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; modifying definitions; amending 
  1.12            Minnesota Statutes 1996, sections 44A.01, subdivision 
  1.13            2; 60A.23, subdivision 8; 60A.71, by adding a 
  1.14            subdivision; 60K.06, subdivision 2; 65B.48, 
  1.15            subdivision 3; 72B.04, subdivision 10; 79.253, 
  1.16            subdivision 1; 79.255, by adding a subdivision; 82.21, 
  1.17            subdivision 1; 82B.09, subdivision 1; 115B.03, 
  1.18            subdivision 5; 115C.021, by adding a subdivision; 
  1.19            115C.03, subdivision 9; 115C.08, subdivision 4; 
  1.20            115C.09, subdivision 3, and by adding a subdivision; 
  1.21            115C.13; 116J.01, subdivision 5; 116J.552, subdivision 
  1.22            4; 116J.615, subdivision 1; 116L.04, subdivision 1, 
  1.23            and by adding a subdivision; 116O.05, by adding a 
  1.24            subdivision; 116O.122, subdivision 1; 155A.045, 
  1.25            subdivision 1; 176.181, subdivision 2a; 268.38, 
  1.26            subdivision 7; 268.672, subdivision 6, and by adding 
  1.27            subdivisions; 268.673, subdivisions 3, 4a, and 5; 
  1.28            268.6751, subdivision 1; 268.677, subdivision 1; 
  1.29            268.681; 268.917; 268A.15, subdivisions 2, 6, and by 
  1.30            adding subdivisions; 298.22, by adding a subdivision; 
  1.31            326.86, subdivision 1; 394.25, by adding a 
  1.32            subdivision; 446A.04, subdivision 5; 446A.081, 
  1.33            subdivisions 1, 4, and 9; 446A.12, subdivision 1; 
  1.34            462.357, by adding a subdivision; 462A.05, 
  1.35            subdivisions 14d, 30, 39, and by adding a subdivision; 
  1.36            462A.13; 462A.201, subdivision 2; 462A.205; 462A.206, 
  1.37            subdivisions 2 and 4; 462A.207, subdivisions 1, 2, 3, 
  1.38            4, and 6; 462A.21, subdivision 12a; and 469.305, 
  1.39            subdivision 1; Laws 1997, chapter 85, article 1, 
  1.40            section 39, subdivision 4; proposing coding for new 
  1.41            law in Minnesota Statutes, chapters 45; 79; 116J; 
  1.42            116L; 268; 366; 462A; and 469; repealing Minnesota 
  1.43            Statutes 1996, sections 116J.581; 116J.990, 
  1.44            subdivision 7; 268.39; 268.672, subdivision 4; 
  1.45            268.673, subdivision 6; 268.676; 268.677, subdivisions 
  1.46            2 and 3; 268.678; 268.679, subdivision 3; 462A.05, 
  2.1             subdivision 20; 462A.206, subdivision 5; and 462A.21, 
  2.2             subdivisions 4k, 12, and 14. 
  2.3   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.4                              ARTICLE 1 
  2.5                            APPROPRIATIONS 
  2.6   Section 1.  [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 
  2.7      The sums shown in the columns marked "APPROPRIATIONS" are 
  2.8   appropriated from the general fund, or another named fund, to 
  2.9   the agencies and for the purposes specified in this act, to be 
  2.10  available for the fiscal years indicated for each purpose.  The 
  2.11  figures "1998" and "1999," where used in this act, mean that the 
  2.12  appropriation or appropriations listed under them are available 
  2.13  for the year ending June 30, 1998, or June 30, 1999, 
  2.14  respectively.  The term "first year" means the fiscal year 
  2.15  ending June 30, 1998, and "second year" means the fiscal year 
  2.16  ending June 30, 1999. 
  2.17                          SUMMARY BY FUND
  2.18                            1998          1999           TOTAL
  2.19  General              $195,977,000   $163,741,000   $359,718,000
  2.20  Petroleum Tank
  2.21  Cleanup                   957,000        969,000      1,926,000
  2.22  Trunk Highway             706,000        723,000      1,429,000 
  2.23  Workers' 
  2.24  Compensation           23,095,000     23,130,000     46,225,000
  2.25  Special Revenue         1,120,000      1,125,000      2,245,000
  2.26  Taconite Environmental
  2.27  Protection              1,410,000        -0-          1,410,000
  2.28  TOTAL                $223,265,000   $189,688,000   $412,953,000
  2.29                                             APPROPRIATIONS 
  2.30                                         Available for the Year 
  2.31                                             Ending June 30 
  2.32                                            1998         1999 
  2.33  Sec. 2.  TRADE AND ECONOMIC DEVELOPMENT 
  2.34  Subdivision 1.  Total       
  2.35  Appropriation                          51,419,000    35,983,000
  2.36                Summary by Fund
  2.37  General              50,713,000    35,260,000
  2.38  Trunk Highway           706,000       723,000 
  2.39  The amounts that may be spent from this 
  2.40  appropriation for each program are 
  2.41  specified in the following subdivisions.
  3.1   Subd. 2.  Business and Community 
  3.2   Development
  3.3       35,963,000     20,977,000
  3.4   $7,017,000 the first year and 
  3.5   $6,017,000 the second year is for 
  3.6   Minnesota investment fund grants.  Of 
  3.7   this appropriation, $3,000,000 the 
  3.8   first year and $2,000,000 the second 
  3.9   year are one-time appropriations and 
  3.10  may not be added to the budget base for 
  3.11  the biennium ending June 30, 2001.  Of 
  3.12  this one-time appropriation $1,000,000 
  3.13  the first year is for a single grant 
  3.14  recipient, to be identified by the 
  3.15  commissioner, notwithstanding the 
  3.16  monetary limitation under Minnesota 
  3.17  Statutes, section 116J.8731, 
  3.18  subdivision 5.  This amount may not be 
  3.19  added to the agency's budget base.  
  3.20  This amount is available until June 30, 
  3.21  1999. 
  3.22  $450,000 the first year and $450,000 
  3.23  the second year is for grants to 
  3.24  Advantage Minnesota, Inc.  The funds 
  3.25  are available only if matched on at 
  3.26  least a dollar-for-dollar basis from 
  3.27  other sources.  The commissioner may 
  3.28  release the funds only upon: 
  3.29  (1) certification that matching funds 
  3.30  from each participating organization 
  3.31  are available; and 
  3.32  (2) review and approval by the 
  3.33  commissioner of the proposed operations 
  3.34  plan of Advantage Minnesota, Inc. for 
  3.35  the biennium. 
  3.36  $7,418,000 the first year and 
  3.37  $7,918,000 the second year is for the 
  3.38  job skills partnership program.  If the 
  3.39  appropriation for either year is 
  3.40  insufficient, the appropriation for the 
  3.41  other year is available.  This 
  3.42  appropriation does not cancel.  Of this 
  3.43  amount, $1,500,000 the first year and 
  3.44  $2,000,000 the second year is for the 
  3.45  Pathways program under Minnesota 
  3.46  Statutes, section 116L.04, subdivision 
  3.47  1a. 
  3.48  $250,000 the first year is for a grant 
  3.49  from the department of trade and 
  3.50  economic development to the Software 
  3.51  Technology Center to broaden 
  3.52  industry-related educational and 
  3.53  technological services.  This 
  3.54  appropriation is available upon 
  3.55  documentation of a dollar-for-dollar 
  3.56  match from other sources since the 
  3.57  inception of the Software Technology 
  3.58  Center.  This is a one-time 
  3.59  appropriation and must not be included 
  3.60  in the budget base for the biennium 
  3.61  ending June 30, 2001. 
  3.62  $100,000 the first year is for a 
  3.63  one-time grant to the Duluth Technology 
  4.1   Center.  This appropriation is 
  4.2   available until June 30, 1999. 
  4.3   $25,000 the first year is for a 
  4.4   one-time grant to the city of New 
  4.5   London for improvements to the Little 
  4.6   Theatre.  This appropriation is 
  4.7   available when the city matches the 
  4.8   appropriation with $25,000 from 
  4.9   nonstate sources. 
  4.10  $750,000 the first year is for one or 
  4.11  more grants to the Minnesota Futures 
  4.12  Fund administered by the Minneapolis 
  4.13  Foundation.  The Minneapolis Foundation 
  4.14  shall use these grants to provide 
  4.15  technical assistance grants to 
  4.16  nonprofit organizations to assist them 
  4.17  in redesigning services and 
  4.18  organizational structures in response 
  4.19  to changes in federal and state welfare 
  4.20  policy.  The commissioner shall make 
  4.21  the grants in amounts necessary to 
  4.22  match nonpublic contributions to the 
  4.23  fund on a dollar-for-dollar basis.  
  4.24  This appropriation is available until 
  4.25  June 30, 1999.  This is a one-time 
  4.26  appropriation and may not be included 
  4.27  in the budget base for the biennium 
  4.28  ending June 30, 2001. 
  4.29  $35,000 the first year is for a 
  4.30  one-time appropriation to the Fairfax 
  4.31  economic development authority for roof 
  4.32  replacement.  This appropriation is 
  4.33  available until June 30, 1999. 
  4.34  $2,000,000 the first year is for a 
  4.35  one-time grant to the city of Brooklyn 
  4.36  Center to redevelop the Brookdale 
  4.37  regional center and provide 
  4.38  opportunities for economic development 
  4.39  at or near the center.  The grant must 
  4.40  be used to assist the city in 
  4.41  constructing a series of storm water 
  4.42  retention ponds that will facilitate 
  4.43  the redevelopment and economic 
  4.44  development of the center and nearby 
  4.45  property.  The grant must be on terms 
  4.46  and conditions determined by the 
  4.47  commissioner.  The grant must be 
  4.48  matched by city resources that equal at 
  4.49  least 25 percent of the grant. 
  4.50  $650,000 the first year is for the 
  4.51  taconite mining grant program under 
  4.52  Minnesota Statutes, section 116J.992.  
  4.53  This appropriation is available until 
  4.54  June 30, 1999.  This is a one-time 
  4.55  appropriation and may not be included 
  4.56  in the budget base for the biennium 
  4.57  ending June 30, 2001. 
  4.58  $95,000 the first year and $95,000 the 
  4.59  second year is for grants to county and 
  4.60  district agricultural societies and 
  4.61  associations that are eligible to 
  4.62  receive aid under Minnesota Statutes, 
  4.63  section 38.02.  The commissioner shall 
  4.64  spend this appropriation as grants of 
  4.65  $1,000 for each fair conducted by such 
  5.1   a county and district agricultural 
  5.2   society and association in each year. 
  5.3   $3,000,000 the first year is for a 
  5.4   grant to develop a direct reduction 
  5.5   iron-processing facility in Minnesota.  
  5.6   This appropriation is available until 
  5.7   June 30, 1999.  This is a one-time 
  5.8   appropriation and may not be included 
  5.9   in the budget base for the biennium 
  5.10  ending June 30, 2001. 
  5.11  $500,000 the first year is for 
  5.12  technical assistance under Minnesota 
  5.13  Statutes, section 116J.8745.  This 
  5.14  appropriation is available until June 
  5.15  30, 1999. 
  5.16  $4,444,000 the first year is for state 
  5.17  matching money for federal grants to 
  5.18  capitalize the drinking water revolving 
  5.19  loan fund under Minnesota Statutes, 
  5.20  section 446A.081.  The expenditure is 
  5.21  limited to the minimum amount necessary 
  5.22  to match the allotment of federal money 
  5.23  to Minnesota.  This is a one-time 
  5.24  appropriation and must not be included 
  5.25  in the budget base for the biennium 
  5.26  ending June 30, 2001. 
  5.27  $25,000 the first year is for a 
  5.28  one-time grant to the city of St. Paul 
  5.29  to improve, beautify, and enhance 
  5.30  marked trunk highway No. 5 from 
  5.31  Minneapolis-St.Paul international 
  5.32  airport to interstate highway No. 
  5.33  35-E.  Enhancements may include, among 
  5.34  other things, landscaping, historical 
  5.35  lighting, and signing. 
  5.36  $100,000 the first year is for a 
  5.37  one-time grant to the city of Grey 
  5.38  Eagle for construction of a wastewater 
  5.39  treatment plant. 
  5.40  $526,000 the first year and $537,000 
  5.41  the second year is from fees collected 
  5.42  under Minnesota Statutes, section 
  5.43  446A.04, subdivision 5, to administer 
  5.44  the programs of the public facilities 
  5.45  authority. 
  5.46  $125,000 the first year is for a 
  5.47  one-time demonstration project grant to 
  5.48  the city of Newport for the city to 
  5.49  conduct a study of the economic impact 
  5.50  on the city resulting from regional 
  5.51  infrastructure improvement projects.  
  5.52  The city may retain consultants and 
  5.53  enter into contracts it considers 
  5.54  desirable to conduct the study.  The 
  5.55  elements of the study must include an 
  5.56  alternate economic use study, a fiscal 
  5.57  impact study, an infrastructure impact 
  5.58  study, and a traffic impact study.  The 
  5.59  grant is available only to the extent 
  5.60  that the city provides in-kind 
  5.61  resources or money that provides a 
  5.62  one-to-one match of the grant. 
  5.63  $100,000 the first year is for a grant 
  6.1   to the Minnesota Organization for 
  6.2   Global Professional Assignments, an 
  6.3   independent, nonprofit corporation, for 
  6.4   a program that creates opportunities 
  6.5   for the international professional 
  6.6   development of Minnesota college 
  6.7   graduates and Minnesota college seniors 
  6.8   interested in pursuing careers with 
  6.9   multinational businesses.  This is a 
  6.10  one-time appropriation.  The 
  6.11  appropriation is available for the 
  6.12  fiscal year ending June 30, 1998. 
  6.13  $100,000 the first year and $100,000 
  6.14  the second year is for one-time grants 
  6.15  to the city of New Brighton, as project 
  6.16  coordinator and fiscal agent of the 
  6.17  seven-city coalition, for the 
  6.18  multicommunity business retention and 
  6.19  market expansion project and related 
  6.20  planning efforts linking geographical 
  6.21  information systems, contaminated land 
  6.22  remediation, land use planning, 
  6.23  transportation corridor study, 
  6.24  integration of existing housing stock, 
  6.25  subregional transit and reverse commute 
  6.26  coordination, employment densities, job 
  6.27  training and welfare reform placement 
  6.28  coordination, and commercial and 
  6.29  industrial development.  The coalition 
  6.30  shall share all results and written 
  6.31  reports with the department of trade 
  6.32  and economic development. 
  6.33  $2,000,000 the first year is for 
  6.34  transfer to the rural policy and 
  6.35  development center fund.  This 
  6.36  appropriation does not cancel.  This is 
  6.37  a one-time appropriation and may not be 
  6.38  included in the agency's budget base 
  6.39  for the biennium ending June 30, 2001. 
  6.40  $250,000 the first year and $250,000 
  6.41  the second year is for grants to the 
  6.42  board of the rural policy and 
  6.43  development center for operation of the 
  6.44  center. 
  6.45  $130,000 the first year and $155,000 
  6.46  the second year is for grants to the 
  6.47  metropolitan economic development 
  6.48  association. 
  6.49  $240,000 the first year and $265,000 
  6.50  the second year is for grants to 
  6.51  WomenVenture. 
  6.52  WomenVenture and the metropolitan 
  6.53  economic development association must, 
  6.54  in the first year, develop contacts and 
  6.55  relationships with the regional 
  6.56  initiatives selected under Minnesota 
  6.57  Statutes, section 116J.415, subdivision 
  6.58  3, and a plan to deliver their services 
  6.59  statewide.  In the second year, they 
  6.60  must generally offer their services 
  6.61  statewide. 
  6.62  $500,000 the first year and $500,000 
  6.63  the second year is for grants to the 
  6.64  St. Paul rehabilitation center for its 
  7.1   current programs, including those 
  7.2   related to developing job-seeking 
  7.3   skills and workplace orientation, 
  7.4   intensive job development, functional 
  7.5   work English, and on-site job coaching. 
  7.6   $250,000 in the first year is for a 
  7.7   one-time grant to the Morrison county 
  7.8   rural development finance authority 
  7.9   established under Laws 1982, chapter 
  7.10  437.  The authority must use the grant 
  7.11  only for capital improvements to a 
  7.12  paper and wood products manufacturer in 
  7.13  the county primarily for the purposes 
  7.14  of facility upgrading and expansion of 
  7.15  the manufacturer's capability to 
  7.16  utilize recycled wastepaper as a fiber 
  7.17  source.  Minnesota Statutes, section 
  7.18  116J.991, applies to the grant. 
  7.19  $200,000 the first year is for an 
  7.20  agreement with the Judy Garland 
  7.21  Children's Museum to assist in the 
  7.22  design and construction of a children's 
  7.23  museum.  This amount must be matched by 
  7.24  at least $1,275,000 from nonstate 
  7.25  sources committed by June 30, 1998.  
  7.26  This is a one-time appropriation and 
  7.27  may not be added to the agency's budget 
  7.28  base in future biennia.  
  7.29  Notwithstanding Minnesota Statutes, 
  7.30  section 116J.8731, or any other law to 
  7.31  the contrary, the commissioner shall, 
  7.32  in the commissioner's considerations on 
  7.33  Minnesota investment fund grants in 
  7.34  fiscal year 1998, strongly consider an 
  7.35  application for a $250,000 grant to the 
  7.36  Morrison county rural development 
  7.37  authority established under Laws 1982, 
  7.38  chapter 437, for capital improvements 
  7.39  to a paper and wood products 
  7.40  manufacturer in Morrison county 
  7.41  primarily for the purposes of facility 
  7.42  upgrading and expansion of the 
  7.43  manufacturer's capability to utilize 
  7.44  recycled wastepaper as a fiber source, 
  7.45  thereby achieving the purpose of job 
  7.46  enhancement, stability, and 
  7.47  preservation.  As part of this 
  7.48  consideration, the commissioner shall 
  7.49  confer with the manufacturer, inspect 
  7.50  the manufacturer's facilities, and 
  7.51  conduct an analysis of the 
  7.52  manufacturer's business plan and its 
  7.53  previous and proposed efforts to 
  7.54  achieve these purposes.  The 
  7.55  commissioner shall strongly consider 
  7.56  approving the grant application unless 
  7.57  the commissioner determines that the 
  7.58  grant will not significantly contribute 
  7.59  to achieving these purposes.  The 
  7.60  commissioner must make a determination 
  7.61  on this application by December 1, 1997.
  7.62  $45,000 the first year is for a 
  7.63  one-time grant to the Upper Minnesota 
  7.64  Valley River regional development 
  7.65  commission for development of design 
  7.66  specifications and architectural plans 
  7.67  for a regional visitors center, to be 
  8.1   built on the upper segment of the 
  8.2   Minnesota river corridor within the 
  8.3   designated scenic byway area and in 
  8.4   conjunction with the development of the 
  8.5   Minnesota river corridor trail.  This 
  8.6   appropriation is available until June 
  8.7   30, 1999. 
  8.8   $100,000 the first year and $100,000 
  8.9   the second year is for grants to create 
  8.10  and operate community development 
  8.11  corporations under Minnesota Statutes, 
  8.12  section 116J.982, that target 
  8.13  Asian-Pacific Minnesotans.  One must be 
  8.14  in Hennepin county and one must be in 
  8.15  Ramsey county. 
  8.16  $80,000 the first year and $80,000 the 
  8.17  second year is for one-time grants to 
  8.18  the greater metropolitan area foreign 
  8.19  trade zone commission for the purpose 
  8.20  of promoting foreign trade zones in 
  8.21  Minnesota. 
  8.22  Subd. 3.  Minnesota Trade Office 
  8.23       2,452,000      2,336,000
  8.24  $250,000 the first year and $100,000 
  8.25  the second year is for a multifaceted 
  8.26  program to develop trade with China.  
  8.27  This is a one-time appropriation and 
  8.28  must not be included in the budget base 
  8.29  for the biennium ending June 30, 2001. 
  8.30  The department shall act as the lead 
  8.31  agency in developing a plan for a 
  8.32  coordinated effort to promote Minnesota 
  8.33  internationally.  The commissioner may 
  8.34  appoint an advisory committee and may 
  8.35  seek federal and private funding to 
  8.36  develop and implement the plan. 
  8.37  Subd. 4.  Tourism 
  8.38       8,625,000      8,205,000
  8.39                Summary by Fund
  8.40  General               7,919,000     7,482,000
  8.41  Trunk Highway           706,000       723,000
  8.42  To develop maximum private sector 
  8.43  involvement in tourism, $2,500,000 the 
  8.44  first year and $2,500,00 the second 
  8.45  year of the amounts appropriated for 
  8.46  marketing activities are contingent on 
  8.47  receipt of an equal contribution from 
  8.48  nonstate sources that have been 
  8.49  certified by the commissioner.  Up to 
  8.50  one-half of the match may be given in 
  8.51  in-kind contributions.  This 
  8.52  appropriation may not be spent until 
  8.53  the money is matched. 
  8.54  In order to maximize marketing grant 
  8.55  benefits, the commissioner must give 
  8.56  priority for joint venture marketing 
  8.57  grants to organizations with year-round 
  8.58  sustained tourism activities.  For 
  9.1   programs and projects submitted, the 
  9.2   commissioner must give priority to 
  9.3   those that encompass two or more areas 
  9.4   or that attract nonresident travelers 
  9.5   to the state. 
  9.6   If an appropriation for either year for 
  9.7   grants is not sufficient, the 
  9.8   appropriation for the other year is 
  9.9   available for it. 
  9.10  The commissioner may use grant dollars 
  9.11  or the value of in-kind services to 
  9.12  provide the state contribution for the 
  9.13  partnership program. 
  9.14  Any unexpended money from general fund 
  9.15  appropriations made under this 
  9.16  subdivision does not cancel but must be 
  9.17  placed in a special advertising account 
  9.18  for use by the office of tourism to 
  9.19  purchase additional media. 
  9.20  $329,000 the first year and $329,000 
  9.21  the second year is for the Minnesota 
  9.22  film board.  This appropriation is 
  9.23  available only upon receipt by the 
  9.24  board of $1 in matching contributions 
  9.25  of money or in-kind from nonstate 
  9.26  sources for every $3 provided by this 
  9.27  appropriation. 
  9.28  $500,000 the first year and $500,000 
  9.29  the second year is for grants to the 
  9.30  Minnesota film board for a film 
  9.31  production jobs fund to stimulate 
  9.32  feature film production in Minnesota.  
  9.33  This appropriation is to reimburse film 
  9.34  producers for two to five percent of 
  9.35  documented wages which they paid to 
  9.36  Minnesotans for film production after 
  9.37  January 1, 1997. 
  9.38  $500,000 the first year is for a 
  9.39  one-time grant to the Leroy Neiman 
  9.40  museum of art.  This appropriation is 
  9.41  available on documentation of a 
  9.42  dollar-for-dollar match from other 
  9.43  sources.  This amount may not be added 
  9.44  to the agency's budget base. 
  9.45  $10,000 the first year is for a 
  9.46  one-time grant to the city of St. Louis 
  9.47  Park for public art.  This 
  9.48  appropriation is available on 
  9.49  documentation of a dollar-for-dollar 
  9.50  match from other sources and is 
  9.51  available until June 30, 1999.  $25,000 
  9.52  in the first year is for a one-time 
  9.53  grant to the city of Bloomington for 
  9.54  planning, development, and site 
  9.55  selection of a community tourism center 
  9.56  and theater. 
  9.57  The office of tourism shall expand its 
  9.58  efforts in the 1998-1999 biennium to 
  9.59  market and promote tourism within 
  9.60  Minnesota that emphasizes multicultural 
  9.61  areas and neighborhoods and those areas 
  9.62  and neighborhoods with a high 
  9.63  concentration of recent immigrants. 
 10.1   Subd. 5.  Administration 
 10.2        2,971,000      3,028,000
 10.3   Subd. 6.  Information and Analysis
 10.4        1,408,000      1,437,000
 10.5   Sec. 3.  MINNESOTA TECHNOLOGY, INC.    9,537,000     10,037,000
 10.6   $7,605,000 the first year and 
 10.7   $8,105,000 the second year is for 
 10.8   transfer from the general fund to the 
 10.9   Minnesota Technology, Inc. fund. 
 10.10  $75,000 the first year and $75,000 the 
 10.11  second year is for grants to Minnesota 
 10.12  Inventors Congress. 
 10.13  $694,000 the first year and $694,000 
 10.14  the second year is for grants to 
 10.15  Minnesota Project Innovation.  
 10.16  Minnesota Project Innovation must open 
 10.17  and maintain an office in Northeastern 
 10.18  Minnesota. 
 10.19  $1,500,000 the first year and 
 10.20  $2,000,000 the second year is for a 
 10.21  technology partnership fund to make 
 10.22  investments of $20,000 to $100,000 in 
 10.23  businesses partnering with faculty 
 10.24  members at Minnesota academic 
 10.25  institutions.  Any unencumbered balance 
 10.26  remaining in the first year does not 
 10.27  cancel but is available for the second 
 10.28  year of the biennium. 
 10.29  $950,000 the first year and $950,000 
 10.30  the second year is for grants to the 
 10.31  Natural Resources Research Institute.  
 10.32  $113,000 the first year and $113,000 
 10.33  the second year is for grants to 
 10.34  Minnesota Council for Quality. 
 10.35  $100,000 the first year and $100,000 
 10.36  the second year is for grants to 
 10.37  Minnesota Cold Weather Research Center. 
 10.38  Sec. 4.  WORLD TRADE CENTER CORP.         78,000 
 10.39  $78,000 the first year is to retire the 
 10.40  debt of the Minnesota World Trade 
 10.41  Center.  This is a one-time 
 10.42  appropriation and may not be included 
 10.43  in the budget base for the biennium 
 10.44  ending June 30, 2001.  In addition, the 
 10.45  Minnesota trade office may transfer 
 10.46  $50,000 each year to the World Trade 
 10.47  Center for services to agencies, 
 10.48  nonprofit and public organizations. 
 10.49  Sec. 5.  ECONOMIC SECURITY  
 10.50  Subdivision 1.  Total 
 10.51  Appropriation                         42,067,000     34,110,000
 10.52                Summary by Fund
 10.53  General              41,292,000    33,335,000
 11.1   Special Revenue         775,000       775,000
 11.2   Subd. 2.  Rehabilitation Services
 11.3       19,810,000     19,815,000
 11.4   $1,750,000 the first year and 
 11.5   $1,750,000 the second year is for 
 11.6   centers for independent living. 
 11.7   $500,000 the first year is to provide 
 11.8   services to people with severe 
 11.9   impairment to employment, as defined in 
 11.10  Minnesota Statutes, section 268A.15, 
 11.11  subdivision 1a.  Of this appropriation, 
 11.12  five percent is for administrative 
 11.13  costs.  This is a one-time 
 11.14  appropriation and may not be added to 
 11.15  the budget base in the biennium ending 
 11.16  June 30, 2001. 
 11.17  $323,000 the first year and $823,000 
 11.18  the second year are for employment 
 11.19  support services authorized under 
 11.20  Minnesota Statutes, section 268A.13.  
 11.21  $200,000 the first year and $200,000 
 11.22  the second year is for a grant to the 
 11.23  Minnesota employment center for deaf 
 11.24  and hard-of-hearing people. 
 11.25  Subd. 3.  State Services for the Blind 
 11.26       3,735,000      3,816,000
 11.27  This appropriation may be supplemented 
 11.28  by funds provided by the Friends of the 
 11.29  Communication Center, for support of 
 11.30  Services for the Blind's Communication 
 11.31  Center, which serves all blind and 
 11.32  visually handicapped Minnesotans.  The 
 11.33  commissioner shall report to the 
 11.34  legislature on a biennial basis the 
 11.35  funds provided by the Friends of the 
 11.36  Communication Center. 
 11.37  The commissioner may not require 
 11.38  employees to participate in intensive 
 11.39  blindness sensitivity training in which 
 11.40  the employees are blindfolded or 
 11.41  otherwise simulate blindness, unless 
 11.42  the employee is a manager or counselor; 
 11.43  except that the commissioner may 
 11.44  require the training for up to 14 
 11.45  employees who are not managers or 
 11.46  counselors but have direct contact with 
 11.47  blind clients seeking services, and up 
 11.48  to four employees at the store located 
 11.49  at the state services for the blind. 
 11.50  A person may not serve more than a 
 11.51  total of six years as a member of the 
 11.52  rehabilitation advisory council for the 
 11.53  blind or its predecessor, the council 
 11.54  for the blind.  Service prior to the 
 11.55  effective date of this section is 
 11.56  included in the six-year limit, except 
 11.57  that a person currently serving on the 
 11.58  rehabilitation advisory council for the 
 11.59  blind may serve out the person's 
 11.60  current term and serve one additional 
 12.1   term. 
 12.2   Subd. 4.  Workforce Preparation 
 12.3       16,922,000      9,079,000
 12.4                 Summary by Fund
 12.5   General              16,147,000     8,304,000
 12.6   Special Revenue         775,000       775,000
 12.7   $775,000 the first year and $775,000 
 12.8   the second year is for job training 
 12.9   programs under Minnesota Statutes, 
 12.10  sections 268.60 to 268.64.  
 12.11  Notwithstanding Minnesota Statutes, 
 12.12  section 268.022, this appropriation is 
 12.13  from the workforce investment fund.  Of 
 12.14  this amount, $250,000 each year is for 
 12.15  grants to the Ramsey county 
 12.16  opportunities industrialization 
 12.17  center.  The grants are to be used to 
 12.18  (1) offer prevocational training 
 12.19  programs and specific vocational 
 12.20  training programs involving intensive 
 12.21  English as a second language in 
 12.22  instruction, and (2) train for and 
 12.23  locate entry level jobs including, 
 12.24  without limitation, clerical, building 
 12.25  maintenance, manufacturing, home 
 12.26  maintenance and repair, and certified 
 12.27  nursing assistance.  
 12.28  $1,815,000 the first year and 
 12.29  $1,817,000 the second year is for 
 12.30  displaced homemaker programs under 
 12.31  Minnesota Statutes, section 268.96.  
 12.32  $1,050,000 the first year and 
 12.33  $1,050,000 the second year is for youth 
 12.34  intervention programs under Minnesota 
 12.35  Statutes, section 268.30.  Funding from 
 12.36  this appropriation may be used to 
 12.37  expand existing programs to serve unmet 
 12.38  needs and to create new programs in 
 12.39  underserved areas.  This appropriation 
 12.40  is available until spent. 
 12.41  $1,500,000 the first year and 
 12.42  $1,500,000 the second year is to 
 12.43  supplement the activities of the Job 
 12.44  Training Partnership Act Title II-A 
 12.45  program as described in United States 
 12.46  Code, title 29, sections 1501 to 1792.  
 12.47  The commissioner may use up to five 
 12.48  percent of this amount of state 
 12.49  operations.  The balance of the amount 
 12.50  is for services to temporary assistance 
 12.51  for needy families (TANF) recipients.  
 12.52  This is a one-time appropriation and 
 12.53  may not be included in the budget base 
 12.54  for the biennium ending June 30, 2001. 
 12.55  $75,000 the first year is for the PLATO 
 12.56  education partnership pilot program.  
 12.57  If the commissioner favorably evaluates 
 12.58  the demonstration implementation of 
 12.59  PLATO in Fairmont and Owatonna, the 
 12.60  commissioner shall select two other 
 12.61  communities in which PLATO will be 
 13.1   implemented.  Of this amount, not more 
 13.2   than $10 is for the demonstration 
 13.3   implementations.  This appropriation is 
 13.4   available until June 30, 1999.  This is 
 13.5   a one-time appropriation and may not be 
 13.6   included in the agency's budget base 
 13.7   for the biennium ending June 30, 2001. 
 13.8   $250,000 the first year and $250,000 
 13.9   the second year is for the learn to 
 13.10  earn summer youth employment program 
 13.11  established under Laws 1995, chapter 
 13.12  224, sections 5 and 39.  This 
 13.13  appropriation is available until spent. 
 13.14  $10,000 the first year and $10,000 the 
 13.15  second year are for one-time grants to 
 13.16  independent school district No. 2752, 
 13.17  Fairmont, for community initiatives.  
 13.18  Of the money appropriated for the 
 13.19  summer youth program for the first 
 13.20  year, $750,000 is immediately 
 13.21  available.  Any remaining balance of 
 13.22  the immediately available money is 
 13.23  available for the year in which it is 
 13.24  appropriated.  In addition to the base 
 13.25  appropriation, $6,000,000 the first 
 13.26  year is for the summer youth program. 
 13.27  If the appropriation in either year is 
 13.28  insufficient, the appropriation for the 
 13.29  other year is available. 
 13.30  $700,000 the first year and $700,000 
 13.31  the second year is for the Youthbuild 
 13.32  program under Minnesota Statutes, 
 13.33  sections 268.361 to 268.366.  A 
 13.34  Minnesota YOUTHBUILD program funded 
 13.35  under this section as authorized in 
 13.36  Minnesota Statutes, sections 268.361 to 
 13.37  268.367, qualifies as an approved 
 13.38  training program under Minnesota Rules, 
 13.39  part 5200.0930, subpart 1. 
 13.40  $250,000 the first year is for a 
 13.41  one-time grant to the displaced 
 13.42  homemaker program in the department of 
 13.43  economic security and $125,000 the 
 13.44  first year and $125,000 the second year 
 13.45  are for one-time grants to the St. Paul 
 13.46  district 5 planning council.  These 
 13.47  grants are to operate a community work 
 13.48  empowerment support group demonstration 
 13.49  project.  A project consists of 
 13.50  empowerment groups of individuals that 
 13.51  are in the process of obtaining or have 
 13.52  obtained jobs, including those in the 
 13.53  welfare-to-work programs, or are 
 13.54  working out problems of attaining 
 13.55  self-sufficiency.  The groups must 
 13.56  separately meet at least monthly for at 
 13.57  least two hours.  Each group meeting 
 13.58  must include empower mentors whose 
 13.59  responsibility will be to conduct the 
 13.60  meeting.  Group members must be paid at 
 13.61  least $20 for each meeting attended.  
 13.62  The sites will report to the 
 13.63  commissioner on a semiannual basis 
 13.64  regarding the progress achieved at the 
 13.65  meetings.  The purpose of the group is 
 13.66  to: 
 14.1   (1) share information among group 
 14.2   members as to the successes and 
 14.3   problems encountered in the 
 14.4   individual's employment goals; 
 14.5   (2) provide a forum for individuals 
 14.6   involved in moving to self-sufficiency 
 14.7   to share their experiences and 
 14.8   strategies and to support and empower 
 14.9   each other; and 
 14.10  (3) to provide feedback to the 
 14.11  commissioner concerning the best 
 14.12  strategies to achieve the empowerment 
 14.13  support group's objectives. 
 14.14  Notwithstanding Minnesota Statutes, 
 14.15  section 268.022, subdivision 2, the 
 14.16  commissioner of finance shall transfer 
 14.17  to the general fund from the dedicated 
 14.18  fund $3,500,000 in the first year and 
 14.19  $3,500,000 in the second year of the 
 14.20  money collected through the special 
 14.21  assessment established in Minnesota 
 14.22  Statutes, section 268.022, subdivision 
 14.23  1. 
 14.24  $30,000 the first year is for a grant 
 14.25  to the city of Champlin for creating 
 14.26  and expanding curfew enforcement.  The 
 14.27  program must have clearly established 
 14.28  neighborhood, community, and family 
 14.29  measures of success and must report to 
 14.30  the commissioner of economic security 
 14.31  on the achievement of these outcomes on 
 14.32  or before June 30, 1998. 
 14.33  $250,000 the first year is for a 
 14.34  one-time grant to Ramsey county to 
 14.35  expand the sister-to-sister mentoring, 
 14.36  support, and training network program 
 14.37  countywide.  This appropriation is in 
 14.38  addition to money appropriated under 
 14.39  Minnesota Statutes, sections 256J.62 
 14.40  and 256J.76. 
 14.41  $500,000 is for a grant to the center 
 14.42  for victims of torture to design and 
 14.43  develop training to educate health care 
 14.44  and human service workers on levels of 
 14.45  sensitive care and how to make 
 14.46  referrals and to establish a network of 
 14.47  care providers to do pro bono care for 
 14.48  torture survivors so as to enable a 
 14.49  rapid integration into communities and 
 14.50  labor markets by torture victims.  This 
 14.51  is a one-time appropriation requiring a 
 14.52  one-to-one nonstate, in-kind match, and 
 14.53  is available until expended. 
 14.54  Subd. 5.  Workforce Exchange 
 14.55       1,600,000      1,400,000
 14.56  $1,600,000 the first year and 
 14.57  $1,400,000 the second year is 
 14.58  appropriated to leverage federal 
 14.59  dollars in support of the 
 14.60  implementation of the Minnesota 
 14.61  Workforce Center System.  The 
 14.62  department shall report to the 
 15.1   Minnesota office of technology its 
 15.2   plans to coordinate workforce center 
 15.3   development with the Minnesota career 
 15.4   education planning system and other 
 15.5   electronic job banks.  This is a 
 15.6   one-time appropriation and may not be 
 15.7   included in the budget base for the 
 15.8   biennium ending June 30, 2001. 
 15.9   Sec. 6.  HOUSING FINANCE AGENCY       33,380,000     24,976,000
 15.10  The amounts that may be spent from this 
 15.11  appropriation for certain programs are 
 15.12  specified below. 
 15.13  This appropriation is for transfer to 
 15.14  the housing development fund for the 
 15.15  programs specified.  Except as 
 15.16  otherwise indicated, this transfer is 
 15.17  part of the agency's permanent budget 
 15.18  base. 
 15.19  Spending limit on cost of general 
 15.20  administration of agency programs:  
 15.21        1998           1999
 15.22      11,017,000     11,678,000
 15.23  $1,550,000 the first year and 
 15.24  $1,550,000 the second year is for a 
 15.25  rental housing assistance program for 
 15.26  persons with a mental illness or 
 15.27  families with an adult member with a 
 15.28  mental illness under Minnesota 
 15.29  Statutes, section 462A.2097. 
 15.30  A biennial appropriation of $5,750,000 
 15.31  is made in the first year and is for 
 15.32  the family homeless prevention and 
 15.33  assistance program under Minnesota 
 15.34  Statutes, section 462A.204, and is 
 15.35  available until June 30, 1999. 
 15.36  Grants to organizations made under the 
 15.37  family homeless prevention and 
 15.38  assistance program may include grants 
 15.39  (1) to organizations providing case 
 15.40  management for persons that need 
 15.41  assistance to rehabilitate their rent 
 15.42  history and find rental housing, and 
 15.43  (2) to organizations that will provide, 
 15.44  and report on the success or failure 
 15.45  of, innovative approaches to housing 
 15.46  persons with poor rental histories, 
 15.47  including, but not limited to, 
 15.48  assisting tenants in correcting tenant 
 15.49  screening reports, developing a single 
 15.50  application fee and process acceptable 
 15.51  to participating landlords, developing 
 15.52  a certification of tenants program 
 15.53  acceptable to participating landlords, 
 15.54  expungement of unlawful detainer 
 15.55  records, and creating a bonding program 
 15.56  to encourage landlords to accept 
 15.57  high-risk tenants with poor rent 
 15.58  histories. 
 15.59  $583,000 the first year and $583,000 
 15.60  the second year is for the foreclosure 
 15.61  prevention and assistance program under 
 16.1   Minnesota Statutes, section 462A.207. 
 16.2   $2,750,000 the first year and 
 16.3   $2,750,000 the second year is for the 
 16.4   rent assistance for family 
 16.5   stabilization program under Minnesota 
 16.6   Statutes, section 462A.205.  Of this 
 16.7   amount, $750,000 each year is a 
 16.8   one-time appropriation and is not added 
 16.9   to the agency's permanent base. 
 16.10  $2,348,000 the first year and 
 16.11  $2,348,000 the second year is for the 
 16.12  housing trust fund to be deposited in 
 16.13  the housing trust fund account created 
 16.14  under Minnesota Statutes, section 
 16.15  462A.201, and used for the purposes 
 16.16  provided in that section.  Of this 
 16.17  amount, $550,000 each year must be used 
 16.18  for transitional housing. 
 16.19  $8,118,000 the first year and 
 16.20  $6,493,000 the second year is for the 
 16.21  affordable rental investment fund 
 16.22  program under Minnesota Statutes, 
 16.23  section 462A.21, subdivision 8b.  Of 
 16.24  this amount, $1,625,000 the first year 
 16.25  is a one-time appropriation and is not 
 16.26  added to the agency's permanent base.  
 16.27  Of the one-time appropriation, $125,000 
 16.28  the first year is for housing for 
 16.29  people with HIV or AIDS outside of the 
 16.30  Minneapolis-St. Paul metropolitan 
 16.31  statistical area.  
 16.32  To the extent practicable, this 
 16.33  appropriation shall be used so that an 
 16.34  approximately equal number of housing 
 16.35  units are financed in the metropolitan 
 16.36  area, as defined in Minnesota Statutes, 
 16.37  section 473.121, subdivision 2, and in 
 16.38  the nonmetropolitan area. 
 16.39  (a) In the area of the state outside 
 16.40  the metropolitan area, the agency must 
 16.41  work with groups in the funding regions 
 16.42  created under Minnesota Statutes, 
 16.43  section 116J.415, to assist the agency 
 16.44  in identifying the affordable housing 
 16.45  needed in each region in connection 
 16.46  with economic development and 
 16.47  redevelopment efforts and in 
 16.48  establishing priorities for uses of the 
 16.49  affordable rental investment fund.  The 
 16.50  groups must include the regional 
 16.51  development commissioners, the regional 
 16.52  organization selected under Minnesota 
 16.53  Statutes, section 116J.415, the private 
 16.54  industry councils, units of local 
 16.55  government, community action agencies, 
 16.56  the Minnesota housing partnership 
 16.57  network groups, local lenders, 
 16.58  for-profit and nonprofit developers, 
 16.59  and realtors.  In addition to 
 16.60  priorities developed by the group, the 
 16.61  agency must give a preference to 
 16.62  economically viable projects in which 
 16.63  units of local government, area 
 16.64  employers, and the private sector 
 16.65  contribute financial assistance.  
 17.1   (b) In the metropolitan area, the 
 17.2   commissioner shall collaborate with the 
 17.3   metropolitan council to identify the 
 17.4   priorities for use of the affordable 
 17.5   rental investment fund.  Funds 
 17.6   distributed in the metropolitan area 
 17.7   must be used consistent with the 
 17.8   objectives of the metropolitan 
 17.9   development guide, adopted under 
 17.10  Minnesota Statutes, section 473.145.  
 17.11  In addition to the priorities 
 17.12  identified in conjunction with the 
 17.13  metropolitan council, the agency shall 
 17.14  give preference to economically viable 
 17.15  projects that: 
 17.16  (1) include a contribution of financial 
 17.17  resources from units of local 
 17.18  government and area employers; 
 17.19  (2) take into account the availability 
 17.20  of transportation in the community; and 
 17.21  (3) take into account the job training 
 17.22  efforts in the community. 
 17.23  $187,000 the first year and $187,000 
 17.24  the second year is for the urban Indian 
 17.25  housing program under Minnesota 
 17.26  Statutes, section 462A.07, subdivision 
 17.27  15.  
 17.28  $1,683,000 the first year and 
 17.29  $1,683,000 the second year is for the 
 17.30  tribal Indian housing program under 
 17.31  Minnesota Statutes, section 462A.07, 
 17.32  subdivision 14.  
 17.33  $186,000 the first year and $186,000 
 17.34  the second year is for the Minnesota 
 17.35  rural and urban homesteading program 
 17.36  under Minnesota Statutes, section 
 17.37  462A.057.  
 17.38  $340,000 the first year and $240,000 
 17.39  the second year is for nonprofit 
 17.40  capacity building grants under 
 17.41  Minnesota Statutes, section 462A.21, 
 17.42  subdivision 3b.  Of this amount, 
 17.43  $80,000 is for a grant to the Minnesota 
 17.44  housing partnership.  Of this amount, 
 17.45  $150,000 is for equal grants to an 
 17.46  organization in each of the six regions 
 17.47  established under Minnesota Statutes, 
 17.48  section 116J.415, for capacity building 
 17.49  grants.  Of this amount, $50,000 is for 
 17.50  a grant in the metropolitan area, as 
 17.51  defined in Minnesota Statutes, section 
 17.52  473.121, subdivision 2.  Of this 
 17.53  amount, $100,000 the first year is to 
 17.54  develop projects under the neighborhood 
 17.55  land trust program under Minnesota 
 17.56  Statutes, sections 462A.30 and 462A.31, 
 17.57  and is available until June 30, 1999.  
 17.58  The appropriation in the first year for 
 17.59  the neighborhood land trust program is 
 17.60  a one-time appropriation and is not 
 17.61  added to the agency's permanent base.  
 17.62  $4,368,000 the first year and 
 17.63  $3,569,000 the second year is for the 
 18.1   community rehabilitation program under 
 18.2   Minnesota Statutes, section 462A.206.  
 18.3   Of this amount, $250,000 the first year 
 18.4   and $250,000 the second year is for 
 18.5   full-cycle home ownership and 
 18.6   purchase-rehabilitation lending 
 18.7   initiatives.  Of this amount, 
 18.8   $1,218,000 the first year and $419,000 
 18.9   the second year are one-time 
 18.10  appropriations and are not added to the 
 18.11  agency's permanent base. 
 18.12  Of the one-time appropriation for the 
 18.13  community rehabilitation program, 
 18.14  $375,000 the first year and $375,000 
 18.15  the second year is for grants to 
 18.16  acquire, demolish, and remove 
 18.17  substandard multiple-unit residential 
 18.18  rental property or acquire, 
 18.19  rehabilitate, and reconfigure 
 18.20  multiple-unit residential rental 
 18.21  property.  No more than one-half of 
 18.22  money available in a year shall be 
 18.23  given to a single project.  Priority 
 18.24  must be given to projects that result 
 18.25  in the creation of housing 
 18.26  opportunities that will diversify the 
 18.27  housing stock and promote the creation 
 18.28  of life-cycle housing opportunities 
 18.29  within the community.  For the purposes 
 18.30  of this paragraph, "substandard 
 18.31  multiple-unit residential rental 
 18.32  property" is property that meets the 
 18.33  definition of Minnesota Statutes 1996, 
 18.34  section 273.1316, subdivision 2.  
 18.35  Displaced residents must be provided 
 18.36  relocation assistance, as provided in 
 18.37  Minnesota Statutes, sections 117.50 to 
 18.38  117.56.  To the extent allowed by 
 18.39  federal law, a public agency 
 18.40  administering a federal rent subsidy 
 18.41  program shall give priority to persons 
 18.42  displaced by grants under this section. 
 18.43  Of the one-time appropriation for the 
 18.44  community rehabilitation program, 
 18.45  $250,000 the first year is for a grant 
 18.46  to provide funds to an organization or 
 18.47  consortium of organizations 
 18.48  participating in a project that is 
 18.49  awarded a grant from the metropolitan 
 18.50  livable communities demonstration 
 18.51  program to develop affordable and 
 18.52  life-cycle housing in St. Paul or 
 18.53  Minneapolis.  The project must be based 
 18.54  upon a comprehensive community planning 
 18.55  process that creates a long-term plan 
 18.56  to revitalize a neighborhood and must 
 18.57  include compact development with 
 18.58  linkages to employment, transit, and 
 18.59  affordable lifecycle housing. 
 18.60  Of the one-time appropriation for the 
 18.61  community rehabilitation program, up to 
 18.62  $550,000 the first year is for a grant 
 18.63  to the city of Landfall to purchase a 
 18.64  portion of real property in the city 
 18.65  owned by the Washington county housing 
 18.66  and redevelopment authority.  The 
 18.67  agency shall not make the grant until 
 18.68  the city of Landfall has secured the 
 19.1   balance of the funds necessary to 
 19.2   purchase the real property from the 
 19.3   Washington county housing and 
 19.4   redevelopment authority.  The agency 
 19.5   shall require that the land purchased 
 19.6   be restricted to use by current 
 19.7   residents or for affordable housing for 
 19.8   the term of the bonds issued by the 
 19.9   city to purchase the land.  "Affordable"
 19.10  is as defined by the metropolitan 
 19.11  council for the purposes of the 
 19.12  metropolitan livable communities 
 19.13  program.  
 19.14  A recipient of funds from the community 
 19.15  rehabilitation program for a project in 
 19.16  a historic preservation district in St. 
 19.17  Paul, must provide assurances to the 
 19.18  agency that the project will conform to 
 19.19  the written historic preservation 
 19.20  guidelines for the district and that 
 19.21  the funding recipient will not seek any 
 19.22  variance to the guidelines.  
 19.23  $4,287,000 the first year and 
 19.24  $4,287,000 the second year is for the 
 19.25  housing rehabilitation and 
 19.26  accessibility program under Minnesota 
 19.27  Statutes, section 462A.05, subdivisions 
 19.28  14a and 15a.  
 19.29  $1,075,000 the first year and 
 19.30  $1,075,000 the second year is for the 
 19.31  home ownership assistance fund under 
 19.32  Minnesota Statutes, section 462A.21, 
 19.33  subdivision 8.  Of this amount, 
 19.34  $175,000 each year is a one-time 
 19.35  appropriation and is not added to the 
 19.36  agency's permanent base. 
 19.37  $25,000 the first year and $25,000 the 
 19.38  second year is for home equity 
 19.39  conversion counseling grants under 
 19.40  Minnesota Statutes, section 462A.28.  
 19.41  The money must be used for a counseling 
 19.42  service which only counsels for home 
 19.43  equity conversions. 
 19.44  $50,000 is for the costs of the 
 19.45  advisory task force on lead hazard 
 19.46  reduction, established in article 4, 
 19.47  section 1.  This is a one-time 
 19.48  appropriation and is not added to the 
 19.49  agency's permanent base. 
 19.50  $80,000 is for the affordable 
 19.51  neighborhood design and development 
 19.52  initiative, in Laws 1995, chapter 224, 
 19.53  section 122.  This is a one-time 
 19.54  appropriation and is not added to the 
 19.55  agency's permanent base. 
 19.56  Sec. 7.  COMMERCE 
 19.57  Subdivision 1.  Total 
 19.58  Appropriation                         16,004,000     16,367,000
 19.59                Summary by Fund
 19.60  General              14,240,000    14,572,000
 20.1   Petro Cleanup           957,000       969,000 
 20.2   Workers' Compensation   462,000       476,000
 20.3   Special Revenue         345,000       350,000 
 20.4   The amounts that may be spent from this 
 20.5   appropriation for each program are 
 20.6   specified in the following subdivisions.
 20.7   Subd. 2.  Financial Examinations 
 20.8        3,802,000      3,883,000
 20.9   Subd. 3.  Registration and Insurance 
 20.10       4,479,000      4,590,000
 20.11                Summary by Fund
 20.12  General               4,017,000     4,114,000
 20.13  Workers' Compensation   462,000       476,000 
 20.14  Subd. 4.  Enforcement and Licensing 
 20.15       3,945,000      4,031,000
 20.16                Summary by Fund
 20.17  General               3,600,000     3,681,000
 20.18  Special Revenue         345,000       350,000
 20.19  $345,000 the first year and $350,000 
 20.20  the second year is from the real estate 
 20.21  education, research, and recovery 
 20.22  account in the special revenue fund for 
 20.23  the purpose of Minnesota Statutes, 
 20.24  section 82.34, subdivision 6.  If the 
 20.25  appropriation from the special revenue 
 20.26  fund for either year is insufficient, 
 20.27  the appropriation for the other year is 
 20.28  available for it. 
 20.29  Subd. 5.  Petroleum Tank Release 
 20.30  Cleanup Board 
 20.31         957,000        969,000
 20.32  This appropriation is from the 
 20.33  petroleum tank release cleanup fund. 
 20.34  Subd. 6.  Administrative Services 
 20.35       2,821,000      2,894,000 
 20.36  Sec. 8.  BOARD OF ACCOUNTANCY            572,000        587,000
 20.37  Sec. 9.  BOARD OF ARCHITECTURE,
 20.38  ENGINEERING, LAND SURVEYING, 
 20.39  LANDSCAPE ARCHITECTURE, AND 
 20.40  INTERIOR DESIGN                          684,000        700,000 
 20.41  Sec. 10.  BOARD OF BARBER   
 20.42  EXAMINERS                                136,000        140,000
 20.43  Sec. 11.  BOARD OF BOXING                 79,000         82,000
 20.44  Sec. 12.  LABOR AND INDUSTRY 
 21.1   Subdivision 1.  Total             
 21.2   Appropriation                         25,110,000     25,168,000
 21.3                 Summary by Fund
 21.4   General               3,941,000     4,012,000
 21.5   Workers'     
 21.6   Compensation         21,169,000    21,156,000
 21.7   The amounts that may be spent from this 
 21.8   appropriation for each program are 
 21.9   specified in the following subdivisions.
 21.10  Subd. 2.  Workers' Compensation
 21.11      12,152,000     12,160,000
 21.12  This appropriation is from the workers' 
 21.13  compensation fund. 
 21.14  $125,000 the first year and $125,000 
 21.15  the second year is for grants to the 
 21.16  Vinland Center for rehabilitation 
 21.17  service. 
 21.18  Notwithstanding Minnesota Statutes, 
 21.19  section 79.253, the following 
 21.20  appropriations are made from the 
 21.21  assigned risk safety account in the 
 21.22  special compensation fund to the 
 21.23  commissioner of labor and industry: 
 21.24  (a) $77,000 the first year and $73,000 
 21.25  in the second year are for the purpose 
 21.26  of hiring one occupational safety and 
 21.27  health inspector.  The inspector shall 
 21.28  perform safety consultations for 
 21.29  employers through labor-management 
 21.30  committees as defined in Minnesota 
 21.31  Statutes, section 179.81, subdivision 
 21.32  2, under an interagency agreement 
 21.33  entered into between the commissioners 
 21.34  of labor and industry and mediation 
 21.35  services. 
 21.36  (b) $95,000 the first year and $75,000 
 21.37  the second year are for the purpose of 
 21.38  providing information to employers 
 21.39  regarding the prevention of violence in 
 21.40  the workplace. 
 21.41  (c) $25,000 the first year and $25,000 
 21.42  the second year are for the purpose of 
 21.43  safety training and other safety 
 21.44  programs for youth apprentices. 
 21.45  Subd. 3.  Workplace Services 
 21.46       6,393,000      6,713,000
 21.47                Summary by Fund
 21.48  General               2,875,000     2,931,000
 21.49  Workers'
 21.50  Compensation          3,518,000     3,782,000
 21.51  $204,000 the first year and $204,000 
 21.52  the second year is for labor education 
 21.53  and advancement program grants. 
 22.1   Subd. 4.  General Support 
 22.2        6,565,000      6,295,000
 22.3                 Summary by Fund
 22.4   General               1,066,000     1,081,000
 22.5   Workers'     
 22.6   Compensation          5,499,000     5,214,000
 22.7   Subd. 5.  Daedalus Project
 22.8   $2,500,000 appropriated in Laws 1995, 
 22.9   chapter 224, section 12, subdivision 2, 
 22.10  from the workers' compensation fund for 
 22.11  the Daedalus imaging project does not 
 22.12  cancel on June 30, 1997, but is 
 22.13  available until June 30, 1999. 
 22.14  Sec. 13.  BUREAU OF MEDIATION SERVICES 
 22.15  Subdivision 1.  Total
 22.16  Appropriation                          2,061,000      2,074,000
 22.17  The amounts that may be spent from this 
 22.18  appropriation for each program are 
 22.19  specified in the following subdivisions.
 22.20  Subd. 2.  Mediation Services 
 22.21       1,646,000      1,659,000
 22.22  Subd. 3.  Labor Management Cooperation Grants
 22.23         302,000        302,000
 22.24  $302,000 each year is for grants to 
 22.25  area labor-management committees.  Any 
 22.26  unencumbered balance remaining at the 
 22.27  end of the first year does not cancel 
 22.28  but is available for the second year. 
 22.29  Subd. 4.  Office of Dispute Resolution
 22.30         113,000        113,000
 22.31  Sec. 14.  WORKERS' COMPENSATION
 22.32  COURT OF APPEALS                       1,464,000      1,498,000
 22.33  This appropriation is from the workers' 
 22.34  compensation fund. 
 22.35  Sec. 15.  LABOR INTERPRETIVE 
 22.36  CENTER                                   207,000        214,000
 22.37  Sec. 16.  PUBLIC UTILITIES  
 22.38  COMMISSION                             3,326,000      3,400,000
 22.39  The commission shall assess the amount 
 22.40  appropriated in section 25 in addition 
 22.41  to its assessments to public utilities 
 22.42  in fiscal year 1998 under Minnesota 
 22.43  Statutes, section 216B.62, subdivision 
 22.44  3.  This assessment is not subject to 
 22.45  the limits prescribed under that 
 22.46  subdivision. 
 22.47  Sec. 17.  DEPARTMENT OF PUBLIC SERVICE 
 22.48  Subdivision 1.  Total       
 23.1   Appropriation                          9,008,000      9,116,000
 23.2   The amounts that may be spent from this 
 23.3   appropriation for each program are 
 23.4   specified in the following subdivisions.
 23.5   Subd. 2.  Telecommunications
 23.6          785,000        803,000
 23.7   Subd. 3.  Weights and Measures 
 23.8        3,076,000      3,070,000
 23.9   Subd. 4.  Information and Operations 
 23.10  Management 
 23.11       1,501,000      1,532,000
 23.12  Subd. 5.  Energy 
 23.13       3,646,000      3,711,000
 23.14  $588,000 each year is for transfer to 
 23.15  the energy and conservation account 
 23.16  established in Minnesota Statutes, 
 23.17  section 216B.241, subdivision 2a, for 
 23.18  programs administered by the 
 23.19  commissioner of economic security to 
 23.20  improve the energy efficiency of 
 23.21  residential oil-fired heating plants in 
 23.22  low-income households and, when 
 23.23  necessary, to provide weatherization 
 23.24  services to the homes. 
 23.25  Sec. 18.  MINNESOTA HISTORICAL 
 23.26  SOCIETY 
 23.27  Subdivision 1.  Total       
 23.28  Appropriation                         23,315,000     23,476,000
 23.29  The amounts that may be spent from this 
 23.30  appropriation for each program are 
 23.31  specified in the following subdivisions.
 23.32  Subd. 2.  Education and     
 23.33  Outreach                              11,763,000     12,078,000
 23.34  $175,000 the first year and $175,000 
 23.35  the second year in addition to the base 
 23.36  is for the grant-in-aid programs for 
 23.37  county and local historical societies.  
 23.38  The Minnesota historical society shall 
 23.39  set program guidelines and criteria, 
 23.40  and shall require a dollar-for-dollar 
 23.41  match for these grants.  
 23.42  $150,000 the first year and $150,000 
 23.43  the second year is for activities 
 23.44  associated with the sesquicentennial 
 23.45  and millennium celebrations.  This is a 
 23.46  one-time appropriation and may not be 
 23.47  included in the budget base for the 
 23.48  biennium ending June 30, 2001. 
 23.49  Subd. 3.  Preservation and Access
 23.50       8,661,000      8,828,000
 23.51  $300,000 the first year and $300,000 
 23.52  the second year is for historic site 
 24.1   repair and maintenance.  
 24.2   Subd. 4.  Information Program 
 24.3   Delivery 
 24.4        1,995,000      2,097,000
 24.5   $1,900,000 the first year and 
 24.6   $2,000,000 the second year is for 
 24.7   technology improvements that will 
 24.8   expand core capacity and improve 
 24.9   service and program delivery.  If the 
 24.10  appropriation for either year is 
 24.11  insufficient, the appropriation for the 
 24.12  other year is available.  
 24.13  Subd. 5.  Fiscal Agent                   896,000        473,000
 24.14  (a) Sibley House Association 
 24.15          88,000         88,000
 24.16  This appropriation is available for 
 24.17  operation and maintenance of the Sibley 
 24.18  House and related buildings on the Old 
 24.19  Mendota state historic site operated by 
 24.20  the Sibley House Association.  
 24.21  (b) Minnesota International Center 
 24.22          50,000         50,000
 24.23  (c) Minnesota Air National   
 24.24  Guard Museum 
 24.25          19,000 
 24.26  (d) Institute for Learning and
 24.27  Teaching - Project 120
 24.28         110,000        110,000 
 24.29  (e) Minnesota Military Museum
 24.30          29,000        
 24.31  (f) Farmamerica
 24.32         150,000        150,000 
 24.33  Notwithstanding any other law, this 
 24.34  appropriation may be used for 
 24.35  operations. 
 24.36  (g) Bemidji Historical Museum
 24.37          50,000
 24.38  This appropriation is for a one-time 
 24.39  grant to the city of Bemidji to pay up 
 24.40  to one-half of the total costs, 
 24.41  including acquisition, design, other 
 24.42  preliminary work, and construction 
 24.43  costs, for purchase of an abandoned 
 24.44  historic railroad depot in the city and 
 24.45  its conversion to a historical museum 
 24.46  and facility for the Beltrami county 
 24.47  historical society. 
 24.48  (h) Winona County Historical Society
 25.1           75,000
 25.2   For a one-time grant for upgrade of 
 25.3   technology.  The Winona county 
 25.4   historical society shall submit to the 
 25.5   Minnesota historical society a plan for 
 25.6   the use of this grant.  As part of this 
 25.7   project, the Minnesota historical 
 25.8   society, in collaboration with the 
 25.9   Winona county historical society and 
 25.10  other county and local historical 
 25.11  societies, shall develop a plan for the 
 25.12  future use of technology by county and 
 25.13  local historical societies. 
 25.14  (i) Humphrey Museum
 25.15          50,000
 25.16  For a one-time grant for planning, and 
 25.17  to the extent possible, design and 
 25.18  construction drawings for the Hubert H. 
 25.19  Humphrey museum to be located in 
 25.20  Waverly. 
 25.21  (j) Grimm Farmhouse
 25.22          75,000
 25.23  For a one-time grant to Hennepin parks 
 25.24  for the design and stabilization of the 
 25.25  Wendelin Grimm farmhouse.  This 
 25.26  appropriation is available until June 
 25.27  30, 1999.  This appropriation must be 
 25.28  matched by an equal amount from 
 25.29  nonstate sources. 
 25.30  (k) Perpich Memorial
 25.31         100,000
 25.32  For a one-time grant to the friends of 
 25.33  the iron range interpretative center 
 25.34  for planning, design, and construction 
 25.35  of a Rudy Perpich Memorial.  This 
 25.36  appropriation is available until June 
 25.37  30, 1999. 
 25.38  (l) Citizenship Programs
 25.39          75,000         75,000
 25.40  For a grant to the Minnesota center for 
 25.41  community legal education for 
 25.42  citizenship programs in Minnesota 
 25.43  schools.  Of this amount, (1) $30,000 
 25.44  is for Project Citizen, a program to 
 25.45  educate middle school students to 
 25.46  identify, study, and influence 
 25.47  decisions on public policy issues, (2) 
 25.48  $25,000 is for We the People, a program 
 25.49  to promote civic awareness and 
 25.50  responsibility among elementary and 
 25.51  secondary students, and (3) $20,000 is 
 25.52  for the Minnesota youth summit on 
 25.53  violence prevention, a program to build 
 25.54  citizenship skills among middle and 
 25.55  high school students by engaging them 
 25.56  in the lawmaking process. 
 25.57  (m) Fishing Museum
 26.1           25,000 
 26.2   For work, in conjunction with the 
 26.3   commissioners of natural resources and 
 26.4   trade and economic development, on a 
 26.5   feasibility study for a museum housing 
 26.6   fishing-related artifacts, equipment, 
 26.7   and memorabilia.  The director of the 
 26.8   Minnesota Historical Society must 
 26.9   present study recommendations to the 
 26.10  chairs of the appropriate legislative 
 26.11  finance committees and divisions by 
 26.12  January 15, 1998.  This is a one-time 
 26.13  appropriation and may not be included 
 26.14  in the budget base for the biennium 
 26.15  ending June 30, 2001. 
 26.16  (n) Balances Forward
 26.17  Any unencumbered balance remaining in 
 26.18  this subdivision the first year does 
 26.19  not cancel but is available for the 
 26.20  second year of the biennium. 
 26.21  Sec. 19.  MINNESOTA MUNICIPAL
 26.22  BOARD                                    307,000        315,000
 26.23  Sec. 20.  COUNCIL ON BLACK
 26.24  MINNESOTANS                              356,000        286,000
 26.25  $7,500 each year is for expenses 
 26.26  associated with the Dr. Martin Luther 
 26.27  King Day activities. 
 26.28  $75,000 the first year is for planning 
 26.29  of an African Resource Center, a 
 26.30  clearinghouse for information and 
 26.31  referral services for recent immigrants 
 26.32  from Africa.  This is a one-time 
 26.33  appropriation and may not be included 
 26.34  in the agency's budget base for the 
 26.35  biennium ending June 30, 2001.  This 
 26.36  appropriation is available until June 
 26.37  30, 1999.  To the extent that this 
 26.38  appropriation exceeds the amount needed 
 26.39  for planning the center, the balance 
 26.40  may be used for operation of the center.
 26.41  Sec. 21.  COUNCIL ON 
 26.42  CHICANO-LATINO AFFAIRS                   300,000        305,000
 26.43  Sec. 22.  COUNCIL ON
 26.44  ASIAN-PACIFIC MINNESOTANS                272,000        269,000
 26.45  Sec. 23.  INDIAN AFFAIRS
 26.46  COUNCIL                                  523,000        535,000
 26.47  Sec. 24.  IRON RANGE RESOURCES
 26.48  AND REHABILITATION BOARD               1,410,000               
 26.49  This appropriation is from the taconite 
 26.50  environmental protection fund.  This 
 26.51  appropriation is available until June 
 26.52  30, 1999.  The board shall spend this 
 26.53  appropriation for the following 
 26.54  one-time grants: 
 26.55  (a) City of Big Fork
 26.56            75,000
 27.1   For new well construction and 
 27.2   infrastructure for a housing park. 
 27.3   (b) Greenway Joint Recreation Board
 27.4             35,000
 27.5   For electrical system upgrade, Zamboni 
 27.6   room addition, roof replacement, and 
 27.7   other repairs and improvements to the 
 27.8   board's ice arena. 
 27.9   (c) Town of Lone Pine
 27.10            10,000
 27.11  For construction of a baseball field. 
 27.12  (d) City of Nashwauk
 27.13            40,000
 27.14  For construction of water and sewer 
 27.15  lines on Roberts Street. 
 27.16  (e) City of Marble
 27.17            40,000
 27.18  For construction of a water line on 
 27.19  Chernevet Avenue. 
 27.20  (f) City of Eveleth
 27.21           100,000
 27.22  For improvements to the community 
 27.23  hospital's dialysis unit. 
 27.24  (g) City of Aurora
 27.25           100,000
 27.26  For capital improvements to the White 
 27.27  community hospital. 
 27.28  (h) City of Virginia
 27.29           380,000
 27.30  For relocation of the Virginia 
 27.31  rehabilitation center. 
 27.32  (i) City of Buhl
 27.33           180,000
 27.34  For handicapped access improvements to 
 27.35  Martin Hugh high school. 
 27.36  (j) City of Ely
 27.37           200,000
 27.38  For construction of infrastructure in 
 27.39  the city's industrial park. 
 27.40  (k) Chisholm-Hibbing Airport Authority
 27.41           250,000
 28.1   For construction of infrastructure in 
 28.2   the airport industrial park. 
 28.3   Sec. 25.  LEGISLATURE                     50,000               
 28.4   This appropriation is from the general 
 28.5   fund is to be added to any other 
 28.6   appropriation made in the 1997 
 28.7   legislative session to the 
 28.8   legislature.  This appropriation is for 
 28.9   the office of the legislative auditor 
 28.10  for a study and program evaluation of 
 28.11  the public utilities commission.  The 
 28.12  study shall include, among other 
 28.13  things, (1) state functions relating to 
 28.14  public utility regulation assigned to 
 28.15  the commission, department of public 
 28.16  service, and office of the attorney 
 28.17  general, and methods of increasing 
 28.18  efficiency and avoiding unnecessary 
 28.19  duplication of effort in carrying out 
 28.20  these functions, and (2) the future 
 28.21  role of the commission in public 
 28.22  utility regulation and public service 
 28.23  during a time of increasing 
 28.24  deregulation of utilities.  The 
 28.25  legislative auditor shall present an 
 28.26  interim report to the legislature on 
 28.27  the study by January 15, 1998, and 
 28.28  present a final report to the 
 28.29  legislature on the study by February 1, 
 28.30  1999.  This appropriation is available 
 28.31  until June 30, 1999. 
 28.32  Sec. 26.  CHILDREN, FAMILIES,
 28.33  AND LEARNING 
 28.34  Subdivision 1.  Total 
 28.35  Appropriation                          1,050,000        -0-
 28.36  Subd. 2.  Meadowbrook Collaborative 
 28.37  Of this amount, $50,000 the first year 
 28.38  is for a one-time grant to the city of 
 28.39  St. Louis Park for the Meadowbrook 
 28.40  Collaborative Housing Project to 
 28.41  enhance youth outreach services and to 
 28.42  provide educational and recreational 
 28.43  programming for youth at risk through 
 28.44  the development of formal after school 
 28.45  programming and weekend youth 
 28.46  activities.  The collaborative shall 
 28.47  include a cross-section of public and 
 28.48  private sector community 
 28.49  representatives to develop services to 
 28.50  address specific community and social 
 28.51  needs of children and youth. 
 28.52  These funds shall also be made 
 28.53  available to assist in staffing and 
 28.54  program development for the Meadowbrook 
 28.55  Youth Center.  The center shall focus 
 28.56  on reducing truancy, developing assets 
 28.57  for at-risk youth, developing programs 
 28.58  for structured time thus minimizing 
 28.59  opportunities for adverse activities, 
 28.60  and mentoring with adults. 
 28.61  $25,000 of the amount available is 
 28.62  available on the day following final 
 28.63  enactment of this section on a nonmatch 
 29.1   basis to the collaborative to develop 
 29.2   at-risk youth programs.  The remainder 
 29.3   is only available on a matching grant 
 29.4   basis. 
 29.5   Subd. 3.  Energy Assistance 
 29.6   Of this amount, $500,000 is for 
 29.7   low-income energy assistance.  This is 
 29.8   a one-time appropriation and may not be 
 29.9   added to the budget base for the 
 29.10  biennium ending June 30, 2001.  
 29.11  Of this amount, $500,000 is for the 
 29.12  low-income home weatherization 
 29.13  program.  This is a one-time 
 29.14  appropriation and may not be added to 
 29.15  the budget base in the biennium ending 
 29.16  June 30, 2001. 
 29.17  Sec. 27.  MILITARY AFFAIRS                50,000         50,000
 29.18  $50,000 the first year and $50,000 the 
 29.19  second year is for the purpose of 
 29.20  coordinating agreements with community 
 29.21  empowerment support groups for the use 
 29.22  of the military training center and 
 29.23  related personnel at Camp Ripley for 
 29.24  providing what are commonly referred to 
 29.25  as "soft skills" job skills training to 
 29.26  people, including those who are 
 29.27  expected to make the transition from 
 29.28  welfare to work.  "Soft skills" include 
 29.29  such things as being punctual and 
 29.30  following directions.  The adjutant 
 29.31  general may enter into contracts with 
 29.32  other state departments and local 
 29.33  agencies for the purpose of using the 
 29.34  facilities at Camp Ripley and staff to 
 29.35  provide that training.  This is a 
 29.36  one-time appropriation and may not be 
 29.37  added to the budget base for the 
 29.38  biennium ending June 30, 2001.  
 29.39  Sec. 28.  OFFICE OF TECHNOLOGY; 
 29.40  INTERNATIONAL TRADE ACTIVITIES           500,000
 29.41  $500,000 the first year is appropriated 
 29.42  from the general fund to the office of 
 29.43  technology for a one-time grant to the 
 29.44  regents of the University of Minnesota 
 29.45  for the operation of a secure 
 29.46  electronic authentication link 
 29.47  laboratory (SEAL). 
 29.48  Sec. 29.  CITY OF ANDOVER                500,000
 29.49  Notwithstanding any other law, $500,000 
 29.50  is appropriated the first year from the 
 29.51  contaminated site cleanup and 
 29.52  development account to the commissioner 
 29.53  of trade and economic development for a 
 29.54  grant to the city of Andover to be used 
 29.55  for the cleanup of contaminated land 
 29.56  but this grant cannot be used for land 
 29.57  acquisition.  This appropriation shall 
 29.58  be funded by tax proceeds collected 
 29.59  under Minnesota Statutes, section 
 29.60  270.91, and deposited into the 
 29.61  account.  This is a one-time 
 29.62  appropriation and may not be added to 
 30.1   the budget base for the biennium ending 
 30.2   June 30, 2001.  
 30.3      Sec. 30.  [MINNESOTA TECHNOLOGY GRANT TO MINNESOTA 
 30.4   TECHNOLOGY CORRIDOR CORPORATION.] 
 30.5      The grant under Laws 1995, chapter 224, section 3, to the 
 30.6   Minnesota Technology Corridor Corporation, a 501(c)(3) nonprofit 
 30.7   corporation, does not cancel, and any remaining balance of the 
 30.8   grant that may exist upon the dissolution of the Minnesota 
 30.9   Technology Corridor Corporation shall be transferred to the 
 30.10  William C. Norris Institute, a 501(c)(3) nonprofit corporation. 
 30.11     Sec. 31.  [RURAL POLICY AND DEVELOPMENT CENTER; 
 30.12  TRANSITION.] 
 30.13     The governor shall appoint the board of the center for 
 30.14  rural policy and development, other than legislative members, by 
 30.15  August 1, 1997.  Original appointments shall be staggered so 
 30.16  that four members serve two-year terms, four serve four-year 
 30.17  terms, and five serve six-year terms.  Thereafter, all terms 
 30.18  shall be for six years or the unexpired term of a term that was 
 30.19  not completed. 
 30.20     Sec. 32.  [STUDY OF STATE SERVICES FOR THE BLIND.] 
 30.21     The legislative audit commission is requested to undertake 
 30.22  a study, for reporting to the legislature in 1998, of the 
 30.23  advisability of removing state services for the blind from the 
 30.24  department of economic security and creating a separate board 
 30.25  for the blind, governed by a board appointed by the governor.  
 30.26  The study should include the factors of mission, identity, 
 30.27  visibility, service, accountability to blind citizens, consumer 
 30.28  involvement, administration, finance, and employment.  The study 
 30.29  should be performed in consultation with the rehabilitation 
 30.30  advisory council for the blind, as well as with consumer groups 
 30.31  and blind individuals. 
 30.32     Sec. 33.  [STUDY OF JOB-TRAINING PROGRAMS.] 
 30.33     Subdivision 1.  [STUDY.] The commissioners of trade and 
 30.34  economic development, labor and industry, and economic security 
 30.35  shall conduct a joint study of job-training programs funded 
 30.36  wholly or partly with state funds.  The commissioners must 
 31.1   report to the governor and legislature on the development of the 
 31.2   study by January 15, 1998, and make a final report on the study 
 31.3   by January 15, 1999. 
 31.4      Subd. 2.  [LONG-TERM TRACKING.] The study must include 
 31.5   findings and recommendations on the feasibility and desirability 
 31.6   of creating and implementing long-term tracking of individuals 
 31.7   who complete state-funded job training programs.  The 
 31.8   recommended tracking must provide, among other things, for 
 31.9   comparison of per capita income and wages earned by participants 
 31.10  in these programs with those earned by nonparticipants who are 
 31.11  in the same socioeconomic group as participants at the time of 
 31.12  program entry.  The study shall take into consideration the 
 31.13  physical and mental capabilities of individuals as well as their 
 31.14  levels of learning and training. 
 31.15     Subd. 3.  [COST REPORT.] The study must include a 
 31.16  compilation of all job training programs funded wholly or partly 
 31.17  with state funds for the purpose of determining the true cost of 
 31.18  these programs.  The study shall include, for each such program: 
 31.19     (1) a program description; 
 31.20     (2) the total costs, including those incurred by federal, 
 31.21  state, and local governments, and private and nonprofit 
 31.22  employers; 
 31.23     (3) economic benefits; and 
 31.24     (4) a comparison of the per-capita cost with the increases 
 31.25  in wages earned by program participants. 
 31.26     Sec. 34.  [INTERNATIONAL AFFAIRS COORDINATOR.] 
 31.27     During the biennium ending June 30, 1999, the legislative 
 31.28  coordinating commission may employ an international affairs 
 31.29  coordinator to: 
 31.30     (1) host international visitors; 
 31.31     (2) promote international education, research, and 
 31.32  exchanges; and 
 31.33     (3) monitor federal laws and agreements. 
 31.34     All state agencies shall assist the coordinator in the 
 31.35  performance of the coordinator's duties. 
 31.36     Sec. 35.  [COMMISSIONER OF NATURAL RESOURCES; AVAILABILITY 
 32.1   OF APPROPRIATION.] 
 32.2      The appropriation in Laws 1996, chapter 407, section 3, of 
 32.3   $750,000 to the commissioner of natural resources from the 
 32.4   taconite protection fund for acquisition and development of the 
 32.5   Iron Range off-highway vehicle recreation area does not cancel 
 32.6   but is available until June 30, 1999. 
 32.7      Sec. 36.  [COMMISSIONER OF ECONOMIC SECURITY; GRANT TO ST. 
 32.8   PAUL.] 
 32.9      The commissioner of economic security shall spend all of 
 32.10  the allocation to the city of St. Paul under Minnesota Statutes, 
 32.11  section 469.305, subdivision 1, for fiscal year 1997, that has 
 32.12  not been spent or otherwise committed by the city of St. Paul on 
 32.13  the effective date of this section, as a grant to the city of St.
 32.14  Paul for community development corporations to be used for 
 32.15  microenterprise and equity loans to eligible businesses located 
 32.16  or to be located at or near the Dale Street shops/Maxson Steel 
 32.17  industrial sites and the Minnehaha Mall area of the city of St. 
 32.18  Paul.  The commissioner or the city of St. Paul shall place this 
 32.19  amount in an interest-bearing account and shall make the money 
 32.20  in the account available for the purposes of this section only 
 32.21  when the contamination cleanup at the Dale Street shops/Maxson 
 32.22  Steel industrial sites has progressed to the point where 
 32.23  redevelopment can occur.  For purposes of this section, 
 32.24  "eligible businesses" is limited to small beginning businesses, 
 32.25  including an existing business that is starting a new location, 
 32.26  where similar businesses have demonstrated success in similar 
 32.27  neighborhoods.  The $10,000 maximum limit on microenterprise 
 32.28  loans under Minnesota Statutes, section 116M.18, subdivision 4a, 
 32.29  clause (2), does not apply to the grant under this section. 
 32.30     Sec. 37.  [TASK FORCE; WELFARE REFORM BUDGET IMPACT.] 
 32.31     The commissioner of finance shall report to the 
 32.32  legislature:  (1) by January 20, 1998, on the potential budget 
 32.33  impact to each state department and agency, including public 
 32.34  institutions of higher education, of the 1996 federal welfare 
 32.35  reform legislation and the response to that reform by the 
 32.36  legislature, by legislation contained in S.F. No. 1 in the 1997 
 33.1   session, if enacted; and (2) by January 20, 1999, on new 
 33.2   programs enacted by the 1997 legislature designed to address the 
 33.3   welfare to work requirements of federal welfare reform and 
 33.4   evaluate the success of those new programs in achieving their 
 33.5   goals, job placement and retention rates for those programs, and 
 33.6   the success of those programs in meeting the needs of welfare 
 33.7   recipients seeking employment. 
 33.8      The commissioner shall report that potential budgetary 
 33.9   impact separately for each department and for each program, 
 33.10  including programs funded by pass through appropriations. 
 33.11     Each state department and agency must cooperate with the 
 33.12  commissioner in the preparation of the report. 
 33.13     The commissioner shall solicit input from the public about 
 33.14  the budgetary impacts. 
 33.15     Sec. 38.  [YEAR 2000 READY.] 
 33.16     Any computer software or hardware that is purchased with 
 33.17  money appropriated in this bill must be year 2000 ready. 
 33.18     Sec. 39.  Minnesota Statutes 1996, section 44A.01, 
 33.19  subdivision 2, is amended to read: 
 33.20     Subd. 2.  [BOARD MEMBERSHIP.] The corporation is governed 
 33.21  by a board of directors consisting of: 
 33.22     (1) four members, representing the international business 
 33.23  community, elected to six-year three-year terms by the 
 33.24  association of members established under section 44A.023, 
 33.25  subdivision 2, clause (5); 
 33.26     (2) four members, representing the international business 
 33.27  community, appointed by the governor, to serve at the governor's 
 33.28  pleasure; 
 33.29     (3) the mayor of St. Paul or the mayor's designee; 
 33.30     (4) the commissioners of trade and economic development, 
 33.31  agriculture, and commerce; and 
 33.32     (5) three members of the house appointed by the speaker of 
 33.33  the house and three members of the senate appointed under the 
 33.34  rules of the senate, who serve as nonvoting members.  One member 
 33.35  from each house must be a member of the minority party of that 
 33.36  house.  Legislative members are appointed at the beginning of 
 34.1   each regular session of the legislature for two-year terms.  A 
 34.2   legislator who remains a member of the body from which the 
 34.3   legislator was appointed may serve until a successor is 
 34.4   appointed and qualifies.  A vacancy in a legislator member's 
 34.5   term is filled for the unexpired portion of the term in the same 
 34.6   manner as the original appointment. 
 34.7      Members appointed by the governor must be knowledgeable or 
 34.8   experienced in international trade in products or services. 
 34.9      Sec. 40.  [45.0295] [FEES.] 
 34.10     (a) The following fees shall be paid to the commissioner: 
 34.11     (1) for a letter of certification of licensure, $20; 
 34.12     (2) for a license history, $20; 
 34.13     (3) for a duplicate license, $10; 
 34.14     (4) for a change of name or address, $10; 
 34.15     (5) for a temporary license, $10; 
 34.16     (6) for each hour or fraction of one hour of course 
 34.17  approval for continuing education sought, $10; and 
 34.18     (7) for each continuing education course coordinator 
 34.19  approval, $100. 
 34.20     (b) All fees paid to the commissioner under this section 
 34.21  are nonrefundable, except that an overpayment of a fee shall be 
 34.22  returned upon proper application. 
 34.23     Sec. 41.  Minnesota Statutes 1996, section 60A.23, 
 34.24  subdivision 8, is amended to read: 
 34.25     Subd. 8.  [SELF-INSURANCE OR INSURANCE PLAN ADMINISTRATORS 
 34.26  WHO ARE VENDORS OF RISK MANAGEMENT SERVICES.] (1)  [SCOPE.] This 
 34.27  subdivision applies to any vendor of risk management services 
 34.28  and to any entity which administers, for compensation, a 
 34.29  self-insurance or insurance plan.  This subdivision does not 
 34.30  apply (a) to an insurance company authorized to transact 
 34.31  insurance in this state, as defined by section 60A.06, 
 34.32  subdivision 1, clauses (4) and (5); (b) to a service plan 
 34.33  corporation, as defined by section 62C.02, subdivision 6; (c) to 
 34.34  a health maintenance organization, as defined by section 62D.02, 
 34.35  subdivision 4; (d) to an employer directly operating a 
 34.36  self-insurance plan for its employees' benefits; (e) to an 
 35.1   entity which administers a program of health benefits 
 35.2   established pursuant to a collective bargaining agreement 
 35.3   between an employer, or group or association of employers, and a 
 35.4   union or unions; or (f) to an entity which administers a 
 35.5   self-insurance or insurance plan if a licensed Minnesota insurer 
 35.6   is providing insurance to the plan and if the licensed insurer 
 35.7   has appointed the entity administering the plan as one of its 
 35.8   licensed agents within this state. 
 35.9      (2)  [DEFINITIONS.] For purposes of this subdivision the 
 35.10  following terms have the meanings given them. 
 35.11     (a) "Administering a self-insurance or insurance plan" 
 35.12  means (i) processing, reviewing or paying claims, (ii) 
 35.13  establishing or operating funds and accounts, or (iii) otherwise 
 35.14  providing necessary administrative services in connection with 
 35.15  the operation of a self-insurance or insurance plan. 
 35.16     (b) "Employer" means an employer, as defined by section 
 35.17  62E.02, subdivision 2. 
 35.18     (c) "Entity" means any association, corporation, 
 35.19  partnership, sole proprietorship, trust, or other business 
 35.20  entity engaged in or transacting business in this state. 
 35.21     (d) "Self-insurance or insurance plan" means a plan 
 35.22  providing life, medical or hospital care, accident, sickness or 
 35.23  disability insurance for the benefit of employees or members of 
 35.24  an association, or a plan providing liability coverage for any 
 35.25  other risk or hazard, which is or is not directly insured or 
 35.26  provided by a licensed insurer, service plan corporation, or 
 35.27  health maintenance organization. 
 35.28     (e) "Vendor of risk management services" means an entity 
 35.29  providing for compensation actuarial, financial management, 
 35.30  accounting, legal or other services for the purpose of designing 
 35.31  and establishing a self-insurance or insurance plan for an 
 35.32  employer. 
 35.33     (3)  [LICENSE.] No vendor of risk management services or 
 35.34  entity administering a self-insurance or insurance plan may 
 35.35  transact this business in this state unless it is licensed to do 
 35.36  so by the commissioner.  An applicant for a license shall state 
 36.1   in writing the type of activities it seeks authorization to 
 36.2   engage in and the type of services it seeks authorization to 
 36.3   provide.  The license may be granted only when the commissioner 
 36.4   is satisfied that the entity possesses the necessary 
 36.5   organization, background, expertise, and financial integrity to 
 36.6   supply the services sought to be offered.  The commissioner may 
 36.7   issue a license subject to restrictions or limitations upon the 
 36.8   authorization, including the type of services which may be 
 36.9   supplied or the activities which may be engaged in.  The license 
 36.10  fee is $100 $500 for the initial application and $500 for each 
 36.11  two-year renewal.  All licenses are for a period of two years. 
 36.12     (4)  [REGULATORY RESTRICTIONS; POWERS OF THE COMMISSIONER.] 
 36.13  To assure that self-insurance or insurance plans are financially 
 36.14  solvent, are administered in a fair and equitable fashion, and 
 36.15  are processing claims and paying benefits in a prompt, fair, and 
 36.16  honest manner, vendors of risk management services and entities 
 36.17  administering insurance or self-insurance plans are subject to 
 36.18  the supervision and examination by the commissioner.  Vendors of 
 36.19  risk management services, entities administering insurance or 
 36.20  self-insurance plans, and insurance or self-insurance plans 
 36.21  established or operated by them are subject to the trade 
 36.22  practice requirements of sections 72A.19 to 72A.30.  In lieu of 
 36.23  an unlimited guarantee from a parent corporation for a vendor of 
 36.24  risk management services or an entity administering insurance or 
 36.25  self-insurance plans, the commissioner may accept a surety bond 
 36.26  in a form satisfactory to the commissioner in an amount equal to 
 36.27  120 percent of the total amount of claims handled by the 
 36.28  applicant in the prior year.  If at any time the total amount of 
 36.29  claims handled during a year exceeds the amount upon which the 
 36.30  bond was calculated, the administrator shall immediately notify 
 36.31  the commissioner.  The commissioner may require that the bond be 
 36.32  increased accordingly. 
 36.33     (5)  [RULEMAKING AUTHORITY.] To carry out the purposes of 
 36.34  this subdivision, the commissioner may adopt rules pursuant to 
 36.35  sections 14.001 to 14.69.  These rules may: 
 36.36     (a) establish reporting requirements for administrators of 
 37.1   insurance or self-insurance plans; 
 37.2      (b) establish standards and guidelines to assure the 
 37.3   adequacy of financing, reinsuring, and administration of 
 37.4   insurance or self-insurance plans; 
 37.5      (c) establish bonding requirements or other provisions 
 37.6   assuring the financial integrity of entities administering 
 37.7   insurance or self-insurance plans; or 
 37.8      (d) establish other reasonable requirements to further the 
 37.9   purposes of this subdivision. 
 37.10     Sec. 42.  Minnesota Statutes 1996, section 60A.71, is 
 37.11  amended by adding a subdivision to read: 
 37.12     Subd. 7.  [FEES.] Each applicant for a reinsurance 
 37.13  intermediary license shall pay to the commissioner a fee of $160 
 37.14  for an initial two-year license and a fee of $120 for each 
 37.15  renewal.  Applications shall be submitted on forms prescribed by 
 37.16  the commissioner. 
 37.17     Sec. 43.  Minnesota Statutes 1996, section 60K.06, 
 37.18  subdivision 2, is amended to read: 
 37.19     Subd. 2.  [LICENSING FEES.] (a) In addition to the fees and 
 37.20  charges provided for examinations, each agent licensed pursuant 
 37.21  to section 60K.03 shall pay to the commissioner: 
 37.22     (1) a fee of $60 per license for an initial license issued 
 37.23  to an individual agent, and a fee of $60 for each renewal; 
 37.24     (2) a fee of $160 for an initial license issued to a 
 37.25  partnership, limited liability company, or corporation, and a 
 37.26  fee of $120 for each renewal; 
 37.27     (3) a fee of $75 for an initial amendment (variable 
 37.28  annuity) to a license, and a fee of $50 for each renewal; and 
 37.29     (4) a fee of $500 for an initial surplus lines agent's 
 37.30  license, and a fee of $500 for each renewal; 
 37.31     (5) for issuing a duplicate license, $10; and 
 37.32     (6) for issuing licensing histories, $20. 
 37.33     (b) Persons whose applications have been properly and 
 37.34  timely filed who have not received notice of denial of renewal 
 37.35  are approved for renewal and may continue to transact business 
 37.36  whether or not the renewed license has been received on or 
 38.1   before November 1 of the renewal year.  Applications for renewal 
 38.2   of a license are timely filed if received by the commissioner on 
 38.3   or before the 15th day preceding the license renewal date of the 
 38.4   applicant on forms duly executed and accompanied by appropriate 
 38.5   fees.  An application mailed is considered timely filed if 
 38.6   addressed to the commissioner, with proper postage, and 
 38.7   postmarked on or before the 15th day preceding the licensing 
 38.8   renewal date of the applicant. 
 38.9      (c) Initial licenses issued under this section must be 
 38.10  valid for a period not to exceed two years.  The commissioner 
 38.11  shall assign an expiration date to each initial license so that 
 38.12  approximately one-half of all licenses expire each year.  Each 
 38.13  initial license must expire on October 31 of the expiration year 
 38.14  assigned by the commissioner. 
 38.15     (d) All fees shall be retained by the commissioner and are 
 38.16  nonreturnable, except that an overpayment of any fee must be 
 38.17  refunded upon proper application. 
 38.18     Sec. 44.  Minnesota Statutes 1996, section 65B.48, 
 38.19  subdivision 3, is amended to read: 
 38.20     Subd. 3.  Self-insurance, subject to approval of the 
 38.21  commissioner, is effected by filing with the commissioner in 
 38.22  satisfactory form: 
 38.23     (1) a continuing undertaking by the owner or other 
 38.24  appropriate person to pay tort liabilities or basic economic 
 38.25  loss benefits, or both, and to perform all other obligations 
 38.26  imposed by sections 65B.41 to 65B.71; 
 38.27     (2) evidence that appropriate provision exists for prompt 
 38.28  administration of all claims, benefits, and obligations provided 
 38.29  by sections 65B.41 to 65B.71; 
 38.30     (3) evidence that reliable financial arrangements, 
 38.31  deposits, or commitments exist providing assurance, 
 38.32  substantially equivalent to that afforded by a policy of 
 38.33  insurance complying with sections 65B.41 to 65B.71, for payment 
 38.34  of tort liabilities, basic economic loss benefits, and all other 
 38.35  obligations imposed by sections 65B.41 to 65B.71; and 
 38.36     (4) a nonrefundable initial application fee of $500 and an 
 39.1   annual renewal fee of $100 for political subdivisions and $250 
 39.2   for nonpolitical entities.  
 39.3      Sec. 45.  Minnesota Statutes 1996, section 72B.04, 
 39.4   subdivision 10, is amended to read: 
 39.5      Subd. 10.  [FEES.] A fee of $40 is imposed for each initial 
 39.6   license or temporary permit and $25 for each renewal thereof or 
 39.7   amendment thereto.  A fee of $20 is imposed for each examination 
 39.8   taken.  A fee of $20 is imposed for the registration of each 
 39.9   nonlicensed adjuster who is required to register under section 
 39.10  72B.06.  All fees shall be transmitted to the commissioner and 
 39.11  shall be payable to the state treasurer.  If a fee is paid for 
 39.12  an examination and if within one year from the date of that 
 39.13  payment no written request for a refund is received by the 
 39.14  commissioner or the examination for which the fee was paid is 
 39.15  not taken, the fee is forfeited to the state of Minnesota. 
 39.16     Sec. 46.  Minnesota Statutes 1996, section 79.253, 
 39.17  subdivision 1, is amended to read: 
 39.18     Subdivision 1.  [CREATION OF ACCOUNT.] There is created the 
 39.19  assigned risk safety account as a separate account in the 
 39.20  special compensation fund in the state treasury.  Income earned 
 39.21  by funds in the account must be credited to the account.  
 39.22  Principal and income of the account are annually appropriated to 
 39.23  the commissioner of labor and industry and must be used for 
 39.24  grants and loans under this section to establish and promote 
 39.25  workplace safety and health programs. 
 39.26     Sec. 47.  Minnesota Statutes 1996, section 79.255, is 
 39.27  amended by adding a subdivision to read: 
 39.28     Subd. 10.  [FEE.] A registration or exemption certificate 
 39.29  fee of $50 shall be paid. 
 39.30     Sec. 48.  Minnesota Statutes 1996, section 82.21, 
 39.31  subdivision 1, is amended to read: 
 39.32     Subdivision 1.  [AMOUNTS.] The following fees shall be paid 
 39.33  to the commissioner: 
 39.34     (a) A fee of $150 for each initial individual broker's 
 39.35  license, and a fee of $100 for each renewal thereof; 
 39.36     (b) A fee of $70 for each initial salesperson's license, 
 40.1   and a fee of $40 for each renewal thereof; 
 40.2      (c) A fee of $85 for each initial real estate closing agent 
 40.3   license, and a fee of $60 for each renewal thereof; 
 40.4      (d) A fee of $150 for each initial corporate, limited 
 40.5   liability company, or partnership license, and a fee of $100 for 
 40.6   each renewal thereof; 
 40.7      (e) A fee for payment to the education, research and 
 40.8   recovery fund in accordance with section 82.34; 
 40.9      (f) A fee of $20 for each transfer; 
 40.10     (g) A fee of $50 for a corporation, limited liability 
 40.11  company, or partnership name change; 
 40.12     (h) A fee of $10 for an agent name change; 
 40.13     (i) A fee of $20 for a license history; 
 40.14     (j) A fee of $10 for a duplicate license; 
 40.15     (k) A fee of $50 for license reinstatement; and 
 40.16     (l) (h) A fee of $20 for reactivating a corporate, limited 
 40.17  liability company, or partnership license without land; 
 40.18     (m) A fee of $100 for course coordinator approval; and 
 40.19     (n) A fee of $20 for each hour or fraction of one hour of 
 40.20  course approval sought. 
 40.21     Sec. 49.  Minnesota Statutes 1996, section 82B.09, 
 40.22  subdivision 1, is amended to read: 
 40.23     Subdivision 1.  [AMOUNTS.] The following fees must be paid 
 40.24  to the commissioner: 
 40.25     (1) for each initial individual real estate appraiser's 
 40.26  license:  $150 if the license expires more than 12 months after 
 40.27  issuance, $100 if the license expires less than 12 months after 
 40.28  issuance; and a fee of $100 for each renewal;. 
 40.29     (2) a fee of $10 for a change in personal name or trade 
 40.30  name or personal address or business location; 
 40.31     (3) a fee of $10 for a license history; 
 40.32     (4) a fee of $25 for a duplicate license; 
 40.33     (5) a fee of $100 for appraiser course coordinator 
 40.34  approval; and 
 40.35     (6) a fee of $10 for each hour or fraction of one hour of 
 40.36  course approval sought. 
 41.1      Sec. 50.  Minnesota Statutes 1996, section 116J.01, 
 41.2   subdivision 5, is amended to read: 
 41.3      Subd. 5.  [DEPARTMENTAL ORGANIZATION.] (a) The commissioner 
 41.4   shall organize the department as provided in section 15.06.  
 41.5      (b) The commissioner may establish divisions and offices 
 41.6   within the department.  The commissioner may employ three deputy 
 41.7   commissioners in the unclassified service.  One deputy must 
 41.8   direct the Minnesota trade office and must be experienced and 
 41.9   knowledgeable in matters of international trade.  
 41.10     (c) The commissioner shall: 
 41.11     (1) employ assistants and other officers, employees, and 
 41.12  agents that the commissioner considers necessary to discharge 
 41.13  the functions of the commissioner's office; 
 41.14     (2) define the duties of the officers, employees, and 
 41.15  agents, and delegate to them any of the commissioner's powers, 
 41.16  duties, and responsibilities, subject to the commissioner's 
 41.17  control and under conditions prescribed by the commissioner.  
 41.18     (d) The commissioner shall ensure that there are at least 
 41.19  three trade and economic development officers in state offices 
 41.20  in nonmetropolitan areas of the state who will work with local 
 41.21  units of government on developing local trade and economic 
 41.22  development. 
 41.23     Sec. 51.  [116J.421] [RURAL POLICY AND DEVELOPMENT CENTER.] 
 41.24     Subdivision 1.  [ESTABLISHED.] The rural policy and 
 41.25  development center is established at Mankato State University. 
 41.26     Subd. 2.  [GOVERNANCE.] The center is governed by a board 
 41.27  of directors appointed to six-year terms by the governor 
 41.28  comprised of: 
 41.29     (1) a representative from each of the two largest statewide 
 41.30  general farm organizations; 
 41.31     (2) a representative from a regional initiative 
 41.32  organization selected under Minnesota Statutes, section 
 41.33  116J.415, subdivision 3; 
 41.34     (3) the president of Mankato State University; 
 41.35     (4) a representative from the general public residing in a 
 41.36  town of less than 5,000 located outside of the metropolitan 
 42.1   area; 
 42.2      (5) a member of the house of representatives appointed by 
 42.3   the speaker of the house and a member of the senate appointed by 
 42.4   the subcommittee on committees of the senate committee on rules 
 42.5   and administration appointed for two-year terms; 
 42.6      (6) three representatives from business, including one 
 42.7   representing rural manufacturing and one rural retail and 
 42.8   service business; 
 42.9      (7) three representatives from private foundations with a 
 42.10  demonstrated commitment to rural issues; 
 42.11     (8) one representative from a rural county government; and 
 42.12     (9) one representative from a rural regional government. 
 42.13     Subd. 3.  [DUTIES.] The center shall: 
 42.14     (1) identify present and emerging social and economic 
 42.15  issues for rural Minnesota, including health care, 
 42.16  transportation, crime, housing, and job training; 
 42.17     (2) forge alliances and partnerships with rural communities 
 42.18  to find practical solutions to economic and social problems; 
 42.19     (3) provide a resource center for rural communities on 
 42.20  issues of importance to them; 
 42.21     (4) encourage collaboration across higher education 
 42.22  institutions to provide interdisciplinary team approaches to 
 42.23  problem solving with rural communities; and 
 42.24     (5) involve students in center projects. 
 42.25     Subd. 4.  [STATEWIDE FOCUS.] The center has a statewide 
 42.26  mission.  It may contract and collaborate with higher education 
 42.27  and other institutions located throughout the state. 
 42.28     Sec. 52.  [116J.422] [RURAL POLICY AND DEVELOPMENT CENTER 
 42.29  FUND.] 
 42.30     A rural policy and development center fund is established 
 42.31  as an account in the state treasury.  The commissioner of 
 42.32  finance shall credit to the account the amounts authorized under 
 42.33  this section and appropriations and transfers to the account.  
 42.34  The state board of investment shall ensure that account money is 
 42.35  invested under Minnesota Statutes, section 11A.24.  All money 
 42.36  earned by the account must be credited to the account.  The 
 43.1   principal of the account and any unexpended earnings must be 
 43.2   invested and reinvested by the state board of investment. 
 43.3      Gifts and donations, including land or interests in land, 
 43.4   may be made to the account.  Noncash gifts and donations must be 
 43.5   disposed of for cash as soon as the board prudently can maximize 
 43.6   the value of the gift or donation.  Gifts and donations of 
 43.7   marketable securities may be held or be disposed of for cash at 
 43.8   the option of the board.  The cash receipts of gifts and 
 43.9   donations of cash or capital assets and marketable securities 
 43.10  disposed of for cash must be credited immediately to the 
 43.11  principal of the account.  The value of marketable securities at 
 43.12  the time the gift or donation is made must be credited to the 
 43.13  principal of the account and any earnings from the marketable 
 43.14  securities are earnings of the account.  The earnings in the 
 43.15  account are annually appropriated to the board of the center for 
 43.16  rural policy and development to carry out the duties of the 
 43.17  center. 
 43.18     Sec. 53.  [116J.543] [FILM PRODUCTIONS JOBS PROGRAM.] 
 43.19     The film production jobs program is created.  The program 
 43.20  shall be operated by the Minnesota film board with 
 43.21  administrative oversight and control by the commissioner of 
 43.22  trade and economic development.  The program shall make payment 
 43.23  to producers of long-form and narrative film productions that 
 43.24  directly create new film jobs in Minnesota.  To be eligible for 
 43.25  a payment, a producer must submit documentation to the Minnesota 
 43.26  film board of expenditures for wages for work on new film 
 43.27  production jobs in Minnesota by resident Minnesotans.  The film 
 43.28  jobs include work such as technical crews, acting talent, set 
 43.29  construction, soundstage or equipment rental, local 
 43.30  postproduction film processing, and other film production jobs.  
 43.31     The film board must make recommendations to the 
 43.32  commissioner about program payment, but the recommendations are 
 43.33  not binding and the commissioner has the authority to make the 
 43.34  final determination on payments.  The commissioner's 
 43.35  determination must be based on the amount of wages documented to 
 43.36  the film board and the likelihood that the payment will lead to 
 44.1   further documentable wage payments.  Payment may not exceed 
 44.2   $100,000 for a single long-form and narrative film.  No more 
 44.3   than five percent of the funds appropriated for the program in 
 44.4   any year may be expended for administration.  Individual feature 
 44.5   film projects shooting on or after January 1, 1997, will be 
 44.6   eligible for fund allocations. 
 44.7      Sec. 54.  Minnesota Statutes 1996, section 116J.615, 
 44.8   subdivision 1, is amended to read: 
 44.9      Subdivision 1.  [DUTIES OF DIRECTOR.] The director of 
 44.10  tourism shall:  
 44.11     (1) publish, disseminate, and distribute informational and 
 44.12  promotional literature; 
 44.13     (2) promote and encourage the expansion and development of 
 44.14  international tourism marketing; 
 44.15     (3) advertise and disseminate information about travel 
 44.16  opportunities in the state of Minnesota; 
 44.17     (4) aid various local communities to improve their tourism 
 44.18  marketing programs; 
 44.19     (5) coordinate and implement a comprehensive state tourism 
 44.20  marketing program that takes into consideration all public and 
 44.21  private businesses and attractions; 
 44.22     (6) conduct market research and analysis to improve 
 44.23  marketing techniques in the area of tourism; 
 44.24     (7) investigate and study conditions affecting Minnesota's 
 44.25  tourism industry, collect and disseminate information, and 
 44.26  engage in technical studies, scientific investigations, and 
 44.27  statistical research and educational activities necessary or 
 44.28  useful for the proper execution of the powers and duties of the 
 44.29  director in promoting and developing Minnesota's tourism 
 44.30  industry, both within and outside the state; 
 44.31     (8) apply for, accept, receive, and expend any funds for 
 44.32  the promotion of tourism in Minnesota.  All money received by 
 44.33  the director under this subdivision shall be deposited in the 
 44.34  state treasury and is appropriated to the director for the 
 44.35  purposes for which the money has been received.  The director 
 44.36  may enter into interagency agreements and may agree to share net 
 45.1   revenues with the contributing agencies.  The money does not 
 45.2   cancel and is available until expended; and 
 45.3      (9) plan and conduct information and publicity programs to 
 45.4   attract tourists, visitors, and other interested persons from 
 45.5   outside the state to this state; encourage and coordinate 
 45.6   efforts of other public and private organizations or groups of 
 45.7   citizens to publicize facilities and attractions in this state; 
 45.8   and work with representatives of the hospitality and tourism 
 45.9   industry to carry out its programs. 
 45.10     Sec. 55.  [116J.8745] [MICROENTERPRISE ENTREPRENEURIAL 
 45.11  ASSISTANCE.] 
 45.12     Subdivision 1.  [TECHNICAL ASSISTANCE; LOAN 
 45.13  ADMINISTRATION.] The commissioner of trade and economic 
 45.14  development shall make grants to nonprofit organizations to 
 45.15  provide technical assistance to individuals with entrepreneurial 
 45.16  plans that require microenterprise loans in an amount ranging 
 45.17  from approximately $1,000 to $25,000, and for loan 
 45.18  administration costs related to those microenterprise loans.  
 45.19  Microenterprise is a small business which employs under five 
 45.20  employees plus the owner and requires under $25,000 to start. 
 45.21     Subd. 2.  [GRANT ELIGIBILITY AND ALLOCATION.] Nonprofit 
 45.22  organizations must apply for grants under this section following 
 45.23  procedures established by the commissioner.  To be eligible for 
 45.24  a grant, an organization must demonstrate to the commissioner 
 45.25  that it has the appropriate expertise.  The commissioner shall 
 45.26  give preference for grants to organizations that target 
 45.27  nontraditional entrepreneurs such as women, members of a 
 45.28  minority, low-income individuals, or persons seeking work who 
 45.29  are currently on or recently removed from welfare assistance. 
 45.30     An application must include: 
 45.31     (1) the local need for microenterprise support; 
 45.32     (2) proposed criteria for business eligibility; 
 45.33     (3) proposals for identifying and serving eligible 
 45.34  businesses; 
 45.35     (4) a description of technical assistance to be provided to 
 45.36  eligible businesses; 
 46.1      (5) proposals to coordinate technical assistance with 
 46.2   financial assistance; and 
 46.3      (6) a demonstration of ability to collaborate with other 
 46.4   agencies including educational and financial institutions. 
 46.5      Subd. 3.  [GRANT EVALUATIONS.] Grant recipients must report 
 46.6   to the commissioner by February 1 in each of the two years 
 46.7   succeeding the year of receipt of the grant.  The report must 
 46.8   detail the number of customers served, the number of businesses 
 46.9   started, stabilized, or expanded, the number of jobs created and 
 46.10  retained, and business success rates.  The commissioner shall 
 46.11  report to the legislature on the microenterprise entrepreneurial 
 46.12  assistance.  The report shall contain an evaluation of the 
 46.13  results, recommendations to continue or change the program, and 
 46.14  a suggested level of funding. 
 46.15     Sec. 56.  [116J.8755] [SMALL BUSINESS; ELECTRONIC ACCESS TO 
 46.16  INTERNATIONAL MARKETS.] 
 46.17     The commissioner shall develop a plan for enabling small 
 46.18  businesses to gain electronic access to international markets 
 46.19  through mechanisms that may include electronic trade points. 
 46.20     Sec. 57.  [116J.992] [TACONITE MINING GRANTS.] 
 46.21     (a) The commissioner shall establish a program to make 
 46.22  grants to taconite mining companies to enable them to research 
 46.23  technologies that: 
 46.24     (1) reduce energy consumption; 
 46.25     (2) reduce environmental emissions; 
 46.26     (3) improve productivity; or 
 46.27     (4) improve pellet quality. 
 46.28     (b) To receive a grant a recipient must convey to the state 
 46.29  permanent ownership of both mineral reserves and corresponding 
 46.30  surface lands that: 
 46.31     (1) contain unmined taconite with a 23 percent minimum 
 46.32  magnetic iron content; 
 46.33     (2) have an open pit stripping ratio of less than 1.5 to 1; 
 46.34     (3) are unencumbered by current or planned surface 
 46.35  development; 
 46.36     (4) are substantially unencumbered by past mining activity; 
 47.1      (5) have marketable title for both surface and mineral 
 47.2   interests; and 
 47.3      (6) are in an area that could reasonably be expected to be 
 47.4   mined within 50 years. 
 47.5      (c) A grant may not exceed the value of the mineral 
 47.6   reserves and surface land as assessed by the commissioner of 
 47.7   natural resources.  When assessing value, the commissioner must, 
 47.8   at a minimum, take into account the future value of any royalty 
 47.9   stream, the state's cost of capital, the costs of removing any 
 47.10  encumbrances, and the probability that the reserves will be 
 47.11  mined in the future.  Any revenue generated by ownership or sale 
 47.12  of the property must be deposited in the general fund. 
 47.13     Sec. 58.  Minnesota Statutes 1996, section 116L.04, 
 47.14  subdivision 1, is amended to read: 
 47.15     Subdivision 1.  [GRANTS-IN-AID PARTNERSHIP PROGRAM.] (a) 
 47.16  The partnership program may provide grants-in-aid to educational 
 47.17  or other nonprofit training institutions using the following 
 47.18  guidelines:  
 47.19     (1) the educational or other nonprofit institution is a 
 47.20  provider of training within the state in either the public or 
 47.21  private sector; 
 47.22     (2) the program involves skills training that is an area of 
 47.23  employment need; and 
 47.24     (3) preference will be given to educational or other 
 47.25  nonprofit training institutions which serve economically 
 47.26  disadvantaged people, minorities, or those who are victims of 
 47.27  economic dislocation and to businesses located in rural areas.  
 47.28     (b) A single grant to any one institution shall not exceed 
 47.29  $200,000 $400,000.  
 47.30     Sec. 59.  Minnesota Statutes 1996, section 116L.04, is 
 47.31  amended by adding a subdivision to read: 
 47.32     Subd. 1a.  [PATHWAYS PROGRAM.] The pathways program may 
 47.33  provide grants-in-aid for developing programs which assist in 
 47.34  the transition of persons from welfare to work.  The program is 
 47.35  to be operated by the board.  The board shall consult and 
 47.36  coordinate with the Job Training Partnership Act Title II-A 
 48.1   program administrators at the department of economic security to 
 48.2   design and provide services for temporary assistance for needy 
 48.3   families recipients. 
 48.4      Pathways grants-in-aid may be awarded to educational or 
 48.5   other nonprofit training institutions for education and training 
 48.6   programs that serve public assistance recipients transitioning 
 48.7   from public assistance to employment. 
 48.8      Preference shall be given to projects that: 
 48.9      (1) provide employment with benefits paid to employees; 
 48.10     (2) provide employment where there are defined career paths 
 48.11  for trainees; 
 48.12     (3) pilot the development of an educational pathways that 
 48.13  can be used on a continuing basis for transitioning persons from 
 48.14  public assistance directly to work; and 
 48.15     (4) demonstrate the active participation of department of 
 48.16  economic security workforce centers, Minnesota state college and 
 48.17  university institutions and other educational institutions, and 
 48.18  local welfare agencies. 
 48.19     Pathways projects must demonstrate the active involvement 
 48.20  and financial commitment of private business.  Pathways projects 
 48.21  must be matched with cash or in-kind contributions on at least a 
 48.22  one-to-one ratio by participating private business. 
 48.23     A single grant to any one institution shall not exceed 
 48.24  $200,000. 
 48.25     The board shall annually, by March 31, report to the 
 48.26  commissioners of economic security and trade and economic 
 48.27  development on pathways programs, including the number of public 
 48.28  assistance recipients participating in the program, the number 
 48.29  of participants placed in employment, the salary and benefits 
 48.30  they receive, and the state program costs per participant. 
 48.31     Sec. 60.  [116L.06] [HIRE EDUCATION LOAN PROGRAM.] 
 48.32     Subdivision 1.  [FUND USES.] The job skills partnership 
 48.33  board may make loans to Minnesota employers to train persons for 
 48.34  jobs in Minnesota.  The loans must be used to train current and 
 48.35  prospective employees of an employer for specific jobs with the 
 48.36  employer.  
 49.1      Subd. 2.  [LOAN PROCESS.] The board shall establish a 
 49.2   schedule and competitive process for accepting loan 
 49.3   applications.  The board shall evaluate loan applications. 
 49.4      Subd. 3.  [LOAN PRIORITY.] The board shall give priority to 
 49.5   loans that provide training for jobs that are permanent, provide 
 49.6   health coverage and other fringe benefits, and have a career or 
 49.7   job path with prospects for wage increases. 
 49.8      Subd. 4.  [LOAN TERMS.] Loans may be secured or unsecured, 
 49.9   shall be for a term of no more than two years, and shall bear no 
 49.10  interest.  The maximum amount of a loan is $250,000.  A loan 
 49.11  origination fee of up to two percent of the principal of the 
 49.12  loan may be charged.  An employer may have only one outstanding 
 49.13  loan.  The loans shall contain such other standard commercial 
 49.14  loan terms as the board deems appropriate. 
 49.15     Subd. 5.  [LOAN USES.] Loans must be used by an employer to 
 49.16  obtain the most cost-effective training available from public or 
 49.17  private training institutions.  An employer must document to the 
 49.18  board the process the employer has utilized to ensure that the 
 49.19  proposed loan is used to acquire the most cost-effective 
 49.20  training and provide a training plan. 
 49.21     Subd. 6.  [PACKAGING LOANS.] The board may package a grant 
 49.22  it makes under section 116L.04 with a loan under this section.  
 49.23     Subd. 7.  [LOAN REPAYMENTS.] Loan repayments and loan 
 49.24  origination fees shall be retained by the board for board 
 49.25  programs. 
 49.26     Sec. 61.  Minnesota Statutes 1996, section 116O.05, is 
 49.27  amended by adding a subdivision to read: 
 49.28     Subd. 4.  [SUPPORTING ORGANIZATIONS.] On making a 
 49.29  determination that the public policies and purposes of this 
 49.30  chapter will be carried out to a greater extent than what might 
 49.31  otherwise occur, the board may cause to be created and may 
 49.32  delegate, assign, or transfer to one or more entities, including 
 49.33  without limitation a corporation, nonprofit corporation, limited 
 49.34  liability company, partnership, or limited partnership, any or 
 49.35  all rights and duties, assets and liabilities, powers or 
 49.36  authority created, authorized, or allowed under this chapter, 
 50.1   including without limitation those pertaining to the seed 
 50.2   capital fund under section 116O.122, except to the extent 
 50.3   specifically limited by the constitution or by law. 
 50.4      Sec. 62.  Minnesota Statutes 1996, section 116O.122, 
 50.5   subdivision 1, is amended to read: 
 50.6      Subdivision 1.  [ESTABLISHMENT.] The corporation shall, in 
 50.7   consultation with private venture and seed capital companies and 
 50.8   other public and private organizations as appropriate, implement 
 50.9   a centrally managed seed capital fund to invest in early stage 
 50.10  companies and small companies in Minnesota through equity or 
 50.11  equity-type investments.  The seed capital fund may receive 
 50.12  contributions from the corporation, as well as from local, 
 50.13  state, or federal government, private foundations, or other 
 50.14  sources.  Total investments by the seed capital fund in 
 50.15  seven-county metropolitan area based companies must not exceed 
 50.16  20 percent of the total amount invested capitalization 
 50.17  appropriated by the legislature or provided by the corporation.  
 50.18  Investments which contribute to the 20 percent metropolitan area 
 50.19  limitation are those which will primarily enhance the operations 
 50.20  of a metropolitan based facility.  Investments that benefit a 
 50.21  Greater Minnesota facility of a metropolitan based company are 
 50.22  not subject to the limitation.  Investments by the seed capital 
 50.23  fund must be matched by other sources of capital at a ratio to 
 50.24  be determined by the corporation.  The seed capital fund shall 
 50.25  identify sources of technical, management, and marketing 
 50.26  assistance for companies funded by the seed capital program and 
 50.27  make appropriate referrals.  The seed capital fund shall 
 50.28  establish a procedure for liquidating private investments. 
 50.29     Sec. 63.  Minnesota Statutes 1996, section 155A.045, 
 50.30  subdivision 1, is amended to read: 
 50.31     Subdivision 1.  [SCHEDULE.] The fee schedule for licensees 
 50.32  is as follows: 
 50.33     (a) Three-year license fees: 
 50.34     (1) cosmetologist, manicurist, esthetician, $45 for each 
 50.35  initial license and $30 for each renewal; 
 50.36     (2) instructor, manager, $60 for each initial license, 
 51.1   and $45 for each renewal; 
 51.2      (3) salon, $65 for each initial license, and $50 for each 
 51.3   renewal; and 
 51.4      (4) school, $750. 
 51.5      (b) Penalties: 
 51.6      (1) reinspection fee, variable; and 
 51.7      (2) manager with lapsed practitioner, $25. 
 51.8      (c) Administrative fees: 
 51.9      (1) duplicate license (includes individual name or address 
 51.10  change), $5; 
 51.11     (2) certificate of identification, $20; 
 51.12     (3) processing fee (covers licensing history or 
 51.13  certification of licensure, restoration of lapsed license, salon 
 51.14  name change, school name change, late renewals, applications for 
 51.15  new licenses), $15; and 
 51.16     (4) (2) school original application, $150. 
 51.17     Sec. 64.  Minnesota Statutes 1996, section 176.181, 
 51.18  subdivision 2a, is amended to read: 
 51.19     Subd. 2a.  [APPLICATION FEE.] Every initial application 
 51.20  filed pursuant to subdivision 2 requesting authority to 
 51.21  self-insure shall be accompanied by a nonrefundable fee of 
 51.22  $1,000 $2,500.  The fee is not refundable.  When an employer 
 51.23  seeks to be added as a member of an existing approved group 
 51.24  under section 79A.03, subdivision 6, the proposed new member 
 51.25  shall pay a nonrefundable $250 application fee to the 
 51.26  commissioner at the time of application.  Each annual report due 
 51.27  August 1 under section 79A.03, subdivision 9, shall be 
 51.28  accompanied by an annual fee of $200.  
 51.29     Sec. 65.  [268.3625] [ADMINISTRATIVE COSTS.] 
 51.30     The commissioner may use up to five percent of the biennial 
 51.31  appropriation for Youthbuild from the general fund to pay costs 
 51.32  incurred by the department in administering Youthbuild during 
 51.33  the biennium. 
 51.34     Sec. 66.  Minnesota Statutes 1996, section 268A.15, is 
 51.35  amended by adding a subdivision to read: 
 51.36     Subd. 1a.  [SEVERE IMPAIRMENT TO EMPLOYMENT; 
 52.1   DEFINITION.] For the purpose of this section, "severe impairment 
 52.2   to employment" means profound limitations that dramatically 
 52.3   restrict an individual's ability to seek, secure, and maintain 
 52.4   employment due to an extended history of little or no 
 52.5   employment, limited education, training, or job skills, and 
 52.6   physical, intellectual, or emotional characteristics seriously 
 52.7   impairing future ability to obtain and retain permanent 
 52.8   employment. 
 52.9      Sec. 67.  Minnesota Statutes 1996, section 268A.15, 
 52.10  subdivision 2, is amended to read: 
 52.11     Subd. 2.  [PROGRAM PURPOSE.] The extended employment 
 52.12  program shall have two categories of clients consisting of those 
 52.13  with severe disabilities and those with severe impairment to 
 52.14  employment.  The purpose of the extended employment program for 
 52.15  persons with severe disabilities is to provide the ongoing 
 52.16  services necessary to maintain and advance the employment of 
 52.17  persons with severe disabilities.  The purpose of the extended 
 52.18  employment program for persons with severe impairment to 
 52.19  employment is to provide the ongoing support services necessary 
 52.20  to secure, maintain, and advance in employment.  Employment 
 52.21  under this section must encompass the broad range of employment 
 52.22  choices available to all persons and promote an individual's 
 52.23  self-sufficiency and financial independence.  
 52.24     Sec. 68.  Minnesota Statutes 1996, section 268A.15, is 
 52.25  amended by adding a subdivision to read: 
 52.26     Subd. 3a.  [SEVERE IMPAIRMENT TO EMPLOYMENT; SEPARATE 
 52.27  PROGRAM.] The allocation of funds, eligibility criteria, and 
 52.28  funding criteria for extended employment program funds for 
 52.29  persons with severe disabilities shall be separate from the 
 52.30  allocation of funds, eligibility criteria, and funding criteria 
 52.31  for extended employment program funds for persons with severe 
 52.32  impairment to employment.  Extended employment program services 
 52.33  for persons with severe disabilities shall be modified to the 
 52.34  extent necessary to provide services to persons with severe 
 52.35  impairment to employment. 
 52.36     The county agency must consider placing an individual who 
 53.1   is on welfare and who has a severe impairment to employment, as 
 53.2   defined in subdivision 1a, into an extended employment program 
 53.3   under this section for job skills training or a job, or both, as 
 53.4   part of the effort to move people from welfare to work as 
 53.5   required under federal welfare reform. 
 53.6      Sec. 69.  Minnesota Statutes 1996, section 268A.15, 
 53.7   subdivision 6, is amended to read: 
 53.8      Subd. 6.  [GRANTS.] The commissioner may provide innovation 
 53.9   and expansion grants to rehabilitation facilities to encourage 
 53.10  the development, demonstration, or dissemination of innovative 
 53.11  business practices, training programs, and service delivery 
 53.12  methods that: 
 53.13     (1) expand and improve employment opportunities for persons 
 53.14  with severe disabilities or severe impairment to employment who 
 53.15  are unserved or underserved by the extended employment program; 
 53.16  and 
 53.17     (2) increase the ability of persons with severe 
 53.18  disabilities or severe impairment to employment to use new and 
 53.19  emerging technologies in employment settings, and foster the 
 53.20  capacity of rehabilitation facilities and employers to promote 
 53.21  the integration of individuals with severe disabilities and 
 53.22  severe impairment to employment into the workplace and the 
 53.23  mainstream of community life. 
 53.24     The grants must require collaboration at the local level 
 53.25  among vocational rehabilitation field offices, county social 
 53.26  service and planning agencies, rehabilitation facilities, and 
 53.27  employers.  
 53.28     Sec. 70.  Minnesota Statutes 1996, section 268A.15, is 
 53.29  amended by adding a subdivision to read: 
 53.30     Subd. 8.  [FUNDING AUTHORITY.] State grant funds under this 
 53.31  section and section 268A.13 shall be available for 24 months 
 53.32  following the end of a fiscal year to allow for the submission 
 53.33  of final grant data reports, the completion of audit adjustments 
 53.34  of payments to grantees including grantee appeals of final audit 
 53.35  adjustments, and the redistribution of remaining balances in 
 53.36  grant accounts to other grantees who meet or exceed their 
 54.1   contracts with the department for that fiscal year. 
 54.2      Sec. 71.  Minnesota Statutes 1996, section 298.22, is 
 54.3   amended by adding a subdivision to read: 
 54.4      Subd. 7.  [GIANTS RIDGE RECREATION AREA.] (a) In addition 
 54.5   to the other powers granted in this section and other law, the 
 54.6   commissioner, for purposes of fostering economic development and 
 54.7   tourism within the Giants Ridge recreation area, may spend any 
 54.8   money made available to the agency under section 298.28 to 
 54.9   acquire real or personal property or interests therein by gift, 
 54.10  purchase, or lease and may convey by lease, sale, or other means 
 54.11  of conveyance or commitment any or all of those property 
 54.12  interests acquired.  
 54.13     (b) Notwithstanding any other law to the contrary, property 
 54.14  conveyed under this subdivision and used for residential 
 54.15  purposes is not eligible for property tax homestead 
 54.16  classification under section 273.124 or for a property tax 
 54.17  refund under chapter 290A. 
 54.18     (c) In furtherance of development of the Giants Ridge 
 54.19  recreation area, the commissioner may establish and participate 
 54.20  in charitable foundations and nonprofit corporations, including 
 54.21  a corporation within the meaning of section 317A.011, 
 54.22  subdivision 6. 
 54.23     (d) The term "Giants Ridge recreation area" refers to an 
 54.24  economic development project area established by the 
 54.25  commissioner in furtherance of the powers delegated in this 
 54.26  section within St. Louis county in the western portions of the 
 54.27  town of White and in the eastern portion of the westerly, 
 54.28  adjacent, unorganized township. 
 54.29     Sec. 72.  Minnesota Statutes 1996, section 326.86, 
 54.30  subdivision 1, is amended to read: 
 54.31     Subdivision 1.  [LICENSING FEE.] The licensing fee for 
 54.32  persons licensed pursuant to sections 326.83 to 326.991 is $75 
 54.33  per year.  The commissioner may adjust the fees under section 
 54.34  16A.1285 to recover the costs of administration and 
 54.35  enforcement.  The fees must be limited to the cost of license 
 54.36  administration and enforcement and must be deposited in the 
 55.1   state treasury and credited to the general fund.  A fee of $25 
 55.2   will be charged for a duplicate license or an amended license 
 55.3   reflecting a change of business name, address, or qualifying 
 55.4   person. 
 55.5      Sec. 73.  Minnesota Statutes 1996, section 469.305, 
 55.6   subdivision 1, is amended to read: 
 55.7      Subdivision 1.  [INCENTIVE GRANTS.] (a) An incentive grant 
 55.8   is available to businesses located in an enterprise zone that 
 55.9   meet the conditions of this section.  Each city designated as an 
 55.10  enterprise zone is allocated $3,000,000 to be used to provide 
 55.11  grants under this section for the duration of the program.  Each 
 55.12  city of the second class designated as an economically depressed 
 55.13  area by the United States Department of Commerce is allocated 
 55.14  $300,000 to be used to provide grants under this section for the 
 55.15  duration of the program.  For fiscal year 1998 and subsequent 
 55.16  years, the proration in section 469.31 shall continue to apply 
 55.17  until the amount designated in this subdivision is 
 55.18  expended.  For the allocation in fiscal year 1998 and subsequent 
 55.19  years, the commissioner may use up to 15 percent of the 
 55.20  allocation to the city of Minneapolis for a grant to the city of 
 55.21  Minneapolis and up to 15 percent of the allocation to the city 
 55.22  of St. Paul for a grant to the city of St. Paul, for 
 55.23  administration of the program or employment services provided to 
 55.24  the employers and employees involved in the incentive grant 
 55.25  program under this section. 
 55.26     (b) The incentive grant is in an amount equal to 20 percent 
 55.27  of the wages paid to an employee, not to exceed $5,000 per 
 55.28  employee per calendar year.  The incentive grant is available to 
 55.29  an employer for a zone resident employed in the zone at 
 55.30  full-time wage levels of not less than 170 percent of minimum 
 55.31  wage 110 percent of the federal poverty level for a family of 
 55.32  four, as determined by the United States Department of 
 55.33  Agriculture.  The incentive grant is not available to workers 
 55.34  employed in construction or employees of financial institutions, 
 55.35  gambling enterprises, public utilities, sports, fitness, and 
 55.36  health facilities, or racetracks.  The employee must be employed 
 56.1   at that rate at the time the business applies for a grant, and 
 56.2   must have been employed for at least one year at the business.  
 56.3   A grant may be provided only for new jobs; for purposes of this 
 56.4   section, a "new job" is a job that did not exist in Minnesota 
 56.5   before May 6, 1994.  The incentive grant authority is available 
 56.6   for the five calendar years after the application has been 
 56.7   approved to the extent the allocation to the city remains 
 56.8   available to fund the grants, and if the city certifies to the 
 56.9   commissioner on an annual basis that the business is in 
 56.10  compliance with the plan to recruit, hire, train, and retain 
 56.11  zone residents.  The employer may designate an organization that 
 56.12  provides employment services to receive all or a portion of the 
 56.13  employer's incentive grant. 
 56.14     Sec. 74.  [REPEALER.] 
 56.15     Minnesota Statutes 1996, sections 116J.581; and 116J.990, 
 56.16  subdivision 7, are repealed. 
 56.17     Sec. 75.  [EFFECTIVE DATE.] 
 56.18     Section 35 is effective the day following final enactment. 
 56.19                             ARTICLE 2 
 56.20                   PETROLEUM TANK RELEASE CLEANUP 
 56.21     Section 1.  Minnesota Statutes 1996, section 115B.03, 
 56.22  subdivision 5, is amended to read: 
 56.23     Subd. 5.  [EMINENT DOMAIN.] (a) The state, an agency of the 
 56.24  state, or a political subdivision is not a responsible person 
 56.25  under this section solely as a result of the acquisition of 
 56.26  property, or as a result of providing funds for the acquisition 
 56.27  of such property either through loan or grant, if the property 
 56.28  was acquired by the state, an agency of the state, or a 
 56.29  political subdivision that acquires property (1) through 
 56.30  exercise of the power of eminent domain, or (2) through 
 56.31  negotiated purchase in lieu of, or after filing a petition for 
 56.32  the taking of the property through eminent domain, or (3) after 
 56.33  adopting a redevelopment or development plan under sections 
 56.34  469.001 to 469.134 describing the property and stating its 
 56.35  intended use and the necessity of its taking is not a 
 56.36  responsible person under this section solely as a result of the 
 57.1   acquisition of the property, (4) after adopting a layout plan 
 57.2   for highway development under sections 161.15 to 161.241 
 57.3   describing the property and stating its intended use and the 
 57.4   necessity of its taking, or (5) through the use of a loan to 
 57.5   purchase right-of-way in the seven-county metropolitan area 
 57.6   under section 473.167.  
 57.7      (b) A person who acquires property from the state, an 
 57.8   agency of the state, or a political subdivision, is not a 
 57.9   responsible person under this section solely as a result of the 
 57.10  acquisition of property if the property was acquired by the 
 57.11  state, agency, or political subdivision through exercise of the 
 57.12  power of eminent domain or by negotiated purchase after filing a 
 57.13  petition for the taking of the property through eminent domain 
 57.14  or, after adopting a redevelopment or development plan under 
 57.15  sections 469.001 to 469.134 describing the property and stating 
 57.16  its intended use and the necessity of its taking, or after 
 57.17  adopting a layout plan for highway development under sections 
 57.18  161.15 to 161.241 describing the property and stating its 
 57.19  intended use and the necessity of its taking. 
 57.20     Sec. 2.  Minnesota Statutes 1996, section 115C.021, is 
 57.21  amended by adding a subdivision to read: 
 57.22     Subd. 3a.  [EMINENT DOMAIN.] (a) The department of 
 57.23  transportation is not responsible for a release from a tank 
 57.24  under this section solely as a result of the acquisition of 
 57.25  property or as a result of providing funds for the acquisition 
 57.26  of such property either through loan or grant, if the property 
 57.27  was acquired by the department through exercise of the power of 
 57.28  eminent domain, through negotiated purchase in lieu of or after 
 57.29  filing a petition for the taking of the property through eminent 
 57.30  domain, or after adopting a layout plan for highway development 
 57.31  under sections 161.15 to 161.241 describing the property and 
 57.32  stating its intended use and the necessity of its taking.  
 57.33     (b) A person who acquires property from the department, 
 57.34  other than property acquired through a land exchange, is not a 
 57.35  responsible person under this section solely as a result of the 
 57.36  acquisition of property if the property was acquired by the 
 58.1   department through exercise of the power of eminent domain, by 
 58.2   negotiated purchase after filing a petition for the taking of 
 58.3   the property through eminent domain, or after adopting a layout 
 58.4   plan for highway development under sections 161.15 to 161.241 
 58.5   describing the property and stating its intended use and the 
 58.6   necessity of its taking. 
 58.7      Sec. 3.  Minnesota Statutes 1996, section 115C.03, 
 58.8   subdivision 9, is amended to read: 
 58.9      Subd. 9.  [REQUESTS FOR REVIEW, INVESTIGATION, AND 
 58.10  OVERSIGHT.] (a) The commissioner may, upon request:  
 58.11     (1) assist in determining whether a release has occurred; 
 58.12  and 
 58.13     (2) assist in or supervise the development and 
 58.14  implementation of reasonable and necessary corrective actions; 
 58.15  and 
 58.16     (3) assist in or supervise the investigation, development, 
 58.17  and implementation of actions to minimize, eliminate, or clean 
 58.18  up petroleum contamination at sites where it is not certain that 
 58.19  the contamination is attributable to a release.  
 58.20     (b) Assistance may include review of agency records and 
 58.21  files and review and approval of a requester's investigation 
 58.22  plans and reports and corrective action plans and implementation.
 58.23     (c) Assistance may include the issuance of a written 
 58.24  determination that an owner or prospective buyer of real 
 58.25  property will not be a responsible person under section 
 58.26  115C.021, if the commissioner finds the release came from a tank 
 58.27  not located on the property.  The commissioner may also issue a 
 58.28  written confirmation that the real property was the site of a 
 58.29  release and that the tank from which the release occurred has 
 58.30  been removed or that the agency has issued a site closure letter 
 58.31  and has not revoked that status.  The issuance of the written 
 58.32  determination or confirmation applies to tanks not on the 
 58.33  property or removed only and does not affect liability for 
 58.34  releases from tanks that are on the property at the time of 
 58.35  purchase.  The commissioner may also issue site closure letters 
 58.36  and nonresponsible person determinations for sites contaminated 
 59.1   by petroleum where it is not certain that the contamination is 
 59.2   attributable to a release.  The written determination or 
 59.3   confirmation extends to the successors and assigns of the person 
 59.4   to whom it originally applied, if the successors and assigns are 
 59.5   not otherwise responsible for the release. 
 59.6      (d) The person requesting assistance under this subdivision 
 59.7   shall pay the agency for the agency's cost, as determined by the 
 59.8   commissioner, of providing assistance.  Money received by the 
 59.9   agency for assistance under this subdivision must be deposited 
 59.10  in the state treasury and credited to an account in the special 
 59.11  revenue fund.  Money in this account is annually appropriated to 
 59.12  the commissioner for purposes of administering the subdivision. 
 59.13     Sec. 4.  Minnesota Statutes 1996, section 115C.08, 
 59.14  subdivision 4, is amended to read: 
 59.15     Subd. 4.  [EXPENDITURES.] (a) Money in the fund may only be 
 59.16  spent: 
 59.17     (1) to administer the petroleum tank release cleanup 
 59.18  program established in this chapter; 
 59.19     (2) for agency administrative costs under sections 116.46 
 59.20  to 116.50, sections 115C.03 to 115C.06, and costs of corrective 
 59.21  action taken by the agency under section 115C.03, including 
 59.22  investigations; 
 59.23     (3) for costs of recovering expenses of corrective actions 
 59.24  under section 115C.04; 
 59.25     (4) for training, certification, and rulemaking under 
 59.26  sections 116.46 to 116.50; 
 59.27     (5) for agency administrative costs of enforcing rules 
 59.28  governing the construction, installation, operation, and closure 
 59.29  of aboveground and underground petroleum storage tanks; 
 59.30     (6) for reimbursement of the harmful substance compensation 
 59.31  account under subdivision 5 and section 115B.26, subdivision 4; 
 59.32     (7) for administrative and staff costs as set by the board 
 59.33  to administer the petroleum tank release program established in 
 59.34  this chapter; and 
 59.35     (8) for corrective action performance audits under section 
 59.36  115C.093; and 
 60.1      (9) for contamination cleanup grants, as provided in 
 60.2   paragraph (c). 
 60.3      (b) Except as provided in paragraph (c), money in the fund 
 60.4   is appropriated to the board to make reimbursements or payments 
 60.5   under this section. 
 60.6      (c) $6,200,000 is annually appropriated from the fund to 
 60.7   the commissioner of trade and economic development for 
 60.8   contamination cleanup grants under section 116J.554, provided 
 60.9   that money appropriated in this paragraph may be used only for 
 60.10  cleanup costs attributable to petroleum contamination, as 
 60.11  determined by the commissioner of the pollution control agency. 
 60.12  Of this amount, the commissioner may spend up to $120,000 
 60.13  annually for administration of the contamination cleanup grant 
 60.14  program. 
 60.15     Sec. 5.  Minnesota Statutes 1996, section 115C.09, 
 60.16  subdivision 3, is amended to read: 
 60.17     Subd. 3.  [REIMBURSEMENTS; SUBROGATION; APPROPRIATION.] (a) 
 60.18  The board shall reimburse an eligible applicant from the fund in 
 60.19  the following amounts: 
 60.20     (1) 90 percent of the total reimbursable costs on the first 
 60.21  $250,000 and 75 percent on any remaining costs in excess of 
 60.22  $250,000 on a site; 
 60.23     (2) for corrective actions at a residential site used as a 
 60.24  permanent residence at the time the release was discovered, 92.5 
 60.25  percent of the total reimbursable costs on the first $100,000 
 60.26  and 100 percent of any remaining costs in excess of $100,000; or 
 60.27     (3) 90 percent of the total reimbursable costs on the first 
 60.28  $250,000 and 100 percent of the cumulative total reimbursable 
 60.29  costs in excess of $250,000 at all sites in which the 
 60.30  responsible person had interest, and for which the commissioner 
 60.31  has not issued a closure letter as of April 3, 1996, if the 
 60.32  responsible person dispensed less than 1,000,000 gallons of 
 60.33  petroleum at each location in each of the last three calendar 
 60.34  years that the responsible person dispensed petroleum at the 
 60.35  location and: 
 60.36     (i) has owned no more than three locations in the state at 
 61.1   which motor fuel was dispensed into motor vehicles and has 
 61.2   discontinued operation of all petroleum retail operations; or 
 61.3      (ii) has owned no more than one location in the state at 
 61.4   which motor fuel was dispensed into motor vehicles.; or 
 61.5      (4) With respect to projects begun on or after January 1, 
 61.6   1997, 90 percent of the total amount of all of the following 
 61.7   costs, regardless of whether a release has occurred at the 
 61.8   site:  tank removal, closure in place, backfill, resurfacing, 
 61.9   utility service restoration, and, if a release has occurred at 
 61.10  the site, any reimbursable costs under subdivision 1.  This 
 61.11  clause applies only if the tank or tanks involved are 
 61.12  underground tanks, and if the responsible person dispensed less 
 61.13  than 400,000 gallons of motor fuel during the last year in which 
 61.14  petroleum products were dispensed to the public at the location, 
 61.15  and the responsible person owns no more than one location in 
 61.16  this or any other state at which motor fuel was dispensed into 
 61.17  motor vehicles or watercraft.  This clause expires December 31, 
 61.18  1999. 
 61.19     Not more than $1,000,000 may be reimbursed for costs 
 61.20  associated with a single release, regardless of the number of 
 61.21  persons eligible for reimbursement, and not more than $2,000,000 
 61.22  may be reimbursed for costs associated with a single tank 
 61.23  facility. 
 61.24     (b) A reimbursement may not be made from the fund under 
 61.25  this chapter until the board has determined that the costs for 
 61.26  which reimbursement is requested were actually incurred and were 
 61.27  reasonable. 
 61.28     (c) When an applicant has obtained responsible competitive 
 61.29  bids or proposals according to rules promulgated under this 
 61.30  chapter prior to June 1, 1995, the eligible costs for the tasks, 
 61.31  procedures, services, materials, equipment, and tests of the low 
 61.32  bid or proposal are presumed to be reasonable by the board, 
 61.33  unless the costs of the low bid or proposal are substantially in 
 61.34  excess of the average costs charged for similar tasks, 
 61.35  procedures, services, materials, equipment, and tests in the 
 61.36  same geographical area during the same time period. 
 62.1      (d) When an applicant has obtained a minimum of two 
 62.2   responsible competitive bids or proposals on forms prescribed by 
 62.3   the board and where the rules promulgated under this chapter 
 62.4   after June 1, 1995, designate maximum costs for specific tasks, 
 62.5   procedures, services, materials, equipment and tests, the 
 62.6   eligible costs of the low bid or proposal are deemed reasonable 
 62.7   if the costs are at or below the maximums set forth in the rules.
 62.8      (e) Costs incurred for change orders executed as prescribed 
 62.9   in rules promulgated under this chapter after June 1, 1995, are 
 62.10  presumed reasonable if the costs are at or below the maximums 
 62.11  set forth in the rules, unless the costs in the change order are 
 62.12  above those in the original bid or proposal or are 
 62.13  unsubstantiated and inconsistent with the process and standards 
 62.14  required by the rules. 
 62.15     (f) A reimbursement may not be made from the fund in 
 62.16  response to either an initial or supplemental application for 
 62.17  costs incurred after June 4, 1987, that are payable under an 
 62.18  applicable insurance policy, except that if the board finds that 
 62.19  the applicant has made reasonable efforts to collect from an 
 62.20  insurer and failed, the board shall reimburse the applicant. 
 62.21     (g) If the board reimburses an applicant for costs for 
 62.22  which the applicant has insurance coverage, the board is 
 62.23  subrogated to the rights of the applicant with respect to that 
 62.24  insurance coverage, to the extent of the reimbursement by the 
 62.25  board.  The board may request the attorney general to bring an 
 62.26  action in district court against the insurer to enforce the 
 62.27  board's subrogation rights.  Acceptance by an applicant of 
 62.28  reimbursement constitutes an assignment by the applicant to the 
 62.29  board of any rights of the applicant with respect to any 
 62.30  insurance coverage applicable to the costs that are reimbursed.  
 62.31  Notwithstanding this paragraph, the board may instead request a 
 62.32  return of the reimbursement under subdivision 5 and may employ 
 62.33  against the applicant the remedies provided in that subdivision, 
 62.34  except where the board has knowingly provided reimbursement 
 62.35  because the applicant was denied coverage by the insurer. 
 62.36     (h) Money in the fund is appropriated to the board to make 
 63.1   reimbursements under this chapter.  A reimbursement to a state 
 63.2   agency must be credited to the appropriation account or accounts 
 63.3   from which the reimbursed costs were paid. 
 63.4      (i) The board may reduce the amount of reimbursement to be 
 63.5   made under this chapter if it finds that the applicant has not 
 63.6   complied with a provision of this chapter, a rule or order 
 63.7   issued under this chapter, or one or more of the following 
 63.8   requirements: 
 63.9      (1) the agency was given notice of the release as required 
 63.10  by section 115.061; 
 63.11     (2) the applicant, to the extent possible, fully cooperated 
 63.12  with the agency in responding to the release; and 
 63.13     (3) the state and federal rules and regulations applicable 
 63.14  to the condition or operation of the tank when the noncompliance 
 63.15  caused or failed to mitigate the release. 
 63.16     (j) The reimbursement may be reduced as much as 100 percent 
 63.17  for failure by the applicant to comply with the requirements in 
 63.18  paragraph (i), clauses (1) to (3).  In determining the amount of 
 63.19  the reimbursement reduction, the board shall consider:  
 63.20     (1) the reasonable determination by the agency of the 
 63.21  environmental impact of the noncompliance; 
 63.22     (2) whether the noncompliance was negligent, knowing, or 
 63.23  willful; 
 63.24     (3) the deterrent effect of the award reduction on other 
 63.25  tank owners and operators; and 
 63.26     (4) the amount of reimbursement reduction recommended by 
 63.27  the commissioner. 
 63.28     (k) An applicant may assign the right to receive 
 63.29  reimbursement to each lender who advanced funds to pay the costs 
 63.30  of the corrective action or to each contractor or consultant who 
 63.31  provided corrective action services.  An assignment must be made 
 63.32  by filing with the board a document, in a form prescribed by the 
 63.33  board, indicating the identity of the applicant, the identity of 
 63.34  the assignee, the dollar amount of the assignment, and the 
 63.35  location of the corrective action.  An assignment signed by the 
 63.36  applicant is valid unless terminated by filing a termination 
 64.1   with the board, in a form prescribed by the board, which must 
 64.2   include the written concurrence of the assignee.  The board 
 64.3   shall maintain an index of assignments filed under this 
 64.4   paragraph.  The board shall pay the reimbursement to the 
 64.5   applicant and to one or more assignees by a multiparty check.  
 64.6   The board has no liability to an applicant for a payment under 
 64.7   an assignment meeting the requirements of this paragraph. 
 64.8      Sec. 6.  Minnesota Statutes 1996, section 115C.09, is 
 64.9   amended by adding a subdivision to read: 
 64.10     Subd. 3e.  [DEPARTMENT OF TRANSPORTATION ELIGIBILITY.] The 
 64.11  department of transportation may apply to the board and is 
 64.12  eligible for reimbursement of reimbursable costs associated with 
 64.13  property that the department has acquired under section 
 64.14  115C.021, subdivision 3a, if corrective action pursuant to a 
 64.15  plan reviews and approved by the commissioner of the pollution 
 64.16  control agency in accordance with applicable rules and guidance 
 64.17  documents was taken on the entire property so acquired.  
 64.18  Notwithstanding subdivision 3, paragraph (a), the department of 
 64.19  transportation shall receive 100 percent of total reimbursable 
 64.20  costs associated with a single release up to $1,000,000. 
 64.21     Sec. 7.  Minnesota Statutes 1996, section 115C.13, is 
 64.22  amended to read: 
 64.23     115C.13 [REPEALER.] 
 64.24     Sections 115C.01, 115C.02, 115C.021, 115C.03, 115C.04, 
 64.25  115C.045, 115C.05, 115C.06, 115C.065, 115C.07, 115C.08, 115C.09, 
 64.26  115C.092, 115C.10, 115C.11, and 115C.12, are repealed effective 
 64.27  June 30, 2000 2005. 
 64.28     Sec. 8.  Minnesota Statutes 1996, section 116J.552, 
 64.29  subdivision 4, is amended to read: 
 64.30     Subd. 4.  [DEVELOPMENT AUTHORITY.] "Development authority" 
 64.31  includes a statutory or home rule charter city, county, housing 
 64.32  and redevelopment authority, economic development authority, and 
 64.33  a port authority. 
 64.34     Sec. 9.  [REPORT ON COORDINATION OF CLEANUP AND 
 64.35  REDEVELOPMENT OF CONTAMINATED PROPERTIES.] 
 64.36     The commissioner of trade and economic development, in 
 65.1   consultation with the commissioners of the pollution control 
 65.2   agency, commerce, agriculture, and revenue, and the director of 
 65.3   the metropolitan council, shall issue a report to the 
 65.4   legislature by January 15, 1998, which includes: 
 65.5      (1) recommendations from the agencies with regard to 
 65.6   establishing and administering an office to provide for the 
 65.7   coordination of programs providing state and regional assistance 
 65.8   in the cleanup and redevelopment of contaminated properties, as 
 65.9   well as any legislative recommendations to provide for an 
 65.10  effective and efficient office; and 
 65.11     (2) a plan for additional changes to existing contaminated 
 65.12  property programs, including the consolidation of programs, to 
 65.13  streamline applications for assistance, ensure efficient and 
 65.14  effective administration of these programs, and provide for an 
 65.15  overall, coordinated state policy for the cleanup and 
 65.16  redevelopment of contaminated properties. 
 65.17     Sec. 10.  [EFFECTIVE DATE.] 
 65.18     Sections 1 to 4 and 6 to 9 are effective July 1, 1997.  
 65.19  Section 5 is effective retroactive to January 1, 1997. 
 65.20                             ARTICLE 3 
 65.21       MINNESOTA EMPLOYMENT AND ECONOMIC DEVELOPMENT PROGRAM 
 65.22     Section 1.  [268.6715] [1997 MINNESOTA EMPLOYMENT AND 
 65.23  ECONOMIC DEVELOPMENT PROGRAM.] 
 65.24     The 1997 Minnesota employment and economic development 
 65.25  program is established to assist businesses and communities to 
 65.26  create jobs that provide the wages, benefits, and on-the-job 
 65.27  training opportunities necessary to help low-wage workers and 
 65.28  people transitioning from public assistance to get and retain 
 65.29  jobs, and to help their families to move out of poverty.  
 65.30  Employment obtained under this program is not excluded from the 
 65.31  definition of "employment" by section 268.04, subdivision 12, 
 65.32  clause 10, paragraph (d). 
 65.33     Sec. 2.  Minnesota Statutes 1996, section 268.672, 
 65.34  subdivision 6, is amended to read: 
 65.35     Subd. 6.  [ELIGIBLE JOB APPLICANT.] "Eligible job 
 65.36  applicant" means a person who:  (1) has been a resident of this 
 66.1   state for at least one month, (2) is unemployed, (3) is not 
 66.2   receiving and is not qualified to receive reemployment insurance 
 66.3   or workers' compensation, and (4) is determined to be likely to 
 66.4   be available for employment by an eligible employer for the 
 66.5   duration of the job.  
 66.6      For the purposes of this subdivision, a farmer or any 
 66.7   member of a farm family household who can demonstrate severe 
 66.8   household financial need must be considered unemployed. 
 66.9      (1) has attempted to secure a nonsubsidized job by 
 66.10  completing comprehensive job readiness and is: 
 66.11     (i) a temporary assistance for needy families (TANF) 
 66.12  recipient who is making good faith efforts to comply with the 
 66.13  family support agreement as defined under section 256.032, 
 66.14  subdivision 7a, but has failed to find suitable employment; or 
 66.15     (ii) a family general assistance recipient; 
 66.16     (2) is a member of a household supported only by: 
 66.17     (i) a low-income worker; or 
 66.18     (ii) a person who is underemployed as that term is defined 
 66.19  in section 268.61, subdivision 5; or 
 66.20     (3) is a member of a family that is eligible for, but not 
 66.21  receiving public assistance. 
 66.22     Sec. 3.  Minnesota Statutes 1996, section 268.672, is 
 66.23  amended by adding a subdivision to read: 
 66.24     Subd. 13.  [COMPREHENSIVE JOB READINESS.] "Comprehensive 
 66.25  job readiness" means a job search program administered by a 
 66.26  county, its designee, or workforce service area that teaches 
 66.27  self-esteem, marketable work habits, job-seeking skills, and 
 66.28  life-management skills, and may include job retention services. 
 66.29     Sec. 4.  Minnesota Statutes 1996, section 268.672, is 
 66.30  amended by adding a subdivision. 
 66.31     Subd. 14.  [ELIGIBLE PROGRAM PARTICIPANT.] "Eligible 
 66.32  program participant" means an eligible job applicant who is 
 66.33  participating in comprehensive job readiness, subsidized 
 66.34  employment, or job retention services.  An individual who has 
 66.35  been dismissed for cause or quit subsidized employment without 
 66.36  good cause is not eligible for subsidized employment under the 
 67.1   program. 
 67.2      Sec. 5.  Minnesota Statutes 1996, section 268.672, is 
 67.3   amended by adding a subdivision to read:  
 67.4      Subd. 15.  [EMPLOYER.] "Employer" means a private or public 
 67.5   employer that: 
 67.6      (1) agrees to create a job that is long term and full time, 
 67.7   except a private nonprofit or public employer may provide a 
 67.8   temporary job; 
 67.9      (2) pays a wage of at least $2 per hour higher than the 
 67.10  minimum wage; and 
 67.11     (3) agrees to retain a participant at the same wage and 
 67.12  benefit level of the wage subsidy period after satisfactory 
 67.13  completion of the subsidy period. 
 67.14     Sec. 6.  Minnesota Statutes 1996, section 268.672, is 
 67.15  amended by adding a subdivision to read: 
 67.16     Subd. 16.  [FULL TIME.] "Full time" means 40 hours of work 
 67.17  per week or any other schedule considered full time by the 
 67.18  employer.  In the case of a temporary assistance to needy 
 67.19  families recipient, "full time" means 40 hours comprised of the 
 67.20  number of hours of work needed to meet the recipient's work 
 67.21  requirement plus the number of hours spent in a training or 
 67.22  education program.  The employer is required to pay and is 
 67.23  eligible to receive the subsidy only for hours worked by the 
 67.24  participant for the employer.  
 67.25     Sec. 7.  Minnesota Statutes 1996, section 268.672, is 
 67.26  amended by adding a subdivision to read: 
 67.27     Subd. 17.  [JOB RETENTION SERVICES.] "Job retention 
 67.28  services" means assistance that would not otherwise be provided 
 67.29  to an eligible job applicant with child care, transportation, 
 67.30  job coaching, employer-employee mediation, and other forms of 
 67.31  support services to help an applicant to transition to 
 67.32  employment and retain a job. 
 67.33     Sec. 8.  Minnesota Statutes 1996, section 268.672, is 
 67.34  amended by adding a subdivision to read: 
 67.35     Subd. 18.  [LOW-INCOME WORKER.] "Low-income worker" means a 
 67.36  worker who earns no more than $1 per hour more than the minimum 
 68.1   wage. 
 68.2      Sec. 9.  Minnesota Statutes 1996, section 268.672, is 
 68.3   amended by adding a subdivision to read: 
 68.4      Subd. 19.  [MINIMUM WAGE.] "Minimum wage" means the greater 
 68.5   of (1) the federal minimum wage in effect on or after September 
 68.6   1, 1997, and (2) the state minimum wage under section 177.24. 
 68.7      Sec. 10.  Minnesota Statutes 1996, section 268.672, is 
 68.8   amended by adding a subdivision to read: 
 68.9      Subd. 20.  [PROGRAM.] "Program" means the 1997 Minnesota 
 68.10  employment and economic development program. 
 68.11     Sec. 11.  Minnesota Statutes 1996, section 268.672, is 
 68.12  amended by adding a subdivision to read: 
 68.13     Subd. 21.  [WORKFORCE SERVICE AREA.] "Workforce service 
 68.14  area" means a service delivery area designated by the governor 
 68.15  under the Job Training Partnership Act, United States Code, 
 68.16  title 29, section 1501, et seq. 
 68.17     Sec. 12.  Minnesota Statutes 1996, section 268.673, 
 68.18  subdivision 3, is amended to read: 
 68.19     Subd. 3.  [DEPARTMENT OF ECONOMIC SECURITY.] The 
 68.20  commissioner shall supervise wage subsidies, comprehensive job 
 68.21  readiness, and job retention services and shall provide 
 68.22  technical assistance to the local service units for the purpose 
 68.23  of delivering wage subsidies counties in their delivery.  
 68.24     Sec. 13.  Minnesota Statutes 1996, section 268.673, 
 68.25  subdivision 4a, is amended to read: 
 68.26     Subd. 4a.  [CONTRACTS WITH SERVICE PROVIDERS COUNTIES.] The 
 68.27  commissioner shall contract directly with a certified local 
 68.28  service provider counties, their designees, or workforce service 
 68.29  areas to deliver wage subsidies, comprehensive job readiness, 
 68.30  and job retention services if (1) each county served by 
 68.31  the provider designee or workforce service area agrees to the 
 68.32  contract and knows the amount of wage subsidy money, 
 68.33  comprehensive job readiness money, and job retention services 
 68.34  money allocated to the county under section 268.6751, and (2) 
 68.35  the provider designee or workforce service area agrees to meet 
 68.36  regularly with each county being served.  The contracts must 
 69.1   require that no more than ten percent of the contract amount be 
 69.2   expended for administration. 
 69.3      Counties and workforce service areas are encouraged to 
 69.4   designate community-based providers of comprehensive job 
 69.5   readiness and job retention services. 
 69.6      Sec. 14.  Minnesota Statutes 1996, section 268.673, 
 69.7   subdivision 5, is amended to read: 
 69.8      Subd. 5.  [REPORT.] Each entity county delivering wage 
 69.9   subsidies, comprehensive job readiness, and job retention 
 69.10  services shall report to the commissioner on a quarterly basis: 
 69.11     (1) the number of persons placed in private sector jobs, in 
 69.12  temporary public sector jobs, or in other services; 
 69.13     (2) the outcome for each participant placed in a private 
 69.14  sector job, in a temporary public sector job, or in another 
 69.15  service; 
 69.16     (3) the number and type of employers employing persons 
 69.17  under the program; 
 69.18     (4) the amount of money spent in each local service unit 
 69.19  county for wages, comprehensive job readiness, and job retention 
 69.20  services for each type of employment and each type of other 
 69.21  expense; 
 69.22     (5) the age, educational experience, family status, gender, 
 69.23  priority group status, race, and work experience of each person 
 69.24  in the program; 
 69.25     (6) the amount of wages received by persons while in the 
 69.26  program and 60 days after completing the program; and 
 69.27     (7) for each classification of persons described in clause 
 69.28  (5), the outcome of the wage subsidy placement, the 
 69.29  comprehensive job readiness, and the job retention services, 
 69.30  including length of time employed; nature of employment, whether 
 69.31  private sector, temporary public sector, or other service; and 
 69.32  the hourly wages; and 
 69.33     (8) any other information requested by the commissioner.  
 69.34  Each report must include cumulative information, as well as 
 69.35  information for each quarter. 
 69.36     Data collected on individuals under this subdivision are 
 70.1   private data on individuals as defined in section 13.02, 
 70.2   subdivision 12, except that summary data may be provided under 
 70.3   section 13.05, subdivision 7. 
 70.4      Sec. 15.  Minnesota Statutes 1996, section 268.6751, 
 70.5   subdivision 1, is amended to read: 
 70.6      Subdivision 1.  [WAGE SUBSIDIES ALLOCATION.] Wage subsidy 
 70.7   money, comprehensive job readiness money, and job retention 
 70.8   services money must be allocated to local service units in the 
 70.9   following manner: 
 70.10     (a) The commissioner shall allocate 87.5 percent of the 
 70.11  funds available for allocation to local service units for wage 
 70.12  subsidy programs as follows:  the proportion of the wage subsidy 
 70.13  money available to each local service unit must be based on the 
 70.14  number of unemployed persons in the local service unit for the 
 70.15  most recent six-month period and the number of work readiness 
 70.16  assistance cases and aid to families with dependent children 
 70.17  cases in the local service unit for the most recent six-month 
 70.18  period. 
 70.19     (b) Five percent of the money available for wage subsidy 
 70.20  programs must be allocated at the discretion of the commissioner.
 70.21     (c) Seven and one-half percent of the money available for 
 70.22  wage subsidy programs must be allocated at the discretion of the 
 70.23  commissioner to provide jobs for residents of federally 
 70.24  recognized Indian reservations.  
 70.25     (d) counties in proportion to the number of persons living 
 70.26  at or below the federal poverty threshold in each county.  By 
 70.27  December 31 of each fiscal year, providers and local service 
 70.28  units counties, designees, and workforce service areas receiving 
 70.29  wage subsidy money, comprehensive job readiness money, and job 
 70.30  retention services money shall report to the commissioner on the 
 70.31  use of allocated funds.  The commissioner shall reallocate 
 70.32  uncommitted funds for each fiscal year according to the formula 
 70.33  in paragraph (a) this subdivision. 
 70.34     Sec. 16.  Minnesota Statutes 1996, section 268.677, 
 70.35  subdivision 1, is amended to read: 
 70.36     Subdivision 1.  [WAGE SUBSIDY, COMPREHENSIVE JOB READINESS, 
 71.1   AND JOB RETENTION SERVICES MONEY.] To the extent allowable under 
 71.2   federal and state law, wage subsidy money, comprehensive job 
 71.3   readiness money, and job retention services money must be pooled 
 71.4   and used in combination with money from other employment and 
 71.5   training services or income maintenance and support 
 71.6   services.  At least 75 percent of the money appropriated for 
 71.7   wage subsidies must be used to pay wages for eligible job 
 71.8   applicants.  For each eligible job applicant employed, the 
 71.9   maximum state contribution from any combination of public 
 71.10  assistance grant diversion and employment and training services 
 71.11  governed under this chapter, including wage subsidies, is $4 per 
 71.12  hour for wages and $1 per hour for fringe benefits.  The use of 
 71.13  wage subsidies is limited as follows:  
 71.14     (a) The wage subsidy is $2.50 per hour for wages and up to 
 71.15  $1 per hour for reimbursement of employer-paid benefits for 
 71.16  health care, child care, or transportation expenses for 
 71.17  employers paying an eligible program participant an hourly wage 
 71.18  that is $2 to $2.99 per hour higher than the minimum wage. 
 71.19     (b) The wage subsidy is $4 per hour for wages and up to $1 
 71.20  per hour for reimbursement of employer paid benefits for health 
 71.21  care, child care, or transportation expenses for employers 
 71.22  paying an eligible program participant an hourly wage that is $3 
 71.23  or more per hour higher than the minimum wage. 
 71.24     (c) The wage subsidy for each an eligible job applicant 
 71.25  placed in private or nonprofit employment, the state may 
 71.26  subsidize wages may be paid for a maximum of 1,040 hours over a 
 71.27  period of 26 weeks.  Employers are encouraged to use money from 
 71.28  other sources to provide increased wages to applicants they 
 71.29  employ.  Job retention services may be provided to an eligible 
 71.30  program participant over a period of 78 weeks.  
 71.31     (b) For each eligible job applicant participating in a job 
 71.32  training program and placed in private sector employment, the 
 71.33  state may subsidize wages for a maximum of 1,040 hours over a 
 71.34  period of 52 weeks.  
 71.35     (c) For each eligible job applicant placed in a community 
 71.36  investment program job, the state may provide wage subsidies for 
 72.1   a maximum of 780 hours over a maximum of 26 weeks.  For an 
 72.2   individual placed in a community investment program job, the 
 72.3   county share of the wage subsidy shall be 25 percent.  Counties 
 72.4   may use money from sources other than public assistance and wage 
 72.5   subsidies, including private grants, contributions from 
 72.6   nonprofit corporations and other units of government, and other 
 72.7   state money, to increase the wages or hours of persons employed 
 72.8   in community investment programs.  
 72.9      (d) Notwithstanding the limitations of paragraphs (a) and 
 72.10  (b), money may be used to provide a state contribution for wages 
 72.11  and fringe benefits in private sector jobs for eligible 
 72.12  applicants who had previously held temporary jobs with eligible 
 72.13  government and nonprofit agencies or who had previously held 
 72.14  community investment program jobs for which a state contribution 
 72.15  had been made, and who are among the priority groups established 
 72.16  in section 268.676, subdivision 1.  The use of money under this 
 72.17  paragraph shall be for a maximum of 1,040 hours over a maximum 
 72.18  period of 26 weeks per job applicant. An employer of more than 
 72.19  four full-time employees shall receive wage subsidies for no 
 72.20  more than 25 percent of the employer's full-time workforce. 
 72.21     Sec. 17.  Minnesota Statutes 1996, section 268.681, is 
 72.22  amended to read: 
 72.23     268.681 [BUSINESS EMPLOYMENT.] 
 72.24     Subdivision 1.  [ELIGIBLE BUSINESSES.] A business employer 
 72.25  is an eligible employer if it enters into a written contract, 
 72.26  signed and subscribed to under oath, with a local service 
 72.27  unit county or its contractor designee, containing assurances 
 72.28  that: 
 72.29     (a) funds received by a business shall be used only as 
 72.30  permitted under sections 268.672 to 268.682; 
 72.31     (b) the business has submitted information to the local 
 72.32  service unit county or, its contractor designee, or 
 72.33  workforce service area (1) describing the duties and proposed 
 72.34  compensation of each employee proposed to be hired under the 
 72.35  program; and (2) demonstrating that, with the funds provided 
 72.36  under sections 268.672 to 268.682, the business is likely to 
 73.1   succeed and continue to employ persons hired using wage 
 73.2   subsidies; 
 73.3      (c) the business will use funds exclusively for 
 73.4   compensation and fringe benefits of eligible job applicants and 
 73.5   will provide employees hired with these funds with fringe 
 73.6   benefits and other terms and conditions of employment comparable 
 73.7   to those provided to other employees of the business who do 
 73.8   comparable work; 
 73.9      (d) the funds are necessary to allow the business to begin, 
 73.10  or to employ additional people, expand, or to fill other open 
 73.11  positions but not to fill positions which would be filled even 
 73.12  in the absence of wage subsidies; 
 73.13     (e) the business will cooperate with the local service unit 
 73.14  county and the commissioner in collecting data to assess the 
 73.15  result of wage subsidies and the effectiveness of comprehensive 
 73.16  job readiness and job retention services; and 
 73.17     (f) the business is in compliance with all applicable 
 73.18  affirmative action, fair labor, health, safety, and 
 73.19  environmental standards.  
 73.20     Subd. 1a.  [INELIGIBLE BUSINESSES.] A business employer is 
 73.21  ineligible to participate in the program and is ineligible to 
 73.22  receive wage subsidy money if:  
 73.23     (1) the business is a temporary employment agency; or 
 73.24     (2) the business is a restaurant.  
 73.25     For purposes of this subdivision, "temporary employment 
 73.26  agency" means a business that hires people to work in temporary 
 73.27  positions for employers who are clients of that business.  
 73.28     For purposes of this subdivision, "restaurant" includes, 
 73.29  but is not limited to, fast food restaurants. 
 73.30     Subd. 1b.  [DISCHARGE OF PROGRAM PARTICIPANT.] A program 
 73.31  participant discharged from employment may challenge the 
 73.32  discharge as a violation of subdivision 1. 
 73.33     Subd. 2.  [PRIORITIES.] (a) In allocating funds among 
 73.34  eligible businesses, the local service unit county or its 
 73.35  contractor designee shall give priority to: 
 73.36     (1) businesses that will provide applicants with on-the-job 
 74.1   training and marketable job skills; 
 74.2      (2) businesses engaged in manufacturing; 
 74.3      (2) (3) nonretail businesses that are small businesses as 
 74.4   defined in section 645.445; and 
 74.5      (3) (4) businesses that export products outside the state. 
 74.6      (b) In addition to paragraph (a), a local service unit 
 74.7   county must give priority to businesses that: 
 74.8      (1) have a high potential for growth and long-term job 
 74.9   creation; 
 74.10     (2) are labor intensive; 
 74.11     (3) make high use of local and Minnesota resources; 
 74.12     (4) are under ownership of women and minorities; 
 74.13     (5) make high use of new technology; 
 74.14     (6) produce energy conserving materials or services or are 
 74.15  involved in development of renewable sources of energy; and 
 74.16     (7) have their primary place of business in Minnesota.  
 74.17     Subd. 3.  [PAYBACK.] (a) A business receiving wage 
 74.18  subsidies shall repay 70 percent of the amount initially 
 74.19  received for each eligible job applicant employed, if the 
 74.20  employee does not continue in the employment of the business 
 74.21  beyond the six-month subsidized period.  If the employee 
 74.22  continues in the employment of the business for one year or 
 74.23  longer after the six-month subsidized period, the business need 
 74.24  not repay any of the funds received for that employee's wages.  
 74.25  If the employee continues in the employment of the business for 
 74.26  a period of less than one year after the expiration of the 
 74.27  six-month subsidized period, the business shall receive a 
 74.28  proportional reduction in the amount it must repay. 
 74.29     (b) If an employer dismisses an employee for good cause and 
 74.30  works in good faith with the local service unit or its 
 74.31  contractor to employ and train another person referred by 
 74.32  the local service unit county or, its contractor 
 74.33  designee, or workforce service area, the payback formula shall 
 74.34  apply as if the original person had continued in employment.  
 74.35     (c) If a business receiving funds under the program reduces 
 74.36  the hourly wage after the six-month subsidy, the business must 
 75.1   repay a portion of the subsidy in direct proportion to the 
 75.2   amount that the hourly wage is reduced. 
 75.3      (d) A repayment schedule shall be negotiated and agreed to 
 75.4   by the local service unit county and the business prior to the 
 75.5   disbursement of the funds and is subject to renegotiation.  The 
 75.6   local service unit county shall forward 25 percent of the 
 75.7   payments received under this subdivision to the commissioner on 
 75.8   a monthly basis and shall retain the remaining 75 percent for 
 75.9   local program expenditures.  Notwithstanding section 268.677, 
 75.10  subdivision 2, the local service unit may use up to 20 percent 
 75.11  of its share of the funds returned retain payments received 
 75.12  under this subdivision for any administrative costs associated 
 75.13  with the collection of the funds under this subdivision and for 
 75.14  entering into new wage subsidy agreements.  At least 80 percent 
 75.15  of the local service unit's share of the funds returned under 
 75.16  this subdivision must be used as provided in section 268.677.  
 75.17  The commissioner shall deposit payments forwarded to the 
 75.18  commissioner under this subdivision in the general fund. 
 75.19     (e) If an employer is more than 60 days late in repaying a 
 75.20  subsidy as required in this subdivision, the county may engage a 
 75.21  licensed collection agency or refer the matter to the department 
 75.22  for collection under chapter 16D. 
 75.23     Subd. 4.  [SUCCESSORSHIP.] A contract entered into by an 
 75.24  owner, employer, or manager under the wage subsidy program is 
 75.25  legally binding on any successor owner, employer, or manager. 
 75.26     Sec. 18.  [268.6811] [FUND COMBINATIONS.] 
 75.27     To the extent allowable under federal law, money for job 
 75.28  training under Title II a of the Job Training Partnership Act, 
 75.29  United States Code, title 29, section 1501 et seq. and money 
 75.30  from other employment and training services or income 
 75.31  maintenance and support services, except services administered 
 75.32  under chapter 116L, may be pooled and used in combination with 
 75.33  money to provide subsidized employment, comprehensive job 
 75.34  readiness and job retention services under Minnesota Statutes, 
 75.35  section 268.6715 to 268.682. 
 75.36     Sec. 19.  [REPEALER.] 
 76.1      Minnesota Statutes 1996, sections 268.672, subdivision 4; 
 76.2   268.673, subdivision 6; 268.676; 268.677, subdivisions 2 and 3; 
 76.3   268.678; and 268.679, subdivision 3, are repealed. 
 76.4                              ARTICLE 4 
 76.5                               HOUSING 
 76.6      Section 1.  [LEAD HAZARD REDUCTION; ADVISORY TASK FORCE.] 
 76.7      Subdivision 1.  [PURPOSE; DUTIES.] An advisory task force 
 76.8   on lead hazard reduction is established to: 
 76.9      (1) study and propose a program to certify residential 
 76.10  rental property as lead-safe; 
 76.11     (2) study and propose essential maintenance practices and 
 76.12  standard treatments to ensure that a residence remains lead-safe 
 76.13  after certification; 
 76.14     (3) identify the current barriers that cause lead liability 
 76.15  exclusion riders to be added to property owner insurance 
 76.16  liability policies; 
 76.17     (4) identify the legal rights and responsibilities of 
 76.18  landlords to provide lead-safe housing and the legal rights and 
 76.19  responsibilities of both landlords and tenants to maintain 
 76.20  lead-safe property; and 
 76.21     (5) study the legal liability of landlords and tenants when 
 76.22  a child becomes lead poisoned and propose methods to reduce 
 76.23  property owner liability while still protecting the legal rights 
 76.24  of children who become lead poisoned. 
 76.25     The task force shall report its findings and proposals to 
 76.26  the 1998 legislature. 
 76.27     Subd. 2.  [MEMBERSHIP.] Members of the advisory task force 
 76.28  on lead hazard reduction are as follows: 
 76.29     (1) the chairs, or the chairs' designees, of the house of 
 76.30  representatives housing and housing finance division, and the 
 76.31  family and early childhood education finance division; 
 76.32     (2) the chairs, or the chairs' designees, of the senate 
 76.33  jobs, energy, and community development committee, and the 
 76.34  family and early childhood education finance division; 
 76.35     (3) one house member from the minority caucus, appointed by 
 76.36  the speaker, and one senator from the minority caucus, appointed 
 77.1   by the subcommittee on committees of the committee on rules and 
 77.2   administration; 
 77.3      (4) the commissioner of commerce or the commissioner's 
 77.4   designee; 
 77.5      (5) the commissioner of the housing finance agency or the 
 77.6   commissioner's designee; 
 77.7      (6) the commissioner of health or the commissioner's 
 77.8   designee; and 
 77.9      (7) up to 15 members appointed jointly by the commissioner 
 77.10  of commerce and the commissioner of the housing finance agency 
 77.11  to represent the following interests:  landlords, tenants, 
 77.12  attorneys practicing landlord tenant law, parents of children 
 77.13  with lead poisoning, swab teams, insurers, the education 
 77.14  association, family physicians and pediatricians, realtors, the 
 77.15  Children's Defense Fund, the federal Environmental Protection 
 77.16  Agency, building inspectors, the paint and coatings industry, 
 77.17  and local boards of health. 
 77.18     Subd. 3.  [CHAIR.] The commissioners of the housing finance 
 77.19  agency and the department of commerce shall convene the first 
 77.20  meeting of the advisory task force.  At the advisory task 
 77.21  force's first meeting, the members shall select a member to 
 77.22  serve as chair. 
 77.23     Subd. 4.  [TECHNICAL ASSISTANCE.] The commissioners of 
 77.24  health, commerce, and the housing finance agency and the 
 77.25  attorney general shall provide assistance to the advisory task 
 77.26  force, including technical assistance relating to lead hazards 
 77.27  and the reduction of lead hazards, insurance, landlord-tenant 
 77.28  law, and other assistance as requested by the task force. 
 77.29     Subd. 5.  [EXPENSES; ADMINISTRATIVE SUPPORT.] Members of 
 77.30  the advisory task force must receive per diem and expenses, in 
 77.31  the amount provided in Minnesota Statutes, section 15.059, 
 77.32  subdivision 3.  Members' compensation and other administrative 
 77.33  expenses of the advisory task force must be paid for by the 
 77.34  Minnesota housing finance agency. 
 77.35     Subd. 6.  [EFFECTIVE DATE; EXPIRATION.] This section is 
 77.36  effective the day following final enactment and expires June 30, 
 78.1   1998. 
 78.2      Sec. 2.  Minnesota Statutes 1996, section 268.38, 
 78.3   subdivision 7, is amended to read: 
 78.4      Subd. 7.  [FUNDING COORDINATION.] Grant recipients shall 
 78.5   combine funds awarded under this section with other funds from 
 78.6   public and private sources.  Programs receiving funds under this 
 78.7   section are also eligible for assistance under section 462A.05, 
 78.8   subdivision 20.  
 78.9      Sec. 3.  [366.152] [CONDITIONAL USES.] 
 78.10     A manufactured home park, as defined in section 327.14, 
 78.11  subdivision 3, is a conditional use in a zoning district that 
 78.12  allows the construction or placement of a building used or 
 78.13  intended to be used by two or more families. 
 78.14     Sec. 4.  Minnesota Statutes 1996, section 394.25, is 
 78.15  amended by adding a subdivision to read: 
 78.16     Subd. 3b.  [CONDITIONAL USES.] A manufactured home park, as 
 78.17  defined in section 327.14, subdivision 3, is a conditional use 
 78.18  in a zoning district that allows the construction or placement 
 78.19  of a building used or intended to be used by two or more 
 78.20  families. 
 78.21     Sec. 5.  Minnesota Statutes 1996, section 462.357, is 
 78.22  amended by adding a subdivision to read: 
 78.23     Subd. 1b.  [CONDITIONAL USES.] A manufactured home park, as 
 78.24  defined in section 327.14, subdivision 3, is a conditional use 
 78.25  in a zoning district that allows the construction or placement 
 78.26  of a building used or intended to be used by two or more 
 78.27  families. 
 78.28     Sec. 6.  Minnesota Statutes 1996, section 462A.05, 
 78.29  subdivision 14d, is amended to read: 
 78.30     Subd. 14d.  [ACCESSIBILITY LOAN PROGRAM.] Rehabilitation 
 78.31  loans authorized under subdivision 14 may be made to eligible 
 78.32  persons and families households without limitations relating to 
 78.33  the maximum incomes of the borrowers. 
 78.34     A person or family household is eligible to receive an 
 78.35  accessibility loan under the following conditions: 
 78.36     (1) the borrower or a member of an individual residing in 
 79.1   the borrower's family requires a level of care provided in a 
 79.2   hospital, skilled nursing facility, or intermediate care 
 79.3   facility for persons with mental retardation or related 
 79.4   conditions; home has a permanent physical or mental condition 
 79.5   that substantially limits one or more major life activities; and 
 79.6      (2) home care is appropriate; and 
 79.7      (3) the improvement to the housing will enable assist the 
 79.8   borrower or a member of the borrower's family to reside 
 79.9   household in residing in the housing. 
 79.10     Sec. 7.  Minnesota Statutes 1996, section 462A.05, 
 79.11  subdivision 30, is amended to read: 
 79.12     Subd. 30.  [AGENCY INVESTMENT IN CERTAIN NOTES AND 
 79.13  MORTGAGES.] It may invest in, purchase, acquire, and take 
 79.14  assignments of existing notes and mortgages not closed for the 
 79.15  purpose of sale to the agency, from lenders that are nonprofit 
 79.16  or nonprofit entities, as defined in the agency's rules, 
 79.17  provided that:  (1) the notes and mortgages evidence loans for 
 79.18  the construction, rehabilitation, purchase, improvement, or 
 79.19  refinancing of residential housing intended for occupancy and 
 79.20  occupied by low- and moderate-income persons and families; and 
 79.21  (2) the loan sellers utilize the funds derived from the 
 79.22  purchases in accordance with the authority contained in section 
 79.23  462A.07, subdivision 12, for the purposes and objectives of 
 79.24  sections 462A.02, 462A.03, 462A.05, 462A.07, and 462A.21; and 
 79.25  (3) the purchases are subject to security and limitations on the 
 79.26  costs and expenses of the loan sellers incidental to the 
 79.27  utilization of the purchase proceeds as the agency may 
 79.28  determine.  The proceeds of the purchases authorized by this 
 79.29  subdivision shall not be subject to the limitations of section 
 79.30  462A.21, subdivisions 4k, 6, 9, and 12 6 and 9.  In addition, it 
 79.31  may invest in, purchase, acquire, and take assignments of 
 79.32  existing federally insured mortgages for multifamily housing, 
 79.33  not closed for the purpose of sale to the agency, from any 
 79.34  banking institution, savings association, or other lender or 
 79.35  financial intermediary approved by the members; provided that 
 79.36  the multifamily housing is benefited by contracts for federal 
 80.1   housing assistance payments. 
 80.2      Sec. 8.  Minnesota Statutes 1996, section 462A.05, 
 80.3   subdivision 39, is amended to read: 
 80.4      Subd. 39.  [EQUITY TAKE-OUT LOANS.] The agency may make 
 80.5   equity take-out loans to owners of section 8 project-based and 
 80.6   section 236 rental property upon which the agency holds a first 
 80.7   mortgage.  The owner of a section 8 project-based rental 
 80.8   property must agree to participate in the section 8 program and 
 80.9   extend the low-income affordability restrictions on the housing 
 80.10  for the maximum term of the section 8 contract.  The owner of 
 80.11  section 236 rental property must agree to participate in the 
 80.12  section 236 interest reduction payments program, to extend any 
 80.13  existing low-income affordability restrictions on the housing, 
 80.14  and to extend any rental assistance payments for the maximum 
 80.15  term permitted under the agreement for rental assistance 
 80.16  payments.  The equity take-out loan must be secured by a 
 80.17  subordinate loan on the property and may include additional 
 80.18  appropriate security determined necessary by the agency. 
 80.19     Sec. 9.  Minnesota Statutes 1996, section 462A.05, is 
 80.20  amended by adding a subdivision to read: 
 80.21     Subd. 41.  [DEMONSTRATION GRANTS.] The agency may make 
 80.22  demonstration grants to owners or managers of multifamily rental 
 80.23  property upon which the agency holds a mortgage for the purpose 
 80.24  of developing or coordinating services that promote the tenant's 
 80.25  ability to live independently, support the tenant's 
 80.26  self-sufficiency, improve the relationship between the tenants 
 80.27  and the community, or that otherwise strengthen the community. 
 80.28     Sec. 10.  Minnesota Statutes 1996, section 462A.13, is 
 80.29  amended to read: 
 80.30     462A.13 [BONDS AND NOTES; PURCHASE AND CANCELLATION BY 
 80.31  AGENCY.] 
 80.32     The agency, subject to such agreements with noteholders or 
 80.33  bondholders as may then exist, shall have power out of any funds 
 80.34  available therefor to purchase notes or bonds of the agency, 
 80.35  which shall thereupon be canceled, either at initial issuance or 
 80.36  at a subsequent date, for cancellation or as an investment of 
 81.1   funds of the agency until required for its authorized purposes.  
 81.2   If so purchased, the notes or bonds shall be purchased at a 
 81.3   price not exceeding (a) if the notes or bonds are then 
 81.4   redeemable, the redemption price then applicable plus accrued 
 81.5   interest to the next interest payment date thereon purchase 
 81.6   date, or (b) if the notes or bonds are not redeemable, the 
 81.7   redemption price applicable on the first date after such 
 81.8   purchase upon which the notes or bonds become subject to 
 81.9   redemption plus accrued interest to such the purchase date.  
 81.10     Sec. 11.  Minnesota Statutes 1996, section 462A.201, 
 81.11  subdivision 2, is amended to read: 
 81.12     Subd. 2.  [LOW-INCOME HOUSING.] (a) The agency may, in 
 81.13  consultation with the advisory committee, use money from the 
 81.14  housing trust fund account to provide loans or grants for 
 81.15  projects for the development, construction, acquisition, 
 81.16  preservation, and rehabilitation of low-income rental and 
 81.17  limited equity cooperative housing units, including temporary 
 81.18  and transitional housing, and homes for ownership.  Loans or 
 81.19  grants for residential housing for migrant farmworkers may be 
 81.20  made under this section.  No more than 20 percent of available 
 81.21  funds may be used for home ownership projects.  
 81.22     (b) A rental or limited equity cooperative permanent 
 81.23  housing project must meet one of the following income tests: 
 81.24     (1) at least 75 percent of the rental and cooperative units 
 81.25  must be rented to or cooperatively owned by persons and families 
 81.26  whose income does not exceed 30 percent of the median family 
 81.27  income for the metropolitan area as defined in section 473.121, 
 81.28  subdivision 2; or 
 81.29     (2) all of the units funded by the housing trust fund 
 81.30  account must be used for the benefit of persons and families 
 81.31  whose income does not exceed 30 percent of the median family 
 81.32  income for the metropolitan area as defined in section 473.121, 
 81.33  subdivision 2. 
 81.34     The median family income may be adjusted for families of 
 81.35  five or more. 
 81.36     (c) Homes for ownership must be owned or purchased by 
 82.1   persons and families whose income does not exceed 50 percent of 
 82.2   the metropolitan area median income, adjusted for family size. 
 82.3      (d) In making the grants, the agency shall determine the 
 82.4   terms and conditions of repayment and the appropriate security, 
 82.5   if any, should repayment be required.  To promote the geographic 
 82.6   distribution of grants and loans, the agency may designate a 
 82.7   portion of the grant or loan awards to be set aside for projects 
 82.8   located in specified congressional districts or other 
 82.9   geographical regions specified by the agency.  The agency may 
 82.10  adopt rules for awarding grants and loans under this subdivision.
 82.11     Sec. 12.  Minnesota Statutes 1996, section 462A.205, is 
 82.12  amended to read: 
 82.13     462A.205 [RENT ASSISTANCE FOR FAMILY STABILIZATION 
 82.14  DEMONSTRATION PROJECT.] 
 82.15     Subdivision 1.  [FAMILY STABILIZATION DEMONSTRATION 
 82.16  PROJECT.] The agency, in consultation with the department of 
 82.17  human services, may establish a rent assistance for family 
 82.18  stabilization demonstration project.  The purpose of the project 
 82.19  is to provide rental assistance to families who, at the time of 
 82.20  initial eligibility for rental assistance under this section, 
 82.21  were receiving public assistance, and had a caretaker parent 
 82.22  participating in a self-sufficiency program and at least one 
 82.23  minor child and to provide rental assistance to families who, at 
 82.24  the time of initial eligibility for rental assistance under this 
 82.25  section, were receiving public assistance, and had a caretaker 
 82.26  parent who had earned income and with at least one minor child.  
 82.27  The demonstration project is limited to counties with high 
 82.28  average housing costs.  The program must offer two options:  a 
 82.29  voucher option and a project-based voucher option.  The funds 
 82.30  may be distributed on a request for proposal basis.  
 82.31     Subd. 2.  [DEFINITIONS.] For the purposes of this section, 
 82.32  the following terms have the meanings given them. 
 82.33     (a) "Caretaker parent" means a parent, relative caretaker, 
 82.34  or minor caretaker as defined by the aid to families with 
 82.35  dependent children program, sections 256.72 to 256.87, or its 
 82.36  successor program. 
 83.1      (b) "County agency" means the agency designated by the 
 83.2   county board to implement financial assistance for current 
 83.3   public assistance programs and for the Minnesota family 
 83.4   investment program statewide. 
 83.5      (c) "Counties with high average housing costs" means 
 83.6   counties whose average federal section 8 fair market rents as 
 83.7   determined by the Department of Housing and Urban Development 
 83.8   are in the highest one-third of average rents in the state. 
 83.9      (c) (d) "Designated rental property" is rental property (1) 
 83.10  that is made available by a self-sufficiency program for use by 
 83.11  participating families and meets federal section 8 existing 
 83.12  quality standards, or (2) that has received federal, state, or 
 83.13  local rental rehabilitation assistance since January 1, 1987, 
 83.14  and meets federal section 8 existing housing quality standards. 
 83.15     (e) "Earned income" for a family receiving rental 
 83.16  assistance under this section means cash or in-kind income 
 83.17  earned through the receipt of wages, salary, commissions, profit 
 83.18  from employment activities, net profit from self-employment 
 83.19  activities, payments made by an employer for regularly accrued 
 83.20  vacation or sick leave, and any other profit from activity 
 83.21  earned through effort or labor. 
 83.22     (f) "Family or participating family" means: 
 83.23     (1) a family with a caretaker parent who is participating 
 83.24  in a self-sufficiency program and with at least one minor child; 
 83.25     (2) a family that, at the time it began receiving rent 
 83.26  assistance under this section, had a caretaker parent 
 83.27  participating in a self-sufficiency program and had at least one 
 83.28  minor child; 
 83.29     (3) a family with a caretaker parent who is receiving 
 83.30  public assistance and has earned income and with at least one 
 83.31  minor child; or 
 83.32     (4) a family that, at the time it began receiving rent 
 83.33  assistance under this section, had a caretaker parent who had 
 83.34  earned income and at least one minor child. 
 83.35     (d) (g) "Gross family income" for a family receiving rental 
 83.36  assistance under this section means the gross amount of the 
 84.1   wages, salaries, social security payments, pensions, workers' 
 84.2   compensation, reemployment insurance, public assistance 
 84.3   payments, alimony, child support, and income from assets 
 84.4   received by the family. 
 84.5      (e) (h) "Local housing organization" means the agency of 
 84.6   local government responsible for administering the Department of 
 84.7   Housing and Urban Development's section 8 existing voucher and 
 84.8   certificate program or a nonprofit or for-profit organization 
 84.9   experienced in housing management. 
 84.10     (f) (i) "Public assistance" means aid to families with 
 84.11  dependent children, or its successor program, family general 
 84.12  assistance, or its successor program, or family work readiness, 
 84.13  or its successor program. 
 84.14     (g) (j) "Self-sufficiency program" means a program operated 
 84.15  by a certified an employment and training service provider as 
 84.16  defined in section 256.736, subdivision 1a, paragraph 
 84.17  (e) chapter 256J, an employability program administered by a 
 84.18  community action agency, or courses of study at an accredited 
 84.19  institution of higher education pursued with at least half-time 
 84.20  student status. 
 84.21     Subd. 3.  [LOCAL HOUSING ORGANIZATION.] The agency may 
 84.22  contract with a local housing organization to administer the 
 84.23  rent assistance under this section.  The agency may pay the 
 84.24  local housing organization an administrative fee.  The 
 84.25  administrative fee may not exceed $40 per unit per month. 
 84.26     Subd. 4.  [AMOUNT AND PAYMENT OF RENT ASSISTANCE.] (a) This 
 84.27  subdivision applies to both the voucher option and the 
 84.28  project-based voucher option.  
 84.29     (b) Within the limits of available appropriations, eligible 
 84.30  families may receive monthly rent assistance for a 36-month 
 84.31  period starting with the month the family first receives rent 
 84.32  assistance under this section.  The amount of the family's 
 84.33  portion of the rental payment is equal to at least 30 percent of 
 84.34  gross income. 
 84.35     (c) The rent assistance must be paid by the local housing 
 84.36  organization to the property owner. 
 85.1      (d) Subject to the limitations in paragraph (e), the amount 
 85.2   of rent assistance is the difference between the rent and the 
 85.3   family's portion of the rental payment. 
 85.4      (e) In no case: 
 85.5      (1) may the amount of monthly rent assistance be more than 
 85.6   $250 for housing located within the metropolitan area, as 
 85.7   defined in section 473.121, subdivision 2, or more than $200 for 
 85.8   housing located outside of the metropolitan area; 
 85.9      (2) may the owner receive more rent for assisted units than 
 85.10  for comparable unassisted units; nor 
 85.11     (3) may the amount of monthly rent assistance be more than 
 85.12  the difference between the family's portion of the rental 
 85.13  payment and the fair market rent for the unit as determined by 
 85.14  the Department of Housing and Urban Development. 
 85.15     Subd. 4a.  [ADDITIONAL AUTHORIZED EXPENSES.] In addition to 
 85.16  the monthly rent assistance authorized under subdivision 4, rent 
 85.17  assistance may include up to $200 for a security deposit for 
 85.18  housing located outside the metropolitan area, as defined in 
 85.19  section 473.121, subdivision 2, and up to $250 for a security 
 85.20  deposit for housing located within the metropolitan area. 
 85.21     Subd. 5.  [VOUCHER OPTION.] At least one-half of the 
 85.22  appropriated funds must be made available for a voucher option.  
 85.23  Under the voucher option, the Minnesota housing finance agency, 
 85.24  in consultation with the department of human services, will 
 85.25  award a number of vouchers to self-sufficiency program 
 85.26  administrators for participating families and to county agencies 
 85.27  for participating families with earned income.  Families may use 
 85.28  the voucher for any rental housing that is certified by the 
 85.29  local housing organization as meeting section 8 existing housing 
 85.30  quality standards. 
 85.31     Subd. 6.  [PROJECT-BASED VOUCHER OPTION.] A portion of the 
 85.32  appropriated funds must be made available for a project-based 
 85.33  voucher option.  Under the project-based voucher option, the 
 85.34  Minnesota housing finance agency, in consultation with the 
 85.35  department of human services, will award a number of vouchers to 
 85.36  self-sufficiency program administrators and to county agencies 
 86.1   for participating families who live in designated rental 
 86.2   property that is certified by a local housing organization as 
 86.3   meeting section 8 existing housing quality standards.  The 
 86.4   Minnesota housing finance agency and local housing organizations 
 86.5   must work with self-sufficiency program administrators to 
 86.6   identify rental property that has received rental rehabilitation 
 86.7   assistance since January 1, 1987.  The agency may set aside a 
 86.8   portion of the funds to be used in connection with rental 
 86.9   rehabilitation projects which will be completed by July 1, 1992. 
 86.10     Subd. 7.  [PROPERTY OWNER.] In order to receive rent 
 86.11  assistance payments, the property owner must enter into a 
 86.12  standard lease agreement with the family which includes a clause 
 86.13  providing for good cause evictions only.  Otherwise, the lease 
 86.14  may be any standard lease agreement.  The agency and local 
 86.15  housing organizations must make model lease agreements available 
 86.16  to participating families and property owners.  
 86.17     Subd. 8.  [AUTHORIZED LEVERAGE OF MONEY.] The agency may 
 86.18  leverage federal program money with program money from the 
 86.19  family stabilization demonstration project authorized under this 
 86.20  section. 
 86.21     Subd. 9.  [VOUCHERS FOR FAMILIES WITH A CARETAKER PARENT 
 86.22  WITH EARNED INCOME.] (a) Applications to provide the rental 
 86.23  assistance for families with a caretaker parent with earned 
 86.24  income under either the voucher or project-based option must be 
 86.25  submitted jointly by a local housing organization and a county 
 86.26  agency.  The application must include a description of how the 
 86.27  caretaker parent participants will be selected. 
 86.28     (b) County agencies awarded vouchers must select the 
 86.29  caretaker parents with earned income whose families will receive 
 86.30  the rent assistance.  The county agency must notify the local 
 86.31  housing organization and the agency if: 
 86.32     (1) the caretaker parent no longer has earned income and is 
 86.33  not in compliance with the caretaker parent's employment plan or 
 86.34  job search plan; and 
 86.35     (2) for a period of six months, the caretaker parent has no 
 86.36  earned income and has failed to comply with the job search 
 87.1   support plan or employment plan. 
 87.2      (c) The county agency must provide the caretaker parent who 
 87.3   has no earned income and is not in compliance with the job 
 87.4   search support plan or employment plan with the notice specified 
 87.5   in Minnesota Rules, part 4900.3379.  The county agency must send 
 87.6   a subsequent notice to the caretaker parent, the local housing 
 87.7   organization, and the Minnesota housing finance agency 60 days 
 87.8   before the termination of rental assistance. 
 87.9      (d) If the local housing organization receives notice from 
 87.10  a county agency that a caretaker parent whose initial 
 87.11  eligibility for rental assistance was based on the receipt of 
 87.12  earned income no longer has earned income and for a period of 
 87.13  six months after the termination of earned income has failed to 
 87.14  comply with the caretaker parent's job search plan or employment 
 87.15  plan, the local housing organization must notify the property 
 87.16  owner that rental assistance may terminate and notify the 
 87.17  caretaker parent of the termination of rental assistance under 
 87.18  Minnesota Rules, part 4900.3380. 
 87.19     (e) The county agency awarded vouchers for families with a 
 87.20  caretaker parent with earned income must comply with the 
 87.21  provisions of Minnesota Rules, part 4900.3377. 
 87.22     (f) For families whose initial eligibility for rental 
 87.23  assistance was based on the receipt of earned income, rental 
 87.24  assistance must be terminated under any of the following 
 87.25  conditions: 
 87.26     (1) the family is evicted from the property for cause; 
 87.27     (2) the caretaker parent no longer has earned income and, 
 87.28  after six months, is not in compliance with the parent's job 
 87.29  search or employment plan; 
 87.30     (3) 30 percent of the family's gross income equals or 
 87.31  exceeds the amount of the housing costs for two or more 
 87.32  consecutive months; 
 87.33     (4) the family has received rental assistance under this 
 87.34  section for a 36-month period; or 
 87.35     (5) the rental unit no longer meets federal section 8 
 87.36  existing housing quality standards, the owner refused to make 
 88.1   necessary repairs or alterations to bring the rental unit into 
 88.2   compliance within a reasonable time, and the caretaker parent 
 88.3   refused to relocate to a qualifying unit. 
 88.4      (g) If a county agency determines that a caretaker parent 
 88.5   no longer has earned income and is not in compliance with the 
 88.6   parent's job search or employment plan, the county agency must 
 88.7   notify the caretaker parent of that determination.  The notice 
 88.8   must be in writing and must explain the effect of not having 
 88.9   earned income or failing to be in compliance with the job search 
 88.10  or employment plan will have on the rental assistance.  The 
 88.11  notice must: 
 88.12     (1) state that rental assistance will end six months after 
 88.13  earned income has ended; 
 88.14     (2) specify the date the rental assistance will end; 
 88.15     (3) explain that after the date specified, the caretaker 
 88.16  parent will be responsible for the total housing costs; 
 88.17     (4) describe the actions the caretaker parent may take to 
 88.18  avoid termination of rental assistance; and 
 88.19     (5) inform the caretaker parent of the caretaker parent's 
 88.20  responsibility to notify the county agency if the caretaker 
 88.21  parent has earned income.  
 88.22     Sec. 13.  Minnesota Statutes 1996, section 462A.206, 
 88.23  subdivision 2, is amended to read: 
 88.24     Subd. 2.  [AUTHORIZATION.] The agency may make grants or 
 88.25  loans to cities or nonprofit organizations for the purposes of 
 88.26  construction, acquisition, rehabilitation, demolition, permanent 
 88.27  financing, refinancing, gap financing of single or multifamily 
 88.28  housing, or full cycle home ownership services, as defined in 
 88.29  section 462A.209, subdivision 2.  Gap financing is financing for 
 88.30  the difference between the cost of the improvement of the 
 88.31  blighted property, including acquisition, demolition, 
 88.32  rehabilitation, and construction, and the market value of the 
 88.33  property upon sale.  The agency shall take into account the 
 88.34  amount of money that the city or nonprofit organization 
 88.35  leverages from other sources in awarding grants and loans.  The 
 88.36  agency shall also consider the extent to which the grant or loan 
 89.1   recipient will coordinate use of the funds with its other 
 89.2   housing-related efforts or other housing-related efforts in the 
 89.3   recipient's geographic area.  The city or nonprofit organization 
 89.4   must indicate in its application how the proposed project is 
 89.5   consistent with the consolidated housing plan.  Not less than 
 89.6   ten days before submitting its application to the agency, a 
 89.7   nonprofit organization must notify the city in which the project 
 89.8   will be located of its intent to apply for funds.  The city may 
 89.9   submit to the agency its written comments on the nonprofit 
 89.10  organization's application and the agency shall consider the 
 89.11  city's comments in reviewing the application.  Cities and 
 89.12  nonprofit organizations may use the grants and loans to 
 89.13  establish revolving loan funds and to provide grants and loans 
 89.14  to eligible mortgagors.  The city or nonprofit organization may 
 89.15  determine the terms and conditions of the grants and loans.  An 
 89.16  agency loan may only be used by a city or nonprofit organization 
 89.17  to make loans. 
 89.18     Sec. 14.  Minnesota Statutes 1996, section 462A.206, 
 89.19  subdivision 4, is amended to read: 
 89.20     Subd. 4.  [DESIGNATED AREAS.] For the purposes of focusing 
 89.21  resources, a city or a nonprofit organization located in a 
 89.22  metropolitan statistical area must designate neighborhoods 
 89.23  within which the grants or loans may be used, and a city or 
 89.24  nonprofit organization located outside of a metropolitan 
 89.25  statistical area must designate a geographic area within which 
 89.26  the grants or loans may be used. 
 89.27     Sec. 15.  [462A.2065] [REPORT ON LOSS OF HOUSING.] 
 89.28     Each year, the commissioner shall report to the chair of 
 89.29  the house of representatives housing and housing finance 
 89.30  division and to the chair of the senate jobs, energy, and 
 89.31  community development committee, the information provided in the 
 89.32  reports made to the commissioner under section 469.0305. 
 89.33     Sec. 16.  Minnesota Statutes 1996, section 462A.207, 
 89.34  subdivision 1, is amended to read: 
 89.35     Subdivision 1.  [ESTABLISHMENT.] The agency shall, within 
 89.36  the limits of available appropriations, establish a mortgage 
 90.1   foreclosure prevention and emergency rental assistance program 
 90.2   to provide assistance to low-income and moderate-income persons 
 90.3   who are facing the loss of their housing due to circumstances 
 90.4   beyond their control.  Priority for assistance under this 
 90.5   section must be given to persons and families at or below 60 
 90.6   percent of area median income, adjusted for family size, as 
 90.7   determined by the department of housing and urban development. 
 90.8      Sec. 17.  Minnesota Statutes 1996, section 462A.207, 
 90.9   subdivision 2, is amended to read: 
 90.10     Subd. 2.  [ADMINISTRATION.] The agency may contract with 
 90.11  community-based, nonprofit organizations that meet the 
 90.12  requirements specified in this section to provide either 
 90.13  mortgage foreclosure assistance or rental assistance, or both.  
 90.14  Preference must be given to nonprofit organizations that 
 90.15  demonstrate the greatest ability to leverage program money with 
 90.16  other sources of funding, or to organizations serving areas 
 90.17  without access to mortgage foreclosure assistance or rental 
 90.18  assistance.  The agency may require an organization to match 
 90.19  program money with other money or resources. 
 90.20     Sec. 18.  Minnesota Statutes 1996, section 462A.207, 
 90.21  subdivision 3, is amended to read: 
 90.22     Subd. 3.  [ORGANIZATION ELIGIBILITY.] A nonprofit 
 90.23  organization must be able to demonstrate that it is qualified to 
 90.24  deliver program services, has relevant expertise in mortgage 
 90.25  foreclosure prevention or landlord and tenant procedures, and is 
 90.26  able to perform the duties required under the program.  An 
 90.27  organization must provide the agency with a detailed description 
 90.28  of how the proposed program would be administered, including the 
 90.29  qualifications of staff.  An organization may not be part of, 
 90.30  nor affiliated with, a mortgage lender nor provide assistance to 
 90.31  a household which occupies a housing unit owned or managed by 
 90.32  the organization. 
 90.33     Sec. 19.  Minnesota Statutes 1996, section 462A.207, 
 90.34  subdivision 4, is amended to read: 
 90.35     Subd. 4.  [SELECTION CRITERIA.] The agency shall take the 
 90.36  following criteria into consideration when determining whether 
 91.1   an organization is qualified to administer the program: 
 91.2      (1) the prior experience of the nonprofit organization in 
 91.3   establishing, administering, and maintaining a mortgage 
 91.4   foreclosure prevention or a rental assistance program; 
 91.5      (2) the documented familiarity of the organization 
 91.6   regarding mortgage foreclosure prevention procedures, landlord 
 91.7   and tenant procedures, and other services available to assist 
 91.8   with preventing the loss of housing; 
 91.9      (3) the reasonableness of the proposed budget in meeting 
 91.10  the program objectives; 
 91.11     (4) the documented ability of the organization to provide 
 91.12  financial assistance; and 
 91.13     (5) the documented ability of the organization to provide 
 91.14  mortgage foreclosure prevention or other financial or tenant 
 91.15  counseling. 
 91.16     Sec. 20.  Minnesota Statutes 1996, section 462A.207, 
 91.17  subdivision 6, is amended to read: 
 91.18     Subd. 6.  [ASSISTANCE.] (a) Program assistance includes 
 91.19  general information, screening, assessment, referral services, 
 91.20  case management, advocacy, and financial assistance to borrowers 
 91.21  who are delinquent on mortgage, or contract for deed, or rent 
 91.22  payments. 
 91.23     (b) Not more than one-half of program funding may be used 
 91.24  for mortgage or financial counseling services. 
 91.25     (c) Financial assistance consists of: 
 91.26     (1) payments for delinquent mortgage or contract for deed 
 91.27  payments, future mortgage or contract for deed payments for a 
 91.28  period of up to six months, property taxes, assessments, 
 91.29  utilities, insurance, home improvement repairs, future rent 
 91.30  payments for a period of up to six months, and relocation costs 
 91.31  if necessary, or other costs necessary to prevent foreclosure; 
 91.32  or. 
 91.33     (2) delinquent rent payments, utility bills, any fees or 
 91.34  costs necessary to redeem the property, future rent payments for 
 91.35  a period of up to six months, and relocation costs if necessary. 
 91.36     (d) An individual or family may receive the lesser of six 
 92.1   months or $4,500 of financial assistance. 
 92.2      Sec. 21.  Minnesota Statutes 1996, section 462A.21, 
 92.3   subdivision 12a, is amended to read: 
 92.4      Subd. 12a.  [PROGRAM MONEY TRANSFER.] Grants authorized 
 92.5   under section 462A.05, subdivision 20, may be made only with 
 92.6   specific appropriations by the legislature, but Unencumbered 
 92.7   balances of money appropriated for the purpose of loans or 
 92.8   grants for agency programs under these subdivisions may be 
 92.9   transferred between programs created by these subdivisions or in 
 92.10  accordance with section 462A.20, subdivision 3. 
 92.11     Sec. 22.  [469.0305] [REPORT ON LOSS OF HOUSING.] 
 92.12     Subdivision 1.  [EFFECTS OF WELFARE REFORM.] A public 
 92.13  agency administering a public housing program or a rent subsidy 
 92.14  program shall report to the commissioner of the housing finance 
 92.15  agency by February 1, each year, beginning in 1998, the 
 92.16  reduction in the number of units or section 8 certificates or 
 92.17  vouchers during the year and an assessment of the reasons for 
 92.18  the reduction, including whether it is due to the state's 
 92.19  welfare reform initiatives. 
 92.20     Subd. 2.  [REDUCTION IN LOW-INCOME HOUSING UNITS.] A public 
 92.21  agency that acquires and demolishes housing occupied by persons 
 92.22  whose incomes are less than 50 percent of the area median income 
 92.23  shall report the number of units demolished to the commissioner 
 92.24  of the housing finance agency.  The report must be submitted to 
 92.25  the commissioner of the housing finance agency no later than 
 92.26  March 15 of the following year. 
 92.27     Sec. 23.  [REPEALER.] 
 92.28     Minnesota Statutes 1996, sections 268.39; 462A.05, 
 92.29  subdivision 20; 462A.206, subdivision 5; 462A.21, subdivisions 
 92.30  4k, 12, and 14, are repealed. 
 92.31     Sec. 24.  [EFFECTIVE DATE.] 
 92.32     Section 1 is effective as provided in that section.  The 
 92.33  remainder of this article is effective July 1, 1997. 
 92.34                             ARTICLE 5
 92.35                         CAPITAL INVESTMENT
 92.36     Section 1.  Minnesota Statutes 1996, section 268.917, is 
 93.1   amended to read: 
 93.2      268.917 [EARLY CHILDHOOD LEARNING AND CHILD PROTECTION 
 93.3   FACILITIES.] 
 93.4      The commissioner may make grants to state agencies and 
 93.5   political subdivisions to construct or rehabilitate facilities 
 93.6   for Head Start, early childhood and family education 
 93.7   facilities programs, other early childhood intervention 
 93.8   programs, or demonstration family service centers housing 
 93.9   multiagency collaboratives, with priority to centers in counties 
 93.10  or municipalities with the highest number of children living in 
 93.11  poverty.  The commissioner may also make grants to state 
 93.12  agencies and political subdivisions to construct or rehabilitate 
 93.13  facilities for crisis nurseries or child visitation centers.  
 93.14  The facilities must be owned by the state or a political 
 93.15  subdivision, but may be leased under section 16A.695 to 
 93.16  organizations that operate the programs.  The commissioner shall 
 93.17  prescribe the terms and conditions of the leases.  A grant for 
 93.18  an individual facility must not exceed $200,000 for each program 
 93.19  that is housed in the facility, up to a maximum of $500,000 for 
 93.20  a facility that houses three programs or more.  The commissioner 
 93.21  shall give priority to grants that involve collaboration among 
 93.22  sponsors of programs under this section.  At least 25 percent of 
 93.23  the amounts appropriated for these grants must be used in 
 93.24  conjunction with the youth employment and training programs 
 93.25  operated by the commissioner.  Eligible programs must consult 
 93.26  with appropriate labor organizations to deliver education and 
 93.27  training. 
 93.28     Sec. 2.  Minnesota Statutes 1996, section 446A.04, 
 93.29  subdivision 5, is amended to read: 
 93.30     Subd. 5.  [FEES.] (a) The authority may set and collect 
 93.31  fees for costs incurred by the authority for audits, arbitrage 
 93.32  accounting, and payment of fees charged by the state board of 
 93.33  investment.  The authority may also set and collect fees for 
 93.34  costs incurred by the commissioner, the department of health, 
 93.35  and the pollution control agency, including costs for personnel 
 93.36  and administrative services, for its financings and the 
 94.1   establishment and maintenance of reserve funds.  Fees charged 
 94.2   directly to borrowers upon executing a loan agreement must not 
 94.3   exceed one-half of one percent of the loan amount.  Servicing 
 94.4   fees assessed to loan repayments must not exceed two percent of 
 94.5   the loan repayment.  The disposition of fees collected for costs 
 94.6   incurred by the authority is governed by section 446A.11, 
 94.7   subdivision 13.  The authority shall enter into interagency 
 94.8   agreements to transfer funds into appropriate administrative 
 94.9   accounts established for fees collected under this subdivision 
 94.10  for costs incurred by the commissioner, the department of 
 94.11  health, or the pollution control agency must be credited to the 
 94.12  general fund. 
 94.13     (b) The authority shall annually report to the chairs of 
 94.14  the finance and appropriations committees of the legislature on: 
 94.15     (1) the amount of fees collected under this subdivision for 
 94.16  costs incurred by the authority; 
 94.17     (2) the purposes for which the fee proceeds have been 
 94.18  spent; and 
 94.19     (3) the amount of any remaining balance of fee proceeds. 
 94.20     Sec. 3.  Minnesota Statutes 1996, section 446A.081, 
 94.21  subdivision 1, is amended to read: 
 94.22     Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
 94.23  section, the terms in this subdivision have the meanings given 
 94.24  them.  
 94.25     (b) "Act" means the federal Safe Drinking Water 
 94.26  Infrastructure Financing Act Amendments of 1996, Public Law 
 94.27  Number 104-182. 
 94.28     (c) "Department" means the department of health.  
 94.29     Sec. 4.  Minnesota Statutes 1996, section 446A.081, 
 94.30  subdivision 4, is amended to read: 
 94.31     Subd. 4.  [CAPITALIZATION GRANT AGREEMENT.] The authority 
 94.32  shall enter into an agreement with the administrator of the 
 94.33  United States Environmental Protection Agency to receive 
 94.34  capitalization grants for the fund.  The authority and the 
 94.35  department shall enter into an operating agreement with the 
 94.36  administrator of the United States Environmental Protection 
 95.1   Agency to satisfy the criteria in the act to operate the fund.  
 95.2   The authority and the department may exercise the powers 
 95.3   necessary to comply with the requirements specified in 
 95.4   the agreement agreements and to ensure that loan recipients 
 95.5   comply with all applicable federal and state requirements.  
 95.6      Sec. 5.  Minnesota Statutes 1996, section 446A.081, 
 95.7   subdivision 9, is amended to read: 
 95.8      Subd. 9.  [OTHER USES OF FUND.] The drinking water 
 95.9   revolving loan fund may be used as provided in the act, 
 95.10  including the following uses: 
 95.11     (1) to buy or refinance the debt obligations, at or below 
 95.12  market rates, of public water systems for drinking water 
 95.13  systems, where such debt was incurred after the date of 
 95.14  enactment of the act, for the purposes of construction of the 
 95.15  necessary improvements to comply with the national primary 
 95.16  drinking water regulations under the federal Safe Drinking Water 
 95.17  Act; 
 95.18     (2) to purchase or guarantee insurance for local 
 95.19  obligations to improve credit market access or reduce interest 
 95.20  rates; 
 95.21     (3) to provide a source of revenue or security for the 
 95.22  payment of principal and interest on revenue or general 
 95.23  obligation bonds issued by the authority if the bond proceeds 
 95.24  are deposited in the fund; 
 95.25     (4) to provide loans or loan guarantees for similar 
 95.26  revolving funds established by a governmental unit or state 
 95.27  agency; 
 95.28     (5) to earn interest on fund accounts; and 
 95.29     (6) to pay the reasonable costs incurred by the authority, 
 95.30  the department of trade and economic development, and the 
 95.31  department for conducting activities as authorized and required 
 95.32  under the act up to the limits authorized under the act; and 
 95.33     (7) to develop and administer programs for water system 
 95.34  supervision, source water protection, and related programs 
 95.35  required under the act. 
 95.36     Sec. 6.  Minnesota Statutes 1996, section 446A.12, 
 96.1   subdivision 1, is amended to read: 
 96.2      Subdivision 1.  [BONDING AUTHORITY.] The authority may 
 96.3   issue negotiable bonds in a principal amount that the authority 
 96.4   determines necessary to provide sufficient funds for achieving 
 96.5   its purposes, including the making of loans and purchase of 
 96.6   securities, the payment of interest on bonds of the authority, 
 96.7   the establishment of reserves to secure its bonds, the payment 
 96.8   of fees to a third party providing credit enhancement, and the 
 96.9   payment of all other expenditures of the authority incident to 
 96.10  and necessary or convenient to carry out its corporate purposes 
 96.11  and powers, but not including the making of grants.  Bonds of 
 96.12  the authority may be issued as bonds or notes or in any other 
 96.13  form authorized by law.  The principal amount of bonds issued 
 96.14  and outstanding under this section at any time may not exceed 
 96.15  $450,000,000 $850,000,000, excluding bonds for which refunding 
 96.16  bonds or crossover refunding bonds have been issued. 
 96.17     Sec. 7.  [EFFECTIVE DATE.] 
 96.18     Section 1 is effective the day following final enactment. 
 96.19                             ARTICLE 6 
 96.20             ECONOMIC SECURITY MISCELLANEOUS PROVISIONS 
 96.21     Section 1.  Laws 1997, chapter 85, article 1, section 39, 
 96.22  subdivision 4, is amended to read: 
 96.23     Subd. 4.  [EMPLOYMENT AND TRAINING SERVICE PROVIDER.] 
 96.24  "Employment and training service provider" means: 
 96.25     (1) a public, private, or nonprofit employment and training 
 96.26  agency certified by the commissioner of economic security under 
 96.27  sections 268.0122, subdivision 3, and 268.871, subdivision 1, or 
 96.28  is approved under section 256J.51 and is included in the county 
 96.29  plan submitted under section 256J.50, subdivision 7; or 
 96.30     (2) a public, private, or nonprofit agency that is not 
 96.31  certified by the commissioner under clause (1), but with which a 
 96.32  county has contracted to provide employment and training 
 96.33  services and which is included in the county's plan submitted 
 96.34  under section 256J.50, subdivision 7; or 
 96.35     (3) a county agency, if the county has opted is certified 
 96.36  under clause (1) to provide employment and training services and 
 97.1   the county has indicated that fact in the plan submitted under 
 97.2   section 256J.50, subdivision 7. 
 97.3      Notwithstanding section 268.871, an employment and training 
 97.4   services provider meeting this definition may deliver employment 
 97.5   and training services under this chapter. 
 97.6      Sec. 2.  [EFFECTIVE DATE.] 
 97.7      Section 1 is effective July 1, 1997.