1.1                          A bill for an act 
  1.2             relating to the operation of state government; 
  1.3             creating the Minnesota family assets for independence 
  1.4             pilot project; appropriating money for economic 
  1.5             development, housing, family and early childhood, and 
  1.6             related programs; modifying community action program 
  1.7             provisions; modifying various programs and projects; 
  1.8             providing for a grant limit exception; amending 
  1.9             Minnesota Statutes 1996, sections 16B.06, subdivision 
  1.10            2; 115C.09, by adding a subdivision; 268.52, 
  1.11            subdivisions 1 and 2; 268.54, subdivision 2; 383B.79, 
  1.12            subdivision 1, and by adding a subdivision; and 
  1.13            469.303; Minnesota Statutes 1997 Supplement, sections 
  1.14            115C.09, subdivision 3f; 116J.421, subdivision 1, and 
  1.15            by adding a subdivision; 179A.03, subdivision 7; and 
  1.16            268.53, subdivision 5; Laws 1997, chapters 162, 
  1.17            article 4, section 63, subdivision 2; 248, section 47, 
  1.18            subdivision 1. 
  1.19  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.20                             ARTICLE 1 
  1.21                     COMMUNITY ACTION PROGRAMS 
  1.22     Section 1.  Minnesota Statutes 1996, section 268.52, 
  1.23  subdivision 1, is amended to read: 
  1.24     Subdivision 1.  [AUTHORIZATION.] The commissioner of 
  1.25  economic security children, families, and learning may provide 
  1.26  financial assistance for community action agencies, Indian 
  1.27  reservations and the statewide migrant seasonal farmworker 
  1.28  organization known as the Minnesota migrant council, and migrant 
  1.29  and seasonal farmworker organizations to carry out community 
  1.30  action programs as described in section 268.54 in accordance 
  1.31  with the omnibus reconciliation act of 1981, Public Law Number 
  1.32  97-35, as amended in 1984, Public Law Number 98-558, state law, 
  2.1   and federal law and regulation. 
  2.2      Sec. 2.  Minnesota Statutes 1996, section 268.52, 
  2.3   subdivision 2, is amended to read: 
  2.4      Subd. 2.  [ALLOCATION OF MONEY.] (a) State money 
  2.5   appropriated and community service block grant money allotted to 
  2.6   the state and all money transferred to the community service 
  2.7   block grant from other block grants shall be allocated annually 
  2.8   to community action agencies and Indian reservation governments 
  2.9   under clauses (b) and (c), and to the Minnesota migrant council 
  2.10  migrant and seasonal farmworker organizations under clause (d). 
  2.11     (b) The available annual money will provide base funding to 
  2.12  all community action agencies and the Indian reservations.  Base 
  2.13  funding amounts per agency are as follows:  for agencies with 
  2.14  low income populations up to 3,999, $25,000; 4,000 to 23,999, 
  2.15  $50,000; and 24,000 or more, $100,000. 
  2.16     (c) All remaining money of the annual money available after 
  2.17  the base funding has been determined must be allocated to each 
  2.18  agency and reservation in proportion to the size of the poverty 
  2.19  level population in the agency's service area compared to the 
  2.20  size of the poverty level population in the state.  
  2.21     (d) Allocation of money to the Minnesota migrant council 
  2.22  migrant and seasonal farmworker organizations must not exceed 
  2.23  three percent of the total annual money available.  Base funding 
  2.24  allocations must be made for all community action agencies and 
  2.25  Indian reservations that received money under this subdivision, 
  2.26  in fiscal year 1984, and for community action agencies 
  2.27  designated under this section with a service area population of 
  2.28  35,000 or greater. 
  2.29     Sec. 3.  Minnesota Statutes 1997 Supplement, section 
  2.30  268.53, subdivision 5, is amended to read: 
  2.31     Subd. 5.  [FUNCTIONS; POWERS.] A community action agency 
  2.32  shall:  
  2.33     (a) Plan systematically for an effective community action 
  2.34  program; develop information as to the problems and causes of 
  2.35  poverty in the community; determine how much and how effectively 
  2.36  assistance is being provided to deal with those problems and 
  3.1   causes; and establish priorities among projects, activities and 
  3.2   areas as needed for the best and most efficient use of 
  3.3   resources; 
  3.4      (b) Encourage agencies engaged in activities related to the 
  3.5   community action program to plan for, secure, and administer 
  3.6   assistance available under section 268.52 or from other sources 
  3.7   on a common or cooperative basis; provide planning or technical 
  3.8   assistance to those agencies; and generally, in cooperation with 
  3.9   community agencies and officials, undertake actions to improve 
  3.10  existing efforts to reduce poverty, such as improving day-to-day 
  3.11  communications, closing service gaps, focusing resources on the 
  3.12  most needy, and providing additional opportunities to low-income 
  3.13  individuals for regular employment or participation in the 
  3.14  programs or activities for which those community agencies and 
  3.15  officials are responsible; 
  3.16     (c) Initiate and sponsor projects responsive to needs of 
  3.17  the poor which are not otherwise being met, with particular 
  3.18  emphasis on providing central or common services that can be 
  3.19  drawn upon by a variety of related programs, developing new 
  3.20  approaches or new types of services that can be incorporated 
  3.21  into other programs, and filling gaps pending the expansion or 
  3.22  modification of those programs; 
  3.23     (d) Establish effective procedures by which the poor and 
  3.24  area residents concerned will be enabled to influence the 
  3.25  character of programs affecting their interests, provide for 
  3.26  their regular participation in the implementation of those 
  3.27  programs, and provide technical and other support needed to 
  3.28  enable the poor and neighborhood groups to secure on their own 
  3.29  behalf available assistance from public and private sources; 
  3.30     (e) Join with and encourage business, labor and other 
  3.31  private groups and organizations to undertake, together with 
  3.32  public officials and agencies, activities in support of the 
  3.33  community action program which will result in the additional use 
  3.34  of private resources and capabilities, with a view to developing 
  3.35  new employment opportunities, stimulating investment that will 
  3.36  have a measurable impact on reducing poverty among residents of 
  4.1   areas of concentrated poverty, and providing methods by which 
  4.2   residents of those areas can work with private groups, firms, 
  4.3   and institutions in seeking solutions to problems of common 
  4.4   concern.  
  4.5      Community action agencies, the Minnesota migrant council 
  4.6   migrant and seasonal farmworker organizations, and the Indian 
  4.7   reservations, may enter into cooperative purchasing agreements 
  4.8   and self-insurance programs with local units of government.  
  4.9   Nothing in this section expands or limits the current private or 
  4.10  public nature of a local community action agency. 
  4.11     (f) Adopt policies that require the agencies to refer area 
  4.12  residents and community action program constituents to education 
  4.13  programs that increase literacy, improve parenting skills, and 
  4.14  address the needs of children from families in poverty.  These 
  4.15  programs include, but are not limited to, early childhood family 
  4.16  education programs, adult basic education programs, and other 
  4.17  life-long learning opportunities.  The agencies and agency 
  4.18  programs, including Head Start, shall collaborate with child 
  4.19  care and other early childhood education programs to ensure 
  4.20  smooth transitions to work for parents. 
  4.21     Sec. 4.  Minnesota Statutes 1996, section 268.54, 
  4.22  subdivision 2, is amended to read: 
  4.23     Subd. 2.  [COMPONENTS.] The components of a community 
  4.24  action program shall be designed to assist participants, 
  4.25  including homeless individuals and families, migrant and 
  4.26  seasonal farmworkers, and the elderly poor to achieve increased 
  4.27  self-sufficiency and greater participation in the affairs of the 
  4.28  community by providing services and programs not sufficiently 
  4.29  provided in the community by any governmental unit, any public 
  4.30  institution, or any other publicly funded agency or 
  4.31  corporation.  Community action agencies, governmental units, 
  4.32  public institutions or other publicly funded agencies or 
  4.33  corporations shall consult on whether or not a program or 
  4.34  service is sufficiently provided in the community. 
  4.35     Sec. 5.  Laws 1997, chapter 248, section 47, subdivision 1, 
  4.36  is amended to read: 
  5.1      Subdivision 1.  [INTERIM AGE GROUPINGS; FAMILY DAY CARE.] 
  5.2   Notwithstanding Minnesota Rules, part 9502.0315, subparts 22, 28 
  5.3   and 30, until June 30, 1998 1999, for the purposes of family day 
  5.4   care and group family day care licensure the following 
  5.5   definitions apply: 
  5.6      (1) "Preschooler" means a child who is at least 24 months 
  5.7   old up to the age of being eligible to enter kindergarten within 
  5.8   the next four months. 
  5.9      (2) "Toddler" means a child who is at least 12 months old 
  5.10  but less than 24 months old, except that for purposes of 
  5.11  specialized infant and toddler family and group family day care, 
  5.12  "toddler" means a child who is at least 12 months old but less 
  5.13  than 30 months old. 
  5.14     (3) "School age" means a child who is at least of 
  5.15  sufficient age to have attended the first day of kindergarten, 
  5.16  or is eligible to enter kindergarten within the next four 
  5.17  months, but is younger than 11 years of age. 
  5.18     Sec. 6.  [MINNESOTA FAMILY ASSETS FOR INDEPENDENCE PILOT 
  5.19  PROJECT ESTABLISHMENT.] 
  5.20     The Minnesota family assets for independence initiative is 
  5.21  established to provide incentives for low-income families to 
  5.22  accrue assets for education, housing, and economic development 
  5.23  purposes. 
  5.24     Sec. 7.  [DEFINITIONS.] 
  5.25     Subdivision 1.  [APPLICATION.] The definitions in this 
  5.26  section apply to sections 6 to 12. 
  5.27     Subd. 2.  [FAMILY ASSET ACCOUNT.] "Family asset account" 
  5.28  means a savings account opened by a household participating in 
  5.29  the Minnesota family assets for independence initiative. 
  5.30     Subd. 3.  [COMMISSIONER.] "Commissioner" means the 
  5.31  commissioner of children, families, and learning. 
  5.32     Subd. 4.  [FIDUCIARY ORGANIZATION.] "Fiduciary organization"
  5.33  means: 
  5.34     (1) a community action agency that has obtained recognition 
  5.35  under section 268.53; 
  5.36     (2) a federal community development credit union serving 
  6.1   the seven-county metropolitan area; or 
  6.2      (3) a women-oriented economic development agency serving 
  6.3   the seven-county metropolitan area. 
  6.4      Subd. 5.  [FINANCIAL INSTITUTION.] "Financial institution" 
  6.5   means a bank, bank and trust, savings bank, savings association, 
  6.6   or credit union, the deposits of which are insured by the 
  6.7   Federal Deposit Insurance Corporation or the National Credit 
  6.8   Union Administration. 
  6.9      Subd. 6.  [PERMISSIBLE USE.] "Permissible use" means: 
  6.10     (1) post-secondary educational expenses at an accredited 
  6.11  public post-secondary institution including books, supplies, and 
  6.12  equipment required for courses of instruction; 
  6.13     (2) acquisition costs of acquiring, constructing, or 
  6.14  reconstructing a residence, including any usual or reasonable 
  6.15  settlement, financing, or other closing costs; 
  6.16     (3) business capitalization expenses for expenditures on 
  6.17  capital, plant, equipment, working capital, and inventory 
  6.18  expenses of a legitimate business pursuant to a business plan 
  6.19  approved by the fiduciary organization; and 
  6.20     (4) acquisition costs of a principal residence within the 
  6.21  meaning of section 1034 of the Internal Revenue Code of 1986 
  6.22  which do not exceed 100 percent of the average area purchase 
  6.23  price applicable to the residence determined according to 
  6.24  section 143(e)(2) and (3) of the Internal Revenue Code of 1986. 
  6.25     Subd. 7.  [HOUSEHOLD.] "Household" means all individuals 
  6.26  who share use of a dwelling unit as primary quarters for living 
  6.27  and eating separate from other individuals. 
  6.28     Sec. 8.  [GRANTS AWARDED.] 
  6.29     The commissioner shall allocate funds to participating 
  6.30  fiduciary organizations to provide family asset services.  Grant 
  6.31  awards must be based on a plan submitted by a statewide 
  6.32  organization representing fiduciary organizations.  The 
  6.33  statewide organization must ensure that any interested 
  6.34  unrepresented fiduciary organization have input into the 
  6.35  development of the plan.  The plan must equitably distribute 
  6.36  funds to achieve geographic balance and document the capacity of 
  7.1   participating fiduciary organizations to manage the program and 
  7.2   to raise the private match. 
  7.3      Sec. 9.  [DUTIES.] 
  7.4      A participating fiduciary organization must: 
  7.5      (1) provide separate accounts for the immediate deposit of 
  7.6   program funds; 
  7.7      (2) establish a process to select participants and describe 
  7.8   any priorities for participation; 
  7.9      (3) enter into a family asset agreement with the household 
  7.10  to establish the terms of participation; 
  7.11     (4) provide households with economic literacy education; 
  7.12     (5) provide households with information on early childhood 
  7.13  family education; 
  7.14     (6) provide matching deposits for participating households; 
  7.15     (7) coordinate with other related public and private 
  7.16  programs; and 
  7.17     (8) establish a process to appeal and mediate disputes. 
  7.18     Sec. 10.  [HOUSEHOLD ELIGIBILITY; PARTICIPATION.] 
  7.19     Subdivision 1.  [INITIAL ELIGIBILITY.] To be eligible for 
  7.20  the family assets for independence initiative, a household must 
  7.21  have income at or below 200 percent of the federal poverty level 
  7.22  and assets of $25,000 or less.  An individual who is a dependent 
  7.23  of another person for federal income tax purposes may not be a 
  7.24  separate eligible household for purposes of establishing a 
  7.25  family asset account.  An individual who is a debtor for a 
  7.26  judgment resulting from nonpayment of a court-ordered child 
  7.27  support obligation may not participate in this program.  Income 
  7.28  and assets are determined according to eligibility guidelines 
  7.29  for the energy assistance program.  
  7.30     Subd. 2.  [CONTINUED PARTICIPATION.] A participating 
  7.31  household whose income exceeds 200 percent of the poverty level 
  7.32  may continue to make contributions to the savings account.  The 
  7.33  amount of any contributions made during the time when a 
  7.34  participating household's income is greater than 200 percent of 
  7.35  the poverty level is not eligible for the match under section 11.
  7.36     Subd. 3.  [FAMILY PARTICIPATION.] Each participating 
  8.1   household must sign a family asset agreement that includes the 
  8.2   amount of scheduled deposits into its savings account, the 
  8.3   proposed use, and the proposed savings goal.  A participating 
  8.4   household must agree to complete an economic literacy training 
  8.5   program.  
  8.6      Participating households may only deposit money that is 
  8.7   derived from household earned income or from state and federal 
  8.8   income tax credits.  
  8.9      Sec. 11.  [WITHDRAWAL; MATCHING; PERMISSIBLE USES.] 
  8.10     Subdivision 1.  [WITHDRAWAL OF FUNDS.] To receive a match, 
  8.11  a participating household must transfer funds withdrawn from a 
  8.12  family asset account to a fiduciary organization, according to 
  8.13  the family asset agreement.  The fiduciary organization must 
  8.14  determine if the match request is for a permissible use 
  8.15  consistent with the household's family asset agreement. 
  8.16     A fiduciary organization must match the balance in the 
  8.17  household's account, including interest, at the time of an 
  8.18  approved withdrawal.  Matches must be provided as follows: 
  8.19     (1) from state grant funds a matching contribution of $2 
  8.20  for every $1 of funds withdrawn from the family asset account 
  8.21  equal to the lesser of $720 per year or a $3,000 lifetime limit; 
  8.22  and 
  8.23     (2) from nonstate funds, a matching contribution of no less 
  8.24  than $2 for every $1 of funds withdrawn from the family asset 
  8.25  account equal to the lesser of $720 per year or a $3,000 
  8.26  lifetime limit. 
  8.27     Subd. 2.  [VENDOR PAYMENT OF WITHDRAWN FUNDS.] Upon receipt 
  8.28  of withdrawn funds, the fiduciary organization must make a 
  8.29  direct payment to the vendor of the goods or services for the 
  8.30  permissible use.  
  8.31     Sec. 12.  [PROGRAM REPORTING.] 
  8.32     Each fiduciary organization operating a family assets for 
  8.33  independence initiative must annually report to the commissioner 
  8.34  of children, families, and learning the number of accounts, the 
  8.35  amount of savings and matches for each account, the uses of the 
  8.36  account, and the number of businesses, homes, and educational 
  9.1   services paid for with money from the account, as well as other 
  9.2   information that may be required for the state to operate the 
  9.3   program effectively. 
  9.4      Sec. 13.  [EFFECTIVE DATE.] 
  9.5      Sections 1 to 4 are effective October 1, 1998. 
  9.6                              ARTICLE 2 
  9.7              FAMILY AND EARLY CHILDHOOD APPROPRIATIONS 
  9.8      Section 1.  Laws 1997, chapter 162, article 4, section 63, 
  9.9   subdivision 2, is amended to read: 
  9.10     Subd. 2.  [BASIC SLIDING FEE CHILD CARE.] For child care 
  9.11  assistance according to Minnesota Statutes, section 119B.03: 
  9.12       $41,751,000     .....     1998
  9.13       $50,751,000 $54,001,000     .....     1999
  9.14     Any balance in the first year does not cancel but is 
  9.15  available the second year. 
  9.16     Of this appropriation, the department shall allocate the 
  9.17  amount necessary to administer the at-home child care program 
  9.18  under section 22. 
  9.19     The increase in the fiscal year 1999 appropriation is for 
  9.20  child care assistance under Minnesota Statutes, section 119B.03, 
  9.21  to provide uninterrupted assistance for families completing 
  9.22  transition year child care assistance in fiscal year 1999.  The 
  9.23  commissioner shall implement procedures to ensure this 
  9.24  assistance. 
  9.25     $3,250,000 of the fiscal year 1999 appropriation is a 
  9.26  one-time appropriation. 
  9.27     Sec. 2.  [APPROPRIATIONS.] 
  9.28     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
  9.29  LEARNING.] The sums indicated in this section are appropriated 
  9.30  from the general fund to the commissioner of children, families, 
  9.31  and learning for the fiscal years and for the purposes indicated.
  9.32     Subd. 2.  [EMERGENCY SERVICES GRANTS.] For emergency 
  9.33  services grants under Laws 1997, chapter 162, article 3, section 
  9.34  7: 
  9.35       $  300,000     .....     1999 
  9.36     This is a one-time appropriation for fiscal year 1999. 
 10.1      Subd. 3.  [TRANSITIONAL HOUSING.] For transitional housing 
 10.2   programs according to Minnesota Statutes, section 268.38: 
 10.3        $  300,000    .....      1999
 10.4      This is a one-time appropriation. 
 10.5      Subd. 4.  [LEAD HAZARD REDUCTION.] For the lead abatement 
 10.6   program under Minnesota Statutes, section 268.92: 
 10.7        $  100,000     .....     1999 
 10.8      This appropriation must be used for the swab team service 
 10.9   program to provide lead cleanup and lead hazard reduction 
 10.10  services in geographic areas where the residents have a high 
 10.11  risk of elevated blood lead levels. 
 10.12     Of this amount, 25 percent is for a grant to the city of 
 10.13  St. Louis Park to conduct lead testing and cleanup in the 
 10.14  residential neighborhoods contaminated by an industrial lead 
 10.15  site.  The remaining amount is for a nonprofit organization that 
 10.16  is currently operating the CLEARCorps lead hazard reduction 
 10.17  project and is willing to expand its geographic service area.  
 10.18     This is a one-time appropriation. 
 10.19     Subd. 5.  [HEAD START AND ECFE.] For competitive grants for 
 10.20  programs for children ages 0 to 3:  
 10.21       $  250,000     .....     1999 
 10.22     A Head Start and an early childhood family education 
 10.23  program must jointly apply for grants from this appropriation.  
 10.24  Grant awards must be used to expand collaborative programming 
 10.25  involving both early childhood family education and Head Start 
 10.26  for children under the age of three. 
 10.27     This is a one-time appropriation. 
 10.28     Sec. 3.  [APPROPRIATION; ADMINISTRATION OF ABUSED CHILDREN 
 10.29  PROGRAMS.] 
 10.30     Of the amount appropriated under Laws 1997, chapter 162, 
 10.31  article 2, section 31, subdivision 8, up to $134,000 for fiscal 
 10.32  year 1998 and up to $134,000 for fiscal year 1999 may be used 
 10.33  for state costs to administer abused children programs under 
 10.34  Minnesota Statutes, sections 119A.20 to 119A.23. 
 10.35     Sec. 4.  [APPROPRIATION; ADMINISTRATION OF DRUG POLICY AND 
 10.36  VIOLENCE PREVENTION PROGRAMS.] 
 11.1      Of the amount appropriated under Laws 1997, chapter 162, 
 11.2   article 2, section 31, subdivision 9, up to $305,000 for fiscal 
 11.3   year 1998 and up to $305,000 for fiscal year 1999 may be used 
 11.4   for state costs to administer drug policy and violence 
 11.5   prevention programs under Minnesota Statutes, sections 119A.25 
 11.6   to 119A.29 and 119A.32 to 119A.34. 
 11.7      Sec. 5.  [APPROPRIATION; ADMINISTRATION OF THE CHILDREN'S 
 11.8   TRUST FUND.] 
 11.9      Of the amount appropriated under Laws 1997, chapter 162, 
 11.10  article 2, section 31, subdivision 10, up to $22,000 for fiscal 
 11.11  year 1998 and up to $22,000 for fiscal year 1999 may be used for 
 11.12  state costs to administer the children's trust fund under 
 11.13  Minnesota Statutes, sections 119A.10 to 119A.17.  
 11.14     Of the amount in the special revenue account from fees 
 11.15  under Minnesota Statutes, section 144.226, subdivision 3, up to 
 11.16  $120,000 for fiscal year 1998 and $120,000 for fiscal year 1999 
 11.17  may be used for operating costs of the children's trust fund. 
 11.18     Sec. 6.  [EFFECTIVE DATE.] 
 11.19     Sections 3 to 5 are effective the day following final 
 11.20  enactment. 
 11.21                             ARTICLE 3
 11.22                        ECONOMIC DEVELOPMENT 
 11.23  Section 1.  [ECONOMIC DEVELOPMENT APPROPRIATIONS.] 
 11.24     The sums in the columns marked "APPROPRIATIONS" are 
 11.25  appropriated from the general fund, or another named fund, to 
 11.26  the agencies and for the purposes specified in this article, to 
 11.27  be available for the fiscal years indicated for each purpose.  
 11.28  The figures "1998" and "1999," where used in this act, mean that 
 11.29  the appropriation or appropriations listed under them are 
 11.30  available for the year ending June 30, 1998, or June 30, 1999, 
 11.31  respectively.  The term "first year" means the fiscal year 
 11.32  ending June 30, 1998, and "second year" means the fiscal year 
 11.33  ending June 30, 1999. 
 11.34                          SUMMARY BY FUND 
 11.35                                           1998           1999 
 11.36  General                              $   359,000    $ 3,841,000
 12.1   TOTAL                                    359,000      3,841,000
 12.2                                             APPROPRIATIONS 
 12.3                                         Available for the Year 
 12.4                                             Ending June 30 
 12.5                                            1998         1999 
 12.6   Sec. 2.  DEPARTMENT OF TRADE AND
 12.7   ECONOMIC DEVELOPMENT                 $     -0-      $   580,000
 12.8   The amounts that may be spent from this 
 12.9   appropriation for each purpose is 
 12.10  specified in the following paragraphs. 
 12.11  (a) Neighborhood Development Center, Inc.
 12.12  $80,000 in 1999 making a grant to the 
 12.13  Neighborhood Development Center, Inc.  
 12.14  The center shall use the grant for the 
 12.15  purpose of expanding and improving its 
 12.16  neighborhood and ethnic-based 
 12.17  entrepreneur training, lending, and 
 12.18  support programs in the poorest 
 12.19  communities of Minneapolis and St. 
 12.20  Paul.  This appropriation is a one-time 
 12.21  appropriation and is not added to the 
 12.22  department's budget base. 
 12.23  (b) Biomass Energy Project 
 12.24  $500,000 in 1999 is for a grant to the 
 12.25  Granite Falls economic development 
 12.26  authority for the development of a 
 12.27  farm-grown, closed loop biomass energy 
 12.28  project.  The grant may be used to 
 12.29  manage the development, seek financing 
 12.30  and equity participation, reimburse 
 12.31  costs of third-party due diligence 
 12.32  exercises, and perform environmental 
 12.33  review and permitting.  This is a 
 12.34  one-time appropriation and is not added 
 12.35  to the department's budget base. 
 12.36  (c) Minnesota Trade Office 
 12.37  The appropriation in Laws 1997, chapter 
 12.38  200, article 1, section 2, subdivision 
 12.39  3, to the department of trade and 
 12.40  economic development for the Minnesota 
 12.41  trade office for a multifaceted program 
 12.42  to develop trade with China is 
 12.43  available until June 30, 1999. 
 12.44  Sec. 3.  MINNESOTA WORLD TRADE CENTER
 12.45  CORPORATION                              155,000        -0-  
 12.46  $155,000 is appropriated in 1998 for 
 12.47  full and final payments of the 
 12.48  remaining 1988 debt of the Minnesota 
 12.49  World Trade Center Corporation which 
 12.50  was incurred for conference center 
 12.51  furniture, fixtures, and equipment.  
 12.52  This appropriation is available 
 12.53  immediately.  This is a one-time 
 12.54  appropriation and is not added to the 
 12.55  department's budget base. 
 12.56  Sec. 4.  DEPARTMENT OF ECONOMIC
 12.57  SECURITY                                  -0-         2,326,000 
 12.58  The amounts that may be spent from this 
 13.1   appropriation for each purpose are 
 13.2   specified in the following paragraphs. 
 13.3   (a) Vocational Rehabilitation
 13.4   $1,000,000 in 1999 to the vocational 
 13.5   rehabilitation program to be added to 
 13.6   the appropriation for rehabilitation 
 13.7   services provided in Laws 1997, chapter 
 13.8   200, article 1, section 5, subdivision 
 13.9   2, and is added to the department's 
 13.10  budget base.  
 13.11  (b) Summer Youth Employment
 13.12  $1,000,000 in 1999 is for summer youth 
 13.13  employment programs.  This is a 
 13.14  one-time appropriation and is available 
 13.15  immediately and is available until June 
 13.16  30, 1999. 
 13.17  (c) Advocating Change Together, Inc. 
 13.18  $126,000 in 1999 is for a grant to 
 13.19  Advocating Change Together, Inc. 
 13.20  (ACT).  The grant must be used for (1) 
 13.21  the training and empowerment of 
 13.22  individuals with developmental and 
 13.23  other mental health disabilities, 
 13.24  including mental illnesses that are 
 13.25  serious and persistent, that are 
 13.26  chronic, or that pose a risk of 
 13.27  hospitalization; (2) the maintenance of 
 13.28  related data; or (3) technical 
 13.29  assistance for work advancement or 
 13.30  additional workforce training.  This is 
 13.31  a one-time appropriation and is not 
 13.32  added to the department's budget base. 
 13.33  (d) Displaced Homemakers Empowerment
 13.34  $200,000 in 1999 is for displaced 
 13.35  homemaker programs under Minnesota 
 13.36  Statutes, section 268.96, and is a 
 13.37  one-time appropriation and not added to 
 13.38  the department's budget base.  This 
 13.39  appropriation is for grants to operate 
 13.40  a community work empowerment support 
 13.41  group demonstration project and is in 
 13.42  addition to the appropriation for that 
 13.43  purpose contained in Laws 1997, chapter 
 13.44  200, article 1, section 4, subdivision 
 13.45  4.  
 13.46  Sec. 5.  PUBLIC UTILITIES
 13.47  COMMISSION                               204,000        189,000 
 13.48  This appropriation is for costs 
 13.49  associated with the regulation of 
 13.50  utilities.  Notwithstanding any other 
 13.51  law, these amounts may not be billed 
 13.52  back to utility companies. 
 13.53  Sec. 6.  MINNESOTA HISTORICAL SOCIETY     -0-          646,000  
 13.54  The amounts that may be spent from this 
 13.55  appropriation for each purpose are 
 13.56  specified in the following paragraphs. 
 13.57  (a) Salary Adjustment 
 14.1   $571,000 in 1999 is for salary 
 14.2   adjustments.  This is a one-time 
 14.3   appropriation and is not added to the 
 14.4   society's budget base. 
 14.5   (b) Hmong Archives 
 14.6   $75,000 in 1999 is for start-up costs 
 14.7   for the Hmong history and culture 
 14.8   archival project.  The society may make 
 14.9   grants to nonprofit organizations for 
 14.10  planning, training, and purchase of 
 14.11  supplies and equipment.  This is a 
 14.12  one-time appropriation and is not added 
 14.13  to the society's budget base. 
 14.14  Sec. 7.  SUPREME COURT                    -0-          100,000 
 14.15  $100,000 in 1999 is for the community 
 14.16  justice system collaboration team in 
 14.17  the judicial branch.  This is a 
 14.18  one-time appropriation and is not added 
 14.19  to the budget base. 
 14.20     Sec. 8.  [JUDY GARLAND CHILDREN'S MUSEUM.] 
 14.21     The appropriation in Laws 1997, chapter 200, article 1, 
 14.22  section 2, subdivision 2, to the commissioner of trade and 
 14.23  economic development for the Judy Garland Children's Museum is 
 14.24  available until and may be matched until June 30, 1999. 
 14.25     Sec. 9.  [LEROY NIEMAN MUSEUM OF ART.] 
 14.26     The appropriation in Laws 1997, chapter 200, article 1, 
 14.27  section 2, subdivision 4, to the commissioner of trade and 
 14.28  economic development for a grant to the LeRoy Nieman Museum of 
 14.29  Art is available until and may be matched until June 30, 1999.  
 14.30     Sec. 10.  [NEWPORT.] 
 14.31     The city of Newport may include in-kind resources and money 
 14.32  raised or contributed during a period beginning January 1, 1993, 
 14.33  in determining its required match for the appropriation to the 
 14.34  city in Laws 1997, chapter 200, article 1, section 2, 
 14.35  subdivision 2.  
 14.36     Sec. 11.  [TRAINING FOR HMONG AND LAOTIAN WOMEN.] 
 14.37     $100,000 of the appropriation in fiscal year 1999 for the 
 14.38  Job Training Partnership Act program in Laws 1997, chapter 200, 
 14.39  article 1, section 5, subdivision 4, is available to the Women's 
 14.40  Association of Hmong and Lao to provide employment and training 
 14.41  to eligible Hmong and Laotian women. 
 14.42     Sec. 12.  [BOUNDARY EXTENSION.] 
 14.43     The boundaries of the North Mississippi Regional Park are 
 15.1   extended to include 49th Avenue North and adjacent property from 
 15.2   Humboldt Avenue east to the Mississippi river.  Funds 
 15.3   appropriated for the North Mississippi Regional Park may be 
 15.4   expended to create a trail or greenway as part of the Hennepin 
 15.5   county multijurisdictional program on 49th Avenue North and 
 15.6   adjacent property as an entrance to the North Mississippi 
 15.7   Regional Park.  
 15.8      Sec. 13.  [MINNESOTA INVESTMENT FUND; SOYBEAN OILSEED 
 15.9   PROCESSING FACILITY.] 
 15.10     Notwithstanding the grant limit in Minnesota Statutes, 
 15.11  section 116J.8731, subdivision 5, a grant of up to $1,000,000 
 15.12  may be made to a political subdivision that is chosen as a site 
 15.13  for a soybean oilseed processing facility, constructed by a 
 15.14  Minnesota-based cooperative.  The grant may be used for site 
 15.15  preparation, predevelopment, and other infrastructure 
 15.16  improvements, including public and private utility improvements, 
 15.17  that are necessary for development of the oilseed processing 
 15.18  facility.  The grant may be made any time until December 31, 
 15.19  2000. 
 15.20     Sec. 14.  [BIOMASS PROJECT; WAIVER OF FEES AUTHORIZED.] 
 15.21     The Minnesota environmental quality board may waive fees 
 15.22  under Minnesota Statutes, chapter 116C, for permits necessary 
 15.23  for construction to commence on a biomass energy project that 
 15.24  plans to use alfalfa for a primary fuel source. 
 15.25     Sec. 15.  Minnesota Statutes 1996, section 16B.06, 
 15.26  subdivision 2, is amended to read: 
 15.27     Subd. 2.  [VALIDITY OF STATE CONTRACTS.] (a) A state 
 15.28  contract or lease is not valid and the state is not bound by it 
 15.29  until: 
 15.30     (1) it has first been executed by the head of the agency or 
 15.31  a delegate which is a party to the contract; 
 15.32     (2) it has been approved by the commissioner or a delegate, 
 15.33  under this section; 
 15.34     (3) it has been approved by the attorney general or a 
 15.35  delegate as to form and execution; and 
 15.36     (4) the account system shows an allotment or encumbrance 
 16.1   balance for the full amount of the contract liability.  
 16.2      (b) Paragraph (a), clause (2), does not apply to contracts 
 16.3   between state agencies, contracts awarding grants, or contracts 
 16.4   making loans, or bond purchase agreements by the department of 
 16.5   trade and economic development or the Minnesota public 
 16.6   facilities authority. 
 16.7      (c) The head of the agency may delegate the execution of 
 16.8   specific contracts or specific types of contracts to a 
 16.9   designated subordinate within the agency if the delegation has 
 16.10  been approved by the commissioner of administration and filed 
 16.11  with the secretary of state.  The fully executed copy of every 
 16.12  contract or lease must be kept on file at the contracting agency.
 16.13     Sec. 16.  Minnesota Statutes 1997 Supplement, section 
 16.14  115C.09, subdivision 3f, is amended to read: 
 16.15     Subd. 3f.  [REIMBURSEMENTS; SMALL GASOLINE RETAILERS.] (a) 
 16.16  As used in this subdivision, "small gasoline retailer" means 
 16.17  a responsible person tank owner or operator who owns no more 
 16.18  than only one location in this state, and no locations in any 
 16.19  other state, where motor fuel was dispensed to the public into 
 16.20  motor vehicles, watercraft, or aircraft in the previous year, 
 16.21  and who dispensed motor fuel at that location. 
 16.22     (b) Notwithstanding subdivision 1, paragraph (b), clause 
 16.23  (1), for eligible applicants who are small gasoline retailers 
 16.24  that have dispensed less than 500,000 gallons of motor fuel 
 16.25  during the most recent calendar year that petroleum products 
 16.26  were dispensed at the location owned by the retailer, the board 
 16.27  shall reimburse the applicant for 90 percent of the applicant's 
 16.28  total reimbursable cost for tank removal projects started after 
 16.29  January 1, 1997 1996, including, but not limited to, tank 
 16.30  removal, closure in place, backfill, resurfacing, and utility 
 16.31  service restoration costs, regardless of whether a release has 
 16.32  occurred at the site, provided that the tank involved is a 
 16.33  regulated underground storage tank. 
 16.34     (c) Notwithstanding subdivision 1, paragraph (b), clause 
 16.35  (1), for eligible applicants who are small gasoline retailers 
 16.36  that have dispensed less than 250,000 gallons of motor fuel 
 17.1   during the most recent calendar year that petroleum products 
 17.2   were dispensed at the location owned by the retailer, provided 
 17.3   that the tank involved is a regulated underground storage tank, 
 17.4   the board shall reimburse the applicant for 95 percent of the 
 17.5   following costs: 
 17.6      (1) tank removal costs described in paragraph (b); and 
 17.7      (2) petroleum contamination cleanup as provided under 
 17.8   subdivision 1 incurred during or after the tank removal project. 
 17.9      (d) An applicant who owns only one location in this or any 
 17.10  other state where motor fuel was dispensed to the public into 
 17.11  motor vehicles, watercraft, or aircraft but who did not dispense 
 17.12  motor fuel at that location may qualify as a small gasoline 
 17.13  retailer if:  
 17.14     (1) the previous tank owner or operator at the location was 
 17.15  a small gasoline retailer that dispensed less than 500,000 
 17.16  gallons of motor fuel during the most recent calendar year that 
 17.17  petroleum products were dispensed at the location; and 
 17.18     (2) the applicant acquired legal or equitable title to the 
 17.19  property after January 1, 1996.  
 17.20     (e) This subdivision expires January 1, 2000. 
 17.21     Sec. 17.  Minnesota Statutes 1996, section 115C.09, is 
 17.22  amended by adding a subdivision to read: 
 17.23     Subd. 3g.  [REIMBURSEMENTS; SMALL BUSINESS OWNERS.] (a) As 
 17.24  used in this subdivision, "small business owner" means a person: 
 17.25     (1) who has no more than $250,000 per year in sales; 
 17.26     (2) who owns no more than one location where motor fuel was 
 17.27  previously dispensed to the public into motor vehicles; 
 17.28     (3) who did not dispense motor fuel at that location; and 
 17.29     (4) whose tanks were never registered with the state. 
 17.30     (b) Notwithstanding subdivision 1, paragraph (b), clause 
 17.31  (1), the board shall reimburse an eligible applicant who is a 
 17.32  small business owner for 90 percent of the applicant's total 
 17.33  reimbursable cost for tank removal projects started after 
 17.34  January 1, 1998, including, but not limited to, tank removal, 
 17.35  closure in place, backfill, resurfacing, and utility service 
 17.36  restoration costs, regardless of whether a release has occurred 
 18.1   at the site, and provided that the person does not intend to 
 18.2   replace the tanks. 
 18.3      Sec. 18.  Minnesota Statutes 1997 Supplement, section 
 18.4   116J.421, subdivision 1, is amended to read: 
 18.5      Subdivision 1.  [ESTABLISHED.] The rural policy and 
 18.6   development center is established at Mankato State University. 
 18.7      The center may be established by the board as a nonprofit 
 18.8   corporation under section 501(c)3 of the Internal Revenue Code 
 18.9   or the board may organize and operate the center in a manner and 
 18.10  form that the board determines best allows the center to carry 
 18.11  out its duties. 
 18.12     Sec. 19.  Minnesota Statutes 1997 Supplement, section 
 18.13  116J.421, is amended by adding a subdivision to read: 
 18.14     Subd. 5.  [POWERS.] The board has the power to do all 
 18.15  things reasonable and necessary to carry out the duties of the 
 18.16  center including, without limitation, the power to: 
 18.17     (1) enter into contracts for goods or services with 
 18.18  individuals and private and public entities; 
 18.19     (2) sue and be sued; 
 18.20     (3) acquire, hold, lease, and transfer any interest in real 
 18.21  and personal property; 
 18.22     (4) accept appropriations, gifts, grants, and bequests; 
 18.23     (5) hire employees; and 
 18.24     (6) delegate any of its powers. 
 18.25     Sec. 20.  Minnesota Statutes 1997 Supplement, section 
 18.26  179A.03, subdivision 7, is amended to read: 
 18.27     Subd. 7.  [ESSENTIAL EMPLOYEE.] "Essential employee" means 
 18.28  firefighters, peace officers subject to licensure under sections 
 18.29  626.84 to 626.863, guards at correctional facilities, 
 18.30  confidential employees, supervisory employees, assistant county 
 18.31  attorneys, assistant city attorneys, principals, and assistant 
 18.32  principals.  However, for state employees, "essential employee" 
 18.33  means all employees in law enforcement, health care 
 18.34  professionals, correctional guards, professional engineering, 
 18.35  and supervisory collective bargaining units, irrespective of 
 18.36  severance, and no other employees.  For University of Minnesota 
 19.1   employees, "essential employee" means all employees in law 
 19.2   enforcement, nursing professional and supervisory units, 
 19.3   irrespective of severance, and no other employees.  
 19.4   "Firefighters" means salaried employees of a fire department 
 19.5   whose duties include, directly or indirectly, controlling, 
 19.6   extinguishing, preventing, detecting, or investigating fires. 
 19.7      Sec. 21.  Minnesota Statutes 1996, section 383B.79, 
 19.8   subdivision 1, is amended to read: 
 19.9      Subdivision 1.  [PROGRAM CREATED.] A multijurisdictional 
 19.10  reinvestment program involving Hennepin county, the cities of 
 19.11  Minneapolis, Brooklyn Center, and other interested statutory or 
 19.12  home rule charter cities in Hennepin county, the Minneapolis 
 19.13  park board, and the suburban Hennepin county park district is 
 19.14  created.  The multijurisdictional program must include plans for 
 19.15  housing rehabilitation and removals, industrial polluted land 
 19.16  cleanup, water ponding, environmental cleanup, community 
 19.17  corridor connections, corridor planning, creation of green 
 19.18  space, acquisition of property, development and redevelopment of 
 19.19  parks and open space, water quality and lakeshore improvement, 
 19.20  development and redevelopment of housing and existing commercial 
 19.21  projects, and job creation.  
 19.22     Sec. 22.  Minnesota Statutes 1996, section 383B.79, is 
 19.23  amended by adding a subdivision to read: 
 19.24     Subd. 6.  [ADMINISTRATION.] The board of county 
 19.25  commissioners shall administer the program and funds and bond 
 19.26  for projects in this section either as a county board or a 
 19.27  housing and redevelopment authority.  The board of county 
 19.28  commissioners may acquire property in connection with the 
 19.29  project known as the Humboldt Avenue Greenway from any funds 
 19.30  under its control. 
 19.31     Sec. 23.  Minnesota Statutes 1996, section 469.303, is 
 19.32  amended to read: 
 19.33     469.303 [ELIGIBILITY REQUIREMENTS.] 
 19.34     An area within the city is eligible for designation as an 
 19.35  enterprise zone if the area (1) includes census tracts eligible 
 19.36  for a federal empowerment zone or enterprise community as 
 20.1   defined by the United States Department of Housing and Urban 
 20.2   Development under Public Law Number 103-66, notwithstanding the 
 20.3   maximum zone population standard under the federal empowerment 
 20.4   zone program for cities with a population under 500,000 or, (2) 
 20.5   is an area within a city of the second class that is designated 
 20.6   as an economically depressed area by the United States 
 20.7   Department of Commerce, or (3) includes property located in St. 
 20.8   Paul in a transit zone as defined in section 473.3915, 
 20.9   subdivision 3. 
 20.10     Sec. 24.  [LOCAL APPROVAL; EFFECTIVE DATE.] 
 20.11     Sections 21 and 22 are effective the day after the Hennepin 
 20.12  county board complies with Minnesota Statutes, section 645.021, 
 20.13  subdivision 3. 
 20.14     Sec. 25.  [EFFECTIVE DATE.] 
 20.15     All provisions making appropriations for fiscal year 1998, 
 20.16  or that are to be available immediately, are effective the day 
 20.17  following final enactment. 
 20.18                             ARTICLE 4 
 20.19                              HOUSING 
 20.20   Section 1.  [HOUSING APPROPRIATIONS.] 
 20.21     The sums in the columns marked "APPROPRIATIONS" are 
 20.22  appropriated from the general fund, or another named fund, to 
 20.23  the agencies and for the purposes specified in this article, to 
 20.24  be available for the fiscal years indicated for each purpose.  
 20.25  The figures "1998" and "1999," where used in this act, mean that 
 20.26  the appropriation or appropriations listed under them are 
 20.27  available for the year ending June 30, 1998, or June 30, 1999, 
 20.28  respectively.  The term "first year" means the fiscal year 
 20.29  ending June 30, 1998, and "second year" means the fiscal year 
 20.30  ending June 30, 1999. 
 20.31                          SUMMARY BY FUND 
 20.32                                           1998           1999 
 20.33  General                              $     -0-      $ 3,600,000 
 20.34  TOTAL                                      -0-        3,600,000 
 20.35                                             APPROPRIATIONS 
 20.36                                         Available for the Year 
 20.37                                             Ending June 30 
 21.1                                             1998         1999 
 21.2   Sec. 2.  MINNESOTA HOUSING 
 21.3   FINANCE AGENCY                       $     -0-      $ 3,600,000
 21.4   The amounts that may be spent from this 
 21.5   appropriation for certain programs are 
 21.6   specified below. 
 21.7   This appropriation is for transfer to 
 21.8   the housing development fund for the 
 21.9   programs specified and is a one-time 
 21.10  appropriation and is not added to the 
 21.11  agency's budget base. 
 21.12  (a) Affordable Rental Investment Fund
 21.13  and Community Rehabilitation Fund 
 21.14  $3,300,000 in 1999 is for the 
 21.15  affordable rental investment fund 
 21.16  program under Minnesota Statutes, 
 21.17  section 462A.21, subdivision 8b, to be 
 21.18  allocated according to the geographic 
 21.19  distribution requirements in the 
 21.20  appropriation for the affordable rental 
 21.21  investment program in Laws 1997, 
 21.22  chapter 200, article 1, section 6, and 
 21.23  for the community rehabilitation 
 21.24  program under Minnesota Statutes, 
 21.25  section 462A.206.  Notwithstanding 
 21.26  section 462A.206, this appropriation 
 21.27  shall be used to provide housing for 
 21.28  families and persons with incomes less 
 21.29  than or equal to 80 percent of the Twin 
 21.30  Cities metropolitan area median income 
 21.31  applied statewide.  The agency must 
 21.32  give preference to economically viable 
 21.33  projects in which there is a 
 21.34  contribution from nonstate sources.  Of 
 21.35  this amount, the agency may use up to 
 21.36  $500,000 to fund projects in cities of 
 21.37  the first class if the projects use 
 21.38  innovative urban design elements, 
 21.39  comprehensive community planning, or 
 21.40  help leverage federal funds from the 
 21.41  federal home ownership zone program.  
 21.42  (b) Family Homeless Prevention
 21.43  and Assistance Program
 21.44  $300,000 in 1999 is for the family 
 21.45  homeless prevention and assistance 
 21.46  program under Minnesota Statutes, 
 21.47  section 462A.204 and is added to the 
 21.48  appropriation for this program in Laws 
 21.49  1997, chapter 200, article 1, section 6.