1.1                          A bill for an act 
  1.2             relating to metropolitan government; establishing the 
  1.3             metropolitan livable communities advisory board; 
  1.4             establishing the metropolitan livable communities fund 
  1.5             and providing for fund distribution; reducing the levy 
  1.6             authority of the metropolitan mosquito control 
  1.7             commission; extending the time period for certain 
  1.8             contributions to the areawide tax base by the city of 
  1.9             Bloomington; providing for certain revenue sharing; 
  1.10            establishing an urban homestead program; providing 
  1.11            certain tax incentives for certain housing; 
  1.12            appropriating money; amending Minnesota Statutes 1994, 
  1.13            sections 116J.556; 290.01, subdivision 19b; 473.167, 
  1.14            subdivisions 2, 3, and by adding a subdivision; 
  1.15            473.711, subdivision 2; and 473F.08, subdivision 3a, 
  1.16            and by adding a subdivision; proposing coding for new 
  1.17            law in Minnesota Statutes, chapter 473. 
  1.18  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.19                             ARTICLE 1
  1.20                METROPOLITAN LIVABLE COMMUNITIES ACT
  1.21     Section 1.  [473.25] [METROPOLITAN LIVABLE COMMUNITIES 
  1.22  ADVISORY BOARD.] 
  1.23     Subdivision 1.  [ESTABLISHED; MEMBERSHIP.] A metropolitan 
  1.24  livable communities advisory board is established and consists 
  1.25  of eleven members.  Nine members are voting members appointed by 
  1.26  the metropolitan council and who serve at the pleasure of the 
  1.27  council.  In making the appointments, the council shall consider 
  1.28  the need for: 
  1.29     (1) balanced geographic representation, including 
  1.30  representation of the core, the fully developed, developing, and 
  1.31  rural parts of the metropolitan area; and 
  2.1      (2) expertise in economic development, land use and 
  2.2   planning, housing, and other disciplines and backgrounds related 
  2.3   to the work of the board. 
  2.4      Of the nine members, at least one shall be:  
  2.5      (1) a representative of the design center for American 
  2.6   urban landscape of the University of Minnesota's college of 
  2.7   architecture and landscape architecture; 
  2.8      (2) a representative of a foundation with a record of 
  2.9   participation in urban redevelopment; 
  2.10     (3) a representative of the private sector with experience 
  2.11  in redevelopment projects; 
  2.12     (4) a representative of metropolitan area municipalities; 
  2.13  and 
  2.14     (5) a person from a community-based organization with 
  2.15  experience in redevelopment. 
  2.16     No more than five of the voting members may be of the same 
  2.17  gender.  Each year, the board shall select a voting member to 
  2.18  serve as chair of the board.  The two nonvoting members are the 
  2.19  chair of the local government and metropolitan affairs committee 
  2.20  of the house of representatives and the chair of the 
  2.21  metropolitan and local government committee of the senate, or 
  2.22  their designees. 
  2.23     Subd. 2.  [COMPENSATION.] The metropolitan council shall 
  2.24  pay board members' per diem and expenses as provided in section 
  2.25  15.059, subdivision 3, except that per diem shall be paid only 
  2.26  for days in which the member attends one or more meetings as 
  2.27  authorized by the board.  The metropolitan council shall include 
  2.28  in its budget anticipated expenditures for board members' per 
  2.29  diem and expenses. 
  2.30     Subd. 3.  [ADMINISTRATIVE SUPPORT.] The metropolitan 
  2.31  council shall provide meeting space, staff, and administrative 
  2.32  support for the board and shall distribute available funds 
  2.33  according to the annual plan prepared by the board and approved 
  2.34  by the council, as provided for in subdivision 4. 
  2.35     Subd. 4.  [POWERS AND DUTIES.] (a) The board shall 
  2.36  establish and submit to the council for approval criteria for 
  3.1   uses of the livable communities demonstration account provided 
  3.2   in section 473.253 that are consistent with and promote the 
  3.3   purposes of this article and the policies of the metropolitan 
  3.4   development guide adopted by the metropolitan council including, 
  3.5   but not limited to: 
  3.6      (1) helping to change long-term market incentives that 
  3.7   adversely impact creation and preservation of living-wage jobs 
  3.8   in the fully developed area; 
  3.9      (2) creating incentives for developing communities to 
  3.10  include a full range of housing opportunities; 
  3.11     (3) creating incentives to preserve and rehabilitate 
  3.12  affordable housing in the fully developed area; and 
  3.13     (4) creating incentives for all communities to implement 
  3.14  compact and efficient development.  
  3.15     (b) The board shall establish and submit to the council for 
  3.16  approval guidelines governing who may apply for a grant or loan 
  3.17  from the account, providing priority for proposals using 
  3.18  innovative partnerships between government, private for-profit, 
  3.19  and nonprofit sectors. 
  3.20     (c) The board shall establish and submit to the council for 
  3.21  approval guidelines for projects that the council may fund with 
  3.22  either grants or loans from the livable community demonstration 
  3.23  account.  The guidelines must provide that the projects will: 
  3.24     (1) interrelate development or redevelopment and transit; 
  3.25     (2) interrelate affordable housing and employment growth 
  3.26  areas; 
  3.27     (3) intensify land use that leads to more compact 
  3.28  development or redevelopment; 
  3.29     (4) involve development or redevelopment that mixes incomes 
  3.30  of residents in housing, including introducing or reintroducing 
  3.31  higher value housing in lower income areas to achieve a mix of 
  3.32  housing opportunities; 
  3.33     (5) encourage public infrastructure investments which 
  3.34  connect urban neighborhoods and suburban communities, attract 
  3.35  private sector redevelopment investment in commercial and 
  3.36  residential properties adjacent to the public improvement, and 
  4.1   provide project area residents with expanded opportunities for 
  4.2   private sector employment; or 
  4.3      (6) plan for the reuse and redevelopment of polluted lands 
  4.4   of regional significance. 
  4.5      (d) The board shall prepare and submit to the metropolitan 
  4.6   council an annual plan for distribution of the account based on 
  4.7   the board's criteria for project and applicant selection.  The 
  4.8   council shall either approve the whole plan or disapprove the 
  4.9   whole plan.  If the council disapproves the plan, the council 
  4.10  shall return it to the board with the council's reasons for 
  4.11  disapproval and the board shall consider the council's reasons 
  4.12  in revising and resubmitting the plan to the council for 
  4.13  approval or disapproval. 
  4.14     (e) The board shall prepare and submit to the council and 
  4.15  the legislature, as provided in section 3.195, an annual report 
  4.16  on the livable communities demonstration account.  The report 
  4.17  must include information on the amount of money in the account, 
  4.18  the amount distributed, to whom the funds were distributed and 
  4.19  for what purposes, and an evaluation of the effectiveness of the 
  4.20  projects funded in meeting the policies and goals of the board 
  4.21  and council.  The report may make recommendations to the 
  4.22  legislature on changes to this act. 
  4.23     Sec. 2.  [473.251] [METROPOLITAN LIVABLE COMMUNITIES FUND.] 
  4.24     The metropolitan livable communities fund is created and 
  4.25  consists of the following accounts:  
  4.26     (1) the tax base revitalization account; 
  4.27     (2) the livable communities demonstration account; and 
  4.28     (3) the local housing incentives account. 
  4.29     Sec. 3.  [473.252] [TAX BASE REVITALIZATION ACCOUNT.] 
  4.30     Subdivision 1.  [SOURCES OF FUNDS.] The council shall 
  4.31  credit to the tax base revitalization account any amounts 
  4.32  provided under section 473.167, subdivision 3a, paragraph (b), 
  4.33  and any amount distributed to the council under section 473F.08, 
  4.34  subdivision 3b. 
  4.35     Subd. 2.  [DISTRIBUTION OF FUNDS.] (a) The council must use 
  4.36  the funds in the account to make grants to municipalities for 
  5.1   the cleanup of polluted land in the metropolitan area.  The 
  5.2   council shall prescribe and provide the grant application form 
  5.3   to municipalities.  A site qualifies for a grant under this 
  5.4   subdivision if the criteria specified in section 116J.554, 
  5.5   subdivision 2, are met. 
  5.6      (b) (1) The legislature expects that applications for 
  5.7   grants will exceed the available funds and the council will be 
  5.8   able to provide grants to only some of the applicant 
  5.9   municipalities.  If applications for grants for qualified sites 
  5.10  exceed the available funds, the council shall make grants that 
  5.11  provide the highest return in public benefits for the public 
  5.12  costs incurred, that encourage commercial and industrial 
  5.13  development that will lead to the preservation or growth of 
  5.14  living-wage jobs and that enhance the tax base of the recipient 
  5.15  municipality. 
  5.16     (2) In making grants, the council shall establish regular 
  5.17  application deadlines in which grants will be awarded from the 
  5.18  available money in the account.  If the council provides for 
  5.19  application cycles of less than six-month intervals, the council 
  5.20  must reserve at least 40 percent of the receipts of the account 
  5.21  for a year for application deadlines that occur in the second 
  5.22  half of the year.  If the applications for grants exceed the 
  5.23  available funds for an application cycle, no more than one-half 
  5.24  of the funds may be granted to projects in a statutory or home 
  5.25  rule charter city and no more than three-quarters of the funds 
  5.26  may be granted to projects located in cities of the first class. 
  5.27     (c) A municipality may use the grant to provide a portion 
  5.28  of the local match requirement for project costs that qualify 
  5.29  for a grant under sections 116J.551 to 116J.57. 
  5.30     (d) For the purposes of this section, "municipality" means 
  5.31  a statutory or home rule charter city, town, or county in the 
  5.32  metropolitan area. 
  5.33     Sec. 4.  [473.253] [LIVABLE COMMUNITIES DEMONSTRATION 
  5.34  ACCOUNT.] 
  5.35     Subdivision 1.  [SOURCES OF FUNDS.] The council shall 
  5.36  credit to the livable communities demonstration account the 
  6.1   revenues provided in this subdivision.  This tax shall be levied 
  6.2   and collected in the manner provided by section 473.13.  The 
  6.3   levy shall not exceed the following amount for the years 
  6.4   specified:  
  6.5      (a)(1) for taxes payable in 1996, 50 percent of (i) the 
  6.6   metropolitan mosquito control commission's property tax levy 
  6.7   limit for 1995 as determined under section 473.711, subdivision 
  6.8   2, multiplied by (ii) an index for market valuation changes 
  6.9   equal to the total market valuation of all taxable property 
  6.10  located within the metropolitan area for the current taxes 
  6.11  payable year divided by the total market valuation of all 
  6.12  taxable property located in the metropolitan area for the 
  6.13  previous taxes payable year; and 
  6.14     (2) for taxes payable in 1997 and subsequent years, the 
  6.15  product of (i) the property tax levy limit under this 
  6.16  subdivision for the previous year multiplied by (ii) an index 
  6.17  for market valuation changes equal to the total market valuation 
  6.18  of all taxable property located within the metropolitan area for 
  6.19  the current taxes payable year divided by the total market 
  6.20  valuation of all taxable property located in the metropolitan 
  6.21  area for the previous taxes payable year. 
  6.22     For the purposes of this subdivision, "total market 
  6.23  valuation" means the total market valuation of all taxable 
  6.24  property within the metropolitan area without valuation 
  6.25  adjustments for fiscal disparities under chapter 473F, tax 
  6.26  increment financing under sections 469.174 to 469.179, and high 
  6.27  voltage transmission lines under section 273.425. 
  6.28     (b) The metropolitan council, for the purposes of the fund, 
  6.29  is considered a unique taxing jurisdiction for purposes of 
  6.30  receiving aid pursuant to section 273.1398.  For aid to be 
  6.31  received in 1996, the fund's homestead and agricultural credit 
  6.32  base shall equal 50 percent of the metropolitan mosquito control 
  6.33  commission's certified homestead and agricultural credit aid for 
  6.34  1995, determined under section 273.1398, subdivision 2, less any 
  6.35  permanent aid reduction under section 477A.0132.  For aid to be 
  6.36  received under section 273.1398 in 1997 and subsequent years, 
  7.1   the fund's homestead and agricultural credit base shall be 
  7.2   determined in accordance with section 273.1398, subdivision 1. 
  7.3      Subd. 2.  [DISTRIBUTION OF FUNDS.] The council shall use 
  7.4   the funds in the livable communities demonstration account to 
  7.5   fund projects meeting the approved guidelines. 
  7.6      Sec. 5.  [473.254] [LOCAL HOUSING INCENTIVES ACCOUNT.] 
  7.7      Subdivision 1.  [AFFORDABLE AND LIFE-CYCLE HOUSING 
  7.8   GOALS.] The council shall negotiate with each municipality to 
  7.9   establish affordable and life-cycle housing goals for that 
  7.10  municipality that are consistent with and promote the policies 
  7.11  of the metropolitan council as provided in the adopted 
  7.12  metropolitan development guide.  The council shall adopt, by 
  7.13  resolution after a public hearing, the negotiated affordable and 
  7.14  life-cycle housing goals for each municipality by January 15, 
  7.15  1996.  By June 30, 1996, each municipality shall identify to the 
  7.16  council the actions it plans to take to meet the established 
  7.17  housing goals. 
  7.18     Subd. 2.  [AFFORDABLE AND LIFE-CYCLE HOUSING OPPORTUNITIES 
  7.19  REQUIRED AMOUNT.] (1) By July 1, 1996, each county assessor 
  7.20  shall certify each municipality's average residential homestead 
  7.21  limited market value for the 1994 assessment year, including the 
  7.22  value of the farm house, garage, and one acre only in the case 
  7.23  of farm homesteads, multiplied by a factor of two, as the 
  7.24  municipality's "market value base amount."  (2) By July 1, 1996, 
  7.25  and each succeeding year the county assessor shall determine 
  7.26  which homesteads have market values in excess of the 
  7.27  municipality's market value base amount and the county auditor 
  7.28  shall certify the aggregate net tax capacity corresponding to 
  7.29  the amount by which those homesteads' market values exceed the 
  7.30  municipality's market value base amount as the "net tax capacity 
  7.31  excess amount" for the assessment year corresponding to the 
  7.32  current taxes payable year.  By July 1, 1996, the county auditor 
  7.33  shall also certify the net tax capacity excess amount for taxes 
  7.34  payable in 1995.  (3) By July 1, 1996, and each succeeding year, 
  7.35  the county auditor shall also certify each municipality's local 
  7.36  tax rate for the current taxes payable year.  (4) By July 1, 
  8.1   1996, and each succeeding year, the county auditor shall certify 
  8.2   for each municipality the amount equal to four percent of the 
  8.3   municipality's current year total residential homestead tax 
  8.4   capacity multiplied by the local tax rate.  (5) By August 1, 
  8.5   1996, and each succeeding year, the metropolitan council shall 
  8.6   notify each municipality of its "affordable and life-cycle 
  8.7   housing opportunities required amount" equal to the lesser of 
  8.8   the amount certified under clause (4) or the amount, if any, by 
  8.9   which the net tax capacity excess amount for the current year 
  8.10  exceeds the amount for taxes payable in 1995, multiplied by the 
  8.11  municipality's local tax rate certified in clause (3). 
  8.12     Subd. 3.  [AFFORDABLE AND LIFE-CYCLE HOUSING 
  8.13  REQUIREMENT.] (a) A municipality that is determined by the 
  8.14  council to have met its affordable and life-cycle housing goals 
  8.15  in the previous year may retain the amount calculated under 
  8.16  subdivision 2 to maintain existing affordable and life-cycle 
  8.17  housing. 
  8.18     (b) Beginning in 1999, a municipality that is determined by 
  8.19  the council not to have met the affordable and life-cycle 
  8.20  housing goals in the previous year, as negotiated and agreed to 
  8.21  with the council, and not to have spent 85 percent of its 
  8.22  affordable and life-cycle housing opportunities amount to create 
  8.23  affordable and life-cycle housing opportunities in the previous 
  8.24  year, or in aggregate over the previous three years in the case 
  8.25  of the 1996, 1997, and 1998 amounts, must do one of the 
  8.26  following with the affordable and life-cycle housing 
  8.27  opportunities amount determined under subdivision 2: 
  8.28     (1) distribute it to the local housing incentives account; 
  8.29  or 
  8.30     (2) distribute it to the housing and redevelopment 
  8.31  authority of the city or county in which the municipality is 
  8.32  located to create affordable and life-cycle housing 
  8.33  opportunities in the municipality. 
  8.34     A municipality may enter into agreements with adjacent 
  8.35  municipalities to cooperatively provide affordable and 
  8.36  life-cycle housing.  The housing may be provided in any of the 
  9.1   cooperating municipalities, but must meet the combined housing 
  9.2   goals of each participating municipality. 
  9.3      Subd. 4.  [SOURCES OF FUNDS.] (a) The council shall credit 
  9.4   to the local housing incentives account any revenues derived 
  9.5   from municipalities under subdivision 3, paragraph (b), clause 
  9.6   (1). 
  9.7      (b) The council shall credit $1,000,000 of the proceeds of 
  9.8   solid waste bonds issued by the council under Minnesota 
  9.9   Statutes, section 473.831, before its repeal, to the local 
  9.10  housing incentives account in the metropolitan livable 
  9.11  communities fund.  In 1998 and each year thereafter, the council 
  9.12  shall credit $1,000,000 of the revenues generated by the levy 
  9.13  authorized in section 473.249 to the local housing incentives 
  9.14  account. 
  9.15     Subd. 5.  [DISTRIBUTION OF FUNDS.] The funds in the account 
  9.16  must be distributed annually by the council to municipalities: 
  9.17     (1) that have not met their affordable and life-cycle 
  9.18  housing goals as determined by the council; and 
  9.19     (2) are actively funding projects designed to help meet the 
  9.20  goals.  
  9.21     The funds distributed by the council must be matched on a 
  9.22  dollar-for-dollar basis by the municipality receiving the 
  9.23  funds.  When distributing funds in the account, the council must 
  9.24  give priority to those municipalities that (1) have contribution 
  9.25  net tax capacities that exceed their distribution net tax 
  9.26  capacities by more than $200 per household, (2) demonstrate the 
  9.27  proposed project will link employment opportunities with 
  9.28  affordable housing, and (3) provide matching funds from a source 
  9.29  other than the required amount under subdivision 2.  For the 
  9.30  purposes of this subdivision, "municipality" means a statutory 
  9.31  or home rule charter city or town in the metropolitan area. 
  9.32     Subd. 6.  [REPORTING REQUIREMENT.] Beginning January 15, 
  9.33  1998, and annually thereafter, each municipality must report to 
  9.34  the council the following: 
  9.35     (1) the tax revenues defined in subdivision 2 that were 
  9.36  levied in the prior year; 
 10.1      (2) the portion of the revenues that were spent on meeting 
 10.2   the municipality's affordable and life-cycle housing goals; and 
 10.3      (3) information on how the expenditures directly support 
 10.4   the municipality's efforts to meet its affordable and life-cycle 
 10.5   housing goals. 
 10.6      The council shall verify each municipality's compliance 
 10.7   with this subdivision. 
 10.8      Sec. 6.  [PROGRAM EVALUATION.] 
 10.9      The metropolitan council shall submit a report to the 
 10.10  legislature by January 15, 2003, evaluating the metropolitan 
 10.11  livable communities act.  The report must include an accounting 
 10.12  of the funds credited to the tax base revitalization account, 
 10.13  the livable communities demonstration account, and the local 
 10.14  housing incentives account, a summary of how the funds were 
 10.15  spent, an analysis of the costs and benefits of the program, and 
 10.16  recommendations for future legislative action regarding the 
 10.17  program. 
 10.18     Sec. 7.  [2020 REPORT.] 
 10.19     The metropolitan council shall report to the legislature by 
 10.20  January 15, 1996, on the probable development patterns in and 
 10.21  affecting the metropolitan area by the year 2020 under various 
 10.22  scenarios, including the present course of growth versus 
 10.23  directed, compact, and efficient development.  The report should 
 10.24  consider impacts on the greater metropolitan region, including 
 10.25  within it counties in which five percent or more of residents 
 10.26  commute to employment in the present metropolitan region or 
 10.27  which are part of the metropolitan area as defined by the U.S. 
 10.28  Department of Commerce Standard Metropolitan Statistical Area.  
 10.29     Sec. 8.  [APPLICATION.] 
 10.30     This article applies in the counties of Anoka, Carver, 
 10.31  Dakota, Hennepin, Ramsey, Scott, and Washington. 
 10.32     Sec. 9.  [EFFECTIVE DATE.] 
 10.33     This article is effective the day after final enactment.  
 10.34  Section 4 is effective for taxes levied in 1995 and payable in 
 10.35  1996, and subsequent years. 
 10.36                             ARTICLE 2
 11.1                       MISCELLANEOUS AMENDMENTS 
 11.2      Section 1.  Minnesota Statutes 1994, section 116J.556, is 
 11.3   amended to read: 
 11.4      116J.556 [LOCAL MATCH REQUIREMENT.] 
 11.5      (a) In order to qualify for a grant under sections 116J.551 
 11.6   to 116J.557, the municipality must pay for at least one-half of 
 11.7   the project costs as a local match.  The municipality shall pay 
 11.8   an amount of the project costs equal to at least 18 percent of 
 11.9   the cleanup costs from the municipality's general fund, a 
 11.10  property tax levy for that purpose, or other unrestricted money 
 11.11  available to the municipality (excluding tax increments).  These 
 11.12  unrestricted moneys may be spent for project costs, other than 
 11.13  cleanup costs, and qualify for the local match payment equal to 
 11.14  18 percent of cleanup costs.  The rest of the local match may be 
 11.15  paid with tax increments, regional, state, or federal money 
 11.16  available for the redevelopment of brownfields or any other 
 11.17  money available to the municipality. 
 11.18     (b) If the development authority establishes a tax 
 11.19  increment financing district or hazardous substance subdistrict 
 11.20  on the site to pay for part of the local match requirement, the 
 11.21  district or subdistrict is not subject to the state aid 
 11.22  reductions under section 273.1399.  In order to qualify for the 
 11.23  exemption from the state aid reductions, the municipality must 
 11.24  elect, by resolution, on or before the request for certification 
 11.25  is filed that all tax increments from the district or 
 11.26  subdistrict will be used exclusively to pay (1) for project 
 11.27  costs for the site and (2) administrative costs for the district 
 11.28  or subdistrict.  The district or subdistrict must be decertified 
 11.29  when an amount of tax increments equal to no more than three 
 11.30  times the costs of implementing the response action plan for the 
 11.31  site and the administrative costs for the district or 
 11.32  subdistrict have been received, after deducting the amount of 
 11.33  the state grant. 
 11.34     Sec. 2.  Minnesota Statutes 1994, section 473.167, 
 11.35  subdivision 2, is amended to read: 
 11.36     Subd. 2.  [LOANS FOR ACQUISITION.] The council may make 
 12.1   loans to counties, towns, and statutory and home rule charter 
 12.2   cities within the metropolitan area for the purchase of property 
 12.3   within the right-of-way of a state trunk highway shown on an 
 12.4   official map adopted pursuant to section 394.361 or 462.359 or 
 12.5   for the purchase of property within the proposed right-of-way of 
 12.6   a principal or intermediate arterial highway designated by the 
 12.7   council as a part of the metropolitan highway system plan and 
 12.8   approved by the council pursuant to subdivision 1.  The loans 
 12.9   shall be made by the council, from the fund established pursuant 
 12.10  to this subdivision, for purchases approved by the council.  The 
 12.11  loans shall bear no interest.  The council shall make loans 
 12.12  only:  (1) to accelerate the acquisition of primarily 
 12.13  undeveloped property when there is a reasonable probability that 
 12.14  the property will increase in value before highway construction, 
 12.15  and to update an expired environmental impact statement on a 
 12.16  project for which the right-of-way is being purchased; (2) to 
 12.17  avert the imminent conversion or the granting of approvals which 
 12.18  would allow the conversion of property to uses which would 
 12.19  jeopardize its availability for highway construction; or (3) to 
 12.20  advance planning and environmental activities on highest 
 12.21  priority major metropolitan river crossing projects, under the 
 12.22  transportation development guide chapter/policy plan.  The 
 12.23  council shall not make loans for the purchase of property at a 
 12.24  price which exceeds the fair market value of the property or 
 12.25  which includes the costs of relocating or moving persons or 
 12.26  property.  A private property owner may elect to receive the 
 12.27  purchase price either in a lump sum or in not more than four 
 12.28  annual installments without interest on the deferred 
 12.29  installments.  If the purchase agreement provides for 
 12.30  installment payments, the council shall make the loan in 
 12.31  installments corresponding to those in the purchase agreement.  
 12.32  The recipient of an acquisition loan shall convey the property 
 12.33  for the construction of the highway at the same price which the 
 12.34  recipient paid for the property.  The price may include the 
 12.35  costs of preparing environmental documents that were required 
 12.36  for the acquisition and that were paid for with money that the 
 13.1   recipient received from the loan fund.  Upon notification by the 
 13.2   council that the plan to construct the highway has been 
 13.3   abandoned or the anticipated location of the highway changed, 
 13.4   the recipient shall sell the property at market value in 
 13.5   accordance with the procedures required for the disposition of 
 13.6   the property.  All rents and other money received because of the 
 13.7   recipient's ownership of the property and all proceeds from the 
 13.8   conveyance or sale of the property shall be paid to the 
 13.9   council.  If a recipient is not permitted to include in the 
 13.10  conveyance price the cost of preparing environmental documents 
 13.11  that were required for the acquisition, then the recipient is 
 13.12  not required to repay the council an amount equal to 40 percent 
 13.13  of the money received from the loan fund and spent in preparing 
 13.14  the environmental documents.  The proceeds of the tax authorized 
 13.15  by subdivision 3 and distributed to the right-of-way acquisition 
 13.16  loan fund pursuant to subdivision 3a, paragraph (a), all money 
 13.17  paid to the council by recipients of loans, and all interest on 
 13.18  the proceeds and payments shall be maintained as a separate 
 13.19  fund.  For administration of the loan program, the council may 
 13.20  expend from the fund each year an amount no greater than three 
 13.21  percent of the amount of the authorized levy proceeds 
 13.22  distributed to the right-of-way acquisition loan fund pursuant 
 13.23  to subdivision 3a, paragraph (a), for that year. 
 13.24     Sec. 3.  Minnesota Statutes 1994, section 473.167, 
 13.25  subdivision 3, is amended to read: 
 13.26     Subd. 3.  [TAX.] The council may levy a tax on all taxable 
 13.27  property in the metropolitan area, as defined in section 
 13.28  473.121, to provide funds for loans made pursuant to 
 13.29  subdivisions 2 and 2a and for the tax base revitalization 
 13.30  account in the metropolitan livable communities fund, 
 13.31  established under section 473.252.  This tax for the 
 13.32  right-of-way acquisition loan fund and the tax base 
 13.33  revitalization account shall be certified by the council, 
 13.34  levied, and collected in the manner provided by section 473.13.  
 13.35  The tax shall be in addition to that authorized by section 
 13.36  473.249 and any other law and shall not affect the amount or 
 14.1   rate of taxes which may be levied by the council or any 
 14.2   metropolitan agency or local governmental unit.  The amount of 
 14.3   the levy shall be as determined and certified by the council, 
 14.4   except as otherwise provided in this subdivision.  
 14.5      The property tax levied by the metropolitan council for the 
 14.6   right-of-way acquisition loan fund and the tax base 
 14.7   revitalization account shall not exceed the following amount for 
 14.8   the years specified: 
 14.9      (a) for taxes payable in 1988, the product of 5/100 of one 
 14.10  mill multiplied by the total assessed valuation of all taxable 
 14.11  property located within the metropolitan area as adjusted by the 
 14.12  provisions of Minnesota Statutes 1986, sections 272.64; 273.13, 
 14.13  subdivision 7a; and 275.49; 
 14.14     (b) for taxes payable in 1989, except as provided in 
 14.15  section 473.249, subdivision 3, the product of (1) the 
 14.16  metropolitan council's property tax levy limitation for the 
 14.17  right-of-way acquisition loan fund for the taxes payable year 
 14.18  1988 determined under clause (a) multiplied by (2) an index for 
 14.19  market valuation changes equal to the assessment year 1988 total 
 14.20  market valuation of all taxable property located within the 
 14.21  metropolitan area divided by the assessment year 1987 total 
 14.22  market valuation of all taxable property located within the 
 14.23  metropolitan area; 
 14.24     (c) for taxes payable in 1990, an amount not to exceed 
 14.25  $2,700,000; and 
 14.26     (d) for taxes payable in 1991 and subsequent years, the 
 14.27  product of (1) the metropolitan council's property tax levy 
 14.28  limitation for the right-of-way acquisition loan fund for the 
 14.29  taxes payable in 1988 determined under clause (a) multiplied by 
 14.30  (2) an index for market valuation changes equal to the total 
 14.31  market valuation of all taxable property located within the 
 14.32  metropolitan area for the current taxes payable year divided by 
 14.33  the total market valuation of all taxable property located 
 14.34  within the metropolitan area for taxes payable in 1988. 
 14.35     For the purpose of determining the metropolitan council's 
 14.36  property tax levy limitation for the right-of-way acquisition 
 15.1   loan fund and tax base revitalization account in the 
 15.2   metropolitan livable communities fund, under section 473.252, 
 15.3   for the taxes payable year 1988 and subsequent years under this 
 15.4   subdivision, "total market valuation" means the total market 
 15.5   valuation of all taxable property within the metropolitan area 
 15.6   without valuation adjustments for fiscal disparities (chapter 
 15.7   473F), tax increment financing (sections 469.174 to 469.179), 
 15.8   and high voltage transmission lines (section 273.425). 
 15.9      The property tax levied under this subdivision for taxes 
 15.10  payable in 1988 and subsequent years shall not be levied at a 
 15.11  rate higher than that determined by the metropolitan council to 
 15.12  be sufficient, considering the other anticipated revenues of and 
 15.13  disbursements from the right-of-way acquisition loan fund, to 
 15.14  produce a balance in the loan fund at the end of the next 
 15.15  calendar year equal to twice the amount of the property tax levy 
 15.16  limitation for taxes payable in the next calendar year 
 15.17  determined under this section. 
 15.18     Sec. 4.  Minnesota Statutes 1994, section 473.167, is 
 15.19  amended by adding a subdivision to read: 
 15.20     Subd. 3a.  [DISTRIBUTION OF TAX PROCEEDS.] (a) Right-of-way 
 15.21  acquisition loan fund.  Tax proceeds shall first be deposited 
 15.22  into the right-of-way acquisition loan fund in an amount 
 15.23  determined by the metropolitan council to be sufficient, 
 15.24  considering the other anticipated revenues of and disbursements 
 15.25  from the right-of-way acquisition loan fund, to produce a 
 15.26  balance in the loan fund at the end of the next calendar year 
 15.27  equal to twice the amount of the property tax levy limitation 
 15.28  for taxes payable in the next calendar year determined under 
 15.29  subdivision 3. 
 15.30     (b) Metropolitan livable communities tax base 
 15.31  revitalization account.  Any tax proceeds not first deposited 
 15.32  into the right-of-way acquisition loan fund shall be distributed 
 15.33  to the tax base revitalization account in the metropolitan 
 15.34  livable communities fund, established under section 473.252. 
 15.35     Sec. 5.  Minnesota Statutes 1994, section 473.711, 
 15.36  subdivision 2, is amended to read: 
 16.1      Subd. 2.  [BUDGET; TAX LEVY.] (a) Budget.  The metropolitan 
 16.2   mosquito control commission shall prepare an annual budget.  The 
 16.3   budget may provide for expenditures in an amount not exceeding 
 16.4   the property tax levy limitation determined in this subdivision. 
 16.5      (b) Tax Levy.  The commission may levy a tax on all taxable 
 16.6   property in the district as defined in section 473.702 to 
 16.7   provide funds for the purposes of sections 473.701 to 473.716.  
 16.8   The tax shall not exceed the property tax levy limitation 
 16.9   determined in this subdivision.  A participating county may 
 16.10  agree to levy an additional tax to be used by the commission for 
 16.11  the purposes of sections 473.701 to 473.716 but the sum of the 
 16.12  county's and commission's taxes may not exceed the county's 
 16.13  proportionate share of the property tax levy limitation 
 16.14  determined under this subdivision based on the ratio of its 
 16.15  total net tax capacity to the total net tax capacity of the 
 16.16  entire district as adjusted by section 270.12, subdivision 3.  
 16.17  The auditor of each county in the district shall add the amount 
 16.18  of the levy made by the district to other taxes of the county 
 16.19  for collection by the county treasurer with other taxes.  When 
 16.20  collected, the county treasurer shall make settlement of the tax 
 16.21  with the district in the same manner as other taxes are 
 16.22  distributed to political subdivisions.  No county shall levy any 
 16.23  tax for mosquito, disease vectoring tick, and black gnat 
 16.24  (Simuliidae) control except under sections 473.701 to 473.716 
 16.25  this section.  The levy shall be in addition to other taxes 
 16.26  authorized by law. 
 16.27     The property tax levied by the metropolitan mosquito 
 16.28  control commission shall not exceed the following amount for the 
 16.29  years specified: 
 16.30     (i) for taxes payable in 1996, 50 percent of the product of 
 16.31  (1) the commission's property tax levy limitation for the 
 16.32  previous year determined under this subdivision multiplied by 
 16.33  (2) an index for market valuation changes equal to the total 
 16.34  market valuation of all taxable property located within the 
 16.35  district for the current assessment taxes payable year divided 
 16.36  by the total market valuation of all taxable property located 
 17.1   within the district for the previous assessment taxes payable 
 17.2   year; and 
 17.3      (ii) for taxes payable in 1997 and subsequent years, the 
 17.4   product of (1) the commission's property tax levy limitation for 
 17.5   the previous year determined under this subdivision multiplied 
 17.6   by (2) an index for market valuation changes equal to the total 
 17.7   market valuation of all taxable property located within the 
 17.8   district for the current taxes payable year divided by the total 
 17.9   market valuation of all taxable property located within the 
 17.10  district for the previous taxes payable year. 
 17.11     For the purpose of determining the commission's property 
 17.12  tax levy limitation under this subdivision, "total market 
 17.13  valuation" means the total market valuation of all taxable 
 17.14  property within the district without valuation adjustments for 
 17.15  fiscal disparities (chapter 473F), tax increment financing 
 17.16  (sections 469.174 to 469.179), and high voltage transmission 
 17.17  lines (section 273.425). 
 17.18     (c) Homestead and Agricultural Credit Aid.  For aids 
 17.19  payable in 1996 and subsequent years, the commission's homestead 
 17.20  and agricultural credit aid base under section 273.1398, 
 17.21  subdivision 1, is permanently reduced by 50 percent of the 
 17.22  amount certified to be received in 1995, less any permanent aid 
 17.23  reduction in 1995 under section 477A.0132. 
 17.24     (d) Emergency Tax Levy.  If the commissioner of the 
 17.25  department of health declares a health emergency due to a 
 17.26  threatened or actual outbreak of disease caused by mosquitos, 
 17.27  disease vectoring ticks, or black gnats (Simuliidae), the 
 17.28  commission may levy an additional tax not to exceed $500,000 on 
 17.29  all taxable property in the district to pay for the required 
 17.30  control measures. 
 17.31     (e) Optional County Levy.  A participating county may levy 
 17.32  a tax in an amount to be determined by the county board for 
 17.33  mosquito, disease vectoring tick, and black gnat (Simuliidae) 
 17.34  nuisance control.  If the county levies the tax for nuisance 
 17.35  control, it must contract with the commission to provide for 
 17.36  nuisance control activities within the county.  The levy for 
 18.1   nuisance control shall be in addition to other levies authorized 
 18.2   by law to the county. 
 18.3      Sec. 6.  Minnesota Statutes 1994, section 473F.08, 
 18.4   subdivision 3a, is amended to read: 
 18.5      Subd. 3a.  Beginning in 1987 and each subsequent year 
 18.6   through 1998, the city of Bloomington shall determine the 
 18.7   interest payments for that year for the bonds which have been 
 18.8   sold for the highway improvements pursuant to Laws 1986, chapter 
 18.9   391, section 2, paragraph (g).  Effective for property taxes 
 18.10  payable in 1988 through property taxes payable in 1999, after 
 18.11  the Hennepin county auditor has computed the areawide portion of 
 18.12  the levy for the city of Bloomington pursuant to subdivision 3, 
 18.13  clause (a), the auditor shall annually add a dollar amount to 
 18.14  the city of Bloomington's areawide portion of the levy equal to 
 18.15  the amount which has been certified to the auditor by the city 
 18.16  of Bloomington for the interest payments for that year for the 
 18.17  bonds which were sold for highway improvements.  The total 
 18.18  areawide portion of the levy for the city of Bloomington 
 18.19  including the additional amount for interest repayment certified 
 18.20  pursuant to this subdivision shall be certified by the Hennepin 
 18.21  county auditor to the administrative auditor pursuant to 
 18.22  subdivision 5.  The Hennepin county auditor shall distribute to 
 18.23  the city of Bloomington the additional areawide portion of the 
 18.24  levy computed pursuant to this subdivision at the same time that 
 18.25  payments are made to the other counties pursuant to subdivision 
 18.26  7a.  For property taxes payable from the year 2000 2006 through 
 18.27  2009 2020, the Hennepin county auditor shall adjust 
 18.28  Bloomington's contribution to the areawide gross tax capacity 
 18.29  upward each year by a value equal to ten percent one-fifteenth 
 18.30  of the total additional areawide levy distributed to Bloomington 
 18.31  under this subdivision from 1988 to 1999, divided by the 
 18.32  areawide tax rate for taxes payable in the previous year. 
 18.33     Sec. 7.  Minnesota Statutes 1994, section 473F.08, is 
 18.34  amended by adding a subdivision to read: 
 18.35     Subd. 3b.  [LIVABLE COMMUNITIES FUND.] (a) The Hennepin 
 18.36  county auditor shall certify the city of Bloomington's interest 
 19.1   payments for 1988 for the bonds which were sold for highway 
 19.2   improvements pursuant to Laws 1986, chapter 391, section 2, 
 19.3   paragraph (g), and which were certified as an addition to the 
 19.4   city of Bloomington's areawide levy for taxes payable in 1989. 
 19.5      (b) For taxes payable in 1996 through taxes payable in 
 19.6   1999, the Hennepin county auditor shall certify the amount 
 19.7   calculated by subtracting the amount certified under subdivision 
 19.8   3a from the amount in paragraph (a).  For taxes payable in 2000 
 19.9   and subsequent years, the Hennepin county auditor shall certify 
 19.10  the amount calculated in paragraph (a).  
 19.11     (c) The metropolitan council may annually certify to the 
 19.12  Ramsey county auditor the amount calculated under paragraph (b), 
 19.13  or a lesser amount, to be used to provide funds for the cleanup 
 19.14  of polluted lands in the metropolitan area. 
 19.15     (d) The amount certified under paragraph (c) shall be 
 19.16  certified annually by the Ramsey county auditor to the 
 19.17  administrative auditor as an addition to the metropolitan 
 19.18  council's areawide levy under subdivision 5. 
 19.19     Sec. 8.  [MOSQUITO CONTROL COMMISSION EMPLOYEES.] 
 19.20     Nothing in this act shall be construed as abrogating or 
 19.21  modifying any rights enjoyed by the employees of the commission 
 19.22  under the terms of a collective bargaining agreement that is in 
 19.23  effect on March 1, 1995. 
 19.24     Sec. 9.  [CITATION.] 
 19.25     This act may be cited as "the metropolitan livable 
 19.26  communities act." 
 19.27     Sec. 10.  [APPLICATION.] 
 19.28     This article applies in the counties of Anoka, Carver, 
 19.29  Dakota, Hennepin, Ramsey, Scott, and Washington. 
 19.30     Sec. 11.  [EFFECTIVE DATES.] 
 19.31     This article is effective the day after final enactment.  
 19.32  Sections 3, 5 and 7 are effective for taxes levied in 1995 
 19.33  payable in 1996 and subsequent years. 
 19.34                             ARTICLE 3
 19.35                              HOUSING 
 19.36     Section 1.  Minnesota Statutes 1994, section 290.01, 
 20.1   subdivision 19b, is amended to read: 
 20.2      Subd. 19b.  [SUBTRACTIONS FROM FEDERAL TAXABLE INCOME.] For 
 20.3   individuals, estates, and trusts, there shall be subtracted from 
 20.4   federal taxable income: 
 20.5      (1) interest income on obligations of any authority, 
 20.6   commission, or instrumentality of the United States to the 
 20.7   extent includable in taxable income for federal income tax 
 20.8   purposes but exempt from state income tax under the laws of the 
 20.9   United States; 
 20.10     (2) if included in federal taxable income, the amount of 
 20.11  any overpayment of income tax to Minnesota or to any other 
 20.12  state, for any previous taxable year, whether the amount is 
 20.13  received as a refund or as a credit to another taxable year's 
 20.14  income tax liability; 
 20.15     (3) the amount paid to others not to exceed $650 for each 
 20.16  dependent in grades kindergarten to 6 and $1,000 for each 
 20.17  dependent in grades 7 to 12, for tuition, textbooks, and 
 20.18  transportation of each dependent in attending an elementary or 
 20.19  secondary school situated in Minnesota, North Dakota, South 
 20.20  Dakota, Iowa, or Wisconsin, wherein a resident of this state may 
 20.21  legally fulfill the state's compulsory attendance laws, which is 
 20.22  not operated for profit, and which adheres to the provisions of 
 20.23  the Civil Rights Act of 1964 and chapter 363.  As used in this 
 20.24  clause, "textbooks" includes books and other instructional 
 20.25  materials and equipment used in elementary and secondary schools 
 20.26  in teaching only those subjects legally and commonly taught in 
 20.27  public elementary and secondary schools in this state.  
 20.28  "Textbooks" does not include instructional books and materials 
 20.29  used in the teaching of religious tenets, doctrines, or worship, 
 20.30  the purpose of which is to instill such tenets, doctrines, or 
 20.31  worship, nor does it include books or materials for, or 
 20.32  transportation to, extracurricular activities including sporting 
 20.33  events, musical or dramatic events, speech activities, driver's 
 20.34  education, or similar programs.  In order to qualify for the 
 20.35  subtraction under this clause the taxpayer must elect to itemize 
 20.36  deductions under section 63(e) of the Internal Revenue Code; 
 21.1      (4) to the extent included in federal taxable income, 
 21.2   distributions from a qualified governmental pension plan, an 
 21.3   individual retirement account, simplified employee pension, or 
 21.4   qualified plan covering a self-employed person that represent a 
 21.5   return of contributions that were included in Minnesota gross 
 21.6   income in the taxable year for which the contributions were made 
 21.7   but were deducted or were not included in the computation of 
 21.8   federal adjusted gross income.  The distribution shall be 
 21.9   allocated first to return of contributions until the 
 21.10  contributions included in Minnesota gross income have been 
 21.11  exhausted.  This subtraction applies only to contributions made 
 21.12  in a taxable year prior to 1985; 
 21.13     (5) income as provided under section 290.0802; 
 21.14     (6) the amount of unrecovered accelerated cost recovery 
 21.15  system deductions allowed under subdivision 19g; 
 21.16     (7) to the extent included in federal adjusted gross 
 21.17  income, income realized on disposition of property exempt from 
 21.18  tax under section 290.491; and 
 21.19     (8) to the extent not deducted in determining federal 
 21.20  taxable income, the amount paid for health insurance of 
 21.21  self-employed individuals as determined under section 162(l) of 
 21.22  the Internal Revenue Code, except that the 25 percent limit does 
 21.23  not apply.  If the taxpayer deducted insurance payments under 
 21.24  section 213 of the Internal Revenue Code of 1986, the 
 21.25  subtraction under this clause must be reduced by the lesser of: 
 21.26     (i) the total itemized deductions allowed under section 
 21.27  63(d) of the Internal Revenue Code, less state, local, and 
 21.28  foreign income taxes deductible under section 164 of the 
 21.29  Internal Revenue Code and the standard deduction under section 
 21.30  63(c) of the Internal Revenue Code; or 
 21.31     (ii) the lesser of (A) the amount of insurance qualifying 
 21.32  as "medical care" under section 213(d) of the Internal Revenue 
 21.33  Code to the extent not deducted under section 162(1) of the 
 21.34  Internal Revenue Code or excluded from income or (B) the total 
 21.35  amount deductible for medical care under section 213(a); and 
 21.36     (9) the exemption amount allowed under section 2, 
 22.1   subdivision 3. 
 22.2      Sec. 2.  [URBAN HOMESTEADING PROGRAM.] 
 22.3      Subdivision 1.  [URBAN REVITALIZATION AND STABILIZATION 
 22.4   ZONES.] By September 1, 1995, the metropolitan council shall 
 22.5   designate one or more urban revitalization and stabilization 
 22.6   zones in the metropolitan area, as defined in section 473.121, 
 22.7   subdivision 2.  The designated zones must contain no more than 
 22.8   1,000 single family homes in total.  In designating urban 
 22.9   revitalization and stabilization zones, the council shall choose 
 22.10  areas that are in transition toward blight and poverty.  The 
 22.11  council shall use indicators that evidence increasing 
 22.12  neighborhood distress such as declining residential property 
 22.13  values, declining resident incomes, declining rates of 
 22.14  owner-occupancy, and other indicators of blight and poverty in 
 22.15  determining which areas are to be urban revitalization and 
 22.16  stabilization zones. 
 22.17     Subd. 2.  [PROGRAM ELIGIBILITY.] Any person buying and 
 22.18  occupying a home within the boundaries of an urban 
 22.19  revitalization and stabilization zone after September 1, 1995, 
 22.20  is eligible to participate in the urban homesteading program.  
 22.21  An owner may participate by filing an application with the 
 22.22  county assessor of the county in which the homestead is 
 22.23  located.  The assessor shall provide written verification that 
 22.24  the homestead is within an urban revitalization and 
 22.25  stabilization zone to the owner in a form and manner prescribed 
 22.26  by the commissioner of revenue.  The form shall include the date 
 22.27  on which the owner purchased the property, the date on which the 
 22.28  owner applied for the urban homesteading program, and shall 
 22.29  indicate if the property has been found to be not in compliance 
 22.30  with applicable building codes, and the dates of inspections.  
 22.31  An owner shall become ineligible for the program if any of the 
 22.32  following occurs: 
 22.33     (1) the property is sold or otherwise transferred to 
 22.34  another party; 
 22.35     (2) the property is found not to be in compliance with 
 22.36  applicable building codes, provided that at least three years 
 23.1   have passed since the owner filed for participation in the 
 23.2   program; 
 23.3      (3) the owner ceases to occupy the property; or 
 23.4      (4) any of the owners of the property are convicted of 
 23.5   violating Minnesota Statutes, sections 152.021 to 152.025 or 
 23.6   152.0261, or committing any other felony-level violation of 
 23.7   Minnesota law. 
 23.8      The county assessor shall annually provide to the county 
 23.9   attorney a list of the owners of property within the county who 
 23.10  are currently in the program.  The county attorney shall notify 
 23.11  the assessor if any of the owners participating in the program 
 23.12  have been convicted of violating a felony-level crime after the 
 23.13  date on which they began participation in the program.  The 
 23.14  assessor shall notify the owners, by first class mail, of the 
 23.15  loss of their eligibility of participation in the program for 
 23.16  the following year and any subsequent years. 
 23.17     Subd. 3.  [TAX BENEFITS.] Individuals participating in the 
 23.18  urban homesteading program shall receive an exemption from 
 23.19  Minnesota taxable income for each full tax year during which 
 23.20  eligibility under subdivision 2 is mandated, beginning in the 
 23.21  first full tax year following the filing of an application with 
 23.22  the county assessor.  Eligibility may continue for a maximum of 
 23.23  five years, provided that the individual does not become 
 23.24  ineligible for the program under subdivision 2.  The maximum 
 23.25  exemption amount shall equal $15,000 for married individuals 
 23.26  filing joint returns and surviving spouses as defined in section 
 23.27  2(a) of the Internal Revenue Code, $10,000 for unmarried 
 23.28  individuals, and $12,500 for unmarried individuals qualifying as 
 23.29  a head of household as defined in section 2(b) of the Internal 
 23.30  Revenue Code.  The maximum exemption amount shall be reduced by 
 23.31  two percent of the maximum exemption amount for each $1,000 of 
 23.32  adjusted gross income or part thereof above an income 
 23.33  threshold.  For purposes of this subdivision, adjusted gross 
 23.34  income means federal adjusted gross income as defined in section 
 23.35  62 of the Internal Revenue Code.  The income threshold shall 
 23.36  equal $60,000 for married individuals filing joint returns and 
 24.1   surviving spouses, $40,000 for unmarried individuals, and 
 24.2   $50,000 for unmarried individuals qualifying as a head of 
 24.3   household. 
 24.4      Subd. 4.  [EXPIRATION.] Applications for the urban 
 24.5   homesteading program shall not be accepted after July 1, 1997. 
 24.6      Subd. 5.  [INFORMATION TO POTENTIAL BUYERS.] The 
 24.7   metropolitan council shall market and promote the urban 
 24.8   homestead program to the extent feasible, but such efforts shall 
 24.9   at least include informing area realtors or realtor associations 
 24.10  about the program. 
 24.11     Subd. 6.  [REPORTS.] The metropolitan council shall make an 
 24.12  initial report to the legislature by January 1, 1998, on the 
 24.13  urban homesteading program.  The initial report shall contain 
 24.14  information on designation of zones, participation rates, and 
 24.15  current and projected future costs of providing state income tax 
 24.16  exemptions to program participants. 
 24.17     The metropolitan council shall make full reports to the 
 24.18  legislature by January 1, 2000, and January 1, 2003, on the 
 24.19  urban homesteading program.  The full reports shall include 
 24.20  information on those subjects covered by the initial report, as 
 24.21  well as information on neighborhood impacts, property values, 
 24.22  resident incomes, rates of owner-occupancy, and other indicators 
 24.23  of poverty and blight. 
 24.24     Sec. 3.  [APPLICATION.] 
 24.25     Section 2 applies in the counties of Anoka, Carver, Dakota, 
 24.26  Hennepin, Ramsey, Scott and Washington.  
 24.27     Sec. 4.  [EFFECTIVE DATE.] 
 24.28     Section 1 is effective for tax years beginning after 
 24.29  December 31, 1995.