1.1                          A bill for an act 
  1.2             relating to the organization and operation of state 
  1.3             government; appropriating money for economic 
  1.4             development and certain agencies of state government; 
  1.5             amending Minnesota Statutes 1994, sections 116J.873, 
  1.6             as amended; 138.664, by adding a subdivision; 216B.16, 
  1.7             by adding a subdivision; 298.22, by adding a 
  1.8             subdivision; 469.056, subdivision 2; and 469.303; 
  1.9             Minnesota Statutes 1995 Supplement, sections 79.561, 
  1.10            subdivision 3; and 473.252; Laws 1980, chapter 595, 
  1.11            section 3, as amended; Laws 1994, chapter 573, 
  1.12            sections 1, subdivisions 6 and 7; 4; 5, subdivisions 1 
  1.13            and 2; Laws 1995, chapter 231, article 1, section 33; 
  1.14            repealing Minnesota Statutes 1994, sections 138.662, 
  1.15            subdivision 5; and 268.9783, subdivision 8; Laws 1988, 
  1.16            chapter 684, article 1, section 23. 
  1.17  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.18  Section 1.  [ECONOMIC DEVELOPMENT APPROPRIATIONS.] 
  1.19     The sums in the columns marked "APPROPRIATIONS" are 
  1.20  appropriated from the general fund, or another named fund, to 
  1.21  the agencies and for the purposes specified in this act, to be 
  1.22  available for the fiscal years indicated for each purpose. 
  1.23                          SUMMARY BY FUND
  1.24                                           1996          1997
  1.25  General                             $  1,454,000   $ 11,216,000
  1.26  Petroleum 
  1.27  Tank Cleanup                        $     47,000   $     93,000
  1.28  Special  
  1.29  Compensation                        $    -0-       $  2,800,000
  1.30  TOTAL                               $  1,501,000   $ 14,109,000
  1.31                                             APPROPRIATIONS 
  1.32                                         Available for the Year 
  1.33                                             Ending June 30 
  1.34                                            1996         1997 
  2.1   Sec. 2.  DEPARTMENT OF TRADE AND
  2.2   ECONOMIC DEVELOPMENT                $    -0-       $  3,100,000
  2.3   The amounts that may be spent from this 
  2.4   appropriation for each purpose are as 
  2.5   follows: 
  2.6   (a) Minnesota Investment Fund 
  2.7         1996           1997
  2.8          -0-          3,000,000 
  2.9   $3,000,000 is appropriated for fiscal 
  2.10  year 1997 for the purposes of Minnesota 
  2.11  Statutes, section 116J.873.  $250,000 
  2.12  of this appropriation is for a grant to 
  2.13  the Morrison county rural development 
  2.14  finance authority established under 
  2.15  Laws 1982, chapter 437.  The authority 
  2.16  shall use the grant only for capital 
  2.17  improvements to a paper and wood 
  2.18  products manufacturer in the county 
  2.19  primarily for the purposes of facility 
  2.20  upgrading and expansion of the 
  2.21  manufacturer's capability to utilize 
  2.22  recycled wastepaper as a fiber source.  
  2.23  Minnesota Statutes, section 116J.991, 
  2.24  applies to the grant.  The commissioner 
  2.25  shall make the grant only if the 
  2.26  commissioner determines that the grant 
  2.27  will be matched by at least $500,000 
  2.28  from other sources. 
  2.29  (b) $100,000 in fiscal year 1997 is for 
  2.30  the Minnesota film board.  This 
  2.31  appropriation is available only upon 
  2.32  receipt by the board of $1 in matching 
  2.33  contribution of money or in-kind from 
  2.34  nonstate resources for every $3 
  2.35  provided by this appropriation. 
  2.36  Sec. 3.  MINNESOTA TECHNOLOGY, 
  2.37  INC.                                     -0-             90,000
  2.38  $90,000 in fiscal year 1997 is for a 
  2.39  grant to the Minnesota Cold Weather 
  2.40  Resource Center.  
  2.41  This appropriation must not be used for 
  2.42  the purpose of a study of cold weather 
  2.43  research needs and opportunities in the 
  2.44  state, but may only be expended for 
  2.45  staffing and operation of the center. 
  2.46  Sec. 4.  DEPARTMENT OF ECONOMIC
  2.47  SECURITY                                 810,000      6,890,000
  2.48  The amounts that may be spent from this 
  2.49  appropriation for each purpose are as 
  2.50  follows: 
  2.51  (a) Minnesota Youth Program      
  2.52         -0-          6,000,000 
  2.53  $6,000,000 is appropriated for fiscal 
  2.54  year 1997 for summer youth employment 
  2.55  programs.  
  3.1   (b) Minnesota Workforce Center System  
  3.2          -0-            500,000 
  3.3   $500,000 is appropriated for fiscal 
  3.4   year 1997 to leverage federal dollars 
  3.5   in support of the establishment of a 
  3.6   public access computer system to 
  3.7   Minnesota Workforce System services. 
  3.8   (c) Home Energy Assistance 
  3.9          810,000        190,000 
  3.10  (1) $750,000 is available immediately 
  3.11  and until June 30, 1997, for low-income 
  3.12  home energy assistance under the 
  3.13  low-income home energy assistance block 
  3.14  grant, and is to be used and allocated 
  3.15  in the same manner as the federal money 
  3.16  is used and allocated.  
  3.17  (2) $60,000 is available immediately 
  3.18  and until June 30, 1997, for grants for 
  3.19  energy-related repairs to a home's 
  3.20  primary heat source.  
  3.21  (3) $190,000 is for the low-income home 
  3.22  weatherization program. 
  3.23  (d) Employment Support Services 
  3.24         -0-            200,000 
  3.25  $200,000 is appropriated for employment 
  3.26  support services authorized by 
  3.27  Minnesota Statutes, section 268A.13. 
  3.28  Sec. 5.  DEPARTMENT OF
  3.29  COMMERCE                                  47,000         93,000
  3.30  This appropriation is from the 
  3.31  petroleum tank release cleanup fund and 
  3.32  is for legal services.  This 
  3.33  appropriation is added to the 
  3.34  appropriation in Laws 1995, chapter 
  3.35  224, section 7, subdivision 5. 
  3.36  Sec. 6.  DEPARTMENT OF LABOR
  3.37  AND INDUSTRY                               -0-        2,800,000
  3.38  This appropriation is from the special 
  3.39  compensation fund for the Daedalus 
  3.40  imaging systems project.  This 
  3.41  appropriation is added to the 
  3.42  appropriation in Laws 1995, chapter 
  3.43  224, section 12, subdivision 2. 
  3.44  Sec. 7.  MINNESOTA HISTORICAL SOCIETY       174,000     826,000
  3.45  This appropriation is to supplement 
  3.46  salaries of society employees. 
  3.47  Sec. 8.  PUBLIC UTILITIES COMMISSION        470,000     -0-    
  3.48  This appropriation is available 
  3.49  immediately and until June 30, 1998, 
  3.50  for the costs related to the duties of 
  3.51  the commission and team of science 
  3.52  advisors under Laws 1994, chapter 573. 
  4.1   Sec. 9.  HOUSING FINANCE AGENCY             -0-         310,000
  4.2   $310,000 is appropriated for fiscal 
  4.3   year 1997 for transfer to the housing 
  4.4   development fund for the purposes of 
  4.5   the family homeless prevention and 
  4.6   assistance program under Minnesota 
  4.7   Statutes, section 462A.204.  This 
  4.8   appropriation is available until 
  4.9   expended. 
  4.10     Sec. 10.  [UTILITY ASSESSMENT; STRAY VOLTAGE.] 
  4.11     Subdivision 1.  [AUTHORITY.] To provide funding for the 
  4.12  appropriation in section 8 for the costs of the commission and 
  4.13  team of science advisors under Laws 1994, chapter 573, the 
  4.14  public utilities commission and the department of public service 
  4.15  shall assess a total of up to $470,000 under Minnesota Statutes, 
  4.16  section 216B.62, against public and municipal utilities 
  4.17  providing electrical service and cooperative electric 
  4.18  associations.  The assessment must be deposited in the general 
  4.19  fund.  The assessment is not subject to the limits prescribed 
  4.20  under Minnesota Statutes, section 216B.62, subdivision 3.  The 
  4.21  assessment authority under this section is in addition to the 
  4.22  assessment authority contained in Laws 1994, chapter 573, 
  4.23  section 4. 
  4.24     Subd. 2.  [PROPORTIONAL ASSESSMENT; EXPENSES AND 
  4.25  ACTIVITIES.] Each utility or association shall be assessed in 
  4.26  proportion that its gross operating revenues for the sale of 
  4.27  electric service within the state for the last calendar year 
  4.28  bears to the total of those revenues for all public and 
  4.29  municipal utilities and cooperative associations.  
  4.30     Sec. 11.  [ADMINISTRATIVE COSTS; CONTAMINATION CLEAN-UP 
  4.31  GRANTS.] 
  4.32     Up to 1.5 percent of the appropriation made in Laws 1995, 
  4.33  chapter 224, section 2, subdivision 2, for grants under 
  4.34  Minnesota Statutes 1994, sections 116J.551 to 116J.558, may be 
  4.35  expended for costs of the department of trade and economic 
  4.36  development incurred in administering those grants. 
  4.37     Sec. 12.  [GROUND VOLTAGE SCIENCE ADVISORS; IMMUNITY FROM 
  4.38  SUIT, INDEMNIFICATION.] 
  4.39     (a) A member of the team of science advisors charged with 
  5.1   studying, researching, or preparing the report required by Laws 
  5.2   1994, chapter 573, or serving in a liaison capacity on behalf of 
  5.3   the team of science advisors, is not liable for the content of 
  5.4   the preliminary assessment or final report, for any action taken 
  5.5   or project conducted on behalf of researching and preparing the 
  5.6   assessment and report, or for any action taken or consequence 
  5.7   resulting from or arising out of publication and dissemination 
  5.8   of the report.  This section does not provide immunity for 
  5.9   negligence or intentional misconduct of a member or a liaison. 
  5.10     (b) If a person referred to in paragraph (a) becomes a 
  5.11  party to a civil action or other legal or administrative 
  5.12  proceeding by reason of any action referred to in paragraph (a), 
  5.13  despite the intent of paragraph (a) to hold those persons immune 
  5.14  from suit, the state shall indemnify the person for any judgment 
  5.15  and legal or other costs incurred in defense of the suit, unless 
  5.16  the person is found liable for negligent or intentional 
  5.17  misconduct. 
  5.18     Sec. 13.  Laws 1994, chapter 573, section 1, subdivision 6, 
  5.19  is amended to read: 
  5.20     Subd. 6.  [RESEARCH DEADLINE.] The research conducted under 
  5.21  this section and any recommendations by the science advisors to 
  5.22  the commission must be completed and reported or made by June 
  5.23  30, 1996 1998. 
  5.24     Sec. 14.  Laws 1994, chapter 573, section 1, subdivision 7, 
  5.25  is amended to read: 
  5.26     Subd. 7.  [EXPIRATION.] The team of science advisors 
  5.27  expires June 30, 1996 1998. 
  5.28     Sec. 15.  Laws 1994, chapter 573, section 4, is amended to 
  5.29  read: 
  5.30     Sec. 4.  [ASSESSMENT.] 
  5.31     (a) To provide funding for activities required under this 
  5.32  act, the public utilities commission and the department of 
  5.33  public service shall assess a total of up to $548,000 under 
  5.34  Minnesota Statutes, section 216B.62, against public and 
  5.35  municipal utilities providing electrical service and cooperative 
  5.36  electric associations.  The assessment must be deposited in the 
  6.1   general fund.  The assessment is not subject to the limits 
  6.2   prescribed under Minnesota Statutes, section 216B.62, 
  6.3   subdivision 3. 
  6.4      (b) Each utility or association shall be assessed in 
  6.5   proportion that its gross operating revenues for the sale of 
  6.6   electric service within the state for the last calendar year 
  6.7   bears to the total of those revenues for all public and 
  6.8   municipal utilities and cooperative associations.  
  6.9      (c) Paragraphs (a) and (b) expire June 30, 1998.  
  6.10     Sec. 16.  Laws 1994, chapter 573, section 5, subdivision 1, 
  6.11  is amended to read: 
  6.12     Subdivision 1.  [PUBLIC UTILITIES COMMISSION; STUDY COSTS.] 
  6.13  $300,000 is appropriated from the general fund to the public 
  6.14  utilities commission. 
  6.15     $75,000 of this appropriation is for administrative 
  6.16  expenses of the commission under sections 1 and 2. 
  6.17     $225,000 of this appropriation is for expenses of the team 
  6.18  of scientific advisors and the commission liaison. 
  6.19     This appropriation remains available until June 30, 1996 
  6.20  1998. 
  6.21     Sec. 17.  Laws 1994, chapter 573, section 5, subdivision 2, 
  6.22  is amended to read: 
  6.23     Subd. 2.  [PUBLIC UTILITIES COMMISSION; RESEARCH PROJECTS 
  6.24  STUDY COSTS.] $150,000, or so much of this amount as may be 
  6.25  needed, is appropriated from the general fund to the public 
  6.26  utilities commission to initiate research projects in fiscal 
  6.27  year 1995 as recommended by the team of science advisors and 
  6.28  approved by the commission.  Any amount of This appropriation 
  6.29  that remains unencumbered after June 30, 1996, reverts to the 
  6.30  general fund does not cancel but is available until June 30, 
  6.31  1998. 
  6.32     Sec. 18.  Laws 1995, chapter 231, article 1, section 33, is 
  6.33  amended to read 
  6.34     Sec. 33.  [APPROPRIATION.] 
  6.35     $900,000 is appropriated from the special compensation fund 
  6.36  for the biennium ending June 30, 1997, to the department of 
  7.1   commerce for the purposes of rate regulation of commercial 
  7.2   self-insurance groups under Minnesota Statutes, sections 79A.19 
  7.3   to 79A.32, and workers' compensation rate regulation under 
  7.4   Minnesota Statutes, sections 79.50 to 79.561.  The complement of 
  7.5   the department of commerce is increased by 13 positions for the 
  7.6   purposes of rate regulation. 
  7.7      Sec. 19.  Minnesota Statutes 1995 Supplement, section 
  7.8   79.561, subdivision 3, is amended to read: 
  7.9      Subd. 3.  [CONSULTANTS AND COSTS.] The commissioner may 
  7.10  retain consultants, including a consulting actuary or other 
  7.11  experts, that the commissioner determines necessary for purposes 
  7.12  of this chapter.  The salary limit set by section 43A.17 does 
  7.13  not apply to a consulting actuary retained under this 
  7.14  subdivision.  A consulting actuary shall be a fellow in the 
  7.15  casualty actuarial society and shall have demonstrated 
  7.16  experience in workers' compensation insurance ratemaking.  Any 
  7.17  individual not so qualified shall not render an opinion or 
  7.18  testify on actuarial aspects of a filing, including but not 
  7.19  limited to, data quality, loss development, and trending.  The 
  7.20  costs incurred in commissioner may determine the costs necessary 
  7.21  for implementing and conducting a contested case hearing under 
  7.22  subdivision 2, including, but not limited to, retaining any 
  7.23  consulting actuaries and experts, and those costs shall be 
  7.24  reimbursed by the special compensation fund. 
  7.25     Sec. 20.  Minnesota Statutes 1994, section 116J.873, as 
  7.26  amended by Laws 1995, chapter 224, sections 55 and 56, is 
  7.27  amended to read: 
  7.28     116J.873 [ECONOMIC RECOVERY MINNESOTA INVESTMENT FUND 
  7.29  GRANTS.] 
  7.30     Subdivision 1.  [ADMINISTRATION.] Economic recovery 
  7.31  Minnesota investment fund grants shall be made available to 
  7.32  local communities and recognized Indian tribal governments in 
  7.33  accordance with the rules adopted for economic development 
  7.34  grants in the small cities community development block grant 
  7.35  programs, except that all units of general purpose local 
  7.36  government are eligible applicants for economic recovery 
  8.1   Minnesota investment fund grants.  The commissioner of trade and 
  8.2   economic development shall administer the economic 
  8.3   recovery Minnesota investment fund grant program as a part of 
  8.4   the small cities development program.  A city, county, or town 
  8.5   may grant money received under this section to a regional 
  8.6   development commission to provide the local match required for 
  8.7   capitalization of a regional revolving loan fund. 
  8.8      Subd. 2.  [ECONOMIC RECOVERY MINNESOTA INVESTMENT FUND 
  8.9   GRANT DEFINED.] "Economic recovery Minnesota investment fund 
  8.10  grant" means an agreement between the state and an eligible 
  8.11  recipient through which the state provides money to carry out 
  8.12  specified programs, services, or activities designed to create 
  8.13  new employment, maintain existing employment, increase the local 
  8.14  tax base, or otherwise increase economic activity in a community.
  8.15     Subd. 3.  [GRANT EVALUATION.] The commissioner shall 
  8.16  accept, review, and evaluate applications for grants to local 
  8.17  units of government made in accordance with rules adopted for 
  8.18  economic development grants in the small cities development 
  8.19  program.  Projects must be evaluated based on the existence of 
  8.20  the following conditions: 
  8.21     (1) whether assistance is necessary to provide equity to 
  8.22  business owners who do not have the capacity to invest in a 
  8.23  project; 
  8.24     (2) whether there is an inability to secure sufficient 
  8.25  financing from other public or private sources at market 
  8.26  interest rates or on favorable market terms; 
  8.27     (3) whether assistance is necessary to attract out-of-state 
  8.28  businesses or to retain existing business within the state; and 
  8.29     (4) whether there are excessive public infrastructure or 
  8.30  improvement costs beyond the means of the affected community and 
  8.31  private participants in the project. 
  8.32     A grant or loan cannot be made based solely on a finding 
  8.33  that the condition in clause (3) exists.  A finding must be made 
  8.34  that a condition in clause (1), (2), or (4) also exists. 
  8.35     Applications recommended for funding shall be submitted to 
  8.36  the commissioner. 
  9.1      Subd. 4.  [GRANT LIMITS.] An economic recovery A Minnesota 
  9.2   investment fund grant may not be approved for an amount over in 
  9.3   excess of $500,000.  If the amount of the grant is less than 
  9.4   $500,000, the reasons for the reduction shall be given to the 
  9.5   applicant This limit covers all money paid to complete the same 
  9.6   project, whether paid to one or more grant recipients and 
  9.7   whether paid in one or more fiscal years.  The portion of an 
  9.8   economic recovery a Minnesota investment fund grant that exceeds 
  9.9   $100,000 must be repaid to the state when it is repaid to the 
  9.10  local community or recognized Indian tribal government by the 
  9.11  person or entity to which it was loaned by the local community 
  9.12  or Indian tribal government.  Money repaid to the state must be 
  9.13  credited to the general fund.  A grant or loan may not be made 
  9.14  to a person or entity for the operation or expansion of a casino 
  9.15  or a store which is used solely or principally for retail sales. 
  9.16  Persons or entities receiving grants or loans must pay each 
  9.17  employee total compensation, including benefits not mandated by 
  9.18  law, that on an annualized basis is equal to at least 110 
  9.19  percent of the federal poverty level for a family of four. 
  9.20     Subd. 5.  [SPORTS FACILITY.] An economic recovery A 
  9.21  Minnesota investment fund grant or loan cannot be used for a 
  9.22  project related to a sports facility.  For the purpose of this 
  9.23  subdivision, "sports facility" means a building that has a 
  9.24  professional sports team as a principal tenant. 
  9.25     Subd. 6.  [CONTRACTUAL OBLIGATION.] A business receiving 
  9.26  Minnesota investment fund grants must demonstrate why the grant 
  9.27  is necessary for a project and enter into an agreement with the 
  9.28  local grantor.  The agreement, among other things, must obligate 
  9.29  the recipient to pay the minimum compensation set by this 
  9.30  section and meet job creation goals.  A recipient that breaches 
  9.31  the agreement must repay the grant directly to the commissioner. 
  9.32  Repayments under this subdivision must be deposited in the 
  9.33  general fund. 
  9.34     Sec. 21.  Minnesota Statutes 1994, section 138.664, is 
  9.35  amended by adding a subdivision to read: 
  9.36     Subd. 13a.  Burbank Livingston Griggs House; Ramsey county. 
 10.1      Sec. 22.  Minnesota Statutes 1994, section 216B.16, is 
 10.2   amended by adding a subdivision to read: 
 10.3      Subd. 16.  [LOW-INCOME ENERGY ASSISTANCE.] (a) A public 
 10.4   utility with more than 400,000 residential natural gas service 
 10.5   customers in Minnesota shall implement a pilot program to 
 10.6   provide energy assistance to low-income customers.  For purposes 
 10.7   of this subdivision, "low-income customer" means a customer who 
 10.8   is eligible for or who is receiving an assistance grant from the 
 10.9   federal low-income home energy assistance program, as determined 
 10.10  by the local agencies that administer the federal program.  The 
 10.11  commission shall allow a utility that implements a pilot program 
 10.12  under this subdivision to recover the costs of the program, less 
 10.13  any reduction in the utility's bad debt costs from the level 
 10.14  determined in the utility's most recent general rate case.  The 
 10.15  resulting net costs shall be recovered from all customer classes 
 10.16  through one or more of the following options: 
 10.17     (1) use of any excess natural gas cost recovery revenues 
 10.18  under subdivision 7; 
 10.19     (2) use of any interim rate revenues which exceed final 
 10.20  approved rates in a general rate case filed pursuant to this 
 10.21  section; or 
 10.22     (3) through the public utility's next general rate case 
 10.23  filing pursuant to this section. 
 10.24     (b) The amount of public utility funding in each year of 
 10.25  the pilot program shall be the difference between the amount of 
 10.26  federal low-income home energy assistance funding received by 
 10.27  the public utility's customers in the 1994-1995 heating season 
 10.28  and the annual amount of federal funding received by those 
 10.29  customers in each subsequent heating season, with this 
 10.30  difference reduced by any state low-income assistance funding 
 10.31  received by the public utility's customers.  In no event shall 
 10.32  the amount of the public utility's funding for low-income energy 
 10.33  assistance exceed one percent of the public utility's gross 
 10.34  operating revenues from utility service provided in the state 
 10.35  for the most recent calendar year. 
 10.36     (c) The public utility shall file its plan for the pilot 
 11.1   program with the commission not later than June 1, 1996, and the 
 11.2   commission shall determine whether the program meets the 
 11.3   requirements of this subdivision within 60 days of that filing.  
 11.4   The pilot program shall provide energy assistance for low-income 
 11.5   customers' bills rendered on or after October 1, 1995. 
 11.6      (d) This subdivision expires October 1, 1998. 
 11.7      Sec. 23.  Minnesota Statutes 1994, section 298.22, is 
 11.8   amended by adding a subdivision to read: 
 11.9      Subd. 6.  [EQUITY PARTICIPATION.] The board may acquire an 
 11.10  equity interest in any project for which it provides funding. 
 11.11     Sec. 24.  Minnesota Statutes 1994, section 469.056, 
 11.12  subdivision 2, is amended to read: 
 11.13     Subd. 2.  [CONTRACTS.] A port authority may contract to 
 11.14  erect, repair, maintain or operate docks, warehouses, terminals, 
 11.15  elevators, or other structures on or in connection with property 
 11.16  it owns or controls.  The authority may contract or arrange with 
 11.17  the federal government, or any of its departments, with persons, 
 11.18  public corporations, the state, or any of its political 
 11.19  subdivisions, commissions, or agencies, for separate or joint 
 11.20  action, on any matter related to using the authority's powers or 
 11.21  doing its duties.  The authority may contract to purchase and 
 11.22  sell real and personal property.  An obligation or expense must 
 11.23  not be incurred unless existing appropriations together with the 
 11.24  reasonably expected revenue of the port authority from other 
 11.25  sources are sufficient to discharge the obligation or pay the 
 11.26  expense when due.  The state and its municipal subdivisions are 
 11.27  not liable on the obligations.  Notwithstanding the provisions 
 11.28  of section 16A.695, for leases or management contracts entered 
 11.29  into with respect to property acquired with the proceeds of 
 11.30  state general obligation bonds before May 17, 1994, (1) a seaway 
 11.31  port authority may meet its obligations and expenses of 
 11.32  operating by retaining revenues received under the leases or 
 11.33  management contracts and is not required to pay lease or 
 11.34  management contract revenues to the commissioner of finance; and 
 11.35  (2) the lease or management contract entered into by a seaway 
 11.36  port authority must not be canceled or terminated as a result of 
 12.1   changes or termination in the governmental program of a seaway 
 12.2   port authority unless compensation is paid as provided by law. 
 12.3      Sec. 25.  Minnesota Statutes 1994, section 469.303, is 
 12.4   amended to read: 
 12.5      469.303 [ELIGIBILITY REQUIREMENTS.] 
 12.6      An area within the city is eligible for designation as an 
 12.7   enterprise zone if the area is (1) designated as a proposed 
 12.8   federal empowerment zone or enterprise community by the city in 
 12.9   an application to the United States Department of Housing and 
 12.10  Urban Development under Public Law Number 103-66, provided the 
 12.11  city can demonstrate that it can meet the area meets the maximum 
 12.12  zone population standard under the federal empowerment zone 
 12.13  program for cities with a population under 500,000; provided, 
 12.14  that the area may exceed the population standard if the excess 
 12.15  population is from census tracts eligible for inclusion in a 
 12.16  federal empowerment zone or enterprise community, or (2) an area 
 12.17  within a city of the second class that is designated as an 
 12.18  economically depressed area by the United States Department of 
 12.19  Commerce. 
 12.20     Sec. 26.  Minnesota Statutes 1995 Supplement, section 
 12.21  473.252, is amended to read: 
 12.22     473.252 [TAX BASE REVITALIZATION ACCOUNT.] 
 12.23     Subdivision 1.  [DEFINITION.] For the purposes of this 
 12.24  section, "municipality" means a statutory or home rule charter 
 12.25  city or town participating in the local housing incentives 
 12.26  program under section 473.254, or a county in the metropolitan 
 12.27  area.  
 12.28     Subd. 1a.  [DEVELOPMENT AUTHORITY.] For the purpose of this 
 12.29  section, "development authority" means a statutory or home rule 
 12.30  charter city, housing and redevelopment authority, economic 
 12.31  development authority, or a port authority. 
 12.32     Subd. 2.  [SOURCES OF FUNDS.] The council shall credit to 
 12.33  the tax base revitalization account within the fund the amount, 
 12.34  if any, provided for under section 473.167, subdivision 3a, 
 12.35  paragraph (b), and the amount, if any, distributed to the 
 12.36  council under section 473F.08, subdivision 3b. 
 13.1      Subd. 3.  [DISTRIBUTION OF FUNDS.] (a) The council must use 
 13.2   the funds in the account to make grants to municipalities or 
 13.3   development authorities for the cleanup of polluted land in the 
 13.4   metropolitan area.  A grant to a metropolitan county or a 
 13.5   development authority must be used for a project in a 
 13.6   participating municipality.  The council shall prescribe and 
 13.7   provide the grant application form to municipalities.  The 
 13.8   council must consider the probability of funding from other 
 13.9   sources when making grants under this section. 
 13.10     (b)(1) The legislature expects that applications for grants 
 13.11  will exceed the available funds and the council will be able to 
 13.12  provide grants to only some of the applicant municipalities.  If 
 13.13  applications for grants for qualified sites exceed the available 
 13.14  funds, the council shall make grants that provide the highest 
 13.15  return in public benefits for the public costs incurred, that 
 13.16  encourage commercial and industrial development that will lead 
 13.17  to the preservation or growth of living-wage jobs and that 
 13.18  enhance the tax base of the recipient municipality. 
 13.19     (2) In making grants, the council shall establish regular 
 13.20  application deadlines in which grants will be awarded from the 
 13.21  available money in the account.  If the council provides for 
 13.22  application cycles of less than six-month intervals, the council 
 13.23  must reserve at least 40 percent of the receipts of the account 
 13.24  for a year for application deadlines that occur in the second 
 13.25  half of the year.  If the applications for grants exceed the 
 13.26  available funds for an application cycle, no more than one-half 
 13.27  of the funds may be granted to projects in a statutory or home 
 13.28  rule charter city and no more than three-quarters of the funds 
 13.29  may be granted to projects located in cities of the first class. 
 13.30     (c) A municipality may use the grant to provide a portion 
 13.31  of the local match requirement for project costs that qualify 
 13.32  for a grant under sections 116J.551 to 116J.557. 
 13.33     Sec. 27.  Laws 1980, chapter 595, section 3, as amended by 
 13.34  Laws 1985, chapter 194, section 29; Laws 1988, chapter 572, 2; 
 13.35  and Laws 1988, chapter 594, sections 1 to 4, is amended by 
 13.36  adding a subdivision to read: 
 14.1      Subd. 13.  [ECONOMIC DEVELOPMENT.] When the agency 
 14.2   exercises its powers for industrial development or to establish 
 14.3   industrial development districts for purposes under Minnesota 
 14.4   Statutes, sections 469.048 to 469.068, the term "industrial," 
 14.5   when used in relation to industrial development purposes, 
 14.6   includes "economic" and "economic development." 
 14.7      Sec. 28.  [SETTLEMENT AGREEMENT; EXTENDED EMPLOYMENT 
 14.8   SERVICE PROVIDERS.] 
 14.9      The purpose of this section is to implement a settlement 
 14.10  agreement between the department of economic security, 
 14.11  rehabilitation services branch, and certain providers of 
 14.12  extended employment program services.  Implementation of the 
 14.13  agreement will resolve disputed audits for fiscal years 1991, 
 14.14  1992, and 1993, those audits having recently been completed by 
 14.15  the department of economic security pursuant to a schedule set 
 14.16  out in Laws 1995, chapter 224.  Settlement of the fiscal years 
 14.17  1991 to 1993 audits, in conjunction with implementation of an 
 14.18  audit procedure to expedite the completion of audits for fiscal 
 14.19  years 1994 and 1995 as provided for in this section, will 
 14.20  resolve all disputed audits, and necessary reconciliations, by 
 14.21  June 30, 1997. 
 14.22     Extended employment service providers must secure an 
 14.23  independent outside audit for fiscal years 1994 and 1995 using 
 14.24  audit standards provided by the rehabilitation services branch 
 14.25  of the department of economic security and submit the reports of 
 14.26  the audits to the rehabilitation services branch by May 1, 1996. 
 14.27     Ninety days after the receipt of all the audit reports for 
 14.28  fiscal years 1994 and 1995, the rehabilitation services branch 
 14.29  shall issue a notice of reconciliation to each extended 
 14.30  employment service provider for each of the fiscal years. 
 14.31     Any funds paid to or among extended employment service 
 14.32  providers as a result of fiscal years 1994 and 1995 
 14.33  reconciliation and completion of appeals for 1991, 1992, and 
 14.34  1993, must take place by June 30, 1997, or at the completion of 
 14.35  all appeals, whichever is later. 
 14.36     The commissioner of economic security must include in the 
 15.1   department's budget request for the 1997 to 1999 biennium sums 
 15.2   sufficient to implement the settlement agreement including any 
 15.3   required interest payments.  The state must pay simple interest 
 15.4   at the rate of six percent per annum on payments not paid when 
 15.5   required by the settlement agreement for the time the payment is 
 15.6   late. 
 15.7      Sec. 29.  [INSTRUCTION TO REVISOR.] 
 15.8      The revisor of statutes is instructed to change the term 
 15.9   "economic recovery" when referring to the program created in 
 15.10  Minnesota Statutes 1994, section 116J.873, to "Minnesota 
 15.11  investment fund" in the 1996 edition of Minnesota Statutes and 
 15.12  Minnesota Rules. 
 15.13     Sec. 30.  [REPEALER.] 
 15.14     Minnesota Statutes 1994, sections 138.662, subdivision 5; 
 15.15  and 268.9783, subdivision 8, are repealed. 
 15.16     Laws 1988, chapter 684, article 1, section 23, is repealed. 
 15.17     Sec. 31.  [EFFECTIVE DATES.] 
 15.18     Sections 10 to 19; 22; 26; 28; and all provisions of this 
 15.19  act making appropriations immediately available or for fiscal 
 15.20  year 1996, are effective the day following final enactment. 
 15.21  Section 27 is effective upon compliance by the governing body of 
 15.22  the city of Minneapolis with Minnesota Statutes, section 
 15.23  645.021, subdivision 3.