 
 16.35     (i) 20 copies each to the ~~department~~ departments of 
 16.36  administration and commerce, state auditor, and legislative 
 17.1   auditor; 
 17.2      (j) one copy each to other state departments, agencies, 
 17.3   boards, and commissions not specifically named in this 
 17.4   subdivision; 
 17.5      (k) one copy to each member of the legislature; 
 17.6      (l) 150 copies for the use of the senate and 200 copies for 
 17.7   the use of the house of representatives; 
 17.8      (m) 50 copies to the revisor of statutes from which the 
 17.9   revisor shall send the appropriate number to the Library of 
 17.10  Congress for copyright and depository purposes; 
 17.11     (n) four copies to the secretary of the senate; 
 17.12     (o) four copies to the chief clerk of the house of 
 17.13  representatives; 
 17.14     (p) 100 copies to the state law library; 
 17.15     (q) 100 copies to the law school of the University of 
 17.16  Minnesota; 
 17.17     (r) five copies each to the Minnesota historical society 
 17.18  and the secretary of state; 
 17.19     (s) one copy each to the public library of the largest 
 17.20  municipality of each county if the library is not otherwise 
 17.21  eligible to receive a free copy under this section or section 
 17.22  15.18; and 
 17.23     (t) one copy to each county library maintained pursuant to 
 17.24  chapter 134, except in counties containing cities of the first 
 17.25  class.  If a county has not established a county library 
 17.26  pursuant to chapter 134, the copy shall be provided to any 
 17.27  public library in the county. 
 17.28     Sec. 3.  Minnesota Statutes 2000, section 13.679, is 
 17.29  amended to read: 
 17.30     13.679 [DEPARTMENT OF PUBLIC SERVICE DATA.] 
 17.31     Subdivision 1.  [TENANT.] Data collected by the ~~department~~ 
 17.32  ~~of public service~~ commissioner of commerce that reveals the 
 17.33  identity of a tenant who makes a complaint regarding energy 
 17.34  efficiency standards for rental housing are private data on 
 17.35  individuals.  
 17.36     Subd. 2.  [UTILITY OR TELEPHONE COMPANY EMPLOYEE OR 
 18.1   CUSTOMER.] (a) The following are private data on individuals:  
 18.2   data collected by the ~~department of public service~~ commissioner 
 18.3   of commerce or the public utilities commission, including the 
 18.4   names or any other data that would reveal the identity of either 
 18.5   an employee or customer of a telephone company or public utility 
 18.6   who files a complaint or provides information regarding a 
 18.7   violation or suspected violation by the telephone company or 
 18.8   public utility of any federal or state law or rule; except this 
 18.9   data may be released as needed to law enforcement authorities. 
 18.10     (b) The following are private data on individuals:  data 
 18.11  collected by the commission or the ~~department of public service~~ 
 18.12  commissioner of commerce on individual public utility or 
 18.13  telephone company customers or prospective customers, including 
 18.14  copies of tax forms, needed to administer federal or state 
 18.15  programs that provide relief from telephone company bills, 
 18.16  public utility bills, or cold weather disconnection.  The 
 18.17  determination of eligibility of the customers or prospective 
 18.18  customers may be released to public utilities or telephone 
 18.19  companies to administer the programs.  
 18.20     Sec. 4.  Minnesota Statutes 2000, section 15.01, is amended 
 18.21  to read: 
 18.22     15.01 [DEPARTMENTS OF THE STATE.] 
 18.23     The following agencies are designated as the departments of 
 18.24  the state government:  the department of administration; the 
 18.25  department of agriculture; the department of commerce; the 
 18.26  department of corrections; the department of children, families, 
 18.27  and learning; the department of economic security; the 
 18.28  department of trade and economic development; the department of 
 18.29  finance; the department of health; the department of human 
 18.30  rights; the department of labor and industry; the department of 
 18.31  military affairs; the department of natural resources; the 
 18.32  department of employee relations; the department of public 
 18.33  safety; ~~the department of public service;~~ the department of 
 18.34  human services; the department of revenue; the department of 
 18.35  transportation; the department of veterans affairs; and their 
 18.36  successor departments. 
 19.1      Sec. 5.  Minnesota Statutes 2000, section 15.06, 
 19.2   subdivision 1, is amended to read: 
 19.3      Subdivision 1.  [APPLICABILITY.] This section applies to 
 19.4   the following departments or agencies:  the departments of 
 19.5   administration, agriculture, commerce, corrections, economic 
 19.6   security, children, families, and learning, employee relations, 
 19.7   trade and economic development, finance, health, human rights, 
 19.8   labor and industry, natural resources, public safety, ~~public~~ 
 19.9   ~~service,~~ human services, revenue, transportation, and veterans 
 19.10  affairs; the housing finance and pollution control agencies; the 
 19.11  office of commissioner of iron range resources and 
 19.12  rehabilitation; the bureau of mediation services; and their 
 19.13  successor departments and agencies.  The heads of the foregoing 
 19.14  departments or agencies are "commissioners." 
 19.15     Sec. 6.  Minnesota Statutes 2000, section 15A.0815, 
 19.16  subdivision 2, is amended to read: 
 19.17     Subd. 2.  [GROUP I SALARY LIMITS.] The salaries for 
 19.18  positions in this subdivision may not exceed 95 percent of the 
 19.19  salary of the governor:  
 19.20     Commissioner of administration; 
 19.21     Commissioner of agriculture; 
 19.22     Commissioner of children, families, and learning; 
 19.23     Commissioner of commerce; 
 19.24     Commissioner of corrections; 
 19.25     Commissioner of economic security; 
 19.26     Commissioner of employee relations; 
 19.27     Commissioner of finance; 
 19.28     Commissioner of health; 
 19.29     Executive director, higher education services office; 
 19.30     Commissioner, housing finance agency; 
 19.31     Commissioner of human rights; 
 19.32     Commissioner of human services; 
 19.33     Executive director, state board of investment; 
 19.34     Commissioner of labor and industry; 
 19.35     Commissioner of natural resources; 
 19.36     Director of office of strategic and long-range planning; 
 20.1      Commissioner, pollution control agency; 
 20.2      Commissioner of public safety; 
 20.3      ~~Commissioner, department of public service;~~ 
 20.4      Commissioner of revenue; 
 20.5      Commissioner of trade and economic development; 
 20.6      Commissioner of transportation; and 
 20.7      Commissioner of veterans affairs. 
 20.8      Sec. 7.  Minnesota Statutes 2000, section 16B.335, 
 20.9   subdivision 4, is amended to read: 
 20.10     Subd. 4.  [ENERGY CONSERVATION.] A recipient to whom a 
 20.11  direct appropriation is made for a capital improvement project 
 20.12  shall ensure that the project complies with the applicable 
 20.13  energy conservation standards contained in law, including 
 20.14  sections 216C.19 to 216C.20, and rules adopted thereunder.  The 
 20.15  recipient may ~~use the energy planning and intervention and~~ 
 20.16  ~~energy technologies units of the department of public service to~~ 
 20.17  obtain information and technical assistance from the state 
 20.18  energy office in the department of commerce on energy 
 20.19  conservation and alternative energy development relating to the 
 20.20  planning and construction of the capital improvement project. 
 20.21     Sec. 8.  Minnesota Statutes 2000, section 16B.56, 
 20.22  subdivision 1, is amended to read: 
 20.23     Subdivision 1.  [EMPLOYEE TRANSPORTATION PROGRAM.] (a) 
 20.24  [ESTABLISHMENT.] To conserve energy and alleviate traffic 
 20.25  congestion around state offices, the commissioner shall, in 
 20.26  cooperation with ~~the commissioner of public service,~~ the 
 20.27  commissioner of transportation, the state energy office in the 
 20.28  department of commerce, and interested nonprofit agencies, 
 20.29  establish and operate an employee transportation program using 
 20.30  commuter vans with a capacity of not less than seven nor more 
 20.31  than 16 passengers.  Commuter vans may be used by state 
 20.32  employees and others to travel between their homes and their 
 20.33  work locations.  However, only state employee drivers may use 
 20.34  the van for personal purposes after working hours, not including 
 20.35  partisan political activity.  The commissioner shall acquire or 
 20.36  lease commuter vans, or otherwise contract for the provision of 
 21.1   commuter vans, and shall make the vans available for the use of 
 21.2   state employees and others in accordance with standards and 
 21.3   procedures adopted by the commissioner.  The commissioner shall 
 21.4   promote the maximum participation of state employees and others 
 21.5   in the use of the vans.  
 21.6      (b) [ADMINISTRATIVE POLICIES.] The commissioner shall adopt 
 21.7   standards and procedures under this section without regard to 
 21.8   chapter 14.  The commissioner shall provide for the recovery by 
 21.9   the state of vehicle acquisition, lease, operation, and 
 21.10  insurance costs through efficient and convenient assignment of 
 21.11  vans, and for the billing of costs and collection of fees.  A 
 21.12  state employee using a van for personal use shall pay, pursuant 
 21.13  to the standards and procedures adopted by the commissioner, for 
 21.14  operating and routine maintenance costs incurred as a result of 
 21.15  the personal use.  Fees collected under this subdivision shall 
 21.16  be deposited in the accounts from which the costs of operating, 
 21.17  maintaining, and leasing or amortization for the specific 
 21.18  vehicle are paid.  
 21.19     Sec. 9.  Minnesota Statutes 2000, section 16B.76, 
 21.20  subdivision 1, is amended to read: 
 21.21     Subdivision 1.  [MEMBERSHIP.] (a) The construction codes 
 21.22  advisory council consists of the following members: 
 21.23     (1) the commissioner of administration or the 
 21.24  commissioner's designee representing the department's building 
 21.25  codes and standards division; 
 21.26     (2) the commissioner of health or the commissioner's 
 21.27  designee representing an environmental health section of the 
 21.28  department; 
 21.29     (3) the commissioner of public safety or the commissioner's 
 21.30  designee representing the department's state fire marshal 
 21.31  division; 
 21.32     (4) the commissioner of ~~public service~~ commerce or the 
 21.33  commissioner's designee representing the department's ~~energy~~ 
 21.34  ~~regulation and resource management division~~ state energy office; 
 21.35  and 
 21.36     (5) one member representing each of the following 
 22.1   occupations or entities, appointed by the commissioner of 
 22.2   administration: 
 22.3      (i) a certified building official; 
 22.4      (ii) a fire service representative; 
 22.5      (iii) a licensed architect; 
 22.6      (iv) a licensed engineer; 
 22.7      (v) a building owners and managers representative; 
 22.8      (vi) a licensed residential building contractor; 
 22.9      (vii) a commercial building contractor; 
 22.10     (viii) a heating and ventilation contractor; 
 22.11     (ix) a plumbing contractor; 
 22.12     (x) a representative of a construction and building trades 
 22.13  union; and 
 22.14     (xi) a local unit of government representative. 
 22.15     (b) For members who are not state officials or employees, 
 22.16  terms, compensation, removal, and the filling of vacancies are 
 22.17  governed by section 15.059.  The council shall select one of its 
 22.18  members to serve as chair. 
 22.19     (c) The council expires June 30, 2001. 
 22.20     Sec. 10.  Minnesota Statutes 2000, section 17.86, 
 22.21  subdivision 3, is amended to read: 
 22.22     Subd. 3.  [INFORMATION.] The University of Minnesota 
 22.23  extension service, in cooperation with the commissioners of 
 22.24  agriculture, children, families, and learning, natural 
 22.25  resources, and ~~public service~~ commerce, shall serve as the 
 22.26  principal agency for publishing and circulating information 
 22.27  derived from research under subdivision 2 among the various 
 22.28  municipalities and individual property owners in the state.  
 22.29  Where practical, the extension service and the state energy 
 22.30  office in the department of ~~public service~~ commerce shall secure 
 22.31  the advice and assistance of various energy utilities interested 
 22.32  and concerned with conservation.  The commissioner of 
 22.33  agriculture shall establish an information source for requests 
 22.34  for nursery stock, to match needs of municipalities with stocks 
 22.35  of trees available for planting from private and governmental 
 22.36  sources.  
 23.1      Sec. 11.  Minnesota Statutes 2000, section 18.024, 
 23.2   subdivision 1, is amended to read: 
 23.3      Subdivision 1.  [WOOD UTILIZATION.] The departments of 
 23.4   agriculture and natural resources, after consultation with the 
 23.5   Minnesota shade tree advisory committee and the ~~commissioner of~~ 
 23.6   ~~public service~~ state energy office in the department of 
 23.7   commerce, shall investigate, evaluate, and make recommendations 
 23.8   to the legislature concerning the potential uses of wood from 
 23.9   community trees removed due to disease or other disorders.  
 23.10  These recommendations shall include maximum resource recovery 
 23.11  through recycling, use as an alternative energy source, or use 
 23.12  in construction or the manufacture of new products.  Wood 
 23.13  utilization or disposal systems as defined in section 18.023 
 23.14  must be included to ensure maximum utilization of diseased shade 
 23.15  trees with designs and procedures to ensure public safety and to 
 23.16  assure compliance with approved disease control programs. 
 23.17     Sec. 12.  Minnesota Statutes 2000, section 43A.08, 
 23.18  subdivision 1a, is amended to read: 
 23.19     Subd. 1a.  [ADDITIONAL UNCLASSIFIED POSITIONS.] Appointing 
 23.20  authorities for the following agencies may designate additional 
 23.21  unclassified positions according to this subdivision:  the 
 23.22  departments of administration; agriculture; commerce; 
 23.23  corrections; economic security; children, families, and 
 23.24  learning; employee relations; trade and economic development; 
 23.25  finance; health; human rights; labor and industry; natural 
 23.26  resources; public safety; ~~public service;~~ human services; 
 23.27  revenue; transportation; and veterans affairs; the housing 
 23.28  finance and pollution control agencies; the state lottery; the 
 23.29  state board of investment; the office of administrative 
 23.30  hearings; the office of environmental assistance; the offices of 
 23.31  the attorney general, secretary of state, state auditor, and 
 23.32  state treasurer; the Minnesota state colleges and universities; 
 23.33  the higher education services office; the Perpich center for 
 23.34  arts education; and the Minnesota zoological board. 
 23.35     A position designated by an appointing authority according 
 23.36  to this subdivision must meet the following standards and 
 24.1   criteria:  
 24.2      (1) the designation of the position would not be contrary 
 24.3   to other law relating specifically to that agency; 
 24.4      (2) the person occupying the position would report directly 
 24.5   to the agency head or deputy agency head and would be designated 
 24.6   as part of the agency head's management team; 
 24.7      (3) the duties of the position would involve significant 
 24.8   discretion and substantial involvement in the development, 
 24.9   interpretation, and implementation of agency policy; 
 24.10     (4) the duties of the position would not require primarily 
 24.11  personnel, accounting, or other technical expertise where 
 24.12  continuity in the position would be important; 
 24.13     (5) there would be a need for the person occupying the 
 24.14  position to be accountable to, loyal to, and compatible with, 
 24.15  the governor and the agency head, the employing statutory board 
 24.16  or commission, or the employing constitutional officer; 
 24.17     (6) the position would be at the level of division or 
 24.18  bureau director or assistant to the agency head; and 
 24.19     (7) the commissioner has approved the designation as being 
 24.20  consistent with the standards and criteria in this subdivision. 
 24.21     Sec. 13.  Minnesota Statutes 2000, section 45.012, is 
 24.22  amended to read: 
 24.23     45.012 [COMMISSIONER.] 
 24.24     (a) The department of commerce is under the supervision and 
 24.25  control of the commissioner of commerce.  The commissioner is 
 24.26  appointed by the governor in the manner provided by section 
 24.27  15.06.  
 24.28     (b) Data that is received by the commissioner or the 
 24.29  commissioner's designee by virtue of membership or participation 
 24.30  in an association, group, or organization that is not otherwise 
 24.31  subject to chapter 13 is confidential or protected nonpublic 
 24.32  data but may be shared with the department employees as the 
 24.33  commissioner considers appropriate.  The commissioner may 
 24.34  release the data to any person, agency, or the public if the 
 24.35  commissioner determines that the access will aid the law 
 24.36  enforcement process, promote public health or safety, or dispel 
 25.1   widespread rumor or unrest.  
 25.2      (c) It is part of the department's mission that within the 
 25.3   department's resources the commissioner shall endeavor to: 
 25.4      (1) prevent the waste or unnecessary spending of public 
 25.5   money; 
 25.6      (2) use innovative fiscal and human resource practices to 
 25.7   manage the state's resources and operate the department as 
 25.8   efficiently as possible; 
 25.9      (3) coordinate the department's activities wherever 
 25.10  appropriate with the activities of other governmental agencies; 
 25.11     (4) use technology where appropriate to increase agency 
 25.12  productivity, improve customer service, increase public access 
 25.13  to information about government, and increase public 
 25.14  participation in the business of government; 
 25.15     (5) utilize constructive and cooperative labor-management 
 25.16  practices to the extent otherwise required by chapters 43A and 
 25.17  179A; 
 25.18     (6) report to the legislature on the performance of agency 
 25.19  operations and the accomplishment of agency goals in the 
 25.20  agency's biennial budget according to section 16A.10, 
 25.21  subdivision 1; and 
 25.22     (7) recommend to the legislature appropriate changes in law 
 25.23  necessary to carry out the mission and improve the performance 
 25.24  of the department. 
 25.25     (d) The commissioner also has all the powers and 
 25.26  responsibilities and shall perform all the duties previously 
 25.27  assigned to the commissioner of public service and the 
 25.28  department of public service under chapters 216, 216A, 216B, 
 25.29  216C, 237, 238, 239, and other statutes prior to the date of 
 25.30  final enactment of this act, except in the case where those 
 25.31  powers, responsibilities, or duties have been specifically 
 25.32  otherwise assigned by law. 
 25.33     Sec. 14.  Minnesota Statutes 2000, section 103F.325, 
 25.34  subdivision 2, is amended to read: 
 25.35     Subd. 2.  [REVIEW AND HEARING.] (a) The commissioner shall 
 25.36  make the proposed management plan available to affected local 
 26.1   governmental bodies, shoreland owners, conservation and outdoor 
 26.2   recreation groups, the commissioner of trade and economic 
 26.3   development, the commissioner of ~~public service~~ commerce, the 
 26.4   governor, and the general public.  The commissioners of trade 
 26.5   and economic development ~~and of public service~~, the state energy 
 26.6   office in the department of commerce, and the governor shall 
 26.7   review the proposed management plan in accordance with the 
 26.8   criteria in section 86A.09, subdivision 3, and submit any 
 26.9   written comments to the commissioner within 60 days after 
 26.10  receipt of the proposed management plan.  
 26.11     (b) By 60 days after making the information available, the 
 26.12  commissioner shall conduct a public hearing on the proposed 
 26.13  management plan in the county seat of each county that contains 
 26.14  a portion of the designated system area, in the manner provided 
 26.15  in chapter 14.  
 26.16     Sec. 15.  Minnesota Statutes 2000, section 103F.325, 
 26.17  subdivision 3, is amended to read: 
 26.18     Subd. 3.  [POST HEARING REVIEW.] Upon receipt of the 
 26.19  administrative law judge's report, the commissioner shall 
 26.20  immediately forward the proposed management plan and the 
 26.21  administrative law judge's report to the commissioners of trade 
 26.22  and economic development and of ~~public service~~ commerce for 
 26.23  review under section 86A.09, subdivision 3, except that the 
 26.24  review by the commissioners must be completed or be deemed 
 26.25  completed within 30 days after receiving the administrative law 
 26.26  judge's report, and the review by the governor must be completed 
 26.27  or be deemed completed within 15 days after receipt.  
 26.28     Sec. 16.  Minnesota Statutes 2000, section 115A.15, 
 26.29  subdivision 5, is amended to read: 
 26.30     Subd. 5.  [REPORTS.] (a) By January 1 of each odd-numbered 
 26.31  year, the commissioner of administration shall submit a report 
 26.32  to the governor and to the environment and natural resources 
 26.33  committees of the senate and house of representatives, the 
 26.34  finance division of the senate committee on environment and 
 26.35  natural resources, and the house of representatives committee on 
 26.36  environment and natural resources finance summarizing past 
 27.1   activities and proposed goals of the program for the following 
 27.2   biennium.  The report shall include at least: 
 27.3      (1) a summary list of product and commodity purchases that 
 27.4   contain recycled materials; 
 27.5      (2) the results of any performance tests conducted on 
 27.6   recycled products and agencies' experience with recycled 
 27.7   products used; 
 27.8      (3) a list of all organizations participating in and using 
 27.9   the cooperative purchasing program; and 
 27.10     (4) a list of products and commodities purchased for their 
 27.11  recyclability and of recycled products reviewed for purchase. 
 27.12     (b) By July 1 of each even-numbered year, the director of 
 27.13  the office of environmental assistance and the commissioner of 
 27.14  ~~public service~~ commerce through the state energy office shall 
 27.15  submit recommendations to the commissioner regarding the 
 27.16  operation of the program. 
 27.17     Sec. 17.  Minnesota Statutes 2000, section 116O.06, 
 27.18  subdivision 2, is amended to read: 
 27.19     Subd. 2.  [EQUITY INVESTMENTS.] The corporation may acquire 
 27.20  an interest in a product or a private business entity, except 
 27.21  that the corporation may not acquire an interest in a business 
 27.22  entity engaged in a trade or industry whose profits are directly 
 27.23  regulated by the commissioner of commerce or the ~~department of~~ 
 27.24  ~~public service~~ public utilities commission.  The corporation may 
 27.25  enter into joint venture agreements with other private 
 27.26  corporations to promote economic development and job creation.  
 27.27     Sec. 18.  Minnesota Statutes 2000, section 123B.65, 
 27.28  subdivision 1, is amended to read: 
 27.29     Subdivision 1.  [DEFINITIONS.] The definitions in this 
 27.30  subdivision apply to this section. 
 27.31     (a) "Energy conservation measure" means a training program 
 27.32  or facility alteration designed to reduce energy consumption or 
 27.33  operating costs and includes: 
 27.34     (1) insulation of the building structure and systems within 
 27.35  the building; 
 27.36     (2) storm windows and doors, caulking or weatherstripping, 
 28.1   multiglazed windows and doors, heat absorbing or heat reflective 
 28.2   glazed and coated window and door systems, additional glazing, 
 28.3   reductions in glass area, and other window and door system 
 28.4   modifications that reduce energy consumption; 
 28.5      (3) automatic energy control systems; 
 28.6      (4) heating, ventilating, or air conditioning system 
 28.7   modifications or replacements; 
 28.8      (5) replacement or modifications of lighting fixtures to 
 28.9   increase the energy efficiency of the lighting system without 
 28.10  increasing the overall illumination of a facility, unless such 
 28.11  increase in illumination is necessary to conform to the 
 28.12  applicable state or local building code for the lighting system 
 28.13  after the proposed modifications are made; 
 28.14     (6) energy recovery systems; 
 28.15     (7) cogeneration systems that produce steam or forms of 
 28.16  energy such as heat, as well as electricity, for use primarily 
 28.17  within a building or complex of buildings; 
 28.18     (8) energy conservation measures that provide long-term 
 28.19  operating cost reductions.  
 28.20     (b) "Guaranteed energy savings contract" means a contract 
 28.21  for the evaluation and recommendations of energy conservation 
 28.22  measures, and for one or more energy conservation measures.  The 
 28.23  contract must provide that all payments, except obligations on 
 28.24  termination of the contract before its expiration, are to be 
 28.25  made over time, but not to exceed 15 years from the date of 
 28.26  final installation, and the savings are guaranteed to the extent 
 28.27  necessary to make payments for the systems. 
 28.28     (c) "Qualified provider" means a person or business 
 28.29  experienced in the design, implementation, and installation of 
 28.30  energy conservation measures.  A qualified provider to whom the 
 28.31  contract is awarded shall give a sufficient bond to the school 
 28.32  district for its faithful performance. 
 28.33     (d) "Commissioner" means the commissioner of ~~public service~~ 
 28.34  commerce through the state energy office. 
 28.35     Sec. 19.  Minnesota Statutes 2000, section 123B.65, 
 28.36  subdivision 3, is amended to read: 
 29.1      Subd. 3.  [EVALUATION BY COMMISSIONER.] Upon request of the 
 29.2   board, the commissioner ~~of public service~~ shall review the 
 29.3   report required in subdivision 2 and provide an evaluation to 
 29.4   the board on the proposed contract within 15 working days of 
 29.5   receiving the report.  In evaluating the proposed contract, the 
 29.6   commissioner shall determine whether the detailed calculations 
 29.7   of the costs and of the energy and operating savings are 
 29.8   accurate and reasonable.  The commissioner may request 
 29.9   additional information about a proposed contract as the 
 29.10  commissioner deems necessary.  If the commissioner requests 
 29.11  additional information, the commissioner shall not be required 
 29.12  to submit an evaluation to the board within fewer than ten 
 29.13  working days of receiving the requested information.  
 29.14     Sec. 20.  Minnesota Statutes 2000, section 123B.65, 
 29.15  subdivision 5, is amended to read: 
 29.16     Subd. 5.  [PAYMENT OF REVIEW EXPENSES.] The commissioner ~~of~~ 
 29.17  ~~public service~~ may charge a district requesting services under 
 29.18  subdivisions 3 and 4 actual costs incurred by the department 
 29.19  of ~~public service~~ commerce while conducting the review, or 
 29.20  one-half percent of the total identified project cost, whichever 
 29.21  is less.  Before conducting the review, the commissioner shall 
 29.22  notify a district requesting review services that expenses will 
 29.23  be charged to the district.  The commissioner shall bill the 
 29.24  district upon completion of the contract review.  Money 
 29.25  collected by the commissioner under this subdivision must be 
 29.26  deposited in the general fund.  A district may include the cost 
 29.27  of a review by the commissioner under subdivision 3 in a 
 29.28  contract made pursuant to this section. 
 29.29     Sec. 21.  Minnesota Statutes 2000, section 161.45, 
 29.30  subdivision 1, is amended to read: 
 29.31     Subdivision 1.  [RULES.] Electric transmission, telephone 
 29.32  or telegraph lines, pole lines, community antenna television 
 29.33  lines, railways, ditches, sewers, water, heat or gas mains, gas 
 29.34  and other pipe lines, flumes, or other structures which, under 
 29.35  the laws of this state or the ordinance of any city, may be 
 29.36  constructed, placed, or maintained across or along any trunk 
 30.1   highway, or the roadway thereof, by any person, persons, 
 30.2   corporation, or any subdivision of the state, may be so 
 30.3   maintained or hereafter constructed only in accordance with such 
 30.4   rules as may be prescribed by the commissioner who shall have 
 30.5   power to prescribe and enforce reasonable rules with reference 
 30.6   to the placing and maintaining along, across, or in any such 
 30.7   trunk highway of any of the utilities hereinbefore set forth.  
 30.8   Nothing herein shall restrict the actions of public authorities 
 30.9   in extraordinary emergencies nor restrict the power and 
 30.10  authority of the ~~department of public service~~ commissioner of 
 30.11  commerce as provided for in other provisions of law.  Provided, 
 30.12  however, that in the event any local subdivision of government 
 30.13  has enacted ordinances relating to the method of installation or 
 30.14  requiring underground installation of such community antenna 
 30.15  television lines, the permit granted by the commissioner of 
 30.16  transportation shall require compliance with such local 
 30.17  ordinance. 
 30.18     Sec. 22.  Minnesota Statutes 2000, section 168.61, 
 30.19  subdivision 1, is amended to read: 
 30.20     Subdivision 1.  [DEFINITION.] The term "intercity bus" as 
 30.21  used in sections 168.61 to 168.65 means a motor bus as defined 
 30.22  in section 168.011, subdivision 9, which is owned or operated by 
 30.23  either a resident or nonresident of Minnesota in interstate 
 30.24  commerce under authority of the Interstate Commerce Commission 
 30.25  or in combined interstate and intrastate commerce under 
 30.26  authority of the Interstate Commerce Commission and the 
 30.27  department of ~~public service~~ transportation of Minnesota, as a 
 30.28  result of which operation such bus operates both within and 
 30.29  without the territorial limits of the state of Minnesota.  
 30.30     Sec. 23.  Minnesota Statutes 2000, section 169.073, is 
 30.31  amended to read: 
 30.32     169.073 [PROHIBITED LIGHT OR SIGNAL.] 
 30.33     (a) No person or corporation shall place, maintain or 
 30.34  display any red light or red sign, signal, or lighting device or 
 30.35  maintain it in view of any highway or any line of railroad on or 
 30.36  over which trains are operated in such a way as to interfere 
 31.1   with the effectiveness or efficiency of any highway 
 31.2   traffic-control device or signals or devices used in the 
 31.3   operation of a railroad.  Upon written notice from the 
 31.4   commissioner of transportation, a person or corporation 
 31.5   maintaining or owning or displaying a prohibited light shall 
 31.6   promptly remove it, or change the color of it to some other 
 31.7   color than red.  Where a prohibited light or sign interferes 
 31.8   with the effectiveness or efficiency of the signals or devices 
 31.9   used in the operation of a railroad, the department of ~~public~~ 
 31.10  ~~service~~ transportation may cause the removal of it and the 
 31.11  department may issue notices and orders for its removal.  The 
 31.12  department shall proceed as provided in sections 216.13, 216.14, 
 31.13  216.15, 216.16, and 216.17, with a right of appeal to the 
 31.14  aggrieved party in accordance with chapter 14. 
 31.15     (b) No person or corporation shall maintain or display any 
 31.16  light after written notice from the commissioner of 
 31.17  transportation or the department of public service that the 
 31.18  light constitutes a traffic hazard and that it has ordered the 
 31.19  removal thereof. 
 31.20     Sec. 24.  Minnesota Statutes 2000, section 174.03, 
 31.21  subdivision 7, is amended to read: 
 31.22     Subd. 7.  [ENERGY CONSERVATION.] The commissioner, in 
 31.23  cooperation with the commissioner of ~~public service~~ commerce 
 31.24  through the state energy office, shall evaluate all modes of 
 31.25  transportation in terms of their levels of energy consumption.  
 31.26  The commissioner of ~~public service~~ commerce shall provide the 
 31.27  commissioner with projections of the future availability of 
 31.28  energy resources for transportation.  The commissioner shall use 
 31.29  the results of this evaluation and the projections to evaluate 
 31.30  alternative programs and facilities to be included in the 
 31.31  statewide plan and to otherwise promote the more efficient use 
 31.32  of energy resources for transportation purposes. 
 31.33     Sec. 25.  Minnesota Statutes 2000, section 181.30, is 
 31.34  amended to read: 
 31.35     181.30 [DUTY OF DEPARTMENT OF PUBLIC SERVICE.] 
 31.36     Any officer of any railroad company in the state violating 
 32.1   any of the provisions of section 181.29 shall be guilty of a 
 32.2   misdemeanor; and, upon conviction, punished by a fine of not 
 32.3   less than $100, and not more than $700, for each offense, or by 
 32.4   imprisonment in the county jail not more than 60 days, or both 
 32.5   fine and imprisonment, at the discretion of the court.  It shall 
 32.6   be the duty of the state department of ~~public~~ 
 32.7   ~~service~~ transportation, upon complaint properly filed with it 
 32.8   alleging a violation of section 181.29, to make a full 
 32.9   investigation in relation thereto, and for such purpose it shall 
 32.10  have the power to administer oaths, interrogate witnesses, take 
 32.11  testimony and require the production of books and papers, and if 
 32.12  such report shall show a violation of the provisions of section 
 32.13  181.29, the department of ~~public service~~ transportation shall, 
 32.14  through the attorney general, begin the prosecution of all 
 32.15  parties against whom evidence of such violation is found; but 
 32.16  section 181.29 shall not be construed to prevent any other 
 32.17  person from beginning prosecution for the violation of the 
 32.18  provisions thereof.  
 32.19     Sec. 26.  Minnesota Statutes 2000, section 216A.01, is 
 32.20  amended to read: 
 32.21     216A.01 [~~ESTABLISHMENT OF~~ DEPARTMENT AND COMMISSION; POWERS 
 32.22  AND DUTIES.] 
 32.23     ~~There are hereby created and established the department of~~ 
 32.24  ~~public service, and the public utilities commission.~~  The 
 32.25  department of ~~public service~~ commerce shall have and possess all 
 32.26  of the rights and powers and perform all of the duties vested in 
 32.27  it by this chapter.  The public utilities commission shall have 
 32.28  and possess all of the rights and powers and perform all of the 
 32.29  duties vested in it by this chapter, and those formerly vested 
 32.30  by law in the railroad and warehouse commission. 
 32.31     Sec. 27.  Minnesota Statutes 2000, section 216A.035, is 
 32.32  amended to read: 
 32.33     216A.035 [CONFLICT OF INTEREST.] 
 32.34     (a) No person, while a member of the public utilities 
 32.35  commission, while acting as executive secretary of the 
 32.36  commission, or while employed in a professional capacity by the 
 33.1   commission, shall receive any income, other than dividends or 
 33.2   other earnings from a mutual fund or trust if these earnings do 
 33.3   not constitute a significant portion of the person's income, 
 33.4   directly or indirectly from any public utility or other 
 33.5   organization subject to regulation by the commission. 
 33.6      (b) No person is eligible to be appointed as a member of 
 33.7   the commission if the person has been employed with an entity, 
 33.8   or an affiliated company of an entity, that is subject to rate 
 33.9   regulation by the commission within one year from the date when 
 33.10  the person's term on the commission will begin. 
 33.11     (c) No person who is an employee of the ~~public service~~ 
 33.12  department of commerce shall participate in any manner in any 
 33.13  decision or action of the commission where that person has a 
 33.14  direct or indirect financial interest.  Each commissioner or 
 33.15  employee of the ~~public service~~ department who is in the general 
 33.16  professional, supervisory, or technical units established in 
 33.17  section 179A.10 or who is a professional, supervisory, or 
 33.18  technical employee defined as confidential in section 179A.03, 
 33.19  subdivision 4, or who is a management classification employee 
 33.20  and whose duties are related to public ~~utilities or~~ 
 33.21  ~~transportation~~ utility, telephone company, or telecommunications 
 33.22  company regulation shall report to the campaign finance and 
 33.23  public disclosure board annually before April 15 any interest in 
 33.24  an industry or business regulated by the commission.  Each 
 33.25  commissioner shall file a statement of economic interest as 
 33.26  required by section 10A.09 with the campaign finance and public 
 33.27  disclosure board and the public utilities commission before 
 33.28  taking office.  The statement of economic interest must state 
 33.29  any interest that the commissioner has in an industry or 
 33.30  business regulated by the commission. 
 33.31     (d) A professional employee of the commission or department 
 33.32  must immediately disclose to the commission or to the 
 33.33  commissioner of the department, respectively, any communication, 
 33.34  direct or indirect, with a person who is a party to a pending 
 33.35  proceeding before the commission regarding future benefits, 
 33.36  compensation, or employment to be received from that person. 
 34.1      Sec. 28.  Minnesota Statutes 2000, section 216A.036, is 
 34.2   amended to read: 
 34.3      216A.036 [EMPLOYMENT RESTRICTIONS.] 
 34.4      (a) A person who serves as (1) a commissioner of the public 
 34.5   utilities commission, (2) commissioner of ~~the department of~~ 
 34.6   ~~public service~~ commerce, or (3) deputy commissioner of ~~the~~ 
 34.7   ~~department~~ commerce, shall not, while employed with or within 
 34.8   one year after leaving the commission, or department, accept 
 34.9   employment with, receive compensation directly or indirectly 
 34.10  from, or enter into a contractual relationship with an entity, 
 34.11  or an affiliated company of an entity, that is subject to rate 
 34.12  regulation by the commission. 
 34.13     (b) An entity or an affiliated company of an entity that is 
 34.14  subject to rate regulation by the commission, or a person acting 
 34.15  on behalf of the entity, shall not negotiate or offer to employ 
 34.16  or compensate a commissioner of the public utilities commission, 
 34.17  the commissioner of ~~public service~~ commerce, or the deputy 
 34.18  commissioner of commerce, while the person is so employed or 
 34.19  within one year after the person leaves that employment. 
 34.20     (c) For the purposes of this section, "affiliated company" 
 34.21  means a company that controls, is controlled by, or is under 
 34.22  common control with an entity subject to rate regulation by the 
 34.23  commission. 
 34.24     (d) A person who violates this section is subject to a 
 34.25  civil penalty not to exceed $10,000 for each violation.  The 
 34.26  attorney general may bring an action in district court to 
 34.27  collect the penalties provided in this section.  
 34.28     Sec. 29.  Minnesota Statutes 2000, section 216A.05, 
 34.29  subdivision 1, is amended to read: 
 34.30     Subdivision 1.  [LEGISLATIVE AND QUASI-JUDICIAL FUNCTIONS.] 
 34.31  The functions of the commission shall be legislative and 
 34.32  quasi-judicial in nature.  It may make such investigations and 
 34.33  determinations, hold such hearings, prescribe such rules and 
 34.34  issue such orders with respect to the control and conduct of the 
 34.35  businesses coming within its jurisdiction as the legislature 
 34.36  itself might make but only as it shall from time to time 
 35.1   authorize.  It may adjudicate all proceedings brought before it 
 35.2   in which the violation of any law or rule administered by the 
 35.3   department of commerce is alleged. 
 35.4      Sec. 30.  Minnesota Statutes 2000, section 216A.07, 
 35.5   subdivision 1, is amended to read: 
 35.6      Subdivision 1.  [~~ADMINISTRATIVE~~ COMMISSIONER DUTIES.] The 
 35.7   commissioner ~~shall be the executive and administrative head of~~ 
 35.8   ~~the public service department and shall have and possess~~ of 
 35.9   commerce has all the rights and powers and shall perform all the 
 35.10  duties ~~relating to the administrative function of the department~~ 
 35.11  ~~as~~ set forth in this chapter.  The commissioner may: 
 35.12     (1) prepare all forms or blanks for the purpose of 
 35.13  obtaining information which the commissioner may deem necessary 
 35.14  or useful in the proper exercise of the authority and duties of 
 35.15  the commissioner in connection with regulated businesses; 
 35.16     (2) prescribe the time and manner within which forms or 
 35.17  blanks shall be filed with the department; 
 35.18     (3) inspect at all reasonable times, and copy the books, 
 35.19  records, memoranda and correspondence or other documents and 
 35.20  records of any person relating to any regulated business; and 
 35.21     (4) cause the deposition to be taken of any person 
 35.22  concerning the business and affairs of any business regulated by 
 35.23  the department.  Information sought through said deposition 
 35.24  shall be for a lawfully authorized purpose and shall be relevant 
 35.25  and material to the investigation or hearing before the 
 35.26  commission.  Information obtained from said deposition shall be 
 35.27  used by the department only for a lawfully authorized purpose 
 35.28  and pursuant to powers and responsibilities conferred upon the 
 35.29  department.  Said deposition is to be taken in the manner 
 35.30  prescribed by law for taking depositions in civil actions in the 
 35.31  district court. 
 35.32     Sec. 31.  Minnesota Statutes 2000, section 216A.08, is 
 35.33  amended to read: 
 35.34     216A.08 [CONTINUATION OF RULES OF PUBLIC SERVICE 
 35.35  DEPARTMENT.] 
 35.36     All valid rules, orders, and directives heretofore 
 36.1   enforced, issued, or promulgated by the public service 
 36.2   department under authority of chapter 216, 216A, 216B, 216C, 
 36.3   218, 219, 221, ~~or~~ 222, 237, 238, or 239 shall remain and 
 36.4   continue in force and effect until repealed, modified, or 
 36.5   superseded by duly authorized rules, orders, or directives of 
 36.6   the public utilities commission ~~or~~, the commissioner of 
 36.7   transportation, or the commissioner of commerce. 
 36.8      Sec. 32.  Minnesota Statutes 2000, section 216A.085, 
 36.9   subdivision 3, is amended to read: 
 36.10     Subd. 3.  [STAFFING.] The intervention office shall be 
 36.11  under the control and supervision of the commissioner of ~~the~~ 
 36.12  ~~department of public service~~ commerce.  The commissioner may 
 36.13  hire staff or contract for outside services as needed to carry 
 36.14  out the purposes of this section.  The attorney general shall 
 36.15  act as counsel in all intervention proceedings.  
 36.16     Sec. 33.  Minnesota Statutes 2000, section 216B.02, 
 36.17  subdivision 1, is amended to read: 
 36.18     Subdivision 1.  [SCOPE.] For the purposes of ~~Laws 1974,~~ 
 36.19  ~~chapter 429~~ this chapter the terms defined in this section have 
 36.20  the meanings given them. 
 36.21     Sec. 34.  Minnesota Statutes 2000, section 216B.02, 
 36.22  subdivision 7, is amended to read: 
 36.23     Subd. 7.  [COMMISSION.] "Commission" means the public 
 36.24  utilities commission ~~of the department of public service~~. 
 36.25     Sec. 35.  Minnesota Statutes 2000, section 216B.02, 
 36.26  subdivision 8, is amended to read: 
 36.27     Subd. 8.  [DEPARTMENT.] "Department" means the department 
 36.28  of ~~public service~~ commerce of the state of Minnesota. 
 36.29     Sec. 36.  Minnesota Statutes 2000, section 216B.16, 
 36.30  subdivision 1, is amended to read: 
 36.31     Subdivision 1.  [NOTICE.] Unless the commission otherwise 
 36.32  orders, no public utility shall change a rate which has been 
 36.33  duly established under this chapter, except upon 60 days' notice 
 36.34  to the commission.  The notice shall include statements of 
 36.35  facts, expert opinions, substantiating documents, and exhibits, 
 36.36  supporting the change requested, and state the change proposed 
 37.1   to be made in the rates then in force and the time when the 
 37.2   modified rates will go into effect.  If the filing utility does 
 37.3   not have an approved conservation improvement plan on file with 
 37.4   the department ~~of public service~~, it shall also include in its 
 37.5   notice an energy conservation plan pursuant to section 
 37.6   216B.241.  The filing utility shall give written notice, as 
 37.7   approved by the commission, of the proposed change to the 
 37.8   governing body of each municipality and county in the area 
 37.9   affected.  All proposed changes shall be shown by filing new 
 37.10  schedules or shall be plainly indicated upon schedules on file 
 37.11  and in force at the time. 
 37.12     Sec. 37.  Minnesota Statutes 2000, section 216B.16, 
 37.13  subdivision 2, is amended to read: 
 37.14     Subd. 2.  [SUSPENSION OF PROPOSED RATE; HEARING; FINAL 
 37.15  DETERMINATION DEFINED.] (a) Whenever there is filed with the 
 37.16  commission a schedule modifying or resulting in a change in any 
 37.17  rates then in force as provided in subdivision 1, the commission 
 37.18  may suspend the operation of the schedule by filing with the 
 37.19  schedule of rates and delivering to the affected utility a 
 37.20  statement in writing of its reasons for the suspension at any 
 37.21  time before the rates become effective.  The suspension shall 
 37.22  not be for a longer period than ten months beyond the initial 
 37.23  filing date except as provided in this subdivision or 
 37.24  subdivision 1a.  
 37.25     (b) During the suspension the commission shall determine 
 37.26  whether all questions of the reasonableness of the rates 
 37.27  requested raised by persons deemed interested or by the 
 37.28  ~~administrative division of the~~ department ~~of public service~~ can 
 37.29  be resolved to the satisfaction of the commission.  If the 
 37.30  commission finds that all significant issues raised have not 
 37.31  been resolved to its satisfaction, or upon petition by ten 
 37.32  percent of the affected customers or 250 affected customers, 
 37.33  whichever is less, it shall refer the matter to the office of 
 37.34  administrative hearings with instructions for a public hearing 
 37.35  as a contested case pursuant to chapter 14, except as otherwise 
 37.36  provided in this section. 
 38.1      (c) The commission may order that the issues presented by 
 38.2   the proposed rate changes be bifurcated into two separate 
 38.3   hearings as follows:  (1) determination of the utility's revenue 
 38.4   requirements and (2) determination of the rate design.  Upon 
 38.5   issuance of both administrative law judge reports, the issues 
 38.6   shall again be joined for consideration and final determination 
 38.7   by the commission. 
 38.8      (d) All prehearing discovery activities of state agency 
 38.9   intervenors shall be consolidated and conducted by the 
 38.10  department of ~~public service~~ commerce. 
 38.11     (e) If the commission does not make a final determination 
 38.12  concerning a schedule of rates within ten months after the 
 38.13  initial filing date, the schedule shall be deemed to have been 
 38.14  approved by the commission; except if: 
 38.15     (1) an extension of the procedural schedule has been 
 38.16  granted under subdivision 1a, in which case the schedule of 
 38.17  rates is deemed to have been approved by the commission on the 
 38.18  last day of the extended period of suspension; or 
 38.19     (2) a settlement has been submitted to and rejected by the 
 38.20  commission and the commission does not make a final 
 38.21  determination concerning the schedule of rates, the schedule of 
 38.22  rates is deemed to have been approved 60 days after the initial 
 38.23  or, if applicable, the extended period of suspension. 
 38.24     (f) If the commission finds that it has insufficient time 
 38.25  during the suspension period to make a final determination of a 
 38.26  case involving changes in general rates because of the need to 
 38.27  make a final determination of another previously filed case 
 38.28  involving changes in general rates under this section or section 
 38.29  237.075, the commission may extend the suspension period to the 
 38.30  extent necessary to allow itself 20 working days to make the 
 38.31  final determination after it has made a final determination in 
 38.32  the previously filed case.  An extension of the suspension 
 38.33  period under this paragraph does not alter the setting of 
 38.34  interim rates under subdivision 3. 
 38.35     (g) For the purposes of this section, "final determination" 
 38.36  means the initial decision of the commission and not any order 
 39.1   which may be entered by the commission in response to a petition 
 39.2   for rehearing or other further relief.  The commission may 
 39.3   further suspend rates until it determines all those petitions. 
 39.4      Sec. 38.  Minnesota Statutes 2000, section 216B.16, 
 39.5   subdivision 6b, is amended to read: 
 39.6      Subd. 6b.  [ENERGY CONSERVATION IMPROVEMENT.] (a) Except as 
 39.7   otherwise provided in this subdivision, all investments and 
 39.8   expenses of a public utility as defined in section 216B.241, 
 39.9   subdivision 1, paragraph (e), incurred in connection with energy 
 39.10  conservation improvements shall be recognized and included by 
 39.11  the commission in the determination of just and reasonable rates 
 39.12  as if the investments and expenses were directly made or 
 39.13  incurred by the utility in furnishing utility service. 
 39.14     (b) After December 31, 1999, investments and expenses for 
 39.15  energy conservation improvements shall not be included by the 
 39.16  commission in the determination of just and reasonable electric 
 39.17  and gas rates for retail electric and gas service provided to 
 39.18  large electric customer facilities that have been exempted by 
 39.19  the commissioner of the department ~~of public service~~ pursuant to 
 39.20  section 216B.241, subdivision 1a, paragraph (b).  However, no 
 39.21  public utility shall be prevented from recovering its investment 
 39.22  in energy conservation improvements from all customers that were 
 39.23  made on or before December 31, 1999, in compliance with the 
 39.24  requirements of section 216B.241.  
 39.25     (c) The commission may permit a public utility to file rate 
 39.26  schedules providing for annual recovery of the costs of energy 
 39.27  conservation improvements.  These rate schedules may be 
 39.28  applicable to less than all the customers in a class of retail 
 39.29  customers if necessary to reflect the differing minimum spending 
 39.30  requirements of section 216B.241, subdivision 1a.  After 
 39.31  December 31, 1999, the commission shall allow a public utility, 
 39.32  without requiring a general rate filing under this section, to 
 39.33  reduce the electric and gas rates applicable to large electric 
 39.34  customer facilities that have been exempted by the commissioner 
 39.35  of the department ~~of public service~~ pursuant to section 
 39.36  216B.241, subdivision 1a, paragraph (b), by an amount that 
 40.1   reflects the elimination of energy conservation improvement 
 40.2   investments or expenditures for those facilities required on or 
 40.3   before December 31, 1999.  In the event that the commission has 
 40.4   set electric or gas rates based on the use of an accounting 
 40.5   methodology that results in the cost of conservation 
 40.6   improvements being recovered from utility customers over a 
 40.7   period of years, the rate reduction may occur in a series of 
 40.8   steps to coincide with the recovery of balances due to the 
 40.9   utility for conservation improvements made by the utility on or 
 40.10  before December 31, 1999.  
 40.11     Sec. 39.  Minnesota Statutes 2000, section 216B.16, 
 40.12  subdivision 15, is amended to read: 
 40.13     Subd. 15.  [LOW-INCOME RATE PROGRAMS; REPORT.] (a) The 
 40.14  commission may consider ability to pay as a factor in setting 
 40.15  utility rates and may establish programs for low-income 
 40.16  residential ratepayers in order to ensure affordable, reliable, 
 40.17  and continuous service to low-income utility customers.  The 
 40.18  commission shall order a pilot program for at least one 
 40.19  utility.  In ordering pilot programs, the commission shall 
 40.20  consider the following: 
 40.21     (1) the potential for low-income programs to provide 
 40.22  savings to the utility for all collection costs including but 
 40.23  not limited to:  costs of disconnecting and reconnecting 
 40.24  residential ratepayers' service, all activities related to the 
 40.25  utilities' attempt to collect past due bills, utility working 
 40.26  capital costs, and any other administrative costs related to 
 40.27  inability to pay programs and initiatives; 
 40.28     (2) the potential for leveraging federal low-income energy 
 40.29  dollars to the state; and 
 40.30     (3) the impact of energy costs as a percentage of the total 
 40.31  income of a low-income residential customer. 
 40.32     (b) In determining the structure of the pilot utility 
 40.33  program, the commission shall: 
 40.34     (1) consult with advocates for and representatives of 
 40.35  low-income utility customers, administrators of energy 
 40.36  assistance and conservation programs, and utility 
 41.1   representatives; 
 41.2      (2) coordinate eligibility for the program with the state 
 41.3   and federal energy assistance program and low-income residential 
 41.4   energy programs, including weatherization programs; and 
 41.5      (3) evaluate comprehensive low-income programs offered by 
 41.6   utilities in other states. 
 41.7      (c) The commission shall implement at least one pilot 
 41.8   project by January 1, 1995, and shall allow a utility required 
 41.9   to implement a pilot project to recover the net costs of the 
 41.10  project in the utility's rates. 
 41.11     ~~(d) The commission, in conjunction with the commissioner of~~ 
 41.12  ~~the department of public service and the commissioner of~~ 
 41.13  ~~economic security, shall review low-income rate programs and~~ 
 41.14  ~~shall report to the legislature by January 1, 1998.  The report~~ 
 41.15  ~~must include:~~ 
 41.16     ~~(1) the increase in federal energy assistance money~~ 
 41.17  ~~leveraged by the state as a result of this program;~~ 
 41.18     ~~(2) the effect of the program on low-income customer's~~ 
 41.19  ~~ability to pay energy costs;~~ 
 41.20     ~~(3) the effect of the program on utility customer bad debt~~ 
 41.21  ~~and arrearages;~~ 
 41.22     ~~(4) the effect of the program on the costs and numbers of~~ 
 41.23  ~~utility disconnections and reconnections and other costs~~ 
 41.24  ~~incurred by the utility in association with inability to pay~~ 
 41.25  ~~programs;~~ 
 41.26     ~~(5) the ability of the utility to recover the costs of the~~ 
 41.27  ~~low-income program without a general rate change;~~ 
 41.28     ~~(6) how other ratepayers have been affected by this~~ 
 41.29  ~~program;~~ 
 41.30     ~~(7) recommendations for continuing, eliminating, or~~ 
 41.31  ~~expanding the low-income pilot program; and~~ 
 41.32     ~~(8) how general revenue funds may be utilized in~~ 
 41.33  ~~conjunction with low-income programs.~~ 
 41.34     Sec. 40.  Minnesota Statutes 2000, section 216B.162, 
 41.35  subdivision 7, is amended to read: 
 41.36     Subd. 7.  [COMMISSION DETERMINATION.] (a) Except as 
 42.1   provided under subdivision 6, competitive rates offered by 
 42.2   electric utilities under this section must be filed with the 
 42.3   commission and must be approved, modified, or rejected by the 
 42.4   commission within 90 days.  The utility's filing must include 
 42.5   statements of fact demonstrating that the proposed rates meet 
 42.6   the standards of this subdivision.  The filing must be served on 
 42.7   the department ~~of public service~~ and the office of the attorney 
 42.8   general at the same time as it is served on the commission. 
 42.9      (b) In reviewing a specific rate proposal, the commission 
 42.10  shall determine: 
 42.11     (1) that the rate meets the terms and conditions in 
 42.12  subdivision 4, unless the commission determines that waiver of 
 42.13  one or more terms and conditions would be in the public 
 42.14  interest; 
 42.15     (2) that the consumer can obtain its energy requirements 
 42.16  from an energy supplier not rate-regulated by the commission 
 42.17  under section 216B.16; 
 42.18     (3) that the customer is not likely to take service from 
 42.19  the electric utility seeking to offer the competitive rate if 
 42.20  the customer was charged the electric utility's standard 
 42.21  tariffed rate; and 
 42.22     (4) that after consideration of environmental and 
 42.23  socioeconomic impacts it is in the best interest of all other 
 42.24  customers to offer the competitive rate to the customer subject 
 42.25  to effective competition. 
 42.26     (c) If the commission approves the competitive rate, it 
 42.27  becomes effective as agreed to by the electric utility and the 
 42.28  customer.  If the competitive rate is modified by the 
 42.29  commission, the commission shall issue an order modifying the 
 42.30  competitive rate subject to the approval of the electric utility 
 42.31  and the customer.  Each party has ten days in which to reject 
 42.32  the proposed modification.  If no party rejects the proposed 
 42.33  modification, the commissioner's order becomes final.  If either 
 42.34  party rejects the commission's proposed modification, the 
 42.35  electric utility, on its behalf or on the behalf of the 
 42.36  customer, may submit to the commission a modified version of the 
 43.1   commission's proposal.  The commission shall accept or reject 
 43.2   the modified version within 30 days.  If the commission rejects 
 43.3   the competitive rate, it shall issue an order indicating the 
 43.4   reasons for the rejection. 
 43.5      Sec. 41.  Minnesota Statutes 2000, section 216B.162, 
 43.6   subdivision 11, is amended to read: 
 43.7      Subd. 11.  [COMMISSION DETERMINATION.] (a) Proposals for 
 43.8   discretionary rate reductions offered by utilities must be filed 
 43.9   with the commission, with copies of the filing served upon the 
 43.10  department ~~of public service~~ and the office of attorney general 
 43.11  at the same time it is served upon the commission.  The 
 43.12  commission shall review the proposals according to procedures 
 43.13  developed under section 216B.05, subdivision 2a.  The commission 
 43.14  shall not approve discretionary rate reductions offered by 
 43.15  public utilities that do not have an accepted resource plan on 
 43.16  file with the commission.  The commission shall not approve 
 43.17  discretionary rate reductions unless the utility has made the 
 43.18  customer aware of all cost-effective opportunities for energy 
 43.19  efficiency improvements offered by the utility. 
 43.20     (b) Public utilities that provide service under 
 43.21  discretionary rate reductions shall not, through increased 
 43.22  revenue requirements or through prospective rate design changes, 
 43.23  recover any revenues foregone due to the discretionary rate 
 43.24  reductions, nor shall the commission grant such recovery. 
 43.25     Sec. 42.  Minnesota Statutes 2000, section 216B.1675, 
 43.26  subdivision 9, is amended to read: 
 43.27     Subd. 9.  [COMMISSION FINDINGS.] The commission shall issue 
 43.28  findings concerning the appropriateness of the proposed plan.  
 43.29  The commission may approve, reject, or modify the plan in a 
 43.30  manner which meets the requirements of this section.  An 
 43.31  approved or modified plan becomes effective unless the plan is 
 43.32  withdrawn by the utility within 30 days of a final appealable 
 43.33  order.  If the utility withdraws an approved or modified plan, 
 43.34  all of the administrative costs related to the plan that are 
 43.35  charged by the commission or the department ~~of public service~~ to 
 43.36  the utility may not be recovered from ratepayers in current or 
 44.1   subsequent rates.  A utility that withdraws an approved or 
 44.2   modified plan may not file another plan under this section for a 
 44.3   period of one year following the withdrawal of the plan. 
 44.4      Sec. 43.  Minnesota Statutes 2000, section 216B.241, 
 44.5   subdivision 1a, is amended to read: 
 44.6      Subd. 1a.  [INVESTMENT, EXPENDITURE, AND CONTRIBUTION; 
 44.7   PUBLIC UTILITY.] (a) For purposes of this subdivision and 
 44.8   subdivision 2, "public utility" has the meaning given it in 
 44.9   section 216B.02, subdivision 4.  Each public utility shall spend 
 44.10  and invest for energy conservation improvements under this 
 44.11  subdivision and subdivision 2 the following amounts: 
 44.12     (1) for a utility that furnishes gas service, 0.5 percent 
 44.13  of its gross operating revenues from service provided in the 
 44.14  state; 
 44.15     (2) for a utility that furnishes electric service, 1.5 
 44.16  percent of its gross operating revenues from service provided in 
 44.17  the state; and 
 44.18     (3) for a utility that furnishes electric service and that 
 44.19  operates a nuclear-powered electric generating plant within the 
 44.20  state, two percent of its gross operating revenues from service 
 44.21  provided in the state. 
 44.22     For purposes of this paragraph (a), "gross operating 
 44.23  revenues" do not include revenues from large electric customer 
 44.24  facilities exempted by the commissioner of the department ~~of~~ 
 44.25  ~~public service~~ pursuant to paragraph (b). 
 44.26     (b) The owner of a large electric customer facility may 
 44.27  petition the commissioner of the department ~~of public service~~ to 
 44.28  exempt both electric and gas utilities serving the large energy 
 44.29  customer facility from the investment and expenditure 
 44.30  requirements of paragraph (a) with respect to retail revenues 
 44.31  attributable to the facility.  At a minimum, the petition must 
 44.32  be supported by evidence relating to competitive or economic 
 44.33  pressures on the customer and a showing by the customer of 
 44.34  reasonable efforts to identify, evaluate, and implement 
 44.35  cost-effective conservation improvements at the facility.  If a 
 44.36  petition is filed on or before October 1 of any year, the order 
 45.1   of the commissioner to exempt revenues attributable to the 
 45.2   facility can be effective no earlier than January 1 of the 
 45.3   following year.  The commissioner shall not grant an exemption 
 45.4   if the commissioner determines that granting the exemption is 
 45.5   contrary to the public interest.  The commissioner may, after 
 45.6   investigation, rescind any exemption granted under this 
 45.7   paragraph upon a determination that cost-effective energy 
 45.8   conservation improvements are available at the large electric 
 45.9   customer facility.  For the purposes of this paragraph, 
 45.10  "cost-effective" means that the projected total cost of the 
 45.11  energy conservation improvement at the large electric customer 
 45.12  facility is less than the projected present value of the energy 
 45.13  and demand savings resulting from the energy conservation 
 45.14  improvement.  For the purposes of investigations by the 
 45.15  commissioner under this paragraph, the owner of any large 
 45.16  electric customer facility shall, upon request, provide the 
 45.17  commissioner with updated information comparable to that 
 45.18  originally supplied in or with the owner's original petition 
 45.19  under this paragraph. 
 45.20     (c) The commissioner may require investments or spending 
 45.21  greater than the amounts required under this subdivision for a 
 45.22  public utility whose most recent advance forecast required under 
 45.23  section 216B.2422 or 216C.17 projects a peak demand deficit of 
 45.24  100 megawatts or greater within five years under mid-range 
 45.25  forecast assumptions.  
 45.26     (d) A public utility or owner of a large electric customer 
 45.27  facility may appeal a decision of the commissioner under 
 45.28  paragraph (b) or (c) to the commission under subdivision 2.  In 
 45.29  reviewing a decision of the commissioner under paragraph (b) or 
 45.30  (c), the commission shall rescind the decision if it finds that 
 45.31  the required investments or spending will: 
 45.32     (1) not result in cost-effective energy conservation 
 45.33  improvements; or 
 45.34     (2) otherwise not be in the public interest. 
 45.35     (e) Each utility shall determine what portion of the amount 
 45.36  it sets aside for conservation improvement will be used for 
 46.1   conservation improvements under subdivision 2 and what portion 
 46.2   it will contribute to the energy and conservation account 
 46.3   established in subdivision 2a.  A public utility may propose to 
 46.4   the commissioner to designate that all or a portion of funds 
 46.5   contributed to the account established in subdivision 2a be used 
 46.6   for research and development projects.  Contributions must be 
 46.7   remitted to the commissioner ~~of public service~~ by February 1 of 
 46.8   each year.  Nothing in this subdivision prohibits a public 
 46.9   utility from spending or investing for energy conservation 
 46.10  improvement more than required in this subdivision. 
 46.11     Sec. 44.  Minnesota Statutes 2000, section 216B.241, 
 46.12  subdivision 1b, is amended to read: 
 46.13     Subd. 1b.  [CONSERVATION IMPROVEMENT BY COOPERATIVE 
 46.14  ASSOCIATION OR MUNICIPALITY.] (a) This subdivision applies to: 
 46.15     (1) a cooperative electric association that generates and 
 46.16  transmits electricity to associations that provide electricity 
 46.17  at retail including a cooperative electric association not 
 46.18  located in this state that serves associations or others in the 
 46.19  state; 
 46.20     (2) a municipality that provides electric service to retail 
 46.21  customers; and 
 46.22     (3) a municipality with gross operating revenues in excess 
 46.23  of $5,000,000 from sales of natural gas to retail customers.  
 46.24     (b) Each cooperative electric association and municipality 
 46.25  subject to this subdivision shall spend and invest for energy 
 46.26  conservation improvements under this subdivision the following 
 46.27  amounts: 
 46.28     (1) for a municipality, 0.5 percent of its gross operating 
 46.29  revenues from the sale of gas and one percent of its gross 
 46.30  operating revenues from the sale of electricity not purchased 
 46.31  from a public utility governed by subdivision 1a or a 
 46.32  cooperative electric association governed by this subdivision, 
 46.33  excluding gross operating revenues from electric and gas service 
 46.34  provided in the state to large electric customer facilities; and 
 46.35     (2) for a cooperative electric association, 1.5 percent of 
 46.36  its gross operating revenues from service provided in the state, 
 47.1   excluding gross operating revenues from service provided in the 
 47.2   state to large electric customer facilities indirectly through a 
 47.3   distribution cooperative electric association. 
 47.4      (c) Each municipality and cooperative association subject 
 47.5   to this subdivision shall identify and implement energy 
 47.6   conservation improvement spending and investments that are 
 47.7   appropriate for the municipality or association, except that a 
 47.8   municipality or association may not spend or invest for energy 
 47.9   conservation improvements that directly benefit a large electric 
 47.10  customer facility.  Each municipality and cooperative electric 
 47.11  association subject to this subdivision may spend and invest 
 47.12  annually up to 15 percent of the total amount required to be 
 47.13  spent and invested on energy conservation improvements under 
 47.14  this subdivision on research and development projects that meet 
 47.15  the definition of energy conservation improvement in subdivision 
 47.16  1 and that are funded directly by the municipality or 
 47.17  cooperative electric association.  Load management may be used 
 47.18  to meet the requirements of this subdivision if it reduces the 
 47.19  demand for or increases the efficiency of electric services.  A 
 47.20  generation and transmission cooperative electric association may 
 47.21  include as spending and investment required under this 
 47.22  subdivision conservation improvement spending and investment by 
 47.23  cooperative electric associations that provide electric service 
 47.24  at retail to consumers and that are served by the generation and 
 47.25  transmission association. 
 47.26     (d) By February 1 of each year, each municipality or 
 47.27  cooperative shall report to the commissioner its energy 
 47.28  conservation improvement spending and investments with a brief 
 47.29  analysis of effectiveness in reducing consumption of electricity 
 47.30  or gas.  The commissioner shall review each report and make 
 47.31  recommendations, where appropriate, to the municipality or 
 47.32  association to increase the effectiveness of conservation 
 47.33  improvement activities.  The commissioner shall also review each 
 47.34  report for whether a portion of the money spent on residential 
 47.35  conservation improvement programs is devoted to programs that 
 47.36  directly address the needs of renters and low-income persons 
 48.1   unless an insufficient number of appropriate programs are 
 48.2   available.  For the purposes of this subdivision and subdivision 
 48.3   2, "low-income" means an income of less than 185 percent of the 
 48.4   federal poverty level. 
 48.5      (e) As part of its spending for conservation improvement, a 
 48.6   municipality or association may contribute to the energy and 
 48.7   conservation account.  A municipality or association may propose 
 48.8   to the commissioner to designate that all or a portion of funds 
 48.9   contributed to the account be used for research and development 
 48.10  projects.  Any amount contributed must be remitted to the 
 48.11  commissioner ~~of public service~~ by February 1 of each year. 
 48.12     Sec. 45.  Minnesota Statutes 2000, section 216B.241, 
 48.13  subdivision 2b, is amended to read: 
 48.14     Subd. 2b.  [RECOVERY OF EXPENSES.] The commission shall 
 48.15  allow a utility to recover expenses resulting from a 
 48.16  conservation improvement program required by the department and 
 48.17  contributions to the energy and conservation account, unless the 
 48.18  recovery would be inconsistent with a financial incentive 
 48.19  proposal approved by the commission.  In addition, a utility may 
 48.20  file annually, or the public utilities commission may require 
 48.21  the utility to file, and the commission may approve, rate 
 48.22  schedules containing provisions for the automatic adjustment of 
 48.23  charges for utility service in direct relation to changes in the 
 48.24  expenses of the utility for real and personal property taxes, 
 48.25  fees, and permits, the amounts of which the utility cannot 
 48.26  control.  A public utility is eligible to file for adjustment 
 48.27  for real and personal property taxes, fees, and permits under 
 48.28  this subdivision only if, in the year previous to the year in 
 48.29  which it files for adjustment, it has spent or invested at least 
 48.30  1.75 percent of its gross revenues from provision of electric 
 48.31  service, excluding gross operating revenues from electric 
 48.32  service provided in the state to large electric customer 
 48.33  facilities for which the commissioner ~~of public service~~ has 
 48.34  issued an exemption under subdivision 1a, paragraph (b), and 0.6 
 48.35  percent of its gross revenues from provision of gas service, 
 48.36  excluding gross operating revenues from gas services provided in 
 49.1   the state to large electric customer facilities for which the 
 49.2   commissioner ~~of public service~~ has issued an exemption under 
 49.3   subdivision 1a, paragraph (b), for that year for energy 
 49.4   conservation improvements under this section. 
 49.5      Sec. 46.  Minnesota Statutes 2000, section 216C.01, 
 49.6   subdivision 1, is amended to read: 
 49.7      Subdivision 1.  [APPLICABILITY.] The definitions in this 
 49.8   section apply to ~~sections 216C.02, 216C.05, 216C.07 to 216C.19,~~ 
 49.9   ~~216C.20 to 216C.35, and 216C.373 to 216C.381~~ this chapter. 
 49.10     Sec. 47.  Minnesota Statutes 2000, section 216C.01, 
 49.11  subdivision 2, is amended to read: 
 49.12     Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
 49.13  commissioner of ~~the department of public service~~ commerce. 
 49.14     Sec. 48.  Minnesota Statutes 2000, section 216C.01, 
 49.15  subdivision 3, is amended to read: 
 49.16     Subd. 3.  [DEPARTMENT.] "Department" means the department 
 49.17  of ~~public service~~ commerce. 
 49.18     Sec. 49.  Minnesota Statutes 2000, section 216C.051, 
 49.19  subdivision 6, is amended to read: 
 49.20     Subd. 6.  [ASSESSMENT; APPROPRIATION.] On request by the 
 49.21  cochairs of the legislative task force and after approval of the 
 49.22  legislative coordinating commission, the commissioner of ~~the~~ 
 49.23  ~~department of public service~~ commerce shall assess from electric 
 49.24  utilities, in addition to assessments made under section 
 49.25  216B.62, the amount requested for the operation of the task 
 49.26  force not to exceed $700,000.  This authority to assess 
 49.27  continues until the commissioner has assessed a total of 
 49.28  $700,000.  The amount assessed under this section is 
 49.29  appropriated to the director of the legislative coordinating 
 49.30  commission for those purposes, and is available until expended. 
 49.31     Sec. 50.  Minnesota Statutes 2000, section 216C.37, 
 49.32  subdivision 1, is amended to read: 
 49.33     Subdivision 1.  [DEFINITIONS.] In this section:  
 49.34     (a) "Commissioner" means the commissioner of ~~public service~~ 
 49.35  commerce. 
 49.36     (b) "Energy conservation investments" means all capital 
 50.1   expenditures that are associated with conservation measures 
 50.2   identified in an energy project study, and that have a ten-year 
 50.3   or less payback period.  
 50.4      (c) "Municipality" means any county, statutory or home rule 
 50.5   charter city, town, school district, or any combination of those 
 50.6   units operating under an agreement to jointly undertake projects 
 50.7   authorized in this section.  
 50.8      (d) "Energy project study" means a study of one or more 
 50.9   energy-related capital improvement projects analyzed in 
 50.10  sufficient detail to support a financing application.  At a 
 50.11  minimum, it must include one year of energy consumption and cost 
 50.12  data, a description of existing conditions, a description of 
 50.13  proposed conditions, a detailed description of the costs of the 
 50.14  project, and calculations sufficient to document the proposed 
 50.15  energy savings. 
 50.16     Sec. 51.  Minnesota Statutes 2000, section 216C.40, 
 50.17  subdivision 4, is amended to read: 
 50.18     Subd. 4.  [CONDITION PRECEDENT.] The duties of the 
 50.19  department under this section are conditional on the 
 50.20  commissioner ~~of public service~~ finding that there will be at 
 50.21  least one public utility that will be subject to the assessment 
 50.22  created by Laws 1993, chapter 254, section 7. 
 50.23     Sec. 52.  Minnesota Statutes 2000, section 237.02, is 
 50.24  amended to read: 
 50.25     237.02 [GENERAL AUTHORITY OF DEPARTMENT AND COMMISSION; 
 50.26  DEFINITIONS.] 
 50.27     The department of ~~public service~~ commerce and the public 
 50.28  utilities commission~~, now existing under the laws of this state,~~ 
 50.29  are hereby vested with the same jurisdiction and supervisory 
 50.30  power over telephone and telecommunications companies doing 
 50.31  business in this state as ~~it now has~~ the commission's 
 50.32  predecessor, the railroad and warehouse commission, had over 
 50.33  railroad and express companies.  The definitions set forth 
 50.34  in ~~section~~ sections 216A.02 ~~shall apply~~ and 216B.02 also apply 
 50.35  to this chapter. 
 50.36     Sec. 53.  Minnesota Statutes 2000, section 237.075, 
 51.1   subdivision 2, is amended to read: 
 51.2      Subd. 2.  [SUSPENSION OF PROPOSED RATE; HEARING; FINAL 
 51.3   DETERMINATION DEFINED.] (a) Whenever there is filed with the 
 51.4   commission as provided in subdivision 1 a schedule modifying or 
 51.5   resulting in a change in any rate then in force, the commission 
 51.6   may suspend the operation of the schedule by filing with the 
 51.7   schedule of rates and delivering to the affected telephone 
 51.8   company a statement in writing of its reasons for the suspension 
 51.9   at any time before the rates become effective.  The suspension 
 51.10  shall not be for a longer period than ten months beyond the 
 51.11  initial filing date except as provided in paragraph (b).  During 
 51.12  the suspension the commission shall determine whether all 
 51.13  questions of the reasonableness of the rates requested raised by 
 51.14  persons deemed interested or by the ~~administrative division of~~ 
 51.15  ~~the~~ department ~~of public service~~ can be resolved to the 
 51.16  satisfaction of the commission.  If the commission finds that 
 51.17  all significant issues raised have not been resolved to its 
 51.18  satisfaction, or upon petition by ten percent of the affected 
 51.19  customers or 250 affected customers, whichever is less, it shall 
 51.20  refer the matter to the office of administrative hearings with 
 51.21  instructions for a public hearing as a contested case pursuant 
 51.22  to chapter 14, except as otherwise provided in this section.  
 51.23  The commission may order that the issues presented by the 
 51.24  proposed rate changes be bifurcated into two separate hearings 
 51.25  as follows:  (1) determination of the telephone company's 
 51.26  revenue requirements and (2) determination of the rate design.  
 51.27  Upon issuance of both administrative law judge reports, the 
 51.28  issues shall again be joined for consideration and final 
 51.29  determination by the commission.  All prehearing discovery 
 51.30  activities of state agency intervenors shall be consolidated and 
 51.31  conducted by the department of ~~public service~~ commerce.  If the 
 51.32  commission does not make a final determination concerning a 
 51.33  schedule of rates within ten months after the initial filing 
 51.34  date, the schedule shall be deemed to have been approved by the 
 51.35  commission; except if a settlement has been submitted to and 
 51.36  rejected by the commission, the schedule is deemed to have been 
 52.1   approved 12 months after the initial filing. 
 52.2      (b) If the commission finds that it has insufficient time 
 52.3   during the suspension period to make a final determination of a 
 52.4   case involving changes in general rates because of the need to 
 52.5   make final determinations of other previously filed cases 
 52.6   involving changes in general rates under this section or section 
 52.7   216B.16, the commission may extend the suspension period to the 
 52.8   extent necessary to allow itself 20 working days to make the 
 52.9   final determination after it has made final determinations in 
 52.10  the previously filed cases.  An extension of the suspension 
 52.11  period under this paragraph does not alter the setting of 
 52.12  interim rates under subdivision 3. 
 52.13     (c) For the purposes of this section, "final determination" 
 52.14  means the initial decision of the commission and not any order 
 52.15  which may be entered by the commission in response to a petition 
 52.16  for rehearing or other further relief.  The commission may 
 52.17  further suspend rates until it determines all those petitions. 
 52.18     Sec. 54.  Minnesota Statutes 2000, section 237.075, 
 52.19  subdivision 9, is amended to read: 
 52.20     Subd. 9.  [ELECTION ON REGULATION; COOPERATIVE, MUNICIPAL, 
 52.21  INDEPENDENT.] For the purposes of this section, "telephone 
 52.22  company" shall not include a cooperative telephone association 
 52.23  organized under the provisions of chapter 308A, an independent 
 52.24  telephone company, or a municipal, unless the cooperative 
 52.25  telephone association, independent telephone company, or 
 52.26  municipal makes the election provided in this subdivision. 
 52.27     A cooperative telephone association may elect to become 
 52.28  subject to rate regulation by the commission pursuant to this 
 52.29  section.  The election shall be (a) approved by the board of 
 52.30  directors of the association in accordance with the procedures 
 52.31  for amending the articles of incorporation contained in section 
 52.32  308A.135, excluding the filing requirements; or (b) approved by 
 52.33  a majority of members or stockholders voting by mail ballot 
 52.34  initiated by petition of no fewer than five percent of the 
 52.35  members or stockholders of the association.  The ballot to be 
 52.36  used for the election shall be approved by the board of 
 53.1   directors and the department ~~of public service~~.  The department 
 53.2   shall mail the ballots to the association's members who shall 
 53.3   return the ballots to the department.  The department will keep 
 53.4   the ballots sealed until a date agreed upon by the department 
 53.5   and the board of directors.  On this date, representatives of 
 53.6   the department and the association shall count the ballots.  If 
 53.7   a majority of the association's members who vote elect to become 
 53.8   subject to rate regulation by the commission, the election shall 
 53.9   be effective 30 days after the date the ballots are counted.  
 53.10  For purposes of this section, the term "member or stockholder"  
 53.11  shall mean either the member or stockholder of record or the 
 53.12  spouse of the member or stockholder unless the association has 
 53.13  been notified otherwise in writing.  
 53.14     A municipal may elect to become subject to rate regulation 
 53.15  by the commission pursuant to this section.  The election shall 
 53.16  be (a) approved by resolution of the governing body of the 
 53.17  municipality; or (b) approved by a majority of the customers of 
 53.18  the municipal voting by mail ballot initiated by petition of no 
 53.19  fewer than 20 percent of the customers of the municipal.  The 
 53.20  ballot to be used for the election shall be approved by the 
 53.21  governing body of the municipality and the department ~~of public~~ 
 53.22  ~~service~~.  The department shall mail the ballots to the 
 53.23  municipal's customers who shall return the ballots to the 
 53.24  department.  The department will keep the ballots sealed until a 
 53.25  date agreed upon by the department and the governing body of the 
 53.26  municipality.  On this date, representatives of the department 
 53.27  and the municipal shall count the ballots.  If a majority of the 
 53.28  customers of the municipal who vote elect to become subject to 
 53.29  rate regulation by the commission, the election shall be 
 53.30  effective 30 days after the date the ballots are counted.  For 
 53.31  purposes of this section, the term "customer" shall mean either 
 53.32  the person in whose name the telephone service is registered or 
 53.33  the spouse of the person unless the municipal utility has been 
 53.34  notified otherwise in writing.  
 53.35     An independent telephone company may elect to become 
 53.36  subject to rate regulation by the commission pursuant to this 
 54.1   section.  The election shall be (a) approved by the board of 
 54.2   directors of the company in accordance with the procedures for 
 54.3   amending the articles of incorporation contained in sections 
 54.4   302A.133 to 302A.139, excluding the filing requirements; or (b) 
 54.5   approved by a majority of subscribers voting by mail ballot 
 54.6   initiated by petition of no fewer than five percent of the 
 54.7   subscribers of the company.  The ballot to be used for the 
 54.8   election shall be approved by the board of directors and the 
 54.9   department ~~of public service~~.  The department shall mail the 
 54.10  ballots to the company's subscribers who shall return the 
 54.11  ballots to the department.  The department will keep the ballots 
 54.12  sealed until a date agreed upon by the department and the board 
 54.13  of directors.  On this date, representatives of the department 
 54.14  and the company shall count the ballots.  If a majority of the 
 54.15  company's subscribers who vote elect to become subject to rate 
 54.16  regulation by the commission, the election shall be effective 30 
 54.17  days after the date the ballots are counted.  For purposes of 
 54.18  this section the term "subscriber" shall mean either the person 
 54.19  in whose name the telephone service is registered or the spouse 
 54.20  of the person unless the independent telephone company has been 
 54.21  notified otherwise in writing.  
 54.22     Sec. 55.  Minnesota Statutes 2000, section 237.082, is 
 54.23  amended to read: 
 54.24     237.082 [TELECOMMUNICATION SERVICE; POLICY OF INCREASED 
 54.25  SPEED AND SERVICE.] 
 54.26     When setting rates, adopting rules, or issuing orders 
 54.27  related to telecommunication matters that affect deployment of 
 54.28  the infrastructure, the commission may apply the goals of: 
 54.29     (1) achieving economically efficient investment in: 
 54.30     (i) higher speed telecommunication services; and 
 54.31     (ii) greater capacity for voice, video, and data 
 54.32  transmission; and 
 54.33     (2) just and reasonable rates. 
 54.34     The department ~~of public service~~ may apply the same goals 
 54.35  in its regulation of and recommendations regarding 
 54.36  telecommunication services. 
 55.1      Sec. 56.  Minnesota Statutes 2000, section 237.21, is 
 55.2   amended to read: 
 55.3      237.21 [VALUATION OF TELEPHONE PROPERTY.] 
 55.4      In determining the value of any telephone property for rate 
 55.5   making purposes, no valuation shall be allowed upon the value of 
 55.6   any franchise granted by the state or any municipality where no 
 55.7   payment was or is being made to the state or municipality on 
 55.8   account thereof.  The requirement as to reasonableness of rates 
 55.9   shall apply to each exchange unit as well as to telephone plants 
 55.10  as a whole.  Provided, that in the case of a company operating a 
 55.11  telephone system consisting of more than one exchange in the 
 55.12  state, reasonableness of rates, as measured by earnings, shall 
 55.13  be determined by a reasonable return from the total operations 
 55.14  of the system within the state rather than by the return from 
 55.15  individual exchanges or services.  No telephone rates or charges 
 55.16  shall be allowed or approved by the commission under any 
 55.17  circumstances, which are inadequate and which are intended to or 
 55.18  naturally tend to destroy competition or produce a monopoly in 
 55.19  telephone service in the locality affected.  
 55.20     ~~Laws 1953, chapter 25, shall have no effect on proceedings~~ 
 55.21  ~~pending before the courts or the department of public service at~~ 
 55.22  ~~the time of its enactment.~~  
 55.23     Sec. 57.  Minnesota Statutes 2000, section 237.30, is 
 55.24  amended to read: 
 55.25     237.30 [TELEPHONE INVESTIGATION FUND; APPROPRIATION.] 
 55.26     The sum of $25,000 is hereby appropriated out of any moneys 
 55.27  in the state treasury not otherwise appropriated, to establish 
 55.28  and provide a revolving fund to be known as the Minnesota 
 55.29  Telephone Investigation Fund for the use of the department of 
 55.30  ~~public service~~ commerce and of the attorney general in 
 55.31  investigations, valuations, and revaluations under section 
 55.32  237.295.  All sums paid by the telephone companies to reimburse 
 55.33  the department ~~of public service~~ for its expenses pursuant to 
 55.34  section 237.295 shall be credited to the revolving fund and 
 55.35  shall be deposited in a separate bank account and not commingled 
 55.36  with any other state funds or moneys, but any balance in excess 
 56.1   of $25,000 in the revolving fund at the end of each fiscal year 
 56.2   shall be paid into the state treasury and credited to the 
 56.3   general fund.  The sum of $25,000 herein appropriated and all 
 56.4   subsequent credits to said revolving fund shall be paid upon the 
 56.5   warrant of the commissioner of finance upon application of the 
 56.6   department or of the attorney general to an aggregate amount of 
 56.7   not more than one-half of such sums to each of them, which 
 56.8   proportion shall be constantly maintained in all credits and 
 56.9   withdrawals from the revolving fund. 
 56.10     Sec. 58.  Minnesota Statutes 2000, section 237.462, 
 56.11  subdivision 6, is amended to read: 
 56.12     Subd. 6.  [EXPEDITED PROCEEDING.] (a) The commission may 
 56.13  order an expedited proceeding under section 237.61 and this 
 56.14  subdivision, in lieu of a contested case under chapter 14, to 
 56.15  develop an evidentiary record in any proceeding that involves 
 56.16  contested issues of material fact either upon request of a party 
 56.17  or upon the commission's own motion if the complaint alleges a 
 56.18  violation described in subdivision 1, clauses (1) to (4).  The 
 56.19  commission may order an expedited proceeding under this 
 56.20  subdivision if the commission finds an expedited proceeding is 
 56.21  in the public interest, regardless of whether all parties agree 
 56.22  to the expedited proceeding.  In determining whether to grant an 
 56.23  expedited proceeding, the commission may consider any evidence 
 56.24  of impairment of the provision of telecommunications service to 
 56.25  subscribers in the state or impairment of the provision of any 
 56.26  service or network element subject to the jurisdiction of the 
 56.27  commission.  
 56.28     (b) Any request for an expedited proceeding under this 
 56.29  subdivision must be noted in the title of the first filing by a 
 56.30  party.  The filing shall also state the specific circumstances 
 56.31  that the party believes warrant an expedited proceeding under 
 56.32  this subdivision.  
 56.33     (c) A complaint requesting an expedited proceeding, unless 
 56.34  filed by the department ~~of public service~~ or the attorney 
 56.35  general, must set forth the actions and the dates of the actions 
 56.36  taken by the party filing the complaint to attempt to resolve 
 57.1   the alleged violations with the party against whom the complaint 
 57.2   is filed, including any requests that the party against whom the 
 57.3   complaint is filed correct the conduct giving rise to the 
 57.4   violations alleged in the complaint.  If no such actions were 
 57.5   taken by the complainant, the complaint shall set forth the 
 57.6   reasons why no such actions were taken.  The commission may 
 57.7   order an expedited proceeding even if the filing complaint fails 
 57.8   to meet this requirement if the commission determines that it 
 57.9   would be in the public interest to go forward with the expedited 
 57.10  proceeding without information in the complaint on attempts to 
 57.11  resolve the dispute. 
 57.12     (d) The complaining party shall serve the complaint along 
 57.13  with any written discovery requests by hand delivery and 
 57.14  facsimile on the party against whom the complaint is filed, the 
 57.15  department ~~of public service~~, and the office of the attorney 
 57.16  general on the same day the complaint is filed with the 
 57.17  commission. 
 57.18     (e) The party responding to a complaint that includes a 
 57.19  request for an expedited proceeding under this subdivision shall 
 57.20  file an answer within 15 days after receiving the complaint.  
 57.21  The responding party shall state in the answer the party's 
 57.22  position on the request for an expedited proceeding.  The 
 57.23  responding party shall serve with the answer any objections to 
 57.24  any written discovery requests as well as any written discovery 
 57.25  requests the responding party wishes to serve on the complaining 
 57.26  party.  Except for stating any objections, the responding party 
 57.27  is not required to answer any written discovery requests under 
 57.28  this subdivision until a time established at a prehearing 
 57.29  conference.  The responding party shall serve a copy of the 
 57.30  answer and any discovery requests and objections on the 
 57.31  complaining party, the department ~~of public service~~, and office 
 57.32  of the attorney general by hand delivery and facsimile on the 
 57.33  same day as the answer is filed with the commission. 
 57.34     (f) Within 15 days of receiving the answer to a complaint 
 57.35  in a proceeding in which a party has requested an expedited 
 57.36  hearing, the commission shall determine whether the filing 
 58.1   warrants an expedited proceeding.  If the commission decides to 
 58.2   grant a request by a party or if the commission orders an 
 58.3   expedited proceeding on its own motion, the commission shall 
 58.4   conduct within seven days of the decision a prehearing 
 58.5   conference to schedule the evidentiary hearing.  During the 
 58.6   prehearing conference, the commission shall establish a 
 58.7   discovery schedule that requires all discovery to be completed 
 58.8   no later than three days before the start of the hearing.  An 
 58.9   evidentiary hearing under this subdivision must commence no 
 58.10  later than 45 days after the commission's decision to order an 
 58.11  expedited proceeding.  A quorum of the commission shall preside 
 58.12  at any evidentiary hearing under this subdivision unless all the 
 58.13  parties to the proceeding agree otherwise.  
 58.14     (g) All pleadings submitted under this subdivision must be 
 58.15  verified and all oral statements of fact made in a hearing or 
 58.16  deposition under this subdivision must be made under oath or 
 58.17  affirmation. 
 58.18     (h) The commission shall issue a written decision and final 
 58.19  order on the complaint within 15 days after the close of the 
 58.20  evidentiary hearing under this subdivision.  On the day of 
 58.21  issuance, the commission shall notify the parties by facsimile 
 58.22  that a final order has been issued and shall provide each party 
 58.23  with a copy of the final order. 
 58.24     (i) The commission may extend any time periods under this 
 58.25  subdivision if all parties to the proceeding agree to the 
 58.26  extension or if the commission finds the extension is necessary 
 58.27  to ensure a just resolution of the complaint. 
 58.28     (j) Except as otherwise provided in this subdivision, an 
 58.29  expedited proceeding under this subdivision shall be governed by 
 58.30  the following procedural rules: 
 58.31     (1) the parties shall have the discovery rights provided in 
 58.32  Minnesota Rules, parts 1400.6700 to 1400.7000; 
 58.33     (2) the parties shall have the right to cross-examine 
 58.34  witnesses as provided in section 14.60, subdivision 3; 
 58.35     (3) the admissibility of evidence and development of record 
 58.36  for decision shall be governed by section 14.60 and Minnesota 
 59.1   Rules, part 1400.7300; and 
 59.2      (4) the commission may apply other procedures or standards 
 59.3   included in the rules of the office of administrative hearings, 
 59.4   as necessary to ensure the fair and expeditious resolution of 
 59.5   disputes under this section. 
 59.6      Sec. 59.  Minnesota Statutes 2000, section 237.51, 
 59.7   subdivision 1, is amended to read: 
 59.8      Subdivision 1.  [CREATION.] The ~~department of public~~ 
 59.9   ~~service~~ commissioner of commerce shall administer through 
 59.10  interagency agreement with the ~~department~~ commissioner of human 
 59.11  services a program to distribute communication devices to 
 59.12  eligible communication-impaired persons and contract with a 
 59.13  local consumer group that serves communication-impaired persons 
 59.14  to create and maintain a telecommunication relay service.  For 
 59.15  purposes of sections 237.51 to 237.56, the department of ~~public~~ 
 59.16  ~~service~~ commerce and any organization with which it contracts 
 59.17  pursuant to this section or section 237.54, subdivision 2, are 
 59.18  not telephone companies or telecommunications carriers as 
 59.19  defined in section 237.01. 
 59.20     Sec. 60.  Minnesota Statutes 2000, section 237.51, 
 59.21  subdivision 5, is amended to read: 
 59.22     Subd. 5.  [~~DEPARTMENT OF PUBLIC SERVICE~~ COMMISSIONER OF 
 59.23  COMMERCE DUTIES.] In addition to any duties specified elsewhere 
 59.24  in sections 237.51 to 237.56, the ~~department of public service~~ 
 59.25  commissioner of commerce shall: 
 59.26     (1) prepare the reports required by section 237.55; 
 59.27     (2) administer the fund created in section 237.52; and 
 59.28     (3) adopt rules under chapter 14 to implement the 
 59.29  provisions of sections 237.50 to 237.56. 
 59.30     Sec. 61.  Minnesota Statutes 2000, section 237.51, 
 59.31  subdivision 5a, is amended to read: 
 59.32     Subd. 5a.  [DEPARTMENT OF HUMAN SERVICES DUTIES.] (a) In 
 59.33  addition to any duties specified elsewhere in sections 237.51 to 
 59.34  237.56, the ~~department~~ commissioner of human services shall: 
 59.35     (1) define economic hardship, special needs, and household 
 59.36  criteria so as to determine the priority of eligible applicants 
 60.1   for initial distribution of devices and to determine 
 60.2   circumstances necessitating provision of more than one 
 60.3   communication device per household; 
 60.4      (2) establish a method to verify eligibility requirements; 
 60.5      (3) establish specifications for communication devices to 
 60.6   be purchased under section 237.53, subdivision 3; and 
 60.7      (4) inform the public and specifically the community of 
 60.8   communication-impaired persons of the program.  
 60.9      (b) The ~~department~~ commissioner may establish an advisory 
 60.10  board to advise the department in carrying out the duties 
 60.11  specified in this section and to advise the ~~department of public~~ 
 60.12  ~~service~~ commissioner of commerce in carrying out ~~its~~ duties 
 60.13  under section 237.54.  If so established, the advisory board 
 60.14  must include, at a minimum, the following communication-impaired 
 60.15  persons: 
 60.16     (1) at least one member who is deaf; 
 60.17     (2) at least one member who is speech impaired; 
 60.18     (3) at least one member who is mobility impaired; and 
 60.19     (4) at least one member who is hard-of-hearing. 
 60.20     The membership terms, compensation, and removal of members 
 60.21  and the filling of membership vacancies are governed by section 
 60.22  15.059.  Advisory board meetings shall be held at the discretion 
 60.23  of the commissioner. 
 60.24     Sec. 62.  Minnesota Statutes 2000, section 237.52, 
 60.25  subdivision 2, is amended to read: 
 60.26     Subd. 2.  [ASSESSMENT.] The ~~department of public~~ 
 60.27  ~~service~~ commissioner of commerce shall annually recommend to the 
 60.28  commission an adequate and appropriate surcharge and budget to 
 60.29  implement sections 237.50 to 237.56.  The public utilities 
 60.30  commission shall review the budget for reasonableness and may 
 60.31  modify the budget to the extent it is unreasonable.  The 
 60.32  commission shall annually determine the funding mechanism to be 
 60.33  used within 60 days of receipt of the recommendation of the 
 60.34  department and shall order the imposition of surcharges 
 60.35  effective on the earliest practicable date.  The commission 
 60.36  shall establish a monthly charge no greater than 20 cents for 
 61.1   each customer access line, including trunk equivalents as 
 61.2   designated by the commission pursuant to section 403.11, 
 61.3   subdivision 1. 
 61.4      Sec. 63.  Minnesota Statutes 2000, section 237.52, 
 61.5   subdivision 4, is amended to read: 
 61.6      Subd. 4.  [APPROPRIATION.] Money in the fund is 
 61.7   appropriated to the ~~department of public service~~ commissioner of 
 61.8   commerce to implement sections 237.51 to 237.56. 
 61.9      Sec. 64.  Minnesota Statutes 2000, section 237.52, 
 61.10  subdivision 5, is amended to read: 
 61.11     Subd. 5.  [EXPENDITURES.] Money in the fund may only be 
 61.12  used for: 
 61.13     (1) expenses of the department of ~~public service~~ commerce, 
 61.14  including personnel cost, public relations, advisory board 
 61.15  members' expenses, preparation of reports, and other reasonable 
 61.16  expenses not to exceed ten percent of total program 
 61.17  expenditures; 
 61.18     (2) reimbursing the commissioner of human services for 
 61.19  purchases made or services provided pursuant to section 237.53; 
 61.20     (3) reimbursing telephone companies for purchases made or 
 61.21  services provided under section 237.53, subdivision 5; and 
 61.22     (4) contracting for establishment and operation of the 
 61.23  telecommunication relay service required by section 237.54. 
 61.24     All costs directly associated with the establishment of the 
 61.25  program, the purchase and distribution of communication devices, 
 61.26  and the establishment and operation of the telecommunication 
 61.27  relay service are either reimbursable or directly payable from 
 61.28  the fund after authorization by the ~~department of public service~~ 
 61.29  commissioner of commerce.  The ~~department of public~~ 
 61.30  ~~service~~ commissioner of commerce shall contract with the message 
 61.31  relay service operator to indemnify the local exchange carriers 
 61.32  of the relay service for any fines imposed by the Federal 
 61.33  Communications Commission related to the failure of the relay 
 61.34  service to comply with federal service standards.  
 61.35  Notwithstanding section 16A.41, the ~~department of public service~~ 
 61.36  commissioner may advance money to the contractor of the 
 62.1   telecommunication relay service if the contractor establishes to 
 62.2   the ~~department's~~ commissioner's satisfaction that the advance 
 62.3   payment is necessary for the operation of the service.  The 
 62.4   advance payment may be used only for working capital reserve for 
 62.5   the operation of the service.  The advance payment must be 
 62.6   offset or repaid by the end of the contract fiscal year together 
 62.7   with interest accrued from the date of payment.  
 62.8      Sec. 65.  Minnesota Statutes 2000, section 237.54, 
 62.9   subdivision 2, is amended to read: 
 62.10     Subd. 2.  [OPERATION.] The ~~department of public~~ 
 62.11  ~~service~~ commissioner of commerce shall contract with a local 
 62.12  consumer organization that serves communication-impaired persons 
 62.13  for operation and maintenance of the telecommunication relay 
 62.14  system.  The ~~department~~ commissioner may contract with other 
 62.15  than a local consumer organization if no local consumer 
 62.16  organization is available to enter into or perform a reasonable 
 62.17  contract or the only available consumer organization fails to 
 62.18  comply with terms of a contract.  The operator of the system 
 62.19  shall keep all messages confidential, shall train personnel in 
 62.20  the unique needs of communication-impaired people, and shall 
 62.21  inform communication-impaired persons and the public of the 
 62.22  availability and use of the system.  The operator shall not 
 62.23  relay a message unless it originates or terminates through a 
 62.24  communication device for the deaf or a Brailling device for use 
 62.25  with a telephone. 
 62.26     Sec. 66.  Minnesota Statutes 2000, section 237.55, is 
 62.27  amended to read: 
 62.28     237.55 [ANNUAL REPORT ON COMMUNICATION ACCESS.] 
 62.29     The ~~department of public service~~ commissioner of commerce 
 62.30  must prepare a report for presentation to the commission by 
 62.31  January 31 of each year.  Each report must review the 
 62.32  accessibility of the telephone system to communication-impaired 
 62.33  persons, review the ability of non-communication-impaired 
 62.34  persons to communicate with communication-impaired persons via 
 62.35  the telephone system, describe services provided, account for 
 62.36  money received and disbursed annually for each aspect of the 
 63.1   program to date, and include predicted future operation. 
 63.2      Sec. 67.  Minnesota Statutes 2000, section 237.59, 
 63.3   subdivision 2, is amended to read: 
 63.4      Subd. 2.  [PETITION.] (a) A telephone company, or the 
 63.5   commission on its own motion, may petition to have a service of 
 63.6   that telephone company classified as subject to effective 
 63.7   competition or emerging competition.  The petition must be 
 63.8   served on the commission, the department ~~of public service~~, the 
 63.9   office of the attorney general, and any other person designated 
 63.10  by the commission.  The petition must contain at least: 
 63.11     (1) a list of the known alternative providers of the 
 63.12  service available to the company's customers; and 
 63.13     (2) a description of affiliate relationships with any other 
 63.14  provider of the service in the company's market. 
 63.15     (b) At the time the company first offers a service, it 
 63.16  shall also file a petition with the commission for a 
 63.17  determination as to how the service should be classified.  In 
 63.18  the event that no interested party or the commission objects to 
 63.19  the company's proposed classification within 20 days of the 
 63.20  filing of the petition, the company's proposed classification of 
 63.21  the service is deemed approved.  If an objection is filed, the 
 63.22  commission shall determine the appropriate classification after 
 63.23  a hearing conducted pursuant to section 237.61.  In either 
 63.24  event, the company may offer the new service to its customers 
 63.25  ten days after the company files the price list and incremental 
 63.26  cost study as provided in section 237.60, subdivision 2, 
 63.27  paragraph (f). 
 63.28     (c) A new service may be classified as subject to effective 
 63.29  competition or emerging competition pursuant to the criteria set 
 63.30  forth in subdivision 5.  A new service must be regulated under 
 63.31  the emerging competition provisions if it is not integrally 
 63.32  related to the provision of adequate local service or access to 
 63.33  the telephone network or to the privacy, health, or safety of 
 63.34  the company's customers, whether or not it meets the criteria 
 63.35  set forth in subdivision 5. 
 63.36     Sec. 68.  Minnesota Statutes 2000, section 237.768, is 
 64.1   amended to read: 
 64.2      237.768 [PERIODIC FINANCIAL REPORT.] 
 64.3      In addition to the reports required under section 237.766, 
 64.4   an alternative regulation plan may require a telephone company 
 64.5   to file with the department an annual report of financial 
 64.6   matters for the previous calendar year on or before May 1 of 
 64.7   each year on report forms furnished by the department ~~of public~~ 
 64.8   ~~service~~ in the same manner as is required of other telephone 
 64.9   companies on August 1, 1995.  In addition, any company subject 
 64.10  to a plan shall file with the commission and department a copy 
 64.11  of any filings it has made to the Federal Communications 
 64.12  Commission regarding the provisions of video programming 
 64.13  provided through a video dial tone facility in Minnesota.  An 
 64.14  alternative regulation plan may require a telephone company to 
 64.15  maintain its accounts in accordance with the system of accounts 
 64.16  prescribed for the company by the commission under section 
 64.17  237.10. 
 64.18     Sec. 69.  Minnesota Statutes 2000, section 239.01, is 
 64.19  amended to read: 
 64.20     239.01 [WEIGHTS AND MEASURES DIVISION; JURISDICTION.] 
 64.21     The weights and measures division, referred to in this 
 64.22  chapter as the division, is created under the jurisdiction of 
 64.23  the department of ~~public service~~ commerce.  The division has 
 64.24  supervision and control over all weights, weighing devices, and 
 64.25  measures in the state. 
 64.26     Sec. 70.  Minnesota Statutes 2000, section 239.10, is 
 64.27  amended to read: 
 64.28     239.10 [ANNUAL INSPECTION.] 
 64.29     Subdivision 1.  [LIGHT CAPACITY SCALES; RETAIL 
 64.30  ESTABLISHMENTS.] The director shall inspect light capacity 
 64.31  scales in retail establishments such as grocery stores, other 
 64.32  retail food establishments, or hardware stores, not more often 
 64.33  than once every 36 months except when the owner requests an 
 64.34  inspection, when the scale is inspected as part of an 
 64.35  investigation, or when the scale has been repaired. 
 64.36     Subd. 2.  [PACKAGED FOOD COMMODITIES.] The director shall 
 65.1   inspect packaged food commodities in grocery stores and other 
 65.2   retail food establishments not more often than once every 36 
 65.3   months except when the owner requests an inspection or when 
 65.4   packages are inspected as part of an investigation. 
 65.5      Subd. 3.  [OTHER WEIGHTS AND MEASURES.] The director shall 
 65.6   inspect all weights and measures, except those specified in 
 65.7   subdivisions 1 and 2, annually, or as often as deemed possible 
 65.8   within budget and staff limitations. 
 65.9      Sec. 71.  Minnesota Statutes 2000, section 325E.11, is 
 65.10  amended to read: 
 65.11     325E.11 [COLLECTION FACILITIES; NOTICE.] 
 65.12     (a) Any person selling at retail or offering motor oil or 
 65.13  motor oil filters for retail sale in this state shall: 
 65.14     (1) post a notice indicating the nearest location where 
 65.15  used motor oil and used motor oil filters may be returned at no 
 65.16  cost for recycling or reuse, post a toll-free telephone number 
 65.17  that may be called by the public to determine a convenient 
 65.18  location, or post a listing of locations where used motor oil 
 65.19  and used motor oil filters may be returned at no cost for 
 65.20  recycling or reuse; or 
 65.21     (2) if the person is subject to section 325E.112, 
 65.22  subdivision 1, paragraph (b), post a notice informing customers 
 65.23  purchasing motor oil or motor oil filters of the location of the 
 65.24  used motor oil and used motor oil filter collection site 
 65.25  established by the retailer in accordance with section 325E.112, 
 65.26  subdivision 1, paragraph (b), where used motor oil and used 
 65.27  motor oil filters may be returned at no cost. 
 65.28     (b) A notice under paragraph (a) shall be posted on or 
 65.29  adjacent to the motor oil and motor oil filter displays, be at 
 65.30  least 8-1/2 inches by 11 inches in size, contain the universal 
 65.31  recycling symbol with the following language: 
 65.32     (1) "It is illegal to put used oil and used motor oil 
 65.33  filters in the garbage."; 
 65.34     (2) "Recycle your used oil and used motor oil filters."; 
 65.35  and 
 65.36     (3)(i) "There is a free collection site here for your used 
 66.1   oil and used motor oil filters."; 
 66.2      (ii) "There is a free collection site for used oil and used 
 66.3   motor oil filters located at (name of business and street 
 66.4   address)."; 
 66.5      (iii) "For the location of a free collection site for used 
 66.6   oil and used motor oil filters call (toll-free phone number)."; 
 66.7   or 
 66.8      (iv) "Here is a list of free collection sites for used oil 
 66.9   and used motor oil filters." 
 66.10     (c) The division of weights and measures ~~under~~ in the 
 66.11  department of ~~public service~~ commerce shall enforce compliance 
 66.12  with this section as provided in section 239.54.  The pollution 
 66.13  control agency shall enforce compliance with this section under 
 66.14  sections 115.071 and 116.072 in coordination with the division 
 66.15  of weights and measures. 
 66.16     Sec. 72.  Minnesota Statutes 2000, section 325E.115, 
 66.17  subdivision 2, is amended to read: 
 66.18     Subd. 2.  [COMPLIANCE; MANAGEMENT.] The division of weights 
 66.19  and measures ~~under~~ in the department of ~~public service~~ commerce 
 66.20  shall enforce compliance of subdivision 1 as provided in section 
 66.21  239.54.  The commissioner of the pollution control agency shall 
 66.22  inform persons governed by subdivision 1 of requirements for 
 66.23  managing lead acid batteries.  
 66.24     Sec. 73.  Minnesota Statutes 2000, section 326.243, is 
 66.25  amended to read: 
 66.26     326.243 [SAFETY STANDARDS.] 
 66.27     All electrical wiring, apparatus and equipment for electric 
 66.28  light, heat and power, alarm and communication systems shall 
 66.29  comply with the rules of the department of ~~public service, the~~ 
 66.30  ~~commissioner of~~ commerce~~,~~ or the department of labor and 
 66.31  industry, as applicable, and be installed in conformity with 
 66.32  accepted standards of construction for safety to life and 
 66.33  property.  For the purposes of this chapter, the rules and 
 66.34  safety standards stated at the time the work is done in the then 
 66.35  most recently published edition of the National Electrical Code 
 66.36  as adopted by the National Fire Protection Association, Inc. and 
 67.1   approved by the American National Standards Institute, and the 
 67.2   National Electrical Safety Code as published by the Institute of 
 67.3   Electrical and Electronics Engineers, Inc. and approved by the 
 67.4   American National Standards Institute, shall be prima facie 
 67.5   evidence of accepted standards of construction for safety to 
 67.6   life and property; provided further, that in the event a 
 67.7   Minnesota Building Code is formulated pursuant to section 
 67.8   16B.61, containing approved methods of electrical construction 
 67.9   for safety to life and property, compliance with said methods of 
 67.10  electrical construction of said Minnesota Building Code shall 
 67.11  also constitute compliance with this section, and provided 
 67.12  further, that nothing herein contained shall prohibit any 
 67.13  political subdivision from making and enforcing more stringent 
 67.14  requirements than set forth herein and such requirements shall 
 67.15  be complied with by all licensed electricians working within the 
 67.16  jurisdiction of such political subdivisions.  
 67.17     Sec. 74.  Minnesota Statutes 2000, section 484.50, is 
 67.18  amended to read: 
 67.19     484.50 [SUMMONS; PLACE OF TRIAL; ST. LOUIS COUNTY.] 
 67.20     A party wishing to have an appeal from an order of the 
 67.21  ~~department of public service~~ public utilities commission, an 
 67.22  election contest, a lien foreclosure, or a civil cause or 
 67.23  proceeding of a kind commenced or appealed by a party in the 
 67.24  court, tried in the city of Virginia shall, in the summons, 
 67.25  notice of appeal in a matter, or other jurisdictional instrument 
 67.26  issued, in addition to the usual provisions, print, stamp, or 
 67.27  write thereon the words, "to be tried at the city of Virginia," 
 67.28  and a party wishing a matter commenced or appealed by a party in 
 67.29  the court tried at the city of Hibbing shall, in the summons, 
 67.30  notice of appeal in a matter, or other jurisdictional instrument 
 67.31  issued, in addition to the usual provisions, print, stamp, or 
 67.32  write thereon the words, "to be tried at the city of Hibbing," 
 67.33  and in a case where a summons, notice of appeal in a matter, or 
 67.34  other jurisdictional instrument contains a specification, the 
 67.35  case shall be tried at the city of Virginia, or the city of 
 67.36  Hibbing, as the case may be, unless the defendant shall have the 
 68.1   place of trial fixed in the manner specified in this section. 
 68.2      If the place of trial designated is not the proper place of 
 68.3   trial, as specified in sections 484.44 to 484.52, the cause 
 68.4   shall nevertheless be tried in a place, unless the defendant, in 
 68.5   an answer in addition to the other allegations of defense, shall 
 68.6   plead the location of the defendant's residence, and demand that 
 68.7   the action be tried at the place of holding the court nearest 
 68.8   the defendant's residence, as provided in this section; and in a 
 68.9   case where the answer of the defendant pleads the place of 
 68.10  residence and makes a demand of place of trial, the plaintiff, 
 68.11  in reply, may admit or deny the allegations of residence, and if 
 68.12  the allegations of residence are not expressly denied, the case 
 68.13  shall be tried at the place demanded by the defendant, and if 
 68.14  the allegations of residence are denied, the place of trial 
 68.15  shall be determined by the court on motion. 
 68.16     If there are several defendants, residing at different 
 68.17  places in a county, the trial shall be at the place in which the 
 68.18  majority of the defendants unite in demanding, or if the numbers 
 68.19  are equal, at the place nearest the residence of the majority of 
 68.20  the defendants. 
 68.21     The venue of an action may be changed from one of these 
 68.22  places to another, by order of the court, in the following cases:
 68.23     (1) Upon written consent of the parties; 
 68.24     (2) When it appears, on motion, that a party has been made 
 68.25  a defendant for the purpose of preventing a change of venue as 
 68.26  provided in this section; 
 68.27     (3) When an impartial trial cannot be held in the place 
 68.28  where the action is pending; or 
 68.29     (4) When the convenience of witnesses and the ends of 
 68.30  justice would be promoted by the change. 
 68.31     Application for a change under clause (2), (3), or (4), 
 68.32  shall be made by motion which shall be returnable and heard at 
 68.33  the place of commencement of the action. 
 68.34     Sec. 75.  [INSTRUCTION TO REVISOR.] 
 68.35     The revisor of statutes shall change the words "public 
 68.36  service" to the word "commerce" in the following sections of 
 69.1   Minnesota Statutes:  13.68; 13.681; 17A.04, subdivisions 6, 7, 
 69.2   and 8; 17A.10, subdivision 1; 41A.09, subdivision 7; 116C.03, 
 69.3   subdivision 2; 160.262, subdivision 3; 216A.085, subdivision 1; 
 69.4   216B.241, subdivision 1; 237.295, subdivision 1; 237.662, 
 69.5   subdivision 3; 237.70, subdivision 7; 239.05, subdivisions 6c, 
 69.6   7a, 8, and 8c; 272.0211, subdivision 1; 296A.02, subdivision 1; 
 69.7   308A.210, subdivisions 5 and 6; 325F.733, subdivision 7; and 
 69.8   469.164, subdivision 2. 
 69.9      Sec. 76.  [REPEALER.] 
 69.10     Minnesota Statutes 2000, sections 216A.06; and 237.69, 
 69.11  subdivision 3, are repealed. 
 69.12     Sec. 77.  [EFFECTIVE DATE.] 
 69.13     This article is effective July 1, 2001. 
 69.14                             ARTICLE 3 
 69.15            ECONOMIC DEVELOPMENT AND JOBS APPROPRIATIONS 
 69.16  Section 1.  [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 
 69.17     The sums shown in the columns marked "APPROPRIATIONS" are 
 69.18  appropriated from the general fund, or another named fund, to 
 69.19  the agencies and for the purposes specified in this act, to be 
 69.20  available for the fiscal years indicated for each purpose.  The 
 69.21  figures "2002" and "2003," where used in this act, mean that the 
 69.22  appropriation or appropriations listed under them are available 
 69.23  for the year ending June 30, 2002, or June 30, 2003, 
 69.24  respectively.  The term "first year" means the fiscal year 
 69.25  ending June 30, 2002, and "second year" means the fiscal year 
 69.26  ending June 30, 2003. 
 69.27                          SUMMARY BY FUND
 69.28                            2002          2003           TOTAL
 69.29  General              $105,695,000    $80,019,000   $185,714,000
 69.30  Remediation Fund          700,000        700,000      1,400,000
 69.31  TANF                      750,000        750,000      1,500,000
 69.32  Workforce
 69.33  Development Fund       13,674,000      4,770,000     18,444,000
 69.34  TOTAL                $120,819,000    $86,239,000   $207,058,000
 69.35                                             APPROPRIATIONS 
 69.36                                         Available for the Year 
 69.37                                             Ending June 30 
 69.38                                            2002         2003 
 70.1   Sec. 2.  TRADE AND ECONOMIC DEVELOPMENT 
 70.2   Subdivision 1.  Total       
 70.3   Appropriation                         65,165,000     37,188,000
 70.4                 Summary by Fund
 70.5   General              60,343,000    35,538,000
 70.6   TANF                    750,000       750,000
 70.7   Remediation Fund        700,000       700,000 
 70.8   Workforce 
 70.9   Development Fund      6,972,000       300,000 
 70.10  The amounts that may be spent from this 
 70.11  appropriation for each program are 
 70.12  specified in the following subdivisions.
 70.13  Subd. 2.  Business and Community 
 70.14  Development                            35,759,000    11,062,000
 70.15                Summary by Fund
 70.16  General             30,487,000     10,362,000
 70.17  Remediation Fund       700,000        700,000
 70.18  Workforce 
 70.19  Development Fund     4,572,000        -0-    
 70.20  $12,700,000 is for a grant to the board 
 70.21  of regents of the University of 
 70.22  Minnesota for the university's 
 70.23  contribution to the North Star Research 
 70.24  Coalition.  Of this amount, $3,200,000 
 70.25  is for the coalition to invest in the 
 70.26  biomedical innovation and 
 70.27  commercialization initiative.  Of the 
 70.28  remainder, 80 percent is for a 
 70.29  permanent endowment to be maintained by 
 70.30  the coalition and 20 percent is for 
 70.31  grants in the biennium.  The 
 70.32  commissioner of finance may not release 
 70.33  this appropriation until the board of 
 70.34  regents certifies that a tax-exempt 
 70.35  corporation in a form complying with 
 70.36  Minnesota Statutes, section 137.45, has 
 70.37  been established.  The commissioner 
 70.38  shall release the money appropriated, 
 70.39  as a one-for-one match for money 
 70.40  contributed directly to the coalition 
 70.41  from nonstate sources, or as a 
 70.42  one-for-one match with respect to 
 70.43  individual research projects funded by 
 70.44  the coalition for which a match from 
 70.45  nonstate sources is required by the 
 70.46  coalition or is available.  The 
 70.47  appropriation shall be released on a 
 70.48  quarterly basis until the appropriation 
 70.49  is expended.  Notwithstanding any law 
 70.50  to the contrary, this appropriation 
 70.51  shall not cancel, but is available 
 70.52  until expended.  It is the intention of 
 70.53  the legislature that the base funding 
 70.54  in fiscal year 2004 for the North Star 
 70.55  Coalition be $25,000,000.  Of this 
 70.56  amount, $5,000,000 is for investment in 
 70.57  the biomedical innovation and 
 71.1   commercialization initiative. 
 71.2   $1,300,000 the first year is for 
 71.3   purposes of the redevelopment grant 
 71.4   program under Minnesota Statutes, 
 71.5   sections 116J.561 to 116J.567.  Funds 
 71.6   not expended in the first year are 
 71.7   available in the second year.  This is 
 71.8   a one-time appropriation. 
 71.9   $1,000,000 the first year is for 
 71.10  payment to the metropolitan council for 
 71.11  livable communities grants.  The 
 71.12  commissioner must transfer the amount 
 71.13  to the metropolitan council upon 
 71.14  receipt of a certified copy of a 
 71.15  council resolution requesting payment.  
 71.16  The appropriation must be used by the 
 71.17  council for grants to metropolitan 
 71.18  local governmental units, as defined in 
 71.19  Minnesota Statutes, section 473.121, 
 71.20  subdivision 6.  A local governmental 
 71.21  unit that receives a grant is 
 71.22  authorized to enter into any agreements 
 71.23  or contracts necessary for the purposes 
 71.24  of this section.  This is a one-time 
 71.25  appropriation.  Funds not expended the 
 71.26  first year are available the second. 
 71.27  $150,000 the first year from the 
 71.28  workforce development fund is for the 
 71.29  purpose of capacity building grants to 
 71.30  community foundations. 
 71.31  $1,000,000 the first year is for a 
 71.32  grant to Camp Knutson for capital 
 71.33  improvements.  This is a one-time 
 71.34  expenditure, and funds not spent the 
 71.35  first year are available the second. 
 71.36  $300,000 the first year from the 
 71.37  workforce development fund is for 
 71.38  northeast entrepreneur fund initiative 
 71.39  grants.  This is a one-time 
 71.40  expenditure, and funds not spent the 
 71.41  first year are available the second. 
 71.42  $500,000 the first year from the 
 71.43  workforce development fund is for 
 71.44  microenterprise technical assistance 
 71.45  grants to small businesses. 
 71.46  $900,000 the first year from the 
 71.47  workforce development fund is for a 
 71.48  grant to the city of Duluth to support 
 71.49  the development of the Duluth 
 71.50  Technology Village.  The grant is a 
 71.51  one-time expenditure, and funds not 
 71.52  spent the first year are available the 
 71.53  second. 
 71.54  $500,000 the first year from the 
 71.55  workforce development fund is for a 
 71.56  grant to the rural policy and 
 71.57  development center at Minnesota State 
 71.58  University, Mankato.  The funds not 
 71.59  spent the first year are available the 
 71.60  second. 
 71.61  $1,000,000 is for a grant to the cities 
 71.62  of Ada, Breckenridge, East Grand Forks, 
 72.1   and Warren.  Of that amount, $478,000 
 72.2   is to reimburse Ada for bond interest 
 72.3   expenses in connection with temporary 
 72.4   financing in anticipation of financing 
 72.5   by the Federal Emergency Management 
 72.6   Agency (FEMA) for 1997 flood recovery 
 72.7   work in that city.  $119,000 is to 
 72.8   reimburse Breckenridge, $321,000 is to 
 72.9   reimburse East Grand Forks, and $82,000 
 72.10  is to reimburse Warren for lost 
 72.11  interest in connection with 
 72.12  expenditures in anticipation of 
 72.13  financing by FEMA for 1997 flood 
 72.14  recovery work in those cities. 
 72.15  $1,775,000 the first year is for 
 72.16  purposes of tornado relief to the 
 72.17  Granite Falls area.  This appropriation 
 72.18  shall be spent as follows: 
 72.19  (1) $1,400,000 to the Minnesota 
 72.20  investment fund for grants to local 
 72.21  units of government for locally 
 72.22  administered operating loan programs 
 72.23  for businesses directly and adversely 
 72.24  affected by the July 25, 2000, 
 72.25  tornadoes.  Loan criteria and 
 72.26  requirements must be locally 
 72.27  established with approval by the 
 72.28  department.  For the purposes of this 
 72.29  appropriation, Minnesota Statutes, 
 72.30  section 116J.8731, subdivisions 3, 4, 
 72.31  5, and 7, is waived.  Businesses that 
 72.32  receive grants or loans from this 
 72.33  appropriation shall set goals for jobs 
 72.34  retained and wages paid within the 
 72.35  areas designated in amendment number 5 
 72.36  and amendment number 6 to the 
 72.37  Presidential Declaration of Major 
 72.38  Disaster, DR1333; and 
 72.39  (2) $375,000 is for a grant to project 
 72.40  turnabout, a residential compulsive 
 72.41  gambling treatment facility. 
 72.42  $1,200,000 the first year is for a 
 72.43  grant to the city of St. Paul for the 
 72.44  planning, predesign, and design of the 
 72.45  new Roy Wilkins auditorium and exhibit 
 72.46  hall. 
 72.47  $250,000 the first year from the 
 72.48  workforce development fund is for a 
 72.49  grant to the Albert Lea port authority 
 72.50  to remodel a building in the Northaire 
 72.51  Industrial Park for use as a business 
 72.52  development center.  This appropriation 
 72.53  is available until expended. 
 72.54  $200,000 the first year is for a grant 
 72.55  to Koochiching county to construct a 
 72.56  North American bear center called the 
 72.57  Big Bear Country Education and Logging 
 72.58  Center. 
 72.59  $375,000 the first year from the 
 72.60  workforce development fund is for 
 72.61  grants of $125,000 each to the counties 
 72.62  of Blue Earth, Martin, and St. Louis 
 72.63  for a pilot project incubated by the 
 72.64  county with the rural advanced business 
 73.1   facilitation program.  A grant must be 
 73.2   matched with nonstate money for up to 
 73.3   the first $50,000 of a grant.  The 
 73.4   funds not spent the first year are 
 73.5   available the second. 
 73.6   $25,000 in fiscal year 2002 is to the 
 73.7   commissioner of natural resources for 
 73.8   purchase and installation of a Civilian 
 73.9   Conservation Corps worker statue.  This 
 73.10  appropriation is available until June 
 73.11  30, 2003.  In planning for purchase, 
 73.12  siting, and installation of the statue, 
 73.13  the commissioner shall consult with the 
 73.14  North Star chapter of the National 
 73.15  Association of Civilian Conservation 
 73.16  Corps Alumni and with the Capitol Area 
 73.17  Architectural and Planning Board.  The 
 73.18  statue may be located on publicly owned 
 73.19  land. 
 73.20  $50,000 in fiscal year 2002 and $50,000 
 73.21  in fiscal year 2003 are for grants from 
 73.22  the Minnesota investment fund by the 
 73.23  commissioner to the West Central Growth 
 73.24  Alliance to establish a regional 
 73.25  marketing plan, economic development 
 73.26  pilot project in Big Stone, Chippewa, 
 73.27  Kandiyohi, Lac Qui Parle, Meeker, 
 73.28  Renville, Stevens, Swift, and Yellow 
 73.29  Medicine counties.  The annual grant 
 73.30  must be matched each year by $60,000 in 
 73.31  nonstate money. This is a one-time 
 73.32  appropriation. 
 73.33  $97,000 the first year from the 
 73.34  workforce development fund is for a 
 73.35  grant to Neighborhood Development 
 73.36  Center, Inc.  The funds not spent the 
 73.37  first year are available the second. 
 73.38  $1,000,000 the first year from the 
 73.39  workforce development fund is for 
 73.40  catalyst grants to local governments 
 73.41  and recognized Indian tribal 
 73.42  governments to expand Internet access 
 73.43  in areas of rural Minnesota that are 
 73.44  otherwise unlikely to receive access 
 73.45  through existing technology.  The funds 
 73.46  not spent the first year are available 
 73.47  the second. 
 73.48  The remaining $200,000 of the match 
 73.49  required under Laws 1998, chapter 404, 
 73.50  section 23, subdivision 23, for the 
 73.51  United States Hockey Hall of Fame, may 
 73.52  be met through in-kind contributions. 
 73.53  $500,000 the first year from the 
 73.54  workforce development fund is for a 
 73.55  grant to the metropolitan economic 
 73.56  development association for continuing 
 73.57  minority business development programs 
 73.58  in the metropolitan area and 
 73.59  encouraging minority business 
 73.60  development throughout the state. 
 73.61  Subd. 3.  Workforce Development 
 73.62  Division                              11,376,000      9,276,000 
 73.63                Summary by Fund
 74.1   General               8,226,000     8,226,000
 74.2   Workforce
 74.3   Development Fund      2,400,000       300,000
 74.4   TANF                    750,000       750,000
 74.5   $8,076,000 the first year and 
 74.6   $8,076,000 the second year are for the 
 74.7   job skills partnership program.  If the 
 74.8   appropriation for either year is 
 74.9   insufficient, the appropriation for the 
 74.10  other year is available.  It is the 
 74.11  intention of the legislature that this 
 74.12  program base funding be $8,076,000 per 
 74.13  year in the 2002-2003 biennium.  This 
 74.14  appropriation does not cancel. 
 74.15  $600,000 the first year is from the 
 74.16  workforce development fund is to the 
 74.17  port authority of the city of St. Paul 
 74.18  for the customized job training program 
 74.19  of the port authority.  The port 
 74.20  authority shall coordinate with Ramsey 
 74.21  county workforce solutions to more 
 74.22  effectively link St. Paul employers and 
 74.23  job seekers.  This appropriation is 
 74.24  available until spent. 
 74.25  $750,000 the first year and $750,000 
 74.26  the second are from the TANF fund to 
 74.27  the commissioner for the health care 
 74.28  and human services training program. 
 74.29  $1,000,000 the first year is from the 
 74.30  workforce development fund for a grant 
 74.31  to Lifetrack Resources for its 
 74.32  immigrant/refugee collaborative 
 74.33  programs, including those related to 
 74.34  job-seeking skills and workplace 
 74.35  orientation, intensive job development, 
 74.36  functional work English, and on-site 
 74.37  job coaching, to provide assistance to 
 74.38  Somali immigrants. 
 74.39  $250,000 the first year and $250,000 
 74.40  the second year from the workforce 
 74.41  development fund are for a grant to 
 74.42  WomenVenture for women's business 
 74.43  development programs. 
 74.44  $150,000 the first year and $150,000 
 74.45  the second year are for a grant to Twin 
 74.46  Cities Rise, to provide job training to 
 74.47  hard-to-train individuals. 
 74.48  $300,000 the first year and $300,000 
 74.49  the second year from the workforce 
 74.50  development fund are for a grant to 
 74.51  Twin Cities Rise, to provide job 
 74.52  training to hard-to-train individuals.  
 74.53  This is a one-time appropriation.  
 74.54  Subd. 4.  Minnesota Trade Office 
 74.55       2,350,000      2,389,000
 74.56  Subd. 5.  Tourism 
 74.57      10,794,000     10,486,000
 75.1   $375,000 the first year and $375,000 
 75.2   the second year are for operation of 
 75.3   the travel information centers.  Of 
 75.4   this amount, $150,000 the first year is 
 75.5   a one-time appropriation for the 
 75.6   planning, design, site selection, and 
 75.7   construction of a travel information 
 75.8   center to be located within Region 6W. 
 75.9   Priority shall be given to the center 
 75.10  located in Worthington and the Upper 
 75.11  Minnesota Valley Information Center. 
 75.12  $400,000 the first year is for grants 
 75.13  to plan and promote the 2004 Grand 
 75.14  Excursion.  Grants may be made to state 
 75.15  agencies and local units of government 
 75.16  and state or local nonprofit entities.  
 75.17  A local match may be required.  This 
 75.18  appropriation is available until 
 75.19  expended. 
 75.20  $829,000 the first year and $829,000 
 75.21  the second year are for the Minnesota 
 75.22  film board.  $329,000 of this 
 75.23  appropriation in each year is available 
 75.24  only upon receipt by the board of $1 in 
 75.25  matching contributions of money or 
 75.26  in-kind from nonstate sources for every 
 75.27  $3 provided by this appropriation.  Of 
 75.28  this amount, $500,000 the first year 
 75.29  and $500,000 the second year are for 
 75.30  grants to the Minnesota film board for 
 75.31  a film production jobs fund to 
 75.32  stimulate feature film production in 
 75.33  Minnesota.  This appropriation is to 
 75.34  reimburse film and television producers 
 75.35  for up to ten percent of the documented 
 75.36  wages and cost of services that they 
 75.37  paid to Minnesotans for film and 
 75.38  television production after January 1, 
 75.39  2001. 
 75.40  To develop maximum private sector 
 75.41  involvement in tourism, $3,500,000 the 
 75.42  first year and $3,500,000 the second 
 75.43  year of the amounts appropriated for 
 75.44  marketing activities are contingent on 
 75.45  receipt of an equal contribution from 
 75.46  nonstate sources that have been 
 75.47  certified by the commissioner.  Up to 
 75.48  one-half of the match may be given in 
 75.49  in-kind contributions. 
 75.50  In order to maximize marketing grant 
 75.51  benefits, the commissioner must give 
 75.52  priority for joint venture marketing 
 75.53  grants to organizations with year-round 
 75.54  sustained tourism activities.  For 
 75.55  programs and projects submitted, the 
 75.56  commissioner must give priority to 
 75.57  those that encompass two or more areas 
 75.58  or that attract nonresident travelers 
 75.59  to the state. 
 75.60  If an appropriation for either year for 
 75.61  grants is not sufficient, the 
 75.62  appropriation for the other year is 
 75.63  available for it. 
 75.64  The commissioner may use grant dollars 
 75.65  or the value of in-kind services to 
 76.1   provide the state contribution for the 
 76.2   partnership program. 
 76.3   Any unexpended money from general fund 
 76.4   appropriations made under this 
 76.5   subdivision does not cancel but must be 
 76.6   placed in a special advertising account 
 76.7   for use by the office of tourism to 
 76.8   purchase additional media. 
 76.9   Subd. 6.  Administration 
 76.10       3,255,000      2,307,000
 76.11  The base amount of funding used for 
 76.12  consulting contracts by the department 
 76.13  of trade and economic development is 
 76.14  reduced by $216,000, which must come 
 76.15  from departmental consulting funds. 
 76.16  Subd. 7.  Information and Analysis
 76.17       1,631,000      1,668,000
 76.18  Sec. 3.  MINNESOTA TECHNOLOGY, INC.    8,075,000      7,075,000
 76.19  $6,105,000 the first year and 
 76.20  $6,105,000 the second year are for 
 76.21  transfer from the general fund to the 
 76.22  Minnesota Technology, Inc. fund. 
 76.23  $95,000 the first year and $95,000 the 
 76.24  second year are for grants to Minnesota 
 76.25  Inventors Congress.  This is a one-time 
 76.26  appropriation and is not added to the 
 76.27  agency's budget base. 
 76.28  $875,000 the first year and $875,000 
 76.29  the second year are for grants to 
 76.30  Minnesota Project Innovation.  This is 
 76.31  a one-time appropriation and is not 
 76.32  added to the agency's budget base. 
 76.33  $1,000,000 the first year is to 
 76.34  Minnesota Technology, Inc. for a grant 
 76.35  to Minnesota Investment Network 
 76.36  Corporation for the purposes of its 
 76.37  seed capital funds.  The appropriation 
 76.38  does not cancel. 
 76.39  Sec. 4.  ECONOMIC SECURITY  
 76.40  Subdivision 1.  Total 
 76.41  Appropriation                         43,979,000     41,876,000
 76.42                Summary by Fund
 76.43  General              37,277,000    37,406,000
 76.44  Workforce
 76.45  Development Fund      6,702,000     4,470,000
 76.46  Subd. 2.  Rehabilitation Services     24,653,000     23,686,000
 76.47                Summary by Fund
 76.48  General              22,026,000    22,041,000
 76.49  Workforce
 76.50  Development Fund      2,627,000     1,645,000
 77.1   $175,000 the first year is appropriated 
 77.2   from the workforce development fund for 
 77.3   purposes of workplace HIV education. 
 77.4   $800,000 the first year and $1,145,000 
 77.5   the second year from the workforce 
 77.6   development fund are for grants for 
 77.7   programs that provide employment 
 77.8   support services to persons with mental 
 77.9   illness under Minnesota Statutes, 
 77.10  sections 268A.13 and 268A.14.  This is 
 77.11  a one-time appropriation.  
 77.12  $252,000 from the workforce development 
 77.13  fund is for a grant to Advocating 
 77.14  Change Together, Inc.  This is a 
 77.15  one-time appropriation.  
 77.16  $1,900,000 the first year and 
 77.17  $1,900,000 the second year are for the 
 77.18  centers for independent living.  
 77.19  $600,000 the first year from the 
 77.20  workforce development fund is for 
 77.21  grants to the Minnesota employment 
 77.22  center for people who are deaf or 
 77.23  hard-of-hearing.  This appropriation is 
 77.24  one-time and in addition to the amount 
 77.25  appropriated as the base level funding 
 77.26  for the 2002-2003 biennium for the 
 77.27  Minnesota employment center for people 
 77.28  who are deaf or hard-of-hearing.  Funds 
 77.29  not expended in the first year are 
 77.30  available in the second. 
 77.31  $300,000 from the workforce development 
 77.32  fund is for the purpose of the 
 77.33  vocational rehabilitation brain injury 
 77.34  pilot program to be available until 
 77.35  June 30, 2003.  This is a one-time 
 77.36  appropriation. 
 77.37  $500,000 the first year and $500,000 
 77.38  the second year from the workforce 
 77.39  development fund are to increase the 
 77.40  reimbursement rates for extended 
 77.41  employment services.  This is a 
 77.42  one-time appropriation. 
 77.43  Subd. 3.  State Services for the Blind 
 77.44       4,918,000      5,023,000
 77.45  Subd. 4.  Workforce Services 
 77.46      13,908,000     12,667,000
 77.47                Summary by Fund
 77.48  General               9,833,000     9,842,000
 77.49  Workforce
 77.50  Development Fund      4,075,000     2,825,000
 77.51  $1,950,000 the first year and 
 77.52  $1,950,000 the second year from the 
 77.53  workforce development fund are for 
 77.54  displaced homemaker programs under 
 77.55  Minnesota Statutes, section 268.96. 
 77.56  $650,000 each year is added to the base 
 78.1   for youth intervention grants.  Of this 
 78.2   appropriation, $15,000 is for a grant 
 78.3   to the Minnesota Youth Intervention 
 78.4   Programs Association (YIPA) to provide 
 78.5   collaborative training and technical 
 78.6   assistance to community-based grantees 
 78.7   of the program. 
 78.8   $750,000 the first year is a one-time 
 78.9   appropriation from the workforce 
 78.10  development fund for grants to 
 78.11  Youthbuild programs under Minnesota 
 78.12  Statutes, sections 268.361 to 268.3661. 
 78.13  $111,000 the first year and $111,000 
 78.14  the second year of the amounts 
 78.15  appropriated for the Youth 
 78.16  Curfew/Truancy grant shall be used for 
 78.17  youth violence prevention programs to 
 78.18  match the federal juvenile 
 78.19  accountability incentive block grant.  
 78.20  Should a match of federal funds become 
 78.21  unnecessary, the amounts herein shall 
 78.22  revert to the Youth Curfew/Truancy 
 78.23  grant. 
 78.24  $500,000 from the workforce development 
 78.25  fund is for grants to nonprofit 
 78.26  organizations for programs that 
 78.27  encourage and assist women to enter 
 78.28  nontraditional careers in the trades 
 78.29  and in manual and technical 
 78.30  occupations.  The appropriation is 
 78.31  one-time and available until June 30, 
 78.32  2003. 
 78.33  $100,000 the first year and $100,000 
 78.34  the second year from the workforce 
 78.35  development fund in addition to the 
 78.36  base are for the opportunities 
 78.37  industrialization center programs. 
 78.38  $50,000 the first year and $50,000 the 
 78.39  second year are for asset preservation 
 78.40  and facility repair. 
 78.41   Subd. 5.  Workforce Wage Assistance
 78.42         500,000        500,000
 78.43  $500,000 the first year and $500,000 
 78.44  the second year are for the voluntary 
 78.45  paid parental leave pilot project.  
 78.46  This is a one-time appropriation.  
 78.47  $2,000,000 in each year of the biennium 
 78.48  is canceled and returned to the general 
 78.49  fund for the 2002-2003 biennium from 
 78.50  the economic security contingent 
 78.51  account created under Minnesota 
 78.52  Statutes, section 268.196, subdivision 
 78.53  3. 
 78.54  Sec. 5.  INVESTMENT BOARD              3,600,000        100,000
 78.55  $100,000 in each year is for the 
 78.56  purpose of paying staff costs related 
 78.57  to focusing efforts on investing in 
 78.58  Minnesota-based startup businesses 
 78.59  under new Minnesota Statutes, section 
 78.60  11A.26. 
 79.1   $3,500,000 in fiscal year 2002 is for 
 79.2   transfer to the high technology venture 
 79.3   capital account under new Minnesota 
 79.4   Statutes, section 11A.27. 
 79.5                              ARTICLE 4 
 79.6                     2001 HOUSING APPROPRIATIONS 
 79.7   Section 1.  [HOUSING APPROPRIATIONS.] 
 79.8      The sums shown in the columns marked "APPROPRIATIONS" are 
 79.9   appropriated from the general fund, or another fund named, to 
 79.10  the agencies and for the purposes specified in this article, to 
 79.11  be available for the fiscal years indicated for each purpose.  
 79.12  The figure "2001," means that the appropriation or 
 79.13  appropriations listed under them are available for the year 
 79.14  ending June 30, 2001.  Appropriations in this article do not 
 79.15  cancel and carry forward to the succeeding biennium and as 
 79.16  otherwise provided by law.  All appropriations in this article 
 79.17  are one-time appropriations and are not part of the agency's 
 79.18  permanent budget base. 
 79.19                          SUMMARY BY FUND 
 79.20                                                       BIENNIAL
 79.21                                         2001           TOTAL
 79.22  General                             $ 75,000,000   $ 75,000,000
 79.23  Sec. 2.  HOUSING FINANCE AGENCY       71,700,000
 79.24                Summary by Fund
 79.25  General                               71,700,000
 79.26  Subdivision 1.  Total Appropriation 
 79.27  The amounts that may be spent from this 
 79.28  appropriation for certain programs are 
 79.29  specified in the following subdivisions.
 79.30  This appropriation is for transfer to 
 79.31  the housing development fund for the 
 79.32  programs specified.  
 79.33  Subd. 2.  Challenge Program 
 79.34  $20,639,000 is for the economic 
 79.35  development and housing challenge 
 79.36  program created by Minnesota Statutes, 
 79.37  section 462A.33.  
 79.38  Subd. 3.  Family Homeless Prevention 
 79.39  $2,412,000 is for the family homeless 
 79.40  prevention and assistance program under 
 79.41  Minnesota Statutes, section 462A.204.  
 79.42  Of this amount, $660,000 is for grants 
 80.1   to organizations providing case 
 80.2   management for persons that need 
 80.3   assistance to rehabilitate their rent 
 80.4   history and find rental housing.  Case 
 80.5   management services include, but are 
 80.6   not limited to, assisting tenants in 
 80.7   correcting tenant screening reports, 
 80.8   providing intensive training and 
 80.9   certification for tenants, creating a 
 80.10  bonding program to encourage landlords 
 80.11  to accept high-risk tenants with poor 
 80.12  rent histories, paying security 
 80.13  deposits for high-risk tenants, and 
 80.14  agreeing to pay landlord expenses for 
 80.15  filing unlawful detainer actions.  
 80.16  Of this amount, $234,000 is for a 
 80.17  rental housing pilot project, to 
 80.18  encourage landlords to rent to 
 80.19  high-risk tenants with poor rental 
 80.20  histories, in the counties of Benton, 
 80.21  Clay, Dakota, Hennepin, Olmsted, 
 80.22  Ramsey, St. Louis, Sherburne, and 
 80.23  Stearns.  For purposes of this 
 80.24  subdivision, a "high-risk tenant" is a 
 80.25  person who has had an application for 
 80.26  rental housing denied for reasons other 
 80.27  than criminal conduct or previous 
 80.28  destruction of rental housing.  
 80.29  The project shall allow local agencies 
 80.30  to provide payment bonds to landlords 
 80.31  willing to accept high-risk tenants to 
 80.32  reimburse them for losses caused by a 
 80.33  high-risk tenant.  In selecting 
 80.34  recipients for funding under the rental 
 80.35  housing pilot project, priority must be 
 80.36  given to proposals that include 
 80.37  accountability provisions for 
 80.38  participating landlords and training 
 80.39  for participating tenants.  Local 
 80.40  government units, nonprofit agencies, 
 80.41  or partnerships between local 
 80.42  government units and nonprofit agencies 
 80.43  are eligible for funding under the 
 80.44  rental housing pilot project.  
 80.45  Notwithstanding Minnesota Statutes, 
 80.46  section 462A.204, subdivisions 2 and 3, 
 80.47  nonprofit agencies may apply and 
 80.48  receive a grant without obtaining a 
 80.49  resolution of the county board and 
 80.50  grants may be made to nonprofit 
 80.51  agencies in the metropolitan area for 
 80.52  the rental housing pilot project.  
 80.53  Local government units must provide 
 80.54  matching funds, which may include 
 80.55  administrative costs, payment bond 
 80.56  funding, or property tax credits.  
 80.57  The agency shall consult with 
 80.58  representatives of the following 
 80.59  organizations in selecting recipients 
 80.60  for funding under the rental housing 
 80.61  pilot project:  organizations who 
 80.62  advocate for tenants and provide tenant 
 80.63  training, nonprofit and for-profit 
 80.64  housing providers, supportive housing 
 80.65  service providers, and tenant screening 
 80.66  organizations.  
 81.1   The agency must report to the 
 81.2   legislature by January 15, 2003, on the 
 81.3   effectiveness of the pilot project in 
 81.4   securing rental housing for individuals 
 81.5   with poor rental histories.  The report 
 81.6   must also address the feasibility of 
 81.7   and need for expanding the project 
 81.8   statewide and recommend best practices. 
 81.9   Subd. 4.  School Stability
 81.10  $1,000,000 is for the school stability 
 81.11  project under Minnesota Statutes, 
 81.12  section 462A.208, subdivision 8.  
 81.13  Subd. 5.  Housing Trust Fund
 81.14  $23,017,000 is for the housing trust 
 81.15  fund to be deposited in the housing 
 81.16  trust fund account created under 
 81.17  Minnesota Statutes, section 462A.201, 
 81.18  and used for the purposes provided in 
 81.19  that section. 
 81.20  Subd. 6.  Affordable Rental Investment Fund
 81.21  $8,249,000 is for the affordable rental 
 81.22  investment fund program under Minnesota 
 81.23  Statutes, section 462A.21, subdivision 
 81.24  8b, to finance the acquisition, 
 81.25  rehabilitation, and debt restructuring 
 81.26  of federally assisted rental property 
 81.27  and for making equity take-out loans 
 81.28  under Minnesota Statutes, section 
 81.29  462A.05, subdivision 39.  The owner of 
 81.30  the federally assisted rental property 
 81.31  must agree to participate in the 
 81.32  applicable federally assisted housing 
 81.33  program and to extend any existing 
 81.34  low-income affordability restrictions 
 81.35  on the housing for the maximum term 
 81.36  permitted.  The owner must also enter 
 81.37  into an agreement that gives local 
 81.38  units of government, housing and 
 81.39  redevelopment authorities, and 
 81.40  nonprofit housing organizations the 
 81.41  right of first refusal if the rental 
 81.42  property is offered for sale.  Priority 
 81.43  must be given among comparable 
 81.44  properties to properties with the 
 81.45  longest remaining term under an 
 81.46  agreement for federal rental 
 81.47  assistance.  Priority must also be 
 81.48  given among comparable rental housing 
 81.49  developments to developments that are 
 81.50  or will be owned by local government 
 81.51  units, a housing and redevelopment 
 81.52  authority, or a nonprofit housing 
 81.53  organization.  
 81.54  Subd. 7.  Capacity Building Grants 
 81.55  $1,100,000 is for nonprofit capacity 
 81.56  building grants under Minnesota 
 81.57  Statutes, section 462A.21, subdivision 
 81.58  3b.  
 81.59  Of this amount, $1,000,000 is for 
 81.60  grants to agencies administering the 
 81.61  federal section 8 housing program for 
 81.62  administrative costs associated with 
 82.1   the establishment and operation of 
 82.2   section 8 home ownership programs.  
 82.3   Of this amount, $100,000 is for a grant 
 82.4   to the district 287 foundation to 
 82.5   assist in the development of supportive 
 82.6   housing to provide independent living 
 82.7   opportunities for adults with 
 82.8   disabilities.  
 82.9   Subd. 8.  Full-Cycle Home Ownership
 82.10  $1,116,000 is for the full-cycle home 
 82.11  ownership program under Minnesota 
 82.12  Statutes, section 462A.21, subdivision 
 82.13  26.  
 82.14  Of this amount, $1,000,000 is for 
 82.15  proposals that increase services to 
 82.16  non-English-speaking persons, recent 
 82.17  immigrants, and historically 
 82.18  underserved populations. 
 82.19  Subd. 9.  Innovative and Inclusionary
 82.20  Housing Program 
 82.21  $6,269,000 is for innovative and 
 82.22  inclusionary housing programs.  
 82.23  $2,269,000 of this appropriation is for 
 82.24  the nonmetropolitan innovative and 
 82.25  inclusionary housing program under 
 82.26  Minnesota Statutes, section 462A.2093.  
 82.27  $4,000,000 of this appropriation is for 
 82.28  transfer to the metropolitan council 
 82.29  for deposit in the inclusionary housing 
 82.30  account created in Minnesota Statutes, 
 82.31  section 473.251.  The metropolitan 
 82.32  council may use this transfer only for 
 82.33  projects that are consistent with 
 82.34  Minnesota Statutes, section 473.255.  
 82.35  Subd. 10.  Local Initiatives
 82.36  $7,898,000 is for grants or loans under 
 82.37  Minnesota Statutes, section 462A.34.  
 82.38  Of this amount, $1,000,000 the first 
 82.39  year is for the manufactured home park 
 82.40  redevelopment program under new 
 82.41  Minnesota Statutes section 462A.34, 
 82.42  subdivision 4.  This is a one-time 
 82.43  appropriation. 
 82.44  Sec. 3.  CHILDREN, FAMILIES,                         3,300,000
 82.45  AND LEARNING
 82.46         Summary by Fund
 82.47  General             3,300,000
 82.48  Subdivision 1.  Total Appropriation 
 82.49  The amount that may be spent from this 
 82.50  appropriation for certain programs is 
 82.51  specified in the following subdivisions.
 82.52  Subd. 2.  Emergency Services                          1,320,000
 82.53  Up to five percent of this 
 82.54  appropriation may be used for 
 82.55  administrative costs. 
 83.1   Subd. 3.  Transitional Housing                        1,980,000
 83.2   Operation 
 83.3   Up to five percent of this 
 83.4   appropriation may be used for 
 83.5   administrative costs. 
 83.6      Sec. 4.  [462A.34] [LOCAL GRANT AND LOAN PROGRAMS.] 
 83.7      Subdivision 1.  [BLOCK GRANTS.] The commissioner may make 
 83.8   block grants to local governments or nonprofit organizations in 
 83.9   partnership with local governments for housing production and 
 83.10  preservation programs for persons with incomes at or below 80 
 83.11  percent of statewide median income.  The commissioner may use 
 83.12  existing processes for making grants or may establish a request 
 83.13  for proposal process specifically for this block grant program.  
 83.14  Grants shall be made to satisfy specific housing needs, however, 
 83.15  grants do not need to be tied to any particular project, but 
 83.16  rather, should be available to flexibly meet the identified need.
 83.17     Subd. 2.  [VETERANS.] The commissioner may make loans and 
 83.18  grants to local units of government to assist in the design, 
 83.19  development, construction, acquisition, or rehabilitation of 
 83.20  supportive and permanent housing to serve veterans and single 
 83.21  adults who are homeless or at risk of becoming homeless.  The 
 83.22  loans or grants must be used for the planning and predesign of 
 83.23  at least two housing projects that: 
 83.24     (1) are located on property owned by the United States 
 83.25  Department of Veterans Affairs; 
 83.26     (2) provide or coordinate health and social services needed 
 83.27  by the residents; and 
 83.28     (3) are a collaborative partnership between community 
 83.29  agencies and local units of government or the federal government.
 83.30     Subd. 3.  [LEAD ABATEMENT.] The Minnesota housing finance 
 83.31  agency may make grants to cities, local units of government, and 
 83.32  nonprofit organizations for the purpose of implementing federal 
 83.33  regulations for lead hazard reduction.  These grants are for the 
 83.34  purpose of lead hazard reduction for training, rehabilitation, 
 83.35  and other direct costs, including labor, materials, equipment, 
 83.36  and testing associated with compliance with federal lead hazard 
 83.37  control regulations. 
 84.1      Subd. 4.  [MANUFACTURED HOME PARK REDEVELOPMENT 
 84.2   PROGRAM.] (a) The agency shall establish a manufactured home 
 84.3   park redevelopment program for the purpose of making 
 84.4   manufactured home park redevelopment grants or loans to cities, 
 84.5   counties, or community action programs.  Cities, counties, and 
 84.6   community action programs may use grants and loans under this 
 84.7   program to: 
 84.8      (1) assist with the purchase of existing manufactured homes 
 84.9   in manufactured home parks with preference given to older 
 84.10  manufactured homes and buy-out assistance to be determined by 
 84.11  the appraised value of the home; 
 84.12     (2) provide down payment assistance not to exceed $10,000 
 84.13  per house to affected homeowners for replacement dwellings or 
 84.14  new manufactured homes; and 
 84.15     (3) make improvements in manufactured home parks as 
 84.16  requested by the grant recipient. 
 84.17     (b) Households assisted under this subdivision must have an 
 84.18  annual household income at or below 80 percent of the area 
 84.19  median household income.  Cities, counties, or community action 
 84.20  programs receiving funds under the program must give preference 
 84.21  to households at or below 50 percent of the area median 
 84.22  household income. The agency shall attempt to make grants and 
 84.23  loans in approximately equal amounts to applicants outside of 
 84.24  and within the metropolitan area, as defined in section 473.121, 
 84.25  subdivision 2. 
 84.26     (c) The housing finance agency shall select program 
 84.27  participants from eligible applicants, with the first grant 
 84.28  being awarded no later than December 31, 2001.  Participation in 
 84.29  this program is voluntary and no park resident shall be required 
 84.30  to participate.  The agency shall report to the legislature by 
 84.31  February 1, 2003, on the effectiveness of the program. 
 84.32     Sec. 5.  [EFFECTIVE DATE.] 
 84.33     Sections 1 to 4 are effective the day following final 
 84.34  enactment. 
 84.35                             ARTICLE 5 
 84.36                       HOUSING FINANCE AGENCY
 85.1   Section 1.  [HOUSING FINANCE AGENCY APPROPRIATIONS.] 
 85.2      The sums shown in the columns marked "APPROPRIATIONS" are 
 85.3   appropriated from the general fund, or another fund named, to 
 85.4   the agencies and for the purposes specified in this article, to 
 85.5   be available for the fiscal years indicated for each purpose.  
 85.6   The figures "2002" and "2003," where used in this article, mean 
 85.7   that the appropriation or appropriations listed under them are 
 85.8   available for the year ending June 30, 2002, or June 30, 2003, 
 85.9   respectively.  
 85.10                          SUMMARY BY FUND 
 85.11                                                       BIENNIAL
 85.12                            2002          2003           TOTAL
 85.13  General              $ 40,832,000   $ 39,832,000    $80,664,000
 85.14  Sec. 2.  HOUSING FINANCE AGENCY       40,832,000     39,832,000
 85.15  Subdivision 1.  Total Appropriation 
 85.16  The amounts that may be spent from this 
 85.17  appropriation for certain programs are 
 85.18  specified in the following subdivisions.
 85.19  This appropriation is for transfer to 
 85.20  the housing development fund for the 
 85.21  programs specified.  Except as 
 85.22  otherwise indicated, this transfer is 
 85.23  part of the agency's permanent budget 
 85.24  base. 
 85.25  Subd. 2.  Rental Assistance for Mentally Ill 
 85.26  $1,700,000 the first year and 
 85.27  $1,700,000 the second year are for a 
 85.28  rental housing assistance program for 
 85.29  persons with a mental illness or 
 85.30  families with an adult member with a 
 85.31  mental illness under Minnesota 
 85.32  Statutes, section 462A.2097. 
 85.33  Subd. 3.  Family Homeless Prevention 
 85.34  $3,250,000 the first year and 
 85.35  $3,250,000 the second year are for the 
 85.36  family homeless prevention and 
 85.37  assistance program under Minnesota 
 85.38  Statutes, section 462A.204. 
 85.39  Subd. 4.  Homeownership Education and 
 85.40  Training Program 
 85.41  $858,000 the first year and $858,000 
 85.42  the second year are for the 
 85.43  homeownership education and training 
 85.44  program under Minnesota Statutes, 
 85.45  section 462A.209. 
 85.46  Subd. 5.  Housing Trust Fund
 85.47  $4,623,000 the first year and 
 86.1   $4,623,000 the second year are for the 
 86.2   housing trust fund to be deposited in 
 86.3   the housing trust fund account created 
 86.4   under Minnesota Statutes, section 
 86.5   462A.201, and used for the purposes 
 86.6   provided in that section.  Until 
 86.7   January 1, 2002, the agency may 
 86.8   administer the appropriations under 
 86.9   this subdivision in the same manner as 
 86.10  appropriations for Minnesota Statutes, 
 86.11  section 462A.21, subdivision 8b, 15, 
 86.12  21, or 24. 
 86.13  Subd. 6.  Affordable Rental Investment Fund
 86.14  $10,000,000 the first year and 
 86.15  $10,000,000 the second year are for the 
 86.16  affordable rental investment fund 
 86.17  program under Minnesota Statutes, 
 86.18  section 462A.21, subdivision 8b.  Of 
 86.19  this amount, $10,000,000 the first year 
 86.20  and $10,000,000 the second year are to 
 86.21  finance the acquisition, 
 86.22  rehabilitation, and debt restructuring 
 86.23  of federally assisted rental property 
 86.24  and for making equity take-out loans 
 86.25  under Minnesota Statutes, section 
 86.26  462A.05, subdivision 39.  The owner of 
 86.27  the federally assisted rental property 
 86.28  must agree to participate in the 
 86.29  applicable federally assisted housing 
 86.30  program and to extend any existing 
 86.31  low-income affordability restrictions 
 86.32  on the housing for the maximum term 
 86.33  permitted.  The owner must also enter 
 86.34  into an agreement that gives local 
 86.35  units of government, housing and 
 86.36  redevelopment authorities, and 
 86.37  nonprofit housing organizations the 
 86.38  right of first refusal if the rental 
 86.39  property is offered for sale.  Priority 
 86.40  must be given among comparable 
 86.41  properties to properties with the 
 86.42  longest remaining term under an 
 86.43  agreement for federal rental 
 86.44  assistance.  Priority must also be 
 86.45  given among comparable rental housing 
 86.46  developments to developments that are 
 86.47  or will be owned by local government 
 86.48  units, a housing and redevelopment 
 86.49  authority, or a nonprofit housing 
 86.50  organization. 
 86.51  Subd. 7.  Urban Indian Housing Program
 86.52  $187,000 the first year and $187,000 
 86.53  the second year are for the urban 
 86.54  Indian housing program under Minnesota 
 86.55  Statutes, section 462A.07, subdivision 
 86.56  15.  
 86.57  Subd. 8.  Tribal Indian Housing Program
 86.58  $1,683,000 the first year and 
 86.59  $1,683,000 the second year are for the 
 86.60  tribal Indian housing program under 
 86.61  Minnesota Statutes, section 462A.07, 
 86.62  subdivision 14.  
 86.63  Subd. 9.  Capacity Building Grants 
 87.1   $340,000 the first year and $340,000 
 87.2   the second year are for nonprofit 
 87.3   capacity building grants under 
 87.4   Minnesota Statutes, section 462A.21, 
 87.5   subdivision 3b. 
 87.6   Subd. 10.  Challenge Program
 87.7   $13,004,000 the first year and 
 87.8   $12,004,000 the second year are 
 87.9   appropriated for transfer to the 
 87.10  housing development fund for the 
 87.11  economic development and housing 
 87.12  challenge program created by Minnesota 
 87.13  Statutes, section 462A.33.  Until 
 87.14  January 1, 2002, the agency may 
 87.15  administer the appropriations under 
 87.16  this subdivision in the same manner as 
 87.17  appropriations for Minnesota Statutes, 
 87.18  section 462A.21, subdivision 8b, 15, 
 87.19  21, or 24. 
 87.20  Of this appropriation, $610,000 the 
 87.21  first year is for disaster relief for 
 87.22  home ownership in the areas that 
 87.23  sustained damage from the tornado that 
 87.24  struck Yellow Medicine and Chippewa 
 87.25  counties on July 25, 2000, and were 
 87.26  added to the Presidential Declaration 
 87.27  of Major Disaster, DR1333, by amendment 
 87.28  number 5 dated July 28, 2000, and 
 87.29  amendment number 6 dated August 14, 
 87.30  2000. 
 87.31  Of this appropriation, $390,000 the 
 87.32  first year is for disaster relief for 
 87.33  rental housing in the areas that 
 87.34  sustained damage from the tornado that 
 87.35  struck Yellow Medicine and Chippewa 
 87.36  counties on July 25, 2000, and were 
 87.37  added to the Presidential Declaration 
 87.38  of Major Disaster, DR1333, by amendment 
 87.39  number 5 dated July 28, 2000, and 
 87.40  amendment number 6 dated August 14, 
 87.41  2000.  Notwithstanding Minnesota 
 87.42  Statutes, section 462A.21, subdivision 
 87.43  8b, assistance provided from this 
 87.44  disaster relief appropriation for the 
 87.45  rehabilitation of existing rental 
 87.46  housing may be in the form of 
 87.47  forgivable loans.  In making forgivable 
 87.48  loans from this appropriation, the 
 87.49  agency shall determine the 
 87.50  circumstances, terms, and conditions 
 87.51  under which all or any portion of the 
 87.52  grant shall be repaid.  This 
 87.53  appropriation is available until spent. 
 87.54  Subd. 11.  Transfers
 87.55  Money appropriated under this section 
 87.56  for disaster relief may be transferred 
 87.57  between the affordable rental 
 87.58  investment fund account and the 
 87.59  community rehabilitation fund account. 
 87.60     Sec. 3.  Minnesota Statutes 2000, section 16B.61, 
 87.61  subdivision 1, is amended to read: 
 87.62     Subdivision 1.  [ADOPTION OF CODE.] Subject to sections 
 88.1   16B.59 to 16B.75, the commissioner shall by rule establish a 
 88.2   code of standards for the construction, reconstruction, 
 88.3   alteration, and repair of buildings, governing matters of 
 88.4   structural materials, design and construction, fire protection, 
 88.5   health, sanitation, and safety, including design and 
 88.6   construction standards regarding heat loss control, 
 88.7   illumination, and climate control.  The code must conform 
 88.8   insofar as practicable to model building codes generally 
 88.9   accepted and in use throughout the United States, including a 
 88.10  code for building conservation.  In the preparation of the code, 
 88.11  consideration must be given to the existing statewide specialty 
 88.12  codes presently in use in the state.  Model codes with necessary 
 88.13  modifications and statewide specialty codes may be adopted by 
 88.14  reference.  The code must be based on the application of 
 88.15  scientific principles, approved tests, and professional 
 88.16  judgment.  To the extent possible, the code must be adopted in 
 88.17  terms of desired results instead of the means of achieving those 
 88.18  results, avoiding wherever possible the incorporation of 
 88.19  specifications of particular methods or materials.  To that end 
 88.20  the code must encourage the use of new methods and new 
 88.21  materials.  Except as otherwise provided in sections 16B.59 to 
 88.22  16B.75, the commissioner shall administer and enforce the 
 88.23  provisions of those sections. 
 88.24     The commissioner shall develop rules addressing the plan 
 88.25  review fee assessed to similar buildings without significant 
 88.26  modifications including provisions for use of building systems 
 88.27  as specified in the industrialized/modular program specified in 
 88.28  section 16B.75.  Additional plan review fees associated with 
 88.29  similar plans must be based on costs commensurate with the 
 88.30  direct and indirect costs of the service. 
 88.31     Sec. 4.  Minnesota Statutes 2000, section 16B.62, 
 88.32  subdivision 1, is amended to read: 
 88.33     Subdivision 1.  [MUNICIPAL ENFORCEMENT.] The State Building 
 88.34  Code applies statewide and supersedes the building code of any 
 88.35  municipality.  A municipality must not by ordinance or through 
 88.36  development agreement require building code provisions 
 89.1   regulating components or systems of any residential structure 
 89.2   that are more restrictive than any provision of the State 
 89.3   Building Code.  The State Building Code does not apply to 
 89.4   agricultural buildings except with respect to state inspections 
 89.5   required or rulemaking authorized by sections 103F.141, 216C.19, 
 89.6   subdivision 8, and 326.244.  All municipalities shall adopt and 
 89.7   enforce the State Building Code with respect to new construction 
 89.8   within their respective jurisdictions.  
 89.9      If a city has adopted or is enforcing the State Building 
 89.10  Code on June 3, 1977, or determines by ordinance after that date 
 89.11  to undertake enforcement, it shall enforce the code within the 
 89.12  city.  A city may by ordinance extend the enforcement of the 
 89.13  code to contiguous unincorporated territory not more than two 
 89.14  miles distant from its corporate limits in any direction.  Where 
 89.15  two or more noncontiguous cities which have elected to enforce 
 89.16  the code have boundaries less than four miles apart, each is 
 89.17  authorized to enforce the code on its side of a line equidistant 
 89.18  between them.  Once enforcement authority is extended 
 89.19  extraterritorially by ordinance, the authority may continue to 
 89.20  be exercised in the designated territory even though another 
 89.21  city less than four miles distant later elects to enforce the 
 89.22  code.  After the extension, the city may enforce the code in the 
 89.23  designated area to the same extent as if the property were 
 89.24  situated within its corporate limits.  
 89.25     A city which, on June 3, 1977, had not adopted the code may 
 89.26  not commence enforcement of the code within or outside of its 
 89.27  jurisdiction until it has provided written notice to the 
 89.28  commissioner, the county auditor, and the town clerk of each 
 89.29  town in which it intends to enforce the code.  A public hearing 
 89.30  on the proposed enforcement must be held not less than 30 days 
 89.31  after the notice has been provided.  Enforcement of the code by 
 89.32  the city outside of its jurisdiction commences on the first day 
 89.33  of January in the year following the notice and hearing.  
 89.34     Municipalities may provide for the issuance of permits, 
 89.35  inspection, and enforcement within their jurisdictions by means 
 89.36  which are convenient, and lawful, including by means of 
 90.1   contracts with other municipalities pursuant to section 471.59, 
 90.2   and with qualified individuals.  The other municipalities or 
 90.3   qualified individuals may be reimbursed by retention or 
 90.4   remission of some or all of the building permit fee collected or 
 90.5   by other means.  In areas of the state where inspection and 
 90.6   enforcement is unavailable from qualified employees of 
 90.7   municipalities, the commissioner shall train and designate 
 90.8   individuals available to carry out inspection and enforcement on 
 90.9   a fee basis.  Nothing in this section prohibits a municipality 
 90.10  from adopting ordinances relating to zoning, subdivision, or 
 90.11  planning unless the ordinance conflicts with a provision of the 
 90.12  State Building Code.  
 90.13     Sec. 5.  Minnesota Statutes 2000, section 16B.63, is 
 90.14  amended by adding a subdivision to read: 
 90.15     Subd. 5.  [INTERPRETATIVE AUTHORITY.] To achieve uniform 
 90.16  and consistent application of the State Building Code, the state 
 90.17  building official has final interpretative authority applicable 
 90.18  to all codes adopted as part of the State Building Code except 
 90.19  for the plumbing code and the electrical code.  A final 
 90.20  interpretative committee composed of seven members, consisting 
 90.21  of five certified building officials and two construction 
 90.22  industry representatives, shall review requests for final 
 90.23  interpretations relating to that field.  The state building 
 90.24  official must establish procedures for membership of the 
 90.25  interpretative committees.  The appropriate committee shall 
 90.26  review the request and make a recommendation to the state 
 90.27  building official for the final interpretation within 30 days of 
 90.28  the request.  The state building official must issue an 
 90.29  interpretation within ten business days from the recommendation 
 90.30  from the review committee.  A final interpretation may be 
 90.31  appealed within 30 days of its issuance to the commissioner 
 90.32  under section 16B.67.  The final interpretation must be 
 90.33  published within ten business days of its issuance and made 
 90.34  available to the public.  Final interpretations must be 
 90.35  considered for adoption as part of the State Building Code. 
 90.36     Sec. 6.  [16B.685] [ANNUAL REPORT.] 
 91.1      Beginning with the first report filed by April 1, 2003, 
 91.2   each municipality shall annually report by April 1 to the 
 91.3   department, in a format prescribed by the department, all 
 91.4   construction and development-related fees collected by the 
 91.5   municipality from developers, builders, and subcontractors.  The 
 91.6   report must include: 
 91.7      (1) the number and valuation of units for which fees were 
 91.8   paid; 
 91.9      (2) the amount of building permit fees, plan review fees, 
 91.10  administrative fees, engineering fees, infrastructure fees, and 
 91.11  other construction and development-related fees; and 
 91.12     (3) the expenses associated with the municipal activities 
 91.13  for which fees were collected. 
 91.14     Sec. 7.  Minnesota Statutes 2000, section 326.90, 
 91.15  subdivision 1, is amended to read: 
 91.16     Subdivision 1.  [LOCAL LICENSE PROHIBITED.] Except as 
 91.17  provided in sections ~~326.991 and~~ 326.90, subdivision 2, and 
 91.18  326.991, a political subdivision may not require a person 
 91.19  licensed under sections 326.83 to 326.991 to also be licensed or 
 91.20  pay a registration or other fee related to licensure under any 
 91.21  ordinance, law, rule, or regulation of the political 
 91.22  subdivision.  This section does not prohibit charges for 
 91.23  building permits or other charges not directly related to 
 91.24  licensure. 
 91.25     Sec. 8.  Minnesota Statutes 2000, section 462.353, 
 91.26  subdivision 4, is amended to read: 
 91.27     Subd. 4.  [FEES.] A municipality may prescribe fees 
 91.28  sufficient to defray the costs incurred by it in reviewing, 
 91.29  investigating, and administering an application for an amendment 
 91.30  to an official control established pursuant to sections 462.351 
 91.31  to 462.364 or an application for a permit or other approval 
 91.32  required under an official control established pursuant to those 
 91.33  sections.  Fees as prescribed ~~shall~~ must be by ordinance and 
 91.34  must be fair, reasonable, and proportionate to the actual cost 
 91.35  of the service for which the fee is imposed.  A municipality 
 91.36  shall adopt management and accounting procedures to ensure that 
 92.1   fees are maintained and used only for the purpose for which they 
 92.2   are collected. 
 92.3      If a dispute arises over a specific fee imposed by a 
 92.4   municipality related to a specific application, the amount of 
 92.5   the fee must be deposited and held in escrow, and the person 
 92.6   aggrieved by the fee may appeal under section 462.361.  An 
 92.7   approved application may proceed as if the fee had been paid, 
 92.8   pending a decision on the appeal.  
 92.9      Sec. 9.  [462.3531] [WAIVER OF RIGHTS; PROHIBITION.] 
 92.10     A local government unit must not require a contractor, 
 92.11  builder, or developer of property to waive a right possessed by 
 92.12  the contractor, builder, or developer as a condition of 
 92.13  receiving any approval for the development or construction of a 
 92.14  property. 
 92.15     Sec. 10.  Minnesota Statutes 2000, section 462.358, 
 92.16  subdivision 2b, is amended to read: 
 92.17     Subd. 2b.  [DEDICATION.] The regulations may require that a 
 92.18  reasonable portion of any proposed subdivision be dedicated to 
 92.19  the public or preserved for public use as streets, roads, 
 92.20  sewers, electric, gas, and water facilities, storm water 
 92.21  drainage and holding areas or ponds and similar utilities and 
 92.22  improvements.  
 92.23     The regulations may require that any proposed subdivision 
 92.24  include a certain percentage of units that are affordable across 
 92.25  a range of incomes.  
 92.26     In addition, the regulations may require that a reasonable 
 92.27  portion of any proposed subdivision be dedicated to the public 
 92.28  or preserved for conservation purposes or for public use as 
 92.29  parks, recreational facilities as defined and outlined in 
 92.30  section 471.191, playgrounds, trails, wetlands, or open space; 
 92.31  provided that (a) the municipality may choose to accept an 
 92.32  equivalent amount in cash from the applicant for part or all of 
 92.33  the portion required to be dedicated to such public uses or 
 92.34  purposes based on the fair market value of the land no later 
 92.35  than at the time of final approval, (b) any cash payments 
 92.36  received shall be placed in a special fund by the municipality 
 93.1   used only for the purposes for which the money was obtained, (c) 
 93.2   in establishing the reasonable portion to be dedicated, the 
 93.3   regulations may consider the open space, park, recreational, or 
 93.4   common areas and facilities which the applicant proposes to 
 93.5   reserve for the subdivision, and (d) the municipality reasonably 
 93.6   determines that it will need to acquire that portion of land for 
 93.7   the purposes stated in this paragraph as a result of approval of 
 93.8   the subdivision. 
 93.9      Sec. 11.  [462.3851] [COLLAR COUNTY; AFFORDABLE HOUSING.] 
 93.10     Municipalities in collar counties must adopt regulations by 
 93.11  January 1, 2002, that, at a minimum, comply with the 
 93.12  affordability and other requirements of section 473.2542.  For 
 93.13  the purpose of this subdivision, a "collar county" is a county 
 93.14  that is contiguous to a county within the metropolitan area as 
 93.15  defined in section 473.121, subdivision 2.  
 93.16     Sec. 12.  Minnesota Statutes 2000, section 462A.05, 
 93.17  subdivision 14, is amended to read: 
 93.18     Subd. 14.  [REHABILITATION LOANS.] It may agree to 
 93.19  purchase, make, or otherwise participate in the making, and may 
 93.20  enter into commitments for the purchase, making, or 
 93.21  participation in the making, of eligible loans for 
 93.22  rehabilitation to persons and families of low and moderate 
 93.23  income, and to owners of existing residential housing for 
 93.24  occupancy by such persons and families, for the rehabilitation 
 93.25  of existing residential housing owned by them.  The loans may be 
 93.26  insured or uninsured and may be made with security, or may be 
 93.27  unsecured, as the agency deems advisable.  The loans may be in 
 93.28  addition to or in combination with long-term eligible mortgage 
 93.29  loans under subdivision 3.  They may be made in amounts 
 93.30  sufficient to refinance existing indebtedness secured by the 
 93.31  property, if refinancing is determined by the agency to be 
 93.32  necessary to permit the owner to meet the owner's housing cost 
 93.33  without expending an unreasonable portion of the owner's income 
 93.34  thereon.  No loan for rehabilitation shall be made unless the 
 93.35  agency determines that the loan will be used primarily to make 
 93.36  the housing more desirable to live in, to increase the market 
 94.1   value of the housing, for compliance with state, county or 
 94.2   municipal building, housing maintenance, fire, health or similar 
 94.3   codes and standards applicable to housing, or to accomplish 
 94.4   energy conservation related improvements.  In unincorporated 
 94.5   areas and municipalities not having codes and standards, the 
 94.6   agency may, solely for the purpose of administering the 
 94.7   provisions of this chapter, establish codes and standards.  
 94.8   Except for accessibility improvements under this subdivision and 
 94.9   subdivisions 14a and 24, clause (1), no secured loan for 
 94.10  rehabilitation of any property shall be made in an amount which, 
 94.11  with all other existing indebtedness secured by the property, 
 94.12  would exceed 110 percent of its market value, as determined by 
 94.13  the agency.  No loan under this subdivision shall be denied 
 94.14  solely because the loan will not be used for placing the 
 94.15  residential housing in full compliance with all state, county, 
 94.16  or municipal building, housing maintenance, fire, health, or 
 94.17  similar codes and standards applicable to housing.  
 94.18  Rehabilitation loans shall be made only when the agency 
 94.19  determines that financing is not otherwise available, in whole 
 94.20  or in part, from private lenders upon equivalent terms and 
 94.21  conditions.  Accessibility rehabilitation loans authorized under 
 94.22  this subdivision may be made to eligible persons and families 
 94.23  without limitations relating to the maximum incomes of the 
 94.24  borrowers if: 
 94.25     (1) the borrower or a member of the borrower's family 
 94.26  requires a level of care provided in a hospital, skilled nursing 
 94.27  facility, or intermediate care facility for persons with mental 
 94.28  retardation or related conditions; 
 94.29     (2) home care is appropriate; and 
 94.30     (3) the improvement will enable the borrower or a member of 
 94.31  the borrower's family to reside in the housing. 
 94.32  The agency may waive any requirement that the housing units in a 
 94.33  residential housing development be rented to persons of low and 
 94.34  moderate income if the development consists of four or less 
 94.35  dwelling units, one of which is occupied by the owner. 
 94.36     Sec. 13.  Minnesota Statutes 2000, section 462A.05, 
 95.1   subdivision 14a, is amended to read: 
 95.2      Subd. 14a.  [REHABILITATION LOANS; EXISTING OWNER OCCUPIED 
 95.3   RESIDENTIAL HOUSING.] It may make loans to persons and families 
 95.4   of low and moderate income to rehabilitate or to assist in 
 95.5   rehabilitating existing residential housing owned and occupied 
 95.6   by those persons or families.  No loan shall be made unless the 
 95.7   agency determines that the loan will be used primarily for 
 95.8   rehabilitation work necessary for health or safety, essential 
 95.9   accessibility improvements, or to improve the energy efficiency 
 95.10  of the dwelling.  No loan for rehabilitation of owner occupied 
 95.11  residential housing shall be denied solely because the loan will 
 95.12  not be used for placing the residential housing in full 
 95.13  compliance with all state, county or municipal building, housing 
 95.14  maintenance, fire, health or similar codes and standards 
 95.15  applicable to housing.  The amount of any loan shall not exceed 
 95.16  the lesser of (a) a maximum loan amount determined under rules 
 95.17  adopted by the agency not to exceed $20,000, or (b) the actual 
 95.18  cost of the work performed, or (c) that portion of the cost of 
 95.19  rehabilitation which the agency determines cannot otherwise be 
 95.20  paid by the person or family without the expenditure of an 
 95.21  unreasonable portion of the income of the person or family.  
 95.22  Loans made in whole or in part with federal funds may exceed the 
 95.23  maximum loan amount to the extent necessary to comply with 
 95.24  federal lead abatement requirements prescribed by the funding 
 95.25  source.  In making loans, the agency shall determine the 
 95.26  circumstances under which and the terms and conditions under 
 95.27  which all or any portion of the loan will be repaid and shall 
 95.28  determine the appropriate security for the repayment of the 
 95.29  loan.  Loans pursuant to this subdivision may be made with or 
 95.30  without interest or periodic payments.  ~~Loans made without~~ 
 95.31  ~~interest or periodic payments need not be repaid by the borrower~~ 
 95.32  ~~if the property for which the loan is made has not been sold,~~ 
 95.33  ~~transferred, or otherwise conveyed nor has it ceased to be the~~ 
 95.34  ~~principal place of residence of the borrower, within ten years~~ 
 95.35  ~~after the date of the loan.~~  
 95.36     Sec. 14.  Minnesota Statutes 2000, section 462A.20, 
 96.1   subdivision 3, is amended to read: 
 96.2      Subd. 3.  [SEPARATE ACCOUNTS; TRANSFERS; LIMITS.] Whenever 
 96.3   any money is appropriated by the state to the agency solely for 
 96.4   a specified purpose or purposes, the agency shall establish a 
 96.5   separate bookkeeping account or accounts in the housing 
 96.6   development fund to record the receipt and disbursement of such 
 96.7   money and of the income, gain, and loss from the investment and 
 96.8   reinvestment thereof.  Earnings from investment of any amounts 
 96.9   appropriated by the state to the agency for a specified purpose 
 96.10  or purposes may be aggregated.  The costs and expenses necessary 
 96.11  and incidental to the development and operation of all programs 
 96.12  funded by state appropriations may be paid from the aggregated 
 96.13  earnings from investments prior to periodic distributions of 
 96.14  earnings to separate accounts to be used for the same purpose as 
 96.15  the respective original appropriation.  The agency may transfer 
 96.16  unencumbered balances from one appropriated account to another, 
 96.17  provided that no money appropriated for the purpose of agency 
 96.18  loan programs may be transferred to an account to be used for 
 96.19  making grants, except that money appropriated for the purpose of 
 96.20  section 462A.05, subdivision 14a, may be transferred for the 
 96.21  purpose of section 462A.05, subdivision 15a.  
 96.22     Sec. 15.  Minnesota Statutes 2000, section 462A.201, 
 96.23  subdivision 2, is amended to read: 
 96.24     Subd. 2.  [LOW-INCOME HOUSING.] (a) The agency may, in 
 96.25  consultation with the advisory committee, use money from the 
 96.26  housing trust fund account for operational costs for providing 
 96.27  permanent housing and to provide loans or grants for projects 
 96.28  for the development, construction, acquisition, preservation, 
 96.29  and rehabilitation of low-income rental and limited equity 
 96.30  cooperative housing units, including temporary and transitional 
 96.31  housing, and homes for ownership.  For purposes of this section, 
 96.32  "transitional housing" means housing that is provided for a 
 96.33  limited duration not exceeding 24 months, except that up to 
 96.34  one-third of the residents may live in the housing for up to 36 
 96.35  months.  Loans or grants for residential housing for migrant 
 96.36  farmworkers may be made under this section.  No more than 20 
 97.1   percent of available funds may be used for home ownership 
 97.2   projects.  
 97.3      (b) A rental or limited equity cooperative permanent 
 97.4   housing project must meet one of the following income tests: 
 97.5      (1) at least 75 percent of the rental and cooperative units 
 97.6   must be rented to or cooperatively owned by persons and families 
 97.7   whose income does not exceed 30 percent of the median family 
 97.8   income for the metropolitan area as defined in section 473.121, 
 97.9   subdivision 2; or 
 97.10     (2) all of the units funded by the housing trust fund 
 97.11  account must be used for the benefit of persons and families 
 97.12  whose income does not exceed 30 percent of the median family 
 97.13  income for the metropolitan area as defined in section 473.121, 
 97.14  subdivision 2. 
 97.15     The median family income may be adjusted for families of 
 97.16  five or more. 
 97.17     (c) Homes for ownership must be owned or purchased by 
 97.18  persons and families whose income does not exceed 50 percent of 
 97.19  the metropolitan area median income, adjusted for family size. 
 97.20     (d) In making the grants, the agency shall determine the 
 97.21  terms and conditions of repayment and the appropriate security, 
 97.22  if any, should repayment be required.  To promote the geographic 
 97.23  distribution of grants and loans, the agency may designate a 
 97.24  portion of the grant or loan awards to be set aside for projects 
 97.25  located in specified congressional districts or other 
 97.26  geographical regions specified by the agency.  The agency may 
 97.27  adopt rules for awarding grants and loans under this subdivision.
 97.28     Sec. 16.  Minnesota Statutes 2000, section 462A.2097, is 
 97.29  amended to read: 
 97.30     462A.2097 [RENTAL HOUSING.] 
 97.31     The agency may establish a tenant-based or project-based 
 97.32  rental housing assistance program for persons of low income or 
 97.33  for persons with a mental illness or families that include an 
 97.34  adult family member with a mental illness.  Rental assistance 
 97.35  may be in the form of direct rental subsidies for housing for 
 97.36  persons or families with incomes, at the time of initial 
 98.1   occupancy, of up to 50 percent of the area median income as 
 98.2   determined by the United States Department of Housing and Urban 
 98.3   Development, adjusted for families of five or more.  Housing for 
 98.4   the mentally ill must be operated in coordination with social 
 98.5   service providers who provide services requested by tenants.  
 98.6   Direct rental subsidies must be administered by the agency for 
 98.7   the benefit of eligible tenants.  Financial assistance provided 
 98.8   under this section must be in the form of vendor payments 
 98.9   whenever possible. 
 98.10     Sec. 17.  Minnesota Statutes 2000, section 462A.21, 
 98.11  subdivision 10, is amended to read: 
 98.12     Subd. 10.  [CERTAIN APPROPRIATIONS AVAILABLE UNTIL 
 98.13  EXPENDED.] Notwithstanding the repeal of section 462A.26 and the 
 98.14  provisions of section 16A.28 or any other law relating to lapse 
 98.15  of an appropriation, the appropriations made to the agency by 
 98.16  the legislature in 1976 and subsequent years are available until 
 98.17  fully expended, and the allocations provided in the 
 98.18  appropriations remain in effect.  Earnings from investments of 
 98.19  any of the amounts appropriated to the agency are appropriated 
 98.20  to the agency to be used for the same purposes as the respective 
 98.21  original appropriations, after payment of the costs and expenses 
 98.22  necessary and incidental to the development and operation of the 
 98.23  programs authorized under this chapter. 
 98.24     Sec. 18.  Minnesota Statutes 2000, section 462A.21, is 
 98.25  amended by adding a subdivision to read: 
 98.26     Subd. 28.  [FAMILY STABILIZATION DEMONSTRATION 
 98.27  PROJECT.] The agency may spend money for the purposes of section 
 98.28  462A.205 and may pay costs and expenses necessary and incidental 
 98.29  to the development and operation of the project. 
 98.30     Sec. 19.  [473.2541] [DEFINITIONS.] 
 98.31     Subdivision 1.  [SCOPE.] For the purpose of sections 
 98.32  473.2541 and 473.2542, the terms defined in this section have 
 98.33  the meanings given them. 
 98.34     Subd. 2.  [AFFORDABLE RENTAL HOUSING.] "Affordable rental 
 98.35  housing" means rental housing units having a monthly rent of no 
 98.36  more than 30 percent of a specified area median income divided 
 99.1   by 12.  
 99.2      Subd. 3.  [AFFORDABLE HOMES.] "Affordable homes" means 
 99.3   single-family homes having a monthly mortgage payment of 
 99.4   principal and interest of no more than the amount determined by 
 99.5   30 percent of a specified area median income divided by 12.  
 99.6      Subd. 4.  [DEVELOPMENT.] "Development" means a new 
 99.7   construction or reconstruction development of single-family or 
 99.8   multiple-family residences containing a total of 20 or more 
 99.9   units located in the metropolitan area on a single parcel of 
 99.10  land. 
 99.11     Subd. 5.  [MUNICIPALITY.] "Municipality" means a statutory 
 99.12  or home rule charter city or town in the metropolitan area. 
 99.13     Subd. 6.  [PUBLIC SUBSIDY.] "Public subsidy" means funds 
 99.14  provided to a specifically identified project from the 
 99.15  inclusionary housing account to assist in financing the 
 99.16  construction of the development.  
 99.17     Sec. 20.  [473.2542] [AFFORDABLE HOUSING.] 
 99.18     Subdivision 1.  [OPTIONAL AFFORDABLE HOUSING.] A developer 
 99.19  may choose whether or not to comply with the provisions of this 
 99.20  section.  If a developer chooses to comply, the development must 
 99.21  contain on the same parcel of land at least 20 percent 
 99.22  affordable rental housing or affordable homes as provided in 
 99.23  this section.  The affordable housing must blend architecturally 
 99.24  with the remainder of the development. 
 99.25     Subd. 2.  [PRIVATE DEVELOPMENT.] For a development without 
 99.26  public subsidy, affordable housing or affordable rental housing 
 99.27  and affordable homes shall be determined using 80 percent of the 
 99.28  area median income.  
 99.29     Subd. 3.  [PUBLIC SUBSIDY.] For a development of rental 
 99.30  housing receiving a public subsidy from the inclusionary housing 
 99.31  account, ten percent of the units must be determined affordable 
 99.32  at 30 percent of area median income, and ten percent must be 
 99.33  determined affordable using 50 percent of area median income.  
 99.34  For home ownership units receiving a public subsidy, 
 99.35  affordability is determined using 60 percent of area median 
 99.36  income.  
100.1      Subd. 4.  [DENSITY BONUS.] If a developer chooses to comply 
100.2   with the provisions of this section, then a development 
100.3   containing at least the minimum number of affordable units must 
100.4   receive a density bonus of at least 30 percent more units to be 
100.5   built than would otherwise be permitted. 
100.6      Subd. 5.  [EXCEPTION.] A development complies with the 
100.7   affordability requirement of this section even if that 
100.8   development does not contain the requisite affordable rental 
100.9   housing or affordable homes, if land adjacent to the development 
100.10  is given by the developer to a local housing authority or 
100.11  nonprofit developer and the requisite affordable units are 
100.12  constructed on that land. 
100.13     Subd. 6.  [REGULATORY FLEXIBILITY.] A municipality shall 
100.14  assist a development in being affordable by providing at least 
100.15  one of the following:  
100.16     (1) reduced setback and parking requirements; 
100.17     (2) decreased road width; 
100.18     (3) flexibility in site development standards or zoning 
100.19  code requirements; 
100.20     (4) waiver of permit or impact fees; 
100.21     (5) fast-track permitting; or 
100.22     (6) any other regulatory incentive that would result in 
100.23  identifiable cost avoidance or reductions and that contributes 
100.24  significantly to the economic feasibility of affordable housing. 
100.25     Subd. 7.  [RIGHT OF FIRST REFUSAL.] For 90 days after a 
100.26  development has received final approval, the local housing 
100.27  authority has the first option to purchase the affordable units 
100.28  in a development at fair market value, followed in order of 
100.29  preference by the county housing and redevelopment authority and 
100.30  nonprofit organizations.  This subdivision does not apply to 
100.31  developments using federal tax credits.  
100.32     Subd. 8.  [RENTAL LONG-TERM AFFORDABILITY.] Those housing 
100.33  units required to be affordable rental housing units by this 
100.34  section must remain at affordable rents for at least the first 
100.35  15 years after initial occupancy of the unit.  
100.36     Sec. 21.  Minnesota Statutes 2000, section 473.255, 
101.1   subdivision 1, is amended to read: 
101.2      Subdivision 1.  [DEFINITIONS.] (a) "Inclusionary housing 
101.3   development" means a new construction development~~, including~~ 
101.4   ~~owner-occupied or rental housing, or a combination of both, with~~ 
101.5   ~~a variety of prices and designs which serve families with a~~ 
101.6   ~~range of incomes and housing needs~~ complying with the 
101.7   affordability requirements of section 473.2542. 
101.8      (b) "Municipality" means a statutory or home rule charter 
101.9   city or town participating in the local housing incentives 
101.10  program under section 473.254. 
101.11     Sec. 22.  Minnesota Statutes 2000, section 473.255, 
101.12  subdivision 2, is amended to read: 
101.13     Subd. 2.  [APPLICATION CRITERIA.] The metropolitan council 
101.14  must give preference to economically viable proposals to the 
101.15  degree that they:  (1) use innovative building techniques or 
101.16  materials to lower construction costs while maintaining high 
101.17  quality construction and livability; (2) are located in 
101.18  communities that have demonstrated a willingness to waive local 
101.19  restrictions which otherwise would increase costs of 
101.20  construction; and (3) ~~include units affordable to households~~ 
101.21  ~~with incomes at or below 80 percent of area median income~~ meet 
101.22  the affordability and other requirements of section 473.2542. 
101.23     ~~Priority shall be given to proposals where at least 15~~ 
101.24  ~~percent of the owner-occupied units are affordable to households~~ 
101.25  ~~at or below 60 percent of the area annual median income and at~~ 
101.26  ~~least ten percent of the rental units are affordable to~~ 
101.27  ~~households at or below 30 percent of area annual median income.~~ 
101.28     ~~An inclusionary housing development may include resale~~ 
101.29  ~~limitations on its affordable units.  The limitations may~~ 
101.30  ~~include a minimum ownership period before a purchaser may profit~~ 
101.31  ~~on the sale of an affordable unit.~~ 
101.32     Cost savings from regulatory incentives must be reflected 
101.33  in the sale of all residences in an inclusionary development. 
101.34     Sec. 23.  Laws 2000, chapter 488, article 8, section 2, 
101.35  subdivision 6, is amended to read: 
101.36  Subd. 6.  Economic Support Grants
102.1       30,509,000     25,368,000                 
102.2   The amounts that may be spent from this 
102.3   appropriation for each purpose are as 
102.4   follows: 
102.5   [ASSISTANCE TO FAMILIES GRANTS TANF 
102.6   FORECAST ADJUSTMENT.] The federal 
102.7   Temporary Assistance to Needy Families 
102.8   (TANF) block grant fund appropriated to 
102.9   the commissioner of human services in 
102.10  Laws 1999, chapter 245, article 1, 
102.11  section 2, subdivision 10, for MFIP 
102.12  cash grants are reduced by $37,513,000 
102.13  in fiscal year 2000 and $30,217,000 in 
102.14  fiscal year 2001. 
102.15  [FEDERAL TANF FUNDS.] (1) In addition 
102.16  to the Federal Temporary Assistance for 
102.17  Needy Families (TANF) block grant funds 
102.18  appropriated to the commissioner of 
102.19  human services in Laws 1999, chapter 
102.20  245, article 1, section 2, subdivision 
102.21  10, federal TANF funds are appropriated 
102.22  to the commissioner in amounts up to 
102.23  $20,000,000 in fiscal year 2000 and 
102.24  $80,440,000 in fiscal year 2001.  In 
102.25  addition to these funds, the 
102.26  commissioner may draw or transfer any 
102.27  other appropriations of federal TANF 
102.28  funds or transfers of federal TANF 
102.29  funds that are enacted into state law. 
102.30  (2) Of the amounts in clause (1), 
102.31  $19,680,000 in fiscal year 2001 is for 
102.32  the local intervention grants program 
102.33  under Minnesota Statutes, section 
102.34  256J.625 and related grant programs and 
102.35  shall be expended as follows: 
102.36  (a) $500,000 in fiscal year 2001 is for 
102.37  a grant to the Southeast Asian MFIP 
102.38  services collaborative to replicate in 
102.39  a second location an existing model of 
102.40  an intensive intervention transitional 
102.41  employment training project which 
102.42  serves TANF-eligible recipients and 
102.43  which moves refugee and immigrant 
102.44  welfare recipients unto unsubsidized 
102.45  employment and leads to economic 
102.46  self-sufficiency.  This is a one-time 
102.47  appropriation. 
102.48  (b) $500,000 in fiscal year 2001 is for 
102.49  nontraditional career assistance and 
102.50  training programs under Minnesota 
102.51  Statutes, section 256K.30, subdivision 
102.52  4.  This is a one-time appropriation. 
102.53  (c) $18,680,000 is for local 
102.54  intervention grants for 
102.55  self-sufficiency program under 
102.56  Minnesota Statutes, section 256J.625.  
102.57  For fiscal years 2002 and 2003 the 
102.58  commissioner of finance shall ensure 
102.59  that the base level funding for the 
102.60  local intervention grants program is 
102.61  $27,180,000 each year. 
102.62  (3) Of the amounts in clause (2), 
102.63  paragraph (c) for local intervention 
103.1   grants, $7,000,000 in fiscal year 2001 
103.2   shall be transferred to the 
103.3   commissioner of health for distribution 
103.4   to county boards according to the 
103.5   formula in Minnesota Statutes, section 
103.6   256J.625, subdivision 3, to be used by 
103.7   county public health boards to serve 
103.8   families with incomes at or below 200 
103.9   percent of the federal poverty 
103.10  guidelines, in the manner specified by 
103.11  Minnesota Statutes, section 145A.16, 
103.12  subdivision 3, clauses (2) through 
103.13  (6).  Training, evaluation and 
103.14  technical assistance shall be provided 
103.15  in accordance with Minnesota Statutes, 
103.16  section 145A.16, subdivisions 5 to 7.  
103.17  For fiscal years 2002 and 2003 the 
103.18  commissioner of finance shall ensure 
103.19  that the base level funding for this 
103.20  activity is $7,000,000 each year. 
103.21  (4) Of the amounts in clause (1), 
103.22  $250,000 in fiscal year 2001 is 
103.23  appropriated to the commissioner to 
103.24  contract with the board of trustees of 
103.25  the Minnesota state colleges and 
103.26  universities to provide tuition waivers 
103.27  to employees of health care and human 
103.28  services providers located in the state 
103.29  that are members of qualifying 
103.30  consortia operating under Minnesota 
103.31  Statutes, sections 116L.10 to 116L.15. 
103.32  (5) Of the amounts in clause (1), 
103.33  $320,000 in fiscal year 2001 is for 
103.34  training job counselors about the MFIP 
103.35  program.  For fiscal years 2002 and 
103.36  2003 the commissioner of finance shall 
103.37  ensure that the base level funding for 
103.38  employment services includes $320,000 
103.39  each year for this activity.  The 
103.40  appropriations in this clause shall not 
103.41  become part of the base for the 
103.42  2004-2005 biennium. 
103.43  (6) Of the amounts in clause (1), 
103.44  $1,000,000 in fiscal year 2001 is for 
103.45  out-of-wedlock pregnancy prevention 
103.46  funds to serve children in 
103.47  TANF-eligible families under Minnesota 
103.48  Statutes, section 256K.35. For fiscal 
103.49  years 2002 and 2003 the commissioner of 
103.50  finance shall ensure that the base 
103.51  level funding for this program is 
103.52  $1,000,000 each year.  The 
103.53  appropriations in this clause shall not 
103.54  become part of the base for the 
103.55  2004-2005 biennium. 
103.56  (7) Of the amounts in clause (1), 
103.57  $1,000,000 in fiscal year 2001 is to 
103.58  provide services to TANF-eligible 
103.59  families who are participating in the 
103.60  supportive housing and managed care 
103.61  pilot project under Minnesota Statutes, 
103.62  section 256K.25.  For fiscal years 2002 
103.63  and 2003 the commissioner of finance 
103.64  shall ensure that the base level 
103.65  funding for this project is $1,000,000 
103.66  each year.  The appropriations in this 
103.67  clause shall not become part of the 
104.1   base for this project for the 2004-2005 
104.2   biennium. 
104.3   [TANF TRANSFER TO SOCIAL SERVICES.] 
104.4   $7,500,000 is transferred from the 
104.5   state's federal TANF block grant to the 
104.6   state's federal Title XX block grant in 
104.7   fiscal year 2001 and in fiscal year 
104.8   2002, for purposes of increasing 
104.9   services for families with children 
104.10  whose incomes are at or below 200 
104.11  percent of the federal poverty 
104.12  guidelines.  Notwithstanding section 6, 
104.13  this paragraph expires June 30, 2002. 
104.14  [TANF MOE.] (a) In order to meet the 
104.15  basic maintenance of effort (MOE) 
104.16  requirements of the TANF block grant 
104.17  specified under United States Code, 
104.18  title 42, section 609(a)(7), the 
104.19  commissioner may only report nonfederal 
104.20  money expended for allowable activities 
104.21  listed in the following clauses as TANF 
104.22  MOE expenditures: 
104.23  (1) MFIP cash and food assistance 
104.24  benefits under Minnesota Statutes, 
104.25  chapter 256J; 
104.26  (2) the child care assistance programs 
104.27  under Minnesota Statutes, sections 
104.28  119B.03 and 119B.05, and county child 
104.29  care administrative costs under 
104.30  Minnesota Statutes, section 119B.15; 
104.31  (3) state and county MFIP 
104.32  administrative costs under Minnesota 
104.33  Statutes, chapters 256J and 256K; 
104.34  (4) state, county, and tribal MFIP 
104.35  employment services under Minnesota 
104.36  Statutes, chapters 256J and 256K; and 
104.37  (5) expenditures made on behalf of 
104.38  noncitizen MFIP recipients who qualify 
104.39  for the medical assistance without 
104.40  federal financial participation program 
104.41  under Minnesota Statutes, section 
104.42  256B.06, subdivision 4, paragraphs (d), 
104.43  (e), and (j). 
104.44  (b) The commissioner shall ensure that 
104.45  sufficient qualified nonfederal 
104.46  expenditures are made each year to meet 
104.47  the state's TANF MOE requirements.  For 
104.48  the activities listed in paragraph (a), 
104.49  clauses (2) to (6), the commissioner 
104.50  may only report expenditures that are 
104.51  excluded from the definition of 
104.52  assistance under Code of Federal 
104.53  Regulations, title 45, section 260.31.  
104.54  If nonfederal expenditures for the 
104.55  programs and purposes listed in 
104.56  paragraph (a) are insufficient to meet 
104.57  the state's TANF MOE requirements, the 
104.58  commissioner shall recommend additional 
104.59  allowable sources of nonfederal 
104.60  expenditures to the legislature, if the 
104.61  legislature is or will be in session to 
104.62  take action to specify additional 
104.63  sources of nonfederal expenditures for 
105.1   TANF MOE before a federal penalty is 
105.2   imposed.  The commissioner shall 
105.3   otherwise provide notice to the 
105.4   legislative commission on planning and 
105.5   fiscal policy under paragraph (d). 
105.6   (c) If the commissioner uses authority 
105.7   granted under Laws 1999, chapter 245, 
105.8   article 1, section 10, or similar 
105.9   authority granted by a subsequent 
105.10  legislature, to meet the state's TANF 
105.11  MOE requirements in a reporting period, 
105.12  the commissioner shall inform the 
105.13  chairs of the appropriate legislative 
105.14  committees about all transfers made 
105.15  under that authority for this purpose. 
105.16  (d) If the commissioner determines that 
105.17  nonfederal expenditures for the 
105.18  programs under Minnesota Statutes, 
105.19  section 256J.025, are insufficient to 
105.20  meet TANF MOE expenditure requirements, 
105.21  and if the legislature is not or will 
105.22  not be in session to take timely action 
105.23  to avoid a federal penalty, the 
105.24  commissioner may report nonfederal 
105.25  expenditures from other allowable 
105.26  sources as TANF MOE expenditures after 
105.27  the requirements of this paragraph are 
105.28  met. 
105.29  The commissioner may report nonfederal 
105.30  expenditures in addition to those 
105.31  specified under paragraph (a) as 
105.32  nonfederal TANF MOE expenditures, but 
105.33  only ten days after the commissioner of 
105.34  finance has first submitted the 
105.35  commissioner's recommendations for 
105.36  additional allowable sources of 
105.37  nonfederal TANF MOE expenditures to the 
105.38  members of the legislative commission 
105.39  on planning and fiscal policy for their 
105.40  review. 
105.41  (e) The commissioner of finance shall 
105.42  not incorporate any changes in federal 
105.43  TANF expenditures or nonfederal 
105.44  expenditures for TANF MOE that may 
105.45  result from reporting additional 
105.46  allowable sources of nonfederal TANF 
105.47  MOE expenditures under the interim 
105.48  procedures in paragraph (d) into the 
105.49  February or November forecasts required 
105.50  under Minnesota Statutes, section 
105.51  16A.103, unless the commissioner of 
105.52  finance has approved the additional 
105.53  sources of expenditures under paragraph 
105.54  (d). 
105.55  (f) The provisions of paragraphs (a) to 
105.56  (e) supersede any contrary provisions 
105.57  in Laws 1999, chapter 245, article 1, 
105.58  section 2, subdivision 10. 
105.59  (g) The provisions of Minnesota 
105.60  Statutes, section 256.011, subdivision 
105.61  3, which require that federal grants or 
105.62  aids secured or obtained under that 
105.63  subdivision be used to reduce any 
105.64  direct appropriations provided by law 
105.65  do not apply if the grants or aids are 
106.1   federal TANF funds. 
106.2   (h) Notwithstanding section 6 of this 
106.3   article, paragraphs (a) to (g) expire 
106.4   June 30, 2003. 
106.5   (i) Paragraphs (a) to (h) are effective 
106.6   the day following final enactment. 
106.7   (a) Assistance to Families Grants
106.8        9,628,000     (2,305,000)                
106.9   (b) Work Grants
106.10          -0-          (250,000)
106.11  (c) AFDC and Other Assistance
106.12      20,000,000     30,734,000 
106.13  [TRANSFERS TO MINNESOTA HOUSING FINANCE 
106.14  AGENCY.] (a) By June 30, 2001, the 
106.15  commissioner shall transfer $50,000,000 
106.16  of the general funds appropriated under 
106.17  this paragraph to the Minnesota housing 
106.18  finance agency for transfer to the 
106.19  housing development fund.  The program 
106.20  funded by this transfer shall be known 
106.21  as the "Bruce F. Vento Year 2000 
106.22  Affordable Housing Program." Up to 
106.23  $15,000,000 may be transferred in 
106.24  fiscal year 2000. 
106.25  (b) Of the funds transferred in 
106.26  paragraph (a), $5,000,000 in fiscal 
106.27  year 2001 and $15,000,000 in fiscal 
106.28  year 2002 is for a loan to Habitat for 
106.29  Humanity of Minnesota, Inc.  The loan 
106.30  shall be an interest-free deferred 
106.31  loan.  The loan shall become due and 
106.32  payable in the event and to the extent 
106.33  that Habitat for Humanity of Minnesota, 
106.34  Inc. does not invest repayments and 
106.35  prepayment of mortgage loans financed 
106.36  with this appropriation in new 
106.37  mortgages for additional homebuyers 
106.38  through Habitat for Humanity of 
106.39  Minnesota, Inc.  To the extent 
106.40  practicable, funding must be allocated 
106.41  to Habitat for Humanity chapters on the 
106.42  basis of the number of MFIP households 
106.43  residing within a chapter's service 
106.44  area compared to the statewide total of 
106.45  MFIP households and on the basis of a 
106.46  chapter's capacity. 
106.47  (c) Of the funds transferred in 
106.48  paragraph (a), $15,000,000 in fiscal 
106.49  year 2001 and $15,000,000 in fiscal 
106.50  year 2002 is for the affordable rental 
106.51  investment fund program under Minnesota 
106.52  Statutes, section 462A.21, subdivision 
106.53  8b.  To the extent practicable, the 
106.54  number of units financed with the 
106.55  appropriation under this paragraph 
106.56  within a city, county, or region shall 
106.57  reflect the number of MFIP households 
106.58  residing within the city, county, or 
106.59  region compared to the statewide total 
106.60  of MFIP households.  This appropriation 
107.1   must be used to finance rental housing 
107.2   units that serve families: 
107.3   (1) receiving MFIP benefits under 
107.4   Minnesota Statutes, section 256J.01, or 
107.5   its successor program; and 
107.6   (2) who have lost eligibility for MFIP 
107.7   ~~due to increased income from employment~~ 
107.8   ~~or due to the collection of child or~~ 
107.9   ~~spousal support under part D of title~~ 
107.10  ~~IV of the Social Security Act~~ for 
107.11  reasons other than disqualification 
107.12  from MFIP due to fraud. 
107.13  Units produced with this appropriation 
107.14  must remain affordable for a 30-year 
107.15  period. 
107.16  In order to coordinate the availability 
107.17  of housing developed with the 
107.18  appropriation under this paragraph with 
107.19  MFIP families in need of affordable 
107.20  housing, the commissioner of the 
107.21  Minnesota housing finance agency, with 
107.22  the assistance of the commissioner of 
107.23  human services, shall establish 
107.24  cooperative relationships with county 
107.25  agencies as defined in Minnesota 
107.26  Statutes, section 256J.08, local 
107.27  employment and training service 
107.28  providers as defined in Minnesota 
107.29  Statutes, section 256J.49, local social 
107.30  service agencies, or other 
107.31  organizations that provide assistance 
107.32  to MFIP households.  
107.33  The commissioner of the Minnesota 
107.34  housing finance agency shall develop 
107.35  strategies to promote occupancy of the 
107.36  units financed by the appropriation 
107.37  under this paragraph by households most 
107.38  in need of subsidized housing.  The 
107.39  strategies shall include provisions 
107.40  that encourage households to move into 
107.41  homeownership or unsubsidized housing 
107.42  as the household secures stable 
107.43  employment and achieves 
107.44  self-sufficiency.  The commissioner of 
107.45  the Minnesota housing finance agency 
107.46  shall consult with interested parties 
107.47  in developing these strategies.  
107.48  (d) The commissioner of the Minnesota 
107.49  housing finance agency and the 
107.50  commissioner of human services shall 
107.51  jointly prepare and submit a report to 
107.52  the governor and the legislature on the 
107.53  results of the funding provided under 
107.54  this section.  The report shall include:
107.55  (1) information on the number of units 
107.56  produced; 
107.57  (2) the household size and income of 
107.58  the occupants of the units at initial 
107.59  occupancy; and 
107.60  (3) to the extent the information is 
107.61  available, measures related to the 
107.62  occupants' attachment to the workforce 
108.1   and public assistance usage, and number 
108.2   of occupant moves. 
108.3   The report must be submitted annually 
108.4   beginning January 15, 2003. 
108.5   (e) Section 6, sunset of uncodified 
108.6   language, does not apply to paragraphs 
108.7   (a) to (d).  Paragraphs (a) to (d) are 
108.8   effective the day following final 
108.9   enactment. 
108.10  [WORKING FAMILY CREDIT.] (a) On a 
108.11  regular basis, the commissioner of 
108.12  revenue, with the assistance of the 
108.13  commissioner of human services, shall 
108.14  calculate the value of the refundable 
108.15  portion of the Minnesota working family 
108.16  credits provided under Minnesota 
108.17  Statutes, section 290.0671, that 
108.18  qualifies for federal reimbursement 
108.19  from the temporary assistance to needy 
108.20  families block grant.  The commissioner 
108.21  of revenue shall provide the 
108.22  commissioner of human services with 
108.23  such expenditure records and 
108.24  information as are necessary to support 
108.25  draws of federal funds.  The 
108.26  commissioner of human services shall 
108.27  reimburse the commissioner of revenue 
108.28  for the costs of providing the 
108.29  information required by this paragraph. 
108.30  (b) Federal TANF funds, as specified in 
108.31  this paragraph, are appropriated to the 
108.32  commissioner of human services based on 
108.33  calculations under paragraph (a) of 
108.34  working family tax credit expenditures 
108.35  that qualify for reimbursement from the 
108.36  TANF block grant for income tax refunds 
108.37  payable in federal fiscal years 
108.38  beginning October 1, 1999.  The draws 
108.39  of federal TANF funds shall be made on 
108.40  a regular basis based on calculations 
108.41  of credit expenditures by the 
108.42  commissioner of revenue.  Up to the 
108.43  following amounts of federal TANF draws 
108.44  are appropriated to the commissioner of 
108.45  human services to deposit into the 
108.46  general fund:  in fiscal year 2000, 
108.47  $30,957,000; and in fiscal year 2001, 
108.48  $33,895,000. 
108.49  (d) General Assistance
108.50          557,000    (3,134,000)
108.51  (e) Minnesota Supplemental Aid
108.52          324,000       323,000 
108.53                             ARTICLE 6
108.54                     STATE AGENCY RESTRUCTURING
108.55     Section 1.  [STATE AGENCY RESTRUCTURING.] 
108.56     The department of labor and industry and the department of 
108.57  economic security are abolished.  The department of trade and 
109.1   economic development is renamed the department of economic and 
109.2   workforce development.  The new department of labor is created.  
109.3      <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2002. 
109.4      Sec. 2.  [TRANSFER OF RESPONSIBILITIES; DEPARTMENT OF 
109.5   ECONOMIC SECURITY.] 
109.6      Subdivision 1.  [TO DEPARTMENT OF ECONOMIC AND WORKFORCE 
109.7   DEVELOPMENT.] The responsibilities of the department of economic 
109.8   security performed by its workforce services unit for employment 
109.9   transition services, youth services, welfare-to-work services, 
109.10  and workforce exchange services are transferred to the 
109.11  department of economic and workforce development.  
109.12     Subd. 2.  [TO DEPARTMENT OF LABOR.] The responsibilities of 
109.13  the department of economic security for the unemployment 
109.14  insurance program are transferred to the department of labor. 
109.15     Subd. 3.  [TO DEPARTMENT OF COMMERCE.] The responsibility 
109.16  for energy programs of the department of economic security is 
109.17  transferred to the department of commerce. 
109.18     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2002. 
109.19     Sec. 3.  [TRANSFER OF RESPONSIBILITIES; DEPARTMENT OF LABOR 
109.20  AND INDUSTRY.] 
109.21     The responsibilities of the department of labor and 
109.22  industry are transferred to the department of labor.  
109.23     Sec. 4.  [ORGANIZATION OF ECONOMIC AND WORKFORCE 
109.24  DEVELOPMENT DEPARTMENT.] 
109.25     The department of economic and workforce development shall 
109.26  have a division of economic development consisting of business 
109.27  and community development, the Minnesota trade office, tourism 
109.28  division, information and analysis division, and administrative 
109.29  support.  The job skills partnership program shall be housed in 
109.30  the department and shall have a policy, research, and evaluation 
109.31  unit.  The department shall provide targeted-worker services to 
109.32  include the dislocated worker program and welfare-to-work 
109.33  services formerly located in the department of economic 
109.34  security.  The department shall have a unit providing special 
109.35  programs under a workforce transition services unit.  
109.36     <h>[EFFECTIVE DATE.]</h> This section is effective June 30, 2002. 
110.1      Sec. 5.  [TRANSITION TEAM CREATION; COMPOSITION.] 
110.2      Subdivision 1.  [CREATION.] A workforce development program 
110.3   reorganization transition advisory team is created.  The 
110.4   transition team shall make recommendations to the governor and 
110.5   the legislature by November 1, 2001, concerning the state 
110.6   government structure and department organization for delivering 
110.7   workforce development programs and other issues described in 
110.8   section 6.  The object of the reorganization is to consolidate 
110.9   and streamline the state's workforce development system and 
110.10  programs so as to provide the most efficient and effective 
110.11  workforce development programs.  
110.12     Subd. 2.  [TRANSITION TEAM COMPOSITION.] The transition 
110.13  team shall consist of nine members appointed as follows: 
110.14     (1) three members appointed by the governor of which one 
110.15  shall be designated as chair of the transition team; 
110.16     (2) three members of the house of representatives appointed 
110.17  by the speaker of the house of representatives, one of whom must 
110.18  be a member of the minority party; and 
110.19     (3) three members of the senate appointed by the 
110.20  subcommittee on committees of the committee on rules and 
110.21  administration of the senate, one of whom must be a member of 
110.22  the minority party.  
110.23     The transition team must solicit input from all interested 
110.24  groups on how to best implement the reorganization of state 
110.25  departments contained in this article and develop the 
110.26  recommendations required in subdivision 1. 
110.27     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
110.28  following final enactment. 
110.29     Sec. 6.  [TRANSITION TEAM DUTIES.] 
110.30     Subdivision 1.  [WORKFORCE DEVELOPMENT PROGRAMS.] The 
110.31  transition team shall: 
110.32     (1) consider alternative configurations of workforce 
110.33  development programs, including legislative proposals submitted 
110.34  during the 2001 legislative session and models from other 
110.35  states; 
110.36     (2) recommend governance structures for workforce 
111.1   development; 
111.2      (3) develop recommendations for creating stronger linkages 
111.3   between the higher education system and the workforce 
111.4   development system; 
111.5      (4) recommend statutory amendments necessary to implement 
111.6   sections 1 to 4; 
111.7      (5) recommend the appropriate programs to transfer to local 
111.8   workforce boards, including those programs under the Workforce 
111.9   Investment Act, United States Code, title 29; 
111.10     (6) recommend statutory and administrative changes 
111.11  necessary to strengthen the oversight and management 
111.12  responsibilities of local workforce boards and local elected 
111.13  officials to ensure the efficient operation of the workforce 
111.14  center system and to ensure better coordination of service 
111.15  delivery at the community level; 
111.16     (7) recommend the transfer of workforce development related 
111.17  programs from other state agencies; 
111.18     (8) recommend program modifications necessary to ensure 
111.19  coordination between the workforce development system and the 
111.20  employment and training programs administered by the department 
111.21  of human services; 
111.22     (9) recommend procedures for promoting greater coordination 
111.23  and cooperation among local workforce development agencies, 
111.24  local economic development agencies, and higher education 
111.25  institutions; 
111.26     (10) recommend methods for decreasing administrative costs 
111.27  at the state agency level for the purpose of redirecting funding 
111.28  to support the delivery of services at the community level; and 
111.29     (11) make other recommendations to complete the 
111.30  reorganization of state departments contained in this article.  
111.31     Subd. 2.  [CONSULTATION WITH INTERESTED ORGANIZATIONS.] The 
111.32  transition team shall consult with all interested organizations, 
111.33  including, but not limited to, those specified in this 
111.34  subdivision. 
111.35     The transition team shall consult with the state 
111.36  rehabilitation advisory council, the statewide independent 
112.1   living council, the rehabilitation advisory council for the 
112.2   blind, and the Minnesota state council on disability, prior to 
112.3   making recommendations to the legislature on the appropriate 
112.4   transfer of responsibility for the workforce rehabilitation 
112.5   services unit, the workforce services for the blind unit, and 
112.6   the workforce wage assistance unit from the department of 
112.7   economic security to another state agency or other recommended 
112.8   entity. 
112.9      The transition team shall consult with the SAFE 
112.10  coordinating council, prior to making any recommendation to the 
112.11  legislature, on the appropriate state agency of the juvenile 
112.12  justice program, the Minnesota city grants program, and the 
112.13  youth intervention program in the department of economic 
112.14  security. 
112.15     The transition team shall consult with the commissioners of 
112.16  economic security, trade and economic development, and labor and 
112.17  industry, and the cochairs of the legislative task force on 
112.18  workforce development prior to making any recommendation to the 
112.19  legislature under subdivision 3. 
112.20     In determining the placement in state government of state 
112.21  services for the blind, the head of the transition team shall 
112.22  consult with representatives from each of the following groups: 
112.23     (1) the rehabilitation council for the blind; 
112.24     (2) the national federation of the blind; 
112.25     (3) the American council for the blind; and 
112.26     (4) the united blind of Minnesota. 
112.27     Subd. 3.  [GOVERNMENT REORGANIZATION RECOMMENDATIONS.] The 
112.28  transition team shall recommend to the governor and legislature, 
112.29  the transfer to the appropriate state agencies of the 
112.30  responsibilities for administration of programs currently 
112.31  administered by the department of trade and economic development 
112.32  and the department of economic security.  
112.33     Subd. 4.  [TRANSFER OF WORKFORCE INVESTMENT ACT 
112.34  PROGRAMS.] The transition team may recommend, where appropriate, 
112.35  the transfer of a program, including those programs under the 
112.36  Workforce Investment Act (United States Code, title 29), title I 
113.1   and title III, to local workforce boards. 
113.2      Subd. 5.  [STAFF SUPPORT.] The commissioners of trade and 
113.3   economic development, labor and industry, and economic security 
113.4   must cooperate with and provide staff support to the transition 
113.5   team.  The support includes, but is not limited to, 
113.6   professional, technical, and clerical staff necessary to fully 
113.7   assess the programs under subdivision 4. 
113.8      Subd. 6.  [ACCESS TO DATA.] The transition team shall have 
113.9   access to private or nonpublic data within the department of 
113.10  economic security, department of labor and industry, and the 
113.11  department of trade and economic development necessary to carry 
113.12  out the objective of subdivision 4. 
113.13     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
113.14  following final enactment. 
113.15     Sec. 7.  [WORKER PROTECTION.] 
113.16     In addition to any other protection, no employee shall 
113.17  suffer job loss, have a salary reduced, or have employment 
113.18  benefits reduced as a result of a reorganization mandated or 
113.19  recommended under authority of this article. 
113.20     Sec. 8.  [EXPIRATION.] 
113.21     Sections 5 and 6 expire on June 30, 2002. 
113.22                             ARTICLE 7
113.23                TECHNOLOGY, RESEARCH, AND INVESTMENT
113.24     Section 1.  [11A.26] [MINNESOTA INVESTMENTS.] 
113.25     The board shall make an effort to identify and invest in 
113.26  venture capital funds that invest in Minnesota-based start-up 
113.27  businesses that are high technology-based and are expected to 
113.28  experience high growth.  
113.29     Sec. 2.  [11A.27] [HIGH TECHNOLOGY VENTURE CAPITAL 
113.30  PROGRAM.] 
113.31     Subdivision 1.  [ACCOUNT CREATED.] The high technology 
113.32  venture capital account is created as an account in the special 
113.33  revenue fund in the state treasury.  Earnings and gains on the 
113.34  account must be credited to the account.  Money in the account 
113.35  is appropriated to the state board of investment for the 
113.36  purposes of making investments under this section. 
114.1      Subd. 2.  [INVESTMENTS.] The board may make investments in 
114.2   private venture capital funds that provide seed capital for 
114.3   early stage development of Minnesota-based companies in 
114.4   industries that are high technology-based and are expected to 
114.5   experience high growth.  The board's investment must not exceed 
114.6   25 percent of the total investment in a particular fund.  An 
114.7   investment may not be less than $50,000 nor more than 
114.8   $2,000,000.  The board may not invest more than 20 percent of 
114.9   funds in the account in any one fund. 
114.10     Subd. 3.  [REQUEST FOR PROPOSAL.] The board may 
114.11  periodically publish requests for proposals for the purpose of 
114.12  selecting venture capital funds.  The board may also make 
114.13  investments without requesting proposals.  
114.14     Subd. 4.  [PERSONNEL.] The board may employ additional 
114.15  professional staff to select and manage investments of the 
114.16  venture capital account and may contract for investment advice 
114.17  and management services. 
114.18     Subd. 5.  [INVESTMENT RETURNS.] Earnings, realized gains, 
114.19  and other returns on investments of the account must be 
114.20  deposited in the high technology venture capital account, are 
114.21  appropriated to the board, and may be reinvested under this 
114.22  section. 
114.23     Sec. 3.  [116J.885] [BIOMEDICAL INNOVATION AND 
114.24  COMMERCIALIZATION INITIATIVE.] 
114.25     Subdivision 1.  [ESTABLISHED.] The North Star Research 
114.26  Coalition shall establish the biomedical innovation and 
114.27  commercialization initiative (BICI) as a collaborative economic 
114.28  development initiative between the University of Minnesota, 
114.29  Minnesota's medical technology industry, and investors.  BICI is 
114.30  not a state agency.  
114.31     The North Star Research Coalition shall invest $4,700,000 
114.32  in BICI if money for that purpose is appropriated to the 
114.33  coalition and if the governance documents satisfy the 
114.34  specifications of this section.  The investment is contingent on 
114.35  a three-to-one match of money contributions or investments from 
114.36  other sources. 
115.1      The board established in subdivision 2 shall organize and 
115.2   operate BICI as a for-profit entity and in a manner and form 
115.3   that the board determines best allows BICI to carry out its 
115.4   objectives.  Any distribution from BICI must be returned to all 
115.5   investors, including the coalition, in the same proportion as 
115.6   funds were contributed.  
115.7      Subd. 2.  [BOARD.] BICI is governed by a board of 
115.8   directors, appointed to six-year terms, composed of: 
115.9      (1) a representative chosen by the governor; 
115.10     (2) a representative of the North Star Research Coalition; 
115.11     (3) a representative chosen by the president of the 
115.12  University of Minnesota with the consent of the board of 
115.13  regents; and 
115.14     (4) at least five representatives from the state's medical 
115.15  technology industry, chosen by private sector investors based on 
115.16  the proportion of their equity investments. 
115.17     The board may use up to five percent of its total 
115.18  capitalization to establish a management and administrative 
115.19  budget, including the hiring of staff and for professional 
115.20  management expenses.  Members of the staff are not state 
115.21  employees. 
115.22     Subd. 3.  [MISSION OF BICI.] The mission of BICI is to: 
115.23     (1) add business and financial expertise to technologies 
115.24  that are being developed by University of Minnesota faculty and 
115.25  staff to enhance commercial value; 
115.26     (2) promote the depth, breadth, and value of technologies 
115.27  being developed by the biomedical academic community; 
115.28     (3) catalyze the development of functional, mutually 
115.29  advantageous relationships between industry, faculty, staff, the 
115.30  university, and extended research community; 
115.31     (4) provide a financial return on commercialization efforts 
115.32  to the stakeholders in BICI; and 
115.33     (5) directly commercialize technologies through the 
115.34  start-up of new Minnesota companies or enhance the marketing of 
115.35  technologies to existing companies creating expanded economic 
115.36  development opportunities. 
116.1      Subd. 4.  [STATEWIDE FOCUS.] BICI may contract and 
116.2   collaborate with higher education and other research 
116.3   institutions located throughout the state.  BICI shall promote 
116.4   the statewide distribution of business opportunities created 
116.5   through carrying out its duties under subdivision 3.  
116.6      Subd. 5.  [POWERS OF BOARD.] The board has the power to do 
116.7   all things reasonable and necessary to carry out the mission of 
116.8   BICI including, without limitation, the power to: 
116.9      (1) enter into contracts for goods and services with 
116.10  individuals and private and public entities; 
116.11     (2) sue and be sued; 
116.12     (3) acquire, hold, lease, and transfer any interest in real 
116.13  and personal property; 
116.14     (4) accept appropriations, gifts, grants, and bequests; 
116.15     (5) hire employees for BICI; and 
116.16     (6) delegate any of its powers. 
116.17     Subd. 6.  [ANNUAL REPORT.] The corporation shall publish an 
116.18  annual report within 75 days of the end of each fiscal year.  
116.19  The annual report must include a balance sheet; a statement of 
116.20  income, expenses, and cash flow; the identity of projects or 
116.21  entities receiving funding and the amount of funding; the number 
116.22  of employees of recipient entities; licensing and royalty 
116.23  revenue paid to the university by recipient entities; and 
116.24  sources of investment in the corporation.  A copy of the report 
116.25  must be transmitted to the commissioner of the department of 
116.26  trade and economic development. 
116.27     Sec. 4.  [137.45] [NORTH STAR RESEARCH COALITION.] 
116.28     Subdivision 1.  [ESTABLISHMENT.] The board of regents is 
116.29  requested to establish a partnership with private industry to 
116.30  leverage the university's research capabilities into economic 
116.31  development results through the creation of a nonprofit 
116.32  tax-exempt corporation to be known as the North Star Research 
116.33  Coalition.  The incorporating documents of the North Star 
116.34  Research Coalition must provide for representation of university 
116.35  and private sector interests on the coalition's board of 
116.36  directors and provide that changes in the governance structure 
117.1   require a supermajority of the board.  The board consists of 12 
117.2   members.  Six shall be appointed by the board of regents of the 
117.3   University of Minnesota and need not be affiliated with the 
117.4   university.  The initial six members representing the private 
117.5   sector shall be appointed by the governor.  Subsequent members 
117.6   representing the private sector shall be appointed by the 
117.7   incumbent members of the board.  Private sector members of the 
117.8   board must have expertise in the technology research needs of 
117.9   the state and not be affiliated with the university. 
117.10     Subd. 2.  [RESEARCH PROJECTS.] The coalition shall fund 
117.11  research projects consistent with this section and priorities 
117.12  established by the coalition, purchase equipment for research 
117.13  laboratories, and establish endowed faculty chairs in the area 
117.14  of technology-based research.  The coalition may fund research 
117.15  projects that establish collaborative research efforts among the 
117.16  University of Minnesota and the private sector, the Mayo Clinic, 
117.17  nonprofit research institutes, or the Minnesota state colleges 
117.18  and universities. 
117.19     Subd. 3.  [PURPOSES.] The purposes of the coalition include:
117.20     (1) identifying technology-based research projects that 
117.21  have the potential to create significant opportunities for 
117.22  economic development and industrial growth in the state; 
117.23     (2) strengthening the university's research capabilities in 
117.24  subject areas associated with emerging technology-based 
117.25  industries; 
117.26     (3) expanding the research capacity of the university 
117.27  through the creation of opportunities for the university to 
117.28  assist private enterprises in emerging technology-based 
117.29  industries; 
117.30     (4) expanding the research capacity of the university 
117.31  through the creation of opportunities for the university to 
117.32  assist private enterprises in emerging technology-based 
117.33  industries; 
117.34     (5) promoting the transfer of technology from the research 
117.35  laboratory to commercial application by businesses; 
117.36     (6) developing application procedures for, reviewing, and 
118.1   prioritizing research projects seeking funding from the 
118.2   coalition; and 
118.3      (7) creating opportunities for collaborative research among 
118.4   the University of Minnesota, the Mayo Clinic, nonprofit research 
118.5   institutes, and the Minnesota state colleges and universities. 
118.6      The board shall have the authority to allocate state and 
118.7   nonstate money to projects. 
118.8      Sec. 5.  [INITIAL TERMS.] 
118.9      Notwithstanding section 3, subdivision 2, the first board 
118.10  members appointed under clause (4) of subdivision 2 must be 
118.11  appointed as follows:  two to two-year terms, two to four-year 
118.12  terms, and one to a six-year term. 
118.13                             ARTICLE 8
118.14                   HOUSING PROGRAM CONSOLIDATION
118.15     Section 1.  Minnesota Statutes 2000, section 462A.201, 
118.16  subdivision 2, is amended to read: 
118.17     Subd. 2.  [LOW-INCOME HOUSING.] (a) The agency may~~, in~~ 
118.18  ~~consultation with the advisory committee,~~ use money from the 
118.19  housing trust fund account to provide loans or grants for: 
118.20     (1) projects for the development, construction, 
118.21  acquisition, preservation, and rehabilitation of low-income 
118.22  rental and limited equity cooperative housing units, including 
118.23  temporary and transitional housing~~, and homes for ownership~~; 
118.24     (2) the costs of operating rental housing, as determined by 
118.25  the agency, that are unique to the operation of low-income 
118.26  rental housing or supportive housing; and 
118.27     (3) rental assistance, either project-based or tenant-based.
118.28  For purposes of this section, "transitional housing" ~~means~~ 
118.29  ~~housing that is provided for a limited duration not exceeding 24~~ 
118.30  ~~months, except that up to one-third of the residents may live in~~ 
118.31  ~~the housing for up to 36 months~~ has the meaning given by the 
118.32  United States Department of Housing and Urban Development.  
118.33  Loans or grants for residential housing for migrant farmworkers 
118.34  may be made under this section.  ~~No more than 20 percent of~~ 
118.35  ~~available funds may be used for home ownership projects.~~  
118.36     (b) ~~A rental or limited equity cooperative permanent~~ 
119.1   ~~housing project must meet one of the following income tests:~~ 
119.2      ~~(1) at least 75 percent of the rental and cooperative units~~ 
119.3   ~~must be rented to or cooperatively owned by persons and families~~ 
119.4   ~~whose income does not exceed 30 percent of the median family~~ 
119.5   ~~income for the metropolitan area as defined in section 473.121,~~ 
119.6   ~~subdivision 2; or~~ 
119.7      ~~(2) all~~ The housing trust fund account must be used for the 
119.8   benefit of persons and families whose income, at the time of 
119.9   initial occupancy, does not exceed 60 percent of median income 
119.10  as determined by the United States Department of Housing and 
119.11  Urban Development for the metropolitan area.  At least 75 
119.12  percent of the ~~units funded by~~ funds in the housing trust fund 
119.13  account must be used for the benefit of persons and families 
119.14  whose income, at the time of initial occupancy, does not exceed 
119.15  30 percent of the median family income for the metropolitan area 
119.16  as defined in section 473.121, subdivision 2. For purposes of 
119.17  this section, a household with a housing assistance voucher 
119.18  under section 8 of the United States Housing Act of 1937, as 
119.19  amended, is deemed to meet the income requirements of this 
119.20  section. 
119.21     The median family income may be adjusted for families of 
119.22  five or more. 
119.23     (c) ~~Homes for ownership must be owned or purchased by~~ 
119.24  ~~persons and families whose income does not exceed 50 percent of~~ 
119.25  ~~the metropolitan area median income, adjusted for family size.~~ 
119.26     ~~(d)~~ Rental assistance under this section must be provided 
119.27  by governmental units which administer housing assistance 
119.28  supplements or for-profit or by nonprofit organizations 
119.29  experienced in housing management.  Rental assistance shall be 
119.30  limited to households whose income at the time of initial 
119.31  receipt of rental assistance does not exceed 60 percent of 
119.32  median income, as determined by the United States Department of 
119.33  Housing and Urban Development for the metropolitan area.  
119.34  Priority among comparable applications for tenant-based rental 
119.35  assistance will be given to proposals that will serve households 
119.36  whose income at the time of initial application for rental 
120.1   assistance does not exceed 30 percent of median income, as 
120.2   determined by the United States Department of Housing and Urban 
120.3   Development for the metropolitan area.  Rental assistance must 
120.4   be terminated when it is determined that 30 percent of a 
120.5   household's monthly income for four consecutive months equals or 
120.6   exceeds the market rent for the unit in which the household 
120.7   resides plus utilities for which the tenant is responsible.  
120.8   Rental assistance may only be used for rental housing units that 
120.9   meet the housing maintenance code of the local unit of 
120.10  government in which the unit is located, if a maintenance code 
120.11  has been adopted, or the housing quality standards adopted by 
120.12  the United States Department of Housing and Urban Development, 
120.13  if no local housing maintenance code has been adopted.  
120.14     (d) In making the loans or grants, the agency shall 
120.15  determine the terms and conditions of repayment and the 
120.16  appropriate security, if any, should repayment be required.  To 
120.17  promote the geographic distribution of grants and loans, the 
120.18  agency may designate a portion of the grant or loan awards to be 
120.19  set aside for projects located in specified congressional 
120.20  districts or other geographical regions specified by the 
120.21  agency.  The agency may adopt rules for awarding grants and 
120.22  loans under this subdivision. 
120.23     Sec. 2.  Minnesota Statutes 2000, section 462A.201, 
120.24  subdivision 6, is amended to read: 
120.25     Subd. 6.  [REPORT.] The agency shall submit a biennial 
120.26  report to the legislature and the governor ~~annually~~ on the use 
120.27  of the housing trust fund account including the number of loans 
120.28  and grants made, the number and types of residential units 
120.29  assisted through the account, the number of households for whom 
120.30  rental assistance payments were provided, and the number of 
120.31  residential units assisted through the account that were rented 
120.32  to or cooperatively owned by persons or families at or below 30 
120.33  percent of the median family income of the metropolitan area at 
120.34  the time of initial occupancy.  
120.35     Sec. 3.  Minnesota Statutes 2000, section 462A.209, is 
120.36  amended to read: 
121.1      462A.209 [HOME OWNERSHIP ~~ASSISTANCE~~ EDUCATION, COUNSELING, 
121.2   AND TRAINING PROGRAM.] 
121.3      Subdivision 1.  [FULL CYCLE HOME OWNERSHIP SERVICES.] 
121.4   The ~~full cycle home ownership services~~ homeownership education, 
121.5   counseling, and training program shall be used to ~~fund~~ provide 
121.6   funding to community-based nonprofit organizations and political 
121.7   subdivisions ~~providing, building capacity to provide, or~~ 
121.8   ~~supporting full cycle lending for~~ to assist them in building the 
121.9   capacity to provide and providing full cycle home ownership 
121.10  services to low and moderate income home buyers and homeowners, 
121.11  including seniors.  The purpose of the program is to encourage 
121.12  private investment in affordable housing and collaboration of 
121.13  nonprofit organizations and political subdivisions with each 
121.14  other and private lenders in providing full cycle ~~lending~~ 
121.15  homeownership services. 
121.16     Subd. 2.  [DEFINITION.] "Full cycle home ownership 
121.17  services" means supporting eligible home buyers and ~~owners~~ 
121.18  homeowners through all phases of purchasing and keeping a home, 
121.19  by providing prepurchase home buyer education~~,~~; prepurchase 
121.20  counseling and credit repair~~,~~; prepurchase and postpurchase 
121.21  property inspection and technical and financial assistance to 
121.22  buyers in rehabilitating the home~~,~~; postpurchase counseling, 
121.23  including home equity conversion loan counseling, mortgage 
121.24  default counseling, postpurchase assistance with home 
121.25  maintenance, entry cost assistance~~,~~; foreclosure prevention and 
121.26  assistance; and access to flexible loan products. 
121.27     Subd. 3.  [ELIGIBILITY.] The agency shall establish 
121.28  eligibility criteria for nonprofit organizations and political 
121.29  subdivisions to receive funding under this section.  The 
121.30  eligibility criteria must require the nonprofit organization or 
121.31  political subdivision to provide, to build capacity to provide, 
121.32  or support full cycle home ownership services for eligible home 
121.33  buyers.  The agency may fund a nonprofit organization or 
121.34  political subdivision that will provide full cycle home 
121.35  ownership services by coordinating with one or more other 
121.36  organizations that will provide specific components of full 
122.1   cycle home ownership services.  The agency may make exceptions 
122.2   to providing all components of full cycle lending if justified 
122.3   by the application.  If there are more applicants requesting 
122.4   funding than there are funds available, the agency shall award 
122.5   the funds on a competitive basis and also assure an equitable 
122.6   geographic distribution of the available funds.  The eligibility 
122.7   criteria must require the nonprofit organization or political 
122.8   subdivision to have a demonstrated involvement in the local 
122.9   community and to target the housing affordability needs of the 
122.10  local community or to have demonstrated experience with 
122.11  counseling older persons on housing, or both.  The eligibility 
122.12  criteria may include a requirement for specific training 
122.13  provided by designated state or national entities.  The agency 
122.14  may also include an eligibility criteria that requires counselor 
122.15  certification or organizational accreditation by specified 
122.16  organizations which provide certification or accreditation 
122.17  services.  Partnerships and collaboration with innovative, grass 
122.18  roots, or community-based initiatives shall be encouraged.  The 
122.19  agency shall give priority to nonprofit organizations and 
122.20  political subdivisions that ~~provide matching funds~~ have funding 
122.21  from other sources for full cycle home ownership services.  
122.22  Applicants for funds under section 462A.057 may also apply funds 
122.23  under this program. 
122.24     Subd. 4.  [ENTRY COST HOME OWNERSHIP OPPORTUNITY PROGRAM.] 
122.25  The agency may establish an entry cost home ownership 
122.26  opportunity program, on terms and conditions it deems advisable, 
122.27  to assist individuals with downpayment and closing costs to 
122.28  finance the purchase of a home. 
122.29     Subd. 5.  [SELECTION CRITERIA.] The agency shall take the 
122.30  following criteria into consideration when determining whether 
122.31  to award funds to an eligible organization: 
122.32     (1) to the extent to which there is an equitable geographic 
122.33  distribution of funds among program applicants; 
122.34     (2) the prior experience and documented familiarity of the 
122.35  organization, as may be applicable, in establishing, 
122.36  administering, and maintaining some or all of the components of 
123.1   full cycle homeownership services; 
123.2      (3) the reasonableness of the proposed budget in meeting 
123.3   the program objectives, a demonstrated ability to leverage 
123.4   program money with other sources of funding, and the extent of 
123.5   the leveraging of other sources of funding; 
123.6      (4) the extent to which efforts are targeted towards 
123.7   households with incomes that do not exceed 80 percent of the 
123.8   state or area median income or underserved segments of the local 
123.9   population; and 
123.10     (5) the extent to which program funding does not duplicate 
123.11  other efforts currently available in the local area and will 
123.12  enable, expand, or enhance existing activities. 
123.13     Subd. 6.  [DESIGNATED AREAS.] A program administrator must 
123.14  designate specific areas, communities, or neighborhoods within 
123.15  which the program is proposed to be operated for the purpose of 
123.16  focusing resources. 
123.17     Subd. 7.  [ASSISTANCE TO PREVENT MORTGAGE FORECLOSURES.] (a)
123.18  Program assistance and counseling to prevent mortgage 
123.19  foreclosures or cancellations of contract for deeds includes 
123.20  general information, screening, assessment, referral services, 
123.21  case management, advocacy, and financial assistance to borrowers 
123.22  who are delinquent on mortgage or contract for deed payments. 
123.23     (b) Not more than one-half of funds awarded for foreclosure 
123.24  prevention and assistance activities may be used for mortgage or 
123.25  financial counseling services. 
123.26     (c) Financial assistance consists of payments for 
123.27  delinquent mortgage or contract for deed payments, future 
123.28  mortgage or contract for deed payments for a period of up to six 
123.29  months, property taxes, assessments, utilities, insurance, home 
123.30  improvement repairs, future rent payments for a period of up to 
123.31  six months, and relocation costs if necessary, or other costs 
123.32  necessary to prevent foreclosure. 
123.33     (d) An individual or family may receive a maximum of $5,500 
123.34  of financial assistance to prevent a mortgage foreclosure or the 
123.35  cancellation of a contract for deed. 
123.36     (e) The agency may require the recipient of financial 
124.1   assistance to enter into an agreement with the agency for 
124.2   repayment.  The repayment agreement for mortgages or contract 
124.3   for deed buyers must provide that in the event the property is 
124.4   sold, transferred, or otherwise conveyed, or ceases to be the 
124.5   recipient's principal place of residence, the recipient shall 
124.6   repay all or a portion of the financial assistance.  The agency 
124.7   may take into consideration financial hardship in determining 
124.8   repayment requirements.  The repayment agreement may be secured 
124.9   by a lien on the property for the benefit of the agency. 
124.10     Subd. 8.  [REPORT.] By January 10 of every year, each 
124.11  nonprofit organization that delivers services under this section 
124.12  must submit a report to the agency that summarizes the number of 
124.13  people served and the sources and amounts of nonstate money used 
124.14  to fund the services.  The agency shall annually submit a report 
124.15  to the legislature by February 15. 
124.16     Sec. 4.  Minnesota Statutes 2000, section 462A.21, is 
124.17  amended by adding a subdivision to read: 
124.18     Subd. 27.  [ECONOMIC DEVELOPMENT AND HOUSING CHALLENGE 
124.19  PROGRAM.] The agency may spend money for the purposes of section 
124.20  462A.33 and may pay the costs and expenses necessary and 
124.21  incidental to the development and operation of the program. 
124.22     Sec. 5.  Minnesota Statutes 2000, section 462A.33, 
124.23  subdivision 1, is amended to read: 
124.24     Subdivision 1.  [CREATED.] The economic development and 
124.25  housing challenge program is created to be administered by the 
124.26  agency. 
124.27     (a) The program shall provide grants or loans for the 
124.28  purpose of construction, acquisition, rehabilitation, demolition 
124.29  or removal of existing structures, construction financing, 
124.30  permanent financing, interest rate reduction, refinancing, and 
124.31  gap financing of housing to support economic development and 
124.32  redevelopment activities or job creation or job preservation 
124.33  within a community or region by meeting locally identified 
124.34  housing needs. 
124.35     Gap financing is either: 
124.36     (i) the difference between the costs of the property, 
125.1   including acquisition, demolition, rehabilitation, and 
125.2   construction, and the market value of the property upon sale; or 
125.3      (ii) the difference between the cost of the property and 
125.4   the amount the targeted household can afford for housing, based 
125.5   on industry standards and practices. 
125.6      (b) Preference for grants and loans shall be given to 
125.7   comparable proposals that include regulatory changes or waivers 
125.8   that result in identifiable cost avoidance or cost reductions, 
125.9   such as increased density, flexibility in site development 
125.10  standards, or zoning code requirements.  Preference must also be 
125.11  given among comparable proposals to proposals for projects that 
125.12  are accessible to transportation systems, jobs, schools, and 
125.13  other services. 
125.14     (c) If a grant or loan is used for demolition or removal of 
125.15  existing structures, the cleared land must be used for the 
125.16  construction of housing to be owned or rented by persons who 
125.17  meet the income limits of this section or for other 
125.18  housing-related purposes that primarily benefit the persons 
125.19  residing in the adjacent housing. 
125.20     Sec. 6.  Minnesota Statutes 2000, section 462A.33, 
125.21  subdivision 2, is amended to read: 
125.22     Subd. 2.  [ELIGIBLE RECIPIENTS.] Challenge grants or loans 
125.23  may be made to a city, a private developer, a nonprofit 
125.24  organization, or the owner of the housing, including 
125.25  individuals.  For the purpose of this section, "city" has the 
125.26  meaning given it in section 462A.03, subdivision 21.  ~~Preference~~ 
125.27  ~~shall be given to challenge grants or loans for home ownership.~~  
125.28  To the extent practicable, grants and loans shall be made so 
125.29  that an approximately equal number of housing units are financed 
125.30  in the metropolitan area, as defined in section 473.121, 
125.31  subdivision 2, and in the nonmetropolitan area. 
125.32     Sec. 7.  Minnesota Statutes 2000, section 462A.33, 
125.33  subdivision 3, is amended to read: 
125.34     Subd. 3.  [CONTRIBUTION REQUIREMENT~~; REGULATORY~~ 
125.35  ~~FLEXIBILITY~~.] Fifty percent of the funds appropriated for this 
125.36  section must be used for challenge grants or loans which meet 
126.1   the requirements of this subdivision.  These challenge grants or 
126.2   loans must be used for economically viable homeownership or 
126.3   rental housing proposals that:  
126.4      (1) include a financial or in-kind contribution from an 
126.5   area employer and either a unit of local government or a private 
126.6   philanthropic, religious, or charitable organization; and 
126.7      (2) address the housing needs of the local work force.  
126.8      For the purpose of this subdivision, an employer 
126.9   contribution may consist partially or wholly of the premium paid 
126.10  for federal housing tax credits.  ~~Preference for grants and~~ 
126.11  ~~loans shall be given to comparable proposals that include~~ 
126.12  ~~regulatory changes that result in identifiable cost avoidance or~~ 
126.13  ~~cost reductions, such as increased density, flexibility in site~~ 
126.14  ~~development standards, or zoning code requirements.~~  
126.15     Preference for grants and loans shall also be given to 
126.16  comparable proposals that include a financial or in-kind 
126.17  contribution from a unit of local government, an area employer, 
126.18  and a private philanthropic, religious, or charitable 
126.19  organization. 
126.20     Sec. 8.  Minnesota Statutes 2000, section 462A.33, 
126.21  subdivision 5, is amended to read: 
126.22     Subd. 5.  [INCOME LIMITS.] Households served through 
126.23  challenge grants or loans must not have incomes at the time of 
126.24  initial occupancy that exceed, for homeownership projects, 115 
126.25  percent of the greater of state or area median income as 
126.26  determined by the United States Department of Housing and Urban 
126.27  Development, and for rental housing projects, ~~115~~ 80 percent of 
126.28  the greater of state or area median income as determined by the 
126.29  United States Department of Housing and Urban Development except 
126.30  that the housing developed or rehabilitated with challenge fund 
126.31  grants or loans must be affordable to the local work force. 
126.32     Preference among comparable proposals shall be given those 
126.33  that provide housing opportunities for an expanded range of 
126.34  household incomes within a community or that provide housing 
126.35  opportunities for a wide range of incomes within the development.
126.36     Sec. 9.  Minnesota Statutes 2000, section 462A.33, is 
127.1   amended by adding a subdivision to read: 
127.2      Subd. 8.  [LIMITATION ON RETURN.] The limitations on return 
127.3   of eligible mortgagors contained in section 462A.03, subdivision 
127.4   13, do not apply to loans or grants for rental housing if the 
127.5   loans or grants made by the agency, from all sources, are less 
127.6   than 50 percent of the total costs, as determined by the agency. 
127.7      Sec. 10.  [REPEALER.] 
127.8      Minnesota Statutes 2000, sections 462A.201, subdivision 4; 
127.9   462A.207; 462A.209, subdivision 4; 462A.21, subdivision 17; and 
127.10  462A.33, subdivisions 4, 6, and 7, are repealed. 
127.11                             ARTICLE 9
127.12            WORKFORCE DEVELOPMENT PROGRAM ADMINISTRATION
127.13     Section 1.  Minnesota Statutes 2000, section 116L.02, is 
127.14  amended to read: 
127.15     116L.02 [JOB SKILLS PARTNERSHIP PROGRAM.] 
127.16     (a) The Minnesota job skills partnership program is created 
127.17  to act as a catalyst to bring together employers with specific 
127.18  training needs with educational or other nonprofit institutions 
127.19  which can design programs to fill those needs.  The partnership 
127.20  shall work closely with employers to train and place workers in 
127.21  identifiable positions as well as assisting educational or other 
127.22  nonprofit institutions in developing training programs that 
127.23  coincide with current and future employer requirements.  The 
127.24  partnership shall provide grants to educational or other 
127.25  nonprofit institutions for the purpose of training displaced 
127.26  workers.  A participating business must match the grant-in-aid 
127.27  made by the Minnesota job skills partnership.  The match may be 
127.28  in the form of funding, equipment, or faculty. 
127.29     (b) The partnership program shall administer the health 
127.30  care and human services worker training and retention program 
127.31  under sections 116L.10 to 116L.15. 
127.32     (c) The partnership board created in section 116L.03 is the 
127.33  lead state agency for workforce policy and program development 
127.34  and coordination. 
127.35     Sec. 2.  Minnesota Statutes 2000, section 116L.03, is 
127.36  amended to read: 
128.1      116L.03 [BOARD.] 
128.2      Subdivision 1.  [MEMBERS.] The partnership shall be 
128.3   governed by a board of ~~12~~ 13 directors.  
128.4      Subd. 2.  [APPOINTMENT.] The Minnesota job skills 
128.5   partnership board consists of:  ~~nine~~ seven members appointed by 
128.6   the governor, the chair of the governor's workforce development 
128.7   council, the commissioner of trade and economic development, ~~the~~ 
128.8   ~~commissioner of economic security, and~~ the chancellor, or the 
128.9   chancellor's designee, of the Minnesota state colleges and 
128.10  universities, the president, or the president's designee, of the 
128.11  University of Minnesota, and two nonlegislator members, one 
128.12  appointed by the subcommittee on committees of the senate 
128.13  committee on rules and administration and one appointed by the 
128.14  speaker of the house.  If the chancellor or the president of the 
128.15  university makes a designation under this subdivision, the 
128.16  designee must have experience in technical education.  ~~Two~~ Four 
128.17  of the appointed members must be ~~representatives from~~ members of 
128.18  the governor's workforce development council, of whom two must 
128.19  represent organized labor and two must represent business and 
128.20  industry.  One of the appointed members must be a representative 
128.21  of a nonprofit organization that provides workforce development 
128.22  or job training services. 
128.23     Subd. 3.  [QUALIFICATIONS.] Members must have expertise in, 
128.24  and be representative of the following fields of education, job 
128.25  skills training, labor, business, and government.  
128.26     Subd. 4.  [CHAIR.] The chair shall be appointed by the 
128.27  governor.  
128.28     Subd. 5.  [TERMS.] The terms of appointed members shall be 
128.29  for four years except for the initial appointments.  The initial 
128.30  appointments of the governor shall have the following terms:  
128.31  two members each for one, two, three, and four years.  
128.32  Compensation for board members is as provided in section 
128.33  15.0575, subdivision 3. 
128.34     Subd. 7.  [OFFICES.] The board may hire an executive 
128.35  director and staff to carry out its duties.  The board shall 
128.36  have its own offices and may contract with the department of 
129.1   trade and economic development for administrative services.  The 
129.2   department of trade and economic development shall 
129.3   provide additional staff and administrative services ~~for~~ at the 
129.4   request of the board.  
129.5      Subd. 8.  [PARTNERSHIP BOARD.] The board shall administer 
129.6   and coordinate the state's workforce development activities.  
129.7   The board shall hire staff to conduct workforce policy 
129.8   development, research, and program evaluations. 
129.9      Sec. 3.  Minnesota Statutes 2000, section 116L.04, is 
129.10  amended by adding a subdivision to read: 
129.11     Subd. 4.  [PERFORMANCE STANDARDS AND REPORTING.] By January 
129.12  15, 2002, the board must develop performance standards for 
129.13  workforce development and job training programs receiving state 
129.14  funding.  The standards may vary across program types.  The 
129.15  board may contract with a consultant to develop the performance 
129.16  standards.  The board must consult with stakeholder advocacy 
129.17  groups, nonprofit service providers, and local workforce 
129.18  councils in the development of both performance standards and 
129.19  reporting requirements.  The adult standards must at a minimum 
129.20  measure: 
129.21     (1) the employability levels of individuals as defined by 
129.22  basic skill level, the amount of work experience, and barriers 
129.23  to employment prior to program entry; 
129.24     (2) the individual's annual income and employability level 
129.25  for the 12 months prior to entering the program, the starting 
129.26  annual income upon placement after completing the program, 
129.27  employability level and annual income one year after completion 
129.28  of the program, and the individual's reported satisfaction; 
129.29     (3) the program completion rate, placement rate, 
129.30  employability level upon placement, and one-year retention rate; 
129.31  and 
129.32     (4) the governmental cost per placement and per job 
129.33  retained at one year and the percentage of program funding 
129.34  coming from the state and other levels of government. 
129.35  After January 15, 2002, all workforce development programs 
129.36  receiving state funds must submit an annual performance report 
130.1   to the board.  The board may develop a uniform format for the 
130.2   report and prescribe the manner in which the report is required 
130.3   to be submitted.  
130.4      Sec. 4.  Minnesota Statutes 2000, section 116L.05, is 
130.5   amended by adding a subdivision to read: 
130.6      Subd. 4.  [ANNUAL LEGISLATIVE RECOMMENDATIONS.] By January 
130.7   15 of each year, the board must submit recommendations to the 
130.8   house and senate committees with jurisdiction over workforce 
130.9   development programs, regarding modifications to, or elimination 
130.10  of, existing workforce development programs and the potential 
130.11  implementation of new programs.  The recommendations must 
130.12  include recommendations regarding funding levels and sources.  
130.13     Sec. 5.  Minnesota Statutes 2000, section 268.022, 
130.14  subdivision 2, is amended to read: 
130.15     Subd. 2.  [DISBURSEMENT OF SPECIAL ASSESSMENT FUNDS.] (a) 
130.16  The money collected under this section shall be deposited in the 
130.17  state treasury and credited to the workforce development fund to 
130.18  provide for employment and training programs.  The workforce 
130.19  development fund is created as a special account in the state 
130.20  treasury. 
130.21     (b) All money in the fund not otherwise appropriated or 
130.22  transferred is appropriated to the commissioner who must act as 
130.23  the fiscal agent for the money and must disburse that money for 
130.24  the purposes of this section, not allowing the money to be used 
130.25  for any other obligation of the state.  All money in the 
130.26  workforce development fund shall be deposited, administered, and 
130.27  disbursed in the same manner and under the same conditions and 
130.28  requirements as are provided by law for the other special 
130.29  accounts in the state treasury, except that all interest or net 
130.30  income resulting from the investment or deposit of money in the 
130.31  fund shall accrue to the fund for the purposes of the fund. 
130.32     (c) No more than five percent of the funds collected in 
130.33  each fiscal year may be used by the department of economic 
130.34  security for its administrative costs. 
130.35     (d) Reimbursement for costs related to collection of the 
130.36  special assessment shall be in an amount negotiated between the 
131.1   commissioner and the United States Department of Labor. 
131.2      (e) The funds appropriated to the commissioner, less 
131.3   amounts under paragraphs (c) and (d) shall be allocated as 
131.4   follows:  
131.5      (1) 40 percent to be allocated annually to substate 
131.6   grantees for provision of expeditious response activities under 
131.7   section 268.9771 and worker adjustment services under section 
131.8   268.9781; and 
131.9      (2) 60 percent to be allocated to the job skills 
131.10  partnership board for activities and programs authorized 
131.11  under chapter 116L and sections 268.975 to 268.98. 
131.12     (f) Any funds not allocated, obligated, or expended in a 
131.13  fiscal year shall be available for allocation, obligation, and 
131.14  expenditure in the following fiscal year. 
131.15     Sec. 6.  Minnesota Statutes 2000, section 268.085, is 
131.16  amended by adding a subdivision to read: 
131.17     Subd. 1a.  [TRAINING SERVICES.] The commissioner must 
131.18  provide an applicant who is not job attached and is receiving 
131.19  benefits, notice of and opportunity for, employment and training 
131.20  services through a Minnesota workforce center. 
131.21     "Job attached" means the applicant is employed, on a leave 
131.22  of absence, or on temporary or seasonal layoff from employment 
131.23  due to lack of work. 
131.24     Sec. 7.  Minnesota Statutes 2000, section 268.665, is 
131.25  amended by adding a subdivision to read: 
131.26     Subd. 2a.  [EXECUTIVE COMMITTEE.] An executive committee of 
131.27  the governor's workforce development council is created.  The 
131.28  executive committee consists of the council chair, two council 
131.29  members representing organized labor, two council members 
131.30  representing business and industry, one council member 
131.31  representing a community-based organization, and one council 
131.32  member representing higher educational institutions.  Executive 
131.33  committee members are appointed by the governor.  
131.34     Sec. 8.  Minnesota Statutes 2000, section 268.665, is 
131.35  amended by adding a subdivision to read: 
131.36     Subd. 3a.  [EXECUTIVE COMMITTEE DUTIES.] The executive 
132.1   committee must develop performance standards for the state 
132.2   workforce centers.  By January 15, 2002, and each year 
132.3   thereafter, the executive committee shall submit an annual 
132.4   report to the senate and house committees with jurisdiction over 
132.5   workforce development programs regarding the performance and 
132.6   outcomes of the workforce centers.  The report must provide 
132.7   recommendations regarding workforce center funding levels and 
132.8   sources, program changes, and administrative changes.  
132.9      Sec. 9.  Minnesota Statutes 2000, section 268.666, is 
132.10  amended by adding a subdivision to read: 
132.11     Subd. 6.  [ADVANCED EMPLOYMENT AND TRAINING.] Local 
132.12  workforce centers shall establish an advanced reemployment 
132.13  program to monitor and contact underemployed individuals and 
132.14  inform them of advanced placement and training opportunities.  
132.15     Sec. 10.  [WORKFORCE CENTERS STRATEGIC PLAN.] 
132.16     The executive committee of the governor's workforce 
132.17  development council shall develop a strategic plan regarding the 
132.18  appropriate placement and number of workforce centers within the 
132.19  state.  The executive committee must consult with local 
132.20  workforce boards when determining the placement and number of 
132.21  workforce centers in their area.  The plan must recognize the 
132.22  differing employment needs of various regions, the workforce 
132.23  population within proximity of a center, and the potential for 
132.24  colocation of the workforce centers with available educational 
132.25  institutions.  By January 15, 2002, the executive committee 
132.26  shall submit the plan and recommendations for closure or 
132.27  consolidation of workforce centers to the senate and house 
132.28  committees with jurisdiction over workforce development programs.
132.29                             ARTICLE 10 
132.30                  TECHNICAL AND CONFORMING CHANGES 
132.31     Section 1.  Minnesota Statutes 2000, section 462A.01, is 
132.32  amended to read: 
132.33     462A.01 [CITATION.] 
132.34     Sections 462A.01 to ~~462A.24~~ 462A.33 shall be known as and 
132.35  may be cited as the "Minnesota Housing Finance Agency Law of 
132.36  1971."  
133.1      Sec. 2.  Minnesota Statutes 2000, section 462A.03, 
133.2   subdivision 1, is amended to read: 
133.3      Subdivision 1.  [APPLICATION.] For the purpose of ~~sections~~ 
133.4   ~~462A.01 to 462A.24~~ this chapter, the terms defined in this 
133.5   section have the meanings ascribed to them. 
133.6      Sec. 3.  Minnesota Statutes 2000, section 462A.03, 
133.7   subdivision 6, is amended to read: 
133.8      Subd. 6.  [AGENCY.] "Agency" means the Minnesota housing 
133.9   finance agency created by ~~sections 462A.01 to 462A.24~~ this 
133.10  chapter. 
133.11     Sec. 4.  Minnesota Statutes 2000, section 462A.03, 
133.12  subdivision 10, is amended to read: 
133.13     Subd. 10.  [PERSONS AND FAMILIES OF LOW AND MODERATE 
133.14  INCOME.] "Persons and families of low and moderate income" means 
133.15  persons and families, irrespective of race, creed, national 
133.16  origin, sex, or status with respect to guardianship or 
133.17  conservatorship, determined by the agency to require such 
133.18  assistance as is made available by ~~sections 462A.01 to 462A.24~~ 
133.19  this chapter on account of personal or family income not 
133.20  sufficient to afford adequate housing.  In making such 
133.21  determination the agency shall take into account the following:  
133.22  (a) The amount of the total income of such persons and families 
133.23  available for housing needs, (b) the size of the family, (c) the 
133.24  cost and condition of housing facilities available, (d) the 
133.25  eligibility of such persons and families to compete successfully 
133.26  in the normal housing market and to pay the amounts at which 
133.27  private enterprise is providing sanitary, decent and safe 
133.28  housing.  In the case of federally subsidized mortgages with 
133.29  respect to which income limits have been established by any 
133.30  agency of the federal government having jurisdiction thereover 
133.31  for the purpose of defining eligibility of low and moderate 
133.32  income families, the limits so established shall govern under 
133.33  the ~~provision~~ provisions of ~~sections 462A.01 to 462A.24~~ this 
133.34  chapter.  In all other cases income limits for the purpose of 
133.35  defining low or moderate income persons shall be established by 
133.36  the agency by rules. 
134.1      Sec. 5.  Minnesota Statutes 2000, section 462A.03, is 
134.2   amended by adding a subdivision to read: 
134.3      Subd. 23.  [METROPOLITAN AREA.] "Metropolitan area" has the 
134.4   meaning given in section 473.121, subdivision 2. 
134.5      Sec. 6.  Minnesota Statutes 2000, section 462A.04, 
134.6   subdivision 6, is amended to read: 
134.7      Subd. 6.  [MANAGEMENT, CONTROL.] The management and control 
134.8   of the agency shall be vested solely in the members in 
134.9   accordance with the provisions of ~~sections 462A.01 to 462A.24~~ 
134.10  this chapter. 
134.11     Sec. 7.  Minnesota Statutes 2000, section 462A.05, 
134.12  subdivision 16, is amended to read: 
134.13     Subd. 16.  [PAYMENTS FOR STRUCTURAL DEFECTS.] (a) It may 
134.14  make payments or expenditures from the housing development fund 
134.15  to persons of low or moderate income, who are recipients of an 
134.16  eligible loan as defined in section 462A.03, subdivision 11, or 
134.17  who have purchased residential housing from a recipient of such 
134.18  eligible loan, and who are owners and occupants of residential 
134.19  housing constructed or rehabilitated under ~~sections 462A.01 to~~ 
134.20  ~~462A.24~~ this chapter, when, in the agency's determination, such 
134.21  residential housing contains defects or omissions which affect 
134.22  the structural soundness, or the use and the livability of such 
134.23  housing, including but not limited to defects or omissions in 
134.24  materials, hardware, fixtures, design, workmanship and 
134.25  landscaping of whatever kind and nature incorporated in said 
134.26  housing and which are covered by an agency approved warranty, 
134.27  for the purposes of (i) correcting such defects, or (ii) paying 
134.28  the claims of the owner arising from such defects, provided, 
134.29  that this authority shall exist only if the owner has requested 
134.30  assistance from the agency not later than four years after the 
134.31  issuance of the eligible loan, or where such residential housing 
134.32  was rehabilitated under ~~sections 462A.01 to 462A.24~~ this chapter 
134.33  only if the owner has requested assistance from the agency not 
134.34  later than two years after the issuance of the eligible loan. 
134.35     (b) If such owner elects to receive payments or 
134.36  expenditures pursuant to this section, the agency is subrogated 
135.1   to the right of such owner to recover damages against any party 
135.2   or persons reasonably calculated to be responsible for such 
135.3   damages. 
135.4      (c) The agency may require from the seller of such 
135.5   residential housing, or the contractor responsible for the 
135.6   construction or rehabilitation of such housing, an agreement to 
135.7   reimburse the agency for any payments and expenditures made 
135.8   pursuant to this subdivision with respect to such residential 
135.9   housing. 
135.10     Sec. 8.  Minnesota Statutes 2000, section 462A.05, 
135.11  subdivision 22, is amended to read: 
135.12     Subd. 22.  [LOANS TO FINANCIAL INSTITUTIONS.] It may make 
135.13  or participate in the making and enter into commitments for the 
135.14  making of loans to any banking institution, savings association, 
135.15  or other lender approved by the members, organized under the 
135.16  laws of this or any other state or of the United States having 
135.17  an office in this state, notwithstanding the provisions of 
135.18  section 462A.03, subdivision 13, if it first determines that the 
135.19  proceeds of such loans will be utilized for the purpose of 
135.20  making loans to or for the benefit of eligible persons and 
135.21  families as provided and in accordance with ~~sections 462A.01 to~~ 
135.22  ~~462A.24~~ this chapter.  Loans pursuant to this subdivision shall 
135.23  be secured, repaid and bear interest at the rate as determined 
135.24  by the members.  
135.25     Sec. 9.  Minnesota Statutes 2000, section 462A.05, 
135.26  subdivision 26, is amended to read: 
135.27     Subd. 26.  [FORMATION OF NONPROFIT CORPORATIONS.] It may, 
135.28  when the agency determines it is necessary or desirable to carry 
135.29  out its purposes and to exercise any or all of the powers 
135.30  conferred upon it ~~under sections 462A.01 to 462A.24~~ by this 
135.31  chapter, and subject to the provisions of subdivision 27, form 
135.32  or consent to the formation of one or more corporations under 
135.33  the Minnesota Nonprofit Corporation Act, as amended, or under 
135.34  other laws of this state.  The agency may be a member of the 
135.35  corporations, and the members and employees of the agency from 
135.36  time to time may be members of the board of directors or 
136.1   officers of the corporations.  The agency may enter into 
136.2   agreements with them providing for the agency to approve various 
136.3   aspects of their operations.  The agency may capitalize the 
136.4   corporations and may acquire all or a part of the corporations' 
136.5   share or member certificates.  The agency may require that it 
136.6   approve aspects of the operation of the corporations including 
136.7   the corporations' articles of incorporation or bylaws, 
136.8   directors, projects and expenditures, and the sale or conveyance 
136.9   of projects, and the issuance of obligations.  The agency may 
136.10  agree to and may take title to property of the corporations upon 
136.11  their dissolution. 
136.12     Sec. 10.  Minnesota Statutes 2000, section 462A.06, 
136.13  subdivision 1, is amended to read: 
136.14     Subdivision 1.  [LISTED HERE.] For the purpose of 
136.15  exercising the specific powers granted in section 462A.05 and 
136.16  effectuating the other purposes of ~~sections 462A.01 to 462A.24~~ 
136.17  this chapter, the agency shall have the general powers granted 
136.18  in this section. 
136.19     Sec. 11.  Minnesota Statutes 2000, section 462A.06, 
136.20  subdivision 4, is amended to read: 
136.21     Subd. 4.  [RULES.] It may make, and from time to time, 
136.22  amend and repeal rules not inconsistent with the provisions of 
136.23  ~~sections 462A.01 to 462A.24~~ this chapter.  
136.24     Sec. 12.  Minnesota Statutes 2000, section 462A.07, 
136.25  subdivision 10, is amended to read: 
136.26     Subd. 10.  [HUMAN RIGHTS.] It may establish and enforce 
136.27  such rules as may be necessary to insure compliance with chapter 
136.28  363, and to insure that occupancy of housing assisted under 
136.29  ~~sections 462A.01 to 462A.24~~ this chapter shall be open to all 
136.30  persons, and that contractors and subcontractors engaged in the 
136.31  construction of such housing shall provide an equal opportunity 
136.32  for employment to all persons, without discrimination as to 
136.33  race, color, creed, religion, national origin, sex, marital 
136.34  status, age, and status with regard to public assistance or 
136.35  disability. 
136.36     Sec. 13.  Minnesota Statutes 2000, section 462A.07, 
137.1   subdivision 12, is amended to read: 
137.2      Subd. 12.  [USE OF OTHER AGENCIES.] It may delegate, use or 
137.3   employ any federal, state, regional or local public or private 
137.4   agency or organization, including organizations of physically 
137.5   handicapped persons, upon terms it deems necessary or desirable, 
137.6   to assist in the exercise of any of the powers granted ~~in~~ 
137.7   ~~sections 462A.01 to 462A.24~~ by this chapter and to carry out the 
137.8   objectives of ~~sections 462A.01 to 462A.24~~ this chapter and may 
137.9   pay for the services from the housing development fund. 
137.10     Sec. 14.  Minnesota Statutes 2000, section 462A.073, 
137.11  subdivision 1, is amended to read: 
137.12     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
137.13  section, the following terms have the meanings given them. 
137.14     (b) "Existing housing" means single-family housing that (i) 
137.15  has been previously occupied prior to the first day of the 
137.16  origination period; or (ii) has been available for occupancy for 
137.17  at least 12 months but has not been previously occupied.  
137.18     (c) ~~"Metropolitan area" means the metropolitan area as~~ 
137.19  ~~defined in section 473.121, subdivision 2.~~ 
137.20     ~~(d)~~ "New housing" means single-family housing that has not 
137.21  been previously occupied.  
137.22     ~~(e)~~ (d) "Origination period" means the period that loans 
137.23  financed with the proceeds of qualified mortgage revenue bonds 
137.24  are available for the purchase of single-family housing.  The 
137.25  origination period begins when financing actually becomes 
137.26  available to the borrowers for loans.  
137.27     ~~(f)~~ (e) "Redevelopment area" means a compact and contiguous 
137.28  area within which the city finds by resolution that 70 percent 
137.29  of the parcels are occupied by buildings, streets, utilities, or 
137.30  other improvements and more than 25 percent of the buildings, 
137.31  not including outbuildings, are structurally substandard to a 
137.32  degree requiring substantial renovation or clearance. 
137.33     ~~(g)~~ (f) "Single-family housing" means dwelling units 
137.34  eligible to be financed from the proceeds of qualified mortgage 
137.35  revenue bonds under federal law. 
137.36     ~~(h)~~ (g) "Structurally substandard" means containing defects 
138.1   in structural elements or a combination of deficiencies in 
138.2   essential utilities and facilities, light, ventilation, fire 
138.3   protection including adequate egress, layout and condition of 
138.4   interior partitions, or similar factors, which defects or 
138.5   deficiencies are of sufficient total significance to justify 
138.6   substantial renovation or clearance. 
138.7      Sec. 15.  Minnesota Statutes 2000, section 462A.15, is 
138.8   amended to read: 
138.9      462A.15 [STATE PLEDGE AGAINST IMPAIRMENT OF CONTRACTS.] 
138.10     The state pledges and agrees with the holders of any notes 
138.11  or bonds issued under ~~sections 462A.01 to 462A.24~~ this chapter, 
138.12  that the state will not limit or alter the rights vested in the 
138.13  agency to fulfill the terms of any agreements made with the 
138.14  holders thereof, or in any way impair the rights and remedies of 
138.15  the holders until the notes or bonds, together with the interest 
138.16  thereon, with interest on any unpaid installments of interest, 
138.17  and all costs and expenses in connection with any action or 
138.18  proceeding by or on behalf of such holders, are fully met and 
138.19  discharged.  The agency is authorized to include this pledge and 
138.20  agreement of the state in any agreement with the holders of such 
138.21  notes or bonds.  
138.22     Sec. 16.  Minnesota Statutes 2000, section 462A.17, 
138.23  subdivision 3, is amended to read: 
138.24     Subd. 3.  [RAMSEY COUNTY VENUE; NOTICE OF PRINCIPAL DUE.] 
138.25  The venue of any action or proceedings brought by the trustees 
138.26  under ~~sections 462A.01 to 462A.24~~ this chapter, shall be in 
138.27  Ramsey county.  Before declaring the principal of notes or bonds 
138.28  due and payable, the trustee shall first give 30 days' notice in 
138.29  writing to the governor, to the agency and to the state 
138.30  treasurer.  
138.31     Sec. 17.  Minnesota Statutes 2000, section 462A.204, 
138.32  subdivision 3, is amended to read: 
138.33     Subd. 3.  [SET ASIDE.] At least one grant must be awarded 
138.34  in an area located outside of the metropolitan area ~~as defined~~ 
138.35  ~~in section 473.121, subdivision 2~~.  A county, a group of 
138.36  contiguous counties jointly acting together, or a 
139.1   community-based nonprofit organization with a sponsoring 
139.2   resolution from each of the county boards of the counties 
139.3   located within its operating jurisdiction may apply for and 
139.4   receive grants for areas located outside the metropolitan area.  
139.5      Sec. 18.  Minnesota Statutes 2000, section 462A.205, 
139.6   subdivision 4, is amended to read: 
139.7      Subd. 4.  [AMOUNT AND PAYMENT OF RENT ASSISTANCE.] (a) This 
139.8   subdivision applies to both the voucher option and the 
139.9   project-based voucher option.  
139.10     (b) Within the limits of available appropriations, eligible 
139.11  families may receive monthly rent assistance for a 60-month 
139.12  period starting with the month the family first receives rent 
139.13  assistance under this section.  The amount of the family's 
139.14  portion of the rental payment is equal to at least 30 percent of 
139.15  gross income. 
139.16     (c) The rent assistance must be paid by the local housing 
139.17  organization to the property owner. 
139.18     (d) Subject to the limitations in paragraph (e), the amount 
139.19  of rent assistance is the difference between the rent and the 
139.20  family's portion of the rental payment. 
139.21     (e) In no case: 
139.22     (1) may the amount of monthly rent assistance be more than 
139.23  $250 for housing located within the metropolitan area~~, as~~ 
139.24  ~~defined in section 473.121, subdivision 2,~~ or more than $200 for 
139.25  housing located outside of the metropolitan area; 
139.26     (2) may the owner receive more rent for assisted units than 
139.27  for comparable unassisted units; nor 
139.28     (3) may the amount of monthly rent assistance be more than 
139.29  the difference between the family's portion of the rental 
139.30  payment and the fair market rent for the unit as determined by 
139.31  the Department of Housing and Urban Development. 
139.32     Sec. 19.  Minnesota Statutes 2000, section 462A.205, 
139.33  subdivision 4a, is amended to read: 
139.34     Subd. 4a.  [ADDITIONAL AUTHORIZED EXPENSES.] In addition to 
139.35  the monthly rent assistance authorized under subdivision 4, rent 
139.36  assistance may include up to $200 for a security deposit for 
140.1   housing located outside the metropolitan area~~, as defined in~~ 
140.2   ~~section 473.121, subdivision 2,~~ and up to $250 for a security 
140.3   deposit for housing located within the metropolitan area. 
140.4      Sec. 20.  Minnesota Statutes 2000, section 462A.2091, 
140.5   subdivision 3, is amended to read: 
140.6      Subd. 3.  [ELIGIBLE PROPERTY.] Contracts for deed eligible 
140.7   for refinancing with guarantee fund assistance must be for the 
140.8   purchase of an owner-occupied single-family or duplex 
140.9   structure.  In a city of the first class in the metropolitan 
140.10  area, ~~as defined in section 473.121, subdivision 2,~~ eligible 
140.11  properties must be located in an area in which at least one 
140.12  census tract meets at least three of the following four criteria:
140.13     (1) at least 70 percent of the housing structures were 
140.14  built before 1960; 
140.15     (2) at least 60 percent of the single-family housing is 
140.16  owner-occupied; 
140.17     (3) the median market value of the area's owner-occupied 
140.18  housing, as recorded in the most recent federal decennial 
140.19  census, is not more than 100 percent of the purchase price limit 
140.20  for existing homes eligible for purchase in the area under the 
140.21  agency's home mortgage loan program; and 
140.22     (4) between 1980 and 1990, the rate of owner occupancy of 
140.23  residential properties in the area declined by at least five 
140.24  percent, or at least 80 percent of the residential properties in 
140.25  the area are rental properties.  
140.26     The area must include eight blocks in any direction from 
140.27  the census tract.  Priority must be given for property located 
140.28  in an area that meets all four criteria.  
140.29     Sec. 21.  Minnesota Statutes 2000, section 462A.2093, 
140.30  subdivision 1, is amended to read: 
140.31     Subdivision 1.  [DEFINITIONS.] For purposes of this 
140.32  section, the following terms have the meanings given them in 
140.33  this subdivision. 
140.34     (a) "Municipality" means a town or a statutory or home rule 
140.35  city. 
140.36     (b) "Nonmetropolitan" means the area of the state outside 
141.1   of the metropolitan area ~~defined in section 473.121, subdivision~~ 
141.2   ~~2~~. 
141.3      (c) "Inclusionary housing development" means a new 
141.4   construction development including owner-occupied or rental 
141.5   housing, or a combination of both, with a variety of prices and 
141.6   designs which serve families with a range of incomes and housing 
141.7   needs. 
141.8      Sec. 22.  Minnesota Statutes 2000, section 462A.21, 
141.9   subdivision 5, is amended to read: 
141.10     Subd. 5.  [OTHER AGENCY PURPOSES.] It may expend moneys in 
141.11  the fund, not otherwise appropriated, for such other agency 
141.12  purposes as previously enumerated in ~~sections 462A.01 to 462A.24~~ 
141.13  this chapter as the agency in its discretion shall determine and 
141.14  provide. 
141.15     Sec. 23.  Minnesota Statutes 2000, section 462A.222, 
141.16  subdivision 1a, is amended to read: 
141.17     Subd. 1a.  [DETERMINATION OF REGIONAL CREDIT POOLS.] The 
141.18  agency shall divide the annual per capita amount used in 
141.19  determining the state ceiling for low-income housing tax credits 
141.20  provided under section 42 of the Internal Revenue Code of 1986, 
141.21  as amended, into a metropolitan pool and a greater Minnesota 
141.22  pool.  The metropolitan pool shall serve the metropolitan area 
141.23  ~~as defined in section 473.121, subdivision 2~~.  The greater 
141.24  Minnesota pool shall serve the remaining counties of the state.  
141.25  The percentage of the annual per capita amount allotted to each 
141.26  pool must be determined as follows: 
141.27     (a) The percentage set-aside for projects involving a 
141.28  qualified nonprofit organization as provided in section 42 of 
141.29  the Internal Revenue Code of 1986, as amended, must be deducted 
141.30  from the annual per capita amount used in determining the state 
141.31  ceiling. 
141.32     (b) Of the remaining amount, the metropolitan pool must be 
141.33  allotted a percentage equal to the metropolitan counties' 
141.34  percentage of the total number of state recipients of the 
141.35  Minnesota family investment program, general assistance, 
141.36  Minnesota supplemental aid, and supplemental security income in 
142.1   the state, as reported annually by the department of human 
142.2   services.  The greater Minnesota pool must be allotted the 
142.3   amount remaining after the metropolitan pool's percentage has 
142.4   been allotted. 
142.5      The set-aside for qualified nonprofit organizations must be 
142.6   divided between the two regional pools in the same percentage as 
142.7   determined for the credit amounts above. 
142.8      Sec. 24.  Minnesota Statutes 2000, section 462A.24, is 
142.9   amended to read: 
142.10     462A.24 [CONSTRUCTION.] 
142.11     ~~Sections 462A.01 to 462A.24 are~~ This chapter is necessary 
142.12  for the welfare of the state of Minnesota and its inhabitants; 
142.13  therefore, it shall be liberally construed to effect its purpose.
142.14     Sec. 25.  Minnesota Statutes 2000, section 462A.33, 
142.15  subdivision 2, is amended to read: 
142.16     Subd. 2.  [ELIGIBLE RECIPIENTS.] Challenge grants or loans 
142.17  may be made to a city, a private developer, a nonprofit 
142.18  organization, or the owner of the housing, including 
142.19  individuals.  For the purpose of this section, "city" has the 
142.20  meaning given it in section 462A.03, subdivision 21.  Preference 
142.21  shall be given to challenge grants or loans for home ownership.  
142.22  To the extent practicable, grants and loans shall be made so 
142.23  that an approximately equal number of housing units are financed 
142.24  in the metropolitan area~~, as defined in section 473.121,~~ 
142.25  ~~subdivision 2,~~ and in the nonmetropolitan area. 
142.26     Sec. 26.  [462A.34] [VISITABILITY REQUIREMENT.] 
142.27     All new construction of single-family homes, duplexes, 
142.28  triplexes, and multilevel townhouses that are financed in whole 
142.29  or in part by the agency must incorporate basic visitability 
142.30  access into their design and construction.  For the purpose of 
142.31  this section, "visitability" means designing a dwelling so that 
142.32  people with mobility impairments may enter and comfortably stay 
142.33  for a duration.  The specific design elements include one 
142.34  no-step entrance, 32-inch clear doorways throughout the 
142.35  dwelling, and a one-half bathroom on the main level.  The agency 
142.36  may waive the one-half bathroom requirement if it reduces 
143.1   affordability for the targeted population of the agency program 
143.2   from which it is funded.  The agency may waive the no-step 
143.3   entrance requirement if topographical conditions make the 
143.4   requirement impractical. 
143.5                              ARTICLE 11
143.6                       MISCELLANEOUS PROVISIONS
143.7      Section 1.  Minnesota Statutes 2000, section 116L.16, is 
143.8   amended to read: 
143.9      116L.16 [DISTANCE-WORK GRANTS.] 
143.10     The job skills partnership board may make grants-in-aid for 
143.11  distance-work projects.  The purpose of the grants is to promote 
143.12  distance-work projects involving technology in rural areas and 
143.13  may include a consortium of organizations partnering in the 
143.14  development of rural technology industry.  Grants may be used to 
143.15  identify and train rural workers in technology, act as a 
143.16  catalyst to bring together employers and rural employees to 
143.17  perform distance work, and provide rural workers with physical 
143.18  connections to telecommunications infrastructure, where 
143.19  necessary, in order to be self-employed or employed from their 
143.20  homes or satellite offices.  Grants must be made according to 
143.21  sections 116L.02 and 116L.04, except that: 
143.22     (1) the business match may include, but is not limited 
143.23  to, office space; additional management or technology staff 
143.24  costs; start-up equipment costs such as telecommunications 
143.25  infrastructure, additional software, or computer upgrades; 
143.26  consulting fees for implementation of distance-work policies or 
143.27  identification and skill assessment of potential employees; and 
143.28  the joint financial contribution of two or more businesses 
143.29  acting as a consortium; 
143.30     (2) cash or in-kind contributions by partnering 
143.31  organizations may be used as a match; 
143.32     (3) eligible grantees may be educational or nonprofit 
143.33  educational training organizations; ~~and~~ 
143.34     (4) grants-in-aid may be packaged with loans under section 
143.35  116L.06, subdivision 6; and 
143.36     (5) with respect to grants serving as a catalyst to bring 
144.1   together employers and rural employees to perform distance work, 
144.2   the match does not have to be one-to-one. 
144.3      The board shall, to the extent there are sufficient 
144.4   applications, make grant awards to as many parts of the state as 
144.5   possible.  Subject to the requirement for geographic 
144.6   distribution of grants, preference shall be given to grant 
144.7   applications that provide the most cost-effective training 
144.8   proposals, that provide the best prospects for high-paying jobs 
144.9   with high retention rates, or that are from more economically 
144.10  distressed rural areas or communities. 
144.11     Grantees must meet reporting and evaluation requirements 
144.12  established by the board. 
144.13     Sec. 2.  Minnesota Statutes 2000, section 181.945, is 
144.14  amended to read: 
144.15     181.945 [LEAVE FOR BONE MARROW DONATIONS AND ORGAN 
144.16  DONATION.] 
144.17     Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
144.18  section, the following terms have the meanings given to them in 
144.19  this subdivision. 
144.20     (b) "Employee" means a person who performs services for 
144.21  hire for an employer, for an average of 20 or more hours per 
144.22  week, and includes all individuals employed at any site owned or 
144.23  operated by an employer.  Employee does not include an 
144.24  independent contractor. 
144.25     (c) "Employer" means a person or entity that employs 20 or 
144.26  more employees at at least one site and includes an individual, 
144.27  corporation, partnership, association, nonprofit organization, 
144.28  group of persons, state, county, town, city, school district, or 
144.29  other governmental subdivision. 
144.30     Subd. 2.  [LEAVE; BONE MARROW DONATIONS.] An employer must 
144.31  grant paid leaves of absence to an employee who seeks to undergo 
144.32  a medical procedure to donate bone marrow.  The combined length 
144.33  of the leaves shall be determined by the employee, but may not 
144.34  exceed 40 work hours, unless agreed to by the employer.  The 
144.35  employer may require verification by a physician of the purpose 
144.36  and length of each leave requested by the employee to donate 
145.1   bone marrow.  If there is a medical determination that the 
145.2   employee does not qualify as a bone marrow donor, the paid leave 
145.3   of absence granted to the employee prior to that medical 
145.4   determination is not forfeited. 
145.5      Subd. 2a.  [LEAVE; ORGAN DONATION.] An employer must grant 
145.6   a paid leave of absence to an employee who seeks to undergo a 
145.7   medical procedure to donate an organ or partial organ to another 
145.8   person.  The length of the leave shall be determined by the 
145.9   employee, but may not exceed 30 working days unless agreed to by 
145.10  the employer.  The employer may require verification by a 
145.11  physician of the purpose and length of the leave required by the 
145.12  employee for organ donation.  If there is a medical 
145.13  determination that the employee does not qualify as an organ 
145.14  donor, the paid leave of absence granted to the employee prior 
145.15  to that medical determination is not forfeited. 
145.16     Subd. 3.  [NO EMPLOYER SANCTIONS.] An employer shall not 
145.17  retaliate against an employee for requesting or obtaining a 
145.18  leave of absence as provided by this section. 
145.19     Subd. 4.  [RELATIONSHIP TO OTHER LEAVE.] This section does 
145.20  not prevent an employer from providing leave for bone marrow or 
145.21  organ donations in addition to leave allowed under this 
145.22  section.  This section does not affect an employee's rights with 
145.23  respect to any other employment benefit. 
145.24     Sec. 3.  [268.195] [UNEMPLOYMENT INSURANCE TECHNOLOGY 
145.25  INITIATIVE.] 
145.26     Subdivision 1.  [PURPOSE; SET-ASIDE.] The unemployment 
145.27  insurance technology initiative involves a set-aside of a 
145.28  portion of the money that would otherwise go into the 
145.29  unemployment insurance trust fund.  This money would then be 
145.30  used on technology to provide substantially enhanced 
145.31  unemployment insurance services to both applicants for benefits 
145.32  and employers. 
145.33     Subd. 2.  [TAX REDUCTION; FEE ASSESSED.] (a) 
145.34  Notwithstanding section 268.051, subdivision 2, paragraph (b), 
145.35  effective January 1, 2002, the base unemployment tax rate on all 
145.36  taxable wages shall be reduced 0.02 percent, from 0.1 percent to 
146.1   0.08 percent.  This reduction shall expire on December 31, 2005. 
146.2      (b) Effective January 1, 2002, there shall be an 
146.3   unemployment insurance technology initiative fee on taxpaying 
146.4   employers, equal to the amount of the base unemployment tax rate 
146.5   reduction of 0.02 percent on all taxable wages.  This fee shall 
146.6   be due and be paid on the same schedule and in the same manner 
146.7   as unemployment taxes under section 268.051.  Any past due fee 
146.8   under this section shall be subject to the same interest and 
146.9   collection provisions as unemployment taxes.  The money 
146.10  collected by this fee, less reimbursement for collection costs, 
146.11  shall be deposited in the unemployment insurance technology 
146.12  initiative account.  This fee shall expire on December 31, 2005. 
146.13     Subd. 3.  [ACCOUNT.] (a) Effective January 1, 2002, there 
146.14  is hereby created in the state treasury a special account known 
146.15  as the unemployment insurance technology initiative account.  
146.16  This account shall lapse on December 31, 2007, and any money 
146.17  remaining in that account on that date shall be paid into the 
146.18  unemployment insurance program trust fund.  This account shall 
146.19  consist of all money collected by the unemployment insurance 
146.20  technology initiative fee and all interest earned upon any money 
146.21  in this account, less amounts under paragraph (e). 
146.22     (b) Money in this account is hereby appropriated to the 
146.23  commissioner and shall be allocated and expended by the 
146.24  commissioner only for technology initiatives to enhance 
146.25  unemployment insurance services for both applicants for benefits 
146.26  and employers. 
146.27     (c) Any funds not allocated, obligated, or expended in a 
146.28  fiscal year shall be available for allocation, obligation, and 
146.29  expenditure in the following fiscal year. 
146.30     (d) If the total amount collected by the technology 
146.31  initiative fee, excluding the amount expended for reimbursement 
146.32  of collection costs plus interest earned upon money in the 
146.33  unemployment insurance technology initiative account exceeds 
146.34  $30,000,000, the excess shall be paid into the unemployment 
146.35  insurance program trust fund. 
146.36     (e) Because the administrative cost of collection of the 
147.1   technology initiative fee is borne by federal money made 
147.2   available only to administer the unemployment insurance program, 
147.3   the commissioner shall negotiate with the United States 
147.4   Department of Labor the amount of any reimbursement for costs 
147.5   related to collection of the fee.  Because the amount of any 
147.6   such reimbursement is subsequently made available by the United 
147.7   States Department of Labor to the commissioner for 
147.8   administration of the unemployment insurance program, the 
147.9   commissioner shall expend, from the federal Unemployment 
147.10  Insurance Administration grant, an amount equal to the 
147.11  reimbursement on direct personnel costs of developing, 
147.12  designing, and implementing the unemployment insurance 
147.13  technology initiative. 
147.14     Subd. 4.  [SUNSET.] This section expires December 31, 2007. 
147.15     Sec. 4.  Minnesota Statutes 2000, section 473.195, is 
147.16  amended by adding a subdivision to read: 
147.17     Subd. 5.  [HRA GOVERNING BOARD.] For the purposes of 
147.18  exercising the authority granted to it under this section, the 
147.19  council may, at its sole discretion, establish within the 
147.20  council's existing organizational structure a separate governing 
147.21  body to which the council may delegate any or all of the 
147.22  authority granted to the council under this section.  The 
147.23  resolution establishing the separate governing body must: 
147.24     (1) set out the powers and duties delegated to the separate 
147.25  governing body; 
147.26     (2) prescribe the number, qualifications, and terms of the 
147.27  its members; and 
147.28     (3) provide for any other terms and conditions that are 
147.29  deemed appropriate by the council. 
147.30  The council shall appoint the members of the separate governing 
147.31  body in accordance with a process established by the council.  
147.32  No fewer than 75 percent of the members of the separate 
147.33  governing body must be council members.  For purposes of 
147.34  compliance with United State Code, title 42, section 1437(b), 
147.35  and implementing federal regulations, at least one member of the 
147.36  separate governing body members must be a resident directly 
148.1   assisted by the council.  Members are entitled to reimbursement 
148.2   for all actual and necessary expenses incurred in the 
148.3   performance of governing body business, and a member other than 
148.4   a council member is entitled to payment of $50 for each day the 
148.5   member attends one or more meetings of the separate governing 
148.6   body or performs other services authorized by the body.  The 
148.7   council shall provide administrative and staff support to the 
148.8   separate governing body.  The council may, at its sole 
148.9   discretion, abolish the separate governing body or limit or 
148.10  expand its delegated authority.  Nothing in this section impairs 
148.11  existing contracts to which the council is a party or limits the 
148.12  council's ability to enter into contracts when the council 
148.13  exercises any of the functions, rights, powers, duties, 
148.14  privileges, immunities, and limitations granted to the council 
148.15  by this section. 
148.16     Sec. 5.  [EXEMPTION FROM ADDITIONAL BENEFITS REQUIREMENTS; 
148.17  FINGERHUT; MORA; ONAN POWER ELECTRONICS; NICOLLET COUNTY.] 
148.18     Notwithstanding Minnesota Statutes, section 268.125, 
148.19  subdivisions 1 and 3, clauses (1) and (5), an applicant is 
148.20  eligible to receive additional benefits under Minnesota 
148.21  Statutes, section 268.125, effective the week following the week 
148.22  in which the applicant exhausted regular benefits if: 
148.23     (1) the applicant was laid off due to lack of work from 
148.24  Fingerhut, Inc., in Mora, Minnesota, after January 1, 2001, or 
148.25  from Onan Power Electronics in Nicollet county; and 
148.26     (2) the commissioner of economic security finds that the 
148.27  applicant satisfies the conditions of Minnesota Statutes, 
148.28  section 268.125, subdivision 3, clauses (2) to (4).  
148.29     This section does not apply to any applicant who, with 
148.30  respect to any period prior to June 1, 2001, receives, or has an 
148.31  agreement to receive, a retirement pension financed in whole or 
148.32  in part by Fingerhut, Inc. or Onan Power Electronics. 
148.33     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
148.34  following final enactment. 
148.35     Sec. 6.  [EXEMPTION FROM ADDITIONAL BENEFITS REQUIREMENTS; 
148.36  M.E. INTERNATIONAL, ST. LOUIS COUNTY.] 
149.1      Notwithstanding Minnesota Statutes, section 268.125, 
149.2   subdivisions 1 and 3, clauses (1) and (5), an applicant is 
149.3   eligible to receive additional benefits under Minnesota 
149.4   Statutes, section 268.125, effective the week following the week 
149.5   in which the applicant exhausted regular benefits if: 
149.6      (1) the applicant was laid off due to lack of work from M. 
149.7   E. International in St. Louis county on February 25, 2000; and 
149.8      (2) the commissioner of economic security finds that the 
149.9   applicant satisfies the conditions of Minnesota Statutes, 
149.10  section 268.125, subdivision 3, clauses (2) to (4).  
149.11     This section does not apply to any applicant who, with 
149.12  respect to any period prior to September 1, 2001, receives, or 
149.13  has an agreement to receive, a retirement pension financed in 
149.14  whole or in part by M. E. International. 
149.15     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
149.16  following final enactment. 
149.17     Sec. 7.  [VOLUNTARY PAID PARENTAL LEAVE PROGRAM.] 
149.18     Subdivision 1.  [CREATED.] The commissioner of economic 
149.19  security shall operate a pilot program to reimburse an 
149.20  "employer" in Minnesota, as defined in Minnesota Statutes, 
149.21  section 268.035, subdivision 14, that provides qualified paid 
149.22  parental leave.  "Qualified paid parental leave" or "leave" is 
149.23  an employer-paid leave of absence to an employee residing in 
149.24  Minnesota who is a natural or adoptive parent in conjunction 
149.25  with the birth or adoption of a child.  Qualified paid parental 
149.26  leave does not include sick leave or vacation leave.  Before 
149.27  receiving qualified paid parental leave, however, an employee 
149.28  must use up other paid leave available to the employee, 
149.29  including accumulated vacation time and time covered by 
149.30  temporary disability insurance.  Qualified paid parental leave 
149.31  must occur within the first year of birth or during the first 
149.32  year in which the employee becomes an adoptive parent.  To 
149.33  qualify for reimbursement under subdivision 2, an employer must 
149.34  pay an employee at least $200 per week of qualified paid 
149.35  parental leave unless the employee's preleave salary was $300 or 
149.36  less, in which case the employer must pay at least $100 per 
150.1   week.  Qualified paid parental leave must be at least six 
150.2   consecutive weeks in duration. 
150.3      Subd. 2.  [REIMBURSEMENT AMOUNT.] Reimbursement is one-half 
150.4   the employer weekly leave payment; except that, for employees 
150.5   with weekly preleave wages below $300, reimbursement is $100 if 
150.6   the employer pays qualified paid parental leave of at least that 
150.7   much.  Except for employees with a preleave salary of $300 or 
150.8   less, reimbursement cannot exceed one-third of an employee's 
150.9   preleave salary.  Reimbursement is limited to 26 weeks.  
150.10  Reimbursement is subject to a maximum of $250 per week.  The 
150.11  commissioner shall adjust the maximum reimbursement annually by 
150.12  the United States All-Items Consumer Price Index to reflect 
150.13  inflation.  Benefits received under this section are income for 
150.14  the purposes of Minnesota Statutes, section 119B.061.  
150.15     Subd. 3.  [NOTIFICATION.] The commissioner of economic 
150.16  security shall notify employers of the voluntary paid parental 
150.17  leave program through the department's newsletter, Web site, and 
150.18  other communications with employers.  
150.19     Subd. 4.  [EVALUATION.] By February 1, 2003, the 
150.20  commissioner of economic security shall report to the 
150.21  legislature on the number of employers requesting paid parental 
150.22  leave reimbursement, including an estimation of the number, 
150.23  size, and industry type of employers obtaining reimbursement; 
150.24  the number of employees who have taken parental leave under the 
150.25  program; the average and range of leave lengths reimbursed; and 
150.26  the average and ranges of payments, as well as implementation 
150.27  issues identified by the commissioner.  In addition, the 
150.28  commissioner shall obtain a sample of at least 30 participating 
150.29  families to provide additional information on employee's and 
150.30  employer's experiences, including information on the salary 
150.31  ranges of participating employees, employee and employer 
150.32  satisfaction or dissatisfaction with the program, and other 
150.33  information identified by the commissioner. 
150.34     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2001, 
150.35  and applies to employer-paid leave benefits paid on or after 
150.36  that date.