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             establishing and modifying certain programs; providing 
  1.6             for regulation of certain activities and practices; 
  1.7             standardizing certain licensing service fees; 
  1.8             establishing and modifying certain fees; modifying 
  1.9             housing programs; establishing a task force; providing 
  1.10            for a manufactured home park to be a conditional use; 
  1.11            requiring reports; amending Minnesota Statutes 1996, 
  1.12            sections 38.02, subdivisions 1, 2, and 3; 44A.01, 
  1.13            subdivision 2; 60A.075, by adding a subdivision; 
  1.14            60A.23, subdivision 8; 60A.71, by adding a 
  1.15            subdivision; 60K.06, subdivision 2; 65B.48, 
  1.16            subdivision 3; 72B.04, subdivision 10; 79.253, 
  1.17            subdivision 1; 79.255, by adding a subdivision; 
  1.18            79.361, subdivision 1; 79.371, by adding a 
  1.19            subdivision; 82.21, subdivision 1; 82B.09, subdivision 
  1.20            1; 115A.908, subdivision 2; 115B.03, subdivision 5; 
  1.21            115C.021, by adding a subdivision; 115C.03, 
  1.22            subdivision 9; 115C.08, subdivision 4; 115C.09, 
  1.23            subdivision 3, and by adding a subdivision; 115C.13; 
  1.24            116J.551; 116J.552, subdivision 4; 116J.553, 
  1.25            subdivision 2; 116J.554, subdivision 1; 116J.615, 
  1.26            subdivision 1; 116L.04, subdivision 1; 116O.05, by 
  1.27            adding a subdivision; 116O.122, subdivision 1; 138.91, 
  1.28            by adding a subdivision; 155A.045, subdivision 1; 
  1.29            176.181, subdivision 2a; 268.022, subdivision 2; 
  1.30            268.362, subdivision 2; 268.38, subdivision 7; 268.63; 
  1.31            268.672, subdivision 6, and by adding subdivisions; 
  1.32            268.673, subdivisions 3, 4a, and 5; 268.6751, 
  1.33            subdivision 1; 268.677, subdivision 1; 268.681; 
  1.34            268.917; 270.97; 298.22, by adding a subdivision; 
  1.35            326.86, subdivision 1; 394.25, by adding a 
  1.36            subdivision; 446A.04, subdivision 5; 446A.081, 
  1.37            subdivisions 1, 4, and 9; 446A.12, subdivision 1; 
  1.38            462.357, by adding a subdivision; 462A.05, 
  1.39            subdivisions 14d, 30, 39, and by adding a subdivision; 
  1.40            462A.13; 462A.201, subdivision 2; 462A.205; 462A.206, 
  1.41            subdivisions 2 and 4; 462A.207, subdivisions 1, 2, 3, 
  1.42            4, and 6; 462A.21, subdivision 12a; 469.303; and 
  1.43            469.305, subdivision 1; proposing coding for new law 
  1.44            in Minnesota Statutes, chapters 45; 79; 116J; 268; 
  1.45            366; 462A; and 469; repealing Minnesota Statutes 1996, 
  1.46            sections 115A.908, subdivision 3; 268.39; 268.672, 
  2.1             subdivision 4; 268.673, subdivision 6; 268.676; 
  2.2             268.677, subdivisions 2 and 3; 268.678; 268.679, 
  2.3             subdivision 3; 462A.05, subdivision 20; 462A.206, 
  2.4             subdivision 5; and 462A.21, subdivisions 4k, 12, and 
  2.5             14. 
  2.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.7                              ARTICLE 1
  2.8                            APPROPRIATIONS
  2.9   Section 1.  [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 
  2.10     The sums shown in the columns marked "APPROPRIATIONS" are 
  2.11  appropriated from the general fund, or another named fund, to 
  2.12  the agencies and for the purposes specified in this act, to be 
  2.13  available for the fiscal years indicated for each purpose.  The 
  2.14  figures "1998" and "1999," where used in this act, mean that the 
  2.15  appropriation or appropriations listed under them are available 
  2.16  for the year ending June 30, 1998, or June 30, 1999, 
  2.17  respectively.  The term "first year" means the fiscal year 
  2.18  ending June 30, 1998, and "second year" means the fiscal year 
  2.19  ending June 30, 1999. 
  2.20                          SUMMARY BY FUND
  2.21                            1998          1999           TOTAL
  2.22  General              $178,150,000   $145,914,000   $324,064,000
  2.23  Petroleum Tank
  2.24  Cleanup                   957,000        969,000      1,926,000
  2.25  Trunk Highway             706,000        723,000      1,429,000 
  2.26  Workers' 
  2.27  Compensation           22,875,000     23,105,000     45,860,000
  2.28  Special Revenue         3,133,000      3,139,000      6,272,000
  2.29  Taconite Environmental
  2.30  Protection              1,410,000
  2.31  TOTAL                $207,231,000   $173,850,000   $381,081,000
  2.32                                             APPROPRIATIONS 
  2.33                                         Available for the Year 
  2.34                                             Ending June 30 
  2.35                                            1998         1999 
  2.36  Sec. 2.  TRADE AND ECONOMIC DEVELOPMENT 
  2.37  Subdivision 1.  Total       
  2.38  Appropriation                          55,470,000    31,498,000
  2.39                Summary by Fund
  2.40  General              54,764,000    30,775,000
  2.41  Trunk Highway           706,000       723,000 
  3.1   The amounts that may be spent from this 
  3.2   appropriation for each program are 
  3.3   specified in the following subdivisions.
  3.4   Subd. 2.  Business and Community 
  3.5   Development
  3.6       39,854,000     16,367,000
  3.7   $6,017,000 each year is for Minnesota 
  3.8   investment fund grants. 
  3.9   $500,000 each year is for grants to 
  3.10  Advantage Minnesota, Inc.  The funds 
  3.11  are available only if matched on at 
  3.12  least a dollar-for-dollar basis from 
  3.13  other sources.  The commissioner may 
  3.14  release the funds only upon: 
  3.15  (1) certification that matching funds 
  3.16  from each participating organization 
  3.17  are available; and 
  3.18  (2) review and approval by the 
  3.19  commissioner of the proposed operations 
  3.20  plan of Advantage Minnesota, Inc. for 
  3.21  the biennium. 
  3.22  $3,440,000 each year is for the job 
  3.23  skills partnership program.  
  3.24  $10,000,000 the first year is for 
  3.25  predevelopment and job creation grants 
  3.26  under Minnesota Statutes, section 
  3.27  116J.564.  This appropriation is 
  3.28  available until June 30, 1999.  This is 
  3.29  a one-time appropriation and may not be 
  3.30  included in the budget base for the 
  3.31  biennium ending June 30, 2001. 
  3.32  All money in the contaminated site 
  3.33  cleanup and development account in the 
  3.34  general fund on the effective date of 
  3.35  this act, is appropriated to the 
  3.36  commissioner on that date for the 
  3.37  contamination cleanup program in fiscal 
  3.38  year 1998.  Any balance of this 
  3.39  appropriation not spent by June 30, 
  3.40  1998, cancels to the general fund on 
  3.41  June 30, 1998. 
  3.42  $250,000 the first year is for a grant 
  3.43  from the department of trade and 
  3.44  economic development to the Software 
  3.45  Technology Center to broaden 
  3.46  industry-related educational and 
  3.47  technological services.  This 
  3.48  appropriation is available upon 
  3.49  documentation of a dollar-for-dollar 
  3.50  match from other sources since the 
  3.51  inception of the Software Technology 
  3.52  Center.  This is a one-time 
  3.53  appropriation and must not be included 
  3.54  in the budget base for the biennium 
  3.55  ending June 30, 2001. 
  3.56  $100,000 the first year is for a 
  3.57  one-time grant to the Duluth Technology 
  3.58  Center.  This appropriation is 
  3.59  available until June 30, 1999. 
  4.1   $25,000 the first year is for a 
  4.2   one-time grant to the city of New 
  4.3   London for improvements to the Little 
  4.4   Theatre.  This appropriation is 
  4.5   available when the city matches the 
  4.6   appropriation with $25,000 from 
  4.7   nonstate sources. 
  4.8   $1,000,000 the first year is for one or 
  4.9   more grants to the Minnesota Futures 
  4.10  Fund administered by the Minneapolis 
  4.11  Foundation.  The Minneapolis Foundation 
  4.12  shall use these grants to provide 
  4.13  technical assistance to nonprofit 
  4.14  organizations to assist them in 
  4.15  redesigning services and organizational 
  4.16  structures in response to changes in 
  4.17  federal and state welfare policy.  The 
  4.18  commissioner shall make the grants in 
  4.19  amounts necessary to match nonpublic 
  4.20  contributions to the fund on a 
  4.21  dollar-for-dollar basis.  This 
  4.22  appropriation is available until June 
  4.23  30, 1999.  This is a one-time 
  4.24  appropriation and may not be included 
  4.25  in the budget base for the biennium 
  4.26  ending June 30, 2001. 
  4.27  $35,000 the first year is for a 
  4.28  one-time appropriation to the Fairfax 
  4.29  economic development authority for roof 
  4.30  replacement.  This appropriation is 
  4.31  available until June 30, 1999. 
  4.32  $2,000,000 the first year is for a 
  4.33  one-time grant to the city of Brooklyn 
  4.34  Center to redevelop the Brookdale 
  4.35  regional center and provide 
  4.36  opportunities for economic development 
  4.37  at or near the center.  The grant must 
  4.38  be used to assist the city in 
  4.39  constructing a series of storm water 
  4.40  retention ponds that will facilitate 
  4.41  the redevelopment and economic 
  4.42  development of the center and nearby 
  4.43  property.  The grant must be on terms 
  4.44  and conditions determined by the 
  4.45  commissioner.  The grant must be 
  4.46  matched by city resources that equal at 
  4.47  least 25 percent of the grant. 
  4.48  $750,000 the first year is for the 
  4.49  taconite mining grant program under 
  4.50  Minnesota Statutes, section 116J.992.  
  4.51  This appropriation is available until 
  4.52  June 30, 1999.  This is a one-time 
  4.53  appropriation and may not be included 
  4.54  in the budget base for the biennium 
  4.55  ending June 30, 2001. 
  4.56  $4,000,000 the first year is for a 
  4.57  grant to develop a direct reduction 
  4.58  iron-processing facility in Minnesota.  
  4.59  This appropriation is available until 
  4.60  June 30, 1999.  This is a one-time 
  4.61  appropriation and may not be included 
  4.62  in the budget base for the biennium 
  4.63  ending June 30, 2001. 
  4.64  $500,000 the first year is for 
  4.65  technical assistance under Minnesota 
  5.1   Statutes, section 116J.875.  This 
  5.2   appropriation is available until June 
  5.3   30, 1999. 
  5.4   $25,000 the first year is for a 
  5.5   one-time grant to the city of St. Paul 
  5.6   to improve, beautify, and enhance 
  5.7   marked trunk highway No. 5 from 
  5.8   Minneapolis-St.Paul international 
  5.9   airport to interstate highway No. 
  5.10  35-E.  Enhancements may include, among 
  5.11  other things, landscaping, historical 
  5.12  lighting, and signing. 
  5.13  $100,000 the first year is for a 
  5.14  one-time grant to the city of Grey 
  5.15  Eagle for construction of a wastewater 
  5.16  treatment plant. 
  5.17  $125,000 the first year is for a 
  5.18  one-time demonstration project grant to 
  5.19  the city of Newport for the city to 
  5.20  conduct a study of the economic impact 
  5.21  on the city resulting from regional 
  5.22  infrastructure improvement projects.  
  5.23  The city may retain consultants and 
  5.24  enter into contracts it considers 
  5.25  desirable to conduct the study.  The 
  5.26  elements of the study must include an 
  5.27  alternate economic use study, a fiscal 
  5.28  impact study, an infrastructure impact 
  5.29  study, and a traffic impact study.  The 
  5.30  grant is available only to the extent 
  5.31  that the city provides a 
  5.32  dollar-for-dollar match. 
  5.33  $100,000 each year is for one-time 
  5.34  grants to the city of New Brighton, as 
  5.35  project coordinator and fiscal agent of 
  5.36  the seven-city coalition, for the 
  5.37  multicommunity business retention and 
  5.38  market expansion project and related 
  5.39  planning efforts linking geographical 
  5.40  information systems, contaminated land 
  5.41  remediation, land use planning, 
  5.42  transportation corridor study, 
  5.43  integration of existing housing stock, 
  5.44  subregional transit and reverse commute 
  5.45  coordination, employment densities, job 
  5.46  training and welfare reform placement 
  5.47  coordination, and commercial and 
  5.48  industrial development.  The coalition 
  5.49  shall share all results and written 
  5.50  reports with the department of trade 
  5.51  and economic development. 
  5.52  $100,000 the first year is for a 
  5.53  one-time grant to Mankato State 
  5.54  University for creating a nonprofit 
  5.55  rural policy and development center. 
  5.56  $250,000 each year is for grants to 
  5.57  independent school district No. 625, 
  5.58  St. Paul, for customized, job-specific 
  5.59  English language training for employers 
  5.60  in the metropolitan area.  Training 
  5.61  shall be designed to meet the needs of 
  5.62  a particular employer and its current 
  5.63  and prospective employees.  The 
  5.64  training is to be provided through the 
  5.65  Hubbs center workforce education 
  6.1   program.  The program must coordinate 
  6.2   with the St. Paul port authority, the 
  6.3   St. Paul workforce center, and other 
  6.4   employment-related agencies to identify 
  6.5   businesses with English as a second 
  6.6   language needs.  Employers must provide 
  6.7   a program match either in-kind or in 
  6.8   cash. 
  6.9   $500,000 each year is for grants to the 
  6.10  St. Paul rehabilitation center for its 
  6.11  current programs, including those 
  6.12  related to developing job-seeking 
  6.13  skills and workplace orientation, 
  6.14  intensive job development, functional 
  6.15  work English, and on-site job coaching. 
  6.16  $100,000 each year is for grants to 
  6.17  county agricultural societies under 
  6.18  Minnesota Statutes, section 38A.02. 
  6.19  $100,000 the first year is for a 
  6.20  one-time grant to the Morrison county 
  6.21  rural development finance authority to 
  6.22  apply to the unpaid balance remaining 
  6.23  on a loan to provide the nonstate funds 
  6.24  to match the appropriation to the 
  6.25  commissioner under Laws 1996, chapter 
  6.26  452, section 2, paragraph (c). 
  6.27  $150,000 each year is for grants to 
  6.28  create and operate community 
  6.29  development corporations under 
  6.30  Minnesota Statutes, section 116J.982, 
  6.31  in Hennepin and Ramsey counties, that 
  6.32  target Asian-Pacific Minnesotans. 
  6.33  Subd. 3.  Minnesota Trade Office 
  6.34       2,577,000      2,461,000
  6.35  $250,000 the first year and $100,000 
  6.36  the second year is for a multifaceted 
  6.37  program to develop trade with China.  
  6.38  This is a one-time appropriation and 
  6.39  must not be included in the budget base 
  6.40  for the biennium ending June 30, 2001. 
  6.41  $125,000 each year is for one-time 
  6.42  grants to the greater metropolitan area 
  6.43  foreign trade zone commission for the 
  6.44  purpose of promoting foreign trade 
  6.45  zones in Minnesota. 
  6.46  The department shall act as the lead 
  6.47  agency in developing a plan for a 
  6.48  coordinated effort to promote Minnesota 
  6.49  internationally.  The commissioner may 
  6.50  appoint an advisory committee and may 
  6.51  seek federal and private funding to 
  6.52  develop and implement the plan. 
  6.53  Subd. 4.  Tourism 
  6.54       8,660,000      8,205,000
  6.55                Summary by Fund
  6.56  General               7,954,000     7,482,000
  6.57  Trunk Highway           706,000       723,000
  7.1   To develop maximum private sector 
  7.2   involvement in tourism, $2,500,000 the 
  7.3   first year and $2,500,00 the second 
  7.4   year of the amounts appropriated for 
  7.5   marketing activities are contingent on 
  7.6   receipt of an equal contribution from 
  7.7   nonstate sources that have been 
  7.8   certified by the commissioner.  Up to 
  7.9   one-half of the match may be given in 
  7.10  in-kind contributions.  This 
  7.11  appropriation may not be spent until 
  7.12  the money is matched. 
  7.13  In order to maximize marketing grant 
  7.14  benefits, the commissioner must give 
  7.15  priority for joint venture marketing 
  7.16  grants to organizations with year-round 
  7.17  sustained tourism activities.  For 
  7.18  programs and projects submitted, the 
  7.19  commissioner must give priority to 
  7.20  those that encompass two or more areas 
  7.21  or that attract nonresident travelers 
  7.22  to the state. 
  7.23  If an appropriation for either year for 
  7.24  grants is not sufficient, the 
  7.25  appropriation for the other year is 
  7.26  available for it. 
  7.27  The commissioner may use grant dollars 
  7.28  or the value of in-kind services to 
  7.29  provide the state contribution for the 
  7.30  partnership program. 
  7.31  Any unexpended money from general fund 
  7.32  appropriations made under this 
  7.33  subdivision does not cancel but must be 
  7.34  placed in a special advertising account 
  7.35  for use by the office of tourism to 
  7.36  purchase additional media. 
  7.37  $329,000 each year is for the Minnesota 
  7.38  film board.  This appropriation is 
  7.39  available only upon receipt by the 
  7.40  board of $1 in matching contributions 
  7.41  of money or in-kind from nonstate 
  7.42  sources for every $3 provided by this 
  7.43  appropriation. 
  7.44  $500,000 each year is for grants to the 
  7.45  Minnesota film board for a film 
  7.46  production jobs fund to stimulate 
  7.47  feature film production in Minnesota.  
  7.48  This appropriation is to reimburse film 
  7.49  producers for two to five percent of 
  7.50  documented wages which they paid to 
  7.51  Minnesotans for film production after 
  7.52  January 1, 1997. 
  7.53  $500,000 the first year is for a 
  7.54  one-time grant to the Leroy Neiman 
  7.55  museum of art.  This appropriation is 
  7.56  available on documentation of a 
  7.57  dollar-for-dollar match from other 
  7.58  sources.  This amount may not be added 
  7.59  to the agency's budget base. 
  7.60  $35,000 the first year is for a 
  7.61  one-time grant to the Upper Minnesota 
  7.62  Valley River regional development 
  7.63  commission for development of design 
  8.1   specifications and architectural plans 
  8.2   for a regional visitors center, to be 
  8.3   built on the upper segment of the 
  8.4   Minnesota river corridor within the 
  8.5   designated scenic byway area and in 
  8.6   conjunction with the development of the 
  8.7   Minnesota river corridor trail.  This 
  8.8   appropriation is available until June 
  8.9   30, 1999. 
  8.10  The office of tourism shall expand its 
  8.11  efforts in the 1998-1999 biennium to 
  8.12  market and promote tourism within 
  8.13  Minnesota that emphasizes multicultural 
  8.14  areas and neighborhoods and those areas 
  8.15  and neighborhoods with a high 
  8.16  concentration of recent immigrants. 
  8.17  Subd. 5.  Administration 
  8.18       2,971,000      3,028,000
  8.19  Subd. 6.  Information and Analysis
  8.20       1,408,000      1,437,000
  8.21  Sec. 3.  MINNESOTA TECHNOLOGY, INC.    8,087,000      8,087,000
  8.22  $6,105,000 each year is for transfer 
  8.23  from the general fund to the Minnesota 
  8.24  Technology, Inc. fund. 
  8.25  $75,000 each year is for grants to 
  8.26  Minnesota Inventors Congress. 
  8.27  $794,000 each year is for grants to 
  8.28  Minnesota Project Innovation.  
  8.29  $950,000 each year is for grants to the 
  8.30  Natural Resources Research Institute.  
  8.31  The natural resources institute shall 
  8.32  by February 1, 1998, develop and submit 
  8.33  to the legislature a business plan that 
  8.34  includes (1) a plan for maximizing 
  8.35  patent rights and royalties in which 
  8.36  the institute has a financial interest, 
  8.37  and (2) a timeline for achieving 
  8.38  self-sufficiency. 
  8.39  $88,000 each year is for grants to 
  8.40  Minnesota Council for Quality. 
  8.41  $75,000 each year is for grants to 
  8.42  Minnesota Cold Weather Research Center. 
  8.43  Sec. 4.  WORLD TRADE CENTER CORP.        217,000 
  8.44  $217,000 the first year is to retire 
  8.45  the debt of the Minnesota World Trade 
  8.46  Center.  This is a one-time 
  8.47  appropriation and may not be included 
  8.48  in the budget base for the biennium 
  8.49  ending June 30, 2001.  In addition, the 
  8.50  Minnesota trade office may transfer 
  8.51  $50,000 each year to the World Trade 
  8.52  Center for services to agencies, 
  8.53  nonprofit and public organizations. 
  8.54  Sec. 5.  ECONOMIC SECURITY  
  8.55  Subdivision 1.  Total 
  9.1   Appropriation                         43,500,000     37,822,000
  9.2                 Summary by Fund
  9.3   General              40,712,000    35,033,000
  9.4   Special Revenue       2,788,000     2,789,000
  9.5   Subd. 2.  Rehabilitation Services
  9.6       19,310,000     19,815,000
  9.7   $1,750,000 each year is for centers for 
  9.8   independent living. 
  9.9   $323,000 the first year and $823,000 
  9.10  the second year are for employment 
  9.11  support services authorized under 
  9.12  Minnesota Statutes, section 268A.13.  
  9.13  $200,000 each year is for a grant to 
  9.14  the Minnesota employment center for 
  9.15  deaf and hard-of-hearing people. 
  9.16  Subd. 3.  State Services for the Blind 
  9.17       3,735,000      3,816,000
  9.18  This appropriation may be supplemented 
  9.19  by funds provided by the Friends of the 
  9.20  Communication Center, for support of 
  9.21  Services for the Blind's Communication 
  9.22  Center, which serves all blind and 
  9.23  visually handicapped Minnesotans.  The 
  9.24  commissioner shall report to the 
  9.25  legislature on a biennial basis the 
  9.26  funds provided by the Friends of the 
  9.27  Communication Center. 
  9.28  A person may not serve more than a 
  9.29  total of six years as a member of the 
  9.30  rehabilitation advisory council for the 
  9.31  blind or its predecessor, the council 
  9.32  for the blind.  Service prior to the 
  9.33  effective date of this section is 
  9.34  included in the six-year limit, except 
  9.35  that a person currently serving on the 
  9.36  rehabilitation advisory council for the 
  9.37  blind may serve out the person's 
  9.38  current term and serve one additional 
  9.39  term. 
  9.40  Subd. 4.  Workforce Preparation 
  9.41      18,855,000     12,791,000
  9.42                Summary by Fund
  9.43  General              16,067,000    10,002,000
  9.44  Special Revenue       2,788,000     2,789,000
  9.45  $775,000 each year is for job training 
  9.46  programs under Minnesota Statutes, 
  9.47  sections 268.60 to 268.64.  Of this 
  9.48  amount, $250,000 each year is for 
  9.49  grants to the Ramsey county 
  9.50  opportunities industrialization 
  9.51  center.  The grants are to be used to 
  9.52  (1) offer prevocational training 
  9.53  programs and specific vocational 
 10.1   training programs involving intensive 
 10.2   English as a second language in 
 10.3   instruction, and (2) train for and 
 10.4   locate entry level jobs including, 
 10.5   without limitation, clerical, building 
 10.6   maintenance, manufacturing, home 
 10.7   maintenance and repair, and certified 
 10.8   nursing assistance.  This appropriation 
 10.9   is from the workforce investment fund. 
 10.10  $2,013,000 the first year and 
 10.11  $2,014,000 the second year is for 
 10.12  displaced homemaker programs under 
 10.13  Minnesota Statutes, section 268.96.  
 10.14  This appropriation is from the 
 10.15  workforce investment fund. 
 10.16  $1,050,000 each year is for youth 
 10.17  intervention programs under Minnesota 
 10.18  Statutes, section 268.30.  Funding from 
 10.19  this appropriation may be used to 
 10.20  expand existing programs to serve unmet 
 10.21  needs and to create new programs in 
 10.22  underserved areas.  This appropriation 
 10.23  is available until spent. 
 10.24  $5,000,000 each year is to supplement 
 10.25  the activities of the Job Training 
 10.26  Partnership Act Title II-A program as 
 10.27  described in United States Code, title 
 10.28  29, sections 1501 to 1792.  The 
 10.29  commissioner may use up to five percent 
 10.30  of this amount of state operations.  
 10.31  The balance of the amount is for 
 10.32  services to temporary assistance for 
 10.33  needy families (TANF) recipients, and 
 10.34  of this balance 60 percent is for 
 10.35  training and education to fill a 
 10.36  specific need of an employer in a 
 10.37  program modeled after and coordinated 
 10.38  with the Minnesota Jobs Skills 
 10.39  Partnership.  This is a one-time 
 10.40  appropriation and may not be included 
 10.41  in the budget base for the biennium 
 10.42  ending June 30, 2001. 
 10.43  $75,000 the first year is for the PLATO 
 10.44  education partnership pilot program.  
 10.45  If the commissioner favorably evaluates 
 10.46  the demonstration implementation of 
 10.47  PLATO in Fairmont and Owatonna, the 
 10.48  commissioner shall select two other 
 10.49  communities in which PLATO will be 
 10.50  implemented.  Of this amount, not more 
 10.51  than $10 is for the demonstration 
 10.52  implementations.  This appropriation is 
 10.53  available until June 30, 1999.  This is 
 10.54  a one-time appropriation and may not be 
 10.55  included in the agency's budget base 
 10.56  for the biennium ending June 30, 2001. 
 10.57  $400,000 each year is for the learn to 
 10.58  earn summer youth employment program 
 10.59  established under Laws 1995, chapter 
 10.60  224, sections 5 and 39.  Agencies in 
 10.61  first class cities must be given 
 10.62  priority for these grants.  Grants 
 10.63  under this appropriation must be 
 10.64  matched by nonstate sources.  No single 
 10.65  agency may receive more than 60 percent 
 10.66  of the total appropriation for any year.
 11.1   Grants made under this section are 
 11.2   available until spent.  The 
 11.3   appropriation for fiscal year 1998 may 
 11.4   be spent in fiscal year 1997.  This is 
 11.5   a one-time appropriation and may not be 
 11.6   included in the budget base for the 
 11.7   biennium ending June 30, 2001. 
 11.8   Of the money appropriated for the 
 11.9   Minnesota youth program for the first 
 11.10  year, $750,000 is immediately 
 11.11  available.  Any remaining balance of 
 11.12  the immediately available money is 
 11.13  available for the year in which it is 
 11.14  appropriated.  In addition to the base 
 11.15  appropriation, $4,000,000 the first 
 11.16  year is for the Minnesota youth 
 11.17  program.  This additional appropriation 
 11.18  may not be included in the budget base 
 11.19  for the biennium ending June 30, 2001. 
 11.20  If the appropriation in either year is 
 11.21  insufficient, the appropriation for the 
 11.22  other year is available. 
 11.23  $1,000,000 the first year is for 
 11.24  one-time grants to first class cities, 
 11.25  and nonmetropolitan counties that 
 11.26  contain a city of 19,000 or more, that 
 11.27  demonstrate a need for creating and 
 11.28  expanding curfew enforcement, truancy 
 11.29  prevention, and gang and prostitution 
 11.30  intervention and prevention, and 
 11.31  pretrial diversion programs.  A program 
 11.32  funded from this appropriation must 
 11.33  have clearly established neighborhood, 
 11.34  community, and family outcome measures 
 11.35  of success, and must report to the 
 11.36  commissioner on achievement of these 
 11.37  outcomes on or before June 30, 1999.  
 11.38  This appropriation is available until 
 11.39  June 30, 1999. 
 11.40  $700,000 each year is for the 
 11.41  Youthbuild program under Minnesota 
 11.42  Statutes, section 268.361 to 268.366.  
 11.43  This appropriation is available until 
 11.44  June 30, 1999. 
 11.45  $250,000 the first year is for a 
 11.46  one-time grant to Ramsey county to 
 11.47  expand the sister-to-sister mentoring, 
 11.48  support, and training network program 
 11.49  countywide.  The county must match 50 
 11.50  percent of this appropriation.  This 
 11.51  appropriation is in addition to money 
 11.52  appropriated under Minnesota Statutes, 
 11.53  sections 256J.62 and 256J.76. 
 11.54  Subd. 5.  Workforce Exchange 
 11.55       1,600,000      1,400,000
 11.56  $1,600,000 the first year and 
 11.57  $1,400,000 the second year is 
 11.58  appropriated to leverage federal 
 11.59  dollars in support of the 
 11.60  implementation of the Minnesota 
 11.61  Workforce Center System.  The 
 11.62  department shall report to the 
 11.63  Minnesota office of technology its 
 11.64  plans to coordinate workforce center 
 12.1   development with the Minnesota career 
 12.2   education planning system and other 
 12.3   electronic job banks.  This is a 
 12.4   one-time appropriation and may not be 
 12.5   included in the budget base for the 
 12.6   biennium ending June 30, 2001. 
 12.7   Sec. 6.  COMMERCE 
 12.8   Subdivision 1.  Total 
 12.9   Appropriation                         16,004,000     16,367,000
 12.10                Summary by Fund
 12.11  General              14,240,000    14,572,000
 12.12  Petro Cleanup           957,000       969,000 
 12.13  Workers' Compensation   462,000       476,000
 12.14  Special Revenue         345,000       350,000 
 12.15  The amounts that may be spent from this 
 12.16  appropriation for each program are 
 12.17  specified in the following subdivisions.
 12.18  Subd. 2.  Financial Examinations 
 12.19       3,802,000      3,883,000
 12.20  Subd. 3.  Registration and Insurance 
 12.21       4,479,000      4,590,000
 12.22                Summary by Fund
 12.23  General               4,017,000     4,114,000
 12.24  Workers' Compensation   462,000       476,000 
 12.25  Subd. 4.  Enforcement and Licensing 
 12.26       3,945,000      4,031,000
 12.27                Summary by Fund
 12.28  General               3,600,000     3,681,000
 12.29  Special Revenue         345,000       350,000
 12.30  $345,000 the first year and $350,000 
 12.31  the second year is from the real estate 
 12.32  education, research, and recovery 
 12.33  account in the special revenue fund for 
 12.34  the purpose of Minnesota Statutes, 
 12.35  section 82.34, subdivision 6.  If the 
 12.36  appropriation from the special revenue 
 12.37  fund for either year is insufficient, 
 12.38  the appropriation for the other year is 
 12.39  available for it. 
 12.40  Subd. 5.  Petroleum Tank Release 
 12.41  Cleanup Board 
 12.42         957,000        969,000
 12.43  This appropriation is from the 
 12.44  petroleum tank release cleanup fund. 
 12.45  Subd. 6.  Administrative Services 
 13.1        2,821,000      2,894,000 
 13.2   Sec. 7.  BOARD OF ACCOUNTANCY            572,000        587,000
 13.3   Sec. 8.  BOARD OF ARCHITECTURE,
 13.4   ENGINEERING, LAND SURVEYING, 
 13.5   LANDSCAPE ARCHITECTURE, AND 
 13.6   INTERIOR DESIGN                          684,000        700,000 
 13.7   Sec. 9.  BOARD OF BARBER   
 13.8   EXAMINERS                                136,000        140,000
 13.9   Sec. 10.  BOARD OF BOXING                 79,000         82,000
 13.10  Sec. 11.  LABOR AND INDUSTRY 
 13.11  Subd. 1.  Total             
 13.12  Appropriation                         24,890,000     25,143,000
 13.13                Summary by Fund
 13.14  General               3,941,000     4,012,000
 13.15  Workers'     
 13.16  Compensation         20,949,000    21,131,000
 13.17  The amounts that may be spent from this 
 13.18  appropriation for each program are 
 13.19  specified in the following subdivisions.
 13.20  Subd. 2.  Workers' Compensation
 13.21      11,932,000     12,135,000
 13.22  This appropriation is from the workers' 
 13.23  compensation fund. 
 13.24  $100,000 each year is for grants to the 
 13.25  Vinland Center for rehabilitation 
 13.26  service. 
 13.27  Subd. 3.  Workplace Services 
 13.28       6,393,000      6,713,000
 13.29                Summary by Fund
 13.30  General               2,875,000     2,931,000
 13.31  Workers'
 13.32  Compensation          3,518,000     3,782,000
 13.33  $204,000 each year is for labor 
 13.34  education and advancement program 
 13.35  grants. 
 13.36  Subd. 4.  General Support 
 13.37       6,565,000      6,295,000
 13.38                Summary by Fund
 13.39  General               1,066,000     1,081,000
 13.40  Workers'     
 13.41  Compensation          5,499,000     5,214,000
 13.42  Subd. 5.  Daedalus Project
 13.43  $2,500,000 appropriated in Laws 1995, 
 13.44  chapter 224, section 12, subdivision 2, 
 14.1   from the workers' compensation fund for 
 14.2   the Daedalus imaging project does not 
 14.3   cancel on June 30, 1997, but is 
 14.4   available until June 30, 1999. 
 14.5   Sec. 12.  BUREAU OF MEDIATION SERVICES 
 14.6   Subdivision 1.  Total
 14.7   Appropriation                          2,061,000      2,074,000
 14.8   The amounts that may be spent from this 
 14.9   appropriation for each program are 
 14.10  specified in the following subdivisions.
 14.11  Subd. 2.  Mediation Services 
 14.12       1,646,000      1,659,000
 14.13  Subd. 3.  Labor Management Cooperation Grants
 14.14         302,000        302,000
 14.15  $302,000 each year is for grants to 
 14.16  area labor-management committees.  Any 
 14.17  unencumbered balance remaining at the 
 14.18  end of the first year does not cancel 
 14.19  but is available for the second year. 
 14.20  Subd. 4.  Office of Dispute Resolution
 14.21         113,000        113,000
 14.22  Sec. 13.  WORKERS' COMPENSATION
 14.23  COURT OF APPEALS                       1,464,000      1,498,000
 14.24  This appropriation is from the workers' 
 14.25  compensation fund. 
 14.26  Sec. 14.  LABOR INTERPRETIVE 
 14.27  CENTER                                   207,000        214,000
 14.28  Sec. 15.  PUBLIC UTILITIES  
 14.29  COMMISSION                             3,291,000      3,365,000
 14.30  The commission shall assess the amount 
 14.31  appropriated in section 26 in addition 
 14.32  to its assessments to public utilities 
 14.33  in fiscal year 1998 under Minnesota 
 14.34  Statutes, section 216B.62, subdivision 
 14.35  3. 
 14.36  Sec. 16.  DEPARTMENT OF PUBLIC SERVICE 
 14.37  Subdivision 1.  Total       
 14.38  Appropriation                          9,008,000      9,116,000
 14.39  The amounts that may be spent from this 
 14.40  appropriation for each program are 
 14.41  specified in the following subdivisions.
 14.42  Subd. 2.  Telecommunications
 14.43         785,000        803,000
 14.44  Subd. 3.  Weights and Measures 
 14.45       3,076,000      3,070,000
 14.46  Subd. 4.  Information and Operations 
 14.47  Management 
 15.1        1,501,000      1,532,000
 15.2   Subd. 5.  Energy 
 15.3        3,646,000      3,711,000
 15.4   $588,000 each year is for transfer to 
 15.5   the energy and conservation account 
 15.6   established in Minnesota Statutes, 
 15.7   section 216B.241, subdivision 2a, for 
 15.8   programs administered by the 
 15.9   commissioner of economic security to 
 15.10  improve the energy efficiency of 
 15.11  residential oil-fired heating plants in 
 15.12  low-income households and, when 
 15.13  necessary, to provide weatherization 
 15.14  services to the homes. 
 15.15  Sec. 17.  MINNESOTA HISTORICAL 
 15.16  SOCIETY 
 15.17  Subdivision 1.  Total       
 15.18  Appropriation                         24,594,000     21,680,000
 15.19  The amounts that may be spent from this 
 15.20  appropriation for each program are 
 15.21  specified in the following subdivisions.
 15.22  Subd. 2.  Education and     
 15.23  Outreach                              11,917,000     12,232,000
 15.24  $8,414,000 the first year and 
 15.25  $8,678,000 the second year is for 
 15.26  historic places and outreach. 
 15.27  $3,174,000 the first year and 
 15.28  $3,225,000 the second year is for 
 15.29  history center building services and 
 15.30  debt service. 
 15.31  $479,000 each year is for the 
 15.32  grant-in-aid programs for county and 
 15.33  local historical societies.  The 
 15.34  Minnesota historical society shall set 
 15.35  program guidelines and criteria, and 
 15.36  shall require a dollar-for-dollar match 
 15.37  for these grants.  Of this amount, 
 15.38  $150,000 each year is for activities 
 15.39  associated with the susquicentennial 
 15.40  and millennium celebrations.  Funding 
 15.41  for these activities is one-time and 
 15.42  may not be included in the budget base 
 15.43  for the biennium ending June 30, 2001. 
 15.44  Subd. 3.  Preservation and Access
 15.45       8,661,000      8,828,000
 15.46  $6,173,000 the first year and 
 15.47  $6,229,000 the second year is for 
 15.48  collection services. 
 15.49  $2,488,000 the first year and 
 15.50  $2,529,000 the second year is for 
 15.51  history center building services and 
 15.52  debt service. 
 15.53  Subd. 4.  Information Program 
 15.54  Delivery 
 15.55       3,095,000         97,000
 16.1   $3,000,000 in the first year is for 
 16.2   technology improvements that will 
 16.3   expand core capacity and improve 
 16.4   service and program delivery.  This 
 16.5   appropriation is available until June 
 16.6   30, 1999. 
 16.7   Subd. 5.  Fiscal Agent                   921,000        523,000
 16.8   (a) Sibley House Association 
 16.9           88,000         88,000
 16.10  This appropriation is available for 
 16.11  operation and maintenance of the Sibley 
 16.12  House and related buildings on the Old 
 16.13  Mendota state historic site operated by 
 16.14  the Sibley House Association.  
 16.15  (b) Minnesota International Center 
 16.16          50,000         50,000
 16.17  (c) Minnesota Air National   
 16.18  Guard Museum 
 16.19          19,000 
 16.20  (d) Institute for Learning and
 16.21  Teaching - Project 120
 16.22         110,000        110,000 
 16.23  (e) Minnesota Military Museum
 16.24          29,000        
 16.25  (f) Farmamerica
 16.26         200,000        200,000 
 16.27  Notwithstanding any other law, this 
 16.28  appropriation may be used for 
 16.29  operations. 
 16.30  (g) Bemidji Historical Museum
 16.31          25,000
 16.32  This appropriation is for a one-time 
 16.33  grant to the city of Bemidji to pay up 
 16.34  to one-half of the total costs, 
 16.35  including acquisition, design, other 
 16.36  preliminary work, and construction 
 16.37  costs, for purchase of an abandoned 
 16.38  historic railroad depot in the city and 
 16.39  its conversion to a historical museum 
 16.40  and facility for the Beltrami county 
 16.41  historical society. 
 16.42  (h) Winona County Historical Society
 16.43          75,000
 16.44  For a one-time grant for upgrade of 
 16.45  technology. 
 16.46  (i) Humphrey Museum
 16.47          50,000
 17.1   For a one-time grant for planning, 
 17.2   design, and construction drawings for 
 17.3   the Hubert H. Humphrey museum to be 
 17.4   located in Waverly. 
 17.5   (j) Grimm Farmhouse
 17.6           75,000
 17.7   For a one-time grant to Hennepin county 
 17.8   for the design and stabilization of the 
 17.9   Wendelin Grimm farmhouse.  This 
 17.10  appropriation is available until June 
 17.11  30, 1999.  This appropriation must be 
 17.12  matched by an equal amount from 
 17.13  nonstate sources. 
 17.14  (k) Perpich Memorial
 17.15         100,000
 17.16  For a one-time grant for planning, 
 17.17  design, and construction of a Rudy 
 17.18  Perpich Memorial.  This appropriation 
 17.19  is available until June 30, 1999. 
 17.20  (l) Citizenship Programs
 17.21          75,000         75,000
 17.22  For a grant to the Minnesota center for 
 17.23  community legal education for 
 17.24  citizenship programs in Minnesota 
 17.25  schools.  Of this amount, (1) $30,000 
 17.26  is for Project Citizen, a program to 
 17.27  educate middle school students to 
 17.28  identify, study, and influence 
 17.29  decisions on public policy issues, (2) 
 17.30  $25,000 is for We the People, a program 
 17.31  to promote civic awareness and 
 17.32  responsibility among elementary and 
 17.33  secondary students, and (3) $20,000 is 
 17.34  for the Minnesota youth summit on 
 17.35  violence prevention, a program to build 
 17.36  citizenship skills among middle and 
 17.37  high school students by engaging them 
 17.38  in the lawmaking process. 
 17.39  (m) Fishing Museum
 17.40          25,000 
 17.41  For work, in conjunction with the 
 17.42  commissioners of natural resources and 
 17.43  trade and economic development, on a 
 17.44  feasibility study for a museum housing 
 17.45  fishing-related artifacts, equipment, 
 17.46  and memorabilia.  The director of the 
 17.47  Minnesota Historical Society must 
 17.48  present study recommendations to the 
 17.49  chairs of the appropriate legislative 
 17.50  finance committees and divisions by 
 17.51  January 15, 1998.  This is a one-time 
 17.52  appropriation and may not be included 
 17.53  in the budget base for the biennium 
 17.54  ending June 30, 2001. 
 17.55  (n) Balances Forward
 17.56  Any unencumbered balance remaining in 
 17.57  this subdivision the first year does 
 18.1   not cancel but is available for the 
 18.2   second year of the biennium. 
 18.3   Sec. 18.  MINNESOTA HUMANITIES 
 18.4   COMMISSION                               886,000        886,000
 18.5   Any unencumbered balance remaining in 
 18.6   this section the first year does not 
 18.7   cancel and is available for the second 
 18.8   year. 
 18.9   Sec. 19.  BOARD OF THE ARTS        
 18.10  Subdivision 1.  Total
 18.11  Appropriation                         13,018,000     13,036,000
 18.12  Any unencumbered balance remaining in 
 18.13  this section the first year does not 
 18.14  cancel but is available for the second 
 18.15  year of the biennium. 
 18.16  Subd. 2.  Operations and Services
 18.17         988,000      1,006,000
 18.18  Subd. 3.  Grants Program
 18.19       8,518,000      8,518,000
 18.20  $50,000 each year is for grants to 
 18.21  individual artists of color to create 
 18.22  new works in collaboration with 
 18.23  nonprofit arts and community 
 18.24  organizations.  Special emphasis must 
 18.25  be made to reach artists of color who 
 18.26  are recent immigrants. 
 18.27  Subd. 4.  Regional Arts
 18.28  Councils
 18.29       3,512,000      3,512,000
 18.30  Sec. 20.  MINNESOTA MUNICIPAL
 18.31  BOARD                                    307,000        315,000
 18.32  Sec. 21.  COUNCIL ON BLACK
 18.33  MINNESOTANS                              321,000        251,000
 18.34  $7,500 each year is for expenses 
 18.35  associated with the Dr. Martin Luther 
 18.36  King Day activities. 
 18.37  $75,000 the first year is for planning 
 18.38  of an African Resource Center, a 
 18.39  clearinghouse for information and 
 18.40  referral services for recent immigrants 
 18.41  from Africa.  This is a one-time 
 18.42  appropriation and may not be included 
 18.43  in the agency's budget base for the 
 18.44  biennium ending June 30, 2001.  This 
 18.45  appropriation is available until June 
 18.46  30, 1999.  To the extent that this 
 18.47  appropriation exceeds the amount needed 
 18.48  for planning the center, the balance 
 18.49  may be used for operation of the center.
 18.50  Sec. 22.  COUNCIL ON 
 18.51  CHICANO-LATINO AFFAIRS                   265,000        270,000
 18.52  Sec. 23.  COUNCIL ON
 18.53  ASIAN-PACIFIC MINNESOTANS                222,000        219,000
 19.1   Sec. 24.  INDIAN AFFAIRS
 19.2   COUNCIL                                  488,000        500,000
 19.3   Sec. 25.  IRON RANGE RESOURCES
 19.4   AND REHABILITATION BOARD               1,410,000               
 19.5   This appropriation is from the taconite 
 19.6   environmental protection fund.  This 
 19.7   appropriation is available until June 
 19.8   30, 1999.  The board shall spend this 
 19.9   appropriation for the following 
 19.10  one-time grants: 
 19.11  (a) City of Big Fork
 19.12            75,000
 19.13  For new well construction and 
 19.14  infrastructure for a housing park. 
 19.15  (b) Greenway Joint Recreation Board
 19.16            35,000
 19.17  For electrical system upgrade, Zamboni 
 19.18  room addition, roof replacement, and 
 19.19  other repairs and improvements to the 
 19.20  board's ice arena. 
 19.21  (c) Town of Lone Pine
 19.22            10,000
 19.23  For construction of a baseball field. 
 19.24  (d) City of Nashwauk
 19.25            40,000
 19.26  For construction of water and sewer 
 19.27  lines on Roberts Street. 
 19.28  (e) City of Marble
 19.29            40,000
 19.30  For construction of a water line on 
 19.31  Chernevet Avenue. 
 19.32  (f) City of Eveleth
 19.33           100,000
 19.34  For improvements to the community 
 19.35  hospital's dialysis unit. 
 19.36  (g) City of Aurora
 19.37           100,000
 19.38  For capital improvements to the White 
 19.39  community hospital. 
 19.40  (h) City of Virginia
 19.41           380,000
 19.42  For relocation of the Virginia 
 19.43  rehabilitation center. 
 20.1   (i) City of Buhl
 20.2            180,000
 20.3   For handicapped access improvements to 
 20.4   Martin Hugh high school. 
 20.5   (j) City of Ely
 20.6            200,000
 20.7   For construction of infrastructure in 
 20.8   the city's industrial park. 
 20.9   (k) Chisholm-Hibbing Airport Authority
 20.10           250,000
 20.11  For construction of infrastructure in 
 20.12  the airport industrial park. 
 20.13  Sec. 26.  LEGISLATURE                     50,000               
 20.14  This appropriation is from the general 
 20.15  fund is to be added to any other 
 20.16  appropriation made in the 1997 
 20.17  legislative session to the 
 20.18  legislature.  This appropriation is for 
 20.19  the office of the legislative auditor 
 20.20  for a study and program evaluation of 
 20.21  the public utilities commission.  The 
 20.22  study shall include, among other 
 20.23  things, (1) state functions relating to 
 20.24  public utility regulation assigned to 
 20.25  the commission, department of public 
 20.26  service, and office of the attorney 
 20.27  general, and methods of increasing 
 20.28  efficiency and avoiding unnecessary 
 20.29  duplication of effort in carrying out 
 20.30  these functions, and (2) the future 
 20.31  role of the commission in public 
 20.32  utility regulation and public service 
 20.33  during a time of increasing 
 20.34  deregulation of utilities.  The 
 20.35  legislative auditor shall present an 
 20.36  interim report to the legislature on 
 20.37  the study by January 15, 1998, and 
 20.38  present a final report to the 
 20.39  legislature on the study by February 1, 
 20.40  1999.  This appropriation is available 
 20.41  until June 30, 1999. 
 20.42     Sec. 27.  [FILM PRODUCTIONS JOBS PROGRAM.] 
 20.43     The film production jobs program is created.  The program 
 20.44  shall be operated by the Minnesota film board with 
 20.45  administrative oversight and control by the commissioner of 
 20.46  trade and economic development.  The program shall make payment 
 20.47  to producers of long-form and narrative film productions that 
 20.48  directly create new film jobs in Minnesota.  To be eligible for 
 20.49  a payment, a producer must submit documentation to the Minnesota 
 20.50  film board of expenditures for wages for work on new film 
 20.51  production jobs in Minnesota by resident Minnesotans.  The film 
 21.1   jobs include work such as technical crews, acting talent, set 
 21.2   construction, soundstage or equipment rental, local 
 21.3   postproduction film processing, and other film production jobs.  
 21.4      The film board must make recommendations to the 
 21.5   commissioner about program payment, but the recommendations are 
 21.6   not binding and the commissioner has the authority to make the 
 21.7   final determination on payments.  The commissioner's 
 21.8   determination must be based on the amount of wages documented to 
 21.9   the film board and the likelihood that the payment will lead to 
 21.10  further documentable wage payments.  Payment may not exceed 
 21.11  $100,000 for a long form and narrative film production.  No more 
 21.12  than five percent of the funds appropriated for the program in 
 21.13  any year may be expended for administration.  Individual feature 
 21.14  film projects shooting on or after January 1, 1997, will be 
 21.15  eligible for fund allocations. 
 21.16     Sec. 28.  [MINNESOTA TECHNOLOGY GRANT TO MINNESOTA 
 21.17  TECHNOLOGY CORRIDOR CORPORATION.] 
 21.18     The grant under Laws 1995, chapter 224, section 3, to the 
 21.19  Minnesota Technology Corridor Corporation, a 501(c)(3) nonprofit 
 21.20  corporation, does not cancel, and any remaining balance of the 
 21.21  grant that may exist upon the dissolution of the Minnesota 
 21.22  Technology Corridor Corporation shall be transferred to the 
 21.23  William C. Norris Institute, a 501(c)(3) nonprofit corporation. 
 21.24     Sec. 29.  [RURAL POLICY AND DEVELOPMENT CENTER.] 
 21.25     Subdivision 1.  [ESTABLISHED.] The rural policy and 
 21.26  development center is established at Mankato State University. 
 21.27     Subd. 2.  [GOVERNANCE.] The center is governed by a board 
 21.28  of directors appointed to six-year terms by the governor 
 21.29  comprised of: 
 21.30     (1) two representatives of statewide farm organizations; 
 21.31     (2) a representative from a regional initiative 
 21.32  organization selected under Minnesota Statutes, section 
 21.33  116J.415, subdivision 3; 
 21.34     (3) the president of Mankato State University; 
 21.35     (4) a representative from the general public residing in a 
 21.36  town of less than 5,000 located outside of the metropolitan 
 22.1   area; 
 22.2      (5) three representatives from business, including one 
 22.3   representing rural manufacturing and one rural retail and 
 22.4   service business; and 
 22.5      (6) five representatives from private foundations with a 
 22.6   demonstrated commitment to rural issues. 
 22.7   The president of Mankato State University shall be the chair of 
 22.8   the board. 
 22.9      Subd. 3.  [DUTIES.] The center shall: 
 22.10     (1) identify present and emerging social and economic 
 22.11  issues for rural Minnesota, including health care, 
 22.12  transportation, crime, housing, and job training; 
 22.13     (2) forge alliances and partnerships with rural communities 
 22.14  to find practical solutions to economic and social problems; 
 22.15     (3) provide a resource center for rural communities on 
 22.16  issues of importance to them; 
 22.17     (4) encourage collaboration across higher education 
 22.18  institutions to provide interdisciplinary team approaches to 
 22.19  problem solving with rural communities; and 
 22.20     (5) involve students in center projects. 
 22.21     Subd. 4.  [STATEWIDE FOCUS.] The center has a statewide 
 22.22  mission.  It may contract and collaborate with higher education 
 22.23  and other institutions located throughout the state. 
 22.24     Sec. 30.  [CENTER FOR RURAL POLICY AND DEVELOPMENT FUND.] 
 22.25     A center for rural policy and development fund is 
 22.26  established as an account in the state treasury.  The 
 22.27  commissioner of finance shall credit to the account the amounts 
 22.28  authorized under this section and appropriations to the 
 22.29  account.  The state board of investment shall ensure that 
 22.30  account money is invested under Minnesota Statutes, section 
 22.31  11A.24.  All money earned by the account must be credited to the 
 22.32  account.  The principal of the account and any unexpended 
 22.33  earnings must be invested and reinvested by the state board of 
 22.34  investment. 
 22.35     Gifts and donations, including land or interests in land, 
 22.36  may be made to the account.  Noncash gifts and donations must be 
 23.1   disposed of for cash as soon as the board prudently can maximize 
 23.2   the value of the gift or donation.  Gifts and donations of 
 23.3   marketable securities may be held or be disposed of for cash at 
 23.4   the option of the board.  The cash receipts of gifts and 
 23.5   donations of cash or capital assets and marketable securities 
 23.6   disposed of for cash must be credited immediately to the 
 23.7   principal of the account.  The value of marketable securities at 
 23.8   the time the gift or donation is made must be credited to the 
 23.9   principal of the account and any earnings from the marketable 
 23.10  securities are earnings of the account.  The earnings in the 
 23.11  account are annually appropriated to the board of the center for 
 23.12  rural policy and development to carry out the duties of the 
 23.13  center. 
 23.14     Sec. 31.  [RURAL POLICY AND DEVELOPMENT CENTER; 
 23.15  TRANSITION.] 
 23.16     The governor shall appoint the board of the rural policy 
 23.17  and development center under section 29, subdivision 2, by 
 23.18  August 1, 1997.  Original appointments shall be staggered so 
 23.19  that four members serve two-year terms, four members serve 
 23.20  four-year terms, and five members serve six-year terms.  
 23.21  Thereafter all terms shall be for six years, or for the 
 23.22  unexpired term of a term not completed. 
 23.23     Sec. 32.  [STUDY OF STATE SERVICES FOR THE BLIND.] 
 23.24     The legislative audit commission is requested to undertake 
 23.25  a study, for reporting to the 1998 legislative session, of the 
 23.26  advisability of removing state services for the blind from the 
 23.27  department of economic security and creating a separate board 
 23.28  for the blind, governed by a board appointed by the governor.  
 23.29  The study should include the factors of mission, identity, 
 23.30  visibility, service, accountability to blind citizens, consumer 
 23.31  involvement, administration, finance, and employment.  The study 
 23.32  should be performed in consultation with the rehabilitation 
 23.33  advisory council for the blind, as well as with consumer groups 
 23.34  and blind individuals. 
 23.35     Sec. 33.  [STUDY OF JOB-TRAINING PROGRAMS.] 
 23.36     Subdivision 1.  [STUDY.] The commissioners of trade and 
 24.1   economic development, labor and industry, and economic security 
 24.2   shall conduct a joint study of job-training programs funded 
 24.3   wholly or partly with state funds.  The commissioners must 
 24.4   report to the governor and legislature on the development of the 
 24.5   study by January 15, 1998. 
 24.6      Subd. 2.  [LONG-TERM TRACKING.] The study must include 
 24.7   findings and recommendations on the feasibility and desirability 
 24.8   of creating and implementing long-term tracking of individuals 
 24.9   who complete state-funded job training programs.  The 
 24.10  recommended tracking must provide, among other things, for 
 24.11  comparison of per capita income and wages earned by participants 
 24.12  in these programs with those earned by nonparticipants who are 
 24.13  in the same socioeconomic group as participants at the time of 
 24.14  program entry.  The study shall take into consideration the 
 24.15  physical and mental capabilities of individuals as well as their 
 24.16  levels of learning and training. 
 24.17     Subd. 3.  [COST REPORT.] The study must include a 
 24.18  compilation of all job training programs funded wholly or partly 
 24.19  with state funds for the purpose of determining the true cost of 
 24.20  these programs.  The study shall include, for each such program: 
 24.21     (1) a program description; 
 24.22     (2) the total costs, including those incurred by federal, 
 24.23  state, and local governments; 
 24.24     (3) economic benefits; and 
 24.25     (4) a comparison of the per-capita cost with the increases 
 24.26  in wages earned by program participants. 
 24.27     Sec. 34.  [INTERNATIONAL AFFAIRS COORDINATOR.] 
 24.28     During the biennium ending June 30, 1999, the legislative 
 24.29  coordinating commission may employ an international affairs 
 24.30  coordinator to: 
 24.31     (1) host international visitors; 
 24.32     (2) promote international education, research, and 
 24.33  exchanges; and 
 24.34     (3) monitor federal laws and agreements. 
 24.35     All state agencies shall assist the coordinator in the 
 24.36  performance of the coordinator's duties. 
 25.1      Sec. 35.  [STUDY; INDEPENDENT CONTRACTORS.] 
 25.2      It is in the interest of the state of Minnesota that 
 25.3   determinations of whether a worker is an independent contractor 
 25.4   be consistent among departments and agencies.  To that end, the 
 25.5   commissioner of economic security shall, in conjunction with 
 25.6   other affected departments, study the feasibility of a uniform 
 25.7   process for determining whether a worker is an independent 
 25.8   contractor.  The commissioner of economic security shall report 
 25.9   any recommendations to the legislature by February 1, 1998. 
 25.10     Sec. 36.  [COMMISSIONER OF NATURAL RESOURCES; AVAILABILITY 
 25.11  OF APPROPRIATION.] 
 25.12     The appropriation in Laws 1996, chapter 407, section 3, of 
 25.13  $750,000 to the commissioner of natural resources from the 
 25.14  taconite protection fund for acquisition and development of the 
 25.15  Iron Range off-highway vehicle recreation area does not cancel 
 25.16  but is available until June 30, 1999. 
 25.17     Sec. 37.  [COMMISSIONER OF ECONOMIC SECURITY; GRANT TO ST. 
 25.18  PAUL.] 
 25.19     The commissioner of economic security shall spend all of 
 25.20  the allocation to the city of St. Paul under Minnesota Statutes, 
 25.21  section 469.305, subdivision 1, for fiscal year 1997, that has 
 25.22  not been spent or otherwise committed by the city of St. Paul on 
 25.23  the effective date of this section, as a grant to the city of St.
 25.24  Paul for community development corporations to be used for 
 25.25  microenterprise and equity loans to eligible businesses located 
 25.26  or to be located at or near the Dale Street shops/Maxson Steel 
 25.27  industrial sites and the Minnehaha Mall area of the city of St. 
 25.28  Paul.  The commissioner or the city of St. Paul shall place this 
 25.29  amount in an interest-bearing account and shall make the money 
 25.30  in the account available for the purposes of this section only 
 25.31  when the contamination cleanup at the Dale Street shops/Maxson 
 25.32  Steel industrial sites has progressed to the point where 
 25.33  redevelopment can occur.  For purposes of this section, 
 25.34  "eligible businesses" is limited to small beginning businesses, 
 25.35  including an existing business that is starting a new location, 
 25.36  where similar businesses have demonstrated success in similar 
 26.1   neighborhoods.  The $10,000 maximum limit on microenterprise 
 26.2   loans under Minnesota Statutes, section 116M.18, subdivision 4a, 
 26.3   clause (2), does not apply to the grant under this section. 
 26.4      Sec. 38.  Minnesota Statutes 1996, section 38.02, 
 26.5   subdivision 1, is amended to read: 
 26.6      Subdivision 1.  [PRO RATA DISTRIBUTION; CONDITIONS.] (1) 
 26.7   Money appropriated to aid county and district agricultural 
 26.8   societies and associations shall be distributed among all county 
 26.9   and district agricultural societies or associations in the state 
 26.10  pro rata, upon condition that each of them has complied with the 
 26.11  conditions specified in clause (2). 
 26.12     (2) To be eligible to participate in such distribution, 
 26.13  each such agricultural society or association (a) shall have 
 26.14  held an annual fair for each of the three years last past, 
 26.15  unless prevented from doing so because of a calamity or an 
 26.16  epidemic declared by the board of health as defined in section 
 26.17  145A.02, subdivision 2, or the state commissioner of health to 
 26.18  exist; (b) shall have an annual membership of 25 or more; (c) 
 26.19  shall have paid out to exhibitors for premiums awarded at the 
 26.20  last fair held a sum not less than the amount to be received 
 26.21  from the state; (d) shall have published and distributed not 
 26.22  less than three weeks before the opening day of the fair a 
 26.23  premium list, listing all items or articles on which premiums 
 26.24  are offered and the amounts of such premiums and shall have paid 
 26.25  premiums pursuant to the amount shown for each article or item 
 26.26  to be exhibited; provided that premiums for school exhibits may 
 26.27  be advertised in the published premium list by reference to a 
 26.28  school premium list prepared and circulated during the preceding 
 26.29  school year; and shall have collected all fees charged for 
 26.30  entering an exhibit at the time the entry was made and in 
 26.31  accordance with schedule of entry fees to be charged as 
 26.32  published in the premium list; (e) shall have paid not more than 
 26.33  one premium on each article or item exhibited, excluding 
 26.34  championship or sweepstake awards, and excluding the payment of 
 26.35  open class premium awards to 4H Club exhibits which at this same 
 26.36  fair had won a first prize award in regular 4H Club competition; 
 27.1   (f) shall have submitted its records and annual report to the 
 27.2   commissioner of agriculture trade and economic development on a 
 27.3   form provided by the commissioner of agriculture trade and 
 27.4   economic development, on or before the first day of November of 
 27.5   the current year. 
 27.6      (3) All payments authorized under the provisions of this 
 27.7   chapter shall be made only upon the presentation by the 
 27.8   commissioner of agriculture trade and economic development with 
 27.9   the commissioner of finance of a statement of premium 
 27.10  allocations.  As used herein the term premium shall mean the 
 27.11  cash award paid to an exhibitor for the merit of an exhibit of 
 27.12  livestock, livestock products, grains, fruits, flowers, 
 27.13  vegetables, articles of domestic science, handicrafts, hobbies, 
 27.14  fine arts, and articles made by school pupils, or the cash award 
 27.15  paid to the merit winner of events such as 4H Club or Future 
 27.16  Farmer Contest, Youth Group Contests, school spelling contests 
 27.17  and school current events contests, the award corresponding to 
 27.18  the amount offered in the advertised premium list referred to in 
 27.19  schedule 2.  Payments of awards for horse races, ball games, 
 27.20  musical contests, talent contests, parades, and for amusement 
 27.21  features for which admission is charged, are specifically 
 27.22  excluded from consideration as premiums within the meaning of 
 27.23  that term as used herein.  Upon receipt of the statement by the 
 27.24  commissioner of agriculture trade and economic development, it 
 27.25  shall be the duty of the commissioner of finance to draw a 
 27.26  voucher in favor of the agricultural society or association for 
 27.27  the amount to which it is entitled under the provisions of this 
 27.28  chapter, which amount shall be computed as follows:  On the 
 27.29  first $750 premiums paid by each society or association, such 
 27.30  society or association shall receive 100 percent reimbursement; 
 27.31  on the second $750 premiums paid, 80 percent; on the third $750 
 27.32  premiums paid, 60 percent; and on any sum in excess of $2,250, 
 27.33  40 percent. 
 27.34     (4) If the total amount of state aid to which the 
 27.35  agricultural societies and associations are entitled under the 
 27.36  provisions of this chapter exceeds the amount of the 
 28.1   appropriation therefor, the amounts to which the societies or 
 28.2   associations are entitled shall be prorated so that the total 
 28.3   payments by the state will not exceed the appropriation. 
 28.4      Sec. 39.  Minnesota Statutes 1996, section 38.02, 
 28.5   subdivision 2, is amended to read: 
 28.6      Subd. 2.  [ACCOUNTING; COMMISSIONER OF AGRICULTURE TRADE 
 28.7   AND ECONOMIC DEVELOPMENT, DUTIES.] It shall be the duty of The 
 28.8   commissioner of agriculture to trade and economic development 
 28.9   shall prescribe uniform forms and methods of accounting to be 
 28.10  used by agricultural societies, and associations. 
 28.11     Sec. 40.  Minnesota Statutes 1996, section 38.02, 
 28.12  subdivision 3, is amended to read: 
 28.13     Subd. 3.  [CERTIFICATION, COMMISSIONER OF AGRICULTURE TRADE 
 28.14  AND ECONOMIC DEVELOPMENT.] Any county or district agricultural 
 28.15  society which has held its second annual fair is entitled to 
 28.16  share pro rata in the distribution.  The commissioner 
 28.17  of agriculture trade and economic development shall certify to 
 28.18  the secretary of the state agricultural society, within 30 days 
 28.19  after payments have been made, a list of all county or district 
 28.20  agricultural societies that have complied with this chapter, and 
 28.21  which are entitled to share in the appropriation.  All payments 
 28.22  shall be made within three months after the agricultural 
 28.23  societies submitted their reports under subdivision 1, clause 
 28.24  (2)(f). 
 28.25     Sec. 41.  Minnesota Statutes 1996, section 44A.01, 
 28.26  subdivision 2, is amended to read: 
 28.27     Subd. 2.  [BOARD MEMBERSHIP.] The corporation is governed 
 28.28  by a board of directors consisting of: 
 28.29     (1) four members, representing the international business 
 28.30  community, elected to six-year three-year terms by the 
 28.31  association of members established under section 44A.023, 
 28.32  subdivision 2, clause (5); 
 28.33     (2) four members, representing the international business 
 28.34  community, appointed by the governor, to serve at the governor's 
 28.35  pleasure; 
 28.36     (3) the mayor of St. Paul or the mayor's designee; 
 29.1      (4) the commissioners of trade and economic development, 
 29.2   agriculture, and commerce; and 
 29.3      (5) three members of the house appointed by the speaker of 
 29.4   the house and three members of the senate appointed under the 
 29.5   rules of the senate, who serve as nonvoting members.  One member 
 29.6   from each house must be a member of the minority party of that 
 29.7   house.  Legislative members are appointed at the beginning of 
 29.8   each regular session of the legislature for two-year terms.  A 
 29.9   legislator who remains a member of the body from which the 
 29.10  legislator was appointed may serve until a successor is 
 29.11  appointed and qualifies.  A vacancy in a legislator member's 
 29.12  term is filled for the unexpired portion of the term in the same 
 29.13  manner as the original appointment. 
 29.14     Members appointed by the governor must be knowledgeable or 
 29.15  experienced in international trade in products or services. 
 29.16     Sec. 42.  [45.0295] [FEES.] 
 29.17     (a) The following fees shall be paid to the commissioner: 
 29.18     (1) for a letter of certification of licensure, $10; 
 29.19     (2) for a license history, $20; 
 29.20     (3) for a duplicate license, $10; 
 29.21     (4) for a change of name or address, $10; 
 29.22     (5) for a temporary license, $10; 
 29.23     (6) for each hour or fraction of one hour of course 
 29.24  approval for continuing education sought, $10; and 
 29.25     (7) for each continuing education course coordinator 
 29.26  approval, $100. 
 29.27     (b) All fees paid to the commissioner under this section 
 29.28  are nonrefundable, except that an overpayment of a fee shall be 
 29.29  returned upon proper application. 
 29.30     Sec. 43.  Minnesota Statutes 1996, section 60A.075, is 
 29.31  amended by adding a subdivision to read: 
 29.32     Subd. 18.  [DIVIDEND RESTRICTION; STATE LOANS.] No stock 
 29.33  company may pay a dividend or other distribution, including a 
 29.34  credit against premiums under section 79.3615, to its 
 29.35  shareholders, and no mutual company may pay a dividend or other 
 29.36  distribution, including a credit against premiums under section 
 30.1   79.3615, to its policyholders, if the company has a loan 
 30.2   outstanding from the state, other than a loan made by the state 
 30.3   board of investment. 
 30.4      Sec. 44.  Minnesota Statutes 1996, section 60A.23, 
 30.5   subdivision 8, is amended to read: 
 30.6      Subd. 8.  [SELF-INSURANCE OR INSURANCE PLAN ADMINISTRATORS 
 30.7   WHO ARE VENDORS OF RISK MANAGEMENT SERVICES.] (1)  [SCOPE.] This 
 30.8   subdivision applies to any vendor of risk management services 
 30.9   and to any entity which administers, for compensation, a 
 30.10  self-insurance or insurance plan.  This subdivision does not 
 30.11  apply (a) to an insurance company authorized to transact 
 30.12  insurance in this state, as defined by section 60A.06, 
 30.13  subdivision 1, clauses (4) and (5); (b) to a service plan 
 30.14  corporation, as defined by section 62C.02, subdivision 6; (c) to 
 30.15  a health maintenance organization, as defined by section 62D.02, 
 30.16  subdivision 4; (d) to an employer directly operating a 
 30.17  self-insurance plan for its employees' benefits; (e) to an 
 30.18  entity which administers a program of health benefits 
 30.19  established pursuant to a collective bargaining agreement 
 30.20  between an employer, or group or association of employers, and a 
 30.21  union or unions; or (f) to an entity which administers a 
 30.22  self-insurance or insurance plan if a licensed Minnesota insurer 
 30.23  is providing insurance to the plan and if the licensed insurer 
 30.24  has appointed the entity administering the plan as one of its 
 30.25  licensed agents within this state. 
 30.26     (2)  [DEFINITIONS.] For purposes of this subdivision the 
 30.27  following terms have the meanings given them. 
 30.28     (a) "Administering a self-insurance or insurance plan" 
 30.29  means (i) processing, reviewing or paying claims, (ii) 
 30.30  establishing or operating funds and accounts, or (iii) otherwise 
 30.31  providing necessary administrative services in connection with 
 30.32  the operation of a self-insurance or insurance plan. 
 30.33     (b) "Employer" means an employer, as defined by section 
 30.34  62E.02, subdivision 2. 
 30.35     (c) "Entity" means any association, corporation, 
 30.36  partnership, sole proprietorship, trust, or other business 
 31.1   entity engaged in or transacting business in this state. 
 31.2      (d) "Self-insurance or insurance plan" means a plan 
 31.3   providing life, medical or hospital care, accident, sickness or 
 31.4   disability insurance for the benefit of employees or members of 
 31.5   an association, or a plan providing liability coverage for any 
 31.6   other risk or hazard, which is or is not directly insured or 
 31.7   provided by a licensed insurer, service plan corporation, or 
 31.8   health maintenance organization. 
 31.9      (e) "Vendor of risk management services" means an entity 
 31.10  providing for compensation actuarial, financial management, 
 31.11  accounting, legal or other services for the purpose of designing 
 31.12  and establishing a self-insurance or insurance plan for an 
 31.13  employer. 
 31.14     (3)  [LICENSE.] No vendor of risk management services or 
 31.15  entity administering a self-insurance or insurance plan may 
 31.16  transact this business in this state unless it is licensed to do 
 31.17  so by the commissioner.  An applicant for a license shall state 
 31.18  in writing the type of activities it seeks authorization to 
 31.19  engage in and the type of services it seeks authorization to 
 31.20  provide.  The license may be granted only when the commissioner 
 31.21  is satisfied that the entity possesses the necessary 
 31.22  organization, background, expertise, and financial integrity to 
 31.23  supply the services sought to be offered.  The commissioner may 
 31.24  issue a license subject to restrictions or limitations upon the 
 31.25  authorization, including the type of services which may be 
 31.26  supplied or the activities which may be engaged in.  The license 
 31.27  fee is $100 $500 for the initial application and $500 for each 
 31.28  two-year renewal.  All licenses are for a period of two years. 
 31.29     (4)  [REGULATORY RESTRICTIONS; POWERS OF THE COMMISSIONER.] 
 31.30  To assure that self-insurance or insurance plans are financially 
 31.31  solvent, are administered in a fair and equitable fashion, and 
 31.32  are processing claims and paying benefits in a prompt, fair, and 
 31.33  honest manner, vendors of risk management services and entities 
 31.34  administering insurance or self-insurance plans are subject to 
 31.35  the supervision and examination by the commissioner.  Vendors of 
 31.36  risk management services, entities administering insurance or 
 32.1   self-insurance plans, and insurance or self-insurance plans 
 32.2   established or operated by them are subject to the trade 
 32.3   practice requirements of sections 72A.19 to 72A.30.  In lieu of 
 32.4   an unlimited guarantee from a parent corporation for a vendor of 
 32.5   risk management services or an entity administering insurance or 
 32.6   self-insurance plans, the commissioner may accept a surety bond 
 32.7   in a form satisfactory to the commissioner in an amount equal to 
 32.8   120 percent of the total amount of claims handled by the 
 32.9   applicant in the prior year.  If at any time the total amount of 
 32.10  claims handled during a year exceeds the amount upon which the 
 32.11  bond was calculated, the administrator shall immediately notify 
 32.12  the commissioner.  The commissioner may require that the bond be 
 32.13  increased accordingly. 
 32.14     (5)  [RULEMAKING AUTHORITY.] To carry out the purposes of 
 32.15  this subdivision, the commissioner may adopt rules pursuant to 
 32.16  sections 14.001 to 14.69.  These rules may: 
 32.17     (a) establish reporting requirements for administrators of 
 32.18  insurance or self-insurance plans; 
 32.19     (b) establish standards and guidelines to assure the 
 32.20  adequacy of financing, reinsuring, and administration of 
 32.21  insurance or self-insurance plans; 
 32.22     (c) establish bonding requirements or other provisions 
 32.23  assuring the financial integrity of entities administering 
 32.24  insurance or self-insurance plans; or 
 32.25     (d) establish other reasonable requirements to further the 
 32.26  purposes of this subdivision. 
 32.27     Sec. 45.  Minnesota Statutes 1996, section 60A.71, is 
 32.28  amended by adding a subdivision to read: 
 32.29     Subd. 7.  [FEES.] Each applicant for a reinsurance 
 32.30  intermediary license shall pay to the commissioner a fee of $160 
 32.31  for an initial two-year license and a fee of $120 for each 
 32.32  renewal.  Applications shall be submitted on forms prescribed by 
 32.33  the commissioner. 
 32.34     Sec. 46.  Minnesota Statutes 1996, section 60K.06, 
 32.35  subdivision 2, is amended to read: 
 32.36     Subd. 2.  [LICENSING FEES.] (a) In addition to the fees and 
 33.1   charges provided for examinations, each agent licensed pursuant 
 33.2   to section 60K.03 shall pay to the commissioner: 
 33.3      (1) a fee of $60 per license for an initial license issued 
 33.4   to an individual agent, and a fee of $60 for each renewal; 
 33.5      (2) a fee of $160 for an initial license issued to a 
 33.6   partnership, limited liability company, or corporation, and a 
 33.7   fee of $120 for each renewal; 
 33.8      (3) a fee of $75 for an initial amendment (variable 
 33.9   annuity) to a license, and a fee of $50 for each renewal; and 
 33.10     (4) a fee of $500 for an initial surplus lines agent's 
 33.11  license, and a fee of $500 for each renewal; 
 33.12     (5) for issuing a duplicate license, $10; and 
 33.13     (6) for issuing licensing histories, $20. 
 33.14     (b) Persons whose applications have been properly and 
 33.15  timely filed who have not received notice of denial of renewal 
 33.16  are approved for renewal and may continue to transact business 
 33.17  whether or not the renewed license has been received on or 
 33.18  before November 1 of the renewal year.  Applications for renewal 
 33.19  of a license are timely filed if received by the commissioner on 
 33.20  or before the 15th day preceding the license renewal date of the 
 33.21  applicant on forms duly executed and accompanied by appropriate 
 33.22  fees.  An application mailed is considered timely filed if 
 33.23  addressed to the commissioner, with proper postage, and 
 33.24  postmarked on or before the 15th day preceding the licensing 
 33.25  renewal date of the applicant. 
 33.26     (c) Initial licenses issued under this section must be 
 33.27  valid for a period not to exceed two years.  The commissioner 
 33.28  shall assign an expiration date to each initial license so that 
 33.29  approximately one-half of all licenses expire each year.  Each 
 33.30  initial license must expire on October 31 of the expiration year 
 33.31  assigned by the commissioner. 
 33.32     (d) All fees shall be retained by the commissioner and are 
 33.33  nonreturnable, except that an overpayment of any fee must be 
 33.34  refunded upon proper application. 
 33.35     Sec. 47.  Minnesota Statutes 1996, section 65B.48, 
 33.36  subdivision 3, is amended to read: 
 34.1      Subd. 3.  Self-insurance, subject to approval of the 
 34.2   commissioner, is effected by filing with the commissioner in 
 34.3   satisfactory form: 
 34.4      (1) a continuing undertaking by the owner or other 
 34.5   appropriate person to pay tort liabilities or basic economic 
 34.6   loss benefits, or both, and to perform all other obligations 
 34.7   imposed by sections 65B.41 to 65B.71; 
 34.8      (2) evidence that appropriate provision exists for prompt 
 34.9   administration of all claims, benefits, and obligations provided 
 34.10  by sections 65B.41 to 65B.71; 
 34.11     (3) evidence that reliable financial arrangements, 
 34.12  deposits, or commitments exist providing assurance, 
 34.13  substantially equivalent to that afforded by a policy of 
 34.14  insurance complying with sections 65B.41 to 65B.71, for payment 
 34.15  of tort liabilities, basic economic loss benefits, and all other 
 34.16  obligations imposed by sections 65B.41 to 65B.71; and 
 34.17     (4) a nonrefundable initial application fee of $500 and an 
 34.18  annual renewal fee of $100 for political subdivisions and $250 
 34.19  for nonpolitical entities.  
 34.20     Sec. 48.  Minnesota Statutes 1996, section 72B.04, 
 34.21  subdivision 10, is amended to read: 
 34.22     Subd. 10.  [FEES.] A fee of $40 is imposed for each initial 
 34.23  license or temporary permit and $25 for each renewal thereof or 
 34.24  amendment thereto.  A fee of $20 is imposed for each examination 
 34.25  taken.  A fee of $20 is imposed for the registration of each 
 34.26  nonlicensed adjuster who is required to register under section 
 34.27  72B.06.  All fees shall be transmitted to the commissioner and 
 34.28  shall be payable to the state treasurer.  If a fee is paid for 
 34.29  an examination and if within one year from the date of that 
 34.30  payment no written request for a refund is received by the 
 34.31  commissioner or the examination for which the fee was paid is 
 34.32  not taken, the fee is forfeited to the state of Minnesota. 
 34.33     Sec. 49.  Minnesota Statutes 1996, section 79.253, 
 34.34  subdivision 1, is amended to read: 
 34.35     Subdivision 1.  [CREATION OF ACCOUNT.] There is created the 
 34.36  assigned risk safety account as a separate account in the 
 35.1   special compensation fund in the state treasury.  Income earned 
 35.2   by funds in the account must be credited to the account.  
 35.3   Principal and income of the account are annually appropriated to 
 35.4   the commissioner of labor and industry and must be used for 
 35.5   grants and loans under this section to establish and promote 
 35.6   workplace safety and health programs. 
 35.7      Sec. 50.  Minnesota Statutes 1996, section 79.255, is 
 35.8   amended by adding a subdivision to read: 
 35.9      Subd. 10.  [FEE.] A registration or exemption certificate 
 35.10  fee of $50 shall be paid. 
 35.11     Sec. 51.  Minnesota Statutes 1996, section 79.361, 
 35.12  subdivision 1, is amended to read: 
 35.13     Subdivision 1.  [SCOPE.] This section governs the 
 35.14  distribution of excess surplus of the workers' compensation 
 35.15  reinsurance association declared after January 1, 1993.  A 
 35.16  distribution of excess surplus is declared on the date the board 
 35.17  votes to make a distribution.  No distribution of excess 
 35.18  surplus, whether characterized as excess surplus, excess 
 35.19  premium, or otherwise, other than that provided by this section 
 35.20  may be made. 
 35.21     Sec. 52.  [79.3615] [USE OF WORKER'S COMPENSATION 
 35.22  REINSURANCE ASSOCIATION REFUNDS.] 
 35.23     An insurer shall use funds received by the insurer from the 
 35.24  worker's compensation reinsurance association, whether 
 35.25  characterized as distribution of surplus, refund of premium, or 
 35.26  otherwise, only for the purpose of providing a credit against 
 35.27  future premiums charged by the insurer to its workers' 
 35.28  compensation policyholders.  The insurer must apply the credits 
 35.29  on a prorata basis to premiums on policies issued or renewed on 
 35.30  or after the first day of the first month that begins six months 
 35.31  after the date that the insurer received the funds.  Premium 
 35.32  quotes and premium billings must show the full premium, the 
 35.33  credit required by this section, and the resulting net premium.  
 35.34  The funds must be completely distributed as premium credits 
 35.35  under this section evenly over a 12-month period.  This section 
 35.36  does not adversely affect any rights of policyholders under 
 36.1   section 79.361 and applies only when funds are distributed to 
 36.2   the insurer rather than distributed to policyholders under that 
 36.3   section. 
 36.4      Sec. 53.  Minnesota Statutes 1996, section 79.371, is 
 36.5   amended by adding a subdivision to read:  
 36.6      Subdivision 1a.  [ASSOCIATION OBLIGATION.] The reinsurance 
 36.7   association shall, no later than July 1, 1998, make funds 
 36.8   available as a loan to the state fund mutual insurance company 
 36.9   in the amount of $5,600,000 for the purpose of repaying the 
 36.10  obligation under sections 176A.11 and 176A.12 according to terms 
 36.11  and conditions approved by the commissioner.  The obligation to 
 36.12  make these funds available supersedes any inconsistent 
 36.13  requirements of this chapter, the bylaws or plan of operation of 
 36.14  the association, or duty or obligation imposed upon the board.  
 36.15  The obligation to make funds available under this subdivision 
 36.16  does not apply if, on July 1, 1998, state fund mutual insurance 
 36.17  company has satisfied the indebtedness under sections 176A.11 
 36.18  and 176A.12. 
 36.19     Sec. 54.  Minnesota Statutes 1996, section 82.21, 
 36.20  subdivision 1, is amended to read: 
 36.21     Subdivision 1.  [AMOUNTS.] The following fees shall be paid 
 36.22  to the commissioner: 
 36.23     (a) A fee of $150 for each initial individual broker's 
 36.24  license, and a fee of $100 for each renewal thereof; 
 36.25     (b) A fee of $70 for each initial salesperson's license, 
 36.26  and a fee of $40 for each renewal thereof; 
 36.27     (c) A fee of $85 for each initial real estate closing agent 
 36.28  license, and a fee of $60 for each renewal thereof; 
 36.29     (d) A fee of $150 for each initial corporate, limited 
 36.30  liability company, or partnership license, and a fee of $100 for 
 36.31  each renewal thereof; 
 36.32     (e) A fee for payment to the education, research and 
 36.33  recovery fund in accordance with section 82.34; 
 36.34     (f) A fee of $20 for each transfer; 
 36.35     (g) A fee of $50 for a corporation, limited liability 
 36.36  company, or partnership name change; 
 37.1      (h) A fee of $10 for an agent name change; 
 37.2      (i) A fee of $20 for a license history; 
 37.3      (j) A fee of $10 for a duplicate license; 
 37.4      (k) A fee of $50 for license reinstatement; and 
 37.5      (l) (h) A fee of $20 for reactivating a corporate, limited 
 37.6   liability company, or partnership license without land; 
 37.7      (m) A fee of $100 for course coordinator approval; and 
 37.8      (n) A fee of $20 for each hour or fraction of one hour of 
 37.9   course approval sought. 
 37.10     Sec. 55.  Minnesota Statutes 1996, section 82B.09, 
 37.11  subdivision 1, is amended to read: 
 37.12     Subdivision 1.  [AMOUNTS.] The following fees must be paid 
 37.13  to the commissioner: 
 37.14     (1) for each initial individual real estate appraiser's 
 37.15  license:  $150 if the license expires more than 12 months after 
 37.16  issuance, $100 if the license expires less than 12 months after 
 37.17  issuance; and a fee of $100 for each renewal;. 
 37.18     (2) a fee of $10 for a change in personal name or trade 
 37.19  name or personal address or business location; 
 37.20     (3) a fee of $10 for a license history; 
 37.21     (4) a fee of $25 for a duplicate license; 
 37.22     (5) a fee of $100 for appraiser course coordinator 
 37.23  approval; and 
 37.24     (6) a fee of $10 for each hour or fraction of one hour of 
 37.25  course approval sought. 
 37.26     Sec. 56.  Minnesota Statutes 1996, section 116J.551, is 
 37.27  amended to read: 
 37.28     116J.551 [CREATION OF ACCOUNT.] 
 37.29     A contaminated site cleanup and development account is 
 37.30  created in the general special revenue fund.  Money in the 
 37.31  account may be used, as appropriated by law, is appropriated to 
 37.32  the commissioner to make grants as provided in section 116J.554 
 37.33  and to pay for the commissioner's costs in reviewing 
 37.34  applications and making grants. 
 37.35     Sec. 57.  Minnesota Statutes 1996, section 116J.615, 
 37.36  subdivision 1, is amended to read: 
 38.1      Subdivision 1.  [DUTIES OF DIRECTOR.] The director of 
 38.2   tourism shall:  
 38.3      (1) publish, disseminate, and distribute informational and 
 38.4   promotional literature; 
 38.5      (2) promote and encourage the expansion and development of 
 38.6   international tourism marketing; 
 38.7      (3) advertise and disseminate information about travel 
 38.8   opportunities in the state of Minnesota; 
 38.9      (4) aid various local communities to improve their tourism 
 38.10  marketing programs; 
 38.11     (5) coordinate and implement a comprehensive state tourism 
 38.12  marketing program that takes into consideration all public and 
 38.13  private businesses and attractions; 
 38.14     (6) conduct market research and analysis to improve 
 38.15  marketing techniques in the area of tourism; 
 38.16     (7) investigate and study conditions affecting Minnesota's 
 38.17  tourism industry, collect and disseminate information, and 
 38.18  engage in technical studies, scientific investigations, and 
 38.19  statistical research and educational activities necessary or 
 38.20  useful for the proper execution of the powers and duties of the 
 38.21  director in promoting and developing Minnesota's tourism 
 38.22  industry, both within and outside the state; 
 38.23     (8) apply for, accept, receive, and expend any funds for 
 38.24  the promotion of tourism in Minnesota.  All money received by 
 38.25  the director under this subdivision shall be deposited in the 
 38.26  state treasury and is appropriated to the director for the 
 38.27  purposes for which the money has been received.  The director 
 38.28  may enter into interagency agreements and may agree to share net 
 38.29  revenues with the contributing agencies.  The money does not 
 38.30  cancel and is available until expended; and 
 38.31     (9) plan and conduct information and publicity programs to 
 38.32  attract tourists, visitors, and other interested persons from 
 38.33  outside the state to this state; encourage and coordinate 
 38.34  efforts of other public and private organizations or groups of 
 38.35  citizens to publicize facilities and attractions in this state; 
 38.36  and work with representatives of the hospitality and tourism 
 39.1   industry to carry out its programs. 
 39.2      Sec. 58.  [116J.8745] [MICROENTERPRISE ENTREPRENEURIAL 
 39.3   ASSISTANCE.] 
 39.4      Subdivision 1.  [TECHNICAL ASSISTANCE; LOAN 
 39.5   ADMINISTRATION.] The commissioner of trade and economic 
 39.6   development shall make grants to nonprofit organizations to 
 39.7   provide technical assistance to individuals with entrepreneurial 
 39.8   plans that require microenterprise loans in an amount ranging 
 39.9   from approximately $1,000 to $25,000, and for loan 
 39.10  administration costs related to those microenterprise loans.  
 39.11  Microenterprise is a small business which employs under five 
 39.12  employees plus the owner and requires under $25,000 to start. 
 39.13     Subd. 2.  [GRANT ELIGIBILITY AND ALLOCATION.] Nonprofit 
 39.14  organizations must apply for grants under this section following 
 39.15  procedures established by the commissioner.  To be eligible for 
 39.16  a grant, an organization must demonstrate to the commissioner 
 39.17  that it has the appropriate expertise.  The commissioner shall 
 39.18  give preference for grants to organizations that target 
 39.19  nontraditional entrepreneurs such as women, members of a 
 39.20  minority, low-income individuals, or persons seeking work who 
 39.21  are currently on or recently removed from welfare assistance. 
 39.22     An application must include: 
 39.23     (1) the local need for microenterprise support; 
 39.24     (2) proposed criteria for business eligibility; 
 39.25     (3) proposals for identifying and serving eligible 
 39.26  businesses; 
 39.27     (4) a description of technical assistance to be provided to 
 39.28  eligible businesses; 
 39.29     (5) proposals to coordinate technical assistance with 
 39.30  financial assistance; and 
 39.31     (6) a demonstration of ability to collaborate with other 
 39.32  agencies including educational and financial institutions. 
 39.33     Subd. 3.  [GRANT EVALUATIONS.] Grant recipients must report 
 39.34  to the commissioner by February 1 in each of the two years 
 39.35  succeeding the year of receipt of the grant.  The report must 
 39.36  detail the number of customers served, the number of businesses 
 40.1   started, stabilized, or expanded, the number of jobs created and 
 40.2   retained, and business success rates.  The commissioner shall 
 40.3   report to the legislature on the microenterprise entrepreneurial 
 40.4   assistance.  The report shall contain an evaluation of the 
 40.5   results, recommendations to continue or change the program, and 
 40.6   a suggested level of funding. 
 40.7      Sec. 59.  [116J.8755] [SMALL BUSINESS; ELECTRONIC ACCESS TO 
 40.8   INTERNATIONAL MARKETS.] 
 40.9      The commissioner shall develop a plan for enabling small 
 40.10  businesses to gain electronic access to international markets 
 40.11  through mechanisms that may include electronic trade points. 
 40.12     Sec. 60.  [116J.992] [TACONITE MINING GRANTS.] 
 40.13     (a) The commissioner shall establish a program to make 
 40.14  grants to taconite mining companies to enable them to research 
 40.15  technologies that: 
 40.16     (1) reduce energy consumption; 
 40.17     (2) reduce environmental emissions; 
 40.18     (3) improve productivity; or 
 40.19     (4) improve pellet quality. 
 40.20     (b) To receive a grant a recipient must convey to the state 
 40.21  permanent ownership of both mineral reserves and corresponding 
 40.22  surface lands that: 
 40.23     (1) contain unmined taconite with a 23 percent minimum 
 40.24  magnetic iron content; 
 40.25     (2) have an open pit stripping ratio of less than 1.5 to 1; 
 40.26     (3) are unencumbered by current or planned surface 
 40.27  development; 
 40.28     (4) are substantially unencumbered by past mining activity; 
 40.29     (5) have marketable title for both surface and mineral 
 40.30  interests; and 
 40.31     (6) are in an area that could reasonably be expected to be 
 40.32  mined within 50 years. 
 40.33     (c) A grant may not exceed the value of the mineral 
 40.34  reserves and surface land as assessed by the commissioner of 
 40.35  natural resources.  When assessing value, the commissioner must, 
 40.36  at a minimum, take into account the future value of any royalty 
 41.1   stream, the state's cost of capital, the costs of removing any 
 41.2   encumbrances, and the probability that the reserves will be 
 41.3   mined in the future.  Any revenue generated by ownership or sale 
 41.4   of the property must be deposited in the general fund. 
 41.5      Sec. 61.  Minnesota Statutes 1996, section 116L.04, 
 41.6   subdivision 1, is amended to read: 
 41.7      Subdivision 1.  [GRANTS-IN-AID.] (a) The partnership may 
 41.8   provide grants-in-aid to educational or other nonprofit 
 41.9   institutions using the following guidelines:  
 41.10     (1) the educational or other nonprofit institution is a 
 41.11  provider of training within the state in either the public or 
 41.12  private sector; 
 41.13     (2) the program involves skills training that is an area of 
 41.14  employment need; and 
 41.15     (3) preference will be given to educational or other 
 41.16  nonprofit institutions which serve economically disadvantaged 
 41.17  people, minorities, or those who are victims of economic 
 41.18  dislocation and to businesses located in rural areas.  
 41.19     (b) A single grant to any one institution shall not exceed 
 41.20  $200,000 $400,000.  
 41.21     Sec. 62.  Minnesota Statutes 1996, section 116O.05, is 
 41.22  amended by adding a subdivision to read: 
 41.23     Subd. 4.  [SUPPORTING ORGANIZATIONS.] On making a 
 41.24  determination that the public policies and purposes of this 
 41.25  chapter will be carried out to a greater extent than what might 
 41.26  otherwise occur, the board may cause to be created and may 
 41.27  delegate, assign, or transfer to one or more entities, including 
 41.28  without limitation a corporation, nonprofit corporation, limited 
 41.29  liability company, partnership, or limited partnership, and or 
 41.30  all rights and duties, assets and liabilities, powers or 
 41.31  authority created, authorized, or allowed under this chapter, 
 41.32  including without limitation those pertaining to the seed 
 41.33  capital fund under section 116O.122, except to the extent 
 41.34  specifically limited by the constitution or by law. 
 41.35     Sec. 63.  Minnesota Statutes 1996, section 116O.122, 
 41.36  subdivision 1, is amended to read: 
 42.1      Subdivision 1.  [ESTABLISHMENT.] The corporation shall, in 
 42.2   consultation with private venture and seed capital companies and 
 42.3   other public and private organizations as appropriate, implement 
 42.4   a centrally managed seed capital fund to invest in early stage 
 42.5   companies and small companies in Minnesota through equity or 
 42.6   equity-type investments.  The seed capital fund may receive 
 42.7   contributions from the corporation, as well as from local, 
 42.8   state, or federal government, private foundations, or other 
 42.9   sources.  Total investments by the seed capital fund in 
 42.10  seven-county metropolitan area based companies must not exceed 
 42.11  20 percent of the total amount invested capitalization 
 42.12  appropriated by the legislature or provided by the corporation.  
 42.13  Investments which contribute to the 20 percent metropolitan area 
 42.14  limitation are those which will primarily enhance the operations 
 42.15  of a metropolitan based facility.  Investments that benefit a 
 42.16  Greater Minnesota facility of a metropolitan based company are 
 42.17  not subject to the limitation.  Investments by the seed capital 
 42.18  fund must be matched by other sources of capital at a ratio to 
 42.19  be determined by the corporation.  The seed capital fund shall 
 42.20  identify sources of technical, management, and marketing 
 42.21  assistance for companies funded by the seed capital program and 
 42.22  make appropriate referrals.  The seed capital fund shall 
 42.23  establish a procedure for liquidating private investments. 
 42.24     Sec. 64.  Minnesota Statutes 1996, section 138.91, is 
 42.25  amended by adding a subdivision to read: 
 42.26     Subd. 4.  [SALARY SUPPLEMENT.] The Minnesota humanities 
 42.27  commission is eligible for a salary supplement in the same 
 42.28  manner as state agencies.  The commissioner of finance shall 
 42.29  determine the amount of the salary supplement based on available 
 42.30  appropriations.  Employees of the commission shall be paid in 
 42.31  accordance with the appropriate pay plan. 
 42.32     Sec. 65.  Minnesota Statutes 1996, section 155A.045, 
 42.33  subdivision 1, is amended to read: 
 42.34     Subdivision 1.  [SCHEDULE.] The fee schedule for licensees 
 42.35  is as follows: 
 42.36     (a) Three-year license fees: 
 43.1      (1) cosmetologist, manicurist, esthetician, $45 for each 
 43.2   initial license and $30 for each renewal; 
 43.3      (2) instructor, manager, $60 for each initial license, 
 43.4   and $45 for each renewal; 
 43.5      (3) salon, $65 for each initial license, and $50 for each 
 43.6   renewal; and 
 43.7      (4) school, $750. 
 43.8      (b) Penalties: 
 43.9      (1) reinspection fee, variable; and 
 43.10     (2) manager with lapsed practitioner, $25. 
 43.11     (c) Administrative fees: 
 43.12     (1) duplicate license (includes individual name or address 
 43.13  change), $5; 
 43.14     (2) certificate of identification, $20; 
 43.15     (3) processing fee (covers licensing history or 
 43.16  certification of licensure, restoration of lapsed license, salon 
 43.17  name change, school name change, late renewals, applications for 
 43.18  new licenses), $15; and 
 43.19     (4) (2) school original application, $150. 
 43.20     Sec. 66.  Minnesota Statutes 1996, section 176.181, 
 43.21  subdivision 2a, is amended to read: 
 43.22     Subd. 2a.  [APPLICATION FEE.] Every initial application 
 43.23  filed pursuant to subdivision 2 requesting authority to 
 43.24  self-insure shall be accompanied by a nonrefundable fee of 
 43.25  $1,000 $2,500.  The fee is not refundable.  When an employer 
 43.26  seeks to be added as a member of an existing approved group 
 43.27  under section 79A.03, subdivision 6, the proposed new member 
 43.28  shall pay a nonrefundable $250 application fee to the 
 43.29  commissioner at the time of application.  Each annual report due 
 43.30  August 1 under section 79A.03, subdivision 9, shall be 
 43.31  accompanied by an annual fee of $200.  
 43.32     Sec. 67.  Minnesota Statutes 1996, section 268.022, 
 43.33  subdivision 2, is amended to read: 
 43.34     Subd. 2.  [DISBURSEMENT OF SPECIAL ASSESSMENT FUNDS.] (a) 
 43.35  The money collected under this section shall be deposited in the 
 43.36  state treasury and credited to a dedicated fund to provide for 
 44.1   the employment and training programs established under 
 44.2   sections 268.60 to 268.64, 268.96, and 268.975 to 268.98; 
 44.3   including vocational guidance, training, placement, and job 
 44.4   development. 
 44.5      (b) All money in the dedicated fund is appropriated to the 
 44.6   commissioner who must act as the fiscal agent for the money and 
 44.7   must disburse the money for the purposes of this section, not 
 44.8   allowing the money to be used for any other obligation of the 
 44.9   state.  All money in the dedicated fund shall be deposited, 
 44.10  administered, and disbursed in the same manner and under the 
 44.11  same conditions and requirements as are provided by law for the 
 44.12  other dedicated funds in the state treasury, except that all 
 44.13  interest or net income resulting from the investment or deposit 
 44.14  of money in the fund shall accrue to the fund for the purposes 
 44.15  of the fund. 
 44.16     (c) No more than five percent of the dedicated funds 
 44.17  collected in each fiscal year may be used by the department of 
 44.18  economic security for its administrative costs. 
 44.19     (d) Reimbursement for costs related to collection of the 
 44.20  special assessment shall be in an amount negotiated between the 
 44.21  commissioner and the United States Department of Labor. 
 44.22     (e) Amounts may be appropriated for programs established 
 44.23  under sections 268.60 to 268.64 and 268.96. 
 44.24     (f) The dedicated funds, less amounts under paragraphs (c) 
 44.25  and (d) shall be allocated as follows:  
 44.26     (1) 40 percent to be allocated annually to substate 
 44.27  grantees for provision of expeditious response activities under 
 44.28  section 268.9771 and worker adjustment services under section 
 44.29  268.9781; and 
 44.30     (2) 60 percent to be allocated to activities and programs 
 44.31  authorized under sections 268.975 to 268.98. 
 44.32     (f) (g) Any funds not allocated, obligated, or expended in 
 44.33  a fiscal year shall be available for allocation, obligation, and 
 44.34  expenditure in the following fiscal year, except that money 
 44.35  appropriated for programs under sections 268.60 to 268.64 or 
 44.36  268.96 for a fiscal year and not spent in that fiscal year 
 45.1   cancels to the workforce investment fund unless otherwise 
 45.2   provided by the terms of the appropriation. 
 45.3      Sec. 68.  Minnesota Statutes 1996, section 268.362, 
 45.4   subdivision 2, is amended to read: 
 45.5      Subd. 2.  [GRANT APPLICATIONS; AWARDS.] Interested eligible 
 45.6   organizations must apply to the commissioner for the grants.  
 45.7   The advisory committee must review the applications and provide 
 45.8   to the commissioner a list of recommended eligible organizations 
 45.9   that the advisory committee determines meet the requirements for 
 45.10  receiving a grant.  The total grant award for any program may 
 45.11  not exceed $80,000 per year.  In awarding grants, the advisory 
 45.12  committee and the commissioner must give priority to: 
 45.13     (1) continuing and expanding effective programs by 
 45.14  providing grant money to organizations that are operating or 
 45.15  have operated a successful program that meets the program 
 45.16  purposes under section 268.364; and 
 45.17     (2) distributing programs throughout the state through 
 45.18  start-up grants for programs in areas that are not served by an 
 45.19  existing program. 
 45.20     To receive a grant under this section, the eligible 
 45.21  organization must match the grant money with at least an equal 
 45.22  amount of nonstate money.  The commissioner must verify that the 
 45.23  eligible organization has matched the grant money.  Nothing in 
 45.24  this subdivision shall prevent an eligible organization from 
 45.25  applying for and receiving grants for more than one program.  A 
 45.26  grant received by an eligible organization from the federal 
 45.27  Youthbuild Project under United States Code, title 42, section 
 45.28  5091, is nonstate money and may be used to meet the state match 
 45.29  requirement.  State grant money awarded under this section may 
 45.30  be used by grantee organizations for match requirements of a 
 45.31  federal Youthbuild Project. 
 45.32     Sec. 69.  [268.3625] [ADMINISTRATIVE COSTS.] 
 45.33     The commissioner may use up to five percent of the biennial 
 45.34  appropriation for Youthbuild from the general fund to pay costs 
 45.35  incurred by the department in administering Youthbuild during 
 45.36  the biennium. 
 46.1      Sec. 70.  Minnesota Statutes 1996, section 268.63, is 
 46.2   amended to read: 
 46.3      268.63 [CRITERIA FOR DISTRIBUTION OF MONEY.] 
 46.4      The commissioner, with the advice of the council, shall 
 46.5   establish criteria for the distribution of state money for the 
 46.6   purpose of section 268.62.  The criteria shall include 
 46.7   requirements that:  
 46.8      (a) the program receiving state assistance:  
 46.9      (1) involve residents in the area to be served by the 
 46.10  program in the planning and operation of the program; and 
 46.11     (2) involve the business community in the area to be served 
 46.12  by the program in its development and operation; 
 46.13     (b) the distribution of assistance among areas within the 
 46.14  state be equitable, with priority being given to areas with high 
 46.15  unemployment or underemployment; 
 46.16     (c) financial assistance under sections 268.60 to 268.64 to 
 46.17  any metropolitan area program may not exceed 25 percent and to 
 46.18  any nonmetropolitan area program may not exceed 50 percent of 
 46.19  the cost of the program including costs of administration; and 
 46.20     (d) a program receiving financial assistance has adequate 
 46.21  internal administrative controls, accounting procedures, 
 46.22  personnel standards, evaluation procedures, availability of 
 46.23  in-service training and technical assistance programs, and other 
 46.24  policies necessary to promote the effective use of state money.  
 46.25     The commissioner may make a distribution in excess of the 
 46.26  limit prescribed in clause (c) if the commissioner determines 
 46.27  that the excess distribution is necessary to further the 
 46.28  objectives of sections 268.60 and 268.62.  
 46.29     Sec. 71.  Minnesota Statutes 1996, section 270.97, is 
 46.30  amended to read: 
 46.31     270.97 [DEPOSIT OF REVENUES.] 
 46.32     The commissioner shall deposit all revenues derived from 
 46.33  the tax, interest, and penalties received from the county in the 
 46.34  contaminated site cleanup and development account in the general 
 46.35  special revenue fund.  
 46.36     Sec. 72.  Minnesota Statutes 1996, section 298.22, is 
 47.1   amended by adding a subdivision to read: 
 47.2      Subd. 7.  [GIANTS RIDGE RECREATION AREA.] (a) In addition 
 47.3   to the other powers granted in this section and other law, the 
 47.4   commissioner, for purposes of fostering economic development and 
 47.5   tourism within the Giants Ridge recreation area, may spend any 
 47.6   money made available to the agency under section 298.28 to 
 47.7   acquire real or personal property or interests therein by gift, 
 47.8   purchase, or lease and may convey by lease, sale, or other means 
 47.9   of conveyance or commitment any or all of those property 
 47.10  interests acquired.  
 47.11     (b) Notwithstanding any other law to the contrary, property 
 47.12  conveyed under this subdivision and used for residential 
 47.13  purposes is not eligible for property tax homestead 
 47.14  classification under section 273.124 or for a property tax 
 47.15  refund under chapter 290A. 
 47.16     (c) In furtherance of development of the Giants Ridge 
 47.17  recreation area, the commissioner may establish and participate 
 47.18  in charitable foundations and nonprofit corporations, including 
 47.19  a corporation within the meaning of section 317A.011, 
 47.20  subdivision 6. 
 47.21     (d) The term "Giants Ridge recreation area" refers to an 
 47.22  economic development project area established by the 
 47.23  commissioner in furtherance of the powers delegated in this 
 47.24  section within St. Louis county in the western portions of the 
 47.25  town of White and in the eastern portion of the westerly, 
 47.26  adjacent, unorganized township. 
 47.27     Sec. 73.  Minnesota Statutes 1996, section 326.86, 
 47.28  subdivision 1, is amended to read: 
 47.29     Subdivision 1.  [LICENSING FEE.] The licensing fee for 
 47.30  persons licensed pursuant to sections 326.83 to 326.991 is $75 
 47.31  per year.  The commissioner may adjust the fees under section 
 47.32  16A.1285 to recover the costs of administration and 
 47.33  enforcement.  The fees must be limited to the cost of license 
 47.34  administration and enforcement and must be deposited in the 
 47.35  state treasury and credited to the general fund.  A fee of $25 
 47.36  will be charged for a duplicate license or an amended license 
 48.1   reflecting a change of business name, address, or qualifying 
 48.2   person. 
 48.3      Sec. 74.  Minnesota Statutes 1996, section 469.303, is 
 48.4   amended to read: 
 48.5      469.303 [ELIGIBILITY REQUIREMENTS.] 
 48.6      An area within the city is eligible for designation as an 
 48.7   enterprise zone if the area (1) includes census tracts eligible 
 48.8   for a federal empowerment zone or enterprise community as 
 48.9   defined by the United States Department of Housing and Urban 
 48.10  Development under Public Law Number 103-66, notwithstanding the 
 48.11  maximum zone population standard under the federal empowerment 
 48.12  zone program for cities with a population under 500,000 or (2) 
 48.13  an area within a city of the second class that is designated as 
 48.14  an economically depressed area by the United States Department 
 48.15  of Commerce; or (3) includes property located in St. Paul in a 
 48.16  transit zone, as defined in section 473.3915, subdivision 3. 
 48.17     Sec. 75.  Minnesota Statutes 1996, section 469.305, 
 48.18  subdivision 1, is amended to read: 
 48.19     Subdivision 1.  [INCENTIVE GRANTS.] (a) An incentive grant 
 48.20  is available to businesses located in an enterprise zone that 
 48.21  meet the conditions of this section.  Each city designated as an 
 48.22  enterprise zone is allocated $3,000,000 to be used to provide 
 48.23  grants under this section for the duration of the program.  Each 
 48.24  city of the second class designated as an economically depressed 
 48.25  area by the United States Department of Commerce is allocated 
 48.26  $300,000 to be used to provide grants under this section for the 
 48.27  duration of the program.  For fiscal year 1998 and subsequent 
 48.28  years, the proration in section 469.31 shall continue to apply 
 48.29  until the amount designated in this subdivision is 
 48.30  expended.  For the allocation in fiscal year 1998 and subsequent 
 48.31  years, the commissioner may use up to 15 percent of the 
 48.32  allocation to the city of Minneapolis for a grant to the city of 
 48.33  Minneapolis and up to 15 percent of the allocation to the city 
 48.34  of St. Paul for a grant to the city of St. Paul, for 
 48.35  administration of the program or employment services provided to 
 48.36  the employers and employees involved in the incentive grant 
 49.1   program under this section. 
 49.2      (b) The incentive grant is in an amount equal to 20 percent 
 49.3   of the wages paid to an employee, not to exceed $5,000 per 
 49.4   employee per calendar year.  The incentive grant is available to 
 49.5   an employer for a zone resident employed in the zone at 
 49.6   full-time wage levels of not less than 170 percent of minimum 
 49.7   wage 110 percent of the federal poverty level for a family of 
 49.8   four, as determined by the United States Department of 
 49.9   Agriculture.  The incentive grant is not available to workers 
 49.10  employed in construction or employees of financial institutions, 
 49.11  gambling enterprises, public utilities, sports, fitness, and 
 49.12  health facilities, or racetracks.  The employee must be employed 
 49.13  at that rate at the time the business applies for a grant, and 
 49.14  must have been employed for at least one year at the business.  
 49.15  A grant may be provided only for new jobs; for purposes of this 
 49.16  section, a "new job" is a job that did not exist in Minnesota 
 49.17  before May 6, 1994.  The incentive grant authority is available 
 49.18  for the five calendar years after the application has been 
 49.19  approved to the extent the allocation to the city remains 
 49.20  available to fund the grants, and if the city certifies to the 
 49.21  commissioner on an annual basis that the business is in 
 49.22  compliance with the plan to recruit, hire, train, and retain 
 49.23  zone residents.  The employer may designate an organization that 
 49.24  provides employment services to receive all or a portion of the 
 49.25  employer's incentive grant. 
 49.26     Sec. 76.  [YEAR 2000 READY.] 
 49.27     Any computer software or hardware that is purchased with 
 49.28  money appropriated in this bill must be year 2000 ready. 
 49.29     Sec. 77.  [EFFECTIVE DATE.] 
 49.30     Section 64 is effective July 1, 1999.  Sections 36 and 37 
 49.31  are effective the day following final enactment. 
 49.32                             ARTICLE 2
 49.33             CONTAMINATED SITES; PREDEVELOPMENT AND JOB
 49.34                  CREATION GRANTS FOR COMMUNITIES
 49.35     Section 1.  Minnesota Statutes 1996, section 115A.908, 
 49.36  subdivision 2, is amended to read: 
 50.1      Subd. 2.  [DEPOSIT OF REVENUE.] Revenue collected shall be 
 50.2   credited to the motor vehicle transfer account in the 
 50.3   environmental fund contaminated site predevelopment and job 
 50.4   creation account in the special revenue fund. 
 50.5      Sec. 2.  Minnesota Statutes 1996, section 115B.03, 
 50.6   subdivision 5, is amended to read: 
 50.7      Subd. 5.  [EMINENT DOMAIN.] (a) The state, an agency of the 
 50.8   state, or a political subdivision is not a responsible person 
 50.9   under this section solely as a result of the acquisition of 
 50.10  property if the property was acquired by the state, an agency of 
 50.11  the state, or a political subdivision that acquires property (1) 
 50.12  through exercise of the power of eminent domain, or (2) through 
 50.13  negotiated purchase after filing a petition for the taking of 
 50.14  the property through eminent domain, or (3) after adopting a 
 50.15  redevelopment or development plan under sections 469.001 to 
 50.16  469.134 describing the property and stating its intended use and 
 50.17  the necessity of its taking is not a responsible person under 
 50.18  this section solely as a result of the acquisition of the 
 50.19  property, (4) after adopting a layout plan for highway 
 50.20  development under sections 161.15 to 161.241 describing the 
 50.21  property and stating its intended use and the necessity of its 
 50.22  taking, or (5) through the use of a loan to purchase 
 50.23  right-of-way in the seven-county metropolitan area under section 
 50.24  473.167.  
 50.25     (b) A person who acquires property from the state, an 
 50.26  agency of the state, or a political subdivision, is not a 
 50.27  responsible person under this section solely as a result of the 
 50.28  acquisition of property if the property was acquired by the 
 50.29  state, agency, or political subdivision through exercise of the 
 50.30  power of eminent domain or by negotiated purchase after filing a 
 50.31  petition for the taking of the property through eminent domain 
 50.32  or, after adopting a redevelopment or development plan under 
 50.33  sections 469.001 to 469.134 describing the property and stating 
 50.34  its intended use and the necessity of its taking, or after 
 50.35  adopting a layout plan for highway development under sections 
 50.36  161.15 to 161.241 describing the property and stating its 
 51.1   intended use and the necessity of its taking. 
 51.2      Sec. 3.  Minnesota Statutes 1996, section 115C.021, is 
 51.3   amended by adding a subdivision to read: 
 51.4      Subd. 3a.  [EMINENT DOMAIN.] (a) The department of 
 51.5   transportation is not responsible for a release from a tank 
 51.6   under this section solely as a result of the acquisition of 
 51.7   property if the property was acquired by the department through 
 51.8   exercise of the power of eminent domain, through negotiated 
 51.9   purchase after filing a petition for the taking of the property 
 51.10  through eminent domain, or after adopting a layout plan for 
 51.11  highway development under sections 161.15 to 161.241 describing 
 51.12  the property and stating its intended use and the necessity of 
 51.13  its taking.  
 51.14     (b) A person who acquires property from the department, 
 51.15  other than property acquired through a land exchange, is not a 
 51.16  responsible person under this section solely as a result of the 
 51.17  acquisition of property if the property was acquired by the 
 51.18  department through exercise of the power of eminent domain, by 
 51.19  negotiated purchase after filing a petition for the taking of 
 51.20  the property through eminent domain, or after adopting a layout 
 51.21  plan for highway development under sections 161.15 to 161.241 
 51.22  describing the property and stating its intended use and the 
 51.23  necessity of its taking. 
 51.24     Sec. 4.  Minnesota Statutes 1996, section 115C.03, 
 51.25  subdivision 9, is amended to read: 
 51.26     Subd. 9.  [REQUESTS FOR REVIEW, INVESTIGATION, AND 
 51.27  OVERSIGHT.] (a) The commissioner may, upon request:  
 51.28     (1) assist in determining whether a release has occurred; 
 51.29  and 
 51.30     (2) assist in or supervise the development and 
 51.31  implementation of reasonable and necessary corrective actions; 
 51.32  and 
 51.33     (3) assist in or supervise the investigation, development, 
 51.34  and implementation of actions to minimize, eliminate, or clean 
 51.35  up petroleum contamination at sites where it is not certain that 
 51.36  the contamination is attributable to a release.  
 52.1      (b) Assistance may include review of agency records and 
 52.2   files and review and approval of a requester's investigation 
 52.3   plans and reports and corrective action plans and implementation.
 52.4      (c) Assistance may include the issuance of a written 
 52.5   determination that an owner or prospective buyer of real 
 52.6   property will not be a responsible person under section 
 52.7   115C.021, if the commissioner finds the release came from a tank 
 52.8   not located on the property.  The commissioner may also issue a 
 52.9   written confirmation that the real property was the site of a 
 52.10  release and that the tank from which the release occurred has 
 52.11  been removed or that the agency has issued a site closure letter 
 52.12  and has not revoked that status.  The issuance of the written 
 52.13  determination or confirmation applies to tanks not on the 
 52.14  property or removed only and does not affect liability for 
 52.15  releases from tanks that are on the property at the time of 
 52.16  purchase.  The commissioner may also issue site closure letters 
 52.17  and nonresponsible person determinations for sites contaminated 
 52.18  by petroleum where it is not certain that the contamination is 
 52.19  attributable to a release.  The written determination or 
 52.20  confirmation extends to the successors and assigns of the person 
 52.21  to whom it originally applied, if the successors and assigns are 
 52.22  not otherwise responsible for the release. 
 52.23     (d) The person requesting assistance under this subdivision 
 52.24  shall pay the agency for the agency's cost, as determined by the 
 52.25  commissioner, of providing assistance.  Money received by the 
 52.26  agency for assistance under this subdivision must be deposited 
 52.27  in the state treasury and credited to an account in the special 
 52.28  revenue fund.  Money in this account is annually appropriated to 
 52.29  the commissioner for purposes of administering the subdivision. 
 52.30     Sec. 5.  Minnesota Statutes 1996, section 115C.08, 
 52.31  subdivision 4, is amended to read: 
 52.32     Subd. 4.  [EXPENDITURES.] (a) Money in the fund may only be 
 52.33  spent: 
 52.34     (1) to administer the petroleum tank release cleanup 
 52.35  program established in this chapter; 
 52.36     (2) for agency administrative costs under sections 116.46 
 53.1   to 116.50, sections 115C.03 to 115C.06, and costs of corrective 
 53.2   action taken by the agency under section 115C.03, including 
 53.3   investigations; 
 53.4      (3) for costs of recovering expenses of corrective actions 
 53.5   under section 115C.04; 
 53.6      (4) for training, certification, and rulemaking under 
 53.7   sections 116.46 to 116.50; 
 53.8      (5) for agency administrative costs of enforcing rules 
 53.9   governing the construction, installation, operation, and closure 
 53.10  of aboveground and underground petroleum storage tanks; 
 53.11     (6) for reimbursement of the harmful substance compensation 
 53.12  account under subdivision 5 and section 115B.26, subdivision 4; 
 53.13     (7) for administrative and staff costs as set by the board 
 53.14  to administer the petroleum tank release program established in 
 53.15  this chapter; and 
 53.16     (8) for corrective action performance audits under section 
 53.17  115C.093; and 
 53.18     (9) for contamination cleanup grants, as provided in 
 53.19  paragraph (c). 
 53.20     (b) Except as provided in paragraph (c), money in the fund 
 53.21  is appropriated to the board to make reimbursements or payments 
 53.22  under this section. 
 53.23     (c) $6,200,000 is annually appropriated from the fund to 
 53.24  the commissioner of trade and economic development for 
 53.25  contamination cleanup grants under section 116J.554, provided 
 53.26  that money appropriated in this paragraph may be used only for 
 53.27  cleanup costs attributable to petroleum contamination, as 
 53.28  determined by the commissioner of the pollution control agency. 
 53.29  Of this amount, the commissioner may spend up to $120,000 
 53.30  annually for administration of the contamination cleanup grant 
 53.31  program. 
 53.32     Sec. 6.  Minnesota Statutes 1996, section 115C.09, 
 53.33  subdivision 3, is amended to read: 
 53.34     Subd. 3.  [REIMBURSEMENTS; SUBROGATION; APPROPRIATION.] (a) 
 53.35  The board shall reimburse an eligible applicant from the fund in 
 53.36  the following amounts: 
 54.1      (1) 90 percent of the total reimbursable costs on the first 
 54.2   $250,000 and 75 percent on any remaining costs in excess of 
 54.3   $250,000 on a site; 
 54.4      (2) for corrective actions at a residential site used as a 
 54.5   permanent residence at the time the release was discovered, 92.5 
 54.6   percent of the total reimbursable costs on the first $100,000 
 54.7   and 100 percent of any remaining costs in excess of $100,000; or 
 54.8      (3) 90 percent of the total reimbursable costs on the first 
 54.9   $250,000 and 100 percent of the cumulative total reimbursable 
 54.10  costs in excess of $250,000 at all sites in which the 
 54.11  responsible person had interest, and for which the commissioner 
 54.12  has not issued a closure letter as of April 3, 1996, if the 
 54.13  responsible person dispensed less than 1,000,000 gallons of 
 54.14  petroleum at each location in each of the last three calendar 
 54.15  years that the responsible person dispensed petroleum at the 
 54.16  location and: 
 54.17     (i) has owned no more than three locations in the state at 
 54.18  which motor fuel was dispensed into motor vehicles and has 
 54.19  discontinued operation of all petroleum retail operations; or 
 54.20     (ii) has owned no more than one location in the state at 
 54.21  which motor fuel was dispensed into motor vehicles.; or 
 54.22     (4) With respect to projects begun on or after January 1, 
 54.23  1997, 90 percent of the total amount of all of the following 
 54.24  costs, regardless of whether a release has occurred at the 
 54.25  site:  tank removal, closure in place, backfill, resurfacing, 
 54.26  utility service restoration, and, if a release has occurred at 
 54.27  the site, any reimbursable costs under subdivision 1.  This 
 54.28  clause applies only if the tank or tanks involved are 
 54.29  underground tanks, and if the responsible person dispensed less 
 54.30  than 400,000 gallons of motor fuel during the last year in which 
 54.31  petroleum products were dispensed to the public at the location, 
 54.32  and the responsible person owns no more than one location in 
 54.33  this or any other state at which motor fuel was dispensed into 
 54.34  motor vehicles or watercraft. 
 54.35     This clause expires December 31, 1999. 
 54.36     Not more than $1,000,000 may be reimbursed for costs 
 55.1   associated with a single release, regardless of the number of 
 55.2   persons eligible for reimbursement, and not more than $2,000,000 
 55.3   may be reimbursed for costs associated with a single tank 
 55.4   facility. 
 55.5      (b) A reimbursement may not be made from the fund under 
 55.6   this chapter until the board has determined that the costs for 
 55.7   which reimbursement is requested were actually incurred and were 
 55.8   reasonable. 
 55.9      (c) When an applicant has obtained responsible competitive 
 55.10  bids or proposals according to rules promulgated under this 
 55.11  chapter prior to June 1, 1995, the eligible costs for the tasks, 
 55.12  procedures, services, materials, equipment, and tests of the low 
 55.13  bid or proposal are presumed to be reasonable by the board, 
 55.14  unless the costs of the low bid or proposal are substantially in 
 55.15  excess of the average costs charged for similar tasks, 
 55.16  procedures, services, materials, equipment, and tests in the 
 55.17  same geographical area during the same time period. 
 55.18     (d) When an applicant has obtained a minimum of two 
 55.19  responsible competitive bids or proposals on forms prescribed by 
 55.20  the board and where the rules promulgated under this chapter 
 55.21  after June 1, 1995, designate maximum costs for specific tasks, 
 55.22  procedures, services, materials, equipment and tests, the 
 55.23  eligible costs of the low bid or proposal are deemed reasonable 
 55.24  if the costs are at or below the maximums set forth in the rules.
 55.25     (e) Costs incurred for change orders executed as prescribed 
 55.26  in rules promulgated under this chapter after June 1, 1995, are 
 55.27  presumed reasonable if the costs are at or below the maximums 
 55.28  set forth in the rules, unless the costs in the change order are 
 55.29  above those in the original bid or proposal or are 
 55.30  unsubstantiated and inconsistent with the process and standards 
 55.31  required by the rules. 
 55.32     (f) A reimbursement may not be made from the fund in 
 55.33  response to either an initial or supplemental application for 
 55.34  costs incurred after June 4, 1987, that are payable under an 
 55.35  applicable insurance policy, except that if the board finds that 
 55.36  the applicant has made reasonable efforts to collect from an 
 56.1   insurer and failed, the board shall reimburse the applicant. 
 56.2      (g) If the board reimburses an applicant for costs for 
 56.3   which the applicant has insurance coverage, the board is 
 56.4   subrogated to the rights of the applicant with respect to that 
 56.5   insurance coverage, to the extent of the reimbursement by the 
 56.6   board.  The board may request the attorney general to bring an 
 56.7   action in district court against the insurer to enforce the 
 56.8   board's subrogation rights.  Acceptance by an applicant of 
 56.9   reimbursement constitutes an assignment by the applicant to the 
 56.10  board of any rights of the applicant with respect to any 
 56.11  insurance coverage applicable to the costs that are reimbursed.  
 56.12  Notwithstanding this paragraph, the board may instead request a 
 56.13  return of the reimbursement under subdivision 5 and may employ 
 56.14  against the applicant the remedies provided in that subdivision, 
 56.15  except where the board has knowingly provided reimbursement 
 56.16  because the applicant was denied coverage by the insurer. 
 56.17     (h) Money in the fund is appropriated to the board to make 
 56.18  reimbursements under this chapter.  A reimbursement to a state 
 56.19  agency must be credited to the appropriation account or accounts 
 56.20  from which the reimbursed costs were paid. 
 56.21     (i) The board may reduce the amount of reimbursement to be 
 56.22  made under this chapter if it finds that the applicant has not 
 56.23  complied with a provision of this chapter, a rule or order 
 56.24  issued under this chapter, or one or more of the following 
 56.25  requirements: 
 56.26     (1) the agency was given notice of the release as required 
 56.27  by section 115.061; 
 56.28     (2) the applicant, to the extent possible, fully cooperated 
 56.29  with the agency in responding to the release; and 
 56.30     (3) the state and federal rules and regulations applicable 
 56.31  to the condition or operation of the tank when the noncompliance 
 56.32  caused or failed to mitigate the release. 
 56.33     (j) The reimbursement may be reduced as much as 100 percent 
 56.34  for failure by the applicant to comply with the requirements in 
 56.35  paragraph (i), clauses (1) to (3).  In determining the amount of 
 56.36  the reimbursement reduction, the board shall consider:  
 57.1      (1) the reasonable determination by the agency of the 
 57.2   environmental impact of the noncompliance; 
 57.3      (2) whether the noncompliance was negligent, knowing, or 
 57.4   willful; 
 57.5      (3) the deterrent effect of the award reduction on other 
 57.6   tank owners and operators; and 
 57.7      (4) the amount of reimbursement reduction recommended by 
 57.8   the commissioner. 
 57.9      (k) An applicant may assign the right to receive 
 57.10  reimbursement to each lender who advanced funds to pay the costs 
 57.11  of the corrective action or to each contractor or consultant who 
 57.12  provided corrective action services.  An assignment must be made 
 57.13  by filing with the board a document, in a form prescribed by the 
 57.14  board, indicating the identity of the applicant, the identity of 
 57.15  the assignee, the dollar amount of the assignment, and the 
 57.16  location of the corrective action.  An assignment signed by the 
 57.17  applicant is valid unless terminated by filing a termination 
 57.18  with the board, in a form prescribed by the board, which must 
 57.19  include the written concurrence of the assignee.  The board 
 57.20  shall maintain an index of assignments filed under this 
 57.21  paragraph.  The board shall pay the reimbursement to the 
 57.22  applicant and to one or more assignees by a multiparty check.  
 57.23  The board has no liability to an applicant for a payment under 
 57.24  an assignment meeting the requirements of this paragraph. 
 57.25     Sec. 7.  Minnesota Statutes 1996, section 115C.09, is 
 57.26  amended by adding a subdivision to read: 
 57.27     Subd. 3e.  [DEPARTMENT OF TRANSPORTATION ELIGIBILITY.] The 
 57.28  department of transportation may apply to the board and is 
 57.29  eligible for reimbursement of reimbursable costs associated with 
 57.30  property that the department has acquired under section 
 57.31  115C.021, subdivision 3a, if corrective action pursuant to a 
 57.32  plan reviews and approved by the commissioner of the pollution 
 57.33  control agency in accordance with applicable rules and guidance 
 57.34  documents was taken on the entire property so acquired.  
 57.35  Notwithstanding subdivision 3, paragraph (a), the department of 
 57.36  transportation shall receive 100 percent of total reimbursable 
 58.1   costs associated with a single release up to $1,000,000. 
 58.2      Sec. 8.  Minnesota Statutes 1996, section 115C.13, is 
 58.3   amended to read: 
 58.4      115C.13 [REPEALER.] 
 58.5      Sections 115C.01, 115C.02, 115C.021, 115C.03, 115C.04, 
 58.6   115C.045, 115C.05, 115C.06, 115C.065, 115C.07, 115C.08, 115C.09, 
 58.7   115C.092, 115C.10, 115C.11, and 115C.12, are repealed effective 
 58.8   June 30, 2000 2005. 
 58.9      Sec. 9.  Minnesota Statutes 1996, section 116J.552, 
 58.10  subdivision 4, is amended to read: 
 58.11     Subd. 4.  [DEVELOPMENT AUTHORITY.] "Development authority" 
 58.12  includes a statutory or home rule charter city, county, housing 
 58.13  and redevelopment authority, economic development authority, and 
 58.14  a port authority. 
 58.15     Sec. 10.  Minnesota Statutes 1996, section 116J.553, 
 58.16  subdivision 2, is amended to read: 
 58.17     Subd. 2.  [REQUIRED CONTENT.] (a) The commissioner shall 
 58.18  prescribe and provide the application form.  Except as provided 
 58.19  in paragraph (b), the application must include at least the 
 58.20  following information: 
 58.21     (1) identification of the site; 
 58.22     (2) an approved response action plan for the site, 
 58.23  including the results of engineering and other tests showing the 
 58.24  nature and extent of the release or threatened release of 
 58.25  contaminants at the site; 
 58.26     (3) a detailed estimate, along with necessary supporting 
 58.27  evidence, of the total cleanup costs for the site; 
 58.28     (4) an appraisal of the current market value of the 
 58.29  property, separately taking into account the effect of the 
 58.30  contaminants on the market value, prepared by a qualified 
 58.31  independent appraiser using accepted appraisal methodology; 
 58.32     (5) an assessment of the development potential or likely 
 58.33  use of the site after completion of the response action plan, 
 58.34  including any specific commitments from third parties to 
 58.35  construct improvements on the site; 
 58.36     (6) the manner in which the municipality will meet the 
 59.1   local match requirement; and 
 59.2      (7) any additional information or material that the 
 59.3   commissioner prescribes. 
 59.4      (b) An application for a grant under section 116J.554, 
 59.5   subdivision 1, paragraph (b), must include a detailed estimate 
 59.6   of the cost of the actions for which the grant is sought but 
 59.7   need not include the information specified in paragraph (a), 
 59.8   clauses (2) to (4), and (6). 
 59.9      Sec. 11.  Minnesota Statutes 1996, section 116J.554, 
 59.10  subdivision 1, is amended to read: 
 59.11     Subdivision 1.  [AUTHORITY.] (a) The commissioner may make 
 59.12  a grant to an applicant development authority to pay for up to 
 59.13  75 percent of the cleanup costs for a qualifying site, except 
 59.14  the grant may not exceed or 50 percent of the project costs, 
 59.15  whichever is greater.  
 59.16     (b) The commissioner may also make a grant to an applicant 
 59.17  development authority to pay up to 75 percent or $50,000, 
 59.18  whichever is less, toward the cost of performing contaminant 
 59.19  investigations and the development of a response action plan for 
 59.20  a qualifying site. 
 59.21     (c) The determination of whether to make a grant for a 
 59.22  qualifying site is within the sole discretion of the 
 59.23  commissioner, subject to the process provided by this section, 
 59.24  and available unencumbered money in the appropriation.  The 
 59.25  commissioner's decisions and application of the priorities under 
 59.26  section 116J.555 are not subject to judicial review, except for 
 59.27  abuse of discretion. 
 59.28     (d) The total amount of money provided in grants under 
 59.29  paragraph (b) may not exceed $250,000 per fiscal year. 
 59.30     (e) In making grants under paragraph (b), the commissioner 
 59.31  shall give priority to applicants that have not received a grant 
 59.32  under paragraph (a) or section 473.252 during the year ending on 
 59.33  the date of application. 
 59.34     Sec. 12.  [116J.561] [PUBLIC PURPOSE; CREATION OF ACCOUNT.] 
 59.35     The predevelopment of industrial properties requires 
 59.36  significant public funding to transform these sites into 
 60.1   marketable light industrial business parks that are in demand by 
 60.2   private sector manufacturing companies willing to construct new 
 60.3   facilities, hire local residents, and invest in the community.  
 60.4   To address this concern, a contaminated site predevelopment and 
 60.5   job creation account is created in the special revenue fund.  
 60.6   Money in the account is appropriated to the commissioner, to 
 60.7   make grants as provided in section 116J.564 and to pay for the 
 60.8   commissioner's costs in reviewing applications and making grants.
 60.9      Sec. 13.  [116J.562] [DEFINITIONS.] 
 60.10     Subdivision 1.  [APPLICATION.] For the purposes of sections 
 60.11  116J.562 to 116J.564, the following terms have the meanings 
 60.12  given. 
 60.13     Subd. 2.  [DEVELOPMENT AUTHORITY.] "Development authority" 
 60.14  has the meaning given in section 116J.552, subdivision 4. 
 60.15     Subd. 3.  [METROPOLITAN AREA.] "Metropolitan area" has the 
 60.16  meaning given in section 116J.552, subdivision 5. 
 60.17     Subd. 4.  [MUNICIPALITY.] "Municipality" has the meaning 
 60.18  given in section 116J.552, subdivision 6. 
 60.19     Subd. 5.  [QUALIFYING SITE.] "Qualifying site" means a 
 60.20  qualifying site under section 116J.564, subdivision 2. 
 60.21     Subd. 6.  [PREDEVELOPMENT COSTS.] "Predevelopment costs" 
 60.22  means costs of the following:  property acquisition; demolition 
 60.23  of existing improvements; relocation of persons or businesses; 
 60.24  site preparation and grading.  
 60.25     Sec. 14.  [116J.563] [GRANT APPLICATIONS.] 
 60.26     Subdivision 1.  [APPLICATION REQUIRED.] To obtain a 
 60.27  predevelopment and job creation grant, a development authority 
 60.28  shall apply to the commissioner. 
 60.29     Subd. 2.  [REQUIRED CONTENT.] The commissioner shall 
 60.30  prescribe and provide the application form.  An application must 
 60.31  include at least the following information: 
 60.32     (1) identification of the site; 
 60.33     (2) a detailed estimate, along with necessary supporting 
 60.34  evidence, of the total predevelopment costs for the site; 
 60.35     (3) an assessment of the development potential or likely 
 60.36  use of the site, including any specific commitments from third 
 61.1   parties to construct improvements on the site; and 
 61.2      (4) any additional information or material that the 
 61.3   commissioner prescribes. 
 61.4      Sec. 15.  [116J.564] [GRANTS.] 
 61.5      Subdivision 1.  [AUTHORITY.] The commissioner may make 
 61.6   grants to development authorities for predevelopment costs at 
 61.7   qualifying sites.  The determination of whether to make a grant 
 61.8   for a qualifying site is within the sole discretion of the 
 61.9   commissioner subject to the process and criteria provided by 
 61.10  this section and available appropriations.  The commissioner's 
 61.11  decisions and application of the priorities under subdivision 3 
 61.12  are not subject to judicial review, except for abuse of 
 61.13  discretion. 
 61.14     Subd. 2.  [QUALIFYING SITES.] A site qualifies for a grant 
 61.15  under this section if: 
 61.16     (1) the appraised value of the site, after adjusting for 
 61.17  the effect on the value of the presence or possible presence of 
 61.18  contaminants, using accepted appraisal methodology (i) is less 
 61.19  than 50 percent of the estimated cleanup costs for the site or 
 61.20  (ii) is less than or equal to the estimated cleanup costs for 
 61.21  the site and the cleanup costs equal or exceed $3 per square 
 61.22  foot for the site; and 
 61.23     (2) after completion of the grant-funded project, it is 
 61.24  expected that the site will be further improved in a manner that 
 61.25  complies with the conditions in subdivision 4. 
 61.26     Subd. 3.  [PRIORITIES] (a) The legislature expects that 
 61.27  applications for grants will exceed the available appropriations 
 61.28  and the agency will be able to provide grants to only some of 
 61.29  the applicant development authorities. 
 61.30     (b) The agency shall make grants for sites that, in the 
 61.31  commissioner's judgment, provide the highest return in public 
 61.32  benefits for the public costs incurred and that meet all of the 
 61.33  requirements provided by law.  In making this judgment, the 
 61.34  commissioner shall consider the following factors: 
 61.35     (1) the number of jobs expected to be created and retained 
 61.36  after development of a qualified site and the average 
 62.1   anticipated wage levels of such jobs; 
 62.2      (2) the total amount of the requested assistance in 
 62.3   relation to the total full-time jobs which will result from the 
 62.4   predevelopment on the qualified site; 
 62.5      (3) the proportion of the requested assistance to the 
 62.6   estimated total predevelopment costs for a qualified site; 
 62.7      (4) the probability that a qualified site will be 
 62.8   redeveloped without use of public money in the reasonable 
 62.9   foreseeable future; 
 62.10     (5) the proportion of the estimated total costs of 
 62.11  contamination cleanup at a qualified site to the estimated total 
 62.12  of predevelopment costs; 
 62.13     (6) the availability of funds for contamination cleanup; 
 62.14     (7) the current unemployment rate in the municipality in 
 62.15  which the qualified site is located; 
 62.16     (8) the level of reliance on public assistance in the 
 62.17  municipality in which the qualified site is located, as measured 
 62.18  by the applicable county welfare rolls; 
 62.19     (9) the extent of poverty in the municipality in which the 
 62.20  qualified site is located, as measured by percentage of 
 62.21  population living below the poverty line, percentage of children 
 62.22  under 18 years of age living below the poverty line, and 
 62.23  percentage of ethnic minorities living below the poverty line; 
 62.24     (10) any specific commitments from the developer to 
 62.25  construct improvements on the site; and 
 62.26     (11) the presence of any on-site child care facility.  
 62.27     (c) The factors in paragraph (b) are not listed in order of 
 62.28  priority and the commissioner may weigh each factor, depending 
 62.29  upon the facts and circumstances, as the commissioner considers 
 62.30  appropriate.  The absence of a specific commitment from a third 
 62.31  party to construct improvements on a site does not make the site 
 62.32  ineligible for a grant.  The commissioner shall provide a 
 62.33  written statement of the supporting reasons for each grant. 
 62.34     Subd. 4.  [GRANT CONDITIONS.] A grant awarded under this 
 62.35  section is subject to the following conditions applicable to the 
 62.36  use of the site when fully developed: 
 63.1      (1) the site must be used for commercial or industrial 
 63.2   purposes; 
 63.3      (2) an average of 30 percent of the site must be covered by 
 63.4   buildings; 
 63.5      (3) the buildings constructed on the site must have an 
 63.6   average construction value of at least $30 per square foot if 
 63.7   the qualified site is located in the metropolitan area and $20 
 63.8   per square foot if the qualified site is located outside of the 
 63.9   metropolitan area; 
 63.10     (4) the site must provide at least one job for each 1,000 
 63.11  square feet of building space; and 
 63.12     (5) preference for employees hired to work at a business 
 63.13  located at the site must be given to qualified residents of the 
 63.14  municipality in which the site is located.  If at least 60 
 63.15  percent of the employees hired to work at a business are not 
 63.16  residents then the business must certify to the municipality 
 63.17  that a sufficient number of qualified residents are not 
 63.18  available and agree to fill vacant positions with qualified 
 63.19  residents referred to the business by the municipality, until 
 63.20  the 60 percent level is attained. 
 63.21     Subd. 5.  [APPLICATION CYCLES; REPORTS.] (a) In making 
 63.22  grants, the commissioner shall establish semiannual application 
 63.23  deadlines in which grants will be authorized from all or part of 
 63.24  the available appropriations of money in the account. 
 63.25     Sec. 16.  [REPORT ON COORDINATION OF CLEANUP AND 
 63.26  REDEVELOPMENT OF CONTAMINATED PROPERTIES.] 
 63.27     The commissioner of trade and economic development, in 
 63.28  consultation with the commissioners of the pollution control 
 63.29  agency, commerce, agriculture, and revenue, and the director of 
 63.30  the metropolitan council, shall issue a report to the 
 63.31  legislature by January 15, 1998, which includes: 
 63.32     (1) recommendations from the agencies with regard to 
 63.33  establishing and administering an office to provide for the 
 63.34  coordination of programs providing state and regional assistance 
 63.35  in the cleanup and redevelopment of contaminated properties, as 
 63.36  well as any legislative recommendations to provide for an 
 64.1   effective and efficient office; and 
 64.2      (2) a plan for additional changes to existing contaminated 
 64.3   property programs, including the consolidation of programs, to 
 64.4   streamline applications for assistance, ensure efficient and 
 64.5   effective administration of these programs, and provide for an 
 64.6   overall, coordinated state policy for the cleanup and 
 64.7   redevelopment of contaminated properties. 
 64.8      Sec. 17.  [BARRIERS TO CLEANUP OF RESIDENTIAL SITES.] 
 64.9      The commissioner of trade and economic development, in 
 64.10  consultation with the metropolitan council and Minnesota housing 
 64.11  finance agency, shall review the department's and the council's 
 64.12  progress, including grant detail, in making grants under 
 64.13  Minnesota Statutes, sections 116J.554 and 473.252 for the 
 64.14  cleanup of contamination at residential sites or at sites which 
 64.15  will have some residential component after the contamination at 
 64.16  the site is cleaned up and the site is redeveloped and report by 
 64.17  June 30, 1998, to the legislature regarding: 
 64.18     (1) the barriers the department and the council have 
 64.19  encountered in making such grants; and 
 64.20     (2) recommendations to the legislature to increase grant 
 64.21  opportunities for cleanup of contamination at residential sites 
 64.22  or sites with a residential component. 
 64.23     Sec. 18.  [REPEALER.] 
 64.24     Minnesota Statutes 1996, section 115A.908, subdivision 3, 
 64.25  is repealed. 
 64.26     Sec. 19.  [EFFECTIVE DATE.] 
 64.27     Sections 1 to 5 and 7 to to 12 are effective July 1, 1997.  
 64.28  Section 13 is effective the day following final enactment.  
 64.29  Section 6 is effective retroactive to January 1, 1997.  
 64.30                             ARTICLE 3
 64.31       MINNESOTA EMPLOYMENT AND ECONOMIC DEVELOPMENT PROGRAM
 64.32     Section 1.  [268.6715] [1997 MINNESOTA EMPLOYMENT AND 
 64.33  ECONOMIC DEVELOPMENT PROGRAM.] 
 64.34     The 1997 Minnesota employment and economic development 
 64.35  program is established to assist businesses and communities to 
 64.36  create jobs that provide the wages, benefits, and on-the-job 
 65.1   training opportunities necessary to help low-wage workers and 
 65.2   people transitioning from public assistance to get and retain 
 65.3   jobs, and to help their families to move out of poverty.  
 65.4   Employment obtained under this program is not excluded from the 
 65.5   definition of "employment" by section 268.04, subdivision 12, 
 65.6   clause 10, paragraph (d). 
 65.7      Sec. 2.  Minnesota Statutes 1996, section 268.672, 
 65.8   subdivision 6, is amended to read: 
 65.9      Subd. 6.  [ELIGIBLE JOB APPLICANT.] "Eligible job 
 65.10  applicant" means a person who:  (1) has been a resident of this 
 65.11  state for at least one month, (2) is unemployed, (3) is not 
 65.12  receiving and is not qualified to receive reemployment insurance 
 65.13  or workers' compensation, and (4) is determined to be likely to 
 65.14  be available for employment by an eligible employer for the 
 65.15  duration of the job.  
 65.16     For the purposes of this subdivision, a farmer or any 
 65.17  member of a farm family household who can demonstrate severe 
 65.18  household financial need must be considered unemployed. 
 65.19     (1) has attempted to secure a nonsubsidized job by 
 65.20  completing comprehensive job readiness and is: 
 65.21     (i) a temporary assistance for needy families (TANF) 
 65.22  recipient who is making good faith efforts to comply with the 
 65.23  family support agreement as defined under section 256.032, 
 65.24  subdivision 7a, but has failed to find suitable employment; or 
 65.25     (ii) a family general assistance recipient; 
 65.26     (2) is a member of a household supported only by: 
 65.27     (i) a low-income worker; or 
 65.28     (ii) a person who is underemployed as that term is defined 
 65.29  in section 268.61, subdivision 5; or 
 65.30     (3) is a member of a family that is eligible for, but not 
 65.31  receiving public assistance. 
 65.32     Sec. 3.  Minnesota Statutes 1996, section 268.672, is 
 65.33  amended by adding a subdivision to read: 
 65.34     Subd. 13.  [COMPREHENSIVE JOB READINESS.] "Comprehensive 
 65.35  job readiness" means a job search program administered by a 
 65.36  county, its designee, or workforce service area that teaches 
 66.1   self-esteem, marketable work habits, job-seeking skills, and 
 66.2   life-management skills, and may include job retention services. 
 66.3      Sec. 4.  Minnesota Statutes 1996, section 268.672, is 
 66.4   amended by adding a subdivision. 
 66.5      Subd. 14.  [ELIGIBLE PROGRAM PARTICIPANT.] "Eligible 
 66.6   program participant" means an eligible job applicant who is 
 66.7   participating in comprehensive job readiness, subsidized 
 66.8   employment, or job retention services.  An individual who has 
 66.9   been dismissed for cause or quit subsidized employment without 
 66.10  good cause is not eligible for subsidized employment under the 
 66.11  program. 
 66.12     Sec. 5.  Minnesota Statutes 1996, section 268.672, is 
 66.13  amended by adding a subdivision to read:  
 66.14     Subd. 15.  [EMPLOYER.] "Employer" means a private or public 
 66.15  employer that: 
 66.16     (1) agrees to create a job that is long term and full time, 
 66.17  except a private nonprofit or public employer may provide a 
 66.18  temporary job; 
 66.19     (2) pays a wage of at least $2 per hour higher than the 
 66.20  minimum wage; and 
 66.21     (3) agrees to retain a participant at the same wage and 
 66.22  benefit level of the wage subsidy period after satisfactory 
 66.23  completion of the subsidy period. 
 66.24     Sec. 6.  Minnesota Statutes 1996, section 268.672, is 
 66.25  amended by adding a subdivision to read: 
 66.26     Subd. 16.  [FULL TIME.] "Full time" means 40 hours of work 
 66.27  per week or any other schedule considered full time by the 
 66.28  employer.  In the case of a temporary assistance to needy 
 66.29  families recipient, "full time" means 40 hours comprised of the 
 66.30  number of hours of work needed to meet the recipient's work 
 66.31  requirement plus the number of hours spent in a training or 
 66.32  education program.  The employer is required to pay and is 
 66.33  eligible to receive the subsidy only for hours worked by the 
 66.34  participant for the employer.  
 66.35     Sec. 7.  Minnesota Statutes 1996, section 268.672, is 
 66.36  amended by adding a subdivision to read: 
 67.1      Subd. 17.  [JOB RETENTION SERVICES.] "Job retention 
 67.2   services" means assistance that would not otherwise be provided 
 67.3   to an eligible job applicant with child care, transportation, 
 67.4   job coaching, employer-employee mediation, and other forms of 
 67.5   support services to help an applicant to transition to 
 67.6   employment and retain a job. 
 67.7      Sec. 8.  Minnesota Statutes 1996, section 268.672, is 
 67.8   amended by adding a subdivision to read: 
 67.9      Subd. 18.  [LOW-INCOME WORKER.] "Low-income worker" means a 
 67.10  worker who earns no more than $1 per hour more than the minimum 
 67.11  wage. 
 67.12     Sec. 9.  Minnesota Statutes 1996, section 268.672, is 
 67.13  amended by adding a subdivision to read: 
 67.14     Subd. 19.  [MINIMUM WAGE.] "Minimum wage" means the greater 
 67.15  of (1) the federal minimum wage in effect on or after September 
 67.16  1, 1997, and (2) the state minimum wage under section 177.24. 
 67.17     Sec. 10.  Minnesota Statutes 1996, section 268.672, is 
 67.18  amended by adding a subdivision to read: 
 67.19     Subd. 20.  [PROGRAM.] "Program" means the 1997 Minnesota 
 67.20  employment and economic development program. 
 67.21     Sec. 11.  Minnesota Statutes 1996, section 268.672, is 
 67.22  amended by adding a subdivision to read: 
 67.23     Subd. 21.  [WORKFORCE SERVICE AREA.] "Workforce service 
 67.24  area" means a service delivery area designated by the governor 
 67.25  under the Job Training Partnership Act, United States Code, 
 67.26  title 29, section 1501, et seq. 
 67.27     Sec. 12.  Minnesota Statutes 1996, section 268.673, 
 67.28  subdivision 3, is amended to read: 
 67.29     Subd. 3.  [DEPARTMENT OF ECONOMIC SECURITY.] The 
 67.30  commissioner shall supervise wage subsidies, comprehensive job 
 67.31  readiness, and job retention services and shall provide 
 67.32  technical assistance to the local service units for the purpose 
 67.33  of delivering wage subsidies counties in their delivery.  
 67.34     Sec. 13.  Minnesota Statutes 1996, section 268.673, 
 67.35  subdivision 4a, is amended to read: 
 67.36     Subd. 4a.  [CONTRACTS WITH SERVICE PROVIDERS COUNTIES.] The 
 68.1   commissioner shall contract directly with a certified local 
 68.2   service provider counties, their designees, or workforce service 
 68.3   areas to deliver wage subsidies, comprehensive job readiness, 
 68.4   and job retention services if (1) each county served by 
 68.5   the provider designee or workforce service area agrees to the 
 68.6   contract and knows the amount of wage subsidy money, 
 68.7   comprehensive job readiness money, and job retention services 
 68.8   money allocated to the county under section 268.6751, and (2) 
 68.9   the provider designee or workforce service area agrees to meet 
 68.10  regularly with each county being served.  The contracts must 
 68.11  require that no more than ten percent of the contract amount be 
 68.12  expended for administration. 
 68.13     Counties and workforce service areas are encouraged to 
 68.14  designate community-based providers of comprehensive job 
 68.15  readiness and job retention services. 
 68.16     Sec. 14.  Minnesota Statutes 1996, section 268.673, 
 68.17  subdivision 5, is amended to read: 
 68.18     Subd. 5.  [REPORT.] Each entity county delivering wage 
 68.19  subsidies, comprehensive job readiness, and job retention 
 68.20  services shall report to the commissioner on a quarterly basis: 
 68.21     (1) the number of persons placed in private sector jobs, in 
 68.22  temporary public sector jobs, or in other services; 
 68.23     (2) the outcome for each participant placed in a private 
 68.24  sector job, in a temporary public sector job, or in another 
 68.25  service; 
 68.26     (3) the number and type of employers employing persons 
 68.27  under the program; 
 68.28     (4) the amount of money spent in each local service unit 
 68.29  county for wages, comprehensive job readiness, and job retention 
 68.30  services for each type of employment and each type of other 
 68.31  expense; 
 68.32     (5) the age, educational experience, family status, gender, 
 68.33  priority group status, race, and work experience of each person 
 68.34  in the program; 
 68.35     (6) the amount of wages received by persons while in the 
 68.36  program and 60 days after completing the program; and 
 69.1      (7) for each classification of persons described in clause 
 69.2   (5), the outcome of the wage subsidy placement, the 
 69.3   comprehensive job readiness, and the job retention services, 
 69.4   including length of time employed; nature of employment, whether 
 69.5   private sector, temporary public sector, or other service; and 
 69.6   the hourly wages; and 
 69.7      (8) any other information requested by the commissioner.  
 69.8   Each report must include cumulative information, as well as 
 69.9   information for each quarter. 
 69.10     Data collected on individuals under this subdivision are 
 69.11  private data on individuals as defined in section 13.02, 
 69.12  subdivision 12, except that summary data may be provided under 
 69.13  section 13.05, subdivision 7. 
 69.14     Sec. 15.  Minnesota Statutes 1996, section 268.6751, 
 69.15  subdivision 1, is amended to read: 
 69.16     Subdivision 1.  [WAGE SUBSIDIES ALLOCATION.] Wage subsidy 
 69.17  money, comprehensive job readiness money, and job retention 
 69.18  services money must be allocated to local service units in the 
 69.19  following manner: 
 69.20     (a) The commissioner shall allocate 87.5 percent of the 
 69.21  funds available for allocation to local service units for wage 
 69.22  subsidy programs as follows:  the proportion of the wage subsidy 
 69.23  money available to each local service unit must be based on the 
 69.24  number of unemployed persons in the local service unit for the 
 69.25  most recent six-month period and the number of work readiness 
 69.26  assistance cases and aid to families with dependent children 
 69.27  cases in the local service unit for the most recent six-month 
 69.28  period. 
 69.29     (b) Five percent of the money available for wage subsidy 
 69.30  programs must be allocated at the discretion of the commissioner.
 69.31     (c) Seven and one-half percent of the money available for 
 69.32  wage subsidy programs must be allocated at the discretion of the 
 69.33  commissioner to provide jobs for residents of federally 
 69.34  recognized Indian reservations.  
 69.35     (d) counties in proportion to the number of persons living 
 69.36  at or below the federal poverty threshold in each county.  By 
 70.1   December 31 of each fiscal year, providers and local service 
 70.2   units counties, designees, and workforce service areas receiving 
 70.3   wage subsidy money, comprehensive job readiness money, and job 
 70.4   retention services money shall report to the commissioner on the 
 70.5   use of allocated funds.  The commissioner shall reallocate 
 70.6   uncommitted funds for each fiscal year according to the formula 
 70.7   in paragraph (a) this subdivision. 
 70.8      Sec. 16.  Minnesota Statutes 1996, section 268.677, 
 70.9   subdivision 1, is amended to read: 
 70.10     Subdivision 1.  [WAGE SUBSIDY, COMPREHENSIVE JOB READINESS, 
 70.11  AND JOB RETENTION SERVICES MONEY.] To the extent allowable under 
 70.12  federal and state law, wage subsidy money, comprehensive job 
 70.13  readiness money, and job retention services money must be pooled 
 70.14  and used in combination with money from other employment and 
 70.15  training services or income maintenance and support 
 70.16  services.  At least 75 percent of the money appropriated for 
 70.17  wage subsidies must be used to pay wages for eligible job 
 70.18  applicants.  For each eligible job applicant employed, the 
 70.19  maximum state contribution from any combination of public 
 70.20  assistance grant diversion and employment and training services 
 70.21  governed under this chapter, including wage subsidies, is $4 per 
 70.22  hour for wages and $1 per hour for fringe benefits.  The use of 
 70.23  wage subsidies is limited as follows:  
 70.24     (a) The wage subsidy is $2.50 per hour for wages and up to 
 70.25  $1 per hour for reimbursement of employer-paid benefits for 
 70.26  health care, child care, or transportation expenses for 
 70.27  employers paying an eligible program participant an hourly wage 
 70.28  that is $2 to $2.99 per hour higher than the minimum wage. 
 70.29     (b) The wage subsidy is $4 per hour for wages and up to $1 
 70.30  per hour for reimbursement of employer paid benefits for health 
 70.31  care, child care, or transportation expenses for employers 
 70.32  paying an eligible program participant an hourly wage that is $3 
 70.33  or more per hour higher than the minimum wage. 
 70.34     (c) The wage subsidy for each an eligible job applicant 
 70.35  placed in private or nonprofit employment, the state may 
 70.36  subsidize wages may be paid for a maximum of 1,040 hours over a 
 71.1   period of 26 weeks.  Employers are encouraged to use money from 
 71.2   other sources to provide increased wages to applicants they 
 71.3   employ.  Job retention services may be provided to an eligible 
 71.4   program participant over a period of 78 weeks.  
 71.5      (b) For each eligible job applicant participating in a job 
 71.6   training program and placed in private sector employment, the 
 71.7   state may subsidize wages for a maximum of 1,040 hours over a 
 71.8   period of 52 weeks.  
 71.9      (c) For each eligible job applicant placed in a community 
 71.10  investment program job, the state may provide wage subsidies for 
 71.11  a maximum of 780 hours over a maximum of 26 weeks.  For an 
 71.12  individual placed in a community investment program job, the 
 71.13  county share of the wage subsidy shall be 25 percent.  Counties 
 71.14  may use money from sources other than public assistance and wage 
 71.15  subsidies, including private grants, contributions from 
 71.16  nonprofit corporations and other units of government, and other 
 71.17  state money, to increase the wages or hours of persons employed 
 71.18  in community investment programs.  
 71.19     (d) Notwithstanding the limitations of paragraphs (a) and 
 71.20  (b), money may be used to provide a state contribution for wages 
 71.21  and fringe benefits in private sector jobs for eligible 
 71.22  applicants who had previously held temporary jobs with eligible 
 71.23  government and nonprofit agencies or who had previously held 
 71.24  community investment program jobs for which a state contribution 
 71.25  had been made, and who are among the priority groups established 
 71.26  in section 268.676, subdivision 1.  The use of money under this 
 71.27  paragraph shall be for a maximum of 1,040 hours over a maximum 
 71.28  period of 26 weeks per job applicant. An employer of more than 
 71.29  four full-time employees shall receive wage subsidies for no 
 71.30  more than 25 percent of the employer's full-time workforce. 
 71.31     Sec. 17.  Minnesota Statutes 1996, section 268.681, is 
 71.32  amended to read: 
 71.33     268.681 [BUSINESS EMPLOYMENT.] 
 71.34     Subdivision 1.  [ELIGIBLE BUSINESSES.] A business employer 
 71.35  is an eligible employer if it enters into a written contract, 
 71.36  signed and subscribed to under oath, with a local service 
 72.1   unit county or its contractor designee, containing assurances 
 72.2   that: 
 72.3      (a) funds received by a business shall be used only as 
 72.4   permitted under sections 268.672 to 268.682; 
 72.5      (b) the business has submitted information to the local 
 72.6   service unit county or, its contractor designee, or 
 72.7   workforce service area (1) describing the duties and proposed 
 72.8   compensation of each employee proposed to be hired under the 
 72.9   program; and (2) demonstrating that, with the funds provided 
 72.10  under sections 268.672 to 268.682, the business is likely to 
 72.11  succeed and continue to employ persons hired using wage 
 72.12  subsidies; 
 72.13     (c) the business will use funds exclusively for 
 72.14  compensation and fringe benefits of eligible job applicants and 
 72.15  will provide employees hired with these funds with fringe 
 72.16  benefits and other terms and conditions of employment comparable 
 72.17  to those provided to other employees of the business who do 
 72.18  comparable work; 
 72.19     (d) the funds are necessary to allow the business to begin, 
 72.20  or to employ additional people, expand, or to fill other open 
 72.21  positions but not to fill positions which would be filled even 
 72.22  in the absence of wage subsidies; 
 72.23     (e) the business will cooperate with the local service unit 
 72.24  county and the commissioner in collecting data to assess the 
 72.25  result of wage subsidies and the effectiveness of comprehensive 
 72.26  job readiness and job retention services; and 
 72.27     (f) the business is in compliance with all applicable 
 72.28  affirmative action, fair labor, health, safety, and 
 72.29  environmental standards.  
 72.30     Subd. 1a.  [INELIGIBLE BUSINESSES.] A business employer is 
 72.31  ineligible to participate in the program and is ineligible to 
 72.32  receive wage subsidy money if:  
 72.33     (1) the business is a temporary employment agency; or 
 72.34     (2) the business is a restaurant.  
 72.35     For purposes of this subdivision, "temporary employment 
 72.36  agency" means a business that hires people to work in temporary 
 73.1   positions for employers who are clients of that business.  
 73.2      For purposes of this subdivision, "restaurant" includes, 
 73.3   but is not limited to, fast food restaurants. 
 73.4      Subd. 1b.  [DISCHARGE OF PROGRAM PARTICIPANT.] A program 
 73.5   participant discharged from employment may challenge the 
 73.6   discharge as a violation of subdivision 1. 
 73.7      Subd. 2.  [PRIORITIES.] (a) In allocating funds among 
 73.8   eligible businesses, the local service unit county or its 
 73.9   contractor designee shall give priority to: 
 73.10     (1) businesses that will provide applicants with on-the-job 
 73.11  training and marketable job skills; 
 73.12     (2) businesses engaged in manufacturing; 
 73.13     (2) (3) nonretail businesses that are small businesses as 
 73.14  defined in section 645.445; and 
 73.15     (3) (4) businesses that export products outside the state. 
 73.16     (b) In addition to paragraph (a), a local service unit 
 73.17  county must give priority to businesses that: 
 73.18     (1) have a high potential for growth and long-term job 
 73.19  creation; 
 73.20     (2) are labor intensive; 
 73.21     (3) make high use of local and Minnesota resources; 
 73.22     (4) are under ownership of women and minorities; 
 73.23     (5) make high use of new technology; 
 73.24     (6) produce energy conserving materials or services or are 
 73.25  involved in development of renewable sources of energy; and 
 73.26     (7) have their primary place of business in Minnesota.  
 73.27     Subd. 3.  [PAYBACK.] (a) A business receiving wage 
 73.28  subsidies shall repay 70 percent of the amount initially 
 73.29  received for each eligible job applicant employed, if the 
 73.30  employee does not continue in the employment of the business 
 73.31  beyond the six-month subsidized period.  If the employee 
 73.32  continues in the employment of the business for one year or 
 73.33  longer after the six-month subsidized period, the business need 
 73.34  not repay any of the funds received for that employee's wages.  
 73.35  If the employee continues in the employment of the business for 
 73.36  a period of less than one year after the expiration of the 
 74.1   six-month subsidized period, the business shall receive a 
 74.2   proportional reduction in the amount it must repay. 
 74.3      (b) If an employer dismisses an employee for good cause and 
 74.4   works in good faith with the local service unit or its 
 74.5   contractor to employ and train another person referred by 
 74.6   the local service unit county or, its contractor 
 74.7   designee, or workforce service area, the payback formula shall 
 74.8   apply as if the original person had continued in employment.  
 74.9      (c) If a business receiving funds under the program reduces 
 74.10  the hourly wage after the six-month subsidy, the business must 
 74.11  repay a portion of the subsidy in direct proportion to the 
 74.12  amount that the hourly wage is reduced. 
 74.13     (d) A repayment schedule shall be negotiated and agreed to 
 74.14  by the local service unit county and the business prior to the 
 74.15  disbursement of the funds and is subject to renegotiation.  The 
 74.16  local service unit county shall forward 25 percent of the 
 74.17  payments received under this subdivision to the commissioner on 
 74.18  a monthly basis and shall retain the remaining 75 percent for 
 74.19  local program expenditures.  Notwithstanding section 268.677, 
 74.20  subdivision 2, the local service unit may use up to 20 percent 
 74.21  of its share of the funds returned retain payments received 
 74.22  under this subdivision for any administrative costs associated 
 74.23  with the collection of the funds under this subdivision and for 
 74.24  entering into new wage subsidy agreements.  At least 80 percent 
 74.25  of the local service unit's share of the funds returned under 
 74.26  this subdivision must be used as provided in section 268.677.  
 74.27  The commissioner shall deposit payments forwarded to the 
 74.28  commissioner under this subdivision in the general fund. 
 74.29     (e) If an employer is more than 60 days late in repaying a 
 74.30  subsidy as required in this subdivision, the county may engage a 
 74.31  licensed collection agency or refer the matter to the department 
 74.32  for collection under chapter 16D. 
 74.33     Subd. 5.  [SUCCESSORSHIP.] A contract entered into by an 
 74.34  owner, employer, or manager under the wage subsidy program is 
 74.35  legally binding on any successor owner, employer, or manager. 
 74.36     Sec. 18.  [REPEALER.] 
 75.1      Minnesota Statutes 1996, sections 268.672, subdivision 4; 
 75.2   268.673, subdivision 6; 268.676; 268.677, subdivisions 2 and 3; 
 75.3   268.678; and 268.679, subdivision 3, are repealed. 
 75.4                              ARTICLE 4 
 75.5                     HOUSING AND HOUSING FINANCE 
 75.6   Section 1.  [HOUSING FINANCE AGENCY; APPROPRIATIONS.] 
 75.7      The sums shown in the columns marked "APPROPRIATIONS" are 
 75.8   appropriated from the general fund for transfer to the housing 
 75.9   development fund for the programs specified, to be available for 
 75.10  the fiscal years indicated for each purpose.  The figures 
 75.11  "1997," "1998," and "1999," where used in this act, mean that 
 75.12  the appropriation or appropriations listed under them are 
 75.13  available for the year ending June 30, 1997, June 30, 1998, or 
 75.14  June 30, 1999, respectively.  If the figures are not used, the 
 75.15  appropriations are available for the year ending June 30, 1998, 
 75.16  or June 30, 1999, respectively.  The term "first year" means the 
 75.17  year ending June 30, 1998, and the term "second year" means the 
 75.18  year ending June 30, 1999.  Appropriations for the year ending 
 75.19  June 30, 1997, are in addition to appropriations made in 
 75.20  previous years.  Except as otherwise indicated, this transfer is 
 75.21  part of the agency's permanent budget base. 
 75.22                                             APPROPRIATIONS 
 75.23                                         Available for the Year 
 75.24                                             Ending June 30 
 75.25                                            1998         1999 
 75.26  TOTAL                                $36,594,000    $26,420,000
 75.27  Spending limit on cost of general 
 75.28  administration of agency programs:  
 75.29        1998           1999
 75.30      11,017,000     11,678,000
 75.31  $1,750,000 the first year and 
 75.32  $1,750,000 the second year is for a 
 75.33  rental housing assistance program for 
 75.34  persons with a mental illness or 
 75.35  families with an adult member with a 
 75.36  mental illness under Minnesota 
 75.37  Statutes, section 462A.2097. 
 75.38  A biennial appropriation of $5,750,000 
 75.39  is made in the first year and is for 
 75.40  family homeless prevention and 
 75.41  assistance program under Minnesota 
 75.42  Statutes, section 462A.204, and is 
 75.43  available until June 30, 1999. 
 76.1   Grants to organizations made under this 
 76.2   program may include grants (1) to 
 76.3   organizations providing case management 
 76.4   for persons that need assistance to 
 76.5   rehabilitate their rent history and 
 76.6   find rental housing, and (2) to 
 76.7   organizations that will provide, and 
 76.8   report on the success or failure of, 
 76.9   innovative approaches to housing 
 76.10  persons with poor rental histories, 
 76.11  including, but not limited to, 
 76.12  assisting tenants in correcting tenant 
 76.13  screening reports, developing a single 
 76.14  application fee and process acceptable 
 76.15  to participating landlords, developing 
 76.16  a certification of tenants program 
 76.17  acceptable to participating landlords, 
 76.18  expungement of unlawful detainer 
 76.19  records, and creating a bonding program 
 76.20  to encourage landlords to accept 
 76.21  high-risk tenants with poor rent 
 76.22  histories. 
 76.23  $583,000 the first year and $583,000 
 76.24  the second year is for the foreclosure 
 76.25  prevention and assistance program under 
 76.26  Minnesota Statutes, section 462A.207. 
 76.27  $2,750,000 the first year and 
 76.28  $2,750,000 the second year is for the 
 76.29  rent assistance for family 
 76.30  stabilization program under Minnesota 
 76.31  Statutes, section 462A.205.  Of this 
 76.32  amount, $750,000 each year is a 
 76.33  one-time appropriation and is not added 
 76.34  to the agency's permanent base. 
 76.35  $2,348,000 the first year and 
 76.36  $2,348,000 the second year is for the 
 76.37  housing trust fund, under Minnesota 
 76.38  Statutes, section 462A.201. 
 76.39  $9,918,000 the first year and 
 76.40  $6,493,000 the second year is for the 
 76.41  affordable rental investment fund 
 76.42  program under Minnesota Statutes, 
 76.43  section 462A.21, subdivision 8b.  Of 
 76.44  this amount, $3,300,000 the first year 
 76.45  is a one-time appropriation and is not 
 76.46  added to the agency's permanent base.  
 76.47  Of this amount, $125,000 the first year 
 76.48  is for housing for people with HIV or 
 76.49  AIDS outside of the metropolitan 
 76.50  statistical area and is a one-time 
 76.51  appropriation and is not added to the 
 76.52  agency's permanent base.  
 76.53  To the extent practicable, this 
 76.54  appropriation shall be used so that an 
 76.55  approximately equal number of housing 
 76.56  units are financed in the metropolitan 
 76.57  area, as defined in Minnesota Statutes, 
 76.58  section 473.121, subdivision 2, and in 
 76.59  the nonmetropolitan area. 
 76.60  (a) In the area of the state outside 
 76.61  the metropolitan area, the agency must 
 76.62  work with groups in the funding regions 
 76.63  created under Minnesota Statutes, 
 76.64  section 116J.415, to assist the agency 
 76.65  in identifying the affordable housing 
 77.1   needed in each region in connection 
 77.2   with economic development and 
 77.3   redevelopment efforts and in 
 77.4   establishing priorities for uses of the 
 77.5   affordable rental investment fund.  The 
 77.6   groups must include the regional 
 77.7   development commissioners, the regional 
 77.8   organization selected under Minnesota 
 77.9   Statutes, section 116J.415, the private 
 77.10  industry councils, units of local 
 77.11  government, community action agencies, 
 77.12  the Minnesota housing partnership 
 77.13  network groups, local lenders, 
 77.14  for-profit and nonprofit developers, 
 77.15  and realtors.  In addition to 
 77.16  priorities developed by the group, the 
 77.17  agency must give a preference to 
 77.18  economically viable projects in which 
 77.19  units of local government, area 
 77.20  employers, and the private sector 
 77.21  contribute financial assistance.  
 77.22  (b) In the metropolitan area, the 
 77.23  commissioner shall collaborate with the 
 77.24  metropolitan council to identify the 
 77.25  priorities for use of the affordable 
 77.26  rental investment fund.  Funds 
 77.27  distributed in the metropolitan area 
 77.28  must be used consistent with the 
 77.29  objectives of the metropolitan 
 77.30  development guide, adopted under 
 77.31  Minnesota Statutes, section 473.145.  
 77.32  In addition to the priorities 
 77.33  identified in conjunction with the 
 77.34  metropolitan council, the agency shall 
 77.35  give preference to economically viable 
 77.36  projects that: 
 77.37  (1) include a contribution of financial 
 77.38  resources from units of local 
 77.39  government and area employers; 
 77.40  (2) take into account the availability 
 77.41  of transportation in the community; and 
 77.42  (3) take into account the job training 
 77.43  efforts in the community. 
 77.44  $187,000 the first year and $187,000 
 77.45  the second year is for the urban Indian 
 77.46  housing program under Minnesota 
 77.47  Statutes, section 462A.07, subdivision 
 77.48  15.  
 77.49  $1,683,000 the first year and 
 77.50  $1,683,000 the second year is for the 
 77.51  tribal Indian housing program under 
 77.52  Minnesota Statutes, section 462A.07, 
 77.53  subdivision 14.  
 77.54  $186,000 the first year and $186,000 
 77.55  the second year is for the Minnesota 
 77.56  rural and urban homesteading program 
 77.57  under Minnesota Statutes, section 
 77.58  462A.057.  
 77.59  $340,000 the first year and $240,000 
 77.60  the second year is for nonprofit 
 77.61  capacity building grants under 
 77.62  Minnesota Statutes, section 462A.21, 
 77.63  subdivision 3b.  Of this amount, 
 78.1   $80,000 is for a grant to the Minnesota 
 78.2   housing partnership.  Of this amount, 
 78.3   $150,000 is for equal grants to an 
 78.4   organization in each of the six regions 
 78.5   established under Minnesota Statutes, 
 78.6   section 116J.415, for capacity building 
 78.7   grants.  Of this amount, $50,000 is for 
 78.8   a grant in the metropolitan area, as 
 78.9   defined in Minnesota Statutes, section 
 78.10  473.121, subdivision 2.  Of this 
 78.11  amount, $100,000 the first year is to 
 78.12  develop projects under the neighborhood 
 78.13  land trust program under Minnesota 
 78.14  Statutes, sections 462A.30 and 462A.31, 
 78.15  and is available until June 30, 1999.  
 78.16  The appropriation in the first year for 
 78.17  the neighborhood land trust program is 
 78.18  a one-time appropriation and is not 
 78.19  added to the agency's permanent base.  
 78.20  $4,762,000 the first year and 
 78.21  $4,763,000 the second year is for the 
 78.22  community rehabilitation program under 
 78.23  Minnesota Statutes, section 462A.206.  
 78.24  Of this amount, $500,000 is for 
 78.25  full-cycle home ownership and 
 78.26  purchase-rehabilitation lending 
 78.27  initiatives.  Of this amount, 
 78.28  $1,612,000 the first year and 
 78.29  $1,613,000 the second year are one-time 
 78.30  appropriations and are not added to the 
 78.31  agency's permanent base. 
 78.32  Of this amount, $1,000,000 is for a 
 78.33  grant to acquire, demolish, and remove 
 78.34  substandard multiple-unit residential 
 78.35  rental property or acquire and 
 78.36  reconfigure multiple-unit residential 
 78.37  rental property.  Priority must be 
 78.38  given to projects that result in the 
 78.39  creation of housing opportunities that 
 78.40  will diversify the housing stock and 
 78.41  promote the creation of life-cycle 
 78.42  housing opportunities within the 
 78.43  community.  For the purposes of this 
 78.44  paragraph, "substandard multiple-unit 
 78.45  residential rental property" is 
 78.46  property that meets the definition of 
 78.47  Minnesota Statutes 1996, section 
 78.48  273.1316, subdivision 2.  Displaced 
 78.49  residents must be provided relocation 
 78.50  assistance, as provided in Minnesota 
 78.51  Statutes, sections 117.50 to 117.56.  
 78.52  To the extent allowed by federal law, a 
 78.53  public agency administering a federal 
 78.54  rent subsidy program shall give 
 78.55  priority to persons displaced by grants 
 78.56  under this section. 
 78.57  Of this amount, $200,000 is for a grant 
 78.58  to provide matching funds to an 
 78.59  organization or consortium of 
 78.60  organizations awarded a grant from the 
 78.61  metropolitan livable communities 
 78.62  demonstration program to develop 
 78.63  affordable and life-cycle housing in St.
 78.64  Paul or Minneapolis. 
 78.65  A recipient of funds from the community 
 78.66  rehabilitation program for a project in 
 78.67  a historic preservation district in St. 
 79.1   Paul, must provide assurances to the 
 79.2   agency that the project will conform to 
 79.3   the written historic preservation 
 79.4   guidelines for the district and that 
 79.5   the funding recipient will not seek any 
 79.6   variance to the guidelines.  
 79.7   $4,287,000 the first year and 
 79.8   $4,287,000 the second year is for the 
 79.9   housing rehabilitation and 
 79.10  accessibility program under Minnesota 
 79.11  Statutes, section 462A.05, subdivisions 
 79.12  14a and 15a.  
 79.13  $1,125,000 the first year and 
 79.14  $1,125,000 the second year is for the 
 79.15  home ownership assistance fund under 
 79.16  Minnesota Statutes, section 462A.21, 
 79.17  subdivision 8.  Of this amount, 
 79.18  $425,000 each year is a one-time 
 79.19  appropriation and is not added to the 
 79.20  agency's permanent base. 
 79.21  $25,000 the first year and $25,000 the 
 79.22  second year is for home equity 
 79.23  conversion loan counseling grants under 
 79.24  Minnesota Statutes, section 462A.28. 
 79.25  $50,000 is for the costs of the 
 79.26  advisory task force on lead hazard 
 79.27  reduction, established in section 2.  
 79.28  This is a one-time appropriation and is 
 79.29  not added to the agency's permanent 
 79.30  base. 
 79.31  $100,000 is for the affordable 
 79.32  neighborhood design and development 
 79.33  initiative, in Laws 1995, chapter 224, 
 79.34  section 122.  This is a one-time 
 79.35  appropriation and is not added to the 
 79.36  agency's permanent base. 
 79.37  $750,000 is for a grant to the city of 
 79.38  Landfall to purchase a portion of real 
 79.39  property in the city owned by the 
 79.40  Washington county housing and 
 79.41  redevelopment authority.  The agency 
 79.42  shall not make the grant until the city 
 79.43  of Landfall has secured the balance of 
 79.44  the funds necessary to purchase the 
 79.45  real property from the Washington 
 79.46  county housing and redevelopment 
 79.47  authority.  This is a one-time 
 79.48  appropriation and is not added to the 
 79.49  agency's permanent base. 
 79.50     Sec. 2.  [LEAD HAZARD REDUCTION; ADVISORY TASK FORCE.] 
 79.51     Subdivision 1.  [PURPOSE; DUTIES.] An advisory task force 
 79.52  on lead hazard reduction is established to: 
 79.53     (1) study and propose a program to certify residential 
 79.54  rental property as lead-safe; 
 79.55     (2) study and propose essential maintenance practices and 
 79.56  standard treatments to ensure that a residence remains lead-safe 
 79.57  after certification; 
 80.1      (3) identify the current barriers that cause lead liability 
 80.2   exclusion riders to be added to property owner insurance 
 80.3   liability policies; 
 80.4      (4) identify the legal rights and responsibilities of 
 80.5   landlords to provide lead-safe housing and the legal rights and 
 80.6   responsibilities of both landlords and tenants to maintain 
 80.7   lead-safe property; and 
 80.8      (5) study the legal liability of landlords and tenants when 
 80.9   a child becomes lead poisoned and propose methods to reduce 
 80.10  property owner liability while still protecting the legal rights 
 80.11  of children who become lead poisoned. 
 80.12     The task force shall report its findings and proposals to 
 80.13  the 1998 legislature. 
 80.14     Subd. 2.  [MEMBERSHIP.] Members of the advisory task force 
 80.15  on lead hazard reduction are as follows: 
 80.16     (1) the chairs, or the chairs' designees, of the house of 
 80.17  representatives housing and housing finance division, and the 
 80.18  family and early childhood education finance division; 
 80.19     (2) the chairs, or the chairs' designees, of the senate 
 80.20  jobs, energy, and community development committee, and the 
 80.21  family and early childhood education finance division; 
 80.22     (3) one house member from the minority caucus, appointed by 
 80.23  the speaker, and one senator from the minority caucus, appointed 
 80.24  by the committee on rules and administration; 
 80.25     (4) the commissioner of commerce or the commissioner's 
 80.26  designee; 
 80.27     (5) the commissioner of the housing finance agency or the 
 80.28  commissioner's designee; 
 80.29     (6) the commissioner of health or the commissioner's 
 80.30  designee; and 
 80.31     (7) up to 15 members appointed jointly by the commissioner 
 80.32  of commerce and the commissioner of the housing finance agency 
 80.33  to represent the following interests:  landlords, tenants, 
 80.34  attorneys practicing landlord tenant law, parents of children 
 80.35  with lead poisoning, swab teams, insurers, the education 
 80.36  association, family physicians and pediatricians, realtors, the 
 81.1   Children's Defense Fund, the federal Environmental Protection 
 81.2   Agency, building inspectors, the paint and coatings industry, 
 81.3   and local boards of health. 
 81.4      Subd. 3.  [CHAIR.] The commissioners of the housing finance 
 81.5   agency and the department of commerce shall convene the first 
 81.6   meeting of the advisory task force.  At the advisory task 
 81.7   force's first meeting, the members shall select a member to 
 81.8   serve as chair. 
 81.9      Subd. 4.  [TECHNICAL ASSISTANCE.] The commissioners of 
 81.10  health, commerce, and the housing finance agency and the 
 81.11  attorney general shall provide assistance to the advisory task 
 81.12  force, including technical assistance relating to lead hazards 
 81.13  and the reduction of lead hazards, insurance, landlord-tenant 
 81.14  law, and other assistance as requested by the task force. 
 81.15     Subd. 5.  [EXPENSES; ADMINISTRATIVE SUPPORT.] Members of 
 81.16  the advisory task force must receive per diem and expenses, in 
 81.17  the amount provided in Minnesota Statutes, section 15.059, 
 81.18  subdivision 3.  Members' compensation and other administrative 
 81.19  expenses of the advisory task force must be paid for by the 
 81.20  Minnesota housing finance agency. 
 81.21     Subd. 6.  [EFFECTIVE DATE; EXPIRATION.] This section is 
 81.22  effective the day following final enactment and expires June 30, 
 81.23  1998. 
 81.24     Sec. 3.  [MORATORIUM ON NEW CONSTRUCTION.] 
 81.25     Any local governmental unit or nonprofit organization that 
 81.26  receives funds from the community rehabilitation program under 
 81.27  section 1, or from any other state program, is prohibited from 
 81.28  constructing new housing within the Dayton's Bluff Historic 
 81.29  District in the city of St. Paul for one year after the 
 81.30  effective date of this section.  
 81.31     Sec. 4.  Minnesota Statutes 1996, section 268.38, 
 81.32  subdivision 7, is amended to read: 
 81.33     Subd. 7.  [FUNDING COORDINATION.] Grant recipients shall 
 81.34  combine funds awarded under this section with other funds from 
 81.35  public and private sources.  Programs receiving funds under this 
 81.36  section are also eligible for assistance under section 462A.05, 
 82.1   subdivision 20.  
 82.2      Sec. 5.  [366.152] [PERMITTED USES.] 
 82.3      A manufactured home park, as defined in section 327.14, 
 82.4   subdivision 3, is a conditional use in a zoning district that 
 82.5   allows the construction or placement of a building used or 
 82.6   intended to be used by two or more families. 
 82.7      Sec. 6.  Minnesota Statutes 1996, section 394.25, is 
 82.8   amended by adding a subdivision to read: 
 82.9      Subd. 3b.  [PERMITTED USES.] A manufactured home park, as 
 82.10  defined in section 327.14, subdivision 3, is a conditional use 
 82.11  in a zoning district that allows the construction or placement 
 82.12  of a building used or intended to be used by two or more 
 82.13  families. 
 82.14     Sec. 7.  Minnesota Statutes 1996, section 462.357, is 
 82.15  amended by adding a subdivision to read: 
 82.16     Subd. 1b.  [PERMITTED USES.] A manufactured home park, as 
 82.17  defined in section 327.14, subdivision 3, is a conditional use 
 82.18  in a zoning district that allows the construction or placement 
 82.19  of a building used or intended to be used by two or more 
 82.20  families. 
 82.21     Sec. 8.  Minnesota Statutes 1996, section 462A.05, 
 82.22  subdivision 14d, is amended to read: 
 82.23     Subd. 14d.  [ACCESSIBILITY LOAN PROGRAM.] Rehabilitation 
 82.24  loans authorized under subdivision 14 may be made to eligible 
 82.25  persons and families households without limitations relating to 
 82.26  the maximum incomes of the borrowers. 
 82.27     A person or family household is eligible to receive an 
 82.28  accessibility loan under the following conditions: 
 82.29     (1) the borrower or a member of an individual residing in 
 82.30  the borrower's family requires a level of care provided in a 
 82.31  hospital, skilled nursing facility, or intermediate care 
 82.32  facility for persons with mental retardation or related 
 82.33  conditions; home has a permanent physical or mental condition 
 82.34  that substantially limits one or more major life activities; and 
 82.35     (2) home care is appropriate; and 
 82.36     (3) the improvement to the housing will enable assist the 
 83.1   borrower or a member of the borrower's family to reside 
 83.2   household in residing in the housing. 
 83.3      Sec. 9.  Minnesota Statutes 1996, section 462A.05, 
 83.4   subdivision 30, is amended to read: 
 83.5      Subd. 30.  [AGENCY INVESTMENT IN CERTAIN NOTES AND 
 83.6   MORTGAGES.] It may invest in, purchase, acquire, and take 
 83.7   assignments of existing notes and mortgages not closed for the 
 83.8   purpose of sale to the agency, from lenders that are nonprofit 
 83.9   or nonprofit entities, as defined in the agency's rules, 
 83.10  provided that:  (1) the notes and mortgages evidence loans for 
 83.11  the construction, rehabilitation, purchase, improvement, or 
 83.12  refinancing of residential housing intended for occupancy and 
 83.13  occupied by low- and moderate-income persons and families; and 
 83.14  (2) the loan sellers utilize the funds derived from the 
 83.15  purchases in accordance with the authority contained in section 
 83.16  462A.07, subdivision 12, for the purposes and objectives of 
 83.17  sections 462A.02, 462A.03, 462A.05, 462A.07, and 462A.21; and 
 83.18  (3) the purchases are subject to security and limitations on the 
 83.19  costs and expenses of the loan sellers incidental to the 
 83.20  utilization of the purchase proceeds as the agency may 
 83.21  determine.  The proceeds of the purchases authorized by this 
 83.22  subdivision shall not be subject to the limitations of section 
 83.23  462A.21, subdivisions 4k, 6, 9, and 12 6 and 9.  In addition, it 
 83.24  may invest in, purchase, acquire, and take assignments of 
 83.25  existing federally insured mortgages for multifamily housing, 
 83.26  not closed for the purpose of sale to the agency, from any 
 83.27  banking institution, savings association, or other lender or 
 83.28  financial intermediary approved by the members; provided that 
 83.29  the multifamily housing is benefited by contracts for federal 
 83.30  housing assistance payments. 
 83.31     Sec. 10.  Minnesota Statutes 1996, section 462A.05, 
 83.32  subdivision 39, is amended to read: 
 83.33     Subd. 39.  [EQUITY TAKE-OUT LOANS.] The agency may make 
 83.34  equity take-out loans to owners of section 8 project-based and 
 83.35  section 236 rental property upon which the agency holds a first 
 83.36  mortgage.  The owner of a section 8 project-based rental 
 84.1   property must agree to participate in the section 8 program and 
 84.2   extend the low-income affordability restrictions on the housing 
 84.3   for the maximum term of the section 8 contract.  The owner of 
 84.4   section 236 rental property must agree to participate in the 
 84.5   section 236 interest reduction payments program, to extend any 
 84.6   existing low-income affordability restrictions on the housing, 
 84.7   and to extend any rental assistance payments for the maximum 
 84.8   term permitted under the agreement for rental assistance 
 84.9   payments.  The equity take-out loan must be secured by a 
 84.10  subordinate loan on the property and may include additional 
 84.11  appropriate security determined necessary by the agency. 
 84.12     Sec. 11.  Minnesota Statutes 1996, section 462A.05, is 
 84.13  amended by adding a subdivision to read: 
 84.14     Subd. 41.  [DEMONSTRATION GRANTS.] The agency may make 
 84.15  demonstration grants to owners or managers of multifamily rental 
 84.16  property upon which the agency holds a mortgage for the purpose 
 84.17  of developing or coordinating services that promote the tenant's 
 84.18  ability to live independently, support the tenant's 
 84.19  self-sufficiency, improve the relationship between the tenants 
 84.20  and the community, or that otherwise strengthen the community. 
 84.21     Sec. 12.  Minnesota Statutes 1996, section 462A.13, is 
 84.22  amended to read: 
 84.23     462A.13 [BONDS AND NOTES; PURCHASE AND CANCELLATION BY 
 84.24  AGENCY.] 
 84.25     The agency, subject to such agreements with noteholders or 
 84.26  bondholders as may then exist, shall have power out of any funds 
 84.27  available therefor to purchase notes or bonds of the agency, 
 84.28  which shall thereupon be canceled, either at initial issuance or 
 84.29  at a subsequent date, for cancellation or as an investment of 
 84.30  funds of the agency until required for its authorized purposes.  
 84.31  If so purchased, the notes or bonds shall be purchased at a 
 84.32  price not exceeding (a) if the notes or bonds are then 
 84.33  redeemable, the redemption price then applicable plus accrued 
 84.34  interest to the next interest payment date thereon purchase 
 84.35  date, or (b) if the notes or bonds are not redeemable, the 
 84.36  redemption price applicable on the first date after such 
 85.1   purchase upon which the notes or bonds become subject to 
 85.2   redemption plus accrued interest to such the purchase date.  
 85.3      Sec. 13.  Minnesota Statutes 1996, section 462A.201, 
 85.4   subdivision 2, is amended to read: 
 85.5      Subd. 2.  [LOW-INCOME HOUSING.] (a) The agency may, in 
 85.6   consultation with the advisory committee, use money from the 
 85.7   housing trust fund account to provide loans or grants for 
 85.8   projects for the development, construction, acquisition, 
 85.9   preservation, and rehabilitation of low-income rental and 
 85.10  limited equity cooperative housing units, including temporary 
 85.11  and transitional housing, and homes for ownership.  Loans or 
 85.12  grants for residential housing for migrant farmworkers may be 
 85.13  made under this section.  No more than 20 percent of available 
 85.14  funds may be used for home ownership projects.  
 85.15     (b) A rental or limited equity cooperative permanent 
 85.16  housing project must meet one of the following income tests: 
 85.17     (1) at least 75 percent of the rental and cooperative units 
 85.18  must be rented to or cooperatively owned by persons and families 
 85.19  whose income does not exceed 30 percent of the median family 
 85.20  income for the metropolitan area as defined in section 473.121, 
 85.21  subdivision 2; or 
 85.22     (2) all of the units funded by the housing trust fund 
 85.23  account must be used for the benefit of persons and families 
 85.24  whose income does not exceed 30 percent of the median family 
 85.25  income for the metropolitan area as defined in section 473.121, 
 85.26  subdivision 2. 
 85.27     The median family income may be adjusted for families of 
 85.28  five or more. 
 85.29     (c) Homes for ownership must be owned or purchased by 
 85.30  persons and families whose income does not exceed 50 percent of 
 85.31  the metropolitan area median income, adjusted for family size. 
 85.32     (d) In making the grants, the agency shall determine the 
 85.33  terms and conditions of repayment and the appropriate security, 
 85.34  if any, should repayment be required.  To promote the geographic 
 85.35  distribution of grants and loans, the agency may designate a 
 85.36  portion of the grant or loan awards to be set aside for projects 
 86.1   located in specified congressional districts or other 
 86.2   geographical regions specified by the agency.  The agency may 
 86.3   adopt rules for awarding grants and loans under this subdivision.
 86.4      Sec. 14.  Minnesota Statutes 1996, section 462A.205, is 
 86.5   amended to read: 
 86.6      462A.205 [RENT ASSISTANCE FOR FAMILY STABILIZATION 
 86.7   DEMONSTRATION PROJECT.] 
 86.8      Subdivision 1.  [FAMILY STABILIZATION DEMONSTRATION 
 86.9   PROJECT.] The agency, in consultation with the department of 
 86.10  human services, may establish a rent assistance for family 
 86.11  stabilization demonstration project.  The purpose of the project 
 86.12  is to provide rental assistance to families who, at the time of 
 86.13  initial eligibility for rental assistance under this section, 
 86.14  were receiving public assistance, and had a caretaker parent 
 86.15  participating in a self-sufficiency program and at least one 
 86.16  minor child and to provide rental assistance to families who, at 
 86.17  the time of initial eligibility for rental assistance under this 
 86.18  section, were receiving public assistance, and had a caretaker 
 86.19  parent who had earned income and with at least one minor child.  
 86.20  The demonstration project is limited to counties with high 
 86.21  average housing costs.  The program must offer two options:  a 
 86.22  voucher option and a project-based voucher option.  The funds 
 86.23  may be distributed on a request for proposal basis.  
 86.24     Subd. 2.  [DEFINITIONS.] For the purposes of this section, 
 86.25  the following terms have the meanings given them. 
 86.26     (a) "Caretaker parent" means a parent, relative caretaker, 
 86.27  or minor caretaker as defined by the aid to families with 
 86.28  dependent children program, sections 256.72 to 256.87, or its 
 86.29  successor program. 
 86.30     (b) "County agency" means the agency designated by the 
 86.31  county board to implement financial assistance for current 
 86.32  public assistance programs and for the Minnesota family 
 86.33  investment program statewide. 
 86.34     (c) "Counties with high average housing costs" means 
 86.35  counties whose average federal section 8 fair market rents as 
 86.36  determined by the Department of Housing and Urban Development 
 87.1   are in the highest one-third of average rents in the state. 
 87.2      (c) (d) "Designated rental property" is rental property (1) 
 87.3   that is made available by a self-sufficiency program for use by 
 87.4   participating families and meets federal section 8 existing 
 87.5   quality standards, or (2) that has received federal, state, or 
 87.6   local rental rehabilitation assistance since January 1, 1987, 
 87.7   and meets federal section 8 existing housing quality standards. 
 87.8      (e) "Earned income" for a family receiving rental 
 87.9   assistance under this section means cash or in-kind income 
 87.10  earned through the receipt of wages, salary, commissions, profit 
 87.11  from employment activities, net profit from self-employment 
 87.12  activities, payments made by an employer for regularly accrued 
 87.13  vacation or sick leave, and any other profit from activity 
 87.14  earned through effort or labor. 
 87.15     (f) "Family or participating family" means: 
 87.16     (1) a family with a caretaker parent who is participating 
 87.17  in a self-sufficiency program and with at least one minor child; 
 87.18     (2) a family that, at the time it began receiving rent 
 87.19  assistance under this section, had a caretaker parent 
 87.20  participating in a self-sufficiency program and had at least one 
 87.21  minor child; 
 87.22     (3) a family with a caretaker parent who is receiving 
 87.23  public assistance and has earned income and with at least one 
 87.24  minor child; or 
 87.25     (4) a family that, at the time it began receiving rent 
 87.26  assistance under this section, had a caretaker parent who had 
 87.27  earned income and at least one minor child. 
 87.28     (d) (g) "Gross family income" for a family receiving rental 
 87.29  assistance under this section means the gross amount of the 
 87.30  wages, salaries, social security payments, pensions, workers' 
 87.31  compensation, reemployment insurance, public assistance 
 87.32  payments, alimony, child support, and income from assets 
 87.33  received by the family. 
 87.34     (e) (h) "Local housing organization" means the agency of 
 87.35  local government responsible for administering the Department of 
 87.36  Housing and Urban Development's section 8 existing voucher and 
 88.1   certificate program or a nonprofit or for-profit organization 
 88.2   experienced in housing management. 
 88.3      (f) (i) "Public assistance" means aid to families with 
 88.4   dependent children, or its successor program, family general 
 88.5   assistance, or its successor program, or family work readiness, 
 88.6   or its successor program. 
 88.7      (g) (j) "Self-sufficiency program" means a program operated 
 88.8   by a certified an employment and training service provider as 
 88.9   defined in section 256.736, subdivision 1a, paragraph 
 88.10  (e) chapter 256J, an employability program administered by a 
 88.11  community action agency, or courses of study at an accredited 
 88.12  institution of higher education pursued with at least half-time 
 88.13  student status. 
 88.14     Subd. 3.  [LOCAL HOUSING ORGANIZATION.] The agency may 
 88.15  contract with a local housing organization to administer the 
 88.16  rent assistance under this section.  The agency may pay the 
 88.17  local housing organization an administrative fee.  The 
 88.18  administrative fee may not exceed $40 per unit per month. 
 88.19     Subd. 4.  [AMOUNT AND PAYMENT OF RENT ASSISTANCE.] (a) This 
 88.20  subdivision applies to both the voucher option and the 
 88.21  project-based voucher option.  
 88.22     (b) Within the limits of available appropriations, eligible 
 88.23  families may receive monthly rent assistance for a 36-month 
 88.24  period starting with the month the family first receives rent 
 88.25  assistance under this section.  The amount of the family's 
 88.26  portion of the rental payment is equal to at least 30 percent of 
 88.27  gross income. 
 88.28     (c) The rent assistance must be paid by the local housing 
 88.29  organization to the property owner. 
 88.30     (d) Subject to the limitations in paragraph (e), the amount 
 88.31  of rent assistance is the difference between the rent and the 
 88.32  family's portion of the rental payment. 
 88.33     (e) In no case: 
 88.34     (1) may the amount of monthly rent assistance be more than 
 88.35  $250 for housing located within the metropolitan area, as 
 88.36  defined in section 473.121, subdivision 2, or more than $200 for 
 89.1   housing located outside of the metropolitan area; 
 89.2      (2) may the owner receive more rent for assisted units than 
 89.3   for comparable unassisted units; nor 
 89.4      (3) may the amount of monthly rent assistance be more than 
 89.5   the difference between the family's portion of the rental 
 89.6   payment and the fair market rent for the unit as determined by 
 89.7   the Department of Housing and Urban Development. 
 89.8      Subd. 4a.  [ADDITIONAL AUTHORIZED EXPENSES.] In addition to 
 89.9   the monthly rent assistance authorized under subdivision 4, rent 
 89.10  assistance may include up to $200 for a security deposit for 
 89.11  housing located outside the metropolitan area, as defined in 
 89.12  section 473.121, subdivision 2, and up to $250 for a security 
 89.13  deposit for housing located within the metropolitan area. 
 89.14     Subd. 5.  [VOUCHER OPTION.] At least one-half of the 
 89.15  appropriated funds must be made available for a voucher option.  
 89.16  Under the voucher option, the Minnesota housing finance agency, 
 89.17  in consultation with the department of human services, will 
 89.18  award a number of vouchers to self-sufficiency program 
 89.19  administrators for participating families and to county agencies 
 89.20  for participating families with earned income.  Families may use 
 89.21  the voucher for any rental housing that is certified by the 
 89.22  local housing organization as meeting section 8 existing housing 
 89.23  quality standards. 
 89.24     Subd. 6.  [PROJECT-BASED VOUCHER OPTION.] A portion of the 
 89.25  appropriated funds must be made available for a project-based 
 89.26  voucher option.  Under the project-based voucher option, the 
 89.27  Minnesota housing finance agency, in consultation with the 
 89.28  department of human services, will award a number of vouchers to 
 89.29  self-sufficiency program administrators and to county agencies 
 89.30  for participating families who live in designated rental 
 89.31  property that is certified by a local housing organization as 
 89.32  meeting section 8 existing housing quality standards.  The 
 89.33  Minnesota housing finance agency and local housing organizations 
 89.34  must work with self-sufficiency program administrators to 
 89.35  identify rental property that has received rental rehabilitation 
 89.36  assistance since January 1, 1987.  The agency may set aside a 
 90.1   portion of the funds to be used in connection with rental 
 90.2   rehabilitation projects which will be completed by July 1, 1992. 
 90.3      Subd. 7.  [PROPERTY OWNER.] In order to receive rent 
 90.4   assistance payments, the property owner must enter into a 
 90.5   standard lease agreement with the family which includes a clause 
 90.6   providing for good cause evictions only.  Otherwise, the lease 
 90.7   may be any standard lease agreement.  The agency and local 
 90.8   housing organizations must make model lease agreements available 
 90.9   to participating families and property owners.  
 90.10     Subd. 8.  [AUTHORIZED LEVERAGE OF MONEY.] The agency may 
 90.11  leverage federal program money with program money from the 
 90.12  family stabilization demonstration project authorized under this 
 90.13  section. 
 90.14     Subd. 9.  [VOUCHERS FOR FAMILIES WITH A CARETAKER PARENT 
 90.15  WITH EARNED INCOME.] (a) Applications to provide the rental 
 90.16  assistance for families with a caretaker parent with earned 
 90.17  income under either the voucher or project-based option must be 
 90.18  submitted jointly by a local housing organization and a county 
 90.19  agency.  The application must include a description of how the 
 90.20  caretaker parent participants will be selected. 
 90.21     (b) County agencies awarded vouchers must select the 
 90.22  caretaker parents with earned income whose families will receive 
 90.23  the rent assistance.  The county agency must notify the local 
 90.24  housing organization and the agency if: 
 90.25     (1) the caretaker parent no longer has earned income and is 
 90.26  not in compliance with the caretaker parent's employment plan or 
 90.27  job search plan; and 
 90.28     (2) for a period of six months, the caretaker parent has no 
 90.29  earned income and has failed to comply with the job search 
 90.30  support plan or employment plan. 
 90.31     (c) The county agency must provide the caretaker parent who 
 90.32  has no earned income and is not in compliance with the job 
 90.33  search support plan or employment plan with the notice specified 
 90.34  in Minnesota Rules, part 4900.3379.  The county agency must send 
 90.35  a subsequent notice to the caretaker parent, the local housing 
 90.36  organization, and the Minnesota housing finance agency 60 days 
 91.1   before the termination of rental assistance. 
 91.2      (d) If the local housing organization receives notice from 
 91.3   a county agency that a caretaker parent whose initial 
 91.4   eligibility for rental assistance was based on the receipt of 
 91.5   earned income no longer has earned income and for a period of 
 91.6   six months after the termination of earned income has failed to 
 91.7   comply with the caretaker parent's job search plan or employment 
 91.8   plan, the local housing organization must notify the property 
 91.9   owner that rental assistance may terminate and notify the 
 91.10  caretaker parent of the termination of rental assistance under 
 91.11  Minnesota Rules, part 4900.3380. 
 91.12     (e) The county agency awarded vouchers for families with a 
 91.13  caretaker parent with earned income must comply with the 
 91.14  provisions of Minnesota Rules, part 4900.3377. 
 91.15     (f) For families whose initial eligibility for rental 
 91.16  assistance was based on the receipt of earned income, rental 
 91.17  assistance must be terminated under any of the following 
 91.18  conditions: 
 91.19     (1) the family is evicted from the property for cause; 
 91.20     (2) the caretaker parent no longer has earned income and, 
 91.21  after six months, is not in compliance with the parent's job 
 91.22  search or employment plan; 
 91.23     (3) 30 percent of the family's gross income equals or 
 91.24  exceeds the amount of the housing costs for two or more 
 91.25  consecutive months; 
 91.26     (4) the family has received rental assistance under this 
 91.27  section for a 36-month period; or 
 91.28     (5) the rental unit no longer meets federal section 8 
 91.29  existing housing quality standards, the owner refused to make 
 91.30  necessary repairs or alterations to bring the rental unit into 
 91.31  compliance within a reasonable time, and the caretaker parent 
 91.32  refused to relocate to a qualifying unit. 
 91.33     (g) If a county agency determines that a caretaker parent 
 91.34  no longer has earned income and is not in compliance with the 
 91.35  parent's job search or employment plan, the county agency must 
 91.36  notify the caretaker parent of that determination.  The notice 
 92.1   must be in writing and must explain the effect of not having 
 92.2   earned income or failing to be in compliance with the job search 
 92.3   or employment plan will have on the rental assistance.  The 
 92.4   notice must: 
 92.5      (1) state that rental assistance will end six months after 
 92.6   earned income has ended; 
 92.7      (2) specify the date the rental assistance will end; 
 92.8      (3) explain that after the date specified, the caretaker 
 92.9   parent will be responsible for the total housing costs; 
 92.10     (4) describe the actions the caretaker parent may take to 
 92.11  avoid termination of rental assistance; and 
 92.12     (5) inform the caretaker parent of the caretaker parent's 
 92.13  responsibility to notify the county agency if the caretaker 
 92.14  parent has earned income.  
 92.15     Sec. 15.  Minnesota Statutes 1996, section 462A.206, 
 92.16  subdivision 2, is amended to read: 
 92.17     Subd. 2.  [AUTHORIZATION.] The agency may make grants or 
 92.18  loans to cities or nonprofit organizations for the purposes of 
 92.19  construction, acquisition, rehabilitation, demolition, permanent 
 92.20  financing, refinancing, gap financing of single or multifamily 
 92.21  housing, or full cycle home ownership services, as defined in 
 92.22  section 462A.209, subdivision 2.  Gap financing is financing for 
 92.23  the difference between the cost of the improvement of the 
 92.24  blighted property, including acquisition, demolition, 
 92.25  rehabilitation, and construction, and the market value of the 
 92.26  property upon sale.  The agency shall take into account the 
 92.27  amount of money that the city or nonprofit organization 
 92.28  leverages from other sources in awarding grants and loans.  The 
 92.29  agency shall also consider the extent to which the grant or loan 
 92.30  recipient will coordinate use of the funds with its other 
 92.31  housing-related efforts or other housing-related efforts in the 
 92.32  recipient's geographic area.  The city or nonprofit organization 
 92.33  must indicate in its application how the proposed project is 
 92.34  consistent with the consolidated housing plan.  Not less than 
 92.35  ten days before submitting its application to the agency, a 
 92.36  nonprofit organization must notify the city in which the project 
 93.1   will be located of its intent to apply for funds.  The city may 
 93.2   submit to the agency its written comments on the nonprofit 
 93.3   organization's application and the agency shall consider the 
 93.4   city's comments in reviewing the application.  Cities and 
 93.5   nonprofit organizations may use the grants and loans to 
 93.6   establish revolving loan funds and to provide grants and loans 
 93.7   to eligible mortgagors.  The city or nonprofit organization may 
 93.8   determine the terms and conditions of the grants and loans.  An 
 93.9   agency loan may only be used by a city or nonprofit organization 
 93.10  to make loans. 
 93.11     Sec. 16.  Minnesota Statutes 1996, section 462A.206, 
 93.12  subdivision 4, is amended to read: 
 93.13     Subd. 4.  [DESIGNATED AREAS.] For the purposes of focusing 
 93.14  resources, a city or a nonprofit organization located in a 
 93.15  metropolitan statistical area must designate neighborhoods 
 93.16  within which the grants or loans may be used, and a city or 
 93.17  nonprofit organization located outside of a metropolitan 
 93.18  statistical area must designate a geographic area within which 
 93.19  the grants or loans may be used. 
 93.20     Sec. 17.  [462A.2065] [REPORT ON LOSS OF HOUSING.] 
 93.21     Each year, the commissioner shall report to the chair of 
 93.22  the house of representatives housing and housing finance 
 93.23  division and to the chair of the senate jobs, energy, and 
 93.24  community development committee, the information provided in the 
 93.25  reports made to the commissioner under section 469.0305. 
 93.26     Sec. 18.  Minnesota Statutes 1996, section 462A.207, 
 93.27  subdivision 1, is amended to read: 
 93.28     Subdivision 1.  [ESTABLISHMENT.] The agency shall, within 
 93.29  the limits of available appropriations, establish a mortgage 
 93.30  foreclosure prevention and emergency rental assistance program 
 93.31  to provide assistance to low-income and moderate-income persons 
 93.32  who are facing the loss of their housing due to circumstances 
 93.33  beyond their control.  Priority for assistance under this 
 93.34  section must be given to persons and families at or below 60 
 93.35  percent of area median income, adjusted for family size, as 
 93.36  determined by the department of housing and urban development. 
 94.1      Sec. 19.  Minnesota Statutes 1996, section 462A.207, 
 94.2   subdivision 2, is amended to read: 
 94.3      Subd. 2.  [ADMINISTRATION.] The agency may contract with 
 94.4   community-based, nonprofit organizations that meet the 
 94.5   requirements specified in this section to provide either 
 94.6   mortgage foreclosure assistance or rental assistance, or both.  
 94.7   Preference must be given to nonprofit organizations that 
 94.8   demonstrate the greatest ability to leverage program money with 
 94.9   other sources of funding, or to organizations serving areas 
 94.10  without access to mortgage foreclosure assistance or rental 
 94.11  assistance.  The agency may require an organization to match 
 94.12  program money with other money or resources. 
 94.13     Sec. 20.  Minnesota Statutes 1996, section 462A.207, 
 94.14  subdivision 3, is amended to read: 
 94.15     Subd. 3.  [ORGANIZATION ELIGIBILITY.] A nonprofit 
 94.16  organization must be able to demonstrate that it is qualified to 
 94.17  deliver program services, has relevant expertise in mortgage 
 94.18  foreclosure prevention or landlord and tenant procedures, and is 
 94.19  able to perform the duties required under the program.  An 
 94.20  organization must provide the agency with a detailed description 
 94.21  of how the proposed program would be administered, including the 
 94.22  qualifications of staff.  An organization may not be part of, 
 94.23  nor affiliated with, a mortgage lender nor provide assistance to 
 94.24  a household which occupies a housing unit owned or managed by 
 94.25  the organization. 
 94.26     Sec. 21.  Minnesota Statutes 1996, section 462A.207, 
 94.27  subdivision 4, is amended to read: 
 94.28     Subd. 4.  [SELECTION CRITERIA.] The agency shall take the 
 94.29  following criteria into consideration when determining whether 
 94.30  an organization is qualified to administer the program: 
 94.31     (1) the prior experience of the nonprofit organization in 
 94.32  establishing, administering, and maintaining a mortgage 
 94.33  foreclosure prevention or a rental assistance program; 
 94.34     (2) the documented familiarity of the organization 
 94.35  regarding mortgage foreclosure prevention procedures, landlord 
 94.36  and tenant procedures, and other services available to assist 
 95.1   with preventing the loss of housing; 
 95.2      (3) the reasonableness of the proposed budget in meeting 
 95.3   the program objectives; 
 95.4      (4) the documented ability of the organization to provide 
 95.5   financial assistance; and 
 95.6      (5) the documented ability of the organization to provide 
 95.7   mortgage foreclosure prevention or other financial or tenant 
 95.8   counseling. 
 95.9      Sec. 22.  Minnesota Statutes 1996, section 462A.207, 
 95.10  subdivision 6, is amended to read: 
 95.11     Subd. 6.  [ASSISTANCE.] (a) Program assistance includes 
 95.12  general information, screening, assessment, referral services, 
 95.13  case management, advocacy, and financial assistance to borrowers 
 95.14  who are delinquent on mortgage, or contract for deed, or rent 
 95.15  payments. 
 95.16     (b) Not more than one-half of program funding may be used 
 95.17  for mortgage or financial counseling services. 
 95.18     (c) Financial assistance consists of: 
 95.19     (1) payments for delinquent mortgage or contract for deed 
 95.20  payments, future mortgage or contract for deed payments for a 
 95.21  period of up to six months, property taxes, assessments, 
 95.22  utilities, insurance, home improvement repairs, future rent 
 95.23  payments for a period of up to six months, and relocation costs 
 95.24  if necessary, or other costs necessary to prevent foreclosure; 
 95.25  or. 
 95.26     (2) delinquent rent payments, utility bills, any fees or 
 95.27  costs necessary to redeem the property, future rent payments for 
 95.28  a period of up to six months, and relocation costs if necessary. 
 95.29     (d) An individual or family may receive the lesser of six 
 95.30  months or $4,500 of financial assistance. 
 95.31     Sec. 23.  Minnesota Statutes 1996, section 462A.21, 
 95.32  subdivision 12a, is amended to read: 
 95.33     Subd. 12a.  [PROGRAM MONEY TRANSFER.] Grants authorized 
 95.34  under section 462A.05, subdivision 20, may be made only with 
 95.35  specific appropriations by the legislature, but Unencumbered 
 95.36  balances of money appropriated for the purpose of loans or 
 96.1   grants for agency programs under these subdivisions may be 
 96.2   transferred between programs created by these subdivisions or in 
 96.3   accordance with section 462A.20, subdivision 3. 
 96.4      Sec. 24.  [469.0305] [REPORT ON LOSS OF HOUSING.] 
 96.5      Subdivision 1.  [EFFECTS OF WELFARE REFORM.] A public 
 96.6   agency administering a public housing program or a rent subsidy 
 96.7   program shall report to the commissioner of the housing finance 
 96.8   agency by February 1, each year, beginning in 1998, the 
 96.9   reduction in the number of units or section 8 certificates or 
 96.10  vouchers during the year and an assessment of the reasons for 
 96.11  the reduction, including whether it is due to the state's 
 96.12  welfare reform initiatives. 
 96.13     Subd. 2.  [REDUCTION IN LOW-INCOME HOUSING UNITS.] A public 
 96.14  agency that acquires and demolishes housing occupied by persons 
 96.15  whose incomes are less than 50 percent of the area median income 
 96.16  shall report the number of units demolished to the commissioner 
 96.17  of the housing finance agency.  The report must be submitted to 
 96.18  the commissioner of the housing finance agency no later than 
 96.19  March 15 of the following year. 
 96.20     Sec. 25.  [REPEALER.] 
 96.21     Minnesota Statutes 1996, sections 268.39; 462A.05, 
 96.22  subdivision 20; 462A.206, subdivision 5; 462A.21, subdivisions 
 96.23  4k, 12, and 14, are repealed. 
 96.24     Sec. 26.  [EFFECTIVE DATE.] 
 96.25     Section 2 is effective as provided in that section.  
 96.26  Section 3 is effective the day following final enactment.  The 
 96.27  remainder of this article is effective July 1, 1997. 
 96.28                             ARTICLE 5
 96.29                         CAPITAL INVESTMENT
 96.30     Section 1.  Minnesota Statutes 1996, section 268.917, is 
 96.31  amended to read: 
 96.32     268.917 [EARLY CHILDHOOD LEARNING AND CHILD PROTECTION 
 96.33  FACILITIES.] 
 96.34     The commissioner may make grants to state agencies and 
 96.35  political subdivisions to construct or rehabilitate facilities 
 96.36  for Head Start, early childhood and family education 
 97.1   facilities programs, other early childhood intervention 
 97.2   programs, or demonstration family service centers housing 
 97.3   multiagency collaboratives, with priority to centers in counties 
 97.4   or municipalities with the highest number of children living in 
 97.5   poverty.  The commissioner may also make grants to state 
 97.6   agencies and political subdivisions to construct or rehabilitate 
 97.7   facilities for crisis nurseries or child visitation centers.  
 97.8   The facilities must be owned by the state or a political 
 97.9   subdivision, but may be leased under section 16A.695 to 
 97.10  organizations that operate the programs.  The commissioner shall 
 97.11  prescribe the terms and conditions of the leases.  A grant for 
 97.12  an individual facility must not exceed $200,000 for each program 
 97.13  that is housed in the facility, up to a maximum of $500,000 for 
 97.14  a facility that houses three programs or more.  The commissioner 
 97.15  shall give priority to grants that involve collaboration among 
 97.16  sponsors of programs under this section.  At least 25 percent of 
 97.17  the amounts appropriated for these grants must be used in 
 97.18  conjunction with the youth employment and training programs 
 97.19  operated by the commissioner.  Eligible programs must consult 
 97.20  with appropriate labor organizations to deliver education and 
 97.21  training. 
 97.22     Sec. 2.  Minnesota Statutes 1996, section 446A.04, 
 97.23  subdivision 5, is amended to read: 
 97.24     Subd. 5.  [FEES.] (a) The authority may set and collect 
 97.25  fees for costs incurred by the authority for audits, arbitrage 
 97.26  accounting, and payment of fees charged by the state board of 
 97.27  investment.  The authority may also set and collect fees for 
 97.28  costs incurred by the commissioner, the department of health, 
 97.29  and the pollution control agency, including costs for personnel 
 97.30  and administrative services, for its financings and the 
 97.31  establishment and maintenance of reserve funds.  Fees charged 
 97.32  directly to borrowers upon executing a loan agreement must not 
 97.33  exceed one-half of one percent of the loan amount.  Servicing 
 97.34  fees assessed to loan repayments must not exceed two percent of 
 97.35  the loan repayment.  The disposition of fees collected for costs 
 97.36  incurred by the authority is governed by section 446A.11, 
 98.1   subdivision 13.  The authority shall enter into interagency 
 98.2   agreements to transfer funds into appropriate administrative 
 98.3   accounts established for fees collected under this subdivision 
 98.4   for costs incurred by the commissioner, the department of 
 98.5   health, or the pollution control agency must be credited to the 
 98.6   general fund. 
 98.7      (b) The authority shall annually report to the chairs of 
 98.8   the finance and appropriations committees of the legislature on: 
 98.9      (1) the amount of fees collected under this subdivision for 
 98.10  costs incurred by the authority; 
 98.11     (2) the purposes for which the fee proceeds have been 
 98.12  spent; and 
 98.13     (3) the amount of any remaining balance of fee proceeds. 
 98.14     Sec. 3.  Minnesota Statutes 1996, section 446A.081, 
 98.15  subdivision 1, is amended to read: 
 98.16     Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
 98.17  section, the terms in this subdivision have the meanings given 
 98.18  them.  
 98.19     (b) "Act" means the federal Safe Drinking Water 
 98.20  Infrastructure Financing Act Amendments of 1996, Public Law 
 98.21  Number 104-182. 
 98.22     (c) "Department" means the department of health.  
 98.23     Sec. 4.  Minnesota Statutes 1996, section 446A.081, 
 98.24  subdivision 4, is amended to read: 
 98.25     Subd. 4.  [CAPITALIZATION GRANT AGREEMENT.] The authority 
 98.26  shall enter into an agreement with the administrator of the 
 98.27  United States Environmental Protection Agency to receive 
 98.28  capitalization grants for the fund.  The authority and the 
 98.29  department shall enter into an operating agreement with the 
 98.30  administrator of the United States Environmental Protection 
 98.31  Agency to satisfy the criteria in the act to operate the fund.  
 98.32  The authority and the department may exercise the powers 
 98.33  necessary to comply with the requirements specified in 
 98.34  the agreement agreements and to ensure that loan recipients 
 98.35  comply with all applicable federal and state requirements.  
 98.36     Sec. 5.  Minnesota Statutes 1996, section 446A.081, 
 99.1   subdivision 9, is amended to read: 
 99.2      Subd. 9.  [OTHER USES OF FUND.] The drinking water 
 99.3   revolving loan fund may be used as provided in the act, 
 99.4   including the following uses: 
 99.5      (1) to buy or refinance the debt obligations, at or below 
 99.6   market rates, of public water systems for drinking water 
 99.7   systems, where such debt was incurred after the date of 
 99.8   enactment of the act, for the purposes of construction of the 
 99.9   necessary improvements to comply with the national primary 
 99.10  drinking water regulations under the federal Safe Drinking Water 
 99.11  Act; 
 99.12     (2) to purchase or guarantee insurance for local 
 99.13  obligations to improve credit market access or reduce interest 
 99.14  rates; 
 99.15     (3) to provide a source of revenue or security for the 
 99.16  payment of principal and interest on revenue or general 
 99.17  obligation bonds issued by the authority if the bond proceeds 
 99.18  are deposited in the fund; 
 99.19     (4) to provide loans or loan guarantees for similar 
 99.20  revolving funds established by a governmental unit or state 
 99.21  agency; 
 99.22     (5) to earn interest on fund accounts; and 
 99.23     (6) to pay the reasonable costs incurred by the authority, 
 99.24  the department of trade and economic development, and the 
 99.25  department for conducting activities as authorized and required 
 99.26  under the act up to the limits authorized under the act; and 
 99.27     (7) to develop and administer programs for water system 
 99.28  supervision, source water protection, and related programs 
 99.29  required under the act. 
 99.30     Sec. 6.  Minnesota Statutes 1996, section 446A.12, 
 99.31  subdivision 1, is amended to read: 
 99.32     Subdivision 1.  [BONDING AUTHORITY.] The authority may 
 99.33  issue negotiable bonds in a principal amount that the authority 
 99.34  determines necessary to provide sufficient funds for achieving 
 99.35  its purposes, including the making of loans and purchase of 
 99.36  securities, the payment of interest on bonds of the authority, 
100.1   the establishment of reserves to secure its bonds, the payment 
100.2   of fees to a third party providing credit enhancement, and the 
100.3   payment of all other expenditures of the authority incident to 
100.4   and necessary or convenient to carry out its corporate purposes 
100.5   and powers, but not including the making of grants.  Bonds of 
100.6   the authority may be issued as bonds or notes or in any other 
100.7   form authorized by law.  The principal amount of bonds issued 
100.8   and outstanding under this section at any time may not exceed 
100.9   $450,000,000 $850,000,000, excluding bonds for which refunding 
100.10  bonds or crossover refunding bonds have been issued. 
100.11     Sec. 7.  [DRINKING WATER REVOLVING FUND.] 
100.12     $4,400,000 is appropriated from the general fund to the 
100.13  public facilities authority for the drinking water revolving 
100.14  fund. 
100.15     Sec. 8.  [EFFECTIVE DATE.] 
100.16     Section 1 is effective the day following final enactment.