1.1                          A bill for an act 
  1.2             relating to economic development; modifying programs 
  1.3             and practices; providing findings; modifying fees and 
  1.4             assessments; providing extra unemployment benefits for 
  1.5             certain laid-off workers; providing a special 
  1.6             assessment; providing consultation requirements for 
  1.7             capital projects; repealing obsolete provisions; 
  1.8             reinstating a repealed law; amending Minnesota 
  1.9             Statutes 2000, sections 16A.86, by adding a 
  1.10            subdivision; 16B.305, by adding a subdivision; 48.24, 
  1.11            subdivision 5; 116J.565, subdivision 1; 116J.58, 
  1.12            subdivision 1; 116J.9665, subdivisions 1, 4, 6; 
  1.13            116M.14, subdivision 4; 116M.18, subdivisions 2, 3, 4, 
  1.14            5, 8, by adding a subdivision; 268.051, subdivision 8; 
  1.15            446A.07, subdivision 4; 446A.12, subdivision 1; 
  1.16            462A.04, subdivisions 1, 4; Minnesota Statutes 2001 
  1.17            Supplement, sections 116C.03, subdivision 2; 268.022, 
  1.18            subdivision 1; Laws 2001, First Special Session 
  1.19            chapter 4, article 1, section 2, subdivision 5; Laws 
  1.20            2001, First Special Session chapter 4, article 2, 
  1.21            section 31; proposing coding for new law in Minnesota 
  1.22            Statutes, chapter 116J; repealing Minnesota Statutes 
  1.23            2000, sections 116J.9672; 116J.9673. 
  1.24  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.25     Section 1.  [FINDINGS.] 
  1.26     The legislature finds that it is in the public interest to 
  1.27  preserve a balance in the workforce development fund that is 
  1.28  adequate to fund necessary employment and training programs.  
  1.29  Adequate funding preserves the state's ability to provide 
  1.30  training and support to employees who, as a result of either 
  1.31  large or small layoffs, experience job loss that may require 
  1.32  retraining for a new field, the upgrading of basic skills, or 
  1.33  other temporary support that allows them to rejoin the workforce 
  1.34  in stable and productive employment.  Further, adequate funding 
  2.1   for employment and training programs helps to secure a skilled 
  2.2   workforce for employers in a variety of fields, and allows 
  2.3   employers additional flexibility in locating and planning their 
  2.4   business activities in Minnesota.  The legislature finds that 
  2.5   the transfer of funds out of the workforce development fund to 
  2.6   support activities or programs not related to employment and 
  2.7   training has the potential to interfere with the goals and 
  2.8   objectives of the fund, and to upset the expectations of both 
  2.9   employers and employees who rely upon the dedication of these 
  2.10  funds to workforce development activities.  Therefore, the 
  2.11  legislature strongly recommends against any such transfers. 
  2.12     Sec. 2.  Minnesota Statutes 2000, section 16A.86, is 
  2.13  amended by adding a subdivision to read: 
  2.14     Subd. 5.  [CONSULTATIONS.] A political subdivision must, 
  2.15  prior to the submission of any capital project request to the 
  2.16  governor or the legislature that involves new construction, 
  2.17  consult with the commissioner of trade and economic development 
  2.18  and obtain information about any existing buildings that may be 
  2.19  available and that, either in their current condition or 
  2.20  subsequent to proposed improvements, could adequately serve the 
  2.21  same function as the proposed new construction.  Information on 
  2.22  any suitable available buildings must be provided to the 
  2.23  legislature along with the capital budget request. 
  2.24     Sec. 3.  Minnesota Statutes 2000, section 16B.305, is 
  2.25  amended by adding a subdivision to read: 
  2.26     Subd. 4.  [CONSULTATIONS.] State agencies must, prior to 
  2.27  the submission of any capital project request to the governor or 
  2.28  the legislature that involves new construction, consult with the 
  2.29  commissioner of trade and economic development and obtain 
  2.30  information about any existing buildings that may be available 
  2.31  and that, either in their current condition or subsequent to 
  2.32  proposed improvements, could adequately serve the same function 
  2.33  as the proposed new construction.  Information on any suitable 
  2.34  available buildings must be provided to the legislature along 
  2.35  with the capital budget request. 
  2.36     Sec. 4.  Minnesota Statutes 2000, section 48.24, 
  3.1   subdivision 5, is amended to read: 
  3.2      Subd. 5.  Loans or obligations shall not be subject under 
  3.3   this section to any limitation based upon such capital and 
  3.4   surplus to the extent that they are secured or covered by 
  3.5   guarantees, or by commitments or agreements to take over or to 
  3.6   purchase the same, made by: 
  3.7      (1) the commissioner of agriculture on the purchase of 
  3.8   agricultural land; 
  3.9      (2) any Federal Reserve bank; 
  3.10     (3) the United States or any department, bureau, board, 
  3.11  commission, or establishment of the United States, including any 
  3.12  corporation wholly owned directly or indirectly by the United 
  3.13  States; 
  3.14     (4) the Minnesota energy and economic development 
  3.15  authority; or 
  3.16     (5) the Minnesota export finance authority; or 
  3.17     (6) a municipality or political subdivision within 
  3.18  Minnesota to the extent that the guarantee or collateral is a 
  3.19  valid and enforceable general obligation of that political body. 
  3.20     Sec. 5.  Minnesota Statutes 2001 Supplement, section 
  3.21  116C.03, subdivision 2, is amended to read: 
  3.22     Subd. 2.  [MEMBERSHIP.] The members of the board are the 
  3.23  director of the office of strategic and long-range planning, the 
  3.24  commissioner of commerce, the commissioner of the pollution 
  3.25  control agency, the commissioner of natural resources, the 
  3.26  director of the office of environmental assistance, the 
  3.27  commissioner of agriculture, the commissioner of health, the 
  3.28  commissioner of trade and economic development, the commissioner 
  3.29  of transportation, the chair of the board of water and soil 
  3.30  resources, and a representative of the governor's office 
  3.31  designated by the governor.  The governor shall appoint five 
  3.32  members from the general public to the board, subject to the 
  3.33  advice and consent of the senate.  At least two of the five 
  3.34  public members must have knowledge of and be conversant in water 
  3.35  management issues in the state.  Notwithstanding the provisions 
  3.36  of section 15.06, subdivision 6, members of the board may not 
  4.1   delegate their powers and responsibilities as board members to 
  4.2   any other person.  After June 30, 2003, and before July 1, 2004, 
  4.3   this prohibition does not apply to the commissioner of trade and 
  4.4   economic development. 
  4.5      Sec. 6.  [116J.105] [PROMOTION OF AVAILABLE PROPERTIES.] 
  4.6      The commissioner shall communicate regularly with the 
  4.7   League of Minnesota Cities, the Minnesota Chamber of Commerce, 
  4.8   political subdivisions, and local chambers of commerce, as well 
  4.9   as other appropriate local sources of information, to obtain 
  4.10  information about available low-cost land and buildings in the 
  4.11  state, including, but not limited to, very low-cost properties 
  4.12  and properties that have been abandoned.  The information the 
  4.13  commissioner gains from these communications shall, to the 
  4.14  greatest extent possible, be incorporated into any electronic or 
  4.15  print publications or databases that the commissioner makes 
  4.16  available for marketing purposes. 
  4.17     Sec. 7.  Minnesota Statutes 2000, section 116J.565, 
  4.18  subdivision 1, is amended to read: 
  4.19     Subdivision 1.  [CHARACTERISTICS.] (a) If applications for 
  4.20  grants exceed the available appropriations, grants shall be made 
  4.21  for sites that, in the commissioner's judgment, provide the 
  4.22  highest return in public benefits for the public costs 
  4.23  incurred.  In making this judgment, the commissioner shall give 
  4.24  priority to redevelopment projects with one or more of the 
  4.25  following characteristics: 
  4.26     (1) the need for redevelopment in conjunction with 
  4.27  contamination remediation needs; 
  4.28     (2) the redevelopment project meets current tax increment 
  4.29  financing requirements for a redevelopment district and tax 
  4.30  increments will contribute to the project; 
  4.31     (3) the redevelopment potential within the municipality; 
  4.32     (4) proximity to public transit if located in the 
  4.33  metropolitan area; and 
  4.34     (5) multijurisdictional projects that take into account the 
  4.35  need for affordable housing, transportation, and environmental 
  4.36  impact. 
  5.1      (b) The factors in paragraph (a), clauses (1) to (5), are 
  5.2   not listed in a rank order of priority; rather the commissioner 
  5.3   may weigh each factor, depending upon the facts and 
  5.4   circumstances, as the commissioner considers appropriate.  The 
  5.5   commissioner may consider other factors that affect the net 
  5.6   return of public benefits for completion of the redevelopment 
  5.7   plan.  The commissioner, notwithstanding the listing of 
  5.8   priorities and the goal of maximizing the return of public 
  5.9   benefits, shall make grants that distribute available money to 
  5.10  sites both within and outside of the metropolitan area.  The 
  5.11  commissioner shall provide a written statement of the supporting 
  5.12  reasons for each grant.  Unless sufficient applications are not 
  5.13  received within the first nine months of a fiscal year for 
  5.14  qualifying sites outside of the metropolitan area, at least 25 
  5.15  50 percent of the money provided as grants in a fiscal year must 
  5.16  be made for sites located outside of the metropolitan area.  The 
  5.17  commissioner shall consult with the metropolitan council about 
  5.18  metropolitan area grants. 
  5.19     Sec. 8.  Minnesota Statutes 2000, section 116J.58, 
  5.20  subdivision 1, is amended to read: 
  5.21     Subdivision 1.  [ENUMERATION.] The commissioner shall: 
  5.22     (1) investigate, study, and undertake ways and means of 
  5.23  promoting and encouraging the prosperous development and 
  5.24  protection of the legitimate interest and welfare of Minnesota 
  5.25  business, industry, and commerce, within and outside the state; 
  5.26     (2) locate markets for manufacturers and processors and aid 
  5.27  merchants in locating and contacting markets; 
  5.28     (3) investigate and study conditions affecting Minnesota 
  5.29  business, industry, and commerce and collect and disseminate 
  5.30  information, and engage in technical studies, scientific 
  5.31  investigations, and statistical research and educational 
  5.32  activities necessary or useful for the proper execution of the 
  5.33  powers and duties of the commissioner in promoting and 
  5.34  developing Minnesota business, industry, and commerce, both 
  5.35  within and outside the state; 
  5.36     (4) plan and develop an effective business information 
  6.1   service both for the direct assistance of business and industry 
  6.2   of the state and for the encouragement of business and industry 
  6.3   outside the state to use economic facilities within the state; 
  6.4      (5) compile, collect, and develop periodically, or 
  6.5   otherwise make available, information relating to current 
  6.6   business conditions; 
  6.7      (6) conduct or encourage research designed to further new 
  6.8   and more extensive uses of the natural and other resources of 
  6.9   the state and designed to develop new products and industrial 
  6.10  processes; 
  6.11     (7) study trends and developments in the industries of the 
  6.12  state and analyze the reasons underlying the trends; study costs 
  6.13  and other factors affecting successful operation of businesses 
  6.14  within the state; and make recommendations regarding 
  6.15  circumstances promoting or hampering business and industrial 
  6.16  development; 
  6.17     (8) serve as a clearing house for business and industrial 
  6.18  problems of the state; and advise small business enterprises 
  6.19  regarding improved methods of accounting and bookkeeping; 
  6.20     (9) cooperate with interstate commissions engaged in 
  6.21  formulating and promoting the adoption of interstate compacts 
  6.22  and agreements helpful to business, industry, and commerce; 
  6.23     (10) cooperate with other state departments, and with 
  6.24  boards, commissions, and other state agencies, in the 
  6.25  preparation and coordination of plans and policies for the 
  6.26  development of the state and for the use and conservation of its 
  6.27  resources insofar as the use, conservation, and development may 
  6.28  be appropriately directed or influenced by a state agency; 
  6.29     (11) assemble and coordinate information relative to the 
  6.30  status, scope, cost, and employment possibilities and the 
  6.31  availability of materials, equipment, and labor in connection 
  6.32  with public works projects, state, county, and municipal; 
  6.33  recommend limitations on the public works; gather current 
  6.34  progress information with reference to public and private works 
  6.35  projects of the state and its political subdivisions with 
  6.36  reference to conditions of employment; inquire into and report 
  7.1   to the governor, when requested by the governor, with respect to 
  7.2   any program of public state improvements and the financing 
  7.3   thereof; and request and obtain information from other state 
  7.4   departments or agencies as may be needed properly to report 
  7.5   thereon; 
  7.6      (12) study changes in population and current trends and 
  7.7   prepare plans and suggest policies for the development and 
  7.8   conservation of the resources of the state; 
  7.9      (13) confer and cooperate with the executive, legislative, 
  7.10  or planning authorities of the United States and neighboring 
  7.11  states and provinces and of the counties and municipalities of 
  7.12  such neighboring states, for the purpose of bringing about a 
  7.13  coordination between the development of such neighboring 
  7.14  provinces, states, counties, and municipalities and the 
  7.15  development of this state; 
  7.16     (14) generally, gather, compile, and make available 
  7.17  statistical information relating to business, trade, commerce, 
  7.18  industry, transportation, communication, natural resources, and 
  7.19  other like subjects in this state, with authority to call upon 
  7.20  other departments of the state for statistical data and results 
  7.21  obtained by them and to arrange and compile that statistical 
  7.22  information in a manner that seems wise; 
  7.23     (15) prepare an annual report to the legislature estimating 
  7.24  and, to the extent possible, describing the number of Minnesota 
  7.25  companies which have left the state or moved to surrounding 
  7.26  states or other countries.  The report should include an 
  7.27  estimate of the number of jobs lost by these moves, an estimate 
  7.28  of the total employment payroll, average hourly wage of those 
  7.29  jobs lost and those created in the new location, and to the 
  7.30  extent possible, the reasons for each company moving out of 
  7.31  state, if known; 
  7.32     (16) publish documents and annually convene regional 
  7.33  meetings to inform businesses, local government units, 
  7.34  assistance providers, and other interested persons of changes in 
  7.35  state and federal law related to economic development; 
  7.36     (17) (16) annually convene conferences of providers of 
  8.1   economic development related financial and technical assistance 
  8.2   for the purposes of exchanging information on economic 
  8.3   development assistance, coordinating economic development 
  8.4   activities, and formulating economic development strategies; 
  8.5      (18) (17) provide business with information on the economic 
  8.6   benefits of energy conservation and on the availability of 
  8.7   energy conservation assistance; and 
  8.8      (19) (18) prepare, as part of biennial budget process, 
  8.9   performance measures for each business loan or grant program 
  8.10  within the jurisdiction of the commissioner.  Measures would 
  8.11  include source of funds for each program, numbers of jobs 
  8.12  proposed or promised at the time of application and the number 
  8.13  of jobs created, estimated number of jobs retained, the average 
  8.14  salary and benefits for the jobs resulting from the program, and 
  8.15  the number of projects approved. 
  8.16     Sec. 9.  Minnesota Statutes 2000, section 116J.9665, 
  8.17  subdivision 1, is amended to read: 
  8.18     Subdivision 1.  [DEFINITIONS.] For purposes of this 
  8.19  section, the following terms have the meanings given them: 
  8.20     (1) "Conference and service center" means the approximately 
  8.21  20,000 square feet of space on the third and fourth floors of 
  8.22  the Minnesota world trade center that the state of Minnesota has 
  8.23  the right to possess, occupy, and use subject to the terms and 
  8.24  conditions of the development agreement. 
  8.25     (2) "Development agreement" means the agreement entered 
  8.26  into by and between the world trade center board, as agent of 
  8.27  the state of Minnesota, and Oxford Development Minnesota, Inc. 
  8.28  dated July 27, 1984, and the amendments to that agreement, for 
  8.29  development and construction of a world trade center at a 
  8.30  designated site in Minnesota. 
  8.31     (3) (2) "Minnesota world trade center" means the facility 
  8.32  constructed in accordance with the development agreement or 
  8.33  other facilities meeting the membership requirements of the 
  8.34  World Trade Centers Association. 
  8.35     Sec. 10.  Minnesota Statutes 2000, section 116J.9665, 
  8.36  subdivision 4, is amended to read: 
  9.1      Subd. 4.  [DUTIES.] The commissioner shall: 
  9.2      (1) promote and market the Minnesota world trade center and 
  9.3   membership in the World Trade Centers Association; 
  9.4      (2) sponsor conferences or other promotional events in the 
  9.5   conference and service center; 
  9.6      (3) sponsor, develop, and conduct educational programs 
  9.7   related to international trade; 
  9.8      (4) (3) establish and maintain an office in the Minnesota 
  9.9   world trade center; and 
  9.10     (5) (4) not duplicate programs or services provided by the 
  9.11  commissioner of agriculture. 
  9.12     Sec. 11.  Minnesota Statutes 2000, section 116J.9665, 
  9.13  subdivision 6, is amended to read: 
  9.14     Subd. 6.  [WORLD TRADE CENTER ACCOUNT.] The world trade 
  9.15  center account is in the special revenue fund.  All money 
  9.16  received from the use of the conference and service center or 
  9.17  appropriated under this section must be deposited in the 
  9.18  account.  Money in the account including interest earned is 
  9.19  appropriated to the commissioner and must be used exclusively 
  9.20  for the purposes of this section. 
  9.21     Sec. 12.  Minnesota Statutes 2000, section 116M.14, 
  9.22  subdivision 4, is amended to read: 
  9.23     Subd. 4.  [LOW-INCOME AREA.] "Low-income area" means 
  9.24  Minneapolis, St. Paul, and inner ring suburbs as defined by the 
  9.25  metropolitan council that had a median household income below 
  9.26  $31,000 as reported in the 1990 census those cities in the 
  9.27  metropolitan area as defined in section 473.121, subdivision 2, 
  9.28  that have an average income that is below 60 percent of the 
  9.29  median income for a four-person family as of the latest report 
  9.30  by the United States Census Bureau. 
  9.31     Sec. 13.  Minnesota Statutes 2000, section 116M.18, 
  9.32  subdivision 2, is amended to read: 
  9.33     Subd. 2.  [CHALLENGE GRANT ELIGIBILITY; NONPROFIT 
  9.34  CORPORATION.] The board may enter into agreements with nonprofit 
  9.35  corporations to fund and guarantee loans the nonprofit 
  9.36  corporation makes in low-income areas under subdivision 4.  A 
 10.1   corporation must demonstrate that:  
 10.2      (1) its board of directors includes citizens experienced in 
 10.3   development, minority business enterprises, and creating jobs in 
 10.4   low-income areas; 
 10.5      (2) it has the technical skills to analyze projects; 
 10.6      (3) it is familiar with other available public and private 
 10.7   funding sources and economic development programs; 
 10.8      (4) it can initiate and implement economic development 
 10.9   projects; 
 10.10     (5) it can establish and administer a revolving loan 
 10.11  account; and 
 10.12     (6) it can work with job referral networks which assist 
 10.13  minority and other persons in low-income areas. 
 10.14     Sec. 14.  Minnesota Statutes 2000, section 116M.18, 
 10.15  subdivision 3, is amended to read: 
 10.16     Subd. 3.  [REVOLVING LOAN FUND.] (a) The board shall 
 10.17  establish a revolving loan fund to make grants to nonprofit 
 10.18  corporations for the purpose of making loans and loan guarantees 
 10.19  to new and expanding businesses in a low-income area to promote 
 10.20  minority business enterprises and job creation for minority and 
 10.21  other persons in low-income areas.  
 10.22     (b) Eligible business enterprises include, but are not 
 10.23  limited to, technologically innovative industries, value-added 
 10.24  manufacturing, and information industries.  Loan applications 
 10.25  given preliminary approval by the nonprofit corporation must be 
 10.26  forwarded to the board for approval.  The commissioner must give 
 10.27  final approval for each loan or loan guarantee made by the 
 10.28  nonprofit corporation.  The amount of a grant the state funds 
 10.29  contributed to any loan or loan guarantee may not exceed 50 
 10.30  percent of each loan.  The amount of nonstate money must equal 
 10.31  at least 50 percent for each loan. 
 10.32     Sec. 15.  Minnesota Statutes 2000, section 116M.18, 
 10.33  subdivision 4, is amended to read: 
 10.34     Subd. 4.  [BUSINESS LOAN CRITERIA.] (a) The criteria in 
 10.35  this subdivision apply to loans made or guaranteed by nonprofit 
 10.36  corporations under the urban challenge grant program.  
 11.1      (b) Loans or guarantees must be made to businesses that are 
 11.2   not likely to undertake a project for which loans are sought 
 11.3   without assistance from the urban challenge grant program.  
 11.4      (c) A loan or guarantee must be used for a project designed 
 11.5   to benefit persons in low-income areas through the creation of 
 11.6   job or business opportunities for them.  Priority must be given 
 11.7   for loans to the lowest income areas.  
 11.8      (d) The minimum state contribution to a loan or guarantee 
 11.9   is $5,000 and the maximum is $150,000. 
 11.10     (e) A loan The state contribution must be matched by at 
 11.11  least an equal amount of new private investment.  
 11.12     (f) A loan may not be used for a retail development project.
 11.13     (g) The business must agree to work with job referral 
 11.14  networks that focus on minority applicants from low-income areas.
 11.15     Sec. 16.  Minnesota Statutes 2000, section 116M.18, 
 11.16  subdivision 5, is amended to read: 
 11.17     Subd. 5.  [REVOLVING FUND ADMINISTRATION; RULES.] (a) The 
 11.18  board shall establish a minimum interest rate for loans or 
 11.19  guarantees to ensure that necessary loan administration costs 
 11.20  are covered.  
 11.21     (b) Loan repayment amounts equal to one-half of the 
 11.22  principal and interest must be deposited in a revolving fund 
 11.23  created by the board for challenge grants.  The remaining amount 
 11.24  of the loan repayment may be deposited in a revolving loan fund 
 11.25  created by the nonprofit corporation originating the loan being 
 11.26  repaid for further distribution, consistent with the loan 
 11.27  criteria specified in subdivision 4.  
 11.28     (c) Administrative expenses of the board and nonprofit 
 11.29  corporations with whom the board enters into agreements under 
 11.30  subdivision 2, including expenses incurred by a nonprofit 
 11.31  corporation in providing financial, technical, managerial, and 
 11.32  marketing assistance to a business enterprise receiving a loan 
 11.33  under subdivision 4, may be paid out of the interest earned on 
 11.34  loans and out of interest earned on money invested by the state 
 11.35  board of investment under section 116M.16, subdivision 2, as may 
 11.36  be provided by the board.  
 12.1      Sec. 17.  Minnesota Statutes 2000, section 116M.18, is 
 12.2   amended by adding a subdivision to read: 
 12.3      Subd. 6a.  [NONPROFIT CORPORATION LOANS.] The board may 
 12.4   make loans to a nonprofit corporation with which it has entered 
 12.5   into an agreement under subdivision 1.  These loans must be used 
 12.6   to support a new or expanding business.  This support may 
 12.7   include such forms of financing as the sale of goods to the 
 12.8   business on installment or deferred payments, lease purchase 
 12.9   agreements, or royalty investments in the business.  The 
 12.10  nonprofit corporation must provide at least an equal match to 
 12.11  the loan received by the board.  The maximum loan available to 
 12.12  the nonprofit corporation under this subdivision is $50,000.  
 12.13  Loans made to the nonprofit corporation under this subdivision 
 12.14  may be made without interest.  Repayments made by the nonprofit 
 12.15  corporation must be deposited in the revolving fund created for 
 12.16  urban initiative grants. 
 12.17     Sec. 18.  Minnesota Statutes 2000, section 116M.18, 
 12.18  subdivision 8, is amended to read: 
 12.19     Subd. 8.  [REPORTING REQUIREMENTS.] A nonprofit corporation 
 12.20  that receives a challenge grant shall:  
 12.21     (1) submit an annual report to the board by September 30 of 
 12.22  each year that includes a description of projects supported by 
 12.23  the urban challenge grant program, an account of loans made 
 12.24  during the calendar year, the program's impact on minority 
 12.25  business enterprises and job creation for minority persons and 
 12.26  persons in low-income areas, the source and amount of money 
 12.27  collected and distributed by the urban challenge grant program, 
 12.28  the program's assets and liabilities, and an explanation of 
 12.29  administrative expenses; and 
 12.30     (2) provide for an independent annual audit to be performed 
 12.31  in accordance with generally accepted accounting practices and 
 12.32  auditing standards and submit a copy of each annual audit report 
 12.33  to the board. 
 12.34     Sec. 19.  Minnesota Statutes 2001 Supplement, section 
 12.35  268.022, subdivision 1, is amended to read: 
 12.36     Subdivision 1.  [DETERMINATION AND COLLECTION OF SPECIAL 
 13.1   ASSESSMENT.] (a) In addition to all other taxes, assessments, 
 13.2   and payment obligations under chapter 268, each employer, except 
 13.3   an employer making payments in lieu of taxes is liable for a 
 13.4   special assessment levied at the rate of one-tenth of one 
 13.5   percent per year until June 30, 2000, and seven-hundredths of 
 13.6   one percent per year on and after July 1, 2000, on all taxable 
 13.7   wages, as defined in section 268.035, subdivision 24.  The 
 13.8   assessment shall become due and be paid by each employer to the 
 13.9   department on the same schedule and in the same manner as other 
 13.10  taxes.  Until December 31, 2005, the assessment shall be at the 
 13.11  rate specified in paragraph (b).  On and after January 1, 2006, 
 13.12  the assessment shall be at the rate of seven-hundredths of one 
 13.13  percent on taxable wages. 
 13.14     (b) On or before October 1 of each year, the commissioner 
 13.15  shall determine the special assessment rate for the following 
 13.16  calendar year, which shall be no less than seven-hundredths of 
 13.17  one percent of taxable wages and no greater than one-tenth of 
 13.18  one percent of taxable wages.  The commissioner shall set the 
 13.19  rate no higher than necessary in order for the assessment to 
 13.20  collect funds adequate to fund the anticipated need for services 
 13.21  eligible for funding under this section while maintaining an 
 13.22  adequate reserve in the workforce development fund of between 
 13.23  $25,000,000 and $50,000,000.  In determining the rate, the 
 13.24  commissioner shall consider the balance in the workforce 
 13.25  development fund, available state and local unemployment 
 13.26  statistics, and any appropriate information regarding the 
 13.27  state's overall economic outlook.  On or before January 1 of 
 13.28  each year, the commissioner shall report to the legislature on 
 13.29  the rate chosen for that year, the reasons that rate was chosen, 
 13.30  and the expected financial implications of the chosen rate.  
 13.31  This paragraph expires December 31, 2005. 
 13.32     (b) (c) The special assessment levied under this section 
 13.33  shall not affect the computation of any other taxes, 
 13.34  assessments, or payment obligations due under this chapter. 
 13.35     Sec. 20.  Minnesota Statutes 2000, section 268.051, 
 13.36  subdivision 8, is amended to read: 
 14.1      Subd. 8.  [SOLVENCY SPECIAL ASSESSMENT FOR INTEREST ON 
 14.2   FEDERAL LOAN.] (a) If the fund balance is less than $150,000,000 
 14.3   on June 30 October 31 of any year, the commissioner, in 
 14.4   consultation with the commissioner of finance, determines that 
 14.5   an interest payment will be due during the following calendar 
 14.6   year on any loan from the federal unemployment trust fund under 
 14.7   section 268.194, subdivision 6, a solvency special assessment on 
 14.8   taxpaying employers will be in effect for the following calendar 
 14.9   year.  The taxpaying employer shall pay quarterly a solvency The 
 14.10  legislature authorizes the commissioner, in consultation with 
 14.11  the commissioner of finance, to determine the appropriate level 
 14.12  of the assessment, of ten from two percent to eight percent of 
 14.13  the quarterly unemployment taxes due, that will be necessary to 
 14.14  pay the interest due on the loan. 
 14.15     (b) The solvency special assessment shall be placed into a 
 14.16  special account from which the commissioner shall pay any 
 14.17  interest accruing that has accrued on any loan from the federal 
 14.18  unemployment trust fund provided for under section 268.194, 
 14.19  subdivision 6.  If, at the end of each calendar quarter, the 
 14.20  commissioner, in consultation with the commissioner of finance, 
 14.21  determines that the balance in this special account, including 
 14.22  interest earned on the special account, is more than is 
 14.23  necessary to pay the interest which has accrued on any loan as 
 14.24  of that date, or will accrue over the following calendar 
 14.25  quarter, the commissioner shall immediately pay to the fund the 
 14.26  amount in excess of that necessary to pay the interest on any 
 14.27  loan. 
 14.28     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 14.29  following final enactment. 
 14.30     Sec. 21.  Minnesota Statutes 2000, section 446A.07, 
 14.31  subdivision 4, is amended to read: 
 14.32     Subd. 4.  [INTENDED USE PLAN.] (a) The pollution control 
 14.33  agency public facilities authority shall annually prepare and 
 14.34  submit to the United States Environmental Protection Agency an 
 14.35  intended use plan.  The plan must identify the intended uses of 
 14.36  the amounts available to the water pollution control revolving 
 15.1   fund, including a list of wastewater treatment and storm water 
 15.2   projects and all other eligible activities to be funded during 
 15.3   the fiscal year.  Information regarding eligible activities must 
 15.4   be submitted to the pollution control agency by the appropriate 
 15.5   state agency or department within 30 days of written 
 15.6   notification by the pollution control agency.  
 15.7      (b) To be eligible for placement on the intended use plan: 
 15.8      (1) a project must be listed on the pollution control 
 15.9   agency's project priority list; 
 15.10     (2) the applicant must submit a written request to the 
 15.11  public facilities authority, including a brief description of 
 15.12  the project, a project cost estimate and the requested loan 
 15.13  amount, and a proposed project schedule; and 
 15.14     (3) for a construction loan, the project must have a 
 15.15  facility plan approved by the pollution control agency. 
 15.16     (c) The pollution control agency shall annually provide to 
 15.17  the public facilities authority its project priority list of 
 15.18  wastewater and storm water projects to be considered for funding.
 15.19  The pollution control agency public facilities authority may not 
 15.20  submit the plan until it has received the review and comment of 
 15.21  the authority pollution control agency or until 30 days have 
 15.22  elapsed since the plan was submitted to the authority pollution 
 15.23  control agency, whichever occurs first.  In addition, the public 
 15.24  facilities authority shall offer municipalities seeking 
 15.25  placement on the intended use plan an opportunity to review and 
 15.26  comment on the plan before it is adopted.  The plan may be 
 15.27  amended to add additional projects for consideration for funding 
 15.28  as it determines funds are available and additional projects are 
 15.29  able to proceed. 
 15.30     Sec. 22.  Minnesota Statutes 2000, section 446A.12, 
 15.31  subdivision 1, is amended to read: 
 15.32     Subdivision 1.  [BONDING AUTHORITY.] The authority may 
 15.33  issue negotiable bonds in a principal amount that the authority 
 15.34  determines necessary to provide sufficient funds for achieving 
 15.35  its purposes, including the making of loans and purchase of 
 15.36  securities, the payment of interest on bonds of the authority, 
 16.1   the establishment of reserves to secure its bonds, the payment 
 16.2   of fees to a third party providing credit enhancement, and the 
 16.3   payment of all other expenditures of the authority incident to 
 16.4   and necessary or convenient to carry out its corporate purposes 
 16.5   and powers, but not including the making of grants.  Bonds of 
 16.6   the authority may be issued as bonds or notes or in any other 
 16.7   form authorized by law.  The principal amount of bonds issued 
 16.8   and outstanding under this section at any time may not exceed 
 16.9   $850,000,000 $1,000,000,000, excluding bonds for which refunding 
 16.10  bonds or crossover refunding bonds have been issued. 
 16.11     Sec. 23.  Minnesota Statutes 2000, section 462A.04, 
 16.12  subdivision 1, is amended to read: 
 16.13     Subdivision 1.  [CREATION; MEMBERS.] There is created a 
 16.14  public body corporate and politic to be known as the "Minnesota 
 16.15  housing finance agency," which shall perform the governmental 
 16.16  functions and exercise the sovereign powers delegated to it in 
 16.17  this chapter in furtherance of the public policies and purposes 
 16.18  declared in section 462A.02.  The agency shall consist of the 
 16.19  commissioner of trade and economic development, state auditor, 
 16.20  and five six public members appointed by the governor with 
 16.21  advice and consent of the senate.  No more than two three public 
 16.22  members shall reside in the area of jurisdiction of the 
 16.23  metropolitan council as provided in section 473.123, subdivision 
 16.24  1, and no more than one public member shall reside in any one of 
 16.25  the development regions established under the provisions of 
 16.26  sections 462.381 to 462.396.  Each member shall hold office 
 16.27  until a successor has been appointed and has qualified.  At 
 16.28  least one member shall have private sector business experience.  
 16.29  A certificate of appointment or reappointment of any member 
 16.30  shall be conclusive evidence of the due and proper appointment 
 16.31  of the member. 
 16.32     Sec. 24.  Minnesota Statutes 2000, section 462A.04, 
 16.33  subdivision 4, is amended to read: 
 16.34     Subd. 4.  [CHAIRS.] The chair of the board of directors 
 16.35  shall be designated by the governor from among the public 
 16.36  members appointed.  The vice-chair of the board shall be the 
 17.1   commissioner of trade and economic development. 
 17.2      Sec. 25.  Laws 2001, First Special Session chapter 4, 
 17.3   article 1, section 2, subdivision 5, is amended to read: 
 17.4   Subd. 5.  Office of Tourism 
 17.5      10,219,000      10,111,000 
 17.6   To develop maximum private sector 
 17.7   involvement in tourism, $3,500,000 the 
 17.8   first year and $3,500,000 the second 
 17.9   year of the amounts appropriated for 
 17.10  marketing activities are contingent on 
 17.11  receipt of an equal contribution from 
 17.12  nonstate sources that have been 
 17.13  certified by the commissioner.  Up to 
 17.14  one-half of the match may be given in 
 17.15  in-kind contributions. 
 17.16  In order to maximize marketing grant 
 17.17  benefits, the commissioner must give 
 17.18  priority for joint venture marketing 
 17.19  grants to organizations with year-round 
 17.20  sustained tourism activities.  For 
 17.21  programs and projects submitted, the 
 17.22  commissioner must give priority to 
 17.23  those that encompass two or more areas 
 17.24  or that attract nonresident travelers 
 17.25  to the state. 
 17.26  If an appropriation for either year for 
 17.27  grants is not sufficient, the 
 17.28  appropriation for the other year is 
 17.29  available for it. 
 17.30  The commissioner may use grant dollars 
 17.31  or the value of in-kind services to 
 17.32  provide the state contribution for the 
 17.33  partnership program. 
 17.34  Any unexpended money from general fund 
 17.35  appropriations made under this 
 17.36  subdivision does not cancel but must be 
 17.37  placed in a special advertising account 
 17.38  for use by the office of tourism to 
 17.39  purchase additional media. 
 17.40  Of this amount, $50,000 the first year 
 17.41  is for a one-time grant to the 
 17.42  Mississippi River parkway commission to 
 17.43  support the increased promotion of 
 17.44  tourism along the Great River Road. 
 17.45  $829,000 the first year and $829,000 
 17.46  the second year are for the Minnesota 
 17.47  film board.  $329,000 of this 
 17.48  appropriation in each year is available 
 17.49  only upon receipt by the board of $1 in 
 17.50  matching contributions of money or 
 17.51  in-kind from nonstate sources for every 
 17.52  $3 provided by this appropriation.  Of 
 17.53  this amount, $500,000 the first year 
 17.54  and $500,000 the second year are for 
 17.55  grants to the Minnesota film board for 
 17.56  a film production jobs fund to 
 17.57  stimulate film production in 
 17.58  Minnesota.  This appropriation is to 
 17.59  reimburse film and television producers 
 17.60  for up to ten percent of the documented 
 18.1   wages and cost of services that they 
 18.2   paid to Minnesotans for film and 
 18.3   television production after January 1, 
 18.4   2001. 
 18.5   $150,000 the first year is for 
 18.6   partnerships with local tourism 
 18.7   interests to operate travel information 
 18.8   centers.  This is a one-time 
 18.9   appropriation. This appropriation is 
 18.10  available until spent. 
 18.11     Sec. 26.  Laws 2001, First Special Session chapter 4, 
 18.12  article 2, section 31, is amended to read: 
 18.13     Sec. 31.  [WORKFORCE ENHANCEMENT FEE.] 
 18.14     Subdivision 1.  [FEE.] Notwithstanding Minnesota Statutes, 
 18.15  section 268.022, effective January 1, 2002, the special 
 18.16  assessment under that section on taxable wages as defined in 
 18.17  Minnesota Statutes, section 268.035, subdivision 24, is 
 18.18  suspended until December 31, 2005.  Effective January 1, 2002, 
 18.19  there shall be assessed, in addition to unemployment taxes due 
 18.20  under Minnesota Statutes, section 268.051, a workforce 
 18.21  enhancement fee of .09 12 percent on taxable wages.  This fee 
 18.22  shall be due and be paid on the same schedule and in the same 
 18.23  manner as unemployment taxes under Minnesota Statutes, section 
 18.24  268.051.  Any amount past due under this section shall be 
 18.25  subject to the same interest and collection provisions as 
 18.26  unemployment taxes.  This fee shall expire on December 31, 2005. 
 18.27     Subd. 2.  [USE OF FUNDS COLLECTED.] An amount equal to 
 18.28  .07 0.1 percent on taxable wages shall be deposited in the 
 18.29  workforce development fund provided for under Minnesota 
 18.30  Statutes, section 268.022, subdivision 2.  An amount equal to 
 18.31  .02 percent on taxable wages, less reimbursement for collection 
 18.32  costs of the total amount of the fee, shall be deposited in the 
 18.33  unemployment insurance technology initiative account provided 
 18.34  for in section 32. 
 18.35     Sec. 27.  [FARMLAND FOODS EXTRA BENEFITS.] 
 18.36     Subdivision 1.  [EXTRA BENEFITS; AVAILABILITY.] Extra 
 18.37  unemployment benefits are available to an applicant if the 
 18.38  applicant was permanently laid off due to lack of work on or 
 18.39  after July 8, 2001, from the Farmland Foods Company in Freeborn 
 18.40  county. 
 19.1      Subd. 2.  [PAYMENT FROM FUND; EFFECT ON EMPLOYER.] Extra 
 19.2   unemployment benefits are payable from the fund.  Extra 
 19.3   unemployment benefits shall not affect the future tax rate of a 
 19.4   taxpaying employer nor be charged to the reimbursing account of 
 19.5   a government or nonprofit employer. 
 19.6      Subd. 3.  [ELIGIBILITY CONDITIONS.] An applicant is 
 19.7   eligible to receive extra unemployment benefits under this 
 19.8   section for any week until July 5, 2003, as a result of a layoff 
 19.9   described under subdivision 1, if: 
 19.10     (1) a majority of the applicant's wage credits were with 
 19.11  Farmland Foods Company; 
 19.12     (2) except as provided in subdivision 6, the applicant 
 19.13  meets the eligibility requirements of Minnesota Statutes, 
 19.14  section 268.085; 
 19.15     (3) the applicant is not subject to a disqualification 
 19.16  under Minnesota Statutes, section 268.095; 
 19.17     (4) the applicant is not entitled to regular unemployment 
 19.18  benefits and the applicant is not entitled to receive 
 19.19  unemployment benefits under any other state or federal law for 
 19.20  that week; and 
 19.21     (5) the applicant is enrolled in, or has within the last 
 19.22  two weeks successfully completed, a program that qualifies as 
 19.23  reemployment assistance training under the dislocated worker 
 19.24  program, except that an applicant whose training is scheduled to 
 19.25  begin in more than 30 days may be considered to be in training 
 19.26  if:  (i) the applicant's chosen training program does not offer 
 19.27  an available start date within 30 days; (ii) the applicant is 
 19.28  scheduled to begin training on the earliest available start date 
 19.29  for the chosen training program; and (iii) the applicant is 
 19.30  scheduled to begin training in no more than 60 days. 
 19.31     If an applicant qualifies for a new regular benefit account 
 19.32  at any time after exhausting regular unemployment benefits as a 
 19.33  result of the layoff under subdivision 1, the applicant must 
 19.34  apply for and exhaust entitlement to those new regular 
 19.35  unemployment benefits. 
 19.36     Subd. 4.  [WEEKLY AMOUNT OF EXTRA BENEFITS.] The weekly 
 20.1   extra unemployment benefits amount available to an applicant is 
 20.2   the same as the applicant's weekly regular unemployment benefit 
 20.3   amount on the benefit account established as a result of a 
 20.4   layoff under subdivision 1. 
 20.5      Subd. 5.  [MAXIMUM AMOUNT OF EXTRA UNEMPLOYMENT 
 20.6   BENEFITS.] The maximum amount of extra unemployment benefits 
 20.7   available is 26 times the applicant's weekly extra unemployment 
 20.8   benefits amount.  Any type of unemployment benefits, under any 
 20.9   state or federal law, the applicant may be entitled to after 
 20.10  exhausting regular unemployment benefits as a result of a layoff 
 20.11  under subdivision 1, shall reduce the maximum amount of extra 
 20.12  unemployment benefits available.  The reduction in total extra 
 20.13  unemployment benefits available shall equal the total amount of 
 20.14  any other type of unemployment benefits available.  
 20.15     Subd. 6.  [PROGRAM EXPIRATION.] This extra unemployment 
 20.16  benefit program expires on July 5, 2003.  No extra unemployment 
 20.17  benefits shall be paid for any week after the expiration of this 
 20.18  program. 
 20.19     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 20.20  following final enactment and is retroactive to July 8, 2001. 
 20.21     Sec. 28.  [AIRLINE AND RELATED INDUSTRIES EXTRA BENEFITS.] 
 20.22     Subdivision 1.  [EXTRA BENEFITS; AVAILABILITY.] Extra 
 20.23  unemployment benefits are available to an applicant who has a 
 20.24  benefit account effective March 11, 2001, or thereafter if the 
 20.25  applicant was laid off due to lack of work from Northwest 
 20.26  Airlines, Sun Country Airlines, Mesaba Airlines, United 
 20.27  Airlines, LSG Sky Chefs, Air Wisconsin, American Airlines, 
 20.28  American TransAir, Champion Air, Chautaugua Airlines, 
 20.29  Continental Airlines, Emery Worldwide Air, Great Lakes Airlines, 
 20.30  PanAm International, Skyway Airlines, and U.S. Airways.  
 20.31     Subd. 2.  [PAYMENT FROM FUND; EFFECT ON EMPLOYER.] Extra 
 20.32  unemployment benefits are payable from the fund.  
 20.33     Subd. 3.  [ELIGIBILITY CONDITIONS.] An applicant described 
 20.34  under subdivision 1 is eligible to receive extra unemployment 
 20.35  benefits under this section for any week through March 15, 2003, 
 20.36  if:  
 21.1      (1) a majority of the applicant's wage credits were with an 
 21.2   employer specified under subdivision 1; 
 21.3      (2) the applicant meets the eligibility requirements of 
 21.4   Minnesota Statutes, section 268.085; 
 21.5      (3) the applicant is not subject to a disqualification 
 21.6   under Minnesota Statutes, section 268.095; 
 21.7      (4) the applicant is not entitled to any regular, 
 21.8   additional, or extended unemployment benefits for that week and 
 21.9   the applicant is not entitled to receive unemployment benefits 
 21.10  under any other state or federal law for that week; 
 21.11     (5) the applicant is enrolled in, or has within the last 
 21.12  two weeks successfully completed, a program that qualifies as 
 21.13  reemployment assistance training under the Minnesota dislocated 
 21.14  worker program except that an applicant whose training is 
 21.15  scheduled to begin in more than 30 days may be considered to be 
 21.16  in training if:  (i) the applicant's chosen training program 
 21.17  does not offer an available start date within 30 days; (ii) the 
 21.18  applicant is scheduled to begin training on the earliest 
 21.19  available start date for the chosen training program; and (iii) 
 21.20  the applicant is scheduled to begin training in no more than 60 
 21.21  days; and 
 21.22     (6) an applicant qualifies for a new regular benefit 
 21.23  account at any time after exhausting regular unemployment 
 21.24  benefits as a result of a layoff under subdivision 1, the 
 21.25  applicant must apply for and exhaust entitlement to those new 
 21.26  regular or any other type of unemployment benefits under any 
 21.27  state or federal law. 
 21.28     Subd. 4.  [WEEKLY AMOUNT OF EXTRA BENEFITS.] The weekly 
 21.29  extra unemployment benefits amount available to an applicant is 
 21.30  the same as the applicant's weekly regular unemployment benefit 
 21.31  amount on the benefit account established as a result of a 
 21.32  layoff under subdivision 1. 
 21.33     Subd. 5.  [MAXIMUM AMOUNT OF EXTRA UNEMPLOYMENT 
 21.34  BENEFITS.] The maximum amount of extra unemployment benefits 
 21.35  available is 13 times the applicant's weekly extra unemployment 
 21.36  benefits amount.  Any type of unemployment benefits, under any 
 22.1   state or federal law, the applicant may be entitled to after 
 22.2   exhausting regular unemployment benefits as a result of a layoff 
 22.3   under subdivision 1, shall reduce the maximum amount of extra 
 22.4   unemployment benefits available.  The reduction in total extra 
 22.5   unemployment benefits available shall equal the total amount of 
 22.6   any other type of unemployment benefits available.  
 22.7      Subd. 6.  [PROGRAM EXPIRATION.] This extra unemployment 
 22.8   benefit program expires on January 3, 2004.  No extra 
 22.9   unemployment benefits shall be paid for any week after the 
 22.10  expiration of this program. 
 22.11     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 22.12  following final enactment and is retroactive to September 16, 
 22.13  2001. 
 22.14     Sec. 29.  [FINDINGS.] 
 22.15     The legislature finds that the extension of unemployment 
 22.16  benefits as provided in this act is appropriate based on the 
 22.17  unique circumstances of airline and airport businesses.  
 22.18  Specifically, the extension is appropriate because: 
 22.19     (1) a national emergency contributed to the unemployment 
 22.20  experienced by the affected applicants; 
 22.21     (2) the federal government shut down the airline industry 
 22.22  after September 11, 2001; and 
 22.23     (3) the airline industry received substantial assistance 
 22.24  from the federal government.  
 22.25     Sec. 30.  [REINSTATEMENT OF LAW.] 
 22.26     Notwithstanding its repeal by Laws 2001, First Special 
 22.27  Session chapter 4, article 2, section 41, Minnesota Statutes 
 22.28  2000, section 268.976, as amended by Laws 2001, chapter 175, 
 22.29  section 50, is revived. 
 22.30     Sec. 31.  [REPEALER.] 
 22.31     Minnesota Statutes 2000, sections 116J.9672; and 116J.9673, 
 22.32  are repealed.