1.1                          A bill for an act 
  1.2             relating to economic development; appropriating money 
  1.3             for economic development and certain agencies of state 
  1.4             government; establishing and modifying programs; 
  1.5             regulating activities and practices; establishing 
  1.6             pilot projects; requiring reports; modifying fees; 
  1.7             providing criminal penalties; amending Minnesota 
  1.8             Statutes 1998, sections 45.0295; 53A.05, subdivision 
  1.9             1; 60A.14, subdivision 1; 60A.23, subdivision 8; 
  1.10            60A.71, subdivision 7; 60K.06; 65B.48, subdivision 3; 
  1.11            70A.14, subdivision 4; 116J.421, subdivision 3, and by 
  1.12            adding subdivisions; 116J.8731, subdivision 5; 
  1.13            116J.8745, subdivisions 1 and 2; 175.17; 176.181, 
  1.14            subdivision 2a; 216C.41, subdivision 1; 268.666, by 
  1.15            adding a subdivision; 268A.13; 268A.14; 298.22, 
  1.16            subdivisions 2, 6, and 7; 298.2213, subdivision 4; 
  1.17            298.223, subdivision 2; 326.86, subdivision 1; 
  1.18            383B.79, subdivision 4; 462A.204, by adding a 
  1.19            subdivision; 462A.205, by adding a subdivision; 
  1.20            462A.209; 462A.21, by adding a subdivision; and 
  1.21            473.251; Laws 1998, chapter 404, section 5, 
  1.22            subdivision 4; proposing coding for new law in 
  1.23            Minnesota Statutes, chapters 82B; 116J; 245; 268; 
  1.24            462A; and 473; repealing Minnesota Statutes 1998, 
  1.25            sections 44A.001; 44A.01; 44A.02; 44A.023; 44A.025; 
  1.26            44A.031; 44A.0311; 44A.06; 44A.08; 44A.11; and 462A.28.
  1.27  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.28  Section 1.  [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 
  1.29     The sums shown in the columns marked "APPROPRIATIONS" are 
  1.30  appropriated from the general fund, or another named fund, to 
  1.31  the agencies and for the purposes specified in this act, to be 
  1.32  available for the fiscal years indicated for each purpose.  The 
  1.33  figures "2000" and "2001," where used in this act, mean that the 
  1.34  appropriation or appropriations listed under them are available 
  1.35  for the year ending June 30, 2000, or June 30, 2001, 
  1.36  respectively.  The term "first year" means the fiscal year 
  2.1   ending June 30, 2000, and "second year" means the fiscal year 
  2.2   ending June 30, 2001. 
  2.3                           SUMMARY BY FUND
  2.4                             2000          2001           TOTAL
  2.5   General              $228,244,000   $184,455,000   $412,699,000
  2.6   Petroleum Tank
  2.7   Cleanup                 1,015,000      1,045,000      2,060,000
  2.8   Trunk Highway             745,000        766,000      1,511,000 
  2.9   Workers' 
  2.10  Compensation           22,217,000     22,439,000     44,656,000
  2.11  Environmental             700,000        700,000      1,400,000
  2.12  TOTAL                $252,921,000   $209,405,000   $462,326,000
  2.13                                             APPROPRIATIONS 
  2.14                                         Available for the Year 
  2.15                                             Ending June 30 
  2.16                                            2000         2001 
  2.17  Sec. 2.  TRADE AND ECONOMIC DEVELOPMENT 
  2.18  Subdivision 1.  Total       
  2.19  Appropriation                        $ 39,895,000  $ 32,171,000
  2.20                Summary by Fund
  2.21  General              38,450,000    30,705,000
  2.22  Trunk Highway           745,000       766,000 
  2.23  Environmental           700,000       700,000
  2.24  The amounts that may be spent from this 
  2.25  appropriation for each program are 
  2.26  specified in the following subdivisions.
  2.27  Subd. 2.  Business and Community
  2.28  Development                            23,570,000    16,549,000 
  2.29                Summary by Fund
  2.30  General              22,870,000    15,849,000
  2.31  Environmental           700,000       700,000
  2.32  $3,017,000 the first year and 
  2.33  $2,517,000 the second year are for 
  2.34  Minnesota investment fund grants.  
  2.35  $1,000,000 the first year is for the 
  2.36  taconite mining grant program under 
  2.37  Minnesota Statutes, section 116J.992. 
  2.38  $405,000 the first year is for a grant 
  2.39  to Advantage Minnesota, Inc.  The funds 
  2.40  are available only if matched on at 
  2.41  least a dollar-for-dollar basis from 
  2.42  other sources.  The commissioner may 
  2.43  release the funds only upon: 
  2.44  (1) certification that matching funds 
  2.45  from each participating organization 
  2.46  are available; and 
  3.1   (2) review and approval by the 
  3.2   commissioner of the proposed operations 
  3.3   plan of Advantage Minnesota, Inc. for 
  3.4   the biennium. 
  3.5   $5,924,000 the first year and 
  3.6   $5,931,000 the second year are for the 
  3.7   job skills partnership program.  If the 
  3.8   appropriation for either year is 
  3.9   insufficient, the appropriation for the 
  3.10  other year is available.  This 
  3.11  appropriation does not cancel.  
  3.12  $500,000 the first year is for a grant 
  3.13  to the city of Fridley for costs of the 
  3.14  design and construction of 
  3.15  infrastructure improvements required by 
  3.16  a large business campus development in 
  3.17  the Moore lakes area of the city. 
  3.18  $3,050,000 in each year is for deposit 
  3.19  in the contaminated site cleanup and 
  3.20  development account created in 
  3.21  Minnesota Statutes, section 116J.551.  
  3.22  The appropriation in the first year is 
  3.23  for the purpose of making grants to the 
  3.24  St. Paul port authority to continue 
  3.25  removal of blight by property 
  3.26  acquisition, site preparation, and 
  3.27  redevelopment activities on and around 
  3.28  the former Stroh's brewery, Maxson 
  3.29  Steel, and Dale Street Shops sites, and 
  3.30  to acquire a roadway right-of-way in 
  3.31  the Phalen corridor in the city of St. 
  3.32  Paul and to the city of Minneapolis for 
  3.33  contamination cleanup in federally 
  3.34  designated empowerment zones.  
  3.35  $250,000 the first year is for 
  3.36  technical assistance to microenterprise 
  3.37  under Minnesota Statutes, section 
  3.38  116J.8745. 
  3.39  $551,000 the first year and $565,000 
  3.40  the second year are from fees collected 
  3.41  under Minnesota Statutes, section 
  3.42  446A.04, subdivision 5, to administer 
  3.43  the programs of the public facilities 
  3.44  authority. 
  3.45  $225,000 the first year is for a grant 
  3.46  to the board of the rural policy and 
  3.47  development center for operation of the 
  3.48  center. 
  3.49  $140,000 the first year is for a grant 
  3.50  to the metropolitan economic 
  3.51  development association. 
  3.52  $315,000 the first year and $315,000 
  3.53  the second year are for grants to 
  3.54  WomenVenture.  WomenVenture must 
  3.55  implement a program to encourage and 
  3.56  assist women to enter nontraditional 
  3.57  careers in the trades and technical 
  3.58  occupations.  The program shall consist 
  3.59  of outreach to women and girls and 
  3.60  training, job placement, and job 
  3.61  retention support that meet women's 
  3.62  specific needs.  The program must be 
  3.63  accessible to low-income working 
  4.1   mothers, including MFIP recipients. 
  4.2   $450,000 is for a grant to the city of 
  4.3   Duluth to support the development of 
  4.4   the Duluth Technology Village.  The 
  4.5   grant shall be used to establish 
  4.6   international partnerships, attract 
  4.7   software businesses, recruit and train 
  4.8   workers for the software industry, and 
  4.9   support a software business incubator 
  4.10  facility.  This is a one-time 
  4.11  appropriation and is not part of the 
  4.12  agency base budget.  This appropriation 
  4.13  is not available unless matched by 
  4.14  nonstate money. 
  4.15  $80,000 in the first year is for a 
  4.16  grant to the Neighborhood Development 
  4.17  Center, Inc.  The center shall use the 
  4.18  grant for the purpose of expanding and 
  4.19  improving its neighborhood and 
  4.20  ethnic-based entrepreneur training, 
  4.21  lending, and support programs in the 
  4.22  poorest communities of Minneapolis and 
  4.23  St. Paul. This appropriation is added 
  4.24  to the department's budget base. 
  4.25  $180,000 in the first year is for a 
  4.26  grant to the suburban Hennepin regional 
  4.27  park district for restoration of the 
  4.28  Grimm farmstead. 
  4.29  $150,000 in the first year is for a 
  4.30  grant to the city of Ely for 
  4.31  rehabilitation of the Ely technical 
  4.32  building.  
  4.33  $90,000 is for a grant to the city of 
  4.34  Lake Benton for planning costs 
  4.35  associated with a new visitor center 
  4.36  and railroad depot building.  This is a 
  4.37  one-time appropriation and is not added 
  4.38  to the agency's base. 
  4.39  $900,000 in the first year is for the 
  4.40  community resources program under 
  4.41  Minnesota Statutes, chapter 466A. 
  4.42  $400,000 is for a grant to the Camp 
  4.43  Heartland center.  The grant shall be 
  4.44  used for phase II capital expenditures 
  4.45  for a septic system upgrade and 
  4.46  bath/shower house construction. 
  4.47  $50,000 in the first year is for a 
  4.48  grant to the city of St. Paul for the 
  4.49  enhancement of the West Seventh 
  4.50  Street/Gateway area, which serves as a 
  4.51  major transportation and commercial 
  4.52  corridor for visitors from the 
  4.53  Minneapolis-St. Paul International 
  4.54  Airport, Mall of America, and other 
  4.55  destinations.  The appropriation may be 
  4.56  used to make improvements to the public 
  4.57  right-of-way including, but not limited 
  4.58  to, landscaping, lighting, signage, and 
  4.59  roadway improvements.  This 
  4.60  appropriation must be matched 
  4.61  one-for-one by nonstate funds. 
  4.62  $2,000,000 in the first year and 
  5.1   $1,000,000 in the second year are for 
  5.2   the redevelopment account under 
  5.3   Minnesota Statutes, sections 116J.561 
  5.4   to 116J.567.  The appropriation is 
  5.5   available for the biennium ending June 
  5.6   30, 2001. 
  5.7   $100,000 in the first year is for a 
  5.8   grant to Perham Business Technology 
  5.9   Center to equip the training center 
  5.10  with interactive television and for 
  5.11  program funds to implement the business 
  5.12  plan. 
  5.13  $300,000 in the first year is for a 
  5.14  grant to the city of Owatonna for city 
  5.15  infrastructure improvements. 
  5.16  $300,000 the first year is for a grant 
  5.17  to the city of St. Peter to assist with 
  5.18  the cost of the community center 
  5.19  destroyed by a tornado. 
  5.20  $70,000 in the first year and $80,000 
  5.21  in the second year are for grants to 
  5.22  the greater metropolitan area foreign 
  5.23  trade zones commission for promotion of 
  5.24  foreign trade zones in Minnesota. 
  5.25  $200,000 the first year is for a grant 
  5.26  to Wabasha county for water and 
  5.27  sanitary sewer extension from the city 
  5.28  of Wabasha to the unincorporated area 
  5.29  of Reads Landing in Pepin township in 
  5.30  Wabasha county. 
  5.31  The commissioner shall adjust 
  5.32  allocations of grants under Minnesota 
  5.33  Statutes, section 469.309, to reflect 
  5.34  appropriation levels. 
  5.35  Subd. 3.  Minnesota Trade Office 
  5.36       2,275,000      2,318,000
  5.37  The department shall act as the lead 
  5.38  agency in developing a plan for a 
  5.39  coordinated effort to promote Minnesota 
  5.40  internationally.  The commissioner may 
  5.41  appoint an advisory committee and may 
  5.42  seek federal and private funding to 
  5.43  develop and implement the plan. 
  5.44  Subd. 4.  Tourism 
  5.45       8,854,000      8,909,000
  5.46                Summary by Fund
  5.47  General               8,109,000     8,143,000
  5.48  Trunk Highway           745,000       766,000
  5.49  To develop maximum private sector 
  5.50  involvement in tourism, $3,000,000 the 
  5.51  first year and $3,000,000 the second 
  5.52  year of the amounts appropriated for 
  5.53  marketing activities are contingent on 
  5.54  receipt of an equal contribution from 
  5.55  nonstate sources that have been 
  5.56  certified by the commissioner.  Up to 
  6.1   one-half of the match may be given in 
  6.2   in-kind contributions.  This 
  6.3   appropriation may not be spent until 
  6.4   the money is matched. 
  6.5   In order to maximize marketing grant 
  6.6   benefits, the commissioner must give 
  6.7   priority for joint venture marketing 
  6.8   grants to organizations with year-round 
  6.9   sustained tourism activities.  For 
  6.10  programs and projects submitted, the 
  6.11  commissioner must give priority to 
  6.12  those that encompass two or more areas 
  6.13  or that attract nonresident travelers 
  6.14  to the state. 
  6.15  If an appropriation for either year for 
  6.16  grants is not sufficient, the 
  6.17  appropriation for the other year is 
  6.18  available for it. 
  6.19  The commissioner may use grant dollars 
  6.20  or the value of in-kind services to 
  6.21  provide the state contribution for the 
  6.22  partnership program. 
  6.23  Any unexpended money from general fund 
  6.24  appropriations made under this 
  6.25  subdivision does not cancel but must be 
  6.26  placed in a special advertising account 
  6.27  for use by the office of tourism to 
  6.28  purchase additional media. 
  6.29  This appropriation may be used for the 
  6.30  costs of activities to resolve a 
  6.31  dispute concerning fishing restrictions 
  6.32  in Ontario waters that unduly restrict 
  6.33  the rights of Minnesota residents to 
  6.34  take fish by angling in border waters 
  6.35  and to increase tourism in the areas 
  6.36  near the northern border of Minnesota 
  6.37  including the Northwest Angle.  The 
  6.38  commissioner may use this appropriation 
  6.39  for:  (1) a grant to the attorney 
  6.40  general to study a legal challenge in 
  6.41  the courts of Ontario or any other 
  6.42  available forum to actions of that 
  6.43  province relating to fishing rights of 
  6.44  Minnesotans in border waters; (2) 
  6.45  efforts to mediate the dispute; (3) 
  6.46  seeking recourse through the mechanisms 
  6.47  of international trade agreements; or 
  6.48  (4) other actions the commissioner 
  6.49  deems necessary to achieve a resolution.
  6.50  This appropriation may be used for 
  6.51  programs to:  (1) increase occupancy 
  6.52  and visitations at lodging and 
  6.53  attractions in the Mille Lacs area from 
  6.54  out-of-state markets, focusing on 
  6.55  promoting nonconsumptive vertical 
  6.56  markets including biking, hiking, 
  6.57  snowmobiling, boating, birdwatching, 
  6.58  and golfing; (2) increase awareness of 
  6.59  safe environmental practices and 
  6.60  compliance with regulations to protect 
  6.61  the Mille Lacs fishery; (3) improve the 
  6.62  Soo Line Trail in the Mille Lacs area; 
  6.63  and (4) evaluate marketing projects.  
  6.64  This appropriation may be used for a 
  7.1   grant to Minnesota Festivals and Events 
  7.2   Association for the following purposes: 
  7.3   (1) for a partnership with the 
  7.4   University of Minnesota's tourism 
  7.5   center to build the methodology for a 
  7.6   low-cost economic impact model that 
  7.7   will allow festival and event managers 
  7.8   to conduct research independently in 
  7.9   their own communities; 
  7.10  (2) to promote regional workshops to 
  7.11  increase production value and 
  7.12  professionalism for events in the 
  7.13  state, increase event service and 
  7.14  entertainment value for local 
  7.15  residents, build community awareness of 
  7.16  opportunities to generate new tourism, 
  7.17  and assure production of high quality, 
  7.18  safe, and meaningful tourism products 
  7.19  that are in line with the vision, 
  7.20  mission, and growth goals of individual 
  7.21  towns and cities in Minnesota; 
  7.22  (3) for a partnership with the 
  7.23  University of Minnesota's tourism 
  7.24  center to enhance professionalism via 
  7.25  its certified festival manager program, 
  7.26  training event managers and volunteer 
  7.27  staff to implement value-added 
  7.28  festivals and events for visitors to 
  7.29  the state; 
  7.30  (4) for a partnership with the 
  7.31  Minnesota office of tourism to publish 
  7.32  a pull-out mini-magazine advertising 
  7.33  the statewide festivals and events 
  7.34  calendar for the year; and 
  7.35  (5) to expand the Minnesota Festivals 
  7.36  and Events Association website, to 
  7.37  provide travel planners with more 
  7.38  festival and event intensive links to 
  7.39  communities hosting such activities. 
  7.40  $250,000 in the first year is for the 
  7.41  purpose of the Upper Red Lake business 
  7.42  loan program.  
  7.43  $100,000 is for a grant to the city of 
  7.44  Lanesboro for predevelopment costs for 
  7.45  the Root River Regional Arts Center. 
  7.46  $829,000 the first year and $829,000 
  7.47  the second year are for the Minnesota 
  7.48  film board.  This appropriation is 
  7.49  available only upon receipt by the 
  7.50  board of $1 in matching contributions 
  7.51  of money or in-kind from nonstate 
  7.52  sources for every $3 provided by this 
  7.53  appropriation.  The commissioner may 
  7.54  use this appropriation for the film 
  7.55  production jobs program. 
  7.56  Subd. 5.  Administration 
  7.57       4,021,000      3,192,000
  7.58  $874,000 the first year is appropriated 
  7.59  for enhancements to the journey travel 
  7.60  destination system.  The funds are 
  8.1   available only if matched on at least a 
  8.2   dollar-for-dollar basis from other 
  8.3   sources.  This is a one-time 
  8.4   appropriation and is available until 
  8.5   spent. 
  8.6   Subd. 6.  Information and Analysis
  8.7        1,415,000      1,450,000
  8.8   Subd. 7.  Reductions 
  8.9   The appropriation totals to the agency 
  8.10  for each year reflect a salary base 
  8.11  reduction of $240,000 for fiscal year 
  8.12  2000 and $247,000 for fiscal year 2001 
  8.13  that the agency must achieve by 
  8.14  reducing the personal services budget 
  8.15  category expenditures from the amounts 
  8.16  specified in the governor's proposed 
  8.17  budget for those years.  
  8.18  Sec. 3.  MINNESOTA TECHNOLOGY, INC.    7,858,000      8,220,000
  8.19  $6,041,000 the first year and 
  8.20  $6,541,000 the second year are for 
  8.21  transfer from the general fund to the 
  8.22  Minnesota Technology, Inc. fund. 
  8.23  The appropriation totals to the agency 
  8.24  for each year reflect a salary base 
  8.25  reduction of $132,000 for fiscal year 
  8.26  2000 and $132,000 for fiscal year 2001 
  8.27  that the agency must achieve by 
  8.28  reducing the personal services budget 
  8.29  category expenditures from the amounts 
  8.30  specified in the governor's proposed 
  8.31  budget for those years. 
  8.32  $70,000 the first year and $70,000 the 
  8.33  second year are for grants to Minnesota 
  8.34  Inventors Congress. 
  8.35  $694,000 the first year and $556,000 
  8.36  the second year are for grants to 
  8.37  Minnesota Project Innovation.  
  8.38  Minnesota Project Innovation must open 
  8.39  and maintain an office in Northeastern 
  8.40  Minnesota. 
  8.41  $850,000 the first year and $850,000 
  8.42  the second year are for grants to the 
  8.43  Natural Resources Research Institute.  
  8.44  $103,000 the first year and $103,000 
  8.45  the second year are for grants to 
  8.46  Minnesota Council for Quality. 
  8.47  $100,000 the first year and $100,000 
  8.48  the second year are for grants to 
  8.49  Minnesota Cold Weather Research Center. 
  8.50  Sec. 4.  ECONOMIC SECURITY  
  8.51  Subdivision 1.  Total 
  8.52  Appropriation                         37,611,000     36,277,000
  8.53  The amounts that may be spent from this 
  8.54  appropriation for each program are 
  8.55  specified in subdivisions 2 to 5. 
  9.1   Subd. 2.  Rehabilitation Services
  9.2       20,827,000     21,113,000
  9.3   $1,750,000 the first year and 
  9.4   $1,750,000 the second year are for 
  9.5   centers for independent living. 
  9.6   $275,000 in fiscal year 2001 is to 
  9.7   increase the reimbursement rates for 
  9.8   extended employment services. 
  9.9   Subd. 3.  State Services for the Blind 
  9.10       6,114,000      4,817,000
  9.11  $1,400,000 the first year is 
  9.12  appropriated to convert the 
  9.13  communication center to digital 
  9.14  technology and move the radio talking 
  9.15  book program to a different frequency.  
  9.16  The funds are available only if matched 
  9.17  on at least a dollar-for-dollar basis 
  9.18  from private sources.  This is a 
  9.19  one-time appropriation and is available 
  9.20  until June 30, 2001. 
  9.21  Subd. 4.  Workforce Preparation 
  9.22      10,711,000     10,391,000
  9.23  $800,000 the first year and $800,000 
  9.24  the second year are for the Youthbuild 
  9.25  program under Minnesota Statutes, 
  9.26  sections 268.361 to 268.366.  Of this 
  9.27  amount, $100,000 in the first year and 
  9.28  $100,000 in the second year is for the 
  9.29  YOUTHBUILD technical program under 
  9.30  Minnesota Statutes, section 268.368.  A 
  9.31  Minnesota YOUTHBUILD program funded 
  9.32  under this section as authorized in 
  9.33  Minnesota Statutes, sections 268.361 to 
  9.34  268.367, qualifies as an approved 
  9.35  training program under Minnesota Rules, 
  9.36  part 5200.0930, subpart 1. 
  9.37  $116,000 the first year and $116,000 
  9.38  the second year are appropriated for 
  9.39  youth violence prevention programs to 
  9.40  match the federal juvenile 
  9.41  accountability incentive block grant.  
  9.42  This is a one-time appropriation. 
  9.43  $400,000 the first year is for a grant 
  9.44  to the center for victims of torture to 
  9.45  design and develop training to educate 
  9.46  health care and human services workers 
  9.47  on levels of sensitive care and how to 
  9.48  make referrals and to establish a 
  9.49  network of care providers to do pro 
  9.50  bono care for torture survivors so as 
  9.51  to enable a rapid integration into 
  9.52  communities and labor markets by 
  9.53  torture victims.  This is a one-time 
  9.54  appropriation requiring a one-to-one 
  9.55  nonstate, in-kind match, and is 
  9.56  available until expended.  
  9.57  Notwithstanding Minnesota Statutes, 
  9.58  section 268.022, subdivision 2, the 
  9.59  commissioner of finance shall transfer 
 10.1   to the general fund from the dedicated 
 10.2   fund on July 1, 1999, $29,000,000 of 
 10.3   the money collected through the special 
 10.4   assessment established in Minnesota 
 10.5   Statutes, section 268.022, subdivision 
 10.6   1. 
 10.7   The commissioner shall adjust 
 10.8   allocations of enterprise zone credits 
 10.9   under Minnesota Statutes, sections 
 10.10  469.305 to 469.31, to reflect 
 10.11  appropriation levels. 
 10.12  Subd. 5.  Workforce Exchange 
 10.13       2,398,625      2,050,000
 10.14  $348,625 the first year is for systems 
 10.15  development for electronic commerce to 
 10.16  improve communication with customers of 
 10.17  the job service and reemployment 
 10.18  insurance program.  In accordance with 
 10.19  Minnesota Statutes, section 268.194, 
 10.20  subdivision 5, this money is a one-time 
 10.21  appropriation from federal money made 
 10.22  available specifically for that purpose 
 10.23  under United States Code, title 42, 
 10.24  section 1103, also known as the "Reed 
 10.25  Act."  This appropriation is available 
 10.26  for the biennium ending June 30, 2001. 
 10.27  $2,000,000 the first year and 
 10.28  $2,000,000 the second year is for 
 10.29  systems development for electronic 
 10.30  commerce in the reemployment insurance 
 10.31  program to improve communication with 
 10.32  employers.  In accordance with 
 10.33  Minnesota Statutes, section 268.194, 
 10.34  subdivision 5, this money is a one-time 
 10.35  appropriation from federal money to be 
 10.36  made available specifically for that 
 10.37  purpose under United States Code, title 
 10.38  42, section 1103, also known as the 
 10.39  "Reed Act," and section 5403 of the 
 10.40  federal Balanced Budget Act of 1997.  
 10.41  Each annual appropriation is available 
 10.42  for the biennium ending June 30, 2001. 
 10.43  $50,000 the first year and $50,000 the 
 10.44  second year are for asset preservation 
 10.45  and facility repair. 
 10.46  The appropriation totals to the agency 
 10.47  for each year reflect a salary base 
 10.48  reduction of $91,000 for fiscal year 
 10.49  2000 and $94,000 for fiscal year 2001 
 10.50  that the agency must achieve by 
 10.51  reducing the personal services budget 
 10.52  category expenditures from the amounts 
 10.53  specified in the governor's proposed 
 10.54  budget for those years. 
 10.55  Sec. 5.  HOUSING FINANCE AGENCY       79,307,000     45,307,000
 10.56  Subdivision 1.  General
 10.57  The amounts that may be spent from this 
 10.58  appropriation for certain programs are 
 10.59  specified below. 
 10.60  This appropriation is for transfer to 
 11.1   the housing development fund for the 
 11.2   programs specified.  Except as 
 11.3   otherwise indicated, this transfer is 
 11.4   part of the agency's permanent budget 
 11.5   base. 
 11.6   Spending limit on cost of general 
 11.7   administration of agency programs:  
 11.8         2000           2001
 11.9       16,521,000     15,735,000
 11.10  Subd. 2.  Challenge Program
 11.11  $34,000,000 is appropriated for 
 11.12  transfer to the housing development 
 11.13  fund for the economic development and 
 11.14  housing challenge program created by 
 11.15  Minnesota Statutes, section 462A.32.  
 11.16  $4,000,000 of this appropriation is for 
 11.17  transfer to the metropolitan council 
 11.18  for deposit in the inclusionary housing 
 11.19  account created in Minnesota Statutes, 
 11.20  section 473.251.  The metropolitan 
 11.21  council may use this transfer only for 
 11.22  projects that are consistent with 
 11.23  Minnesota Statutes, section 462A.32. 
 11.24  Subd. 3.  Rental Assistance
 11.25  For Persons with Mental Illness
 11.26  $1,550,000 the first year and 
 11.27  $1,550,000 the second year are for a 
 11.28  rental housing assistance program for 
 11.29  persons with a mental illness or 
 11.30  families with an adult member with a 
 11.31  mental illness under Minnesota 
 11.32  Statutes, section 462A.2097. 
 11.33  Subd. 4.  Family Homeless Prevention
 11.34  $2,875,000 in each year is for the 
 11.35  family homeless prevention and 
 11.36  assistance program under Minnesota 
 11.37  Statutes, section 462A.204, and is 
 11.38  available until June 30, 2001.  
 11.39  $100,000 of this amount is for grants 
 11.40  to organizations providing case 
 11.41  management for persons that need 
 11.42  assistance to rehabilitate their rent 
 11.43  history and find rental housing.  Case 
 11.44  management services include, but are 
 11.45  not limited to, assisting tenants in 
 11.46  correcting tenant screening reports, 
 11.47  providing intensive training and 
 11.48  certification for tenants, creating a 
 11.49  bonding program to encourage landlords 
 11.50  to accept high-risk tenants with poor 
 11.51  rent histories, paying security 
 11.52  deposits for high-risk tenants, and 
 11.53  agreeing to pay landlord expenses for 
 11.54  filing unlawful detainer actions. 
 11.55  Subd. 5.  Mortgage Foreclosure
 11.56  Prevention
 11.57  $583,000 the first year and $583,000 
 11.58  the second year are for the mortgage 
 11.59  foreclosure prevention and assistance 
 11.60  program under Minnesota Statutes, 
 12.1   section 462A.207. 
 12.2   Subd. 6.  Rent Assistance For
 12.3   Family Stabilization
 12.4   $2,000,000 the first year and 
 12.5   $2,000,000 the second year are for the 
 12.6   rent assistance for family 
 12.7   stabilization program under Minnesota 
 12.8   Statutes, section 462A.205.  
 12.9   Subd. 7.  Housing Trust Fund
 12.10  $2,348,000 the first year and 
 12.11  $2,348,000 the second year are for the 
 12.12  housing trust fund to be deposited in 
 12.13  the housing trust fund account created 
 12.14  under Minnesota Statutes, section 
 12.15  462A.201, and used for the purposes 
 12.16  provided in that section.  Of this 
 12.17  amount, $550,000 each year must be used 
 12.18  for transitional housing. 
 12.19  Subd. 8.  Affordable Rental
 12.20  Assistance
 12.21  $20,993,000 the first year and 
 12.22  $21,493,000 the second year are for the 
 12.23  affordable rental investment fund 
 12.24  program under Minnesota Statutes, 
 12.25  section 462A.21, subdivision 8b.  Of 
 12.26  this amount, $15,000,000 the first year 
 12.27  and $15,000,000 the second year are to 
 12.28  finance the acquisition, 
 12.29  rehabilitation, and debt restructuring 
 12.30  of federally assisted rental property 
 12.31  and for making equity take-out loans 
 12.32  under Minnesota Statutes, section 
 12.33  462A.05, subdivision 39.  The owner of 
 12.34  the federally assisted rental property 
 12.35  must agree to participate in the 
 12.36  applicable federally assisted housing 
 12.37  program and to extend any existing 
 12.38  low-income affordability restrictions 
 12.39  on the housing for the maximum term 
 12.40  permitted.  The owner must also enter 
 12.41  into an agreement that gives local 
 12.42  units of government, housing and 
 12.43  redevelopment authorities, and 
 12.44  nonprofit housing organizations the 
 12.45  right of first refusal if the rental 
 12.46  property is offered for sale.  Priority 
 12.47  must be given among comparable 
 12.48  properties to properties with the 
 12.49  longest remaining term under an 
 12.50  agreement for federal rental 
 12.51  assistance.  Priority must also be 
 12.52  given among comparable rental housing 
 12.53  developments to developments that are 
 12.54  or will be owned by local government 
 12.55  units, a housing and redevelopment 
 12.56  authority, or a nonprofit housing 
 12.57  organization.  Of this appropriation, 
 12.58  $5,000,000 in each year is a one-time 
 12.59  appropriation and is not added to the 
 12.60  agency's permanent base.  
 12.61  To the extent practicable, this 
 12.62  appropriation shall be used so that an 
 12.63  approximately equal number of housing 
 12.64  units are financed in the metropolitan 
 13.1   area, as defined in Minnesota Statutes, 
 13.2   section 473.121, subdivision 2, and in 
 13.3   the nonmetropolitan area. 
 13.4   $500,000 of this appropriation in the 
 13.5   first year is for the school stability 
 13.6   project under Minnesota Statutes, 
 13.7   section 462A.204, subdivision 8. 
 13.8   Subd. 9.  Urban Indian Housing
 13.9   $187,000 the first year and $187,000 
 13.10  the second year are for the urban 
 13.11  Indian housing program under Minnesota 
 13.12  Statutes, section 462A.07, subdivision 
 13.13  15.  
 13.14  Subd. 10.  Tribal Indian Housing
 13.15  $1,683,000 the first year and 
 13.16  $1,683,000 the second year are for the 
 13.17  tribal Indian housing program under 
 13.18  Minnesota Statutes, section 462A.07, 
 13.19  subdivision 14.  
 13.20  Subd. 11.  Rural and Urban
 13.21  Homesteading
 13.22  $186,000 the first year and $186,000 
 13.23  the second year are for the Minnesota 
 13.24  rural and urban homesteading program 
 13.25  under Minnesota Statutes, section 
 13.26  462A.057.  
 13.27  Subd. 12.  Nonprofit Capacity
 13.28  Building
 13.29  $240,000 the first year and $240,000 
 13.30  the second year are for nonprofit 
 13.31  capacity building grants under 
 13.32  Minnesota Statutes, section 462A.21, 
 13.33  subdivision 3b.  
 13.34  Subd. 13.  Community Rehabilitation
 13.35  Program
 13.36  $5,150,000 the first year and 
 13.37  $5,150,000 the second year are for the 
 13.38  community rehabilitation program under 
 13.39  Minnesota Statutes, section 462A.206.  
 13.40  Of this appropriation, $250,000 the 
 13.41  first year and $250,000 the second year 
 13.42  are for full-cycle home ownership and 
 13.43  purchase-rehabilitation lending 
 13.44  initiatives.  Of this appropriation, 
 13.45  $100,000 is for a grant to the city of 
 13.46  Hilltop for a manufactured housing 
 13.47  pilot project.  Of this appropriation, 
 13.48  $70,000 the first year and $70,000 the 
 13.49  second year must be used to make grants 
 13.50  to a statewide organization that 
 13.51  advocates on behalf of persons with 
 13.52  mental retardation or related 
 13.53  conditions.  The grants must be used to 
 13.54  provide entry cost assistance, 
 13.55  prepurchase and postpurchase counseling 
 13.56  to persons with various disabilities 
 13.57  who are participating in the Fannie Mae 
 13.58  Homechoice demonstration project and 
 13.59  other projects designed to encourage 
 13.60  home ownership among persons with 
 14.1   disabilities.  Of this appropriation, 
 14.2   $60,000 in the first year and $60,000 
 14.3   in the second year are for services 
 14.4   authorized in Minnesota Statutes, 
 14.5   section 462A.07, to reduce health risk 
 14.6   related to HIV/AIDS disease for 
 14.7   individuals and communities.  The 
 14.8   commissioner of the Minnesota housing 
 14.9   finance agency shall report to the 
 14.10  legislature by February 1, 2000, on 
 14.11  housing opportunities and needs for 
 14.12  reducing health risks related to 
 14.13  HIV/AIDS for individuals or communities 
 14.14  in Minnesota, current and proposed 
 14.15  strategies for coordinating local, 
 14.16  state, and federal housing resources to 
 14.17  address identified opportunities and 
 14.18  needs, plans for future implementation, 
 14.19  and recommendations for future 
 14.20  legislative action.  The commissioner 
 14.21  shall consult with the commissioners of 
 14.22  health and human services and 
 14.23  representatives of affected populations 
 14.24  in preparing this report.  
 14.25  Subd. 14.  Housing Rehabilitation
 14.26  and Accessibility
 14.27  $4,287,000 the first year and 
 14.28  $4,287,000 the second year are for the 
 14.29  housing rehabilitation and 
 14.30  accessibility program under Minnesota 
 14.31  Statutes, section 462A.05, subdivisions 
 14.32  14a and 15a. 
 14.33  Subd. 15.  Home Ownership
 14.34  Assistance Fund
 14.35  $900,000 the first year and $900,000 
 14.36  the second year are for the home 
 14.37  ownership assistance fund under 
 14.38  Minnesota Statutes, section 462A.21, 
 14.39  subdivision 8.  
 14.40  Subd. 16.  Employer
 14.41  Matching Grants
 14.42  $800,000 in the first year and $800,000 
 14.43  in the second year are for the employer 
 14.44  matching grant program under Minnesota 
 14.45  Statutes, section 462A.2092.  
 14.46  Sec. 6.  COMMERCE 
 14.47  Subdivision 1.  Total 
 14.48  Appropriation                         18,799,000     17,216,000
 14.49                Summary by Fund
 14.50  General              17,117,000    15,587,000
 14.51  Petro Cleanup         1,015,000     1,045,000 
 14.52  Workers' Compensation   567,000       584,000
 14.53  Special Revenue         100,000          -0-  
 14.54  The amounts that may be spent from this 
 14.55  appropriation for each program are 
 14.56  specified in the following subdivisions.
 15.1   Subd. 2.  Financial Examinations 
 15.2        3,963,000      4,052,000
 15.3   Subd. 3.  Registration and Insurance 
 15.4        4,816,000      4,934,000
 15.5                 Summary by Fund
 15.6   General               4,249,000     4,350,000
 15.7   Special Revenue         100,000         -0-  
 15.8   Workers' Compensation   567,000       584,000 
 15.9   $100,000 the first year is from the 
 15.10  real estate education, research, and 
 15.11  recovery account for the purposes of an 
 15.12  educational campaign aimed at stopping 
 15.13  the fraudulent practice known commonly 
 15.14  as mortgage flipping.  The department 
 15.15  is directed to develop a public 
 15.16  awareness campaign targeted to the 
 15.17  communities hardest hit by this 
 15.18  practice.  The department is further 
 15.19  directed to solicit contributions to 
 15.20  this campaign from trade organizations, 
 15.21  banks, mortgage companies, and 
 15.22  foundations to supplement the program.  
 15.23  The materials shall be prepared in 
 15.24  multiple languages as necessary.  The 
 15.25  appropriation is available until 
 15.26  expended and any contributions received 
 15.27  are available for the educational 
 15.28  campaign described in this section.  If 
 15.29  the appropriation from the special 
 15.30  revenue fund for either year is 
 15.31  insufficient, the appropriation for the 
 15.32  other year is available for it. 
 15.33  Subd. 4.  Enforcement and Licensing
 15.34       4,355,000      4,296,000 
 15.35  Subd. 5.  Petroleum Tank Release 
 15.36  Cleanup Board 
 15.37       1,015,000      1,045,000
 15.38  This appropriation is from the 
 15.39  petroleum tank release cleanup fund. 
 15.40  Subd. 6.  Administrative Services 
 15.41       4,788,000      3,133,000 
 15.42  Of this amount, $90,000 may be used for 
 15.43  expanding website capabilities. 
 15.44  Subd. 7.  Reductions
 15.45  The appropriation totals to the agency 
 15.46  for each year reflect a salary base 
 15.47  reduction of $238,000 for fiscal year 
 15.48  2000 and $244,000 for fiscal year 2001 
 15.49  that the agency must achieve by 
 15.50  reducing the personal services budget 
 15.51  category expenditures from the amounts 
 15.52  specified in the governor's proposed 
 15.53  budget for those years. 
 16.1   Sec. 7.  BOARD OF ACCOUNTANCY            607,000        624,000
 16.2   Sec. 8.  BOARD OF ARCHITECTURE,
 16.3   ENGINEERING, LAND SURVEYING, 
 16.4   LANDSCAPE ARCHITECTURE, GEOSCIENCE, 
 16.5   AND INTERIOR DESIGN                      770,000        794,000 
 16.6   Sec. 9.  BOARD OF BARBER   
 16.7   EXAMINERS                                144,000        149,000
 16.8   Sec. 10.  BOARD OF BOXING                 84,000         87,000
 16.9   Sec. 11.  LABOR AND INDUSTRY 
 16.10  Subdivision 1.  Total             
 16.11  Appropriation                         23,763,000     24,100,000
 16.12                Summary by Fund
 16.13  General               3,656,000     6,370,000
 16.14  Workers'     
 16.15  Compensation         20,107,000    20,270,000
 16.16  The amounts that may be spent from this 
 16.17  appropriation for each program are 
 16.18  specified in the following subdivisions.
 16.19  Subd. 2.  Workers' Compensation
 16.20      10,586,000     10,833,000
 16.21  This appropriation is from the workers' 
 16.22  compensation fund. 
 16.23  Subd. 3.  Workplace Services 
 16.24       6,711,000      6,980,000
 16.25                Summary by Fund
 16.26  General               2,672,000     2,844,000
 16.27  Workers'
 16.28  Compensation          4,039,000     4,136,000
 16.29  Subd. 4.  General Support 
 16.30       6,546,000      6,370,000
 16.31                Summary by Fund
 16.32  General               1,064,000     1,069,000
 16.33  Workers'     
 16.34  Compensation          5,482,000     5,301,000
 16.35  Subd. 5.  Reductions
 16.36  The appropriation totals to the agency 
 16.37  for each year reflect a salary base 
 16.38  reduction of $80,000 for fiscal year 
 16.39  2000 and $83,000 for fiscal year 2001 
 16.40  that the agency must achieve by 
 16.41  reducing the personal services budget 
 16.42  category expenditures from the amounts 
 16.43  specified in the governor's proposed 
 16.44  budget for those years. 
 16.45  Sec. 12.  BUREAU OF MEDIATION SERVICES 
 17.1   Subdivision 1.  Total
 17.2   Appropriation                          2,093,000      2,142,000
 17.3   The amounts that may be spent from this 
 17.4   appropriation for each program are 
 17.5   specified in the following subdivisions.
 17.6   Subd. 2.  Mediation Services 
 17.7        1,712,000      1,759,000
 17.8   Subd. 3.  Labor Management Cooperation Grants
 17.9          302,000        302,000
 17.10  $302,000 each year is for grants to 
 17.11  area labor-management committees.  Any 
 17.12  unencumbered balance remaining at the 
 17.13  end of the first year does not cancel 
 17.14  but is available for the second year. 
 17.15  Subd. 4.  Office of Dispute Resolution
 17.16         116,000        119,000
 17.17  Subd. 5.  Reductions
 17.18  The appropriation totals to the agency 
 17.19  for each year reflect a salary base 
 17.20  reduction of $37,000 for fiscal year 
 17.21  2000 and $38,000 for fiscal year 2001 
 17.22  that the agency must achieve by 
 17.23  reducing the personal services budget 
 17.24  category expenditures from the amounts 
 17.25  specified in the governor's proposed 
 17.26  budget for those years. 
 17.27  Sec. 13.  WORKERS' COMPENSATION
 17.28  COURT OF APPEALS                       1,543,000      1,585,000
 17.29  This appropriation is from the workers' 
 17.30  compensation fund. 
 17.31  Sec. 14.  LABOR INTERPRETIVE 
 17.32  CENTER                                   220,000        227,000
 17.33  Sec. 15.  PUBLIC UTILITIES  
 17.34  COMMISSION                             3,781,000      3,880,000
 17.35  Sec. 16.  DEPARTMENT OF PUBLIC SERVICE 
 17.36  Subdivision 1.  Total       
 17.37  Appropriation                          9,587,000      9,797,000
 17.38  The amounts that may be spent from this 
 17.39  appropriation for each program are 
 17.40  specified in the following subdivisions.
 17.41  Subd. 2.  Telecommunications
 17.42         962,000        980,000
 17.43  Subd. 3.  Weights and Measures 
 17.44       3,138,000      3,207,000
 17.45  Subd. 4.  Information and Operations 
 17.46  Management 
 17.47       1,584,000      1,627,000
 18.1   Subd. 5.  Energy 
 18.2        3,920,000      4,000,000
 18.3   $588,000 each year is for transfer to 
 18.4   the energy and conservation account 
 18.5   established in Minnesota Statutes, 
 18.6   section 216B.241, subdivision 2a, for 
 18.7   programs administered by the 
 18.8   commissioner of children, families, and 
 18.9   learning to improve the energy 
 18.10  efficiency of residential oil-fired 
 18.11  heating plants in low-income households 
 18.12  and, when necessary, to provide 
 18.13  weatherization services to the homes. 
 18.14  Subd. 6.  Reductions
 18.15  The appropriation totals to the agency 
 18.16  for each year reflect a salary base 
 18.17  reduction of $17,000 for fiscal year 
 18.18  2000 and $17,000 for fiscal year 2001 
 18.19  that the agency must achieve by 
 18.20  reducing the personal services budget 
 18.21  category expenditures from the amounts 
 18.22  specified in the governor's proposed 
 18.23  budget for those years. 
 18.24  Sec. 17.  MINNESOTA HISTORICAL 
 18.25  SOCIETY 
 18.26  Subdivision 1.  Total       
 18.27  Appropriation                         24,894,000     24,996,000
 18.28  The amounts that may be spent from this 
 18.29  appropriation for each program are 
 18.30  specified in the following subdivisions.
 18.31  Subd. 2.  Education and     
 18.32  Outreach                              12,669,000     12,812,000
 18.33  $80,000 in the first year is for the 
 18.34  Northwest Fur Company Post. 
 18.35  Subd. 3.  Preservation and Access
 18.36       9,318,000      9,479,000
 18.37  $25,000 the first year and $25,000 the 
 18.38  second year are for historic site 
 18.39  repair and maintenance.  
 18.40  Subd. 4.  Information Program 
 18.41  Delivery 
 18.42       2,488,000      2,544,000
 18.43  $347,000 the first year and $389,000 
 18.44  the second year are for technology 
 18.45  improvements that will expand core 
 18.46  capacity and improve service and 
 18.47  program delivery.  If the appropriation 
 18.48  for either year is insufficient, the 
 18.49  appropriation for the other year is 
 18.50  available.  
 18.51  Subd. 5.  Fiscal Agent                   721,000        473,000
 18.52  (a) Sibley House Association
 18.53          88,000         88,000 
 19.1   (b) Minnesota International Center 
 19.2           50,000         50,000
 19.3   (c) Minnesota Air National   
 19.4   Guard Museum 
 19.5           19,000 
 19.6   (d) Institute for Learning and
 19.7   Teaching - Project 120
 19.8          110,000        110,000 
 19.9   (e) Minnesota Military Museum
 19.10          29,000        
 19.11  (f) Farmamerica
 19.12         150,000        150,000 
 19.13  Notwithstanding any other law, this 
 19.14  appropriation may be used for 
 19.15  operations. 
 19.16  (g) Citizenship Programs
 19.17          75,000         75,000
 19.18  For a grant to the Minnesota center for 
 19.19  community legal education for 
 19.20  citizenship programs in Minnesota 
 19.21  schools.  Of this amount, (1) $30,000 
 19.22  is for Project Citizen, a program to 
 19.23  educate middle school students to 
 19.24  identify, study, and influence 
 19.25  decisions on public policy issues, (2) 
 19.26  $25,000 is for We the People, a program 
 19.27  to promote civic awareness and 
 19.28  responsibility among elementary and 
 19.29  secondary students, and (3) $20,000 is 
 19.30  for the Minnesota youth summit on 
 19.31  violence prevention, a program to build 
 19.32  citizenship skills among middle and 
 19.33  high school students by engaging them 
 19.34  in the lawmaking process. 
 19.35  (h) Historic Building Relocation
 19.36          100,000                  
 19.37  $100,000 is for a grant to the city of 
 19.38  Maplewood to pay up to 75 percent of 
 19.39  the costs of acquiring land, developing 
 19.40  a site, relocating certain buildings 
 19.41  onto the site, and renovating the 
 19.42  buildings.  The buildings to be 
 19.43  acquired, relocated, and renovated are 
 19.44  the home, barn, granary, and windmill 
 19.45  on the Bruentrup farm site, the last 
 19.46  working farm in Ramsey county.  The 
 19.47  grant must not be made until the 
 19.48  director of the Minnesota historical 
 19.49  society has determined that the 
 19.50  necessary additional financing to 
 19.51  complete the project has been committed 
 19.52  by nonstate sources.  The appropriation 
 19.53  is available the day following final 
 19.54  enactment and until June 30, 2000.  
 20.1   (i) Fishing Museum
 20.2             50,000                 
 20.3   $50,000 is for a grant to the city of 
 20.4   Little Falls for planning in connection 
 20.5   with the establishment of a museum of 
 20.6   fishing-related artifacts, equipment, 
 20.7   and memorabilia and an environmental 
 20.8   education center.  This appropriation 
 20.9   is available until spent.  This is a 
 20.10  one-time appropriation and is not added 
 20.11  to the agency's base. 
 20.12  (j) $50,000 is to refurbish the Fridley 
 20.13  historical museum in Fridley.  This is 
 20.14  a one-time appropriation and is not 
 20.15  added to the agency's budget base. 
 20.16  (k) Balances Forward
 20.17  Any unencumbered balance remaining in 
 20.18  this subdivision the first year does 
 20.19  not cancel but is available for the 
 20.20  second year of the biennium. 
 20.21  Subd. 6.  Reductions
 20.22  The appropriation totals to the agency 
 20.23  for each year reflect a salary base 
 20.24  reduction of $302,000 for fiscal year 
 20.25  2000 and $312,000 for fiscal year 2001 
 20.26  that the agency must achieve by 
 20.27  reducing the personal services budget 
 20.28  category expenditures from the amounts 
 20.29  specified in the governor's proposed 
 20.30  budget for those years. 
 20.31  Sec. 18.  MINNESOTA MUNICIPAL
 20.32  BOARD                                    162,000           -0- 
 20.33  Sec. 19.  COUNCIL ON BLACK
 20.34  MINNESOTANS                              320,000        329,000
 20.35  $25,000 each year is for expenses 
 20.36  associated with the Dr. Martin Luther 
 20.37  King Day activities. 
 20.38  Sec. 20.  COUNCIL ON 
 20.39  CHICANO-LATINO AFFAIRS                   314,000        324,000
 20.40  Sec. 21.  COUNCIL ON
 20.41  ASIAN-PACIFIC MINNESOTANS                377,000        286,000
 20.42  Of the amount appropriated in the first 
 20.43  year, $100,000 is for a grant to the 
 20.44  nonprofit Asian-Pacific Community 
 20.45  Center to plan and predesign an 
 20.46  Asian-Pacific Community Center to be 
 20.47  located in the city of St. Paul.  The 
 20.48  design and plan must provide for a 
 20.49  bilingual workforce center system 
 20.50  affiliate site.  The role of an 
 20.51  affiliate site is to ensure access 
 20.52  either electronically or in person to 
 20.53  the full range of services normally 
 20.54  associated with a workforce center.  
 20.55  Each dollar of the appropriation must 
 20.56  be matched by 60 cents of nonstate 
 20.57  money.  The appropriation does not 
 20.58  cancel. 
 21.1   Sec. 22.  INDIAN AFFAIRS
 21.2   COUNCIL                                  551,000        567,000
 21.3   Sec. 23.  MINNESOTA STATE COLLEGES 
 21.4   AND UNIVERSITIES                         180,000           -0- 
 21.5   $180,000 is appropriated in fiscal year 
 21.6   2000 from the general fund to the board 
 21.7   of trustees of the Minnesota state 
 21.8   colleges and universities to provide 
 21.9   start-up funds for a virtual reality 
 21.10  center at Pine technical college.  This 
 21.11  appropriation is available only upon an 
 21.12  equal match in cash by the board of 
 21.13  trustees. 
 21.14  Sec. 24.  OFFICE OF STRATEGIC AND
 21.15  LONG-RANGE PLANNING                      161,000        327,000 
 21.16  To assume administrative 
 21.17  responsibilities resulting from the 
 21.18  sunset of the municipal board under 
 21.19  Laws 1997, chapter 202, article 5, 
 21.20  section 8. 
 21.21     Sec. 25.  [MINNESOTA MINERALS 21ST CENTURY FUND; FUTURE 
 21.22  FUNDING.] 
 21.23     It is the intent of the legislature and the commissioner of 
 21.24  trade and economic development to monitor the balance of the 
 21.25  Minnesota minerals 21st century fund and provide additional 
 21.26  funding in fiscal year 2001 and other future fiscal years as 
 21.27  necessary to carry out the purposes of the fund. 
 21.28     Sec. 26.  [TRANSFERS.] 
 21.29     All of the rights and obligations of the Minnesota World 
 21.30  Trade Center Corporation under the development agreement and all 
 21.31  existing contracts related to the approximately 20,000 square 
 21.32  feet to which the World Trade Center Corporation is a party or 
 21.33  beneficiary is transferred to the state of Minnesota, department 
 21.34  of trade and economic development, Minnesota trade office.  All 
 21.35  other property of the World Trade Center Corporation is 
 21.36  transferred and appropriated to the commissioner under Minnesota 
 21.37  Statutes, section 15.039. 
 21.38     Sec. 27.  [TRANSFER.] 
 21.39     The unobligated balance as of July 1, 1999, of the amount 
 21.40  appropriated to the department of trade and economic development 
 21.41  for a grant to the Minnesota World Trade Center Corporation in 
 21.42  Laws 1992, chapter 513, article 4, section 17, subdivision 2, to 
 21.43  establish an annual medical exposition, trade fair, and health 
 22.1   care congress is transferred to the world trade center account 
 22.2   in the special revenue fund in the state treasury. 
 22.3      Sec. 28.  [DIRECT REDUCTION IRON PROCESSING FACILITIES 
 22.4   APPROPRIATION TRANSFER.] 
 22.5      The appropriation of $10,000,000 made to the commissioner 
 22.6   of trade and economic development for direct reduction iron 
 22.7   processing facilities by Laws 1998, chapter 404, section 23, 
 22.8   subdivision 3, is transferred and appropriated to the Minnesota 
 22.9   minerals 21st century fund created by Minnesota Statutes, 
 22.10  section 116J.423. 
 22.11     Sec. 29.  [UPPER RED LAKE BUSINESS LOAN PROGRAM.] 
 22.12     The commissioner of trade and economic development must 
 22.13  make loans to businesses in the Upper Red Lake area that have 
 22.14  been severely affected by the significant decline of the walleye 
 22.15  fishing resource in Upper Red Lake.  The loans may only be made 
 22.16  to businesses that operated in 1998.  A business must submit an 
 22.17  application to the commissioner on forms provided by the 
 22.18  commissioner.  The application must include a business plan for 
 22.19  continued operation, with the assistance of the loan, until the 
 22.20  walleye fishing resource recovers.  The commissioner shall 
 22.21  allocate available loan funds to a business based on the 
 22.22  commissioner's evaluation of the probable success of its 
 22.23  business plan.  A loan shall be for a maximum amount of $75,000 
 22.24  and a duration of ten years from the date of the loan and shall 
 22.25  be interest free.  Repayment of a loan in monthly payments of 
 22.26  1/120 of the original principal amount must begin no later than 
 22.27  one year after walleye fishing on Upper Red Lake is allowed by 
 22.28  the department of natural resources.  Any principal balance 
 22.29  remaining at the end of the ten-year period shall be forgiven if 
 22.30  the business continues in operation for the ten-year period.  
 22.31  Loan repayments shall be deposited in the general fund. 
 22.32     Sec. 30.  [CITY OF DULUTH; REFUNDING BONDS; DULUTH 
 22.33  ENTERTAINMENT AND CONVENTION CENTER AUTHORITY.] 
 22.34     The Duluth city council may by ordinance provide for the 
 22.35  issuance and sale of general obligation revenue refunding bonds 
 22.36  to refund in advance of their maturity, the city's gross revenue 
 23.1   recreation facility bonds (Duluth Entertainment Convention 
 23.2   Center/Imax Dome Theater Project) series 1994, dated as of 
 23.3   December 1, 1994.  These refunding bonds must be issued with the 
 23.4   full faith and credit of the city.  The Duluth entertainment and 
 23.5   convention center authority shall pledge the net revenues of the 
 23.6   authority's facilities for payment of principal and interest on 
 23.7   these refunding bonds.  The issuance of the refunding bonds is 
 23.8   subject to the provisions of Minnesota Statutes, chapter 475, 
 23.9   except that no election is required unless a referendum on the 
 23.10  ordinance is required under section 92 of the Duluth city 
 23.11  charter, and except that the refunding bonds must not be 
 23.12  included in computing the city's net debt. 
 23.13     Sec. 31.  [LONG PRAIRIE; HOTEL REICHERT.] 
 23.14     If the Long Prairie housing and redevelopment authority 
 23.15  issues bonds under Minnesota Statutes, section 469.034, 
 23.16  subdivision 2, to provide funds to renovate the Hotel Reichert 
 23.17  building on the National Register of Historic Places for a 
 23.18  qualified housing development project, the project is not 
 23.19  required to be owned by the authority for the term of the bonds. 
 23.20  The bonds are subject to all other requirements of section 
 23.21  469.034, subdivision 2. 
 23.22     Sec. 32.  [PIPESTONE INDIAN SCHOOL AUTHORIZATION.] 
 23.23     Notwithstanding Minnesota Statutes, section 16A.695, the 
 23.24  board of trustees of the Minnesota state colleges and 
 23.25  universities may convey by quitclaim deed, at no cost, the 
 23.26  state's interest in the historic Pipestone Indian school 
 23.27  superintendent's house and gymnasium at the Pipestone campus of 
 23.28  Minnesota West community and technical college.  The conveyance 
 23.29  shall be in a form approved by the attorney general. 
 23.30     The deed must reserve to the state all minerals and mineral 
 23.31  rights and provide that the property shall revert to the state 
 23.32  if the grantee: 
 23.33     (1) fails to provide the use intended on the property; 
 23.34     (2) allows a public use other than the use agreed to by the 
 23.35  board without the written approval of the board; or 
 23.36     (3) abandons the use of the property. 
 24.1      Sec. 33.  [PASS THROUGH GRANT EVALUATION PROCESS.] 
 24.2      This act makes various appropriations that are commonly 
 24.3   referred to as pass through appropriations.  The commissioner of 
 24.4   trade and economic development shall evaluate the following 
 24.5   entities to determine if their programs are an effective part of 
 24.6   a statewide strategy for economic development or serve some 
 24.7   other purpose.  The commissioner shall report the results of the 
 24.8   evaluation to the legislative finance divisions or committees 
 24.9   having jurisdiction over the appropriations in this act.  The 
 24.10  entities to be evaluated are: 
 24.11     (1) Advantage Minnesota, Inc.; 
 24.12     (2) Rural policy and development center; 
 24.13     (3) metropolitan economic development association; 
 24.14     (4) WomenVenture; 
 24.15     (5) Minnesota Inventor's Congress; 
 24.16     (6) Minnesota Project Innovation; 
 24.17     (7) Natural Resources Research Institute; 
 24.18     (8) Minnesota Council for Quality; 
 24.19     (9) Minnesota Cold Weather Research Center; 
 24.20     (10) Center for Victims of Torture; 
 24.21     (11) St. Paul Rehabilitation Center; 
 24.22     (12) Microenterprise Assistance; 
 24.23     (13) NeighborLink Community Program; and 
 24.24     (14) Neighborhood Development Corporation. 
 24.25     Sec. 34.  [GRANT COUNTY.] 
 24.26     A grant by the commissioner of trade and economic 
 24.27  development to Grant county for community infrastructure 
 24.28  improvements needed to develop value-added agriprocessing 
 24.29  facilities is not subject to the maximum grant limitation of 
 24.30  Minnesota Statutes, section 116J.8731, subdivision 5, or agency 
 24.31  policy regarding maximum grant per job created. 
 24.32     Sec. 35.  [LOW-INCOME ENERGY TASK FORCE.] 
 24.33     The management analysis division of the department of 
 24.34  administration, in consultation with the appropriate 
 24.35  commissioners, shall report to the legislature by January 15, 
 24.36  2000, on the future of low-income energy assistance.  The report 
 25.1   shall be developed with the input of appropriate consumer 
 25.2   advocates, energy providers of various fuel types, energy 
 25.3   assistance delivery organizations and other interested parties. 
 25.4      The report shall analyze and make recommendations in the 
 25.5   following areas: 
 25.6      (1) improvements necessary in the administration of 
 25.7   low-income energy assistance programs to develop a uniform 
 25.8   statewide assistance network, including outreach efforts, 
 25.9   eligibility determination, and areas for technological 
 25.10  improvements; 
 25.11     (2) development of an accurate and consistent method to 
 25.12  determine the number of Minnesotans who should be eligible for 
 25.13  energy assistance and the level of assistance which should be 
 25.14  provided; and 
 25.15     (3) analyze funding level and revenue options for 
 25.16  low-income energy assistance programs consistent with 
 25.17  competitive electric and gas energy markets. 
 25.18     Sec. 36.  [MANUFACTURED HOUSING PILOT PROJECT.] 
 25.19     Subdivision 1.  [PILOT PROJECT ESTABLISHED.] (a) The city 
 25.20  of Hilltop may establish a pilot project for the purpose of 
 25.21  planning, designing, and implementing a neighborhood 
 25.22  redevelopment project in the Central Avenue corridor in 
 25.23  Hilltop.  The neighborhood redevelopment project must use 
 25.24  manufactured housing as a means of providing safe, attractive, 
 25.25  affordable housing for people with incomes at or below 80 
 25.26  percent of the metropolitan area median income.  
 25.27     (b) Implementation costs may include, but are not limited 
 25.28  to:  relocation costs for displaced residents of the project 
 25.29  area in the same amount as provided in Minnesota Statutes, 
 25.30  section 327C.095; site preparation costs; set-up and 
 25.31  installation costs for new manufactured housing units; and 
 25.32  roadway improvements.  
 25.33     (c) The city of Hilltop must file a plan with the housing 
 25.34  finance agency for the sale of finished units in the redeveloped 
 25.35  project area.  The plan must take into account the housing needs 
 25.36  of potential buyers in descending order of priority:  residents 
 26.1   of the project area before the redevelopment project; current 
 26.2   Hilltop residents; current Columbia Heights residents; and all 
 26.3   other potential buyers. 
 26.4      Subd. 2.  [REPORT.] (a) The housing finance agency must 
 26.5   report to the legislature on the pilot project.  The report must 
 26.6   include:  information on site preparation procedures; the 
 26.7   project layout and plans; costs; administrative and contracting 
 26.8   processes used and an evaluation of the processes; and results 
 26.9   of the pilot project.  The housing finance agency must make the 
 26.10  report available to local communities, the federal government, 
 26.11  and other interested persons. 
 26.12     (b) The city of Hilltop must cooperate in creating the 
 26.13  pilot project report and must provide all information requested 
 26.14  by the housing finance agency.  
 26.15     (c) Private contractors hired for the pilot project must 
 26.16  agree to:  (1) make public the design and layout plans they 
 26.17  create for the project; and (2) contribute relevant information 
 26.18  on processes followed and costs incurred to the housing finance 
 26.19  agency for use in the report. 
 26.20     Sec. 37.  [INDUSTRIAL HEMP STUDY.] 
 26.21     The commissioner of trade and economic development shall 
 26.22  study the economic impact of permitting the growth of industrial 
 26.23  hemp in Minnesota.  The commissioner shall report the results of 
 26.24  the study to the legislature by January 15, 2000. 
 26.25     Sec. 38.  [REPORT.] 
 26.26     The commissioner of trade and economic development shall 
 26.27  submit a report to the legislature reviewing business 
 26.28  regulations contained in Minnesota Statutes and Minnesota Rules 
 26.29  that have a positive or negative impact on the business climate 
 26.30  in Minnesota.  The commissioner shall submit the report to the 
 26.31  legislature under Minnesota Statutes, section 3.195, by February 
 26.32  15, 2000.  
 26.33     Sec. 39.  [AUTHORIZATION; AIRPORT IMPACT ZONES.] 
 26.34     Subdivision 1.  [CITY OF RICHFIELD; DESIGNATION.] There is 
 26.35  hereby established within the city of Richfield an airport 
 26.36  impact zone consisting of the real property described as 
 27.1   follows: commencing at the intersection of the north city limits 
 27.2   with the w'ly ROW line of trunk highway 77, thence south along 
 27.3   the w'ly ROW line of trunk highway 77 to the n'ly ROW line of 
 27.4   interstate highway 494, thence west along the n'ly ROW line of 
 27.5   Interstate Highway 494 to the center line of Bloomington Avenue, 
 27.6   thence north on the center line of Bloomington Avenue to the 
 27.7   n'ly ROW line of East 77th Street to a point 133.2 feet east of 
 27.8   the e'ly ROW line of Bloomington Avenue, thence north on a line 
 27.9   parallel with and 133.2 feet east of the e'ly ROW line of 
 27.10  Bloomington Avenue to the north city limits, thence east along 
 27.11  the north city limits to the point of beginning. 
 27.12     Subd. 2.  [CITIES OF BLOOMINGTON, MINNEAPOLIS, AND EAGAN; 
 27.13  DESIGNATION; CRITERIA.] (a) Each of the cities of Bloomington, 
 27.14  Minneapolis, and Eagan may designate one or more airport impact 
 27.15  zones within their respective boundaries.  An airport impact 
 27.16  zone is a discrete geographic area that meets criteria for such 
 27.17  a zone established by the metropolitan council.  The criteria 
 27.18  established by the metropolitan council for an airport impact 
 27.19  zone must be based upon airport impacts found by the council 
 27.20  after study and consultation with the cities of Bloomington, 
 27.21  Minneapolis, Eagan, and Richfield and the metropolitan airports 
 27.22  commission. 
 27.23     (b) A city wishing to establish an airport impact zone must 
 27.24  prepare and submit to the metropolitan council for approval a 
 27.25  plan identifying the geographic boundaries of the proposed zone 
 27.26  and the airport mitigation measures to be undertaken in the 
 27.27  zone.  The metropolitan council shall certify the dollar amount 
 27.28  necessary to mitigate the airport impacts in these communities. 
 27.29     Subd. 3.  [AIRPORT IMPACTS DEFINED.] The legislature finds 
 27.30  that: 
 27.31     (1) the area included within the airport impact zones 
 27.32  defined under this section will experience significant adverse 
 27.33  environmental and socioeconomic impacts associated with the 
 27.34  operation of the Minneapolis-St. Paul International Airport; 
 27.35     (2) whether funded directly by the metropolitan airports 
 27.36  commission or by other means, expenditures for mitigation of 
 28.1   those airport-created impacts involve an aspect of the airport's 
 28.2   capital and operating expenses and will be made for airport 
 28.3   purposes; and 
 28.4      (3) appropriate measures to mitigate those adverse impacts 
 28.5   include, but are not limited to, housing replacement activities. 
 28.6      Sec. 40.  [BONDS; SECURITY.] 
 28.7      Subdivision 1.  [RICHFIELD.] The city of Richfield may 
 28.8   issue and sell its obligations in an aggregate principal amount 
 28.9   in the amount certified by the metropolitan council.  In no 
 28.10  event shall the amount exceed $60,000,000.  This amount shall be 
 28.11  used to finance the costs of land and structure acquisition, 
 28.12  demolition, relocation and site clearance, and public 
 28.13  improvements within the airport impact tax zone established 
 28.14  under subdivision 1, including, without limitation, the 
 28.15  following housing replacement activities anywhere within the 
 28.16  city:  rehabilitation, acquisition, demolition, relocation 
 28.17  assistance, and relocation of existing single-family or 
 28.18  multifamily housing, and financing of new or existing 
 28.19  single-family or multifamily housing that replaces housing units 
 28.20  eliminated by redevelopment within the airport impact zone. 
 28.21     Subd. 2.  [BLOOMINGTON, MINNEAPOLIS, AND EAGAN.] Each of 
 28.22  the cities of Bloomington, Minneapolis, and Eagan may issue and 
 28.23  sell its obligations in an aggregate principal amount approved 
 28.24  by the metropolitan council to finance the cost of airport 
 28.25  mitigation measures approved by the metropolitan council and 
 28.26  undertaken within an airport impact zone, provided that the 
 28.27  aggregate principal amount of bonds approved for each shall not 
 28.28  exceed $60,000,000.  These amounts shall be used in the manner 
 28.29  enumerated in subdivision 1. 
 28.30     Subd. 3.  [TERMS.] The obligations must be secured by the 
 28.31  revenues and pledges from the metropolitan airports commission 
 28.32  in accordance with subdivision 4 hereof, and must be issued in 
 28.33  accordance with chapter 475, provided that no election is 
 28.34  required, net debt limits do not apply, and the obligations must 
 28.35  mature no later than 35 years from the date of issue of the 
 28.36  original obligations.  A city may issue obligations to refund 
 29.1   any obligations issued under this section, the principal amount 
 29.2   of which shall not be included in computing the limits on amount 
 29.3   of obligations issuable by the city under this section. 
 29.4      Subd. 4.  [SECURITY; METROPOLITAN AIRPORTS COMMISSION 
 29.5   PAYMENTS.] (a) Notwithstanding anything to the contrary in 
 29.6   Minnesota Statutes, sections 473.601 to 473.679, on or before 
 29.7   the due date of each principal and interest payment on 
 29.8   obligations issued by the cities of Bloomington, Minneapolis, 
 29.9   Eagan, or Richfield under this section, the treasurer of the 
 29.10  metropolitan airports commission shall remit from any available 
 29.11  funds to the trustee or paying agent for the obligations an 
 29.12  amount sufficient for such payment, without further order from 
 29.13  the commission.  The metropolitan airports commission shall be 
 29.14  obligated to the cities of Bloomington, Minneapolis, Eagan, and 
 29.15  Richfield, and to the holders of obligations issued by the city 
 29.16  under this section, to establish, revise from time to time, and 
 29.17  collect concession, parking, and rentals for all airport and air 
 29.18  navigation facilities and service used by and made available to 
 29.19  concession, parking, or rental firm association, or corporation 
 29.20  according to schedules such as to produce revenues at all times 
 29.21  sufficient to pay 105 percent of principal and interest on all 
 29.22  obligations issued by the city under this section or other 
 29.23  revenue not restricted by federal law or regulation.  The pledge 
 29.24  of revenues by the metropolitan airports commission under this 
 29.25  section to obligations issued by any city under this act is a 
 29.26  parity lien with the pledge of the revenues to obligations 
 29.27  issued by any other city under this act. 
 29.28     (b) Notwithstanding anything to the contrary in Minnesota 
 29.29  Statutes, sections 473.601 to 473.679, any obligations issued by 
 29.30  any city under this section shall be further secured by the 
 29.31  pledge of the full faith and credit of the metropolitan airports 
 29.32  commission, which shall be obligated to levy upon all taxable 
 29.33  property within the metropolitan area a tax at such times and in 
 29.34  such amounts, if any, as may be required to provide funds 
 29.35  sufficient to pay all the obligations and interest thereon in 
 29.36  the event revenues pledged under subdivision 4, paragraph (a), 
 30.1   are insufficient for such purpose.  This tax, if ever required 
 30.2   to be levied, shall not be subject to any limitation of rate or 
 30.3   amount. 
 30.4      Subd. 5.  [OBLIGATION DEFINED.] In this act, "obligation" 
 30.5   has the meaning given it in Minnesota Statutes, section 475.51, 
 30.6   subdivision 3.  The term includes obligations issued to refund 
 30.7   prior obligations issued under this act. 
 30.8      Sec. 41.  [COMPLIANCE WITH FEDERAL LAW.] 
 30.9      None of the foregoing shall require the metropolitan 
 30.10  airports commission to violate federal law or regulation, 
 30.11  including the Federal Aviation Administration revenue diversion 
 30.12  policy. 
 30.13     Sec. 42.  Minnesota Statutes 1998, section 45.0295, is 
 30.14  amended to read: 
 30.15     45.0295 [FEES.] 
 30.16     (a) The following fees shall be paid to the commissioner: 
 30.17     (1) for a letter of certification of licensure, $20; 
 30.18     (2) for a license history, $20; 
 30.19     (3) for a duplicate license, $10; 
 30.20     (4) for a change of name or address, $10; 
 30.21     (5) for a temporary license, $10; 
 30.22     (6) for each hour or fraction of one hour of course 
 30.23  approval for continuing education sought, $10; and 
 30.24     (7) (2) for each continuing education course coordinator 
 30.25  approval, $100. 
 30.26     (b) All fees paid to the commissioner under this section 
 30.27  are nonrefundable, except that an overpayment of a fee shall be 
 30.28  returned upon proper application. 
 30.29     Sec. 43.  Minnesota Statutes 1998, section 53A.05, 
 30.30  subdivision 1, is amended to read: 
 30.31     Subdivision 1.  [NAME OR LOCATION.] If a licensee proposes 
 30.32  to change the name or location of any or all of its currency 
 30.33  exchanges, the licensee shall file an application for approval 
 30.34  of the change with the commissioner.  The commissioner shall not 
 30.35  approve a change of location if the requirements of sections 
 30.36  53A.02, subdivision 2, and 53A.04 have not been satisfied.  If 
 31.1   the change is approved by the commissioner, the commissioner 
 31.2   shall issue an amended license in the licensee's new name or 
 31.3   location.  A $50 $100 fee must be paid for the amended license. 
 31.4      Sec. 44.  Minnesota Statutes 1998, section 60A.14, 
 31.5   subdivision 1, is amended to read: 
 31.6      Subdivision 1.  [FEES OTHER THAN EXAMINATION FEES.] In 
 31.7   addition to the fees and charges provided for examinations, the 
 31.8   following fees must be paid to the commissioner for deposit in 
 31.9   the general fund: 
 31.10     (a) by township mutual fire insurance companies: 
 31.11     (1) for filing certificate of incorporation $25 and 
 31.12  amendments thereto, $10; 
 31.13     (2) for filing annual statements, $15; 
 31.14     (3) for each annual certificate of authority, $15; 
 31.15     (4) for filing bylaws $25 and amendments thereto, $10. 
 31.16     (b) by other domestic and foreign companies including 
 31.17  fraternals and reciprocal exchanges: 
 31.18     (1) for filing certified copy of certificate of articles of 
 31.19  incorporation, $100; 
 31.20     (2) for filing annual statement, $225; 
 31.21     (3) for filing certified copy of amendment to certificate 
 31.22  or articles of incorporation, $100; 
 31.23     (4) for filing bylaws, $75 or amendments thereto, $75; 
 31.24     (5) for each company's certificate of authority, $575, 
 31.25  annually. 
 31.26     (c) the following general fees apply: 
 31.27     (1) for each certificate, including certified copy of 
 31.28  certificate of authority, renewal, valuation of life policies, 
 31.29  corporate condition or qualification, $25; 
 31.30     (2) for each copy of paper on file in the commissioner's 
 31.31  office 50 cents per page, and $2.50 for certifying the same; 
 31.32     (3) for license to procure insurance in unadmitted foreign 
 31.33  companies, $575; 
 31.34     (4) for valuing the policies of life insurance companies, 
 31.35  one cent per $1,000 of insurance so valued, provided that the 
 31.36  fee shall not exceed $13,000 per year for any company.  The 
 32.1   commissioner may, in lieu of a valuation of the policies of any 
 32.2   foreign life insurance company admitted, or applying for 
 32.3   admission, to do business in this state, accept a certificate of 
 32.4   valuation from the company's own actuary or from the 
 32.5   commissioner of insurance of the state or territory in which the 
 32.6   company is domiciled; 
 32.7      (5) for receiving and filing certificates of policies by 
 32.8   the company's actuary, or by the commissioner of insurance of 
 32.9   any other state or territory, $50; 
 32.10     (6) for each appointment of an agent filed with the 
 32.11  commissioner, a domestic insurer shall remit $5 and all other 
 32.12  insurers shall remit $3; 
 32.13     (7) for filing forms and rates, $50 $75 per filing; 
 32.14     (8) for annual renewal of surplus lines insurer license, 
 32.15  $300. 
 32.16     The commissioner shall adopt rules to define filings that 
 32.17  are subject to a fee. 
 32.18     Sec. 45.  Minnesota Statutes 1998, section 60A.23, 
 32.19  subdivision 8, is amended to read: 
 32.20     Subd. 8.  [SELF-INSURANCE OR INSURANCE PLAN ADMINISTRATORS 
 32.21  WHO ARE VENDORS OF RISK MANAGEMENT SERVICES.] (1)  [SCOPE.] This 
 32.22  subdivision applies to any vendor of risk management services 
 32.23  and to any entity which administers, for compensation, a 
 32.24  self-insurance or insurance plan.  This subdivision does not 
 32.25  apply (a) to an insurance company authorized to transact 
 32.26  insurance in this state, as defined by section 60A.06, 
 32.27  subdivision 1, clauses (4) and (5); (b) to a service plan 
 32.28  corporation, as defined by section 62C.02, subdivision 6; (c) to 
 32.29  a health maintenance organization, as defined by section 62D.02, 
 32.30  subdivision 4; (d) to an employer directly operating a 
 32.31  self-insurance plan for its employees' benefits; (e) to an 
 32.32  entity which administers a program of health benefits 
 32.33  established pursuant to a collective bargaining agreement 
 32.34  between an employer, or group or association of employers, and a 
 32.35  union or unions; or (f) to an entity which administers a 
 32.36  self-insurance or insurance plan if a licensed Minnesota insurer 
 33.1   is providing insurance to the plan and if the licensed insurer 
 33.2   has appointed the entity administering the plan as one of its 
 33.3   licensed agents within this state. 
 33.4      (2)  [DEFINITIONS.] For purposes of this subdivision the 
 33.5   following terms have the meanings given them. 
 33.6      (a) "Administering a self-insurance or insurance plan" 
 33.7   means (i) processing, reviewing or paying claims, (ii) 
 33.8   establishing or operating funds and accounts, or (iii) otherwise 
 33.9   providing necessary administrative services in connection with 
 33.10  the operation of a self-insurance or insurance plan. 
 33.11     (b) "Employer" means an employer, as defined by section 
 33.12  62E.02, subdivision 2. 
 33.13     (c) "Entity" means any association, corporation, 
 33.14  partnership, sole proprietorship, trust, or other business 
 33.15  entity engaged in or transacting business in this state. 
 33.16     (d) "Self-insurance or insurance plan" means a plan 
 33.17  providing life, medical or hospital care, accident, sickness or 
 33.18  disability insurance for the benefit of employees or members of 
 33.19  an association, or a plan providing liability coverage for any 
 33.20  other risk or hazard, which is or is not directly insured or 
 33.21  provided by a licensed insurer, service plan corporation, or 
 33.22  health maintenance organization. 
 33.23     (e) "Vendor of risk management services" means an entity 
 33.24  providing for compensation actuarial, financial management, 
 33.25  accounting, legal or other services for the purpose of designing 
 33.26  and establishing a self-insurance or insurance plan for an 
 33.27  employer. 
 33.28     (3)  [LICENSE.] No vendor of risk management services or 
 33.29  entity administering a self-insurance or insurance plan may 
 33.30  transact this business in this state unless it is licensed to do 
 33.31  so by the commissioner.  An applicant for a license shall state 
 33.32  in writing the type of activities it seeks authorization to 
 33.33  engage in and the type of services it seeks authorization to 
 33.34  provide.  The license may be granted only when the commissioner 
 33.35  is satisfied that the entity possesses the necessary 
 33.36  organization, background, expertise, and financial integrity to 
 34.1   supply the services sought to be offered.  The commissioner may 
 34.2   issue a license subject to restrictions or limitations upon the 
 34.3   authorization, including the type of services which may be 
 34.4   supplied or the activities which may be engaged in.  The license 
 34.5   fee is $500 $1,000 for the initial application and $500 $1,000 
 34.6   for each two-year renewal.  All licenses are for a period of two 
 34.7   years. 
 34.8      (4)  [REGULATORY RESTRICTIONS; POWERS OF THE COMMISSIONER.] 
 34.9   To assure that self-insurance or insurance plans are financially 
 34.10  solvent, are administered in a fair and equitable fashion, and 
 34.11  are processing claims and paying benefits in a prompt, fair, and 
 34.12  honest manner, vendors of risk management services and entities 
 34.13  administering insurance or self-insurance plans are subject to 
 34.14  the supervision and examination by the commissioner.  Vendors of 
 34.15  risk management services, entities administering insurance or 
 34.16  self-insurance plans, and insurance or self-insurance plans 
 34.17  established or operated by them are subject to the trade 
 34.18  practice requirements of sections 72A.19 to 72A.30.  In lieu of 
 34.19  an unlimited guarantee from a parent corporation for a vendor of 
 34.20  risk management services or an entity administering insurance or 
 34.21  self-insurance plans, the commissioner may accept a surety bond 
 34.22  in a form satisfactory to the commissioner in an amount equal to 
 34.23  120 percent of the total amount of claims handled by the 
 34.24  applicant in the prior year.  If at any time the total amount of 
 34.25  claims handled during a year exceeds the amount upon which the 
 34.26  bond was calculated, the administrator shall immediately notify 
 34.27  the commissioner.  The commissioner may require that the bond be 
 34.28  increased accordingly. 
 34.29     (5)  [RULEMAKING AUTHORITY.] To carry out the purposes of 
 34.30  this subdivision, the commissioner may adopt rules pursuant to 
 34.31  sections 14.001 to 14.69.  These rules may: 
 34.32     (a) establish reporting requirements for administrators of 
 34.33  insurance or self-insurance plans; 
 34.34     (b) establish standards and guidelines to assure the 
 34.35  adequacy of financing, reinsuring, and administration of 
 34.36  insurance or self-insurance plans; 
 35.1      (c) establish bonding requirements or other provisions 
 35.2   assuring the financial integrity of entities administering 
 35.3   insurance or self-insurance plans; or 
 35.4      (d) establish other reasonable requirements to further the 
 35.5   purposes of this subdivision. 
 35.6      Sec. 46.  Minnesota Statutes 1998, section 60A.71, 
 35.7   subdivision 7, is amended to read: 
 35.8      Subd. 7.  [FEES.] Each applicant for a reinsurance 
 35.9   intermediary license shall pay to the commissioner a fee of 
 35.10  $160 $200 for an initial two-year license and a fee of $120 $150 
 35.11  for each renewal.  Applications shall be submitted on forms 
 35.12  prescribed by the commissioner. 
 35.13     Sec. 47.  Minnesota Statutes 1998, section 60K.06, is 
 35.14  amended to read: 
 35.15     60K.06 [FEES.] 
 35.16     Subdivision 1.  [RENEWAL FEES.] (a) Each agent licensed 
 35.17  pursuant to section 60K.03 shall pay in accordance with the 
 35.18  procedure adopted by the commissioner a renewal fee as 
 35.19  prescribed by subdivision 2.  
 35.20     (b) Every agent, corporation, limited liability company, 
 35.21  and partnership renewal license is valid for a period of 24 
 35.22  months.  The commissioner may stagger the implementation of the 
 35.23  24-month licensing program so that approximately one-half of the 
 35.24  licenses will expire on October 31 of each even-numbered year 
 35.25  and the other half on October 31 of each odd-numbered year. 
 35.26  Those licensees who will receive a 12-month license on November 
 35.27  1, 1994, because of the staggered implementation schedule, will 
 35.28  pay for the license a fee reduced by an amount equal to one-half 
 35.29  the fee for renewal of the license. 
 35.30     (c) Persons whose applications have been properly and 
 35.31  timely filed who have not received notice of denial of renewal 
 35.32  are approved for renewal and may continue to transact business 
 35.33  whether or not the renewed license has been received on or 
 35.34  before November 1.  Applications for renewal of a license are 
 35.35  timely filed if received by the commissioner on or before 
 35.36  October 15 of the year due, on forms duly executed and 
 36.1   accompanied by appropriate fees.  An application mailed is 
 36.2   considered timely filed if addressed to the commissioner, with 
 36.3   proper postage, and postmarked by October 15.  
 36.4      Subd. 2.  [LICENSING FEES.] (a) In addition to the fees and 
 36.5   charges provided for examinations, each agent licensed pursuant 
 36.6   to section 60K.03 shall pay to the commissioner: 
 36.7      (1) a fee of $60 $80 per license for an initial license 
 36.8   issued to an individual agent, and a fee of $60 $80 for each 
 36.9   renewal; 
 36.10     (2) a fee of $160 $200 for an initial license issued to a 
 36.11  partnership, limited liability company, or corporation, and a 
 36.12  fee of $120 $150 for each renewal; 
 36.13     (3) a fee of $75 for an initial amendment (variable 
 36.14  annuity) to a license, and a fee of $50 for each renewal; and 
 36.15     (4) a fee of $500 for an initial surplus lines agent's 
 36.16  license, and a fee of $500 for each renewal. 
 36.17     (b) Persons whose applications have been properly and 
 36.18  timely filed who have not received notice of denial of renewal 
 36.19  are approved for renewal and may continue to transact business 
 36.20  whether or not the renewed license has been received on or 
 36.21  before November 1 of the renewal year.  Applications for renewal 
 36.22  of a license are timely filed if received by the commissioner on 
 36.23  or before the 15th day preceding the license renewal date of the 
 36.24  applicant on forms duly executed and accompanied by appropriate 
 36.25  fees.  An application mailed is considered timely filed if 
 36.26  addressed to the commissioner, with proper postage, and 
 36.27  postmarked on or before the 15th day preceding the licensing 
 36.28  renewal date of the applicant. 
 36.29     (c) Initial licenses issued under this section must be 
 36.30  valid for a period not to exceed two years.  The commissioner 
 36.31  shall assign an expiration date to each initial license so that 
 36.32  approximately one-half of all licenses expire each year.  Each 
 36.33  initial license must expire on October 31 of the expiration year 
 36.34  assigned by the commissioner. 
 36.35     (d) All fees shall be retained by the commissioner and are 
 36.36  nonreturnable, except that an overpayment of any fee must be 
 37.1   refunded upon proper application. 
 37.2      Subd. 3.  [INITIAL LICENSE EXPIRATION; FEE REDUCTION.] If 
 37.3   an initial license issued under subdivision 2, paragraph (a), 
 37.4   expires less than 12 months after issuance, the license fee must 
 37.5   be reduced by an amount equal to one-half the fee for a renewal 
 37.6   of the license. 
 37.7      Sec. 48.  Minnesota Statutes 1998, section 65B.48, 
 37.8   subdivision 3, is amended to read: 
 37.9      Subd. 3.  Self-insurance, subject to approval of the 
 37.10  commissioner, is effected by filing with the commissioner in 
 37.11  satisfactory form: 
 37.12     (1) a continuing undertaking by the owner or other 
 37.13  appropriate person to pay tort liabilities or basic economic 
 37.14  loss benefits, or both, and to perform all other obligations 
 37.15  imposed by sections 65B.41 to 65B.71; 
 37.16     (2) evidence that appropriate provision exists for prompt 
 37.17  administration of all claims, benefits, and obligations provided 
 37.18  by sections 65B.41 to 65B.71; 
 37.19     (3) evidence that reliable financial arrangements, 
 37.20  deposits, or commitments exist providing assurance, 
 37.21  substantially equivalent to that afforded by a policy of 
 37.22  insurance complying with sections 65B.41 to 65B.71, for payment 
 37.23  of tort liabilities, basic economic loss benefits, and all other 
 37.24  obligations imposed by sections 65B.41 to 65B.71; and 
 37.25     (4) a nonrefundable initial application fee of $500 $1,500 
 37.26  and an annual renewal fee of $100 $400 for political 
 37.27  subdivisions and $250 $500 for nonpolitical entities.  
 37.28     Sec. 49.  Minnesota Statutes 1998, section 70A.14, 
 37.29  subdivision 4, is amended to read: 
 37.30     Subd. 4.  [DURATION.] Licenses issued pursuant to this 
 37.31  section shall remain in effect until the licensee withdraws from 
 37.32  the state or until the license is suspended or revoked.  The fee 
 37.33  for each license shall be $1,000 $3,000, payable every three 
 37.34  years. 
 37.35     Sec. 50.  [82B.201] [CRIMINAL PENALTY.] 
 37.36     A person is guilty of a gross misdemeanor and may be 
 38.1   sentenced to imprisonment for not more than one year or to 
 38.2   payment of a fine of not more than $3,000, or both, if the 
 38.3   person: 
 38.4      (1) violates section 82B.20, subdivision 2, clause (4); 
 38.5      (2) performs unlicensed activities, if a license is 
 38.6   required under this chapter; or 
 38.7      (3) violates any order issued by the commissioner related 
 38.8   to conduct prohibited by clause (1). 
 38.9      Sec. 51.  [116J.036] [DEPARTMENT MAY NOT OPERATE AS TRAVEL 
 38.10  AGENCY.] 
 38.11     The department may not operate or provide a travel 
 38.12  reservation system in competition with private sector travel 
 38.13  agents, but may make referrals to private sector travel agents. 
 38.14     Sec. 52.  [116J.037] [CERTIFICATION OF 
 38.15  ELECTRONIC-COMMERCE-READY CITIES AND COUNTIES.] 
 38.16     A county or statutory or home rule charter city of 
 38.17  Minnesota shall be designated an electronic-commerce-ready city 
 38.18  or county by the department of trade and economic development 
 38.19  and may be annually recertified as an electronic-commerce-ready 
 38.20  city or county if it: 
 38.21     (1) has formed effective public-private partnerships with 
 38.22  communication providers, the business community, banks, schools, 
 38.23  health care, government, and nonprofit social and service 
 38.24  organizations to become electronic commerce ready; 
 38.25     (2) makes available training and continuing education to 
 38.26  develop an electronic-commerce-ready workforce; 
 38.27     (3) develops a plan for electronic commerce readiness that 
 38.28  reflects resource integration across economic and government 
 38.29  sectors, including current and future investments by business, 
 38.30  government, education, and health care to achieve cooperative 
 38.31  community and economic development benefits; 
 38.32     (4) uses local funding sources to catalyze and sustain 
 38.33  information technology investments to adapt to new business 
 38.34  priorities as electronic commerce grows; and 
 38.35     (5) maintains public access sites to ensure access to 
 38.36  electronic commerce applications and community networking tools, 
 39.1   such as electronic mail. 
 39.2      Sec. 53.  Minnesota Statutes 1998, section 116J.421, 
 39.3   subdivision 3, is amended to read: 
 39.4      Subd. 3.  [DUTIES.] The center shall: 
 39.5      (1) research and identify present and emerging social and 
 39.6   economic issues for rural Minnesota, including health care, 
 39.7   transportation, crime, housing, and job training; 
 39.8      (2) forge alliances and partnerships with rural communities 
 39.9   to find practical solutions to economic and social problems; 
 39.10     (3) provide a resource center for rural communities on 
 39.11  issues of importance to them; 
 39.12     (4) encourage collaboration across higher education 
 39.13  institutions to provide interdisciplinary team approaches to 
 39.14  problem solving with rural communities; and 
 39.15     (5) involve students in center projects. 
 39.16     Sec. 54.  Minnesota Statutes 1998, section 116J.421, is 
 39.17  amended by adding a subdivision to read: 
 39.18     Subd. 6.  [USE OF APPROPRIATION.] State appropriations to 
 39.19  the board, whether from the general fund or the rural policy and 
 39.20  development fund, may, at the discretion of the board, be 
 39.21  expended for administration of the center and to carry out its 
 39.22  duties under this section or under other law. 
 39.23     Sec. 55.  Minnesota Statutes 1998, section 116J.421, is 
 39.24  amended by adding a subdivision to read: 
 39.25     Subd. 7.  [BOARD COMPENSATION.] Compensation and expense 
 39.26  reimbursement of board members is as provided in section 
 39.27  15.0575, subdivision 3. 
 39.28     Sec. 56.  [116J.423] [MINNESOTA MINERALS 21ST CENTURY 
 39.29  FUND.] 
 39.30     Subdivision 1.  [CREATED.] The Minnesota minerals 21st 
 39.31  century fund is created as a separate account in the treasury.  
 39.32  Money in the account is appropriated to the commissioner of 
 39.33  trade and economic development for the purposes of this 
 39.34  section.  All money earned by the account, loan repayments of 
 39.35  principal and interest, and earnings on investments must be 
 39.36  credited to the account.  For the purpose of this section, 
 40.1   "fund" means the Minnesota minerals 21st century fund.  The 
 40.2   commissioner shall operate the account as a revolving account. 
 40.3      Subd. 2.  [USE OF FUND.] The commissioner shall use money 
 40.4   in the fund to make loans or equity investments in mineral 
 40.5   processing facilities including, but not limited to, taconite 
 40.6   processing, direct reduction processing, and steel production.  
 40.7   The commissioner must, prior to making any loans or equity 
 40.8   investments and after consultation with industry and public 
 40.9   officials, develop a strategy for making loans and equity 
 40.10  investments that assists the Minnesota mineral industry in 
 40.11  becoming globally competitive.  Money in the fund may also be 
 40.12  used to pay for the costs of carrying out the commissioner's due 
 40.13  diligence duties under this section. 
 40.14     Subd. 3.  [REQUIREMENTS PRIOR TO COMMITTING FUNDS.] The 
 40.15  commissioner, prior to making a commitment for a loan or equity 
 40.16  investment must, at a minimum, conduct due diligence research 
 40.17  regarding the proposed loan or equity investment, including 
 40.18  contracting with professionals as needed to assist in the due 
 40.19  diligence. 
 40.20     Subd. 4.  [REQUIREMENTS FOR FUND DISBURSEMENTS.] The 
 40.21  commissioner may make conditional commitments for loans or 
 40.22  equity investments but disbursements of funds pursuant to a 
 40.23  commitment may not be made until commitments for the remainder 
 40.24  of a project's funding are made that are satisfactory to the 
 40.25  commissioner and disbursements made from the other commitments 
 40.26  sufficient to protect the interests of the state in its loan or 
 40.27  investment. 
 40.28     Subd. 5.  [COMPANY CONTRIBUTION.] The commissioner may 
 40.29  provide loans or equity investments that match, in a proportion 
 40.30  determined by the commissioner, an investment made by the owner 
 40.31  of a facility. 
 40.32     Sec. 57.  [116J.424] [IRRRB CONTRIBUTION.] 
 40.33     The commissioner of the iron range resources and 
 40.34  rehabilitation board with approval of the board shall provide an 
 40.35  equal match for any loan or equity investment made by the 
 40.36  Minnesota minerals 21st century fund created by Minnesota 
 41.1   Statutes, section 116J.423.  The match may be in the form of a 
 41.2   loan or equity investment, notwithstanding whether the fund 
 41.3   makes a loan or equity investment.  The state shall not acquire 
 41.4   an equity interest because of an equity investment or loan by 
 41.5   the board and the board at its sole discretion shall decide what 
 41.6   interest it acquires in a project.  The commissioner of trade 
 41.7   and economic development may require a commitment from the board 
 41.8   to make the match prior to disbursing money from the fund. 
 41.9      Sec. 58.  Minnesota Statutes 1998, section 116J.8731, 
 41.10  subdivision 5, is amended to read: 
 41.11     Subd. 5.  [GRANT LIMITS GRANTS.] A Minnesota investment 
 41.12  fund grant may not be approved for an amount in excess of 
 41.13  $500,000.  This limit covers all money paid to complete the same 
 41.14  project, whether paid to one or more grant recipients and 
 41.15  whether paid in one or more fiscal years.  The portion of a 
 41.16  Minnesota investment fund grant that exceeds $100,000 must be 
 41.17  repaid to the state when it is repaid to the local community or 
 41.18  recognized Indian tribal government by the person or entity to 
 41.19  which it was loaned by the local community or Indian tribal 
 41.20  government.  Money repaid to the state must be credited to the 
 41.21  general fund.  A grant or loan may not be made to a person or 
 41.22  entity for the operation or expansion of a casino or a store 
 41.23  which is used solely or principally for retail sales.  Persons 
 41.24  or entities receiving grants or loans must pay each employee 
 41.25  total compensation, including benefits not mandated by law, that 
 41.26  on an annualized basis is equal to at least 110 percent of the 
 41.27  federal poverty level for a family of four. 
 41.28     Sec. 59.  Minnesota Statutes 1998, section 116J.8745, 
 41.29  subdivision 1, is amended to read: 
 41.30     Subdivision 1.  [TECHNICAL ASSISTANCE; LOAN 
 41.31  ADMINISTRATION.] The commissioner of trade and economic 
 41.32  development shall make grants to nonprofit organizations to 
 41.33  provide technical assistance to individuals with entrepreneurial 
 41.34  plans that require microenterprise loans in an amount ranging 
 41.35  from approximately $1,000 to $25,000, and for loan 
 41.36  administration costs related to those microenterprise loans. 
 42.1   Microenterprise is a small business which employs under five 
 42.2   employees plus the owner and requires under $25,000 to start to 
 42.3   support the startup and growth of self-employment and 
 42.4   microbusinesses.  Eligible businesses are microenterprises 
 42.5   employing under five people plus the owner and requiring under 
 42.6   $25,000 or no capital to start or expand the business. 
 42.7      Sec. 60.  Minnesota Statutes 1998, section 116J.8745, 
 42.8   subdivision 2, is amended to read: 
 42.9      Subd. 2.  [GRANT ELIGIBILITY AND ALLOCATION.] Nonprofit 
 42.10  organizations must apply for grants under this section following 
 42.11  procedures established by the commissioner.  To be eligible for 
 42.12  a grant, an organization must demonstrate to the commissioner 
 42.13  that it has the appropriate expertise.  The commissioner shall 
 42.14  give preference for grants to organizations that target 
 42.15  nontraditional entrepreneurs such as women, members of a 
 42.16  minority, low-income individuals, or persons seeking work who 
 42.17  are currently on or recently removed from welfare assistance. 
 42.18     An application must include: 
 42.19     (1) the local need for microenterprise support; 
 42.20     (2) proposed criteria for business eligibility; 
 42.21     (3) proposals for identifying and serving eligible 
 42.22  businesses; 
 42.23     (4) a description of technical assistance to be provided to 
 42.24  eligible businesses; 
 42.25     (5) proposals to coordinate technical assistance with 
 42.26  financial assistance; and 
 42.27     (6) a demonstration of ability to collaborate with other 
 42.28  agencies including educational and financial institutions; and 
 42.29     (7) project goals identifying the number of eligible 
 42.30  businesses to be assisted with the state funds awarded under the 
 42.31  grant. 
 42.32     Sec. 61.  [116J.9665] [WORLD TRADE CENTER.] 
 42.33     The commissioner shall facilitate and support Minnesota 
 42.34  world trade center programs and services and promote the 
 42.35  Minnesota world trade center.  The world trade center 
 42.36  corporation account in the special revenue fund under section 
 43.1   44A.0311 is renamed the world trade center account.  All money 
 43.2   received by the commissioner in connection with membership of 
 43.3   the Minnesota world trade center in the World Trade Center 
 43.4   Association, including money from the use of the conference and 
 43.5   service center, must be deposited in the account.  Money in the 
 43.6   account, including interest earned, is appropriated to the 
 43.7   commissioner and must be used exclusively for the purposes of 
 43.8   this section. 
 43.9      Sec. 62.  Minnesota Statutes 1998, section 175.17, is 
 43.10  amended to read: 
 43.11     175.17 [POWERS AND DUTIES, COMMISSIONER OF THE DEPARTMENT 
 43.12  OF LABOR AND INDUSTRY.] 
 43.13     (1) The commissioner shall administer the laws relating to 
 43.14  workers' compensation and the laws governing employees of the 
 43.15  state, a county, or other governmental subdivisions who contract 
 43.16  tuberculosis; 
 43.17     (2) The commissioner shall adopt reasonable and proper 
 43.18  rules governing rules of practice before the workers' 
 43.19  compensation division in matters which are not before a 
 43.20  compensation judge; 
 43.21     (3) The commissioner shall collect, collate, and publish 
 43.22  statistical and other information relating to work under the 
 43.23  department's jurisdiction and make public reports the 
 43.24  commissioner judges necessary, including such other reports as 
 43.25  may be required by law; 
 43.26     (4) The commissioner shall establish and maintain branch 
 43.27  offices as needed for the conduct of the affairs of the workers' 
 43.28  compensation division; 
 43.29     (5) The commissioner may: 
 43.30     (i) apply for, receive, and spend money received from 
 43.31  federal, municipal, county, regional, and other government 
 43.32  agencies and private sources; and 
 43.33     (ii) apply for, accept, and disburse grants and other aids 
 43.34  from public and private sources. 
 43.35     Sec. 63.  Minnesota Statutes 1998, section 176.181, 
 43.36  subdivision 2a, is amended to read: 
 44.1      Subd. 2a.  [APPLICATION FEE.] Every initial application 
 44.2   filed pursuant to subdivision 2 requesting authority to 
 44.3   self-insure shall be accompanied by a nonrefundable fee of 
 44.4   $2,500 $4,000.  When an employer seeks to be added as a member 
 44.5   of an existing approved group under section 79A.03, subdivision 
 44.6   6, the proposed new member shall pay a nonrefundable $250 $400 
 44.7   application fee to the commissioner at the time of application.  
 44.8   Each annual report due August 1 under section 79A.03, 
 44.9   subdivision 9, shall be accompanied by an annual fee 
 44.10  of $200 $500.  
 44.11     Sec. 64.  Minnesota Statutes 1998, section 216C.41, 
 44.12  subdivision 1, is amended to read: 
 44.13     Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
 44.14  subdivision apply to this section. 
 44.15     (b) "Qualified hydroelectric facility" means a 
 44.16  hydroelectric generating facility in this state that: 
 44.17     (1) is located at the site of a dam, if the dam was in 
 44.18  existence as of March 31, 1994; and 
 44.19     (2) begins generating electricity after July 1, 1994. 
 44.20     (c) "Qualified wind energy conversion facility" means a 
 44.21  wind energy conversion system that: 
 44.22     (1) produces two megawatts or less of electricity as 
 44.23  measured by nameplate rating and begins generating electricity 
 44.24  after June 30, 1997, and before July 1, 1999; or 
 44.25     (2) begins generating electricity after June 30, 1999, 
 44.26  produces two megawatts or less of electricity as measured by 
 44.27  nameplate rating, and is: 
 44.28     (i) located within one county and owned by a natural person 
 44.29  who owns the land where the facility is sited; 
 44.30     (ii) owned by a Minnesota small business as defined in 
 44.31  section 645.445; 
 44.32     (iii) owned by a nonprofit organization; or 
 44.33     (iv) owned by a tribal council if the facility is located 
 44.34  within the boundaries of the reservation; or 
 44.35     (3) begins generating electricity after June 30, 1999, 
 44.36  produces seven megawatts or less of electricity as measured by 
 45.1   nameplate rating, and: 
 45.2      (i) is owned by a cooperative organized under chapter 308A; 
 45.3   and 
 45.4      (ii) all shares and membership in the cooperative are held 
 45.5   by natural persons or estates, at least 51 percent of whom 
 45.6   reside in a county or contiguous to a county where the wind 
 45.7   energy production facilities of the cooperative are located. 
 45.8      Sec. 65.  [245.4705] [EMPLOYMENT SUPPORT SERVICES AND 
 45.9   PROGRAMS.] 
 45.10     The commissioner of human services shall cooperate with the 
 45.11  commissioner of economic security in the operation of a 
 45.12  statewide system, as provided in section 268A.14, to reimburse 
 45.13  providers for employment support services for persons with 
 45.14  mental illness. 
 45.15     Sec. 66.  Minnesota Statutes 1998, section 268.666, is 
 45.16  amended by adding a subdivision to read: 
 45.17     Subd. 5.  [INTERPRETER.] Workforce centers in areas that 
 45.18  have a significant number of residents for whom English is not 
 45.19  the primary language must attempt to have at the center staff 
 45.20  that are fluent in those other languages or arrange for 
 45.21  interpreter services. 
 45.22     Sec. 67.  Minnesota Statutes 1998, section 268A.13, is 
 45.23  amended to read: 
 45.24     268A.13 [EMPLOYMENT SUPPORT SERVICES FOR PERSONS WITH 
 45.25  MENTAL ILLNESS.] 
 45.26     The commissioner of economic security, in cooperation with 
 45.27  the commissioner of human services, shall develop a statewide 
 45.28  program of grants as outlined in section 268A.14 to provide 
 45.29  services for persons with mental illness in supported 
 45.30  employment.  Projects funded under this section must:  (1) 
 45.31  assist persons with mental illness in obtaining and retaining 
 45.32  employment; (2) emphasize individual community placements for 
 45.33  clients; (3) ensure interagency collaboration at the local level 
 45.34  between vocational rehabilitation field offices, county service 
 45.35  agencies, community support programs operating under the 
 45.36  authority of section 245.4712, and community rehabilitation 
 46.1   providers, in assisting clients; and (4) involve clients in the 
 46.2   planning, development, oversight, and delivery of support 
 46.3   services.  Project funds may not be used to provide services in 
 46.4   segregated settings such as the center-based employment 
 46.5   subprograms as defined in section 268A.01. 
 46.6      The commissioner of economic security, in consultation with 
 46.7   the commissioner of human services, shall develop a request for 
 46.8   proposals which is consistent with the requirements of this 
 46.9   section and section 268A.14 and which specifies the types of 
 46.10  services that must be provided by grantees.  Projects shall be 
 46.11  funded for state fiscal year 1995 and Priority for funding shall 
 46.12  be given to organizations with experience in developing 
 46.13  innovative employment support services for persons with mental 
 46.14  illness.  Each applicant for funds under this section shall 
 46.15  submit an evaluation protocol as part of the grant application. 
 46.16     Sec. 68.  Minnesota Statutes 1998, section 268A.14, is 
 46.17  amended to read: 
 46.18     268A.14 [PLAN FOR A STATEWIDE REIMBURSEMENT SYSTEM FOR 
 46.19  EMPLOYMENT SUPPORT SERVICES.] 
 46.20     Subdivision 1.  [EMPLOYMENT SUPPORT SERVICES AND PROGRAMS.] 
 46.21  The commissioner of economic security, in cooperation with the 
 46.22  commissioner of human services, shall develop a detailed plan 
 46.23  for establishing operate a statewide system to reimburse 
 46.24  providers for employment support services for persons with 
 46.25  mental illness.  The plan must include the following:  (1) 
 46.26  protocols for certifying eligible providers; (2) standards for 
 46.27  determining client eligibility for the service; (3) a list of 
 46.28  reimbursable services with the proposed reimbursement level for 
 46.29  each service; and (4) a description of the systems, including 
 46.30  necessary computer systems, that will be used by the state 
 46.31  agency for payment of reimbursement to eligible providers.  The 
 46.32  plan must also include projected total biennial costs for the 
 46.33  new reimbursement system, recommendations on the nature of 
 46.34  appeal rights which shall be provided to clients and providers, 
 46.35  and recommendations on the necessity for agency rulemaking prior 
 46.36  to implementation of the new reimbursement system.  The system 
 47.1   shall be operated to support employment programs and services 
 47.2   where: 
 47.3      (1) services provided are readily accessible to all persons 
 47.4   with mental illness so they can make progress toward economic 
 47.5   self-sufficiency; 
 47.6      (2) services provided are made an integral part of all 
 47.7   treatment and rehabilitation programs for persons with mental 
 47.8   illness to ensure that they have the ability and opportunity to 
 47.9   consider a variety of work options; 
 47.10     (3) programs help persons with mental illness form long 
 47.11  range plans for employment that fit their skills and abilities 
 47.12  by ensuring that ongoing support, crisis management, placement, 
 47.13  and career planning services are available; 
 47.14     (4) services provided give persons with mental illness the 
 47.15  information needed to make informed choices about employment 
 47.16  expectations and options, including information on the types of 
 47.17  employment available in the local community, the types of 
 47.18  employment services available, the impact of employment on 
 47.19  eligibility for governmental benefits, and career options; 
 47.20     (5) programs assess whether persons with mental illness 
 47.21  being serviced are satisfied with the services and outcomes.  
 47.22  Satisfaction assessments shall address at least whether persons 
 47.23  like their jobs, whether quality of life is improved, whether 
 47.24  potential for advancement exists, and whether there are adequate 
 47.25  support services in place; 
 47.26     (6) programs encourage persons with mental illness being 
 47.27  served to be involved in employment support services issues by 
 47.28  allowing them to participate in the development of individual 
 47.29  rehabilitation plans and to serve on boards, committees, task 
 47.30  forces, and review bodies that shape employment services 
 47.31  policies and that award grants, and by encouraging and helping 
 47.32  them to establish and participate in self-help and consumer 
 47.33  advocacy groups; 
 47.34     (7) programs encourage employers to expand employment 
 47.35  opportunities for persons with mental illness and, to maximize 
 47.36  the hiring of persons with mental illness, educate employers 
 48.1   about the needs and abilities of persons with mental illness and 
 48.2   the requirements of the Americans with Disabilities Act; 
 48.3      (8) programs encourage persons with mental illness, 
 48.4   vocational rehabilitation professionals, and mental health 
 48.5   professionals to learn more about current work incentive 
 48.6   provisions in governmental benefits programs; 
 48.7      (9) programs establish and maintain linkages with a wide 
 48.8   range of other programs and services, including educational 
 48.9   programs, housing programs, economic assistance services, 
 48.10  community support services, and clinical services to ensure that 
 48.11  persons with mental illness can obtain and maintain employment; 
 48.12     (10) programs participate in ongoing training across 
 48.13  agencies and service delivery systems so that providers in human 
 48.14  services systems understand their respective roles, rules, and 
 48.15  responsibilities and understand the options that exist for 
 48.16  providing employment and community support services to persons 
 48.17  with mental illness; and 
 48.18     (11) programs work with local communities to expand system 
 48.19  capacity to provide access to employment services to all persons 
 48.20  with mental illness who want them. 
 48.21     Subd. 2.  [REPORT.] Before preparing a biennial budget 
 48.22  request, the commissioner of economic security, in cooperation 
 48.23  with the commissioner of human services, must report on the 
 48.24  status and evaluation of the grants currently funded under 
 48.25  section 268A.14 to the chairs of the policy and finance 
 48.26  committees of the legislature having jurisdiction.  The report 
 48.27  must also include a determination of the unmet needs of persons 
 48.28  with mental illness who require employment services and provide 
 48.29  recommendations to expand the program to meet the identified 
 48.30  needs. 
 48.31     Sec. 69.  [268.368] [YOUTHBUILD TECH.] 
 48.32     Subdivision 1.  [GENERALLY.] A pilot program is established 
 48.33  within the department to make grants to eligible organizations 
 48.34  for programs which are available to students who have completed 
 48.35  at least four months in a program funded under section 268.362.  
 48.36  Programs funded under this section must provide participants 
 49.1   with the knowledge and skills necessary to obtain entry-level 
 49.2   jobs in the computer industry, including core computer classes 
 49.3   and job-specific education. 
 49.4      Subd. 2.  [GRANTS.] The provisions of section 268.361; 
 49.5   268.362, subdivision 2; 268.3625; and 268.366 shall apply to 
 49.6   grants under this section. 
 49.7      Sec. 70.  Minnesota Statutes 1998, section 298.22, 
 49.8   subdivision 2, is amended to read: 
 49.9      Subd. 2.  [IRON RANGE RESOURCES AND REHABILITATION BOARD.] 
 49.10  There is hereby created the iron range resources and 
 49.11  rehabilitation board, consisting of 11 members, five of whom are 
 49.12  state senators appointed by the subcommittee on committees of 
 49.13  the rules committee of the senate, and five of whom are 
 49.14  representatives, appointed by the speaker of the house of 
 49.15  representatives.  The members shall be appointed in January of 
 49.16  every odd-numbered year.  The 11th member of the board is the 
 49.17  commissioner of natural resources.  Vacancies on the board shall 
 49.18  be filled in the same manner as the original members were 
 49.19  chosen.  At least a majority of the legislative members of the 
 49.20  board shall be elected from state senatorial or legislative 
 49.21  districts in which over 50 percent of the residents reside 
 49.22  within a tax relief area as defined in section 273.134.  All 
 49.23  expenditures and projects made by the commissioner of iron range 
 49.24  resources and rehabilitation shall first be submitted to the 
 49.25  iron range resources and rehabilitation board for approval by at 
 49.26  least eight board members a majority of the board of 
 49.27  expenditures and projects for rehabilitation purposes as 
 49.28  provided by this section, and the method, manner, and time of 
 49.29  payment of all funds proposed to be disbursed shall be first 
 49.30  approved or disapproved by the board.  The board shall 
 49.31  biennially make its report to the governor and the legislature 
 49.32  on or before November 15 of each even-numbered year.  The 
 49.33  expenses of the board shall be paid by the state from the funds 
 49.34  raised pursuant to this section. 
 49.35     Sec. 71.  Minnesota Statutes 1998, section 298.22, 
 49.36  subdivision 6, is amended to read: 
 50.1      Subd. 6.  [EQUITY PRIVATE ENTITY PARTICIPATION.] The board 
 50.2   may acquire an equity interest in any project for which it 
 50.3   provides funding.  The commissioner may establish, participate 
 50.4   in the management of, and dispose of the assets of charitable 
 50.5   foundations and nonprofit corporations associated with any 
 50.6   project for which it provides funding, including specifically, 
 50.7   but without limitation, a corporation within the meaning of 
 50.8   section 317A.011, subdivision 6. 
 50.9      Sec. 72.  Minnesota Statutes 1998, section 298.22, 
 50.10  subdivision 7, is amended to read: 
 50.11     Subd. 7.  [GIANTS RIDGE RECREATION AREA.] (a) In addition 
 50.12  to the other powers granted in this section and other law, the 
 50.13  commissioner, for purposes of fostering economic development and 
 50.14  tourism within the Giants Ridge recreation area any tax relief 
 50.15  area, as defined in section 273.134, may spend any money made 
 50.16  available to the agency under section 298.28, and approved for 
 50.17  projects as provided in this section, to acquire real or 
 50.18  personal property or interests therein by gift, purchase, or 
 50.19  lease and may convey by lease, sale, or other means of 
 50.20  conveyance or commitment any or all of those property interests 
 50.21  acquired.  
 50.22     (b) Notwithstanding any other law to the contrary, property 
 50.23  conveyed under this subdivision and used for residential 
 50.24  purposes is not eligible for property tax homestead 
 50.25  classification under section 273.124 or for a property tax 
 50.26  refund under chapter 290A. 
 50.27     (c) In furtherance of development of the Giants Ridge 
 50.28  recreation area, the commissioner may establish and participate 
 50.29  in charitable foundations and nonprofit corporations, including 
 50.30  a corporation within the meaning of section 317A.011, 
 50.31  subdivision 6. 
 50.32     (d) The term " or owned, in regard to: 
 50.33     (1) Giants Ridge recreation area" refers to, an economic 
 50.34  development project area established by the commissioner in 
 50.35  furtherance of the powers delegated in this section within St. 
 50.36  Louis county in the western portions of the town of White and in 
 51.1   the eastern portion of the westerly, adjacent, unorganized 
 51.2   township; and 
 51.3      (2) the Ironworld discovery center, a tourism and economic 
 51.4   development facility established by the commissioner in 
 51.5   furtherance of the powers delegated in this section within and 
 51.6   south of the city of Chisholm. 
 51.7      Sec. 73.  Minnesota Statutes 1998, section 298.2213, 
 51.8   subdivision 4, is amended to read: 
 51.9      Subd. 4.  [PROJECT APPROVAL.] The board shall by August 1 
 51.10  each year prepare a list of projects to be funded from the money 
 51.11  appropriated in this section with necessary supporting 
 51.12  information including descriptions of the projects, plans, and 
 51.13  cost estimates.  A project must not be approved by the board 
 51.14  unless it finds that:  
 51.15     (1) the project will materially assist, directly or 
 51.16  indirectly, the creation of additional long-term employment 
 51.17  opportunities; 
 51.18     (2) the prospective benefits of the expenditure exceed the 
 51.19  anticipated costs; and 
 51.20     (3) in the case of assistance to private enterprise, the 
 51.21  project will serve a sound business purpose.  
 51.22     To be proposed by the board, a project must be approved by 
 51.23  at least eight a majority of the iron range resources and 
 51.24  rehabilitation board members and the commissioner of iron range 
 51.25  resources and rehabilitation.  The list of projects must be 
 51.26  submitted to the governor, who shall, by November 15 of each 
 51.27  year, approve, disapprove, or return for further consideration, 
 51.28  each project.  The money for a project may be spent only upon 
 51.29  approval of the project by the governor.  The board may submit 
 51.30  supplemental projects for approval at any time.  
 51.31     Sec. 74.  Minnesota Statutes 1998, section 298.223, 
 51.32  subdivision 2, is amended to read: 
 51.33     Subd. 2.  [ADMINISTRATION.] The taconite environmental 
 51.34  protection fund shall be administered by the commissioner of the 
 51.35  iron range resources and rehabilitation board.  The commissioner 
 51.36  shall by September 1 of each year submit to the board a list of 
 52.1   projects to be funded from the taconite environmental protection 
 52.2   fund, with such supporting information including description of 
 52.3   the projects, plans, and cost estimates as may be necessary.  
 52.4   Upon approval by at least eight a majority of the members of the 
 52.5   iron range resources and rehabilitation board, this list shall 
 52.6   be submitted to the governor by November 1 of each year.  By 
 52.7   December 1 of each year, the governor shall approve or 
 52.8   disapprove, or return for further consideration, each project.  
 52.9   Funds for a project may be expended only upon approval of the 
 52.10  project by the board and governor.  The commissioner may submit 
 52.11  supplemental projects to the board and governor for approval at 
 52.12  any time.  
 52.13     Sec. 75.  Minnesota Statutes 1998, section 326.86, 
 52.14  subdivision 1, is amended to read: 
 52.15     Subdivision 1.  [LICENSING FEE.] The licensing fee for 
 52.16  persons licensed pursuant to sections 326.83 to 326.991 
 52.17  is $75 $100 per year.  The commissioner may adjust the fees 
 52.18  under section 16A.1285 to recover the costs of administration 
 52.19  and enforcement.  The fees must be limited to the cost of 
 52.20  license administration and enforcement and must be deposited in 
 52.21  the state treasury and credited to the general fund.  
 52.22     Sec. 76.  Minnesota Statutes 1998, section 383B.79, 
 52.23  subdivision 4, is amended to read: 
 52.24     Subd. 4.  [ADMINISTRATION.] The board of county 
 52.25  commissioners shall administer the program and funds and bond 
 52.26  for projects in this section either as a county board or a 
 52.27  housing and redevelopment authority.  The board of county 
 52.28  commissioners may acquire property in connection with the 
 52.29  project known as the Humboldt Avenue Greenway from projects in 
 52.30  this section with any funds under its control.  Any sale, lease, 
 52.31  or development of such property by the board of county 
 52.32  commissioners shall be conducted in accordance with section 
 52.33  469.029. 
 52.34     Sec. 77.  Minnesota Statutes 1998, section 462A.204, is 
 52.35  amended by adding a subdivision to read: 
 52.36     Subd. 8.  [SCHOOL STABILITY.] (a) The agency in 
 53.1   consultation with the interagency task force on homelessness may 
 53.2   establish a school stability project under the family homeless 
 53.3   prevention and assistance program.  The purpose of the project 
 53.4   is to secure stable housing for families with school-age 
 53.5   children who have moved frequently and for unaccompanied youth.  
 53.6   For purposes of this subdivision, "unaccompanied youth" are 
 53.7   minors who are leaving foster care, juvenile correctional 
 53.8   facilities, or unstable families. 
 53.9      (b) The agency shall make grants to family homeless 
 53.10  prevention and assistance projects in communities with a school 
 53.11  or schools that have a significant degree of student mobility. 
 53.12     (c) Each project must be designed to reduce school 
 53.13  absenteeism; stabilize children in one home setting, or at a 
 53.14  minimum, in one school setting; and reduce shelter usage.  Each 
 53.15  project must include plans for the following: 
 53.16     (1) targeting of families with children under age 12 who, 
 53.17  in the last 12 months have either:  changed schools or homes at 
 53.18  least once or been absent from school at least 15 percent of the 
 53.19  school year and who have either been evicted from their housing; 
 53.20  are living in overcrowded conditions in their current housing; 
 53.21  or are paying more than 50 percent of their income for rent; 
 53.22     (2) targeting of unaccompanied youth in need of an 
 53.23  alternative residential setting; 
 53.24     (3) connecting families with the social services necessary 
 53.25  to maintain the family's stability in their home; and 
 53.26     (4) one or more of the following: 
 53.27     (i) provision of rental assistance for a specified period 
 53.28  of time, which may exceed 24 months; or 
 53.29     (ii) development of permanent supportive housing or 
 53.30  transitional housing. 
 53.31     (d) Notwithstanding subdivision 2, grants under this 
 53.32  section may be used to acquire, rehabilitate, or construct 
 53.33  transitional or permanent housing. 
 53.34     (e) Each grantee under the project must include 
 53.35  representatives of the local school district or targeted 
 53.36  schools, or both, and of the local community correction agencies 
 54.1   on its advisory committee. 
 54.2      Sec. 78.  Minnesota Statutes 1998, section 462A.205, is 
 54.3   amended by adding a subdivision to read: 
 54.4      Subd. 10.  [HOME OWNERSHIP PILOT PROJECT.] (a) An eligible 
 54.5   family may receive assistance with paying a home mortgage if 
 54.6   funds are specifically appropriated to the agency for that 
 54.7   purpose.  A family is eligible for home ownership assistance if 
 54.8   a caretaker parent:  
 54.9      (1) has been employed for at least six months; 
 54.10     (2) has a gross annualized wage of at least $16,000; and 
 54.11     (3) agrees to participate in home ownership and credit 
 54.12  counseling courses.  
 54.13     (b) The maximum duration of the assistance is 36 months and 
 54.14  the maximum assistance amount is $250 a month.  The assistance 
 54.15  must be allocated between payment on the mortgage and an escrow 
 54.16  for emergencies as follows: 
 54.17     (1) in the first year, no more than $200 to the mortgage 
 54.18  and no more than $50 to escrow; 
 54.19     (2) in year two, no more than $150 to the mortgage and no 
 54.20  more than $100 to escrow; and 
 54.21     (3) in year three, no more than $100 to the mortgage and no 
 54.22  more than $150 to escrow. 
 54.23     Escrowed money shall be under the control of the local 
 54.24  housing organization.  At the end of the three-year period, any 
 54.25  balance in an escrow account and earnings on the account must be 
 54.26  transferred to the eligible family. 
 54.27     (c) The agency may contract with a local housing 
 54.28  organization to administer the mortgage assistance under this 
 54.29  subdivision.  The agency may pay the local housing organization 
 54.30  an administrative fee.  The fee may not exceed $40 per mortgage 
 54.31  per month. 
 54.32     (d) The agency must coordinate assistance under this 
 54.33  subdivision with other home ownership programs it administers.  
 54.34  Assistance under this section can be considered an asset in 
 54.35  meeting eligibility requirements of other programs but cannot be 
 54.36  considered an asset for purposes of making a participant 
 55.1   ineligible for other programs. 
 55.2      Sec. 79.  Minnesota Statutes 1998, section 462A.209, is 
 55.3   amended to read: 
 55.4      462A.209 [HOME OWNERSHIP ASSISTANCE.] 
 55.5      Subdivision 1.  [FULL CYCLE HOME OWNERSHIP SERVICES.] The 
 55.6   full cycle home ownership services program shall be used to fund 
 55.7   nonprofit organizations and political subdivisions providing, 
 55.8   building capacity to provide, or supporting full cycle lending 
 55.9   for home ownership to low and moderate income home buyers and 
 55.10  homeowners, including seniors.  The purpose of the program is to 
 55.11  encourage private investment in affordable housing and 
 55.12  collaboration of nonprofit organizations and political 
 55.13  subdivisions with each other and private lenders in providing 
 55.14  full cycle lending services. 
 55.15     Subd. 2.  [DEFINITION.] "Full cycle home ownership 
 55.16  services" means supporting eligible home buyers and owners 
 55.17  through all phases of purchasing and keeping a home, by 
 55.18  providing prepurchase home buyer education, prepurchase 
 55.19  counseling and credit repair, prepurchase property inspection 
 55.20  and technical and financial assistance to buyers in 
 55.21  rehabilitating the home, postpurchase and counseling, including 
 55.22  home equity conversion loan counseling, mortgage default 
 55.23  counseling, postpurchase assistance with home maintenance, entry 
 55.24  cost assistance, and access to flexible loan products. 
 55.25     Subd. 3.  [ELIGIBILITY.] The agency shall establish 
 55.26  eligibility criteria for nonprofit organizations and political 
 55.27  subdivisions to receive funding under this section.  The 
 55.28  eligibility criteria must require the nonprofit organization or 
 55.29  political subdivision to provide, to build capacity to provide, 
 55.30  or support full cycle home ownership services for eligible home 
 55.31  buyers.  The agency may fund a nonprofit organization or 
 55.32  political subdivision that will provide full cycle home 
 55.33  ownership services by coordinating with one or more other 
 55.34  organizations that will provide specific components of full 
 55.35  cycle home ownership services.  The agency may make exceptions 
 55.36  to providing all components of full cycle lending if justified 
 56.1   by the application.  If there are more applicants requesting 
 56.2   funding than there are funds available, the agency shall award 
 56.3   the funds on a competitive basis and also assure an equitable 
 56.4   geographic distribution of the available funds.  The eligibility 
 56.5   criteria must require the nonprofit organization or political 
 56.6   subdivision to have a demonstrated involvement in the local 
 56.7   community and to target the housing affordability needs of the 
 56.8   local community or to have demonstrated experience with 
 56.9   counseling older persons on housing, or both.  Partnerships and 
 56.10  collaboration with innovative, grass roots, or community-based 
 56.11  initiatives shall be encouraged.  The agency shall give priority 
 56.12  to nonprofit organizations and political subdivisions that 
 56.13  provide matching funds.  Applicants for funds under section 
 56.14  462A.057 may also apply funds under this program. 
 56.15     Subd. 4.  [ENTRY COST HOME OWNERSHIP OPPORTUNITY PROGRAM.] 
 56.16  The agency may establish an entry cost home ownership 
 56.17  opportunity program, on terms and conditions it deems advisable, 
 56.18  to assist individuals with downpayment and closing costs to 
 56.19  finance the purchase of a home. 
 56.20     Sec. 80.  [462A.2093] [INCLUSIONARY HOUSING PROGRAM.] 
 56.21     Subdivision 1.  [DEFINITIONS.] For purposes of this 
 56.22  section, the following terms have the meanings given them in 
 56.23  this subdivision. 
 56.24     (a) "Municipality" means a town or a statutory or home rule 
 56.25  city. 
 56.26     (b) "Nonmetropolitan" means the area of the state outside 
 56.27  of the metropolitan area defined in section 473.121, subdivision 
 56.28  2. 
 56.29     (c) "Inclusionary housing development" means a residential 
 56.30  development meeting the requirements of section 473.255. 
 56.31     Subd. 2.  [INCLUSIONARY HOUSING GRANT ALLOCATION.] The 
 56.32  housing finance agency shall use funds specifically appropriated 
 56.33  for use under this section to the community rehabilitation 
 56.34  account or the affordable rental investment fund for the 
 56.35  purposes of making grants to promote inclusionary housing in 
 56.36  nonmetropolitan municipalities.  A grant application must at a 
 57.1   minimum include the location of the inclusionary housing 
 57.2   development, the type of housing to be produced, the number of 
 57.3   affordable units to be produced, the monthly rent, or purchase 
 57.4   price of the affordable units, and the incentives provided by 
 57.5   the municipality to achieve development of the affordable 
 57.6   units.  The application must include a resolution of support 
 57.7   from the municipality in which the inclusionary development is 
 57.8   located.  The participating developer must also submit a letter 
 57.9   of support. 
 57.10     Sec. 81.  Minnesota Statutes 1998, section 462A.21, is 
 57.11  amended by adding a subdivision to read: 
 57.12     Subd. 25.  [FULL CYCLE HOME OWNERSHIP SERVICES.] The agency 
 57.13  may spend money for the purposes of section 462A.209 and may pay 
 57.14  the costs and expenses necessary and incidental to the 
 57.15  development and operation of the program. 
 57.16     Sec. 82.  [462A.32] [ECONOMIC DEVELOPMENT AND HOUSING 
 57.17  CHALLENGE PROGRAM.] 
 57.18     Subdivision 1.  [CREATED.] The economic development and 
 57.19  housing challenge program is created to be administered by the 
 57.20  agency. 
 57.21     The program shall provide grants or loans for the purpose 
 57.22  of providing housing to support economic development activities 
 57.23  within a community or region by meeting locally identified 
 57.24  housing needs.  
 57.25     Subd. 2.  [JOB RELATED.] Challenge grants or loans may be 
 57.26  made to a city, a private developer, a nonprofit organization, 
 57.27  or the owner of the housing, including individuals.  Preference 
 57.28  shall be given to challenge grants or loans for home ownership.  
 57.29  To the extent practicable, grants and loans shall be made so 
 57.30  that an approximately equal number of housing units are financed 
 57.31  in the metropolitan area, as defined in section 473.121, 
 57.32  subdivision 2, and in the nonmetropolitan area.  Grants or loans 
 57.33  made for new construction housing projects may be used in areas 
 57.34  experiencing or projecting net new job growth.  Grants or loans 
 57.35  may be made for the rehabilitation of existing housing.  
 57.36     Subd. 3.  [MATCH REQUIREMENT; REGULATORY FLEXIBILITY.] 
 58.1   Challenge grants or loans must be used for economically viable 
 58.2   homeownership or rental housing proposals that: 
 58.3      (1) include a financial or in-kind contribution from units 
 58.4   of local government, area employers, and private philanthropic 
 58.5   organizations; and 
 58.6      (2) address the housing needs of the local work force. 
 58.7      Preference for grants and loans shall be given to 
 58.8   comparable proposals that include regulatory changes that result 
 58.9   in identifiable cost avoidance or cost reductions, such as 
 58.10  increased density, flexibility in site development standards or 
 58.11  zoning code requirements. 
 58.12     Subd. 4.  [STATE AND LOCAL GOVERNMENT COOPERATION.] In 
 58.13  making challenge grants or loans, the commissioner must 
 58.14  coordinate funding with funding available to the commissioner of 
 58.15  trade and economic development and local governments for housing 
 58.16  and infrastructure construction and repair.  The commissioner 
 58.17  must give preference for grants and loans to local governments 
 58.18  that provide a match that, combined with other spending by the 
 58.19  local government, constitutes a significant increase in the 
 58.20  local government's spending on housing. 
 58.21     Subd. 5.  [INCOME LIMITS.] Households served through 
 58.22  challenge grants or loans must not have incomes that exceed, for 
 58.23  homeownership projects, 115 percent of the greater of state or 
 58.24  area median income as determined by the United States Department 
 58.25  of Housing and Urban Development, and for rental housing 
 58.26  projects, 80 percent of the greater of state or area median 
 58.27  income as determined by the United States Department of Housing 
 58.28  and Urban Development. 
 58.29     Subd. 6.  [LARGE-SCALE PROJECTS.] At least one proposal 
 58.30  funded under this section must provide sufficient resources to 
 58.31  make a significant impact on the housing needs and economic 
 58.32  development activities within a community. 
 58.33     Subd. 7.  [GRANTS AND LOANS TO INDIVIDUALS.] Preference 
 58.34  shall be given to grants and loans that provide down payments 
 58.35  and other assistance to individuals to purchase a home.  The 
 58.36  commissioner must coordinate home ownership assistance provided 
 59.1   to individuals under this section with other programs 
 59.2   administered by or through the commissioner. 
 59.3      Sec. 83.  Minnesota Statutes 1998, section 473.251, is 
 59.4   amended to read: 
 59.5      473.251 [METROPOLITAN LIVABLE COMMUNITIES FUND.] 
 59.6      The metropolitan livable communities fund is created and 
 59.7   consists of the following accounts:  
 59.8      (1) the tax base revitalization account; 
 59.9      (2) the livable communities demonstration account; and 
 59.10     (3) the local housing incentives account; and 
 59.11     (4) the inclusionary housing account. 
 59.12     Sec. 84.  [473.255] [INCLUSIONARY HOUSING ACCOUNT.] 
 59.13     Subdivision 1.  [DEFINITIONS.] For the purpose of this 
 59.14  section, the terms defined in this section have the meanings 
 59.15  given them. 
 59.16     (a) "Affordable rental housing" means rental housing units 
 59.17  having a monthly rent of no more than the amount determined by: 
 59.18     (1) multiplying 30 percent of the area annual median income 
 59.19  by 0.3; and 
 59.20     (2) dividing the product obtained in clause (1) by 12. 
 59.21     (b) "Affordable homes" means owner-occupied homes having a 
 59.22  monthly mortgage payment of principal and interest of no more 
 59.23  than the amount determined by: 
 59.24     (1) multiplying 50 percent of the area annual median income 
 59.25  by 0.3; and 
 59.26     (2) dividing the product obtained in clause (1) by 12. 
 59.27     (c) "Inclusionary housing development" means a new 
 59.28  construction development of single-family or multiple-family 
 59.29  residences containing a total of 30 or more units located on a 
 59.30  single parcel of land and having at least 15 percent of its 
 59.31  owner-occupied housing consist of affordable homes and at least 
 59.32  ten percent of its rental housing consist of affordable rental 
 59.33  housing. 
 59.34     An inclusionary housing development may include resale 
 59.35  limitations on its affordable homes.  The limitations may 
 59.36  include a minimum ownership period of no more than three years 
 60.1   before a purchaser may profit on a sale of an affordable home. 
 60.2      (d) "Municipality" means a statutory or home rule charter 
 60.3   city or town participating in the local housing incentives 
 60.4   program under section 473.254. 
 60.5      Subd. 2.  [INCLUSIONARY HOUSING INCENTIVES.] The 
 60.6   metropolitan council may work with municipalities and developers 
 60.7   to provide incentives to inclusionary housing developments such 
 60.8   as waiver of service availability charges and other regulatory 
 60.9   incentives that would result in identifiable cost avoidance or 
 60.10  reductions for an inclusionary housing development. 
 60.11     Subd. 3.  [INCLUSIONARY HOUSING GRANTS.] The council shall 
 60.12  use funds in the inclusionary housing account to make grants or 
 60.13  loans to municipalities to fund the production of inclusionary 
 60.14  housing developments.  In evaluating grant or loan applications, 
 60.15  the council shall give priority to projects in municipalities 
 60.16  that offer the following incentives to assist in the production 
 60.17  of inclusionary housing.  Such incentives include but are not 
 60.18  limited to:  density bonuses, reduced setbacks and parking 
 60.19  requirements, decreased roadwidths, flexibility in site 
 60.20  development standards and zoning code requirements, waiver of 
 60.21  permit or impact fees, fast-track permitting and approvals, or 
 60.22  any other regulatory incentives that would result in 
 60.23  identifiable cost avoidance or reductions that contribute to the 
 60.24  economic feasibility of inclusionary housing.  
 60.25     Subd. 4.  [GRANT APPLICATION.] A grant application must at 
 60.26  a minimum include the location of the inclusionary development, 
 60.27  the type of housing to be produced, the number of affordable 
 60.28  units to be produced, the monthly rent, or purchase price of the 
 60.29  affordable units, and the incentives provided by the 
 60.30  municipality to achieve development of the affordable units.  
 60.31  The application must include a resolution of support from the 
 60.32  municipality in which the inclusionary development is located.  
 60.33  The participating developer must also submit a letter of support.
 60.34     Sec. 85.  Laws 1998, chapter 404, section 5, subdivision 4, 
 60.35  is amended to read: 
 60.36  Subd. 4.  Recreation and Community
 61.1   Center Grants                            10,800,000  10,500,000
 61.2   (a) Unless otherwise specifically 
 61.3   provided, the commissioner may not make 
 61.4   a grant from this appropriation until 
 61.5   the commissioner has determined that at 
 61.6   least an equal amount has been 
 61.7   committed to the project from nonstate 
 61.8   sources. 
 61.9   (b) The commissioner may not make a 
 61.10  grant under this subdivision until the 
 61.11  commissioner has determined that, if 
 61.12  the center will charge a fee for use of 
 61.13  the center's facilities, the plan for 
 61.14  operating the center includes free or 
 61.15  reduced-rate use of the facilities by 
 61.16  individuals and families that have a 
 61.17  household income at or below 150 
 61.18  percent of the federal poverty income 
 61.19  guidelines.  
 61.20  (c) The commissioner may not make a 
 61.21  grant under this subdivision until the 
 61.22  commissioner has determined that the 
 61.23  recipient has the ability and a plan to 
 61.24  fund the program intended for the 
 61.25  facility. 
 61.26  (d) Dawson-Boyd Educational       
 61.27  and Community Center                     1,000,000
 61.28  For a grant to independent school 
 61.29  district No. 378, Dawson-Boyd, to 
 61.30  design, construct, furnish, and equip 
 61.31  an educational and community center. 
 61.32  (e) Detroit Lakes Community
 61.33  Center                                   1,500,000
 61.34  For a grant to the city of Detroit 
 61.35  Lakes to design, construct, furnish, 
 61.36  and equip the Detroit Lakes Community 
 61.37  Center.  
 61.38  (f) Granite Falls Area 
 61.39  Multipurpose Community Recreation and 
 61.40  Education Center                         1,000,000
 61.41  For a grant to the city of Granite 
 61.42  Falls to design, construct, furnish, 
 61.43  and equip a multipurpose community 
 61.44  recreation and education building.  
 61.45  (g) Hallett Community
 61.46  Center, City of Crosby                     300,000
 61.47  For a grant to the city of Crosby to 
 61.48  design, construct, furnish, and equip 
 61.49  the Hallett Community Center.  
 61.50  (h) Hastings Municipal Water
 61.51  Park                                       500,000
 61.52  For a grant to the city of Hastings to 
 61.53  design, construct, furnish, and equip a 
 61.54  municipal water park.  
 61.55  (i) Hermantown Community Indoor 
 61.56  Sports and Physical Education Complex    1,000,000
 62.1   For a grant to independent school 
 62.2   district No. 700, Hermantown, to 
 62.3   design, construct, furnish, and equip a 
 62.4   community indoor sports and physical 
 62.5   education complex with an indoor track. 
 62.6   (j) Isle Community Center     1,000,000    700,000
 62.7   For a grant to independent school 
 62.8   district No. 473, Isle, to convert a 
 62.9   school building into a community 
 62.10  center.  Programs located at the 
 62.11  converted facility must include the 
 62.12  alternative education program, early 
 62.13  childhood family education programs, 
 62.14  centralized school district kitchen 
 62.15  facilities, and other community 
 62.16  programs.  This appropriation is 
 62.17  available on a dollar-for-dollar basis 
 62.18  as matching funds are committed from 
 62.19  nonstate sources up to a total required 
 62.20  match of $700,000. 
 62.21  (k) Lake Crystal Area
 62.22  Recreation Center                        1,500,000
 62.23  For a grant to the city of Lake Crystal 
 62.24  to design, construct, furnish, and 
 62.25  equip the Lake Crystal Area Recreation 
 62.26  Center. 
 62.27  (l) Proctor Community
 62.28  Activity Center                          1,000,000
 62.29  For a grant to the city of Proctor to 
 62.30  design, construct, furnish, and equip a 
 62.31  city community activity center designed 
 62.32  to provide facilities for city 
 62.33  government, library, arts, museum, and 
 62.34  other public functions.  
 62.35  (m) Redwood Valley Multipurpose   
 62.36  Education and Community Center           1,000,000
 62.37  For a grant to independent school 
 62.38  district No. 2758, Redwood Falls, to 
 62.39  design, construct, furnish, and equip a 
 62.40  multipurpose education and community 
 62.41  center to be constructed and operated 
 62.42  under a joint powers agreement with the 
 62.43  city of Redwood Falls.  
 62.44  The center must provide:  (1) expanded 
 62.45  physical education curriculum for 
 62.46  Redwood Valley students; (2) a latchkey 
 62.47  program and an after-school program for 
 62.48  at-risk youth; (3) expanded healthy 
 62.49  lifestyle community education and 
 62.50  recreation programs for all age groups 
 62.51  in the community; and (4) community 
 62.52  conference and meeting facilities.  
 62.53  (n) Windom Area Multipurpose 
 62.54  Center                                   1,000,000
 62.55  For a grant to the city of Windom to 
 62.56  design, construct, furnish, and equip a 
 62.57  multipurpose center. 
 62.58     Sec. 86.  [REPEALER.] 
 63.1      Minnesota Statutes 1998, sections 44A.001; 44A.01; 44A.02; 
 63.2   44A.023; 44A.025; 44A.031; 44A.0311; 44A.06; 44A.08; 44A.11; and 
 63.3   462A.28, are repealed. 
 63.4      Sec. 87.  [EFFECTIVE DATE.] 
 63.5      Section 17, subdivision 5, paragraph (h), relating to the 
 63.6   Bruentrup farm site is effective the day following final 
 63.7   enactment. 
 63.8      Section 30 is effective upon approval by the Duluth city 
 63.9   council and the Duluth entertainment and convention center 
 63.10  authority, and upon compliance with the provisions of Minnesota 
 63.11  Statutes, section 645.021. 
 63.12     Section 31 is effective the day after the latter of the 
 63.13  certificates of approval of the Long Prairie city council and 
 63.14  the board of commissioners of the Long Prairie housing and 
 63.15  redevelopment authority is filed in compliance with Minnesota 
 63.16  Statutes, section 645.021, subdivision 3.