1st Unofficial Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to state government; appropriating money for 1.3 economic development, jobs, housing, and certain 1.4 agencies of state government; establishing and 1.5 modifying programs; transferring duties; abolishing 1.6 and creating state departments; making conforming 1.7 changes; requiring reports; transferring the remaining 1.8 duties of the commissioner of public service to the 1.9 commissioner of commerce; creating accounts; 1.10 establishing technology, research, and investment 1.11 programs; consolidating housing programs; providing 1.12 for administration of the workforce development 1.13 program; amending Minnesota Statutes 2000, sections 1.14 3C.12, subdivision 2; 13.679; 15.01; 15.06, 1.15 subdivision 1; 15A.0815, subdivision 2; 16B.335, 1.16 subdivision 4; 16B.56, subdivision 1; 16B.61, 1.17 subdivision 1; 16B.62, subdivision 1; 16B.63, by 1.18 adding a subdivision; 16B.76, subdivision 1; 17.86, 1.19 subdivision 3; 18.024, subdivision 1; 43A.08, 1.20 subdivision 1a; 45.012; 103F.325, subdivisions 2, 3; 1.21 115A.15, subdivision 5; 116L.02; 116L.03; 116L.04, by 1.22 adding a subdivision; 116L.05, by adding a 1.23 subdivision; 116L.16; 116O.06, subdivision 2; 123B.65, 1.24 subdivisions 1, 3, 5; 161.45, subdivision 1; 168.61, 1.25 subdivision 1; 169.073; 174.03, subdivision 7; 181.30; 1.26 181.945; 184.29; 184.30, subdivision 1; 184.38, 1.27 subdivisions 6, 8, 9, 10, 11, 17, 18, 20; 184.41; 1.28 216A.01; 216A.035; 216A.036; 216A.05, subdivision 1; 1.29 216A.07, subdivision 1; 216A.08; 216A.085, subdivision 1.30 3; 216B.02, subdivisions 1, 7, 8; 216B.16, 1.31 subdivisions 1, 2, 6b, 15; 216B.162, subdivisions 7, 1.32 11; 216B.1675, subdivision 9; 216B.241, subdivisions 1.33 1a, 1b, 2b; 216C.01, subdivisions 1, 2, 3; 216C.051, 1.34 subdivision 6; 216C.37, subdivision 1; 216C.40, 1.35 subdivision 4; 216C.41; 237.02; 237.075, subdivisions 1.36 2, 9; 237.082; 237.21; 237.30; 237.462, subdivision 6; 1.37 237.51, subdivisions 1, 5, 5a; 237.52, subdivisions 2, 1.38 4, 5; 237.54, subdivision 2; 237.55; 237.59, 1.39 subdivision 2; 237.768; 239.01; 239.10; 268.022, 1.40 subdivision 2; 268.085, by adding a subdivision; 1.41 268.665, by adding subdivisions; 268.666, by adding a 1.42 subdivision; 325E.11; 325E.115, subdivision 2; 1.43 326.243; 326.90, subdivision 1; 462.353, subdivision 1.44 4; 462.358, subdivision 2b; 462A.01; 462A.03, 1.45 subdivisions 1, 6, 10, by adding a subdivision; 1.46 462A.04, subdivision 6; 462A.05, subdivisions 14, 14a, 2.1 16, 22, 26; 462A.06, subdivisions 1, 4; 462A.07, 2.2 subdivisions 10, 12; 462A.073, subdivision 1; 462A.15; 2.3 462A.17, subdivision 3; 462A.20, subdivision 3; 2.4 462A.201, subdivisions 2, 6; 462A.204, subdivision 3; 2.5 462A.205, subdivisions 4, 4a; 462A.209; 462A.2091, 2.6 subdivision 3; 462A.2093, subdivision 1; 462A.2097; 2.7 462A.21, subdivisions 5, 10, by adding subdivisions; 2.8 462A.222, subdivision 1a; 462A.24; 462A.33, 2.9 subdivisions 1, 2, 3, 5, by adding a subdivision; 2.10 473.195, by adding a subdivision; 473.255, 2.11 subdivisions 1, 2; 484.50; Laws 2000, chapter 488, 2.12 article 8, section 2, subdivision 6; proposing coding 2.13 for new law in Minnesota Statutes, chapters 11A; 16B; 2.14 116J; 137; 268; 462; 462A; 473; repealing Minnesota 2.15 Statutes 2000, sections 184.22, subdivisions 2, 3, 4, 2.16 5; 184.37, subdivision 2; 216A.06; 237.69, subdivision 2.17 3; 462A.201, subdivision 4; 462A.207; 462A.209, 2.18 subdivision 4; 462A.21, subdivision 17; 462A.33, 2.19 subdivisions 4, 6, 7. 2.20 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.21 ARTICLE 1 2.22 OTHER AGENCY APPROPRIATIONS 2.23 Section 1. [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 2.24 The sums shown in the columns marked "APPROPRIATIONS" are 2.25 appropriated from the general fund, or another named fund, to 2.26 the agencies and for the purposes specified in this article, to 2.27 be available for the fiscal years indicated for each purpose. 2.28 The figures "2002" and "2003," where used in this article, mean 2.29 that the appropriations listed under them are available for the 2.30 year ending June 30, 2002, or June 30, 2003, respectively. The 2.31 term "first year" means the fiscal year ending June 30, 2002, 2.32 and "second year" means the fiscal year ending June 30, 2003. 2.33 SUMMARY BY FUND 2.34 2002 2003 TOTAL 2.35 General $ 65,622,000 $ 67,408,000 $133,030,000 2.36 Petroleum Tank 2.37 Cleanup 1,064,000 1,084,000 2,146,000 2.38 Workers' 2.39 Compensation 23,216,000 23,765,000 46,981,000 2.40 Workforce 2.41 Development Fund 793,000 808,000 1,601,000 2.42 TOTAL $ 90,695,000 $ 93,065,000 $183,760,000 2.43 APPROPRIATIONS 2.44 Available for the Year 2.45 Ending June 30 2.46 2002 2003 2.47 Sec. 2. COMMERCE 2.48 Subdivision 1. Total 3.1 Appropriation 26,897,000 27,557,000 3.2 Summary by Fund 3.3 General 25,234,000 25,858,000 3.4 Petroleum Tank 3.5 Cleanup 1,064,000 1,084,000 3.6 Workers' 3.7 Compensation 599,000 615,000 3.8 The amounts that may be spent from this 3.9 appropriation for each program are 3.10 specified in the following subdivisions. 3.11 Subd. 2. Financial Examinations 3.12 6,379,000 6,555,000 3.13 Subd. 3. Enforcement and Compliance 3.14 5,526,000 5,670,000 3.15 Summary by Fund 3.16 General 4,927,000 5,055,000 3.17 Workers' 3.18 Compensation 599,000 615,000 3.19 Of this amount, $138,000 the first year 3.20 and $161,000 the second year from the 3.21 general fund are for the cost of 3.22 implementing the Minnesota Money 3.23 Transmitters Act, if enacted. This 3.24 appropriation is available only if S.F. 3.25 No. 1485 or similar legislation is 3.26 enacted. 3.27 Subd. 4. Energy 3.28 3,809,000 3,884,000 3.29 $588,000 each year is for transfer to 3.30 the energy and conservation account 3.31 established in Minnesota Statutes, 3.32 section 216B.241, subdivision 2a, for 3.33 programs administered by the 3.34 commissioner of economic security to 3.35 improve the energy efficiency of 3.36 residential oil-fired heating plants in 3.37 low-income households and, when 3.38 necessary, to provide weatherization 3.39 services to the homes. 3.40 Subd. 5. Petroleum Tank Release 3.41 Cleanup 3.42 1,064,000 1,084,000 3.43 This appropriation is from the 3.44 petroleum tank release cleanup fund. 3.45 Subd. 6. Administrative Services 3.46 5,852,000 6,003,000 3.47 Subd. 7. Telecommunications 3.48 986,000 1,008,000 4.1 Subd. 8. Weights and Measures 4.2 3,281,000 3,353,000 4.3 Sec. 3. BOARD OF ACCOUNTANCY 683,000 721,000 4.4 Sec. 4. BOARD OF ARCHITECTURE, 4.5 ENGINEERING, LAND SURVEYING, 4.6 LANDSCAPE ARCHITECTURE, AND 4.7 INTERIOR DESIGN 951,000 981,000 4.9 Sec. 5. BOARD OF BARBER 4.10 EXAMINERS 153,000 159,000 4.11 Sec. 6. LABOR AND INDUSTRY 4.12 Subdivision 1. Total 4.13 Appropriation 25,408,000 26,001,000 4.14 Summary by Fund 4.15 General 3,567,000 3,661,000 4.16 Workers' 4.17 Compensation 21,048,000 21,532,000 4.18 Workforce 4.19 Development Fund 793,000 808,000 4.20 The amounts that may be spent from this 4.21 appropriation for each program are 4.22 specified in the following subdivisions. 4.23 Subd. 2. Workers' Compensation 4.24 10,912,000 11,178,000 4.25 This appropriation is from the workers' 4.26 compensation fund. 4.27 $125,000 the first year and $125,000 4.28 the second year are for grants to the 4.29 Vinland Center for rehabilitation 4.30 service. 4.31 Subd. 3. Workplace Services 4.32 7,468,000 7,643,000 4.33 Summary by Fund 4.34 General 2,493,000 2,555,000 4.35 Workers' 4.36 Compensation 4,182,000 4,280,000 4.37 Workforce 4.38 Development Fund 793,000 808,000 4.39 $204,000 the first year and $204,000 4.40 the second year are for labor education 4.41 and advancement program grants. The 4.42 commissioner must report to the 4.43 legislature by February 15, 2003, on 4.44 the success of the program in placing 4.45 and retaining participants. This 4.46 appropriation is from the workforce 4.47 development fund. 4.48 Subd. 4. General Support 5.1 7,028,000 7,180,000 5.2 Summary by Fund 5.3 General 1,074,000 1,106,000 5.4 Workers' 5.5 Compensation 5,954,000 6,074,000 5.6 Sec. 7. BUREAU OF MEDIATION SERVICES 5.7 Subdivision 1. Total 5.8 Appropriation 2,259,000 2,307,000 5.9 The amounts that may be spent from this 5.10 appropriation for each program are 5.11 specified in the following subdivisions. 5.12 Subd. 2. Mediation Services 5.13 1,957,000 2,005,000 5.14 Subd. 3. Labor Management Cooperation Grants 5.15 302,000 302,000 5.16 $302,000 each year is for grants to 5.17 area labor-management committees. Any 5.18 unencumbered balance remaining at the 5.19 end of the first year does not cancel 5.20 but is available for the second year. 5.21 Sec. 8. PUBLIC UTILITIES 5.22 COMMISSION 3,994,000 4,163,000 5.23 Sec. 9. MINNESOTA HISTORICAL 5.24 SOCIETY 5.25 Subdivision 1. Total 5.26 Appropriation 27,229,000 27,959,000 5.27 The amounts that may be spent from this 5.28 appropriation for each program are 5.29 specified in the following subdivisions. 5.30 Subd. 2. Education and 5.31 Outreach 15,135,000 15,762,000 5.32 $200,000 the first year and $300,000 5.33 the second year are for operating 5.34 expenses at the Northwest Fur Company 5.35 Post. 5.36 $300,000 the first year and $500,000 5.37 the second year are for operating 5.38 expenses at the Mill City Museum, St. 5.39 Anthony Falls. 5.40 Subd. 3. Preservation and Access 5.41 11,568,000 11,819,000 5.42 Subd. 4. Fiscal Agent 5.43 General 526,000 378,000 5.44 (a) Sibley House Association 5.45 88,000 88,000 5.46 This appropriation is available for 6.1 operation and maintenance of the Sibley 6.2 House and related buildings on the Old 6.3 Mendota state historic site operated by 6.4 the Sibley House Association. 6.5 (b) Minnesota International Center 6.6 50,000 50,000 6.7 (c) Minnesota Air National 6.8 Guard Museum 6.9 19,000 -0- 6.10 (d) Institute for Learning and 6.11 Teaching - Project 120 6.12 110,000 110,000 6.13 (e) Minnesota Military Museum 6.14 59,000 30,000 6.15 (f) Farmamerica 6.16 100,000 100,000 6.17 Notwithstanding any other law, this 6.18 appropriation may be used for 6.19 operations. 6.20 (g) Little Elk Heritage Preserve 6.21 100,000 -0- 6.22 This appropriation is to assist the 6.23 Institute for Minnesota Archaeology in 6.24 site research and preservation, 6.25 economic and infrastructure 6.26 development, public outreach, and 6.27 education programming. The 6.28 appropriated funds may be matched by 6.29 nonstate sources. 6.30 (h) Balances Forward 6.31 Any unencumbered balance remaining in 6.32 this subdivision the first year does 6.33 not cancel but is available for the 6.34 second year of the biennium. 6.35 Sec. 10. COUNCIL ON BLACK 6.36 MINNESOTANS 339,000 349,000 6.37 $25,000 each year is for expenses 6.38 associated with the Dr. Martin Luther 6.39 King day activities. 6.40 Sec. 11. COUNCIL ON 6.41 CHICANO-LATINO AFFAIRS 334,000 344,000 6.42 Sec. 12. COUNCIL ON 6.43 ASIAN-PACIFIC MINNESOTANS 295,000 304,000 6.44 Sec. 13. INDIAN AFFAIRS 6.45 COUNCIL 584,000 602,000 6.46 Sec. 14. WORKERS' COMPENSATION 6.47 COURT OF APPEALS 1,569,000 1,618,000 6.48 This appropriation is from the workers' 7.1 compensation fund. 7.2 Sec. 15. Minnesota Statutes 2000, section 184.29, is 7.3 amended to read: 7.4 184.29 [FEES.] 7.5 Before a license is granted to an applicant, the applicant 7.6 shall pay the following fee: 7.7 (a) An employment agent shall pay an annual license fee of 7.8 $250 for each license. 7.9 (b)A search firm exempt under section 184.22, subdivision7.102, shall pay an annual registration fee of $250, accompanying7.11the annual statement to the commissioner.7.12(c)An applicant for a counselor's license shall pay a 7.13 license fee of $20 and a renewal fee of $10. 7.14(d)(c) An applicant for an employment agency manager's 7.15 license shall pay a license fee of $20 and a renewal fee of $10. 7.16 Sec. 16. Minnesota Statutes 2000, section 184.30, 7.17 subdivision 1, is amended to read: 7.18 Subdivision 1. Every application for an employment 7.19 agency's license, and every annual report required to be filed7.20under section 184.22, subdivision 2,must be accompanied by a 7.21 surety bond approved by the department in the amount of $10,000 7.22 for each location; except, that for a search firm, the bond is7.23required only for the first five years of registration. For a7.24search firm that was previously licensed as an employment7.25agency, the bond is required only until the firm has met the7.26bond requirement as an agency or as a search firm for a total of7.27at least five years. The bond must be filed in the office of 7.28 the secretary of state and conditioned that the employment 7.29 agency and each member, shareholder, director, or officer of a 7.30 firm, partnership, corporation, or association operating as an 7.31 employment agency will comply with the provisions of sections 7.32 184.21 to 184.40 and any contract made by the employment agent 7.33 in the conduct of the business. A person damaged by a breach of 7.34 any condition of the bond may bring an action on the bond, and 7.35 successive actions may be maintained on it. 7.36 Sec. 17. Minnesota Statutes 2000, section 184.38, 8.1 subdivision 6, is amended to read: 8.2 Subd. 6. (a) No employment agentor search firmshall send 8.3 out any applicant for employment without having obtained a job 8.4 order, and if no employment of the kind applied for existed at 8.5 the place to which the applicant was directed, the employment 8.6 agentor search firmshall refund to the applicant, within 48 8.7 hours of demand, any sums paid by the applicant for 8.8 transportation in going to and returning from the place. 8.9 (b) Nothing in this chapter shall be construed to prevent 8.10 an employment agentor search firmfrom directing an applicant 8.11 to an employer where the employer has previously requested 8.12 interviews with applicants of certain types and qualifications, 8.13 even though no actual vacancy existed in the employer's 8.14 organization at the time the applicant was so directed; nor 8.15 shall it prevent the employment agentor search firmfrom 8.16 attempting to sell the services of an applicant to the employer 8.17 even though no order has been placed with the employment agent 8.18or search firm; provided, that prior to scheduling an interview 8.19 with an employer, when no opening currently exists with that 8.20 employer, the applicant is clearly informed that no opening 8.21 exists at that time. 8.22 Sec. 18. Minnesota Statutes 2000, section 184.38, 8.23 subdivision 8, is amended to read: 8.24 Subd. 8. No employment agentor search firmshall 8.25 knowingly cause to be printed or published a false or fraudulent 8.26 notice or advertisement for help or for obtaining work or 8.27 employment. For purposes of this subdivision the phrase "false 8.28 or fraudulent notice or advertisement" shall include the 8.29 following: 8.30 (a) The advertisement of any job for which there is no bona 8.31 fide oral or written job order and completed job order form in 8.32 existence at the time the advertisement is placed; 8.33 (b) The inclusion in any advertisement of any information 8.34 concerning the identity, availability, features, or requirements 8.35 of any advertised job when such information is not substantiated 8.36 by, and included in, the supporting job order form; 9.1 (c) The advertisement of any job opening of the type 9.2 described in subdivision 6, clause (b); 9.3 (d) The advertisement of any job without the inclusion in 9.4 the advertisement of the "job order number" required in 9.5 subdivision 18; 9.6 (e) If an applicant appears at any agencyor search firmin 9.7 response to the advertisement of a particular job, the failure 9.8 to attempt placement of the applicant in the advertised job; 9.9 provided however, that the agencyor search firmmay refuse to 9.10 attempt such placement if the reason(s) for the refusal are 9.11 clearly and truthfully disclosed to the applicant either orally 9.12 or in writing. 9.13 Sec. 19. Minnesota Statutes 2000, section 184.38, 9.14 subdivision 9, is amended to read: 9.15 Subd. 9. No employment agentor search firmshall place or 9.16 assist in placing any person in unlawful employment. 9.17 Sec. 20. Minnesota Statutes 2000, section 184.38, 9.18 subdivision 10, is amended to read: 9.19 Subd. 10. No employment agentor search firmshall fail to 9.20 state in any advertisement, proposal, or contract for 9.21 employment, that there is a strike or lockout at the place of 9.22 proposed employment, if the agentor firmhas knowledge that 9.23 such condition exists. 9.24 Sec. 21. Minnesota Statutes 2000, section 184.38, 9.25 subdivision 11, is amended to read: 9.26 Subd. 11. No employment agency or its employee may split, 9.27 divide, or share, directly or indirectly, any fee, charge, or 9.28 compensation received from any employer or applicant with any 9.29 employer, or person in any way connected with the employer's 9.30 business.No search firm or its employee may split, divide, or9.31share, directly or indirectly, any fee, charge, or compensation9.32received from any employer with any person connected in any way9.33with the employer's business.A violation of this subdivision 9.34 shall be punished by a fine of not less than $100, and not more 9.35 than $3,000, or on failure to pay the fine by imprisonment for a 9.36 period not to exceed one year, or both, at the discretion of the 10.1 court. 10.2 Sec. 22. Minnesota Statutes 2000, section 184.38, 10.3 subdivision 17, is amended to read: 10.4 Subd. 17. Except for applicant information given in the 10.5 course of normal agencyor firmoperations, no employment agent 10.6or search firmshall voluntarily sell, give, or otherwise 10.7 transfer any files, records, or other information relating to 10.8 its employment agencyor search firmapplicants and employers to 10.9 any person other than a licensed employment agentor registered10.10search firmor a person who agrees to obtain an employment 10.11 agency licenseor register as a search firm. Every employment 10.12 agentor search firmwho ceases to engage in the business of or 10.13 act as an employment agentor search firmshall notify the 10.14 department of such fact within 30 days thereof, and shall advise 10.15 the department as to the disposition of all files and other 10.16 records relating to its employment agencyor search firm10.17 business. 10.18 Sec. 23. Minnesota Statutes 2000, section 184.38, 10.19 subdivision 18, is amended to read: 10.20 Subd. 18. Every job order communicated to an agencyor10.21search firmshall be recorded by the agencyor search firmon a 10.22 job order form which form shall contain specific information as 10.23 prescribed by the department. A job order form shall be filled 10.24 out for each job order prior to any attempt to advertise the job 10.25 opening or to place persons in said job. Such forms shall each 10.26 be assigned a separate number and shall be maintained by the 10.27 agencyor search firmfor a period of one year. 10.28 Sec. 24. Minnesota Statutes 2000, section 184.38, 10.29 subdivision 20, is amended to read: 10.30 Subd. 20. No employment agentor search firmshall 10.31 knowingly misrepresent to any employer the educational 10.32 background, skills, or qualifications of any job candidate; or 10.33 knowingly misrepresent to a job candidate the responsibilities, 10.34 salary, or other features of any position of employment. 10.35 Sec. 25. Minnesota Statutes 2000, section 184.41, is 10.36 amended to read: 11.1 184.41 [VIOLATIONS.] 11.2 Any person who engages in the business of or acts as an 11.3 employment agent or counselor without first procuring a license 11.4 as required by section 184.22, and any employment agent, 11.5 manager, or counselor who violates the provisions of this 11.6 chapter, and any exempt firm which violates any of the11.7applicable provisions of this chapter,is guilty of a 11.8 misdemeanor. 11.9 In addition to the penalties for commission of a 11.10 misdemeanor, the department may bring an action for an 11.11 injunction against any person who engages in the business of or 11.12 acts as an employment agent or counselor without first procuring 11.13 the license required under section 184.22,or who engages in the11.14business of or acts as a search firm without first filing the11.15registration required under section 184.22, subdivision 3,and 11.16 against any employment agent, manager, or counselor, or search11.17firmwho violates the applicable provisions of this chapter. If 11.18 an agency, manager, or counselor, or search firmis found guilty 11.19 of a misdemeanor in any action relevant to the operation of an 11.20 agency,or search firmthe department may suspend or revoke the 11.21 licenseor registrationof the agency, manager, or counselor, or11.22search firm. 11.23 Sec. 26. Minnesota Statutes 2000, section 216C.41, is 11.24 amended to read: 11.25 216C.41 [RENEWABLE ENERGY PRODUCTION INCENTIVE.] 11.26 Subdivision 1. [DEFINITIONS.] (a) The definitions in this 11.27 subdivision apply to this section. 11.28 (b) "Qualified hydroelectric facility" means a 11.29 hydroelectric generating facility in this state that: 11.30 (1) is located at the site of a dam, if the dam was in 11.31 existence as of March 31, 1994; and 11.32 (2) begins generating electricity after July 1, 1994. 11.33 (c) "Qualified wind energy conversion facility" means a 11.34 wind energy conversion system that: 11.35 (1) produces two megawatts or less of electricity as 11.36 measured by nameplate rating and begins generating electricity 12.1 afterJune 30, 1997December 31, 1996, and before July 1, 1999; 12.2 (2) begins generating electricity after June 30, 1999, 12.3 produces two megawatts or less of electricity as measured by 12.4 nameplate rating, and is: 12.5 (i) located within one county and owned by a natural person 12.6 who owns the land where the facility is sited; 12.7 (ii) owned by a Minnesota small business as defined in 12.8 section 645.445; 12.9 (iii) owned by a nonprofit organization; or 12.10 (iv) owned by a tribal council if the facility is located 12.11 within the boundaries of the reservation; or 12.12 (3) begins generating electricity after June 30, 1999, 12.13 produces seven megawatts or less of electricity as measured by 12.14 nameplate rating, and: 12.15 (i) is owned by a cooperative organized under chapter 308A; 12.16 and 12.17 (ii) all shares and membership in the cooperative are held 12.18 by natural persons or estates, at least 51 percent of whom 12.19 reside in a county or contiguous to a county where the wind 12.20 energy production facilities of the cooperative are located. 12.21 (d) "Qualified on-farm biogas recovery facility" means an 12.22 anaerobic digester system that: 12.23 (1) is located at the site of an agricultural operation; 12.24 (2) is owned by a natural person who, or an entity that, is 12.25 qualified to own or operate a farm under section 500.24, that 12.26 owns or rents the land where the facility is located; and 12.27 (3) begins generating electricity after July 1, 2001. 12.28 (e) "Anaerobic digester system" means a system of 12.29 components that processes animal waste based on the absence of 12.30 oxygen and produces gas used to generate electricity. 12.31 Subd. 2. [INCENTIVE PAYMENT; APPROPRIATION.] (a) Incentive 12.32 paymentsshallmust be made according to this section to (1) the 12.33 owner of a qualified on-farm biogas recovery facility, (2) the 12.34 owner or operator of a qualified hydropower facility or 12.35 qualified wind energy conversion facility for electric energy 12.36 generated and sold by the facility, or, for(3) a publicly owned 13.1 hydropower facility,for electric energy that is generated by 13.2 the facility and used by the owner of the facility outside the 13.3 facility. 13.4 (b) Payment may only be made upon receipt by the 13.5 commissioner of finance of an incentive payment application that 13.6 establishes that the applicant is eligible to receive an 13.7 incentive payment and that satisfies other requirements the 13.8 commissioner deems necessary. The applicationshallmust be in 13.9 a form and submitted at a time the commissioner establishes. 13.10 (c) There is annually appropriated from the general fund 13.11 sums sufficient to make the payments required under this section. 13.12 Subd. 3. [ELIGIBILITY WINDOW.] Payments may be made under 13.13 this section only for electricity generated: 13.14 (1) from a qualified hydroelectric facility that is 13.15 operational and generating electricity before December 31, 2001; 13.16or13.17 (2) from a qualified wind energy conversion facility that 13.18 is operational and generating electricity before January 1, 13.19 2005; or 13.20 (3) from a qualified on-farm biogas recovery facility from 13.21 July 1, 2001, through December 31, 2015. 13.22 Subd. 4. [PAYMENT PERIOD.] A facility may receive payments 13.23 under this section for a ten-year period. No payment under this 13.24 section may be made for electricity generated: 13.25 (1) by a qualified hydroelectric facility after December 13.26 31, 2010;or13.27 (2) by a qualified wind energy conversion facility after 13.28 December 31, 2015; or 13.29 (3) by a qualified on-farm biogas recovery facility after 13.30 December 31, 2015. 13.31 The payment period begins and runs consecutively from the 13.32 first year in which electricity generated from the facility is 13.33 eligible for incentive payment. 13.34 Subd. 5. [AMOUNT OF PAYMENT.] An incentive payment is 13.35 based on the number of kilowatt hours of electricity generated. 13.36 The amount of the payment is 1.5 cents per kilowatt hour. For 14.1 electricity generated by qualified wind energy conversion 14.2 facilities, the incentive payment under this section is limited 14.3 to no more than 100 megawatts of nameplate capacity. During any 14.4 period in which qualifying claims for incentive payments exceed 14.5 100 megawatts of nameplate capacity, the payments must be made 14.6 to producers in the order in which the production capacity was 14.7 brought into production. 14.8 Sec. 27. [EQUAL PAY COMMISSION.] 14.9 (a) Within 90 days after the effective date of this 14.10 section, the commissioner of labor and industry shall appoint a 14.11 commission of 11 members, to be known as the "equal pay 14.12 commission." Membership on the commission shall be as follows: 14.13 (1) two representatives of business in the state, who are 14.14 appointed from among individuals nominated by business 14.15 organizations and business trade associations; 14.16 (2) two representatives of labor organizations, who have 14.17 been nominated by state labor federations. For purposes of this 14.18 clause, a state labor federation is an organization that: (i) 14.19 is chartered by a federation of national or international 14.20 unions; (ii) admits to membership local unions; and (iii) exists 14.21 primarily to carry on educational, legislative, and coordinating 14.22 activities; 14.23 (3) two representatives of organizations whose objectives 14.24 include the elimination of pay disparities between men and women 14.25 or minorities and nonminorities, and who have undertaken 14.26 advocacy, educational, or legislative initiatives in pursuit of 14.27 that objective; 14.28 (4) three individuals drawn from higher education or 14.29 research institutions who have experience and expertise in the 14.30 collection and analysis of data concerning such pay disparities 14.31 and whose research has already been used in efforts to promote 14.32 the elimination of those disparities; and 14.33 (5) two members who are members of a racial or ethnic 14.34 minority, one of whom shall be an immigrant to this country who 14.35 immigrated to this country within three years prior to the 14.36 appointment. 15.1 (b) The commission shall make a full and complete study of: 15.2 (1) the extent of wage disparities, both in the public and 15.3 private sector, between men and women, and between minorities 15.4 and nonminorities; 15.5 (2) those factors that cause, or tend to cause, such 15.6 disparities, including segregation between women and men, and 15.7 between minorities and nonminorities across and within 15.8 occupations; payment of lower wages for work in female-dominated 15.9 occupations; child-rearing responsibilities; and education and 15.10 training; 15.11 (3) the consequences of such disparities on the economy and 15.12 families affected; and 15.13 (4) actions, including proposed legislation, that are 15.14 likely to lead to the elimination and prevention of such 15.15 disparities. 15.16 (c) The commission shall, no later than 12 months after its 15.17 members are appointed, make its report to the commissioner of 15.18 labor and industry, who shall transmit the report to the 15.19 governor. 15.20 (d) The commission's report shall include the results of 15.21 its study as well as recommendations, legislative and otherwise, 15.22 for the elimination and prevention of disparities in wages 15.23 between men and women, and between minorities and nonminorities. 15.24 (e) Compensation and removal of members shall be governed 15.25 by Minnesota Statutes, section 15.059. 15.26 Sec. 28. [REPEALER.] 15.27 Minnesota Statutes 2000, sections 184.22, subdivisions 2, 15.28 3, 4, and 5; and 184.37, subdivision 2, are repealed. 15.29 ARTICLE 2 15.30 PUBLIC SERVICE CONSOLIDATION 15.31 Section 1. [CONSOLIDATION OF STATE REGULATION OF 15.32 COMMERCE.] 15.33 In order to make state government more efficient and 15.34 effective and to accomplish more efficient and effective 15.35 regulation of commerce in Minnesota, all of the powers, rights, 15.36 responsibilities, and duties that remain in the department of 16.1 public service after reorganization order No. 181 are 16.2 transferred to the department of commerce under Minnesota 16.3 Statutes, section 15.039. This transfer is governed in all 16.4 respects by Minnesota Statutes, section 15.039. The department 16.5 of public service is abolished. 16.6 Sec. 2. Minnesota Statutes 2000, section 3C.12, 16.7 subdivision 2, is amended to read: 16.8 Subd. 2. [FREE DISTRIBUTION.] The revisor shall distribute 16.9 without charge copies of each edition of Minnesota Statutes, 16.10 supplements to Minnesota Statutes, and Laws of Minnesota to the 16.11 persons or bodies listed in this subdivision. Before 16.12 distributing the copies, the revisor shall inform these persons 16.13 or bodies of the cost of the publication and the availability of 16.14 statutes and session laws on the Internet, and shall ask whether 16.15 their work requires the full number of copies authorized by this 16.16 subdivision. Unless a smaller number is needed, the revisor 16.17 shall distribute: 16.18 (a) 30 copies to the supreme court; 16.19 (b) 30 copies to the court of appeals; 16.20 (c) one copy to each judge of a district court; 16.21 (d) one copy to the court administrator of each district 16.22 court for use in each courtroom of the district court; 16.23 (e) one copy to each judge, district attorney, clerk of 16.24 court of the United States, and deputy clerk of each division of 16.25 the United States district court in Minnesota; 16.26 (f) 100 copies to the office of the attorney general; 16.27 (g) ten copies each to the governor's office, the 16.28 departments of agriculture,commerce,corrections, children, 16.29 families, and learning, finance, health, transportation, labor 16.30 and industry, economic security, natural resources, public 16.31 safety,public service,human services, revenue, and the 16.32 pollution control agency; 16.33 (h) two copies each to the lieutenant governor and the 16.34 state treasurer; 16.35 (i) 20 copies each to thedepartmentdepartments of 16.36 administration and commerce, state auditor, and legislative 17.1 auditor; 17.2 (j) one copy each to other state departments, agencies, 17.3 boards, and commissions not specifically named in this 17.4 subdivision; 17.5 (k) one copy to each member of the legislature; 17.6 (l) 150 copies for the use of the senate and 200 copies for 17.7 the use of the house of representatives; 17.8 (m) 50 copies to the revisor of statutes from which the 17.9 revisor shall send the appropriate number to the Library of 17.10 Congress for copyright and depository purposes; 17.11 (n) four copies to the secretary of the senate; 17.12 (o) four copies to the chief clerk of the house of 17.13 representatives; 17.14 (p) 100 copies to the state law library; 17.15 (q) 100 copies to the law school of the University of 17.16 Minnesota; 17.17 (r) five copies each to the Minnesota historical society 17.18 and the secretary of state; 17.19 (s) one copy each to the public library of the largest 17.20 municipality of each county if the library is not otherwise 17.21 eligible to receive a free copy under this section or section 17.22 15.18; and 17.23 (t) one copy to each county library maintained pursuant to 17.24 chapter 134, except in counties containing cities of the first 17.25 class. If a county has not established a county library 17.26 pursuant to chapter 134, the copy shall be provided to any 17.27 public library in the county. 17.28 Sec. 3. Minnesota Statutes 2000, section 13.679, is 17.29 amended to read: 17.30 13.679 [DEPARTMENT OF PUBLIC SERVICE DATA.] 17.31 Subdivision 1. [TENANT.] Data collected by thedepartment17.32of public servicecommissioner of commerce that reveals the 17.33 identity of a tenant who makes a complaint regarding energy 17.34 efficiency standards for rental housing are private data on 17.35 individuals. 17.36 Subd. 2. [UTILITY OR TELEPHONE COMPANY EMPLOYEE OR 18.1 CUSTOMER.] (a) The following are private data on individuals: 18.2 data collected by thedepartment of public servicecommissioner 18.3 of commerce or the public utilities commission, including the 18.4 names or any other data that would reveal the identity of either 18.5 an employee or customer of a telephone company or public utility 18.6 who files a complaint or provides information regarding a 18.7 violation or suspected violation by the telephone company or 18.8 public utility of any federal or state law or rule; except this 18.9 data may be released as needed to law enforcement authorities. 18.10 (b) The following are private data on individuals: data 18.11 collected by the commission or thedepartment of public service18.12 commissioner of commerce on individual public utility or 18.13 telephone company customers or prospective customers, including 18.14 copies of tax forms, needed to administer federal or state 18.15 programs that provide relief from telephone company bills, 18.16 public utility bills, or cold weather disconnection. The 18.17 determination of eligibility of the customers or prospective 18.18 customers may be released to public utilities or telephone 18.19 companies to administer the programs. 18.20 Sec. 4. Minnesota Statutes 2000, section 15.01, is amended 18.21 to read: 18.22 15.01 [DEPARTMENTS OF THE STATE.] 18.23 The following agencies are designated as the departments of 18.24 the state government: the department of administration; the 18.25 department of agriculture; the department of commerce; the 18.26 department of corrections; the department of children, families, 18.27 and learning; the department of economic security; the 18.28 department of trade and economic development; the department of 18.29 finance; the department of health; the department of human 18.30 rights; the department of labor and industry; the department of 18.31 military affairs; the department of natural resources; the 18.32 department of employee relations; the department of public 18.33 safety;the department of public service;the department of 18.34 human services; the department of revenue; the department of 18.35 transportation; the department of veterans affairs; and their 18.36 successor departments. 19.1 Sec. 5. Minnesota Statutes 2000, section 15.06, 19.2 subdivision 1, is amended to read: 19.3 Subdivision 1. [APPLICABILITY.] This section applies to 19.4 the following departments or agencies: the departments of 19.5 administration, agriculture, commerce, corrections, economic 19.6 security, children, families, and learning, employee relations, 19.7 trade and economic development, finance, health, human rights, 19.8 labor and industry, natural resources, public safety,public19.9service,human services, revenue, transportation, and veterans 19.10 affairs; the housing finance and pollution control agencies; the 19.11 office of commissioner of iron range resources and 19.12 rehabilitation; the bureau of mediation services; and their 19.13 successor departments and agencies. The heads of the foregoing 19.14 departments or agencies are "commissioners." 19.15 Sec. 6. Minnesota Statutes 2000, section 15A.0815, 19.16 subdivision 2, is amended to read: 19.17 Subd. 2. [GROUP I SALARY LIMITS.] The salaries for 19.18 positions in this subdivision may not exceed 95 percent of the 19.19 salary of the governor: 19.20 Commissioner of administration; 19.21 Commissioner of agriculture; 19.22 Commissioner of children, families, and learning; 19.23 Commissioner of commerce; 19.24 Commissioner of corrections; 19.25 Commissioner of economic security; 19.26 Commissioner of employee relations; 19.27 Commissioner of finance; 19.28 Commissioner of health; 19.29 Executive director, higher education services office; 19.30 Commissioner, housing finance agency; 19.31 Commissioner of human rights; 19.32 Commissioner of human services; 19.33 Executive director, state board of investment; 19.34 Commissioner of labor and industry; 19.35 Commissioner of natural resources; 19.36 Director of office of strategic and long-range planning; 20.1 Commissioner, pollution control agency; 20.2 Commissioner of public safety; 20.3Commissioner, department of public service;20.4 Commissioner of revenue; 20.5 Commissioner of trade and economic development; 20.6 Commissioner of transportation; and 20.7 Commissioner of veterans affairs. 20.8 Sec. 7. Minnesota Statutes 2000, section 16B.335, 20.9 subdivision 4, is amended to read: 20.10 Subd. 4. [ENERGY CONSERVATION.] A recipient to whom a 20.11 direct appropriation is made for a capital improvement project 20.12 shall ensure that the project complies with the applicable 20.13 energy conservation standards contained in law, including 20.14 sections 216C.19 to 216C.20, and rules adopted thereunder. The 20.15 recipient mayuse the energy planning and intervention and20.16energy technologies units of the department of public service to20.17 obtain information and technical assistance from the state 20.18 energy office in the department of commerce on energy 20.19 conservation and alternative energy development relating to the 20.20 planning and construction of the capital improvement project. 20.21 Sec. 8. Minnesota Statutes 2000, section 16B.56, 20.22 subdivision 1, is amended to read: 20.23 Subdivision 1. [EMPLOYEE TRANSPORTATION PROGRAM.] (a) 20.24 [ESTABLISHMENT.] To conserve energy and alleviate traffic 20.25 congestion around state offices, the commissioner shall, in 20.26 cooperation withthe commissioner of public service,the 20.27 commissioner of transportation, the state energy office in the 20.28 department of commerce, and interested nonprofit agencies, 20.29 establish and operate an employee transportation program using 20.30 commuter vans with a capacity of not less than seven nor more 20.31 than 16 passengers. Commuter vans may be used by state 20.32 employees and others to travel between their homes and their 20.33 work locations. However, only state employee drivers may use 20.34 the van for personal purposes after working hours, not including 20.35 partisan political activity. The commissioner shall acquire or 20.36 lease commuter vans, or otherwise contract for the provision of 21.1 commuter vans, and shall make the vans available for the use of 21.2 state employees and others in accordance with standards and 21.3 procedures adopted by the commissioner. The commissioner shall 21.4 promote the maximum participation of state employees and others 21.5 in the use of the vans. 21.6 (b) [ADMINISTRATIVE POLICIES.] The commissioner shall adopt 21.7 standards and procedures under this section without regard to 21.8 chapter 14. The commissioner shall provide for the recovery by 21.9 the state of vehicle acquisition, lease, operation, and 21.10 insurance costs through efficient and convenient assignment of 21.11 vans, and for the billing of costs and collection of fees. A 21.12 state employee using a van for personal use shall pay, pursuant 21.13 to the standards and procedures adopted by the commissioner, for 21.14 operating and routine maintenance costs incurred as a result of 21.15 the personal use. Fees collected under this subdivision shall 21.16 be deposited in the accounts from which the costs of operating, 21.17 maintaining, and leasing or amortization for the specific 21.18 vehicle are paid. 21.19 Sec. 9. Minnesota Statutes 2000, section 16B.76, 21.20 subdivision 1, is amended to read: 21.21 Subdivision 1. [MEMBERSHIP.] (a) The construction codes 21.22 advisory council consists of the following members: 21.23 (1) the commissioner of administration or the 21.24 commissioner's designee representing the department's building 21.25 codes and standards division; 21.26 (2) the commissioner of health or the commissioner's 21.27 designee representing an environmental health section of the 21.28 department; 21.29 (3) the commissioner of public safety or the commissioner's 21.30 designee representing the department's state fire marshal 21.31 division; 21.32 (4) the commissioner ofpublic servicecommerce or the 21.33 commissioner's designee representing the department'senergy21.34regulation and resource management divisionstate energy office; 21.35 and 21.36 (5) one member representing each of the following 22.1 occupations or entities, appointed by the commissioner of 22.2 administration: 22.3 (i) a certified building official; 22.4 (ii) a fire service representative; 22.5 (iii) a licensed architect; 22.6 (iv) a licensed engineer; 22.7 (v) a building owners and managers representative; 22.8 (vi) a licensed residential building contractor; 22.9 (vii) a commercial building contractor; 22.10 (viii) a heating and ventilation contractor; 22.11 (ix) a plumbing contractor; 22.12 (x) a representative of a construction and building trades 22.13 union; and 22.14 (xi) a local unit of government representative. 22.15 (b) For members who are not state officials or employees, 22.16 terms, compensation, removal, and the filling of vacancies are 22.17 governed by section 15.059. The council shall select one of its 22.18 members to serve as chair. 22.19 (c) The council expires June 30, 2001. 22.20 Sec. 10. Minnesota Statutes 2000, section 17.86, 22.21 subdivision 3, is amended to read: 22.22 Subd. 3. [INFORMATION.] The University of Minnesota 22.23 extension service, in cooperation with the commissioners of 22.24 agriculture, children, families, and learning, natural 22.25 resources, andpublic servicecommerce, shall serve as the 22.26 principal agency for publishing and circulating information 22.27 derived from research under subdivision 2 among the various 22.28 municipalities and individual property owners in the state. 22.29 Where practical, the extension service and the state energy 22.30 office in the department ofpublic servicecommerce shall secure 22.31 the advice and assistance of various energy utilities interested 22.32 and concerned with conservation. The commissioner of 22.33 agriculture shall establish an information source for requests 22.34 for nursery stock, to match needs of municipalities with stocks 22.35 of trees available for planting from private and governmental 22.36 sources. 23.1 Sec. 11. Minnesota Statutes 2000, section 18.024, 23.2 subdivision 1, is amended to read: 23.3 Subdivision 1. [WOOD UTILIZATION.] The departments of 23.4 agriculture and natural resources, after consultation with the 23.5 Minnesota shade tree advisory committee and thecommissioner of23.6public servicestate energy office in the department of 23.7 commerce, shall investigate, evaluate, and make recommendations 23.8 to the legislature concerning the potential uses of wood from 23.9 community trees removed due to disease or other disorders. 23.10 These recommendations shall include maximum resource recovery 23.11 through recycling, use as an alternative energy source, or use 23.12 in construction or the manufacture of new products. Wood 23.13 utilization or disposal systems as defined in section 18.023 23.14 must be included to ensure maximum utilization of diseased shade 23.15 trees with designs and procedures to ensure public safety and to 23.16 assure compliance with approved disease control programs. 23.17 Sec. 12. Minnesota Statutes 2000, section 43A.08, 23.18 subdivision 1a, is amended to read: 23.19 Subd. 1a. [ADDITIONAL UNCLASSIFIED POSITIONS.] Appointing 23.20 authorities for the following agencies may designate additional 23.21 unclassified positions according to this subdivision: the 23.22 departments of administration; agriculture; commerce; 23.23 corrections; economic security; children, families, and 23.24 learning; employee relations; trade and economic development; 23.25 finance; health; human rights; labor and industry; natural 23.26 resources; public safety;public service;human services; 23.27 revenue; transportation; and veterans affairs; the housing 23.28 finance and pollution control agencies; the state lottery; the 23.29 state board of investment; the office of administrative 23.30 hearings; the office of environmental assistance; the offices of 23.31 the attorney general, secretary of state, state auditor, and 23.32 state treasurer; the Minnesota state colleges and universities; 23.33 the higher education services office; the Perpich center for 23.34 arts education; and the Minnesota zoological board. 23.35 A position designated by an appointing authority according 23.36 to this subdivision must meet the following standards and 24.1 criteria: 24.2 (1) the designation of the position would not be contrary 24.3 to other law relating specifically to that agency; 24.4 (2) the person occupying the position would report directly 24.5 to the agency head or deputy agency head and would be designated 24.6 as part of the agency head's management team; 24.7 (3) the duties of the position would involve significant 24.8 discretion and substantial involvement in the development, 24.9 interpretation, and implementation of agency policy; 24.10 (4) the duties of the position would not require primarily 24.11 personnel, accounting, or other technical expertise where 24.12 continuity in the position would be important; 24.13 (5) there would be a need for the person occupying the 24.14 position to be accountable to, loyal to, and compatible with, 24.15 the governor and the agency head, the employing statutory board 24.16 or commission, or the employing constitutional officer; 24.17 (6) the position would be at the level of division or 24.18 bureau director or assistant to the agency head; and 24.19 (7) the commissioner has approved the designation as being 24.20 consistent with the standards and criteria in this subdivision. 24.21 Sec. 13. Minnesota Statutes 2000, section 45.012, is 24.22 amended to read: 24.23 45.012 [COMMISSIONER.] 24.24 (a) The department of commerce is under the supervision and 24.25 control of the commissioner of commerce. The commissioner is 24.26 appointed by the governor in the manner provided by section 24.27 15.06. 24.28 (b) Data that is received by the commissioner or the 24.29 commissioner's designee by virtue of membership or participation 24.30 in an association, group, or organization that is not otherwise 24.31 subject to chapter 13 is confidential or protected nonpublic 24.32 data but may be shared with the department employees as the 24.33 commissioner considers appropriate. The commissioner may 24.34 release the data to any person, agency, or the public if the 24.35 commissioner determines that the access will aid the law 24.36 enforcement process, promote public health or safety, or dispel 25.1 widespread rumor or unrest. 25.2 (c) It is part of the department's mission that within the 25.3 department's resources the commissioner shall endeavor to: 25.4 (1) prevent the waste or unnecessary spending of public 25.5 money; 25.6 (2) use innovative fiscal and human resource practices to 25.7 manage the state's resources and operate the department as 25.8 efficiently as possible; 25.9 (3) coordinate the department's activities wherever 25.10 appropriate with the activities of other governmental agencies; 25.11 (4) use technology where appropriate to increase agency 25.12 productivity, improve customer service, increase public access 25.13 to information about government, and increase public 25.14 participation in the business of government; 25.15 (5) utilize constructive and cooperative labor-management 25.16 practices to the extent otherwise required by chapters 43A and 25.17 179A; 25.18 (6) report to the legislature on the performance of agency 25.19 operations and the accomplishment of agency goals in the 25.20 agency's biennial budget according to section 16A.10, 25.21 subdivision 1; and 25.22 (7) recommend to the legislature appropriate changes in law 25.23 necessary to carry out the mission and improve the performance 25.24 of the department. 25.25 (d) The commissioner also has all the powers and 25.26 responsibilities and shall perform all the duties previously 25.27 assigned to the commissioner of public service and the 25.28 department of public service under chapters 216, 216A, 216B, 25.29 216C, 237, 238, 239, and other statutes prior to the date of 25.30 final enactment of this act, except in the case where those 25.31 powers, responsibilities, or duties have been specifically 25.32 otherwise assigned by law. 25.33 Sec. 14. Minnesota Statutes 2000, section 103F.325, 25.34 subdivision 2, is amended to read: 25.35 Subd. 2. [REVIEW AND HEARING.] (a) The commissioner shall 25.36 make the proposed management plan available to affected local 26.1 governmental bodies, shoreland owners, conservation and outdoor 26.2 recreation groups, the commissioner of trade and economic 26.3 development, the commissioner ofpublic servicecommerce, the 26.4 governor, and the general public. The commissioners of trade 26.5 and economic developmentand of public service, the state energy 26.6 office in the department of commerce, and the governor shall 26.7 review the proposed management plan in accordance with the 26.8 criteria in section 86A.09, subdivision 3, and submit any 26.9 written comments to the commissioner within 60 days after 26.10 receipt of the proposed management plan. 26.11 (b) By 60 days after making the information available, the 26.12 commissioner shall conduct a public hearing on the proposed 26.13 management plan in the county seat of each county that contains 26.14 a portion of the designated system area, in the manner provided 26.15 in chapter 14. 26.16 Sec. 15. Minnesota Statutes 2000, section 103F.325, 26.17 subdivision 3, is amended to read: 26.18 Subd. 3. [POST HEARING REVIEW.] Upon receipt of the 26.19 administrative law judge's report, the commissioner shall 26.20 immediately forward the proposed management plan and the 26.21 administrative law judge's report to the commissioners of trade 26.22 and economic development and ofpublic servicecommerce for 26.23 review under section 86A.09, subdivision 3, except that the 26.24 review by the commissioners must be completed or be deemed 26.25 completed within 30 days after receiving the administrative law 26.26 judge's report, and the review by the governor must be completed 26.27 or be deemed completed within 15 days after receipt. 26.28 Sec. 16. Minnesota Statutes 2000, section 115A.15, 26.29 subdivision 5, is amended to read: 26.30 Subd. 5. [REPORTS.] (a) By January 1 of each odd-numbered 26.31 year, the commissioner of administration shall submit a report 26.32 to the governor and to the environment and natural resources 26.33 committees of the senate and house of representatives, the 26.34 finance division of the senate committee on environment and 26.35 natural resources, and the house of representatives committee on 26.36 environment and natural resources finance summarizing past 27.1 activities and proposed goals of the program for the following 27.2 biennium. The report shall include at least: 27.3 (1) a summary list of product and commodity purchases that 27.4 contain recycled materials; 27.5 (2) the results of any performance tests conducted on 27.6 recycled products and agencies' experience with recycled 27.7 products used; 27.8 (3) a list of all organizations participating in and using 27.9 the cooperative purchasing program; and 27.10 (4) a list of products and commodities purchased for their 27.11 recyclability and of recycled products reviewed for purchase. 27.12 (b) By July 1 of each even-numbered year, the director of 27.13 the office of environmental assistance and the commissioner of 27.14public servicecommerce through the state energy office shall 27.15 submit recommendations to the commissioner regarding the 27.16 operation of the program. 27.17 Sec. 17. Minnesota Statutes 2000, section 116O.06, 27.18 subdivision 2, is amended to read: 27.19 Subd. 2. [EQUITY INVESTMENTS.] The corporation may acquire 27.20 an interest in a product or a private business entity, except 27.21 that the corporation may not acquire an interest in a business 27.22 entity engaged in a trade or industry whose profits are directly 27.23 regulated by the commissioner of commerce or thedepartment of27.24public servicepublic utilities commission. The corporation may 27.25 enter into joint venture agreements with other private 27.26 corporations to promote economic development and job creation. 27.27 Sec. 18. Minnesota Statutes 2000, section 123B.65, 27.28 subdivision 1, is amended to read: 27.29 Subdivision 1. [DEFINITIONS.] The definitions in this 27.30 subdivision apply to this section. 27.31 (a) "Energy conservation measure" means a training program 27.32 or facility alteration designed to reduce energy consumption or 27.33 operating costs and includes: 27.34 (1) insulation of the building structure and systems within 27.35 the building; 27.36 (2) storm windows and doors, caulking or weatherstripping, 28.1 multiglazed windows and doors, heat absorbing or heat reflective 28.2 glazed and coated window and door systems, additional glazing, 28.3 reductions in glass area, and other window and door system 28.4 modifications that reduce energy consumption; 28.5 (3) automatic energy control systems; 28.6 (4) heating, ventilating, or air conditioning system 28.7 modifications or replacements; 28.8 (5) replacement or modifications of lighting fixtures to 28.9 increase the energy efficiency of the lighting system without 28.10 increasing the overall illumination of a facility, unless such 28.11 increase in illumination is necessary to conform to the 28.12 applicable state or local building code for the lighting system 28.13 after the proposed modifications are made; 28.14 (6) energy recovery systems; 28.15 (7) cogeneration systems that produce steam or forms of 28.16 energy such as heat, as well as electricity, for use primarily 28.17 within a building or complex of buildings; 28.18 (8) energy conservation measures that provide long-term 28.19 operating cost reductions. 28.20 (b) "Guaranteed energy savings contract" means a contract 28.21 for the evaluation and recommendations of energy conservation 28.22 measures, and for one or more energy conservation measures. The 28.23 contract must provide that all payments, except obligations on 28.24 termination of the contract before its expiration, are to be 28.25 made over time, but not to exceed 15 years from the date of 28.26 final installation, and the savings are guaranteed to the extent 28.27 necessary to make payments for the systems. 28.28 (c) "Qualified provider" means a person or business 28.29 experienced in the design, implementation, and installation of 28.30 energy conservation measures. A qualified provider to whom the 28.31 contract is awarded shall give a sufficient bond to the school 28.32 district for its faithful performance. 28.33 (d) "Commissioner" means the commissioner ofpublic service28.34 commerce through the state energy office. 28.35 Sec. 19. Minnesota Statutes 2000, section 123B.65, 28.36 subdivision 3, is amended to read: 29.1 Subd. 3. [EVALUATION BY COMMISSIONER.] Upon request of the 29.2 board, the commissionerof public serviceshall review the 29.3 report required in subdivision 2 and provide an evaluation to 29.4 the board on the proposed contract within 15 working days of 29.5 receiving the report. In evaluating the proposed contract, the 29.6 commissioner shall determine whether the detailed calculations 29.7 of the costs and of the energy and operating savings are 29.8 accurate and reasonable. The commissioner may request 29.9 additional information about a proposed contract as the 29.10 commissioner deems necessary. If the commissioner requests 29.11 additional information, the commissioner shall not be required 29.12 to submit an evaluation to the board within fewer than ten 29.13 working days of receiving the requested information. 29.14 Sec. 20. Minnesota Statutes 2000, section 123B.65, 29.15 subdivision 5, is amended to read: 29.16 Subd. 5. [PAYMENT OF REVIEW EXPENSES.] The commissionerof29.17public servicemay charge a district requesting services under 29.18 subdivisions 3 and 4 actual costs incurred by the department 29.19 ofpublic servicecommerce while conducting the review, or 29.20 one-half percent of the total identified project cost, whichever 29.21 is less. Before conducting the review, the commissioner shall 29.22 notify a district requesting review services that expenses will 29.23 be charged to the district. The commissioner shall bill the 29.24 district upon completion of the contract review. Money 29.25 collected by the commissioner under this subdivision must be 29.26 deposited in the general fund. A district may include the cost 29.27 of a review by the commissioner under subdivision 3 in a 29.28 contract made pursuant to this section. 29.29 Sec. 21. Minnesota Statutes 2000, section 161.45, 29.30 subdivision 1, is amended to read: 29.31 Subdivision 1. [RULES.] Electric transmission, telephone 29.32 or telegraph lines, pole lines, community antenna television 29.33 lines, railways, ditches, sewers, water, heat or gas mains, gas 29.34 and other pipe lines, flumes, or other structures which, under 29.35 the laws of this state or the ordinance of any city, may be 29.36 constructed, placed, or maintained across or along any trunk 30.1 highway, or the roadway thereof, by any person, persons, 30.2 corporation, or any subdivision of the state, may be so 30.3 maintained or hereafter constructed only in accordance with such 30.4 rules as may be prescribed by the commissioner who shall have 30.5 power to prescribe and enforce reasonable rules with reference 30.6 to the placing and maintaining along, across, or in any such 30.7 trunk highway of any of the utilities hereinbefore set forth. 30.8 Nothing herein shall restrict the actions of public authorities 30.9 in extraordinary emergencies nor restrict the power and 30.10 authority of thedepartment of public servicecommissioner of 30.11 commerce as provided for in other provisions of law. Provided, 30.12 however, that in the event any local subdivision of government 30.13 has enacted ordinances relating to the method of installation or 30.14 requiring underground installation of such community antenna 30.15 television lines, the permit granted by the commissioner of 30.16 transportation shall require compliance with such local 30.17 ordinance. 30.18 Sec. 22. Minnesota Statutes 2000, section 168.61, 30.19 subdivision 1, is amended to read: 30.20 Subdivision 1. [DEFINITION.] The term "intercity bus" as 30.21 used in sections 168.61 to 168.65 means a motor bus as defined 30.22 in section 168.011, subdivision 9, which is owned or operated by 30.23 either a resident or nonresident of Minnesota in interstate 30.24 commerce under authority of the Interstate Commerce Commission 30.25 or in combined interstate and intrastate commerce under 30.26 authority of the Interstate Commerce Commission and the 30.27 department ofpublic servicetransportation of Minnesota, as a 30.28 result of which operation such bus operates both within and 30.29 without the territorial limits of the state of Minnesota. 30.30 Sec. 23. Minnesota Statutes 2000, section 169.073, is 30.31 amended to read: 30.32 169.073 [PROHIBITED LIGHT OR SIGNAL.] 30.33 (a) No person or corporation shall place, maintain or 30.34 display any red light or red sign, signal, or lighting device or 30.35 maintain it in view of any highway or any line of railroad on or 30.36 over which trains are operated in such a way as to interfere 31.1 with the effectiveness or efficiency of any highway 31.2 traffic-control device or signals or devices used in the 31.3 operation of a railroad. Upon written notice from the 31.4 commissioner of transportation, a person or corporation 31.5 maintaining or owning or displaying a prohibited light shall 31.6 promptly remove it, or change the color of it to some other 31.7 color than red. Where a prohibited light or sign interferes 31.8 with the effectiveness or efficiency of the signals or devices 31.9 used in the operation of a railroad, the department ofpublic31.10servicetransportation may cause the removal of it and the 31.11 department may issue notices and orders for its removal. The 31.12 department shall proceed as provided in sections 216.13, 216.14, 31.13 216.15, 216.16, and 216.17, with a right of appeal to the 31.14 aggrieved party in accordance with chapter 14. 31.15 (b) No person or corporation shall maintain or display any 31.16 light after written notice from the commissioner of 31.17 transportation or the department of public service that the 31.18 light constitutes a traffic hazard and that it has ordered the 31.19 removal thereof. 31.20 Sec. 24. Minnesota Statutes 2000, section 174.03, 31.21 subdivision 7, is amended to read: 31.22 Subd. 7. [ENERGY CONSERVATION.] The commissioner, in 31.23 cooperation with the commissioner ofpublic servicecommerce 31.24 through the state energy office, shall evaluate all modes of 31.25 transportation in terms of their levels of energy consumption. 31.26 The commissioner ofpublic servicecommerce shall provide the 31.27 commissioner with projections of the future availability of 31.28 energy resources for transportation. The commissioner shall use 31.29 the results of this evaluation and the projections to evaluate 31.30 alternative programs and facilities to be included in the 31.31 statewide plan and to otherwise promote the more efficient use 31.32 of energy resources for transportation purposes. 31.33 Sec. 25. Minnesota Statutes 2000, section 181.30, is 31.34 amended to read: 31.35 181.30 [DUTY OF DEPARTMENT OF PUBLIC SERVICE.] 31.36 Any officer of any railroad company in the state violating 32.1 any of the provisions of section 181.29 shall be guilty of a 32.2 misdemeanor; and, upon conviction, punished by a fine of not 32.3 less than $100, and not more than $700, for each offense, or by 32.4 imprisonment in the county jail not more than 60 days, or both 32.5 fine and imprisonment, at the discretion of the court. It shall 32.6 be the duty of the state department ofpublic32.7servicetransportation, upon complaint properly filed with it 32.8 alleging a violation of section 181.29, to make a full 32.9 investigation in relation thereto, and for such purpose it shall 32.10 have the power to administer oaths, interrogate witnesses, take 32.11 testimony and require the production of books and papers, and if 32.12 such report shall show a violation of the provisions of section 32.13 181.29, the department ofpublic servicetransportation shall, 32.14 through the attorney general, begin the prosecution of all 32.15 parties against whom evidence of such violation is found; but 32.16 section 181.29 shall not be construed to prevent any other 32.17 person from beginning prosecution for the violation of the 32.18 provisions thereof. 32.19 Sec. 26. Minnesota Statutes 2000, section 216A.01, is 32.20 amended to read: 32.21 216A.01 [ESTABLISHMENT OFDEPARTMENT AND COMMISSION; POWERS 32.22 AND DUTIES.] 32.23There are hereby created and established the department of32.24public service, and the public utilities commission.The 32.25 department ofpublic servicecommerce shall have and possess all 32.26 of the rights and powers and perform all of the duties vested in 32.27 it by this chapter. The public utilities commission shall have 32.28 and possess all of the rights and powers and perform all of the 32.29 duties vested in it by this chapter, and those formerly vested 32.30 by law in the railroad and warehouse commission. 32.31 Sec. 27. Minnesota Statutes 2000, section 216A.035, is 32.32 amended to read: 32.33 216A.035 [CONFLICT OF INTEREST.] 32.34 (a) No person, while a member of the public utilities 32.35 commission, while acting as executive secretary of the 32.36 commission, or while employed in a professional capacity by the 33.1 commission, shall receive any income, other than dividends or 33.2 other earnings from a mutual fund or trust if these earnings do 33.3 not constitute a significant portion of the person's income, 33.4 directly or indirectly from any public utility or other 33.5 organization subject to regulation by the commission. 33.6 (b) No person is eligible to be appointed as a member of 33.7 the commission if the person has been employed with an entity, 33.8 or an affiliated company of an entity, that is subject to rate 33.9 regulation by the commission within one year from the date when 33.10 the person's term on the commission will begin. 33.11 (c) No person who is an employee of thepublic service33.12 department of commerce shall participate in any manner in any 33.13 decision or action of the commission where that person has a 33.14 direct or indirect financial interest. Each commissioner or 33.15 employee of thepublic servicedepartment who is in the general 33.16 professional, supervisory, or technical units established in 33.17 section 179A.10 or who is a professional, supervisory, or 33.18 technical employee defined as confidential in section 179A.03, 33.19 subdivision 4, or who is a management classification employee 33.20 and whose duties are related to publicutilities or33.21transportationutility, telephone company, or telecommunications 33.22 company regulation shall report to the campaign finance and 33.23 public disclosure board annually before April 15 any interest in 33.24 an industry or business regulated by the commission. Each 33.25 commissioner shall file a statement of economic interest as 33.26 required by section 10A.09 with the campaign finance and public 33.27 disclosure board and the public utilities commission before 33.28 taking office. The statement of economic interest must state 33.29 any interest that the commissioner has in an industry or 33.30 business regulated by the commission. 33.31 (d) A professional employee of the commission or department 33.32 must immediately disclose to the commission or to the 33.33 commissioner of the department, respectively, any communication, 33.34 direct or indirect, with a person who is a party to a pending 33.35 proceeding before the commission regarding future benefits, 33.36 compensation, or employment to be received from that person. 34.1 Sec. 28. Minnesota Statutes 2000, section 216A.036, is 34.2 amended to read: 34.3 216A.036 [EMPLOYMENT RESTRICTIONS.] 34.4 (a) A person who serves as (1) a commissioner of the public 34.5 utilities commission, (2) commissioner ofthe department of34.6public servicecommerce, or (3) deputy commissioner ofthe34.7departmentcommerce, shall not, while employed with or within 34.8 one year after leaving the commission, or department, accept 34.9 employment with, receive compensation directly or indirectly 34.10 from, or enter into a contractual relationship with an entity, 34.11 or an affiliated company of an entity, that is subject to rate 34.12 regulation by the commission. 34.13 (b) An entity or an affiliated company of an entity that is 34.14 subject to rate regulation by the commission, or a person acting 34.15 on behalf of the entity, shall not negotiate or offer to employ 34.16 or compensate a commissioner of the public utilities commission, 34.17 the commissioner ofpublic servicecommerce, or the deputy 34.18 commissioner of commerce, while the person is so employed or 34.19 within one year after the person leaves that employment. 34.20 (c) For the purposes of this section, "affiliated company" 34.21 means a company that controls, is controlled by, or is under 34.22 common control with an entity subject to rate regulation by the 34.23 commission. 34.24 (d) A person who violates this section is subject to a 34.25 civil penalty not to exceed $10,000 for each violation. The 34.26 attorney general may bring an action in district court to 34.27 collect the penalties provided in this section. 34.28 Sec. 29. Minnesota Statutes 2000, section 216A.05, 34.29 subdivision 1, is amended to read: 34.30 Subdivision 1. [LEGISLATIVE AND QUASI-JUDICIAL FUNCTIONS.] 34.31 The functions of the commission shall be legislative and 34.32 quasi-judicial in nature. It may make such investigations and 34.33 determinations, hold such hearings, prescribe such rules and 34.34 issue such orders with respect to the control and conduct of the 34.35 businesses coming within its jurisdiction as the legislature 34.36 itself might make but only as it shall from time to time 35.1 authorize. It may adjudicate all proceedings brought before it 35.2 in which the violation of any law or rule administered by the 35.3 department of commerce is alleged. 35.4 Sec. 30. Minnesota Statutes 2000, section 216A.07, 35.5 subdivision 1, is amended to read: 35.6 Subdivision 1. [ADMINISTRATIVECOMMISSIONER DUTIES.] The 35.7 commissionershall be the executive and administrative head of35.8the public service department and shall have and possessof 35.9 commerce has all the rights and powers and shall perform all the 35.10 dutiesrelating to the administrative function of the department35.11asset forth in this chapter. The commissioner may: 35.12 (1) prepare all forms or blanks for the purpose of 35.13 obtaining information which the commissioner may deem necessary 35.14 or useful in the proper exercise of the authority and duties of 35.15 the commissioner in connection with regulated businesses; 35.16 (2) prescribe the time and manner within which forms or 35.17 blanks shall be filed with the department; 35.18 (3) inspect at all reasonable times, and copy the books, 35.19 records, memoranda and correspondence or other documents and 35.20 records of any person relating to any regulated business; and 35.21 (4) cause the deposition to be taken of any person 35.22 concerning the business and affairs of any business regulated by 35.23 the department. Information sought through said deposition 35.24 shall be for a lawfully authorized purpose and shall be relevant 35.25 and material to the investigation or hearing before the 35.26 commission. Information obtained from said deposition shall be 35.27 used by the department only for a lawfully authorized purpose 35.28 and pursuant to powers and responsibilities conferred upon the 35.29 department. Said deposition is to be taken in the manner 35.30 prescribed by law for taking depositions in civil actions in the 35.31 district court. 35.32 Sec. 31. Minnesota Statutes 2000, section 216A.08, is 35.33 amended to read: 35.34 216A.08 [CONTINUATION OF RULES OF PUBLIC SERVICE 35.35 DEPARTMENT.] 35.36 All valid rules, orders, and directives heretofore 36.1 enforced, issued, or promulgated by the public service 36.2 department under authority of chapter 216, 216A, 216B, 216C, 36.3 218, 219, 221,or222, 237, 238, or 239 shall remain and 36.4 continue in force and effect until repealed, modified, or 36.5 superseded by duly authorized rules, orders, or directives of 36.6 the public utilities commissionor, the commissioner of 36.7 transportation, or the commissioner of commerce. 36.8 Sec. 32. Minnesota Statutes 2000, section 216A.085, 36.9 subdivision 3, is amended to read: 36.10 Subd. 3. [STAFFING.] The intervention office shall be 36.11 under the control and supervision of the commissioner ofthe36.12department of public servicecommerce. The commissioner may 36.13 hire staff or contract for outside services as needed to carry 36.14 out the purposes of this section. The attorney general shall 36.15 act as counsel in all intervention proceedings. 36.16 Sec. 33. Minnesota Statutes 2000, section 216B.02, 36.17 subdivision 1, is amended to read: 36.18 Subdivision 1. [SCOPE.] For the purposes ofLaws 1974,36.19chapter 429this chapter the terms defined in this section have 36.20 the meanings given them. 36.21 Sec. 34. Minnesota Statutes 2000, section 216B.02, 36.22 subdivision 7, is amended to read: 36.23 Subd. 7. [COMMISSION.] "Commission" means the public 36.24 utilities commissionof the department of public service. 36.25 Sec. 35. Minnesota Statutes 2000, section 216B.02, 36.26 subdivision 8, is amended to read: 36.27 Subd. 8. [DEPARTMENT.] "Department" means the department 36.28 ofpublic servicecommerce of the state of Minnesota. 36.29 Sec. 36. Minnesota Statutes 2000, section 216B.16, 36.30 subdivision 1, is amended to read: 36.31 Subdivision 1. [NOTICE.] Unless the commission otherwise 36.32 orders, no public utility shall change a rate which has been 36.33 duly established under this chapter, except upon 60 days' notice 36.34 to the commission. The notice shall include statements of 36.35 facts, expert opinions, substantiating documents, and exhibits, 36.36 supporting the change requested, and state the change proposed 37.1 to be made in the rates then in force and the time when the 37.2 modified rates will go into effect. If the filing utility does 37.3 not have an approved conservation improvement plan on file with 37.4 the departmentof public service, it shall also include in its 37.5 notice an energy conservation plan pursuant to section 37.6 216B.241. The filing utility shall give written notice, as 37.7 approved by the commission, of the proposed change to the 37.8 governing body of each municipality and county in the area 37.9 affected. All proposed changes shall be shown by filing new 37.10 schedules or shall be plainly indicated upon schedules on file 37.11 and in force at the time. 37.12 Sec. 37. Minnesota Statutes 2000, section 216B.16, 37.13 subdivision 2, is amended to read: 37.14 Subd. 2. [SUSPENSION OF PROPOSED RATE; HEARING; FINAL 37.15 DETERMINATION DEFINED.] (a) Whenever there is filed with the 37.16 commission a schedule modifying or resulting in a change in any 37.17 rates then in force as provided in subdivision 1, the commission 37.18 may suspend the operation of the schedule by filing with the 37.19 schedule of rates and delivering to the affected utility a 37.20 statement in writing of its reasons for the suspension at any 37.21 time before the rates become effective. The suspension shall 37.22 not be for a longer period than ten months beyond the initial 37.23 filing date except as provided in this subdivision or 37.24 subdivision 1a. 37.25 (b) During the suspension the commission shall determine 37.26 whether all questions of the reasonableness of the rates 37.27 requested raised by persons deemed interested or by the 37.28administrative division of thedepartmentof public servicecan 37.29 be resolved to the satisfaction of the commission. If the 37.30 commission finds that all significant issues raised have not 37.31 been resolved to its satisfaction, or upon petition by ten 37.32 percent of the affected customers or 250 affected customers, 37.33 whichever is less, it shall refer the matter to the office of 37.34 administrative hearings with instructions for a public hearing 37.35 as a contested case pursuant to chapter 14, except as otherwise 37.36 provided in this section. 38.1 (c) The commission may order that the issues presented by 38.2 the proposed rate changes be bifurcated into two separate 38.3 hearings as follows: (1) determination of the utility's revenue 38.4 requirements and (2) determination of the rate design. Upon 38.5 issuance of both administrative law judge reports, the issues 38.6 shall again be joined for consideration and final determination 38.7 by the commission. 38.8 (d) All prehearing discovery activities of state agency 38.9 intervenors shall be consolidated and conducted by the 38.10 department ofpublic servicecommerce. 38.11 (e) If the commission does not make a final determination 38.12 concerning a schedule of rates within ten months after the 38.13 initial filing date, the schedule shall be deemed to have been 38.14 approved by the commission; except if: 38.15 (1) an extension of the procedural schedule has been 38.16 granted under subdivision 1a, in which case the schedule of 38.17 rates is deemed to have been approved by the commission on the 38.18 last day of the extended period of suspension; or 38.19 (2) a settlement has been submitted to and rejected by the 38.20 commission and the commission does not make a final 38.21 determination concerning the schedule of rates, the schedule of 38.22 rates is deemed to have been approved 60 days after the initial 38.23 or, if applicable, the extended period of suspension. 38.24 (f) If the commission finds that it has insufficient time 38.25 during the suspension period to make a final determination of a 38.26 case involving changes in general rates because of the need to 38.27 make a final determination of another previously filed case 38.28 involving changes in general rates under this section or section 38.29 237.075, the commission may extend the suspension period to the 38.30 extent necessary to allow itself 20 working days to make the 38.31 final determination after it has made a final determination in 38.32 the previously filed case. An extension of the suspension 38.33 period under this paragraph does not alter the setting of 38.34 interim rates under subdivision 3. 38.35 (g) For the purposes of this section, "final determination" 38.36 means the initial decision of the commission and not any order 39.1 which may be entered by the commission in response to a petition 39.2 for rehearing or other further relief. The commission may 39.3 further suspend rates until it determines all those petitions. 39.4 Sec. 38. Minnesota Statutes 2000, section 216B.16, 39.5 subdivision 6b, is amended to read: 39.6 Subd. 6b. [ENERGY CONSERVATION IMPROVEMENT.] (a) Except as 39.7 otherwise provided in this subdivision, all investments and 39.8 expenses of a public utility as defined in section 216B.241, 39.9 subdivision 1, paragraph (e), incurred in connection with energy 39.10 conservation improvements shall be recognized and included by 39.11 the commission in the determination of just and reasonable rates 39.12 as if the investments and expenses were directly made or 39.13 incurred by the utility in furnishing utility service. 39.14 (b) After December 31, 1999, investments and expenses for 39.15 energy conservation improvements shall not be included by the 39.16 commission in the determination of just and reasonable electric 39.17 and gas rates for retail electric and gas service provided to 39.18 large electric customer facilities that have been exempted by 39.19 the commissioner of the departmentof public servicepursuant to 39.20 section 216B.241, subdivision 1a, paragraph (b). However, no 39.21 public utility shall be prevented from recovering its investment 39.22 in energy conservation improvements from all customers that were 39.23 made on or before December 31, 1999, in compliance with the 39.24 requirements of section 216B.241. 39.25 (c) The commission may permit a public utility to file rate 39.26 schedules providing for annual recovery of the costs of energy 39.27 conservation improvements. These rate schedules may be 39.28 applicable to less than all the customers in a class of retail 39.29 customers if necessary to reflect the differing minimum spending 39.30 requirements of section 216B.241, subdivision 1a. After 39.31 December 31, 1999, the commission shall allow a public utility, 39.32 without requiring a general rate filing under this section, to 39.33 reduce the electric and gas rates applicable to large electric 39.34 customer facilities that have been exempted by the commissioner 39.35 of the departmentof public servicepursuant to section 39.36 216B.241, subdivision 1a, paragraph (b), by an amount that 40.1 reflects the elimination of energy conservation improvement 40.2 investments or expenditures for those facilities required on or 40.3 before December 31, 1999. In the event that the commission has 40.4 set electric or gas rates based on the use of an accounting 40.5 methodology that results in the cost of conservation 40.6 improvements being recovered from utility customers over a 40.7 period of years, the rate reduction may occur in a series of 40.8 steps to coincide with the recovery of balances due to the 40.9 utility for conservation improvements made by the utility on or 40.10 before December 31, 1999. 40.11 Sec. 39. Minnesota Statutes 2000, section 216B.16, 40.12 subdivision 15, is amended to read: 40.13 Subd. 15. [LOW-INCOME RATE PROGRAMS; REPORT.] (a) The 40.14 commission may consider ability to pay as a factor in setting 40.15 utility rates and may establish programs for low-income 40.16 residential ratepayers in order to ensure affordable, reliable, 40.17 and continuous service to low-income utility customers. The 40.18 commission shall order a pilot program for at least one 40.19 utility. In ordering pilot programs, the commission shall 40.20 consider the following: 40.21 (1) the potential for low-income programs to provide 40.22 savings to the utility for all collection costs including but 40.23 not limited to: costs of disconnecting and reconnecting 40.24 residential ratepayers' service, all activities related to the 40.25 utilities' attempt to collect past due bills, utility working 40.26 capital costs, and any other administrative costs related to 40.27 inability to pay programs and initiatives; 40.28 (2) the potential for leveraging federal low-income energy 40.29 dollars to the state; and 40.30 (3) the impact of energy costs as a percentage of the total 40.31 income of a low-income residential customer. 40.32 (b) In determining the structure of the pilot utility 40.33 program, the commission shall: 40.34 (1) consult with advocates for and representatives of 40.35 low-income utility customers, administrators of energy 40.36 assistance and conservation programs, and utility 41.1 representatives; 41.2 (2) coordinate eligibility for the program with the state 41.3 and federal energy assistance program and low-income residential 41.4 energy programs, including weatherization programs; and 41.5 (3) evaluate comprehensive low-income programs offered by 41.6 utilities in other states. 41.7 (c) The commission shall implement at least one pilot 41.8 project by January 1, 1995, and shall allow a utility required 41.9 to implement a pilot project to recover the net costs of the 41.10 project in the utility's rates. 41.11(d) The commission, in conjunction with the commissioner of41.12the department of public service and the commissioner of41.13economic security, shall review low-income rate programs and41.14shall report to the legislature by January 1, 1998. The report41.15must include:41.16(1) the increase in federal energy assistance money41.17leveraged by the state as a result of this program;41.18(2) the effect of the program on low-income customer's41.19ability to pay energy costs;41.20(3) the effect of the program on utility customer bad debt41.21and arrearages;41.22(4) the effect of the program on the costs and numbers of41.23utility disconnections and reconnections and other costs41.24incurred by the utility in association with inability to pay41.25programs;41.26(5) the ability of the utility to recover the costs of the41.27low-income program without a general rate change;41.28(6) how other ratepayers have been affected by this41.29program;41.30(7) recommendations for continuing, eliminating, or41.31expanding the low-income pilot program; and41.32(8) how general revenue funds may be utilized in41.33conjunction with low-income programs.41.34 Sec. 40. Minnesota Statutes 2000, section 216B.162, 41.35 subdivision 7, is amended to read: 41.36 Subd. 7. [COMMISSION DETERMINATION.] (a) Except as 42.1 provided under subdivision 6, competitive rates offered by 42.2 electric utilities under this section must be filed with the 42.3 commission and must be approved, modified, or rejected by the 42.4 commission within 90 days. The utility's filing must include 42.5 statements of fact demonstrating that the proposed rates meet 42.6 the standards of this subdivision. The filing must be served on 42.7 the departmentof public serviceand the office of the attorney 42.8 general at the same time as it is served on the commission. 42.9 (b) In reviewing a specific rate proposal, the commission 42.10 shall determine: 42.11 (1) that the rate meets the terms and conditions in 42.12 subdivision 4, unless the commission determines that waiver of 42.13 one or more terms and conditions would be in the public 42.14 interest; 42.15 (2) that the consumer can obtain its energy requirements 42.16 from an energy supplier not rate-regulated by the commission 42.17 under section 216B.16; 42.18 (3) that the customer is not likely to take service from 42.19 the electric utility seeking to offer the competitive rate if 42.20 the customer was charged the electric utility's standard 42.21 tariffed rate; and 42.22 (4) that after consideration of environmental and 42.23 socioeconomic impacts it is in the best interest of all other 42.24 customers to offer the competitive rate to the customer subject 42.25 to effective competition. 42.26 (c) If the commission approves the competitive rate, it 42.27 becomes effective as agreed to by the electric utility and the 42.28 customer. If the competitive rate is modified by the 42.29 commission, the commission shall issue an order modifying the 42.30 competitive rate subject to the approval of the electric utility 42.31 and the customer. Each party has ten days in which to reject 42.32 the proposed modification. If no party rejects the proposed 42.33 modification, the commissioner's order becomes final. If either 42.34 party rejects the commission's proposed modification, the 42.35 electric utility, on its behalf or on the behalf of the 42.36 customer, may submit to the commission a modified version of the 43.1 commission's proposal. The commission shall accept or reject 43.2 the modified version within 30 days. If the commission rejects 43.3 the competitive rate, it shall issue an order indicating the 43.4 reasons for the rejection. 43.5 Sec. 41. Minnesota Statutes 2000, section 216B.162, 43.6 subdivision 11, is amended to read: 43.7 Subd. 11. [COMMISSION DETERMINATION.] (a) Proposals for 43.8 discretionary rate reductions offered by utilities must be filed 43.9 with the commission, with copies of the filing served upon the 43.10 departmentof public serviceand the office of attorney general 43.11 at the same time it is served upon the commission. The 43.12 commission shall review the proposals according to procedures 43.13 developed under section 216B.05, subdivision 2a. The commission 43.14 shall not approve discretionary rate reductions offered by 43.15 public utilities that do not have an accepted resource plan on 43.16 file with the commission. The commission shall not approve 43.17 discretionary rate reductions unless the utility has made the 43.18 customer aware of all cost-effective opportunities for energy 43.19 efficiency improvements offered by the utility. 43.20 (b) Public utilities that provide service under 43.21 discretionary rate reductions shall not, through increased 43.22 revenue requirements or through prospective rate design changes, 43.23 recover any revenues foregone due to the discretionary rate 43.24 reductions, nor shall the commission grant such recovery. 43.25 Sec. 42. Minnesota Statutes 2000, section 216B.1675, 43.26 subdivision 9, is amended to read: 43.27 Subd. 9. [COMMISSION FINDINGS.] The commission shall issue 43.28 findings concerning the appropriateness of the proposed plan. 43.29 The commission may approve, reject, or modify the plan in a 43.30 manner which meets the requirements of this section. An 43.31 approved or modified plan becomes effective unless the plan is 43.32 withdrawn by the utility within 30 days of a final appealable 43.33 order. If the utility withdraws an approved or modified plan, 43.34 all of the administrative costs related to the plan that are 43.35 charged by the commission or the departmentof public serviceto 43.36 the utility may not be recovered from ratepayers in current or 44.1 subsequent rates. A utility that withdraws an approved or 44.2 modified plan may not file another plan under this section for a 44.3 period of one year following the withdrawal of the plan. 44.4 Sec. 43. Minnesota Statutes 2000, section 216B.241, 44.5 subdivision 1a, is amended to read: 44.6 Subd. 1a. [INVESTMENT, EXPENDITURE, AND CONTRIBUTION; 44.7 PUBLIC UTILITY.] (a) For purposes of this subdivision and 44.8 subdivision 2, "public utility" has the meaning given it in 44.9 section 216B.02, subdivision 4. Each public utility shall spend 44.10 and invest for energy conservation improvements under this 44.11 subdivision and subdivision 2 the following amounts: 44.12 (1) for a utility that furnishes gas service, 0.5 percent 44.13 of its gross operating revenues from service provided in the 44.14 state; 44.15 (2) for a utility that furnishes electric service, 1.5 44.16 percent of its gross operating revenues from service provided in 44.17 the state; and 44.18 (3) for a utility that furnishes electric service and that 44.19 operates a nuclear-powered electric generating plant within the 44.20 state, two percent of its gross operating revenues from service 44.21 provided in the state. 44.22 For purposes of this paragraph (a), "gross operating 44.23 revenues" do not include revenues from large electric customer 44.24 facilities exempted by the commissioner of the departmentof44.25public servicepursuant to paragraph (b). 44.26 (b) The owner of a large electric customer facility may 44.27 petition the commissioner of the departmentof public serviceto 44.28 exempt both electric and gas utilities serving the large energy 44.29 customer facility from the investment and expenditure 44.30 requirements of paragraph (a) with respect to retail revenues 44.31 attributable to the facility. At a minimum, the petition must 44.32 be supported by evidence relating to competitive or economic 44.33 pressures on the customer and a showing by the customer of 44.34 reasonable efforts to identify, evaluate, and implement 44.35 cost-effective conservation improvements at the facility. If a 44.36 petition is filed on or before October 1 of any year, the order 45.1 of the commissioner to exempt revenues attributable to the 45.2 facility can be effective no earlier than January 1 of the 45.3 following year. The commissioner shall not grant an exemption 45.4 if the commissioner determines that granting the exemption is 45.5 contrary to the public interest. The commissioner may, after 45.6 investigation, rescind any exemption granted under this 45.7 paragraph upon a determination that cost-effective energy 45.8 conservation improvements are available at the large electric 45.9 customer facility. For the purposes of this paragraph, 45.10 "cost-effective" means that the projected total cost of the 45.11 energy conservation improvement at the large electric customer 45.12 facility is less than the projected present value of the energy 45.13 and demand savings resulting from the energy conservation 45.14 improvement. For the purposes of investigations by the 45.15 commissioner under this paragraph, the owner of any large 45.16 electric customer facility shall, upon request, provide the 45.17 commissioner with updated information comparable to that 45.18 originally supplied in or with the owner's original petition 45.19 under this paragraph. 45.20 (c) The commissioner may require investments or spending 45.21 greater than the amounts required under this subdivision for a 45.22 public utility whose most recent advance forecast required under 45.23 section 216B.2422 or 216C.17 projects a peak demand deficit of 45.24 100 megawatts or greater within five years under mid-range 45.25 forecast assumptions. 45.26 (d) A public utility or owner of a large electric customer 45.27 facility may appeal a decision of the commissioner under 45.28 paragraph (b) or (c) to the commission under subdivision 2. In 45.29 reviewing a decision of the commissioner under paragraph (b) or 45.30 (c), the commission shall rescind the decision if it finds that 45.31 the required investments or spending will: 45.32 (1) not result in cost-effective energy conservation 45.33 improvements; or 45.34 (2) otherwise not be in the public interest. 45.35 (e) Each utility shall determine what portion of the amount 45.36 it sets aside for conservation improvement will be used for 46.1 conservation improvements under subdivision 2 and what portion 46.2 it will contribute to the energy and conservation account 46.3 established in subdivision 2a. A public utility may propose to 46.4 the commissioner to designate that all or a portion of funds 46.5 contributed to the account established in subdivision 2a be used 46.6 for research and development projects. Contributions must be 46.7 remitted to the commissionerof public serviceby February 1 of 46.8 each year. Nothing in this subdivision prohibits a public 46.9 utility from spending or investing for energy conservation 46.10 improvement more than required in this subdivision. 46.11 Sec. 44. Minnesota Statutes 2000, section 216B.241, 46.12 subdivision 1b, is amended to read: 46.13 Subd. 1b. [CONSERVATION IMPROVEMENT BY COOPERATIVE 46.14 ASSOCIATION OR MUNICIPALITY.] (a) This subdivision applies to: 46.15 (1) a cooperative electric association that generates and 46.16 transmits electricity to associations that provide electricity 46.17 at retail including a cooperative electric association not 46.18 located in this state that serves associations or others in the 46.19 state; 46.20 (2) a municipality that provides electric service to retail 46.21 customers; and 46.22 (3) a municipality with gross operating revenues in excess 46.23 of $5,000,000 from sales of natural gas to retail customers. 46.24 (b) Each cooperative electric association and municipality 46.25 subject to this subdivision shall spend and invest for energy 46.26 conservation improvements under this subdivision the following 46.27 amounts: 46.28 (1) for a municipality, 0.5 percent of its gross operating 46.29 revenues from the sale of gas and one percent of its gross 46.30 operating revenues from the sale of electricity not purchased 46.31 from a public utility governed by subdivision 1a or a 46.32 cooperative electric association governed by this subdivision, 46.33 excluding gross operating revenues from electric and gas service 46.34 provided in the state to large electric customer facilities; and 46.35 (2) for a cooperative electric association, 1.5 percent of 46.36 its gross operating revenues from service provided in the state, 47.1 excluding gross operating revenues from service provided in the 47.2 state to large electric customer facilities indirectly through a 47.3 distribution cooperative electric association. 47.4 (c) Each municipality and cooperative association subject 47.5 to this subdivision shall identify and implement energy 47.6 conservation improvement spending and investments that are 47.7 appropriate for the municipality or association, except that a 47.8 municipality or association may not spend or invest for energy 47.9 conservation improvements that directly benefit a large electric 47.10 customer facility. Each municipality and cooperative electric 47.11 association subject to this subdivision may spend and invest 47.12 annually up to 15 percent of the total amount required to be 47.13 spent and invested on energy conservation improvements under 47.14 this subdivision on research and development projects that meet 47.15 the definition of energy conservation improvement in subdivision 47.16 1 and that are funded directly by the municipality or 47.17 cooperative electric association. Load management may be used 47.18 to meet the requirements of this subdivision if it reduces the 47.19 demand for or increases the efficiency of electric services. A 47.20 generation and transmission cooperative electric association may 47.21 include as spending and investment required under this 47.22 subdivision conservation improvement spending and investment by 47.23 cooperative electric associations that provide electric service 47.24 at retail to consumers and that are served by the generation and 47.25 transmission association. 47.26 (d) By February 1 of each year, each municipality or 47.27 cooperative shall report to the commissioner its energy 47.28 conservation improvement spending and investments with a brief 47.29 analysis of effectiveness in reducing consumption of electricity 47.30 or gas. The commissioner shall review each report and make 47.31 recommendations, where appropriate, to the municipality or 47.32 association to increase the effectiveness of conservation 47.33 improvement activities. The commissioner shall also review each 47.34 report for whether a portion of the money spent on residential 47.35 conservation improvement programs is devoted to programs that 47.36 directly address the needs of renters and low-income persons 48.1 unless an insufficient number of appropriate programs are 48.2 available. For the purposes of this subdivision and subdivision 48.3 2, "low-income" means an income of less than 185 percent of the 48.4 federal poverty level. 48.5 (e) As part of its spending for conservation improvement, a 48.6 municipality or association may contribute to the energy and 48.7 conservation account. A municipality or association may propose 48.8 to the commissioner to designate that all or a portion of funds 48.9 contributed to the account be used for research and development 48.10 projects. Any amount contributed must be remitted to the 48.11 commissionerof public serviceby February 1 of each year. 48.12 Sec. 45. Minnesota Statutes 2000, section 216B.241, 48.13 subdivision 2b, is amended to read: 48.14 Subd. 2b. [RECOVERY OF EXPENSES.] The commission shall 48.15 allow a utility to recover expenses resulting from a 48.16 conservation improvement program required by the department and 48.17 contributions to the energy and conservation account, unless the 48.18 recovery would be inconsistent with a financial incentive 48.19 proposal approved by the commission. In addition, a utility may 48.20 file annually, or the public utilities commission may require 48.21 the utility to file, and the commission may approve, rate 48.22 schedules containing provisions for the automatic adjustment of 48.23 charges for utility service in direct relation to changes in the 48.24 expenses of the utility for real and personal property taxes, 48.25 fees, and permits, the amounts of which the utility cannot 48.26 control. A public utility is eligible to file for adjustment 48.27 for real and personal property taxes, fees, and permits under 48.28 this subdivision only if, in the year previous to the year in 48.29 which it files for adjustment, it has spent or invested at least 48.30 1.75 percent of its gross revenues from provision of electric 48.31 service, excluding gross operating revenues from electric 48.32 service provided in the state to large electric customer 48.33 facilities for which the commissionerof public servicehas 48.34 issued an exemption under subdivision 1a, paragraph (b), and 0.6 48.35 percent of its gross revenues from provision of gas service, 48.36 excluding gross operating revenues from gas services provided in 49.1 the state to large electric customer facilities for which the 49.2 commissionerof public servicehas issued an exemption under 49.3 subdivision 1a, paragraph (b), for that year for energy 49.4 conservation improvements under this section. 49.5 Sec. 46. Minnesota Statutes 2000, section 216C.01, 49.6 subdivision 1, is amended to read: 49.7 Subdivision 1. [APPLICABILITY.] The definitions in this 49.8 section apply tosections 216C.02, 216C.05, 216C.07 to 216C.19,49.9216C.20 to 216C.35, and 216C.373 to 216C.381this chapter. 49.10 Sec. 47. Minnesota Statutes 2000, section 216C.01, 49.11 subdivision 2, is amended to read: 49.12 Subd. 2. [COMMISSIONER.] "Commissioner" means the 49.13 commissioner ofthe department of public servicecommerce. 49.14 Sec. 48. Minnesota Statutes 2000, section 216C.01, 49.15 subdivision 3, is amended to read: 49.16 Subd. 3. [DEPARTMENT.] "Department" means the department 49.17 ofpublic servicecommerce. 49.18 Sec. 49. Minnesota Statutes 2000, section 216C.051, 49.19 subdivision 6, is amended to read: 49.20 Subd. 6. [ASSESSMENT; APPROPRIATION.] On request by the 49.21 cochairs of the legislative task force and after approval of the 49.22 legislative coordinating commission, the commissioner ofthe49.23department of public servicecommerce shall assess from electric 49.24 utilities, in addition to assessments made under section 49.25 216B.62, the amount requested for the operation of the task 49.26 force not to exceed $700,000. This authority to assess 49.27 continues until the commissioner has assessed a total of 49.28 $700,000. The amount assessed under this section is 49.29 appropriated to the director of the legislative coordinating 49.30 commission for those purposes, and is available until expended. 49.31 Sec. 50. Minnesota Statutes 2000, section 216C.37, 49.32 subdivision 1, is amended to read: 49.33 Subdivision 1. [DEFINITIONS.] In this section: 49.34 (a) "Commissioner" means the commissioner ofpublic service49.35 commerce. 49.36 (b) "Energy conservation investments" means all capital 50.1 expenditures that are associated with conservation measures 50.2 identified in an energy project study, and that have a ten-year 50.3 or less payback period. 50.4 (c) "Municipality" means any county, statutory or home rule 50.5 charter city, town, school district, or any combination of those 50.6 units operating under an agreement to jointly undertake projects 50.7 authorized in this section. 50.8 (d) "Energy project study" means a study of one or more 50.9 energy-related capital improvement projects analyzed in 50.10 sufficient detail to support a financing application. At a 50.11 minimum, it must include one year of energy consumption and cost 50.12 data, a description of existing conditions, a description of 50.13 proposed conditions, a detailed description of the costs of the 50.14 project, and calculations sufficient to document the proposed 50.15 energy savings. 50.16 Sec. 51. Minnesota Statutes 2000, section 216C.40, 50.17 subdivision 4, is amended to read: 50.18 Subd. 4. [CONDITION PRECEDENT.] The duties of the 50.19 department under this section are conditional on the 50.20 commissionerof public servicefinding that there will be at 50.21 least one public utility that will be subject to the assessment 50.22 created by Laws 1993, chapter 254, section 7. 50.23 Sec. 52. Minnesota Statutes 2000, section 237.02, is 50.24 amended to read: 50.25 237.02 [GENERAL AUTHORITY OF DEPARTMENT AND COMMISSION; 50.26 DEFINITIONS.] 50.27 The department ofpublic servicecommerce and the public 50.28 utilities commission, now existing under the laws of this state,50.29 are hereby vested with the same jurisdiction and supervisory 50.30 power over telephone and telecommunications companies doing 50.31 business in this state asit now hasthe commission's 50.32 predecessor, the railroad and warehouse commission, had over 50.33 railroad and express companies. The definitions set forth 50.34 insectionsections 216A.02shall applyand 216B.02 also apply 50.35 to this chapter. 50.36 Sec. 53. Minnesota Statutes 2000, section 237.075, 51.1 subdivision 2, is amended to read: 51.2 Subd. 2. [SUSPENSION OF PROPOSED RATE; HEARING; FINAL 51.3 DETERMINATION DEFINED.] (a) Whenever there is filed with the 51.4 commission as provided in subdivision 1 a schedule modifying or 51.5 resulting in a change in any rate then in force, the commission 51.6 may suspend the operation of the schedule by filing with the 51.7 schedule of rates and delivering to the affected telephone 51.8 company a statement in writing of its reasons for the suspension 51.9 at any time before the rates become effective. The suspension 51.10 shall not be for a longer period than ten months beyond the 51.11 initial filing date except as provided in paragraph (b). During 51.12 the suspension the commission shall determine whether all 51.13 questions of the reasonableness of the rates requested raised by 51.14 persons deemed interested or by theadministrative division of51.15thedepartmentof public servicecan be resolved to the 51.16 satisfaction of the commission. If the commission finds that 51.17 all significant issues raised have not been resolved to its 51.18 satisfaction, or upon petition by ten percent of the affected 51.19 customers or 250 affected customers, whichever is less, it shall 51.20 refer the matter to the office of administrative hearings with 51.21 instructions for a public hearing as a contested case pursuant 51.22 to chapter 14, except as otherwise provided in this section. 51.23 The commission may order that the issues presented by the 51.24 proposed rate changes be bifurcated into two separate hearings 51.25 as follows: (1) determination of the telephone company's 51.26 revenue requirements and (2) determination of the rate design. 51.27 Upon issuance of both administrative law judge reports, the 51.28 issues shall again be joined for consideration and final 51.29 determination by the commission. All prehearing discovery 51.30 activities of state agency intervenors shall be consolidated and 51.31 conducted by the department ofpublic servicecommerce. If the 51.32 commission does not make a final determination concerning a 51.33 schedule of rates within ten months after the initial filing 51.34 date, the schedule shall be deemed to have been approved by the 51.35 commission; except if a settlement has been submitted to and 51.36 rejected by the commission, the schedule is deemed to have been 52.1 approved 12 months after the initial filing. 52.2 (b) If the commission finds that it has insufficient time 52.3 during the suspension period to make a final determination of a 52.4 case involving changes in general rates because of the need to 52.5 make final determinations of other previously filed cases 52.6 involving changes in general rates under this section or section 52.7 216B.16, the commission may extend the suspension period to the 52.8 extent necessary to allow itself 20 working days to make the 52.9 final determination after it has made final determinations in 52.10 the previously filed cases. An extension of the suspension 52.11 period under this paragraph does not alter the setting of 52.12 interim rates under subdivision 3. 52.13 (c) For the purposes of this section, "final determination" 52.14 means the initial decision of the commission and not any order 52.15 which may be entered by the commission in response to a petition 52.16 for rehearing or other further relief. The commission may 52.17 further suspend rates until it determines all those petitions. 52.18 Sec. 54. Minnesota Statutes 2000, section 237.075, 52.19 subdivision 9, is amended to read: 52.20 Subd. 9. [ELECTION ON REGULATION; COOPERATIVE, MUNICIPAL, 52.21 INDEPENDENT.] For the purposes of this section, "telephone 52.22 company" shall not include a cooperative telephone association 52.23 organized under the provisions of chapter 308A, an independent 52.24 telephone company, or a municipal, unless the cooperative 52.25 telephone association, independent telephone company, or 52.26 municipal makes the election provided in this subdivision. 52.27 A cooperative telephone association may elect to become 52.28 subject to rate regulation by the commission pursuant to this 52.29 section. The election shall be (a) approved by the board of 52.30 directors of the association in accordance with the procedures 52.31 for amending the articles of incorporation contained in section 52.32 308A.135, excluding the filing requirements; or (b) approved by 52.33 a majority of members or stockholders voting by mail ballot 52.34 initiated by petition of no fewer than five percent of the 52.35 members or stockholders of the association. The ballot to be 52.36 used for the election shall be approved by the board of 53.1 directors and the departmentof public service. The department 53.2 shall mail the ballots to the association's members who shall 53.3 return the ballots to the department. The department will keep 53.4 the ballots sealed until a date agreed upon by the department 53.5 and the board of directors. On this date, representatives of 53.6 the department and the association shall count the ballots. If 53.7 a majority of the association's members who vote elect to become 53.8 subject to rate regulation by the commission, the election shall 53.9 be effective 30 days after the date the ballots are counted. 53.10 For purposes of this section, the term "member or stockholder" 53.11 shall mean either the member or stockholder of record or the 53.12 spouse of the member or stockholder unless the association has 53.13 been notified otherwise in writing. 53.14 A municipal may elect to become subject to rate regulation 53.15 by the commission pursuant to this section. The election shall 53.16 be (a) approved by resolution of the governing body of the 53.17 municipality; or (b) approved by a majority of the customers of 53.18 the municipal voting by mail ballot initiated by petition of no 53.19 fewer than 20 percent of the customers of the municipal. The 53.20 ballot to be used for the election shall be approved by the 53.21 governing body of the municipality and the departmentof public53.22service. The department shall mail the ballots to the 53.23 municipal's customers who shall return the ballots to the 53.24 department. The department will keep the ballots sealed until a 53.25 date agreed upon by the department and the governing body of the 53.26 municipality. On this date, representatives of the department 53.27 and the municipal shall count the ballots. If a majority of the 53.28 customers of the municipal who vote elect to become subject to 53.29 rate regulation by the commission, the election shall be 53.30 effective 30 days after the date the ballots are counted. For 53.31 purposes of this section, the term "customer" shall mean either 53.32 the person in whose name the telephone service is registered or 53.33 the spouse of the person unless the municipal utility has been 53.34 notified otherwise in writing. 53.35 An independent telephone company may elect to become 53.36 subject to rate regulation by the commission pursuant to this 54.1 section. The election shall be (a) approved by the board of 54.2 directors of the company in accordance with the procedures for 54.3 amending the articles of incorporation contained in sections 54.4 302A.133 to 302A.139, excluding the filing requirements; or (b) 54.5 approved by a majority of subscribers voting by mail ballot 54.6 initiated by petition of no fewer than five percent of the 54.7 subscribers of the company. The ballot to be used for the 54.8 election shall be approved by the board of directors and the 54.9 departmentof public service. The department shall mail the 54.10 ballots to the company's subscribers who shall return the 54.11 ballots to the department. The department will keep the ballots 54.12 sealed until a date agreed upon by the department and the board 54.13 of directors. On this date, representatives of the department 54.14 and the company shall count the ballots. If a majority of the 54.15 company's subscribers who vote elect to become subject to rate 54.16 regulation by the commission, the election shall be effective 30 54.17 days after the date the ballots are counted. For purposes of 54.18 this section the term "subscriber" shall mean either the person 54.19 in whose name the telephone service is registered or the spouse 54.20 of the person unless the independent telephone company has been 54.21 notified otherwise in writing. 54.22 Sec. 55. Minnesota Statutes 2000, section 237.082, is 54.23 amended to read: 54.24 237.082 [TELECOMMUNICATION SERVICE; POLICY OF INCREASED 54.25 SPEED AND SERVICE.] 54.26 When setting rates, adopting rules, or issuing orders 54.27 related to telecommunication matters that affect deployment of 54.28 the infrastructure, the commission may apply the goals of: 54.29 (1) achieving economically efficient investment in: 54.30 (i) higher speed telecommunication services; and 54.31 (ii) greater capacity for voice, video, and data 54.32 transmission; and 54.33 (2) just and reasonable rates. 54.34 The departmentof public servicemay apply the same goals 54.35 in its regulation of and recommendations regarding 54.36 telecommunication services. 55.1 Sec. 56. Minnesota Statutes 2000, section 237.21, is 55.2 amended to read: 55.3 237.21 [VALUATION OF TELEPHONE PROPERTY.] 55.4 In determining the value of any telephone property for rate 55.5 making purposes, no valuation shall be allowed upon the value of 55.6 any franchise granted by the state or any municipality where no 55.7 payment was or is being made to the state or municipality on 55.8 account thereof. The requirement as to reasonableness of rates 55.9 shall apply to each exchange unit as well as to telephone plants 55.10 as a whole. Provided, that in the case of a company operating a 55.11 telephone system consisting of more than one exchange in the 55.12 state, reasonableness of rates, as measured by earnings, shall 55.13 be determined by a reasonable return from the total operations 55.14 of the system within the state rather than by the return from 55.15 individual exchanges or services. No telephone rates or charges 55.16 shall be allowed or approved by the commission under any 55.17 circumstances, which are inadequate and which are intended to or 55.18 naturally tend to destroy competition or produce a monopoly in 55.19 telephone service in the locality affected. 55.20Laws 1953, chapter 25, shall have no effect on proceedings55.21pending before the courts or the department of public service at55.22the time of its enactment.55.23 Sec. 57. Minnesota Statutes 2000, section 237.30, is 55.24 amended to read: 55.25 237.30 [TELEPHONE INVESTIGATION FUND; APPROPRIATION.] 55.26 The sum of $25,000 is hereby appropriated out of any moneys 55.27 in the state treasury not otherwise appropriated, to establish 55.28 and provide a revolving fund to be known as the Minnesota 55.29 Telephone Investigation Fund for the use of the department of 55.30public servicecommerce and of the attorney general in 55.31 investigations, valuations, and revaluations under section 55.32 237.295. All sums paid by the telephone companies to reimburse 55.33 the departmentof public servicefor its expenses pursuant to 55.34 section 237.295 shall be credited to the revolving fund and 55.35 shall be deposited in a separate bank account and not commingled 55.36 with any other state funds or moneys, but any balance in excess 56.1 of $25,000 in the revolving fund at the end of each fiscal year 56.2 shall be paid into the state treasury and credited to the 56.3 general fund. The sum of $25,000 herein appropriated and all 56.4 subsequent credits to said revolving fund shall be paid upon the 56.5 warrant of the commissioner of finance upon application of the 56.6 department or of the attorney general to an aggregate amount of 56.7 not more than one-half of such sums to each of them, which 56.8 proportion shall be constantly maintained in all credits and 56.9 withdrawals from the revolving fund. 56.10 Sec. 58. Minnesota Statutes 2000, section 237.462, 56.11 subdivision 6, is amended to read: 56.12 Subd. 6. [EXPEDITED PROCEEDING.] (a) The commission may 56.13 order an expedited proceeding under section 237.61 and this 56.14 subdivision, in lieu of a contested case under chapter 14, to 56.15 develop an evidentiary record in any proceeding that involves 56.16 contested issues of material fact either upon request of a party 56.17 or upon the commission's own motion if the complaint alleges a 56.18 violation described in subdivision 1, clauses (1) to (4). The 56.19 commission may order an expedited proceeding under this 56.20 subdivision if the commission finds an expedited proceeding is 56.21 in the public interest, regardless of whether all parties agree 56.22 to the expedited proceeding. In determining whether to grant an 56.23 expedited proceeding, the commission may consider any evidence 56.24 of impairment of the provision of telecommunications service to 56.25 subscribers in the state or impairment of the provision of any 56.26 service or network element subject to the jurisdiction of the 56.27 commission. 56.28 (b) Any request for an expedited proceeding under this 56.29 subdivision must be noted in the title of the first filing by a 56.30 party. The filing shall also state the specific circumstances 56.31 that the party believes warrant an expedited proceeding under 56.32 this subdivision. 56.33 (c) A complaint requesting an expedited proceeding, unless 56.34 filed by the departmentof public serviceor the attorney 56.35 general, must set forth the actions and the dates of the actions 56.36 taken by the party filing the complaint to attempt to resolve 57.1 the alleged violations with the party against whom the complaint 57.2 is filed, including any requests that the party against whom the 57.3 complaint is filed correct the conduct giving rise to the 57.4 violations alleged in the complaint. If no such actions were 57.5 taken by the complainant, the complaint shall set forth the 57.6 reasons why no such actions were taken. The commission may 57.7 order an expedited proceeding even if the filing complaint fails 57.8 to meet this requirement if the commission determines that it 57.9 would be in the public interest to go forward with the expedited 57.10 proceeding without information in the complaint on attempts to 57.11 resolve the dispute. 57.12 (d) The complaining party shall serve the complaint along 57.13 with any written discovery requests by hand delivery and 57.14 facsimile on the party against whom the complaint is filed, the 57.15 departmentof public service, and the office of the attorney 57.16 general on the same day the complaint is filed with the 57.17 commission. 57.18 (e) The party responding to a complaint that includes a 57.19 request for an expedited proceeding under this subdivision shall 57.20 file an answer within 15 days after receiving the complaint. 57.21 The responding party shall state in the answer the party's 57.22 position on the request for an expedited proceeding. The 57.23 responding party shall serve with the answer any objections to 57.24 any written discovery requests as well as any written discovery 57.25 requests the responding party wishes to serve on the complaining 57.26 party. Except for stating any objections, the responding party 57.27 is not required to answer any written discovery requests under 57.28 this subdivision until a time established at a prehearing 57.29 conference. The responding party shall serve a copy of the 57.30 answer and any discovery requests and objections on the 57.31 complaining party, the departmentof public service, and office 57.32 of the attorney general by hand delivery and facsimile on the 57.33 same day as the answer is filed with the commission. 57.34 (f) Within 15 days of receiving the answer to a complaint 57.35 in a proceeding in which a party has requested an expedited 57.36 hearing, the commission shall determine whether the filing 58.1 warrants an expedited proceeding. If the commission decides to 58.2 grant a request by a party or if the commission orders an 58.3 expedited proceeding on its own motion, the commission shall 58.4 conduct within seven days of the decision a prehearing 58.5 conference to schedule the evidentiary hearing. During the 58.6 prehearing conference, the commission shall establish a 58.7 discovery schedule that requires all discovery to be completed 58.8 no later than three days before the start of the hearing. An 58.9 evidentiary hearing under this subdivision must commence no 58.10 later than 45 days after the commission's decision to order an 58.11 expedited proceeding. A quorum of the commission shall preside 58.12 at any evidentiary hearing under this subdivision unless all the 58.13 parties to the proceeding agree otherwise. 58.14 (g) All pleadings submitted under this subdivision must be 58.15 verified and all oral statements of fact made in a hearing or 58.16 deposition under this subdivision must be made under oath or 58.17 affirmation. 58.18 (h) The commission shall issue a written decision and final 58.19 order on the complaint within 15 days after the close of the 58.20 evidentiary hearing under this subdivision. On the day of 58.21 issuance, the commission shall notify the parties by facsimile 58.22 that a final order has been issued and shall provide each party 58.23 with a copy of the final order. 58.24 (i) The commission may extend any time periods under this 58.25 subdivision if all parties to the proceeding agree to the 58.26 extension or if the commission finds the extension is necessary 58.27 to ensure a just resolution of the complaint. 58.28 (j) Except as otherwise provided in this subdivision, an 58.29 expedited proceeding under this subdivision shall be governed by 58.30 the following procedural rules: 58.31 (1) the parties shall have the discovery rights provided in 58.32 Minnesota Rules, parts 1400.6700 to 1400.7000; 58.33 (2) the parties shall have the right to cross-examine 58.34 witnesses as provided in section 14.60, subdivision 3; 58.35 (3) the admissibility of evidence and development of record 58.36 for decision shall be governed by section 14.60 and Minnesota 59.1 Rules, part 1400.7300; and 59.2 (4) the commission may apply other procedures or standards 59.3 included in the rules of the office of administrative hearings, 59.4 as necessary to ensure the fair and expeditious resolution of 59.5 disputes under this section. 59.6 Sec. 59. Minnesota Statutes 2000, section 237.51, 59.7 subdivision 1, is amended to read: 59.8 Subdivision 1. [CREATION.] Thedepartment of public59.9servicecommissioner of commerce shall administer through 59.10 interagency agreement with thedepartmentcommissioner of human 59.11 services a program to distribute communication devices to 59.12 eligible communication-impaired persons and contract with a 59.13 local consumer group that serves communication-impaired persons 59.14 to create and maintain a telecommunication relay service. For 59.15 purposes of sections 237.51 to 237.56, the department ofpublic59.16servicecommerce and any organization with which it contracts 59.17 pursuant to this section or section 237.54, subdivision 2, are 59.18 not telephone companies or telecommunications carriers as 59.19 defined in section 237.01. 59.20 Sec. 60. Minnesota Statutes 2000, section 237.51, 59.21 subdivision 5, is amended to read: 59.22 Subd. 5. [DEPARTMENT OF PUBLIC SERVICECOMMISSIONER OF 59.23 COMMERCE DUTIES.] In addition to any duties specified elsewhere 59.24 in sections 237.51 to 237.56, thedepartment of public service59.25 commissioner of commerce shall: 59.26 (1) prepare the reports required by section 237.55; 59.27 (2) administer the fund created in section 237.52; and 59.28 (3) adopt rules under chapter 14 to implement the 59.29 provisions of sections 237.50 to 237.56. 59.30 Sec. 61. Minnesota Statutes 2000, section 237.51, 59.31 subdivision 5a, is amended to read: 59.32 Subd. 5a. [DEPARTMENT OF HUMAN SERVICES DUTIES.] (a) In 59.33 addition to any duties specified elsewhere in sections 237.51 to 59.34 237.56, thedepartmentcommissioner of human services shall: 59.35 (1) define economic hardship, special needs, and household 59.36 criteria so as to determine the priority of eligible applicants 60.1 for initial distribution of devices and to determine 60.2 circumstances necessitating provision of more than one 60.3 communication device per household; 60.4 (2) establish a method to verify eligibility requirements; 60.5 (3) establish specifications for communication devices to 60.6 be purchased under section 237.53, subdivision 3; and 60.7 (4) inform the public and specifically the community of 60.8 communication-impaired persons of the program. 60.9 (b) Thedepartmentcommissioner may establish an advisory 60.10 board to advise the department in carrying out the duties 60.11 specified in this section and to advise thedepartment of public60.12servicecommissioner of commerce in carrying outitsduties 60.13 under section 237.54. If so established, the advisory board 60.14 must include, at a minimum, the following communication-impaired 60.15 persons: 60.16 (1) at least one member who is deaf; 60.17 (2) at least one member who is speech impaired; 60.18 (3) at least one member who is mobility impaired; and 60.19 (4) at least one member who is hard-of-hearing. 60.20 The membership terms, compensation, and removal of members 60.21 and the filling of membership vacancies are governed by section 60.22 15.059. Advisory board meetings shall be held at the discretion 60.23 of the commissioner. 60.24 Sec. 62. Minnesota Statutes 2000, section 237.52, 60.25 subdivision 2, is amended to read: 60.26 Subd. 2. [ASSESSMENT.] Thedepartment of public60.27servicecommissioner of commerce shall annually recommend to the 60.28 commission an adequate and appropriate surcharge and budget to 60.29 implement sections 237.50 to 237.56. The public utilities 60.30 commission shall review the budget for reasonableness and may 60.31 modify the budget to the extent it is unreasonable. The 60.32 commission shall annually determine the funding mechanism to be 60.33 used within 60 days of receipt of the recommendation of the 60.34 department and shall order the imposition of surcharges 60.35 effective on the earliest practicable date. The commission 60.36 shall establish a monthly charge no greater than 20 cents for 61.1 each customer access line, including trunk equivalents as 61.2 designated by the commission pursuant to section 403.11, 61.3 subdivision 1. 61.4 Sec. 63. Minnesota Statutes 2000, section 237.52, 61.5 subdivision 4, is amended to read: 61.6 Subd. 4. [APPROPRIATION.] Money in the fund is 61.7 appropriated to thedepartment of public servicecommissioner of 61.8 commerce to implement sections 237.51 to 237.56. 61.9 Sec. 64. Minnesota Statutes 2000, section 237.52, 61.10 subdivision 5, is amended to read: 61.11 Subd. 5. [EXPENDITURES.] Money in the fund may only be 61.12 used for: 61.13 (1) expenses of the department ofpublic servicecommerce, 61.14 including personnel cost, public relations, advisory board 61.15 members' expenses, preparation of reports, and other reasonable 61.16 expenses not to exceed ten percent of total program 61.17 expenditures; 61.18 (2) reimbursing the commissioner of human services for 61.19 purchases made or services provided pursuant to section 237.53; 61.20 (3) reimbursing telephone companies for purchases made or 61.21 services provided under section 237.53, subdivision 5; and 61.22 (4) contracting for establishment and operation of the 61.23 telecommunication relay service required by section 237.54. 61.24 All costs directly associated with the establishment of the 61.25 program, the purchase and distribution of communication devices, 61.26 and the establishment and operation of the telecommunication 61.27 relay service are either reimbursable or directly payable from 61.28 the fund after authorization by thedepartment of public service61.29 commissioner of commerce. Thedepartment of public61.30servicecommissioner of commerce shall contract with the message 61.31 relay service operator to indemnify the local exchange carriers 61.32 of the relay service for any fines imposed by the Federal 61.33 Communications Commission related to the failure of the relay 61.34 service to comply with federal service standards. 61.35 Notwithstanding section 16A.41, thedepartment of public service61.36 commissioner may advance money to the contractor of the 62.1 telecommunication relay service if the contractor establishes to 62.2 thedepartment'scommissioner's satisfaction that the advance 62.3 payment is necessary for the operation of the service. The 62.4 advance payment may be used only for working capital reserve for 62.5 the operation of the service. The advance payment must be 62.6 offset or repaid by the end of the contract fiscal year together 62.7 with interest accrued from the date of payment. 62.8 Sec. 65. Minnesota Statutes 2000, section 237.54, 62.9 subdivision 2, is amended to read: 62.10 Subd. 2. [OPERATION.] Thedepartment of public62.11servicecommissioner of commerce shall contract with a local 62.12 consumer organization that serves communication-impaired persons 62.13 for operation and maintenance of the telecommunication relay 62.14 system. Thedepartmentcommissioner may contract with other 62.15 than a local consumer organization if no local consumer 62.16 organization is available to enter into or perform a reasonable 62.17 contract or the only available consumer organization fails to 62.18 comply with terms of a contract. The operator of the system 62.19 shall keep all messages confidential, shall train personnel in 62.20 the unique needs of communication-impaired people, and shall 62.21 inform communication-impaired persons and the public of the 62.22 availability and use of the system. The operator shall not 62.23 relay a message unless it originates or terminates through a 62.24 communication device for the deaf or a Brailling device for use 62.25 with a telephone. 62.26 Sec. 66. Minnesota Statutes 2000, section 237.55, is 62.27 amended to read: 62.28 237.55 [ANNUAL REPORT ON COMMUNICATION ACCESS.] 62.29 Thedepartment of public servicecommissioner of commerce 62.30 must prepare a report for presentation to the commission by 62.31 January 31 of each year. Each report must review the 62.32 accessibility of the telephone system to communication-impaired 62.33 persons, review the ability of non-communication-impaired 62.34 persons to communicate with communication-impaired persons via 62.35 the telephone system, describe services provided, account for 62.36 money received and disbursed annually for each aspect of the 63.1 program to date, and include predicted future operation. 63.2 Sec. 67. Minnesota Statutes 2000, section 237.59, 63.3 subdivision 2, is amended to read: 63.4 Subd. 2. [PETITION.] (a) A telephone company, or the 63.5 commission on its own motion, may petition to have a service of 63.6 that telephone company classified as subject to effective 63.7 competition or emerging competition. The petition must be 63.8 served on the commission, the departmentof public service, the 63.9 office of the attorney general, and any other person designated 63.10 by the commission. The petition must contain at least: 63.11 (1) a list of the known alternative providers of the 63.12 service available to the company's customers; and 63.13 (2) a description of affiliate relationships with any other 63.14 provider of the service in the company's market. 63.15 (b) At the time the company first offers a service, it 63.16 shall also file a petition with the commission for a 63.17 determination as to how the service should be classified. In 63.18 the event that no interested party or the commission objects to 63.19 the company's proposed classification within 20 days of the 63.20 filing of the petition, the company's proposed classification of 63.21 the service is deemed approved. If an objection is filed, the 63.22 commission shall determine the appropriate classification after 63.23 a hearing conducted pursuant to section 237.61. In either 63.24 event, the company may offer the new service to its customers 63.25 ten days after the company files the price list and incremental 63.26 cost study as provided in section 237.60, subdivision 2, 63.27 paragraph (f). 63.28 (c) A new service may be classified as subject to effective 63.29 competition or emerging competition pursuant to the criteria set 63.30 forth in subdivision 5. A new service must be regulated under 63.31 the emerging competition provisions if it is not integrally 63.32 related to the provision of adequate local service or access to 63.33 the telephone network or to the privacy, health, or safety of 63.34 the company's customers, whether or not it meets the criteria 63.35 set forth in subdivision 5. 63.36 Sec. 68. Minnesota Statutes 2000, section 237.768, is 64.1 amended to read: 64.2 237.768 [PERIODIC FINANCIAL REPORT.] 64.3 In addition to the reports required under section 237.766, 64.4 an alternative regulation plan may require a telephone company 64.5 to file with the department an annual report of financial 64.6 matters for the previous calendar year on or before May 1 of 64.7 each year on report forms furnished by the departmentof public64.8servicein the same manner as is required of other telephone 64.9 companies on August 1, 1995. In addition, any company subject 64.10 to a plan shall file with the commission and department a copy 64.11 of any filings it has made to the Federal Communications 64.12 Commission regarding the provisions of video programming 64.13 provided through a video dial tone facility in Minnesota. An 64.14 alternative regulation plan may require a telephone company to 64.15 maintain its accounts in accordance with the system of accounts 64.16 prescribed for the company by the commission under section 64.17 237.10. 64.18 Sec. 69. Minnesota Statutes 2000, section 239.01, is 64.19 amended to read: 64.20 239.01 [WEIGHTS AND MEASURES DIVISION; JURISDICTION.] 64.21 The weights and measures division, referred to in this 64.22 chapter as the division, is created under the jurisdiction of 64.23 the department ofpublic servicecommerce. The division has 64.24 supervision and control over all weights, weighing devices, and 64.25 measures in the state. 64.26 Sec. 70. Minnesota Statutes 2000, section 239.10, is 64.27 amended to read: 64.28 239.10 [ANNUAL INSPECTION.] 64.29 Subdivision 1. [LIGHT CAPACITY SCALES; RETAIL 64.30 ESTABLISHMENTS.] The director shall inspect light capacity 64.31 scales in retail establishments such as grocery stores, other 64.32 retail food establishments, or hardware stores, not more often 64.33 than once every 36 months except when the owner requests an 64.34 inspection, when the scale is inspected as part of an 64.35 investigation, or when the scale has been repaired. 64.36 Subd. 2. [PACKAGED FOOD COMMODITIES.] The director shall 65.1 inspect packaged food commodities in grocery stores and other 65.2 retail food establishments not more often than once every 36 65.3 months except when the owner requests an inspection or when 65.4 packages are inspected as part of an investigation. 65.5 Subd. 3. [OTHER WEIGHTS AND MEASURES.] The director shall 65.6 inspect all weights and measures, except those specified in 65.7 subdivisions 1 and 2, annually, or as often as deemed possible 65.8 within budget and staff limitations. 65.9 Sec. 71. Minnesota Statutes 2000, section 325E.11, is 65.10 amended to read: 65.11 325E.11 [COLLECTION FACILITIES; NOTICE.] 65.12 (a) Any person selling at retail or offering motor oil or 65.13 motor oil filters for retail sale in this state shall: 65.14 (1) post a notice indicating the nearest location where 65.15 used motor oil and used motor oil filters may be returned at no 65.16 cost for recycling or reuse, post a toll-free telephone number 65.17 that may be called by the public to determine a convenient 65.18 location, or post a listing of locations where used motor oil 65.19 and used motor oil filters may be returned at no cost for 65.20 recycling or reuse; or 65.21 (2) if the person is subject to section 325E.112, 65.22 subdivision 1, paragraph (b), post a notice informing customers 65.23 purchasing motor oil or motor oil filters of the location of the 65.24 used motor oil and used motor oil filter collection site 65.25 established by the retailer in accordance with section 325E.112, 65.26 subdivision 1, paragraph (b), where used motor oil and used 65.27 motor oil filters may be returned at no cost. 65.28 (b) A notice under paragraph (a) shall be posted on or 65.29 adjacent to the motor oil and motor oil filter displays, be at 65.30 least 8-1/2 inches by 11 inches in size, contain the universal 65.31 recycling symbol with the following language: 65.32 (1) "It is illegal to put used oil and used motor oil 65.33 filters in the garbage."; 65.34 (2) "Recycle your used oil and used motor oil filters."; 65.35 and 65.36 (3)(i) "There is a free collection site here for your used 66.1 oil and used motor oil filters."; 66.2 (ii) "There is a free collection site for used oil and used 66.3 motor oil filters located at (name of business and street 66.4 address)."; 66.5 (iii) "For the location of a free collection site for used 66.6 oil and used motor oil filters call (toll-free phone number)."; 66.7 or 66.8 (iv) "Here is a list of free collection sites for used oil 66.9 and used motor oil filters." 66.10 (c) The division of weights and measuresunderin the 66.11 department ofpublic servicecommerce shall enforce compliance 66.12 with this section as provided in section 239.54. The pollution 66.13 control agency shall enforce compliance with this section under 66.14 sections 115.071 and 116.072 in coordination with the division 66.15 of weights and measures. 66.16 Sec. 72. Minnesota Statutes 2000, section 325E.115, 66.17 subdivision 2, is amended to read: 66.18 Subd. 2. [COMPLIANCE; MANAGEMENT.] The division of weights 66.19 and measuresunderin the department ofpublic servicecommerce 66.20 shall enforce compliance of subdivision 1 as provided in section 66.21 239.54. The commissioner of the pollution control agency shall 66.22 inform persons governed by subdivision 1 of requirements for 66.23 managing lead acid batteries. 66.24 Sec. 73. Minnesota Statutes 2000, section 326.243, is 66.25 amended to read: 66.26 326.243 [SAFETY STANDARDS.] 66.27 All electrical wiring, apparatus and equipment for electric 66.28 light, heat and power, alarm and communication systems shall 66.29 comply with the rules of the department ofpublic service, the66.30commissioner ofcommerce,or the department of labor and 66.31 industry, as applicable, and be installed in conformity with 66.32 accepted standards of construction for safety to life and 66.33 property. For the purposes of this chapter, the rules and 66.34 safety standards stated at the time the work is done in the then 66.35 most recently published edition of the National Electrical Code 66.36 as adopted by the National Fire Protection Association, Inc. and 67.1 approved by the American National Standards Institute, and the 67.2 National Electrical Safety Code as published by the Institute of 67.3 Electrical and Electronics Engineers, Inc. and approved by the 67.4 American National Standards Institute, shall be prima facie 67.5 evidence of accepted standards of construction for safety to 67.6 life and property; provided further, that in the event a 67.7 Minnesota Building Code is formulated pursuant to section 67.8 16B.61, containing approved methods of electrical construction 67.9 for safety to life and property, compliance with said methods of 67.10 electrical construction of said Minnesota Building Code shall 67.11 also constitute compliance with this section, and provided 67.12 further, that nothing herein contained shall prohibit any 67.13 political subdivision from making and enforcing more stringent 67.14 requirements than set forth herein and such requirements shall 67.15 be complied with by all licensed electricians working within the 67.16 jurisdiction of such political subdivisions. 67.17 Sec. 74. Minnesota Statutes 2000, section 484.50, is 67.18 amended to read: 67.19 484.50 [SUMMONS; PLACE OF TRIAL; ST. LOUIS COUNTY.] 67.20 A party wishing to have an appeal from an order of the 67.21department of public servicepublic utilities commission, an 67.22 election contest, a lien foreclosure, or a civil cause or 67.23 proceeding of a kind commenced or appealed by a party in the 67.24 court, tried in the city of Virginia shall, in the summons, 67.25 notice of appeal in a matter, or other jurisdictional instrument 67.26 issued, in addition to the usual provisions, print, stamp, or 67.27 write thereon the words, "to be tried at the city of Virginia," 67.28 and a party wishing a matter commenced or appealed by a party in 67.29 the court tried at the city of Hibbing shall, in the summons, 67.30 notice of appeal in a matter, or other jurisdictional instrument 67.31 issued, in addition to the usual provisions, print, stamp, or 67.32 write thereon the words, "to be tried at the city of Hibbing," 67.33 and in a case where a summons, notice of appeal in a matter, or 67.34 other jurisdictional instrument contains a specification, the 67.35 case shall be tried at the city of Virginia, or the city of 67.36 Hibbing, as the case may be, unless the defendant shall have the 68.1 place of trial fixed in the manner specified in this section. 68.2 If the place of trial designated is not the proper place of 68.3 trial, as specified in sections 484.44 to 484.52, the cause 68.4 shall nevertheless be tried in a place, unless the defendant, in 68.5 an answer in addition to the other allegations of defense, shall 68.6 plead the location of the defendant's residence, and demand that 68.7 the action be tried at the place of holding the court nearest 68.8 the defendant's residence, as provided in this section; and in a 68.9 case where the answer of the defendant pleads the place of 68.10 residence and makes a demand of place of trial, the plaintiff, 68.11 in reply, may admit or deny the allegations of residence, and if 68.12 the allegations of residence are not expressly denied, the case 68.13 shall be tried at the place demanded by the defendant, and if 68.14 the allegations of residence are denied, the place of trial 68.15 shall be determined by the court on motion. 68.16 If there are several defendants, residing at different 68.17 places in a county, the trial shall be at the place in which the 68.18 majority of the defendants unite in demanding, or if the numbers 68.19 are equal, at the place nearest the residence of the majority of 68.20 the defendants. 68.21 The venue of an action may be changed from one of these 68.22 places to another, by order of the court, in the following cases: 68.23 (1) Upon written consent of the parties; 68.24 (2) When it appears, on motion, that a party has been made 68.25 a defendant for the purpose of preventing a change of venue as 68.26 provided in this section; 68.27 (3) When an impartial trial cannot be held in the place 68.28 where the action is pending; or 68.29 (4) When the convenience of witnesses and the ends of 68.30 justice would be promoted by the change. 68.31 Application for a change under clause (2), (3), or (4), 68.32 shall be made by motion which shall be returnable and heard at 68.33 the place of commencement of the action. 68.34 Sec. 75. [INSTRUCTION TO REVISOR.] 68.35 The revisor of statutes shall change the words "public 68.36 service" to the word "commerce" in the following sections of 69.1 Minnesota Statutes: 13.68; 13.681; 17A.04, subdivisions 6, 7, 69.2 and 8; 17A.10, subdivision 1; 41A.09, subdivision 7; 116C.03, 69.3 subdivision 2; 160.262, subdivision 3; 216A.085, subdivision 1; 69.4 216B.241, subdivision 1; 237.295, subdivision 1; 237.662, 69.5 subdivision 3; 237.70, subdivision 7; 239.05, subdivisions 6c, 69.6 7a, 8, and 8c; 272.0211, subdivision 1; 296A.02, subdivision 1; 69.7 308A.210, subdivisions 5 and 6; 325F.733, subdivision 7; and 69.8 469.164, subdivision 2. 69.9 Sec. 76. [REPEALER.] 69.10 Minnesota Statutes 2000, sections 216A.06; and 237.69, 69.11 subdivision 3, are repealed. 69.12 Sec. 77. [EFFECTIVE DATE.] 69.13 This article is effective July 1, 2001. 69.14 ARTICLE 3 69.15 ECONOMIC DEVELOPMENT AND JOBS APPROPRIATIONS 69.16 Section 1. [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 69.17 The sums shown in the columns marked "APPROPRIATIONS" are 69.18 appropriated from the general fund, or another named fund, to 69.19 the agencies and for the purposes specified in this act, to be 69.20 available for the fiscal years indicated for each purpose. The 69.21 figures "2002" and "2003," where used in this act, mean that the 69.22 appropriation or appropriations listed under them are available 69.23 for the year ending June 30, 2002, or June 30, 2003, 69.24 respectively. The term "first year" means the fiscal year 69.25 ending June 30, 2002, and "second year" means the fiscal year 69.26 ending June 30, 2003. 69.27 SUMMARY BY FUND 69.28 2002 2003 TOTAL 69.29 General $105,695,000 $80,019,000 $185,714,000 69.30 Remediation Fund 700,000 700,000 1,400,000 69.31 TANF 750,000 750,000 1,500,000 69.32 Workforce 69.33 Development Fund 13,674,000 4,770,000 18,444,000 69.34 TOTAL $120,819,000 $86,239,000 $207,058,000 69.35 APPROPRIATIONS 69.36 Available for the Year 69.37 Ending June 30 69.38 2002 2003 70.1 Sec. 2. TRADE AND ECONOMIC DEVELOPMENT 70.2 Subdivision 1. Total 70.3 Appropriation 65,165,000 37,188,000 70.4 Summary by Fund 70.5 General 60,343,000 35,538,000 70.6 TANF 750,000 750,000 70.7 Remediation Fund 700,000 700,000 70.8 Workforce 70.9 Development Fund 6,972,000 300,000 70.10 The amounts that may be spent from this 70.11 appropriation for each program are 70.12 specified in the following subdivisions. 70.13 Subd. 2. Business and Community 70.14 Development 35,759,000 11,062,000 70.15 Summary by Fund 70.16 General 30,487,000 10,362,000 70.17 Remediation Fund 700,000 700,000 70.18 Workforce 70.19 Development Fund 4,572,000 -0- 70.20 $12,700,000 is for a grant to the board 70.21 of regents of the University of 70.22 Minnesota for the university's 70.23 contribution to the North Star Research 70.24 Coalition. Of this amount, $3,200,000 70.25 is for the coalition to invest in the 70.26 biomedical innovation and 70.27 commercialization initiative. Of the 70.28 remainder, 80 percent is for a 70.29 permanent endowment to be maintained by 70.30 the coalition and 20 percent is for 70.31 grants in the biennium. The 70.32 commissioner of finance may not release 70.33 this appropriation until the board of 70.34 regents certifies that a tax-exempt 70.35 corporation in a form complying with 70.36 Minnesota Statutes, section 137.45, has 70.37 been established. The commissioner 70.38 shall release the money appropriated, 70.39 as a one-for-one match for money 70.40 contributed directly to the coalition 70.41 from nonstate sources, or as a 70.42 one-for-one match with respect to 70.43 individual research projects funded by 70.44 the coalition for which a match from 70.45 nonstate sources is required by the 70.46 coalition or is available. The 70.47 appropriation shall be released on a 70.48 quarterly basis until the appropriation 70.49 is expended. Notwithstanding any law 70.50 to the contrary, this appropriation 70.51 shall not cancel, but is available 70.52 until expended. It is the intention of 70.53 the legislature that the base funding 70.54 in fiscal year 2004 for the North Star 70.55 Coalition be $25,000,000. Of this 70.56 amount, $5,000,000 is for investment in 70.57 the biomedical innovation and 71.1 commercialization initiative. 71.2 $1,300,000 the first year is for 71.3 purposes of the redevelopment grant 71.4 program under Minnesota Statutes, 71.5 sections 116J.561 to 116J.567. Funds 71.6 not expended in the first year are 71.7 available in the second year. This is 71.8 a one-time appropriation. 71.9 $1,000,000 the first year is for 71.10 payment to the metropolitan council for 71.11 livable communities grants. The 71.12 commissioner must transfer the amount 71.13 to the metropolitan council upon 71.14 receipt of a certified copy of a 71.15 council resolution requesting payment. 71.16 The appropriation must be used by the 71.17 council for grants to metropolitan 71.18 local governmental units, as defined in 71.19 Minnesota Statutes, section 473.121, 71.20 subdivision 6. A local governmental 71.21 unit that receives a grant is 71.22 authorized to enter into any agreements 71.23 or contracts necessary for the purposes 71.24 of this section. This is a one-time 71.25 appropriation. Funds not expended the 71.26 first year are available the second. 71.27 $150,000 the first year from the 71.28 workforce development fund is for the 71.29 purpose of capacity building grants to 71.30 community foundations. 71.31 $1,000,000 the first year is for a 71.32 grant to Camp Knutson for capital 71.33 improvements. This is a one-time 71.34 expenditure, and funds not spent the 71.35 first year are available the second. 71.36 $300,000 the first year from the 71.37 workforce development fund is for 71.38 northeast entrepreneur fund initiative 71.39 grants. This is a one-time 71.40 expenditure, and funds not spent the 71.41 first year are available the second. 71.42 $500,000 the first year from the 71.43 workforce development fund is for 71.44 microenterprise technical assistance 71.45 grants to small businesses. 71.46 $900,000 the first year from the 71.47 workforce development fund is for a 71.48 grant to the city of Duluth to support 71.49 the development of the Duluth 71.50 Technology Village. The grant is a 71.51 one-time expenditure, and funds not 71.52 spent the first year are available the 71.53 second. 71.54 $500,000 the first year from the 71.55 workforce development fund is for a 71.56 grant to the rural policy and 71.57 development center at Minnesota State 71.58 University, Mankato. The funds not 71.59 spent the first year are available the 71.60 second. 71.61 $1,000,000 is for a grant to the cities 71.62 of Ada, Breckenridge, East Grand Forks, 72.1 and Warren. Of that amount, $478,000 72.2 is to reimburse Ada for bond interest 72.3 expenses in connection with temporary 72.4 financing in anticipation of financing 72.5 by the Federal Emergency Management 72.6 Agency (FEMA) for 1997 flood recovery 72.7 work in that city. $119,000 is to 72.8 reimburse Breckenridge, $321,000 is to 72.9 reimburse East Grand Forks, and $82,000 72.10 is to reimburse Warren for lost 72.11 interest in connection with 72.12 expenditures in anticipation of 72.13 financing by FEMA for 1997 flood 72.14 recovery work in those cities. 72.15 $1,775,000 the first year is for 72.16 purposes of tornado relief to the 72.17 Granite Falls area. This appropriation 72.18 shall be spent as follows: 72.19 (1) $1,400,000 to the Minnesota 72.20 investment fund for grants to local 72.21 units of government for locally 72.22 administered operating loan programs 72.23 for businesses directly and adversely 72.24 affected by the July 25, 2000, 72.25 tornadoes. Loan criteria and 72.26 requirements must be locally 72.27 established with approval by the 72.28 department. For the purposes of this 72.29 appropriation, Minnesota Statutes, 72.30 section 116J.8731, subdivisions 3, 4, 72.31 5, and 7, is waived. Businesses that 72.32 receive grants or loans from this 72.33 appropriation shall set goals for jobs 72.34 retained and wages paid within the 72.35 areas designated in amendment number 5 72.36 and amendment number 6 to the 72.37 Presidential Declaration of Major 72.38 Disaster, DR1333; and 72.39 (2) $375,000 is for a grant to project 72.40 turnabout, a residential compulsive 72.41 gambling treatment facility. 72.42 $1,200,000 the first year is for a 72.43 grant to the city of St. Paul for the 72.44 planning, predesign, and design of the 72.45 new Roy Wilkins auditorium and exhibit 72.46 hall. 72.47 $250,000 the first year from the 72.48 workforce development fund is for a 72.49 grant to the Albert Lea port authority 72.50 to remodel a building in the Northaire 72.51 Industrial Park for use as a business 72.52 development center. This appropriation 72.53 is available until expended. 72.54 $200,000 the first year is for a grant 72.55 to Koochiching county to construct a 72.56 North American bear center called the 72.57 Big Bear Country Education and Logging 72.58 Center. 72.59 $375,000 the first year from the 72.60 workforce development fund is for 72.61 grants of $125,000 each to the counties 72.62 of Blue Earth, Martin, and St. Louis 72.63 for a pilot project incubated by the 72.64 county with the rural advanced business 73.1 facilitation program. A grant must be 73.2 matched with nonstate money for up to 73.3 the first $50,000 of a grant. The 73.4 funds not spent the first year are 73.5 available the second. 73.6 $25,000 in fiscal year 2002 is to the 73.7 commissioner of natural resources for 73.8 purchase and installation of a Civilian 73.9 Conservation Corps worker statue. This 73.10 appropriation is available until June 73.11 30, 2003. In planning for purchase, 73.12 siting, and installation of the statue, 73.13 the commissioner shall consult with the 73.14 North Star chapter of the National 73.15 Association of Civilian Conservation 73.16 Corps Alumni and with the Capitol Area 73.17 Architectural and Planning Board. The 73.18 statue may be located on publicly owned 73.19 land. 73.20 $50,000 in fiscal year 2002 and $50,000 73.21 in fiscal year 2003 are for grants from 73.22 the Minnesota investment fund by the 73.23 commissioner to the West Central Growth 73.24 Alliance to establish a regional 73.25 marketing plan, economic development 73.26 pilot project in Big Stone, Chippewa, 73.27 Kandiyohi, Lac Qui Parle, Meeker, 73.28 Renville, Stevens, Swift, and Yellow 73.29 Medicine counties. The annual grant 73.30 must be matched each year by $60,000 in 73.31 nonstate money. This is a one-time 73.32 appropriation. 73.33 $97,000 the first year from the 73.34 workforce development fund is for a 73.35 grant to Neighborhood Development 73.36 Center, Inc. The funds not spent the 73.37 first year are available the second. 73.38 $1,000,000 the first year from the 73.39 workforce development fund is for 73.40 catalyst grants to local governments 73.41 and recognized Indian tribal 73.42 governments to expand Internet access 73.43 in areas of rural Minnesota that are 73.44 otherwise unlikely to receive access 73.45 through existing technology. The funds 73.46 not spent the first year are available 73.47 the second. 73.48 The remaining $200,000 of the match 73.49 required under Laws 1998, chapter 404, 73.50 section 23, subdivision 23, for the 73.51 United States Hockey Hall of Fame, may 73.52 be met through in-kind contributions. 73.53 $500,000 the first year from the 73.54 workforce development fund is for a 73.55 grant to the metropolitan economic 73.56 development association for continuing 73.57 minority business development programs 73.58 in the metropolitan area and 73.59 encouraging minority business 73.60 development throughout the state. 73.61 Subd. 3. Workforce Development 73.62 Division 11,376,000 9,276,000 73.63 Summary by Fund 74.1 General 8,226,000 8,226,000 74.2 Workforce 74.3 Development Fund 2,400,000 300,000 74.4 TANF 750,000 750,000 74.5 $8,076,000 the first year and 74.6 $8,076,000 the second year are for the 74.7 job skills partnership program. If the 74.8 appropriation for either year is 74.9 insufficient, the appropriation for the 74.10 other year is available. It is the 74.11 intention of the legislature that this 74.12 program base funding be $8,076,000 per 74.13 year in the 2002-2003 biennium. This 74.14 appropriation does not cancel. 74.15 $600,000 the first year is from the 74.16 workforce development fund is to the 74.17 port authority of the city of St. Paul 74.18 for the customized job training program 74.19 of the port authority. The port 74.20 authority shall coordinate with Ramsey 74.21 county workforce solutions to more 74.22 effectively link St. Paul employers and 74.23 job seekers. This appropriation is 74.24 available until spent. 74.25 $750,000 the first year and $750,000 74.26 the second are from the TANF fund to 74.27 the commissioner for the health care 74.28 and human services training program. 74.29 $1,000,000 the first year is from the 74.30 workforce development fund for a grant 74.31 to Lifetrack Resources for its 74.32 immigrant/refugee collaborative 74.33 programs, including those related to 74.34 job-seeking skills and workplace 74.35 orientation, intensive job development, 74.36 functional work English, and on-site 74.37 job coaching, to provide assistance to 74.38 Somali immigrants. 74.39 $250,000 the first year and $250,000 74.40 the second year from the workforce 74.41 development fund are for a grant to 74.42 WomenVenture for women's business 74.43 development programs. 74.44 $150,000 the first year and $150,000 74.45 the second year are for a grant to Twin 74.46 Cities Rise, to provide job training to 74.47 hard-to-train individuals. 74.48 $300,000 the first year and $300,000 74.49 the second year from the workforce 74.50 development fund are for a grant to 74.51 Twin Cities Rise, to provide job 74.52 training to hard-to-train individuals. 74.53 This is a one-time appropriation. 74.54 Subd. 4. Minnesota Trade Office 74.55 2,350,000 2,389,000 74.56 Subd. 5. Tourism 74.57 10,794,000 10,486,000 75.1 $375,000 the first year and $375,000 75.2 the second year are for operation of 75.3 the travel information centers. Of 75.4 this amount, $150,000 the first year is 75.5 a one-time appropriation for the 75.6 planning, design, site selection, and 75.7 construction of a travel information 75.8 center to be located within Region 6W. 75.9 Priority shall be given to the center 75.10 located in Worthington and the Upper 75.11 Minnesota Valley Information Center. 75.12 $400,000 the first year is for grants 75.13 to plan and promote the 2004 Grand 75.14 Excursion. Grants may be made to state 75.15 agencies and local units of government 75.16 and state or local nonprofit entities. 75.17 A local match may be required. This 75.18 appropriation is available until 75.19 expended. 75.20 $829,000 the first year and $829,000 75.21 the second year are for the Minnesota 75.22 film board. $329,000 of this 75.23 appropriation in each year is available 75.24 only upon receipt by the board of $1 in 75.25 matching contributions of money or 75.26 in-kind from nonstate sources for every 75.27 $3 provided by this appropriation. Of 75.28 this amount, $500,000 the first year 75.29 and $500,000 the second year are for 75.30 grants to the Minnesota film board for 75.31 a film production jobs fund to 75.32 stimulate feature film production in 75.33 Minnesota. This appropriation is to 75.34 reimburse film and television producers 75.35 for up to ten percent of the documented 75.36 wages and cost of services that they 75.37 paid to Minnesotans for film and 75.38 television production after January 1, 75.39 2001. 75.40 To develop maximum private sector 75.41 involvement in tourism, $3,500,000 the 75.42 first year and $3,500,000 the second 75.43 year of the amounts appropriated for 75.44 marketing activities are contingent on 75.45 receipt of an equal contribution from 75.46 nonstate sources that have been 75.47 certified by the commissioner. Up to 75.48 one-half of the match may be given in 75.49 in-kind contributions. 75.50 In order to maximize marketing grant 75.51 benefits, the commissioner must give 75.52 priority for joint venture marketing 75.53 grants to organizations with year-round 75.54 sustained tourism activities. For 75.55 programs and projects submitted, the 75.56 commissioner must give priority to 75.57 those that encompass two or more areas 75.58 or that attract nonresident travelers 75.59 to the state. 75.60 If an appropriation for either year for 75.61 grants is not sufficient, the 75.62 appropriation for the other year is 75.63 available for it. 75.64 The commissioner may use grant dollars 75.65 or the value of in-kind services to 76.1 provide the state contribution for the 76.2 partnership program. 76.3 Any unexpended money from general fund 76.4 appropriations made under this 76.5 subdivision does not cancel but must be 76.6 placed in a special advertising account 76.7 for use by the office of tourism to 76.8 purchase additional media. 76.9 Subd. 6. Administration 76.10 3,255,000 2,307,000 76.11 The base amount of funding used for 76.12 consulting contracts by the department 76.13 of trade and economic development is 76.14 reduced by $216,000, which must come 76.15 from departmental consulting funds. 76.16 Subd. 7. Information and Analysis 76.17 1,631,000 1,668,000 76.18 Sec. 3. MINNESOTA TECHNOLOGY, INC. 8,075,000 7,075,000 76.19 $6,105,000 the first year and 76.20 $6,105,000 the second year are for 76.21 transfer from the general fund to the 76.22 Minnesota Technology, Inc. fund. 76.23 $95,000 the first year and $95,000 the 76.24 second year are for grants to Minnesota 76.25 Inventors Congress. This is a one-time 76.26 appropriation and is not added to the 76.27 agency's budget base. 76.28 $875,000 the first year and $875,000 76.29 the second year are for grants to 76.30 Minnesota Project Innovation. This is 76.31 a one-time appropriation and is not 76.32 added to the agency's budget base. 76.33 $1,000,000 the first year is to 76.34 Minnesota Technology, Inc. for a grant 76.35 to Minnesota Investment Network 76.36 Corporation for the purposes of its 76.37 seed capital funds. The appropriation 76.38 does not cancel. 76.39 Sec. 4. ECONOMIC SECURITY 76.40 Subdivision 1. Total 76.41 Appropriation 43,979,000 41,876,000 76.42 Summary by Fund 76.43 General 37,277,000 37,406,000 76.44 Workforce 76.45 Development Fund 6,702,000 4,470,000 76.46 Subd. 2. Rehabilitation Services 24,653,000 23,686,000 76.47 Summary by Fund 76.48 General 22,026,000 22,041,000 76.49 Workforce 76.50 Development Fund 2,627,000 1,645,000 77.1 $175,000 the first year is appropriated 77.2 from the workforce development fund for 77.3 purposes of workplace HIV education. 77.4 $800,000 the first year and $1,145,000 77.5 the second year from the workforce 77.6 development fund are for grants for 77.7 programs that provide employment 77.8 support services to persons with mental 77.9 illness under Minnesota Statutes, 77.10 sections 268A.13 and 268A.14. This is 77.11 a one-time appropriation. 77.12 $252,000 from the workforce development 77.13 fund is for a grant to Advocating 77.14 Change Together, Inc. This is a 77.15 one-time appropriation. 77.16 $1,900,000 the first year and 77.17 $1,900,000 the second year are for the 77.18 centers for independent living. 77.19 $600,000 the first year from the 77.20 workforce development fund is for 77.21 grants to the Minnesota employment 77.22 center for people who are deaf or 77.23 hard-of-hearing. This appropriation is 77.24 one-time and in addition to the amount 77.25 appropriated as the base level funding 77.26 for the 2002-2003 biennium for the 77.27 Minnesota employment center for people 77.28 who are deaf or hard-of-hearing. Funds 77.29 not expended in the first year are 77.30 available in the second. 77.31 $300,000 from the workforce development 77.32 fund is for the purpose of the 77.33 vocational rehabilitation brain injury 77.34 pilot program to be available until 77.35 June 30, 2003. This is a one-time 77.36 appropriation. 77.37 $500,000 the first year and $500,000 77.38 the second year from the workforce 77.39 development fund are to increase the 77.40 reimbursement rates for extended 77.41 employment services. This is a 77.42 one-time appropriation. 77.43 Subd. 3. State Services for the Blind 77.44 4,918,000 5,023,000 77.45 Subd. 4. Workforce Services 77.46 13,908,000 12,667,000 77.47 Summary by Fund 77.48 General 9,833,000 9,842,000 77.49 Workforce 77.50 Development Fund 4,075,000 2,825,000 77.51 $1,950,000 the first year and 77.52 $1,950,000 the second year from the 77.53 workforce development fund are for 77.54 displaced homemaker programs under 77.55 Minnesota Statutes, section 268.96. 77.56 $650,000 each year is added to the base 78.1 for youth intervention grants. Of this 78.2 appropriation, $15,000 is for a grant 78.3 to the Minnesota Youth Intervention 78.4 Programs Association (YIPA) to provide 78.5 collaborative training and technical 78.6 assistance to community-based grantees 78.7 of the program. 78.8 $750,000 the first year is a one-time 78.9 appropriation from the workforce 78.10 development fund for grants to 78.11 Youthbuild programs under Minnesota 78.12 Statutes, sections 268.361 to 268.3661. 78.13 $111,000 the first year and $111,000 78.14 the second year of the amounts 78.15 appropriated for the Youth 78.16 Curfew/Truancy grant shall be used for 78.17 youth violence prevention programs to 78.18 match the federal juvenile 78.19 accountability incentive block grant. 78.20 Should a match of federal funds become 78.21 unnecessary, the amounts herein shall 78.22 revert to the Youth Curfew/Truancy 78.23 grant. 78.24 $500,000 from the workforce development 78.25 fund is for grants to nonprofit 78.26 organizations for programs that 78.27 encourage and assist women to enter 78.28 nontraditional careers in the trades 78.29 and in manual and technical 78.30 occupations. The appropriation is 78.31 one-time and available until June 30, 78.32 2003. 78.33 $100,000 the first year and $100,000 78.34 the second year from the workforce 78.35 development fund in addition to the 78.36 base are for the opportunities 78.37 industrialization center programs. 78.38 $50,000 the first year and $50,000 the 78.39 second year are for asset preservation 78.40 and facility repair. 78.41 Subd. 5. Workforce Wage Assistance 78.42 500,000 500,000 78.43 $500,000 the first year and $500,000 78.44 the second year are for the voluntary 78.45 paid parental leave pilot project. 78.46 This is a one-time appropriation. 78.47 $2,000,000 in each year of the biennium 78.48 is canceled and returned to the general 78.49 fund for the 2002-2003 biennium from 78.50 the economic security contingent 78.51 account created under Minnesota 78.52 Statutes, section 268.196, subdivision 78.53 3. 78.54 Sec. 5. INVESTMENT BOARD 3,600,000 100,000 78.55 $100,000 in each year is for the 78.56 purpose of paying staff costs related 78.57 to focusing efforts on investing in 78.58 Minnesota-based startup businesses 78.59 under new Minnesota Statutes, section 78.60 11A.26. 79.1 $3,500,000 in fiscal year 2002 is for 79.2 transfer to the high technology venture 79.3 capital account under new Minnesota 79.4 Statutes, section 11A.27. 79.5 ARTICLE 4 79.6 2001 HOUSING APPROPRIATIONS 79.7 Section 1. [HOUSING APPROPRIATIONS.] 79.8 The sums shown in the columns marked "APPROPRIATIONS" are 79.9 appropriated from the general fund, or another fund named, to 79.10 the agencies and for the purposes specified in this article, to 79.11 be available for the fiscal years indicated for each purpose. 79.12 The figure "2001," means that the appropriation or 79.13 appropriations listed under them are available for the year 79.14 ending June 30, 2001. Appropriations in this article do not 79.15 cancel and carry forward to the succeeding biennium and as 79.16 otherwise provided by law. All appropriations in this article 79.17 are one-time appropriations and are not part of the agency's 79.18 permanent budget base. 79.19 SUMMARY BY FUND 79.20 BIENNIAL 79.21 2001 TOTAL 79.22 General $ 75,000,000 $ 75,000,000 79.23 Sec. 2. HOUSING FINANCE AGENCY 71,700,000 79.24 Summary by Fund 79.25 General 71,700,000 79.26 Subdivision 1. Total Appropriation 79.27 The amounts that may be spent from this 79.28 appropriation for certain programs are 79.29 specified in the following subdivisions. 79.30 This appropriation is for transfer to 79.31 the housing development fund for the 79.32 programs specified. 79.33 Subd. 2. Challenge Program 79.34 $20,639,000 is for the economic 79.35 development and housing challenge 79.36 program created by Minnesota Statutes, 79.37 section 462A.33. 79.38 Subd. 3. Family Homeless Prevention 79.39 $2,412,000 is for the family homeless 79.40 prevention and assistance program under 79.41 Minnesota Statutes, section 462A.204. 79.42 Of this amount, $660,000 is for grants 80.1 to organizations providing case 80.2 management for persons that need 80.3 assistance to rehabilitate their rent 80.4 history and find rental housing. Case 80.5 management services include, but are 80.6 not limited to, assisting tenants in 80.7 correcting tenant screening reports, 80.8 providing intensive training and 80.9 certification for tenants, creating a 80.10 bonding program to encourage landlords 80.11 to accept high-risk tenants with poor 80.12 rent histories, paying security 80.13 deposits for high-risk tenants, and 80.14 agreeing to pay landlord expenses for 80.15 filing unlawful detainer actions. 80.16 Of this amount, $234,000 is for a 80.17 rental housing pilot project, to 80.18 encourage landlords to rent to 80.19 high-risk tenants with poor rental 80.20 histories, in the counties of Benton, 80.21 Clay, Dakota, Hennepin, Olmsted, 80.22 Ramsey, St. Louis, Sherburne, and 80.23 Stearns. For purposes of this 80.24 subdivision, a "high-risk tenant" is a 80.25 person who has had an application for 80.26 rental housing denied for reasons other 80.27 than criminal conduct or previous 80.28 destruction of rental housing. 80.29 The project shall allow local agencies 80.30 to provide payment bonds to landlords 80.31 willing to accept high-risk tenants to 80.32 reimburse them for losses caused by a 80.33 high-risk tenant. In selecting 80.34 recipients for funding under the rental 80.35 housing pilot project, priority must be 80.36 given to proposals that include 80.37 accountability provisions for 80.38 participating landlords and training 80.39 for participating tenants. Local 80.40 government units, nonprofit agencies, 80.41 or partnerships between local 80.42 government units and nonprofit agencies 80.43 are eligible for funding under the 80.44 rental housing pilot project. 80.45 Notwithstanding Minnesota Statutes, 80.46 section 462A.204, subdivisions 2 and 3, 80.47 nonprofit agencies may apply and 80.48 receive a grant without obtaining a 80.49 resolution of the county board and 80.50 grants may be made to nonprofit 80.51 agencies in the metropolitan area for 80.52 the rental housing pilot project. 80.53 Local government units must provide 80.54 matching funds, which may include 80.55 administrative costs, payment bond 80.56 funding, or property tax credits. 80.57 The agency shall consult with 80.58 representatives of the following 80.59 organizations in selecting recipients 80.60 for funding under the rental housing 80.61 pilot project: organizations who 80.62 advocate for tenants and provide tenant 80.63 training, nonprofit and for-profit 80.64 housing providers, supportive housing 80.65 service providers, and tenant screening 80.66 organizations. 81.1 The agency must report to the 81.2 legislature by January 15, 2003, on the 81.3 effectiveness of the pilot project in 81.4 securing rental housing for individuals 81.5 with poor rental histories. The report 81.6 must also address the feasibility of 81.7 and need for expanding the project 81.8 statewide and recommend best practices. 81.9 Subd. 4. School Stability 81.10 $1,000,000 is for the school stability 81.11 project under Minnesota Statutes, 81.12 section 462A.208, subdivision 8. 81.13 Subd. 5. Housing Trust Fund 81.14 $23,017,000 is for the housing trust 81.15 fund to be deposited in the housing 81.16 trust fund account created under 81.17 Minnesota Statutes, section 462A.201, 81.18 and used for the purposes provided in 81.19 that section. 81.20 Subd. 6. Affordable Rental Investment Fund 81.21 $8,249,000 is for the affordable rental 81.22 investment fund program under Minnesota 81.23 Statutes, section 462A.21, subdivision 81.24 8b, to finance the acquisition, 81.25 rehabilitation, and debt restructuring 81.26 of federally assisted rental property 81.27 and for making equity take-out loans 81.28 under Minnesota Statutes, section 81.29 462A.05, subdivision 39. The owner of 81.30 the federally assisted rental property 81.31 must agree to participate in the 81.32 applicable federally assisted housing 81.33 program and to extend any existing 81.34 low-income affordability restrictions 81.35 on the housing for the maximum term 81.36 permitted. The owner must also enter 81.37 into an agreement that gives local 81.38 units of government, housing and 81.39 redevelopment authorities, and 81.40 nonprofit housing organizations the 81.41 right of first refusal if the rental 81.42 property is offered for sale. Priority 81.43 must be given among comparable 81.44 properties to properties with the 81.45 longest remaining term under an 81.46 agreement for federal rental 81.47 assistance. Priority must also be 81.48 given among comparable rental housing 81.49 developments to developments that are 81.50 or will be owned by local government 81.51 units, a housing and redevelopment 81.52 authority, or a nonprofit housing 81.53 organization. 81.54 Subd. 7. Capacity Building Grants 81.55 $1,100,000 is for nonprofit capacity 81.56 building grants under Minnesota 81.57 Statutes, section 462A.21, subdivision 81.58 3b. 81.59 Of this amount, $1,000,000 is for 81.60 grants to agencies administering the 81.61 federal section 8 housing program for 81.62 administrative costs associated with 82.1 the establishment and operation of 82.2 section 8 home ownership programs. 82.3 Of this amount, $100,000 is for a grant 82.4 to the district 287 foundation to 82.5 assist in the development of supportive 82.6 housing to provide independent living 82.7 opportunities for adults with 82.8 disabilities. 82.9 Subd. 8. Full-Cycle Home Ownership 82.10 $1,116,000 is for the full-cycle home 82.11 ownership program under Minnesota 82.12 Statutes, section 462A.21, subdivision 82.13 26. 82.14 Of this amount, $1,000,000 is for 82.15 proposals that increase services to 82.16 non-English-speaking persons, recent 82.17 immigrants, and historically 82.18 underserved populations. 82.19 Subd. 9. Innovative and Inclusionary 82.20 Housing Program 82.21 $6,269,000 is for innovative and 82.22 inclusionary housing programs. 82.23 $2,269,000 of this appropriation is for 82.24 the nonmetropolitan innovative and 82.25 inclusionary housing program under 82.26 Minnesota Statutes, section 462A.2093. 82.27 $4,000,000 of this appropriation is for 82.28 transfer to the metropolitan council 82.29 for deposit in the inclusionary housing 82.30 account created in Minnesota Statutes, 82.31 section 473.251. The metropolitan 82.32 council may use this transfer only for 82.33 projects that are consistent with 82.34 Minnesota Statutes, section 473.255. 82.35 Subd. 10. Local Initiatives 82.36 $7,898,000 is for grants or loans under 82.37 Minnesota Statutes, section 462A.34. 82.38 Of this amount, $1,000,000 the first 82.39 year is for the manufactured home park 82.40 redevelopment program under new 82.41 Minnesota Statutes section 462A.34, 82.42 subdivision 4. This is a one-time 82.43 appropriation. 82.44 Sec. 3. CHILDREN, FAMILIES, 3,300,000 82.45 AND LEARNING 82.46 Summary by Fund 82.47 General 3,300,000 82.48 Subdivision 1. Total Appropriation 82.49 The amount that may be spent from this 82.50 appropriation for certain programs is 82.51 specified in the following subdivisions. 82.52 Subd. 2. Emergency Services 1,320,000 82.53 Up to five percent of this 82.54 appropriation may be used for 82.55 administrative costs. 83.1 Subd. 3. Transitional Housing 1,980,000 83.2 Operation 83.3 Up to five percent of this 83.4 appropriation may be used for 83.5 administrative costs. 83.6 Sec. 4. [462A.34] [LOCAL GRANT AND LOAN PROGRAMS.] 83.7 Subdivision 1. [BLOCK GRANTS.] The commissioner may make 83.8 block grants to local governments or nonprofit organizations in 83.9 partnership with local governments for housing production and 83.10 preservation programs for persons with incomes at or below 80 83.11 percent of statewide median income. The commissioner may use 83.12 existing processes for making grants or may establish a request 83.13 for proposal process specifically for this block grant program. 83.14 Grants shall be made to satisfy specific housing needs, however, 83.15 grants do not need to be tied to any particular project, but 83.16 rather, should be available to flexibly meet the identified need. 83.17 Subd. 2. [VETERANS.] The commissioner may make loans and 83.18 grants to local units of government to assist in the design, 83.19 development, construction, acquisition, or rehabilitation of 83.20 supportive and permanent housing to serve veterans and single 83.21 adults who are homeless or at risk of becoming homeless. The 83.22 loans or grants must be used for the planning and predesign of 83.23 at least two housing projects that: 83.24 (1) are located on property owned by the United States 83.25 Department of Veterans Affairs; 83.26 (2) provide or coordinate health and social services needed 83.27 by the residents; and 83.28 (3) are a collaborative partnership between community 83.29 agencies and local units of government or the federal government. 83.30 Subd. 3. [LEAD ABATEMENT.] The Minnesota housing finance 83.31 agency may make grants to cities, local units of government, and 83.32 nonprofit organizations for the purpose of implementing federal 83.33 regulations for lead hazard reduction. These grants are for the 83.34 purpose of lead hazard reduction for training, rehabilitation, 83.35 and other direct costs, including labor, materials, equipment, 83.36 and testing associated with compliance with federal lead hazard 83.37 control regulations. 84.1 Subd. 4. [MANUFACTURED HOME PARK REDEVELOPMENT 84.2 PROGRAM.] (a) The agency shall establish a manufactured home 84.3 park redevelopment program for the purpose of making 84.4 manufactured home park redevelopment grants or loans to cities, 84.5 counties, or community action programs. Cities, counties, and 84.6 community action programs may use grants and loans under this 84.7 program to: 84.8 (1) assist with the purchase of existing manufactured homes 84.9 in manufactured home parks with preference given to older 84.10 manufactured homes and buy-out assistance to be determined by 84.11 the appraised value of the home; 84.12 (2) provide down payment assistance not to exceed $10,000 84.13 per house to affected homeowners for replacement dwellings or 84.14 new manufactured homes; and 84.15 (3) make improvements in manufactured home parks as 84.16 requested by the grant recipient. 84.17 (b) Households assisted under this subdivision must have an 84.18 annual household income at or below 80 percent of the area 84.19 median household income. Cities, counties, or community action 84.20 programs receiving funds under the program must give preference 84.21 to households at or below 50 percent of the area median 84.22 household income. The agency shall attempt to make grants and 84.23 loans in approximately equal amounts to applicants outside of 84.24 and within the metropolitan area, as defined in section 473.121, 84.25 subdivision 2. 84.26 (c) The housing finance agency shall select program 84.27 participants from eligible applicants, with the first grant 84.28 being awarded no later than December 31, 2001. Participation in 84.29 this program is voluntary and no park resident shall be required 84.30 to participate. The agency shall report to the legislature by 84.31 February 1, 2003, on the effectiveness of the program. 84.32 Sec. 5. [EFFECTIVE DATE.] 84.33 Sections 1 to 4 are effective the day following final 84.34 enactment. 84.35 ARTICLE 5 84.36 HOUSING FINANCE AGENCY 85.1 Section 1. [HOUSING FINANCE AGENCY APPROPRIATIONS.] 85.2 The sums shown in the columns marked "APPROPRIATIONS" are 85.3 appropriated from the general fund, or another fund named, to 85.4 the agencies and for the purposes specified in this article, to 85.5 be available for the fiscal years indicated for each purpose. 85.6 The figures "2002" and "2003," where used in this article, mean 85.7 that the appropriation or appropriations listed under them are 85.8 available for the year ending June 30, 2002, or June 30, 2003, 85.9 respectively. 85.10 SUMMARY BY FUND 85.11 BIENNIAL 85.12 2002 2003 TOTAL 85.13 General $ 40,832,000 $ 39,832,000 $80,664,000 85.14 Sec. 2. HOUSING FINANCE AGENCY 40,832,000 39,832,000 85.15 Subdivision 1. Total Appropriation 85.16 The amounts that may be spent from this 85.17 appropriation for certain programs are 85.18 specified in the following subdivisions. 85.19 This appropriation is for transfer to 85.20 the housing development fund for the 85.21 programs specified. Except as 85.22 otherwise indicated, this transfer is 85.23 part of the agency's permanent budget 85.24 base. 85.25 Subd. 2. Rental Assistance for Mentally Ill 85.26 $1,700,000 the first year and 85.27 $1,700,000 the second year are for a 85.28 rental housing assistance program for 85.29 persons with a mental illness or 85.30 families with an adult member with a 85.31 mental illness under Minnesota 85.32 Statutes, section 462A.2097. 85.33 Subd. 3. Family Homeless Prevention 85.34 $3,250,000 the first year and 85.35 $3,250,000 the second year are for the 85.36 family homeless prevention and 85.37 assistance program under Minnesota 85.38 Statutes, section 462A.204. 85.39 Subd. 4. Homeownership Education and 85.40 Training Program 85.41 $858,000 the first year and $858,000 85.42 the second year are for the 85.43 homeownership education and training 85.44 program under Minnesota Statutes, 85.45 section 462A.209. 85.46 Subd. 5. Housing Trust Fund 85.47 $4,623,000 the first year and 86.1 $4,623,000 the second year are for the 86.2 housing trust fund to be deposited in 86.3 the housing trust fund account created 86.4 under Minnesota Statutes, section 86.5 462A.201, and used for the purposes 86.6 provided in that section. Until 86.7 January 1, 2002, the agency may 86.8 administer the appropriations under 86.9 this subdivision in the same manner as 86.10 appropriations for Minnesota Statutes, 86.11 section 462A.21, subdivision 8b, 15, 86.12 21, or 24. 86.13 Subd. 6. Affordable Rental Investment Fund 86.14 $10,000,000 the first year and 86.15 $10,000,000 the second year are for the 86.16 affordable rental investment fund 86.17 program under Minnesota Statutes, 86.18 section 462A.21, subdivision 8b. Of 86.19 this amount, $10,000,000 the first year 86.20 and $10,000,000 the second year are to 86.21 finance the acquisition, 86.22 rehabilitation, and debt restructuring 86.23 of federally assisted rental property 86.24 and for making equity take-out loans 86.25 under Minnesota Statutes, section 86.26 462A.05, subdivision 39. The owner of 86.27 the federally assisted rental property 86.28 must agree to participate in the 86.29 applicable federally assisted housing 86.30 program and to extend any existing 86.31 low-income affordability restrictions 86.32 on the housing for the maximum term 86.33 permitted. The owner must also enter 86.34 into an agreement that gives local 86.35 units of government, housing and 86.36 redevelopment authorities, and 86.37 nonprofit housing organizations the 86.38 right of first refusal if the rental 86.39 property is offered for sale. Priority 86.40 must be given among comparable 86.41 properties to properties with the 86.42 longest remaining term under an 86.43 agreement for federal rental 86.44 assistance. Priority must also be 86.45 given among comparable rental housing 86.46 developments to developments that are 86.47 or will be owned by local government 86.48 units, a housing and redevelopment 86.49 authority, or a nonprofit housing 86.50 organization. 86.51 Subd. 7. Urban Indian Housing Program 86.52 $187,000 the first year and $187,000 86.53 the second year are for the urban 86.54 Indian housing program under Minnesota 86.55 Statutes, section 462A.07, subdivision 86.56 15. 86.57 Subd. 8. Tribal Indian Housing Program 86.58 $1,683,000 the first year and 86.59 $1,683,000 the second year are for the 86.60 tribal Indian housing program under 86.61 Minnesota Statutes, section 462A.07, 86.62 subdivision 14. 86.63 Subd. 9. Capacity Building Grants 87.1 $340,000 the first year and $340,000 87.2 the second year are for nonprofit 87.3 capacity building grants under 87.4 Minnesota Statutes, section 462A.21, 87.5 subdivision 3b. 87.6 Subd. 10. Challenge Program 87.7 $13,004,000 the first year and 87.8 $12,004,000 the second year are 87.9 appropriated for transfer to the 87.10 housing development fund for the 87.11 economic development and housing 87.12 challenge program created by Minnesota 87.13 Statutes, section 462A.33. Until 87.14 January 1, 2002, the agency may 87.15 administer the appropriations under 87.16 this subdivision in the same manner as 87.17 appropriations for Minnesota Statutes, 87.18 section 462A.21, subdivision 8b, 15, 87.19 21, or 24. 87.20 Of this appropriation, $610,000 the 87.21 first year is for disaster relief for 87.22 home ownership in the areas that 87.23 sustained damage from the tornado that 87.24 struck Yellow Medicine and Chippewa 87.25 counties on July 25, 2000, and were 87.26 added to the Presidential Declaration 87.27 of Major Disaster, DR1333, by amendment 87.28 number 5 dated July 28, 2000, and 87.29 amendment number 6 dated August 14, 87.30 2000. 87.31 Of this appropriation, $390,000 the 87.32 first year is for disaster relief for 87.33 rental housing in the areas that 87.34 sustained damage from the tornado that 87.35 struck Yellow Medicine and Chippewa 87.36 counties on July 25, 2000, and were 87.37 added to the Presidential Declaration 87.38 of Major Disaster, DR1333, by amendment 87.39 number 5 dated July 28, 2000, and 87.40 amendment number 6 dated August 14, 87.41 2000. Notwithstanding Minnesota 87.42 Statutes, section 462A.21, subdivision 87.43 8b, assistance provided from this 87.44 disaster relief appropriation for the 87.45 rehabilitation of existing rental 87.46 housing may be in the form of 87.47 forgivable loans. In making forgivable 87.48 loans from this appropriation, the 87.49 agency shall determine the 87.50 circumstances, terms, and conditions 87.51 under which all or any portion of the 87.52 grant shall be repaid. This 87.53 appropriation is available until spent. 87.54 Subd. 11. Transfers 87.55 Money appropriated under this section 87.56 for disaster relief may be transferred 87.57 between the affordable rental 87.58 investment fund account and the 87.59 community rehabilitation fund account. 87.60 Sec. 3. Minnesota Statutes 2000, section 16B.61, 87.61 subdivision 1, is amended to read: 87.62 Subdivision 1. [ADOPTION OF CODE.] Subject to sections 88.1 16B.59 to 16B.75, the commissioner shall by rule establish a 88.2 code of standards for the construction, reconstruction, 88.3 alteration, and repair of buildings, governing matters of 88.4 structural materials, design and construction, fire protection, 88.5 health, sanitation, and safety, including design and 88.6 construction standards regarding heat loss control, 88.7 illumination, and climate control. The code must conform 88.8 insofar as practicable to model building codes generally 88.9 accepted and in use throughout the United States, including a 88.10 code for building conservation. In the preparation of the code, 88.11 consideration must be given to the existing statewide specialty 88.12 codes presently in use in the state. Model codes with necessary 88.13 modifications and statewide specialty codes may be adopted by 88.14 reference. The code must be based on the application of 88.15 scientific principles, approved tests, and professional 88.16 judgment. To the extent possible, the code must be adopted in 88.17 terms of desired results instead of the means of achieving those 88.18 results, avoiding wherever possible the incorporation of 88.19 specifications of particular methods or materials. To that end 88.20 the code must encourage the use of new methods and new 88.21 materials. Except as otherwise provided in sections 16B.59 to 88.22 16B.75, the commissioner shall administer and enforce the 88.23 provisions of those sections. 88.24 The commissioner shall develop rules addressing the plan 88.25 review fee assessed to similar buildings without significant 88.26 modifications including provisions for use of building systems 88.27 as specified in the industrialized/modular program specified in 88.28 section 16B.75. Additional plan review fees associated with 88.29 similar plans must be based on costs commensurate with the 88.30 direct and indirect costs of the service. 88.31 Sec. 4. Minnesota Statutes 2000, section 16B.62, 88.32 subdivision 1, is amended to read: 88.33 Subdivision 1. [MUNICIPAL ENFORCEMENT.] The State Building 88.34 Code applies statewide and supersedes the building code of any 88.35 municipality. A municipality must not by ordinance or through 88.36 development agreement require building code provisions 89.1 regulating components or systems of any residential structure 89.2 that are more restrictive than any provision of the State 89.3 Building Code. The State Building Code does not apply to 89.4 agricultural buildings except with respect to state inspections 89.5 required or rulemaking authorized by sections 103F.141, 216C.19, 89.6 subdivision 8, and 326.244. All municipalities shall adopt and 89.7 enforce the State Building Code with respect to new construction 89.8 within their respective jurisdictions. 89.9 If a city has adopted or is enforcing the State Building 89.10 Code on June 3, 1977, or determines by ordinance after that date 89.11 to undertake enforcement, it shall enforce the code within the 89.12 city. A city may by ordinance extend the enforcement of the 89.13 code to contiguous unincorporated territory not more than two 89.14 miles distant from its corporate limits in any direction. Where 89.15 two or more noncontiguous cities which have elected to enforce 89.16 the code have boundaries less than four miles apart, each is 89.17 authorized to enforce the code on its side of a line equidistant 89.18 between them. Once enforcement authority is extended 89.19 extraterritorially by ordinance, the authority may continue to 89.20 be exercised in the designated territory even though another 89.21 city less than four miles distant later elects to enforce the 89.22 code. After the extension, the city may enforce the code in the 89.23 designated area to the same extent as if the property were 89.24 situated within its corporate limits. 89.25 A city which, on June 3, 1977, had not adopted the code may 89.26 not commence enforcement of the code within or outside of its 89.27 jurisdiction until it has provided written notice to the 89.28 commissioner, the county auditor, and the town clerk of each 89.29 town in which it intends to enforce the code. A public hearing 89.30 on the proposed enforcement must be held not less than 30 days 89.31 after the notice has been provided. Enforcement of the code by 89.32 the city outside of its jurisdiction commences on the first day 89.33 of January in the year following the notice and hearing. 89.34 Municipalities may provide for the issuance of permits, 89.35 inspection, and enforcement within their jurisdictions by means 89.36 which are convenient, and lawful, including by means of 90.1 contracts with other municipalities pursuant to section 471.59, 90.2 and with qualified individuals. The other municipalities or 90.3 qualified individuals may be reimbursed by retention or 90.4 remission of some or all of the building permit fee collected or 90.5 by other means. In areas of the state where inspection and 90.6 enforcement is unavailable from qualified employees of 90.7 municipalities, the commissioner shall train and designate 90.8 individuals available to carry out inspection and enforcement on 90.9 a fee basis. Nothing in this section prohibits a municipality 90.10 from adopting ordinances relating to zoning, subdivision, or 90.11 planning unless the ordinance conflicts with a provision of the 90.12 State Building Code. 90.13 Sec. 5. Minnesota Statutes 2000, section 16B.63, is 90.14 amended by adding a subdivision to read: 90.15 Subd. 5. [INTERPRETATIVE AUTHORITY.] To achieve uniform 90.16 and consistent application of the State Building Code, the state 90.17 building official has final interpretative authority applicable 90.18 to all codes adopted as part of the State Building Code except 90.19 for the plumbing code and the electrical code. A final 90.20 interpretative committee composed of seven members, consisting 90.21 of five certified building officials and two construction 90.22 industry representatives, shall review requests for final 90.23 interpretations relating to that field. The state building 90.24 official must establish procedures for membership of the 90.25 interpretative committees. The appropriate committee shall 90.26 review the request and make a recommendation to the state 90.27 building official for the final interpretation within 30 days of 90.28 the request. The state building official must issue an 90.29 interpretation within ten business days from the recommendation 90.30 from the review committee. A final interpretation may be 90.31 appealed within 30 days of its issuance to the commissioner 90.32 under section 16B.67. The final interpretation must be 90.33 published within ten business days of its issuance and made 90.34 available to the public. Final interpretations must be 90.35 considered for adoption as part of the State Building Code. 90.36 Sec. 6. [16B.685] [ANNUAL REPORT.] 91.1 Beginning with the first report filed by April 1, 2003, 91.2 each municipality shall annually report by April 1 to the 91.3 department, in a format prescribed by the department, all 91.4 construction and development-related fees collected by the 91.5 municipality from developers, builders, and subcontractors. The 91.6 report must include: 91.7 (1) the number and valuation of units for which fees were 91.8 paid; 91.9 (2) the amount of building permit fees, plan review fees, 91.10 administrative fees, engineering fees, infrastructure fees, and 91.11 other construction and development-related fees; and 91.12 (3) the expenses associated with the municipal activities 91.13 for which fees were collected. 91.14 Sec. 7. Minnesota Statutes 2000, section 326.90, 91.15 subdivision 1, is amended to read: 91.16 Subdivision 1. [LOCAL LICENSE PROHIBITED.] Except as 91.17 provided in sections326.991 and326.90, subdivision 2, and 91.18 326.991, a political subdivision may not require a person 91.19 licensed under sections 326.83 to 326.991 to also be licensed or 91.20 pay a registration or other fee related to licensure under any 91.21 ordinance, law, rule, or regulation of the political 91.22 subdivision. This section does not prohibit charges for 91.23 building permits or other charges not directly related to 91.24 licensure. 91.25 Sec. 8. Minnesota Statutes 2000, section 462.353, 91.26 subdivision 4, is amended to read: 91.27 Subd. 4. [FEES.] A municipality may prescribe fees 91.28 sufficient to defray the costs incurred by it in reviewing, 91.29 investigating, and administering an application for an amendment 91.30 to an official control established pursuant to sections 462.351 91.31 to 462.364 or an application for a permit or other approval 91.32 required under an official control established pursuant to those 91.33 sections. Fees as prescribedshallmust be by ordinance and 91.34 must be fair, reasonable, and proportionate to the actual cost 91.35 of the service for which the fee is imposed. A municipality 91.36 shall adopt management and accounting procedures to ensure that 92.1 fees are maintained and used only for the purpose for which they 92.2 are collected. 92.3 If a dispute arises over a specific fee imposed by a 92.4 municipality related to a specific application, the amount of 92.5 the fee must be deposited and held in escrow, and the person 92.6 aggrieved by the fee may appeal under section 462.361. An 92.7 approved application may proceed as if the fee had been paid, 92.8 pending a decision on the appeal. 92.9 Sec. 9. [462.3531] [WAIVER OF RIGHTS; PROHIBITION.] 92.10 A local government unit must not require a contractor, 92.11 builder, or developer of property to waive a right possessed by 92.12 the contractor, builder, or developer as a condition of 92.13 receiving any approval for the development or construction of a 92.14 property. 92.15 Sec. 10. Minnesota Statutes 2000, section 462.358, 92.16 subdivision 2b, is amended to read: 92.17 Subd. 2b. [DEDICATION.] The regulations may require that a 92.18 reasonable portion of any proposed subdivision be dedicated to 92.19 the public or preserved for public use as streets, roads, 92.20 sewers, electric, gas, and water facilities, storm water 92.21 drainage and holding areas or ponds and similar utilities and 92.22 improvements. 92.23 The regulations may require that any proposed subdivision 92.24 include a certain percentage of units that are affordable across 92.25 a range of incomes. 92.26 In addition, the regulations may require that a reasonable 92.27 portion of any proposed subdivision be dedicated to the public 92.28 or preserved for conservation purposes or for public use as 92.29 parks, recreational facilities as defined and outlined in 92.30 section 471.191, playgrounds, trails, wetlands, or open space; 92.31 provided that (a) the municipality may choose to accept an 92.32 equivalent amount in cash from the applicant for part or all of 92.33 the portion required to be dedicated to such public uses or 92.34 purposes based on the fair market value of the land no later 92.35 than at the time of final approval, (b) any cash payments 92.36 received shall be placed in a special fund by the municipality 93.1 used only for the purposes for which the money was obtained, (c) 93.2 in establishing the reasonable portion to be dedicated, the 93.3 regulations may consider the open space, park, recreational, or 93.4 common areas and facilities which the applicant proposes to 93.5 reserve for the subdivision, and (d) the municipality reasonably 93.6 determines that it will need to acquire that portion of land for 93.7 the purposes stated in this paragraph as a result of approval of 93.8 the subdivision. 93.9 Sec. 11. [462.3851] [COLLAR COUNTY; AFFORDABLE HOUSING.] 93.10 Municipalities in collar counties must adopt regulations by 93.11 January 1, 2002, that, at a minimum, comply with the 93.12 affordability and other requirements of section 473.2542. For 93.13 the purpose of this subdivision, a "collar county" is a county 93.14 that is contiguous to a county within the metropolitan area as 93.15 defined in section 473.121, subdivision 2. 93.16 Sec. 12. Minnesota Statutes 2000, section 462A.05, 93.17 subdivision 14, is amended to read: 93.18 Subd. 14. [REHABILITATION LOANS.] It may agree to 93.19 purchase, make, or otherwise participate in the making, and may 93.20 enter into commitments for the purchase, making, or 93.21 participation in the making, of eligible loans for 93.22 rehabilitation to persons and families of low and moderate 93.23 income, and to owners of existing residential housing for 93.24 occupancy by such persons and families, for the rehabilitation 93.25 of existing residential housing owned by them. The loans may be 93.26 insured or uninsured and may be made with security, or may be 93.27 unsecured, as the agency deems advisable. The loans may be in 93.28 addition to or in combination with long-term eligible mortgage 93.29 loans under subdivision 3. They may be made in amounts 93.30 sufficient to refinance existing indebtedness secured by the 93.31 property, if refinancing is determined by the agency to be 93.32 necessary to permit the owner to meet the owner's housing cost 93.33 without expending an unreasonable portion of the owner's income 93.34 thereon. No loan for rehabilitation shall be made unless the 93.35 agency determines that the loan will be used primarily to make 93.36 the housing more desirable to live in, to increase the market 94.1 value of the housing, for compliance with state, county or 94.2 municipal building, housing maintenance, fire, health or similar 94.3 codes and standards applicable to housing, or to accomplish 94.4 energy conservation related improvements. In unincorporated 94.5 areas and municipalities not having codes and standards, the 94.6 agency may, solely for the purpose of administering the 94.7 provisions of this chapter, establish codes and standards. 94.8 Except for accessibility improvements under this subdivision and 94.9 subdivisions 14a and 24, clause (1), no secured loan for 94.10 rehabilitation of any property shall be made in an amount which, 94.11 with all other existing indebtedness secured by the property, 94.12 would exceed 110 percent of its market value, as determined by 94.13 the agency. No loan under this subdivision shall be denied 94.14 solely because the loan will not be used for placing the 94.15 residential housing in full compliance with all state, county, 94.16 or municipal building, housing maintenance, fire, health, or 94.17 similar codes and standards applicable to housing. 94.18 Rehabilitation loans shall be made only when the agency 94.19 determines that financing is not otherwise available, in whole 94.20 or in part, from private lenders upon equivalent terms and 94.21 conditions. Accessibility rehabilitation loans authorized under 94.22 this subdivision may be made to eligible persons and families 94.23 without limitations relating to the maximum incomes of the 94.24 borrowers if: 94.25 (1) the borrower or a member of the borrower's family 94.26 requires a level of care provided in a hospital, skilled nursing 94.27 facility, or intermediate care facility for persons with mental 94.28 retardation or related conditions; 94.29 (2) home care is appropriate; and 94.30 (3) the improvement will enable the borrower or a member of 94.31 the borrower's family to reside in the housing. 94.32 The agency may waive any requirement that the housing units in a 94.33 residential housing development be rented to persons of low and 94.34 moderate income if the development consists of four or less 94.35 dwelling units, one of which is occupied by the owner. 94.36 Sec. 13. Minnesota Statutes 2000, section 462A.05, 95.1 subdivision 14a, is amended to read: 95.2 Subd. 14a. [REHABILITATION LOANS; EXISTING OWNER OCCUPIED 95.3 RESIDENTIAL HOUSING.] It may make loans to persons and families 95.4 of low and moderate income to rehabilitate or to assist in 95.5 rehabilitating existing residential housing owned and occupied 95.6 by those persons or families. No loan shall be made unless the 95.7 agency determines that the loan will be used primarily for 95.8 rehabilitation work necessary for health or safety, essential 95.9 accessibility improvements, or to improve the energy efficiency 95.10 of the dwelling. No loan for rehabilitation of owner occupied 95.11 residential housing shall be denied solely because the loan will 95.12 not be used for placing the residential housing in full 95.13 compliance with all state, county or municipal building, housing 95.14 maintenance, fire, health or similar codes and standards 95.15 applicable to housing. The amount of any loan shall not exceed 95.16 the lesser of (a) a maximum loan amount determined under rules 95.17 adopted by the agency not to exceed $20,000, or (b) the actual 95.18 cost of the work performed, or (c) that portion of the cost of 95.19 rehabilitation which the agency determines cannot otherwise be 95.20 paid by the person or family without the expenditure of an 95.21 unreasonable portion of the income of the person or family. 95.22 Loans made in whole or in part with federal funds may exceed the 95.23 maximum loan amount to the extent necessary to comply with 95.24 federal lead abatement requirements prescribed by the funding 95.25 source. In making loans, the agency shall determine the 95.26 circumstances under which and the terms and conditions under 95.27 which all or any portion of the loan will be repaid and shall 95.28 determine the appropriate security for the repayment of the 95.29 loan. Loans pursuant to this subdivision may be made with or 95.30 without interest or periodic payments.Loans made without95.31interest or periodic payments need not be repaid by the borrower95.32if the property for which the loan is made has not been sold,95.33transferred, or otherwise conveyed nor has it ceased to be the95.34principal place of residence of the borrower, within ten years95.35after the date of the loan.95.36 Sec. 14. Minnesota Statutes 2000, section 462A.20, 96.1 subdivision 3, is amended to read: 96.2 Subd. 3. [SEPARATE ACCOUNTS; TRANSFERS; LIMITS.] Whenever 96.3 any money is appropriated by the state to the agency solely for 96.4 a specified purpose or purposes, the agency shall establish a 96.5 separate bookkeeping account or accounts in the housing 96.6 development fund to record the receipt and disbursement of such 96.7 money and of the income, gain, and loss from the investment and 96.8 reinvestment thereof. Earnings from investment of any amounts 96.9 appropriated by the state to the agency for a specified purpose 96.10 or purposes may be aggregated. The costs and expenses necessary 96.11 and incidental to the development and operation of all programs 96.12 funded by state appropriations may be paid from the aggregated 96.13 earnings from investments prior to periodic distributions of 96.14 earnings to separate accounts to be used for the same purpose as 96.15 the respective original appropriation. The agency may transfer 96.16 unencumbered balances from one appropriated account to another, 96.17 provided that no money appropriated for the purpose of agency 96.18 loan programs may be transferred to an account to be used for 96.19 making grants, except that money appropriated for the purpose of 96.20 section 462A.05, subdivision 14a, may be transferred for the 96.21 purpose of section 462A.05, subdivision 15a. 96.22 Sec. 15. Minnesota Statutes 2000, section 462A.201, 96.23 subdivision 2, is amended to read: 96.24 Subd. 2. [LOW-INCOME HOUSING.] (a) The agency may, in 96.25 consultation with the advisory committee, use money from the 96.26 housing trust fund account for operational costs for providing 96.27 permanent housing and to provide loans or grants for projects 96.28 for the development, construction, acquisition, preservation, 96.29 and rehabilitation of low-income rental and limited equity 96.30 cooperative housing units, including temporary and transitional 96.31 housing, and homes for ownership. For purposes of this section, 96.32 "transitional housing" means housing that is provided for a 96.33 limited duration not exceeding 24 months, except that up to 96.34 one-third of the residents may live in the housing for up to 36 96.35 months. Loans or grants for residential housing for migrant 96.36 farmworkers may be made under this section. No more than 20 97.1 percent of available funds may be used for home ownership 97.2 projects. 97.3 (b) A rental or limited equity cooperative permanent 97.4 housing project must meet one of the following income tests: 97.5 (1) at least 75 percent of the rental and cooperative units 97.6 must be rented to or cooperatively owned by persons and families 97.7 whose income does not exceed 30 percent of the median family 97.8 income for the metropolitan area as defined in section 473.121, 97.9 subdivision 2; or 97.10 (2) all of the units funded by the housing trust fund 97.11 account must be used for the benefit of persons and families 97.12 whose income does not exceed 30 percent of the median family 97.13 income for the metropolitan area as defined in section 473.121, 97.14 subdivision 2. 97.15 The median family income may be adjusted for families of 97.16 five or more. 97.17 (c) Homes for ownership must be owned or purchased by 97.18 persons and families whose income does not exceed 50 percent of 97.19 the metropolitan area median income, adjusted for family size. 97.20 (d) In making the grants, the agency shall determine the 97.21 terms and conditions of repayment and the appropriate security, 97.22 if any, should repayment be required. To promote the geographic 97.23 distribution of grants and loans, the agency may designate a 97.24 portion of the grant or loan awards to be set aside for projects 97.25 located in specified congressional districts or other 97.26 geographical regions specified by the agency. The agency may 97.27 adopt rules for awarding grants and loans under this subdivision. 97.28 Sec. 16. Minnesota Statutes 2000, section 462A.2097, is 97.29 amended to read: 97.30 462A.2097 [RENTAL HOUSING.] 97.31 The agency may establish a tenant-based or project-based 97.32 rental housing assistance program for persons of low income or 97.33 for persons with a mental illness or families that include an 97.34 adult family member with a mental illness. Rental assistance 97.35 may be in the form of direct rental subsidies for housing for 97.36 persons or families with incomes, at the time of initial 98.1 occupancy, of up to 50 percent of the area median income as 98.2 determined by the United States Department of Housing and Urban 98.3 Development, adjusted for families of five or more. Housing for 98.4 the mentally ill must be operated in coordination with social 98.5 service providers who provide services requested by tenants. 98.6 Direct rental subsidies must be administered by the agency for 98.7 the benefit of eligible tenants. Financial assistance provided 98.8 under this section must be in the form of vendor payments 98.9 whenever possible. 98.10 Sec. 17. Minnesota Statutes 2000, section 462A.21, 98.11 subdivision 10, is amended to read: 98.12 Subd. 10. [CERTAIN APPROPRIATIONS AVAILABLE UNTIL 98.13 EXPENDED.] Notwithstanding the repeal of section 462A.26 and the 98.14 provisions of section 16A.28 or any other law relating to lapse 98.15 of an appropriation, the appropriations made to the agency by 98.16 the legislature in 1976 and subsequent years are available until 98.17 fully expended, and the allocations provided in the 98.18 appropriations remain in effect. Earnings from investments of 98.19 any of the amounts appropriated to the agency are appropriated 98.20 to the agency to be used for the same purposes as the respective 98.21 original appropriations, after payment of the costs and expenses 98.22 necessary and incidental to the development and operation of the 98.23 programs authorized under this chapter. 98.24 Sec. 18. Minnesota Statutes 2000, section 462A.21, is 98.25 amended by adding a subdivision to read: 98.26 Subd. 28. [FAMILY STABILIZATION DEMONSTRATION 98.27 PROJECT.] The agency may spend money for the purposes of section 98.28 462A.205 and may pay costs and expenses necessary and incidental 98.29 to the development and operation of the project. 98.30 Sec. 19. [473.2541] [DEFINITIONS.] 98.31 Subdivision 1. [SCOPE.] For the purpose of sections 98.32 473.2541 and 473.2542, the terms defined in this section have 98.33 the meanings given them. 98.34 Subd. 2. [AFFORDABLE RENTAL HOUSING.] "Affordable rental 98.35 housing" means rental housing units having a monthly rent of no 98.36 more than 30 percent of a specified area median income divided 99.1 by 12. 99.2 Subd. 3. [AFFORDABLE HOMES.] "Affordable homes" means 99.3 single-family homes having a monthly mortgage payment of 99.4 principal and interest of no more than the amount determined by 99.5 30 percent of a specified area median income divided by 12. 99.6 Subd. 4. [DEVELOPMENT.] "Development" means a new 99.7 construction or reconstruction development of single-family or 99.8 multiple-family residences containing a total of 20 or more 99.9 units located in the metropolitan area on a single parcel of 99.10 land. 99.11 Subd. 5. [MUNICIPALITY.] "Municipality" means a statutory 99.12 or home rule charter city or town in the metropolitan area. 99.13 Subd. 6. [PUBLIC SUBSIDY.] "Public subsidy" means funds 99.14 provided to a specifically identified project from the 99.15 inclusionary housing account to assist in financing the 99.16 construction of the development. 99.17 Sec. 20. [473.2542] [AFFORDABLE HOUSING.] 99.18 Subdivision 1. [OPTIONAL AFFORDABLE HOUSING.] A developer 99.19 may choose whether or not to comply with the provisions of this 99.20 section. If a developer chooses to comply, the development must 99.21 contain on the same parcel of land at least 20 percent 99.22 affordable rental housing or affordable homes as provided in 99.23 this section. The affordable housing must blend architecturally 99.24 with the remainder of the development. 99.25 Subd. 2. [PRIVATE DEVELOPMENT.] For a development without 99.26 public subsidy, affordable housing or affordable rental housing 99.27 and affordable homes shall be determined using 80 percent of the 99.28 area median income. 99.29 Subd. 3. [PUBLIC SUBSIDY.] For a development of rental 99.30 housing receiving a public subsidy from the inclusionary housing 99.31 account, ten percent of the units must be determined affordable 99.32 at 30 percent of area median income, and ten percent must be 99.33 determined affordable using 50 percent of area median income. 99.34 For home ownership units receiving a public subsidy, 99.35 affordability is determined using 60 percent of area median 99.36 income. 100.1 Subd. 4. [DENSITY BONUS.] If a developer chooses to comply 100.2 with the provisions of this section, then a development 100.3 containing at least the minimum number of affordable units must 100.4 receive a density bonus of at least 30 percent more units to be 100.5 built than would otherwise be permitted. 100.6 Subd. 5. [EXCEPTION.] A development complies with the 100.7 affordability requirement of this section even if that 100.8 development does not contain the requisite affordable rental 100.9 housing or affordable homes, if land adjacent to the development 100.10 is given by the developer to a local housing authority or 100.11 nonprofit developer and the requisite affordable units are 100.12 constructed on that land. 100.13 Subd. 6. [REGULATORY FLEXIBILITY.] A municipality shall 100.14 assist a development in being affordable by providing at least 100.15 one of the following: 100.16 (1) reduced setback and parking requirements; 100.17 (2) decreased road width; 100.18 (3) flexibility in site development standards or zoning 100.19 code requirements; 100.20 (4) waiver of permit or impact fees; 100.21 (5) fast-track permitting; or 100.22 (6) any other regulatory incentive that would result in 100.23 identifiable cost avoidance or reductions and that contributes 100.24 significantly to the economic feasibility of affordable housing. 100.25 Subd. 7. [RIGHT OF FIRST REFUSAL.] For 90 days after a 100.26 development has received final approval, the local housing 100.27 authority has the first option to purchase the affordable units 100.28 in a development at fair market value, followed in order of 100.29 preference by the county housing and redevelopment authority and 100.30 nonprofit organizations. This subdivision does not apply to 100.31 developments using federal tax credits. 100.32 Subd. 8. [RENTAL LONG-TERM AFFORDABILITY.] Those housing 100.33 units required to be affordable rental housing units by this 100.34 section must remain at affordable rents for at least the first 100.35 15 years after initial occupancy of the unit. 100.36 Sec. 21. Minnesota Statutes 2000, section 473.255, 101.1 subdivision 1, is amended to read: 101.2 Subdivision 1. [DEFINITIONS.] (a) "Inclusionary housing 101.3 development" means a new construction development, including101.4owner-occupied or rental housing, or a combination of both, with101.5a variety of prices and designs which serve families with a101.6range of incomes and housing needscomplying with the 101.7 affordability requirements of section 473.2542. 101.8 (b) "Municipality" means a statutory or home rule charter 101.9 city or town participating in the local housing incentives 101.10 program under section 473.254. 101.11 Sec. 22. Minnesota Statutes 2000, section 473.255, 101.12 subdivision 2, is amended to read: 101.13 Subd. 2. [APPLICATION CRITERIA.] The metropolitan council 101.14 must give preference to economically viable proposals to the 101.15 degree that they: (1) use innovative building techniques or 101.16 materials to lower construction costs while maintaining high 101.17 quality construction and livability; (2) are located in 101.18 communities that have demonstrated a willingness to waive local 101.19 restrictions which otherwise would increase costs of 101.20 construction; and (3)include units affordable to households101.21with incomes at or below 80 percent of area median incomemeet 101.22 the affordability and other requirements of section 473.2542. 101.23Priority shall be given to proposals where at least 15101.24percent of the owner-occupied units are affordable to households101.25at or below 60 percent of the area annual median income and at101.26least ten percent of the rental units are affordable to101.27households at or below 30 percent of area annual median income.101.28An inclusionary housing development may include resale101.29limitations on its affordable units. The limitations may101.30include a minimum ownership period before a purchaser may profit101.31on the sale of an affordable unit.101.32 Cost savings from regulatory incentives must be reflected 101.33 in the sale of all residences in an inclusionary development. 101.34 Sec. 23. Laws 2000, chapter 488, article 8, section 2, 101.35 subdivision 6, is amended to read: 101.36 Subd. 6. Economic Support Grants 102.1 30,509,000 25,368,000 102.2 The amounts that may be spent from this 102.3 appropriation for each purpose are as 102.4 follows: 102.5 [ASSISTANCE TO FAMILIES GRANTS TANF 102.6 FORECAST ADJUSTMENT.] The federal 102.7 Temporary Assistance to Needy Families 102.8 (TANF) block grant fund appropriated to 102.9 the commissioner of human services in 102.10 Laws 1999, chapter 245, article 1, 102.11 section 2, subdivision 10, for MFIP 102.12 cash grants are reduced by $37,513,000 102.13 in fiscal year 2000 and $30,217,000 in 102.14 fiscal year 2001. 102.15 [FEDERAL TANF FUNDS.] (1) In addition 102.16 to the Federal Temporary Assistance for 102.17 Needy Families (TANF) block grant funds 102.18 appropriated to the commissioner of 102.19 human services in Laws 1999, chapter 102.20 245, article 1, section 2, subdivision 102.21 10, federal TANF funds are appropriated 102.22 to the commissioner in amounts up to 102.23 $20,000,000 in fiscal year 2000 and 102.24 $80,440,000 in fiscal year 2001. In 102.25 addition to these funds, the 102.26 commissioner may draw or transfer any 102.27 other appropriations of federal TANF 102.28 funds or transfers of federal TANF 102.29 funds that are enacted into state law. 102.30 (2) Of the amounts in clause (1), 102.31 $19,680,000 in fiscal year 2001 is for 102.32 the local intervention grants program 102.33 under Minnesota Statutes, section 102.34 256J.625 and related grant programs and 102.35 shall be expended as follows: 102.36 (a) $500,000 in fiscal year 2001 is for 102.37 a grant to the Southeast Asian MFIP 102.38 services collaborative to replicate in 102.39 a second location an existing model of 102.40 an intensive intervention transitional 102.41 employment training project which 102.42 serves TANF-eligible recipients and 102.43 which moves refugee and immigrant 102.44 welfare recipients unto unsubsidized 102.45 employment and leads to economic 102.46 self-sufficiency. This is a one-time 102.47 appropriation. 102.48 (b) $500,000 in fiscal year 2001 is for 102.49 nontraditional career assistance and 102.50 training programs under Minnesota 102.51 Statutes, section 256K.30, subdivision 102.52 4. This is a one-time appropriation. 102.53 (c) $18,680,000 is for local 102.54 intervention grants for 102.55 self-sufficiency program under 102.56 Minnesota Statutes, section 256J.625. 102.57 For fiscal years 2002 and 2003 the 102.58 commissioner of finance shall ensure 102.59 that the base level funding for the 102.60 local intervention grants program is 102.61 $27,180,000 each year. 102.62 (3) Of the amounts in clause (2), 102.63 paragraph (c) for local intervention 103.1 grants, $7,000,000 in fiscal year 2001 103.2 shall be transferred to the 103.3 commissioner of health for distribution 103.4 to county boards according to the 103.5 formula in Minnesota Statutes, section 103.6 256J.625, subdivision 3, to be used by 103.7 county public health boards to serve 103.8 families with incomes at or below 200 103.9 percent of the federal poverty 103.10 guidelines, in the manner specified by 103.11 Minnesota Statutes, section 145A.16, 103.12 subdivision 3, clauses (2) through 103.13 (6). Training, evaluation and 103.14 technical assistance shall be provided 103.15 in accordance with Minnesota Statutes, 103.16 section 145A.16, subdivisions 5 to 7. 103.17 For fiscal years 2002 and 2003 the 103.18 commissioner of finance shall ensure 103.19 that the base level funding for this 103.20 activity is $7,000,000 each year. 103.21 (4) Of the amounts in clause (1), 103.22 $250,000 in fiscal year 2001 is 103.23 appropriated to the commissioner to 103.24 contract with the board of trustees of 103.25 the Minnesota state colleges and 103.26 universities to provide tuition waivers 103.27 to employees of health care and human 103.28 services providers located in the state 103.29 that are members of qualifying 103.30 consortia operating under Minnesota 103.31 Statutes, sections 116L.10 to 116L.15. 103.32 (5) Of the amounts in clause (1), 103.33 $320,000 in fiscal year 2001 is for 103.34 training job counselors about the MFIP 103.35 program. For fiscal years 2002 and 103.36 2003 the commissioner of finance shall 103.37 ensure that the base level funding for 103.38 employment services includes $320,000 103.39 each year for this activity. The 103.40 appropriations in this clause shall not 103.41 become part of the base for the 103.42 2004-2005 biennium. 103.43 (6) Of the amounts in clause (1), 103.44 $1,000,000 in fiscal year 2001 is for 103.45 out-of-wedlock pregnancy prevention 103.46 funds to serve children in 103.47 TANF-eligible families under Minnesota 103.48 Statutes, section 256K.35. For fiscal 103.49 years 2002 and 2003 the commissioner of 103.50 finance shall ensure that the base 103.51 level funding for this program is 103.52 $1,000,000 each year. The 103.53 appropriations in this clause shall not 103.54 become part of the base for the 103.55 2004-2005 biennium. 103.56 (7) Of the amounts in clause (1), 103.57 $1,000,000 in fiscal year 2001 is to 103.58 provide services to TANF-eligible 103.59 families who are participating in the 103.60 supportive housing and managed care 103.61 pilot project under Minnesota Statutes, 103.62 section 256K.25. For fiscal years 2002 103.63 and 2003 the commissioner of finance 103.64 shall ensure that the base level 103.65 funding for this project is $1,000,000 103.66 each year. The appropriations in this 103.67 clause shall not become part of the 104.1 base for this project for the 2004-2005 104.2 biennium. 104.3 [TANF TRANSFER TO SOCIAL SERVICES.] 104.4 $7,500,000 is transferred from the 104.5 state's federal TANF block grant to the 104.6 state's federal Title XX block grant in 104.7 fiscal year 2001 and in fiscal year 104.8 2002, for purposes of increasing 104.9 services for families with children 104.10 whose incomes are at or below 200 104.11 percent of the federal poverty 104.12 guidelines. Notwithstanding section 6, 104.13 this paragraph expires June 30, 2002. 104.14 [TANF MOE.] (a) In order to meet the 104.15 basic maintenance of effort (MOE) 104.16 requirements of the TANF block grant 104.17 specified under United States Code, 104.18 title 42, section 609(a)(7), the 104.19 commissioner may only report nonfederal 104.20 money expended for allowable activities 104.21 listed in the following clauses as TANF 104.22 MOE expenditures: 104.23 (1) MFIP cash and food assistance 104.24 benefits under Minnesota Statutes, 104.25 chapter 256J; 104.26 (2) the child care assistance programs 104.27 under Minnesota Statutes, sections 104.28 119B.03 and 119B.05, and county child 104.29 care administrative costs under 104.30 Minnesota Statutes, section 119B.15; 104.31 (3) state and county MFIP 104.32 administrative costs under Minnesota 104.33 Statutes, chapters 256J and 256K; 104.34 (4) state, county, and tribal MFIP 104.35 employment services under Minnesota 104.36 Statutes, chapters 256J and 256K; and 104.37 (5) expenditures made on behalf of 104.38 noncitizen MFIP recipients who qualify 104.39 for the medical assistance without 104.40 federal financial participation program 104.41 under Minnesota Statutes, section 104.42 256B.06, subdivision 4, paragraphs (d), 104.43 (e), and (j). 104.44 (b) The commissioner shall ensure that 104.45 sufficient qualified nonfederal 104.46 expenditures are made each year to meet 104.47 the state's TANF MOE requirements. For 104.48 the activities listed in paragraph (a), 104.49 clauses (2) to (6), the commissioner 104.50 may only report expenditures that are 104.51 excluded from the definition of 104.52 assistance under Code of Federal 104.53 Regulations, title 45, section 260.31. 104.54 If nonfederal expenditures for the 104.55 programs and purposes listed in 104.56 paragraph (a) are insufficient to meet 104.57 the state's TANF MOE requirements, the 104.58 commissioner shall recommend additional 104.59 allowable sources of nonfederal 104.60 expenditures to the legislature, if the 104.61 legislature is or will be in session to 104.62 take action to specify additional 104.63 sources of nonfederal expenditures for 105.1 TANF MOE before a federal penalty is 105.2 imposed. The commissioner shall 105.3 otherwise provide notice to the 105.4 legislative commission on planning and 105.5 fiscal policy under paragraph (d). 105.6 (c) If the commissioner uses authority 105.7 granted under Laws 1999, chapter 245, 105.8 article 1, section 10, or similar 105.9 authority granted by a subsequent 105.10 legislature, to meet the state's TANF 105.11 MOE requirements in a reporting period, 105.12 the commissioner shall inform the 105.13 chairs of the appropriate legislative 105.14 committees about all transfers made 105.15 under that authority for this purpose. 105.16 (d) If the commissioner determines that 105.17 nonfederal expenditures for the 105.18 programs under Minnesota Statutes, 105.19 section 256J.025, are insufficient to 105.20 meet TANF MOE expenditure requirements, 105.21 and if the legislature is not or will 105.22 not be in session to take timely action 105.23 to avoid a federal penalty, the 105.24 commissioner may report nonfederal 105.25 expenditures from other allowable 105.26 sources as TANF MOE expenditures after 105.27 the requirements of this paragraph are 105.28 met. 105.29 The commissioner may report nonfederal 105.30 expenditures in addition to those 105.31 specified under paragraph (a) as 105.32 nonfederal TANF MOE expenditures, but 105.33 only ten days after the commissioner of 105.34 finance has first submitted the 105.35 commissioner's recommendations for 105.36 additional allowable sources of 105.37 nonfederal TANF MOE expenditures to the 105.38 members of the legislative commission 105.39 on planning and fiscal policy for their 105.40 review. 105.41 (e) The commissioner of finance shall 105.42 not incorporate any changes in federal 105.43 TANF expenditures or nonfederal 105.44 expenditures for TANF MOE that may 105.45 result from reporting additional 105.46 allowable sources of nonfederal TANF 105.47 MOE expenditures under the interim 105.48 procedures in paragraph (d) into the 105.49 February or November forecasts required 105.50 under Minnesota Statutes, section 105.51 16A.103, unless the commissioner of 105.52 finance has approved the additional 105.53 sources of expenditures under paragraph 105.54 (d). 105.55 (f) The provisions of paragraphs (a) to 105.56 (e) supersede any contrary provisions 105.57 in Laws 1999, chapter 245, article 1, 105.58 section 2, subdivision 10. 105.59 (g) The provisions of Minnesota 105.60 Statutes, section 256.011, subdivision 105.61 3, which require that federal grants or 105.62 aids secured or obtained under that 105.63 subdivision be used to reduce any 105.64 direct appropriations provided by law 105.65 do not apply if the grants or aids are 106.1 federal TANF funds. 106.2 (h) Notwithstanding section 6 of this 106.3 article, paragraphs (a) to (g) expire 106.4 June 30, 2003. 106.5 (i) Paragraphs (a) to (h) are effective 106.6 the day following final enactment. 106.7 (a) Assistance to Families Grants 106.8 9,628,000 (2,305,000) 106.9 (b) Work Grants 106.10 -0- (250,000) 106.11 (c) AFDC and Other Assistance 106.12 20,000,000 30,734,000 106.13 [TRANSFERS TO MINNESOTA HOUSING FINANCE 106.14 AGENCY.] (a) By June 30, 2001, the 106.15 commissioner shall transfer $50,000,000 106.16 of the general funds appropriated under 106.17 this paragraph to the Minnesota housing 106.18 finance agency for transfer to the 106.19 housing development fund. The program 106.20 funded by this transfer shall be known 106.21 as the "Bruce F. Vento Year 2000 106.22 Affordable Housing Program." Up to 106.23 $15,000,000 may be transferred in 106.24 fiscal year 2000. 106.25 (b) Of the funds transferred in 106.26 paragraph (a), $5,000,000 in fiscal 106.27 year 2001 and $15,000,000 in fiscal 106.28 year 2002 is for a loan to Habitat for 106.29 Humanity of Minnesota, Inc. The loan 106.30 shall be an interest-free deferred 106.31 loan. The loan shall become due and 106.32 payable in the event and to the extent 106.33 that Habitat for Humanity of Minnesota, 106.34 Inc. does not invest repayments and 106.35 prepayment of mortgage loans financed 106.36 with this appropriation in new 106.37 mortgages for additional homebuyers 106.38 through Habitat for Humanity of 106.39 Minnesota, Inc. To the extent 106.40 practicable, funding must be allocated 106.41 to Habitat for Humanity chapters on the 106.42 basis of the number of MFIP households 106.43 residing within a chapter's service 106.44 area compared to the statewide total of 106.45 MFIP households and on the basis of a 106.46 chapter's capacity. 106.47 (c) Of the funds transferred in 106.48 paragraph (a), $15,000,000 in fiscal 106.49 year 2001 and $15,000,000 in fiscal 106.50 year 2002 is for the affordable rental 106.51 investment fund program under Minnesota 106.52 Statutes, section 462A.21, subdivision 106.53 8b. To the extent practicable, the 106.54 number of units financed with the 106.55 appropriation under this paragraph 106.56 within a city, county, or region shall 106.57 reflect the number of MFIP households 106.58 residing within the city, county, or 106.59 region compared to the statewide total 106.60 of MFIP households. This appropriation 107.1 must be used to finance rental housing 107.2 units that serve families: 107.3 (1) receiving MFIP benefits under 107.4 Minnesota Statutes, section 256J.01, or 107.5 its successor program; and 107.6 (2) who have lost eligibility for MFIP 107.7due to increased income from employment107.8or due to the collection of child or107.9spousal support under part D of title107.10IV of the Social Security Actfor 107.11 reasons other than disqualification 107.12 from MFIP due to fraud. 107.13 Units produced with this appropriation 107.14 must remain affordable for a 30-year 107.15 period. 107.16 In order to coordinate the availability 107.17 of housing developed with the 107.18 appropriation under this paragraph with 107.19 MFIP families in need of affordable 107.20 housing, the commissioner of the 107.21 Minnesota housing finance agency, with 107.22 the assistance of the commissioner of 107.23 human services, shall establish 107.24 cooperative relationships with county 107.25 agencies as defined in Minnesota 107.26 Statutes, section 256J.08, local 107.27 employment and training service 107.28 providers as defined in Minnesota 107.29 Statutes, section 256J.49, local social 107.30 service agencies, or other 107.31 organizations that provide assistance 107.32 to MFIP households. 107.33 The commissioner of the Minnesota 107.34 housing finance agency shall develop 107.35 strategies to promote occupancy of the 107.36 units financed by the appropriation 107.37 under this paragraph by households most 107.38 in need of subsidized housing. The 107.39 strategies shall include provisions 107.40 that encourage households to move into 107.41 homeownership or unsubsidized housing 107.42 as the household secures stable 107.43 employment and achieves 107.44 self-sufficiency. The commissioner of 107.45 the Minnesota housing finance agency 107.46 shall consult with interested parties 107.47 in developing these strategies. 107.48 (d) The commissioner of the Minnesota 107.49 housing finance agency and the 107.50 commissioner of human services shall 107.51 jointly prepare and submit a report to 107.52 the governor and the legislature on the 107.53 results of the funding provided under 107.54 this section. The report shall include: 107.55 (1) information on the number of units 107.56 produced; 107.57 (2) the household size and income of 107.58 the occupants of the units at initial 107.59 occupancy; and 107.60 (3) to the extent the information is 107.61 available, measures related to the 107.62 occupants' attachment to the workforce 108.1 and public assistance usage, and number 108.2 of occupant moves. 108.3 The report must be submitted annually 108.4 beginning January 15, 2003. 108.5 (e) Section 6, sunset of uncodified 108.6 language, does not apply to paragraphs 108.7 (a) to (d). Paragraphs (a) to (d) are 108.8 effective the day following final 108.9 enactment. 108.10 [WORKING FAMILY CREDIT.] (a) On a 108.11 regular basis, the commissioner of 108.12 revenue, with the assistance of the 108.13 commissioner of human services, shall 108.14 calculate the value of the refundable 108.15 portion of the Minnesota working family 108.16 credits provided under Minnesota 108.17 Statutes, section 290.0671, that 108.18 qualifies for federal reimbursement 108.19 from the temporary assistance to needy 108.20 families block grant. The commissioner 108.21 of revenue shall provide the 108.22 commissioner of human services with 108.23 such expenditure records and 108.24 information as are necessary to support 108.25 draws of federal funds. The 108.26 commissioner of human services shall 108.27 reimburse the commissioner of revenue 108.28 for the costs of providing the 108.29 information required by this paragraph. 108.30 (b) Federal TANF funds, as specified in 108.31 this paragraph, are appropriated to the 108.32 commissioner of human services based on 108.33 calculations under paragraph (a) of 108.34 working family tax credit expenditures 108.35 that qualify for reimbursement from the 108.36 TANF block grant for income tax refunds 108.37 payable in federal fiscal years 108.38 beginning October 1, 1999. The draws 108.39 of federal TANF funds shall be made on 108.40 a regular basis based on calculations 108.41 of credit expenditures by the 108.42 commissioner of revenue. Up to the 108.43 following amounts of federal TANF draws 108.44 are appropriated to the commissioner of 108.45 human services to deposit into the 108.46 general fund: in fiscal year 2000, 108.47 $30,957,000; and in fiscal year 2001, 108.48 $33,895,000. 108.49 (d) General Assistance 108.50 557,000 (3,134,000) 108.51 (e) Minnesota Supplemental Aid 108.52 324,000 323,000 108.53 ARTICLE 6 108.54 STATE AGENCY RESTRUCTURING 108.55 Section 1. [STATE AGENCY RESTRUCTURING.] 108.56 The department of labor and industry and the department of 108.57 economic security are abolished. The department of trade and 109.1 economic development is renamed the department of economic and 109.2 workforce development. The new department of labor is created. 109.3[EFFECTIVE DATE.] This section is effective July 1, 2002. 109.4 Sec. 2. [TRANSFER OF RESPONSIBILITIES; DEPARTMENT OF 109.5 ECONOMIC SECURITY.] 109.6 Subdivision 1. [TO DEPARTMENT OF ECONOMIC AND WORKFORCE 109.7 DEVELOPMENT.] The responsibilities of the department of economic 109.8 security performed by its workforce services unit for employment 109.9 transition services, youth services, welfare-to-work services, 109.10 and workforce exchange services are transferred to the 109.11 department of economic and workforce development. 109.12 Subd. 2. [TO DEPARTMENT OF LABOR.] The responsibilities of 109.13 the department of economic security for the unemployment 109.14 insurance program are transferred to the department of labor. 109.15 Subd. 3. [TO DEPARTMENT OF COMMERCE.] The responsibility 109.16 for energy programs of the department of economic security is 109.17 transferred to the department of commerce. 109.18[EFFECTIVE DATE.] This section is effective July 1, 2002. 109.19 Sec. 3. [TRANSFER OF RESPONSIBILITIES; DEPARTMENT OF LABOR 109.20 AND INDUSTRY.] 109.21 The responsibilities of the department of labor and 109.22 industry are transferred to the department of labor. 109.23 Sec. 4. [ORGANIZATION OF ECONOMIC AND WORKFORCE 109.24 DEVELOPMENT DEPARTMENT.] 109.25 The department of economic and workforce development shall 109.26 have a division of economic development consisting of business 109.27 and community development, the Minnesota trade office, tourism 109.28 division, information and analysis division, and administrative 109.29 support. The job skills partnership program shall be housed in 109.30 the department and shall have a policy, research, and evaluation 109.31 unit. The department shall provide targeted-worker services to 109.32 include the dislocated worker program and welfare-to-work 109.33 services formerly located in the department of economic 109.34 security. The department shall have a unit providing special 109.35 programs under a workforce transition services unit. 109.36[EFFECTIVE DATE.] This section is effective June 30, 2002. 110.1 Sec. 5. [TRANSITION TEAM CREATION; COMPOSITION.] 110.2 Subdivision 1. [CREATION.] A workforce development program 110.3 reorganization transition advisory team is created. The 110.4 transition team shall make recommendations to the governor and 110.5 the legislature by November 1, 2001, concerning the state 110.6 government structure and department organization for delivering 110.7 workforce development programs and other issues described in 110.8 section 6. The object of the reorganization is to consolidate 110.9 and streamline the state's workforce development system and 110.10 programs so as to provide the most efficient and effective 110.11 workforce development programs. 110.12 Subd. 2. [TRANSITION TEAM COMPOSITION.] The transition 110.13 team shall consist of nine members appointed as follows: 110.14 (1) three members appointed by the governor of which one 110.15 shall be designated as chair of the transition team; 110.16 (2) three members of the house of representatives appointed 110.17 by the speaker of the house of representatives, one of whom must 110.18 be a member of the minority party; and 110.19 (3) three members of the senate appointed by the 110.20 subcommittee on committees of the committee on rules and 110.21 administration of the senate, one of whom must be a member of 110.22 the minority party. 110.23 The transition team must solicit input from all interested 110.24 groups on how to best implement the reorganization of state 110.25 departments contained in this article and develop the 110.26 recommendations required in subdivision 1. 110.27[EFFECTIVE DATE.] This section is effective the day 110.28 following final enactment. 110.29 Sec. 6. [TRANSITION TEAM DUTIES.] 110.30 Subdivision 1. [WORKFORCE DEVELOPMENT PROGRAMS.] The 110.31 transition team shall: 110.32 (1) consider alternative configurations of workforce 110.33 development programs, including legislative proposals submitted 110.34 during the 2001 legislative session and models from other 110.35 states; 110.36 (2) recommend governance structures for workforce 111.1 development; 111.2 (3) develop recommendations for creating stronger linkages 111.3 between the higher education system and the workforce 111.4 development system; 111.5 (4) recommend statutory amendments necessary to implement 111.6 sections 1 to 4; 111.7 (5) recommend the appropriate programs to transfer to local 111.8 workforce boards, including those programs under the Workforce 111.9 Investment Act, United States Code, title 29; 111.10 (6) recommend statutory and administrative changes 111.11 necessary to strengthen the oversight and management 111.12 responsibilities of local workforce boards and local elected 111.13 officials to ensure the efficient operation of the workforce 111.14 center system and to ensure better coordination of service 111.15 delivery at the community level; 111.16 (7) recommend the transfer of workforce development related 111.17 programs from other state agencies; 111.18 (8) recommend program modifications necessary to ensure 111.19 coordination between the workforce development system and the 111.20 employment and training programs administered by the department 111.21 of human services; 111.22 (9) recommend procedures for promoting greater coordination 111.23 and cooperation among local workforce development agencies, 111.24 local economic development agencies, and higher education 111.25 institutions; 111.26 (10) recommend methods for decreasing administrative costs 111.27 at the state agency level for the purpose of redirecting funding 111.28 to support the delivery of services at the community level; and 111.29 (11) make other recommendations to complete the 111.30 reorganization of state departments contained in this article. 111.31 Subd. 2. [CONSULTATION WITH INTERESTED ORGANIZATIONS.] The 111.32 transition team shall consult with all interested organizations, 111.33 including, but not limited to, those specified in this 111.34 subdivision. 111.35 The transition team shall consult with the state 111.36 rehabilitation advisory council, the statewide independent 112.1 living council, the rehabilitation advisory council for the 112.2 blind, and the Minnesota state council on disability, prior to 112.3 making recommendations to the legislature on the appropriate 112.4 transfer of responsibility for the workforce rehabilitation 112.5 services unit, the workforce services for the blind unit, and 112.6 the workforce wage assistance unit from the department of 112.7 economic security to another state agency or other recommended 112.8 entity. 112.9 The transition team shall consult with the SAFE 112.10 coordinating council, prior to making any recommendation to the 112.11 legislature, on the appropriate state agency of the juvenile 112.12 justice program, the Minnesota city grants program, and the 112.13 youth intervention program in the department of economic 112.14 security. 112.15 The transition team shall consult with the commissioners of 112.16 economic security, trade and economic development, and labor and 112.17 industry, and the cochairs of the legislative task force on 112.18 workforce development prior to making any recommendation to the 112.19 legislature under subdivision 3. 112.20 In determining the placement in state government of state 112.21 services for the blind, the head of the transition team shall 112.22 consult with representatives from each of the following groups: 112.23 (1) the rehabilitation council for the blind; 112.24 (2) the national federation of the blind; 112.25 (3) the American council for the blind; and 112.26 (4) the united blind of Minnesota. 112.27 Subd. 3. [GOVERNMENT REORGANIZATION RECOMMENDATIONS.] The 112.28 transition team shall recommend to the governor and legislature, 112.29 the transfer to the appropriate state agencies of the 112.30 responsibilities for administration of programs currently 112.31 administered by the department of trade and economic development 112.32 and the department of economic security. 112.33 Subd. 4. [TRANSFER OF WORKFORCE INVESTMENT ACT 112.34 PROGRAMS.] The transition team may recommend, where appropriate, 112.35 the transfer of a program, including those programs under the 112.36 Workforce Investment Act (United States Code, title 29), title I 113.1 and title III, to local workforce boards. 113.2 Subd. 5. [STAFF SUPPORT.] The commissioners of trade and 113.3 economic development, labor and industry, and economic security 113.4 must cooperate with and provide staff support to the transition 113.5 team. The support includes, but is not limited to, 113.6 professional, technical, and clerical staff necessary to fully 113.7 assess the programs under subdivision 4. 113.8 Subd. 6. [ACCESS TO DATA.] The transition team shall have 113.9 access to private or nonpublic data within the department of 113.10 economic security, department of labor and industry, and the 113.11 department of trade and economic development necessary to carry 113.12 out the objective of subdivision 4. 113.13[EFFECTIVE DATE.] This section is effective the day 113.14 following final enactment. 113.15 Sec. 7. [WORKER PROTECTION.] 113.16 In addition to any other protection, no employee shall 113.17 suffer job loss, have a salary reduced, or have employment 113.18 benefits reduced as a result of a reorganization mandated or 113.19 recommended under authority of this article. 113.20 Sec. 8. [EXPIRATION.] 113.21 Sections 5 and 6 expire on June 30, 2002. 113.22 ARTICLE 7 113.23 TECHNOLOGY, RESEARCH, AND INVESTMENT 113.24 Section 1. [11A.26] [MINNESOTA INVESTMENTS.] 113.25 The board shall make an effort to identify and invest in 113.26 venture capital funds that invest in Minnesota-based start-up 113.27 businesses that are high technology-based and are expected to 113.28 experience high growth. 113.29 Sec. 2. [11A.27] [HIGH TECHNOLOGY VENTURE CAPITAL 113.30 PROGRAM.] 113.31 Subdivision 1. [ACCOUNT CREATED.] The high technology 113.32 venture capital account is created as an account in the special 113.33 revenue fund in the state treasury. Earnings and gains on the 113.34 account must be credited to the account. Money in the account 113.35 is appropriated to the state board of investment for the 113.36 purposes of making investments under this section. 114.1 Subd. 2. [INVESTMENTS.] The board may make investments in 114.2 private venture capital funds that provide seed capital for 114.3 early stage development of Minnesota-based companies in 114.4 industries that are high technology-based and are expected to 114.5 experience high growth. The board's investment must not exceed 114.6 25 percent of the total investment in a particular fund. An 114.7 investment may not be less than $50,000 nor more than 114.8 $2,000,000. The board may not invest more than 20 percent of 114.9 funds in the account in any one fund. 114.10 Subd. 3. [REQUEST FOR PROPOSAL.] The board may 114.11 periodically publish requests for proposals for the purpose of 114.12 selecting venture capital funds. The board may also make 114.13 investments without requesting proposals. 114.14 Subd. 4. [PERSONNEL.] The board may employ additional 114.15 professional staff to select and manage investments of the 114.16 venture capital account and may contract for investment advice 114.17 and management services. 114.18 Subd. 5. [INVESTMENT RETURNS.] Earnings, realized gains, 114.19 and other returns on investments of the account must be 114.20 deposited in the high technology venture capital account, are 114.21 appropriated to the board, and may be reinvested under this 114.22 section. 114.23 Sec. 3. [116J.885] [BIOMEDICAL INNOVATION AND 114.24 COMMERCIALIZATION INITIATIVE.] 114.25 Subdivision 1. [ESTABLISHED.] The North Star Research 114.26 Coalition shall establish the biomedical innovation and 114.27 commercialization initiative (BICI) as a collaborative economic 114.28 development initiative between the University of Minnesota, 114.29 Minnesota's medical technology industry, and investors. BICI is 114.30 not a state agency. 114.31 The North Star Research Coalition shall invest $4,700,000 114.32 in BICI if money for that purpose is appropriated to the 114.33 coalition and if the governance documents satisfy the 114.34 specifications of this section. The investment is contingent on 114.35 a three-to-one match of money contributions or investments from 114.36 other sources. 115.1 The board established in subdivision 2 shall organize and 115.2 operate BICI as a for-profit entity and in a manner and form 115.3 that the board determines best allows BICI to carry out its 115.4 objectives. Any distribution from BICI must be returned to all 115.5 investors, including the coalition, in the same proportion as 115.6 funds were contributed. 115.7 Subd. 2. [BOARD.] BICI is governed by a board of 115.8 directors, appointed to six-year terms, composed of: 115.9 (1) a representative chosen by the governor; 115.10 (2) a representative of the North Star Research Coalition; 115.11 (3) a representative chosen by the president of the 115.12 University of Minnesota with the consent of the board of 115.13 regents; and 115.14 (4) at least five representatives from the state's medical 115.15 technology industry, chosen by private sector investors based on 115.16 the proportion of their equity investments. 115.17 The board may use up to five percent of its total 115.18 capitalization to establish a management and administrative 115.19 budget, including the hiring of staff and for professional 115.20 management expenses. Members of the staff are not state 115.21 employees. 115.22 Subd. 3. [MISSION OF BICI.] The mission of BICI is to: 115.23 (1) add business and financial expertise to technologies 115.24 that are being developed by University of Minnesota faculty and 115.25 staff to enhance commercial value; 115.26 (2) promote the depth, breadth, and value of technologies 115.27 being developed by the biomedical academic community; 115.28 (3) catalyze the development of functional, mutually 115.29 advantageous relationships between industry, faculty, staff, the 115.30 university, and extended research community; 115.31 (4) provide a financial return on commercialization efforts 115.32 to the stakeholders in BICI; and 115.33 (5) directly commercialize technologies through the 115.34 start-up of new Minnesota companies or enhance the marketing of 115.35 technologies to existing companies creating expanded economic 115.36 development opportunities. 116.1 Subd. 4. [STATEWIDE FOCUS.] BICI may contract and 116.2 collaborate with higher education and other research 116.3 institutions located throughout the state. BICI shall promote 116.4 the statewide distribution of business opportunities created 116.5 through carrying out its duties under subdivision 3. 116.6 Subd. 5. [POWERS OF BOARD.] The board has the power to do 116.7 all things reasonable and necessary to carry out the mission of 116.8 BICI including, without limitation, the power to: 116.9 (1) enter into contracts for goods and services with 116.10 individuals and private and public entities; 116.11 (2) sue and be sued; 116.12 (3) acquire, hold, lease, and transfer any interest in real 116.13 and personal property; 116.14 (4) accept appropriations, gifts, grants, and bequests; 116.15 (5) hire employees for BICI; and 116.16 (6) delegate any of its powers. 116.17 Subd. 6. [ANNUAL REPORT.] The corporation shall publish an 116.18 annual report within 75 days of the end of each fiscal year. 116.19 The annual report must include a balance sheet; a statement of 116.20 income, expenses, and cash flow; the identity of projects or 116.21 entities receiving funding and the amount of funding; the number 116.22 of employees of recipient entities; licensing and royalty 116.23 revenue paid to the university by recipient entities; and 116.24 sources of investment in the corporation. A copy of the report 116.25 must be transmitted to the commissioner of the department of 116.26 trade and economic development. 116.27 Sec. 4. [137.45] [NORTH STAR RESEARCH COALITION.] 116.28 Subdivision 1. [ESTABLISHMENT.] The board of regents is 116.29 requested to establish a partnership with private industry to 116.30 leverage the university's research capabilities into economic 116.31 development results through the creation of a nonprofit 116.32 tax-exempt corporation to be known as the North Star Research 116.33 Coalition. The incorporating documents of the North Star 116.34 Research Coalition must provide for representation of university 116.35 and private sector interests on the coalition's board of 116.36 directors and provide that changes in the governance structure 117.1 require a supermajority of the board. The board consists of 12 117.2 members. Six shall be appointed by the board of regents of the 117.3 University of Minnesota and need not be affiliated with the 117.4 university. The initial six members representing the private 117.5 sector shall be appointed by the governor. Subsequent members 117.6 representing the private sector shall be appointed by the 117.7 incumbent members of the board. Private sector members of the 117.8 board must have expertise in the technology research needs of 117.9 the state and not be affiliated with the university. 117.10 Subd. 2. [RESEARCH PROJECTS.] The coalition shall fund 117.11 research projects consistent with this section and priorities 117.12 established by the coalition, purchase equipment for research 117.13 laboratories, and establish endowed faculty chairs in the area 117.14 of technology-based research. The coalition may fund research 117.15 projects that establish collaborative research efforts among the 117.16 University of Minnesota and the private sector, the Mayo Clinic, 117.17 nonprofit research institutes, or the Minnesota state colleges 117.18 and universities. 117.19 Subd. 3. [PURPOSES.] The purposes of the coalition include: 117.20 (1) identifying technology-based research projects that 117.21 have the potential to create significant opportunities for 117.22 economic development and industrial growth in the state; 117.23 (2) strengthening the university's research capabilities in 117.24 subject areas associated with emerging technology-based 117.25 industries; 117.26 (3) expanding the research capacity of the university 117.27 through the creation of opportunities for the university to 117.28 assist private enterprises in emerging technology-based 117.29 industries; 117.30 (4) expanding the research capacity of the university 117.31 through the creation of opportunities for the university to 117.32 assist private enterprises in emerging technology-based 117.33 industries; 117.34 (5) promoting the transfer of technology from the research 117.35 laboratory to commercial application by businesses; 117.36 (6) developing application procedures for, reviewing, and 118.1 prioritizing research projects seeking funding from the 118.2 coalition; and 118.3 (7) creating opportunities for collaborative research among 118.4 the University of Minnesota, the Mayo Clinic, nonprofit research 118.5 institutes, and the Minnesota state colleges and universities. 118.6 The board shall have the authority to allocate state and 118.7 nonstate money to projects. 118.8 Sec. 5. [INITIAL TERMS.] 118.9 Notwithstanding section 3, subdivision 2, the first board 118.10 members appointed under clause (4) of subdivision 2 must be 118.11 appointed as follows: two to two-year terms, two to four-year 118.12 terms, and one to a six-year term. 118.13 ARTICLE 8 118.14 HOUSING PROGRAM CONSOLIDATION 118.15 Section 1. Minnesota Statutes 2000, section 462A.201, 118.16 subdivision 2, is amended to read: 118.17 Subd. 2. [LOW-INCOME HOUSING.] (a) The agency may, in118.18consultation with the advisory committee,use money from the 118.19 housing trust fund account to provide loans or grants for: 118.20 (1) projects for the development, construction, 118.21 acquisition, preservation, and rehabilitation of low-income 118.22 rental and limited equity cooperative housing units, including 118.23 temporary and transitional housing, and homes for ownership; 118.24 (2) the costs of operating rental housing, as determined by 118.25 the agency, that are unique to the operation of low-income 118.26 rental housing or supportive housing; and 118.27 (3) rental assistance, either project-based or tenant-based. 118.28 For purposes of this section, "transitional housing"means118.29housing that is provided for a limited duration not exceeding 24118.30months, except that up to one-third of the residents may live in118.31the housing for up to 36 monthshas the meaning given by the 118.32 United States Department of Housing and Urban Development. 118.33 Loans or grants for residential housing for migrant farmworkers 118.34 may be made under this section.No more than 20 percent of118.35available funds may be used for home ownership projects.118.36 (b)A rental or limited equity cooperative permanent119.1housing project must meet one of the following income tests:119.2(1) at least 75 percent of the rental and cooperative units119.3must be rented to or cooperatively owned by persons and families119.4whose income does not exceed 30 percent of the median family119.5income for the metropolitan area as defined in section 473.121,119.6subdivision 2; or119.7(2) allThe housing trust fund account must be used for the 119.8 benefit of persons and families whose income, at the time of 119.9 initial occupancy, does not exceed 60 percent of median income 119.10 as determined by the United States Department of Housing and 119.11 Urban Development for the metropolitan area. At least 75 119.12 percent of theunits funded byfunds in the housing trust fund 119.13 account must be used for the benefit of persons and families 119.14 whose income, at the time of initial occupancy, does not exceed 119.15 30 percent of the median family income for the metropolitan area 119.16 as defined in section 473.121, subdivision 2. For purposes of 119.17 this section, a household with a housing assistance voucher 119.18 under section 8 of the United States Housing Act of 1937, as 119.19 amended, is deemed to meet the income requirements of this 119.20 section. 119.21 The median family income may be adjusted for families of 119.22 five or more. 119.23 (c)Homes for ownership must be owned or purchased by119.24persons and families whose income does not exceed 50 percent of119.25the metropolitan area median income, adjusted for family size.119.26(d)Rental assistance under this section must be provided 119.27 by governmental units which administer housing assistance 119.28 supplements or for-profit or by nonprofit organizations 119.29 experienced in housing management. Rental assistance shall be 119.30 limited to households whose income at the time of initial 119.31 receipt of rental assistance does not exceed 60 percent of 119.32 median income, as determined by the United States Department of 119.33 Housing and Urban Development for the metropolitan area. 119.34 Priority among comparable applications for tenant-based rental 119.35 assistance will be given to proposals that will serve households 119.36 whose income at the time of initial application for rental 120.1 assistance does not exceed 30 percent of median income, as 120.2 determined by the United States Department of Housing and Urban 120.3 Development for the metropolitan area. Rental assistance must 120.4 be terminated when it is determined that 30 percent of a 120.5 household's monthly income for four consecutive months equals or 120.6 exceeds the market rent for the unit in which the household 120.7 resides plus utilities for which the tenant is responsible. 120.8 Rental assistance may only be used for rental housing units that 120.9 meet the housing maintenance code of the local unit of 120.10 government in which the unit is located, if a maintenance code 120.11 has been adopted, or the housing quality standards adopted by 120.12 the United States Department of Housing and Urban Development, 120.13 if no local housing maintenance code has been adopted. 120.14 (d) In making the loans or grants, the agency shall 120.15 determine the terms and conditions of repayment and the 120.16 appropriate security, if any, should repayment be required. To 120.17 promote the geographic distribution of grants and loans, the 120.18 agency may designate a portion of the grant or loan awards to be 120.19 set aside for projects located in specified congressional 120.20 districts or other geographical regions specified by the 120.21 agency. The agency may adopt rules for awarding grants and 120.22 loans under this subdivision. 120.23 Sec. 2. Minnesota Statutes 2000, section 462A.201, 120.24 subdivision 6, is amended to read: 120.25 Subd. 6. [REPORT.] The agency shall submit a biennial 120.26 report to the legislature and the governorannuallyon the use 120.27 of the housing trust fund account including the number of loans 120.28 and grants made, the number and types of residential units 120.29 assisted through the account, the number of households for whom 120.30 rental assistance payments were provided, and the number of 120.31 residential units assisted through the account that were rented 120.32 to or cooperatively owned by persons or families at or below 30 120.33 percent of the median family income of the metropolitan area at 120.34 the time of initial occupancy. 120.35 Sec. 3. Minnesota Statutes 2000, section 462A.209, is 120.36 amended to read: 121.1 462A.209 [HOME OWNERSHIPASSISTANCEEDUCATION, COUNSELING, 121.2 AND TRAINING PROGRAM.] 121.3 Subdivision 1. [FULL CYCLE HOME OWNERSHIP SERVICES.] 121.4 Thefull cycle home ownership serviceshomeownership education, 121.5 counseling, and training program shall be used tofundprovide 121.6 funding to community-based nonprofit organizations and political 121.7 subdivisionsproviding, building capacity to provide, or121.8supporting full cycle lending forto assist them in building the 121.9 capacity to provide and providing full cycle home ownership 121.10 services to low and moderate income home buyers and homeowners, 121.11 including seniors. The purpose of the program is to encourage 121.12 private investment in affordable housing and collaboration of 121.13 nonprofit organizations and political subdivisions with each 121.14 other and private lenders in providing full cyclelending121.15 homeownership services. 121.16 Subd. 2. [DEFINITION.] "Full cycle home ownership 121.17 services" means supporting eligible home buyers andowners121.18 homeowners through all phases of purchasing and keeping a home, 121.19 by providing prepurchase home buyer education,; prepurchase 121.20 counseling and credit repair,; prepurchase and postpurchase 121.21 property inspection and technical and financial assistance to 121.22 buyers in rehabilitating the home,; postpurchase counseling, 121.23 including home equity conversion loan counseling, mortgage 121.24 default counseling, postpurchase assistance with home 121.25 maintenance, entry cost assistance,; foreclosure prevention and 121.26 assistance; and access to flexible loan products. 121.27 Subd. 3. [ELIGIBILITY.] The agency shall establish 121.28 eligibility criteria for nonprofit organizations and political 121.29 subdivisions to receive funding under this section. The 121.30 eligibility criteria must require the nonprofit organization or 121.31 political subdivision to provide, to build capacity to provide, 121.32 or support full cycle home ownership services for eligible home 121.33 buyers. The agency may fund a nonprofit organization or 121.34 political subdivision that will provide full cycle home 121.35 ownership services by coordinating with one or more other 121.36 organizations that will provide specific components of full 122.1 cycle home ownership services. The agency may make exceptions 122.2 to providing all components of full cycle lending if justified 122.3 by the application. If there are more applicants requesting 122.4 funding than there are funds available, the agency shall award 122.5 the funds on a competitive basis and also assure an equitable 122.6 geographic distribution of the available funds. The eligibility 122.7 criteria must require the nonprofit organization or political 122.8 subdivision to have a demonstrated involvement in the local 122.9 community and to target the housing affordability needs of the 122.10 local community or to have demonstrated experience with 122.11 counseling older persons on housing, or both. The eligibility 122.12 criteria may include a requirement for specific training 122.13 provided by designated state or national entities. The agency 122.14 may also include an eligibility criteria that requires counselor 122.15 certification or organizational accreditation by specified 122.16 organizations which provide certification or accreditation 122.17 services. Partnerships and collaboration with innovative, grass 122.18 roots, or community-based initiatives shall be encouraged. The 122.19 agency shall give priority to nonprofit organizations and 122.20 political subdivisions thatprovide matching fundshave funding 122.21 from other sources for full cycle home ownership services. 122.22 Applicants for funds under section 462A.057 may also apply funds 122.23 under this program. 122.24 Subd. 4. [ENTRY COST HOME OWNERSHIP OPPORTUNITY PROGRAM.] 122.25 The agency may establish an entry cost home ownership 122.26 opportunity program, on terms and conditions it deems advisable, 122.27 to assist individuals with downpayment and closing costs to 122.28 finance the purchase of a home. 122.29 Subd. 5. [SELECTION CRITERIA.] The agency shall take the 122.30 following criteria into consideration when determining whether 122.31 to award funds to an eligible organization: 122.32 (1) to the extent to which there is an equitable geographic 122.33 distribution of funds among program applicants; 122.34 (2) the prior experience and documented familiarity of the 122.35 organization, as may be applicable, in establishing, 122.36 administering, and maintaining some or all of the components of 123.1 full cycle homeownership services; 123.2 (3) the reasonableness of the proposed budget in meeting 123.3 the program objectives, a demonstrated ability to leverage 123.4 program money with other sources of funding, and the extent of 123.5 the leveraging of other sources of funding; 123.6 (4) the extent to which efforts are targeted towards 123.7 households with incomes that do not exceed 80 percent of the 123.8 state or area median income or underserved segments of the local 123.9 population; and 123.10 (5) the extent to which program funding does not duplicate 123.11 other efforts currently available in the local area and will 123.12 enable, expand, or enhance existing activities. 123.13 Subd. 6. [DESIGNATED AREAS.] A program administrator must 123.14 designate specific areas, communities, or neighborhoods within 123.15 which the program is proposed to be operated for the purpose of 123.16 focusing resources. 123.17 Subd. 7. [ASSISTANCE TO PREVENT MORTGAGE FORECLOSURES.] (a) 123.18 Program assistance and counseling to prevent mortgage 123.19 foreclosures or cancellations of contract for deeds includes 123.20 general information, screening, assessment, referral services, 123.21 case management, advocacy, and financial assistance to borrowers 123.22 who are delinquent on mortgage or contract for deed payments. 123.23 (b) Not more than one-half of funds awarded for foreclosure 123.24 prevention and assistance activities may be used for mortgage or 123.25 financial counseling services. 123.26 (c) Financial assistance consists of payments for 123.27 delinquent mortgage or contract for deed payments, future 123.28 mortgage or contract for deed payments for a period of up to six 123.29 months, property taxes, assessments, utilities, insurance, home 123.30 improvement repairs, future rent payments for a period of up to 123.31 six months, and relocation costs if necessary, or other costs 123.32 necessary to prevent foreclosure. 123.33 (d) An individual or family may receive a maximum of $5,500 123.34 of financial assistance to prevent a mortgage foreclosure or the 123.35 cancellation of a contract for deed. 123.36 (e) The agency may require the recipient of financial 124.1 assistance to enter into an agreement with the agency for 124.2 repayment. The repayment agreement for mortgages or contract 124.3 for deed buyers must provide that in the event the property is 124.4 sold, transferred, or otherwise conveyed, or ceases to be the 124.5 recipient's principal place of residence, the recipient shall 124.6 repay all or a portion of the financial assistance. The agency 124.7 may take into consideration financial hardship in determining 124.8 repayment requirements. The repayment agreement may be secured 124.9 by a lien on the property for the benefit of the agency. 124.10 Subd. 8. [REPORT.] By January 10 of every year, each 124.11 nonprofit organization that delivers services under this section 124.12 must submit a report to the agency that summarizes the number of 124.13 people served and the sources and amounts of nonstate money used 124.14 to fund the services. The agency shall annually submit a report 124.15 to the legislature by February 15. 124.16 Sec. 4. Minnesota Statutes 2000, section 462A.21, is 124.17 amended by adding a subdivision to read: 124.18 Subd. 27. [ECONOMIC DEVELOPMENT AND HOUSING CHALLENGE 124.19 PROGRAM.] The agency may spend money for the purposes of section 124.20 462A.33 and may pay the costs and expenses necessary and 124.21 incidental to the development and operation of the program. 124.22 Sec. 5. Minnesota Statutes 2000, section 462A.33, 124.23 subdivision 1, is amended to read: 124.24 Subdivision 1. [CREATED.] The economic development and 124.25 housing challenge program is created to be administered by the 124.26 agency. 124.27 (a) The program shall provide grants or loans for the 124.28 purpose of construction, acquisition, rehabilitation, demolition 124.29 or removal of existing structures, construction financing, 124.30 permanent financing, interest rate reduction, refinancing, and 124.31 gap financing of housing to support economic development and 124.32 redevelopment activities or job creation or job preservation 124.33 within a community or region by meeting locally identified 124.34 housing needs. 124.35 Gap financing is either: 124.36 (i) the difference between the costs of the property, 125.1 including acquisition, demolition, rehabilitation, and 125.2 construction, and the market value of the property upon sale; or 125.3 (ii) the difference between the cost of the property and 125.4 the amount the targeted household can afford for housing, based 125.5 on industry standards and practices. 125.6 (b) Preference for grants and loans shall be given to 125.7 comparable proposals that include regulatory changes or waivers 125.8 that result in identifiable cost avoidance or cost reductions, 125.9 such as increased density, flexibility in site development 125.10 standards, or zoning code requirements. Preference must also be 125.11 given among comparable proposals to proposals for projects that 125.12 are accessible to transportation systems, jobs, schools, and 125.13 other services. 125.14 (c) If a grant or loan is used for demolition or removal of 125.15 existing structures, the cleared land must be used for the 125.16 construction of housing to be owned or rented by persons who 125.17 meet the income limits of this section or for other 125.18 housing-related purposes that primarily benefit the persons 125.19 residing in the adjacent housing. 125.20 Sec. 6. Minnesota Statutes 2000, section 462A.33, 125.21 subdivision 2, is amended to read: 125.22 Subd. 2. [ELIGIBLE RECIPIENTS.] Challenge grants or loans 125.23 may be made to a city, a private developer, a nonprofit 125.24 organization, or the owner of the housing, including 125.25 individuals. For the purpose of this section, "city" has the 125.26 meaning given it in section 462A.03, subdivision 21.Preference125.27shall be given to challenge grants or loans for home ownership.125.28 To the extent practicable, grants and loans shall be made so 125.29 that an approximately equal number of housing units are financed 125.30 in the metropolitan area, as defined in section 473.121, 125.31 subdivision 2, and in the nonmetropolitan area. 125.32 Sec. 7. Minnesota Statutes 2000, section 462A.33, 125.33 subdivision 3, is amended to read: 125.34 Subd. 3. [CONTRIBUTION REQUIREMENT; REGULATORY125.35FLEXIBILITY.] Fifty percent of the funds appropriated for this 125.36 section must be used for challenge grants or loans which meet 126.1 the requirements of this subdivision. These challenge grants or 126.2 loans must be used for economically viable homeownership or 126.3 rental housing proposals that: 126.4 (1) include a financial or in-kind contribution from an 126.5 area employer and either a unit of local government or a private 126.6 philanthropic, religious, or charitable organization; and 126.7 (2) address the housing needs of the local work force. 126.8 For the purpose of this subdivision, an employer 126.9 contribution may consist partially or wholly of the premium paid 126.10 for federal housing tax credits.Preference for grants and126.11loans shall be given to comparable proposals that include126.12regulatory changes that result in identifiable cost avoidance or126.13cost reductions, such as increased density, flexibility in site126.14development standards, or zoning code requirements.126.15 Preference for grants and loans shall also be given to 126.16 comparable proposals that include a financial or in-kind 126.17 contribution from a unit of local government, an area employer, 126.18 and a private philanthropic, religious, or charitable 126.19 organization. 126.20 Sec. 8. Minnesota Statutes 2000, section 462A.33, 126.21 subdivision 5, is amended to read: 126.22 Subd. 5. [INCOME LIMITS.] Households served through 126.23 challenge grants or loans must not have incomes at the time of 126.24 initial occupancy that exceed, for homeownership projects, 115 126.25 percent of the greater of state or area median income as 126.26 determined by the United States Department of Housing and Urban 126.27 Development, and for rental housing projects,11580 percent of 126.28 the greater of state or area median income as determined by the 126.29 United States Department of Housing and Urban Development except 126.30 that the housing developed or rehabilitated with challenge fund 126.31 grants or loans must be affordable to the local work force. 126.32 Preference among comparable proposals shall be given those 126.33 that provide housing opportunities for an expanded range of 126.34 household incomes within a community or that provide housing 126.35 opportunities for a wide range of incomes within the development. 126.36 Sec. 9. Minnesota Statutes 2000, section 462A.33, is 127.1 amended by adding a subdivision to read: 127.2 Subd. 8. [LIMITATION ON RETURN.] The limitations on return 127.3 of eligible mortgagors contained in section 462A.03, subdivision 127.4 13, do not apply to loans or grants for rental housing if the 127.5 loans or grants made by the agency, from all sources, are less 127.6 than 50 percent of the total costs, as determined by the agency. 127.7 Sec. 10. [REPEALER.] 127.8 Minnesota Statutes 2000, sections 462A.201, subdivision 4; 127.9 462A.207; 462A.209, subdivision 4; 462A.21, subdivision 17; and 127.10 462A.33, subdivisions 4, 6, and 7, are repealed. 127.11 ARTICLE 9 127.12 WORKFORCE DEVELOPMENT PROGRAM ADMINISTRATION 127.13 Section 1. Minnesota Statutes 2000, section 116L.02, is 127.14 amended to read: 127.15 116L.02 [JOB SKILLS PARTNERSHIP PROGRAM.] 127.16 (a) The Minnesota job skills partnership program is created 127.17 to act as a catalyst to bring together employers with specific 127.18 training needs with educational or other nonprofit institutions 127.19 which can design programs to fill those needs. The partnership 127.20 shall work closely with employers to train and place workers in 127.21 identifiable positions as well as assisting educational or other 127.22 nonprofit institutions in developing training programs that 127.23 coincide with current and future employer requirements. The 127.24 partnership shall provide grants to educational or other 127.25 nonprofit institutions for the purpose of training displaced 127.26 workers. A participating business must match the grant-in-aid 127.27 made by the Minnesota job skills partnership. The match may be 127.28 in the form of funding, equipment, or faculty. 127.29 (b) The partnership program shall administer the health 127.30 care and human services worker training and retention program 127.31 under sections 116L.10 to 116L.15. 127.32 (c) The partnership board created in section 116L.03 is the 127.33 lead state agency for workforce policy and program development 127.34 and coordination. 127.35 Sec. 2. Minnesota Statutes 2000, section 116L.03, is 127.36 amended to read: 128.1 116L.03 [BOARD.] 128.2 Subdivision 1. [MEMBERS.] The partnership shall be 128.3 governed by a board of1213 directors. 128.4 Subd. 2. [APPOINTMENT.] The Minnesota job skills 128.5 partnership board consists of:nineseven members appointed by 128.6 the governor, the chair of the governor's workforce development 128.7 council, the commissioner of trade and economic development,the128.8commissioner of economic security, andthe chancellor, or the 128.9 chancellor's designee, of the Minnesota state colleges and 128.10 universities, the president, or the president's designee, of the 128.11 University of Minnesota, and two nonlegislator members, one 128.12 appointed by the subcommittee on committees of the senate 128.13 committee on rules and administration and one appointed by the 128.14 speaker of the house. If the chancellor or the president of the 128.15 university makes a designation under this subdivision, the 128.16 designee must have experience in technical education.TwoFour 128.17 of the appointed members must berepresentatives frommembers of 128.18 the governor's workforce development council, of whom two must 128.19 represent organized labor and two must represent business and 128.20 industry. One of the appointed members must be a representative 128.21 of a nonprofit organization that provides workforce development 128.22 or job training services. 128.23 Subd. 3. [QUALIFICATIONS.] Members must have expertise in, 128.24 and be representative of the following fields of education, job 128.25 skills training, labor, business, and government. 128.26 Subd. 4. [CHAIR.] The chair shall be appointed by the 128.27 governor. 128.28 Subd. 5. [TERMS.] The terms of appointed members shall be 128.29 for four years except for the initial appointments. The initial 128.30 appointments of the governor shall have the following terms: 128.31 two members each for one, two, three, and four years. 128.32 Compensation for board members is as provided in section 128.33 15.0575, subdivision 3. 128.34 Subd. 7. [OFFICES.] The board may hire an executive 128.35 director and staff to carry out its duties. The board shall 128.36 have its own offices and may contract with the department of 129.1 trade and economic development for administrative services. The 129.2 department of trade and economic development shall 129.3 provide additional staff and administrative servicesforat the 129.4 request of the board. 129.5 Subd. 8. [PARTNERSHIP BOARD.] The board shall administer 129.6 and coordinate the state's workforce development activities. 129.7 The board shall hire staff to conduct workforce policy 129.8 development, research, and program evaluations. 129.9 Sec. 3. Minnesota Statutes 2000, section 116L.04, is 129.10 amended by adding a subdivision to read: 129.11 Subd. 4. [PERFORMANCE STANDARDS AND REPORTING.] By January 129.12 15, 2002, the board must develop performance standards for 129.13 workforce development and job training programs receiving state 129.14 funding. The standards may vary across program types. The 129.15 board may contract with a consultant to develop the performance 129.16 standards. The board must consult with stakeholder advocacy 129.17 groups, nonprofit service providers, and local workforce 129.18 councils in the development of both performance standards and 129.19 reporting requirements. The adult standards must at a minimum 129.20 measure: 129.21 (1) the employability levels of individuals as defined by 129.22 basic skill level, the amount of work experience, and barriers 129.23 to employment prior to program entry; 129.24 (2) the individual's annual income and employability level 129.25 for the 12 months prior to entering the program, the starting 129.26 annual income upon placement after completing the program, 129.27 employability level and annual income one year after completion 129.28 of the program, and the individual's reported satisfaction; 129.29 (3) the program completion rate, placement rate, 129.30 employability level upon placement, and one-year retention rate; 129.31 and 129.32 (4) the governmental cost per placement and per job 129.33 retained at one year and the percentage of program funding 129.34 coming from the state and other levels of government. 129.35 After January 15, 2002, all workforce development programs 129.36 receiving state funds must submit an annual performance report 130.1 to the board. The board may develop a uniform format for the 130.2 report and prescribe the manner in which the report is required 130.3 to be submitted. 130.4 Sec. 4. Minnesota Statutes 2000, section 116L.05, is 130.5 amended by adding a subdivision to read: 130.6 Subd. 4. [ANNUAL LEGISLATIVE RECOMMENDATIONS.] By January 130.7 15 of each year, the board must submit recommendations to the 130.8 house and senate committees with jurisdiction over workforce 130.9 development programs, regarding modifications to, or elimination 130.10 of, existing workforce development programs and the potential 130.11 implementation of new programs. The recommendations must 130.12 include recommendations regarding funding levels and sources. 130.13 Sec. 5. Minnesota Statutes 2000, section 268.022, 130.14 subdivision 2, is amended to read: 130.15 Subd. 2. [DISBURSEMENT OF SPECIAL ASSESSMENT FUNDS.] (a) 130.16 The money collected under this section shall be deposited in the 130.17 state treasury and credited to the workforce development fund to 130.18 provide for employment and training programs. The workforce 130.19 development fund is created as a special account in the state 130.20 treasury. 130.21 (b) All money in the fund not otherwise appropriated or 130.22 transferred is appropriated to the commissioner who must act as 130.23 the fiscal agent for the money and must disburse that money for 130.24 the purposes of this section, not allowing the money to be used 130.25 for any other obligation of the state. All money in the 130.26 workforce development fund shall be deposited, administered, and 130.27 disbursed in the same manner and under the same conditions and 130.28 requirements as are provided by law for the other special 130.29 accounts in the state treasury, except that all interest or net 130.30 income resulting from the investment or deposit of money in the 130.31 fund shall accrue to the fund for the purposes of the fund. 130.32 (c) No more than five percent of the funds collected in 130.33 each fiscal year may be used by the department of economic 130.34 security for its administrative costs. 130.35 (d) Reimbursement for costs related to collection of the 130.36 special assessment shall be in an amount negotiated between the 131.1 commissioner and the United States Department of Labor. 131.2 (e) The funds appropriated to the commissioner, less 131.3 amounts under paragraphs (c) and (d) shall be allocated as 131.4 follows: 131.5 (1) 40 percent to be allocated annually to substate 131.6 grantees for provision of expeditious response activities under 131.7 section 268.9771 and worker adjustment services under section 131.8 268.9781; and 131.9 (2) 60 percent to be allocated to the job skills 131.10 partnership board for activities and programs authorized 131.11 under chapter 116L and sections 268.975 to 268.98. 131.12 (f) Any funds not allocated, obligated, or expended in a 131.13 fiscal year shall be available for allocation, obligation, and 131.14 expenditure in the following fiscal year. 131.15 Sec. 6. Minnesota Statutes 2000, section 268.085, is 131.16 amended by adding a subdivision to read: 131.17 Subd. 1a. [TRAINING SERVICES.] The commissioner must 131.18 provide an applicant who is not job attached and is receiving 131.19 benefits, notice of and opportunity for, employment and training 131.20 services through a Minnesota workforce center. 131.21 "Job attached" means the applicant is employed, on a leave 131.22 of absence, or on temporary or seasonal layoff from employment 131.23 due to lack of work. 131.24 Sec. 7. Minnesota Statutes 2000, section 268.665, is 131.25 amended by adding a subdivision to read: 131.26 Subd. 2a. [EXECUTIVE COMMITTEE.] An executive committee of 131.27 the governor's workforce development council is created. The 131.28 executive committee consists of the council chair, two council 131.29 members representing organized labor, two council members 131.30 representing business and industry, one council member 131.31 representing a community-based organization, and one council 131.32 member representing higher educational institutions. Executive 131.33 committee members are appointed by the governor. 131.34 Sec. 8. Minnesota Statutes 2000, section 268.665, is 131.35 amended by adding a subdivision to read: 131.36 Subd. 3a. [EXECUTIVE COMMITTEE DUTIES.] The executive 132.1 committee must develop performance standards for the state 132.2 workforce centers. By January 15, 2002, and each year 132.3 thereafter, the executive committee shall submit an annual 132.4 report to the senate and house committees with jurisdiction over 132.5 workforce development programs regarding the performance and 132.6 outcomes of the workforce centers. The report must provide 132.7 recommendations regarding workforce center funding levels and 132.8 sources, program changes, and administrative changes. 132.9 Sec. 9. Minnesota Statutes 2000, section 268.666, is 132.10 amended by adding a subdivision to read: 132.11 Subd. 6. [ADVANCED EMPLOYMENT AND TRAINING.] Local 132.12 workforce centers shall establish an advanced reemployment 132.13 program to monitor and contact underemployed individuals and 132.14 inform them of advanced placement and training opportunities. 132.15 Sec. 10. [WORKFORCE CENTERS STRATEGIC PLAN.] 132.16 The executive committee of the governor's workforce 132.17 development council shall develop a strategic plan regarding the 132.18 appropriate placement and number of workforce centers within the 132.19 state. The executive committee must consult with local 132.20 workforce boards when determining the placement and number of 132.21 workforce centers in their area. The plan must recognize the 132.22 differing employment needs of various regions, the workforce 132.23 population within proximity of a center, and the potential for 132.24 colocation of the workforce centers with available educational 132.25 institutions. By January 15, 2002, the executive committee 132.26 shall submit the plan and recommendations for closure or 132.27 consolidation of workforce centers to the senate and house 132.28 committees with jurisdiction over workforce development programs. 132.29 ARTICLE 10 132.30 TECHNICAL AND CONFORMING CHANGES 132.31 Section 1. Minnesota Statutes 2000, section 462A.01, is 132.32 amended to read: 132.33 462A.01 [CITATION.] 132.34 Sections 462A.01 to462A.24462A.33 shall be known as and 132.35 may be cited as the "Minnesota Housing Finance Agency Law of 132.36 1971." 133.1 Sec. 2. Minnesota Statutes 2000, section 462A.03, 133.2 subdivision 1, is amended to read: 133.3 Subdivision 1. [APPLICATION.] For the purpose ofsections133.4462A.01 to 462A.24this chapter, the terms defined in this 133.5 section have the meanings ascribed to them. 133.6 Sec. 3. Minnesota Statutes 2000, section 462A.03, 133.7 subdivision 6, is amended to read: 133.8 Subd. 6. [AGENCY.] "Agency" means the Minnesota housing 133.9 finance agency created bysections 462A.01 to 462A.24this 133.10 chapter. 133.11 Sec. 4. Minnesota Statutes 2000, section 462A.03, 133.12 subdivision 10, is amended to read: 133.13 Subd. 10. [PERSONS AND FAMILIES OF LOW AND MODERATE 133.14 INCOME.] "Persons and families of low and moderate income" means 133.15 persons and families, irrespective of race, creed, national 133.16 origin, sex, or status with respect to guardianship or 133.17 conservatorship, determined by the agency to require such 133.18 assistance as is made available bysections 462A.01 to 462A.24133.19 this chapter on account of personal or family income not 133.20 sufficient to afford adequate housing. In making such 133.21 determination the agency shall take into account the following: 133.22 (a) The amount of the total income of such persons and families 133.23 available for housing needs, (b) the size of the family, (c) the 133.24 cost and condition of housing facilities available, (d) the 133.25 eligibility of such persons and families to compete successfully 133.26 in the normal housing market and to pay the amounts at which 133.27 private enterprise is providing sanitary, decent and safe 133.28 housing. In the case of federally subsidized mortgages with 133.29 respect to which income limits have been established by any 133.30 agency of the federal government having jurisdiction thereover 133.31 for the purpose of defining eligibility of low and moderate 133.32 income families, the limits so established shall govern under 133.33 theprovisionprovisions ofsections 462A.01 to 462A.24this 133.34 chapter. In all other cases income limits for the purpose of 133.35 defining low or moderate income persons shall be established by 133.36 the agency by rules. 134.1 Sec. 5. Minnesota Statutes 2000, section 462A.03, is 134.2 amended by adding a subdivision to read: 134.3 Subd. 23. [METROPOLITAN AREA.] "Metropolitan area" has the 134.4 meaning given in section 473.121, subdivision 2. 134.5 Sec. 6. Minnesota Statutes 2000, section 462A.04, 134.6 subdivision 6, is amended to read: 134.7 Subd. 6. [MANAGEMENT, CONTROL.] The management and control 134.8 of the agency shall be vested solely in the members in 134.9 accordance with the provisions ofsections 462A.01 to 462A.24134.10 this chapter. 134.11 Sec. 7. Minnesota Statutes 2000, section 462A.05, 134.12 subdivision 16, is amended to read: 134.13 Subd. 16. [PAYMENTS FOR STRUCTURAL DEFECTS.] (a) It may 134.14 make payments or expenditures from the housing development fund 134.15 to persons of low or moderate income, who are recipients of an 134.16 eligible loan as defined in section 462A.03, subdivision 11, or 134.17 who have purchased residential housing from a recipient of such 134.18 eligible loan, and who are owners and occupants of residential 134.19 housing constructed or rehabilitated undersections 462A.01 to134.20462A.24this chapter, when, in the agency's determination, such 134.21 residential housing contains defects or omissions which affect 134.22 the structural soundness, or the use and the livability of such 134.23 housing, including but not limited to defects or omissions in 134.24 materials, hardware, fixtures, design, workmanship and 134.25 landscaping of whatever kind and nature incorporated in said 134.26 housing and which are covered by an agency approved warranty, 134.27 for the purposes of (i) correcting such defects, or (ii) paying 134.28 the claims of the owner arising from such defects, provided, 134.29 that this authority shall exist only if the owner has requested 134.30 assistance from the agency not later than four years after the 134.31 issuance of the eligible loan, or where such residential housing 134.32 was rehabilitated undersections 462A.01 to 462A.24this chapter 134.33 only if the owner has requested assistance from the agency not 134.34 later than two years after the issuance of the eligible loan. 134.35 (b) If such owner elects to receive payments or 134.36 expenditures pursuant to this section, the agency is subrogated 135.1 to the right of such owner to recover damages against any party 135.2 or persons reasonably calculated to be responsible for such 135.3 damages. 135.4 (c) The agency may require from the seller of such 135.5 residential housing, or the contractor responsible for the 135.6 construction or rehabilitation of such housing, an agreement to 135.7 reimburse the agency for any payments and expenditures made 135.8 pursuant to this subdivision with respect to such residential 135.9 housing. 135.10 Sec. 8. Minnesota Statutes 2000, section 462A.05, 135.11 subdivision 22, is amended to read: 135.12 Subd. 22. [LOANS TO FINANCIAL INSTITUTIONS.] It may make 135.13 or participate in the making and enter into commitments for the 135.14 making of loans to any banking institution, savings association, 135.15 or other lender approved by the members, organized under the 135.16 laws of this or any other state or of the United States having 135.17 an office in this state, notwithstanding the provisions of 135.18 section 462A.03, subdivision 13, if it first determines that the 135.19 proceeds of such loans will be utilized for the purpose of 135.20 making loans to or for the benefit of eligible persons and 135.21 families as provided and in accordance withsections 462A.01 to135.22462A.24this chapter. Loans pursuant to this subdivision shall 135.23 be secured, repaid and bear interest at the rate as determined 135.24 by the members. 135.25 Sec. 9. Minnesota Statutes 2000, section 462A.05, 135.26 subdivision 26, is amended to read: 135.27 Subd. 26. [FORMATION OF NONPROFIT CORPORATIONS.] It may, 135.28 when the agency determines it is necessary or desirable to carry 135.29 out its purposes and to exercise any or all of the powers 135.30 conferred upon itunder sections 462A.01 to 462A.24by this 135.31 chapter, and subject to the provisions of subdivision 27, form 135.32 or consent to the formation of one or more corporations under 135.33 the Minnesota Nonprofit Corporation Act, as amended, or under 135.34 other laws of this state. The agency may be a member of the 135.35 corporations, and the members and employees of the agency from 135.36 time to time may be members of the board of directors or 136.1 officers of the corporations. The agency may enter into 136.2 agreements with them providing for the agency to approve various 136.3 aspects of their operations. The agency may capitalize the 136.4 corporations and may acquire all or a part of the corporations' 136.5 share or member certificates. The agency may require that it 136.6 approve aspects of the operation of the corporations including 136.7 the corporations' articles of incorporation or bylaws, 136.8 directors, projects and expenditures, and the sale or conveyance 136.9 of projects, and the issuance of obligations. The agency may 136.10 agree to and may take title to property of the corporations upon 136.11 their dissolution. 136.12 Sec. 10. Minnesota Statutes 2000, section 462A.06, 136.13 subdivision 1, is amended to read: 136.14 Subdivision 1. [LISTED HERE.] For the purpose of 136.15 exercising the specific powers granted in section 462A.05 and 136.16 effectuating the other purposes ofsections 462A.01 to 462A.24136.17 this chapter, the agency shall have the general powers granted 136.18 in this section. 136.19 Sec. 11. Minnesota Statutes 2000, section 462A.06, 136.20 subdivision 4, is amended to read: 136.21 Subd. 4. [RULES.] It may make, and from time to time, 136.22 amend and repeal rules not inconsistent with the provisions of 136.23sections 462A.01 to 462A.24this chapter. 136.24 Sec. 12. Minnesota Statutes 2000, section 462A.07, 136.25 subdivision 10, is amended to read: 136.26 Subd. 10. [HUMAN RIGHTS.] It may establish and enforce 136.27 such rules as may be necessary to insure compliance with chapter 136.28 363, and to insure that occupancy of housing assisted under 136.29sections 462A.01 to 462A.24this chapter shall be open to all 136.30 persons, and that contractors and subcontractors engaged in the 136.31 construction of such housing shall provide an equal opportunity 136.32 for employment to all persons, without discrimination as to 136.33 race, color, creed, religion, national origin, sex, marital 136.34 status, age, and status with regard to public assistance or 136.35 disability. 136.36 Sec. 13. Minnesota Statutes 2000, section 462A.07, 137.1 subdivision 12, is amended to read: 137.2 Subd. 12. [USE OF OTHER AGENCIES.] It may delegate, use or 137.3 employ any federal, state, regional or local public or private 137.4 agency or organization, including organizations of physically 137.5 handicapped persons, upon terms it deems necessary or desirable, 137.6 to assist in the exercise of any of the powers grantedin137.7sections 462A.01 to 462A.24by this chapter and to carry out the 137.8 objectives ofsections 462A.01 to 462A.24this chapter and may 137.9 pay for the services from the housing development fund. 137.10 Sec. 14. Minnesota Statutes 2000, section 462A.073, 137.11 subdivision 1, is amended to read: 137.12 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 137.13 section, the following terms have the meanings given them. 137.14 (b) "Existing housing" means single-family housing that (i) 137.15 has been previously occupied prior to the first day of the 137.16 origination period; or (ii) has been available for occupancy for 137.17 at least 12 months but has not been previously occupied. 137.18 (c)"Metropolitan area" means the metropolitan area as137.19defined in section 473.121, subdivision 2.137.20(d)"New housing" means single-family housing that has not 137.21 been previously occupied. 137.22(e)(d) "Origination period" means the period that loans 137.23 financed with the proceeds of qualified mortgage revenue bonds 137.24 are available for the purchase of single-family housing. The 137.25 origination period begins when financing actually becomes 137.26 available to the borrowers for loans. 137.27(f)(e) "Redevelopment area" means a compact and contiguous 137.28 area within which the city finds by resolution that 70 percent 137.29 of the parcels are occupied by buildings, streets, utilities, or 137.30 other improvements and more than 25 percent of the buildings, 137.31 not including outbuildings, are structurally substandard to a 137.32 degree requiring substantial renovation or clearance. 137.33(g)(f) "Single-family housing" means dwelling units 137.34 eligible to be financed from the proceeds of qualified mortgage 137.35 revenue bonds under federal law. 137.36(h)(g) "Structurally substandard" means containing defects 138.1 in structural elements or a combination of deficiencies in 138.2 essential utilities and facilities, light, ventilation, fire 138.3 protection including adequate egress, layout and condition of 138.4 interior partitions, or similar factors, which defects or 138.5 deficiencies are of sufficient total significance to justify 138.6 substantial renovation or clearance. 138.7 Sec. 15. Minnesota Statutes 2000, section 462A.15, is 138.8 amended to read: 138.9 462A.15 [STATE PLEDGE AGAINST IMPAIRMENT OF CONTRACTS.] 138.10 The state pledges and agrees with the holders of any notes 138.11 or bonds issued undersections 462A.01 to 462A.24this chapter, 138.12 that the state will not limit or alter the rights vested in the 138.13 agency to fulfill the terms of any agreements made with the 138.14 holders thereof, or in any way impair the rights and remedies of 138.15 the holders until the notes or bonds, together with the interest 138.16 thereon, with interest on any unpaid installments of interest, 138.17 and all costs and expenses in connection with any action or 138.18 proceeding by or on behalf of such holders, are fully met and 138.19 discharged. The agency is authorized to include this pledge and 138.20 agreement of the state in any agreement with the holders of such 138.21 notes or bonds. 138.22 Sec. 16. Minnesota Statutes 2000, section 462A.17, 138.23 subdivision 3, is amended to read: 138.24 Subd. 3. [RAMSEY COUNTY VENUE; NOTICE OF PRINCIPAL DUE.] 138.25 The venue of any action or proceedings brought by the trustees 138.26 undersections 462A.01 to 462A.24this chapter, shall be in 138.27 Ramsey county. Before declaring the principal of notes or bonds 138.28 due and payable, the trustee shall first give 30 days' notice in 138.29 writing to the governor, to the agency and to the state 138.30 treasurer. 138.31 Sec. 17. Minnesota Statutes 2000, section 462A.204, 138.32 subdivision 3, is amended to read: 138.33 Subd. 3. [SET ASIDE.] At least one grant must be awarded 138.34 in an area located outside of the metropolitan areaas defined138.35in section 473.121, subdivision 2. A county, a group of 138.36 contiguous counties jointly acting together, or a 139.1 community-based nonprofit organization with a sponsoring 139.2 resolution from each of the county boards of the counties 139.3 located within its operating jurisdiction may apply for and 139.4 receive grants for areas located outside the metropolitan area. 139.5 Sec. 18. Minnesota Statutes 2000, section 462A.205, 139.6 subdivision 4, is amended to read: 139.7 Subd. 4. [AMOUNT AND PAYMENT OF RENT ASSISTANCE.] (a) This 139.8 subdivision applies to both the voucher option and the 139.9 project-based voucher option. 139.10 (b) Within the limits of available appropriations, eligible 139.11 families may receive monthly rent assistance for a 60-month 139.12 period starting with the month the family first receives rent 139.13 assistance under this section. The amount of the family's 139.14 portion of the rental payment is equal to at least 30 percent of 139.15 gross income. 139.16 (c) The rent assistance must be paid by the local housing 139.17 organization to the property owner. 139.18 (d) Subject to the limitations in paragraph (e), the amount 139.19 of rent assistance is the difference between the rent and the 139.20 family's portion of the rental payment. 139.21 (e) In no case: 139.22 (1) may the amount of monthly rent assistance be more than 139.23 $250 for housing located within the metropolitan area, as139.24defined in section 473.121, subdivision 2,or more than $200 for 139.25 housing located outside of the metropolitan area; 139.26 (2) may the owner receive more rent for assisted units than 139.27 for comparable unassisted units; nor 139.28 (3) may the amount of monthly rent assistance be more than 139.29 the difference between the family's portion of the rental 139.30 payment and the fair market rent for the unit as determined by 139.31 the Department of Housing and Urban Development. 139.32 Sec. 19. Minnesota Statutes 2000, section 462A.205, 139.33 subdivision 4a, is amended to read: 139.34 Subd. 4a. [ADDITIONAL AUTHORIZED EXPENSES.] In addition to 139.35 the monthly rent assistance authorized under subdivision 4, rent 139.36 assistance may include up to $200 for a security deposit for 140.1 housing located outside the metropolitan area, as defined in140.2section 473.121, subdivision 2,and up to $250 for a security 140.3 deposit for housing located within the metropolitan area. 140.4 Sec. 20. Minnesota Statutes 2000, section 462A.2091, 140.5 subdivision 3, is amended to read: 140.6 Subd. 3. [ELIGIBLE PROPERTY.] Contracts for deed eligible 140.7 for refinancing with guarantee fund assistance must be for the 140.8 purchase of an owner-occupied single-family or duplex 140.9 structure. In a city of the first class in the metropolitan 140.10 area,as defined in section 473.121, subdivision 2,eligible 140.11 properties must be located in an area in which at least one 140.12 census tract meets at least three of the following four criteria: 140.13 (1) at least 70 percent of the housing structures were 140.14 built before 1960; 140.15 (2) at least 60 percent of the single-family housing is 140.16 owner-occupied; 140.17 (3) the median market value of the area's owner-occupied 140.18 housing, as recorded in the most recent federal decennial 140.19 census, is not more than 100 percent of the purchase price limit 140.20 for existing homes eligible for purchase in the area under the 140.21 agency's home mortgage loan program; and 140.22 (4) between 1980 and 1990, the rate of owner occupancy of 140.23 residential properties in the area declined by at least five 140.24 percent, or at least 80 percent of the residential properties in 140.25 the area are rental properties. 140.26 The area must include eight blocks in any direction from 140.27 the census tract. Priority must be given for property located 140.28 in an area that meets all four criteria. 140.29 Sec. 21. Minnesota Statutes 2000, section 462A.2093, 140.30 subdivision 1, is amended to read: 140.31 Subdivision 1. [DEFINITIONS.] For purposes of this 140.32 section, the following terms have the meanings given them in 140.33 this subdivision. 140.34 (a) "Municipality" means a town or a statutory or home rule 140.35 city. 140.36 (b) "Nonmetropolitan" means the area of the state outside 141.1 of the metropolitan areadefined in section 473.121, subdivision141.22. 141.3 (c) "Inclusionary housing development" means a new 141.4 construction development including owner-occupied or rental 141.5 housing, or a combination of both, with a variety of prices and 141.6 designs which serve families with a range of incomes and housing 141.7 needs. 141.8 Sec. 22. Minnesota Statutes 2000, section 462A.21, 141.9 subdivision 5, is amended to read: 141.10 Subd. 5. [OTHER AGENCY PURPOSES.] It may expend moneys in 141.11 the fund, not otherwise appropriated, for such other agency 141.12 purposes as previously enumerated insections 462A.01 to 462A.24141.13 this chapter as the agency in its discretion shall determine and 141.14 provide. 141.15 Sec. 23. Minnesota Statutes 2000, section 462A.222, 141.16 subdivision 1a, is amended to read: 141.17 Subd. 1a. [DETERMINATION OF REGIONAL CREDIT POOLS.] The 141.18 agency shall divide the annual per capita amount used in 141.19 determining the state ceiling for low-income housing tax credits 141.20 provided under section 42 of the Internal Revenue Code of 1986, 141.21 as amended, into a metropolitan pool and a greater Minnesota 141.22 pool. The metropolitan pool shall serve the metropolitan area 141.23as defined in section 473.121, subdivision 2. The greater 141.24 Minnesota pool shall serve the remaining counties of the state. 141.25 The percentage of the annual per capita amount allotted to each 141.26 pool must be determined as follows: 141.27 (a) The percentage set-aside for projects involving a 141.28 qualified nonprofit organization as provided in section 42 of 141.29 the Internal Revenue Code of 1986, as amended, must be deducted 141.30 from the annual per capita amount used in determining the state 141.31 ceiling. 141.32 (b) Of the remaining amount, the metropolitan pool must be 141.33 allotted a percentage equal to the metropolitan counties' 141.34 percentage of the total number of state recipients of the 141.35 Minnesota family investment program, general assistance, 141.36 Minnesota supplemental aid, and supplemental security income in 142.1 the state, as reported annually by the department of human 142.2 services. The greater Minnesota pool must be allotted the 142.3 amount remaining after the metropolitan pool's percentage has 142.4 been allotted. 142.5 The set-aside for qualified nonprofit organizations must be 142.6 divided between the two regional pools in the same percentage as 142.7 determined for the credit amounts above. 142.8 Sec. 24. Minnesota Statutes 2000, section 462A.24, is 142.9 amended to read: 142.10 462A.24 [CONSTRUCTION.] 142.11Sections 462A.01 to 462A.24 areThis chapter is necessary 142.12 for the welfare of the state of Minnesota and its inhabitants; 142.13 therefore, it shall be liberally construed to effect its purpose. 142.14 Sec. 25. Minnesota Statutes 2000, section 462A.33, 142.15 subdivision 2, is amended to read: 142.16 Subd. 2. [ELIGIBLE RECIPIENTS.] Challenge grants or loans 142.17 may be made to a city, a private developer, a nonprofit 142.18 organization, or the owner of the housing, including 142.19 individuals. For the purpose of this section, "city" has the 142.20 meaning given it in section 462A.03, subdivision 21. Preference 142.21 shall be given to challenge grants or loans for home ownership. 142.22 To the extent practicable, grants and loans shall be made so 142.23 that an approximately equal number of housing units are financed 142.24 in the metropolitan area, as defined in section 473.121,142.25subdivision 2,and in the nonmetropolitan area. 142.26 Sec. 26. [462A.34] [VISITABILITY REQUIREMENT.] 142.27 All new construction of single-family homes, duplexes, 142.28 triplexes, and multilevel townhouses that are financed in whole 142.29 or in part by the agency must incorporate basic visitability 142.30 access into their design and construction. For the purpose of 142.31 this section, "visitability" means designing a dwelling so that 142.32 people with mobility impairments may enter and comfortably stay 142.33 for a duration. The specific design elements include one 142.34 no-step entrance, 32-inch clear doorways throughout the 142.35 dwelling, and a one-half bathroom on the main level. The agency 142.36 may waive the one-half bathroom requirement if it reduces 143.1 affordability for the targeted population of the agency program 143.2 from which it is funded. The agency may waive the no-step 143.3 entrance requirement if topographical conditions make the 143.4 requirement impractical. 143.5 ARTICLE 11 143.6 MISCELLANEOUS PROVISIONS 143.7 Section 1. Minnesota Statutes 2000, section 116L.16, is 143.8 amended to read: 143.9 116L.16 [DISTANCE-WORK GRANTS.] 143.10 The job skills partnership board may make grants-in-aid for 143.11 distance-work projects. The purpose of the grants is to promote 143.12 distance-work projects involving technology in rural areas and 143.13 may include a consortium of organizations partnering in the 143.14 development of rural technology industry. Grants may be used to 143.15 identify and train rural workers in technology, act as a 143.16 catalyst to bring together employers and rural employees to 143.17 perform distance work, and provide rural workers with physical 143.18 connections to telecommunications infrastructure, where 143.19 necessary, in order to be self-employed or employed from their 143.20 homes or satellite offices. Grants must be made according to 143.21 sections 116L.02 and 116L.04, except that: 143.22 (1) the business match may include, but is not limited 143.23 to, office space; additional management or technology staff 143.24 costs; start-up equipment costs such as telecommunications 143.25 infrastructure, additional software, or computer upgrades; 143.26 consulting fees for implementation of distance-work policies or 143.27 identification and skill assessment of potential employees; and 143.28 the joint financial contribution of two or more businesses 143.29 acting as a consortium; 143.30 (2) cash or in-kind contributions by partnering 143.31 organizations may be used as a match; 143.32 (3) eligible grantees may be educational or nonprofit 143.33 educational training organizations;and143.34 (4) grants-in-aid may be packaged with loans under section 143.35 116L.06, subdivision 6; and 143.36 (5) with respect to grants serving as a catalyst to bring 144.1 together employers and rural employees to perform distance work, 144.2 the match does not have to be one-to-one. 144.3 The board shall, to the extent there are sufficient 144.4 applications, make grant awards to as many parts of the state as 144.5 possible. Subject to the requirement for geographic 144.6 distribution of grants, preference shall be given to grant 144.7 applications that provide the most cost-effective training 144.8 proposals, that provide the best prospects for high-paying jobs 144.9 with high retention rates, or that are from more economically 144.10 distressed rural areas or communities. 144.11 Grantees must meet reporting and evaluation requirements 144.12 established by the board. 144.13 Sec. 2. Minnesota Statutes 2000, section 181.945, is 144.14 amended to read: 144.15 181.945 [LEAVE FOR BONE MARROW DONATIONS AND ORGAN 144.16 DONATION.] 144.17 Subdivision 1. [DEFINITIONS.] (a) For the purposes of this 144.18 section, the following terms have the meanings given to them in 144.19 this subdivision. 144.20 (b) "Employee" means a person who performs services for 144.21 hire for an employer, for an average of 20 or more hours per 144.22 week, and includes all individuals employed at any site owned or 144.23 operated by an employer. Employee does not include an 144.24 independent contractor. 144.25 (c) "Employer" means a person or entity that employs 20 or 144.26 more employees at at least one site and includes an individual, 144.27 corporation, partnership, association, nonprofit organization, 144.28 group of persons, state, county, town, city, school district, or 144.29 other governmental subdivision. 144.30 Subd. 2. [LEAVE; BONE MARROW DONATIONS.] An employer must 144.31 grant paid leaves of absence to an employee who seeks to undergo 144.32 a medical procedure to donate bone marrow. The combined length 144.33 of the leaves shall be determined by the employee, but may not 144.34 exceed 40 work hours, unless agreed to by the employer. The 144.35 employer may require verification by a physician of the purpose 144.36 and length of each leave requested by the employee to donate 145.1 bone marrow. If there is a medical determination that the 145.2 employee does not qualify as a bone marrow donor, the paid leave 145.3 of absence granted to the employee prior to that medical 145.4 determination is not forfeited. 145.5 Subd. 2a. [LEAVE; ORGAN DONATION.] An employer must grant 145.6 a paid leave of absence to an employee who seeks to undergo a 145.7 medical procedure to donate an organ or partial organ to another 145.8 person. The length of the leave shall be determined by the 145.9 employee, but may not exceed 30 working days unless agreed to by 145.10 the employer. The employer may require verification by a 145.11 physician of the purpose and length of the leave required by the 145.12 employee for organ donation. If there is a medical 145.13 determination that the employee does not qualify as an organ 145.14 donor, the paid leave of absence granted to the employee prior 145.15 to that medical determination is not forfeited. 145.16 Subd. 3. [NO EMPLOYER SANCTIONS.] An employer shall not 145.17 retaliate against an employee for requesting or obtaining a 145.18 leave of absence as provided by this section. 145.19 Subd. 4. [RELATIONSHIP TO OTHER LEAVE.] This section does 145.20 not prevent an employer from providing leave for bone marrow or 145.21 organ donations in addition to leave allowed under this 145.22 section. This section does not affect an employee's rights with 145.23 respect to any other employment benefit. 145.24 Sec. 3. [268.195] [UNEMPLOYMENT INSURANCE TECHNOLOGY 145.25 INITIATIVE.] 145.26 Subdivision 1. [PURPOSE; SET-ASIDE.] The unemployment 145.27 insurance technology initiative involves a set-aside of a 145.28 portion of the money that would otherwise go into the 145.29 unemployment insurance trust fund. This money would then be 145.30 used on technology to provide substantially enhanced 145.31 unemployment insurance services to both applicants for benefits 145.32 and employers. 145.33 Subd. 2. [TAX REDUCTION; FEE ASSESSED.] (a) 145.34 Notwithstanding section 268.051, subdivision 2, paragraph (b), 145.35 effective January 1, 2002, the base unemployment tax rate on all 145.36 taxable wages shall be reduced 0.02 percent, from 0.1 percent to 146.1 0.08 percent. This reduction shall expire on December 31, 2005. 146.2 (b) Effective January 1, 2002, there shall be an 146.3 unemployment insurance technology initiative fee on taxpaying 146.4 employers, equal to the amount of the base unemployment tax rate 146.5 reduction of 0.02 percent on all taxable wages. This fee shall 146.6 be due and be paid on the same schedule and in the same manner 146.7 as unemployment taxes under section 268.051. Any past due fee 146.8 under this section shall be subject to the same interest and 146.9 collection provisions as unemployment taxes. The money 146.10 collected by this fee, less reimbursement for collection costs, 146.11 shall be deposited in the unemployment insurance technology 146.12 initiative account. This fee shall expire on December 31, 2005. 146.13 Subd. 3. [ACCOUNT.] (a) Effective January 1, 2002, there 146.14 is hereby created in the state treasury a special account known 146.15 as the unemployment insurance technology initiative account. 146.16 This account shall lapse on December 31, 2007, and any money 146.17 remaining in that account on that date shall be paid into the 146.18 unemployment insurance program trust fund. This account shall 146.19 consist of all money collected by the unemployment insurance 146.20 technology initiative fee and all interest earned upon any money 146.21 in this account, less amounts under paragraph (e). 146.22 (b) Money in this account is hereby appropriated to the 146.23 commissioner and shall be allocated and expended by the 146.24 commissioner only for technology initiatives to enhance 146.25 unemployment insurance services for both applicants for benefits 146.26 and employers. 146.27 (c) Any funds not allocated, obligated, or expended in a 146.28 fiscal year shall be available for allocation, obligation, and 146.29 expenditure in the following fiscal year. 146.30 (d) If the total amount collected by the technology 146.31 initiative fee, excluding the amount expended for reimbursement 146.32 of collection costs plus interest earned upon money in the 146.33 unemployment insurance technology initiative account exceeds 146.34 $30,000,000, the excess shall be paid into the unemployment 146.35 insurance program trust fund. 146.36 (e) Because the administrative cost of collection of the 147.1 technology initiative fee is borne by federal money made 147.2 available only to administer the unemployment insurance program, 147.3 the commissioner shall negotiate with the United States 147.4 Department of Labor the amount of any reimbursement for costs 147.5 related to collection of the fee. Because the amount of any 147.6 such reimbursement is subsequently made available by the United 147.7 States Department of Labor to the commissioner for 147.8 administration of the unemployment insurance program, the 147.9 commissioner shall expend, from the federal Unemployment 147.10 Insurance Administration grant, an amount equal to the 147.11 reimbursement on direct personnel costs of developing, 147.12 designing, and implementing the unemployment insurance 147.13 technology initiative. 147.14 Subd. 4. [SUNSET.] This section expires December 31, 2007. 147.15 Sec. 4. Minnesota Statutes 2000, section 473.195, is 147.16 amended by adding a subdivision to read: 147.17 Subd. 5. [HRA GOVERNING BOARD.] For the purposes of 147.18 exercising the authority granted to it under this section, the 147.19 council may, at its sole discretion, establish within the 147.20 council's existing organizational structure a separate governing 147.21 body to which the council may delegate any or all of the 147.22 authority granted to the council under this section. The 147.23 resolution establishing the separate governing body must: 147.24 (1) set out the powers and duties delegated to the separate 147.25 governing body; 147.26 (2) prescribe the number, qualifications, and terms of the 147.27 its members; and 147.28 (3) provide for any other terms and conditions that are 147.29 deemed appropriate by the council. 147.30 The council shall appoint the members of the separate governing 147.31 body in accordance with a process established by the council. 147.32 No fewer than 75 percent of the members of the separate 147.33 governing body must be council members. For purposes of 147.34 compliance with United State Code, title 42, section 1437(b), 147.35 and implementing federal regulations, at least one member of the 147.36 separate governing body members must be a resident directly 148.1 assisted by the council. Members are entitled to reimbursement 148.2 for all actual and necessary expenses incurred in the 148.3 performance of governing body business, and a member other than 148.4 a council member is entitled to payment of $50 for each day the 148.5 member attends one or more meetings of the separate governing 148.6 body or performs other services authorized by the body. The 148.7 council shall provide administrative and staff support to the 148.8 separate governing body. The council may, at its sole 148.9 discretion, abolish the separate governing body or limit or 148.10 expand its delegated authority. Nothing in this section impairs 148.11 existing contracts to which the council is a party or limits the 148.12 council's ability to enter into contracts when the council 148.13 exercises any of the functions, rights, powers, duties, 148.14 privileges, immunities, and limitations granted to the council 148.15 by this section. 148.16 Sec. 5. [EXEMPTION FROM ADDITIONAL BENEFITS REQUIREMENTS; 148.17 FINGERHUT; MORA; ONAN POWER ELECTRONICS; NICOLLET COUNTY.] 148.18 Notwithstanding Minnesota Statutes, section 268.125, 148.19 subdivisions 1 and 3, clauses (1) and (5), an applicant is 148.20 eligible to receive additional benefits under Minnesota 148.21 Statutes, section 268.125, effective the week following the week 148.22 in which the applicant exhausted regular benefits if: 148.23 (1) the applicant was laid off due to lack of work from 148.24 Fingerhut, Inc., in Mora, Minnesota, after January 1, 2001, or 148.25 from Onan Power Electronics in Nicollet county; and 148.26 (2) the commissioner of economic security finds that the 148.27 applicant satisfies the conditions of Minnesota Statutes, 148.28 section 268.125, subdivision 3, clauses (2) to (4). 148.29 This section does not apply to any applicant who, with 148.30 respect to any period prior to June 1, 2001, receives, or has an 148.31 agreement to receive, a retirement pension financed in whole or 148.32 in part by Fingerhut, Inc. or Onan Power Electronics. 148.33[EFFECTIVE DATE.] This section is effective the day 148.34 following final enactment. 148.35 Sec. 6. [EXEMPTION FROM ADDITIONAL BENEFITS REQUIREMENTS; 148.36 M.E. INTERNATIONAL, ST. LOUIS COUNTY.] 149.1 Notwithstanding Minnesota Statutes, section 268.125, 149.2 subdivisions 1 and 3, clauses (1) and (5), an applicant is 149.3 eligible to receive additional benefits under Minnesota 149.4 Statutes, section 268.125, effective the week following the week 149.5 in which the applicant exhausted regular benefits if: 149.6 (1) the applicant was laid off due to lack of work from M. 149.7 E. International in St. Louis county on February 25, 2000; and 149.8 (2) the commissioner of economic security finds that the 149.9 applicant satisfies the conditions of Minnesota Statutes, 149.10 section 268.125, subdivision 3, clauses (2) to (4). 149.11 This section does not apply to any applicant who, with 149.12 respect to any period prior to September 1, 2001, receives, or 149.13 has an agreement to receive, a retirement pension financed in 149.14 whole or in part by M. E. International. 149.15[EFFECTIVE DATE.] This section is effective the day 149.16 following final enactment. 149.17 Sec. 7. [VOLUNTARY PAID PARENTAL LEAVE PROGRAM.] 149.18 Subdivision 1. [CREATED.] The commissioner of economic 149.19 security shall operate a pilot program to reimburse an 149.20 "employer" in Minnesota, as defined in Minnesota Statutes, 149.21 section 268.035, subdivision 14, that provides qualified paid 149.22 parental leave. "Qualified paid parental leave" or "leave" is 149.23 an employer-paid leave of absence to an employee residing in 149.24 Minnesota who is a natural or adoptive parent in conjunction 149.25 with the birth or adoption of a child. Qualified paid parental 149.26 leave does not include sick leave or vacation leave. Before 149.27 receiving qualified paid parental leave, however, an employee 149.28 must use up other paid leave available to the employee, 149.29 including accumulated vacation time and time covered by 149.30 temporary disability insurance. Qualified paid parental leave 149.31 must occur within the first year of birth or during the first 149.32 year in which the employee becomes an adoptive parent. To 149.33 qualify for reimbursement under subdivision 2, an employer must 149.34 pay an employee at least $200 per week of qualified paid 149.35 parental leave unless the employee's preleave salary was $300 or 149.36 less, in which case the employer must pay at least $100 per 150.1 week. Qualified paid parental leave must be at least six 150.2 consecutive weeks in duration. 150.3 Subd. 2. [REIMBURSEMENT AMOUNT.] Reimbursement is one-half 150.4 the employer weekly leave payment; except that, for employees 150.5 with weekly preleave wages below $300, reimbursement is $100 if 150.6 the employer pays qualified paid parental leave of at least that 150.7 much. Except for employees with a preleave salary of $300 or 150.8 less, reimbursement cannot exceed one-third of an employee's 150.9 preleave salary. Reimbursement is limited to 26 weeks. 150.10 Reimbursement is subject to a maximum of $250 per week. The 150.11 commissioner shall adjust the maximum reimbursement annually by 150.12 the United States All-Items Consumer Price Index to reflect 150.13 inflation. Benefits received under this section are income for 150.14 the purposes of Minnesota Statutes, section 119B.061. 150.15 Subd. 3. [NOTIFICATION.] The commissioner of economic 150.16 security shall notify employers of the voluntary paid parental 150.17 leave program through the department's newsletter, Web site, and 150.18 other communications with employers. 150.19 Subd. 4. [EVALUATION.] By February 1, 2003, the 150.20 commissioner of economic security shall report to the 150.21 legislature on the number of employers requesting paid parental 150.22 leave reimbursement, including an estimation of the number, 150.23 size, and industry type of employers obtaining reimbursement; 150.24 the number of employees who have taken parental leave under the 150.25 program; the average and range of leave lengths reimbursed; and 150.26 the average and ranges of payments, as well as implementation 150.27 issues identified by the commissioner. In addition, the 150.28 commissioner shall obtain a sample of at least 30 participating 150.29 families to provide additional information on employee's and 150.30 employer's experiences, including information on the salary 150.31 ranges of participating employees, employee and employer 150.32 satisfaction or dissatisfaction with the program, and other 150.33 information identified by the commissioner. 150.34[EFFECTIVE DATE.] This section is effective July 1, 2001, 150.35 and applies to employer-paid leave benefits paid on or after 150.36 that date.