1.1                          A bill for an act 
  1.2             relating to economic development; modifying the rural 
  1.3             challenge grant program; increasing the amount that 
  1.4             may be used to administer the contamination cleanup 
  1.5             grant program; transferring world trade center duties; 
  1.6             eliminating a report; authorizing job training 
  1.7             vouchers for low-income persons; amending Minnesota 
  1.8             Statutes 2002, sections 17.101, subdivision 1; 
  1.9             115C.08, subdivision 4; 116J.415, subdivisions 1, 2, 
  1.10            4, 5, 7, 11; 116J.553, subdivision 2; 116J.554, 
  1.11            subdivision 2; 116J.955, subdivision 2; 116J.966, 
  1.12            subdivision 1; 116L.02; 116L.04, subdivisions 1, 1a; 
  1.13            116M.14, subdivision 4; repealing Minnesota Statutes 
  1.14            2002, sections 13.598, subdivision 2; 116J.411, 
  1.15            subdivision 3; 116J.415, subdivisions 6, 9, 10; 
  1.16            116J.693; 116J.9665; 116L.03, subdivision 7. 
  1.17  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.18     Section 1.  Minnesota Statutes 2002, section 17.101, 
  1.19  subdivision 1, is amended to read: 
  1.20     Subdivision 1.  [DEPARTMENTAL DUTIES.] For the purposes of 
  1.21  expanding, improving, and developing production and marketing of 
  1.22  products of Minnesota agriculture, the commissioner shall 
  1.23  encourage and promote the production and marketing of these 
  1.24  products by means of:  
  1.25     (a) advertising Minnesota agricultural products; 
  1.26     (b) assisting state agricultural commodity organizations; 
  1.27     (c) developing methods to increase processing and marketing 
  1.28  of agricultural commodities including commodities not being 
  1.29  produced in Minnesota on a commercial scale, but which may have 
  1.30  economic potential in national and international markets; 
  1.31     (d) investigating and identifying new marketing technology 
  2.1   and methods to enhance the competitive position of Minnesota 
  2.2   agricultural products; 
  2.3      (e) evaluating livestock marketing opportunities; 
  2.4      (f) assessing and developing national and international 
  2.5   markets for Minnesota agricultural products; 
  2.6      (g) studying the conversion of raw agricultural products to 
  2.7   manufactured products including ethanol; 
  2.8      (h) hosting the visits of foreign trade teams to Minnesota 
  2.9   and defraying the teams' expenses; 
  2.10     (i) assisting Minnesota agricultural businesses desiring to 
  2.11  sell their products; 
  2.12     (j) conducting research to eliminate or reduce specific 
  2.13  production or technological barriers to market development and 
  2.14  trade; and 
  2.15     (k) other activities the commissioner deems appropriate to 
  2.16  promote Minnesota agricultural products, provided that the 
  2.17  activities do not duplicate programs or services provided by the 
  2.18  Minnesota trade division or the Minnesota world trade center. 
  2.19     Sec. 2.  Minnesota Statutes 2002, section 115C.08, 
  2.20  subdivision 4, is amended to read: 
  2.21     Subd. 4.  [EXPENDITURES.] (a) Money in the fund may only be 
  2.22  spent: 
  2.23     (1) to administer the petroleum tank release cleanup 
  2.24  program established in this chapter; 
  2.25     (2) for agency administrative costs under sections 116.46 
  2.26  to 116.50, sections 115C.03 to 115C.06, and costs of corrective 
  2.27  action taken by the agency under section 115C.03, including 
  2.28  investigations; 
  2.29     (3) for costs of recovering expenses of corrective actions 
  2.30  under section 115C.04; 
  2.31     (4) for training, certification, and rulemaking under 
  2.32  sections 116.46 to 116.50; 
  2.33     (5) for agency administrative costs of enforcing rules 
  2.34  governing the construction, installation, operation, and closure 
  2.35  of aboveground and underground petroleum storage tanks; 
  2.36     (6) for reimbursement of the environmental response, 
  3.1   compensation, and compliance account under subdivision 5 and 
  3.2   section 115B.26, subdivision 4; 
  3.3      (7) for administrative and staff costs as set by the board 
  3.4   to administer the petroleum tank release program established in 
  3.5   this chapter; 
  3.6      (8) for corrective action performance audits under section 
  3.7   115C.093; and 
  3.8      (9) for contamination cleanup grants, as provided in 
  3.9   paragraph (c). 
  3.10     (b) Except as provided in paragraph (c), money in the fund 
  3.11  is appropriated to the board to make reimbursements or payments 
  3.12  under this section. 
  3.13     (c) $6,200,000 is annually appropriated from the fund to 
  3.14  the commissioner of trade and economic development for 
  3.15  contamination cleanup grants under section 116J.554.  Of this 
  3.16  amount, the commissioner may spend up to $120,000 $180,000 
  3.17  annually for administration of the contamination cleanup grant 
  3.18  program.  The appropriation does not cancel and is available 
  3.19  until expended.  The appropriation shall not be withdrawn from 
  3.20  the fund nor the fund balance reduced until the funds are 
  3.21  requested by the commissioner of trade and economic 
  3.22  development.  The commissioner shall schedule requests for 
  3.23  withdrawals from the fund to minimize the necessity to impose 
  3.24  the fee authorized by subdivision 2.  Unless otherwise provided, 
  3.25  the appropriation in this paragraph may be used for: 
  3.26     (1) project costs at a qualifying site if a portion of the 
  3.27  cleanup costs are attributable to petroleum contamination; and 
  3.28     (2) the costs of performing contamination investigation if 
  3.29  there is a reasonable basis to suspect the contamination is 
  3.30  attributable to petroleum. 
  3.31     <b>[EFFECTIVE DATE.]</b> This section is effective June 30, 2003. 
  3.32     Sec. 3.  Minnesota Statutes 2002, section 116J.415, 
  3.33  subdivision 1, is amended to read: 
  3.34     Subdivision 1.  [ORGANIZATION.] The commissioner shall make 
  3.35  challenge grants to regional organizations, for the purpose of 
  3.36  providing financial assistance to encourage private investment, 
  4.1   to provide jobs for low-income persons, and to promote economic 
  4.2   development in the rural areas of the state. 
  4.3      Sec. 4.  Minnesota Statutes 2002, section 116J.415, 
  4.4   subdivision 2, is amended to read: 
  4.5      Subd. 2.  [FUNDING REGIONS.] The commissioner shall divide 
  4.6   the state outside of the metropolitan area as defined in section 
  4.7   473.121, subdivision 2, into six regions.  A region's boundaries 
  4.8   must be coterminous with the boundaries of one or more of the 
  4.9   development regions established under section 462.385.  The 
  4.10  commissioner shall designate up to $1,000,000 for each region, 
  4.11  to be awarded over a period of three years allocate all funds 
  4.12  remaining in each regional subaccount of the rural 
  4.13  rehabilitation account, as established under section 116J.955, 
  4.14  to each respective regional organization.  The money designated 
  4.15  to each region must be used for revolving loans assistance 
  4.16  authorized in this section.  
  4.17     Sec. 5.  Minnesota Statutes 2002, section 116J.415, 
  4.18  subdivision 4, is amended to read: 
  4.19     Subd. 4.  [REVOLVING LOAN FUND.] A regional organization 
  4.20  shall establish a commissioner certified revolving loan fund to 
  4.21  provide loans to new and expanding businesses in rural Minnesota 
  4.22  to promote economic development in rural Minnesota.  Eligible 
  4.23  business enterprises include technologically innovative 
  4.24  industries, value-added manufacturing, agriprocessing, 
  4.25  information industries, and agricultural marketing.  Loan 
  4.26  applications given preliminary approval by the organization must 
  4.27  be forwarded to the commissioner for final approval.  The amount 
  4.28  of state money allocated for each loan is appropriated from the 
  4.29  rural rehabilitation account established in section 116J.955 to 
  4.30  the organization's regional revolving loan fund when the 
  4.31  commissioner gives final approval for each loan.  The amount of 
  4.32  money appropriated from the rural rehabilitation account may not 
  4.33  exceed 50 percent for each loan.  The amount of nonpublic money 
  4.34  must equal at least 50 percent for each loan.  Funds may be used 
  4.35  to provide loans, loan guarantees, interest buy-downs, and other 
  4.36  forms of participation with private sources of financing, 
  5.1   provided that the financial assistance must be for a principal 
  5.2   amount that does not exceed one-half of the cost of the project 
  5.3   for which financing is sought. 
  5.4      Sec. 6.  Minnesota Statutes 2002, section 116J.415, 
  5.5   subdivision 5, is amended to read: 
  5.6      Subd. 5.  [LOAN ASSISTANCE CRITERIA.] The following 
  5.7   criteria apply to loans made under Projects supported through 
  5.8   the challenge grant program must be used principally to benefit 
  5.9   low-income persons by:  
  5.10     (1) loans must be made to businesses that are not likely to 
  5.11  undertake a project for which loans are sought without 
  5.12  assistance from the challenge grant program; 
  5.13     (2) a loan must be used for a project designed principally 
  5.14  to benefit low-income persons through the creation of job or 
  5.15  business opportunities for them; 
  5.16     (3) the minimum loan is $5,000 and the maximum is $200,000; 
  5.17     (4) a loan may not exceed 50 percent of the total cost of 
  5.18  an individual project; 
  5.19     (5) a loan may not be used for a retail development 
  5.20  project; and 
  5.21     (6) a business applying for a loan, except a 
  5.22  microenterprise loan under subdivision 6, must be sponsored by a 
  5.23  resolution of the governing body of the local governmental unit 
  5.24  within whose jurisdiction the project is located. 
  5.25     (1) creating new jobs or retaining existing jobs; 
  5.26     (2) increasing the local tax base; 
  5.27     (3) demonstrating that investment of public dollars induces 
  5.28  private funds; 
  5.29     (4) providing higher wage levels to the community or adding 
  5.30  value to current workforce skills; 
  5.31     (5) retaining existing business; or 
  5.32     (6) attracting out-of-state business. 
  5.33     Sec. 7.  Minnesota Statutes 2002, section 116J.415, 
  5.34  subdivision 7, is amended to read: 
  5.35     Subd. 7.  [REVOLVING FUND ADMINISTRATION.] (a) The 
  5.36  commissioner shall establish a minimum interest rate for loans 
  6.1   to ensure that necessary management costs are covered.  
  6.2      (b) Loan Repayment amounts equal to one-half of the 
  6.3   principal and interest must be deposited in the rural 
  6.4   rehabilitation revolving fund for challenge grants to the region 
  6.5   from which the money was originally designated.  The remaining 
  6.6   amount of the loan repayment may must be deposited in the 
  6.7   regional revolving loan fund for further distribution by the 
  6.8   regional organization, consistent with the loan criteria 
  6.9   specified in subdivisions 4 and 5. 
  6.10     (c) The first $1,000,000 of revolving loans for each region 
  6.11  must be matched by nonstate sources.  The matching requirement 
  6.12  does not apply to loans made under paragraph (b). 
  6.13     (d) Administrative expenses of each organization may be 
  6.14  paid out of the interest earned on loans and on interest earned 
  6.15  on money invested by the state board of investment under section 
  6.16  116J.413, subdivision 2. 
  6.17     Sec. 8.  Minnesota Statutes 2002, section 116J.415, 
  6.18  subdivision 11, is amended to read: 
  6.19     Subd. 11.  [REPORTING REQUIREMENTS.] An organization that 
  6.20  receives a challenge grant shall: 
  6.21     (1) submit an annual report to the commissioner by February 
  6.22  15 of each August 30 for the preceding fiscal year that includes 
  6.23  a description of projects supported by the challenge grant 
  6.24  program, an account of loans made, written off, and fully paid 
  6.25  during the calendar year, the source and amount of money 
  6.26  collected and distributed by the challenge grant program 
  6.27  regional revolving fund, and the program's assets and 
  6.28  liabilities, and an explanation of administrative 
  6.29  expenses funds' cash balance and loans receivable; and 
  6.30     (2) provide for an independent annual audit to be performed 
  6.31  in accordance with generally accepted accounting practices and 
  6.32  auditing standards and submit a copy of each annual audit report 
  6.33  to the commissioner. 
  6.34     Sec. 9.  Minnesota Statutes 2002, section 116J.553, 
  6.35  subdivision 2, is amended to read: 
  6.36     Subd. 2.  [REQUIRED CONTENT.] (a) The commissioner shall 
  7.1   prescribe and provide the application form.  The application 
  7.2   must include at least the following information: 
  7.3      (1) identification of the site; 
  7.4      (2) an approved response action plan for the site, 
  7.5   including the results of engineering and other tests showing the 
  7.6   nature and extent of the release or threatened release of 
  7.7   contaminants at the site; 
  7.8      (3) a detailed estimate, along with necessary supporting 
  7.9   evidence, of the total cleanup costs for the site; 
  7.10     (4) an appraisal of the current market value of the 
  7.11  property, separately taking into account the effect of the 
  7.12  contaminants on the market value, prepared by a qualified 
  7.13  independent appraiser licensed under chapter 82B using accepted 
  7.14  appraisal methodology or, the estimated market value of the 
  7.15  property for the latest year shown on the most recent valuation 
  7.16  notice used under section 273.121; 
  7.17     (5) an assessment of the development potential or likely 
  7.18  use of the site after completion of the response action plan, 
  7.19  including any specific commitments from third parties to 
  7.20  construct improvements on the site; 
  7.21     (6) the manner in which the municipality will meet the 
  7.22  local match requirement; and 
  7.23     (7) any additional information or material that the 
  7.24  commissioner prescribes. 
  7.25     (b) A response action plan is not required as a condition 
  7.26  to receive a grant under section 116J.554, subdivision 1, 
  7.27  paragraph (c). 
  7.28     Sec. 10.  Minnesota Statutes 2002, section 116J.554, 
  7.29  subdivision 2, is amended to read: 
  7.30     Subd. 2.  [QUALIFYING SITES.] A site qualifies for a grant 
  7.31  under this section, if the following criteria are met: 
  7.32     (1) the site is not scheduled for funding during the 
  7.33  current or next fiscal year under the Comprehensive 
  7.34  Environmental Response, Compensation, and Liability Act, United 
  7.35  States Code, title 42, section 9601, et seq. or under the 
  7.36  Environmental Response, and Liability Act under sections 115B.01 
  8.1   to 115B.24; 
  8.2      (2) the appraised value of the site after adjusting for the 
  8.3   effect on the value of the presence or possible presence of 
  8.4   contaminants using accepted appraisal methodology, or the 
  8.5   current market value of the site as issued under section 
  8.6   273.121, separately taking into account the effect of the 
  8.7   contaminants on the market value, (i) is less than 75 percent of 
  8.8   the estimated project costs for the site or (ii) is less than or 
  8.9   equal to the estimated cleanup costs for the site and the 
  8.10  cleanup costs equal or exceed $3 per square foot for the site; 
  8.11  and 
  8.12     (3) if the proposed cleanup is completed, it is expected 
  8.13  that the site will be improved with buildings or other 
  8.14  improvements and these improvements will provide a substantial 
  8.15  increase in the property tax base within a reasonable period of 
  8.16  time or the site will be used for an important publicly owned or 
  8.17  tax-exempt facility. 
  8.18     Sec. 11.  Minnesota Statutes 2002, section 116J.955, 
  8.19  subdivision 2, is amended to read: 
  8.20     Subd. 2.  [EXPENDITURE OF ACCOUNT.] The commissioner may 
  8.21  use the rural rehabilitation account for the purposes that are 
  8.22  allowed under the Minnesota rural rehabilitation corporation's 
  8.23  charter and agreement with, as may be amended or modified by, 
  8.24  the United States Secretary of Agriculture as provided in Public 
  8.25  Law Number 499, 81st Congress, enacted May 3, 1950 and as 
  8.26  allowed under Laws 1987, chapter 386, article 1.  Not more than 
  8.27  three percent of the combined book value of the Minnesota rural 
  8.28  rehabilitation corporation's assets account and the regional 
  8.29  revolving funds may be used for administrative purposes in a 
  8.30  year without approval of the United States Secretary of 
  8.31  Agriculture.  Any funds used for administrative purposes may 
  8.32  only be drawn from money remaining in the Minnesota rural 
  8.33  rehabilitation account.  
  8.34     Sec. 12.  Minnesota Statutes 2002, section 116J.966, 
  8.35  subdivision 1, is amended to read: 
  8.36     Subdivision 1.  [GENERALLY.] (a) The commissioner shall 
  9.1   promote, develop, and facilitate trade and foreign investment in 
  9.2   Minnesota.  In furtherance of these goals, and in addition to 
  9.3   the powers granted by section 116J.035, the commissioner may:  
  9.4      (1) locate, develop, and promote international markets for 
  9.5   Minnesota products and services; 
  9.6      (2) arrange and lead trade missions to countries with 
  9.7   promising international markets for Minnesota goods, technology, 
  9.8   services, and agricultural products; 
  9.9      (3) promote Minnesota products and services at domestic and 
  9.10  international trade shows; 
  9.11     (4) organize, promote, and present domestic and 
  9.12  international trade shows featuring Minnesota products and 
  9.13  services; 
  9.14     (5) host trade delegations and assist foreign traders in 
  9.15  contacting appropriate Minnesota businesses and investments; 
  9.16     (6) develop contacts with Minnesota businesses and gather 
  9.17  and provide information to assist them in locating and 
  9.18  communicating with international trading or joint venture 
  9.19  counterparts; 
  9.20     (7) provide information, education, and counseling services 
  9.21  to Minnesota businesses regarding the economic, commercial, 
  9.22  legal, and cultural contexts of international trade; 
  9.23     (8) provide Minnesota businesses with international trade 
  9.24  leads and information about the availability and sources of 
  9.25  services relating to international trade, such as export 
  9.26  financing, licensing, freight forwarding, international 
  9.27  advertising, translation, and custom brokering; 
  9.28     (9) locate, attract, and promote foreign direct investment 
  9.29  and business development in Minnesota to enhance employment 
  9.30  opportunities in Minnesota; 
  9.31     (10) provide foreign businesses and investors desiring to 
  9.32  locate facilities in Minnesota information regarding sources of 
  9.33  governmental, legal, real estate, financial, and business 
  9.34  services; 
  9.35     (11) enter into contracts or other agreements with private 
  9.36  persons and public entities, including agreements to establish 
 10.1   and maintain offices and other types of representation in 
 10.2   foreign countries, to carry out the purposes of promoting 
 10.3   international trade and attracting investment from foreign 
 10.4   countries to Minnesota and to carry out this section, without 
 10.5   regard to section 16C.06; and 
 10.6      (12) market trade-related materials to businesses and 
 10.7   organizations, and the proceeds of which must be placed in a 
 10.8   special revolving account and are appropriated to the 
 10.9   commissioner to prepare and distribute trade-related materials.  
 10.10     (b) The programs and activities of the commissioner of 
 10.11  trade and economic development and the Minnesota trade division 
 10.12  may not duplicate programs and activities of the commissioner of 
 10.13  agriculture or the Minnesota world trade center. 
 10.14     (c) The commissioner shall notify the chairs of the senate 
 10.15  finance and house appropriations committees of each agreement 
 10.16  under this subdivision to establish and maintain an office or 
 10.17  other type of representation in a foreign country. 
 10.18     Sec. 13.  Minnesota Statutes 2002, section 116L.02, is 
 10.19  amended to read: 
 10.20     116L.02 [JOB SKILLS PARTNERSHIP PROGRAM.] 
 10.21     (a) The Minnesota job skills partnership program is created 
 10.22  to act as a catalyst to bring together employers with specific 
 10.23  training needs with educational or other nonprofit institutions 
 10.24  which can design programs to fill those needs.  The partnership 
 10.25  shall work closely with employers to prepare, train, and place 
 10.26  prospective or incumbent workers in identifiable positions as 
 10.27  well as assisting educational or other nonprofit institutions in 
 10.28  developing training programs that coincide with current and 
 10.29  future employer requirements.  The partnership shall provide 
 10.30  grants to educational or other nonprofit institutions for the 
 10.31  purpose of training workers.  A participating business must 
 10.32  match the grant-in-aid made by the Minnesota job skills 
 10.33  partnership.  The match may be in the form of funding, 
 10.34  equipment, or faculty. 
 10.35     (b) The partnership program shall administer the health 
 10.36  care and human services worker training and retention program 
 11.1   under sections 116L.10 to 116L.15. 
 11.2      (c) The partnership program is authorized to use funds to 
 11.3   provide vouchers for individuals who have incomes at or below 
 11.4   200 percent of the federal poverty line.  The board may grant 
 11.5   funds to eligible recipients to pay for vouchers for 
 11.6   board-certified training.  Eligible recipients of grants may 
 11.7   include public, private, or nonprofit entities that provide 
 11.8   employment services to low-income individuals.  
 11.9      Sec. 14.  Minnesota Statutes 2002, section 116L.04, 
 11.10  subdivision 1, is amended to read: 
 11.11     Subdivision 1.  [PARTNERSHIP PROGRAM.] (a) The partnership 
 11.12  program may provide grants-in-aid to educational or other 
 11.13  nonprofit educational institutions using the following 
 11.14  guidelines:  
 11.15     (1) the educational or other nonprofit educational 
 11.16  institution is a provider of training within the state in either 
 11.17  the public or private sector; 
 11.18     (2) the program involves skills training that is an area of 
 11.19  employment need; and 
 11.20     (3) preference will be given to educational or other 
 11.21  nonprofit training institutions which serve economically 
 11.22  disadvantaged people, minorities, or those who are victims of 
 11.23  economic dislocation and to businesses located in rural areas.  
 11.24     (b) A single grant to any one institution shall not exceed 
 11.25  $400,000.  Up to 25 percent of a grant may be used for 
 11.26  preemployment training. 
 11.27     Sec. 15.  Minnesota Statutes 2002, section 116L.04, 
 11.28  subdivision 1a, is amended to read: 
 11.29     Subd. 1a.  [PATHWAYS PROGRAM.] The pathways program may 
 11.30  provide grants-in-aid for developing programs which assist in 
 11.31  the transition of persons from welfare to work and assist 
 11.32  individuals at or below 200 percent of the federal poverty 
 11.33  guidelines.  The program is to be operated by the board.  The 
 11.34  board shall consult and coordinate with program administrators 
 11.35  at the department of economic security to design and provide 
 11.36  services for temporary assistance for needy families recipients. 
 12.1      Pathways grants-in-aid may be awarded to educational or 
 12.2   other nonprofit training institutions for education and training 
 12.3   programs and services supporting education and training programs 
 12.4   that serve eligible recipients. 
 12.5      Preference shall be given to projects that: 
 12.6      (1) provide employment with benefits paid to employees; 
 12.7      (2) provide employment where there are defined career paths 
 12.8   for trainees; 
 12.9      (3) pilot the development of an educational pathway that 
 12.10  can be used on a continuing basis for transitioning persons from 
 12.11  welfare to work; and 
 12.12     (4) demonstrate the active participation of department of 
 12.13  economic security workforce centers, Minnesota state college and 
 12.14  university institutions and other educational institutions, and 
 12.15  local welfare agencies. 
 12.16     Pathways projects must demonstrate the active involvement 
 12.17  and financial commitment of private business.  Pathways projects 
 12.18  must be matched with cash or in-kind contributions on at least a 
 12.19  one-to-one ratio by participating private business. 
 12.20     A single grant to any one institution shall not exceed 
 12.21  $400,000.  Up to 25 percent of a grant may be used for 
 12.22  preemployment training.  
 12.23     The board shall annually, by March 31, report to the 
 12.24  commissioners of economic security and trade and economic 
 12.25  development on pathways programs, including the number of 
 12.26  recipients participating in the program, the number of 
 12.27  participants placed in employment, the salary and benefits they 
 12.28  receive, and the state program costs per participant. 
 12.29     Sec. 16.  Minnesota Statutes 2002, section 116M.14, 
 12.30  subdivision 4, is amended to read: 
 12.31     Subd. 4.  [LOW-INCOME AREA.] "Low-income area" means 
 12.32  Minneapolis, St. Paul, and those cities in the metropolitan area 
 12.33  as defined in section 473.121, subdivision 2, that have an 
 12.34  average income that is below 60 80 percent of the median income 
 12.35  for a four-person family as of the latest report by the United 
 12.36  States Census Bureau. 
 13.1      Sec. 17.  [REPEALER.] 
 13.2      Minnesota Statutes 2002, sections 13.598, subdivision 2; 
 13.3   116J.411, subdivision 3; 116J.415, subdivisions 6, 9, and 10; 
 13.4   116J.693; 116J.9665; and 116L.03, subdivision 7, are repealed.