1.1                          A bill for an act 
  1.2             relating to economic development; appropriating money 
  1.3             for housing, economic development, and related 
  1.4             purposes; establishing pilot projects; providing for a 
  1.5             municipal reimbursement; modifying certain loan 
  1.6             criteria; requiring studies; establishing a revolving 
  1.7             loan fund; requiring the commissioner of labor and 
  1.8             industry to provide a brochure; regulating housing; 
  1.9             uniform acts; unclaimed property; enacting the Uniform 
  1.10            Unclaimed Property Act of 1995; making conforming 
  1.11            changes; providing for the Minnesota family assets for 
  1.12            independence initiative; amending Minnesota Statutes 
  1.13            1996, sections 16A.45, subdivisions 1 and 4; 80C.03; 
  1.14            116J.415, subdivision 5; 198.231; 276.19, subdivision 
  1.15            4; 308A.711, subdivisions 1 and 2; 356.65, subdivision 
  1.16            2; 462A.222, subdivision 3; 474A.061, subdivision 2a; 
  1.17            and 624.68; Minnesota Statutes 1997 Supplement, 
  1.18            sections 16A.6701, subdivision 1; 116J.421, 
  1.19            subdivision 1, and by adding a subdivision; and 
  1.20            462A.05, subdivision 39; proposing coding for new law 
  1.21            in Minnesota Statutes, chapters 116J; 181; 345; and 
  1.22            471; proposing coding for new law as Minnesota 
  1.23            Statutes, chapter 119C; repealing Minnesota Statutes 
  1.24            1996, sections 345.31; 345.32; 345.33; 345.34; 345.35; 
  1.25            345.36; 345.37; 345.38; 345.381; 345.39; 345.40; 
  1.26            345.41; 345.42; 345.43; 345.44; 345.45; 345.46; 
  1.27            345.47; 345.485; 345.49; 345.50; 345.51; 345.515; 
  1.28            345.52; 345.525; 345.53; 345.54; 345.55; 345.56; 
  1.29            345.57; 345.58; 345.59; and 345.60; Minnesota Statutes 
  1.30            1997 Supplement, section 345.48. 
  1.31  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.32                             ARTICLE 1 
  1.33                        ECONOMIC DEVELOPMENT 
  1.34  Section 1.  [ECONOMIC DEVELOPMENT APPROPRIATIONS.] 
  1.35     The sums in the columns marked "APPROPRIATIONS" are 
  1.36  appropriated from the general fund, or another named fund, to 
  1.37  the agencies and for the purposes specified in this article, to 
  1.38  be available for the fiscal years indicated for each purpose. 
  2.1                           SUMMARY BY FUND 
  2.2                                            1998           1999 
  2.3   General                              $   483,000    $40,261,000 
  2.4   TOTAL                                $   483,000    $40,261,000 
  2.5                                              APPROPRIATIONS 
  2.6                                          Available for the Year 
  2.7                                              Ending June 30 
  2.8                                             1998         1999 
  2.9   Sec. 2.  DEPARTMENT OF TRADE AND
  2.10  ECONOMIC DEVELOPMENT                $    ...     $    1,775,000 
  2.11  The amounts that may be spent from this 
  2.12  appropriation for each purpose is 
  2.13  specified in the following paragraphs. 
  2.14  (a) East Grand Forks Flood Recovery
  2.15  $200,000 in 1999 is for a grant to the 
  2.16  city of East Grand Forks to supplement 
  2.17  flood recovery efforts.  This is a 
  2.18  one-time appropriation and is not added 
  2.19  to the agency's permanent budget base. 
  2.20  (b) Tourism Advertising and Marketing
  2.21  $500,000 in 1999 is for additional 
  2.22  tourism advertising and is added to the 
  2.23  appropriation for tourism provided in 
  2.24  Laws 1997, chapter 200, article 1, 
  2.25  section 2, subdivision 4. 
  2.26  (c) Minnesota Film Board     
  2.27  $710,000 in 1999 is for transfer to the 
  2.28  revolving loan fund under Minnesota 
  2.29  Statutes, section 116J.545.  
  2.30  (d) Neighborhood Development Center, Inc. 
  2.31  $90,000 in 1999 is for a grant to the 
  2.32  Neighborhood Development Center, Inc.  
  2.33  The center shall use the grant for the 
  2.34  purpose of expanding and improving its 
  2.35  neighborhood and ethnic-based 
  2.36  entrepreneur training, lending, and 
  2.37  support programs in the poorest 
  2.38  communities of Minneapolis and St. Paul.
  2.39  (e) Jobs Skills Partnership Board 
  2.40  $150,000 in 1999 is for the jobs skills 
  2.41  partnership board.  The jobs skills 
  2.42  partnership board, in cooperation with 
  2.43  the departments of economic security 
  2.44  and labor and industry and the 
  2.45  Minnesota state colleges and 
  2.46  universities, shall develop on-the-job 
  2.47  training programs to assist companies 
  2.48  in training workers in the skilled 
  2.49  trades.  The program may include 
  2.50  training for immigrants who have 
  2.51  completed training in skilled trades 
  2.52  outside of the United States and 
  2.53  English as a second language 
  2.54  specialists and interpreters. 
  3.1   (f) Watonwan County Trail System 
  3.2   $10,000 in 1999 is for a grant to 
  3.3   Watonwan county for preplanning of the 
  3.4   Watonwan county trail system. 
  3.5   (g) Lake Street Planning 
  3.6   $5,000 in 1999 is for a grant to a 
  3.7   nonprofit organization for coordinated 
  3.8   economic development and related 
  3.9   planning for the Lake Street corridor 
  3.10  in Minneapolis. 
  3.11  (h) Wyoming and Chisago City Business Park
  3.12  $10,000 in 1999 is for a grant to the 
  3.13  joint powers board established under 
  3.14  Minnesota Statutes, section 471.59, by 
  3.15  the town of Wyoming and the city of 
  3.16  Chisago City for the purpose of 
  3.17  establishing a joint commercial and 
  3.18  business park.  The grant must be used 
  3.19  to pay the costs of environmental, 
  3.20  transportation, job creation and 
  3.21  associated studies, and preparation of 
  3.22  a site plan related to the park as well 
  3.23  as legal, engineering, administrative, 
  3.24  and similar costs associated with the 
  3.25  studies.  Establishment of the park 
  3.26  would serve as a pilot project to 
  3.27  determine the feasibility and benefit 
  3.28  of developing a coordinated site for 
  3.29  business, educational, and recreational 
  3.30  facilities within an area, a portion of 
  3.31  which has been determined to be 
  3.32  undesirable for the location of 
  3.33  residential development because of the 
  3.34  presence of power lines. 
  3.35  (i) Minnesota Trade Office 
  3.36  The appropriation in Laws 1997, chapter 
  3.37  200, article 1, section 2, subdivision 
  3.38  3, to the department of trade and 
  3.39  economic development for the Minnesota 
  3.40  trade office for a multifaceted program 
  3.41  to develop trade with China is 
  3.42  available until June 30, 1999. 
  3.43  (j) Judy Garland Children's Museum 
  3.44  The appropriation in Laws 1997, chapter 
  3.45  200, article 1, section 2, subdivision 
  3.46  2, to the commissioner of trade and 
  3.47  economic development for the Judy 
  3.48  Garland Children's Museum is available 
  3.49  until and may be matched until June 30, 
  3.50  1999. 
  3.51  (k) Minnesota Investment Fund Grant 
  3.52  Cancellation 
  3.53  The appropriation of $1,000,000 in 
  3.54  fiscal year 1998 for a special 
  3.55  Minnesota investment fund grant, as 
  3.56  provided in Laws 1997, chapter 200, 
  3.57  section 2, subdivision 2, is canceled 
  3.58  upon final enactment. 
  3.59  (l) $50,000 is for a grant to Hennepin 
  4.1   county for the planning and 
  4.2   development, in cooperation with a task 
  4.3   force created by the city of 
  4.4   Minneapolis, of a circulator vehicle 
  4.5   pilot project for the purposes of: 
  4.6   (1) connecting the Minneapolis 
  4.7   convention center and other major 
  4.8   locations in downtown Minneapolis with 
  4.9   multicultural tourist, heritage, and 
  4.10  cultural resources in the Phillips, 
  4.11  Stevens Square, Whittier, Central, 
  4.12  Powderhorn, Seward, Loring Park, and 
  4.13  Cedar-Riverside neighborhoods in 
  4.14  Minneapolis and contributing to the 
  4.15  revitalization of those neighborhoods 
  4.16  by increasing urban tourism; 
  4.17  (2) generating additional spending by 
  4.18  expanding the selection of tourism 
  4.19  activities provided by the convention 
  4.20  center and downtown Minneapolis; and 
  4.21  (3) promoting state and local tourism 
  4.22  activities which provide a richer, more 
  4.23  culturally diverse experience of 
  4.24  Minneapolis urban life as an 
  4.25  alternative to larger, more commercial 
  4.26  attractions. 
  4.27  (m) $50,000 is for a grant to Ramsey 
  4.28  county for the planning and 
  4.29  development, in cooperation with a task 
  4.30  force created by the city of St. Paul, 
  4.31  of a circulator vehicle pilot project 
  4.32  for the purposes of: 
  4.33  (1) connecting the St. Paul convention 
  4.34  center and other major locations in 
  4.35  downtown St. Paul with multicultural 
  4.36  tourist, heritage, and cultural 
  4.37  resources in the Eastside, Westside, 
  4.38  Thomas-Dale, Dayton's Bluff, Summit 
  4.39  Avenue, and Crocus Hill neighborhoods 
  4.40  in St. Paul and contributing to the 
  4.41  revitalization of those neighborhoods 
  4.42  by increasing urban tourism; 
  4.43  (2) generating additional spending by 
  4.44  expanding the selection of tourism 
  4.45  activities provided by the convention 
  4.46  center and downtown St. Paul; and 
  4.47  (3) promoting state and local tourism 
  4.48  activities which provide a richer, more 
  4.49  culturally diverse experience of St. 
  4.50  Paul urban life as an alternative to 
  4.51  larger, more commercial attractions. 
  4.52  Sec. 3.  MINNESOTA WORLD TRADE CENTER
  4.53  CORPORATION                              155,000        ...     
  4.54  $155,000 in 1998 is for full and final 
  4.55  payments of the remaining 1988 debt of 
  4.56  the Minnesota World Trade Center 
  4.57  Corporation which was incurred for 
  4.58  conference center furniture, fixtures, 
  4.59  and equipment.  This appropriation is 
  4.60  available immediately. 
  4.61  Sec. 4.  DEPARTMENT OF ECONOMIC
  5.1   SECURITY                                 ...         12,786,000 
  5.2   The amounts that may be spent from this 
  5.3   appropriation for each purpose are 
  5.4   specified in the following paragraphs. 
  5.5   (a) State Services for the Blind
  5.6   $1,400,000 in 1999 to the State 
  5.7   Services for the Blind to update radio 
  5.8   talking book receivers and create a 
  5.9   digital infrastructure for the 
  5.10  communication center.  This is a 
  5.11  one-time appropriation and must be 
  5.12  matched dollar for dollar by a private 
  5.13  nonprofit organization for the same 
  5.14  purpose.  The commissioner of economic 
  5.15  security must certify to the 
  5.16  commissioner of finance that the match 
  5.17  has been received before this 
  5.18  appropriation is released.  The office 
  5.19  of technology must approve the digital 
  5.20  infrastructure and updated receivers as 
  5.21  appropriate technology for their 
  5.22  purposes prior to their purchase.  This 
  5.23  appropriation is available until June 
  5.24  30, 2000. 
  5.25  (b) Vocational Rehabilitation
  5.26  $1,000,000 in 1999 to the vocational 
  5.27  rehabilitation program to be added to 
  5.28  the appropriation for rehabilitation 
  5.29  services provided in Laws 1997, chapter 
  5.30  200, article 1, section 5, subdivision 
  5.31  2. 
  5.32  (c) Regional Job Market Analysis
  5.33  $200,000 in 1999 to retain the services 
  5.34  of regional job market analysts. 
  5.35  (d) Alien Labor Certification
  5.36  $160,000 in 1999 to administer the 
  5.37  alien labor certification program. 
  5.38  (e) Youth Intervention 
  5.39  $1,450,000 in 1999 for grants to 
  5.40  equally fund 50 youth intervention 
  5.41  programs under Minnesota Statutes, 
  5.42  section 268.30. 
  5.43  (f) Youthbuild 
  5.44  $500,000 in 1999 for the Youthbuild 
  5.45  program under Minnesota Statutes, 
  5.46  sections 268.361 to 268.366.  A 
  5.47  Minnesota Youthbuild program funded 
  5.48  under this section as authorized in 
  5.49  Minnesota Statutes, sections 268.361 to 
  5.50  268.367, qualifies as an approved 
  5.51  training program under Minnesota Rules, 
  5.52  part 5200.0930, subpart 1.  The 
  5.53  appropriation is in addition to the 
  5.54  appropriation made by Laws 1997, 
  5.55  chapter 200, article 1, section 5, 
  5.56  subdivision 4.  The appropriation is 
  5.57  available immediately and is available 
  5.58  until June 30, 1999. 
  6.1   (g) Summer Youth Employment
  6.2   $6,000,000 in 1999 is for summer youth 
  6.3   employment programs.  This 
  6.4   appropriation is available immediately 
  6.5   and is available until June 30, 1999. 
  6.6   (h) Nontraditional Work for Women 
  6.7   $250,000 in 1999 is for grants to 
  6.8   organizations for programs that 
  6.9   encourage and assist women to enter 
  6.10  nontraditional careers in the trades 
  6.11  and in manual and technical 
  6.12  occupations.  To be eligible for a 
  6.13  grant, a program must include: 
  6.14  (1) outreach to girls and women through 
  6.15  public and private junior high and high 
  6.16  schools, community organizations, or 
  6.17  existing state and county employment 
  6.18  and training programs.  The outreach 
  6.19  must consist of general information 
  6.20  concerning opportunities for women in 
  6.21  the trades, manual, and technical 
  6.22  occupations, including specific fields 
  6.23  where worker shortages exist; and 
  6.24  specific information about training 
  6.25  programs offered.  The outreach may 
  6.26  include printed or recorded 
  6.27  information, presentations to women and 
  6.28  girls, and ongoing contact with 
  6.29  appropriate staff; 
  6.30  (2) training designed to prepare women 
  6.31  to succeed in nontraditional 
  6.32  occupations, conducted by the grantee 
  6.33  or in collaboration with another 
  6.34  organization.  The training must cover 
  6.35  the knowledge and skills required for 
  6.36  the trade, information about on-the-job 
  6.37  realities for women in the particular 
  6.38  trade, opportunities for developing 
  6.39  workplace problem solving skills, and 
  6.40  information about the current and 
  6.41  projected future job market and likely 
  6.42  career paths; 
  6.43  (3) financial assistance with child 
  6.44  care and transportation during 
  6.45  training, job search, and the first two 
  6.46  months of employment for low-income 
  6.47  women who do not have other coverage 
  6.48  for these expenses; 
  6.49  (4) job placement assistance during and 
  6.50  for at least two years after completion 
  6.51  of the training program; and 
  6.52  (5) job retention support.  This may 
  6.53  take the form of mentorship programs, 
  6.54  support groups, or ongoing staff 
  6.55  contact for at least the first year of 
  6.56  placement in a job after completion of 
  6.57  training, and should include access to 
  6.58  job-related information, assistance 
  6.59  with workplace issues resolution, and 
  6.60  access to advocacy. 
  6.61  Programs must be financially and 
  6.62  geographically accessible to MFIP-S 
  7.1   participants and other low-income women.
  7.2   All state-funded employment and 
  7.3   training programs must include 
  7.4   information about opportunities for 
  7.5   women in nontraditional careers in the 
  7.6   trades, manual, and technical 
  7.7   occupations. 
  7.8   (i) Extended Employment Welfare-to-Work 
  7.9   $750,000 in 1999 is to provide extended 
  7.10  employment training for welfare 
  7.11  recipients through the welfare-to-work 
  7.12  extended employment partnership program 
  7.13  under Minnesota Statutes, section 
  7.14  268A.15.  Of this appropriation, up to 
  7.15  five percent may be used for 
  7.16  administrative costs. 
  7.17  (j) School to Work 
  7.18  $200,000 in 1999 is to develop a pilot 
  7.19  project that will electronically link 
  7.20  four department workforce centers with 
  7.21  the secondary schools in the school 
  7.22  district in which the workforce center 
  7.23  is located for the purpose of providing 
  7.24  secondary students and school 
  7.25  counselors with labor market 
  7.26  information and job-seeking skills 
  7.27  expertise to assist transition from 
  7.28  school to work.  The commissioner shall 
  7.29  create a position at each of the four 
  7.30  workforce centers to implement this 
  7.31  project.  The commissioner shall report 
  7.32  on the progress of the pilot project to 
  7.33  the legislature by February 1, 1999.  
  7.34  The commissioner shall make a final 
  7.35  report on the pilot projects to the 
  7.36  legislature by March 1, 2000.  This is 
  7.37  a one-time appropriation and is not 
  7.38  added to the agency's permanent budget 
  7.39  base. 
  7.40  (k) Training for People with Disabilities 
  7.41  $126,000 in 1999 is for a grant to 
  7.42  Advocating Change Together, Inc. 
  7.43  (ACT).  The grant must be used for the 
  7.44  training and empowerment of individuals 
  7.45  with developmental and other mental 
  7.46  health disabilities, the maintenance of 
  7.47  related data, or technical assistance 
  7.48  for work advancement or additional 
  7.49  workforce training. 
  7.50  (l) Displaced Homemakers 
  7.51  $750,000 in 1999 is for displaced 
  7.52  homemaker programs under Minnesota 
  7.53  Statutes, section 268.96.  Of this 
  7.54  appropriation, $250,000 is for grants 
  7.55  to operate a community work empowerment 
  7.56  support group demonstration project and 
  7.57  is in addition to the appropriation for 
  7.58  that purpose contained in Laws 1997, 
  7.59  chapter 200, article 1, section 4, 
  7.60  subdivision 4.  Of this appropriation, 
  7.61  $500,000 is for the costs of training 
  7.62  recommended for clients of displaced 
  8.1   homemaker programs under Minnesota 
  8.2   Statutes, section 268.96. 
  8.3   Sec. 5.  MINNESOTA HOUSING  
  8.4   FINANCE AGENCY                           ...         23,570,000 
  8.5   The amounts that may be spent from this 
  8.6   appropriation for each program are 
  8.7   specified in the following paragraphs. 
  8.8   (a) Affordable Rental Investment Fund
  8.9   $10,000,000 in 1999 is for transfer to 
  8.10  the housing development fund for the 
  8.11  affordable rental investment fund 
  8.12  program under Minnesota Statutes, 
  8.13  section 462A.21, subdivision 8b, to 
  8.14  finance the acquisition, 
  8.15  rehabilitation, and debt restructuring 
  8.16  of federally assisted rental property 
  8.17  and for making equity take-out loans 
  8.18  under Minnesota Statutes, section 
  8.19  462A.05, subdivision 39.  The owner of 
  8.20  the rental property must agree to 
  8.21  participate in the applicable federally 
  8.22  assisted housing program and to extend 
  8.23  any existing low-income affordability 
  8.24  restrictions on the housing for the 
  8.25  maximum term permitted.  The owner must 
  8.26  also enter into an agreement that gives 
  8.27  local units of government, housing and 
  8.28  redevelopment authorities, and 
  8.29  nonprofit housing organizations the 
  8.30  right of first refusal if the rental 
  8.31  property is offered for sale.  Priority 
  8.32  must be given to properties with the 
  8.33  longest remaining term under an 
  8.34  agreement for federal rental 
  8.35  assistance.  Priority must also be 
  8.36  given to rental housing developments 
  8.37  that are or will be owned by a local 
  8.38  government unit, a housing and 
  8.39  redevelopment authority, or a nonprofit 
  8.40  housing organization. 
  8.41  (b) Family Homeless Prevention
  8.42  and Assistance Program
  8.43  $1,000,000 in 1999 is for transfer to 
  8.44  the housing development fund for the 
  8.45  family homeless prevention and 
  8.46  assistance program under Minnesota 
  8.47  Statutes, section 462A.204.  This is a 
  8.48  one-time appropriation and is not added 
  8.49  to the agency's permanent budget base. 
  8.50  (c) Community Rehabilitation Fund
  8.51  $10,000,000 in 1999 is for transfer to 
  8.52  the housing development fund for the 
  8.53  community rehabilitation program, under 
  8.54  Minnesota Statutes, section 462A.206.  
  8.55  Notwithstanding section 462A.206, this 
  8.56  appropriation shall be used to provide 
  8.57  housing for families and persons with 
  8.58  incomes less than or equal to 80 
  8.59  percent of the greater of state or area 
  8.60  median income.  This is a one-time 
  8.61  appropriation and is not added to the 
  8.62  agency's permanent budget base. 
  9.1   (d) Mental Retardation
  9.2   Home Counseling
  9.3   $70,000 in 1999 is for transfer to the 
  9.4   housing development fund for the 
  9.5   community rehabilitation program under 
  9.6   Minnesota Statutes, section 462A.206.  
  9.7   This appropriation must be used to make 
  9.8   a grant to a statewide organization 
  9.9   that advocates on behalf of persons 
  9.10  with mental retardation or related 
  9.11  conditions.  The grant must be used to 
  9.12  provide prepurchase and postpurchase 
  9.13  counseling to persons with disabilities 
  9.14  who are participating in the Fannie Mae 
  9.15  Homechoice demonstration project and 
  9.16  other projects designed to encourage 
  9.17  home ownership among person with 
  9.18  disabilities. 
  9.19  (e) Mental Illness/Rental
  9.20  Assistance
  9.21  $2,500,000 in 1999 is for transfer to 
  9.22  the housing development fund for the 
  9.23  purposes of the rental housing 
  9.24  assistance program for persons with a 
  9.25  mental illness or families with an 
  9.26  adult member with a mental illness, 
  9.27  under Minnesota Statutes, section 
  9.28  462A.2097. 
  9.29  (f) Administrative Spending Limit
  9.30  Notwithstanding Laws 1997, chapter 200, 
  9.31  article 1, section 6, the spending 
  9.32  limit on cost of general administration 
  9.33  of housing finance agency programs is 
  9.34  $11,826,000 in fiscal year 1998 and 
  9.35  $13,396,000 in fiscal year 1999. 
  9.36  Sec. 6.  LABOR AND INDUSTRY                 ...        100,000 
  9.37  The amount that may be spent from this 
  9.38  appropriation for each program is 
  9.39  specified in the following paragraphs. 
  9.40  (a) Brochure of Employee Rights 
  9.41  $50,000 in 1999 is for development of 
  9.42  the standard disclosure brochure 
  9.43  required in Minnesota Statutes, section 
  9.44  181.636, subdivision 2. 
  9.45  (b) Employee Rights Awareness Campaign 
  9.46  $50,000 in 1999 is for the commissioner 
  9.47  of labor and industry to work in 
  9.48  consultation with the councils created 
  9.49  under Minnesota Statutes, sections 
  9.50  3.922, 3.9223, 3.9225, and 3.9226, to 
  9.51  develop and implement a public 
  9.52  awareness campaign to educate employees 
  9.53  and employers on their rights and 
  9.54  duties under Minnesota Statutes, 
  9.55  section 181.636.  The commissioner 
  9.56  shall report to the legislature by 
  9.57  January 15, 2000, on the results of the 
  9.58  campaign. 
  9.59  Sec. 7.  MEDIATION SERVICES BUREAU       ...             45,000 
 10.1   $45,000 in 1999 is to cover initial 
 10.2   costs of providing dispute resolution, 
 10.3   mediation, and arbitration services 
 10.4   related to development and review of 
 10.5   community-based comprehensive plans 
 10.6   pursuant to Laws 1997, chapter 202, 
 10.7   articles 4, 5, and 6, and from 
 10.8   objections to annexations proposed 
 10.9   under Minnesota Statutes, chapter 414.  
 10.10  This is a one-time appropriation and is 
 10.11  not added to the agency's permanent 
 10.12  budget base. 
 10.13  On or before January 15, 1999, the 
 10.14  commissioner must provide to the 
 10.15  governor; the chair of the senate 
 10.16  committee on jobs, energy, and 
 10.17  community development; and the chair of 
 10.18  the house committee on economic 
 10.19  development, infrastructure, and 
 10.20  regulation finance an update on the 
 10.21  bureau's initial experience in 
 10.22  providing dispute resolution services 
 10.23  related to community-based planning and 
 10.24  objections to annexations.  In 
 10.25  developing this information, the 
 10.26  commissioner must consider the 
 10.27  long-term service needs under this 
 10.28  activity, alternatives regarding its 
 10.29  future administration, and any ongoing 
 10.30  funding needs. 
 10.31  Sec. 8.  PUBLIC UTILITIES
 10.32  COMMISSION                               204,000        189,000 
 10.33  $204,000 in 1998 and $189,000 in 1999 
 10.34  is for costs associated with the 
 10.35  regulation of utilities. 
 10.36  Sec. 9.  DEPARTMENT OF 
 10.37  PUBLIC SERVICE                           ...            130,000 
 10.38  $130,000 in 1999 is for planning and 
 10.39  analysis of the regulation of the 
 10.40  electrical industry. 
 10.41  Sec. 10.  METROPOLITAN COUNCIL           ...            150,000 
 10.42  $250,000 in 1999 is for the corridor 
 10.43  planning pilot projects under section 
 10.44  15. 
 10.45  Sec. 11.  MINNESOTA HISTORICAL SOCIETY   124,000        736,000  
 10.46  The amounts that may be spent from this 
 10.47  appropriation for each purpose are 
 10.48  specified in the following paragraphs. 
 10.49  (a) Salary Adjustment 
 10.50  $124,000 in 1998 and $686,000 in 1999 
 10.51  is for salary adjustments. 
 10.52  (b) Faribault County Historical Society 
 10.53  $50,000 in 1999 is for a grant to the 
 10.54  Faribault county historical society for 
 10.55  a church restoration project. 
 10.56  Sec. 12.  INDIAN AFFAIRS COUNCIL                         80,000 
 11.1   $80,000 in 1999 is to assist in funding 
 11.2   the 50th annual conference of the 
 11.3   Interstate Indian Council to be held in 
 11.4   Minnesota in 1999. 
 11.5   Sec. 13.  DEPARTMENT OF ADMINISTRATION                  200,000 
 11.6   The amounts that may be spent from this 
 11.7   appropriation for each purpose are 
 11.8   specified in the following paragraphs. 
 11.9   $100,000 in 1999 is for the healthy 
 11.10  home project under section 16 and is 
 11.11  available immediately and until June 
 11.12  30, 1999. 
 11.13  $100,000 is for a grant to the 
 11.14  University of Minnesota department of 
 11.15  wood and paper science to complete a 
 11.16  field assessment of a representative 
 11.17  sample of new buildings, including 
 11.18  low-income residential housing, to 
 11.19  determine their performance relative to 
 11.20  the existing and proposed energy code 
 11.21  requirements. 
 11.22  Sec. 14.  CENTER FOR RURAL
 11.23  POLICY  AND DEVELOPMENT                                 500,000 
 11.24  $500,000 in 1999 is for deposit in the 
 11.25  Rural Policy and Development Center 
 11.26  fund in the state treasury. 
 11.27     Sec. 15.  [CORRIDOR PLANNING PILOT PROJECTS.] 
 11.28     Subdivision 1.  [PILOT PROJECTS.] (a) The metropolitan 
 11.29  council shall establish corridor planning pilot projects for the 
 11.30  highway 61 south, and I-35W north corridors in the metropolitan 
 11.31  area.  A "corridor plan" is a subregional, multijurisdictional 
 11.32  comprehensive plan for the area along a major transportation 
 11.33  corridor through two or more municipalities.  A corridor plan 
 11.34  implements local development and redevelopment objectives in 
 11.35  compliance with regional goals and priorities by establishing an 
 11.36  integrated and cooperative working relationship between 
 11.37  adjoining corridor communities to, among other things: 
 11.38     (1) make use of shared geographic information systems, as 
 11.39  they are developed; 
 11.40     (2) establish a framework for a comprehensive livable 
 11.41  community urban design; 
 11.42     (3) develop strategies for housing, and economic 
 11.43  development and redevelopment, including the cleanup of 
 11.44  contaminated properties; and 
 11.45     (4) create a comprehensive multimodal transportation plan 
 12.1   for the corridor, integrating transportation and land use issues.
 12.2      (b) A corridor plan must be developed by representatives of 
 12.3   each of the municipalities in the corridor, reviewed and 
 12.4   approved by the metropolitan council, and adopted by each of the 
 12.5   participating municipalities.  A local comprehensive plan must 
 12.6   be consistent with the corridor plan. 
 12.7      Subd. 2.  [1999 LEGISLATIVE PROPOSAL.] Based on the 
 12.8   metropolitan council's experience with the corridor planning 
 12.9   pilot projects, the council shall propose legislation for the 
 12.10  1999 legislature's consideration, that will provide incentives 
 12.11  to communities to implement their adopted corridor plans 
 12.12  approved by the council.  Recommendations for incentives may 
 12.13  include, but are not limited to, recommendations related to tax 
 12.14  increment financing, brownfield cleanup and redevelopment 
 12.15  assistance, transportation funding, board of government 
 12.16  innovation and cooperation grants, and local government 
 12.17  assistance. 
 12.18     Sec. 16.  [HEALTHY HOMES PILOT PROJECT.] 
 12.19     (a) The commissioner of administration shall establish a 
 12.20  Minnesota healthy homes pilot project to provide training and 
 12.21  technical assistance to selected building code officials, 
 12.22  low-income housing developers, and contractors in the pilot 
 12.23  communities to address the problem of defective homes and to 
 12.24  develop a model program for education, training, and technical 
 12.25  assistance to be replicated statewide.  The project must be 
 12.26  implemented in four demonstration sites (two urban, one 
 12.27  suburban, and one in greater Minnesota) and work with building 
 12.28  code officials from the selected municipalities, selected 
 12.29  low-income housing developers, and their building contractors.  
 12.30  The project must: 
 12.31     (1) provide up to four affordable housing developers with 
 12.32  continuing education and implementation guidelines to produce 
 12.33  healthy homes, including on-site training during the actual 
 12.34  construction phase; 
 12.35     (2) demonstrate the use of mechanical ventilation systems 
 12.36  as a strategy for healthy indoor air while allowing for a 
 13.1   tightly constructed building, including design, installation, 
 13.2   and testing of this approach; 
 13.3      (3) conduct classroom and on-site training to provide 
 13.4   inspectors in the pilot communities with practical training and 
 13.5   experience from the ground up; 
 13.6      (4) conduct integrated performance testing of homes 
 13.7   throughout the construction process; 
 13.8      (5) establish a protocol utilizing the results of the pilot 
 13.9   project, which can be used statewide as guidelines for healthy 
 13.10  home construction; 
 13.11     (6) report to the house and senate finance and policy 
 13.12  committees with jurisdiction over housing on the progress and 
 13.13  results of the pilot project by March 15, 1999; and 
 13.14     (7) develop an educational program for homeowners in the 
 13.15  pilot communities on how to operate and maintain their homes in 
 13.16  order to prevent contributing to indoor air quality problems 
 13.17  that lead to unhealthy houses. 
 13.18     The commissioner of administration shall make a grant to 
 13.19  Sustainable Resources Center, a nonprofit organization with 
 13.20  expertise and certification in indoor air quality diagnostics 
 13.21  and remediating sick homes, to design, implement, and manage the 
 13.22  pilot project. 
 13.23     (b) The department of administration, in conjunction with 
 13.24  the department of wood and paper science at the University of 
 13.25  Minnesota, the Sustainable Resources Center, the Builders 
 13.26  Association of Minnesota, the Center for Energy and Environment, 
 13.27  and representatives from other appropriate organizations, shall 
 13.28  develop recommendations for the creation of a building 
 13.29  technology center to conduct applied research, provide 
 13.30  technological development, and offer training regarding 
 13.31  technologies and methods that assure safe, affordable 
 13.32  buildings.  The recommendations shall be made to the legislature 
 13.33  by January 20, 1999. 
 13.34     Sec. 17.  [TOWN OF WYOMING; CITY OF CHISAGO CITY; MUNICIPAL 
 13.35  REIMBURSEMENT.] 
 13.36     Notwithstanding the limitation on duration or equality of 
 14.1   payment imposed under Minnesota Statutes, section 414.036, the 
 14.2   city of Chisago City may provide reimbursement for orderly 
 14.3   annexed property to the town of Wyoming for the period and in 
 14.4   the amounts agreed to by the city and the town under a joint 
 14.5   powers agreement entered into for the purpose of establishing a 
 14.6   joint commercial and business park in the annexed area as 
 14.7   described in section 2, paragraph (h). 
 14.8      Sec. 18.  [COMMUNITY AND CONVENTION CENTERS; CRITERIA FOR 
 14.9   STATE ASSISTANCE; STUDY.] 
 14.10     The center for rural policy and development shall study the 
 14.11  issue of state grants to local units of government located 
 14.12  outside the metropolitan seven county area for community and 
 14.13  convention center projects.  The study shall develop criteria 
 14.14  for awarding those grants.  Specifically, and without 
 14.15  limitation, the center must consider as criteria: 
 14.16     (1) matching requirements for grants; 
 14.17     (2) the ability of the center to operate without further 
 14.18  state financial assistance; 
 14.19     (3) for convention centers, the availability of privately 
 14.20  operated facilities in the area that provide the same service as 
 14.21  the proposed convention center; and 
 14.22     (4) for community centers, the access of low-income people, 
 14.23  collaboration with other facilities for seniors and youth, 
 14.24  including schools, and the availability of the center to youth 
 14.25  in the evening. 
 14.26     The center shall report its findings and recommended 
 14.27  criteria to the economic development finance divisions of the 
 14.28  senate and house by January 15, 1999. 
 14.29     Sec. 19.  Minnesota Statutes 1996, section 116J.415, 
 14.30  subdivision 5, is amended to read: 
 14.31     Subd. 5.  [LOAN CRITERIA.] The following criteria apply to 
 14.32  loans made under the challenge grant program:  
 14.33     (1) loans must be made to businesses that are not likely to 
 14.34  undertake a project for which loans are sought without 
 14.35  assistance from the challenge grant program; 
 14.36     (2) a loan must be used for a project designed principally 
 15.1   to benefit low-income persons through the creation of job or 
 15.2   business opportunities for them; 
 15.3      (3) the minimum loan is $5,000 and the maximum 
 15.4   is $100,000 $200,000; 
 15.5      (4) a loan may not exceed 50 percent of the total cost of 
 15.6   an individual project; 
 15.7      (5) a loan may not be used for a retail development 
 15.8   project; and 
 15.9      (6) a business applying for a loan, except a 
 15.10  microenterprise loan under subdivision 6, must be sponsored by a 
 15.11  resolution of the governing body of the local governmental unit 
 15.12  within whose jurisdiction the project is located. 
 15.13     Sec. 20.  Minnesota Statutes 1997 Supplement, section 
 15.14  116J.421, subdivision 1, is amended to read: 
 15.15     Subdivision 1.  [ESTABLISHED.] The rural policy and 
 15.16  development center is established at Mankato State University. 
 15.17     The center may be established by the board as a nonprofit 
 15.18  corporation under section 501(c)3 of the Internal Revenue Code 
 15.19  or the board may organize and operate the center in a manner and 
 15.20  form that the board determines best allows the center to carry 
 15.21  out its duties. 
 15.22     Sec. 21.  Minnesota Statutes 1997 Supplement, section 
 15.23  116J.421, is amended by adding a subdivision to read: 
 15.24     Subd. 5.  [POWERS.] The board has the power to do all 
 15.25  things reasonable and necessary to carry out the duties of the 
 15.26  center including, without limitation, the power to: 
 15.27     (1) enter into contracts for goods or services with 
 15.28  individuals and private and public entities; 
 15.29     (2) sue and be sued; 
 15.30     (3) acquire, hold, lease, and transfer any interest in real 
 15.31  and personal property; 
 15.32     (4) accept appropriations, gifts, grants, and bequests; 
 15.33     (5) hire employees; and 
 15.34     (6) delegate any of its powers. 
 15.35     Sec. 22.  [116J.544] [DEFINITIONS.] 
 15.36     Subdivision 1.  [TERMS.] For the purposes of sections 
 16.1   116J.544 to 116J.545, the following terms have the meanings 
 16.2   given them. 
 16.3      Subd. 2.  [BOARD.] "Board" means the Minnesota film board. 
 16.4      Subd. 3.  [COMMISSIONER.] "Commissioner" means the 
 16.5   commissioner of trade and economic development. 
 16.6      Sec. 23.  [116J.5445] [DUTIES; REPORTS.] 
 16.7      The commissioner shall enter into a contract with the board 
 16.8   to implement the revolving loan fund created in section 
 16.9   116J.545.  The contract shall include a description of the 
 16.10  board's responsibilities in reviewing, approving, and monitoring 
 16.11  of projects funded by the loan fund.  The commissioner shall 
 16.12  submit an annual report to the legislature by January 1 of each 
 16.13  year describing each loan made under section 116J.545, including 
 16.14  information on the production and distribution status of each 
 16.15  project for which a loan has been made, the repayment status of 
 16.16  each loan, the number of jobs created in Minnesota, the amount 
 16.17  of expenditures in Minnesota, and the amount and source of 
 16.18  matching funds. 
 16.19     Sec. 24.  [116J.545] [MINNESOTA FILM AND TELEVISION 
 16.20  REVOLVING LOAN FUND.] 
 16.21     Subdivision 1.  [ELIGIBLE PROJECTS.] An eligible project is 
 16.22  a feature film, long form television project, or television 
 16.23  series.  Priority must be given for projects targeted to 
 16.24  children audiences.  At least one of the project's principals 
 16.25  must be a Minnesota resident.  The principals are the project's 
 16.26  director, producer, or company chief executive officer. 
 16.27     Subd. 2.  [REVOLVING LOAN FUND.] The commissioner shall 
 16.28  establish a revolving loan fund in the special revenue fund for 
 16.29  the purpose of making loans to finance eligible projects.  Loan 
 16.30  applications given preliminary approval by the board must be 
 16.31  forwarded to the commissioner for final approval.  Funds for the 
 16.32  loan will be disbursed by the commissioner to the board after 
 16.33  this approval. 
 16.34     Subd. 3.  [BUSINESS LOAN CRITERIA.] Loans must only be made 
 16.35  for projects that the board determines would not be undertaken 
 16.36  without assistance from the loan fund. 
 17.1      The minimum loan is $50,000 and the maximum loan is 
 17.2   $500,000.  The board will determine the interest rate, terms, 
 17.3   maturity, and collateral for each loan.  The interest rate must 
 17.4   be at least three percent. 
 17.5      The amount of a loan may not exceed 50 percent of the cost 
 17.6   of a project. 
 17.7      Projects must spend 120 percent of the amount of the loan 
 17.8   in Minnesota.  These expenditures may include direct production 
 17.9   or postproduction costs as well as talent, producer, or director 
 17.10  fees. 
 17.11     The commissioner may adopt rules to implement this section. 
 17.12     Subd. 4.  [REVOLVING LOAN FUND ADMINISTRATION.] (a) Loan 
 17.13  repayment amounts must be returned by the board to the 
 17.14  commissioner and deposited in the revolving loan fund for 
 17.15  additional loans to be made by the board. 
 17.16     (b) Administrative expenses of the board incurred to 
 17.17  operate the loan program, not to exceed $10,000 per year, may be 
 17.18  paid to the board from the revolving loan fund. 
 17.19     Subd. 5.  [REPORTING REQUIREMENTS.] The board shall: 
 17.20     (1) submit an annual report to the commissioner by 
 17.21  September 30 of each year that includes a description of 
 17.22  projects funded for the preceding 12 months as of June 30 of the 
 17.23  same year.  The report shall include a description of projects 
 17.24  supported by the revolving loan fund, the production and 
 17.25  distribution status of each project for which a loan has been 
 17.26  made, the terms of each loan and the repayment status of each 
 17.27  loan, the number of jobs created in Minnesota and the amount of 
 17.28  expenditures in Minnesota, and the amount and source of matching 
 17.29  funds.  A description of the administrative expenses incurred by 
 17.30  the board shall also be included; and 
 17.31     (2) provide for an independent annual audit to be performed 
 17.32  in accordance with generally accepted accounting practices and 
 17.33  auditing standards and submit a copy of each annual audit report 
 17.34  to the commissioner. 
 17.35     Sec. 25.  [181.636] [EMPLOYEE NOTICE OF RIGHTS; FOREIGN 
 17.36  LANGUAGES.] 
 18.1      Subdivision 1.  [EMPLOYER DEFINED.] For the purposes of 
 18.2   this section, "employer" means any person employing one or more 
 18.3   employees. 
 18.4      Subd. 2.  [DISCLOSURE BROCHURE.] The commissioner of labor 
 18.5   and industry shall provide a single standard brochure for use in 
 18.6   making the disclosure required in subdivision 3.  The single 
 18.7   brochure must contain the disclosure in English and in ten other 
 18.8   languages that the commissioner determines are the most commonly 
 18.9   spoken as the dominant language by Minnesota employees. 
 18.10     Subd. 3.  [EMPLOYEE RIGHTS NOTICE.] An employer shall 
 18.11  provide an employee a brochure provided by the department of 
 18.12  labor and industry within ten days of the first day of work that 
 18.13  notifies an employee that: 
 18.14     (1) there are state and federal laws that regulate minimum 
 18.15  wages and maximum hours of work; prohibit unsafe working 
 18.16  conditions and discrimination; prohibit employers from making 
 18.17  false statements in order to induce someone into employment; and 
 18.18  require the terms and conditions of employment be provided in 
 18.19  writing to migrant farm workers and persons employed in the food 
 18.20  processing industry; and 
 18.21     (2) the employee may call the department of labor and 
 18.22  industry and the department of human rights at a telephone 
 18.23  number indicated on the brochure to learn about those laws and 
 18.24  the employee's rights. 
 18.25     Sec. 26.  Minnesota Statutes 1997 Supplement, section 
 18.26  462A.05, subdivision 39, is amended to read: 
 18.27     Subd. 39.  [EQUITY TAKE-OUT LOANS.] The agency may make 
 18.28  equity take-out loans to owners of section 8 project-based and 
 18.29  section 236 federally assisted rental property upon which the 
 18.30  agency holds a first mortgage.  The owner of a section 8 
 18.31  project-based federally assisted rental property must agree to 
 18.32  participate in the section 8 federal assistance program and 
 18.33  extend the low-income affordability restrictions on the housing 
 18.34  for the maximum term of the section 8 federal assistance 
 18.35  contract.  The owner of section 236 rental property must agree 
 18.36  to participate in the section 236 interest reduction payments 
 19.1   program, to extend any existing low-income affordability 
 19.2   restrictions on the housing, and to extend any rental assistance 
 19.3   payments for the maximum term permitted under the agreement for 
 19.4   rental assistance payments.  The An equity take-out loan must be 
 19.5   secured by a subordinate loan on the property and may include 
 19.6   additional appropriate security determined necessary by the 
 19.7   agency. 
 19.8      Sec. 27.  Minnesota Statutes 1996, section 462A.222, 
 19.9   subdivision 3, is amended to read: 
 19.10     Subd. 3.  [ALLOCATION PROCEDURE.] (a) Projects will be 
 19.11  awarded tax credits in three competitive rounds on an annual 
 19.12  basis.  The date for applications for each round must be 
 19.13  determined by the agency.  No allocating agency may award tax 
 19.14  credits prior to the application dates established by the agency.
 19.15     (b) Each allocating agency must meet the requirements of 
 19.16  section 42(m) of the Internal Revenue Code of 1986, as amended 
 19.17  through December 31, 1989, for the allocation of tax credits and 
 19.18  the selection of projects. 
 19.19     (c) For projects that are eligible for an allocation of 
 19.20  credits pursuant to section 42(h)(4) of the Internal Revenue 
 19.21  Code of 1986, as amended, tax credits may only be allocated if 
 19.22  the project satisfies the requirements of the allocating 
 19.23  agency's qualified allocation plan.  For projects that are 
 19.24  eligible for an allocation of credits pursuant to section 
 19.25  42(h)(4) of the Internal Revenue Code of 1986, as amended, for 
 19.26  which the agency is the issuer of the bonds for the project, or 
 19.27  the issuer of the bonds for the project is located outside the 
 19.28  jurisdiction of a city or county that has received reserved tax 
 19.29  credits, the applicable allocation plan is the agency's 
 19.30  qualified allocation plan. 
 19.31     (d) For applications submitted for the first round, an 
 19.32  allocating agency may allocate tax credits only to the following 
 19.33  types of projects: 
 19.34     (1) in the metropolitan area: 
 19.35     (i) new construction or substantial rehabilitation of 
 19.36  projects in which, for the term of the extended use period, at 
 20.1   least 75 percent of the total tax credit units are single-room 
 20.2   occupancy, efficiency, or one bedroom units and which are 
 20.3   affordable by households whose income does not exceed 30 percent 
 20.4   of the median income; 
 20.5      (ii) new construction or substantial rehabilitation family 
 20.6   housing projects that are not restricted to persons who are 55 
 20.7   years of age or older and in which, for the term of the extended 
 20.8   use period, at least 75 percent of the tax credit units contain 
 20.9   two or more bedrooms and at least one-third of the 75 percent 
 20.10  contain three or more bedrooms; or 
 20.11     (iii) substantial rehabilitation projects in neighborhoods 
 20.12  targeted by the city for revitalization; 
 20.13     (2) outside the metropolitan area, projects which meet a 
 20.14  locally identified housing need and which are in short supply in 
 20.15  the local housing market as evidenced by credible data submitted 
 20.16  with the application; 
 20.17     (3) projects that are not restricted to persons of a 
 20.18  particular age group and in which, for the term of the extended 
 20.19  use period, a percentage of the units are set aside and rented 
 20.20  to persons: 
 20.21     (i) with a serious and persistent mental illness as defined 
 20.22  in section 245.462, subdivision 20, paragraph (c); 
 20.23     (ii) with a developmental disability as defined in United 
 20.24  States Code, title 42, section 6001, paragraph (5), as amended 
 20.25  through December 31, 1990; 
 20.26     (iii) who have been assessed as drug dependent persons as 
 20.27  defined in section 254A.02, subdivision 5, and are receiving or 
 20.28  will receive care and treatment services provided by an approved 
 20.29  treatment program as defined in section 254A.02, subdivision 2; 
 20.30     (iv) with a brain injury as defined in section 256B.093, 
 20.31  subdivision 4, paragraph (a); or 
 20.32     (v) with permanent physical disabilities that substantially 
 20.33  limit one or more major life activities, if at least 50 percent 
 20.34  of the units in the project are accessible as provided under 
 20.35  Minnesota Rules, chapter 1340; 
 20.36     (4) projects, whether or not restricted to persons of a 
 21.1   particular age group, which preserve existing subsidized housing 
 21.2   which is subject to prepayment if the use of tax credits is 
 21.3   necessary to prevent conversion to market rate use; or 
 21.4      (5) projects financed by the Farmers Home Administration, 
 21.5   or its successor agency, which meet statewide distribution goals.
 21.6      (e) Before the date for applications for the second round, 
 21.7   the allocating agencies other than the agency shall return all 
 21.8   uncommitted and unallocated tax credits to the pool from which 
 21.9   they were allocated, along with copies of any allocation or 
 21.10  commitment.  In the second round, the agency shall allocate the 
 21.11  remaining credits from the regional pools to projects from the 
 21.12  respective regions.  
 21.13     (f) In the third round, all unallocated tax credits must be 
 21.14  transferred to a unified pool for allocation by the agency on a 
 21.15  statewide basis. 
 21.16     (g) Unused portions of the state ceiling for low-income 
 21.17  housing tax credits reserved to cities and counties for 
 21.18  allocation may be returned at any time to the agency for 
 21.19  allocation. 
 21.20     (h) If an allocating agency determines, at any time after 
 21.21  the initial commitment or allocation for a specific project, 
 21.22  that a project is no longer eligible for all or a portion of the 
 21.23  low-income housing tax credits committed or allocated to the 
 21.24  project, the credits must be transferred to the agency to be 
 21.25  reallocated pursuant to the procedures established in paragraphs 
 21.26  (e) to (g); provided that if the tax credits for which the 
 21.27  project is no longer eligible are from the current year's annual 
 21.28  ceiling and the allocating agency maintains a waiting list, the 
 21.29  allocating agency may continue to commit or allocate the credits 
 21.30  until not later than October 1, at which time any uncommitted 
 21.31  credits must be transferred to the agency. 
 21.32     Sec. 28.  [471.9997] [FEDERALLY ASSISTED RENTAL HOUSING; 
 21.33  IMPACT STATEMENT.] 
 21.34     At least 12 months before termination of participation in a 
 21.35  federally assisted rental housing program, including 
 21.36  project-based section 8 and section 236 rental housing, the 
 22.1   owner of the federally assisted rental housing must submit a 
 22.2   statement regarding the impact of termination on the residents 
 22.3   of the rental housing to the governing body of the local 
 22.4   government unit in which the housing is located.  The impact 
 22.5   statement must identify the number of units that will no longer 
 22.6   be subject to rent restrictions imposed by the federal program, 
 22.7   the estimated rents that will be charged as compared to rents 
 22.8   charged under the federal program, and actions the owner will 
 22.9   take to assist displaced tenants in obtaining other housing.  A 
 22.10  copy of the impact statement must be provided to each resident 
 22.11  of the affected building, the Minnesota housing finance agency, 
 22.12  and, if the property is located in the metropolitan area as 
 22.13  defined in section 473.121, subdivision 2, the metropolitan 
 22.14  council. 
 22.15     Sec. 29.  Minnesota Statutes 1996, section 474A.061, 
 22.16  subdivision 2a, is amended to read: 
 22.17     Subd. 2a.  [HOUSING POOL ALLOCATION.] (a) On the first 
 22.18  business day that falls on a Monday of the calendar year and the 
 22.19  first Monday in February, the commissioner shall allocate 
 22.20  available bonding authority in the housing pool to applications 
 22.21  received by the Monday of the previous week for residential 
 22.22  rental projects that are not restricted to persons who are 55 
 22.23  years of age or older and that meet the eligibility criteria 
 22.24  under section 474A.047, except that allocations may be made to 
 22.25  projects that are restricted to persons who are 55 years of age 
 22.26  or older if the project preserves existing federally assisted 
 22.27  rental housing.  Projects that preserve existing federally 
 22.28  assisted rental housing shall be allocated available bonding 
 22.29  authority in the housing pool prior to the allocation of 
 22.30  available bonding authority to other eligible residential rental 
 22.31  projects.  If an issuer that receives an allocation under this 
 22.32  paragraph does not issue obligations equal to all or a portion 
 22.33  of the allocation received within 120 days of the allocation or 
 22.34  returns the allocation to the commissioner, the amount of the 
 22.35  allocation is canceled and returned for reallocation through the 
 22.36  housing pool. 
 23.1      (b) After February 1, and through February 15, the 
 23.2   Minnesota housing finance agency may accept applications from 
 23.3   cities for single-family housing programs which meet program 
 23.4   requirements as follows:  
 23.5      (1) the housing program must meet a locally identified 
 23.6   housing need and be economically viable; 
 23.7      (2) the adjusted income of home buyers may not exceed the 
 23.8   greater of the agency's income limits or 80 percent of the area 
 23.9   median income as published by the Department of Housing and 
 23.10  Urban Development; 
 23.11     (3) house price limits may not exceed: 
 23.12     (i) the greater of agency house price limits or the federal 
 23.13  price limits for housing up to a maximum of $95,000; or 
 23.14     (ii) for a new construction affordability initiative, the 
 23.15  greater of 115 percent of agency house price limits or 90 
 23.16  percent of the median purchase price in the city for which the 
 23.17  bonds are to be sold up to a maximum of $95,000. 
 23.18     Data establishing the median purchase price in the city 
 23.19  must be included in the application by a city requesting house 
 23.20  price limits higher than the housing finance agency's house 
 23.21  price limits; and 
 23.22     (4) an application deposit equal to one percent of the 
 23.23  requested allocation must be submitted before the agency 
 23.24  forwards the list specifying the amounts allocated to the 
 23.25  commissioner under paragraph (c).  The agency shall submit the 
 23.26  city's application and application deposit to the commissioner 
 23.27  when requesting an allocation from the housing pool. 
 23.28     Applications by a consortium shall include the name of each 
 23.29  member of the consortium and the amount of allocation requested 
 23.30  by each member. 
 23.31     The Minnesota housing finance agency may accept 
 23.32  applications from June 15 through June 30 from cities for 
 23.33  single-family housing programs which meet program requirements 
 23.34  specified under clauses (1) to (4) if bonding authority is 
 23.35  available in the housing pool.  The agency must allot available 
 23.36  bonding authority.  For purposes of paragraphs (a) to (g), 
 24.1   "city" means a county or a consortium of local government units 
 24.2   that agree through a joint powers agreement to apply together 
 24.3   for single-family housing programs, and has the meaning given it 
 24.4   in section 462C.02, subdivision 6.  "Agency" means the Minnesota 
 24.5   housing finance agency.  
 24.6      (c) The total amount of allocation for mortgage bonds for 
 24.7   one city is limited to the lesser of:  (i) the amount requested, 
 24.8   or (ii) the product of the total amount available for mortgage 
 24.9   bonds from the housing pool, multiplied by the ratio of each 
 24.10  applicant's population as determined by the most recent estimate 
 24.11  of the city's population released by the state demographer's 
 24.12  office to the total of all the applicants' population, except 
 24.13  that each applicant shall be allocated a minimum of $100,000 
 24.14  regardless of the amount requested or the amount determined 
 24.15  under the formula in clause (ii).  If a city applying for an 
 24.16  allocation is located within a county that has also applied for 
 24.17  an allocation, the city's population will be deducted from the 
 24.18  county's population in calculating the amount of allocations 
 24.19  under this paragraph. 
 24.20     Upon determining the amount of each applicant's allocation, 
 24.21  the agency shall forward a list specifying the amounts allotted 
 24.22  to each application and application deposit checks to the 
 24.23  commissioner. 
 24.24     (d) The agency may issue bonds on behalf of participating 
 24.25  cities.  The agency shall request an allocation from the 
 24.26  commissioner for all applicants who choose to have the agency 
 24.27  issue bonds on their behalf and the commissioner shall allocate 
 24.28  the requested amount to the agency.  The agency may request an 
 24.29  allocation at any time after the first Monday in February and 
 24.30  through the last Monday in July, but may request an allocation 
 24.31  no later than the last Monday in July.  The commissioner shall 
 24.32  return any application deposit to a city that paid an 
 24.33  application deposit under paragraph (b), clause (4), but was not 
 24.34  part of the list forwarded to the commissioner under paragraph 
 24.35  (c). 
 24.36     (e) A city may choose to issue bonds on its own behalf or 
 25.1   through a joint powers agreement or may use bonding authority 
 25.2   for mortgage credit certificates and may request an allocation 
 25.3   from the commissioner.  If the total amount requested by all 
 25.4   applicants exceeds the amount available in the pool, the city 
 25.5   may not receive a greater allocation than the amount it would 
 25.6   have received under the list forwarded by the Minnesota housing 
 25.7   finance agency to the commissioner.  No city may request or 
 25.8   receive an allocation from the commissioner until the list under 
 25.9   paragraph (c) has been forwarded to the commissioner.  A city 
 25.10  must request an allocation from the commissioner no later than 
 25.11  14 days before the unified pool is created pursuant to section 
 25.12  474A.091, subdivision 1.  On and after the first Monday in 
 25.13  February and through the last Monday in July, no city may 
 25.14  receive an allocation from the housing pool which has not first 
 25.15  applied to the Minnesota housing finance agency.  The 
 25.16  commissioner shall allocate the requested amount to the city or 
 25.17  cities subject to the limitations under this paragraph.  
 25.18     If a city issues mortgage bonds from an allocation received 
 25.19  under this paragraph, the issuer must provide for the recycling 
 25.20  of funds into new loans.  If the issuer is not able to provide 
 25.21  for recycling, the issuer must notify the commissioner in 
 25.22  writing of the reason that recycling was not possible and the 
 25.23  reason the issuer elected not to have the Minnesota housing 
 25.24  finance agency issue the bonds.  "Recycling" means the use of 
 25.25  money generated from the repayment and prepayment of loans for 
 25.26  further eligible loans or for the redemption of bonds and the 
 25.27  issuance of current refunding bonds. 
 25.28     (f) No entitlement city or county or city in an entitlement 
 25.29  county may apply for or be allocated authority to issue bonds or 
 25.30  use mortgage credit certificates from the housing pool. 
 25.31     (g) A city that does not use at least 50 percent of their 
 25.32  allotment by the date applications are due for the first 
 25.33  allocation that is made from the housing pool for single-family 
 25.34  housing programs in the immediately succeeding calendar year may 
 25.35  not apply to the housing pool for a single-family mortgage bond 
 25.36  or mortgage credit certificate program allocation or receive an 
 26.1   allotment from the housing pool in the succeeding two calendar 
 26.2   years.  Each local government unit in a consortium must meet the 
 26.3   requirements of this paragraph. 
 26.4      Sec. 30.  [LOCAL APPROVAL; EFFECTIVE DATE.] 
 26.5      Section 17 is effective the day after the latter of the 
 26.6   town of Wyoming and the city of Chisago City complies with 
 26.7   Minnesota Statutes, section 645.021, subdivision 3. 
 26.8      Sec. 31.  [EFFECTIVE DATES; APPLICATION.] 
 26.9      Section 15 is effective the day following final enactment 
 26.10  and applies in the counties of Anoka, Carver, Dakota, Hennepin, 
 26.11  Ramsey, Scott, and Washington. 
 26.12     Sec. 32.  [EFFECTIVE DATE.] 
 26.13     Section 25 is effective January 1, 1999.  Sections 16 and 
 26.14  26 are effective the day following final enactment. 
 26.15                             ARTICLE 2 
 26.16                         UNCLAIMED PROPERTY 
 26.17     Section 1.  [345.61] [DEFINITIONS.] 
 26.18     Subdivision 1.  [SCOPE.] For the purposes of sections 
 26.19  345.61 to 345.89, the terms defined in this section have the 
 26.20  meanings given them. 
 26.21     Subd. 2.  [ADMINISTRATOR.] "Administrator" means the 
 26.22  commissioner of commerce. 
 26.23     Subd. 3.  [APPARENT OWNER.] "Apparent owner" means a person 
 26.24  whose name appears on the records of a holder as the person 
 26.25  entitled to property held, issued, or owing by the holder. 
 26.26     Subd. 4.  [BUSINESS ASSOCIATION.] "Business association" 
 26.27  means a corporation, joint stock company, investment company, 
 26.28  partnership, unincorporated association, joint venture, limited 
 26.29  liability company, business trust, trust company, safe deposit 
 26.30  company, financial organization, insurance company, mutual fund, 
 26.31  utility, or other business entity consisting of one or more 
 26.32  persons, whether or not for profit. 
 26.33     Subd. 5.  [DOMICILE.] "Domicile" means the state of 
 26.34  incorporation of a corporation and the state of the principal 
 26.35  place of business of a holder other than a corporation. 
 26.36     Subd. 6.  [FINANCIAL ORGANIZATION.] "Financial organization"
 27.1   means a savings association; savings bank or industrial loan and 
 27.2   thrift company; banking organization; or credit union. 
 27.3      Subd. 7.  [HOLDER.] "Holder" means a person obligated to 
 27.4   hold for the account of, or deliver or pay to, the owner 
 27.5   property that is subject to sections 345.61 to 345.89. 
 27.6      Subd. 8.  [INSURANCE COMPANY.] "Insurance company" means an 
 27.7   association, corporation, or fraternal or mutual benefit 
 27.8   organization, whether or not for profit, engaged in the business 
 27.9   of providing life endowments, annuities, or insurance, including 
 27.10  accident, burial, casualty, credit life, contract performance, 
 27.11  dental, disability, fidelity, fire, health, hospitalization, 
 27.12  illness, life, malpractice, marine, mortgage, surety, wage 
 27.13  protection, and workers' compensation insurance. 
 27.14     Subd. 9.  [MINERAL.] "Mineral" means gas; oil; coal; other 
 27.15  gaseous, liquid, and solid hydrocarbons; oil shale; cement 
 27.16  material; sand and gravel; road material; building stone; 
 27.17  chemical raw material; gemstone; fissionable and nonfissionable 
 27.18  ores; colloidal and other clay; steam and other geothermal 
 27.19  resource; or any other substance defined as a mineral by the law 
 27.20  of this state. 
 27.21     Subd. 10.  [MINERAL PROCEEDS.] "Mineral proceeds" means 
 27.22  amounts payable for the extraction, production, or sale of 
 27.23  minerals, or, upon the abandonment of those payments, all 
 27.24  payments that become payable thereafter.  The term includes 
 27.25  amounts payable: 
 27.26     (1) for the acquisition and retention of a mineral lease, 
 27.27  including bonuses, royalties, compensatory royalties, shut-in 
 27.28  royalties, minimum royalties, and delay rentals; 
 27.29     (2) for the extraction, production, or sale of minerals, 
 27.30  including net revenue interests, royalties, overriding 
 27.31  royalties, extraction payments, and production payments; and 
 27.32     (3) under an agreement or option, including a joint 
 27.33  operating agreement, unit agreement, pooling agreement, and 
 27.34  farm-out agreement. 
 27.35     Subd. 11.  [MONEY ORDER.] "Money order" includes an express 
 27.36  money order and a personal money order, on which the remitter is 
 28.1   the purchaser.  The term does not include a bank money order or 
 28.2   any other instrument sold by a financial organization if the 
 28.3   seller has obtained the name and address of the payee. 
 28.4      Subd. 12.  [OWNER.] "Owner" means a person who has a legal 
 28.5   or equitable interest in property subject to sections 345.61 to 
 28.6   345.89 or the person's legal representative.  The term includes 
 28.7   a depositor in the case of a deposit, a beneficiary in the case 
 28.8   of a trust other than a deposit in trust, and a creditor, 
 28.9   claimant, or payee in the case of other property. 
 28.10     Subd. 13.  [PERSON.] "Person" means an individual, business 
 28.11  association, financial organization, estate, trust, government, 
 28.12  governmental subdivision, agency, or instrumentality, or any 
 28.13  other legal or commercial entity. 
 28.14     Subd. 14.  [PROPERTY.] "Property" means tangible property 
 28.15  described in section 345.63 or a fixed and certain interest in 
 28.16  intangible property that is held, issued, or owed in the course 
 28.17  of a holder's business, or by a government, governmental 
 28.18  subdivision, agency, or instrumentality, and all income or 
 28.19  increments therefrom.  The term includes property that is 
 28.20  referred to as or evidenced by: 
 28.21     (1) money, a check, draft, deposit, interest, or dividend; 
 28.22     (2) credit balance, customer's overpayment, gift 
 28.23  certificate, security deposit, refund, credit memorandum, unpaid 
 28.24  wage, unused ticket, mineral proceeds, or unidentified 
 28.25  remittance; 
 28.26     (3) stock or other evidence of ownership of an interest in 
 28.27  a business association or financial organization; 
 28.28     (4) a bond, debenture, note, or other evidence of 
 28.29  indebtedness; 
 28.30     (5) money deposited to redeem stocks, bonds, coupons, or 
 28.31  other securities or to make distributions; 
 28.32     (6) an amount due and payable under the terms of an annuity 
 28.33  or insurance policy, including policies providing life 
 28.34  insurance, property and casualty insurance, workers' 
 28.35  compensation insurance, or health and disability insurance; and 
 28.36     (7) an amount distributable from a trust or custodial fund 
 29.1   established under a plan to provide health, welfare, pension, 
 29.2   vacation, severance, retirement, death, stock purchase, profit 
 29.3   sharing, employee savings, supplemental unemployment insurance, 
 29.4   or similar benefits. 
 29.5      The term does not include assets of any plan governed under 
 29.6   the federal Employee Retirement Income Security Act of 1974 
 29.7   (ERISA), United States Code, title 29, sections 1001 to 1461. 
 29.8      Subd. 15.  [RECORD.] "Record" means information that is 
 29.9   inscribed on a tangible medium or that is stored in an 
 29.10  electronic or other medium and is retrievable in perceivable 
 29.11  form. 
 29.12     Subd. 16.  [STATE.] "State" means a state of the United 
 29.13  States, the District of Columbia, the Commonwealth of Puerto 
 29.14  Rico, or any territory or insular possession subject to the 
 29.15  jurisdiction of the United States. 
 29.16     Subd. 17.  [UTILITY.] "Utility" means any person who owns 
 29.17  or operates within this state, for public use, any plant, 
 29.18  equipment, property, franchise, or license for the transmission 
 29.19  of communications or the production, storage, transmission, 
 29.20  sale, delivery, or furnishing of electricity, water, steam, or 
 29.21  gas.  
 29.22     Sec. 2.  [345.62] [PRESUMPTIONS OF ABANDONMENT.] 
 29.23     (a) Property is presumed abandoned if it is unclaimed by 
 29.24  the apparent owner during the time set forth below for the 
 29.25  particular property: 
 29.26     (1) traveler's check, 15 years after issuance; 
 29.27     (2) money order, seven years after issuance; 
 29.28     (3) stock or other equity interest in a business 
 29.29  association or financial organization, including a security 
 29.30  entitlement under the Uniform Commercial Code - Investment 
 29.31  Securities, three years after the earlier of (i) the date of the 
 29.32  most recent dividend, stock split, or other distribution 
 29.33  unclaimed by the apparent owner, or (ii) the date of the second 
 29.34  mailing of a statement of account or other notification or 
 29.35  communication that was returned as undeliverable or after the 
 29.36  holder discontinued mailings, notifications, or communications 
 30.1   to the apparent owner; 
 30.2      (4) debt of a business association or financial 
 30.3   organization, other than a bearer bond or an original issue 
 30.4   discount bond, three years after the date of the most recent 
 30.5   interest payment unclaimed by the apparent owner; 
 30.6      (5) a demand, savings, or time deposit, including a deposit 
 30.7   that is automatically renewable, three years after the earlier 
 30.8   of maturity or the date of the last indication by the owner of 
 30.9   interest in the property; but a deposit that is automatically 
 30.10  renewable is deemed matured for purposes of this section upon 
 30.11  its initial date of maturity, unless the owner has consented to 
 30.12  a renewal at or about the time of the renewal and the consent is 
 30.13  in writing or is evidenced by a memorandum or other record on 
 30.14  file with the holder; 
 30.15     (6) money or credits owed to a customer as a result of a 
 30.16  retail business transaction, three years after the obligation 
 30.17  accrued; 
 30.18     (7) gift certificate, unless an expiration date is shown on 
 30.19  the gift certificate, three years after December 31 of the year 
 30.20  in which the certificate was sold, but if redeemable in 
 30.21  merchandise only, the amount abandoned is deemed to be 60 
 30.22  percent of the certificate's face value; 
 30.23     (8) amount owed by an insurer on a life or endowment 
 30.24  insurance policy or an annuity that has matured or terminated, 
 30.25  three years after the obligation to pay arose or, in the case of 
 30.26  a policy or annuity payable upon proof of death, three years 
 30.27  after the insured has attained, or would have attained if 
 30.28  living, the limiting age under the mortality table on which the 
 30.29  reserve is based; 
 30.30     (9) property distributable by a business association or 
 30.31  financial organization in a course of dissolution, one year 
 30.32  after the property becomes distributable; 
 30.33     (10) property received by a court as proceeds of a class 
 30.34  action, and not distributed pursuant to the judgment, one year 
 30.35  after the distribution date; 
 30.36     (11) property held by a court, government, governmental 
 31.1   subdivision, agency, or instrumentality, one year after the 
 31.2   property becomes distributable; 
 31.3      (12) wages or other compensation for personal services, one 
 31.4   year after the compensation becomes payable; 
 31.5      (13) deposit or refund owed to a subscriber by a utility, 
 31.6   one year after the deposit or refund becomes payable; 
 31.7      (14) property in an individual retirement account, defined 
 31.8   benefit plan, or other account or plan that is qualified for tax 
 31.9   deferral under the income tax laws of the United States, three 
 31.10  years after the earliest of the date of the distribution or 
 31.11  attempted distribution of the property, the date of the required 
 31.12  distribution as stated in the plan or trust agreement governing 
 31.13  the plan, or the date, if determinable by the holder, specified 
 31.14  in the income tax laws of the United States by which 
 31.15  distribution of the property must begin in order to avoid a tax 
 31.16  penalty; and 
 31.17     (15) all other property, three years after the owner's 
 31.18  right to demand the property or after the obligation to pay or 
 31.19  distribute the property arises, whichever first occurs. 
 31.20     (b) At the time that an interest is presumed abandoned 
 31.21  under paragraph (a), any other property right accrued or 
 31.22  accruing to the owner as a result of the interest, and not 
 31.23  previously presumed abandoned, is also presumed abandoned. 
 31.24     (c) Property is unclaimed if, for the applicable period set 
 31.25  forth in paragraph (a), the apparent owner has not communicated 
 31.26  in writing or by other means reflected in a contemporaneous 
 31.27  record prepared by or on behalf of the holder, with the holder 
 31.28  concerning the property or the account in which the property is 
 31.29  held, and has not otherwise indicated an interest in the 
 31.30  property.  A communication with an owner by a person other than 
 31.31  the holder or its representative who has not in writing 
 31.32  identified the property to the owner is not an indication of 
 31.33  interest in the property by the owner. 
 31.34     (d) An indication of an owner's interest in property 
 31.35  includes: 
 31.36     (1) the presentment of a check or other instrument of 
 32.1   payment of a dividend or other distribution made with respect to 
 32.2   an account or underlying stock or other interest in a business 
 32.3   association or financial organization or, in the case of a 
 32.4   distribution made by electronic or similar means, evidence that 
 32.5   the distribution has been received; 
 32.6      (2) owner-directed activity in the account in which the 
 32.7   property is held, including a direction by the owner to 
 32.8   increase, decrease, or change the amount or type of property 
 32.9   held in the account; 
 32.10     (3) the making of a deposit to or withdrawal from a bank 
 32.11  account; and 
 32.12     (4) the payment of a premium with respect to a property 
 32.13  interest in an insurance policy; but the application of an 
 32.14  automatic premium loan provision or other nonforfeiture 
 32.15  provision contained in an insurance policy does not prevent a 
 32.16  policy from maturing or terminating if the insured has died or 
 32.17  the insured or the beneficiary of the policy has otherwise 
 32.18  become entitled to the proceeds before the depletion of the cash 
 32.19  surrender value of a policy by the application of those 
 32.20  provisions. 
 32.21     (e) Property is payable or distributable for purposes of 
 32.22  sections 345.61 to 345.89 notwithstanding the owner's failure to 
 32.23  make demand or present an instrument or document otherwise 
 32.24  required to obtain payment. 
 32.25     Sec. 3.  [345.63] [CONTENTS OF SAFE DEPOSIT BOX OR OTHER 
 32.26  SAFEKEEPING DEPOSITORY.] 
 32.27     Tangible property held in a safe deposit box or other 
 32.28  safekeeping depository in this state in the ordinary course of 
 32.29  the holder's business and proceeds resulting from the sale of 
 32.30  the property permitted by other law are presumed abandoned if 
 32.31  the property remains unclaimed by the owner for more than five 
 32.32  years after expiration of the lease or rental period on the box 
 32.33  or other depository. 
 32.34     Sec. 4.  [345.64] [RULES FOR TAKING CUSTODY.] 
 32.35     Except as otherwise provided in sections 345.61 to 345.89 
 32.36  or by other statute of this state, property that is presumed 
 33.1   abandoned, whether located in this or another state, is subject 
 33.2   to the custody of this state if: 
 33.3      (1) the last known address of the apparent owner, as shown 
 33.4   on the records of the holder, is in this state; 
 33.5      (2) the records of the holder do not reflect the identity 
 33.6   of the person entitled to the property and it is established 
 33.7   that the last known address of the person entitled to the 
 33.8   property is in this state; 
 33.9      (3) the records of the holder do not reflect the last known 
 33.10  address of the apparent owner and it is established that: 
 33.11     (i) the last known address of the person entitled to the 
 33.12  property is in this state; or 
 33.13     (ii) the holder is domiciled in this state or is a 
 33.14  government or governmental subdivision, agency, or 
 33.15  instrumentality of this state and has not previously paid or 
 33.16  delivered the property to the state of the last known address of 
 33.17  the apparent owner or other person entitled to the property; 
 33.18     (4) the last known address of the apparent owner, as shown 
 33.19  on the records of the holder, is in a state that does not 
 33.20  provide for the escheat or custodial taking of the property and 
 33.21  the holder is domiciled in this state or is a government or 
 33.22  governmental subdivision, agency, or instrumentality of this 
 33.23  state; 
 33.24     (5) the last known address of the apparent owner, as shown 
 33.25  on the records of the holder, is in a foreign country and the 
 33.26  holder is domiciled in this state or is a government or 
 33.27  governmental subdivision, agency, or instrumentality of this 
 33.28  state; 
 33.29     (6) the transaction out of which the property arose 
 33.30  occurred in this state, the holder is domiciled in a state that 
 33.31  does not provide for the escheat or custodial taking of the 
 33.32  property, and the last known address of the apparent owner or 
 33.33  other person entitled to the property is unknown or is in a 
 33.34  state that does not provide for the escheat or custodial taking 
 33.35  of the property; or 
 33.36     (7) the property is a traveler's check or money order 
 34.1   purchased in this state, or the issuer of the traveler's check 
 34.2   or money order has its principal place of business in this state 
 34.3   and the issuer's records show that the instrument was purchased 
 34.4   in a state that does not provide for the escheat or custodial 
 34.5   taking of the property, or do not show the state in which the 
 34.6   instrument was purchased. 
 34.7      Sec. 5.  [345.65] [DORMANCY CHARGE.] 
 34.8      A holder may deduct from property presumed abandoned a 
 34.9   charge imposed by reason of the owner's failure to claim the 
 34.10  property within a specified time only if there is a valid and 
 34.11  enforceable written contract between the holder and the owner 
 34.12  under which the holder may impose the charge and the holder 
 34.13  regularly imposes the charge, which is not regularly reversed or 
 34.14  otherwise canceled.  The total amount of the deduction must not 
 34.15  exceed $30.  In the case of traveler's checks, any service 
 34.16  charge shall be by contract, and may be deducted for a period 
 34.17  not to exceed one year. 
 34.18     Sec. 6.  [345.66] [BURDEN OF PROOF AS TO PROPERTY EVIDENCED 
 34.19  BY RECORD OF CHECK OR DRAFT.] 
 34.20     A record of the issuance of a check, draft, or similar 
 34.21  instrument is prima facie evidence of an obligation.  In 
 34.22  claiming property from a holder who is also the issuer, the 
 34.23  administrator's burden of proof as to the existence and amount 
 34.24  of the property and its abandonment is satisfied by showing 
 34.25  issuance of the instrument and passage of the requisite period 
 34.26  of abandonment.  Defenses of payment, satisfaction, discharge, 
 34.27  and want of consideration are affirmative defenses that must be 
 34.28  established by the holder. 
 34.29     Sec. 7.  [345.67] [REPORT OF ABANDONED PROPERTY.] 
 34.30     (a) A holder of property presumed abandoned shall make a 
 34.31  report to the administrator concerning the property. 
 34.32     (b) The report must be verified and must contain: 
 34.33     (1) a description of the property; 
 34.34     (2) except with respect to a traveler's check or money 
 34.35  order, the name, if known, and last known address, if any, and 
 34.36  the social security number or taxpayer identification number, if 
 35.1   readily ascertainable, of the apparent owner of property of the 
 35.2   value of $100 or more; 
 35.3      (3) an aggregated amount of items valued under $100 each; 
 35.4      (4) in the case of an amount of $100 or more held or owing 
 35.5   under an annuity or a life or endowment insurance policy, the 
 35.6   full name and last known address of the annuitant or insured and 
 35.7   of the beneficiary; 
 35.8      (5) in the case of property held in a safe deposit box or 
 35.9   other safekeeping depository, an indication of the place where 
 35.10  it is held and where it may be inspected by the administrator, 
 35.11  and any amounts owing to the holder; 
 35.12     (6) the date, if any, on which the property became payable, 
 35.13  demandable, or returnable, and the date of the last transaction 
 35.14  with the apparent owner with respect to the property; and 
 35.15     (7) other information that the administrator by rule 
 35.16  prescribes as necessary for the administration of sections 
 35.17  345.61 to 345.89. 
 35.18     (c) If a holder of property presumed abandoned is a 
 35.19  successor to another person who previously held the property for 
 35.20  the apparent owner or the holder has changed its name while 
 35.21  holding the property, the holder shall file with the report its 
 35.22  former names, if any, and the known names and addresses of all 
 35.23  previous holders of the property. 
 35.24     (d) The report must be filed before November 1 of each year 
 35.25  and cover the 12 months next preceding July 1 of that year, but 
 35.26  a report with respect to a life insurance company must be filed 
 35.27  before May 1 of each year for the calendar year next preceding. 
 35.28     (e) The holder of property presumed abandoned shall send 
 35.29  written notice to the apparent owner, not more than 120 days 
 35.30  before filing the report, stating that the holder is in 
 35.31  possession of property subject to sections 345.61 to 345.89, if: 
 35.32     (1) the holder has in its records an address for the 
 35.33  apparent owner which the holder's records do not disclose to be 
 35.34  inaccurate; 
 35.35     (2) the claim of the apparent owner is not barred by a 
 35.36  statute of limitations; and 
 36.1      (3) the value of the property is $100 or more. 
 36.2      (f) Before the date for filing the report, the holder of 
 36.3   property presumed abandoned may request the administrator to 
 36.4   extend the time for filing the report.  The administrator may 
 36.5   grant the extension for good cause.  The holder, upon receipt of 
 36.6   the extension, may make an interim payment on the amount the 
 36.7   holder estimates will ultimately be due, which terminates the 
 36.8   accrual of additional interest on the amount paid.  
 36.9      (g) The holder of property presumed abandoned shall file 
 36.10  with the report an affidavit stating that the holder has 
 36.11  complied with paragraph (e). 
 36.12     Sec. 8.  [345.68] [PAYMENT OR DELIVERY OF ABANDONED 
 36.13  PROPERTY.] 
 36.14     (a) Upon filing the report required by section 345.67, the 
 36.15  holder of property presumed abandoned shall pay, deliver, or 
 36.16  cause to be paid or delivered to the administrator the property 
 36.17  described in the report as unclaimed, but if the property is an 
 36.18  automatically renewable deposit, and a penalty or forfeiture in 
 36.19  the payment of interest would result, the time for compliance is 
 36.20  extended until a penalty or forfeiture would no longer result. 
 36.21     (b) If the property reported to the administrator is a 
 36.22  security or security entitlement under the Uniform Commercial 
 36.23  Code - Investment Securities, the administrator is an 
 36.24  appropriate person to make an endorsement, instruction, or 
 36.25  entitlement order on behalf of the apparent owner to invoke the 
 36.26  duty of the issuer or its transfer agent or the securities 
 36.27  intermediary to transfer or dispose of the security or the 
 36.28  security entitlement in accordance with the Uniform Commercial 
 36.29  Code - Investment Securities. 
 36.30     (c) If the holder of property reported to the administrator 
 36.31  is the issuer of a certificated security, the administrator has 
 36.32  the right to obtain a replacement certificate pursuant to 
 36.33  section 336.8-408, but an indemnity bond is not required. 
 36.34     (d) An issuer, the holder, and any transfer agent or other 
 36.35  person acting pursuant to the instructions of and on behalf of 
 36.36  the issuer or holder in accordance with this section is not 
 37.1   liable to the apparent owner and must be indemnified against 
 37.2   claims of any person in accordance with section 345.70. 
 37.3      Sec. 9.  [345.69] [NOTICE AND PUBLICATION OF LISTS OF 
 37.4   ABANDONED PROPERTY.] 
 37.5      (a) The administrator shall publish a notice not later than 
 37.6   November 30 of the year next following the year in which 
 37.7   abandoned property has been paid or delivered to the 
 37.8   administrator.  The advertisement must be in a form that, in the 
 37.9   judgment of the administrator, is likely to attract the 
 37.10  attention of the apparent owner of the unclaimed property.  The 
 37.11  form must contain: 
 37.12     (1) the name of each person appearing to be the owner of 
 37.13  the property, as set forth in the report filed by the holder; 
 37.14     (2) the last known address or location of each person 
 37.15  appearing to be the owner of the property, if an address or 
 37.16  location is set forth in the report filed by the holder; 
 37.17     (3) a statement explaining that property of the owner is 
 37.18  presumed to be abandoned and has been taken into the protective 
 37.19  custody of the administrator; and 
 37.20     (4) a statement that information about the property and its 
 37.21  return to the owner is available to a person having a legal or 
 37.22  beneficial interest in the property, upon request to the 
 37.23  administrator. 
 37.24     (b) The administrator is not required to advertise the name 
 37.25  and address or location of an owner of property having a total 
 37.26  value less than $100, or information concerning a traveler's 
 37.27  check, money order, or similar instrument. 
 37.28     Sec. 10.  [345.70] [CUSTODY BY STATE; RECOVERY BY HOLDER; 
 37.29  DEFENSE OF HOLDER.] 
 37.30     (a) In this section, payment or delivery is made in "good 
 37.31  faith" if: 
 37.32     (1) payment or delivery was made in a reasonable attempt to 
 37.33  comply with sections 345.61 to 345.89; 
 37.34     (2) the holder was not then in breach of a fiduciary 
 37.35  obligation with respect to the property and had a reasonable 
 37.36  basis for believing, based on the facts then known, that the 
 38.1   property was presumed abandoned; and 
 38.2      (3) there is no showing that the records under which the 
 38.3   payment or delivery was made did not meet reasonable commercial 
 38.4   standards of practice. 
 38.5      (b) Upon payment or delivery of property to the 
 38.6   administrator, the state assumes custody and responsibility for 
 38.7   the safekeeping of the property.  A holder who pays or delivers 
 38.8   property to the administrator in good faith is relieved of 
 38.9   liability arising thereafter with respect to the property to the 
 38.10  extent of the value of the property at the time it is paid or 
 38.11  delivered to the administrator.  
 38.12     (c) A holder who has paid money to the administrator 
 38.13  pursuant to sections 345.61 to 345.89 may subsequently make 
 38.14  payment to a person reasonably appearing to the holder to be 
 38.15  entitled to payment.  Upon a filing by the holder of proof of 
 38.16  payment and proof that the payee was entitled to the payment, 
 38.17  the administrator shall promptly reimburse the holder for the 
 38.18  payment without imposing a fee or other charge.  If 
 38.19  reimbursement is sought for a payment made on a negotiable 
 38.20  instrument, including a traveler's check or money order, the 
 38.21  holder must be reimbursed upon filing proof that the instrument 
 38.22  was duly presented and that payment was made to a person who 
 38.23  reasonably appeared to be entitled to payment.  The holder must 
 38.24  be reimbursed for payment made even if the payment was made to a 
 38.25  person whose claim was barred under section 345.78, paragraph 
 38.26  (a). 
 38.27     (d) A holder who has delivered property other than money to 
 38.28  the administrator pursuant to sections 345.61 to 345.89 may 
 38.29  reclaim the property if it is still in the possession of the 
 38.30  administrator, without paying any fee or other charge, upon 
 38.31  filing proof that the apparent owner has claimed the property 
 38.32  from the holder.  
 38.33     (e) The administrator may accept a holder's affidavit as 
 38.34  sufficient proof of the holder's right to recover money and 
 38.35  property under this section. 
 38.36     (f) If a holder pays or delivers property to the 
 39.1   administrator in good faith and thereafter another person claims 
 39.2   the property from the holder or another state claims the money 
 39.3   or property under its laws relating to escheat or abandoned or 
 39.4   unclaimed property, the administrator, upon written notice of 
 39.5   the claim, shall defend the holder against the claim and 
 39.6   indemnify the holder against any liability on the claim 
 39.7   resulting from payment or delivery of the property to the 
 39.8   administrator but only to the extent of the value of the 
 39.9   property paid or delivered to the administrator. 
 39.10     (g) Property removed from a safe deposit box or other 
 39.11  safekeeping depository is received by the administrator subject 
 39.12  to any valid lien or contract providing for the holder to be 
 39.13  reimbursed for unpaid rent or storage charges.  The 
 39.14  administrator shall reimburse the holder out of the proceeds 
 39.15  remaining after deducting the expense incurred by the 
 39.16  administrator in selling the property. 
 39.17     Sec. 11.  [345.71] [PUBLIC SALE OF ABANDONED PROPERTY.] 
 39.18     (a) Except as otherwise provided in this section, the 
 39.19  administrator, within ten years after the receipt of abandoned 
 39.20  property, shall sell it to the highest bidder at public sale at 
 39.21  a location in the state which in the judgment of the 
 39.22  administrator affords the most favorable market for the 
 39.23  property.  The administrator may decline the highest bid and 
 39.24  reoffer the property for sale if the administrator considers the 
 39.25  bid to be insufficient.  The administrator need not offer the 
 39.26  property for sale if the administrator considers that the 
 39.27  probable cost of the sale will exceed the proceeds of the sale.  
 39.28  A sale held under this section must be preceded by a single 
 39.29  publication of notice, at least three weeks before the sale, in 
 39.30  a newspaper of general circulation in the county in which the 
 39.31  property is to be sold. 
 39.32     (b) Securities listed on an established stock exchange must 
 39.33  be sold at prices prevailing on the exchange at the time of 
 39.34  sale.  Other securities may be sold over the counter at prices 
 39.35  prevailing at the time of the sale or by any reasonable method 
 39.36  selected by the administrator.  If securities are sold by the 
 40.1   administrator before the expiration of three years after their 
 40.2   delivery to the administrator, a person making a claim under 
 40.3   sections 345.61 to 345.89 before the end of the three-year 
 40.4   period is entitled to the proceeds of the sale of the securities 
 40.5   or the market value of the securities at the time the claim is 
 40.6   made, whichever is greater, less any deduction for expenses of 
 40.7   the sale.  A person making a claim under sections 345.61 to 
 40.8   345.89 after the expiration of the three-year period is entitled 
 40.9   to receive the securities delivered to the administrator by the 
 40.10  holder, if they still remain in the custody of the 
 40.11  administrator, or the net proceeds received from the sale, and 
 40.12  is not entitled to receive any appreciation in the value of the 
 40.13  property occurring after delivery to the administrator, except 
 40.14  in a case of intentional misconduct or malfeasance by the 
 40.15  administrator. 
 40.16     (c) A purchaser of property at a sale conducted by the 
 40.17  administrator pursuant to sections 345.61 to 345.89 takes the 
 40.18  property free of all claims of the owner or previous holder and 
 40.19  of all persons claiming through or under them.  The 
 40.20  administrator shall execute all documents necessary to complete 
 40.21  the transfer of ownership. 
 40.22     Sec. 12.  [345.72] [DEPOSIT OF FUNDS.] 
 40.23     (a) Except as otherwise provided by this section, the 
 40.24  administrator shall promptly deposit in the general fund of this 
 40.25  state all funds received under sections 345.61 to 345.89, 
 40.26  including the proceeds from the sale of abandoned property under 
 40.27  section 345.71.  The administrator shall retain in a separate 
 40.28  trust fund at least $100,000 from which the administrator shall 
 40.29  pay claims duly allowed.  The administrator shall record the 
 40.30  name and last known address of each person appearing from the 
 40.31  holders' reports to be entitled to the property and the name and 
 40.32  last known address of each insured person or annuitant and 
 40.33  beneficiary and with respect to each policy or annuity listed in 
 40.34  the report of an insurance company, its number, the name of the 
 40.35  company, and the amount due. 
 40.36     (b) Before making a deposit to the credit of the general 
 41.1   fund, the administrator may deduct: 
 41.2      (1) expenses of the sale of abandoned property; 
 41.3      (2) costs of mailing and publication in connection with 
 41.4   abandoned property; 
 41.5      (3) reasonable service charges; and 
 41.6      (4) expenses incurred in examining records of holders of 
 41.7   property and in collecting the property from those holders. 
 41.8      Sec. 13.  [345.73] [CLAIM OF ANOTHER STATE TO RECOVER 
 41.9   PROPERTY.] 
 41.10     (a) After property has been paid or delivered to the 
 41.11  administrator under sections 345.61 to 345.89, another state may 
 41.12  recover the property if: 
 41.13     (1) the property was paid or delivered to the custody of 
 41.14  this state because the records of the holder did not reflect a 
 41.15  last known location of the apparent owner within the borders of 
 41.16  the other state and the other state establishes that the 
 41.17  apparent owner or other person entitled to the property was last 
 41.18  known to be located within the borders of that state and under 
 41.19  the laws of that state the property has escheated or become 
 41.20  subject to a claim of abandonment by that state; 
 41.21     (2) the property was paid or delivered to the custody of 
 41.22  this state because the laws of the other state did not provide 
 41.23  for the escheat or custodial taking of the property, and under 
 41.24  the laws of that state subsequently enacted the property has 
 41.25  escheated or become subject to a claim of abandonment by that 
 41.26  state; 
 41.27     (3) the records of the holder were erroneous in that they 
 41.28  did not accurately identify the owner of the property and the 
 41.29  last known location of the owner within the borders of another 
 41.30  state and under the laws of that state the property has 
 41.31  escheated or become subject to a claim of abandonment by that 
 41.32  state; 
 41.33     (4) the property was subjected to custody by this state 
 41.34  under section 345.64, clause (6), and under the laws of the 
 41.35  state of domicile of the holder the property has escheated or 
 41.36  become subject to a claim of abandonment by that state; or 
 42.1      (5) the property is a sum payable on a traveler's check, 
 42.2   money order, or similar instrument that was purchased in the 
 42.3   other state and delivered into the custody of this state under 
 42.4   section 345.64, clause (7), and under the laws of the other 
 42.5   state the property has escheated or become subject to a claim of 
 42.6   abandonment by that state. 
 42.7      (b) A claim of another state to recover escheated or 
 42.8   abandoned property must be presented in a form prescribed by the 
 42.9   administrator, who shall decide the claim within 90 days after 
 42.10  it is presented.  The administrator shall allow the claim upon 
 42.11  determining that the other state is entitled to the abandoned 
 42.12  property under paragraph (a). 
 42.13     (c) The administrator shall require another state, before 
 42.14  recovering property under this section, to agree to indemnify 
 42.15  this state and its officers and employees against any liability 
 42.16  on a claim to the property. 
 42.17     Sec. 14.  [345.74] [FILING CLAIM WITH ADMINISTRATOR; 
 42.18  HANDLING OF CLAIMS BY ADMINISTRATOR.] 
 42.19     (a) A person, excluding another state, claiming property 
 42.20  paid or delivered to the administrator may file a claim on a 
 42.21  form prescribed by the administrator and verified by the 
 42.22  claimant. 
 42.23     (b) Within 90 days after a claim is filed, the 
 42.24  administrator shall allow or deny the claim and give written 
 42.25  notice of the decision to the claimant.  If the claim is denied, 
 42.26  the administrator shall inform the claimant of the reasons for 
 42.27  the denial and specify what additional evidence is required 
 42.28  before the claim will be allowed.  The claimant may then file a 
 42.29  new claim with the administrator or maintain an action under 
 42.30  section 345.75. 
 42.31     (c) Within 30 days after a claim is allowed, the property 
 42.32  or the net proceeds of a sale of the property must be delivered 
 42.33  or paid by the administrator to the claimant, together with any 
 42.34  dividend, interest, or other increment to which the claimant is 
 42.35  entitled under section 345.71.  
 42.36     (d) A holder who pays the owner for property that has been 
 43.1   delivered to the state and which, if claimed from the 
 43.2   administrator by the owner would be subject to an increment 
 43.3   under section 345.71, may recover from the administrator the 
 43.4   amount of the increment.  
 43.5      Sec. 15.  [345.75] [ACTION TO ESTABLISH CLAIM.] 
 43.6      A person aggrieved by a decision of the administrator or 
 43.7   whose claim has not been acted upon within 90 days after its 
 43.8   filing may maintain an original action to establish the claim in 
 43.9   the district court, naming the administrator as a defendant.  
 43.10     Sec. 16.  [345.76] [ELECTION TO TAKE PAYMENT OR DELIVERY.] 
 43.11     (a) The administrator may decline to receive property 
 43.12  reported under sections 345.61 to 345.89 which the administrator 
 43.13  considers to have a value less than the expenses of notice and 
 43.14  sale. 
 43.15     (b) A holder, with the written consent of the administrator 
 43.16  and upon conditions and terms prescribed by the administrator, 
 43.17  may report and deliver property before the property is presumed 
 43.18  abandoned.  Property so delivered must be held by the 
 43.19  administrator and is not presumed abandoned until it otherwise 
 43.20  would be presumed abandoned under sections 345.61 to 345.89. 
 43.21     Sec. 17.  [345.77] [DESTRUCTION OR DISPOSITION OF PROPERTY 
 43.22  HAVING NO SUBSTANTIAL COMMERCIAL VALUE; IMMUNITY FROM 
 43.23  LIABILITY.] 
 43.24     If the administrator determines after investigation that 
 43.25  property delivered under sections 345.61 to 345.89 has no 
 43.26  substantial commercial value, the administrator may destroy or 
 43.27  otherwise dispose of the property at any time.  An action or 
 43.28  proceeding may not be maintained against the state or any 
 43.29  officer or against the holder for or on account of an act of the 
 43.30  administrator under this section, except for intentional 
 43.31  misconduct or malfeasance. 
 43.32     Sec. 18.  [345.78] [PERIODS OF LIMITATION.] 
 43.33     (a) The expiration, before or after the effective date of 
 43.34  sections 345.61 to 345.89, of a period of limitation on the 
 43.35  owner's right to receive or recover property, whether specified 
 43.36  by contract, statute, or court order, does not preclude the 
 44.1   property from being presumed abandoned or affect a duty to file 
 44.2   a report or to pay or deliver or transfer property to the 
 44.3   administrator as required by sections 345.61 to 345.89. 
 44.4      (b) An action or proceeding may not be maintained by the 
 44.5   administrator to enforce sections 345.61 to 345.89 in regard to 
 44.6   the reporting, delivery, or payment of property more than ten 
 44.7   years after the holder specifically identified the property in a 
 44.8   report filed with the administrator or gave express notice to 
 44.9   the administrator of a dispute regarding the property.  In the 
 44.10  absence of such a report or other express notice, the period of 
 44.11  limitation is tolled.  The period of limitation is also tolled 
 44.12  by the filing of a report that is fraudulent. 
 44.13     Sec. 19.  [345.79] [REQUESTS FOR REPORTS AND EXAMINATION OF 
 44.14  RECORDS.] 
 44.15     (a) The administrator may require a person who has not 
 44.16  filed a report, or a person who the administrator believes has 
 44.17  filed an inaccurate, incomplete, or false report, to file a 
 44.18  verified report in a form specified by the administrator.  The 
 44.19  report must state whether the person is holding property 
 44.20  reportable under sections 345.61 to 345.89, describe property 
 44.21  not previously reported or as to which the administrator has 
 44.22  made inquiry, and specifically identify and state the amounts of 
 44.23  property that may be in issue. 
 44.24     (b) The administrator, at reasonable times and upon 
 44.25  reasonable notice, may examine the records of any person to 
 44.26  determine whether the person has complied with sections 345.61 
 44.27  to 345.89 if the administrator has reasonable cause to believe 
 44.28  that a person has failed to report property that should have 
 44.29  been reported under sections 345.61 to 345.89.  The 
 44.30  administrator may conduct the examination even if the person 
 44.31  believes it is not in possession of any property that must be 
 44.32  reported, paid, or delivered under sections 345.61 to 345.89.  
 44.33  The administrator may contract with any other person to conduct 
 44.34  the examination on behalf of the administrator. 
 44.35     (c) The administrator at reasonable times may examine the 
 44.36  records of an agent, including a dividend disbursing agent or 
 45.1   transfer agent, of a business association or financial 
 45.2   association that is the holder of property presumed abandoned if 
 45.3   the administrator has given the notice required by paragraph (b) 
 45.4   to both the association or organization and the agent at least 
 45.5   90 days before the examination. 
 45.6      (d) Documents and working papers obtained or compiled by 
 45.7   the administrator, or the administrator's agents, employees, or 
 45.8   designated representatives, in the course of conducting an 
 45.9   examination are confidential and are not public records, but the 
 45.10  documents and papers may be: 
 45.11     (1) used by the administrator in the course of an action to 
 45.12  collect unclaimed property or otherwise enforce sections 345.61 
 45.13  to 345.89; 
 45.14     (2) used in joint examinations conducted with or pursuant 
 45.15  to an agreement with another state, the federal government, or 
 45.16  any other governmental subdivision, agency, or instrumentality; 
 45.17     (3) produced pursuant to subpoena or court order; or 
 45.18     (4) disclosed to the abandoned property office of another 
 45.19  state for that state's use in circumstances equivalent to those 
 45.20  described in this section, if the other state is bound to keep 
 45.21  the documents and papers confidential. 
 45.22     (e) If an examination of the records of a person results in 
 45.23  the disclosure of property reportable under sections 345.61 to 
 45.24  345.89, the administrator may assess the cost of the examination 
 45.25  against the holder at the rate of $200 a day for each examiner, 
 45.26  or a greater amount that is reasonable and was incurred, but the 
 45.27  assessment may not exceed the value of the property found to be 
 45.28  reportable.  The cost of an examination made pursuant to 
 45.29  paragraph (c) may be assessed only against the business 
 45.30  association or financial organization. 
 45.31     (f) If, after the effective date of sections 345.61 to 
 45.32  345.89, a holder does not maintain the records required by 
 45.33  section 345.61 and the records of the holder available for the 
 45.34  periods subject to sections 345.61 to 345.89 are insufficient to 
 45.35  permit the preparation of a report, the administrator may 
 45.36  require the holder to report and pay to the administrator the 
 46.1   amount the administrator reasonably estimates, on the basis of 
 46.2   any available records of the holder or by any other reasonable 
 46.3   method of estimation, should have been but was not reported. 
 46.4      Sec. 20.  [345.80] [RETENTION OF RECORDS.] 
 46.5      (a) Except as otherwise provided in paragraph (b), a holder 
 46.6   required to file a report under section 345.67 shall maintain 
 46.7   the records containing the information required to be included 
 46.8   in the report for ten years after the holder files the report, 
 46.9   unless a shorter period is provided by rule of the administrator.
 46.10     (b) A business association or financial organization that 
 46.11  sells, issues, or provides to others for sale or issue in this 
 46.12  state, traveler's checks, money orders, or similar instruments 
 46.13  other than third-party bank checks, on which the business 
 46.14  association or financial organization is directly liable, shall 
 46.15  maintain a record of the instruments while they remain 
 46.16  outstanding, indicating the state and date of issue, for three 
 46.17  years after the holder files the report. 
 46.18     Sec. 21.  [345.81] [ENFORCEMENT.] 
 46.19     The administrator may maintain an action in this or another 
 46.20  state to enforce sections 345.61 to 345.89. 
 46.21     Sec. 22.  [345.82] [INTERSTATE AGREEMENTS AND COOPERATION; 
 46.22  JOINT AND RECIPROCAL ACTIONS WITH OTHER STATES.] 
 46.23     (a) The administrator may enter into an agreement with 
 46.24  another state to exchange information relating to abandoned 
 46.25  property or its possible existence.  The agreement may permit 
 46.26  the other state, or another person acting on behalf of a state, 
 46.27  to examine records as authorized in section 345.79.  The 
 46.28  administrator by rule may require the reporting of information 
 46.29  needed to enable compliance with an agreement made under this 
 46.30  section and prescribe the form. 
 46.31     (b) The administrator may join with another state to seek 
 46.32  enforcement of sections 345.61 to 345.89 against any person who 
 46.33  is or may be holding property reportable under sections 345.61 
 46.34  to 345.89. 
 46.35     (c) At the request of another state, and after consultation 
 46.36  with the administrator, the attorney general of this state may 
 47.1   maintain an action on behalf of the other state to enforce, in 
 47.2   this state, the unclaimed property laws of the other state 
 47.3   against a holder of property subject to escheat or a claim of 
 47.4   abandonment by the other state, if the other state has agreed to 
 47.5   pay expenses incurred by the attorney general in maintaining the 
 47.6   action. 
 47.7      (d) The administrator may request that the attorney general 
 47.8   of another state or another attorney commence an action in the 
 47.9   other state on behalf of the administrator.  With the approval 
 47.10  of the attorney general of this state, the administrator may 
 47.11  retain any other attorney to commence an action in this state on 
 47.12  behalf of the administrator.  This state shall pay all expenses, 
 47.13  including attorney's fees, in maintaining an action under this 
 47.14  paragraph.  With the administrator's approval, the expenses and 
 47.15  attorney's fees may be paid from money received under sections 
 47.16  345.61 to 345.89.  The administrator may agree to pay expenses 
 47.17  and attorney's fees based in whole or in part on a percentage of 
 47.18  the value of any property recovered in the action.  Any expenses 
 47.19  or attorney's fees paid under this paragraph may not be deducted 
 47.20  from the amount that is subject to the claim by the owner under 
 47.21  sections 345.61 to 345.89. 
 47.22     Sec. 23.  [345.83] [INTEREST AND PENALTIES.] 
 47.23     (a) A holder who fails to report, pay, or deliver property 
 47.24  within the time prescribed by sections 345.61 to 345.89 shall 
 47.25  pay to the administrator interest at the rate prescribed by 
 47.26  section 270.75 on the property or value thereof from the date 
 47.27  the property should have been reported, paid, or delivered. 
 47.28     (b) Except as otherwise provided in paragraph (c), a holder 
 47.29  who fails to report, pay, or deliver property within the time 
 47.30  prescribed by sections 345.61 to 345.89, or fails to perform 
 47.31  other duties imposed by sections 345.61 to 345.89, shall pay to 
 47.32  the administrator, in addition to interest as provided in 
 47.33  paragraph (a), a civil penalty of $200 for each day the report, 
 47.34  payment, or delivery is withheld, or the duty is not performed, 
 47.35  up to a maximum of $5,000. 
 47.36     (c) A holder who willfully fails to report, pay, or deliver 
 48.1   property within the time prescribed by sections 345.61 to 
 48.2   345.89, or willfully fails to perform other duties imposed by 
 48.3   sections 345.61 to 345.89, shall pay to the administrator, in 
 48.4   addition to interest as provided in paragraph (a), a civil 
 48.5   penalty of $1,000 for each day the report, payment, or delivery 
 48.6   is withheld, or the duty is not performed, up to a maximum of 
 48.7   $25,000, plus 25 percent of the value of any property that 
 48.8   should have been but was not reported. 
 48.9      (d) A holder who makes a fraudulent report shall pay to the 
 48.10  administrator, in addition to interest as provided in paragraph 
 48.11  (a), a civil penalty of $1,000 for each day from the date a 
 48.12  report under sections 345.61 to 345.89 was due, up to a maximum 
 48.13  of $25,000, plus 25 percent of the value of any property that 
 48.14  should have been but was not reported. 
 48.15     (e) The administrator for good cause may waive, in whole or 
 48.16  in part, interest under paragraph (a) and penalties under 
 48.17  paragraphs (b) and (c), and shall waive penalties if the holder 
 48.18  acted in good faith. 
 48.19     Sec. 24.  [345.84] [AGREEMENT TO LOCATE PROPERTY.] 
 48.20     (a) An agreement by an owner, the primary purpose of which 
 48.21  is to locate, deliver, recover, or assist in the recovery of 
 48.22  property that is presumed abandoned, is void and unenforceable 
 48.23  if it was entered into during the period commencing on the date 
 48.24  the property was presumed abandoned and extending to a time that 
 48.25  is 24 months after the date the property is paid or delivered to 
 48.26  the administrator.  This paragraph does not apply to an owner's 
 48.27  agreement with an attorney to file a claim as to identified 
 48.28  property or contest the administrator's denial of a claim.  
 48.29     (b) An agreement by an owner, the primary purpose of which 
 48.30  is to locate, deliver, recover, or assist in the recovery of 
 48.31  property, is enforceable only if the agreement is in writing, 
 48.32  clearly sets forth the nature of the property and the services 
 48.33  to be rendered, is signed by the apparent owner, and states the 
 48.34  value of the property before and after the fee or other 
 48.35  compensation has been deducted. 
 48.36     (c) If an agreement covered by this section applies to 
 49.1   mineral proceeds and the agreement contains a provision to pay 
 49.2   compensation that includes a portion of the underlying minerals 
 49.3   or any mineral proceeds not then presumed abandoned, the 
 49.4   provision is void and unenforceable. 
 49.5      (d) This section does not preclude an owner from asserting 
 49.6   that an agreement covered by this section is invalid on grounds 
 49.7   other than unconscionable compensation. 
 49.8      Sec. 25.  [345.85] [FOREIGN TRANSACTIONS.] 
 49.9      Sections 345.61 to 345.89 do not apply to property held, 
 49.10  due, and owing in a foreign country and arising out of a foreign 
 49.11  transaction. 
 49.12     Sec. 26.  [345.86] [TRANSITIONAL PROVISIONS.] 
 49.13     (a) An initial report filed under sections 345.61 to 345.89 
 49.14  for property that was not required to be reported before the 
 49.15  effective date of sections 345.61 to 345.89 but which is subject 
 49.16  to sections 345.61 to 345.89 must include all items of property 
 49.17  that would have been presumed abandoned during the ten-year 
 49.18  period next preceding the effective date of sections 345.61 to 
 49.19  345.89 as if sections 345.61 to 345.89 had been in effect during 
 49.20  that period. 
 49.21     (b) Sections 345.61 to 345.89 do not relieve a holder of a 
 49.22  duty that arose before the effective date of sections 345.61 to 
 49.23  345.89 to report, pay, or deliver property.  Except as otherwise 
 49.24  provided in section 345.78, paragraph (b), a holder who did not 
 49.25  comply with the law in effect before the effective date of 
 49.26  sections 345.61 to 345.89 is subject to the applicable 
 49.27  provisions for enforcement and penalties which then existed, 
 49.28  which are continued in effect for the purpose of this section. 
 49.29     Sec. 27.  [345.87] [RULES.] 
 49.30     The administrator may adopt rules under chapter 14 
 49.31  necessary to carry out sections 345.61 to 345.89. 
 49.32     Sec. 28.  [345.88] [UNIFORMITY OF APPLICATION AND 
 49.33  CONSTRUCTION.] 
 49.34     Sections 345.61 to 345.89 shall be applied and construed to 
 49.35  effectuate its general purpose to make uniform the law with 
 49.36  respect to the subject of sections 345.61 to 345.89 among states 
 50.1   enacting it. 
 50.2      Sec. 29.  [345.89] [SHORT TITLE.] 
 50.3      Sections 345.61 to 345.89 may be cited as the Uniform 
 50.4   Unclaimed Property Act (1995).  
 50.5      Sec. 30.  [TRANSITION PROVISION.] 
 50.6      Notwithstanding section 5, the maximum dormancy charge that 
 50.7   may be imposed by a banking and financial institution or by a 
 50.8   business association for an unclaimed money order until June 30, 
 50.9   1999, is the maximum allowed under the law repealed by this 
 50.10  article. 
 50.11     Sec. 31.  [FISCAL IMPACT; DEPARTMENT STUDY.] 
 50.12     The department of commerce shall monitor the collection of 
 50.13  fees under sections 1 to 29 for the period July 1, 1998, to 
 50.14  December 31, 1998, and compare it to the collections for the 
 50.15  year-earlier period.  If the department determines sections 1 to 
 50.16  29 have caused a reduction in the number of holder reports, it 
 50.17  shall develop recommendations for legislation to eliminate any 
 50.18  negative fiscal impact caused by that reduction.  The department 
 50.19  shall report by February 15, 1999, the results of the monitoring 
 50.20  and any recommendations to the house and senate budget divisions 
 50.21  having jurisdiction over the department's budget. 
 50.22     Sec. 32.  [REPEALER.] 
 50.23     Minnesota Statutes 1996, sections 345.31; 345.32; 345.33; 
 50.24  345.34; 345.35; 345.36; 345.37; 345.38; 345.381; 345.39; 345.40; 
 50.25  345.41; 345.42; 345.43; 345.44; 345.45; 345.46; 345.47; 345.485; 
 50.26  345.49; 345.50; 345.51; 345.515; 345.52; 345.525; 345.53; 
 50.27  345.54; 345.55; 345.56; 345.57; 345.58; 345.59; and 345.60; 
 50.28  Minnesota Statutes 1997 Supplement, section 345.48, are repealed.
 50.29     Sec. 33.  [EFFECTIVE DATE.] 
 50.30     This article is effective July 1, 1998. 
 50.31                             ARTICLE 3 
 50.32                         CONFORMING CHANGES 
 50.33     Section 1.  Minnesota Statutes 1996, section 16A.45, 
 50.34  subdivision 1, is amended to read: 
 50.35     Subdivision 1.  [CANCEL; CREDIT.] Once each fiscal year the 
 50.36  commissioner and the treasurer shall cancel upon their books all 
 51.1   outstanding unpaid commissioner's warrants, except warrants 
 51.2   issued for federal assistance programs, that have been issued 
 51.3   and delivered for more than six months prior to that date and 
 51.4   credit to the general fund the respective amounts of the 
 51.5   canceled warrants.  These warrants are presumed abandoned under 
 51.6   section 345.38 345.62 and are subject to the provisions of 
 51.7   sections 345.31 345.61 to 345.60 345.89.  The commissioner and 
 51.8   the treasurer shall cancel upon their books all outstanding 
 51.9   unpaid commissioner's warrants issued for federal assistance 
 51.10  programs that have been issued and delivered for more than the 
 51.11  period of time set pursuant to the federal program and credit to 
 51.12  the general fund and the appropriate account in the federal 
 51.13  fund, the amount of the canceled warrants. 
 51.14     Sec. 2.  Minnesota Statutes 1996, section 16A.45, 
 51.15  subdivision 4, is amended to read: 
 51.16     Subd. 4.  [LOCATING UNPAID WARRANTS.] A person may not seek 
 51.17  or receive from another person, or contract with a person for, a 
 51.18  fee or compensation for locating outstanding unpaid 
 51.19  commissioner's warrants before the warrants have been reported 
 51.20  to the commissioner of commerce under section 345.41 345.67. 
 51.21     Sec. 3.  Minnesota Statutes 1997 Supplement, section 
 51.22  16A.6701, subdivision 1, is amended to read: 
 51.23     Subdivision 1.  [STATE LICENSE AND SERVICE FEES.] For 
 51.24  purposes of section 16A.67, subdivision 3, and this section, the 
 51.25  term "state license and service fees" means, and refers to, all 
 51.26  license fees, service fees, and charges imposed by law and 
 51.27  collected by any state officer, agency, or employee, which are 
 51.28  listed below or which are defined as departmental earnings under 
 51.29  section 16A.1285, subdivision 1, and the use of which is not 
 51.30  otherwise restricted by law, and which are not required to be 
 51.31  credited or transferred to a fund other than the general fund:  
 51.32     Minnesota Statutes 1994, sections 3.9221; 5.12; 5.14; 5.16; 
 51.33  5A.04; 6.58; 13.03, subdivision 10; 16A.155; 16A.48; 16A.54; 
 51.34  16A.72; 16B.59; 16B.70; 17A.04; 18.51, subdivision 2; 18.53; 
 51.35  18.54; 18C.551; 19.58; 19.64; 27.041, subdivision 2, clauses (d) 
 51.36  and (e); 27.07, subdivision 5; 28A.08; 32.071; 32.075; 32.392; 
 52.1   35.71; 35.824; 35.95; 41C.12; 45.027, subdivisions 3 and 6; 
 52.2   46.041, subdivision 1; 46.131, subdivisions 2, 7, 8, 9, and 10; 
 52.3   47.101, subdivision 2; 47.54, subdivisions 1 and 4; 47.62, 
 52.4   subdivision 4; 47.65; 48.475, subdivision 1; 48.61, subdivision 
 52.5   7; 48.93; 49.36, subdivision 1; 52.01; 52.203; 53.03, 
 52.6   subdivisions 1, 5, and 6; 53.09, subdivision 1; 53A.03; 53A.05, 
 52.7   subdivision 1; 53A.081, subdivision 3; 54.294, subdivision 1; 
 52.8   55.04, subdivision 2; 55.095; 56.02; 56.04; 56.10; 59A.03, 
 52.9   subdivision 2; 59A.06, subdivision 3; 60A.14, subdivisions 1 and 
 52.10  2; 60A.23, subdivision 8; 60K.19, subdivision 5; 65B.48, 
 52.11  subdivision 3; 70A.14, subdivision 4; 72B.04, subdivision 10; 
 52.12  79.251, subdivision 5; 80A.28, subdivisions 1, 2, 3, 4, 5, 6, 7, 
 52.13  7a, 8, and 9; 80C.04, subdivision 1; 80C.07; 80C.08, subdivision 
 52.14  1; 80C.16, subdivisions 2 and 3; 80C.18, subdivision 2; 82.20, 
 52.15  subdivision 8 and 9; 82A.04, subdivision 1; 82A.08, subdivision 
 52.16  2; 82A.16, subdivisions 2 and 6; 82B.09, subdivision 1; 83.23, 
 52.17  subdivisions 2, 3, and 4; 83.25, subdivisions 1 and 2; 83.26, 
 52.18  subdivision 2; 83.30, subdivision 2; 83.31, subdivision 2; 
 52.19  83.38, subdivision 2; 85.052; 85.053; 85.055; 88.79, subdivision 
 52.20  2; 89.035; 89.21; 115.073; 115.77, subdivisions 1 and 2; 116.41, 
 52.21  subdivision 2; 116C.69; 116C.712; 116J.9673; 125.08; 136C.04, 
 52.22  subdivision 9; 155A.045; 155A.16; 168.27, subdivision 11; 
 52.23  168.33, subdivisions 3 and 7; 168.54; 168.67; 168.705; 168A.152; 
 52.24  168A.29; 169.345; 171.06, subdivision 2a; 171.29, subdivision 2; 
 52.25  176.102; 176.1351; 176.181, subdivision 2a; 177.30; 181A.12; 
 52.26  183.545; 183.57; 184.28; 184.29; 184A.09; 201.091, subdivision 
 52.27  5; 204B.11; 207A.02; 214.06; 216C.261; 221.0355; 239.101; 
 52.28  240.06; 240.07; 240.08; 240.09; 240.10; 246.51; 270.69, 
 52.29  subdivision 2; 270A.07; 272.484; 296.06; 296.12; 296.17; 
 52.30  297F.03; 297.33; 299C.46; 299C.62; 299K.09; 299K.095; 299L.07; 
 52.31  299M.04; 300.49; 318.02; 323.44, subdivision 3; 325D.415; 
 52.32  326.22; 326.3331; 326.47; 326.50; 326.92, subdivisions 1 and 3; 
 52.33  327.33; 331A.02; 332.15, subdivisions 2 and 3; 332.17; 332.22, 
 52.34  subdivision 1; 332.33, subdivisions 3 and 4; 332.54, subdivision 
 52.35  7; 333.055; 333.20; 333.23; 336.9-413; 336A.04; 336A.05; 
 52.36  336A.09; 345.35 345.62, paragraph (a), clause (2); 345.43, 
 53.1   subdivision 2a 345.68; 345.44 345.70; 345.55, subdivision 
 53.2   3 345.83; 347.33; 349.151; 349.161; 349.162; 349.163; 349.164; 
 53.3   349.165; 349.166; 349.167; 357.08; 359.01, subdivision 3; 
 53.4   360.018; 360.63; 386.68; and 414.01, subdivision 11; Minnesota 
 53.5   Statutes 1994, chapters 154; 216B; 237; 302A; 303; 308A; 317A; 
 53.6   322A; and 322B; Laws 1990, chapter 593; Laws 1993, chapter 254, 
 53.7   section 7; and Laws 1994, chapter 573, section 4; Minnesota 
 53.8   Rules, parts 1800.0500; 1950.1070; 2100.9300; 7515.0210; and 
 53.9   9545.2000 to 9545.2040. 
 53.10     Sec. 4.  Minnesota Statutes 1996, section 80C.03, is 
 53.11  amended to read: 
 53.12     80C.03 [EXEMPTIONS.] 
 53.13     The registration requirement imposed by section 80C.02 
 53.14  shall not apply to the following provided that the method of 
 53.15  offer or sale is not used for the purpose of evading sections 
 53.16  80C.01 to 80C.22: 
 53.17     (a) the offer or sale of a franchise owned by that 
 53.18  franchisee, or the offer or sale of the entire area franchise 
 53.19  owned by the subfranchisor making the offer or sale if the sale 
 53.20  is not effected by or through a franchisor; provided, however, 
 53.21  that no person shall make more than one sale during any period 
 53.22  of 12 consecutive months of a franchise or area franchise 
 53.23  granted by a single franchisor.  A sale is not effected by or 
 53.24  through a franchisor merely because a franchisor has a right to 
 53.25  approve or disapprove a different franchisee; 
 53.26     (b) any transaction by an executor, administrator, sheriff, 
 53.27  receiver, trustee in bankruptcy, guardian or conservator; 
 53.28     (c) any offer or sale to a banking organization, financial 
 53.29  organization or life insurance corporation company within the 
 53.30  meanings given these terms by section 345.31 345.61; 
 53.31     (d) securities currently registered in this state pursuant 
 53.32  to chapter 80A; 
 53.33     (e) the offer or sale of a franchise, not including an area 
 53.34  franchise, provided that:  
 53.35     (1) the franchisor shall make no more than one sale of a 
 53.36  franchise pursuant to this exemption during any period of 12 
 54.1   consecutive months; 
 54.2      (2) the franchisor has not advertised the franchise for 
 54.3   sale to the general public in newspapers or other publications 
 54.4   of general circulation or otherwise by radio, television, 
 54.5   electronic means or similar communications media, or through a 
 54.6   program of general solicitation by means of mail or telephone; 
 54.7      (3) the franchisor deposits all franchisee fees within two 
 54.8   days of receipt in an escrow account until all obligations of 
 54.9   the franchisor to the franchisee which are, pursuant to the 
 54.10  terms of the franchise agreement, to be performed prior to the 
 54.11  opening of the franchise, have been performed.  The franchisor 
 54.12  shall provide the franchisee with a purchase receipt for the 
 54.13  franchise fees paid, a copy of the escrow agreement and the 
 54.14  name, address and telephone number of the escrow agent.  The 
 54.15  escrow agent shall be a bank located in Minnesota.  Upon a 
 54.16  showing of good cause the commissioner may waive the escrow of 
 54.17  franchise fees; and 
 54.18     (4) the franchisor has provided to the commissioner, no 
 54.19  later than ten business days prior to the sale, a written notice 
 54.20  of its intention to offer or sell a franchise pursuant to this 
 54.21  exemption; 
 54.22     (f) the offer or sale of a fractional franchise; 
 54.23     (g) any transaction which the commissioner by rule or order 
 54.24  exempts as not being within the purposes of this chapter and the 
 54.25  registration of which the commissioner finds is not necessary or 
 54.26  appropriate in the public interest or for the protection of 
 54.27  investors; and 
 54.28     (h) the offer or sale of a franchise to a resident of a 
 54.29  foreign state, territory, or country who is neither domiciled in 
 54.30  this state nor actually present in this state, if the franchise 
 54.31  business is not to be operated wholly or partly in this state, 
 54.32  and if the sale of this franchise is not in violation of any law 
 54.33  of the foreign state, territory, or county concerned.  
 54.34     Sec. 5.  Minnesota Statutes 1996, section 198.231, is 
 54.35  amended to read: 
 54.36     198.231 [PERSONAL PROPERTY OF DISCHARGED RESIDENTS.] 
 55.1      Personal property of discharged residents of the veterans 
 55.2   homes that remains unclaimed for one year after discharge may be 
 55.3   inventoried, appraised, and sold.  The proceeds from the sale 
 55.4   must be deposited into the state treasury.  Proceeds from the 
 55.5   sale of personal property and any funds held on behalf of the 
 55.6   resident in the member's depository accounts must be credited to 
 55.7   a separate state account and disposed of in accordance with 
 55.8   sections 345.41 345.67 to 345.43 345.69.  
 55.9      Sec. 6.  Minnesota Statutes 1996, section 276.19, 
 55.10  subdivision 4, is amended to read: 
 55.11     Subd. 4.  [APPLICABILITY.] Sections 345.31 345.61 to 345.60 
 55.12  345.89 do not apply to unclaimed property tax refunds, 
 55.13  overpayments, and warrants. 
 55.14     Sec. 7.  Minnesota Statutes 1996, section 308A.711, 
 55.15  subdivision 1, is amended to read: 
 55.16     Subdivision 1.  [ALTERNATE PROCEDURE TO DISBURSE PROPERTY.] 
 55.17  Notwithstanding the provisions of section 345.43 345.68, a 
 55.18  cooperative may, in lieu of paying or delivering to the 
 55.19  commissioner of commerce the unclaimed property specified in its 
 55.20  report of unclaimed property, distribute the unclaimed property 
 55.21  to a corporation or organization that is exempt from taxation 
 55.22  under section 290.05, subdivision 1, paragraph (b), or 2.  A 
 55.23  cooperative making the election to distribute unclaimed property 
 55.24  shall, within 20 days after the time specified in section 345.42 
 55.25  345.68 for claiming the property from the holder, file with the 
 55.26  commissioner of commerce: 
 55.27     (1) a verified written explanation of the proof of claim of 
 55.28  an owner establishing a right to receive the abandoned property; 
 55.29     (2) any errors in the presumption of abandonment; 
 55.30     (3) the name, address, and exemption number of the 
 55.31  corporation or organization to which the property was or is to 
 55.32  be distributed; and 
 55.33     (4) the approximate date of distribution. 
 55.34     Sec. 8.  Minnesota Statutes 1996, section 308A.711, 
 55.35  subdivision 2, is amended to read: 
 55.36     Subd. 2.  [REPORTING AND CLAIMING PROCEDURE NOT AFFECTED.] 
 56.1   This subdivision does not alter the procedure provided in 
 56.2   sections 345.41 345.67 and 345.42 345.69 for cooperatives to 
 56.3   report unclaimed property to the commissioner of commerce and 
 56.4   the requirement that claims of owners are made to the 
 56.5   cooperatives for a period of 65 days following the publication 
 56.6   of lists of abandoned property. 
 56.7      Sec. 9.  Minnesota Statutes 1996, section 356.65, 
 56.8   subdivision 2, is amended to read: 
 56.9      Subd. 2.  [DISPOSITION OF ABANDONED AMOUNTS.] Any unclaimed 
 56.10  public pension fund amounts existing in any public pension fund 
 56.11  shall be presumed abandoned, but shall not be subject to the 
 56.12  provisions of sections 345.31 345.61 to 345.60 345.89.  Unless 
 56.13  the benefit plan of the public pension fund specifically 
 56.14  provides for a different disposition of unclaimed or abandoned 
 56.15  funds or amounts, any unclaimed public pension fund amounts 
 56.16  shall cancel and shall be credited to the public pension fund.  
 56.17  If the unclaimed public pension fund amount exceeds $25 and the 
 56.18  inactive or former member again becomes a member of the public 
 56.19  pension fund or applies for a retirement annuity pursuant to 
 56.20  section 3A.12, 352.72, 352B.30, 352C.051, 353.71, 354.60, 
 56.21  356.30, or 422A.16, subdivision 8, whichever is applicable, the 
 56.22  canceled amount shall be restored to the credit of the person.  
 56.23     Sec. 10.  Minnesota Statutes 1996, section 624.68, is 
 56.24  amended to read: 
 56.25     624.68 [RECEIVING DEPOSIT IN INSOLVENT BANKS OR FINANCIAL 
 56.26  ORGANIZATIONS.] 
 56.27     Every officer, director, agent, or employee of any banking 
 56.28  organization or financial organization as defined in section 
 56.29  345.31 345.61 and every person, company, and corporation engaged 
 56.30  in whole or in part, in business as a banking organization or 
 56.31  financial organization, who shall accept or receive on deposit 
 56.32  from any person, any money, bank bills, notes, currency, checks, 
 56.33  bills, drafts, or paper circulating as money, knowing or, in the 
 56.34  case of officers or directors, having good reason to know that 
 56.35  such banking organization or financial organization is 
 56.36  insolvent, and every person knowing of such insolvent condition 
 57.1   who shall be accessory to, or permit, or connive at the 
 57.2   accepting or receiving on deposit therein any such deposits, 
 57.3   shall be guilty of a felony and punished by imprisonment in the 
 57.4   Minnesota correctional facility-Stillwater for not less than one 
 57.5   year nor more than five years or by a fine of not less than $700 
 57.6   nor more than $20,000. 
 57.7                              ARTICLE 4 
 57.8                   INDIVIDUAL DEVELOPMENT ACCOUNTS
 57.9      Section 1.  [119C.01] [ESTABLISHMENT.] 
 57.10     The Minnesota family assets for independence initiative is 
 57.11  established to provide incentives for low-income families to 
 57.12  accrue assets for education, housing, and economic development 
 57.13  purposes. 
 57.14     Sec. 2.  [119C.02] [DEFINITIONS.] 
 57.15     Subdivision 1.  [SCOPE.] For the purposes of sections 
 57.16  119C.01 to 119C.08, the terms defined in this section have the 
 57.17  meanings given them. 
 57.18     Subd. 2.  [FAMILY ASSET ACCOUNT.] "Family asset account" 
 57.19  means a savings account opened by a household participating in 
 57.20  the Minnesota family assets for independence initiative. 
 57.21     Subd. 3.  [COMMISSIONER.] "Commissioner" means the 
 57.22  commissioner of trade and economic development. 
 57.23     Subd. 4.  [FIDUCIARY ORGANIZATION.] "Fiduciary organization"
 57.24  means: 
 57.25     (1) a community action agency that has obtained recognition 
 57.26  under section 268.53; 
 57.27     (2) a community development credit union that: 
 57.28     (i) has a dual mission of promoting community development 
 57.29  and providing high quality services to predominantly low-income 
 57.30  people; 
 57.31     (ii) serves an investment area or targeted population; 
 57.32     (iii) provides development services in conjunction with 
 57.33  equity investments or loans, directly or through a subsidiary or 
 57.34  affiliate; 
 57.35     (iv) maintains, through representation on its governing 
 57.36  board or otherwise, accountability to residents of its 
 58.1   investment area or targeted population; and 
 58.2      (v) is not an agency or instrumentality of the United 
 58.3   States, or of the state or a political subdivision of the state; 
 58.4   or 
 58.5      (3) WomenVenture. 
 58.6      Subd. 5.  [ELIGIBLE EDUCATIONAL INSTITUTION.] "Eligible 
 58.7   educational institution" means: 
 58.8      (1) an institution described in United States Code, title 
 58.9   20, section 1088(a)(1) or section 1141(a); and 
 58.10     (2) an area vocational education school as defined in 
 58.11  United States Code, title 20, section 2471(4)(C) or (D). 
 58.12     Subd. 6.  [FINANCIAL INSTITUTION.] "Financial institution" 
 58.13  means an office of a bank, trust company, savings bank, savings 
 58.14  association, or credit union. 
 58.15     Subd. 7.  [POST-SECONDARY EDUCATIONAL EXPENSES.] 
 58.16  "Post-secondary educational expenses" means: 
 58.17     (1) tuition and fees required for the enrollment or 
 58.18  attendance of a student at an eligible educational institution; 
 58.19  and 
 58.20     (2) fees, books, supplies, and equipment required for 
 58.21  courses of instruction at an eligible educational institution. 
 58.22     Subd. 8.  [QUALIFIED ACQUISITION COSTS.] "Qualified 
 58.23  acquisition costs" means the costs of acquiring, constructing, 
 58.24  or reconstructing a residence, including any usual or reasonable 
 58.25  settlement, financing, or other closing costs. 
 58.26     Subd. 9.  [QUALIFIED BUSINESS.] "Qualified business" means 
 58.27  any business that does not contravene any law or public policy. 
 58.28     Subd. 10.  [QUALIFIED BUSINESS CAPITALIZATION 
 58.29  EXPENSES.] "Qualified business capitalization expenses" means 
 58.30  qualified expenditures for the capitalization of a business 
 58.31  pursuant to a qualified plan. 
 58.32     Subd. 11.  [QUALIFIED EXPENDITURES.] "Qualified 
 58.33  expenditures" means expenditures included in a qualified plan, 
 58.34  including capital, plant, equipment, working capital, and 
 58.35  inventory expenses. 
 58.36     Subd. 12.  [QUALIFIED PLAN.] "Qualified plan" means a 
 59.1   business plan that: 
 59.2      (1) is approved by a financial institution, or by a 
 59.3   nonprofit loan fund or microenterprise program that has 
 59.4   demonstrated fiduciary integrity; 
 59.5      (2) includes a description of services or goods to be sold, 
 59.6   a marketing plan, and projected financial statements; and 
 59.7      (3) may require the participant to obtain the assistance of 
 59.8   an experienced entrepreneurial advisor. 
 59.9      Subd. 13.  [QUALIFIED PRINCIPAL RESIDENCE.] "Qualified 
 59.10  principal residence" means a principal residence within the 
 59.11  meaning of section 1034 of the Internal Revenue Code of 1986, 
 59.12  the qualified acquisition costs of which do not exceed 100 
 59.13  percent of the average area purchase price applicable to the 
 59.14  residence determined according to paragraphs (2) and (3) of 
 59.15  section 143(e) of the Internal Revenue Code of 1986. 
 59.16     Subd. 14.  [FEDERAL POVERTY LEVEL.] "Federal poverty level" 
 59.17  means the poverty income guidelines published in the calendar 
 59.18  year by the United States Department of Health and Human 
 59.19  Services. 
 59.20     Subd. 15.  [HOUSEHOLD.] "Household" means all individuals 
 59.21  who share use of a dwelling unit as primary quarters for living 
 59.22  and eating separate from other individuals. 
 59.23     Sec. 3.  [119C.03] [GRANTS APPLICATION.] 
 59.24     Subdivision 1.  [GRANTS AWARDED.] The commissioner shall 
 59.25  award grants to fiduciary organizations to provide family asset 
 59.26  services under this chapter for up to four years. 
 59.27     Subd. 2.  [APPLICATIONS.] A fiduciary organization may 
 59.28  apply to the commissioner for a grant to provide family asset 
 59.29  services.  The application must be submitted in a form approved 
 59.30  by the commissioner and must include: 
 59.31     (1) a proposal for the provision of family asset services, 
 59.32  including program objectives, number of participating 
 59.33  households, match rate, availability of adequate funding, 
 59.34  appropriateness of the proposed services for the population to 
 59.35  be served, and outreach activities; 
 59.36     (2) a proposed budget; 
 60.1      (3) a plan for collection of required data and the method 
 60.2   to be used for program evaluation; 
 60.3      (4) evidence of the participation in the development of the 
 60.4   application of any agency or governmental body that will provide 
 60.5   services or assistance to the program; and 
 60.6      (5) any other information the commissioner may require. 
 60.7      Subd. 3.  [DUTIES.] A fiduciary organization that receives 
 60.8   a grant under this chapter shall: 
 60.9      (1) establish an account in which all funds provided to the 
 60.10  organization for the purpose of the family assets for 
 60.11  independence initiative are deposited; 
 60.12     (2) determine whether an applicant household is eligible to 
 60.13  participate in the family assets for independence initiative; 
 60.14     (3) select, from eligible households, the households best 
 60.15  suited to participate, with preference given to individuals 
 60.16  residing within neighborhoods or communities that experience low 
 60.17  rates of income or employment; 
 60.18     (4) develop, with the household, a family asset agreement; 
 60.19     (5) provide households with economic literacy education, 
 60.20  including information on budgeting, use of credit, 
 60.21  homeownership, and long-term financial planning; 
 60.22     (6) provide matching deposits for households selected to 
 60.23  participate; 
 60.24     (7) coordinate with homeownership programs administered by 
 60.25  the commissioner of the Minnesota housing finance agency; 
 60.26     (8) establish a grievance committee and a procedure to 
 60.27  hear, review, and decide in writing any grievance made by a 
 60.28  household; and 
 60.29     (9) comply with all requirements of this chapter and of the 
 60.30  commissioner related to administration of the grants. 
 60.31     Sec. 4.  [119C.04] [HOUSEHOLD ELIGIBILITY; PARTICIPATION.] 
 60.32     Subdivision 1.  [INITIAL ELIGIBILITY.] To be eligible for 
 60.33  the family assets for independence initiative, the household's 
 60.34  income must be below 150 percent of the federal poverty level.  
 60.35  An individual who is a dependent of another person for federal 
 60.36  income tax purposes may not be a separate eligible household for 
 61.1   purposes of this chapter, but may be included in the household 
 61.2   of the taxpayer who claims the individual as a dependent if they 
 61.3   meet the definition of household in section 119C.02, subdivision 
 61.4   15.  In verifying income eligibility, the fiduciary organization 
 61.5   shall apply procedures and policies consistent with procedures 
 61.6   and policies used under the low-income home energy assistance 
 61.7   program. 
 61.8      Subd. 2.  [PARTICIPATION.] To participate in the family 
 61.9   assets for independence initiative, a household must: 
 61.10     (1) be selected by a fiduciary organization; 
 61.11     (2) enter into a family asset agreement with a fiduciary 
 61.12  organization; and 
 61.13     (3) open a savings account at a financial institution. 
 61.14     Subd. 3.  [FAMILY ASSET AGREEMENT; CONTENTS.] The fiduciary 
 61.15  organization and the household must develop a family asset 
 61.16  agreement for the household.  The family asset agreement must 
 61.17  include the amount of the household's regularly scheduled 
 61.18  contribution to their savings account, the household's savings 
 61.19  goal, and how the household will use savings and matching funds 
 61.20  for one or more permissible uses.  The household must agree to 
 61.21  complete an economic literacy training program.  A family asset 
 61.22  agreement may be amended upon agreement by the household and the 
 61.23  fiduciary organization. 
 61.24     Subd. 4.  [INDIVIDUAL CONTRIBUTIONS.] A household may only 
 61.25  deposit money in a family asset account that is derived from 
 61.26  earned income of members of the household and income from state 
 61.27  and federal earned income credits of members of the household.  
 61.28     Sec. 5.  [119C.05] [WITHDRAWAL; MATCHING; PERMISSIBLE 
 61.29  USES.] 
 61.30     Subdivision 1.  [WITHDRAWAL OF FUNDS.] To receive a match 
 61.31  upon withdrawal of funds from a family asset account, a 
 61.32  participant must make a request for withdrawal of funds and 
 61.33  agree to transfer withdrawn funds to the fiduciary organization. 
 61.34  The fiduciary organization must determine whether the request 
 61.35  for withdrawal of funds is for a permissible use consistent with 
 61.36  this section and the household's family asset agreement.  A 
 62.1   "permissible use" means using funds to pay for: 
 62.2      (1) post-secondary educational expenses; 
 62.3      (2) qualified home acquisition costs; 
 62.4      (3) qualified business capitalization expenses; or 
 62.5      (4) amounts paid for repairs to a qualified principal 
 62.6   residence to comply with city housing or health and safety codes 
 62.7   or for other major repairs or improvements to a qualified 
 62.8   principal residence. 
 62.9      Subd. 2.  [MATCHING.] If the request for withdrawal is 
 62.10  approved, a household's account will be matched at the time of 
 62.11  withdrawal based on the balance in the household's account, 
 62.12  including interest, at the time of withdrawal.  Matches must be 
 62.13  provided as follows: 
 62.14     (1) from the funds provided by the commissioner, a matching 
 62.15  contribution of $2 for every $1 of funds withdrawn from the 
 62.16  family asset account; 
 62.17     (2) from funds other than those provided by the 
 62.18  commissioner, a matching contribution of no less than $2 for 
 62.19  every $1 of funds withdrawn from the family asset account. 
 62.20     The maximum match under clause (1) is $1,200 of state funds 
 62.21  per account per year. 
 62.22     Subd. 3.  [VENDOR PAYMENT OF WITHDRAWN FUNDS.] Upon receipt 
 62.23  of withdrawn funds, the fiduciary organization shall make a 
 62.24  direct payment to the vendor of the goods or services being 
 62.25  purchased by the household. 
 62.26     Sec. 6.  [119C.07] [REPORTING; EVALUATION.] 
 62.27     Subdivision 1.  [PROGRAM REPORTING.] Each fiduciary 
 62.28  organization operating a family assets for independence 
 62.29  initiative program shall report annually to the commissioner the 
 62.30  number of accounts, the amount of savings and matches for each 
 62.31  account, the uses of the account, and the number of businesses, 
 62.32  homes, and educational services paid for with money from the 
 62.33  account, as well as other information that may be required for 
 62.34  the state to operate the program effectively. 
 62.35     Subd. 2.  [STATE REPORTING.] The commissioner shall prepare 
 62.36  a written report annually regarding the family assets for 
 63.1   independence program.  The report shall be submitted to the 
 63.2   legislature on or before January 15 of 2000 and each subsequent 
 63.3   year. 
 63.4      Subd. 3.  [EVALUATION.] The commissioner shall conduct an 
 63.5   evaluation of the family assets for independence initiative that 
 63.6   analyzes the program's impact on savings rates, homeownership, 
 63.7   level of education attained, and self-employment, and how such 
 63.8   impacts vary among different populations and communities.  The 
 63.9   commissioner shall report to the legislature on the evaluation 
 63.10  by January 15, 2003. 
 63.11     Sec. 7.  [119C.08] [ECONOMIC LITERACY CURRICULUM.] 
 63.12     The fiduciary organization shall develop an economic 
 63.13  literacy curriculum for use by fiduciary organizations 
 63.14  participating in the family assets for independence initiative.