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HF 2158

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
  1.1                          A bill for an act 
  1.2             relating to the organization and operation of state 
  1.3             government; appropriating money for economic 
  1.4             development and certain agencies of state government; 
  1.5             establishing and modifying certain programs; providing 
  1.6             for regulation of certain activities and practices; 
  1.7             standardizing certain licensing service fees; 
  1.8             establishing and modifying certain fees; modifying 
  1.9             housing programs; establishing a task force; providing 
  1.10            for a manufactured home park to be a conditional use; 
  1.11            requiring reports; amending Minnesota Statutes 1996, 
  1.12            sections 38.02, subdivisions 1, 2, and 3; 44A.01, 
  1.13            subdivision 2; 60A.075, by adding a subdivision; 
  1.14            60A.23, subdivision 8; 60A.71, by adding a 
  1.15            subdivision; 60K.06, subdivision 2; 65B.48, 
  1.16            subdivision 3; 72B.04, subdivision 10; 79.253, 
  1.17            subdivision 1; 79.255, by adding a subdivision; 
  1.18            79.361, subdivision 1; 79.371, by adding a 
  1.19            subdivision; 82.21, subdivision 1; 82B.09, subdivision 
  1.20            1; 115A.908, subdivision 2; 115B.03, subdivision 5; 
  1.21            115C.021, by adding a subdivision; 115C.03, 
  1.22            subdivision 9; 115C.08, subdivision 4; 115C.09, 
  1.23            subdivision 3, and by adding a subdivision; 115C.13; 
  1.24            116J.551; 116J.552, subdivision 4; 116J.553, 
  1.25            subdivision 2; 116J.554, subdivision 1; 116L.04, 
  1.26            subdivision 1; 116O.05, by adding a subdivision; 
  1.27            116O.122, subdivision 1; 138.91, by adding a 
  1.28            subdivision; 155A.045, subdivision 1; 176.181, 
  1.29            subdivision 2a; 268.022, subdivision 2; 268.362, 
  1.30            subdivision 2; 268.38, subdivision 7; 268.63; 268.672, 
  1.31            subdivision 6, and by adding subdivisions; 268.673, 
  1.32            subdivisions 3, 4a, and 5; 268.6751, subdivision 1; 
  1.33            268.677, subdivision 1; 268.681; 270.97; 298.22, by 
  1.34            adding a subdivision; 326.86, subdivision 1; 394.25, 
  1.35            by adding a subdivision; 446A.04, subdivision 5; 
  1.36            446A.081, subdivisions 1, 4, and 9; 462.357, by adding 
  1.37            a subdivision; 462A.05, subdivisions 14d, 30, 39, and 
  1.38            by adding a subdivision; 462A.13; 462A.201, 
  1.39            subdivision 2; 462A.205; 462A.206, subdivisions 2 and 
  1.40            4; 462A.207, subdivisions 1, 2, 3, 4, and 6; 462A.21, 
  1.41            subdivision 12a; 469.303; and 469.305, subdivision 1; 
  1.42            proposing coding for new law in Minnesota Statutes, 
  1.43            chapters 45; 79; 116J; 268; 366; 462A; and 469; 
  1.44            repealing Minnesota Statutes 1996, sections 115A.908, 
  1.45            subdivision 3; 268.39; 268.672, subdivision 4; 
  1.46            268.673, subdivision 6; 268.676; 268.677, subdivisions 
  2.1             2 and 3; 268.678; 268.679, subdivision 3; 462A.05, 
  2.2             subdivision 20; 462A.206, subdivision 5; and 462A.21, 
  2.3             subdivisions 4k, 12, and 14. 
  2.5                              ARTICLE 1
  2.6                            APPROPRIATIONS
  2.8      The sums shown in the columns marked "APPROPRIATIONS" are 
  2.9   appropriated from the general fund, or another named fund, to 
  2.10  the agencies and for the purposes specified in this act, to be 
  2.11  available for the fiscal years indicated for each purpose.  The 
  2.12  figures "1998" and "1999," where used in this act, mean that the 
  2.13  appropriation or appropriations listed under them are available 
  2.14  for the year ending June 30, 1998, or June 30, 1999, 
  2.15  respectively.  The term "first year" means the fiscal year 
  2.16  ending June 30, 1998, and "second year" means the fiscal year 
  2.17  ending June 30, 1999. 
  2.18                          SUMMARY BY FUND
  2.19                            1998          1999           TOTAL
  2.20  General              $173,656,000   $145,914,000   $319,570,000
  2.21  Petroleum Tank
  2.22  Cleanup                   957,000        969,000      1,926,000
  2.23  Trunk Highway             706,000        723,000      1,429,000 
  2.24  Workers' 
  2.25  Compensation           22,815,000     23,105,000     45,860,000
  2.26  Special Revenue         3,133,000      3,139,000      6,272,000
  2.27  Taconite Environmental
  2.28  Protection              1,410,000
  2.29  TOTAL                $202,737,000   $173,850,000   $376,587,000
  2.30                                             APPROPRIATIONS 
  2.31                                         Available for the Year 
  2.32                                             Ending June 30 
  2.33                                            1998         1999 
  2.35  Subdivision 1.  Total       
  2.36  Appropriation                          50,876,000    31,348,000
  2.37                Summary by Fund
  2.38  General              50,170,000    30,625,000
  2.39  Trunk Highway           706,000       723,000 
  2.40  The amounts that may be spent from this 
  2.41  appropriation for each program are 
  3.1   specified in the following subdivisions.
  3.2   Subd. 2.  Business and Community 
  3.3   Development
  3.4       35,260,000     16,217,000
  3.5   $6,017,000 each year is for Minnesota 
  3.6   investment fund grants. 
  3.7   $500,000 each year is for grants to 
  3.8   Advantage Minnesota, Inc.  The funds 
  3.9   are available only if matched on at 
  3.10  least a dollar-for-dollar basis from 
  3.11  other sources.  The commissioner may 
  3.12  release the funds only upon: 
  3.13  (1) certification that matching funds 
  3.14  from each participating organization 
  3.15  are available; and 
  3.16  (2) review and approval by the 
  3.17  commissioner of the proposed operations 
  3.18  plan of Advantage Minnesota, Inc. for 
  3.19  the biennium. 
  3.20  $3,440,000 each year is for the job 
  3.21  skills partnership program.  
  3.22  $10,000,000 the first year is for 
  3.23  predevelopment and job creation grants 
  3.24  under Minnesota Statutes, section 
  3.25  116J.564.  This appropriation is 
  3.26  available until June 30, 1999.  This is 
  3.27  a one-time appropriation and may not be 
  3.28  included in the budget base for the 
  3.29  biennium ending June 30, 2001. 
  3.30  All money in the contaminated site 
  3.31  cleanup and development account in the 
  3.32  general fund on the effective date of 
  3.33  this act, is appropriated to the 
  3.34  commissioner on that date for the 
  3.35  contamination cleanup program in fiscal 
  3.36  year 1998.  Any balance of this 
  3.37  appropriation not spent by June 30, 
  3.38  1998, cancels to the general fund on 
  3.39  June 30, 1998. 
  3.40  $250,000 the first year is for a grant 
  3.41  from the department of trade and 
  3.42  economic development to the Software 
  3.43  Technology Center to broaden 
  3.44  industry-related educational and 
  3.45  technological services.  This 
  3.46  appropriation is available upon 
  3.47  documentation of a dollar-for-dollar 
  3.48  match from other sources since the 
  3.49  inception of the Software Technology 
  3.50  Center.  This is a one-time 
  3.51  appropriation and must not be included 
  3.52  in the budget base for the biennium 
  3.53  ending June 30, 2001. 
  3.54  $100,000 the first year is for a 
  3.55  one-time grant to the Duluth Technology 
  3.56  Center.  This appropriation is 
  3.57  available until June 30, 1999. 
  3.58  $25,000 the first year is for a 
  3.59  one-time grant to the city of New 
  4.1   London for improvements to the Little 
  4.2   Theatre.  This appropriation is 
  4.3   available when the city matches the 
  4.4   appropriation with $25,000 from 
  4.5   nonstate sources. 
  4.6   $1,000,000 the first year is for one or 
  4.7   more grants to the Minnesota Futures 
  4.8   Fund administered by the Minneapolis 
  4.9   Foundation.  The Minneapolis Foundation 
  4.10  shall use these grants to provide 
  4.11  technical assistance to nonprofit 
  4.12  organizations to assist them in 
  4.13  redesigning services and organizational 
  4.14  structures in response to changes in 
  4.15  federal and state welfare policy.  The 
  4.16  commissioner shall make the grants in 
  4.17  amounts necessary to match nonpublic 
  4.18  contributions to the fund on a 
  4.19  dollar-for-dollar basis.  This 
  4.20  appropriation is available until June 
  4.21  30, 1999.  This is a one-time 
  4.22  appropriation and may not be included 
  4.23  in the budget base for the biennium 
  4.24  ending June 30, 2001. 
  4.25  $35,000 is for a one-time appropriation 
  4.26  to the Fairfax economic development 
  4.27  authority for roof replacement.  This 
  4.28  appropriation is available until June 
  4.29  30, 1999. 
  4.30  $2,000,000 the first year is for a 
  4.31  one-time grant to the city of Brooklyn 
  4.32  Center to redevelop the Brookdale 
  4.33  regional center and provide 
  4.34  opportunities for economic development 
  4.35  at or near the center.  The grant must 
  4.36  be used to assist the city in 
  4.37  constructing a series of storm water 
  4.38  retention ponds that will facilitate 
  4.39  the redevelopment and economic 
  4.40  development of the center and nearby 
  4.41  property.  The grant must be on terms 
  4.42  and conditions determined by the 
  4.43  commissioner.  The grant must be 
  4.44  matched by city resources that equal at 
  4.45  least 25 percent of the grant. 
  4.46  $750,000 the first year is for the 
  4.47  taconite mining grant program under 
  4.48  Minnesota Statutes, section 116J.992.  
  4.49  This appropriation is available until 
  4.50  June 30, 1999.  This is a one-time 
  4.51  appropriation and may not be included 
  4.52  in the budget base for the biennium 
  4.53  ending June 30, 2001. 
  4.54  $4,000,000 the first year is for a 
  4.55  grant to develop a direct reduction 
  4.56  iron-processing facility in Minnesota.  
  4.57  This appropriation is available until 
  4.58  June 30, 1999.  This is a one-time 
  4.59  appropriation and may not be included 
  4.60  in the budget base for the biennium 
  4.61  ending June 30, 2001. 
  4.62  $500,000 the first year is for 
  4.63  technical assistance under Minnesota 
  4.64  Statutes, section 116J.875.  This 
  4.65  appropriation is available until June 
  5.1   30, 1999. 
  5.2   $25,000 the first year is for a 
  5.3   one-time grant to the city of St. Paul 
  5.4   to improve, beautify, and enhance 
  5.5   marked trunk highway No. 5 from 
  5.6   Minneapolis-St.Paul international 
  5.7   airport to interstate highway No. 
  5.8   35-E.  Enhancements may include, among 
  5.9   other things, landscaping, historical 
  5.10  lighting, and signing. 
  5.11  $100,000 the first year is for a 
  5.12  one-time grant to the city of Grey 
  5.13  Eagle for construction of a wastewater 
  5.14  treatment plant. 
  5.15  $125,000 the first year is for a 
  5.16  one-time demonstration project grant to 
  5.17  the city of Newport for the city to 
  5.18  conduct a study of the economic impact 
  5.19  on the city resulting from regional 
  5.20  infrastructure improvement projects.  
  5.21  The city may retain consultants and 
  5.22  enter into contracts it considers 
  5.23  desirable to conduct the study.  The 
  5.24  elements of the study must include an 
  5.25  alternate economic use study, a fiscal 
  5.26  impact study, an infrastructure impact 
  5.27  study, and a traffic impact study.  The 
  5.28  grant is available only to the extent 
  5.29  that the city provides a 
  5.30  dollar-for-dollar match. 
  5.31  $100,000 each year is for one-time 
  5.32  grants to the city of New Brighton, as 
  5.33  project coordinator and fiscal agent of 
  5.34  the seven-city coalition, for the 
  5.35  multicommunity business retention and 
  5.36  market expansion project and related 
  5.37  planning efforts linking geographical 
  5.38  information systems, contaminated land 
  5.39  remediation, land use planning, 
  5.40  transportation corridor study, 
  5.41  integration of existing housing stock, 
  5.42  subregional transit and reverse commute 
  5.43  coordination, employment densities, job 
  5.44  training and welfare reform placement 
  5.45  coordination, and commercial and 
  5.46  industrial development.  The coalition 
  5.47  shall share all results and written 
  5.48  reports with the department of trade 
  5.49  and economic development. 
  5.50  $100,000 the first year is for a 
  5.51  one-time grant to Mankato State 
  5.52  University for creating a nonprofit 
  5.53  rural policy and development center. 
  5.54  $250,000 each year is for grants to 
  5.55  independent school district No. 625, 
  5.56  St. Paul, for customized, job-specific 
  5.57  English language training for employers 
  5.58  in the metropolitan area.  Training 
  5.59  shall be designed to meet the needs of 
  5.60  a particular employer and its current 
  5.61  and prospective employees.  The 
  5.62  training is to be provided through the 
  5.63  Hubbs center workforce education 
  5.64  program.  The program must coordinate 
  5.65  with the St. Paul port authority, the 
  6.1   St. Paul workforce center, and other 
  6.2   employment-related agencies to identify 
  6.3   businesses with English as a second 
  6.4   language needs.  Employers must provide 
  6.5   a program match either in-kind or in 
  6.6   cash. 
  6.7   $500,000 each year is for grants to the 
  6.8   St. Paul rehabilitation center for its 
  6.9   current programs, including those 
  6.10  related to developing job-seeking 
  6.11  skills and workplace orientation, 
  6.12  intensive job development, functional 
  6.13  work English, and on-site job coaching. 
  6.14  $100,000 each year is for grants to 
  6.15  county agricultural societies under 
  6.16  Minnesota Statutes, section 38A.02. 
  6.17  $100,000 the first year is for a 
  6.18  one-time grant to the Morrison county 
  6.19  rural development finance authority to 
  6.20  apply to the unpaid balance remaining 
  6.21  on a loan to provide the nonstate funds 
  6.22  to match the appropriation to the 
  6.23  commissioner under Laws 1996, chapter 
  6.24  452, section 2, paragraph (c). 
  6.25  Subd. 3.  Minnesota Trade Office 
  6.26       2,577,000      2,461,000
  6.27  $250,000 the first year and $100,000 
  6.28  the second year is for a multifaceted 
  6.29  program to develop trade with China.  
  6.30  This is a one-time appropriation and 
  6.31  must not be included in the budget base 
  6.32  for the biennium ending June 30, 2001. 
  6.33  $125,000 each year is for one-time 
  6.34  grants to the greater metropolitan area 
  6.35  foreign trade zone commission for the 
  6.36  purpose of promoting foreign trade 
  6.37  zones in Minnesota. 
  6.38  The department shall act as the lead 
  6.39  agency in developing a plan for a 
  6.40  coordinated effort to promote Minnesota 
  6.41  internationally.  The commissioner may 
  6.42  appoint an advisory committee and may 
  6.43  seek federal and private funding to 
  6.44  develop and implement the plan. 
  6.45  Subd. 4.  Tourism 
  6.46       8,660,000      8,205,000
  6.47                Summary by Fund
  6.48  General               7,954,000     7,482,000
  6.49  Trunk Highway           706,000       723,000
  6.50  To develop maximum private sector 
  6.51  involvement in tourism, $2,500,000 the 
  6.52  first year and $2,500,00 the second 
  6.53  year of the amounts appropriated for 
  6.54  marketing activities are contingent on 
  6.55  receipt of an equal contribution from 
  6.56  nonstate sources that have been 
  6.57  certified by the commissioner.  Up to 
  7.1   one-half of the match may be given in 
  7.2   in-kind contributions.  This 
  7.3   appropriation may not be spent until 
  7.4   the money is matched. 
  7.5   In order to maximize marketing grant 
  7.6   benefits, the commissioner must give 
  7.7   priority for joint venture marketing 
  7.8   grants to organizations with year-round 
  7.9   sustained tourism activities.  For 
  7.10  programs and projects submitted, the 
  7.11  commissioner must give priority to 
  7.12  those that encompass two or more areas 
  7.13  or that attract nonresident travelers 
  7.14  to the state. 
  7.15  If an appropriation for either year for 
  7.16  grants is not sufficient, the 
  7.17  appropriation for the other year is 
  7.18  available for it. 
  7.19  The commissioner may use grant dollars 
  7.20  or the value of in-kind services to 
  7.21  provide the state contribution for the 
  7.22  partnership program. 
  7.23  Any unexpended money from general fund 
  7.24  appropriations made under this 
  7.25  subdivision does not cancel but must be 
  7.26  placed in a special advertising account 
  7.27  for use by the office of tourism to 
  7.28  purchase additional media. 
  7.29  $329,000 each year is for the Minnesota 
  7.30  film board.  This appropriation is 
  7.31  available only upon receipt by the 
  7.32  board of $1 in matching contributions 
  7.33  of money or in-kind from nonstate 
  7.34  sources for every $3 provided by this 
  7.35  appropriation. 
  7.36  $500,000 each year is for grants to the 
  7.37  Minnesota film board for a film 
  7.38  production jobs fund to stimulate 
  7.39  feature film production in Minnesota.  
  7.40  This appropriation is to reimburse film 
  7.41  producers for two to five percent of 
  7.42  documented wages which they paid to 
  7.43  Minnesotans for film production after 
  7.44  January 1, 1997. 
  7.45  $500,000 is for a one-time grant to the 
  7.46  Leroy Neiman museum of art.  This 
  7.47  appropriation is available on 
  7.48  documentation of a dollar-for-dollar 
  7.49  match from other sources.  This amount 
  7.50  may not be added to the agency's budget 
  7.51  base. 
  7.52  $35,000 the first year is for a 
  7.53  one-time grant to the Upper Minnesota 
  7.54  Valley River regional development 
  7.55  commission for development of design 
  7.56  specifications and architectural plans 
  7.57  for a regional visitors center, to be 
  7.58  built on the upper segment of the 
  7.59  Minnesota river corridor within the 
  7.60  designated scenic byway area and in 
  7.61  conjunction with the development of the 
  7.62  Minnesota river corridor trail.  This 
  7.63  appropriation is available until June 
  8.1   30, 1999. 
  8.2   The office of tourism shall expand its 
  8.3   efforts in the 1998-1999 biennium to 
  8.4   market and promote tourism within 
  8.5   Minnesota that emphasizes multicultural 
  8.6   areas and neighborhoods and those areas 
  8.7   and neighborhoods with a high 
  8.8   concentration of recent immigrants. 
  8.9   Subd. 5.  Administration 
  8.10       2,971,000      3,028,000
  8.11  Subd. 6.  Information and Analysis
  8.12       1,408,000      1,437,000
  8.13  Sec. 3.  MINNESOTA TECHNOLOGY, INC.    8,087,000      8,087,000
  8.14  $6,105,000 each year is for transfer 
  8.15  from the general fund to the Minnesota 
  8.16  Technology, Inc. fund. 
  8.17  $75,000 each year is for grants to 
  8.18  Minnesota Inventors Congress. 
  8.19  $794,000 each year is for grants to 
  8.20  Minnesota Project Innovation.  
  8.21  $950,000 each year is for grants to the 
  8.22  Natural Resources Research Institute. 
  8.23  $88,000 each year is for grants to 
  8.24  Minnesota Council for Quality. 
  8.25  $75,000 each year is for grants to 
  8.26  Minnesota Cold Weather Research Center. 
  8.27  Sec. 4.  WORLD TRADE CENTER CORP.        217,000 
  8.28  $217,000 the first year is to retire 
  8.29  the debt of the Minnesota World Trade 
  8.30  Center.  This is a one-time 
  8.31  appropriation and may not be included 
  8.32  in the budget base for the biennium 
  8.33  ending June 30, 2001.  In addition, the 
  8.34  Minnesota trade office may transfer 
  8.35  $50,000 each year to the World Trade 
  8.36  Center for services to agencies, 
  8.37  nonprofit and public organizations. 
  8.38  Sec. 5.  ECONOMIC SECURITY  
  8.39  Subdivision 1.  Total 
  8.40  Appropriation                         43,650,000     37,972,000
  8.41                Summary by Fund
  8.42  General              40,862,000    35,183,000
  8.43  Special Revenue       2,788,000     2,789,000
  8.44  Subd. 2.  Rehabilitation Services
  8.45      19,310,000     19,815,000
  8.46  $1,750,000 each year is for centers for 
  8.47  independent living. 
  8.48  $300,000 the first year and $800,000 
  9.1   the second year are for employment 
  9.2   support services authorized under 
  9.3   Minnesota Statutes, section 268A.13.  
  9.4   $200,000 each year is for a grant to 
  9.5   the Minnesota employment center for 
  9.6   deaf and hard-of-hearing people. 
  9.7   Subd. 3.  State Services for the Blind 
  9.8        3,735,000      3,816,000
  9.9   This appropriation may be supplemented 
  9.10  by funds provided by the Friends of the 
  9.11  Communication Center, for support of 
  9.12  Services for the Blind's Communication 
  9.13  Center, which serves all blind and 
  9.14  visually handicapped Minnesotans.  The 
  9.15  commissioner shall report to the 
  9.16  legislature on a biennial basis the 
  9.17  funds provided by the Friends of the 
  9.18  Communication Center. 
  9.19  Subd. 4.  Workforce Preparation 
  9.20      19,005,000     12,941,000
  9.21                Summary by Fund
  9.22  General              16,217,000    10,152,000
  9.23  Special Revenue       2,788,000     2,789,000
  9.24  $775,000 each year is for job training 
  9.25  programs under Minnesota Statutes, 
  9.26  sections 268.60 to 268.64.  Of this 
  9.27  amount, $250,000 each year is for 
  9.28  grants to the Ramsey county 
  9.29  opportunities industrialization 
  9.30  center.  The grants are to be used to 
  9.31  (1) offer prevocational training 
  9.32  programs and specific vocational 
  9.33  training programs involving intensive 
  9.34  English as a second language in 
  9.35  instruction, and (2) train for and 
  9.36  locate entry level jobs including, 
  9.37  without limitation, clerical, building 
  9.38  maintenance, manufacturing, home 
  9.39  maintenance and repair, and certified 
  9.40  nursing assistance.  This appropriation 
  9.41  is from the workforce investment fund. 
  9.42  $2,013,000 the first year and 
  9.43  $2,014,000 the second year is for 
  9.44  displaced homemaker programs under 
  9.45  Minnesota Statutes, section 268.96.  
  9.46  This appropriation is from the 
  9.47  workforce investment fund. 
  9.48  $1,050,000 each year is for youth 
  9.49  intervention programs under Minnesota 
  9.50  Statutes, section 268.30.  Funding from 
  9.51  this appropriation may be used to 
  9.52  expand existing programs to serve unmet 
  9.53  needs and to create new programs in 
  9.54  underserved areas.  This appropriation 
  9.55  is available until spent. 
  9.56  $500,000 each year is to supplement the 
  9.57  activities of the Job Training 
  9.58  Partnership Act Title II-A program as 
 10.1   described in United States Code, title 
 10.2   29, sections 1501 to 1792.  The 
 10.3   commissioner may use up to five percent 
 10.4   of this amount of state operations.  
 10.5   The balance of the amount is for 
 10.6   services to temporary assistance for 
 10.7   needy families (TANF) recipients, and 
 10.8   of this balance 60 percent is for 
 10.9   training and education to fill a 
 10.10  specific need of an employer in a 
 10.11  program modeled after and coordinated 
 10.12  with the Minnesota Jobs Skills 
 10.13  Partnership.  This is a one-time 
 10.14  appropriation and may not be included 
 10.15  in the budget base for the biennium 
 10.16  ending June 30, 2001. 
 10.17  $75,000 the first year is for the PLATO 
 10.18  education partnership pilot program.  
 10.19  If the commissioner favorably evaluates 
 10.20  the demonstration implementation of 
 10.21  PLATO in Fairmont and Owatonna, the 
 10.22  commissioner shall select two other 
 10.23  communities in which PLATO will be 
 10.24  implemented.  Of this amount, not more 
 10.25  than $10 is for the demonstration 
 10.26  implementations.  This is a one-time 
 10.27  appropriation and may not be included 
 10.28  in the agency's budget base for the 
 10.29  biennium ending June 30, 2001. 
 10.30  $400,000 each year is for the learn to 
 10.31  earn summer youth employment program 
 10.32  established under Laws 1995, chapter 
 10.33  224, sections 5 and 39.  Agencies in 
 10.34  first class cities must be given 
 10.35  priority for these grants.  Grants 
 10.36  under this appropriation must be 
 10.37  matched by nonstate sources.  No single 
 10.38  agency may receive more than 60 percent 
 10.39  of the total appropriation for any year.
 10.40  Grants made under this section are 
 10.41  available until spent.  The 
 10.42  appropriation for fiscal year 1998 may 
 10.43  be spent in fiscal year 1997.  This is 
 10.44  a one-time appropriation and may not be 
 10.45  included in the budget base for the 
 10.46  biennium ending June 30, 2001. 
 10.47  Of the money appropriated for the 
 10.48  Minnesota youth program for the first 
 10.49  year, $750,000 is immediately 
 10.50  available.  Any remaining balance of 
 10.51  the immediately available money is 
 10.52  available for the year in which it is 
 10.53  appropriated.  In addition to the base 
 10.54  appropriation, $4,000,000 the first 
 10.55  year is for the Minnesota youth 
 10.56  program.  This additional appropriation 
 10.57  may not be included in the budget base 
 10.58  for the biennium ending June 30, 2001. 
 10.59  If the appropriation in either year is 
 10.60  insufficient, the appropriation for the 
 10.61  other year is available. 
 10.62  $150,000 each year is for grants to 
 10.63  create and operate community 
 10.64  development corporations under 
 10.65  Minnesota Statutes, section 116J.982, 
 10.66  in Hennepin and Ramsey counties, that 
 10.67  target Asian-Pacific Minnesotans. 
 11.1   $1,000,000 the first year is for 
 11.2   one-time grants to first class cities, 
 11.3   and nonmetropolitan counties that 
 11.4   contain a city of 19,000 or more, that 
 11.5   demonstrate a need for creating and 
 11.6   expanding curfew enforcement, truancy 
 11.7   prevention, and gang and prostitution 
 11.8   intervention and prevention, and 
 11.9   pretrial diversion programs.  A program 
 11.10  funded from this appropriation must 
 11.11  have clearly established neighborhood, 
 11.12  community, and family outcome measures 
 11.13  of success, and must report to the 
 11.14  commissioner on achievement of these 
 11.15  outcomes on or before June 30, 1999.  
 11.16  This appropriation is available until 
 11.17  June 30, 1999. 
 11.18  $700,000 each year is for the 
 11.19  Youthbuild program under Minnesota 
 11.20  Statutes, section 268.361 to 268.366.  
 11.21  This appropriation is available until 
 11.22  June 30, 1999. 
 11.23  $250,000 the first year is for a 
 11.24  one-time grant to Ramsey county to 
 11.25  expand the sister-to-sister mentoring, 
 11.26  support, and training network program 
 11.27  countywide.  The county must match 50 
 11.28  percent of this appropriation.  This 
 11.29  appropriation is in addition to money 
 11.30  appropriated under Minnesota Statutes, 
 11.31  sections 256J.62 and 256J.76. 
 11.32  Subd. 5.  Workforce Exchange 
 11.33       1,600,000      1,400,000
 11.34  $1,600,000 the first year and 
 11.35  $1,400,000 the second year is 
 11.36  appropriated to leverage federal 
 11.37  dollars in support of the 
 11.38  implementation of the Minnesota 
 11.39  Workforce Center System.  The 
 11.40  department shall report to the 
 11.41  Minnesota office of technology its 
 11.42  plans to coordinate workforce center 
 11.43  development with the Minnesota career 
 11.44  education planning system and other 
 11.45  electronic job banks.  This is a 
 11.46  one-time appropriation and may not be 
 11.47  included in the budget base for the 
 11.48  biennium ending June 30, 2001. 
 11.49  Sec. 6.  COMMERCE 
 11.50  Subdivision 1.  Total 
 11.51  Appropriation                         16,004,000     16,367,000
 11.52                Summary by Fund
 11.53  General              14,240,000    14,572,000
 11.54  Petro Cleanup           957,000       969,000 
 11.55  Workers' Compensation   462,000       476,000
 11.56  Special Revenue         345,000       350,000 
 11.57  The amounts that may be spent from this 
 11.58  appropriation for each program are 
 12.1   specified in the following subdivisions.
 12.2   Subd. 2.  Financial Examinations 
 12.3        3,802,000      3,883,000
 12.4   Subd. 3.  Registration and Insurance 
 12.5        4,479,000      4,590,000
 12.6                 Summary by Fund
 12.7   General               4,017,000     4,114,000
 12.8   Workers' Compensation   462,000       476,000 
 12.9   Subd. 4.  Enforcement and Licensing 
 12.10       3,945,000      4,031,000
 12.11                Summary by Fund
 12.12  General               3,600,000     3,681,000
 12.13  Special Revenue         345,000       350,000
 12.14  $345,000 the first year and $350,000 
 12.15  the second year is from the real estate 
 12.16  education, research, and recovery 
 12.17  account in the special revenue fund for 
 12.18  the purpose of Minnesota Statutes, 
 12.19  section 82.34, subdivision 6.  If the 
 12.20  appropriation from the special revenue 
 12.21  fund for either year is insufficient, 
 12.22  the appropriation for the other year is 
 12.23  available for it. 
 12.24  Subd. 5.  Petroleum Tank Release 
 12.25  Cleanup Board 
 12.26         957,000        969,000
 12.27  This appropriation is from the 
 12.28  petroleum tank release cleanup fund. 
 12.29  Subd. 6.  Administrative Services 
 12.30       2,821,000      2,894,000 
 12.31  Sec. 7.  BOARD OF ACCOUNTANCY            572,000        587,000
 12.35  INTERIOR DESIGN                          684,000        700,000 
 12.36  Sec. 9.  BOARD OF BARBER   
 12.37  EXAMINERS                                136,000        140,000
 12.38  Sec. 10.  BOARD OF BOXING                 79,000         82,000
 12.39  Sec. 11.  LABOR AND INDUSTRY 
 12.40  Subd. 1.  Total             
 12.41  Appropriation                         24,890,000     25,143,000
 12.42                Summary by Fund
 12.43  General               3,941,000     4,012,000
 12.44  Workers'     
 13.1   Compensation         20,949,000    21,131,000
 13.2   The amounts that may be spent from this 
 13.3   appropriation for each program are 
 13.4   specified in the following subdivisions.
 13.5   Subd. 2.  Workers' Compensation
 13.6       11,932,000     12,135,000
 13.7   This appropriation is from the workers' 
 13.8   compensation fund. 
 13.9   $100,000 each year is for grants to the 
 13.10  Vinland Center for rehabilitation 
 13.11  service. 
 13.12  Subd. 3.  Workplace Services 
 13.13       6,393,000      6,713,000
 13.14                Summary by Fund
 13.15  General               2,875,000     2,931,000
 13.16  Workers'
 13.17  Compensation          3,518,000     3,782,000
 13.18  $204,000 each year is for labor 
 13.19  education and advancement program 
 13.20  grants. 
 13.21  Subd. 4.  General Support 
 13.22       6,565,000      6,295,000
 13.23                Summary by Fund
 13.24  General               1,066,000     1,081,000
 13.25  Workers'     
 13.26  Compensation          5,499,000     5,214,000
 13.27  Subd. 5.  Daedalus Project
 13.28  $2,500,000 appropriated in Laws 1995, 
 13.29  chapter 224, section 12, subdivision 2, 
 13.30  from the workers' compensation fund for 
 13.31  the Daedalus imaging project does not 
 13.32  cancel on June 30, 1997, but is 
 13.33  available until June 30, 1999. 
 13.35  Subdivision 1.  Total
 13.36  Appropriation                          2,061,000      2,074,000
 13.37  The amounts that may be spent from this 
 13.38  appropriation for each program are 
 13.39  specified in the following subdivisions.
 13.40  Subd. 2.  Mediation Services 
 13.41       1,646,000      1,659,000
 13.42  Subd. 3.  Labor Management Cooperation Grants
 13.43         302,000        302,000
 13.44  $302,000 each year is for grants to 
 13.45  area labor-management committees.  Any 
 14.1   unencumbered balance remaining at the 
 14.2   end of the first year does not cancel 
 14.3   but is available for the second year. 
 14.4   Subd. 4.  Office of Dispute Resolution
 14.5          113,000        113,000
 14.7   COURT OF APPEALS                       1,464,000      1,498,000
 14.8   This appropriation is from the workers' 
 14.9   compensation fund. 
 14.10  Sec. 14.  LABOR INTERPRETIVE 
 14.11  CENTER                                   207,000        214,000
 14.12  Sec. 15.  PUBLIC UTILITIES  
 14.13  COMMISSION                             3,241,000      3,365,000
 14.15  Subdivision 1.  Total       
 14.16  Appropriation                          9,008,000      9,116,000
 14.17  The amounts that may be spent from this 
 14.18  appropriation for each program are 
 14.19  specified in the following subdivisions.
 14.20  Subd. 2.  Telecommunications
 14.21         785,000        803,000
 14.22  Subd. 3.  Weights and Measures 
 14.23       3,076,000      3,070,000
 14.24  Subd. 4.  Information and Operations 
 14.25  Management 
 14.26       1,501,000      1,532,000
 14.27  Subd. 5.  Energy 
 14.28       3,646,000      3,711,000
 14.29  $588,000 each year is for transfer to 
 14.30  the energy and conservation account 
 14.31  established in Minnesota Statutes, 
 14.32  section 216B.241, subdivision 2a, for 
 14.33  programs administered by the 
 14.34  commissioner of economic security to 
 14.35  improve the energy efficiency of 
 14.36  residential oil-fired heating plants in 
 14.37  low-income households and, when 
 14.38  necessary, to provide weatherization 
 14.39  services to the homes. 
 14.41  SOCIETY 
 14.42  Subdivision 1.  Total       
 14.43  Appropriation                         24,594,000     21,680,000
 14.44  The amounts that may be spent from this 
 14.45  appropriation for each program are 
 14.46  specified in the following subdivisions.
 14.47  Subd. 2.  Education and     
 14.48  Outreach                              11,917,000     12,232,000
 15.1   $8,414,000 the first year and 
 15.2   $8,678,000 the second year is for 
 15.3   historic places and outreach. 
 15.4   $3,174,000 the first year and 
 15.5   $3,225,000 the second year is for 
 15.6   history center building services and 
 15.7   debt service. 
 15.8   $528,000 each year is for the 
 15.9   grant-in-aid programs for county and 
 15.10  local historical societies.  The 
 15.11  Minnesota historical society shall set 
 15.12  program guidelines and criteria, and 
 15.13  shall require a dollar-for-dollar match 
 15.14  for these grants.  Of this amount, 
 15.15  $150,000 each year is for activities 
 15.16  associated with the susquicentennial 
 15.17  and millennium celebrations.  Funding 
 15.18  for these activities is one-time and 
 15.19  may not be included in the budget base 
 15.20  for the biennium ending June 30, 2001. 
 15.21  Subd. 3.  Preservation and Access
 15.22       8,661,000      8,828,000
 15.23  $6,173,000 the first year and 
 15.24  $6,229,000 the second year is for 
 15.25  collection services. 
 15.26  $2,488,000 the first year and 
 15.27  $2,529,000 the second year is for 
 15.28  history center building services and 
 15.29  debt service. 
 15.30  Subd. 4.  Information Program 
 15.31  Delivery 
 15.32       3,095,000         97,000
 15.33  $3,000,000 in the first year is for 
 15.34  technology improvements that will 
 15.35  expand core capacity and improve 
 15.36  service and program delivery.  This 
 15.37  appropriation is available until June 
 15.38  30, 1999. 
 15.39  Subd. 5.  Fiscal Agent                   921,000        523,000
 15.40  (a) Sibley House Association 
 15.41          88,000         88,000
 15.42  This appropriation is available for 
 15.43  operation and maintenance of the Sibley 
 15.44  House and related buildings on the Old 
 15.45  Mendota state historic site operated by 
 15.46  the Sibley House Association.  
 15.47  (b) Minnesota International Center 
 15.48          50,000         50,000
 15.49  (c) Minnesota Air National   
 15.50  Guard Museum 
 15.51          19,000 
 15.52  (d) Institute for Learning and
 15.53  Teaching - Project 120
 16.1          110,000        110,000 
 16.2   (e) Minnesota Military Museum
 16.3           29,000        
 16.4   (f) Farmamerica
 16.5          200,000        200,000 
 16.6   Notwithstanding any other law, this 
 16.7   appropriation may be used for 
 16.8   operations. 
 16.9   (g) Bemidji Historical Museum
 16.10          25,000
 16.11  This appropriation is for a one-time 
 16.12  grant to the city of Bemidji to pay up 
 16.13  to one-half of the total costs, 
 16.14  including acquisition, design, other 
 16.15  preliminary work, and construction 
 16.16  costs, for purchase of an abandoned 
 16.17  historic railroad depot in the city and 
 16.18  its conversion to a historical museum 
 16.19  and facility for the Beltrami county 
 16.20  historical society. 
 16.21  (h) Winona County Historical Society
 16.22          75,000
 16.23  For a one-time grant for upgrade of 
 16.24  technology. 
 16.25  (i) Humphrey Museum
 16.26          50,000
 16.27  For a one-time grant for planning, 
 16.28  design, and construction drawings for 
 16.29  the Hubert H. Humphrey museum to be 
 16.30  located in Waverly. 
 16.31  (j) Grimm Farmhouse
 16.32          75,000
 16.33  For a one-time grant to Hennepin county 
 16.34  for the design and stabilization of the 
 16.35  Wendelin Grimm farmhouse.  This 
 16.36  appropriation is available until June 
 16.37  30, 1999.  This appropriation must be 
 16.38  matched by an equal amount from 
 16.39  nonstate sources. 
 16.40  (k) Perpich Memorial
 16.41         100,000
 16.42  For a one-time grant for planning, 
 16.43  design, and construction of a Rudy 
 16.44  Perpich Memorial.  This appropriation 
 16.45  is available until June 30, 1999. 
 16.46  (l) Citizenship Programs
 16.47          75,000         75,000
 17.1   For a grant to the Minnesota center for 
 17.2   community legal education for 
 17.3   citizenship programs in Minnesota 
 17.4   schools.  Of this amount, (1) $30,000 
 17.5   is for Project Citizen, a program to 
 17.6   educate middle school students to 
 17.7   identify, study, and influence 
 17.8   decisions on public policy issues, (2) 
 17.9   $25,000 is for We the People, a program 
 17.10  to promote civic awareness and 
 17.11  responsibility among elementary and 
 17.12  secondary students, and (3) $20,000 is 
 17.13  for the Minnesota youth summit on 
 17.14  violence prevention, a program to build 
 17.15  citizenship skills among middle and 
 17.16  high school students by engaging them 
 17.17  in the lawmaking process. 
 17.18  (m) Fishing Museum
 17.19          25,000 
 17.20  For work, in conjunction with the 
 17.21  commissioners of natural resources and 
 17.22  trade and economic development, on a 
 17.23  feasibility study for a museum housing 
 17.24  fishing-related artifacts, equipment, 
 17.25  and memorabilia.  The director of the 
 17.26  Minnesota Historical Society must 
 17.27  present study recommendations to the 
 17.28  chairs of the appropriate legislative 
 17.29  finance committees and divisions by 
 17.30  January 15, 1998.  This is a one-time 
 17.31  appropriation and may not be included 
 17.32  in the budget base for the biennium 
 17.33  ending June 30, 2001. 
 17.34  (n) Balances Forward
 17.35  Any unencumbered balance remaining in 
 17.36  this subdivision the first year does 
 17.37  not cancel but is available for the 
 17.38  second year of the biennium. 
 17.40  COMMISSION                               886,000        886,000
 17.41  Any unencumbered balance remaining in 
 17.42  this section the first year does not 
 17.43  cancel and is available for the second 
 17.44  year. 
 17.45  Sec. 19.  BOARD OF THE ARTS        
 17.46  Subdivision 1.  Total
 17.47  Appropriation                         13,018,000     13,036,000
 17.48  Any unencumbered balance remaining in 
 17.49  this section the first year does not 
 17.50  cancel but is available for the second 
 17.51  year of the biennium. 
 17.52  Subd. 2.  Operations and Services
 17.53         988,000      1,006,000
 17.54  Subd. 3.  Grants Program
 17.55       8,518,000      8,518,000
 17.56  $50,000 each year is for grants to 
 18.1   individual artists of color to create 
 18.2   new works in collaboration with 
 18.3   nonprofit arts and community 
 18.4   organizations.  Special emphasis must 
 18.5   be made to reach artists of color who 
 18.6   are recent immigrants. 
 18.7   Subd. 4.  Regional Arts
 18.8   Councils
 18.9        3,512,000      3,512,000
 18.11  BOARD                                    307,000        315,000
 18.12  Sec. 21.  COUNCIL ON BLACK
 18.13  MINNESOTANS                              321,000        251,000
 18.14  $7,500 each year is for expenses 
 18.15  associated with the Dr. Martin Luther 
 18.16  King Day activities. 
 18.17  $75,000 the first year is for planning 
 18.18  of an African Resource Center, a 
 18.19  clearinghouse for information and 
 18.20  referral services for recent immigrants 
 18.21  from Africa.  This is a one-time 
 18.22  appropriation and may not be included 
 18.23  in the agency's budget base for the 
 18.24  biennium ending June 30, 2001.  This 
 18.25  appropriation is available until June 
 18.26  30, 1999.  To the extent that this 
 18.27  appropriation exceeds the amount needed 
 18.28  for planning the center, the balance 
 18.29  may be used for operation of the center.
 18.30  Sec. 22.  COUNCIL ON 
 18.31  CHICANO-LATINO AFFAIRS                   265,000        270,000
 18.32  Sec. 23.  COUNCIL ON
 18.33  ASIAN-PACIFIC MINNESOTANS                222,000        219,000
 18.34  Sec. 24.  INDIAN AFFAIRS
 18.35  COUNCIL                                  488,000        500,000
 18.36  Sec. 25.  IRON RANGE RESOURCES
 18.37  AND REHABILITATION BOARD               1,410,000               
 18.38  This appropriation is from the taconite 
 18.39  environmental protection fund.  This 
 18.40  appropriation is available until June 
 18.41  30, 1999.  The board shall spend this 
 18.42  appropriation for the following 
 18.43  one-time grants: 
 18.44  (a) City of Big Fork
 18.45            75,000
 18.46  For new well construction and 
 18.47  infrastructure for a housing park. 
 18.48  (b) Greenway Joint Recreation Board
 18.49            35,000
 18.50  For electrical system upgrade, Zamboni 
 18.51  room addition, roof replacement, and 
 18.52  other repairs and improvements to the 
 18.53  board's ice arena. 
 19.1   (c) Town of Lone Pine
 19.2             10,000
 19.3   For construction of a baseball field. 
 19.4   (d) City of Nashwauk
 19.5             40,000
 19.6   For construction of water and sewer 
 19.7   lines on Roberts Street. 
 19.8   (e) City of Marble
 19.9             40,000
 19.10  For construction of a water line on 
 19.11  Chernevet Avenue. 
 19.12  (f) City of Eveleth
 19.13           100,000
 19.14  For improvements to the community 
 19.15  hospital's dialysis unit. 
 19.16  (g) City of Aurora
 19.17           100,000
 19.18  For capital improvements to the White 
 19.19  community hospital. 
 19.20  (h) City of Virginia
 19.21           380,000
 19.22  For relocation of the Virginia 
 19.23  rehabilitation center. 
 19.24  (i) City of Buhl
 19.25           180,000
 19.26  For handicapped access improvements to 
 19.27  Martin Hugh high school. 
 19.28  (j) City of Ely
 19.29           200,000
 19.30  For construction of infrastructure in 
 19.31  the city's industrial park. 
 19.32  (k) Chisholm-Hibbing Airport Authority
 19.33           250,000
 19.34  For construction of infrastructure in 
 19.35  the airport industrial park. 
 19.36  Sec. 26.  LEGISLATURE                     50,000               
 19.37  This appropriation is from the general 
 19.38  fund is to be added to any other 
 19.39  appropriation made in the 1997 
 19.40  legislative session to the 
 19.41  legislature.  This appropriation is for 
 19.42  the office of the legislative auditor 
 19.43  for a study and program evaluation of 
 20.1   the public utilities commission.  The 
 20.2   study shall include, among other 
 20.3   things, (1) state functions relating to 
 20.4   public utility regulation assigned to 
 20.5   the commission, department of public 
 20.6   service, and office of the attorney 
 20.7   general, and methods of increasing 
 20.8   efficiency and avoiding unnecessary 
 20.9   duplication of effort in carrying out 
 20.10  these functions, and (2) the future 
 20.11  role of the commission in public 
 20.12  utility regulation and public service 
 20.13  during a time of increasing 
 20.14  deregulation of utilities.  The 
 20.15  legislative auditor shall present an 
 20.16  interim report to the legislature on 
 20.17  the study by January 15, 1998, and 
 20.18  present a final report to the 
 20.19  legislature on the study by February 1, 
 20.20  1999.  This appropriation is available 
 20.21  until June 30, 1999. 
 20.22     Sec. 27.  [FILM PRODUCTIONS JOBS PROGRAM.] 
 20.23     The film production jobs program is created.  The program 
 20.24  shall be operated by the Minnesota film board with 
 20.25  administrative oversight and control by the commissioner of 
 20.26  trade and economic development.  The program shall make payment 
 20.27  to producers of long-form and narrative film productions that 
 20.28  directly create new film jobs in Minnesota.  To be eligible for 
 20.29  a payment, a producer must submit documentation to the Minnesota 
 20.30  film board of expenditures for wages for work on new film 
 20.31  production jobs in Minnesota by resident Minnesotans.  The film 
 20.32  jobs include work such as technical crews, acting talent, set 
 20.33  construction, soundstage or equipment rental, local 
 20.34  postproduction film processing, and other film production jobs.  
 20.35     The film board must make recommendations to the 
 20.36  commissioner about program payment, but the recommendations are 
 20.37  not binding and the commissioner has the authority to make the 
 20.38  final determination on payments.  The commissioner's 
 20.39  determination must be based on the amount of wages documented to 
 20.40  the film board and the likelihood that the payment will lead to 
 20.41  further documentable wage payments.  Payment may not exceed 
 20.42  $100,000 for a long form and narrative film production.  No more 
 20.43  than five percent of the funds appropriated for the program in 
 20.44  any year may be expended for administration.  Individual feature 
 20.45  film projects shooting on or after January 1, 1997, will be 
 20.46  eligible for fund allocations. 
 21.3      The grant under Laws 1995, chapter 224, section 3, to the 
 21.4   Minnesota Technology Corridor Corporation, a 501(c)(3) nonprofit 
 21.5   corporation, does not cancel, and any remaining balance of the 
 21.6   grant that may exist upon the dissolution of the Minnesota 
 21.7   Technology Corridor Corporation shall be transferred to the 
 21.8   William C. Norris Institute, a 501(c)(3) nonprofit corporation. 
 21.10     Subdivision 1.  [ESTABLISHED.] The rural policy and 
 21.11  development center is established at Mankato State University. 
 21.12     Subd. 2.  [GOVERNANCE.] The center is governed by a board 
 21.13  of directors appointed to six-year terms by the governor 
 21.14  comprised of: 
 21.15     (1) two representatives of statewide farm organizations; 
 21.16     (2) a representative from a regional initiative 
 21.17  organization selected under Minnesota Statutes, section 
 21.18  116J.415, subdivision 3; 
 21.19     (3) the president of Mankato State University; 
 21.20     (4) a representative from the general public residing in a 
 21.21  town of less than 5,000 located outside of the metropolitan 
 21.22  area; 
 21.23     (5) three representatives from business, including one 
 21.24  representing rural manufacturing and one rural retail and 
 21.25  service business; and 
 21.26     (6) five representatives from private foundations with a 
 21.27  demonstrated commitment to rural issues. 
 21.28  The president of Mankato State University shall be the chair of 
 21.29  the board. 
 21.30     Subd. 3.  [DUTIES.] The center shall: 
 21.31     (1) identify present and emerging social and economic 
 21.32  issues for rural Minnesota, including health care, 
 21.33  transportation, crime, housing, and job training; 
 21.34     (2) forge alliances and partnerships with rural communities 
 21.35  to find practical solutions to economic and social problems; 
 21.36     (3) provide a resource center for rural communities on 
 22.1   issues of importance to them; 
 22.2      (4) encourage collaboration across higher education 
 22.3   institutions to provide interdisciplinary team approaches to 
 22.4   problem solving with rural communities; and 
 22.5      (5) involve students in center projects. 
 22.6      Subd. 4.  [STATEWIDE FOCUS.] The center has a statewide 
 22.7   mission.  It may contract and collaborate with higher education 
 22.8   and other institutions located throughout the state. 
 22.10     A center for rural policy and development fund is 
 22.11  established as an account in the state treasury.  The 
 22.12  commissioner of finance shall credit to the account the amounts 
 22.13  authorized under this section and appropriations to the 
 22.14  account.  The state board of investment shall ensure that 
 22.15  account money is invested under Minnesota Statutes, section 
 22.16  11A.24.  All money earned by the account must be credited to the 
 22.17  account.  The principal of the account and any unexpended 
 22.18  earnings must be invested and reinvested by the state board of 
 22.19  investment. 
 22.20     Gifts and donations, including land or interests in land, 
 22.21  may be made to the account.  Noncash gifts and donations must be 
 22.22  disposed of for cash as soon as the board prudently can maximize 
 22.23  the value of the gift or donation.  Gifts and donations of 
 22.24  marketable securities may be held or be disposed of for cash at 
 22.25  the option of the board.  The cash receipts of gifts and 
 22.26  donations of cash or capital assets and marketable securities 
 22.27  disposed of for cash must be credited immediately to the 
 22.28  principal of the account.  The value of marketable securities at 
 22.29  the time the gift or donation is made must be credited to the 
 22.30  principal of the account and any earnings from the marketable 
 22.31  securities are earnings of the account.  The earnings in the 
 22.32  account are annually appropriated to the board of the center for 
 22.33  rural policy and development to carry out the duties of the 
 22.34  center. 
 22.36  TRANSITION.] 
 23.1      The governor shall appoint the board of the rural policy 
 23.2   and development center under section 29, subdivision 2, by 
 23.3   August 1, 1997.  Original appointments shall be staggered so 
 23.4   that four members serve two-year terms, four members serve 
 23.5   four-year terms, and five members serve six-year terms.  
 23.6   Thereafter all terms shall be for six years, or for the 
 23.7   unexpired term of a term not completed. 
 23.9      (a) In order to promote the redevelopment of industrial 
 23.10  property in the city of Minneapolis, and to encourage economic 
 23.11  development and the expansion of recreational space along the 
 23.12  Mississippi river, no person may construct, reconstruct, enhance 
 23.13  or expand a steam service facility in that portion of the 
 23.14  Mississippi river critical area that is within the boundaries of 
 23.15  the city of Minneapolis.  The city of Minneapolis and the 
 23.16  University of Minnesota shall jointly develop and submit a plan 
 23.17  to the legislature and to the governor for relocating the 
 23.18  university's steam service facility currently located on the 
 23.19  Mississippi riverfront.  The city and university shall include a 
 23.20  description of the necessary costs that will be incurred, and a 
 23.21  request that the state appropriate funds to reimburse the 
 23.22  entities for some portion of those costs.  
 23.23     (b) Any appropriation made to the city or the university to 
 23.24  reimburse such costs is contingent upon the certification by the 
 23.25  city that the city agrees: 
 23.26     (1) to be responsible for 50 percent of all costs 
 23.27  reasonably incurred by the university in relocating the current 
 23.28  steam service facility, in excess of any appropriation from the 
 23.29  state, and in excess of the amount the university has budgeted 
 23.30  for expanding and enhancing the current steam service facility 
 23.31  to allow for fuel flexibility; and 
 23.32     (2) to reimburse the university for 50 percent of all 
 23.33  additional fuel costs incurred by the university which are 
 23.34  caused by an interruption in the supply of gas to the 
 23.35  university's relocated steam service facility. 
 24.1      The legislative audit commission is requested to undertake 
 24.2   a study, for reporting to the 1998 legislative session, of the 
 24.3   advisability of removing state services for the blind from the 
 24.4   department of economic security and creating a separate board 
 24.5   for the blind, governed by a board appointed by the governor.  
 24.6   The study should include the factors of mission, identity, 
 24.7   visibility, service, accountability to blind citizens, consumer 
 24.8   involvement, administration, finance, and employment.  The study 
 24.9   should be performed in consultation with the rehabilitation 
 24.10  advisory council for the blind, as well as with consumer groups 
 24.11  and blind individuals. 
 24.12     Sec. 34.  [STUDY OF JOB-TRAINING PROGRAMS.] 
 24.13     Subdivision 1.  [STUDY.] The commissioners of trade and 
 24.14  economic development, labor and industry, and economic security 
 24.15  shall conduct a joint study of job-training programs funded 
 24.16  wholly or partly with state funds.  The commissioners must 
 24.17  report to the governor and legislature on the development of the 
 24.18  study by January 15, 1998. 
 24.19     Subd. 2.  [LONG-TERM TRACKING.] The study must include 
 24.20  findings and recommendations on the feasibility and desirability 
 24.21  of creating and implementing long-term tracking of individuals 
 24.22  who complete state-funded job training programs.  The 
 24.23  recommended tracking must provide, among other things, for 
 24.24  comparison of per capita income and wages earned by participants 
 24.25  in these programs with those earned by nonparticipants who are 
 24.26  in the same socioeconomic group as participants at the time of 
 24.27  program entry.  The study shall take into consideration the 
 24.28  physical and mental capabilities of individuals as well as their 
 24.29  levels of learning and training. 
 24.30     Subd. 3.  [COST REPORT.] The study must include a 
 24.31  compilation of all job training programs funded wholly or partly 
 24.32  with state funds for the purpose of determining the true cost of 
 24.33  these programs.  The study shall include, for each such program: 
 24.34     (1) a program description; 
 24.35     (2) the total costs, including those incurred by federal, 
 24.36  state, and local governments; 
 25.1      (3) economic benefits; and 
 25.2      (4) a comparison of the per-capita cost with the increases 
 25.3   in wages earned by program participants. 
 25.5      During the biennium ending June 30, 1999, the legislative 
 25.6   coordinating commission may employ an international affairs 
 25.7   coordinator to: 
 25.8      (1) host international visitors; 
 25.9      (2) promote international education, research, and 
 25.10  exchanges; and 
 25.11     (3) monitor federal laws and agreements. 
 25.12     All state agencies shall assist the coordinator in the 
 25.13  performance of the coordinator's duties. 
 25.15     It is in the interest of the state of Minnesota that 
 25.16  determinations of whether a worker is an independent contractor 
 25.17  be consistent among departments and agencies.  To that end, the 
 25.18  commissioner of economic security shall, in conjunction with 
 25.19  other affected departments, study the feasibility of a uniform 
 25.20  process for determining whether a worker is an independent 
 25.21  contractor.  The commissioner of economic security shall report 
 25.22  any recommendations to the legislature by February 1, 1998. 
 25.23     Sec. 37.  Minnesota Statutes 1996, section 38.02, 
 25.24  subdivision 1, is amended to read: 
 25.25     Subdivision 1.  [PRO RATA DISTRIBUTION; CONDITIONS.] (1) 
 25.26  Money appropriated to aid county and district agricultural 
 25.27  societies and associations shall be distributed among all county 
 25.28  and district agricultural societies or associations in the state 
 25.29  pro rata, upon condition that each of them has complied with the 
 25.30  conditions specified in clause (2). 
 25.31     (2) To be eligible to participate in such distribution, 
 25.32  each such agricultural society or association (a) shall have 
 25.33  held an annual fair for each of the three years last past, 
 25.34  unless prevented from doing so because of a calamity or an 
 25.35  epidemic declared by the board of health as defined in section 
 25.36  145A.02, subdivision 2, or the state commissioner of health to 
 26.1   exist; (b) shall have an annual membership of 25 or more; (c) 
 26.2   shall have paid out to exhibitors for premiums awarded at the 
 26.3   last fair held a sum not less than the amount to be received 
 26.4   from the state; (d) shall have published and distributed not 
 26.5   less than three weeks before the opening day of the fair a 
 26.6   premium list, listing all items or articles on which premiums 
 26.7   are offered and the amounts of such premiums and shall have paid 
 26.8   premiums pursuant to the amount shown for each article or item 
 26.9   to be exhibited; provided that premiums for school exhibits may 
 26.10  be advertised in the published premium list by reference to a 
 26.11  school premium list prepared and circulated during the preceding 
 26.12  school year; and shall have collected all fees charged for 
 26.13  entering an exhibit at the time the entry was made and in 
 26.14  accordance with schedule of entry fees to be charged as 
 26.15  published in the premium list; (e) shall have paid not more than 
 26.16  one premium on each article or item exhibited, excluding 
 26.17  championship or sweepstake awards, and excluding the payment of 
 26.18  open class premium awards to 4H Club exhibits which at this same 
 26.19  fair had won a first prize award in regular 4H Club competition; 
 26.20  (f) shall have submitted its records and annual report to the 
 26.21  commissioner of agriculture trade and economic development on a 
 26.22  form provided by the commissioner of agriculture trade and 
 26.23  economic development, on or before the first day of November of 
 26.24  the current year. 
 26.25     (3) All payments authorized under the provisions of this 
 26.26  chapter shall be made only upon the presentation by the 
 26.27  commissioner of agriculture trade and economic development with 
 26.28  the commissioner of finance of a statement of premium 
 26.29  allocations.  As used herein the term premium shall mean the 
 26.30  cash award paid to an exhibitor for the merit of an exhibit of 
 26.31  livestock, livestock products, grains, fruits, flowers, 
 26.32  vegetables, articles of domestic science, handicrafts, hobbies, 
 26.33  fine arts, and articles made by school pupils, or the cash award 
 26.34  paid to the merit winner of events such as 4H Club or Future 
 26.35  Farmer Contest, Youth Group Contests, school spelling contests 
 26.36  and school current events contests, the award corresponding to 
 27.1   the amount offered in the advertised premium list referred to in 
 27.2   schedule 2.  Payments of awards for horse races, ball games, 
 27.3   musical contests, talent contests, parades, and for amusement 
 27.4   features for which admission is charged, are specifically 
 27.5   excluded from consideration as premiums within the meaning of 
 27.6   that term as used herein.  Upon receipt of the statement by the 
 27.7   commissioner of agriculture trade and economic development, it 
 27.8   shall be the duty of the commissioner of finance to draw a 
 27.9   voucher in favor of the agricultural society or association for 
 27.10  the amount to which it is entitled under the provisions of this 
 27.11  chapter, which amount shall be computed as follows:  On the 
 27.12  first $750 premiums paid by each society or association, such 
 27.13  society or association shall receive 100 percent reimbursement; 
 27.14  on the second $750 premiums paid, 80 percent; on the third $750 
 27.15  premiums paid, 60 percent; and on any sum in excess of $2,250, 
 27.16  40 percent. 
 27.17     (4) If the total amount of state aid to which the 
 27.18  agricultural societies and associations are entitled under the 
 27.19  provisions of this chapter exceeds the amount of the 
 27.20  appropriation therefor, the amounts to which the societies or 
 27.21  associations are entitled shall be prorated so that the total 
 27.22  payments by the state will not exceed the appropriation. 
 27.23     Sec. 38.  Minnesota Statutes 1996, section 38.02, 
 27.24  subdivision 2, is amended to read: 
 27.26  AND ECONOMIC DEVELOPMENT, DUTIES.] It shall be the duty of The 
 27.27  commissioner of agriculture to trade and economic development 
 27.28  shall prescribe uniform forms and methods of accounting to be 
 27.29  used by agricultural societies, and associations. 
 27.30     Sec. 39.  Minnesota Statutes 1996, section 38.02, 
 27.31  subdivision 3, is amended to read: 
 27.33  AND ECONOMIC DEVELOPMENT.] Any county or district agricultural 
 27.34  society which has held its second annual fair is entitled to 
 27.35  share pro rata in the distribution.  The commissioner 
 27.36  of agriculture trade and economic development shall certify to 
 28.1   the secretary of the state agricultural society, within 30 days 
 28.2   after payments have been made, a list of all county or district 
 28.3   agricultural societies that have complied with this chapter, and 
 28.4   which are entitled to share in the appropriation.  All payments 
 28.5   shall be made within three months after the agricultural 
 28.6   societies submitted their reports under subdivision 1, clause 
 28.7   (2)(f). 
 28.8      Sec. 40.  Minnesota Statutes 1996, section 44A.01, 
 28.9   subdivision 2, is amended to read: 
 28.10     Subd. 2.  [BOARD MEMBERSHIP.] The corporation is governed 
 28.11  by a board of directors consisting of: 
 28.12     (1) four members, representing the international business 
 28.13  community, elected to six-year three-year terms by the 
 28.14  association of members established under section 44A.023, 
 28.15  subdivision 2, clause (5); 
 28.16     (2) four members, representing the international business 
 28.17  community, appointed by the governor, to serve at the governor's 
 28.18  pleasure; 
 28.19     (3) the mayor of St. Paul or the mayor's designee; 
 28.20     (4) the commissioners of trade and economic development, 
 28.21  agriculture, and commerce; and 
 28.22     (5) three members of the house appointed by the speaker of 
 28.23  the house and three members of the senate appointed under the 
 28.24  rules of the senate, who serve as nonvoting members.  One member 
 28.25  from each house must be a member of the minority party of that 
 28.26  house.  Legislative members are appointed at the beginning of 
 28.27  each regular session of the legislature for two-year terms.  A 
 28.28  legislator who remains a member of the body from which the 
 28.29  legislator was appointed may serve until a successor is 
 28.30  appointed and qualifies.  A vacancy in a legislator member's 
 28.31  term is filled for the unexpired portion of the term in the same 
 28.32  manner as the original appointment. 
 28.33     Members appointed by the governor must be knowledgeable or 
 28.34  experienced in international trade in products or services. 
 28.35     Sec. 41.  [45.0295] [FEES.] 
 28.36     (a) The following fees shall be paid to the commissioner: 
 29.1      (1) for a letter of certification of licensure, $10; 
 29.2      (2) for a license history, $20; 
 29.3      (3) for a duplicate license, $10; 
 29.4      (4) for a change of name or address, $10; 
 29.5      (5) for a temporary license, $10; 
 29.6      (6) for each hour or fraction of one hour of course 
 29.7   approval for continuing education sought, $10; and 
 29.8      (7) for each continuing education course coordinator 
 29.9   approval, $100. 
 29.10     (b) All fees paid to the commissioner under this section 
 29.11  are nonrefundable, except that an overpayment of a fee shall be 
 29.12  returned upon proper application. 
 29.13     Sec. 42.  Minnesota Statutes 1996, section 60A.075, is 
 29.14  amended by adding a subdivision to read: 
 29.15     Subd. 18.  [DIVIDEND RESTRICTION; STATE LOANS.] No stock 
 29.16  company may pay a dividend or other distribution to its 
 29.17  shareholders, and no mutual company may pay a dividend or other 
 29.18  distribution to its policyholders, if the company has a loan 
 29.19  outstanding from the state. 
 29.20     Sec. 43.  Minnesota Statutes 1996, section 60A.23, 
 29.21  subdivision 8, is amended to read: 
 29.24  subdivision applies to any vendor of risk management services 
 29.25  and to any entity which administers, for compensation, a 
 29.26  self-insurance or insurance plan.  This subdivision does not 
 29.27  apply (a) to an insurance company authorized to transact 
 29.28  insurance in this state, as defined by section 60A.06, 
 29.29  subdivision 1, clauses (4) and (5); (b) to a service plan 
 29.30  corporation, as defined by section 62C.02, subdivision 6; (c) to 
 29.31  a health maintenance organization, as defined by section 62D.02, 
 29.32  subdivision 4; (d) to an employer directly operating a 
 29.33  self-insurance plan for its employees' benefits; (e) to an 
 29.34  entity which administers a program of health benefits 
 29.35  established pursuant to a collective bargaining agreement 
 29.36  between an employer, or group or association of employers, and a 
 30.1   union or unions; or (f) to an entity which administers a 
 30.2   self-insurance or insurance plan if a licensed Minnesota insurer 
 30.3   is providing insurance to the plan and if the licensed insurer 
 30.4   has appointed the entity administering the plan as one of its 
 30.5   licensed agents within this state. 
 30.6      (2)  [DEFINITIONS.] For purposes of this subdivision the 
 30.7   following terms have the meanings given them. 
 30.8      (a) "Administering a self-insurance or insurance plan" 
 30.9   means (i) processing, reviewing or paying claims, (ii) 
 30.10  establishing or operating funds and accounts, or (iii) otherwise 
 30.11  providing necessary administrative services in connection with 
 30.12  the operation of a self-insurance or insurance plan. 
 30.13     (b) "Employer" means an employer, as defined by section 
 30.14  62E.02, subdivision 2. 
 30.15     (c) "Entity" means any association, corporation, 
 30.16  partnership, sole proprietorship, trust, or other business 
 30.17  entity engaged in or transacting business in this state. 
 30.18     (d) "Self-insurance or insurance plan" means a plan 
 30.19  providing life, medical or hospital care, accident, sickness or 
 30.20  disability insurance for the benefit of employees or members of 
 30.21  an association, or a plan providing liability coverage for any 
 30.22  other risk or hazard, which is or is not directly insured or 
 30.23  provided by a licensed insurer, service plan corporation, or 
 30.24  health maintenance organization. 
 30.25     (e) "Vendor of risk management services" means an entity 
 30.26  providing for compensation actuarial, financial management, 
 30.27  accounting, legal or other services for the purpose of designing 
 30.28  and establishing a self-insurance or insurance plan for an 
 30.29  employer. 
 30.30     (3)  [LICENSE.] No vendor of risk management services or 
 30.31  entity administering a self-insurance or insurance plan may 
 30.32  transact this business in this state unless it is licensed to do 
 30.33  so by the commissioner.  An applicant for a license shall state 
 30.34  in writing the type of activities it seeks authorization to 
 30.35  engage in and the type of services it seeks authorization to 
 30.36  provide.  The license may be granted only when the commissioner 
 31.1   is satisfied that the entity possesses the necessary 
 31.2   organization, background, expertise, and financial integrity to 
 31.3   supply the services sought to be offered.  The commissioner may 
 31.4   issue a license subject to restrictions or limitations upon the 
 31.5   authorization, including the type of services which may be 
 31.6   supplied or the activities which may be engaged in.  The license 
 31.7   fee is $100 $500 for the initial application and $500 for each 
 31.8   two-year renewal.  All licenses are for a period of two years. 
 31.10  To assure that self-insurance or insurance plans are financially 
 31.11  solvent, are administered in a fair and equitable fashion, and 
 31.12  are processing claims and paying benefits in a prompt, fair, and 
 31.13  honest manner, vendors of risk management services and entities 
 31.14  administering insurance or self-insurance plans are subject to 
 31.15  the supervision and examination by the commissioner.  Vendors of 
 31.16  risk management services, entities administering insurance or 
 31.17  self-insurance plans, and insurance or self-insurance plans 
 31.18  established or operated by them are subject to the trade 
 31.19  practice requirements of sections 72A.19 to 72A.30.  In lieu of 
 31.20  an unlimited guarantee from a parent corporation for a vendor of 
 31.21  risk management services or an entity administering insurance or 
 31.22  self-insurance plans, the commissioner may accept a surety bond 
 31.23  in a form satisfactory to the commissioner in an amount equal to 
 31.24  120 percent of the total amount of claims handled by the 
 31.25  applicant in the prior year.  If at any time the total amount of 
 31.26  claims handled during a year exceeds the amount upon which the 
 31.27  bond was calculated, the administrator shall immediately notify 
 31.28  the commissioner.  The commissioner may require that the bond be 
 31.29  increased accordingly. 
 31.30     (5)  [RULEMAKING AUTHORITY.] To carry out the purposes of 
 31.31  this subdivision, the commissioner may adopt rules pursuant to 
 31.32  sections 14.001 to 14.69.  These rules may: 
 31.33     (a) establish reporting requirements for administrators of 
 31.34  insurance or self-insurance plans; 
 31.35     (b) establish standards and guidelines to assure the 
 31.36  adequacy of financing, reinsuring, and administration of 
 32.1   insurance or self-insurance plans; 
 32.2      (c) establish bonding requirements or other provisions 
 32.3   assuring the financial integrity of entities administering 
 32.4   insurance or self-insurance plans; or 
 32.5      (d) establish other reasonable requirements to further the 
 32.6   purposes of this subdivision. 
 32.7      Sec. 44.  Minnesota Statutes 1996, section 60A.71, is 
 32.8   amended by adding a subdivision to read: 
 32.9      Subd. 7.  [FEES.] Each applicant for a reinsurance 
 32.10  intermediary license shall pay to the commissioner a fee of $160 
 32.11  for an initial two-year license and a fee of $120 for each 
 32.12  renewal.  Applications shall be submitted on forms prescribed by 
 32.13  the commissioner. 
 32.14     Sec. 45.  Minnesota Statutes 1996, section 60K.06, 
 32.15  subdivision 2, is amended to read: 
 32.16     Subd. 2.  [LICENSING FEES.] (a) In addition to the fees and 
 32.17  charges provided for examinations, each agent licensed pursuant 
 32.18  to section 60K.03 shall pay to the commissioner: 
 32.19     (1) a fee of $60 per license for an initial license issued 
 32.20  to an individual agent, and a fee of $60 for each renewal; 
 32.21     (2) a fee of $160 for an initial license issued to a 
 32.22  partnership, limited liability company, or corporation, and a 
 32.23  fee of $120 for each renewal; 
 32.24     (3) a fee of $75 for an initial amendment (variable 
 32.25  annuity) to a license, and a fee of $50 for each renewal; and 
 32.26     (4) a fee of $500 for an initial surplus lines agent's 
 32.27  license, and a fee of $500 for each renewal; 
 32.28     (5) for issuing a duplicate license, $10; and 
 32.29     (6) for issuing licensing histories, $20. 
 32.30     (b) Persons whose applications have been properly and 
 32.31  timely filed who have not received notice of denial of renewal 
 32.32  are approved for renewal and may continue to transact business 
 32.33  whether or not the renewed license has been received on or 
 32.34  before November 1 of the renewal year.  Applications for renewal 
 32.35  of a license are timely filed if received by the commissioner on 
 32.36  or before the 15th day preceding the license renewal date of the 
 33.1   applicant on forms duly executed and accompanied by appropriate 
 33.2   fees.  An application mailed is considered timely filed if 
 33.3   addressed to the commissioner, with proper postage, and 
 33.4   postmarked on or before the 15th day preceding the licensing 
 33.5   renewal date of the applicant. 
 33.6      (c) Initial licenses issued under this section must be 
 33.7   valid for a period not to exceed two years.  The commissioner 
 33.8   shall assign an expiration date to each initial license so that 
 33.9   approximately one-half of all licenses expire each year.  Each 
 33.10  initial license must expire on October 31 of the expiration year 
 33.11  assigned by the commissioner. 
 33.12     (d) All fees shall be retained by the commissioner and are 
 33.13  nonreturnable, except that an overpayment of any fee must be 
 33.14  refunded upon proper application. 
 33.15     Sec. 46.  Minnesota Statutes 1996, section 65B.48, 
 33.16  subdivision 3, is amended to read: 
 33.17     Subd. 3.  Self-insurance, subject to approval of the 
 33.18  commissioner, is effected by filing with the commissioner in 
 33.19  satisfactory form: 
 33.20     (1) a continuing undertaking by the owner or other 
 33.21  appropriate person to pay tort liabilities or basic economic 
 33.22  loss benefits, or both, and to perform all other obligations 
 33.23  imposed by sections 65B.41 to 65B.71; 
 33.24     (2) evidence that appropriate provision exists for prompt 
 33.25  administration of all claims, benefits, and obligations provided 
 33.26  by sections 65B.41 to 65B.71; 
 33.27     (3) evidence that reliable financial arrangements, 
 33.28  deposits, or commitments exist providing assurance, 
 33.29  substantially equivalent to that afforded by a policy of 
 33.30  insurance complying with sections 65B.41 to 65B.71, for payment 
 33.31  of tort liabilities, basic economic loss benefits, and all other 
 33.32  obligations imposed by sections 65B.41 to 65B.71; and 
 33.33     (4) a nonrefundable initial application fee of $500 and an 
 33.34  annual renewal fee of $100 for political subdivisions and $250 
 33.35  for nonpolitical entities.  
 33.36     Sec. 47.  Minnesota Statutes 1996, section 72B.04, 
 34.1   subdivision 10, is amended to read: 
 34.2      Subd. 10.  [FEES.] A fee of $40 is imposed for each initial 
 34.3   license or temporary permit and $25 for each renewal thereof or 
 34.4   amendment thereto.  A fee of $20 is imposed for each examination 
 34.5   taken.  A fee of $20 is imposed for the registration of each 
 34.6   nonlicensed adjuster who is required to register under section 
 34.7   72B.06.  All fees shall be transmitted to the commissioner and 
 34.8   shall be payable to the state treasurer.  If a fee is paid for 
 34.9   an examination and if within one year from the date of that 
 34.10  payment no written request for a refund is received by the 
 34.11  commissioner or the examination for which the fee was paid is 
 34.12  not taken, the fee is forfeited to the state of Minnesota. 
 34.13     Sec. 48.  Minnesota Statutes 1996, section 79.253, 
 34.14  subdivision 1, is amended to read: 
 34.15     Subdivision 1.  [CREATION OF ACCOUNT.] There is created the 
 34.16  assigned risk safety account as a separate account in the 
 34.17  special compensation fund in the state treasury.  Income earned 
 34.18  by funds in the account must be credited to the account.  
 34.19  Principal and income of the account are annually appropriated to 
 34.20  the commissioner of labor and industry and must be used for 
 34.21  grants and loans under this section to establish and promote 
 34.22  workplace safety and health programs. 
 34.23     Sec. 49.  Minnesota Statutes 1996, section 79.255, is 
 34.24  amended by adding a subdivision to read: 
 34.25     Subd. 10.  [FEE.] A registration or exemption certificate 
 34.26  fee of $50 shall be paid. 
 34.27     Sec. 50.  Minnesota Statutes 1996, section 79.361, 
 34.28  subdivision 1, is amended to read: 
 34.29     Subdivision 1.  [SCOPE.] This section governs the 
 34.30  distribution of excess surplus of the workers' compensation 
 34.31  reinsurance association declared after January 1, 1993.  A 
 34.32  distribution of excess surplus is declared on the date the board 
 34.33  votes to make a distribution.  No distribution of excess 
 34.34  surplus, whether characterized as excess surplus, excess 
 34.35  premium, or otherwise, other than that provided by this section 
 34.36  may be made. 
 35.1      Sec. 51.  [79.3615] [USE OF WORKER'S COMPENSATION 
 35.3      (a) An insurer shall use funds received by the insurer from 
 35.4   the worker's compensation reinsurance association, whether 
 35.5   characterized as distribution of surplus, refund of premium, or 
 35.6   otherwise, only for the purpose of providing a credit against 
 35.7   future premiums charged by the insurer to its workers' 
 35.8   compensation policyholders.  The insurer must apply the credits 
 35.9   on a prorata basis to premiums on policies issued or renewed on 
 35.10  or after the first day of the first month that begins six months 
 35.11  after the date that the insurer received the funds.  Premium 
 35.12  quotes and premium billings must show the full premium, the 
 35.13  credit required by this section, and the resulting net premium.  
 35.14  The funds must be completely distributed as premium credits 
 35.15  under this section evenly over a 12-month period.  This section 
 35.16  does not adversely affect any rights of policyholders under 
 35.17  section 79.361 and applies only when funds are distributed to 
 35.18  the insurer rather than distributed to policyholders under that 
 35.19  section. 
 35.20     (b) Before any premiums may be repaid under this section 
 35.21  the obligation under section 79.31, subdivision 1a, must be 
 35.22  satisfied. 
 35.23     Sec. 52.  Minnesota Statutes 1996, section 79.371, is 
 35.24  amended by adding a subdivision to read:  
 35.25     Subdivision 1a.  [ASSOCIATION OBLIGATION.] The reinsurance 
 35.26  association shall, no later than July 1, 1998, make funds 
 35.27  available to the state fund mutual insurance company in the 
 35.28  amount of $5,600,000 for the purpose of repaying the obligation 
 35.29  under sections 176A.11 and 176A.12 according to terms and 
 35.30  conditions approved by the commissioner.  The obligation to make 
 35.31  these funds available supersedes any inconsistent requirements 
 35.32  of this chapter, the bylaws or plan of operation of the 
 35.33  association, or duty or obligation imposed upon the board.  The 
 35.34  obligation to make funds available under this subdivision does 
 35.35  not apply if, on July 1, 1998, state fund mutual insurance 
 35.36  company has satisfied the indebtedness under sections 176A.11 
 36.1   and 176A.12. 
 36.2      Sec. 53.  Minnesota Statutes 1996, section 82.21, 
 36.3   subdivision 1, is amended to read: 
 36.4      Subdivision 1.  [AMOUNTS.] The following fees shall be paid 
 36.5   to the commissioner: 
 36.6      (a) A fee of $150 for each initial individual broker's 
 36.7   license, and a fee of $100 for each renewal thereof; 
 36.8      (b) A fee of $70 for each initial salesperson's license, 
 36.9   and a fee of $40 for each renewal thereof; 
 36.10     (c) A fee of $85 for each initial real estate closing agent 
 36.11  license, and a fee of $60 for each renewal thereof; 
 36.12     (d) A fee of $150 for each initial corporate, limited 
 36.13  liability company, or partnership license, and a fee of $100 for 
 36.14  each renewal thereof; 
 36.15     (e) A fee for payment to the education, research and 
 36.16  recovery fund in accordance with section 82.34; 
 36.17     (f) A fee of $20 for each transfer; 
 36.18     (g) A fee of $50 for a corporation, limited liability 
 36.19  company, or partnership name change; 
 36.20     (h) A fee of $10 for an agent name change; 
 36.21     (i) A fee of $20 for a license history; 
 36.22     (j) A fee of $10 for a duplicate license; 
 36.23     (k) A fee of $50 for license reinstatement; and 
 36.24     (l) (h) A fee of $20 for reactivating a corporate, limited 
 36.25  liability company, or partnership license without land; 
 36.26     (m) A fee of $100 for course coordinator approval; and 
 36.27     (n) A fee of $20 for each hour or fraction of one hour of 
 36.28  course approval sought. 
 36.29     Sec. 54.  Minnesota Statutes 1996, section 82B.09, 
 36.30  subdivision 1, is amended to read: 
 36.31     Subdivision 1.  [AMOUNTS.] The following fees must be paid 
 36.32  to the commissioner: 
 36.33     (1) for each initial individual real estate appraiser's 
 36.34  license:  $150 if the license expires more than 12 months after 
 36.35  issuance, $100 if the license expires less than 12 months after 
 36.36  issuance; and a fee of $100 for each renewal;. 
 37.1      (2) a fee of $10 for a change in personal name or trade 
 37.2   name or personal address or business location; 
 37.3      (3) a fee of $10 for a license history; 
 37.4      (4) a fee of $25 for a duplicate license; 
 37.5      (5) a fee of $100 for appraiser course coordinator 
 37.6   approval; and 
 37.7      (6) a fee of $10 for each hour or fraction of one hour of 
 37.8   course approval sought. 
 37.9      Sec. 55.  Minnesota Statutes 1996, section 116J.551, is 
 37.10  amended to read: 
 37.11     116J.551 [CREATION OF ACCOUNT.] 
 37.12     A contaminated site cleanup and development account is 
 37.13  created in the general special revenue fund.  Money in the 
 37.14  account may be used, as appropriated by law, is appropriated to 
 37.15  the commissioner to make grants as provided in section 116J.554 
 37.16  and to pay for the commissioner's costs in reviewing 
 37.17  applications and making grants. 
 37.18     Sec. 56.  [116J.8745] [MICROENTERPRISE ENTREPRENEURIAL 
 37.19  ASSISTANCE.] 
 37.20     Subdivision 1.  [TECHNICAL ASSISTANCE; LOAN 
 37.21  ADMINISTRATION.] The commissioner of trade and economic 
 37.22  development shall make grants to nonprofit organizations to 
 37.23  provide technical assistance to individuals with entrepreneurial 
 37.24  plans that require microenterprise loans in an amount ranging 
 37.25  from approximately $1,000 to $25,000, and for loan 
 37.26  administration costs related to those microenterprise loans.  
 37.27  Microenterprise is a small business which employs under five 
 37.28  employees plus the owner and requires under $25,000 to start. 
 37.29     Subd. 2.  [GRANT ELIGIBILITY AND ALLOCATION.] Nonprofit 
 37.30  organizations must apply for grants under this section following 
 37.31  procedures established by the commissioner.  To be eligible for 
 37.32  a grant, an organization must demonstrate to the commissioner 
 37.33  that it has the appropriate expertise.  The commissioner shall 
 37.34  give preference for grants to organizations that target 
 37.35  nontraditional entrepreneurs such as women, members of a 
 37.36  minority, low-income individuals, or persons seeking work who 
 38.1   are currently on or recently removed from welfare assistance. 
 38.2      An application must include: 
 38.3      (1) the local need for microenterprise support; 
 38.4      (2) proposed criteria for business eligibility; 
 38.5      (3) proposals for identifying and serving eligible 
 38.6   businesses; 
 38.7      (4) a description of technical assistance to be provided to 
 38.8   eligible businesses; 
 38.9      (5) proposals to coordinate technical assistance with 
 38.10  financial assistance; and 
 38.11     (6) a demonstration of ability to collaborate with other 
 38.12  agencies including educational and financial institutions. 
 38.13     Subd. 3.  [GRANT EVALUATIONS.] Grant recipients must report 
 38.14  to the commissioner by February 1 in each of the two years 
 38.15  succeeding the year of receipt of the grant.  The report must 
 38.16  detail the number of customers served, the number of businesses 
 38.17  started, stabilized, or expanded, the number of jobs created and 
 38.18  retained, and business success rates.  The commissioner shall 
 38.19  report to the legislature on the microenterprise entrepreneurial 
 38.20  assistance.  The report shall contain an evaluation of the 
 38.21  results, recommendations to continue or change the program, and 
 38.22  a suggested level of funding. 
 38.23     Sec. 57.  [116J.8755] [SMALL BUSINESS; ELECTRONIC ACCESS TO 
 38.25     The commissioner shall develop a plan for enabling small 
 38.26  businesses to gain electronic access to international markets 
 38.27  through mechanisms that may include electronic trade points. 
 38.28     Sec. 58.  [116J.992] [TACONITE MINING GRANTS.] 
 38.29     (a) The commissioner shall establish a program to make 
 38.30  grants to taconite mining companies to enable them to research 
 38.31  technologies that: 
 38.32     (1) reduce energy consumption; 
 38.33     (2) reduce environmental emissions; 
 38.34     (3) improve productivity; or 
 38.35     (4) improve pellet quality. 
 38.36     (b) To receive a grant a recipient must convey to the state 
 39.1   permanent ownership of both mineral reserves and corresponding 
 39.2   surface lands that: 
 39.3      (1) contain unmined taconite with a 23 percent minimum 
 39.4   magnetic iron content; 
 39.5      (2) have an open pit stripping ratio of less than 1.5 to 1; 
 39.6      (3) are unencumbered by current or planned surface 
 39.7   development; 
 39.8      (4) are substantially unencumbered by past mining activity; 
 39.9      (5) have marketable title for both surface and mineral 
 39.10  interests; and 
 39.11     (6) are in an area that could reasonably be expected to be 
 39.12  mined within 50 years. 
 39.13     (c) A grant may not exceed the value of the mineral 
 39.14  reserves and surface land as assessed by the commissioner of 
 39.15  natural resources.  When assessing value, the commissioner must, 
 39.16  at a minimum, take into account the future value of any royalty 
 39.17  stream, the state's cost of capital, the costs of removing any 
 39.18  encumbrances, and the probability that the reserves will be 
 39.19  mined in the future.  Any revenue generated by ownership or sale 
 39.20  of the property must be deposited in the general fund. 
 39.21     Sec. 59.  Minnesota Statutes 1996, section 116L.04, 
 39.22  subdivision 1, is amended to read: 
 39.23     Subdivision 1.  [GRANTS-IN-AID.] (a) The partnership may 
 39.24  provide grants-in-aid to educational or other nonprofit 
 39.25  institutions using the following guidelines:  
 39.26     (1) the educational or other nonprofit institution is a 
 39.27  provider of training within the state in either the public or 
 39.28  private sector; 
 39.29     (2) the program involves skills training that is an area of 
 39.30  employment need; and 
 39.31     (3) preference will be given to educational or other 
 39.32  nonprofit institutions which serve economically disadvantaged 
 39.33  people, minorities, or those who are victims of economic 
 39.34  dislocation and to businesses located in rural areas.  
 39.35     (b) A single grant to any one institution shall not exceed 
 39.36  $200,000 $400,000.  
 40.1      Sec. 60.  Minnesota Statutes 1996, section 116O.05, is 
 40.2   amended by adding a subdivision to read: 
 40.3      Subd. 4.  [SUPPORTING ORGANIZATIONS.] On making a 
 40.4   determination that the public policies and purposes of this 
 40.5   chapter will be carried out to a greater extent than what might 
 40.6   otherwise occur, the board may cause to be created and may 
 40.7   delegate, assign, or transfer to one or more entities, including 
 40.8   without limitation a corporation, nonprofit corporation, limited 
 40.9   liability company, partnership, or limited partnership, and or 
 40.10  all rights and duties, assets and liabilities, powers or 
 40.11  authority created, authorized, or allowed under this chapter, 
 40.12  including without limitation those pertaining to the seed 
 40.13  capital fund under section 116O.122, except to the extent 
 40.14  specifically limited by the constitution or by law. 
 40.15     Sec. 61.  Minnesota Statutes 1996, section 116O.122, 
 40.16  subdivision 1, is amended to read: 
 40.17     Subdivision 1.  [ESTABLISHMENT.] The corporation shall, in 
 40.18  consultation with private venture and seed capital companies and 
 40.19  other public and private organizations as appropriate, implement 
 40.20  a centrally managed seed capital fund to invest in early stage 
 40.21  companies and small companies in Minnesota through equity or 
 40.22  equity-type investments.  The seed capital fund may receive 
 40.23  contributions from the corporation, as well as from local, 
 40.24  state, or federal government, private foundations, or other 
 40.25  sources.  Total investments by the seed capital fund in 
 40.26  seven-county metropolitan area based companies must not exceed 
 40.27  20 percent of the total amount invested capitalization 
 40.28  appropriated by the legislature or provided by the corporation.  
 40.29  Investments which contribute to the 20 percent metropolitan area 
 40.30  limitation are those which will primarily enhance the operations 
 40.31  of a metropolitan based facility.  Investments that benefit a 
 40.32  Greater Minnesota facility of a metropolitan based company are 
 40.33  not subject to the limitation.  Investments by the seed capital 
 40.34  fund must be matched by other sources of capital at a ratio to 
 40.35  be determined by the corporation.  The seed capital fund shall 
 40.36  identify sources of technical, management, and marketing 
 41.1   assistance for companies funded by the seed capital program and 
 41.2   make appropriate referrals.  The seed capital fund shall 
 41.3   establish a procedure for liquidating private investments. 
 41.4      Sec. 62.  Minnesota Statutes 1996, section 138.91, is 
 41.5   amended by adding a subdivision to read: 
 41.6      Subd. 4.  [SALARY SUPPLEMENT.] The Minnesota humanities 
 41.7   commission is eligible for a salary supplement in the same 
 41.8   manner as state agencies.  The commissioner of finance shall 
 41.9   determine the amount of the salary supplement based on available 
 41.10  appropriations.  Employees of the commission shall be paid in 
 41.11  accordance with the appropriate pay plan. 
 41.12     Sec. 63.  Minnesota Statutes 1996, section 155A.045, 
 41.13  subdivision 1, is amended to read: 
 41.14     Subdivision 1.  [SCHEDULE.] The fee schedule for licensees 
 41.15  is as follows: 
 41.16     (a) Three-year license fees: 
 41.17     (1) cosmetologist, manicurist, esthetician, $45 for each 
 41.18  initial license and $30 for each renewal; 
 41.19     (2) instructor, manager, $60 for each initial license, 
 41.20  and $45 for each renewal; 
 41.21     (3) salon, $65 for each initial license, and $50 for each 
 41.22  renewal; and 
 41.23     (4) school, $750. 
 41.24     (b) Penalties: 
 41.25     (1) reinspection fee, variable; and 
 41.26     (2) manager with lapsed practitioner, $25. 
 41.27     (c) Administrative fees: 
 41.28     (1) duplicate license (includes individual name or address 
 41.29  change), $5; 
 41.30     (2) certificate of identification, $20; 
 41.31     (3) processing fee (covers licensing history or 
 41.32  certification of licensure, restoration of lapsed license, salon 
 41.33  name change, school name change, late renewals, applications for 
 41.34  new licenses), $15; and 
 41.35     (4) (2) school original application, $150. 
 41.36     Sec. 64.  Minnesota Statutes 1996, section 176.181, 
 42.1   subdivision 2a, is amended to read: 
 42.2      Subd. 2a.  [APPLICATION FEE.] Every initial application 
 42.3   filed pursuant to subdivision 2 requesting authority to 
 42.4   self-insure shall be accompanied by a nonrefundable fee of 
 42.5   $1,000 $2,500.  The fee is not refundable.  When an employer 
 42.6   seeks to be added as a member of an existing approved group 
 42.7   under section 79A.03, subdivision 6, the proposed new member 
 42.8   shall pay a nonrefundable $250 application fee to the 
 42.9   commissioner at the time of application.  Each annual report due 
 42.10  August 1 under section 79A.03, subdivision 9, shall be 
 42.11  accompanied by an annual fee of $200.  
 42.12     Sec. 65.  Minnesota Statutes 1996, section 268.022, 
 42.13  subdivision 2, is amended to read: 
 42.15  The money collected under this section shall be deposited in the 
 42.16  state treasury and credited to a dedicated fund to provide for 
 42.17  the employment and training programs established under 
 42.18  sections 268.60 to 268.64, 268.96, and 268.975 to 268.98; 
 42.19  including vocational guidance, training, placement, and job 
 42.20  development. 
 42.21     (b) All money in the dedicated fund is appropriated to the 
 42.22  commissioner who must act as the fiscal agent for the money and 
 42.23  must disburse the money for the purposes of this section, not 
 42.24  allowing the money to be used for any other obligation of the 
 42.25  state.  All money in the dedicated fund shall be deposited, 
 42.26  administered, and disbursed in the same manner and under the 
 42.27  same conditions and requirements as are provided by law for the 
 42.28  other dedicated funds in the state treasury, except that all 
 42.29  interest or net income resulting from the investment or deposit 
 42.30  of money in the fund shall accrue to the fund for the purposes 
 42.31  of the fund. 
 42.32     (c) No more than five percent of the dedicated funds 
 42.33  collected in each fiscal year may be used by the department of 
 42.34  economic security for its administrative costs. 
 42.35     (d) Reimbursement for costs related to collection of the 
 42.36  special assessment shall be in an amount negotiated between the 
 43.1   commissioner and the United States Department of Labor. 
 43.2      (e) Amounts may be appropriated for programs established 
 43.3   under sections 268.60 to 268.64 and 268.96. 
 43.4      (f) The dedicated funds, less amounts under paragraphs (c) 
 43.5   and (d) shall be allocated as follows:  
 43.6      (1) 40 percent to be allocated annually to substate 
 43.7   grantees for provision of expeditious response activities under 
 43.8   section 268.9771 and worker adjustment services under section 
 43.9   268.9781; and 
 43.10     (2) 60 percent to be allocated to activities and programs 
 43.11  authorized under sections 268.975 to 268.98. 
 43.12     (f) (g) Any funds not allocated, obligated, or expended in 
 43.13  a fiscal year shall be available for allocation, obligation, and 
 43.14  expenditure in the following fiscal year, except that money 
 43.15  appropriated for programs under sections 268.60 to 268.64 or 
 43.16  268.96 for a fiscal year and not spent in that fiscal year 
 43.17  cancels to the workforce investment fund unless otherwise 
 43.18  provided by the terms of the appropriation. 
 43.19     Sec. 66.  Minnesota Statutes 1996, section 268.362, 
 43.20  subdivision 2, is amended to read: 
 43.21     Subd. 2.  [GRANT APPLICATIONS; AWARDS.] Interested eligible 
 43.22  organizations must apply to the commissioner for the grants.  
 43.23  The advisory committee must review the applications and provide 
 43.24  to the commissioner a list of recommended eligible organizations 
 43.25  that the advisory committee determines meet the requirements for 
 43.26  receiving a grant.  The total grant award for any program may 
 43.27  not exceed $80,000 per year.  In awarding grants, the advisory 
 43.28  committee and the commissioner must give priority to: 
 43.29     (1) continuing and expanding effective programs by 
 43.30  providing grant money to organizations that are operating or 
 43.31  have operated a successful program that meets the program 
 43.32  purposes under section 268.364; and 
 43.33     (2) distributing programs throughout the state through 
 43.34  start-up grants for programs in areas that are not served by an 
 43.35  existing program. 
 43.36     To receive a grant under this section, the eligible 
 44.1   organization must match the grant money with at least an equal 
 44.2   amount of nonstate money.  The commissioner must verify that the 
 44.3   eligible organization has matched the grant money.  Nothing in 
 44.4   this subdivision shall prevent an eligible organization from 
 44.5   applying for and receiving grants for more than one program.  A 
 44.6   grant received by an eligible organization from the federal 
 44.7   Youthbuild Project under United States Code, title 42, section 
 44.8   5091, is nonstate money and may be used to meet the state match 
 44.9   requirement.  State grant money awarded under this section may 
 44.10  be used by grantee organizations for match requirements of a 
 44.11  federal Youthbuild Project. 
 44.12     Sec. 67.  [268.3625] [ADMINISTRATIVE COSTS.] 
 44.13     The commissioner may use up to five percent of the biennial 
 44.14  appropriation for Youthbuild from the general fund to pay costs 
 44.15  incurred by the department in administering Youthbuild during 
 44.16  the biennium. 
 44.17     Sec. 68.  Minnesota Statutes 1996, section 268.63, is 
 44.18  amended to read: 
 44.20     The commissioner, with the advice of the council, shall 
 44.21  establish criteria for the distribution of state money for the 
 44.22  purpose of section 268.62.  The criteria shall include 
 44.23  requirements that:  
 44.24     (a) the program receiving state assistance:  
 44.25     (1) involve residents in the area to be served by the 
 44.26  program in the planning and operation of the program; and 
 44.27     (2) involve the business community in the area to be served 
 44.28  by the program in its development and operation; 
 44.29     (b) the distribution of assistance among areas within the 
 44.30  state be equitable, with priority being given to areas with high 
 44.31  unemployment or underemployment; 
 44.32     (c) financial assistance under sections 268.60 to 268.64 to 
 44.33  any metropolitan area program may not exceed 25 percent and to 
 44.34  any nonmetropolitan area program may not exceed 50 percent of 
 44.35  the cost of the program including costs of administration; and 
 44.36     (d) a program receiving financial assistance has adequate 
 45.1   internal administrative controls, accounting procedures, 
 45.2   personnel standards, evaluation procedures, availability of 
 45.3   in-service training and technical assistance programs, and other 
 45.4   policies necessary to promote the effective use of state money.  
 45.5      The commissioner may make a distribution in excess of the 
 45.6   limit prescribed in clause (c) if the commissioner determines 
 45.7   that the excess distribution is necessary to further the 
 45.8   objectives of sections 268.60 and 268.62.  
 45.9      Sec. 69.  Minnesota Statutes 1996, section 270.97, is 
 45.10  amended to read: 
 45.11     270.97 [DEPOSIT OF REVENUES.] 
 45.12     The commissioner shall deposit all revenues derived from 
 45.13  the tax, interest, and penalties received from the county in the 
 45.14  contaminated site cleanup and development account in the general 
 45.15  special revenue fund.  
 45.16     Sec. 70.  Minnesota Statutes 1996, section 298.22, is 
 45.17  amended by adding a subdivision to read: 
 45.18     Subd. 7.  [GIANTS RIDGE RECREATION AREA.] (a) In addition 
 45.19  to the other powers granted in this section and other law, the 
 45.20  commissioner, for purposes of fostering economic development and 
 45.21  tourism within the Giants Ridge recreation area, may spend any 
 45.22  money made available to the agency under section 298.28 to 
 45.23  acquire real or personal property or interests therein by gift, 
 45.24  purchase, or lease and may convey by lease, sale, or other means 
 45.25  of conveyance or commitment any or all of those property 
 45.26  interests acquired.  
 45.27     (b) Notwithstanding any other law to the contrary, property 
 45.28  conveyed under this subdivision and used for residential 
 45.29  purposes is not eligible for property tax homestead 
 45.30  classification under section 273.124 or for a property tax 
 45.31  refund under chapter 290A. 
 45.32     (c) In furtherance of development of the Giants Ridge 
 45.33  recreation area, the commissioner may establish and participate 
 45.34  in charitable foundations and nonprofit corporations, including 
 45.35  a corporation within the meaning of section 317A.011, 
 45.36  subdivision 6. 
 46.1      (d) The term "Giants Ridge recreation area" refers to an 
 46.2   economic development project area established by the 
 46.3   commissioner in furtherance of the powers delegated in this 
 46.4   section within St. Louis county in the western portions of the 
 46.5   town of White and in the eastern portion of the westerly, 
 46.6   adjacent, unorganized township. 
 46.7      Sec. 71.  Minnesota Statutes 1996, section 326.86, 
 46.8   subdivision 1, is amended to read: 
 46.9      Subdivision 1.  [LICENSING FEE.] The licensing fee for 
 46.10  persons licensed pursuant to sections 326.83 to 326.991 is $75 
 46.11  per year.  The commissioner may adjust the fees under section 
 46.12  16A.1285 to recover the costs of administration and 
 46.13  enforcement.  The fees must be limited to the cost of license 
 46.14  administration and enforcement and must be deposited in the 
 46.15  state treasury and credited to the general fund.  A fee of $25 
 46.16  will be charged for a duplicate license or an amended license 
 46.17  reflecting a change of business name, address, or qualifying 
 46.18  person. 
 46.19     Sec. 72.  Minnesota Statutes 1996, section 446A.04, 
 46.20  subdivision 5, is amended to read: 
 46.21     Subd. 5.  [FEES.] (a) The authority may set and collect 
 46.22  fees for costs incurred by the authority for audits, arbitrage 
 46.23  accounting, and payment of fees charged by the state board of 
 46.24  investment.  The authority may also set and collect fees for 
 46.25  costs incurred by the commissioner, the department of health, 
 46.26  and the pollution control agency, including costs for personnel 
 46.27  and administrative services, for its financings and the 
 46.28  establishment and maintenance of reserve funds.  Fees charged 
 46.29  directly to borrowers upon executing a loan agreement must not 
 46.30  exceed one-half of one percent of the loan amount.  Servicing 
 46.31  fees assessed to loan repayments must not exceed two percent of 
 46.32  the loan repayment.  The disposition of fees collected for costs 
 46.33  incurred by the authority is governed by section 446A.11, 
 46.34  subdivision 13.  The authority shall enter into interagency 
 46.35  agreements to transfer funds into appropriate administrative 
 46.36  accounts established for fees collected under this subdivision 
 47.1   for costs incurred by the commissioner, the department of 
 47.2   health, or the pollution control agency must be credited to the 
 47.3   general fund. 
 47.4      (b) The authority shall annually report to the chairs of 
 47.5   the finance and appropriations committees of the legislature on: 
 47.6      (1) the amount of fees collected under this subdivision for 
 47.7   costs incurred by the authority; 
 47.8      (2) the purposes for which the fee proceeds have been 
 47.9   spent; and 
 47.10     (3) the amount of any remaining balance of fee proceeds. 
 47.11     Sec. 73.  Minnesota Statutes 1996, section 446A.081, 
 47.12  subdivision 1, is amended to read: 
 47.13     Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
 47.14  section, the terms in this subdivision have the meanings given 
 47.15  them.  
 47.16     (b) "Act" means the federal Safe Drinking Water 
 47.17  Infrastructure Financing Act Amendments of 1996, Public Law 
 47.18  Number 104-182. 
 47.19     (c) "Department" means the department of health.  
 47.20     Sec. 74.  Minnesota Statutes 1996, section 446A.081, 
 47.21  subdivision 4, is amended to read: 
 47.22     Subd. 4.  [CAPITALIZATION GRANT AGREEMENT.] The authority 
 47.23  shall enter into an agreement with the administrator of the 
 47.24  United States Environmental Protection Agency to receive 
 47.25  capitalization grants for the fund.  The authority and the 
 47.26  department shall enter into an operating agreement with the 
 47.27  administrator of the United States Environmental Protection 
 47.28  Agency to satisfy the criteria in the act to operate the fund.  
 47.29  The authority and the department may exercise the powers 
 47.30  necessary to comply with the requirements specified in 
 47.31  the agreement agreements and to ensure that loan recipients 
 47.32  comply with all applicable federal and state requirements.  
 47.33     Sec. 75.  Minnesota Statutes 1996, section 446A.081, 
 47.34  subdivision 9, is amended to read: 
 47.35     Subd. 9.  [OTHER USES OF FUND.] The drinking water 
 47.36  revolving loan fund may be used as provided in the act, 
 48.1   including the following uses: 
 48.2      (1) to buy or refinance the debt obligations, at or below 
 48.3   market rates, of public water systems for drinking water 
 48.4   systems, where such debt was incurred after the date of 
 48.5   enactment of the act, for the purposes of construction of the 
 48.6   necessary improvements to comply with the national primary 
 48.7   drinking water regulations under the federal Safe Drinking Water 
 48.8   Act; 
 48.9      (2) to purchase or guarantee insurance for local 
 48.10  obligations to improve credit market access or reduce interest 
 48.11  rates; 
 48.12     (3) to provide a source of revenue or security for the 
 48.13  payment of principal and interest on revenue or general 
 48.14  obligation bonds issued by the authority if the bond proceeds 
 48.15  are deposited in the fund; 
 48.16     (4) to provide loans or loan guarantees for similar 
 48.17  revolving funds established by a governmental unit or state 
 48.18  agency; 
 48.19     (5) to earn interest on fund accounts; and 
 48.20     (6) to pay the reasonable costs incurred by the authority, 
 48.21  department of trade and economic development, and the department 
 48.22  for conducting activities as authorized and required under the 
 48.23  act up to the limits authorized under the act; and 
 48.24     (7) to develop and administer programs for water system 
 48.25  supervision, source water protection, and related programs 
 48.26  required under the act. 
 48.27     Sec. 76.  Minnesota Statutes 1996, section 469.303, is 
 48.28  amended to read: 
 48.29     469.303 [ELIGIBILITY REQUIREMENTS.] 
 48.30     An area within the city is eligible for designation as an 
 48.31  enterprise zone if the area (1) includes census tracts eligible 
 48.32  for a federal empowerment zone or enterprise community as 
 48.33  defined by the United States Department of Housing and Urban 
 48.34  Development under Public Law Number 103-66, notwithstanding the 
 48.35  maximum zone population standard under the federal empowerment 
 48.36  zone program for cities with a population under 500,000 or (2) 
 49.1   an area within a city of the second class that is designated as 
 49.2   an economically depressed area by the United States Department 
 49.3   of Commerce; or (3) includes property located in St. Paul in a 
 49.4   transit zone, as defined in section 473.3915, subdivision 3. 
 49.5      Sec. 77.  Minnesota Statutes 1996, section 469.305, 
 49.6   subdivision 1, is amended to read: 
 49.7      Subdivision 1.  [INCENTIVE GRANTS.] (a) An incentive grant 
 49.8   is available to businesses located in an enterprise zone that 
 49.9   meet the conditions of this section.  Each city designated as an 
 49.10  enterprise zone is allocated $3,000,000 to be used to provide 
 49.11  grants under this section for the duration of the program.  Each 
 49.12  city of the second class designated as an economically depressed 
 49.13  area by the United States Department of Commerce is allocated 
 49.14  $300,000 to be used to provide grants under this section for the 
 49.15  duration of the program.  For fiscal year 1998 and subsequent 
 49.16  years, the proration in section 469.31 shall continue to apply 
 49.17  until the amount designated in this subdivision is 
 49.18  expended.  For the allocation in fiscal year 1998 and subsequent 
 49.19  years, the commissioner may use up to 15 percent of the 
 49.20  allocation to the city of Minneapolis for a grant to the city of 
 49.21  Minneapolis and up to 15 percent of the allocation to the city 
 49.22  of St. Paul for a grant to the city of St. Paul, for employment 
 49.23  services provided to the employers and employees involved in the 
 49.24  incentive grant program under this section. 
 49.25     (b) The incentive grant is in an amount equal to 20 percent 
 49.26  of the wages paid to an employee, not to exceed $5,000 per 
 49.27  employee per calendar year.  The incentive grant is available to 
 49.28  an employer for a zone resident employed in the zone at 
 49.29  full-time wage levels of not less than 170 percent of minimum 
 49.30  wage 110 percent of the federal poverty level for a family of 
 49.31  four, as determined by the United States Department of 
 49.32  Agriculture.  The incentive grant is not available to workers 
 49.33  employed in construction or employees of financial institutions, 
 49.34  gambling enterprises, public utilities, sports, fitness, and 
 49.35  health facilities, or racetracks.  The employee must be employed 
 49.36  at that rate at the time the business applies for a grant, and 
 50.1   must have been employed for at least one year at the business.  
 50.2   A grant may be provided only for new jobs; for purposes of this 
 50.3   section, a "new job" is a job that did not exist in Minnesota 
 50.4   before May 6, 1994.  The incentive grant authority is available 
 50.5   for the five calendar years after the application has been 
 50.6   approved to the extent the allocation to the city remains 
 50.7   available to fund the grants, and if the city certifies to the 
 50.8   commissioner on an annual basis that the business is in 
 50.9   compliance with the plan to recruit, hire, train, and retain 
 50.10  zone residents.  The employer may designate an organization that 
 50.11  provides employment services to receive all or a portion of the 
 50.12  employer's incentive grant. 
 50.14     Notwithstanding other law to the contrary, the following 
 50.15  programs shall be administered by the commissioner of economic 
 50.16  security: 
 50.17     (1) Minnesota economic opportunity grant program (MEOG); 
 50.18     (2) low-income home energy assistance program (LIHEAP); 
 50.19     (3) emergency shelter grants program; 
 50.20     (4) rural housing assistance and stability program; 
 50.21     (5) transitional housing; 
 50.22     (6) supplemental assistance for facilities to assist the 
 50.23  homeless; 
 50.24     (7) Minnesota food shelf program; 
 50.25     (8) emergency food assistance program (TEFAP), commodities 
 50.26  and soup kitchen food bank; 
 50.27     (9) community food and nutrition program; 
 50.28     (10) community service block grant program (CSBG); and 
 50.29     (11) weatherization programs, including CIP, oil, and 
 50.30  propane programs. 
 50.31     Sec. 79.  [EFFECTIVE DATE.] 
 50.32     Section 62 is effective July 1, 1999.  Section 78 is 
 50.33  effective the day following final enactment. 
 50.34                             ARTICLE 2
 51.1      Section 1.  Minnesota Statutes 1996, section 115A.908, 
 51.2   subdivision 2, is amended to read: 
 51.3      Subd. 2.  [DEPOSIT OF REVENUE.] Revenue collected shall be 
 51.4   credited to the motor vehicle transfer account in the 
 51.5   environmental fund contaminated site predevelopment and job 
 51.6   creation account in the special revenue fund. 
 51.7      Sec. 2.  Minnesota Statutes 1996, section 115B.03, 
 51.8   subdivision 5, is amended to read: 
 51.9      Subd. 5.  [EMINENT DOMAIN.] (a) The state, an agency of the 
 51.10  state, or a political subdivision is not a responsible person 
 51.11  under this section solely as a result of the acquisition of 
 51.12  property if the property was acquired by the state, an agency of 
 51.13  the state, or a political subdivision that acquires property (1) 
 51.14  through exercise of the power of eminent domain, or (2) through 
 51.15  negotiated purchase after filing a petition for the taking of 
 51.16  the property through eminent domain, or (3) after adopting a 
 51.17  redevelopment or development plan under sections 469.001 to 
 51.18  469.134 describing the property and stating its intended use and 
 51.19  the necessity of its taking is not a responsible person under 
 51.20  this section solely as a result of the acquisition of the 
 51.21  property, (4) after adopting a layout plan for highway 
 51.22  development under sections 161.15 to 161.241 describing the 
 51.23  property and stating its intended use and the necessity of its 
 51.24  taking, or (5) through the use of a loan to purchase 
 51.25  right-of-way in the seven-county metropolitan area under section 
 51.26  473.167.  
 51.27     (b) A person who acquires property from the state, an 
 51.28  agency of the state, or a political subdivision, is not a 
 51.29  responsible person under this section solely as a result of the 
 51.30  acquisition of property if the property was acquired by the 
 51.31  state, agency, or political subdivision through exercise of the 
 51.32  power of eminent domain or by negotiated purchase after filing a 
 51.33  petition for the taking of the property through eminent domain 
 51.34  or, after adopting a redevelopment or development plan under 
 51.35  sections 469.001 to 469.134 describing the property and stating 
 51.36  its intended use and the necessity of its taking, or after 
 52.1   adopting a layout plan for highway development under sections 
 52.2   161.15 to 161.241 describing the property and stating its 
 52.3   intended use and the necessity of its taking. 
 52.4      Sec. 3.  Minnesota Statutes 1996, section 115C.021, is 
 52.5   amended by adding a subdivision to read: 
 52.6      Subd. 3a.  [EMINENT DOMAIN.] (a) The department of 
 52.7   transportation is not responsible for a release from a tank 
 52.8   under this section solely as a result of the acquisition of 
 52.9   property if the property was acquired by the department through 
 52.10  exercise of the power of eminent domain, through negotiated 
 52.11  purchase after filing a petition for the taking of the property 
 52.12  through eminent domain, or after adopting a layout plan for 
 52.13  highway development under sections 161.15 to 161.241 describing 
 52.14  the property and stating its intended use and the necessity of 
 52.15  its taking.  
 52.16     (b) A person who acquires property from the department, 
 52.17  other than property acquired through a land exchange, is not a 
 52.18  responsible person under this section solely as a result of the 
 52.19  acquisition of property if the property was acquired by the 
 52.20  department through exercise of the power of eminent domain, by 
 52.21  negotiated purchase after filing a petition for the taking of 
 52.22  the property through eminent domain, or after adopting a layout 
 52.23  plan for highway development under sections 161.15 to 161.241 
 52.24  describing the property and stating its intended use and the 
 52.25  necessity of its taking. 
 52.26     Sec. 4.  Minnesota Statutes 1996, section 115C.03, 
 52.27  subdivision 9, is amended to read: 
 52.29  OVERSIGHT.] (a) The commissioner may, upon request:  
 52.30     (1) assist in determining whether a release has occurred; 
 52.31  and 
 52.32     (2) assist in or supervise the development and 
 52.33  implementation of reasonable and necessary corrective actions; 
 52.34  and 
 52.35     (3) assist in or supervise the investigation, development, 
 52.36  and implementation of actions to minimize, eliminate, or clean 
 53.1   up petroleum contamination at sites where it is not certain that 
 53.2   the contamination is attributable to a release.  
 53.3      (b) Assistance may include review of agency records and 
 53.4   files and review and approval of a requester's investigation 
 53.5   plans and reports and corrective action plans and implementation.
 53.6      (c) Assistance may include the issuance of a written 
 53.7   determination that an owner or prospective buyer of real 
 53.8   property will not be a responsible person under section 
 53.9   115C.021, if the commissioner finds the release came from a tank 
 53.10  not located on the property.  The commissioner may also issue a 
 53.11  written confirmation that the real property was the site of a 
 53.12  release and that the tank from which the release occurred has 
 53.13  been removed or that the agency has issued a site closure letter 
 53.14  and has not revoked that status.  The issuance of the written 
 53.15  determination or confirmation applies to tanks not on the 
 53.16  property or removed only and does not affect liability for 
 53.17  releases from tanks that are on the property at the time of 
 53.18  purchase.  The commissioner may also issue site closure letters 
 53.19  and nonresponsible person determinations for sites contaminated 
 53.20  by petroleum where it is not certain that the contamination is 
 53.21  attributable to a release.  The written determination or 
 53.22  confirmation extends to the successors and assigns of the person 
 53.23  to whom it originally applied, if the successors and assigns are 
 53.24  not otherwise responsible for the release. 
 53.25     (d) The person requesting assistance under this subdivision 
 53.26  shall pay the agency for the agency's cost, as determined by the 
 53.27  commissioner, of providing assistance.  Money received by the 
 53.28  agency for assistance under this subdivision must be deposited 
 53.29  in the state treasury and credited to an account in the special 
 53.30  revenue fund.  Money in this account is annually appropriated to 
 53.31  the commissioner for purposes of administering the subdivision. 
 53.32     Sec. 5.  Minnesota Statutes 1996, section 115C.08, 
 53.33  subdivision 4, is amended to read: 
 53.34     Subd. 4.  [EXPENDITURES.] (a) Money in the fund may only be 
 53.35  spent: 
 53.36     (1) to administer the petroleum tank release cleanup 
 54.1   program established in this chapter; 
 54.2      (2) for agency administrative costs under sections 116.46 
 54.3   to 116.50, sections 115C.03 to 115C.06, and costs of corrective 
 54.4   action taken by the agency under section 115C.03, including 
 54.5   investigations; 
 54.6      (3) for costs of recovering expenses of corrective actions 
 54.7   under section 115C.04; 
 54.8      (4) for training, certification, and rulemaking under 
 54.9   sections 116.46 to 116.50; 
 54.10     (5) for agency administrative costs of enforcing rules 
 54.11  governing the construction, installation, operation, and closure 
 54.12  of aboveground and underground petroleum storage tanks; 
 54.13     (6) for reimbursement of the harmful substance compensation 
 54.14  account under subdivision 5 and section 115B.26, subdivision 4; 
 54.15     (7) for administrative and staff costs as set by the board 
 54.16  to administer the petroleum tank release program established in 
 54.17  this chapter; and 
 54.18     (8) for corrective action performance audits under section 
 54.19  115C.093; and 
 54.20     (9) for contamination cleanup grants, as provided in 
 54.21  paragraph (c). 
 54.22     (b) Except as provided in paragraph (c), money in the fund 
 54.23  is appropriated to the board to make reimbursements or payments 
 54.24  under this section. 
 54.25     (c) $6,200,000 is annually appropriated from the fund to 
 54.26  the commissioner of trade and economic development for 
 54.27  contamination cleanup grants under section 116J.554, provided 
 54.28  that money appropriated in this paragraph may be used only for 
 54.29  cleanup costs attributable to petroleum contamination, as 
 54.30  determined by the commissioner of the pollution control agency. 
 54.31  Of this amount, the commissioner may spend up to $120,000 
 54.32  annually for administration of the contamination cleanup grant 
 54.33  program. 
 54.34     Sec. 6.  Minnesota Statutes 1996, section 115C.09, 
 54.35  subdivision 3, is amended to read: 
 55.1   The board shall reimburse an eligible applicant from the fund in 
 55.2   the following amounts: 
 55.3      (1) 90 percent of the total reimbursable costs on the first 
 55.4   $250,000 and 75 percent on any remaining costs in excess of 
 55.5   $250,000 on a site; 
 55.6      (2) for corrective actions at a residential site used as a 
 55.7   permanent residence at the time the release was discovered, 92.5 
 55.8   percent of the total reimbursable costs on the first $100,000 
 55.9   and 100 percent of any remaining costs in excess of $100,000; or 
 55.10     (3) 90 percent of the total reimbursable costs on the first 
 55.11  $250,000 and 100 percent of the cumulative total reimbursable 
 55.12  costs in excess of $250,000 at all sites in which the 
 55.13  responsible person had interest, and for which the commissioner 
 55.14  has not issued a closure letter as of April 3, 1996, if the 
 55.15  responsible person dispensed less than 1,000,000 gallons of 
 55.16  petroleum at each location in each of the last three calendar 
 55.17  years that the responsible person dispensed petroleum at the 
 55.18  location and: 
 55.19     (i) has owned no more than three locations in the state at 
 55.20  which motor fuel was dispensed into motor vehicles and has 
 55.21  discontinued operation of all petroleum retail operations; or 
 55.22     (ii) has owned no more than one location in the state at 
 55.23  which motor fuel was dispensed into motor vehicles.; or 
 55.24     (4) With respect to projects begun on or after January 1, 
 55.25  1997, 90 percent of the total amount of all of the following 
 55.26  costs, regardless of whether a release has occurred at the 
 55.27  site:  tank removal, closure in place, backfill, resurfacing, 
 55.28  utility service restoration, and, if a release has occurred at 
 55.29  the site, any reimbursable costs under subdivision 1.  This 
 55.30  clause applies only if the tank or tanks involved are 
 55.31  underground tanks, and if the responsible person dispensed less 
 55.32  than 400,000 gallons of motor fuel during the last year in which 
 55.33  petroleum products were dispensed to the public at the location, 
 55.34  and the responsible person owns no more than one location in 
 55.35  this or any other state at which motor fuel was dispensed into 
 55.36  motor vehicles or watercraft. 
 56.1      This clause expires December 31, 1999. 
 56.2      Not more than $1,000,000 may be reimbursed for costs 
 56.3   associated with a single release, regardless of the number of 
 56.4   persons eligible for reimbursement, and not more than $2,000,000 
 56.5   may be reimbursed for costs associated with a single tank 
 56.6   facility. 
 56.7      (b) A reimbursement may not be made from the fund under 
 56.8   this chapter until the board has determined that the costs for 
 56.9   which reimbursement is requested were actually incurred and were 
 56.10  reasonable. 
 56.11     (c) When an applicant has obtained responsible competitive 
 56.12  bids or proposals according to rules promulgated under this 
 56.13  chapter prior to June 1, 1995, the eligible costs for the tasks, 
 56.14  procedures, services, materials, equipment, and tests of the low 
 56.15  bid or proposal are presumed to be reasonable by the board, 
 56.16  unless the costs of the low bid or proposal are substantially in 
 56.17  excess of the average costs charged for similar tasks, 
 56.18  procedures, services, materials, equipment, and tests in the 
 56.19  same geographical area during the same time period. 
 56.20     (d) When an applicant has obtained a minimum of two 
 56.21  responsible competitive bids or proposals on forms prescribed by 
 56.22  the board and where the rules promulgated under this chapter 
 56.23  after June 1, 1995, designate maximum costs for specific tasks, 
 56.24  procedures, services, materials, equipment and tests, the 
 56.25  eligible costs of the low bid or proposal are deemed reasonable 
 56.26  if the costs are at or below the maximums set forth in the rules.
 56.27     (e) Costs incurred for change orders executed as prescribed 
 56.28  in rules promulgated under this chapter after June 1, 1995, are 
 56.29  presumed reasonable if the costs are at or below the maximums 
 56.30  set forth in the rules, unless the costs in the change order are 
 56.31  above those in the original bid or proposal or are 
 56.32  unsubstantiated and inconsistent with the process and standards 
 56.33  required by the rules. 
 56.34     (f) A reimbursement may not be made from the fund in 
 56.35  response to either an initial or supplemental application for 
 56.36  costs incurred after June 4, 1987, that are payable under an 
 57.1   applicable insurance policy, except that if the board finds that 
 57.2   the applicant has made reasonable efforts to collect from an 
 57.3   insurer and failed, the board shall reimburse the applicant. 
 57.4      (g) If the board reimburses an applicant for costs for 
 57.5   which the applicant has insurance coverage, the board is 
 57.6   subrogated to the rights of the applicant with respect to that 
 57.7   insurance coverage, to the extent of the reimbursement by the 
 57.8   board.  The board may request the attorney general to bring an 
 57.9   action in district court against the insurer to enforce the 
 57.10  board's subrogation rights.  Acceptance by an applicant of 
 57.11  reimbursement constitutes an assignment by the applicant to the 
 57.12  board of any rights of the applicant with respect to any 
 57.13  insurance coverage applicable to the costs that are reimbursed.  
 57.14  Notwithstanding this paragraph, the board may instead request a 
 57.15  return of the reimbursement under subdivision 5 and may employ 
 57.16  against the applicant the remedies provided in that subdivision, 
 57.17  except where the board has knowingly provided reimbursement 
 57.18  because the applicant was denied coverage by the insurer. 
 57.19     (h) Money in the fund is appropriated to the board to make 
 57.20  reimbursements under this chapter.  A reimbursement to a state 
 57.21  agency must be credited to the appropriation account or accounts 
 57.22  from which the reimbursed costs were paid. 
 57.23     (i) The board may reduce the amount of reimbursement to be 
 57.24  made under this chapter if it finds that the applicant has not 
 57.25  complied with a provision of this chapter, a rule or order 
 57.26  issued under this chapter, or one or more of the following 
 57.27  requirements: 
 57.28     (1) the agency was given notice of the release as required 
 57.29  by section 115.061; 
 57.30     (2) the applicant, to the extent possible, fully cooperated 
 57.31  with the agency in responding to the release; and 
 57.32     (3) the state and federal rules and regulations applicable 
 57.33  to the condition or operation of the tank when the noncompliance 
 57.34  caused or failed to mitigate the release. 
 57.35     (j) The reimbursement may be reduced as much as 100 percent 
 57.36  for failure by the applicant to comply with the requirements in 
 58.1   paragraph (i), clauses (1) to (3).  In determining the amount of 
 58.2   the reimbursement reduction, the board shall consider:  
 58.3      (1) the reasonable determination by the agency of the 
 58.4   environmental impact of the noncompliance; 
 58.5      (2) whether the noncompliance was negligent, knowing, or 
 58.6   willful; 
 58.7      (3) the deterrent effect of the award reduction on other 
 58.8   tank owners and operators; and 
 58.9      (4) the amount of reimbursement reduction recommended by 
 58.10  the commissioner. 
 58.11     (k) An applicant may assign the right to receive 
 58.12  reimbursement to each lender who advanced funds to pay the costs 
 58.13  of the corrective action or to each contractor or consultant who 
 58.14  provided corrective action services.  An assignment must be made 
 58.15  by filing with the board a document, in a form prescribed by the 
 58.16  board, indicating the identity of the applicant, the identity of 
 58.17  the assignee, the dollar amount of the assignment, and the 
 58.18  location of the corrective action.  An assignment signed by the 
 58.19  applicant is valid unless terminated by filing a termination 
 58.20  with the board, in a form prescribed by the board, which must 
 58.21  include the written concurrence of the assignee.  The board 
 58.22  shall maintain an index of assignments filed under this 
 58.23  paragraph.  The board shall pay the reimbursement to the 
 58.24  applicant and to one or more assignees by a multiparty check.  
 58.25  The board has no liability to an applicant for a payment under 
 58.26  an assignment meeting the requirements of this paragraph. 
 58.27     Sec. 7.  Minnesota Statutes 1996, section 115C.09, is 
 58.28  amended by adding a subdivision to read: 
 58.30  department of transportation may apply to the board and is 
 58.31  eligible for reimbursement of reimbursable costs associated with 
 58.32  property that the department has acquired under section 
 58.33  115C.021, subdivision 3a, if corrective action pursuant to a 
 58.34  plan reviews and approved by the commissioner of the pollution 
 58.35  control agency in accordance with applicable rules and guidance 
 58.36  documents was taken on the entire property so acquired.  
 59.1   Notwithstanding subdivision 3, paragraph (a), the department of 
 59.2   transportation shall receive 100 percent of total reimbursable 
 59.3   costs associated with a single release up to $1,000,000. 
 59.4      Sec. 8.  Minnesota Statutes 1996, section 115C.13, is 
 59.5   amended to read: 
 59.6      115C.13 [REPEALER.] 
 59.7      Sections 115C.01, 115C.02, 115C.021, 115C.03, 115C.04, 
 59.8   115C.045, 115C.05, 115C.06, 115C.065, 115C.07, 115C.08, 115C.09, 
 59.9   115C.092, 115C.10, 115C.11, and 115C.12, are repealed effective 
 59.10  June 30, 2000 2005. 
 59.11     Sec. 9.  Minnesota Statutes 1996, section 116J.552, 
 59.12  subdivision 4, is amended to read: 
 59.13     Subd. 4.  [DEVELOPMENT AUTHORITY.] "Development authority" 
 59.14  includes a statutory or home rule charter city, county, housing 
 59.15  and redevelopment authority, economic development authority, and 
 59.16  a port authority. 
 59.17     Sec. 10.  Minnesota Statutes 1996, section 116J.553, 
 59.18  subdivision 2, is amended to read: 
 59.19     Subd. 2.  [REQUIRED CONTENT.] (a) The commissioner shall 
 59.20  prescribe and provide the application form.  Except as provided 
 59.21  in paragraph (b), the application must include at least the 
 59.22  following information: 
 59.23     (1) identification of the site; 
 59.24     (2) an approved response action plan for the site, 
 59.25  including the results of engineering and other tests showing the 
 59.26  nature and extent of the release or threatened release of 
 59.27  contaminants at the site; 
 59.28     (3) a detailed estimate, along with necessary supporting 
 59.29  evidence, of the total cleanup costs for the site; 
 59.30     (4) an appraisal of the current market value of the 
 59.31  property, separately taking into account the effect of the 
 59.32  contaminants on the market value, prepared by a qualified 
 59.33  independent appraiser using accepted appraisal methodology; 
 59.34     (5) an assessment of the development potential or likely 
 59.35  use of the site after completion of the response action plan, 
 59.36  including any specific commitments from third parties to 
 60.1   construct improvements on the site; 
 60.2      (6) the manner in which the municipality will meet the 
 60.3   local match requirement; and 
 60.4      (7) any additional information or material that the 
 60.5   commissioner prescribes. 
 60.6      (b) An application for a grant under section 116J.554, 
 60.7   subdivision 1, paragraph (b), must include a detailed estimate 
 60.8   of the cost of the actions for which the grant is sought but 
 60.9   need not include the information specified in paragraph (a), 
 60.10  clauses (2) to (4), and (6). 
 60.11     Sec. 11.  Minnesota Statutes 1996, section 116J.554, 
 60.12  subdivision 1, is amended to read: 
 60.13     Subdivision 1.  [AUTHORITY.] (a) The commissioner may make 
 60.14  a grant to an applicant development authority to pay for up to 
 60.15  75 percent of the cleanup costs for a qualifying site, except 
 60.16  the grant may not exceed or 50 percent of the project costs, 
 60.17  whichever is greater.  
 60.18     (b) The commissioner may also make a grant to an applicant 
 60.19  development authority to pay up to 75 percent or $50,000, 
 60.20  whichever is less, toward the cost of performing contaminant 
 60.21  investigations and the development of a response action plan for 
 60.22  a qualifying site. 
 60.23     (c) The determination of whether to make a grant for a 
 60.24  qualifying site is within the sole discretion of the 
 60.25  commissioner, subject to the process provided by this section, 
 60.26  and available unencumbered money in the appropriation.  The 
 60.27  commissioner's decisions and application of the priorities under 
 60.28  section 116J.555 are not subject to judicial review, except for 
 60.29  abuse of discretion. 
 60.30     (d) The total amount of money provided in grants under 
 60.31  paragraph (b) may not exceed $250,000 per fiscal year. 
 60.32     (e) In making grants under paragraph (b), the commissioner 
 60.33  shall give priority to applicants that have not received a grant 
 60.34  under paragraph (a) or section 473.252 during the year ending on 
 60.35  the date of application. 
 60.36     Sec. 12.  [116J.561] [PUBLIC PURPOSE; CREATION OF ACCOUNT.] 
 61.1      The predevelopment of industrial properties requires 
 61.2   significant public funding to transform these sites into 
 61.3   marketable light industrial business parks that are in demand by 
 61.4   private sector manufacturing companies willing to construct new 
 61.5   facilities, hire local residents, and invest in the community.  
 61.6   To address this concern, a contaminated site predevelopment and 
 61.7   job creation account is created in the special revenue fund.  
 61.8   Money in the account is appropriated to the commissioner, to 
 61.9   make grants as provided in section 116J.564 and to pay for the 
 61.10  commissioner's costs in reviewing applications and making grants.
 61.11     Sec. 13.  [116J.562] [DEFINITIONS.] 
 61.12     Subdivision 1.  [APPLICATION.] For the purposes of sections 
 61.13  116J.562 to 116J.564, the following terms have the meanings 
 61.14  given. 
 61.15     Subd. 2.  [DEVELOPMENT AUTHORITY.] "Development authority" 
 61.16  has the meaning given in section 116J.552, subdivision 4. 
 61.17     Subd. 3.  [METROPOLITAN AREA.] "Metropolitan area" has the 
 61.18  meaning given in section 116J.552, subdivision 5. 
 61.19     Subd. 4.  [MUNICIPALITY.] "Municipality" has the meaning 
 61.20  given in section 116J.552, subdivision 6. 
 61.21     Subd. 5.  [QUALIFYING SITE.] "Qualifying site" means a 
 61.22  qualifying site under section 116J.564, subdivision 2. 
 61.23     Subd. 6.  [PREDEVELOPMENT COSTS.] "Predevelopment costs" 
 61.24  means costs of the following:  property acquisition; demolition 
 61.25  of existing improvements; relocation of persons or businesses; 
 61.26  site preparation and grading.  
 61.27     Sec. 14.  [116J.563] [GRANT APPLICATIONS.] 
 61.28     Subdivision 1.  [APPLICATION REQUIRED.] To obtain a 
 61.29  predevelopment and job creation grant, a development authority 
 61.30  shall apply to the commissioner. 
 61.31     Subd. 2.  [REQUIRED CONTENT.] The commissioner shall 
 61.32  prescribe and provide the application form.  An application must 
 61.33  include at least the following information: 
 61.34     (1) identification of the site; 
 61.35     (2) a detailed estimate, along with necessary supporting 
 61.36  evidence, of the total predevelopment costs for the site; 
 62.1      (3) an assessment of the development potential or likely 
 62.2   use of the site, including any specific commitments from third 
 62.3   parties to construct improvements on the site; and 
 62.4      (4) any additional information or material that the 
 62.5   commissioner prescribes. 
 62.6      Sec. 15.  [116J.564] [GRANTS.] 
 62.7      Subdivision 1.  [AUTHORITY.] The commissioner may make 
 62.8   grants to development authorities for predevelopment costs at 
 62.9   qualifying sites.  The determination of whether to make a grant 
 62.10  for a qualifying site is within the sole discretion of the 
 62.11  commissioner subject to the process and criteria provided by 
 62.12  this section and available appropriations.  The commissioner's 
 62.13  decisions and application of the priorities under subdivision 3 
 62.14  are not subject to judicial review, except for abuse of 
 62.15  discretion. 
 62.16     Subd. 2.  [QUALIFYING SITES.] A site qualifies for a grant 
 62.17  under this section if: 
 62.18     (1) the appraised value of the site, after adjusting for 
 62.19  the effect on the value of the presence or possible presence of 
 62.20  contaminants, using accepted appraisal methodology (i) is less 
 62.21  than 50 percent of the estimated cleanup costs for the site or 
 62.22  (ii) is less than or equal to the estimated cleanup costs for 
 62.23  the site and the cleanup costs equal or exceed $3 per square 
 62.24  foot for the site; and 
 62.25     (2) after completion of the grant-funded project, it is 
 62.26  expected that the site will be further improved in a manner that 
 62.27  complies with the conditions in subdivision 4. 
 62.28     Subd. 3.  [PRIORITIES] (a) The legislature expects that 
 62.29  applications for grants will exceed the available appropriations 
 62.30  and the agency will be able to provide grants to only some of 
 62.31  the applicant development authorities. 
 62.32     (b) The agency shall make grants for sites that, in the 
 62.33  commissioner's judgment, provide the highest return in public 
 62.34  benefits for the public costs incurred and that meet all of the 
 62.35  requirements provided by law.  In making this judgment, the 
 62.36  commissioner shall consider the following factors: 
 63.1      (1) the number of jobs expected to be created and retained 
 63.2   after development of a qualified site and the average 
 63.3   anticipated wage levels of such jobs; 
 63.4      (2) the total amount of the requested assistance in 
 63.5   relation to the total full-time jobs which will result from the 
 63.6   predevelopment on the qualified site; 
 63.7      (3) the proportion of the requested assistance to the 
 63.8   estimated total predevelopment costs for a qualified site; 
 63.9      (4) the probability that a qualified site will be 
 63.10  redeveloped without use of public money in the reasonable 
 63.11  foreseeable future; 
 63.12     (5) the proportion of the estimated total costs of 
 63.13  contamination cleanup at a qualified site to the estimated total 
 63.14  of predevelopment costs; 
 63.15     (6) the availability of funds for contamination cleanup; 
 63.16     (7) the current unemployment rate in the municipality in 
 63.17  which the qualified site is located; 
 63.18     (8) the level of reliance on public assistance in the 
 63.19  municipality in which the qualified site is located, as measured 
 63.20  by the applicable county welfare rolls; 
 63.21     (9) the extent of poverty in the municipality in which the 
 63.22  qualified site is located, as measured by percentage of 
 63.23  population living below the poverty line, percentage of children 
 63.24  under 18 years of age living below the poverty line, and 
 63.25  percentage of ethnic minorities living below the poverty line; 
 63.26     (10) any specific commitments from the developer to 
 63.27  construct improvements on the site; and 
 63.28     (11) the presence of any on-site child care facility.  
 63.29     (c) The factors in paragraph (b) are not listed in order of 
 63.30  priority and the commissioner may weigh each factor, depending 
 63.31  upon the facts and circumstances, as the commissioner considers 
 63.32  appropriate.  The absence of a specific commitment from a third 
 63.33  party to construct improvements on a site does not make the site 
 63.34  ineligible for a grant.  The commissioner shall provide a 
 63.35  written statement of the supporting reasons for each grant. 
 63.36     Subd. 4.  [GRANT CONDITIONS.] A grant awarded under this 
 64.1   section is subject to the following conditions applicable to the 
 64.2   use of the site when fully developed: 
 64.3      (1) the site must be used for commercial or industrial 
 64.4   purposes; 
 64.5      (2) an average of 30 percent of the site must be covered by 
 64.6   buildings; 
 64.7      (3) the buildings constructed on the site must have an 
 64.8   average construction value of at least $30 per square foot if 
 64.9   the qualified site is located in the metropolitan area and $20 
 64.10  per square foot if the qualified site is located outside of the 
 64.11  metropolitan area; 
 64.12     (4) the site must provide at least one job for each 1,000 
 64.13  square feet of building space; and 
 64.14     (5) preference for employees hired to work at a business 
 64.15  located at the site must be given to qualified residents of the 
 64.16  municipality in which the site is located.  If at least 60 
 64.17  percent of the employees hired to work at a business are not 
 64.18  residents then the business must certify to the municipality 
 64.19  that a sufficient number of qualified residents are not 
 64.20  available and agree to fill vacant positions with qualified 
 64.21  residents referred to the business by the municipality, until 
 64.22  the 60 percent level is attained. 
 64.23     Subd. 5.  [APPLICATION CYCLES; REPORTS.] (a) In making 
 64.24  grants, the commissioner shall establish semiannual application 
 64.25  deadlines in which grants will be authorized from all or part of 
 64.26  the available appropriations of money in the account. 
 64.29     The commissioner of trade and economic development, in 
 64.30  consultation with the commissioners of the pollution control 
 64.31  agency, commerce, agriculture, and revenue, and the director of 
 64.32  the metropolitan council, shall issue a report to the 
 64.33  legislature by January 15, 1998, which includes: 
 64.34     (1) recommendations from the agencies with regard to 
 64.35  establishing and administering an office to provide for the 
 64.36  coordination of programs providing state and regional assistance 
 65.1   in the cleanup and redevelopment of contaminated properties, as 
 65.2   well as any legislative recommendations to provide for an 
 65.3   effective and efficient office; and 
 65.4      (2) a plan for additional changes to existing contaminated 
 65.5   property programs, including the consolidation of programs, to 
 65.6   streamline applications for assistance, ensure efficient and 
 65.7   effective administration of these programs, and provide for an 
 65.8   overall, coordinated state policy for the cleanup and 
 65.9   redevelopment of contaminated properties. 
 65.11     The commissioner of trade and economic development, in 
 65.12  consultation with the metropolitan council and Minnesota housing 
 65.13  finance agency, shall review the department's and the council's 
 65.14  progress, including grant detail, in making grants under 
 65.15  Minnesota Statutes, sections 116J.554 and 473.252 for the 
 65.16  cleanup of contamination at residential sites or at sites which 
 65.17  will have some residential component after the contamination at 
 65.18  the site is cleaned up and the site is redeveloped and report by 
 65.19  June 30, 1998, to the legislature regarding: 
 65.20     (1) the barriers the department and the council have 
 65.21  encountered in making such grants; and 
 65.22     (2) recommendations to the legislature to increase grant 
 65.23  opportunities for cleanup of contamination at residential sites 
 65.24  or sites with a residential component. 
 65.25     Sec. 18.  [REPEALER.] 
 65.26     Minnesota Statutes 1996, section 115A.908, subdivision 3, 
 65.27  is repealed. 
 65.28     Sec. 19.  [EFFECTIVE DATE.] 
 65.29     Sections 1 to 5 and 7 to to 12 are effective July 1, 1997.  
 65.30  Section 13 is effective the day following final enactment.  
 65.31  Section 6 is effective retroactive to January 1, 1997.  
 65.32                             ARTICLE 3
 65.34     Section 1.  [268.6715] [1997 MINNESOTA EMPLOYMENT AND 
 65.36     The 1997 Minnesota employment and economic development 
 66.1   program is established to assist businesses and communities to 
 66.2   create jobs that provide the wages, benefits, and on-the-job 
 66.3   training opportunities necessary to help low-wage workers and 
 66.4   people transitioning from public assistance to get and retain 
 66.5   jobs, and to help their families to move out of poverty.  
 66.6   Employment obtained under this program is not excluded from the 
 66.7   definition of "employment" by section 268.04, subdivision 12, 
 66.8   clause 10, paragraph (d). 
 66.9      Sec. 2.  Minnesota Statutes 1996, section 268.672, 
 66.10  subdivision 6, is amended to read: 
 66.11     Subd. 6.  [ELIGIBLE JOB APPLICANT.] "Eligible job 
 66.12  applicant" means a person who:  (1) has been a resident of this 
 66.13  state for at least one month, (2) is unemployed, (3) is not 
 66.14  receiving and is not qualified to receive reemployment insurance 
 66.15  or workers' compensation, and (4) is determined to be likely to 
 66.16  be available for employment by an eligible employer for the 
 66.17  duration of the job.  
 66.18     For the purposes of this subdivision, a farmer or any 
 66.19  member of a farm family household who can demonstrate severe 
 66.20  household financial need must be considered unemployed. 
 66.21     (1) has attempted to secure a nonsubsidized job by 
 66.22  completing comprehensive job readiness and is: 
 66.23     (i) a temporary assistance for needy families (TANF) 
 66.24  recipient who is making good faith efforts to comply with the 
 66.25  family support agreement as defined under section 256.032, 
 66.26  subdivision 7a, but has failed to find suitable employment; or 
 66.27     (ii) a family general assistance recipient; 
 66.28     (2) is a member of a household supported only by: 
 66.29     (i) a low-income worker; or 
 66.30     (ii) a person who is underemployed as that term is defined 
 66.31  in section 268.61, subdivision 5; or 
 66.32     (3) is a member of a family that is eligible for, but not 
 66.33  receiving public assistance. 
 66.34     Sec. 3.  Minnesota Statutes 1996, section 268.672, is 
 66.35  amended by adding a subdivision to read: 
 66.36     Subd. 13.  [COMPREHENSIVE JOB READINESS.] "Comprehensive 
 67.1   job readiness" means a job search program administered by a 
 67.2   county, its designee, or workforce service area that teaches 
 67.3   self-esteem, marketable work habits, job-seeking skills, and 
 67.4   life-management skills, and may include job retention services. 
 67.5      Sec. 4.  Minnesota Statutes 1996, section 268.672, is 
 67.6   amended by adding a subdivision. 
 67.7      Subd. 14.  [ELIGIBLE PROGRAM PARTICIPANT.] "Eligible 
 67.8   program participant" means an eligible job applicant who is 
 67.9   participating in comprehensive job readiness, subsidized 
 67.10  employment, or job retention services.  An individual who has 
 67.11  been dismissed for cause or quit subsidized employment without 
 67.12  good cause is not eligible for subsidized employment under the 
 67.13  program. 
 67.14     Sec. 5.  Minnesota Statutes 1996, section 268.672, is 
 67.15  amended by adding a subdivision to read:  
 67.16     Subd. 15.  [EMPLOYER.] "Employer" means a private or public 
 67.17  employer that: 
 67.18     (1) agrees to create a job that is long term and full time, 
 67.19  except a private nonprofit or public employer may provide a 
 67.20  temporary job; 
 67.21     (2) pays a wage of at least $2 per hour higher than the 
 67.22  minimum wage; and 
 67.23     (3) agrees to retain a participant at the same wage and 
 67.24  benefit level of the wage subsidy period after satisfactory 
 67.25  completion of the subsidy period. 
 67.26     Sec. 6.  Minnesota Statutes 1996, section 268.672, is 
 67.27  amended by adding a subdivision to read: 
 67.28     Subd. 16.  [FULL TIME.] "Full time" means 40 hours of work 
 67.29  per week or any other schedule considered full time by the 
 67.30  employer.  In the case of a temporary assistance to needy 
 67.31  families recipient, "full time" means 40 hours comprised of the 
 67.32  number of hours of work needed to meet the recipient's work 
 67.33  requirement plus the number of hours spent in a training or 
 67.34  education program.  The employer is required to pay and is 
 67.35  eligible to receive the subsidy only for hours worked by the 
 67.36  participant for the employer.  
 68.1      Sec. 7.  Minnesota Statutes 1996, section 268.672, is 
 68.2   amended by adding a subdivision to read: 
 68.3      Subd. 17.  [JOB RETENTION SERVICES.] "Job retention 
 68.4   services" means assistance that would not otherwise be provided 
 68.5   to an eligible job applicant with child care, transportation, 
 68.6   job coaching, employer-employee mediation, and other forms of 
 68.7   support services to help an applicant to transition to 
 68.8   employment and retain a job. 
 68.9      Sec. 8.  Minnesota Statutes 1996, section 268.672, is 
 68.10  amended by adding a subdivision to read: 
 68.11     Subd. 18.  [LOW-INCOME WORKER.] "Low-income worker" means a 
 68.12  worker who earns no more than $1 per hour more than the minimum 
 68.13  wage. 
 68.14     Sec. 9.  Minnesota Statutes 1996, section 268.672, is 
 68.15  amended by adding a subdivision to read: 
 68.16     Subd. 19.  [MINIMUM WAGE.] "Minimum wage" means the greater 
 68.17  of (1) the federal minimum wage in effect on or after September 
 68.18  1, 1997, and (2) the state minimum wage under section 177.24. 
 68.19     Sec. 10.  Minnesota Statutes 1996, section 268.672, is 
 68.20  amended by adding a subdivision to read: 
 68.21     Subd. 20.  [PROGRAM.] "Program" means the 1997 Minnesota 
 68.22  employment and economic development program. 
 68.23     Sec. 11.  Minnesota Statutes 1996, section 268.672, is 
 68.24  amended by adding a subdivision to read: 
 68.25     Subd. 21.  [WORKFORCE SERVICE AREA.] "Workforce service 
 68.26  area" means a service delivery area designated by the governor 
 68.27  under the Job Training Partnership Act, United States Code, 
 68.28  title 29, section 1501, et seq. 
 68.29     Sec. 12.  Minnesota Statutes 1996, section 268.673, 
 68.30  subdivision 3, is amended to read: 
 68.31     Subd. 3.  [DEPARTMENT OF ECONOMIC SECURITY.] The 
 68.32  commissioner shall supervise wage subsidies, comprehensive job 
 68.33  readiness, and job retention services and shall provide 
 68.34  technical assistance to the local service units for the purpose 
 68.35  of delivering wage subsidies counties in their delivery.  
 68.36     Sec. 13.  Minnesota Statutes 1996, section 268.673, 
 69.1   subdivision 4a, is amended to read: 
 69.3   commissioner shall contract directly with a certified local 
 69.4   service provider counties, their designees, or workforce service 
 69.5   areas to deliver wage subsidies, comprehensive job readiness, 
 69.6   and job retention services if (1) each county served by 
 69.7   the provider designee or workforce service area agrees to the 
 69.8   contract and knows the amount of wage subsidy money, 
 69.9   comprehensive job readiness money, and job retention services 
 69.10  money allocated to the county under section 268.6751, and (2) 
 69.11  the provider designee or workforce service area agrees to meet 
 69.12  regularly with each county being served.  The contracts must 
 69.13  require that no more than ten percent of the contract amount be 
 69.14  expended for administration. 
 69.15     Counties and workforce service areas are encouraged to 
 69.16  designate community-based providers of comprehensive job 
 69.17  readiness and job retention services. 
 69.18     Sec. 14.  Minnesota Statutes 1996, section 268.673, 
 69.19  subdivision 5, is amended to read: 
 69.20     Subd. 5.  [REPORT.] Each entity county delivering wage 
 69.21  subsidies, comprehensive job readiness, and job retention 
 69.22  services shall report to the commissioner on a quarterly basis: 
 69.23     (1) the number of persons placed in private sector jobs, in 
 69.24  temporary public sector jobs, or in other services; 
 69.25     (2) the outcome for each participant placed in a private 
 69.26  sector job, in a temporary public sector job, or in another 
 69.27  service; 
 69.28     (3) the number and type of employers employing persons 
 69.29  under the program; 
 69.30     (4) the amount of money spent in each local service unit 
 69.31  county for wages, comprehensive job readiness, and job retention 
 69.32  services for each type of employment and each type of other 
 69.33  expense; 
 69.34     (5) the age, educational experience, family status, gender, 
 69.35  priority group status, race, and work experience of each person 
 69.36  in the program; 
 70.1      (6) the amount of wages received by persons while in the 
 70.2   program and 60 days after completing the program; and 
 70.3      (7) for each classification of persons described in clause 
 70.4   (5), the outcome of the wage subsidy placement, the 
 70.5   comprehensive job readiness, and the job retention services, 
 70.6   including length of time employed; nature of employment, whether 
 70.7   private sector, temporary public sector, or other service; and 
 70.8   the hourly wages; and 
 70.9      (8) any other information requested by the commissioner.  
 70.10  Each report must include cumulative information, as well as 
 70.11  information for each quarter. 
 70.12     Data collected on individuals under this subdivision are 
 70.13  private data on individuals as defined in section 13.02, 
 70.14  subdivision 12, except that summary data may be provided under 
 70.15  section 13.05, subdivision 7. 
 70.16     Sec. 15.  Minnesota Statutes 1996, section 268.6751, 
 70.17  subdivision 1, is amended to read: 
 70.18     Subdivision 1.  [WAGE SUBSIDIES ALLOCATION.] Wage subsidy 
 70.19  money, comprehensive job readiness money, and job retention 
 70.20  services money must be allocated to local service units in the 
 70.21  following manner: 
 70.22     (a) The commissioner shall allocate 87.5 percent of the 
 70.23  funds available for allocation to local service units for wage 
 70.24  subsidy programs as follows:  the proportion of the wage subsidy 
 70.25  money available to each local service unit must be based on the 
 70.26  number of unemployed persons in the local service unit for the 
 70.27  most recent six-month period and the number of work readiness 
 70.28  assistance cases and aid to families with dependent children 
 70.29  cases in the local service unit for the most recent six-month 
 70.30  period. 
 70.31     (b) Five percent of the money available for wage subsidy 
 70.32  programs must be allocated at the discretion of the commissioner.
 70.33     (c) Seven and one-half percent of the money available for 
 70.34  wage subsidy programs must be allocated at the discretion of the 
 70.35  commissioner to provide jobs for residents of federally 
 70.36  recognized Indian reservations.  
 71.1      (d) counties in proportion to the number of persons living 
 71.2   at or below the federal poverty threshold in each county.  By 
 71.3   December 31 of each fiscal year, providers and local service 
 71.4   units counties, designees, and workforce service areas receiving 
 71.5   wage subsidy money, comprehensive job readiness money, and job 
 71.6   retention services money shall report to the commissioner on the 
 71.7   use of allocated funds.  The commissioner shall reallocate 
 71.8   uncommitted funds for each fiscal year according to the formula 
 71.9   in paragraph (a) this subdivision. 
 71.10     Sec. 16.  Minnesota Statutes 1996, section 268.677, 
 71.11  subdivision 1, is amended to read: 
 71.13  AND JOB RETENTION SERVICES MONEY.] To the extent allowable under 
 71.14  federal and state law, wage subsidy money, comprehensive job 
 71.15  readiness money, and job retention services money must be pooled 
 71.16  and used in combination with money from other employment and 
 71.17  training services or income maintenance and support 
 71.18  services.  At least 75 percent of the money appropriated for 
 71.19  wage subsidies must be used to pay wages for eligible job 
 71.20  applicants.  For each eligible job applicant employed, the 
 71.21  maximum state contribution from any combination of public 
 71.22  assistance grant diversion and employment and training services 
 71.23  governed under this chapter, including wage subsidies, is $4 per 
 71.24  hour for wages and $1 per hour for fringe benefits.  The use of 
 71.25  wage subsidies is limited as follows:  
 71.26     (a) The wage subsidy is $2.50 per hour for wages and up to 
 71.27  $1 per hour for reimbursement of employer-paid benefits for 
 71.28  health care, child care, or transportation expenses for 
 71.29  employers paying an eligible program participant an hourly wage 
 71.30  that is $2 to $2.99 per hour higher than the minimum wage. 
 71.31     (b) The wage subsidy is $4 per hour for wages and up to $1 
 71.32  per hour for reimbursement of employer paid benefits for health 
 71.33  care, child care, or transportation expenses for employers 
 71.34  paying an eligible program participant an hourly wage that is $3 
 71.35  or more per hour higher than the minimum wage. 
 71.36     (c) The wage subsidy for each an eligible job applicant 
 72.1   placed in private or nonprofit employment, the state may 
 72.2   subsidize wages may be paid for a maximum of 1,040 hours over a 
 72.3   period of 26 weeks.  Employers are encouraged to use money from 
 72.4   other sources to provide increased wages to applicants they 
 72.5   employ.  Job retention services may be provided to an eligible 
 72.6   program participant over a period of 78 weeks.  
 72.7      (b) For each eligible job applicant participating in a job 
 72.8   training program and placed in private sector employment, the 
 72.9   state may subsidize wages for a maximum of 1,040 hours over a 
 72.10  period of 52 weeks.  
 72.11     (c) For each eligible job applicant placed in a community 
 72.12  investment program job, the state may provide wage subsidies for 
 72.13  a maximum of 780 hours over a maximum of 26 weeks.  For an 
 72.14  individual placed in a community investment program job, the 
 72.15  county share of the wage subsidy shall be 25 percent.  Counties 
 72.16  may use money from sources other than public assistance and wage 
 72.17  subsidies, including private grants, contributions from 
 72.18  nonprofit corporations and other units of government, and other 
 72.19  state money, to increase the wages or hours of persons employed 
 72.20  in community investment programs.  
 72.21     (d) Notwithstanding the limitations of paragraphs (a) and 
 72.22  (b), money may be used to provide a state contribution for wages 
 72.23  and fringe benefits in private sector jobs for eligible 
 72.24  applicants who had previously held temporary jobs with eligible 
 72.25  government and nonprofit agencies or who had previously held 
 72.26  community investment program jobs for which a state contribution 
 72.27  had been made, and who are among the priority groups established 
 72.28  in section 268.676, subdivision 1.  The use of money under this 
 72.29  paragraph shall be for a maximum of 1,040 hours over a maximum 
 72.30  period of 26 weeks per job applicant. An employer of more than 
 72.31  four full-time employees shall receive wage subsidies for no 
 72.32  more than 25 percent of the employer's full-time workforce. 
 72.33     Sec. 17.  Minnesota Statutes 1996, section 268.681, is 
 72.34  amended to read: 
 72.35     268.681 [BUSINESS EMPLOYMENT.] 
 72.36     Subdivision 1.  [ELIGIBLE BUSINESSES.] A business employer 
 73.1   is an eligible employer if it enters into a written contract, 
 73.2   signed and subscribed to under oath, with a local service 
 73.3   unit county or its contractor designee, containing assurances 
 73.4   that: 
 73.5      (a) funds received by a business shall be used only as 
 73.6   permitted under sections 268.672 to 268.682; 
 73.7      (b) the business has submitted information to the local 
 73.8   service unit county or, its contractor designee, or 
 73.9   workforce service area (1) describing the duties and proposed 
 73.10  compensation of each employee proposed to be hired under the 
 73.11  program; and (2) demonstrating that, with the funds provided 
 73.12  under sections 268.672 to 268.682, the business is likely to 
 73.13  succeed and continue to employ persons hired using wage 
 73.14  subsidies; 
 73.15     (c) the business will use funds exclusively for 
 73.16  compensation and fringe benefits of eligible job applicants and 
 73.17  will provide employees hired with these funds with fringe 
 73.18  benefits and other terms and conditions of employment comparable 
 73.19  to those provided to other employees of the business who do 
 73.20  comparable work; 
 73.21     (d) the funds are necessary to allow the business to begin, 
 73.22  or to employ additional people, expand, or to fill other open 
 73.23  positions but not to fill positions which would be filled even 
 73.24  in the absence of wage subsidies; 
 73.25     (e) the business will cooperate with the local service unit 
 73.26  county and the commissioner in collecting data to assess the 
 73.27  result of wage subsidies and the effectiveness of comprehensive 
 73.28  job readiness and job retention services; and 
 73.29     (f) the business is in compliance with all applicable 
 73.30  affirmative action, fair labor, health, safety, and 
 73.31  environmental standards.  
 73.32     Subd. 1a.  [INELIGIBLE BUSINESSES.] A business employer is 
 73.33  ineligible to participate in the program and is ineligible to 
 73.34  receive wage subsidy money if:  
 73.35     (1) the business is a temporary employment agency; or 
 73.36     (2) the business is a restaurant.  
 74.1      For purposes of this subdivision, "temporary employment 
 74.2   agency" means a business that hires people to work in temporary 
 74.3   positions for employers who are clients of that business.  
 74.4      For purposes of this subdivision, "restaurant" includes, 
 74.5   but is not limited to, fast food restaurants. 
 74.6      Subd. 1b.  [DISCHARGE OF PROGRAM PARTICIPANT.] A program 
 74.7   participant discharged from employment may challenge the 
 74.8   discharge as a violation of subdivision 1. 
 74.9      Subd. 2.  [PRIORITIES.] (a) In allocating funds among 
 74.10  eligible businesses, the local service unit county or its 
 74.11  contractor designee shall give priority to: 
 74.12     (1) businesses that will provide applicants with on-the-job 
 74.13  training and marketable job skills; 
 74.14     (2) businesses engaged in manufacturing; 
 74.15     (2) (3) nonretail businesses that are small businesses as 
 74.16  defined in section 645.445; and 
 74.17     (3) (4) businesses that export products outside the state. 
 74.18     (b) In addition to paragraph (a), a local service unit 
 74.19  county must give priority to businesses that: 
 74.20     (1) have a high potential for growth and long-term job 
 74.21  creation; 
 74.22     (2) are labor intensive; 
 74.23     (3) make high use of local and Minnesota resources; 
 74.24     (4) are under ownership of women and minorities; 
 74.25     (5) make high use of new technology; 
 74.26     (6) produce energy conserving materials or services or are 
 74.27  involved in development of renewable sources of energy; and 
 74.28     (7) have their primary place of business in Minnesota.  
 74.29     Subd. 3.  [PAYBACK.] (a) A business receiving wage 
 74.30  subsidies shall repay 70 percent of the amount initially 
 74.31  received for each eligible job applicant employed, if the 
 74.32  employee does not continue in the employment of the business 
 74.33  beyond the six-month subsidized period.  If the employee 
 74.34  continues in the employment of the business for one year or 
 74.35  longer after the six-month subsidized period, the business need 
 74.36  not repay any of the funds received for that employee's wages.  
 75.1   If the employee continues in the employment of the business for 
 75.2   a period of less than one year after the expiration of the 
 75.3   six-month subsidized period, the business shall receive a 
 75.4   proportional reduction in the amount it must repay. 
 75.5      (b) If an employer dismisses an employee for good cause and 
 75.6   works in good faith with the local service unit or its 
 75.7   contractor to employ and train another person referred by 
 75.8   the local service unit county or, its contractor 
 75.9   designee, or workforce service area, the payback formula shall 
 75.10  apply as if the original person had continued in employment.  
 75.11     (c) If a business receiving funds under the program reduces 
 75.12  the hourly wage after the six-month subsidy, the business must 
 75.13  repay a portion of the subsidy in direct proportion to the 
 75.14  amount that the hourly wage is reduced. 
 75.15     (d) A repayment schedule shall be negotiated and agreed to 
 75.16  by the local service unit county and the business prior to the 
 75.17  disbursement of the funds and is subject to renegotiation.  The 
 75.18  local service unit county shall forward 25 percent of the 
 75.19  payments received under this subdivision to the commissioner on 
 75.20  a monthly basis and shall retain the remaining 75 percent for 
 75.21  local program expenditures.  Notwithstanding section 268.677, 
 75.22  subdivision 2, the local service unit may use up to 20 percent 
 75.23  of its share of the funds returned retain payments received 
 75.24  under this subdivision for any administrative costs associated 
 75.25  with the collection of the funds under this subdivision and for 
 75.26  entering into new wage subsidy agreements.  At least 80 percent 
 75.27  of the local service unit's share of the funds returned under 
 75.28  this subdivision must be used as provided in section 268.677.  
 75.29  The commissioner shall deposit payments forwarded to the 
 75.30  commissioner under this subdivision in the general fund. 
 75.31     (e) If an employer is more than 60 days late in repaying a 
 75.32  subsidy as required in this subdivision, the county may engage a 
 75.33  licensed collection agency or refer the matter to the department 
 75.34  for collection under chapter 16D. 
 75.35     Subd. 5.  [SUCCESSORSHIP.] A contract entered into by an 
 75.36  owner, employer, or manager under the wage subsidy program is 
 76.1   legally binding on any successor owner, employer, or manager. 
 76.2      Sec. 18.  [REPEALER.] 
 76.3      Minnesota Statutes 1996, sections 268.672, subdivision 4; 
 76.4   268.673, subdivision 6; 268.676; 268.677, subdivisions 2 and 3; 
 76.5   268.678; and 268.679, subdivision 3, are repealed. 
 76.6                              ARTICLE 4 
 76.7                     HOUSING AND HOUSING FINANCE 
 76.9      The sums shown in the columns marked "APPROPRIATIONS" are 
 76.10  appropriated from the general fund for transfer to the housing 
 76.11  development fund for the programs specified, to be available for 
 76.12  the fiscal years indicated for each purpose.  The figures 
 76.13  "1997," "1998," and "1999," where used in this act, mean that 
 76.14  the appropriation or appropriations listed under them are 
 76.15  available for the year ending June 30, 1997, June 30, 1998, or 
 76.16  June 30, 1999, respectively.  If the figures are not used, the 
 76.17  appropriations are available for the year ending June 30, 1998, 
 76.18  or June 30, 1999, respectively.  The term "first year" means the 
 76.19  year ending June 30, 1998, and the term "second year" means the 
 76.20  year ending June 30, 1999.  Appropriations for the year ending 
 76.21  June 30, 1997, are in addition to appropriations made in 
 76.22  previous years.  Except as otherwise indicated, this transfer is 
 76.23  part of the agency's permanent budget base. 
 76.24                                             APPROPRIATIONS 
 76.25                                         Available for the Year 
 76.26                                             Ending June 30 
 76.27                                            1998         1999 
 76.28  TOTAL                                $36,594,000    $26,420,000
 76.29  Spending limit on cost of general 
 76.30  administration of agency programs:  
 76.31        1998           1999
 76.32      11,017,000     11,678,000
 76.33  $1,750,000 the first year and 
 76.34  $1,750,000 the second year is for a 
 76.35  rental housing assistance program for 
 76.36  persons with a mental illness or 
 76.37  families with an adult member with a 
 76.38  mental illness under Minnesota 
 76.39  Statutes, section 462A.2097. 
 76.40  A biennial appropriation of $5,750,000 
 76.41  is made in the first year and is for 
 76.42  family homeless prevention and 
 77.1   assistance program under Minnesota 
 77.2   Statutes, section 462A.204, and is 
 77.3   available until June 30, 1999. 
 77.4   Grants to organizations made under this 
 77.5   program may include grants (1) to 
 77.6   organizations providing case management 
 77.7   for persons that need assistance to 
 77.8   rehabilitate their rent history and 
 77.9   find rental housing, and (2) to 
 77.10  organizations that will provide, and 
 77.11  report on the success or failure of, 
 77.12  innovative approaches to housing 
 77.13  persons with poor rental histories, 
 77.14  including, but not limited to, 
 77.15  assisting tenants in correcting tenant 
 77.16  screening reports, developing a single 
 77.17  application fee and process acceptable 
 77.18  to participating landlords, developing 
 77.19  a certification of tenants program 
 77.20  acceptable to participating landlords, 
 77.21  expungement of unlawful detainer 
 77.22  records, and creating a bonding program 
 77.23  to encourage landlords to accept 
 77.24  high-risk tenants with poor rent 
 77.25  histories. 
 77.26  $583,000 the first year and $583,000 
 77.27  the second year is for the foreclosure 
 77.28  prevention and assistance program under 
 77.29  Minnesota Statutes, section 462A.207. 
 77.30  $2,750,000 the first year and 
 77.31  $2,750,000 the second year is for the 
 77.32  rent assistance for family 
 77.33  stabilization program under Minnesota 
 77.34  Statutes, section 462A.205.  Of this 
 77.35  amount, $750,000 each year is a 
 77.36  one-time appropriation and is not added 
 77.37  to the agency's permanent base. 
 77.38  $2,348,000 the first year and 
 77.39  $2,348,000 the second year is for the 
 77.40  housing trust fund, under Minnesota 
 77.41  Statutes, section 462A.201. 
 77.42  $9,918,000 the first year and 
 77.43  $6,493,000 the second year is for the 
 77.44  affordable rental investment fund 
 77.45  program under Minnesota Statutes, 
 77.46  section 462A.21, subdivision 8b.  Of 
 77.47  this amount, $3,300,000 the first year 
 77.48  is a one-time appropriation and is not 
 77.49  added to the agency's permanent base.  
 77.50  Of this amount, $125,000 the first year 
 77.51  is for housing for people with HIV or 
 77.52  AIDS outside of the metropolitan 
 77.53  statistical area and is a one-time 
 77.54  appropriation and is not added to the 
 77.55  agency's permanent base.  
 77.56  To the extent practicable, this 
 77.57  appropriation shall be used so that an 
 77.58  approximately equal number of housing 
 77.59  units are financed in the metropolitan 
 77.60  area, as defined in Minnesota Statutes, 
 77.61  section 473.121, subdivision 2, and in 
 77.62  the nonmetropolitan area. 
 77.63  (a) In the area of the state outside 
 77.64  the metropolitan area, the agency must 
 78.1   work with groups in the funding regions 
 78.2   created under Minnesota Statutes, 
 78.3   section 116J.415, to assist the agency 
 78.4   in identifying the affordable housing 
 78.5   needed in each region in connection 
 78.6   with economic development and 
 78.7   redevelopment efforts and in 
 78.8   establishing priorities for uses of the 
 78.9   affordable rental investment fund.  The 
 78.10  groups must include the regional 
 78.11  development commissioners, the regional 
 78.12  organization selected under Minnesota 
 78.13  Statutes, section 116J.415, the private 
 78.14  industry councils, units of local 
 78.15  government, community action agencies, 
 78.16  the Minnesota housing partnership 
 78.17  network groups, local lenders, 
 78.18  for-profit and nonprofit developers, 
 78.19  and realtors.  In addition to 
 78.20  priorities developed by the group, the 
 78.21  agency must give a preference to 
 78.22  economically viable projects in which 
 78.23  units of local government, area 
 78.24  employers, and the private sector 
 78.25  contribute financial assistance.  
 78.26  (b) In the metropolitan area, the 
 78.27  commissioner shall collaborate with the 
 78.28  metropolitan council to identify the 
 78.29  priorities for use of the affordable 
 78.30  rental investment fund.  Funds 
 78.31  distributed in the metropolitan area 
 78.32  must be used consistent with the 
 78.33  objectives of the metropolitan 
 78.34  development guide, adopted under 
 78.35  Minnesota Statutes, section 473.145.  
 78.36  In addition to the priorities 
 78.37  identified in conjunction with the 
 78.38  metropolitan council, the agency shall 
 78.39  give preference to economically viable 
 78.40  projects that: 
 78.41  (1) include a contribution of financial 
 78.42  resources from units of local 
 78.43  government and area employers; 
 78.44  (2) take into account the availability 
 78.45  of transportation in the community; and 
 78.46  (3) take into account the job training 
 78.47  efforts in the community. 
 78.48  $187,000 the first year and $187,000 
 78.49  the second year is for the urban Indian 
 78.50  housing program under Minnesota 
 78.51  Statutes, section 462A.07, subdivision 
 78.52  15.  
 78.53  $1,683,000 the first year and 
 78.54  $1,683,000 the second year is for the 
 78.55  tribal Indian housing program under 
 78.56  Minnesota Statutes, section 462A.07, 
 78.57  subdivision 14.  
 78.58  $186,000 the first year and $186,000 
 78.59  the second year is for the Minnesota 
 78.60  rural and urban homesteading program 
 78.61  under Minnesota Statutes, section 
 78.62  462A.057.  
 78.63  $340,000 the first year and $240,000 
 79.1   the second year is for nonprofit 
 79.2   capacity building grants under 
 79.3   Minnesota Statutes, section 462A.21, 
 79.4   subdivision 3b.  Of this amount, 
 79.5   $80,000 is for a grant to the Minnesota 
 79.6   housing partnership.  Of this amount, 
 79.7   $150,000 is for equal grants to an 
 79.8   organization in each of the six regions 
 79.9   established under Minnesota Statutes, 
 79.10  section 116J.415, for capacity building 
 79.11  grants.  Of this amount, $50,000 is for 
 79.12  a grant in the metropolitan area, as 
 79.13  defined in Minnesota Statutes, section 
 79.14  473.121, subdivision 2.  Of this 
 79.15  amount, $100,000 the first year is to 
 79.16  develop projects under the neighborhood 
 79.17  land trust program under Minnesota 
 79.18  Statutes, sections 462A.30 and 462A.31, 
 79.19  and is available until June 30, 1999.  
 79.20  The appropriation in the first year for 
 79.21  the neighborhood land trust program is 
 79.22  a one-time appropriation and is not 
 79.23  added to the agency's permanent base.  
 79.24  $4,762,000 the first year and 
 79.25  $4,763,000 the second year is for the 
 79.26  community rehabilitation program under 
 79.27  Minnesota Statutes, section 462A.206.  
 79.28  Of this amount, $500,000 is for 
 79.29  full-cycle home ownership and 
 79.30  purchase-rehabilitation lending 
 79.31  initiatives.  Of this amount, 
 79.32  $1,612,000 the first year and 
 79.33  $1,613,000 the second year are one-time 
 79.34  appropriations and are not added to the 
 79.35  agency's permanent base. 
 79.36  Of this amount, $1,000,000 is for a 
 79.37  grant to acquire, demolish, and remove 
 79.38  substandard multiple-unit residential 
 79.39  rental property or acquire and 
 79.40  reconfigure multiple-unit residential 
 79.41  rental property.  Priority must be 
 79.42  given to projects that result in the 
 79.43  creation of housing opportunities that 
 79.44  will diversify the housing stock and 
 79.45  promote the creation of life-cycle 
 79.46  housing opportunities within the 
 79.47  community.  For the purposes of this 
 79.48  paragraph, "substandard multiple-unit 
 79.49  residential rental property" is 
 79.50  property that meets the definition of 
 79.51  Minnesota Statutes 1996, section 
 79.52  273.1316, subdivision 2.  Displaced 
 79.53  residents must be provided relocation 
 79.54  assistance, as provided in Minnesota 
 79.55  Statutes, sections 117.50 to 117.56.  
 79.56  To the extent allowed by federal law, a 
 79.57  public agency administering a federal 
 79.58  rent subsidy program shall give 
 79.59  priority to persons displaced by grants 
 79.60  under this section. 
 79.61  Of this amount, $200,000 is for a grant 
 79.62  to provide matching funds to an 
 79.63  organization or consortium of 
 79.64  organizations awarded a grant from the 
 79.65  metropolitan livable communities 
 79.66  demonstration program to develop 
 79.67  affordable and life-cycle housing in St.
 79.68  Paul or Minneapolis. 
 80.1   A recipient of funds from the community 
 80.2   rehabilitation program for a project in 
 80.3   a historic preservation district in St. 
 80.4   Paul, must provide assurances to the 
 80.5   agency that the project will conform to 
 80.6   the written historic preservation 
 80.7   guidelines for the district and that 
 80.8   the funding recipient will not seek any 
 80.9   variance to the guidelines.  
 80.10  $4,287,000 the first year and 
 80.11  $4,287,000 the second year is for the 
 80.12  housing rehabilitation and 
 80.13  accessibility program under Minnesota 
 80.14  Statutes, section 462A.05, subdivisions 
 80.15  14a and 15a.  
 80.16  $1,125,000 the first year and 
 80.17  $1,125,000 the second year is for the 
 80.18  home ownership assistance fund under 
 80.19  Minnesota Statutes, section 462A.21, 
 80.20  subdivision 8.  Of this amount, 
 80.21  $425,000 each year is a one-time 
 80.22  appropriation and is not added to the 
 80.23  agency's permanent base. 
 80.24  $25,000 the first year and $25,000 the 
 80.25  second year is for home equity 
 80.26  conversion loan counseling grants under 
 80.27  Minnesota Statutes, section 462A.28. 
 80.28  $50,000 is for the costs of the 
 80.29  advisory task force on lead hazard 
 80.30  reduction, established in section 2.  
 80.31  This is a one-time appropriation and is 
 80.32  not added to the agency's permanent 
 80.33  base. 
 80.34  $100,000 is for the affordable 
 80.35  neighborhood design and development 
 80.36  initiative, in Laws 1995, chapter 224, 
 80.37  section 122.  This is a one-time 
 80.38  appropriation and is not added to the 
 80.39  agency's permanent base. 
 80.40  $750,000 is for a grant to the city of 
 80.41  Landfall to purchase a portion of real 
 80.42  property in the city owned by the 
 80.43  Washington county housing and 
 80.44  redevelopment authority.  The agency 
 80.45  shall not make the grant until the city 
 80.46  of Landfall has secured the balance of 
 80.47  the funds necessary to purchase the 
 80.48  real property from the Washington 
 80.49  county housing and redevelopment 
 80.50  authority.  This is a one-time 
 80.51  appropriation and is not added to the 
 80.52  agency's permanent base. 
 80.54     Subdivision 1.  [PURPOSE; DUTIES.] An advisory task force 
 80.55  on lead hazard reduction is established to: 
 80.56     (1) study and propose a program to certify residential 
 80.57  rental property as lead-safe; 
 80.58     (2) study and propose essential maintenance practices and 
 81.1   standard treatments to ensure that a residence remains lead-safe 
 81.2   after certification; 
 81.3      (3) identify the current barriers that cause lead liability 
 81.4   exclusion riders to be added to property owner insurance 
 81.5   liability policies; 
 81.6      (4) identify the legal rights and responsibilities of 
 81.7   landlords to provide lead-safe housing and the legal rights and 
 81.8   responsibilities of both landlords and tenants to maintain 
 81.9   lead-safe property; and 
 81.10     (5) study the legal liability of landlords and tenants when 
 81.11  a child becomes lead poisoned and propose methods to reduce 
 81.12  property owner liability while still protecting the legal rights 
 81.13  of children who become lead poisoned. 
 81.14     The task force shall report its findings and proposals to 
 81.15  the 1998 legislature. 
 81.16     Subd. 2.  [MEMBERSHIP.] Members of the advisory task force 
 81.17  on lead hazard reduction are as follows: 
 81.18     (1) the chairs, or the chairs' designees, of the house of 
 81.19  representatives housing and housing finance division, and the 
 81.20  family and early childhood education finance division; 
 81.21     (2) the chairs, or the chairs' designees, of the senate 
 81.22  jobs, energy, and community development committee, and the 
 81.23  family and early childhood education finance division; 
 81.24     (3) one house member from the minority caucus, appointed by 
 81.25  the speaker, and one senator from the minority caucus, appointed 
 81.26  by the committee on rules and administration; 
 81.27     (4) the commissioner of commerce or the commissioner's 
 81.28  designee; 
 81.29     (5) the commissioner of the housing finance agency or the 
 81.30  commissioner's designee; 
 81.31     (6) the commissioner of health or the commissioner's 
 81.32  designee; and 
 81.33     (7) up to 15 members appointed jointly by the commissioner 
 81.34  of commerce and the commissioner of the housing finance agency 
 81.35  to represent the following interests:  landlords, tenants, 
 81.36  attorneys practicing landlord tenant law, parents of children 
 82.1   with lead poisoning, swab teams, insurers, the education 
 82.2   association, family physicians and pediatricians, realtors, the 
 82.3   Children's Defense Fund, the federal Environmental Protection 
 82.4   Agency, building inspectors, the paint and coatings industry, 
 82.5   and local boards of health. 
 82.6      Subd. 3.  [CHAIR.] The commissioners of the housing finance 
 82.7   agency and the department of commerce shall convene the first 
 82.8   meeting of the advisory task force.  At the advisory task 
 82.9   force's first meeting, the members shall select a member to 
 82.10  serve as chair. 
 82.11     Subd. 4.  [TECHNICAL ASSISTANCE.] The commissioners of 
 82.12  health, commerce, and the housing finance agency and the 
 82.13  attorney general shall provide assistance to the advisory task 
 82.14  force, including technical assistance relating to lead hazards 
 82.15  and the reduction of lead hazards, insurance, landlord-tenant 
 82.16  law, and other assistance as requested by the task force. 
 82.17     Subd. 5.  [EXPENSES; ADMINISTRATIVE SUPPORT.] Members of 
 82.18  the advisory task force must receive per diem and expenses, in 
 82.19  the amount provided in Minnesota Statutes, section 15.059, 
 82.20  subdivision 3.  Members' compensation and other administrative 
 82.21  expenses of the advisory task force must be paid for by the 
 82.22  Minnesota housing finance agency. 
 82.23     Subd. 6.  [EFFECTIVE DATE; EXPIRATION.] This section is 
 82.24  effective the day following final enactment and expires June 30, 
 82.25  1998. 
 82.27     Any local governmental unit or nonprofit organization that 
 82.28  receives funds from the community rehabilitation program under 
 82.29  section 1, or from any other state program, is prohibited from 
 82.30  constructing new housing within the Dayton's Bluff Historic 
 82.31  District in the city of St. Paul for one year after the 
 82.32  effective date of this section.  
 82.33     Sec. 4.  Minnesota Statutes 1996, section 268.38, 
 82.34  subdivision 7, is amended to read: 
 82.35     Subd. 7.  [FUNDING COORDINATION.] Grant recipients shall 
 82.36  combine funds awarded under this section with other funds from 
 83.1   public and private sources.  Programs receiving funds under this 
 83.2   section are also eligible for assistance under section 462A.05, 
 83.3   subdivision 20.  
 83.4      Sec. 5.  [366.152] [PERMITTED USES.] 
 83.5      A manufactured home park, as defined in section 327.14, 
 83.6   subdivision 3, is a conditional use in a zoning district that 
 83.7   allows the construction or placement of a building used or 
 83.8   intended to be used by two or more families. 
 83.9      Sec. 6.  Minnesota Statutes 1996, section 394.25, is 
 83.10  amended by adding a subdivision to read: 
 83.11     Subd. 3b.  [PERMITTED USES.] A manufactured home park, as 
 83.12  defined in section 327.14, subdivision 3, is a conditional use 
 83.13  in a zoning district that allows the construction or placement 
 83.14  of a building used or intended to be used by two or more 
 83.15  families. 
 83.16     Sec. 7.  Minnesota Statutes 1996, section 462.357, is 
 83.17  amended by adding a subdivision to read: 
 83.18     Subd. 1b.  [PERMITTED USES.] A manufactured home park, as 
 83.19  defined in section 327.14, subdivision 3, is a conditional use 
 83.20  in a zoning district that allows the construction or placement 
 83.21  of a building used or intended to be used by two or more 
 83.22  families. 
 83.23     Sec. 8.  Minnesota Statutes 1996, section 462A.05, 
 83.24  subdivision 14d, is amended to read: 
 83.25     Subd. 14d.  [ACCESSIBILITY LOAN PROGRAM.] Rehabilitation 
 83.26  loans authorized under subdivision 14 may be made to eligible 
 83.27  persons and families households without limitations relating to 
 83.28  the maximum incomes of the borrowers. 
 83.29     A person or family household is eligible to receive an 
 83.30  accessibility loan under the following conditions: 
 83.31     (1) the borrower or a member of an individual residing in 
 83.32  the borrower's family requires a level of care provided in a 
 83.33  hospital, skilled nursing facility, or intermediate care 
 83.34  facility for persons with mental retardation or related 
 83.35  conditions; home has a permanent physical or mental condition 
 83.36  that substantially limits one or more major life activities; and 
 84.1      (2) home care is appropriate; and 
 84.2      (3) the improvement to the housing will enable assist the 
 84.3   borrower or a member of the borrower's family to reside 
 84.4   household in residing in the housing. 
 84.5      Sec. 9.  Minnesota Statutes 1996, section 462A.05, 
 84.6   subdivision 30, is amended to read: 
 84.8   MORTGAGES.] It may invest in, purchase, acquire, and take 
 84.9   assignments of existing notes and mortgages not closed for the 
 84.10  purpose of sale to the agency, from lenders that are nonprofit 
 84.11  or nonprofit entities, as defined in the agency's rules, 
 84.12  provided that:  (1) the notes and mortgages evidence loans for 
 84.13  the construction, rehabilitation, purchase, improvement, or 
 84.14  refinancing of residential housing intended for occupancy and 
 84.15  occupied by low- and moderate-income persons and families; and 
 84.16  (2) the loan sellers utilize the funds derived from the 
 84.17  purchases in accordance with the authority contained in section 
 84.18  462A.07, subdivision 12, for the purposes and objectives of 
 84.19  sections 462A.02, 462A.03, 462A.05, 462A.07, and 462A.21; and 
 84.20  (3) the purchases are subject to security and limitations on the 
 84.21  costs and expenses of the loan sellers incidental to the 
 84.22  utilization of the purchase proceeds as the agency may 
 84.23  determine.  The proceeds of the purchases authorized by this 
 84.24  subdivision shall not be subject to the limitations of section 
 84.25  462A.21, subdivisions 4k, 6, 9, and 12 6 and 9.  In addition, it 
 84.26  may invest in, purchase, acquire, and take assignments of 
 84.27  existing federally insured mortgages for multifamily housing, 
 84.28  not closed for the purpose of sale to the agency, from any 
 84.29  banking institution, savings association, or other lender or 
 84.30  financial intermediary approved by the members; provided that 
 84.31  the multifamily housing is benefited by contracts for federal 
 84.32  housing assistance payments. 
 84.33     Sec. 10.  Minnesota Statutes 1996, section 462A.05, 
 84.34  subdivision 39, is amended to read: 
 84.35     Subd. 39.  [EQUITY TAKE-OUT LOANS.] The agency may make 
 84.36  equity take-out loans to owners of section 8 project-based and 
 85.1   section 236 rental property upon which the agency holds a first 
 85.2   mortgage.  The owner of a section 8 project-based rental 
 85.3   property must agree to participate in the section 8 program and 
 85.4   extend the low-income affordability restrictions on the housing 
 85.5   for the maximum term of the section 8 contract.  The owner of 
 85.6   section 236 rental property must agree to participate in the 
 85.7   section 236 interest reduction payments program, to extend any 
 85.8   existing low-income affordability restrictions on the housing, 
 85.9   and to extend any rental assistance payments for the maximum 
 85.10  term permitted under the agreement for rental assistance 
 85.11  payments.  The equity take-out loan must be secured by a 
 85.12  subordinate loan on the property and may include additional 
 85.13  appropriate security determined necessary by the agency. 
 85.14     Sec. 11.  Minnesota Statutes 1996, section 462A.05, is 
 85.15  amended by adding a subdivision to read: 
 85.16     Subd. 41.  [DEMONSTRATION GRANTS.] The agency may make 
 85.17  demonstration grants to owners or managers of multifamily rental 
 85.18  property upon which the agency holds a mortgage for the purpose 
 85.19  of developing or coordinating services that promote the tenant's 
 85.20  ability to live independently, support the tenant's 
 85.21  self-sufficiency, improve the relationship between the tenants 
 85.22  and the community, or that otherwise strengthen the community. 
 85.23     Sec. 12.  Minnesota Statutes 1996, section 462A.13, is 
 85.24  amended to read: 
 85.26  AGENCY.] 
 85.27     The agency, subject to such agreements with noteholders or 
 85.28  bondholders as may then exist, shall have power out of any funds 
 85.29  available therefor to purchase notes or bonds of the agency, 
 85.30  which shall thereupon be canceled, either at initial issuance or 
 85.31  at a subsequent date, for cancellation or as an investment of 
 85.32  funds of the agency until required for its authorized purposes.  
 85.33  If so purchased, the notes or bonds shall be purchased at a 
 85.34  price not exceeding (a) if the notes or bonds are then 
 85.35  redeemable, the redemption price then applicable plus accrued 
 85.36  interest to the next interest payment date thereon purchase 
 86.1   date, or (b) if the notes or bonds are not redeemable, the 
 86.2   redemption price applicable on the first date after such 
 86.3   purchase upon which the notes or bonds become subject to 
 86.4   redemption plus accrued interest to such the purchase date.  
 86.5      Sec. 13.  Minnesota Statutes 1996, section 462A.201, 
 86.6   subdivision 2, is amended to read: 
 86.7      Subd. 2.  [LOW-INCOME HOUSING.] (a) The agency may, in 
 86.8   consultation with the advisory committee, use money from the 
 86.9   housing trust fund account to provide loans or grants for 
 86.10  projects for the development, construction, acquisition, 
 86.11  preservation, and rehabilitation of low-income rental and 
 86.12  limited equity cooperative housing units, including temporary 
 86.13  and transitional housing, and homes for ownership.  Loans or 
 86.14  grants for residential housing for migrant farmworkers may be 
 86.15  made under this section.  No more than 20 percent of available 
 86.16  funds may be used for home ownership projects.  
 86.17     (b) A rental or limited equity cooperative permanent 
 86.18  housing project must meet one of the following income tests: 
 86.19     (1) at least 75 percent of the rental and cooperative units 
 86.20  must be rented to or cooperatively owned by persons and families 
 86.21  whose income does not exceed 30 percent of the median family 
 86.22  income for the metropolitan area as defined in section 473.121, 
 86.23  subdivision 2; or 
 86.24     (2) all of the units funded by the housing trust fund 
 86.25  account must be used for the benefit of persons and families 
 86.26  whose income does not exceed 30 percent of the median family 
 86.27  income for the metropolitan area as defined in section 473.121, 
 86.28  subdivision 2. 
 86.29     The median family income may be adjusted for families of 
 86.30  five or more. 
 86.31     (c) Homes for ownership must be owned or purchased by 
 86.32  persons and families whose income does not exceed 50 percent of 
 86.33  the metropolitan area median income, adjusted for family size. 
 86.34     (d) In making the grants, the agency shall determine the 
 86.35  terms and conditions of repayment and the appropriate security, 
 86.36  if any, should repayment be required.  To promote the geographic 
 87.1   distribution of grants and loans, the agency may designate a 
 87.2   portion of the grant or loan awards to be set aside for projects 
 87.3   located in specified congressional districts or other 
 87.4   geographical regions specified by the agency.  The agency may 
 87.5   adopt rules for awarding grants and loans under this subdivision.
 87.6      Sec. 14.  Minnesota Statutes 1996, section 462A.205, is 
 87.7   amended to read: 
 87.11  PROJECT.] The agency, in consultation with the department of 
 87.12  human services, may establish a rent assistance for family 
 87.13  stabilization demonstration project.  The purpose of the project 
 87.14  is to provide rental assistance to families who, at the time of 
 87.15  initial eligibility for rental assistance under this section, 
 87.16  were receiving public assistance, and had a caretaker parent 
 87.17  participating in a self-sufficiency program and at least one 
 87.18  minor child and to provide rental assistance to families who, at 
 87.19  the time of initial eligibility for rental assistance under this 
 87.20  section, were receiving public assistance, and had a caretaker 
 87.21  parent who had earned income and with at least one minor child.  
 87.22  The demonstration project is limited to counties with high 
 87.23  average housing costs.  The program must offer two options:  a 
 87.24  voucher option and a project-based voucher option.  The funds 
 87.25  may be distributed on a request for proposal basis.  
 87.26     Subd. 2.  [DEFINITIONS.] For the purposes of this section, 
 87.27  the following terms have the meanings given them. 
 87.28     (a) "Caretaker parent" means a parent, relative caretaker, 
 87.29  or minor caretaker as defined by the aid to families with 
 87.30  dependent children program, sections 256.72 to 256.87, or its 
 87.31  successor program. 
 87.32     (b) "County agency" means the agency designated by the 
 87.33  county board to implement financial assistance for current 
 87.34  public assistance programs and for the Minnesota family 
 87.35  investment program statewide. 
 87.36     (c) "Counties with high average housing costs" means 
 88.1   counties whose average federal section 8 fair market rents as 
 88.2   determined by the Department of Housing and Urban Development 
 88.3   are in the highest one-third of average rents in the state. 
 88.4      (c) (d) "Designated rental property" is rental property (1) 
 88.5   that is made available by a self-sufficiency program for use by 
 88.6   participating families and meets federal section 8 existing 
 88.7   quality standards, or (2) that has received federal, state, or 
 88.8   local rental rehabilitation assistance since January 1, 1987, 
 88.9   and meets federal section 8 existing housing quality standards. 
 88.10     (e) "Earned income" for a family receiving rental 
 88.11  assistance under this section means cash or in-kind income 
 88.12  earned through the receipt of wages, salary, commissions, profit 
 88.13  from employment activities, net profit from self-employment 
 88.14  activities, payments made by an employer for regularly accrued 
 88.15  vacation or sick leave, and any other profit from activity 
 88.16  earned through effort or labor. 
 88.17     (f) "Family or participating family" means: 
 88.18     (1) a family with a caretaker parent who is participating 
 88.19  in a self-sufficiency program and with at least one minor child; 
 88.20     (2) a family that, at the time it began receiving rent 
 88.21  assistance under this section, had a caretaker parent 
 88.22  participating in a self-sufficiency program and had at least one 
 88.23  minor child; 
 88.24     (3) a family with a caretaker parent who is receiving 
 88.25  public assistance and has earned income and with at least one 
 88.26  minor child; or 
 88.27     (4) a family that, at the time it began receiving rent 
 88.28  assistance under this section, had a caretaker parent who had 
 88.29  earned income and at least one minor child. 
 88.30     (d) (g) "Gross family income" for a family receiving rental 
 88.31  assistance under this section means the gross amount of the 
 88.32  wages, salaries, social security payments, pensions, workers' 
 88.33  compensation, reemployment insurance, public assistance 
 88.34  payments, alimony, child support, and income from assets 
 88.35  received by the family. 
 88.36     (e) (h) "Local housing organization" means the agency of 
 89.1   local government responsible for administering the Department of 
 89.2   Housing and Urban Development's section 8 existing voucher and 
 89.3   certificate program or a nonprofit or for-profit organization 
 89.4   experienced in housing management. 
 89.5      (f) (i) "Public assistance" means aid to families with 
 89.6   dependent children, or its successor program, family general 
 89.7   assistance, or its successor program, or family work readiness, 
 89.8   or its successor program. 
 89.9      (g) (j) "Self-sufficiency program" means a program operated 
 89.10  by a certified an employment and training service provider as 
 89.11  defined in section 256.736, subdivision 1a, paragraph 
 89.12  (e) chapter 256J, an employability program administered by a 
 89.13  community action agency, or courses of study at an accredited 
 89.14  institution of higher education pursued with at least half-time 
 89.15  student status. 
 89.16     Subd. 3.  [LOCAL HOUSING ORGANIZATION.] The agency may 
 89.17  contract with a local housing organization to administer the 
 89.18  rent assistance under this section.  The agency may pay the 
 89.19  local housing organization an administrative fee.  The 
 89.20  administrative fee may not exceed $40 per unit per month. 
 89.21     Subd. 4.  [AMOUNT AND PAYMENT OF RENT ASSISTANCE.] (a) This 
 89.22  subdivision applies to both the voucher option and the 
 89.23  project-based voucher option.  
 89.24     (b) Within the limits of available appropriations, eligible 
 89.25  families may receive monthly rent assistance for a 36-month 
 89.26  period starting with the month the family first receives rent 
 89.27  assistance under this section.  The amount of the family's 
 89.28  portion of the rental payment is equal to at least 30 percent of 
 89.29  gross income. 
 89.30     (c) The rent assistance must be paid by the local housing 
 89.31  organization to the property owner. 
 89.32     (d) Subject to the limitations in paragraph (e), the amount 
 89.33  of rent assistance is the difference between the rent and the 
 89.34  family's portion of the rental payment. 
 89.35     (e) In no case: 
 89.36     (1) may the amount of monthly rent assistance be more than 
 90.1   $250 for housing located within the metropolitan area, as 
 90.2   defined in section 473.121, subdivision 2, or more than $200 for 
 90.3   housing located outside of the metropolitan area; 
 90.4      (2) may the owner receive more rent for assisted units than 
 90.5   for comparable unassisted units; nor 
 90.6      (3) may the amount of monthly rent assistance be more than 
 90.7   the difference between the family's portion of the rental 
 90.8   payment and the fair market rent for the unit as determined by 
 90.9   the Department of Housing and Urban Development. 
 90.10     Subd. 4a.  [ADDITIONAL AUTHORIZED EXPENSES.] In addition to 
 90.11  the monthly rent assistance authorized under subdivision 4, rent 
 90.12  assistance may include up to $200 for a security deposit for 
 90.13  housing located outside the metropolitan area, as defined in 
 90.14  section 473.121, subdivision 2, and up to $250 for a security 
 90.15  deposit for housing located within the metropolitan area. 
 90.16     Subd. 5.  [VOUCHER OPTION.] At least one-half of the 
 90.17  appropriated funds must be made available for a voucher option.  
 90.18  Under the voucher option, the Minnesota housing finance agency, 
 90.19  in consultation with the department of human services, will 
 90.20  award a number of vouchers to self-sufficiency program 
 90.21  administrators for participating families and to county agencies 
 90.22  for participating families with earned income.  Families may use 
 90.23  the voucher for any rental housing that is certified by the 
 90.24  local housing organization as meeting section 8 existing housing 
 90.25  quality standards. 
 90.26     Subd. 6.  [PROJECT-BASED VOUCHER OPTION.] A portion of the 
 90.27  appropriated funds must be made available for a project-based 
 90.28  voucher option.  Under the project-based voucher option, the 
 90.29  Minnesota housing finance agency, in consultation with the 
 90.30  department of human services, will award a number of vouchers to 
 90.31  self-sufficiency program administrators and to county agencies 
 90.32  for participating families who live in designated rental 
 90.33  property that is certified by a local housing organization as 
 90.34  meeting section 8 existing housing quality standards.  The 
 90.35  Minnesota housing finance agency and local housing organizations 
 90.36  must work with self-sufficiency program administrators to 
 91.1   identify rental property that has received rental rehabilitation 
 91.2   assistance since January 1, 1987.  The agency may set aside a 
 91.3   portion of the funds to be used in connection with rental 
 91.4   rehabilitation projects which will be completed by July 1, 1992. 
 91.5      Subd. 7.  [PROPERTY OWNER.] In order to receive rent 
 91.6   assistance payments, the property owner must enter into a 
 91.7   standard lease agreement with the family which includes a clause 
 91.8   providing for good cause evictions only.  Otherwise, the lease 
 91.9   may be any standard lease agreement.  The agency and local 
 91.10  housing organizations must make model lease agreements available 
 91.11  to participating families and property owners.  
 91.12     Subd. 8.  [AUTHORIZED LEVERAGE OF MONEY.] The agency may 
 91.13  leverage federal program money with program money from the 
 91.14  family stabilization demonstration project authorized under this 
 91.15  section. 
 91.17  WITH EARNED INCOME.] (a) Applications to provide the rental 
 91.18  assistance for families with a caretaker parent with earned 
 91.19  income under either the voucher or project-based option must be 
 91.20  submitted jointly by a local housing organization and a county 
 91.21  agency.  The application must include a description of how the 
 91.22  caretaker parent participants will be selected. 
 91.23     (b) County agencies awarded vouchers must select the 
 91.24  caretaker parents with earned income whose families will receive 
 91.25  the rent assistance.  The county agency must notify the local 
 91.26  housing organization and the agency if: 
 91.27     (1) the caretaker parent no longer has earned income and is 
 91.28  not in compliance with the caretaker parent's employment plan or 
 91.29  job search plan; and 
 91.30     (2) for a period of six months, the caretaker parent has no 
 91.31  earned income and has failed to comply with the job search 
 91.32  support plan or employment plan. 
 91.33     (c) The county agency must provide the caretaker parent who 
 91.34  has no earned income and is not in compliance with the job 
 91.35  search support plan or employment plan with the notice specified 
 91.36  in Minnesota Rules, part 4900.3379.  The county agency must send 
 92.1   a subsequent notice to the caretaker parent, the local housing 
 92.2   organization, and the Minnesota housing finance agency 60 days 
 92.3   before the termination of rental assistance. 
 92.4      (d) If the local housing organization receives notice from 
 92.5   a county agency that a caretaker parent whose initial 
 92.6   eligibility for rental assistance was based on the receipt of 
 92.7   earned income no longer has earned income and for a period of 
 92.8   six months after the termination of earned income has failed to 
 92.9   comply with the caretaker parent's job search plan or employment 
 92.10  plan, the local housing organization must notify the property 
 92.11  owner that rental assistance may terminate and notify the 
 92.12  caretaker parent of the termination of rental assistance under 
 92.13  Minnesota Rules, part 4900.3380. 
 92.14     (e) The county agency awarded vouchers for families with a 
 92.15  caretaker parent with earned income must comply with the 
 92.16  provisions of Minnesota Rules, part 4900.3377. 
 92.17     (f) For families whose initial eligibility for rental 
 92.18  assistance was based on the receipt of earned income, rental 
 92.19  assistance must be terminated under any of the following 
 92.20  conditions: 
 92.21     (1) the family is evicted from the property for cause; 
 92.22     (2) the caretaker parent no longer has earned income and, 
 92.23  after six months, is not in compliance with the parent's job 
 92.24  search or employment plan; 
 92.25     (3) 30 percent of the family's gross income equals or 
 92.26  exceeds the amount of the housing costs for two or more 
 92.27  consecutive months; 
 92.28     (4) the family has received rental assistance under this 
 92.29  section for a 36-month period; or 
 92.30     (5) the rental unit no longer meets federal section 8 
 92.31  existing housing quality standards, the owner refused to make 
 92.32  necessary repairs or alterations to bring the rental unit into 
 92.33  compliance within a reasonable time, and the caretaker parent 
 92.34  refused to relocate to a qualifying unit. 
 92.35     (g) If a county agency determines that a caretaker parent 
 92.36  no longer has earned income and is not in compliance with the 
 93.1   parent's job search or employment plan, the county agency must 
 93.2   notify the caretaker parent of that determination.  The notice 
 93.3   must be in writing and must explain the effect of not having 
 93.4   earned income or failing to be in compliance with the job search 
 93.5   or employment plan will have on the rental assistance.  The 
 93.6   notice must: 
 93.7      (1) state that rental assistance will end six months after 
 93.8   earned income has ended; 
 93.9      (2) specify the date the rental assistance will end; 
 93.10     (3) explain that after the date specified, the caretaker 
 93.11  parent will be responsible for the total housing costs; 
 93.12     (4) describe the actions the caretaker parent may take to 
 93.13  avoid termination of rental assistance; and 
 93.14     (5) inform the caretaker parent of the caretaker parent's 
 93.15  responsibility to notify the county agency if the caretaker 
 93.16  parent has earned income.  
 93.17     Sec. 15.  Minnesota Statutes 1996, section 462A.206, 
 93.18  subdivision 2, is amended to read: 
 93.19     Subd. 2.  [AUTHORIZATION.] The agency may make grants or 
 93.20  loans to cities or nonprofit organizations for the purposes of 
 93.21  construction, acquisition, rehabilitation, demolition, permanent 
 93.22  financing, refinancing, gap financing of single or multifamily 
 93.23  housing, or full cycle home ownership services, as defined in 
 93.24  section 462A.209, subdivision 2.  Gap financing is financing for 
 93.25  the difference between the cost of the improvement of the 
 93.26  blighted property, including acquisition, demolition, 
 93.27  rehabilitation, and construction, and the market value of the 
 93.28  property upon sale.  The agency shall take into account the 
 93.29  amount of money that the city or nonprofit organization 
 93.30  leverages from other sources in awarding grants and loans.  The 
 93.31  agency shall also consider the extent to which the grant or loan 
 93.32  recipient will coordinate use of the funds with its other 
 93.33  housing-related efforts or other housing-related efforts in the 
 93.34  recipient's geographic area.  The city or nonprofit organization 
 93.35  must indicate in its application how the proposed project is 
 93.36  consistent with the consolidated housing plan.  Not less than 
 94.1   ten days before submitting its application to the agency, a 
 94.2   nonprofit organization must notify the city in which the project 
 94.3   will be located of its intent to apply for funds.  The city may 
 94.4   submit to the agency its written comments on the nonprofit 
 94.5   organization's application and the agency shall consider the 
 94.6   city's comments in reviewing the application.  Cities and 
 94.7   nonprofit organizations may use the grants and loans to 
 94.8   establish revolving loan funds and to provide grants and loans 
 94.9   to eligible mortgagors.  The city or nonprofit organization may 
 94.10  determine the terms and conditions of the grants and loans.  An 
 94.11  agency loan may only be used by a city or nonprofit organization 
 94.12  to make loans. 
 94.13     Sec. 16.  Minnesota Statutes 1996, section 462A.206, 
 94.14  subdivision 4, is amended to read: 
 94.15     Subd. 4.  [DESIGNATED AREAS.] For the purposes of focusing 
 94.16  resources, a city or a nonprofit organization located in a 
 94.17  metropolitan statistical area must designate neighborhoods 
 94.18  within which the grants or loans may be used, and a city or 
 94.19  nonprofit organization located outside of a metropolitan 
 94.20  statistical area must designate a geographic area within which 
 94.21  the grants or loans may be used. 
 94.22     Sec. 17.  [462A.2065] [REPORT ON LOSS OF HOUSING.] 
 94.23     Each year, the commissioner shall report to the chair of 
 94.24  the house of representatives housing and housing finance 
 94.25  division and to the chair of the senate jobs, energy, and 
 94.26  community development committee, the information provided in the 
 94.27  reports made to the commissioner under section 469.0305. 
 94.28     Sec. 18.  Minnesota Statutes 1996, section 462A.207, 
 94.29  subdivision 1, is amended to read: 
 94.30     Subdivision 1.  [ESTABLISHMENT.] The agency shall, within 
 94.31  the limits of available appropriations, establish a mortgage 
 94.32  foreclosure prevention and emergency rental assistance program 
 94.33  to provide assistance to low-income and moderate-income persons 
 94.34  who are facing the loss of their housing due to circumstances 
 94.35  beyond their control.  Priority for assistance under this 
 94.36  section must be given to persons and families at or below 60 
 95.1   percent of area median income, adjusted for family size, as 
 95.2   determined by the department of housing and urban development. 
 95.3      Sec. 19.  Minnesota Statutes 1996, section 462A.207, 
 95.4   subdivision 2, is amended to read: 
 95.5      Subd. 2.  [ADMINISTRATION.] The agency may contract with 
 95.6   community-based, nonprofit organizations that meet the 
 95.7   requirements specified in this section to provide either 
 95.8   mortgage foreclosure assistance or rental assistance, or both.  
 95.9   Preference must be given to nonprofit organizations that 
 95.10  demonstrate the greatest ability to leverage program money with 
 95.11  other sources of funding, or to organizations serving areas 
 95.12  without access to mortgage foreclosure assistance or rental 
 95.13  assistance.  The agency may require an organization to match 
 95.14  program money with other money or resources. 
 95.15     Sec. 20.  Minnesota Statutes 1996, section 462A.207, 
 95.16  subdivision 3, is amended to read: 
 95.17     Subd. 3.  [ORGANIZATION ELIGIBILITY.] A nonprofit 
 95.18  organization must be able to demonstrate that it is qualified to 
 95.19  deliver program services, has relevant expertise in mortgage 
 95.20  foreclosure prevention or landlord and tenant procedures, and is 
 95.21  able to perform the duties required under the program.  An 
 95.22  organization must provide the agency with a detailed description 
 95.23  of how the proposed program would be administered, including the 
 95.24  qualifications of staff.  An organization may not be part of, 
 95.25  nor affiliated with, a mortgage lender nor provide assistance to 
 95.26  a household which occupies a housing unit owned or managed by 
 95.27  the organization. 
 95.28     Sec. 21.  Minnesota Statutes 1996, section 462A.207, 
 95.29  subdivision 4, is amended to read: 
 95.30     Subd. 4.  [SELECTION CRITERIA.] The agency shall take the 
 95.31  following criteria into consideration when determining whether 
 95.32  an organization is qualified to administer the program: 
 95.33     (1) the prior experience of the nonprofit organization in 
 95.34  establishing, administering, and maintaining a mortgage 
 95.35  foreclosure prevention or a rental assistance program; 
 95.36     (2) the documented familiarity of the organization 
 96.1   regarding mortgage foreclosure prevention procedures, landlord 
 96.2   and tenant procedures, and other services available to assist 
 96.3   with preventing the loss of housing; 
 96.4      (3) the reasonableness of the proposed budget in meeting 
 96.5   the program objectives; 
 96.6      (4) the documented ability of the organization to provide 
 96.7   financial assistance; and 
 96.8      (5) the documented ability of the organization to provide 
 96.9   mortgage foreclosure prevention or other financial or tenant 
 96.10  counseling. 
 96.11     Sec. 22.  Minnesota Statutes 1996, section 462A.207, 
 96.12  subdivision 6, is amended to read: 
 96.13     Subd. 6.  [ASSISTANCE.] (a) Program assistance includes 
 96.14  general information, screening, assessment, referral services, 
 96.15  case management, advocacy, and financial assistance to borrowers 
 96.16  who are delinquent on mortgage, or contract for deed, or rent 
 96.17  payments. 
 96.18     (b) Not more than one-half of program funding may be used 
 96.19  for mortgage or financial counseling services. 
 96.20     (c) Financial assistance consists of: 
 96.21     (1) payments for delinquent mortgage or contract for deed 
 96.22  payments, future mortgage or contract for deed payments for a 
 96.23  period of up to six months, property taxes, assessments, 
 96.24  utilities, insurance, home improvement repairs, future rent 
 96.25  payments for a period of up to six months, and relocation costs 
 96.26  if necessary, or other costs necessary to prevent foreclosure; 
 96.27  or. 
 96.28     (2) delinquent rent payments, utility bills, any fees or 
 96.29  costs necessary to redeem the property, future rent payments for 
 96.30  a period of up to six months, and relocation costs if necessary. 
 96.31     (d) An individual or family may receive the lesser of six 
 96.32  months or $4,500 of financial assistance. 
 96.33     Sec. 23.  Minnesota Statutes 1996, section 462A.21, 
 96.34  subdivision 12a, is amended to read: 
 96.35     Subd. 12a.  [PROGRAM MONEY TRANSFER.] Grants authorized 
 96.36  under section 462A.05, subdivision 20, may be made only with 
 97.1   specific appropriations by the legislature, but Unencumbered 
 97.2   balances of money appropriated for the purpose of loans or 
 97.3   grants for agency programs under these subdivisions may be 
 97.4   transferred between programs created by these subdivisions or in 
 97.5   accordance with section 462A.20, subdivision 3. 
 97.6      Sec. 24.  [469.0305] [REPORT ON LOSS OF HOUSING.] 
 97.7      Subdivision 1.  [EFFECTS OF WELFARE REFORM.] A public 
 97.8   agency administering a public housing program or a rent subsidy 
 97.9   program shall report to the commissioner of the housing finance 
 97.10  agency by February 1, each year, beginning in 1998, the 
 97.11  reduction in the number of units or section 8 certificates or 
 97.12  vouchers during the year and an assessment of the reasons for 
 97.13  the reduction, including whether it is due to the state's 
 97.14  welfare reform initiatives. 
 97.15     Subd. 2.  [REDUCTION IN LOW-INCOME HOUSING UNITS.] A public 
 97.16  agency that acquires and demolishes housing occupied by persons 
 97.17  whose incomes are less than 50 percent of the area median income 
 97.18  shall report the number of units demolished to the commissioner 
 97.19  of the housing finance agency.  The report must be submitted to 
 97.20  the commissioner of the housing finance agency no later than 
 97.21  March 15 of the following year. 
 97.22     Sec. 25.  [REPEALER.] 
 97.23     Minnesota Statutes 1996, sections 268.39; 462A.05, 
 97.24  subdivision 20; 462A.206, subdivision 5; 462A.21, subdivisions 
 97.25  4k, 12, and 14, are repealed. 
 97.26     Sec. 26.  [EFFECTIVE DATE.] 
 97.27     Section 2 is effective as provided in that section.  
 97.28  Section 3 is effective the day following final enactment.  The 
 97.29  remainder of this article is effective July 1, 1997.