Minnesota Legislature
HF 5
2nd Engrossment - 82nd Legislature, 2001 1st Special Session (2001 - 2002) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
1.1 A bill for an act 1.2 relating to state government; appropriating money for 1.3 economic development, housing, and certain agencies of 1.4 state government; establishing and modifying programs; 1.5 abolishing the department of economic security; 1.6 transferring certain duties and funds; creating a 1.7 transition team for the reorganization of state 1.8 departments; consolidating housing programs; 1.9 regulating activities and practices; modifying fees; 1.10 making conforming changes; requiring reports; 1.11 codifying reorganization order No. 181; transferring 1.12 the remaining duties of the commissioner of public 1.13 service to the commissioner of commerce; instructing 1.14 the revisor to change certain terms; amending 1.15 Minnesota Statutes 2000, sections 3.922, by adding a 1.16 subdivision; 3C.12, subdivision 2; 13.679; 15.01; 1.17 15.06, subdivision 1; 15A.0815, subdivision 2; 16B.32, 1.18 subdivision 2; 16B.335, subdivision 4; 16B.56, 1.19 subdivision 1; 16B.76, subdivision 1; 17.86, 1.20 subdivision 3; 18.024, subdivision 1; 43A.08, 1.21 subdivision 1a; 45.012; 103F.325, subdivisions 2, 3; 1.22 115A.15, subdivision 5; 116J.8731, subdivision 1; 1.23 116L.03; 116L.04, by adding a subdivision; 116L.05, by 1.24 adding a subdivision; 116L.16; 116O.06, subdivision 2; 1.25 123B.65, subdivisions 1, 3, 5; 138.664, by adding a 1.26 subdivision; 161.45, subdivision 1; 168.61, 1.27 subdivision 1; 169.073; 174.03, subdivision 7; 181.30; 1.28 184.29; 184.30, subdivision 1; 184.38, subdivisions 6, 1.29 8, 9, 10, 11, 17, 18, 20; 184.41; 216A.01; 216A.035; 1.30 216A.036; 216A.05, subdivision 1; 216A.07, subdivision 1.31 1; 216A.08; 216A.085, subdivision 3; 216B.02, 1.32 subdivisions 1, 7, 8; 216B.16, subdivisions 1, 2, 6b, 1.33 15; 216B.162, subdivisions 7, 11; 216B.1675, 1.34 subdivision 9; 216B.241, subdivisions 1a, 1b, 2b; 1.35 216C.01, subdivisions 1, 2, 3; 216C.051, subdivision 1.36 6; 216C.37, subdivision 1; 216C.40, subdivision 4; 1.37 216C.41, as amended; 237.02; 237.075, subdivisions 2, 1.38 9; 237.082; 237.21; 237.30; 237.462, subdivision 6; 1.39 237.51, subdivisions 1, 5, 5a; 237.52, subdivisions 2, 1.40 4, 5; 237.54, subdivision 2; 237.55; 237.59, 1.41 subdivision 2; 237.768; 239.01; 239.10; 268.022, 1.42 subdivision 2; 268.145, subdivision 1; 268.665, by 1.43 adding a subdivision; 325E.11; 325E.115, subdivision 1.44 2; 326.243; 462A.01; 462A.03, subdivisions 1, 6, 10, 1.45 by adding a subdivision; 462A.04, subdivision 6; 1.46 462A.05, subdivisions 14, 14a, 16, 22, 26; 462A.06, 2.1 subdivisions 1, 4; 462A.07, subdivisions 10, 12; 2.2 462A.073, subdivision 1; 462A.15; 462A.17, subdivision 2.3 3; 462A.20, subdivision 3; 462A.201, subdivisions 2, 2.4 6; 462A.204, subdivision 3; 462A.205, subdivisions 4, 2.5 4a; 462A.209; 462A.2091, subdivision 3; 462A.2093, 2.6 subdivision 1; 462A.2097; 462A.21, subdivisions 5, 10, 2.7 by adding subdivisions; 462A.222, subdivision 1a; 2.8 462A.24; 462A.33, subdivisions 1, 2, 3, 5, by adding a 2.9 subdivision; 473.195, by adding a subdivision; 484.50; 2.10 Laws 1993, chapter 301, section 1, subdivision 4, as 2.11 amended; Laws 1995, chapter 248, article 12, section 2.12 2, as amended; Laws 1995, chapter 248, article 13, 2.13 section 2, subdivision 2, as amended; Laws 2000, 2.14 chapter 488, article 8, section 2, subdivision 6; 2.15 proposing coding for new law in Minnesota Statutes, 2.16 chapters 116L; 181; 462A; repealing Minnesota Statutes 2.17 2000, sections 184.22, subdivisions 2, 3, 4, 5; 2.18 184.37, subdivision 2; 216A.06; 237.69, subdivision 3; 2.19 268.975; 268.976; 268.9771; 268.978; 268.9781; 2.20 268.9782; 268.9783; 268.979; 268.98; 462A.201, 2.21 subdivision 4; 462A.207; 462A.209, subdivision 4; 2.22 462A.21, subdivision 17; 462A.221, subdivision 4; 2.23 462A.30, subdivision 2; 462A.33, subdivisions 4, 6, 7. 2.24 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.25 ARTICLE 1 2.26 APPROPRIATIONS 2.27 Section 1. [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 2.28 The sums shown in the columns marked "APPROPRIATIONS" are 2.29 appropriated from the general fund, or another named fund, to 2.30 the agencies and for the purposes specified in this act, to be 2.31 available for the fiscal years indicated for each purpose. The 2.32 figures "2002" and "2003," where used in this act, mean that the 2.33 appropriation or appropriations listed under them are available 2.34 for the year ending June 30, 2002, or June 30, 2003, 2.35 respectively. The term "first year" means the fiscal year 2.36 ending June 30, 2002, and "second year" means the fiscal year 2.37 ending June 30, 2003. 2.38 SUMMARY BY FUND 2.39 2002 2003 TOTAL 2.40 General $192,471,000 $192,612,000 $385,083,000 2.41 Petroleum Tank 2.42 Cleanup 1,064,000 1,084,000 2,148,000 2.43 Environmental Fund 700,000 700,000 1,400,000 2.44 TANF Block Grant 15,198,000 14,302,000 29,500,000 2.45 Workers' 2.46 Compensation 23,216,000 23,765,000 46,981,000 2.47 Special Revenue 2.48 Fund 11,849,000 10,942,000 22,791,000 3.1 TOTAL $244,498,000 $243,405,000 $487,903,000 3.2 APPROPRIATIONS 3.3 Available for the Year 3.4 Ending June 30 3.5 2002 2003 3.6 Sec. 2. TRADE AND ECONOMIC DEVELOPMENT 3.7 Subdivision 1. Total 3.8 Appropriation $41,965,000 $39,591,000 3.9 Summary by Fund 3.10 General 38,453,000 37,426,000 3.11 TANF Block Grant 1,750,000 1,000,000 3.12 Environmental Fund 700,000 700,000 3.13 Special 3.14 Revenue Fund 1,062,000 465,000 3.15 The amounts that may be spent from this 3.16 appropriation for each program are 3.17 specified in the following subdivisions. 3.18 Subd. 2. Business and Community 3.19 Development 13,149,000 11,167,000 3.20 Summary by Fund 3.21 General 11,852,000 10,467,000 3.22 Environmental Fund 700,000 700,000 3.23 Special 3.24 Revenue Fund 597,000 -0- 3.25 (a) $3,867,000 the first year and 3.26 $3,867,000 the second year are for 3.27 Minnesota investment fund grants. It 3.28 is the intention of the legislature 3.29 that the base funding for the Minnesota 3.30 investment fund in the 2004-2005 3.31 biennium be $4,017,000 each year. 3.32 (b) $150,000 the first year and 3.33 $150,000 the second year are for 3.34 one-time grants to the rural policy and 3.35 development center at Minnesota State 3.36 University, Mankato. The grant shall 3.37 be used for research and policy 3.38 analysis on emerging economic and 3.39 social issues in rural Minnesota, to 3.40 serve as a policy resource center for 3.41 rural Minnesota communities, to 3.42 encourage collaboration across higher 3.43 education institutions to provide 3.44 interdisciplinary team approaches to 3.45 research and problem solving in rural 3.46 communities, and to administer overall 3.47 operations of the center. 3.48 The grant shall be provided upon the 3.49 condition that each state-appropriated 3.50 dollar be matched with a 3.51 non-state-appropriated dollar. 3.52 Acceptable matching funds are 3.53 non-state-appropriated contributions 3.54 that the center has received after July 4.1 1, 2000, and have not been used to 4.2 match previous state grants. The funds 4.3 not spent the first year are available 4.4 the second. 4.5 (c) $155,000 the first year and 4.6 $155,000 the second year are for 4.7 one-time grants to the metropolitan 4.8 economic development association for 4.9 continuing minority business 4.10 development programs in the 4.11 metropolitan area. 4.12 (d) $300,000 the first year is for 4.13 one-time grants to nonprofit 4.14 organizations to provide technical 4.15 assistance to individuals to support 4.16 the start-up and growth of 4.17 self-employment and microenterprise 4.18 businesses. Eligible businesses are 4.19 microenterprises employing fewer than 4.20 five people plus the owner and 4.21 requiring under $35,000 or no capital 4.22 to start or expand the business. 4.23 Nonprofit organizations must apply for 4.24 grants under this subdivision following 4.25 procedures established by the 4.26 commissioner. To be eligible for a 4.27 grant, an organization must demonstrate 4.28 to the commissioner that it has the 4.29 appropriate expertise. The 4.30 commissioner shall give preference for 4.31 grants to organizations that target 4.32 nontraditional entrepreneurs such as 4.33 women, members of a minority, 4.34 low-income individuals, or persons 4.35 seeking work who are currently on or 4.36 recently removed from welfare 4.37 assistance or who have recently been 4.38 laid off from their previous employment. 4.39 An application must include: 4.40 (1) the local need for microenterprise 4.41 support; 4.42 (2) proposed criteria for business 4.43 eligibility; 4.44 (3) a proposal for identifying and 4.45 serving eligible businesses; 4.46 (4) a description of technical 4.47 assistance to be provided to eligible 4.48 businesses; 4.49 (5) a proposal to coordinate technical 4.50 assistance with financial assistance; 4.51 (6) demonstration of an ability to 4.52 collaborate with other agencies 4.53 including educational and financial 4.54 institutions; and 4.55 (7) project goals identifying the 4.56 number of eligible businesses to be 4.57 assisted with the state funds awarded 4.58 under the grant. 4.59 Grant recipients must report to the 5.1 commissioner by February 1 in each of 5.2 the two years after the year of receipt 5.3 of the grant. The report must detail 5.4 the number of customers served; the 5.5 number of businesses started, 5.6 stabilized, or expanded; the number of 5.7 jobs created and retained; and business 5.8 success rates. The commissioner shall 5.9 report to the legislature on the 5.10 microenterprise entrepreneurial 5.11 assistance. The report shall contain 5.12 an evaluation of the results. 5.13 (e) $35,000 the first year is for a 5.14 one-time grant for a pilot project 5.15 incubated by Blue Earth county named 5.16 the Rural Advanced Business 5.17 Facilitation Program. The grant shall 5.18 be provided on the condition that the 5.19 funds be matched on a one-to-one basis 5.20 from nonstate sources. This 5.21 appropriation is available until June 5.22 30, 2003. 5.23 (f) $500,000 the first year is for a 5.24 one-time grant to the city of St. Paul 5.25 for the planning, predesign, and design 5.26 of the new Roy Wilkins auditorium and 5.27 exhibit hall. This appropriation is 5.28 available until June 30, 2003. 5.29 (g) $50,000 the first year is for a 5.30 one-time grant to Minnesota rural 5.31 partners. This grant must be used only 5.32 for the Minnesota rural summit and 5.33 shall be provided on the condition that 5.34 funds be matched on a one-to-one basis 5.35 from nongovernmental sources. This 5.36 appropriation is available until June 5.37 30, 2003. 5.38 (h) $100,000 the first year is for a 5.39 one-time grant to the Albert Lea Port 5.40 Authority to remodel a building in the 5.41 Northaire Industrial Park. Of this 5.42 amount, $50,000 is from the Minnesota 5.43 investment fund. This appropriation is 5.44 available until June 30, 2003. This 5.45 grant must be matched on a two-for-one 5.46 basis by nonstate funds. 5.47 (i) $300,000 the first year is for a 5.48 one-time grant to the St. Paul port 5.49 authority for the 33-acre Trillium site 5.50 that is part of the Trout Brook 5.51 greenway corridor in St. Paul. 5.52 (j) Notwithstanding the limit in 5.53 Minnesota Statutes, section 116J.8731, 5.54 subdivision 5, a grant of up to 5.55 $1,000,000 may be made to a political 5.56 subdivision that is chosen as a site 5.57 for a soybean oilseed processing 5.58 facility constructed by a 5.59 Minnesota-based cooperative. The grant 5.60 may be used for site preparation, 5.61 predevelopment, and other 5.62 infrastructure improvements, including 5.63 public and private utility improvements 5.64 that are necessary for development of 5.65 the oilseed processing facility. The 6.1 grant may be made any time until June 6.2 30, 2003. 6.3 (k) $500,000 the first year is from the 6.4 workforce development fund for a grant 6.5 to the city of Duluth to support the 6.6 development of the Duluth Technology 6.7 Village. This is a one-time 6.8 expenditure, and funds not spent the 6.9 first year are available the second 6.10 year. 6.11 (l) $75,000 in fiscal year 2002 is for 6.12 a grant to the West Central Growth 6.13 Alliance to establish a regional 6.14 marketing plan, economic development 6.15 pilot project in Big Stone, Chippewa, 6.16 Kandiyohi, Lac Qui Parle, Meeker, 6.17 Renville, Stevens, Swift, and Yellow 6.18 Medicine counties. The grant must be 6.19 matched by $75,000 in nonstate money. 6.20 This is a one-time appropriation. This 6.21 appropriation is available until June 6.22 30, 2003. 6.23 (m) $150,000 the first year is for a 6.24 one-time grant to the city of Ironton 6.25 to be applied to planning for the 6.26 Cuyuna Range Technology Center. This 6.27 appropriation is available until June 6.28 30, 2003. The grant must be matched by 6.29 $150,000 in nonstate money. 6.30 (n) $97,000 the first year from the 6.31 workforce development fund is for a 6.32 one-time grant to Neighborhood 6.33 Development Center, Inc. The funds not 6.34 spent the first year are available the 6.35 second. 6.36 Subd. 3. Minnesota Trade Office 6.37 2,466,000 2,614,000 6.38 On or before July 10, 2001, the 6.39 commissioner of finance shall transfer 6.40 the following amounts from the 6.41 unencumbered balance in the export 6.42 finance authority working capital 6.43 account created by Minnesota Statutes, 6.44 section 116J.9673: to the workforce 6.45 development fund, $350,000; and to the 6.46 general fund, $771,000. 6.47 Subd. 4. Workforce Development 11,045,000 10,295,000 6.48 Summary by Fund 6.49 General 8,830,000 8,830,000 6.50 Special Revenue 465,000 465,000 6.51 TANF Block Grant 1,750,000 1,000,000 6.52 (a) $8,500,000 the first year and 6.53 $8,500,000 the second year are for the 6.54 job skills partnership and pathways 6.55 programs. If the appropriation for 6.56 either year is insufficient, the 6.57 appropriation for the other year is 6.58 available. This appropriation does not 7.1 cancel. 7.2 (b) $450,000 the first year and 7.3 $450,000 the second year are for 7.4 one-time grants to Lifetrack Resources 7.5 for its immigrant/refugee collaborative 7.6 programs, including those related to 7.7 job-seeking skills and workplace 7.8 orientation, intensive job development, 7.9 functional work English, and on-site 7.10 job coaching. Of this amount, $200,000 7.11 each year is from the workforce 7.12 development fund and $250,000 each year 7.13 is from the state's federal TANF block 7.14 grant under Title I of Public Law 7.15 Number 104-193 to the commissioner of 7.16 human services, to be transferred to 7.17 the commissioner of trade and economic 7.18 development. 7.19 (c) $330,000 the first year and 7.20 $330,000 the second year are from the 7.21 general fund for one-time grants to 7.22 Twin Cities Rise to provide training to 7.23 hard-to-train individuals. Twin Cities 7.24 Rise must report to the commissioner by 7.25 October 1 after the close of each 7.26 fiscal year. The report must detail 7.27 the number of participants served, the 7.28 cost per participant, the number of 7.29 participants placed, the number of 7.30 participants who otherwise successfully 7.31 completed the program, and any other 7.32 information requested by the 7.33 commissioner. 7.34 (d) $750,000 the first year is for the 7.35 job skills partnership board to operate 7.36 the pilot program provided by article 7.37 2, section 30. This is a one-time 7.38 appropriation and is from the state's 7.39 federal TANF block grant under Title I 7.40 of Public Law Number 104-193 to the 7.41 commissioner of human services, to be 7.42 transferred to the commissioner of 7.43 trade and economic development. This 7.44 appropriation is available until June 7.45 30, 2003. 7.46 (e) $265,000 the first year and 7.47 $265,000 the second year from the 7.48 workforce development fund are for 7.49 one-time grants to WomenVenture for 7.50 women's business development programs. 7.51 Subd. 5. Office of Tourism 7.52 10,219,000 10,111,000 7.53 To develop maximum private sector 7.54 involvement in tourism, $3,500,000 the 7.55 first year and $3,500,000 the second 7.56 year of the amounts appropriated for 7.57 marketing activities are contingent on 7.58 receipt of an equal contribution from 7.59 nonstate sources that have been 7.60 certified by the commissioner. Up to 7.61 one-half of the match may be given in 7.62 in-kind contributions. 7.63 In order to maximize marketing grant 8.1 benefits, the commissioner must give 8.2 priority for joint venture marketing 8.3 grants to organizations with year-round 8.4 sustained tourism activities. For 8.5 programs and projects submitted, the 8.6 commissioner must give priority to 8.7 those that encompass two or more areas 8.8 or that attract nonresident travelers 8.9 to the state. 8.10 If an appropriation for either year for 8.11 grants is not sufficient, the 8.12 appropriation for the other year is 8.13 available for it. 8.14 The commissioner may use grant dollars 8.15 or the value of in-kind services to 8.16 provide the state contribution for the 8.17 partnership program. 8.18 Any unexpended money from general fund 8.19 appropriations made under this 8.20 subdivision does not cancel but must be 8.21 placed in a special advertising account 8.22 for use by the office of tourism to 8.23 purchase additional media. 8.24 Of this amount, $50,000 the first year 8.25 is for a one-time grant to the 8.26 Mississippi River parkway commission to 8.27 support the increased promotion of 8.28 tourism along the Great River Road. 8.29 Of this amount, $150,000 the first year 8.30 is for one-time grants to local units 8.31 of government, and state or local 8.32 nonprofit entities to plan and promote 8.33 the 2004 Grand Excursion. A local 8.34 nonstate dollar-for-dollar match is 8.35 required. 8.36 $50,000 the first year is for a 8.37 one-time grant to Koochiching county 8.38 for concept development and a marketing 8.39 feasibility study related to the 8.40 construction of a North American bear 8.41 center called the Big Bear Country 8.42 Education and Logging Center. 8.43 $829,000 the first year and $829,000 8.44 the second year are for the Minnesota 8.45 film board. $329,000 of this 8.46 appropriation in each year is available 8.47 only upon receipt by the board of $1 in 8.48 matching contributions of money or 8.49 in-kind from nonstate sources for every 8.50 $3 provided by this appropriation. Of 8.51 this amount, $500,000 the first year 8.52 and $500,000 the second year are for 8.53 grants to the Minnesota film board for 8.54 a film production jobs fund to 8.55 stimulate film production in 8.56 Minnesota. This appropriation is to 8.57 reimburse film and television producers 8.58 for up to ten percent of the documented 8.59 wages and cost of services that they 8.60 paid to Minnesotans for film and 8.61 television production after January 1, 8.62 2001. 8.63 $150,000 the first year is for 9.1 partnerships with local tourism 9.2 interests to operate travel information 9.3 centers. This is a one-time 9.4 appropriation. 9.5 Subd. 6. Information and Analysis 9.6 1,631,000 1,668,000 9.7 Subd. 7. Administrative Support 3,455,000 3,736,000 9.8 Sec. 3. MINNESOTA TECHNOLOGY, INC. 5,930,000 6,105,000 9.9 $5,005,000 the first year and 9.10 $6,105,000 the second year are for 9.11 transfer from the general fund to the 9.12 Minnesota Technology, Inc. fund. It is 9.13 the intention of the legislature that 9.14 the base funding for the Minnesota 9.15 Technology, Inc. fund in the 2004-2005 9.16 biennium be $6,105,000 each year. 9.17 $875,000 the first year is for a grant 9.18 to Minnesota Project Innovation. This 9.19 is a one-time appropriation and is not 9.20 added to the agency's budget base. 9.21 $50,000 the first year is for grants to 9.22 Minnesota Inventors Congress. This is 9.23 a one-time appropriation and is not 9.24 added to the agency's budget base. 9.25 On or before July 10, 2001, the 9.26 commissioner of finance shall transfer 9.27 $900,000 from the Minnesota technology 9.28 account created in Minnesota Statutes, 9.29 section 116O.12, to the general fund. 9.30 Notwithstanding the provisions of 9.31 Minnesota Statutes, section 116O.12, 9.32 the legislature does not approve the 9.33 industry cluster initiative proposed by 9.34 Minnesota Technology, Inc., in the 9.35 governor's 2002-2003 biennial budget. 9.36 Sec. 4. ECONOMIC SECURITY 9.37 Subdivision 1. Total 9.38 Appropriation 40,443,000 39,977,000 9.39 Summary by Fund 9.40 General 29,376,000 29,381,000 9.41 TANF Block Grant 1,073,000 927,000 9.42 Special 9.43 Revenue Fund 9,994,000 9,669,000 9.44 Subd. 2. Workforce Services 12,046,000 11,944,000 9.45 Summary by Fund 9.46 General 9,194,000 9,092,000 9.47 TANF Block Grant 927,000 927,000 9.48 Special Revenue 1,925,000 1,925,000 9.49 (a) $1,827,000 the first year and 9.50 $1,827,000 the second year are for 10.1 displaced homemaker programs under 10.2 Minnesota Statutes, section 268.96. Of 10.3 this amount, $1,000,000 each year is 10.4 from the workforce development fund and 10.5 $827,000 each year is a one-time 10.6 appropriation from the state's federal 10.7 TANF block grant under title I of 10.8 Public Law Number 104-193 to the 10.9 commissioner of human services, to be 10.10 transferred to the commissioner of 10.11 economic security. The commissioner of 10.12 economic security shall report to the 10.13 legislature by February 15, 2003, on 10.14 the outcome of grants under this 10.15 paragraph. 10.16 (b) $111,000 the first year is for 10.17 youth violence prevention programs to 10.18 match the federal juvenile 10.19 accountability incentive block grant. 10.20 This is a one-time appropriation and is 10.21 not added to the agency's budget base. 10.22 (c) No appropriation is made for the 10.23 youth curfew and truancy prevention 10.24 program established in Laws 1999, 10.25 chapter 216, article 1, section 20. 10.26 (d) No appropriation is made for asset 10.27 preservation and facility repair. 10.28 (e) $1,025,000 the first year and 10.29 $1,025,000 the second year are for the 10.30 opportunities industrialization center 10.31 programs. Of this amount, $150,000 10.32 each year is a one-time appropriation 10.33 from the workforce development fund and 10.34 $100,000 each year is a one-time 10.35 appropriation from the state's federal 10.36 TANF block grant under Title I of 10.37 Public Law Number 104-193 to the 10.38 commissioner of human services, to be 10.39 transferred to the commissioner of 10.40 economic security. 10.41 (f) $300,000 each year is added to the 10.42 base for youth intervention programs 10.43 under Minnesota Statutes, section 10.44 268.30. Of this appropriation, $15,000 10.45 is for a grant to the Minnesota Youth 10.46 Intervention Programs Association 10.47 (YIPA) to provide collaborative 10.48 training and technical assistance to 10.49 community-based grantees of the program. 10.50 (g) $150,000 each year is added to the 10.51 base for grants to Youthbuild programs 10.52 under Minnesota Statutes, sections 10.53 268.361 to 268.3661. 10.54 Subd. 3. Rehabilitation Services 23,422,000 22,966,000 10.55 Summary by Fund 10.56 General 15,207,000 15,222,000 10.57 TANF 146,000 -0- 10.58 Special 10.59 Revenue Fund 8,069,000 7,744,000 11.1 $11,927,000 in the first year and 11.2 $11,940,000 in the second year are for 11.3 extended employment services for 11.4 persons with severe disabilities or 11.5 related conditions under Minnesota 11.6 Statutes, section 268A.15. Of this 11.7 amount, $7,719,000 the first year and 11.8 $7,719,000 the second year are from the 11.9 workforce development fund; of which 11.10 $400,000 each year is to increase the 11.11 reimbursement rates for extended 11.12 employment services. It is the 11.13 intention of the legislature that the 11.14 funding for extended employment from 11.15 the workforce development fund shall be 11.16 $6,920,000 each year in the 2004-2005 11.17 biennium. 11.18 $146,000 the first year is from the 11.19 state's TANF block grant under Title I 11.20 of Public Law Number 104-193 to the 11.21 commissioner of human services, to be 11.22 transferred to the commissioner of 11.23 economic security for extended 11.24 employment services for the 11.25 continuation of efforts to provide 11.26 extended employment training through 11.27 the welfare-to-work extended employment 11.28 partnership program to welfare 11.29 recipients with severe impairments to 11.30 employment as provided for under 11.31 Minnesota Statutes, section 268A.15. 11.32 Of this appropriation, up to five 11.33 percent may be used for administrative 11.34 costs. This is a one-time 11.35 appropriation and is not added to the 11.36 agency's budget base. 11.37 $50,000 the first year and $50,000 the 11.38 second year are for grants to fund the 11.39 eight centers for independent living. 11.40 This appropriation shall be added to 11.41 the agency's base level funding for the 11.42 2004-2005 biennium. 11.43 $500,000 the first year and $500,000 11.44 the second year are added to the base 11.45 for grants for programs that provide 11.46 employment support services to persons 11.47 with mental illness under Minnesota 11.48 Statutes, sections 268A.13 and 11.49 268A.14. Up to $70,000 each year may 11.50 be used for administrative and salary 11.51 expenses. 11.52 $175,000 the first year is appropriated 11.53 from the workforce development fund for 11.54 purposes of workplace HIV education. 11.55 This is a one-time appropriation. 11.56 $25,000 each year from the workforce 11.57 development fund is for grants to the 11.58 Minnesota employment center for people 11.59 who are deaf or hard-of-hearing. This 11.60 appropriation is added to the base 11.61 level funding for the 2002-2003 11.62 biennium for the Minnesota employment 11.63 center for people who are deaf or 11.64 hard-of-hearing. Funds not expended in 11.65 the first year are available in the 11.66 second. 12.1 $150,000 the first year is from the 12.2 workforce development fund for the 12.3 purpose of the vocational 12.4 rehabilitation brain injury pilot 12.5 program to be available until June 30, 12.6 2003. This is a one-time appropriation. 12.7 Subd. 4. State Services for the Blind 12.8 4,940,000 5,067,000 12.9 Subd. 5. Workforce Wage Assistance 12.10 $35,000 in the first year is to prepare 12.11 a report to the legislature by February 12.12 1, 2002, on the costs and benefits of 12.13 providing paid or insured wage 12.14 replacement during parental leave. The 12.15 report must include (1) estimates of 12.16 the percent of employees who currently 12.17 have the option of taking paid parental 12.18 leave, including the nature and extent 12.19 of the benefits, (2) the impact on 12.20 employers of offering paid parental 12.21 leave, including wage replacement 12.22 costs, and the impact on overall 12.23 employment, retention, and recruitment 12.24 costs, and (3) an estimate of the 12.25 public health costs of not providing 12.26 wage replacement during parental leave, 12.27 including the impact on infant care and 12.28 maternal health. The commissioners of 12.29 health and children, families, and 12.30 learning shall assist in the report's 12.31 preparation, as needed. 12.32 Subd. 6. Economic Security Contingent Account 12.33 Beginning in the 2002-2003 biennium, 12.34 the first $2,000,000 deposited in each 12.35 year of the biennium into the economic 12.36 security contingent account created 12.37 under Minnesota Statutes, section 12.38 268.196, subdivision 3, shall be 12.39 transferred upon deposit to the 12.40 workforce development fund. Deposits 12.41 in excess of the $2,000,000 shall be 12.42 used for purposes of the economic 12.43 security contingent account. It is the 12.44 intent of the legislature that in 12.45 future years, $2,000,000 each year will 12.46 be transferred in this manner. 12.47 Sec. 5. HOUSING FINANCE AGENCY 65,057,000 64,457,000 12.48 Summary by Fund 12.49 General 52,932,000 52,332,000 12.50 TANF 12,125,000 12,125,000 12.51 Subdivision 1. Total Appropriation 12.52 The amounts that may be spent from this 12.53 appropriation for certain programs are 12.54 specified in the following subdivisions. 12.55 This appropriation is for transfer to 12.56 the housing development fund for the 12.57 programs specified. Except as 12.58 otherwise indicated, this transfer is 13.1 part of the agency's permanent budget 13.2 base. 13.3 Subd. 2. Challenge Program 13.4 $12,004,000 the first year and 13.5 $12,004,000 the second year are for the 13.6 economic development and housing 13.7 challenge program under Minnesota 13.8 Statutes, section 462A.33. Until 13.9 January 1, 2002, the agency may 13.10 administer the appropriations under 13.11 this subdivision in the same manner as 13.12 appropriations for Minnesota Statutes, 13.13 section 462A.21, subdivision 8b, 15, 13.14 21, or 24. In funding proposals with 13.15 money appropriated under this 13.16 subdivision, the agency shall give 13.17 priority to no more than three 13.18 proposals for pilot projects 13.19 encouraging homeowners to make 13.20 improvements to the exteriors of 13.21 deteriorating properties or assisting 13.22 homeowners with interior lead hazard 13.23 reduction in targeted neighborhoods. 13.24 Eligible proposals must meet the 13.25 following criteria: 13.26 (1) the funds will be used to discount 13.27 the interest rate on the community 13.28 fix-up fund program for home 13.29 improvement loans provided through the 13.30 agency; 13.31 (2) matching funds are provided from 13.32 either a local unit of government or a 13.33 private philanthropic, religious, or 13.34 charitable organization; and 13.35 (3) the discounted interest rate loans 13.36 will be targeted to households based on 13.37 need, as determined by the housing 13.38 finance agency in consultation with the 13.39 community. 13.40 Communities receiving funds under a 13.41 proposal for this purpose shall report 13.42 to the agency on the outcomes of the 13.43 pilot project, including the number of 13.44 households served, the cost per 13.45 household, the changes in property 13.46 values, if any, in the targeted 13.47 neighborhood, and improvements, if any, 13.48 made in the targeted neighborhoods 13.49 without government subsidy during the 13.50 same time period as the pilot project. 13.51 Of this amount, $200,000 each year is 13.52 for a grant to a nonprofit organization 13.53 currently operating the CLEARCorps lead 13.54 hazard reduction project. The grant 13.55 must be used as a match for federal 13.56 funds for mitigation and rehabilitation 13.57 to reduce lead hazards. This is a 13.58 one-time allocation. 13.59 Subd. 3. Rental Assistance for Mentally Ill 13.60 $1,700,000 the first year and 13.61 $1,700,000 the second year are for a 13.62 rental housing assistance program for 14.1 persons with a mental illness or 14.2 families with an adult member with a 14.3 mental illness under Minnesota 14.4 Statutes, section 462A.2097. 14.5 Subd. 4. Family Homeless Prevention 14.6 $3,750,000 the first year and 14.7 $3,750,000 the second year are for the 14.8 family homeless prevention and 14.9 assistance program under Minnesota 14.10 Statutes, section 462A.204, and are 14.11 available until June 30, 2003. Of this 14.12 amount, $125,000 the first year and 14.13 $125,000 the second year are one-time 14.14 appropriations from the state's federal 14.15 TANF block grant under Title I of 14.16 Public Law Number 104-193 to the 14.17 commissioner of human services, to 14.18 reimburse the housing development fund 14.19 for assistance under this program for 14.20 families receiving TANF assistance 14.21 under the MFIP program. The 14.22 commissioner of human services shall 14.23 make monthly reimbursements to the 14.24 housing development fund. The 14.25 commissioner of human services shall 14.26 not make any reimbursement which the 14.27 commissioner determines would be 14.28 subject to a penalty under Code of 14.29 Federal Regulations, section 262.1. If 14.30 the appropriation in either year is 14.31 insufficient, the appropriation for the 14.32 other year is available. It is the 14.33 intention of the legislature that the 14.34 general fund base funding to this 14.35 program be $7,250,000 for the 2004-2005 14.36 biennium. 14.37 Subd. 5. Home Ownership Education, 14.38 Counseling, and Training 14.39 $983,000 the first year and $983,000 14.40 the second year are for the home 14.41 ownership education, counseling, and 14.42 training program under Minnesota 14.43 Statutes, section 462A.209. 14.44 Of this amount, $125,000 the first year 14.45 and $125,000 the second year are 14.46 one-time appropriations for full-cycle 14.47 home ownership services for 14.48 non-English-speaking persons, recent 14.49 immigrants, and historically 14.50 underserved populations. 14.51 Subd. 6. Housing Trust Fund 14.52 $4,623,000 the first year and 14.53 $4,623,000 the second year are for the 14.54 housing trust fund to be deposited in 14.55 the housing trust fund account created 14.56 under Minnesota Statutes, section 14.57 462A.201, and used for the purposes 14.58 provided in that section. Until 14.59 January 1, 2002, the agency may 14.60 administer the appropriations under 14.61 this subdivision in the same manner as 14.62 appropriations for Minnesota Statutes 14.63 2000, sections 462A.201, 462A.205, and 14.64 462A.21, subdivision 8b. Among 15.1 comparable rehabilitation proposals, 15.2 the agency may give a priority for 15.3 projects that include lead hazard 15.4 reduction. 15.5 Subd. 7. Affordable Rental Investment Fund 15.6 $22,000,000 the first year and 15.7 $22,000,000 the second year are for the 15.8 affordable rental investment fund 15.9 program under Minnesota Statutes, 15.10 section 462A.21, subdivision 8b. Of 15.11 this amount, $12,000,000 in each year 15.12 is a one-time appropriation and is not 15.13 added to the agency's base budget. 15.14 (a) Of this amount, $10,000,000 the 15.15 first year and $10,000,000 the second 15.16 year are to finance the acquisition, 15.17 rehabilitation, and debt restructuring 15.18 of federally assisted rental property 15.19 and for making equity take-out loans 15.20 under Minnesota Statutes, section 15.21 462A.05, subdivision 39. The owner of 15.22 the federally assisted rental property 15.23 must agree to participate in the 15.24 applicable federally assisted housing 15.25 program and to extend any existing 15.26 low-income affordability restrictions 15.27 on the housing for the maximum term 15.28 permitted. The owner must also enter 15.29 into an agreement that gives local 15.30 units of government, housing and 15.31 redevelopment authorities, and 15.32 nonprofit housing organizations the 15.33 right of first refusal if the rental 15.34 property is offered for sale. Priority 15.35 must be given among comparable 15.36 properties to properties with the 15.37 longest remaining term under an 15.38 agreement for federal rental 15.39 assistance. Priority must also be 15.40 given among comparable rental housing 15.41 developments to developments that are 15.42 or will be owned by local government 15.43 units, a housing and redevelopment 15.44 authority, or a nonprofit housing 15.45 organization. 15.46 (b) Of this appropriation, $12,000,000 15.47 the first year and $12,000,000 the 15.48 second year are to be used by the 15.49 agency to finance permanent and 15.50 supportive rental housing units and 15.51 necessary operating cost subsidies 15.52 related to the units financed and to 15.53 provide rental assistance. The 15.54 appropriation under this paragraph must 15.55 be used to finance units or provide 15.56 assistance for families whose household 15.57 income, at the time of initial 15.58 occupancy, does not exceed 30 percent 15.59 of the HUD established median income 15.60 for the metropolitan area, as defined 15.61 in Minnesota Statutes, section 473.121, 15.62 subdivision 2. The median family 15.63 income may be adjusted for families of 15.64 five or more persons. The owner of 15.65 units financed with the appropriation 15.66 under this paragraph must agree to 15.67 maintain affordability of the units 16.1 financed under this paragraph for a 16.2 30-year period. 16.3 Housing units financed in the 16.4 metropolitan area with the 16.5 appropriation under paragraph (b) must 16.6 be located near public transit that 16.7 provides regular service and access to 16.8 jobs, schools, and other services that 16.9 support self-sufficiency. 16.10 Housing units financed outside the 16.11 metropolitan area with the 16.12 appropriation under paragraph (b) must 16.13 be located near jobs, schools, and 16.14 other services that support 16.15 self-sufficiency. 16.16 The commissioner shall utilize 16.17 strategies to: (1) promote occupancy 16.18 of the units financed by the 16.19 appropriation under paragraph (b) by 16.20 households most in need of subsidized 16.21 housing and (2) encourage households to 16.22 move into homeownership or unsubsidized 16.23 housing as the household achieves 16.24 economic self-sufficiency. 16.25 The appropriation under paragraph (b) 16.26 shall be jointly administered by the 16.27 commissioners of the Minnesota housing 16.28 finance agency and the department of 16.29 human services and the director of the 16.30 strategic and long-range planning 16.31 office. 16.32 [WORKING FAMILY CREDIT.] (a) On a 16.33 regular basis, the commissioner of 16.34 revenue, with the assistance of the 16.35 commissioner of human services, shall 16.36 calculate the value of the refundable 16.37 portion of the Minnesota working family 16.38 credits provided under Minnesota 16.39 Statutes, section 290.0671, that 16.40 qualifies for federal reimbursement 16.41 from the temporary assistance to needy 16.42 families block grant. The commissioner 16.43 of revenue shall provide the 16.44 commissioner of human services with 16.45 such expenditure records and 16.46 information as are necessary to support 16.47 draw down of federal funds. 16.48 (b) Federal TANF funds, as specified in 16.49 this paragraph, are appropriated to the 16.50 commissioner of housing finance based 16.51 on calculations under paragraph (a) of 16.52 working family tax credit expenditures 16.53 that qualify for reimbursement from the 16.54 TANF block grant for income tax refunds 16.55 payable in federal fiscal years 16.56 beginning October 1, 2001. The draw 16.57 down of federal TANF funds shall be 16.58 made on a regular basis based on 16.59 calculations of credit expenditures by 16.60 the commissioner of revenue. 16.61 $12,000,000 in fiscal year 2002 and 16.62 $12,000,000 in fiscal year 2003 are 16.63 appropriated to the commissioner of the 16.64 housing finance agency. These funds 17.1 shall be transferred to the 17.2 commissioner of revenue to deposit into 17.3 the general fund. These funds shall 17.4 not become part of the 2004-2005 base 17.5 budget. 17.6 Subd. 8. Urban Indian Housing Program 17.7 $187,000 the first year and $187,000 17.8 the second year are for the urban 17.9 Indian housing program under Minnesota 17.10 Statutes, section 462A.07, subdivision 17.11 15. 17.12 Subd. 9. Tribal Indian Housing Program 17.13 $1,683,000 the first year and 17.14 $1,683,000 the second year are for the 17.15 tribal Indian housing program under 17.16 Minnesota Statutes, section 462A.07, 17.17 subdivision 14. 17.18 Subd. 10. Capacity Building Grants 17.19 $340,000 the first year and $340,000 17.20 the second year are for nonprofit 17.21 capacity building grants under 17.22 Minnesota Statutes, section 462A.21, 17.23 subdivision 3b. 17.24 Subd. 11. Housing Rehabilitation 17.25 and Accessibility 17.26 $4,287,000 the first year and 17.27 $4,287,000 the second year are for the 17.28 housing rehabilitation and 17.29 accessibility program under Minnesota 17.30 Statutes, section 462A.05, subdivisions 17.31 14a and 15a. 17.32 Subd. 12. Home Ownership 17.33 Assistance Fund 17.34 $900,000 the first year and $900,000 17.35 the second year are for the home 17.36 ownership assistance fund under 17.37 Minnesota Statutes, section 462A.21, 17.38 subdivision 8. 17.39 Subd. 13. Manufactured Home 17.40 Park Redevelopment 17.41 $400,000 is for the manufactured home 17.42 park redevelopment program created by 17.43 Minnesota Statutes, section 462A.2035, 17.44 and is available until June 30, 2003. 17.45 This is a one-time appropriation and is 17.46 not added to the agency's permanent 17.47 budget base. 17.48 Subd. 14. Rental Housing 17.49 Pilot Program 17.50 $100,000 is for a rental housing pilot 17.51 program to encourage landlords to rent 17.52 to high-risk tenants with poor rental 17.53 histories in the counties of Benton, 17.54 Clay, Dakota, Hennepin, Olmsted, 17.55 Ramsey, St. Louis, Sherburne, and 17.56 Stearns. This is a one-time 17.57 appropriation available until June 30, 18.1 2003, and is not added to the agency's 18.2 permanent budget base. 18.3 For purposes of this subdivision, 18.4 preference as a "high-risk tenant" 18.5 shall be given to a person who has had 18.6 an application for rental housing 18.7 denied for reasons other than a felony 18.8 conviction of that person or previous 18.9 willful substantial damage to rental 18.10 housing by that person. 18.11 The program shall allow local agencies 18.12 to provide payment bonds to landlords 18.13 willing to accept high-risk tenants to 18.14 reimburse them for losses caused by a 18.15 high-risk tenant. In selecting 18.16 recipients for funding under the rental 18.17 housing pilot program, priority must be 18.18 given to proposals that include 18.19 accountability provisions for 18.20 participating landlords and training 18.21 for participating tenants. Local 18.22 government units, nonprofit agencies, 18.23 or partnerships between local 18.24 government units and nonprofit agencies 18.25 are eligible for funding under the 18.26 rental housing pilot program. 18.27 Local government units must provide 18.28 matching funds, which may include 18.29 administrative costs, payment bond 18.30 funding, or property tax credits. 18.31 The agency shall consult with 18.32 representatives of the following 18.33 organizations in selecting recipients 18.34 for funding under the program: 18.35 organizations who advocate for tenants 18.36 and provide tenant training, nonprofit 18.37 and for-profit housing providers, 18.38 supportive housing service providers, 18.39 and tenant screening organizations. 18.40 The agency must report to the 18.41 legislature by January 15, 2003, on the 18.42 effectiveness of the pilot program in 18.43 securing rental housing for individuals 18.44 with poor rental histories. The report 18.45 must also address the feasibility of 18.46 and need for expanding the program 18.47 statewide and recommend best practices. 18.48 Subd. 15. Supportive Housing 18.49 Grant 18.50 $100,000 is for a grant to the district 18.51 287 foundation to assist in the 18.52 development of supportive housing to 18.53 provide independent living 18.54 opportunities for adults with 18.55 disabilities. This is a one-time 18.56 appropriation and is not added to the 18.57 agency's permanent budget base. 18.58 Subd. 16. Cancellations 18.59 (a) [TRANSFER OF DISASTER RELIEF 18.60 FUNDS.] The unobligated and 18.61 unencumbered balance appropriated to 18.62 the affordable rental investment fund 19.1 account and the community 19.2 rehabilitation fund account under Laws 19.3 1997, Second Special Session chapter 2, 19.4 section 4, is transferred on July 1, 19.5 2001, to the housing development fund 19.6 under Minnesota Statutes, section 19.7 462A.20. The unobligated and 19.8 unencumbered balance appropriated to 19.9 the affordable rental investment fund 19.10 account and the community 19.11 rehabilitation fund account under Laws 19.12 1998, chapter 383, section 2, is 19.13 transferred on July 1, 2001, to the 19.14 housing development fund under 19.15 Minnesota Statutes, section 462A.20. 19.16 (b) [RENTAL HOUSING PILOT PROGRAM.] Up 19.17 to $257,000 of the amount transferred 19.18 under paragraph (a) is for the rental 19.19 housing pilot program under subdivision 19.20 14. This is a one-time appropriation 19.21 and is not added to the agency's 19.22 permanent budget base. 19.23 (c) [SECTION 8 HOME OWNERSHIP.] Up to 19.24 $250,000 of the amount transferred 19.25 under paragraph (a) is for grants to 19.26 agencies administering the federal 19.27 section 8 housing program for 19.28 administrative costs associated with 19.29 the establishment and operation of 19.30 section 8 home ownership programs and 19.31 for grants to public or nonprofit 19.32 section 8 administering agencies or 19.33 collaboratives of those agencies to 19.34 acquire and rehabilitate or construct 19.35 homes for resale to households eligible 19.36 for section 8 assistance using section 19.37 8 vouchers and certificates to finance 19.38 the home purchases including gap 19.39 financing. The administering agencies 19.40 shall set guidelines for the sale of 19.41 homes under this subdivision to ensure 19.42 that a home buyer who later loses 19.43 eligibility for section 8 assistance 19.44 due to increased income will have an 19.45 opportunity to purchase the home and to 19.46 retain any equity built up in the 19.47 home. For purposes of this 19.48 subdivision, "section 8" means section 19.49 8 of the United States Housing Act of 19.50 1937. This is a one-time appropriation 19.51 and is not added to the agency's 19.52 permanent budget base. 19.53 (d) [HOMELESS VETERANS HOUSING.] 19.54 $420,000 of the unobligated and 19.55 unencumbered balance in the local 19.56 government unit housing account under 19.57 Minnesota Statutes, section 462A.202, 19.58 is transferred to the housing trust 19.59 fund under Minnesota Statutes, section 19.60 462A.201, for loans and grants to 19.61 assist in the development, 19.62 construction, acquisition, or 19.63 rehabilitation of supportive and 19.64 permanent housing to serve veterans and 19.65 single adults who are homeless or at 19.66 risk of becoming homeless. The loans 19.67 or grants must be used for at least two 19.68 housing projects that: 20.1 (1) are located on property owned by 20.2 the United States Department of 20.3 Veterans Affairs or other property that 20.4 could be obtained at no cost; 20.5 (2) provide or coordinate health and 20.6 social services needed by the 20.7 residents; and 20.8 (3) are a collaborative partnership 20.9 between community agencies and local 20.10 units of government or the federal 20.11 government. 20.12 Sec. 6. CHILDREN, FAMILIES, 20.13 AND LEARNING 500,000 500,000 20.14 Summary by Fund 20.15 General 250,000 250,000 20.16 TANF 250,000 250,000 20.17 [EMERGENCY SERVICES.] $500,000 the 20.18 first year and $500,000 the second year 20.19 are one-time appropriations for 20.20 emergency services grants according to 20.21 Laws 1997, chapter 162, article 3, 20.22 section 7. 20.23 Of this amount, $250,000 the first year 20.24 and $250,000 the second year are 20.25 one-time appropriations from the 20.26 state's federal TANF block grant under 20.27 Title I of Public Law Number 104-193 to 20.28 the commissioner of human services. 20.29 Sec. 7. INVESTMENT BOARD 100,000 100,000 20.30 $100,000 in each year is for the 20.31 purpose of paying staff costs related 20.32 to focusing efforts on investing in 20.33 Minnesota-based startup businesses 20.34 under new Minnesota Statutes, section 20.35 11A.26. This is a one-time 20.36 appropriation for this pilot project. 20.37 Sec. 8. COMMERCE 20.38 Subdivision 1. Total 20.39 Appropriation 27,061,000 27,728,000 20.40 Summary by Fund 20.41 General 25,398,000 26,029,000 20.42 Petroleum Cleanup 1,064,000 1,084,000 20.43 Workers' 20.44 Compensation 599,000 615,000 20.45 The amounts that may be spent from this 20.46 appropriation for each program are 20.47 specified in the following subdivisions. 20.48 Subd. 2. Financial Examinations 20.49 6,379,000 6,555,000 20.50 Subd. 3. Petroleum Tank Release 20.51 Cleanup Board 21.1 1,064,000 1,084,000 21.2 This appropriation is from the 21.3 petroleum tank release cleanup fund. 21.4 Subd. 4. Administrative Services 21.5 5,852,000 6,003,000 21.6 Subd. 5. Enforcement 21.7 and Compliance 5,685,000 5,836,000 21.8 Summary by Fund 21.9 General 5,086,000 5,221,000 21.10 Workers' Compensation 599,000 615,000 21.11 Subd. 6. Energy 21.12 3,809,000 3,884,000 21.13 $588,000 each year is for transfer to 21.14 the energy and conservation account 21.15 established in Minnesota Statutes, 21.16 section 216B.241, subdivision 2a, for 21.17 programs administered by the 21.18 commissioner of economic security to 21.19 improve the energy efficiency of 21.20 residential oil-fired heating plants in 21.21 low-income households and, when 21.22 necessary, to provide weatherization 21.23 services to the homes. 21.24 Subd. 7. Telecommunication 21.25 986,000 1,008,000 21.26 Subd. 8. Weights and Measurement 21.27 3,286,000 3,358,000 21.28 Sec. 9. BOARD OF ACCOUNTANCY 683,000 721,000 21.29 Sec. 10. BOARD OF ARCHITECTURE, 21.30 ENGINEERING, LAND SURVEYING, 21.31 LANDSCAPE ARCHITECTURE, GEOSCIENCE, 21.32 AND INTERIOR DESIGN 951,000 981,000 21.33 Sec. 11. BOARD OF BARBER 21.34 EXAMINERS 153,000 159,000 21.35 Sec. 12. LABOR AND INDUSTRY 21.36 Subdivision 1. Total 21.37 Appropriation 25,413,000 26,001,000 21.38 Summary by Fund 21.39 General 3,572,000 3,661,000 21.40 Workers' 21.41 Compensation 21,048,000 21,532,000 21.42 Special 21.43 Revenue Fund 793,000 808,000 21.44 The amounts that may be spent from this 21.45 appropriation for each program are 21.46 specified in the following subdivisions. 22.1 Subd. 2. Workers' Compensation 22.2 10,912,000 11,178,000 22.3 This appropriation is from the workers' 22.4 compensation fund. 22.5 $125,000 the first year and $125,000 22.6 the second year are for grants to the 22.7 Vinland Center for rehabilitation 22.8 service. 22.9 Subd. 3. Workplace Services 7,468,000 7,644,000 22.10 Summary by Fund 22.11 General 2,493,000 2,555,000 22.12 Workers' 22.13 Compensation 4,182,000 4,281,000 22.14 Special 22.15 Revenue Fund 793,000 808,000 22.16 $204,000 the first year and $204,000 22.17 the second year are for labor education 22.18 and advancement program grants. This 22.19 appropriation is from the workforce 22.20 development fund. 22.21 Subd. 4. General Support 7,033,000 7,179,000 22.22 Summary by Fund 22.23 General 1,079,000 1,106,000 22.24 Workers' 22.25 Compensation 5,954,000 6,073,000 22.26 $5,000 in the first year is a one-time 22.27 appropriation for a study and report to 22.28 the legislature by January 15, 2002, on: 22.29 (1) the extent of wage disparities, 22.30 both in the public and private sector, 22.31 between men and women, and between 22.32 minorities and nonminorities; 22.33 (2) those factors that cause, or tend 22.34 to cause, such disparities, including 22.35 segregation between women and men, and 22.36 between minorities and nonminorities 22.37 across and within occupations; payment 22.38 of lower wages for work in 22.39 female-dominated occupations; 22.40 child-rearing responsibilities; and 22.41 education and training; 22.42 (3) the consequences of such 22.43 disparities on the economy and families 22.44 affected; and 22.45 (4) actions, including proposed 22.46 legislation, that are likely to lead to 22.47 the elimination and prevention of such 22.48 disparities. 22.49 Sec. 13. BUREAU OF MEDIATION SERVICES 22.50 Subdivision 1. Total 22.51 Appropriation 2,259,000 2,307,000 23.1 The amounts that may be spent from this 23.2 appropriation for each program are 23.3 specified in the following subdivisions. 23.4 Subd. 2. Mediation Services 1,957,000 2,005,000 23.5 Subd. 3. Labor Management 23.6 Cooperation Grants 302,000 302,000 23.7 $302,000 each year is for grants to 23.8 area labor-management committees. Any 23.9 unencumbered balance remaining at the 23.10 end of the first year does not cancel 23.11 but is available for the second year. 23.12 Sec. 14. WORKERS' COMPENSATION 23.13 COURT OF APPEALS 1,569,000 1,618,000 23.14 This appropriation is from the workers' 23.15 compensation fund. 23.16 Sec. 15. PUBLIC UTILITIES 23.17 COMMISSION 3,994,000 4,163,000 23.18 Sec. 16. MINNESOTA HISTORICAL 23.19 SOCIETY 23.20 Subdivision 1. Total 23.21 Appropriation 26,865,000 27,395,000 23.22 The amounts that may be spent from this 23.23 appropriation for each program are 23.24 specified in the following subdivisions. 23.25 Subd. 2. Education and 23.26 Outreach 14,935,000 15,412,000 23.27 $150,000 the first year and $200,000 23.28 the second year are for operating 23.29 expenses at the Northwest Fur Company 23.30 Post. 23.31 $150,000 the first year and $250,000 23.32 the second year are for operating 23.33 expenses at the Mill City Museum, St. 23.34 Anthony Falls. 23.35 Subd. 3. Preservation and Access 11,384,000 11,635,000 23.36 Subd. 4. Fiscal Agent 546,000 348,000 23.37 (a) Sibley House Association 23.38 88,000 88,000 23.39 This appropriation is available for 23.40 operation and maintenance of the Sibley 23.41 House and related buildings on the Old 23.42 Mendota state historic site operated by 23.43 the Sibley House Association. 23.44 (b) Minnesota International Center 23.45 50,000 50,000 23.46 (c) Minnesota Air National 23.47 Guard Museum 23.48 19,000 -0- 24.1 (d) Institute for Learning and 24.2 Teaching - Project 120 24.3 110,000 110,000 24.4 (e) Minnesota Military Museum 24.5 79,000 -0- 24.6 (f) Farmamerica 24.7 150,000 100,000 24.8 Notwithstanding any other law, this 24.9 appropriation may be used for 24.10 operations. 24.11 (g) Little Elk Heritage Preserve 24.12 50,000 -0- 24.13 This appropriation is to assist the 24.14 Institute for Minnesota Archaeology in 24.15 site research and preservation, 24.16 economic and infrastructure 24.17 development, public outreach, and 24.18 education programming. The 24.19 appropriated funds may be matched by 24.20 nonstate sources. This is a one-time 24.21 appropriation. 24.22 (h) Balances Forward 24.23 Any unencumbered balance remaining in 24.24 this subdivision the first year does 24.25 not cancel but is available for the 24.26 second year of the biennium. 24.27 Subd. 5. Fund Transfer 24.28 The society may reallocate funds 24.29 appropriated in and between 24.30 subdivisions 2 and 3 for any program 24.31 purposes. 24.32 Sec. 17. COUNCIL ON BLACK 24.33 MINNESOTANS 342,000 352,000 24.34 Sec. 18. COUNCIL ON 24.35 CHICANO-LATINO AFFAIRS 334,000 344,000 24.36 Sec. 19. COUNCIL ON 24.37 ASIAN-PACIFIC MINNESOTANS 295,000 304,000 24.38 Sec. 20. INDIAN AFFAIRS 24.39 COUNCIL 584,000 602,000 24.40 Sec. 21. [FEDERAL FUND APPROVAL.] 24.41 Requests to spend federal grants and aids as shown in the 24.42 biennial budget document and its supplements for the departments 24.43 of trade and economic development, economic security, commerce, 24.44 and labor and industry; the Minnesota housing finance agency; 24.45 and Minnesota Technology, Inc., for which further review was 24.46 requested under Minnesota Statutes, section 3.3005, subdivision 25.1 2a, in January or February 2001, are approved and the amounts 25.2 shown in the budget documents are appropriated for the purpose 25.3 indicated in the request. 25.4 ARTICLE 2 25.5 POLICY PROVISIONS 25.6 Section 1. Minnesota Statutes 2000, section 3.922, is 25.7 amended by adding a subdivision to read: 25.8 Subd. 10. [RULEMAKING.] Notwithstanding section 116J.64, 25.9 subdivision 7, or other law, the council does not have authority 25.10 to adopt, amend, or repeal rules or to adjudicate contested 25.11 cases or appeals. Rules adopted before the effective date of 25.12 this subdivision may continue in effect until amended or 25.13 repealed by law. 25.14 Sec. 2. Minnesota Statutes 2000, section 116J.8731, 25.15 subdivision 1, is amended to read: 25.16 Subdivision 1. [PURPOSE.] The Minnesota investment fund is 25.17 created to provide financial assistance, through partnership 25.18 with communities, for the creation of new employment or to 25.19 maintain existing employment, and for business start-up, 25.20 expansions, and retention. It shall accomplish these goals by 25.21 the following means: 25.22 (1) creation or retention of permanent private-sector jobs 25.23 in order to create above-average economic growth consistent with 25.24 environmental protection, which includes investments in 25.25 technology and equipment that increase productivity and provide 25.26 for a higher wage; 25.27 (2) stimulation or leverage of private investment to ensure 25.28 economic renewal and competitiveness; 25.29 (3) increasing the local tax base, based on demonstrated 25.30 measurable outcomes, to guarantee a diversified industry mix; 25.31 (4) improvement of employment and economic opportunity for 25.32 citizens in the region to create a reasonable standard of 25.33 living, consistent with federal and state guidelines on low- to 25.34 moderate-income persons; and 25.35 (5) stimulation of productivity growth through improved 25.36 manufacturing or new technologies, including cold weather 26.1 testing. 26.2 Sec. 3. Minnesota Statutes 2000, section 116L.03, is 26.3 amended to read: 26.4 116L.03 [BOARD.] 26.5 Subdivision 1. [MEMBERS.] The partnership shall be 26.6 governed by a board of1213 directors. 26.7 Subd. 2. [APPOINTMENT.] The Minnesota job skills 26.8 partnership board consists of:nineseven members appointed by 26.9 the governor, the chair of the governor's workforce development 26.10 council, the commissioner of trade and economic development,the26.11commissioner of economic security, andthe chancellor, or the 26.12 chancellor's designee, of the Minnesota state colleges and 26.13 universities, the president, or the president's designee, of the 26.14 University of Minnesota, and two nonlegislator members, one 26.15 appointed by the subcommittee on committees of the senate 26.16 committee on rules and administration and one appointed by the 26.17 speaker of the house. If the chancellor or the president of the 26.18 university makes a designation under this subdivision, the 26.19 designee must have experience in technical education.TwoFour 26.20 of the appointed members must berepresentatives frommembers of 26.21 the governor's workforce development council, of whom two must 26.22 represent organized labor and two must represent business and 26.23 industry. One of the appointed members must be a representative 26.24 of a nonprofit organization that provides workforce development 26.25 or job training services. 26.26 Subd. 3. [QUALIFICATIONS.] Members must have expertise in, 26.27 and be representative of the following fields of education, job 26.28 skills training, labor, business, and government. 26.29 Subd. 4. [CHAIR.] The chair shall be appointed by the 26.30 governor. 26.31 Subd. 5. [TERMS.] The terms of appointed members shall be 26.32 for four years except for the initial appointments. The initial 26.33 appointments of the governor shall have the following terms: 26.34 two members each for one, two, three, and four years. No member 26.35 shall serve more than two terms, and no person shall be 26.36 appointed after December 31, 2001, for any term that would cause 27.1 that person to serve a total of more than eight years on the 27.2 board. Compensation for board members is as provided in section 27.3 15.0575, subdivision 3. 27.4 Subd. 7. [OFFICES.]The department of trade and economic27.5development shall provide staff and administrative services for27.6the board.The department of trade and economic development 27.7 shall provide office space and staff to the job skills 27.8 partnership board for the execution of its duties. The board 27.9 shall hire an executive director to assist in carrying out its 27.10 duties. 27.11 Sec. 4. Minnesota Statutes 2000, section 116L.04, is 27.12 amended by adding a subdivision to read: 27.13 Subd. 4. [PERFORMANCE STANDARDS AND REPORTING.] By January 27.14 15, 2002, the board must develop performance standards for 27.15 workforce development and job training programs receiving state 27.16 funding. The standards may vary across program types. The 27.17 board may contract with a consultant to develop the performance 27.18 standards. The board must consult with stakeholder advocacy 27.19 groups, nonprofit service providers, and local workforce 27.20 councils in the development of both performance standards and 27.21 reporting requirements. The adult standards must at a minimum 27.22 measure: 27.23 (1) the employability levels of individuals as defined by 27.24 basic skill level, the amount of work experience, and barriers 27.25 to employment prior to program entry; 27.26 (2) the individual's annual income and employability level 27.27 for the 12 months prior to entering the program, the starting 27.28 annual income upon placement after completing the program, 27.29 employability level and annual income one year after completion 27.30 of the program, and the individual's reported satisfaction; 27.31 (3) the program completion rate, placement rate, 27.32 employability level upon placement, and one-year retention rate; 27.33 and 27.34 (4) the governmental cost per placement and per job 27.35 retained at one year and the percentage of program funding 27.36 coming from the state and other levels of government. 28.1 After January 15, 2002, all workforce development programs 28.2 receiving state funds must submit an annual performance report 28.3 to the board. The board may develop a uniform format for the 28.4 report and prescribe the manner in which the report is required 28.5 to be submitted. 28.6 Sec. 5. Minnesota Statutes 2000, section 116L.05, is 28.7 amended by adding a subdivision to read: 28.8 Subd. 4. [LEGISLATIVE RECOMMENDATIONS.] By January 15 of 28.9 each odd-numbered year, the board must submit recommendations to 28.10 the house and senate committees with jurisdiction over workforce 28.11 development programs, regarding modifications to, or elimination 28.12 of, existing workforce development programs and the potential 28.13 implementation of new programs. The recommendations must 28.14 include recommendations regarding funding levels and sources. 28.15 Sec. 6. Minnesota Statutes 2000, section 116L.16, is 28.16 amended to read: 28.17 116L.16 [DISTANCE-WORK GRANTS.] 28.18 The job skills partnership board may make grants-in-aid for 28.19 distance-work projects. The purpose of the grants is to promote 28.20 distance-work projects involving technology in rural areas and 28.21 may include a consortium of organizations partnering in the 28.22 development of rural technology industry. Grants may be used to 28.23 identify and train rural workers in technology, act as a 28.24 catalyst to bring together employers and rural employees to 28.25 perform distance work, and provide rural workers with physical 28.26 connections to telecommunications infrastructure, where 28.27 necessary, in order to be self-employed or employed from their 28.28 homes or satellite offices. Grants must be made according to 28.29 sections 116L.02 and 116L.04, except that: 28.30 (1) the business match may include, but is not limited 28.31 to, office space; additional management or technology staff 28.32 costs; start-up equipment costs such as telecommunications 28.33 infrastructure, additional software, or computer upgrades; 28.34 consulting fees for implementation of distance-work policies or 28.35 identification and skill assessment of potential employees; and 28.36 the joint financial contribution of two or more businesses 29.1 acting as a consortium; 29.2 (2) cash or in-kind contributions by partnering 29.3 organizations may be used as a match; 29.4 (3) eligible grantees may be educational or nonprofit 29.5 educational training organizations;and29.6 (4) grants-in-aid may be packaged with loans under section 29.7 116L.06, subdivision 6; and 29.8 (5) with respect to grants serving as a catalyst to bring 29.9 together employers and rural employees to perform distance work, 29.10 the match must be at least one-to-two. 29.11 The board shall, to the extent there are sufficient 29.12 applications, make grant awards to as many parts of the state as 29.13 possible. Subject to the requirement for geographic 29.14 distribution of grants, preference shall be given to grant 29.15 applications that provide the most cost-effective training 29.16 proposals, that provide the best prospects for high-paying jobs 29.17 with high retention rates, or that are from more economically 29.18 distressed rural areas or communities. 29.19 Grantees must meet reporting and evaluation requirements 29.20 established by the board. 29.21 Sec. 7. [116L.17] [STATE DISLOCATED WORKER PROGRAM.] 29.22 Subdivision 1. [DEFINITIONS.] (a) For the purposes of this 29.23 section, the following terms have the meanings given them in 29.24 this subdivision. 29.25 (b) "Dislocated worker" means an individual who is a 29.26 resident of Minnesota at the time employment ceased or was 29.27 working in the state at the time employment ceased and: 29.28 (1) has been terminated or has received a notice of 29.29 termination from public or private sector employment, is 29.30 eligible for or has exhausted entitlement to unemployment 29.31 benefits, and is unlikely to return to the previous industry or 29.32 occupation; 29.33 (2) has been terminated or has received a notice of 29.34 termination of employment as a result of any plant closing or 29.35 any substantial layoff at a plant, facility, or enterprise; 29.36 (3) has been long-term unemployed and has limited 30.1 opportunities for employment or reemployment in the same or a 30.2 similar occupation in the area in which the individual resides, 30.3 including older individuals who may have substantial barriers to 30.4 employment by reason of age; 30.5 (4) has been self-employed, including farmers and ranchers, 30.6 and is unemployed as a result of general economic conditions in 30.7 the community in which the individual resides or because of 30.8 natural disasters, subject to rules to be adopted by the 30.9 commissioner; 30.10 (5) has been self-employed as a farmer or rancher and, even 30.11 though that employment has not ceased, has experienced a 30.12 significant reduction in income due to inadequate crop or 30.13 livestock prices, crop failures, or significant loss in crop 30.14 yields due to pests, disease, adverse weather, or other natural 30.15 phenomenon. This clause expires July 31, 2003; or 30.16 (6) is a displaced homemaker. A "displaced homemaker" is 30.17 an individual who has spent a substantial number of years in the 30.18 home providing homemaking service and (i) has been dependent 30.19 upon the financial support of another; and now due to divorce, 30.20 separation, death, or disability of that person, must find 30.21 employment to self support; or (ii) derived the substantial 30.22 share of support from public assistance on account of dependents 30.23 in the home and no longer receives such support. 30.24 To be eligible under this clause, the support must have 30.25 ceased while the worker resided in Minnesota. 30.26 (c) "Eligible organization" means a state or local 30.27 government unit, nonprofit organization, community action 30.28 agency, business organization or association, or labor 30.29 organization. 30.30 (d) "Plant closing" means the announced or actual permanent 30.31 shutdown of a single site of employment, or one or more 30.32 facilities or operating units within a single site of employment. 30.33 (e) "Substantial layoff" means a permanent reduction in the 30.34 workforce, which is not a result of a plant closing, and which 30.35 results in an employment loss at a single site of employment 30.36 during any 30-day period for at least 50 employees excluding 31.1 those employees that work less than 20 hours per week. 31.2 Subd. 2. [GRANTS.] The board shall make grants to 31.3 workforce service areas or other eligible organizations to 31.4 provide services to dislocated workers. The board shall 31.5 allocate funds available for the purposes of this section in its 31.6 discretion to respond to large layoffs. The board shall 31.7 regularly allocate funds to provide services to individual 31.8 dislocated workers or small groups. The allocation for this 31.9 purpose must be no less than 35 percent and no more than 50 31.10 percent of the projected collections, interest and other 31.11 earnings of the workforce development fund during the period for 31.12 which the allocation is made, less any collection costs paid out 31.13 of the fund. The board shall consider the need for services to 31.14 individual workers and workers in small layoffs in comparison to 31.15 those in large layoffs relative to the needs in previous years 31.16 when making this allocation. The board may, in its discretion, 31.17 allocate funds carried forward from previous years under 31.18 subdivision 9 for large, small, or individual layoffs. 31.19 Subd. 3. [ALLOCATION OF FUNDS.] The board, in consultation 31.20 with local workforce councils and local elected officials, shall 31.21 develop a method of distributing funds to provide services for 31.22 dislocated workers who are dislocated as a result of small or 31.23 individual layoffs. The board shall consider current requests 31.24 for services and the likelihood of future layoffs when making 31.25 this allocation. The board shall consider factors for 31.26 determining the allocation amounts that include, but are not 31.27 limited to, the previous year's obligations and projected 31.28 layoffs. After the first quarter of the program year, the board 31.29 shall evaluate the obligations by workforce service areas for 31.30 the purpose of reallocating funds to workforce service areas 31.31 with increased demand for services. Periodically throughout the 31.32 program year, the board shall consider making additional 31.33 allocations to the workforce service areas with a demonstrated 31.34 need for increased funding. The board shall make an initial 31.35 determination regarding allocations under this subdivision by 31.36 July 15, 2001, and in subsequent years shall make a 32.1 determination by April 15. 32.2 [EFFECTIVE DATE.] This subdivision is effective the day 32.3 following final enactment. 32.4 Subd. 4. [USE OF FUNDS.] Funds granted by the board under 32.5 this section may be used for any combination of the following, 32.6 except as otherwise provided in this section: 32.7 (1) employment transition services such as developing 32.8 readjustment plans for individuals; outreach and intake; early 32.9 readjustment; job or career counseling; testing; orientation; 32.10 assessment of skills and aptitudes; provision of occupational 32.11 and labor market information; job placement assistance; job 32.12 search; job development; prelayoff assistance; relocation 32.13 assistance; and programs provided in cooperation with employers 32.14 or labor organizations to provide early intervention in the 32.15 event of plant closings or substantial layoffs; 32.16 (2) services that will allow the participant to become 32.17 reemployed by retraining for a new occupation or industry, 32.18 enhancing current skills, or relocating to employ existing 32.19 skills, including classroom training; occupational skill 32.20 training; on-the-job training; out-of-area job search; 32.21 relocation; basic and remedial education; literacy and English 32.22 for training non-English speakers; entrepreneurial training; and 32.23 other appropriate training activities directly related to 32.24 appropriate employment opportunities in the local labor market; 32.25 and 32.26 (3) support services, including family care assistance, 32.27 including child care; commuting assistance; housing and rental 32.28 assistance; counseling assistance, including personal and 32.29 financial; health care; emergency health assistance; emergency 32.30 financial assistance; work-related tools and clothing; and other 32.31 appropriate support services that enable a person to participate 32.32 in an employment and training program. 32.33 Subd. 5. [COST LIMITATIONS.] Funds allocated to a grantee 32.34 are subject to the following cost limitations: 32.35 (1) no more than 10 percent may be allocated for 32.36 administration; 33.1 (2) at least 50 percent must be allocated for training 33.2 assistance as provided in subdivision 4, clause (2); and 33.3 (3) no more than 15 percent may be allocated for support 33.4 services as provided in subdivision 4, clause (3). 33.5 A waiver of the training assistance minimum in clause (2) 33.6 may be sought, but no waiver shall allow less than 30 percent of 33.7 the grant to be spent on training assistance. A waiver of the 33.8 support services maximum in clause (3) may be sought, but no 33.9 waiver shall allow more than 20 percent of the grant to be spent 33.10 on support services. 33.11 Subd. 6. [PERFORMANCE STANDARDS.] (a) The board, in 33.12 consultation with representatives of local workforce councils 33.13 and local elected officials, shall establish performance 33.14 standards for the programs and activities administered or funded 33.15 under this section. The board may use, when appropriate, 33.16 existing federal performance standards or, if the commissioner 33.17 determines that federal standards are inadequate or not 33.18 suitable, may formulate new performance standards to ensure that 33.19 the programs and activities of the dislocated worker program are 33.20 effectively administered. 33.21 (b) The board shall, at a minimum, establish performance 33.22 standards that appropriately gauge the program's effectiveness 33.23 at placing dislocated workers in employment, replacing lost 33.24 income resulting from dislocation, early intervention with 33.25 workers shortly after dislocation, and retraining of workers 33.26 from one industry or occupation to another. 33.27 Subd. 7. [REPORTS.] (a) Grantees receiving funds under 33.28 this section shall report to the board information on program 33.29 participants, activities funded, and utilization of funds in a 33.30 form and manner prescribed by the board. 33.31 (b) The board shall report quarterly to the workforce 33.32 development council information on grants awarded, activities 33.33 funded, and plant closings and substantial layoffs. Specific 33.34 information to be reported shall be by agreement between the 33.35 board and the workforce development council. 33.36 Subd. 8. [ADMINISTRATIVE COSTS.] No more than three 34.1 percent of the funds appropriated to the board for the purposes 34.2 of this section may be spent by the board for its administrative 34.3 costs. 34.4 Subd. 9. [CARRY FORWARD.] Any funds not allocated, 34.5 obligated, or expended in a fiscal year shall be available for 34.6 allocation, obligation, and expenditure in the following fiscal 34.7 year. 34.8 Sec. 8. Minnesota Statutes 2000, section 138.664, is 34.9 amended by adding a subdivision to read: 34.10 Subd. 50a. Little Elk Heritage Preserve, Morrison county. 34.11 Sec. 9. [181.9455] [LEAVE FOR ORGAN DONATION.] 34.12 Subdivision 1. [DEFINITIONS.] (a) For the purposes of this 34.13 section, the following terms have the meanings given to them in 34.14 this subdivision. 34.15 (b) "Employee" means a person who performs services for 34.16 hire for a public employer, for an average of 20 or more hours 34.17 per week, and includes all individuals employed at any site 34.18 owned or operated by a public employer. Employee does not 34.19 include an independent contractor. 34.20 (c) "Employer" means a state, county, city, town, school 34.21 district, or other governmental subdivision that employs 20 or 34.22 more employees. 34.23 Subd. 2. [LEAVE.] An employer must grant paid leaves of 34.24 absence to an employee who seeks to undergo a medical procedure 34.25 to donate an organ or partial organ to another person. The 34.26 combined length of the leaves shall be determined by the 34.27 employee, but may not exceed 40 work hours for each donation, 34.28 unless agreed to by the employer. The employer may require 34.29 verification by a physician of the purpose and length of each 34.30 leave requested by the employee for organ donation. If there is 34.31 a medical determination that the employee does not qualify as an 34.32 organ donor, the paid leave of absence granted to the employee 34.33 prior to that medical determination is not forfeited. 34.34 Subd. 3. [NO EMPLOYER SANCTIONS.] An employer shall not 34.35 retaliate against an employee for requesting or obtaining a 34.36 leave of absence as provided by this section. 35.1 Subd. 4. [RELATIONSHIP TO OTHER LEAVE.] This section does 35.2 not prevent an employer from providing leave for organ donations 35.3 in addition to leave allowed under this section. This section 35.4 does not affect an employee's rights with respect to any other 35.5 employment benefit. 35.6 Subd. 5. [REPORT.] The commissioner of employee relations 35.7 must report to the legislature on the use and costs of the leave 35.8 under this section. The report must be made by February 15, 2003. 35.9 Subd. 6. [SUNSET.] This section expires on June 30, 2004. 35.10 Sec. 10. Minnesota Statutes 2000, section 184.29, is 35.11 amended to read: 35.12 184.29 [FEES.] 35.13 Before a license is granted to an applicant, the applicant 35.14 shall pay the following fee: 35.15 (a) An employment agent shall pay an annual license fee of 35.16 $250 for each license. 35.17 (b)A search firm exempt under section 184.22, subdivision35.182, shall pay an annual registration fee of $250, accompanying35.19the annual statement to the commissioner.35.20(c)An applicant for a counselor's license shall pay a 35.21 license fee of $20 and a renewal fee of $10. 35.22(d)(c) An applicant for an employment agency manager's 35.23 license shall pay a license fee of $20 and a renewal fee of $10. 35.24 [EFFECTIVE DATE.] This section is effective July 1, 2003. 35.25 Sec. 11. Minnesota Statutes 2000, section 184.30, 35.26 subdivision 1, is amended to read: 35.27 Subdivision 1. Every application for an employment 35.28 agency's license, and every annual report required to be filed35.29under section 184.22, subdivision 2,must be accompanied by a 35.30 surety bond approved by the department in the amount of $10,000 35.31 for each location; except, that for a search firm, the bond is35.32required only for the first five years of registration. For a35.33search firm that was previously licensed as an employment35.34agency, the bond is required only until the firm has met the35.35bond requirement as an agency or as a search firm for a total of35.36at least five years. The bond must be filed in the office of 36.1 the secretary of state and conditioned that the employment 36.2 agency and each member, shareholder, director, or officer of a 36.3 firm, partnership, corporation, or association operating as an 36.4 employment agency will comply with the provisions of sections 36.5 184.21 to 184.40 and any contract made by the employment agent 36.6 in the conduct of the business. A person damaged by a breach of 36.7 any condition of the bond may bring an action on the bond, and 36.8 successive actions may be maintained on it. 36.9 [EFFECTIVE DATE.] This section is effective July 1, 2003. 36.10 Sec. 12. Minnesota Statutes 2000, section 184.38, 36.11 subdivision 6, is amended to read: 36.12 Subd. 6. (a) No employment agentor search firmshall send 36.13 out any applicant for employment without having obtained a job 36.14 order, and if no employment of the kind applied for existed at 36.15 the place to which the applicant was directed, the employment 36.16 agentor search firmshall refund to the applicant, within 48 36.17 hours of demand, any sums paid by the applicant for 36.18 transportation in going to and returning from the place. 36.19 (b) Nothing in this chapter shall be construed to prevent 36.20 an employment agentor search firmfrom directing an applicant 36.21 to an employer where the employer has previously requested 36.22 interviews with applicants of certain types and qualifications, 36.23 even though no actual vacancy existed in the employer's 36.24 organization at the time the applicant was so directed; nor 36.25 shall it prevent the employment agentor search firmfrom 36.26 attempting to sell the services of an applicant to the employer 36.27 even though no order has been placed with the employment agent 36.28or search firm; provided, that prior to scheduling an interview 36.29 with an employer, when no opening currently exists with that 36.30 employer, the applicant is clearly informed that no opening 36.31 exists at that time. 36.32 [EFFECTIVE DATE.] This section is effective July 1, 2003. 36.33 Sec. 13. Minnesota Statutes 2000, section 184.38, 36.34 subdivision 8, is amended to read: 36.35 Subd. 8. No employment agentor search firmshall 36.36 knowingly cause to be printed or published a false or fraudulent 37.1 notice or advertisement for help or for obtaining work or 37.2 employment. For purposes of this subdivision the phrase "false 37.3 or fraudulent notice or advertisement" shall include the 37.4 following: 37.5 (a) The advertisement of any job for which there is no bona 37.6 fide oral or written job order and completed job order form in 37.7 existence at the time the advertisement is placed; 37.8 (b) The inclusion in any advertisement of any information 37.9 concerning the identity, availability, features, or requirements 37.10 of any advertised job when such information is not substantiated 37.11 by, and included in, the supporting job order form; 37.12 (c) The advertisement of any job opening of the type 37.13 described in subdivision 6, clause (b); 37.14 (d) The advertisement of any job without the inclusion in 37.15 the advertisement of the "job order number" required in 37.16 subdivision 18; 37.17 (e) If an applicant appears at any agencyor search firmin 37.18 response to the advertisement of a particular job, the failure 37.19 to attempt placement of the applicant in the advertised job; 37.20 provided however, that the agencyor search firmmay refuse to 37.21 attempt such placement if the reason(s) for the refusal are 37.22 clearly and truthfully disclosed to the applicant either orally 37.23 or in writing. 37.24 [EFFECTIVE DATE.] This section is effective July 1, 2003. 37.25 Sec. 14. Minnesota Statutes 2000, section 184.38, 37.26 subdivision 9, is amended to read: 37.27 Subd. 9. No employment agentor search firmshall place or 37.28 assist in placing any person in unlawful employment. 37.29 [EFFECTIVE DATE.] This section is effective July 1, 2003. 37.30 Sec. 15. Minnesota Statutes 2000, section 184.38, 37.31 subdivision 10, is amended to read: 37.32 Subd. 10. No employment agentor search firmshall fail to 37.33 state in any advertisement, proposal, or contract for 37.34 employment, that there is a strike or lockout at the place of 37.35 proposed employment, if the agentor firmhas knowledge that 37.36 such condition exists. 38.1 [EFFECTIVE DATE.] This section is effective July 1, 2003. 38.2 Sec. 16. Minnesota Statutes 2000, section 184.38, 38.3 subdivision 11, is amended to read: 38.4 Subd. 11. No employment agency or its employee may split, 38.5 divide, or share, directly or indirectly, any fee, charge, or 38.6 compensation received from any employer or applicant with any 38.7 employer, or person in any way connected with the employer's 38.8 business.No search firm or its employee may split, divide, or38.9share, directly or indirectly, any fee, charge, or compensation38.10received from any employer with any person connected in any way38.11with the employer's business.A violation of this subdivision 38.12 shall be punished by a fine of not less than $100, and not more 38.13 than $3,000, or on failure to pay the fine by imprisonment for a 38.14 period not to exceed one year, or both, at the discretion of the 38.15 court. 38.16 [EFFECTIVE DATE.] This section is effective July 1, 2003. 38.17 Sec. 17. Minnesota Statutes 2000, section 184.38, 38.18 subdivision 17, is amended to read: 38.19 Subd. 17. Except for applicant information given in the 38.20 course of normal agencyor firmoperations, no employment agent 38.21or search firmshall voluntarily sell, give, or otherwise 38.22 transfer any files, records, or other information relating to 38.23 its employment agencyor search firmapplicants and employers to 38.24 any person other than a licensed employment agentor registered38.25search firmor a person who agrees to obtain an employment 38.26 agency licenseor register as a search firm. Every employment 38.27 agentor search firmwho ceases to engage in the business of or 38.28 act as an employment agentor search firmshall notify the 38.29 department of such fact within 30 days thereof, and shall advise 38.30 the department as to the disposition of all files and other 38.31 records relating to its employment agencyor search firm38.32 business. 38.33 [EFFECTIVE DATE.] This section is effective July 1, 2003. 38.34 Sec. 18. Minnesota Statutes 2000, section 184.38, 38.35 subdivision 18, is amended to read: 38.36 Subd. 18. Every job order communicated to an agencyor39.1search firmshall be recorded by the agencyor search firmon a 39.2 job order form which form shall contain specific information as 39.3 prescribed by the department. A job order form shall be filled 39.4 out for each job order prior to any attempt to advertise the job 39.5 opening or to place persons in said job. Such forms shall each 39.6 be assigned a separate number and shall be maintained by the 39.7 agencyor search firmfor a period of one year. 39.8 [EFFECTIVE DATE.] This section is effective July 1, 2003. 39.9 Sec. 19. Minnesota Statutes 2000, section 184.38, 39.10 subdivision 20, is amended to read: 39.11 Subd. 20. No employment agentor search firmshall 39.12 knowingly misrepresent to any employer the educational 39.13 background, skills, or qualifications of any job candidate; or 39.14 knowingly misrepresent to a job candidate the responsibilities, 39.15 salary, or other features of any position of employment. 39.16 [EFFECTIVE DATE.] This section is effective July 1, 2003. 39.17 Sec. 20. Minnesota Statutes 2000, section 184.41, is 39.18 amended to read: 39.19 184.41 [VIOLATIONS.] 39.20 Any person who engages in the business of or acts as an 39.21 employment agent or counselor without first procuring a license 39.22 as required by section 184.22, and any employment agent, 39.23 manager, or counselor who violates the provisions of this 39.24 chapter, and any exempt firm which violates any of the39.25applicable provisions of this chapter,is guilty of a 39.26 misdemeanor. 39.27 In addition to the penalties for commission of a 39.28 misdemeanor, the department may bring an action for an 39.29 injunction against any person who engages in the business of or 39.30 acts as an employment agent or counselor without first procuring 39.31 the license required under section 184.22,or who engages in the39.32business of or acts as a search firm without first filing the39.33registration required under section 184.22, subdivision 3,and 39.34 against any employment agent, manager, or counselor, or search39.35firmwho violates the applicable provisions of this chapter. If 39.36 an agency, manager, or counselor, or search firmis found guilty 40.1 of a misdemeanor in any action relevant to the operation of an 40.2 agency,or search firmthe department may suspend or revoke the 40.3 licenseor registrationof the agency, manager, or counselor, or40.4search firm. 40.5 [EFFECTIVE DATE.] This section is effective July 1, 2003. 40.6 Sec. 21. Minnesota Statutes 2000, section 216C.41, as 40.7 amended by Laws 2001, chapter 212, article 5, section 1, is 40.8 amended to read: 40.9 216C.41 [RENEWABLE ENERGY PRODUCTION INCENTIVE.] 40.10 Subdivision 1. [DEFINITIONS.] (a) The definitions in this 40.11 subdivision apply to this section. 40.12 (b) "Qualified hydroelectric facility" means a 40.13 hydroelectric generating facility in this state that: 40.14 (1) is located at the site of a dam, if the dam was in 40.15 existence as of March 31, 1994; and 40.16 (2) begins generating electricity after July 1, 1994, or 40.17 generates electricity after substantial refurbishing of a 40.18 facility that begins after July 1, 2001. 40.19 (c) "Qualified wind energy conversion facility" means a 40.20 wind energy conversion system that: 40.21 (1) produces two megawatts or less of electricity as 40.22 measured by nameplate rating and begins generating electricity 40.23 afterJune 30, 1997December 31, 1996, and before July 1, 1999; 40.24 (2) begins generating electricity after June 30, 1999, 40.25 produces two megawatts or less of electricity as measured by 40.26 nameplate rating, and is: 40.27 (i) located within one county and owned by a natural person 40.28 who owns the land where the facility is sited; 40.29 (ii) owned by a Minnesota small business as defined in 40.30 section 645.445; 40.31 (iii) owned by a nonprofit organization; or 40.32 (iv) owned by a tribal council if the facility is located 40.33 within the boundaries of the reservation; or 40.34 (3) begins generating electricity after June 30, 1999, 40.35 produces seven megawatts or less of electricity as measured by 40.36 nameplate rating, and: 41.1 (i) is owned by a cooperative organized under chapter 308A; 41.2 and 41.3 (ii) all shares and membership in the cooperative are held 41.4 by natural persons or estates, at least 51 percent of whom 41.5 reside in a county or contiguous to a county where the wind 41.6 energy production facilities of the cooperative are located. 41.7 (d) "Qualified on-farm biogas recovery facility" means an 41.8 anaerobic digester system that: 41.9 (1) is located at the site of an agricultural operation; 41.10 (2) is owned by a natural person who owns or rents the land 41.11 where the facility is located; and 41.12 (3) begins generating electricity after July 1, 2001. 41.13 (e) "Anaerobic digester system" means a system of 41.14 components that processes animal waste based on the absence of 41.15 oxygen and produces gas used to generate electricity. 41.16 Subd. 2. [INCENTIVE PAYMENT; APPROPRIATION.] (a) Incentive 41.17 paymentsshallmust be made according to this section to (1) a 41.18 qualified on-farm biogas recovery facility, (2) the owner or 41.19 operator of a qualified hydropower facility or qualified wind 41.20 energy conversion facility for electric energy generated and 41.21 sold by the facilityor, for, (3) a publicly owned hydropower 41.22 facility,for electric energy that is generated by the facility 41.23 and used by the owner of the facility outside the facility, or 41.24 (4) the owner of a publicly owned dam that is in need of 41.25 substantial repair, for electric energy that is generated by a 41.26 hydropower facility at the dam and the annual incentive payments 41.27 will be used to fund the structural repairs and replacement of 41.28 structural components of the dam, or to retire debt incurred to 41.29 fund those repairs. 41.30 (b) Payment may only be made upon receipt by the 41.31 commissioner of finance of an incentive payment application that 41.32 establishes that the applicant is eligible to receive an 41.33 incentive payment and that satisfies other requirements the 41.34 commissioner deems necessary. The applicationshallmust be in 41.35 a form and submitted at a time the commissioner establishes. 41.36 (c) There is annually appropriated from the general fund 42.1 sums sufficient to make the payments required under this section. 42.2 Subd. 3. [ELIGIBILITY WINDOW.] Payments may be made under 42.3 this section only for electricity generated: 42.4 (1) from a qualified hydroelectric facility that is 42.5 operational and generating electricity before December 31, 42.620022005;or42.7 (2) from a qualified wind energy conversion facility that 42.8 is operational and generating electricity before January 1, 42.9 2005; or 42.10 (3) from a qualified on-farm biogas recovery facility from 42.11 July 1, 2001, through December 31, 2015. 42.12 Subd. 4. [PAYMENT PERIOD.] (a) A facility may receive 42.13 payments under this section for a ten-year period. No payment 42.14 under this section may be made for electricity generated: 42.15 (1) by a qualified hydroelectric facility after December 42.16 31,20102015;or42.17 (2) by a qualified wind energy conversion facility after 42.18 December 31, 2015; or 42.19 (3) by a qualified on-farm biogas recovery facility after 42.20 December 31, 2015. 42.21 (b) The payment period begins and runs consecutively from 42.22 the first year in which electricity generated from the facility 42.23 is eligible for incentive payment or after substantial repairs 42.24 to the hydropower facility dam funded by the incentive payments 42.25 are initiated. 42.26 Subd. 5. [AMOUNT OF PAYMENT.] An incentive payment is 42.27 based on the number of kilowatt hours of electricity generated. 42.28 The amount of the payment is: 42.29 (1) for a facility described under subdivision 2, paragraph 42.30 (a), clause (4), 1.0 cents per kilowatt hour; and 42.31 (2) for all other facilities, 1.5 cents per kilowatt hour. 42.32 For electricity generated by qualified wind energy 42.33 conversion facilities, the incentive payment under this section 42.34 is limited to no more than 100 megawatts of nameplate capacity. 42.35 During any period in which qualifying claims for incentive 42.36 payments exceed 100 megawatts of nameplate capacity, the 43.1 payments must be made to producers in the order in which the 43.2 production capacity was brought into production. 43.3 Sec. 22. Minnesota Statutes 2000, section 268.022, 43.4 subdivision 2, is amended to read: 43.5 Subd. 2. [DISBURSEMENT OF SPECIAL ASSESSMENT FUNDS.] (a) 43.6 The money collected under this section shall be deposited in the 43.7 state treasury and credited to the workforce development fund to 43.8 provide for employment and training programs. The workforce 43.9 development fund is created as a special account in the state 43.10 treasury. 43.11 (b) All money in the fund not otherwise appropriated or 43.12 transferred is appropriated to thecommissioner whojob skills 43.13 partnership board for the purposes of section 116L.17. The 43.14 board must act as the fiscal agent for the money and must 43.15 disburse that money for the purposes ofthissection 116L.17, 43.16 not allowing the money to be used for any other obligation of 43.17 the state. All money in the workforce development fund shall be 43.18 deposited, administered, and disbursed in the same manner and 43.19 under the same conditions and requirements as are provided by 43.20 law for the other special accounts in the state treasury, except 43.21 that all interest or net income resulting from the investment or 43.22 deposit of money in the fund shall accrue to the fund for the 43.23 purposes of the fund. 43.24 (c)No more than five percent of the funds collected in43.25each fiscal year may be used by the department of economic43.26security for its administrative costs.43.27(d)Reimbursement for costs related to collection of the 43.28 special assessment shall be in an amount negotiated between the 43.29 commissioner and the United States Department of Labor. 43.30(e) The funds appropriated to the commissioner, less43.31amounts under paragraphs (c) and (d) shall be allocated as43.32follows:43.33(1) 40 percent to be allocated annually to substate43.34grantees for provision of expeditious response activities under43.35section 268.9771 and worker adjustment services under section43.36268.9781; and44.1(2) 60 percent to be allocated to activities and programs44.2authorized under sections 268.975 to 268.98.44.3(f) Any funds not allocated, obligated, or expended in a44.4fiscal year shall be available for allocation, obligation, and44.5expenditure in the following fiscal year.44.6 Sec. 23. Minnesota Statutes 2000, section 268.145, 44.7 subdivision 1, is amended to read: 44.8 Subdivision 1. [NOTIFICATION.] (a) Upon filing an 44.9 application for unemployment benefits, the applicant shall be 44.10 informed that: 44.11 (1) unemployment benefits are subject to federal and state 44.12 income tax; 44.13 (2) there are requirements for filing estimated tax 44.14 payments; 44.15 (3) the applicant may elect to have federal income tax 44.16 withheld from unemployment benefits; 44.17 (4) if the applicant elects to have federal income tax 44.18 withheld, the applicant may, in addition, elect to have 44.19 Minnesota state income tax withheld; and 44.20 (5) at any time during the benefit year the applicant may 44.21 change a prior election. 44.22 (b) If an applicant elects to have federal income tax 44.23 withheld, the commissioner shall deduct15ten percent for 44.24 federal income tax, rounded to the nearest whole dollar. If an 44.25 applicant also elects to have Minnesota state income tax 44.26 withheld, the commissioner shall make an additional five percent 44.27 deduction for state income tax. Any amounts deducted or offset 44.28 pursuant to sections 268.155, 268.156, 268.18, and 268.184 have 44.29 priority over any amounts deducted under this section. Federal 44.30 income tax withholding has priority over state income tax 44.31 withholding. 44.32 (c) An election to have income tax withheld shall not be 44.33 retroactive and shall only apply to unemployment benefits paid 44.34 after the election. 44.35 [EFFECTIVE DATE.] This section is effective August 1, 2001. 44.36 Sec. 24. Minnesota Statutes 2000, section 268.665, is 45.1 amended by adding a subdivision to read: 45.2 Subd. 3a. [EXECUTIVE COMMITTEE DUTIES.] The executive 45.3 committee must, with advice and input of local workforce 45.4 councils and other stakeholders as appropriate, develop 45.5 performance standards for the state workforce centers. By 45.6 January 15, 2002, and each odd-numbered year thereafter, the 45.7 executive committee shall submit a report to the senate and 45.8 house committees with jurisdiction over workforce development 45.9 programs regarding the performance and outcomes of the workforce 45.10 centers. The report must provide recommendations regarding 45.11 workforce center funding levels and sources, program changes, 45.12 and administrative changes. 45.13 Sec. 25. Minnesota Statutes 2000, section 473.195, is 45.14 amended by adding a subdivision to read: 45.15 Subd. 5. [HRA GOVERNING BOARD.] For the purposes of 45.16 exercising the authority granted to it under this section, the 45.17 council may, at its sole discretion, establish within the 45.18 council's existing organizational structure a separate governing 45.19 body to which the council may delegate any or all of the 45.20 authority granted to the council under this section. The 45.21 resolution establishing the separate governing body must: 45.22 (1) set out the powers and duties delegated to the separate 45.23 governing body; 45.24 (2) prescribe the number, qualifications, and terms of its 45.25 members; and 45.26 (3) provide for any other terms and conditions that are 45.27 deemed appropriate by the council. 45.28 The council shall appoint the members of the separate governing 45.29 body in accordance with a process established by the council. 45.30 No fewer than 75 percent of the members of the separate 45.31 governing body must be council members. For purposes of 45.32 compliance with United State Code, title 42, section 1437(b), 45.33 and implementing federal regulations, at least one member of the 45.34 separate governing body members must be a resident directly 45.35 assisted by the council. Members are entitled to reimbursement 45.36 for all actual and necessary expenses incurred in the 46.1 performance of governing body business, and a member other than 46.2 a council member is entitled to payment of $50 for each day the 46.3 member attends one or more meetings of the separate governing 46.4 body or performs other services authorized by the body. The 46.5 council shall provide administrative and staff support to the 46.6 separate governing body. The council may, at its sole 46.7 discretion, abolish the separate governing body or limit or 46.8 expand its delegated authority. Nothing in this section impairs 46.9 existing contracts to which the council is a party or limits the 46.10 council's ability to enter into contracts when the council 46.11 exercises any of the functions, rights, powers, duties, 46.12 privileges, immunities, and limitations granted to the council 46.13 by this section. 46.14 Sec. 26. Laws 1993, chapter 301, section 1, subdivision 4, 46.15 as amended by Laws 1999, chapter 47, section 1, is amended to 46.16 read: 46.17 Subd. 4. [WAIVER.] (a) Upon receipt of the committee 46.18 report required by subdivision 3, each entity head shall submit 46.19 the list of recommended waivers to the commissioner of employee 46.20 relations. The commissioner shall then grant the waivers 46.21 requested by each entity, effective for the requesting entity, 46.22 for a period ending June 30, 1997, except the waivers granted 46.23 for the Minnesota housing finance agency shall extend to June 46.24 30,20012003, subject to the restrictions in paragraph (b) and 46.25 to revision in accordance with subdivision 5. The commissioner 46.26 shall waive a rule by granting a variance under Minnesota 46.27 Statutes, section 14.05, subdivision 4. 46.28 (b) The commissioner may not grant a waiver if it would 46.29 result in the layoff of classified employees or unclassified 46.30 employees covered by a collective bargaining agreement except as 46.31 provided in a plan negotiated under Minnesota Statutes, chapter 46.32 179A, that provides options to layoff for employees who would be 46.33 affected. If a proposed waiver would violate the terms of a 46.34 collective bargaining agreement reached under Minnesota 46.35 Statutes, chapter 179A, the waiver may not be granted without 46.36 the consent of the exclusive representative that is a party to 47.1 the agreement. 47.2 [EFFECTIVE DATE.] This section is effective July 1, 2001. 47.3 Sec. 27. Laws 1995, chapter 248, article 12, section 2, as 47.4 amended by Laws 1999, chapter 47, section 2, is amended to read: 47.5 Sec. 2. [TERMINATION.] 47.6 Section 1 and the civil service pilot project in the 47.7 housing finance agency as authorized by Laws 1993, chapter 301, 47.8 terminate June 30,20012003, or at any earlier time by a method 47.9 agreed upon by the commissioners of employee relations and 47.10 housing finance and the affected exclusive bargaining 47.11 representative of state employees. 47.12 [EFFECTIVE DATE.] This section is effective July 1, 2001. 47.13 Sec. 28. Laws 1995, chapter 248, article 13, section 2, 47.14 subdivision 2, as amended by Laws 1997, chapter 97, section 13, 47.15 is amended to read: 47.16 Subd. 2. [PILOT PROJECT.] During the biennium ending June 47.17 30,20012005, the governor shall designate an executive agency 47.18 that will conduct a pilot civil service project. The pilot 47.19 program must adhere to the policies expressed in subdivision 1 47.20 and in Minnesota Statutes, section 43A.01. For the purposes of 47.21 conducting the pilot project, the commissioner of the designated 47.22 agency is exempt from the provisions that relate to employment 47.23 in Minnesota Statutes, chapter 43A, Minnesota Rules, chapter 47.24 3900, and administrative procedures and policies of the 47.25 department of employee relations. If a proposed exemption from 47.26 the provisions that relate to employment in Minnesota Statutes, 47.27 chapter 43A, Minnesota Rules, chapter 3900, and administrative 47.28 procedures and policies of the department of employee relations 47.29 would violate the terms of a collective bargaining agreement 47.30 effective under Minnesota Statutes, chapter 179A, the exemption 47.31 is not effective without the consent of the exclusive 47.32 representative that is a party to the agreement. Upon request 47.33 of the commissioner carrying out the pilot project, the 47.34 commissioner of employee relations shall provide technical 47.35 assistance in support of the pilot project. This section does 47.36 not exempt an agency from compliance with Minnesota Statutes, 48.1 sections 43A.19 and 43A.191, or from rules adopted to implement 48.2 those sections. 48.3 [EFFECTIVE DATE.] This section is effective July 1, 2001. 48.4 Sec. 29. [WORKFORCE CENTERS STRATEGIC PLAN.] 48.5 The executive committee of the governor's workforce 48.6 development council shall develop a strategic plan regarding the 48.7 appropriate placement and number of workforce centers within the 48.8 state. The executive committee must consult with local 48.9 workforce boards when determining the placement and number of 48.10 workforce centers in their area. The plan must recognize the 48.11 differing employment needs of various regions, the workforce 48.12 population within proximity of a center, and the potential for 48.13 colocation of the workforce centers with available educational 48.14 institutions. By January 15, 2002, the executive committee 48.15 shall submit the plan and recommendations for closure or 48.16 consolidation of workforce centers to the senate and house 48.17 committees with jurisdiction over workforce development programs. 48.18 Sec. 30. [TRAINING FOR LOW-INCOME WORKERS.] 48.19 The job skills partnership board may operate a pilot 48.20 project to provide vouchers for individuals who are 48.21 training-ready, have incomes at or below 200 percent of the 48.22 federal poverty line, and have dependent children, but are not 48.23 eligible for training services under the Minnesota family 48.24 investment program. The board may grant funds to eligible 48.25 recipients to pay for vouchers for board-certified training. 48.26 Training funded with grants provided under this section should 48.27 be flexible and responsive in order to maximize the ability of 48.28 funded programs to adapt to changes in economic and business 48.29 conditions. Eligible recipients of grants may include: 48.30 (1) public, private, or nonprofit entities that provide 48.31 employment services to low-income individuals; and 48.32 (2) partnerships of two or more eligible recipients under 48.33 clause (1), or partnerships of one or more eligible recipients 48.34 and the council on Black Minnesotans, the Chicano-Latino affairs 48.35 council, the council on Asian-Pacific Minnesotans, the Indian 48.36 affairs council, the Minneapolis community development agency, 49.1 or the St. Paul port authority. 49.2 The job skills partnership board shall report to the 49.3 legislature on the performance and progress of the pilot project 49.4 on or before September 1, 2003. 49.5 Sec. 31. [WORKFORCE ENHANCEMENT FEE.] 49.6 Subdivision 1. [FEE.] Notwithstanding Minnesota Statutes, 49.7 section 268.022, effective January 1, 2002, the special 49.8 assessment under that section on taxable wages as defined in 49.9 Minnesota Statutes, section 268.035, subdivision 24, is 49.10 suspended until December 31, 2005. Effective January 1, 2002, 49.11 there shall be assessed, in addition to unemployment taxes due 49.12 under Minnesota Statutes, section 268.051, a workforce 49.13 enhancement fee of .09 percent on taxable wages. This fee shall 49.14 be due and be paid on the same schedule and in the same manner 49.15 as unemployment taxes under Minnesota Statutes, section 49.16 268.051. Any amount past due under this section shall be 49.17 subject to the same interest and collection provisions as 49.18 unemployment taxes. This fee shall expire on December 31, 2005. 49.19 Subd. 2. [USE OF FUNDS COLLECTED.] An amount equal to .07 49.20 percent on taxable wages shall be deposited in the workforce 49.21 development fund provided for under Minnesota Statutes, section 49.22 268.022, subdivision 2. An amount equal to .02 percent on 49.23 taxable wages, less reimbursement for collection costs of the 49.24 total amount of the fee, shall be deposited in the unemployment 49.25 insurance technology initiative account provided for in section 49.26 32. 49.27 Sec. 32. [UNEMPLOYMENT INSURANCE TECHNOLOGY INITIATIVE.] 49.28 Subdivision 1. [PURPOSE; SET-ASIDE.] The unemployment 49.29 insurance technology initiative involves a set-aside of a 49.30 portion of the money that would otherwise go into the 49.31 unemployment insurance trust fund. This money shall be used on 49.32 technology to substantially enhance unemployment insurance 49.33 services to both applicants for benefits and employers. 49.34 Subd. 2. [TAX REDUCTION.] Notwithstanding Minnesota 49.35 Statutes, section 268.051, subdivision 2, paragraph (b), 49.36 effective January 1, 2002, the base unemployment tax on all 50.1 taxable wages shall be reduced by .02 percent. This subdivision 50.2 expires December 31, 2005. 50.3 Subd. 3. [ACCOUNT.] (a) Effective January 1, 2002, the 50.4 unemployment insurance technology initiative account is created 50.5 as a special account in the special revenue fund in the state 50.6 treasury. This account lapses on December 31, 2007, and any 50.7 money remaining in the account on that date shall be paid into 50.8 the unemployment insurance program trust fund. This account 50.9 consists of all money collected by the workforce enhancement fee 50.10 provided by section 31 and designated for deposit in this 50.11 account and all interest earned on any money in this account, 50.12 less reimbursement of collection costs under paragraph (e). 50.13 (b) Money in the unemployment insurance technology 50.14 initiative account is appropriated to the commissioner of 50.15 economic security and shall be allocated and expended by the 50.16 commissioner only for technology initiatives to enhance 50.17 unemployment insurance services for both applicants for benefits 50.18 and employers. 50.19 (c) Any funds not allocated, obligated, or expended in a 50.20 fiscal year shall be available for allocation, obligation, and 50.21 expenditure in the following fiscal year. 50.22 (d) If the total amount collected by the technology 50.23 initiative fee, excluding the amount expended for reimbursement 50.24 of collection costs plus interest earned upon money in the 50.25 unemployment insurance technology initiative account exceeds 50.26 $30,000,000, the excess shall be paid into the unemployment 50.27 insurance program trust fund. 50.28 (e) Because the administrative cost of collection of the 50.29 workforce enhancement fee is borne by federal money made 50.30 available only to administer the unemployment insurance program, 50.31 the commissioner shall negotiate with the United States 50.32 Department of Labor the amount of any reimbursement for costs 50.33 related to the collection of the fee. Because the reimbursement 50.34 is subsequently made available by the United States Department 50.35 of Labor to the commissioner for administration of the 50.36 unemployment insurance program, the commissioner shall expend 51.1 the reimbursement on personnel costs of operating the 51.2 unemployment insurance program's technology services. 51.3 Sec. 33. [SUNSET.] 51.4 Section 31 expires on December 31, 2005. Section 32 51.5 expires on December 31, 2007. 51.6 Sec. 34. [IMPORTANCE.] 51.7 The Little Elk Heritage Preserve, a 92.25 acre 51.8 archaeological park and nature preserve on the Mississippi river 51.9 near Little Falls, contains a unique cluster of cultural and 51.10 natural resources that together document diverse human 51.11 activities and connections to natural environments in central 51.12 Minnesota over thousands of years. The resources at Little Elk 51.13 Heritage Preserve include archaeological remains identified with 51.14 ancient native America, the colonial fur trade, early Dakota and 51.15 Ojibwe life, Black and women's history, Mississippi valley 51.16 exploration, a mission farm and school, United States Indian 51.17 treaties, territorial period homesteading and townsite 51.18 development, the conflict of 1862, hunting, gathering, 51.19 portaging, quarrying, logging, farming, dam building, grist 51.20 milling, saw milling, and wood products manufacturing. Ongoing 51.21 research programs explore and interpret these important 51.22 resources. 51.23 Sec. 35. [HISTORIC SITE DEFINITION; LITTLE ELK HERITAGE 51.24 PRESERVE.] 51.25 The state register of historic places listing for the 51.26 Little Elk Heritage Preserve includes those portions of the 51.27 preserve that contain significant archaeological or historic 51.28 resources. 51.29 Sec. 36. [TRANSFER TO COUNTY HISTORICAL SOCIETY.] 51.30 Notwithstanding Minnesota Statutes 2000, chapter 134 and 51.31 section 138.053, the city of Anoka may transfer before January 51.32 1, 2002, the balance in the city of Anoka library fund to the 51.33 Anoka county historical society for the society's use for any 51.34 Anoka county historical society purpose. 51.35 Sec. 37. [BOARD OF ACCOUNTANCY FEE.] 51.36 The legislature approves the board of accountancy's 52.1 proposed fee increase included in the governor's 2002-2003 52.2 biennial budget. This approval applies only to the 2002-2003 52.3 biennium. 52.4 Sec. 38. [ELECTRONIC REPORTING; FORMAT.] 52.5 In developing electronic reporting systems for use in the 52.6 administration of the workers' compensation system, the 52.7 department of labor and industry must consult with the 52.8 International Association of Industrial Accident Boards and 52.9 Commissions (IAIABC) so that the department's format of data 52.10 elements and their definitions conform as closely as possible to 52.11 the data dictionary used by the IAIABC. 52.12 Sec. 39. [MUNICIPAL UTILITY AND COOPERATIVE ELECTRIC 52.13 ASSOCIATIONS; CONSERVATION INVESTMENTS.] 52.14 Notwithstanding Laws 2001, chapter 212, article 8, section 52.15 6, the conservation investment obligation of a municipal utility 52.16 shall, until June 1, 2003, exclude revenues attributable to 52.17 electricity purchased from a public utility governed by 52.18 Minnesota Statutes, section 216B.241, subdivision 1a, or a 52.19 cooperative electric association governed by Minnesota Statutes, 52.20 section 216B.241, subdivision 1b. This section expires June 1, 52.21 2003. 52.22 Sec. 40. [RETROACTIVITY.] 52.23 A contract encumbered or a grant awarded by a state agency 52.24 before September 1, 2001, may be made retroactive to July 1, 52.25 2001. 52.26 Sec. 41. [REPEALER.] 52.27 (a) Minnesota Statutes 2000, sections 268.975; 268.976; 52.28 268.9771; 268.978; 268.9781; 268.9782; 268.9783; 268.979; and 52.29 268.98, are repealed. 52.30 (b) Minnesota Statutes 2000, sections 184.22, subdivisions 52.31 2, 3, 4, and 5; and 184.37, subdivision 2, are repealed 52.32 effective July 1, 2003. 52.33 ARTICLE 3 52.34 REORGANIZATION OF DEPARTMENTS 52.35 Section 1. [DEPARTMENT OF ECONOMIC SECURITY ABOLISHED.] 52.36 The department of economic security is abolished. 53.1 [EFFECTIVE DATE.] This section is effective July 1, 2002. 53.2 Sec. 2. [TRANSFER OF RESPONSIBILITIES OF DEPARTMENT OF 53.3 ECONOMIC SECURITY.] 53.4 Subdivision 1. [TO DEPARTMENT OF TRADE AND ECONOMIC 53.5 DEVELOPMENT.] The responsibilities of the department of economic 53.6 security performed by its workforce services unit for employment 53.7 transition services, youth services, welfare-to-work services, 53.8 and workforce exchange services are transferred to the 53.9 department of trade and economic development. 53.10 [EFFECTIVE DATE.] This subdivision is effective July 1, 53.11 2002. 53.12 Subd. 2. [TO DEPARTMENT OF COMMERCE.] The responsibility 53.13 for energy programs of the department of economic security is 53.14 transferred to the department of commerce. 53.15 [EFFECTIVE DATE.] This subdivision is effective October 1, 53.16 2001. 53.17 Subd. 3. [OTHER RESPONSIBILITIES.] The transition team 53.18 established under section 4 shall make recommendations regarding 53.19 the appropriate transfer of the responsibilities of the 53.20 department of economic security not otherwise transferred in 53.21 this section. 53.22 Sec. 3. [ORGANIZATION OF DEPARTMENT OF TRADE AND ECONOMIC 53.23 DEVELOPMENT.] 53.24 The department of trade and economic development shall have 53.25 a division of economic development consisting of business and 53.26 community development, the Minnesota trade office, tourism 53.27 division, information and analysis division, and administrative 53.28 support. The job skills partnership program shall be housed in 53.29 the department and shall have a policy, research, and evaluation 53.30 unit. The job skills partnership board shall provide 53.31 targeted-worker services to include the dislocated worker 53.32 program and welfare-to-work services formerly located in the 53.33 department of economic security. The board shall have a unit 53.34 providing special programs under a workforce transition services 53.35 unit. 53.36 [EFFECTIVE DATE.] This section is effective July 1, 2002. 54.1 Sec. 4. [TRANSITION TEAM CREATION; COMPOSITION.] 54.2 Subdivision 1. [CREATION.] A workforce development program 54.3 reorganization transition advisory team is created. The 54.4 transition team shall make recommendations to the governor and 54.5 the legislature by December 1, 2001, concerning the state 54.6 government structure and department organization for delivering 54.7 workforce development programs and other issues described in 54.8 section 5. The object of the reorganization is to consolidate 54.9 and streamline the state's workforce development system and 54.10 programs so as to provide the most efficient and effective 54.11 workforce development programs. 54.12 Subd. 2. [TRANSITION TEAM COMPOSITION.] The transition 54.13 team shall consist of 12 members appointed as follows: 54.14 (1) six members appointed by the governor of which one 54.15 shall represent business, one shall represent labor, one shall 54.16 represent job training providers, and one shall be designated by 54.17 the governor as head of the transition team; 54.18 (2) three members of the house of representatives appointed 54.19 by the speaker of the house of representatives, one of whom must 54.20 be a member of the minority party; and 54.21 (3) three members of the senate appointed by the 54.22 subcommittee on committees of the committee on rules and 54.23 administration of the senate, one of whom must be a member of 54.24 the minority party. 54.25 The transition team must solicit input from all interested 54.26 groups on how to best implement the reorganization of state 54.27 departments contained in sections 1 to 7 and develop the 54.28 recommendations required in subdivision 1. 54.29 [EFFECTIVE DATE.] This section is effective the day 54.30 following final enactment. 54.31 Sec. 5. [TRANSITION TEAM DUTIES.] 54.32 Subdivision 1. [WORKFORCE DEVELOPMENT PROGRAMS.] The 54.33 transition team shall: 54.34 (1) consider alternative configurations of workforce 54.35 development programs within state agencies, including 54.36 legislative proposals submitted during the 2001 legislative 55.1 session and models from other states; 55.2 (2) recommend governance structures for workforce 55.3 development; 55.4 (3) develop recommendations for creating improved 55.5 communications between the higher education system and the 55.6 workforce development system; 55.7 (4) recommend statutory amendments necessary to implement 55.8 sections 1 to 7; 55.9 (5) recommend statutory and administrative changes 55.10 necessary to strengthen the oversight and management 55.11 responsibilities of local workforce boards and local elected 55.12 officials to ensure the efficient operation of the workforce 55.13 center system and to ensure better coordination of service 55.14 delivery at the community level; 55.15 (6) recommend the transfer of workforce development related 55.16 programs from other state agencies; 55.17 (7) recommend program modifications necessary to ensure 55.18 coordination between the workforce development system and the 55.19 employment and training programs administered by the department 55.20 of human services; 55.21 (8) recommend procedures for promoting greater coordination 55.22 and cooperation among local workforce development agencies, 55.23 local economic development agencies, and higher education 55.24 institutions; 55.25 (9) recommend methods for decreasing administrative costs 55.26 at the state agency level for the purpose of redirecting funding 55.27 to support the delivery of services at the community level; 55.28 (10) recommend where to house the unemployment insurance 55.29 program, taking into consideration the possibilities of 55.30 transferring the program to the department of labor and industry 55.31 or the department of trade and economic development; 55.32 (11) study the feasibility of transferring all or part of 55.33 the responsibility for collecting unemployment insurance taxes 55.34 and other assessments collected with those taxes to the 55.35 department of revenue; 55.36 (12) consider whether the Minnesota career information 56.1 system operated by the department of children, families, and 56.2 learning and the ISEEK system operated by the Minnesota state 56.3 colleges and universities are duplicative, and if so, the 56.4 potential for a consolidated system and recommendations on where 56.5 such a system might be housed; and 56.6 (13) make other recommendations to complete the 56.7 reorganization of state departments contained in sections 1 to 7. 56.8 Subd 2. [TRANSFER OF WORKFORCE INVESTMENT ACT 56.9 PROGRAMS.] The transition team may recommend, where appropriate, 56.10 the transfer of a program, including those programs under the 56.11 Workforce Investment Act of 1998, United States Code, title 29, 56.12 title I and title III, to local workforce boards. 56.13 Subd. 3. [REVISION OF STATE WORKFORCE INVESTMENT ACT 56.14 PLAN.] The transition team shall propose revisions to the state 56.15 unified plan submitted to the United States Department of Labor 56.16 under the Workforce Investment Act of 1998. 56.17 Subd. 4. [CONSULTATION WITH INTERESTED PARTIES.] The 56.18 transition team shall consult with: 56.19 (1) all appropriate state authorized councils, including, 56.20 but not limited to, the state rehabilitation advisory council, 56.21 the statewide independent living council, the rehabilitation 56.22 advisory council for the blind, and the Minnesota state council 56.23 on disability prior to making recommendations to the legislature 56.24 on the appropriate transfer of responsibilities for 56.25 administration of those programs for which the councils are 56.26 authorized; 56.27 (2) the SAFE coordinating council, prior to making any 56.28 recommendation to the legislature, on the appropriate state 56.29 agency in which to house the juvenile justice program, the 56.30 Minnesota city grants program, and the youth intervention 56.31 program in the department of economic security; 56.32 (3) the representatives of the collective bargaining units 56.33 for state employees affected by the transfers of 56.34 responsibilities under sections 1 to 7, including the 56.35 representatives of the two affected AFL-CIO affiliates and the 56.36 representative of another affected major statewide labor 57.1 organization; 57.2 (4) the commissioners of economic security, trade and 57.3 economic development, and labor and industry, prior to making 57.4 any recommendations to the legislature; 57.5 (5) local workforce councils and local elected officials; 57.6 (6) at least one consumer who receives services through the 57.7 Minnesota family investment program, or an advocate for such 57.8 consumers; 57.9 (7) nonprofit job training providers; and 57.10 (8) in determining the placement in state government of 57.11 state services for the blind, representatives from each of the 57.12 following groups: 57.13 (i) the Rehabilitation Council for the Blind; 57.14 (ii) the National Federation of the Blind; 57.15 (iii) the American Council of the Blind; and 57.16 (iv) the United Blind of Minnesota. 57.17 [EFFECTIVE DATE.] This section is effective the day 57.18 following final enactment. 57.19 Sec. 6. [STAFF SUPPORT AND OPERATIONS OF THE TRANSITION 57.20 TEAM.] 57.21 (a) The head of the transition team shall be in the 57.22 unclassified service of the state, and may hire staff in the 57.23 classified or unclassified service, may contract for staff 57.24 assistance, or may have the assistance of existing state 57.25 employees. 57.26 (b) The commissioners of trade and economic development, 57.27 labor and industry, and economic security must cooperate with 57.28 and provide staff support to the transition team. The support 57.29 includes, but is not limited to, professional, technical, and 57.30 clerical staff necessary to fully assess the programs under 57.31 section 5. 57.32 (c) The transition team shall have access to private or 57.33 nonpublic data within the department of economic security, 57.34 department of labor and industry, and the department of trade 57.35 and economic development necessary to carry out the objectives 57.36 of section 5. 58.1 [EFFECTIVE DATE.] This section is effective the day 58.2 following final enactment. 58.3 Sec. 7. [WORKER PROTECTION.] 58.4 In addition to any other protection, no employee in the 58.5 classified service shall suffer job loss, have a salary reduced, 58.6 or have employment benefits reduced as a result of a 58.7 reorganization mandated or recommended under authority of 58.8 sections 1 to 7. No action taken after July 1, 2005, shall be 58.9 considered a result of reorganization for the purposes of this 58.10 section. 58.11 [EFFECTIVE DATE.] This section is effective the day 58.12 following final enactment. 58.13 Sec. 8. [EXPIRATION.] 58.14 Sections 4, 5, and 6 expire June 30, 2002. 58.15 ARTICLE 4 58.16 HOUSING PROGRAM AND TECHNICAL CHANGES 58.17 Section 1. Minnesota Statutes 2000, section 462A.01, is 58.18 amended to read: 58.19 462A.01 [CITATION.] 58.20 Sections 462A.01 to462A.24462A.34 shall be known as and 58.21 may be cited as the "Minnesota Housing Finance Agency Law of 58.22 1971." 58.23 Sec. 2. Minnesota Statutes 2000, section 462A.03, 58.24 subdivision 1, is amended to read: 58.25 Subdivision 1. [APPLICATION.] For the purpose ofsections58.26462A.01 to 462A.24this chapter, the terms defined in this 58.27 section have the meanings ascribed to them. 58.28 Sec. 3. Minnesota Statutes 2000, section 462A.03, 58.29 subdivision 6, is amended to read: 58.30 Subd. 6. [AGENCY.] "Agency" means the Minnesota housing 58.31 finance agency created bysections 462A.01 to 462A.24this 58.32 chapter. 58.33 Sec. 4. Minnesota Statutes 2000, section 462A.03, 58.34 subdivision 10, is amended to read: 58.35 Subd. 10. [PERSONS AND FAMILIES OF LOW AND MODERATE 58.36 INCOME.] "Persons and families of low and moderate income" means 59.1 persons and families, irrespective of race, creed, national 59.2 origin, sex, or status with respect to guardianship or 59.3 conservatorship, determined by the agency to require such 59.4 assistance as is made available bysections 462A.01 to 462A.2459.5 this chapter on account of personal or family income not 59.6 sufficient to afford adequate housing. In making such 59.7 determination the agency shall take into account the following: 59.8 (a) The amount of the total income of such persons and families 59.9 available for housing needs, (b) the size of the family, (c) the 59.10 cost and condition of housing facilities available, (d) the 59.11 eligibility of such persons and families to compete successfully 59.12 in the normal housing market and to pay the amounts at which 59.13 private enterprise is providing sanitary, decent and safe 59.14 housing. In the case of federally subsidized mortgages with 59.15 respect to which income limits have been established by any 59.16 agency of the federal government having jurisdiction thereover 59.17 for the purpose of defining eligibility of low and moderate 59.18 income families, the limits so established shall govern under 59.19 theprovisionprovisions ofsections 462A.01 to 462A.24this 59.20 chapter. In all other cases income limits for the purpose of 59.21 defining low or moderate income persons shall be established by 59.22 the agency by rules. 59.23 Sec. 5. Minnesota Statutes 2000, section 462A.03, is 59.24 amended by adding a subdivision to read: 59.25 Subd. 23. [METROPOLITAN AREA.] "Metropolitan area" has the 59.26 meaning given in section 473.121, subdivision 2. 59.27 Sec. 6. Minnesota Statutes 2000, section 462A.04, 59.28 subdivision 6, is amended to read: 59.29 Subd. 6. [MANAGEMENT, CONTROL.] The management and control 59.30 of the agency shall be vested solely in the members in 59.31 accordance with the provisions ofsections 462A.01 to 462A.2459.32 this chapter. 59.33 Sec. 7. Minnesota Statutes 2000, section 462A.05, 59.34 subdivision 14, is amended to read: 59.35 Subd. 14. [REHABILITATION LOANS.] It may agree to 59.36 purchase, make, or otherwise participate in the making, and may 60.1 enter into commitments for the purchase, making, or 60.2 participation in the making, of eligible loans for 60.3 rehabilitation to persons and families of low and moderate 60.4 income, and to owners of existing residential housing for 60.5 occupancy by such persons and families, for the rehabilitation 60.6 of existing residential housing owned by them. The loans may be 60.7 insured or uninsured and may be made with security, or may be 60.8 unsecured, as the agency deems advisable. The loans may be in 60.9 addition to or in combination with long-term eligible mortgage 60.10 loans under subdivision 3. They may be made in amounts 60.11 sufficient to refinance existing indebtedness secured by the 60.12 property, if refinancing is determined by the agency to be 60.13 necessary to permit the owner to meet the owner's housing cost 60.14 without expending an unreasonable portion of the owner's income 60.15 thereon. No loan for rehabilitation shall be made unless the 60.16 agency determines that the loan will be used primarily to make 60.17 the housing more desirable to live in, to increase the market 60.18 value of the housing, for compliance with state, county or 60.19 municipal building, housing maintenance, fire, health or similar 60.20 codes and standards applicable to housing, or to accomplish 60.21 energy conservation related improvements. In unincorporated 60.22 areas and municipalities not having codes and standards, the 60.23 agency may, solely for the purpose of administering the 60.24 provisions of this chapter, establish codes and standards. 60.25 Except for accessibility improvements under this subdivision and 60.26 subdivisions 14a and 24, clause (1), no secured loan for 60.27 rehabilitation of any property shall be made in an amount which, 60.28 with all other existing indebtedness secured by the property, 60.29 would exceed 110 percent of its market value, as determined by 60.30 the agency. No loan under this subdivision shall be denied 60.31 solely because the loan will not be used for placing the 60.32 residential housing in full compliance with all state, county, 60.33 or municipal building, housing maintenance, fire, health, or 60.34 similar codes and standards applicable to housing. 60.35 Rehabilitation loans shall be made only when the agency 60.36 determines that financing is not otherwise available, in whole 61.1 or in part, from private lenders upon equivalent terms and 61.2 conditions. Accessibility rehabilitation loans authorized under 61.3 this subdivision may be made to eligible persons and families 61.4 without limitations relating to the maximum incomes of the 61.5 borrowers if: 61.6 (1) the borrower or a member of the borrower's family 61.7 requires a level of care provided in a hospital, skilled nursing 61.8 facility, or intermediate care facility for persons with mental 61.9 retardation or related conditions; 61.10 (2) home care is appropriate; and 61.11 (3) the improvement will enable the borrower or a member of 61.12 the borrower's family to reside in the housing. 61.13 The agency may waive any requirement that the housing units in a 61.14 residential housing development be rented to persons of low and 61.15 moderate income if the development consists of four or less 61.16 dwelling units, one of which is occupied by the owner. 61.17 Sec. 8. Minnesota Statutes 2000, section 462A.05, 61.18 subdivision 14a, is amended to read: 61.19 Subd. 14a. [REHABILITATION LOANS; EXISTING OWNER OCCUPIED 61.20 RESIDENTIAL HOUSING.] It may make loans to persons and families 61.21 of low and moderate income to rehabilitate or to assist in 61.22 rehabilitating existing residential housing owned and occupied 61.23 by those persons or families. No loan shall be made unless the 61.24 agency determines that the loan will be used primarily for 61.25 rehabilitation work necessary for health or safety, essential 61.26 accessibility improvements, or to improve the energy efficiency 61.27 of the dwelling. No loan for rehabilitation of owner occupied 61.28 residential housing shall be denied solely because the loan will 61.29 not be used for placing the residential housing in full 61.30 compliance with all state, county or municipal building, housing 61.31 maintenance, fire, health or similar codes and standards 61.32 applicable to housing. The amount of any loan shall not exceed 61.33 the lesser of (a) a maximum loan amount determined under rules 61.34 adopted by the agency not to exceed $20,000, or (b) the actual 61.35 cost of the work performed, or (c) that portion of the cost of 61.36 rehabilitation which the agency determines cannot otherwise be 62.1 paid by the person or family without the expenditure of an 62.2 unreasonable portion of the income of the person or family. 62.3 Loans made in whole or in part with federal funds may exceed the 62.4 maximum loan amount to the extent necessary to comply with 62.5 federal lead abatement requirements prescribed by the funding 62.6 source. In making loans, the agency shall determine the 62.7 circumstances under which and the terms and conditions under 62.8 which all or any portion of the loan will be repaid and shall 62.9 determine the appropriate security for the repayment of the 62.10 loan. Loans pursuant to this subdivision may be made with or 62.11 without interest or periodic payments.Loans made without62.12interest or periodic payments need not be repaid by the borrower62.13if the property for which the loan is made has not been sold,62.14transferred, or otherwise conveyed nor has it ceased to be the62.15principal place of residence of the borrower, within ten years62.16after the date of the loan.62.17 Sec. 9. Minnesota Statutes 2000, section 462A.05, 62.18 subdivision 16, is amended to read: 62.19 Subd. 16. [PAYMENTS FOR STRUCTURAL DEFECTS.] (a) It may 62.20 make payments or expenditures from the housing development fund 62.21 to persons of low or moderate income, who are recipients of an 62.22 eligible loan as defined in section 462A.03, subdivision 11, or 62.23 who have purchased residential housing from a recipient of such 62.24 eligible loan, and who are owners and occupants of residential 62.25 housing constructed or rehabilitated undersections 462A.01 to62.26462A.24this chapter, when, in the agency's determination, such 62.27 residential housing contains defects or omissions which affect 62.28 the structural soundness, or the use and the livability of such 62.29 housing, including but not limited to defects or omissions in 62.30 materials, hardware, fixtures, design, workmanship and 62.31 landscaping of whatever kind and nature incorporated in said 62.32 housing and which are covered by an agency approved warranty, 62.33 for the purposes of (i) correcting such defects, or (ii) paying 62.34 the claims of the owner arising from such defects, provided, 62.35 that this authority shall exist only if the owner has requested 62.36 assistance from the agency not later than four years after the 63.1 issuance of the eligible loan, or where such residential housing 63.2 was rehabilitated undersections 462A.01 to 462A.24this chapter 63.3 only if the owner has requested assistance from the agency not 63.4 later than two years after the issuance of the eligible loan. 63.5 (b) If such owner elects to receive payments or 63.6 expenditures pursuant to this section, the agency is subrogated 63.7 to the right of such owner to recover damages against any party 63.8 or persons reasonably calculated to be responsible for such 63.9 damages. 63.10 (c) The agency may require from the seller of such 63.11 residential housing, or the contractor responsible for the 63.12 construction or rehabilitation of such housing, an agreement to 63.13 reimburse the agency for any payments and expenditures made 63.14 pursuant to this subdivision with respect to such residential 63.15 housing. 63.16 Sec. 10. Minnesota Statutes 2000, section 462A.05, 63.17 subdivision 22, is amended to read: 63.18 Subd. 22. [LOANS TO FINANCIAL INSTITUTIONS.] It may make 63.19 or participate in the making and enter into commitments for the 63.20 making of loans to any banking institution, savings association, 63.21 or other lender approved by the members, organized under the 63.22 laws of this or any other state or of the United States having 63.23 an office in this state, notwithstanding the provisions of 63.24 section 462A.03, subdivision 13, if it first determines that the 63.25 proceeds of such loans will be utilized for the purpose of 63.26 making loans to or for the benefit of eligible persons and 63.27 families as provided and in accordance withsections 462A.01 to63.28462A.24this chapter. Loans pursuant to this subdivision shall 63.29 be secured, repaid and bear interest at the rate as determined 63.30 by the members. 63.31 Sec. 11. Minnesota Statutes 2000, section 462A.05, 63.32 subdivision 26, is amended to read: 63.33 Subd. 26. [FORMATION OF NONPROFIT CORPORATIONS.] It may, 63.34 when the agency determines it is necessary or desirable to carry 63.35 out its purposes and to exercise any or all of the powers 63.36 conferred upon itunder sections 462A.01 to 462A.24by this 64.1 chapter, and subject to the provisions of subdivision 27, form 64.2 or consent to the formation of one or more corporations under 64.3 the Minnesota Nonprofit Corporation Act, as amended, or under 64.4 other laws of this state. The agency may be a member of the 64.5 corporations, and the members and employees of the agency from 64.6 time to time may be members of the board of directors or 64.7 officers of the corporations. The agency may enter into 64.8 agreements with them providing for the agency to approve various 64.9 aspects of their operations. The agency may capitalize the 64.10 corporations and may acquire all or a part of the corporations' 64.11 share or member certificates. The agency may require that it 64.12 approve aspects of the operation of the corporations including 64.13 the corporations' articles of incorporation or bylaws, 64.14 directors, projects and expenditures, and the sale or conveyance 64.15 of projects, and the issuance of obligations. The agency may 64.16 agree to and may take title to property of the corporations upon 64.17 their dissolution. 64.18 Sec. 12. Minnesota Statutes 2000, section 462A.06, 64.19 subdivision 1, is amended to read: 64.20 Subdivision 1. [LISTED HERE.] For the purpose of 64.21 exercising the specific powers granted in section 462A.05 and 64.22 effectuating the other purposes ofsections 462A.01 to 462A.2464.23 this chapter, the agency shall have the general powers granted 64.24 in this section. 64.25 Sec. 13. Minnesota Statutes 2000, section 462A.06, 64.26 subdivision 4, is amended to read: 64.27 Subd. 4. [RULES.] It may make, and from time to time, 64.28 amend and repeal rules not inconsistent with the provisions of 64.29sections 462A.01 to 462A.24this chapter. 64.30 Sec. 14. Minnesota Statutes 2000, section 462A.07, 64.31 subdivision 10, is amended to read: 64.32 Subd. 10. [HUMAN RIGHTS.] It may establish and enforce 64.33 such rules as may be necessary to insure compliance with chapter 64.34 363, and to insure that occupancy of housing assisted under 64.35sections 462A.01 to 462A.24this chapter shall be open to all 64.36 persons, and that contractors and subcontractors engaged in the 65.1 construction of such housing shall provide an equal opportunity 65.2 for employment to all persons, without discrimination as to 65.3 race, color, creed, religion, national origin, sex, marital 65.4 status, age, and status with regard to public assistance or 65.5 disability. 65.6 Sec. 15. Minnesota Statutes 2000, section 462A.07, 65.7 subdivision 12, is amended to read: 65.8 Subd. 12. [USE OF OTHER AGENCIES.] It may delegate, use or 65.9 employ any federal, state, regional or local public or private 65.10 agency or organization, including organizations of physically 65.11 handicapped persons, upon terms it deems necessary or desirable, 65.12 to assist in the exercise of any of the powers grantedin65.13sections 462A.01 to 462A.24by this chapter and to carry out the 65.14 objectives ofsections 462A.01 to 462A.24this chapter and may 65.15 pay for the services from the housing development fund. 65.16 Sec. 16. Minnesota Statutes 2000, section 462A.073, 65.17 subdivision 1, is amended to read: 65.18 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 65.19 section, the following terms have the meanings given them. 65.20 (b) "Existing housing" means single-family housing that (i) 65.21 has been previously occupied prior to the first day of the 65.22 origination period; or (ii) has been available for occupancy for 65.23 at least 12 months but has not been previously occupied. 65.24 (c)"Metropolitan area" means the metropolitan area as65.25defined in section 473.121, subdivision 2.65.26(d)"New housing" means single-family housing that has not 65.27 been previously occupied. 65.28(e)(d) "Origination period" means the period that loans 65.29 financed with the proceeds of qualified mortgage revenue bonds 65.30 are available for the purchase of single-family housing. The 65.31 origination period begins when financing actually becomes 65.32 available to the borrowers for loans. 65.33(f)(e) "Redevelopment area" means a compact and contiguous 65.34 area within which the city finds by resolution that 70 percent 65.35 of the parcels are occupied by buildings, streets, utilities, or 65.36 other improvements and more than 25 percent of the buildings, 66.1 not including outbuildings, are structurally substandard to a 66.2 degree requiring substantial renovation or clearance. 66.3(g)(f) "Single-family housing" means dwelling units 66.4 eligible to be financed from the proceeds of qualified mortgage 66.5 revenue bonds under federal law. 66.6(h)(g) "Structurally substandard" means containing defects 66.7 in structural elements or a combination of deficiencies in 66.8 essential utilities and facilities, light, ventilation, fire 66.9 protection including adequate egress, layout and condition of 66.10 interior partitions, or similar factors, which defects or 66.11 deficiencies are of sufficient total significance to justify 66.12 substantial renovation or clearance. 66.13 Sec. 17. Minnesota Statutes 2000, section 462A.15, is 66.14 amended to read: 66.15 462A.15 [STATE PLEDGE AGAINST IMPAIRMENT OF CONTRACTS.] 66.16 The state pledges and agrees with the holders of any notes 66.17 or bonds issued undersections 462A.01 to 462A.24this chapter, 66.18 that the state will not limit or alter the rights vested in the 66.19 agency to fulfill the terms of any agreements made with the 66.20 holders thereof, or in any way impair the rights and remedies of 66.21 the holders until the notes or bonds, together with the interest 66.22 thereon, with interest on any unpaid installments of interest, 66.23 and all costs and expenses in connection with any action or 66.24 proceeding by or on behalf of such holders, are fully met and 66.25 discharged. The agency is authorized to include this pledge and 66.26 agreement of the state in any agreement with the holders of such 66.27 notes or bonds. 66.28 Sec. 18. Minnesota Statutes 2000, section 462A.17, 66.29 subdivision 3, is amended to read: 66.30 Subd. 3. [RAMSEY COUNTY VENUE; NOTICE OF PRINCIPAL DUE.] 66.31 The venue of any action or proceedings brought by the trustees 66.32 undersections 462A.01 to 462A.24this chapter, shall be in 66.33 Ramsey county. Before declaring the principal of notes or bonds 66.34 due and payable, the trustee shall first give 30 days' notice in 66.35 writing to the governor, to the agency and to the state 66.36 treasurer. 67.1 Sec. 19. Minnesota Statutes 2000, section 462A.20, 67.2 subdivision 3, is amended to read: 67.3 Subd. 3. [SEPARATE ACCOUNTS; TRANSFERS; LIMITS.] Whenever 67.4 any money is appropriated by the state to the agency solely for 67.5 a specified purpose or purposes, the agency shall establish a 67.6 separate bookkeeping account or accounts in the housing 67.7 development fund to record the receipt and disbursement of such 67.8 money and of the income, gain, and loss from the investment and 67.9 reinvestment thereof. Earnings from investment of any amounts 67.10 appropriated by the state to the agency for a specified purpose 67.11 or purposes may be aggregated. The costs and expenses necessary 67.12 and incidental to the development and operation of all programs 67.13 funded by state appropriations may be paid from the aggregated 67.14 earnings from investments prior to periodic distributions of 67.15 earnings to separate accounts to be used for the same purpose as 67.16 the respective original appropriation. The agency may transfer 67.17 unencumbered balances from one appropriated account to another, 67.18 provided that no money appropriated for the purpose of agency 67.19 loan programs may be transferred to an account to be used for 67.20 making grants, except that money appropriated for the purpose of 67.21 section 462A.05, subdivision 14a, may be transferred for the 67.22 purpose of section 462A.05, subdivision 15a. 67.23 Sec. 20. [462A.2035] [MANUFACTURED HOME PARK REDEVELOPMENT 67.24 PROGRAM.] 67.25 Subdivision 1. [ESTABLISHMENT.] The agency shall establish 67.26 a manufactured home park redevelopment program for the purpose 67.27 of making manufactured home park redevelopment grants or loans 67.28 to cities, counties, or community action programs. Cities, 67.29 counties, and community action programs may use grants and loans 67.30 under this program to: 67.31 (1) provide current residents of manufactured home parks 67.32 with buy-out assistance not to exceed $4,000 per home with 67.33 preference given to older manufactured homes; 67.34 (2) provide down payment assistance for the purchase of new 67.35 and preowned manufactured homes that comply with the current 67.36 version of the State Building Code in effect at the time of the 68.1 sale, not to exceed $10,000 per home; and 68.2 (3) make improvements in manufactured home parks as 68.3 requested by the grant recipient. 68.4 Subd. 2. [ELIGIBILITY REQUIREMENTS.] Households assisted 68.5 under this section must have an annual household income at or 68.6 below 80 percent of the area median household income. Cities, 68.7 counties, or community action programs receiving funds under the 68.8 program must give preference to households at or below 50 68.9 percent of the area median household income. Participation in 68.10 the program is voluntary and no park resident shall be required 68.11 to participate. The agency shall attempt to make grants and 68.12 loans in approximately equal amounts to applicants outside and 68.13 within the metropolitan area. 68.14 Sec. 21. Minnesota Statutes 2000, section 462A.204, 68.15 subdivision 3, is amended to read: 68.16 Subd. 3. [SET ASIDE.] At least one grant must be awarded 68.17 in an area located outside of the metropolitan areaas defined68.18in section 473.121, subdivision 2. A county, a group of 68.19 contiguous counties jointly acting together, or a 68.20 community-based nonprofit organization with a sponsoring 68.21 resolution from each of the county boards of the counties 68.22 located within its operating jurisdiction may apply for and 68.23 receive grants for areas located outside the metropolitan area. 68.24 Sec. 22. Minnesota Statutes 2000, section 462A.205, 68.25 subdivision 4, is amended to read: 68.26 Subd. 4. [AMOUNT AND PAYMENT OF RENT ASSISTANCE.] (a) This 68.27 subdivision applies to both the voucher option and the 68.28 project-based voucher option. 68.29 (b) Within the limits of available appropriations, eligible 68.30 families may receive monthly rent assistance for a 60-month 68.31 period starting with the month the family first receives rent 68.32 assistance under this section. The amount of the family's 68.33 portion of the rental payment is equal to at least 30 percent of 68.34 gross income. 68.35 (c) The rent assistance must be paid by the local housing 68.36 organization to the property owner. 69.1 (d) Subject to the limitations in paragraph (e), the amount 69.2 of rent assistance is the difference between the rent and the 69.3 family's portion of the rental payment. 69.4 (e) In no case: 69.5 (1) may the amount of monthly rent assistance be more than 69.6 $250 for housing located within the metropolitan area, as69.7defined in section 473.121, subdivision 2,or more than $200 for 69.8 housing located outside of the metropolitan area; 69.9 (2) may the owner receive more rent for assisted units than 69.10 for comparable unassisted units; nor 69.11 (3) may the amount of monthly rent assistance be more than 69.12 the difference between the family's portion of the rental 69.13 payment and the fair market rent for the unit as determined by 69.14 the Department of Housing and Urban Development. 69.15 Sec. 23. Minnesota Statutes 2000, section 462A.205, 69.16 subdivision 4a, is amended to read: 69.17 Subd. 4a. [ADDITIONAL AUTHORIZED EXPENSES.] In addition to 69.18 the monthly rent assistance authorized under subdivision 4, rent 69.19 assistance may include up to $200 for a security deposit for 69.20 housing located outside the metropolitan area, as defined in69.21section 473.121, subdivision 2,and up to $250 for a security 69.22 deposit for housing located within the metropolitan area. 69.23 Sec. 24. Minnesota Statutes 2000, section 462A.2091, 69.24 subdivision 3, is amended to read: 69.25 Subd. 3. [ELIGIBLE PROPERTY.] Contracts for deed eligible 69.26 for refinancing with guarantee fund assistance must be for the 69.27 purchase of an owner-occupied single-family or duplex 69.28 structure. In a city of the first class in the metropolitan 69.29 area,as defined in section 473.121, subdivision 2,eligible 69.30 properties must be located in an area in which at least one 69.31 census tract meets at least three of the following four criteria: 69.32 (1) at least 70 percent of the housing structures were 69.33 built before 1960; 69.34 (2) at least 60 percent of the single-family housing is 69.35 owner-occupied; 69.36 (3) the median market value of the area's owner-occupied 70.1 housing, as recorded in the most recent federal decennial 70.2 census, is not more than 100 percent of the purchase price limit 70.3 for existing homes eligible for purchase in the area under the 70.4 agency's home mortgage loan program; and 70.5 (4) between 1980 and 1990, the rate of owner occupancy of 70.6 residential properties in the area declined by at least five 70.7 percent, or at least 80 percent of the residential properties in 70.8 the area are rental properties. 70.9 The area must include eight blocks in any direction from 70.10 the census tract. Priority must be given for property located 70.11 in an area that meets all four criteria. 70.12 Sec. 25. Minnesota Statutes 2000, section 462A.2093, 70.13 subdivision 1, is amended to read: 70.14 Subdivision 1. [DEFINITIONS.] For purposes of this 70.15 section, the following terms have the meanings given them in 70.16 this subdivision. 70.17 (a) "Municipality" means a town or a statutory or home rule 70.18 city. 70.19 (b) "Nonmetropolitan" means the area of the state outside 70.20 of the metropolitan areadefined in section 473.121, subdivision70.212. 70.22 (c) "Inclusionary housing development" means a new 70.23 construction development including owner-occupied or rental 70.24 housing, or a combination of both, with a variety of prices and 70.25 designs which serve families with a range of incomes and housing 70.26 needs. 70.27 Sec. 26. Minnesota Statutes 2000, section 462A.2097, is 70.28 amended to read: 70.29 462A.2097 [RENTAL HOUSING.] 70.30 The agency may establish a tenant-based or project-based 70.31 rental housing assistance program for persons of low income or 70.32 for persons with a mental illness or families that include an 70.33 adult family member with a mental illness. Rental assistance 70.34 may be in the form of direct rental subsidies for housing for 70.35 persons or families with incomes, at the time of initial 70.36 occupancy, of up to 50 percent of the area median income as 71.1 determined by the United States Department of Housing and Urban 71.2 Development, adjusted for families of five or more. Housing for 71.3 the mentally ill must be operated in coordination with social 71.4 service providers who provide services requested by tenants. 71.5 Direct rental subsidies must be administered by the agency for 71.6 the benefit of eligible tenants. Financial assistance provided 71.7 under this section must be in the form of vendor payments 71.8 whenever possible. 71.9 Sec. 27. Minnesota Statutes 2000, section 462A.21, 71.10 subdivision 5, is amended to read: 71.11 Subd. 5. [OTHER AGENCY PURPOSES.] It may expend moneys in 71.12 the fund, not otherwise appropriated, for such other agency 71.13 purposes as previously enumerated insections 462A.01 to 462A.2471.14 this chapter as the agency in its discretion shall determine and 71.15 provide. 71.16 Sec. 28. Minnesota Statutes 2000, section 462A.21, 71.17 subdivision 10, is amended to read: 71.18 Subd. 10. [CERTAIN APPROPRIATIONS AVAILABLE UNTIL 71.19 EXPENDED.] Notwithstanding the repeal of section 462A.26 and the 71.20 provisions of section 16A.28 or any other law relating to lapse 71.21 of an appropriation, the appropriations made to the agency by 71.22 the legislature in 1976 and subsequent years are available until 71.23 fully expended, and the allocations provided in the 71.24 appropriations remain in effect. Earnings from investments of 71.25 any of the amounts appropriated to the agency are appropriated 71.26 to the agency to be used for the same purposes as the respective 71.27 original appropriations, after payment of the costs and expenses 71.28 necessary and incidental to the development and operation of the 71.29 programs authorized under this chapter. 71.30 Sec. 29. Minnesota Statutes 2000, section 462A.21, is 71.31 amended by adding a subdivision to read: 71.32 Subd. 28. [FAMILY STABILIZATION DEMONSTRATION 71.33 PROJECT.] The agency may spend money for the purposes of section 71.34 462A.205 and may pay costs and expenses necessary and incidental 71.35 to the development and operation of the project. 71.36 Sec. 30. Minnesota Statutes 2000, section 462A.21, is 72.1 amended by adding a subdivision to read: 72.2 Subd. 29. [DISASTER RELIEF CONTINGENCY FUND.] It may 72.3 establish a disaster relief contingency fund to provide loans or 72.4 grants, on terms and conditions it deems advisable, to assist 72.5 with the rehabilitation or replacement of housing damaged as a 72.6 result of a natural disaster in areas of the state designated 72.7 under presidential declarations of a major disaster. It may 72.8 transfer to the disaster relief contingency fund any repayments 72.9 of grants or loans made from appropriations specifically for 72.10 assistance after natural disasters in areas of the state 72.11 designated under a presidential declaration of a major disaster. 72.12 Sec. 31. Minnesota Statutes 2000, section 462A.21, is 72.13 amended by adding a subdivision to read: 72.14 Subd. 30. [MANUFACTURED HOME PARK REDEVELOPMENT.] The 72.15 agency may spend money for the purposes of section 462A.2035 and 72.16 may pay costs and expenses necessary and incidental to the 72.17 development and operation of the program. 72.18 Sec. 32. Minnesota Statutes 2000, section 462A.222, 72.19 subdivision 1a, is amended to read: 72.20 Subd. 1a. [DETERMINATION OF REGIONAL CREDIT POOLS.] The 72.21 agency shall divide the annual per capita amount used in 72.22 determining the state ceiling for low-income housing tax credits 72.23 provided under section 42 of the Internal Revenue Code of 1986, 72.24 as amended, into a metropolitan pool and a greater Minnesota 72.25 pool. The metropolitan pool shall serve the metropolitan area 72.26as defined in section 473.121, subdivision 2. The greater 72.27 Minnesota pool shall serve the remaining counties of the state. 72.28 The percentage of the annual per capita amount allotted to each 72.29 pool must be determined as follows: 72.30 (a) The percentage set-aside for projects involving a 72.31 qualified nonprofit organization as provided in section 42 of 72.32 the Internal Revenue Code of 1986, as amended, must be deducted 72.33 from the annual per capita amount used in determining the state 72.34 ceiling. 72.35 (b) Of the remaining amount, the metropolitan pool must be 72.36 allotted a percentage equal to the metropolitan counties' 73.1 percentage of the total number of state recipients of the 73.2 Minnesota family investment program, general assistance, 73.3 Minnesota supplemental aid, and supplemental security income in 73.4 the state, as reported annually by the department of human 73.5 services. The greater Minnesota pool must be allotted the 73.6 amount remaining after the metropolitan pool's percentage has 73.7 been allotted. 73.8 The set-aside for qualified nonprofit organizations must be 73.9 divided between the two regional pools in the same percentage as 73.10 determined for the credit amounts above. 73.11 Sec. 33. Minnesota Statutes 2000, section 462A.24, is 73.12 amended to read: 73.13 462A.24 [CONSTRUCTION.] 73.14Sections 462A.01 to 462A.24 areThis chapter is necessary 73.15 for the welfare of the state of Minnesota and its inhabitants; 73.16 therefore, it shall be liberally construed to effect its purpose. 73.17 Sec. 34. Minnesota Statutes 2000, section 462A.33, 73.18 subdivision 2, is amended to read: 73.19 Subd. 2. [ELIGIBLE RECIPIENTS.] Challenge grants or loans 73.20 may be made to a city, a private developer, a nonprofit 73.21 organization, or the owner of the housing, including 73.22 individuals. For the purpose of this section, "city" has the 73.23 meaning given it in section 462A.03, subdivision 21. Preference 73.24 shall be given to challenge grants or loans for home ownership. 73.25 To the extent practicable, grants and loans shall be made so 73.26 that an approximately equal number of housing units are financed 73.27 in the metropolitan area, as defined in section 473.121,73.28subdivision 2,and in the nonmetropolitan area. 73.29 Sec. 35. [462A.34] [VISITABILITY REQUIREMENT.] 73.30 All new construction of single-family homes, duplexes, 73.31 triplexes, and multilevel townhouses that are financed in whole 73.32 or in part by the agency must incorporate basic visitability 73.33 access into their design and construction. For the purpose of 73.34 this section, "visitability" means designing a dwelling so that 73.35 people with mobility impairments may enter and comfortably stay 73.36 for a duration. The specific design elements include one 74.1 no-step entrance, 32-inch clear doorways throughout the 74.2 dwelling, and a one-half bathroom on the main level. The agency 74.3 may waive the one-half bathroom requirement if it reduces 74.4 affordability for the targeted population of the agency program 74.5 from which it is funded. The agency may waive the no-step 74.6 entrance requirement if site conditions make the requirement 74.7 impractical or if it reduces affordability for the targeted 74.8 population of the agency program from which it is funded. This 74.9 section does not apply to owner-occupied housing financed by the 74.10 agency through a mortgage program unless the agency has provided 74.11 appropriated funds to finance the construction of the new 74.12 owner-occupied housing. 74.13 Sec. 36. [MANUFACTURED HOME PARK REDEVELOPMENT REPORT.] 74.14 The housing finance agency shall include in its annual 74.15 program assessment the program created by Minnesota Statutes, 74.16 section 462A.2035. 74.17 Sec. 37. [STUDY.] 74.18 The housing finance agency, in conjunction with the office 74.19 of strategic and long-range planning, shall study inclusionary 74.20 housing statutes and ordinances throughout the country and shall 74.21 report to the legislature by January 15, 2002, on the 74.22 implementation of statutes and ordinances on inclusionary 74.23 housing, including: 74.24 (1) a description of the various inclusionary housing 74.25 statutes and ordinances; 74.26 (2) the number of housing units, both ownership and rental, 74.27 developed under inclusionary statutes and ordinances; 74.28 (3) the level of affordability achieved in the housing 74.29 developed under inclusionary statutes and ordinances; 74.30 (4) the demographic characteristics of the households 74.31 residing in the affordable units developed under inclusionary 74.32 housing statutes and ordinances, if available; and 74.33 (5) the amount of public funds, if any, invested in the 74.34 affordable units developed under inclusionary housing statutes 74.35 and ordinances. 74.36 The report shall make recommendations regarding approaches 75.1 to encouraging residential developments that include housing for 75.2 a range of incomes. In developing recommendations, the state 75.3 agencies must consult with representatives of builders, 75.4 developers, realtors, municipalities, local zoning officials, 75.5 housing advocates, and local planning officials. 75.6 Sec. 38. Laws 2000, chapter 488, article 8, section 2, 75.7 subdivision 6, is amended to read: 75.8 Subd. 6. Economic Support Grants 75.9 30,509,000 25,368,000 75.10 The amounts that may be spent from this 75.11 appropriation for each purpose are as 75.12 follows: 75.13 [ASSISTANCE TO FAMILIES GRANTS TANF 75.14 FORECAST ADJUSTMENT.] The federal 75.15 Temporary Assistance to Needy Families 75.16 (TANF) block grant fund appropriated to 75.17 the commissioner of human services in 75.18 Laws 1999, chapter 245, article 1, 75.19 section 2, subdivision 10, for MFIP 75.20 cash grants are reduced by $37,513,000 75.21 in fiscal year 2000 and $30,217,000 in 75.22 fiscal year 2001. 75.23 [FEDERAL TANF FUNDS.] (1) In addition 75.24 to the Federal Temporary Assistance for 75.25 Needy Families (TANF) block grant funds 75.26 appropriated to the commissioner of 75.27 human services in Laws 1999, chapter 75.28 245, article 1, section 2, subdivision 75.29 10, federal TANF funds are appropriated 75.30 to the commissioner in amounts up to 75.31 $20,000,000 in fiscal year 2000 and 75.32 $80,440,000 in fiscal year 2001. In 75.33 addition to these funds, the 75.34 commissioner may draw or transfer any 75.35 other appropriations of federal TANF 75.36 funds or transfers of federal TANF 75.37 funds that are enacted into state law. 75.38 (2) Of the amounts in clause (1), 75.39 $19,680,000 in fiscal year 2001 is for 75.40 the local intervention grants program 75.41 under Minnesota Statutes, section 75.42 256J.625 and related grant programs and 75.43 shall be expended as follows: 75.44 (a) $500,000 in fiscal year 2001 is for 75.45 a grant to the Southeast Asian MFIP 75.46 services collaborative to replicate in 75.47 a second location an existing model of 75.48 an intensive intervention transitional 75.49 employment training project which 75.50 serves TANF-eligible recipients and 75.51 which moves refugee and immigrant 75.52 welfare recipients unto unsubsidized 75.53 employment and leads to economic 75.54 self-sufficiency. This is a one-time 75.55 appropriation. 75.56 (b) $500,000 in fiscal year 2001 is for 75.57 nontraditional career assistance and 76.1 training programs under Minnesota 76.2 Statutes, section 256K.30, subdivision 76.3 4. This is a one-time appropriation. 76.4 (c) $18,680,000 is for local 76.5 intervention grants for 76.6 self-sufficiency program under 76.7 Minnesota Statutes, section 256J.625. 76.8 For fiscal years 2002 and 2003 the 76.9 commissioner of finance shall ensure 76.10 that the base level funding for the 76.11 local intervention grants program is 76.12 $27,180,000 each year. 76.13 (3) Of the amounts in clause (2), 76.14 paragraph (c) for local intervention 76.15 grants, $7,000,000 in fiscal year 2001 76.16 shall be transferred to the 76.17 commissioner of health for distribution 76.18 to county boards according to the 76.19 formula in Minnesota Statutes, section 76.20 256J.625, subdivision 3, to be used by 76.21 county public health boards to serve 76.22 families with incomes at or below 200 76.23 percent of the federal poverty 76.24 guidelines, in the manner specified by 76.25 Minnesota Statutes, section 145A.16, 76.26 subdivision 3, clauses (2) through 76.27 (6). Training, evaluation and 76.28 technical assistance shall be provided 76.29 in accordance with Minnesota Statutes, 76.30 section 145A.16, subdivisions 5 to 7. 76.31 For fiscal years 2002 and 2003 the 76.32 commissioner of finance shall ensure 76.33 that the base level funding for this 76.34 activity is $7,000,000 each year. 76.35 (4) Of the amounts in clause (1), 76.36 $250,000 in fiscal year 2001 is 76.37 appropriated to the commissioner to 76.38 contract with the board of trustees of 76.39 the Minnesota state colleges and 76.40 universities to provide tuition waivers 76.41 to employees of health care and human 76.42 services providers located in the state 76.43 that are members of qualifying 76.44 consortia operating under Minnesota 76.45 Statutes, sections 116L.10 to 116L.15. 76.46 (5) Of the amounts in clause (1), 76.47 $320,000 in fiscal year 2001 is for 76.48 training job counselors about the MFIP 76.49 program. For fiscal years 2002 and 76.50 2003 the commissioner of finance shall 76.51 ensure that the base level funding for 76.52 employment services includes $320,000 76.53 each year for this activity. The 76.54 appropriations in this clause shall not 76.55 become part of the base for the 76.56 2004-2005 biennium. 76.57 (6) Of the amounts in clause (1), 76.58 $1,000,000 in fiscal year 2001 is for 76.59 out-of-wedlock pregnancy prevention 76.60 funds to serve children in 76.61 TANF-eligible families under Minnesota 76.62 Statutes, section 256K.35. For fiscal 76.63 years 2002 and 2003 the commissioner of 76.64 finance shall ensure that the base 76.65 level funding for this program is 76.66 $1,000,000 each year. The 77.1 appropriations in this clause shall not 77.2 become part of the base for the 77.3 2004-2005 biennium. 77.4 (7) Of the amounts in clause (1), 77.5 $1,000,000 in fiscal year 2001 is to 77.6 provide services to TANF-eligible 77.7 families who are participating in the 77.8 supportive housing and managed care 77.9 pilot project under Minnesota Statutes, 77.10 section 256K.25. For fiscal years 2002 77.11 and 2003 the commissioner of finance 77.12 shall ensure that the base level 77.13 funding for this project is $1,000,000 77.14 each year. The appropriations in this 77.15 clause shall not become part of the 77.16 base for this project for the 2004-2005 77.17 biennium. 77.18 [TANF TRANSFER TO SOCIAL SERVICES.] 77.19 $7,500,000 is transferred from the 77.20 state's federal TANF block grant to the 77.21 state's federal Title XX block grant in 77.22 fiscal year 2001 and in fiscal year 77.23 2002, for purposes of increasing 77.24 services for families with children 77.25 whose incomes are at or below 200 77.26 percent of the federal poverty 77.27 guidelines. Notwithstanding section 6, 77.28 this paragraph expires June 30, 2002. 77.29 [TANF MOE.] (a) In order to meet the 77.30 basic maintenance of effort (MOE) 77.31 requirements of the TANF block grant 77.32 specified under United States Code, 77.33 title 42, section 609(a)(7), the 77.34 commissioner may only report nonfederal 77.35 money expended for allowable activities 77.36 listed in the following clauses as TANF 77.37 MOE expenditures: 77.38 (1) MFIP cash and food assistance 77.39 benefits under Minnesota Statutes, 77.40 chapter 256J; 77.41 (2) the child care assistance programs 77.42 under Minnesota Statutes, sections 77.43 119B.03 and 119B.05, and county child 77.44 care administrative costs under 77.45 Minnesota Statutes, section 119B.15; 77.46 (3) state and county MFIP 77.47 administrative costs under Minnesota 77.48 Statutes, chapters 256J and 256K; 77.49 (4) state, county, and tribal MFIP 77.50 employment services under Minnesota 77.51 Statutes, chapters 256J and 256K; and 77.52 (5) expenditures made on behalf of 77.53 noncitizen MFIP recipients who qualify 77.54 for the medical assistance without 77.55 federal financial participation program 77.56 under Minnesota Statutes, section 77.57 256B.06, subdivision 4, paragraphs (d), 77.58 (e), and (j). 77.59 (b) The commissioner shall ensure that 77.60 sufficient qualified nonfederal 77.61 expenditures are made each year to meet 77.62 the state's TANF MOE requirements. For 78.1 the activities listed in paragraph (a), 78.2 clauses (2) to (6), the commissioner 78.3 may only report expenditures that are 78.4 excluded from the definition of 78.5 assistance under Code of Federal 78.6 Regulations, title 45, section 260.31. 78.7 If nonfederal expenditures for the 78.8 programs and purposes listed in 78.9 paragraph (a) are insufficient to meet 78.10 the state's TANF MOE requirements, the 78.11 commissioner shall recommend additional 78.12 allowable sources of nonfederal 78.13 expenditures to the legislature, if the 78.14 legislature is or will be in session to 78.15 take action to specify additional 78.16 sources of nonfederal expenditures for 78.17 TANF MOE before a federal penalty is 78.18 imposed. The commissioner shall 78.19 otherwise provide notice to the 78.20 legislative commission on planning and 78.21 fiscal policy under paragraph (d). 78.22 (c) If the commissioner uses authority 78.23 granted under Laws 1999, chapter 245, 78.24 article 1, section 10, or similar 78.25 authority granted by a subsequent 78.26 legislature, to meet the state's TANF 78.27 MOE requirements in a reporting period, 78.28 the commissioner shall inform the 78.29 chairs of the appropriate legislative 78.30 committees about all transfers made 78.31 under that authority for this purpose. 78.32 (d) If the commissioner determines that 78.33 nonfederal expenditures for the 78.34 programs under Minnesota Statutes, 78.35 section 256J.025, are insufficient to 78.36 meet TANF MOE expenditure requirements, 78.37 and if the legislature is not or will 78.38 not be in session to take timely action 78.39 to avoid a federal penalty, the 78.40 commissioner may report nonfederal 78.41 expenditures from other allowable 78.42 sources as TANF MOE expenditures after 78.43 the requirements of this paragraph are 78.44 met. 78.45 The commissioner may report nonfederal 78.46 expenditures in addition to those 78.47 specified under paragraph (a) as 78.48 nonfederal TANF MOE expenditures, but 78.49 only ten days after the commissioner of 78.50 finance has first submitted the 78.51 commissioner's recommendations for 78.52 additional allowable sources of 78.53 nonfederal TANF MOE expenditures to the 78.54 members of the legislative commission 78.55 on planning and fiscal policy for their 78.56 review. 78.57 (e) The commissioner of finance shall 78.58 not incorporate any changes in federal 78.59 TANF expenditures or nonfederal 78.60 expenditures for TANF MOE that may 78.61 result from reporting additional 78.62 allowable sources of nonfederal TANF 78.63 MOE expenditures under the interim 78.64 procedures in paragraph (d) into the 78.65 February or November forecasts required 78.66 under Minnesota Statutes, section 78.67 16A.103, unless the commissioner of 79.1 finance has approved the additional 79.2 sources of expenditures under paragraph 79.3 (d). 79.4 (f) The provisions of paragraphs (a) to 79.5 (e) supersede any contrary provisions 79.6 in Laws 1999, chapter 245, article 1, 79.7 section 2, subdivision 10. 79.8 (g) The provisions of Minnesota 79.9 Statutes, section 256.011, subdivision 79.10 3, which require that federal grants or 79.11 aids secured or obtained under that 79.12 subdivision be used to reduce any 79.13 direct appropriations provided by law 79.14 do not apply if the grants or aids are 79.15 federal TANF funds. 79.16 (h) Notwithstanding section 6 of this 79.17 article, paragraphs (a) to (g) expire 79.18 June 30, 2003. 79.19 (i) Paragraphs (a) to (h) are effective 79.20 the day following final enactment. 79.21 (a) Assistance to Families Grants 79.22 9,628,000 (2,305,000) 79.23 (b) Work Grants 79.24 -0- (250,000) 79.25 (c) AFDC and Other Assistance 79.26 20,000,000 30,734,000 79.27 [TRANSFERS TO MINNESOTA HOUSING FINANCE 79.28 AGENCY.] (a) By June 30, 2001, the 79.29 commissioner shall transfer $50,000,000 79.30 of the general funds appropriated under 79.31 this paragraph to the Minnesota housing 79.32 finance agency for transfer to the 79.33 housing development fund. The program 79.34 funded by this transfer shall be known 79.35 as the "Bruce F. Vento Year 2000 79.36 Affordable Housing Program." Up to 79.37 $15,000,000 may be transferred in 79.38 fiscal year 2000. 79.39 (b) Of the funds transferred in 79.40 paragraph (a), $5,000,000 in fiscal 79.41 year 2001 and $15,000,000 in fiscal 79.42 year 2002 is for a loan to Habitat for 79.43 Humanity of Minnesota, Inc. The loan 79.44 shall be an interest-free deferred 79.45 loan. The loan shall become due and 79.46 payable in the event and to the extent 79.47 that Habitat for Humanity of Minnesota, 79.48 Inc. does not invest repayments and 79.49 prepayment of mortgage loans financed 79.50 with this appropriation in new 79.51 mortgages for additional homebuyers 79.52 through Habitat for Humanity of 79.53 Minnesota, Inc. To the extent 79.54 practicable, funding must be allocated 79.55 to Habitat for Humanity chapters on the 79.56 basis of the number of MFIP households 79.57 residing within a chapter's service 79.58 area compared to the statewide total of 79.59 MFIP households and on the basis of a 80.1 chapter's capacity. 80.2 (c) Of the funds transferred in 80.3 paragraph (a), $15,000,000 in fiscal 80.4 year 2001 and $15,000,000 in fiscal 80.5 year 2002 is for the affordable rental 80.6 investment fund program under Minnesota 80.7 Statutes, section 462A.21, subdivision 80.8 8b. To the extent practicable, the 80.9 number of units financed with the 80.10 appropriation under this paragraph 80.11 within a city, county, or region shall 80.12 reflect the number of MFIP households 80.13 residing within the city, county, or 80.14 region compared to the statewide total 80.15 of MFIP households. This appropriation 80.16 must be used to finance rental housing 80.17 units that serve families: 80.18 (1) receiving MFIP benefits under 80.19 Minnesota Statutes, section 256J.01, or 80.20 its successor program; and 80.21 (2) who have lost eligibility for MFIP 80.22due to increased income from employment80.23or due to the collection of child or80.24spousal support under part D of title80.25IV of the Social Security Actfor 80.26 reasons other than disqualification 80.27 from MFIP due to fraud. 80.28 Units produced with this appropriation 80.29 must remain affordable for a 30-year 80.30 period. 80.31 In order to coordinate the availability 80.32 of housing developed with the 80.33 appropriation under this paragraph with 80.34 MFIP families in need of affordable 80.35 housing, the commissioner of the 80.36 Minnesota housing finance agency, with 80.37 the assistance of the commissioner of 80.38 human services, shall establish 80.39 cooperative relationships with county 80.40 agencies as defined in Minnesota 80.41 Statutes, section 256J.08, local 80.42 employment and training service 80.43 providers as defined in Minnesota 80.44 Statutes, section 256J.49, local social 80.45 service agencies, or other 80.46 organizations that provide assistance 80.47 to MFIP households. 80.48 The commissioner of the Minnesota 80.49 housing finance agency shall develop 80.50 strategies to promote occupancy of the 80.51 units financed by the appropriation 80.52 under this paragraph by households most 80.53 in need of subsidized housing. The 80.54 strategies shall include provisions 80.55 that encourage households to move into 80.56 homeownership or unsubsidized housing 80.57 as the household secures stable 80.58 employment and achieves 80.59 self-sufficiency. The commissioner of 80.60 the Minnesota housing finance agency 80.61 shall consult with interested parties 80.62 in developing these strategies. 80.63 (d) The commissioner of the Minnesota 80.64 housing finance agency and the 81.1 commissioner of human services shall 81.2 jointly prepare and submit a report to 81.3 the governor and the legislature on the 81.4 results of the funding provided under 81.5 this section. The report shall include: 81.6 (1) information on the number of units 81.7 produced; 81.8 (2) the household size and income of 81.9 the occupants of the units at initial 81.10 occupancy; and 81.11 (3) to the extent the information is 81.12 available, measures related to the 81.13 occupants' attachment to the workforce 81.14 and public assistance usage, and number 81.15 of occupant moves. 81.16 The report must be submitted annually 81.17 beginning January 15, 2003. 81.18 (e) Section 6, sunset of uncodified 81.19 language, does not apply to paragraphs 81.20 (a) to (d). Paragraphs (a) to (d) are 81.21 effective the day following final 81.22 enactment. 81.23 [WORKING FAMILY CREDIT.] (a) On a 81.24 regular basis, the commissioner of 81.25 revenue, with the assistance of the 81.26 commissioner of human services, shall 81.27 calculate the value of the refundable 81.28 portion of the Minnesota working family 81.29 credits provided under Minnesota 81.30 Statutes, section 290.0671, that 81.31 qualifies for federal reimbursement 81.32 from the temporary assistance to needy 81.33 families block grant. The commissioner 81.34 of revenue shall provide the 81.35 commissioner of human services with 81.36 such expenditure records and 81.37 information as are necessary to support 81.38 draws of federal funds. The 81.39 commissioner of human services shall 81.40 reimburse the commissioner of revenue 81.41 for the costs of providing the 81.42 information required by this paragraph. 81.43 (b) Federal TANF funds, as specified in 81.44 this paragraph, are appropriated to the 81.45 commissioner of human services based on 81.46 calculations under paragraph (a) of 81.47 working family tax credit expenditures 81.48 that qualify for reimbursement from the 81.49 TANF block grant for income tax refunds 81.50 payable in federal fiscal years 81.51 beginning October 1, 1999. The draws 81.52 of federal TANF funds shall be made on 81.53 a regular basis based on calculations 81.54 of credit expenditures by the 81.55 commissioner of revenue. Up to the 81.56 following amounts of federal TANF draws 81.57 are appropriated to the commissioner of 81.58 human services to deposit into the 81.59 general fund: in fiscal year 2000, 81.60 $30,957,000; and in fiscal year 2001, 81.61 $33,895,000. 81.62 (d) General Assistance 82.1 557,000 (3,134,000) 82.2 (e) Minnesota Supplemental Aid 82.3 324,000 323,000 82.4 Sec. 39. [REPEALER.] 82.5 Minnesota Statutes 2000, sections 462A.221, subdivision 4; 82.6 and 462A.30, subdivision 2, are repealed. 82.7 ARTICLE 5 82.8 HOUSING PROGRAM CONSOLIDATION 82.9 Section 1. Minnesota Statutes 2000, section 462A.201, 82.10 subdivision 2, is amended to read: 82.11 Subd. 2. [LOW-INCOME HOUSING.] (a) The agency may, in82.12consultation with the advisory committee,use money from the 82.13 housing trust fund account to provide loans or grants for: 82.14 (1) projects for the development, construction, 82.15 acquisition, preservation, and rehabilitation of low-income 82.16 rental and limited equity cooperative housing units, including 82.17 temporary and transitional housing, and homes for ownership; 82.18 (2) the costs of operating rental housing, as determined by 82.19 the agency, that are unique to the operation of low-income 82.20 rental housing or supportive housing; and 82.21 (3) rental assistance, either project-based or tenant-based. 82.22 For purposes of this section, "transitional housing"means82.23housing that is provided for a limited duration not exceeding 2482.24months, except that up to one-third of the residents may live in82.25the housing for up to 36 monthshas the meaning given by the 82.26 United States Department of Housing and Urban Development. 82.27 Loans or grants for residential housing for migrant farmworkers 82.28 may be made under this section.No more than 20 percent of82.29available funds may be used for home ownership projects.82.30 (b)A rental or limited equity cooperative permanent82.31housing project must meet one of the following income tests:82.32(1) at least 75 percent of the rental and cooperative units82.33must be rented to or cooperatively owned by persons and families82.34whose income does not exceed 30 percent of the median family82.35income for the metropolitan area as defined in section 473.121,82.36subdivision 2; or83.1(2) allThe housing trust fund account must be used for the 83.2 benefit of persons and families whose income, at the time of 83.3 initial occupancy, does not exceed 60 percent of median income 83.4 as determined by the United States Department of Housing and 83.5 Urban Development for the metropolitan area. At least 75 83.6 percent of theunits funded byfunds in the housing trust fund 83.7 account must be used for the benefit of persons and families 83.8 whose income, at the time of initial occupancy, does not exceed 83.9 30 percent of the median family income for the metropolitan area 83.10 as defined in section 473.121, subdivision 2. For purposes of 83.11 this section, a household with a housing assistance voucher 83.12 under section 8 of the United States Housing Act of 1937, as 83.13 amended, is deemed to meet the income requirements of this 83.14 section. 83.15 The median family income may be adjusted for families of 83.16 five or more. 83.17 (c)Homes for ownership must be owned or purchased by83.18persons and families whose income does not exceed 50 percent of83.19the metropolitan area median income, adjusted for family size.83.20(d)Rental assistance under this section must be provided 83.21 by governmental units which administer housing assistance 83.22 supplements or by for-profit or nonprofit organizations 83.23 experienced in housing management. Rental assistance shall be 83.24 limited to households whose income at the time of initial 83.25 receipt of rental assistance does not exceed 60 percent of 83.26 median income, as determined by the United States Department of 83.27 Housing and Urban Development for the metropolitan area. 83.28 Priority among comparable applications for tenant-based rental 83.29 assistance will be given to proposals that will serve households 83.30 whose income at the time of initial application for rental 83.31 assistance does not exceed 30 percent of median income, as 83.32 determined by the United States Department of Housing and Urban 83.33 Development for the metropolitan area. Rental assistance must 83.34 be terminated when it is determined that 30 percent of a 83.35 household's monthly income for four consecutive months equals or 83.36 exceeds the market rent for the unit in which the household 84.1 resides plus utilities for which the tenant is responsible. 84.2 Rental assistance may only be used for rental housing units that 84.3 meet the housing maintenance code of the local unit of 84.4 government in which the unit is located, if such a code has been 84.5 adopted, or the housing quality standards adopted by the United 84.6 States Department of Housing and Urban Development, if no local 84.7 housing maintenance code has been adopted. 84.8 (d) In making the loans or grants, the agency shall 84.9 determine the terms and conditions of repayment and the 84.10 appropriate security, if any, should repayment be required. To 84.11 promote the geographic distribution of grants and loans, the 84.12 agency may designate a portion of the grant or loan awards to be 84.13 set aside for projects located in specified congressional 84.14 districts or other geographical regions specified by the 84.15 agency. The agency may adopt rules for awarding grants and 84.16 loans under this subdivision. 84.17 Sec. 2. Minnesota Statutes 2000, section 462A.201, 84.18 subdivision 6, is amended to read: 84.19 Subd. 6. [REPORT.] The agency shall submit a biennial 84.20 report to the legislature and the governorannuallyon the use 84.21 of the housing trust fund account including the number of loans 84.22 and grants made, the number and types of residential units 84.23 assisted through the account, the number of households for whom 84.24 rental assistance payments were provided, and the number of 84.25 residential units assisted through the account that were rented 84.26 to or cooperatively owned by persons or families at or below 30 84.27 percent of the median family income of the metropolitan area at 84.28 the time of initial occupancy. 84.29 Sec. 3. Minnesota Statutes 2000, section 462A.209, is 84.30 amended to read: 84.31 462A.209 [HOME OWNERSHIPASSISTANCEEDUCATION, COUNSELING, 84.32 AND TRAINING PROGRAM.] 84.33 Subdivision 1. [FULL CYCLE HOME OWNERSHIP SERVICES.] 84.34 Thefull cycle home ownership serviceshomeownership education, 84.35 counseling, and training program shall be used tofundprovide 84.36 funding to community-based nonprofit organizations and political 85.1 subdivisionsproviding, building capacity to provide, or85.2supporting full cycle lending forto assist them in building the 85.3 capacity to provide and providing full cycle home ownership 85.4 services to low and moderate income home buyers and homeowners, 85.5 including seniors. The purpose of the program is to encourage 85.6 private investment in affordable housing and collaboration of 85.7 nonprofit organizations and political subdivisions with each 85.8 other and private lenders in providing full cyclelending85.9 homeownership services. 85.10 Subd. 2. [DEFINITION.] "Full cycle home ownership 85.11 services" means supporting eligible home buyers andownershome 85.12 owners through all phases of purchasing and keeping a home, by 85.13 providing prepurchase home buyer education,; prepurchase 85.14 counseling and credit repair,; prepurchase and postpurchase 85.15 property inspection and technical and financial assistance to 85.16 buyers in rehabilitating the home,; postpurchase counseling, 85.17 including home equity conversion loan counseling, mortgage 85.18 default counseling, postpurchase assistance with home 85.19 maintenance, entry cost assistance,; foreclosure prevention and 85.20 assistance; and access to flexible loan products. 85.21 Subd. 3. [ELIGIBILITY.] The agency shall establish 85.22 eligibility criteria for nonprofit organizations and political 85.23 subdivisions to receive funding under this section. The 85.24 eligibility criteria must require the nonprofit organization or 85.25 political subdivision to provide, to build capacity to provide, 85.26 or support full cycle home ownership services for eligible home 85.27 buyers. The agency may fund a nonprofit organization or 85.28 political subdivision that will provide full cycle home 85.29 ownership services by coordinating with one or more other 85.30 organizations that will provide specific components of full 85.31 cycle home ownership services. The agency may make exceptions 85.32 to providing all components of full cycle lending if justified 85.33 by the application. If there are more applicants requesting 85.34 funding than there are funds available, the agency shall award 85.35 the funds on a competitive basis and also assure an equitable 85.36 geographic distribution of the available funds. The eligibility 86.1 criteria must require the nonprofit organization or political 86.2 subdivision to have a demonstrated involvement in the local 86.3 community and to target the housing affordability needs of the 86.4 local community or to have demonstrated experience with 86.5 counseling older persons on housing, or both. The eligibility 86.6 criteria may include a requirement for specific training 86.7 provided by designated state or national entities. The agency 86.8 may also include an eligibility criteria that requires counselor 86.9 certification or organizational accreditation by specified 86.10 organizations which provide certification or accreditation 86.11 services. Partnerships and collaboration with innovative, grass 86.12 roots, or community-based initiatives shall be encouraged. The 86.13 agency shall give priority to nonprofit organizations and 86.14 political subdivisions thatprovide matching fundshave funding 86.15 from other sources for full cycle homeownership services. 86.16 Applicants for funds under section 462A.057 may also apply funds 86.17 under this program. 86.18 Subd. 4. [ENTRY COST HOME OWNERSHIP OPPORTUNITY PROGRAM.] 86.19 The agency may establish an entry cost home ownership 86.20 opportunity program, on terms and conditions it deems advisable, 86.21 to assist individuals with downpayment and closing costs to 86.22 finance the purchase of a home. 86.23 Subd. 5. [SELECTION CRITERIA.] The agency shall take the 86.24 following criteria into consideration when determining whether 86.25 to award funds to an eligible organization: 86.26 (1) the extent to which there is an equitable geographic 86.27 distribution of funds among program applicants; 86.28 (2) the prior experience and documented familiarity of the 86.29 organization, as may be applicable, in establishing, 86.30 administering, and maintaining some or all of the components of 86.31 full cycle homeownership services; 86.32 (3) the reasonableness of the proposed budget in meeting 86.33 the program objectives, a demonstrated ability to leverage 86.34 program money with other sources of funding, and the extent of 86.35 the leveraging of other sources of funding; 86.36 (4) the extent to which efforts are targeted towards 87.1 households with incomes that do not exceed 80 percent of the 87.2 state or area median income or underserved segments of the local 87.3 population; and 87.4 (5) the extent to which program funding does not duplicate 87.5 other efforts currently available in the local area and will 87.6 enable, expand, or enhance existing activities. 87.7 Subd. 6. [DESIGNATED AREAS.] A program administrator must 87.8 designate specific areas, communities, or neighborhoods within 87.9 which the program is proposed to be operated for the purpose of 87.10 focusing resources. 87.11 Subd. 7. [ASSISTANCE TO PREVENT MORTGAGE FORECLOSURES.] (a) 87.12 Program assistance and counseling to prevent mortgage 87.13 foreclosures or cancellations of contract for deeds includes 87.14 general information, screening, assessment, referral services, 87.15 case management, advocacy, and financial assistance to borrowers 87.16 who are delinquent on mortgage or contract for deed payments. 87.17 (b) Not more than one-half of funds awarded for foreclosure 87.18 prevention and assistance activities may be used for mortgage or 87.19 financial counseling services. 87.20 (c) Financial assistance consists of payments for 87.21 delinquent mortgage or contract for deed payments, future 87.22 mortgage or contract for deed payments for a period of up to six 87.23 months, property taxes, assessments, utilities, insurance, home 87.24 improvement repairs, future rent payments for a period of up to 87.25 six months, and relocation costs if necessary, or other costs 87.26 necessary to prevent foreclosure. 87.27 (d) An individual or family may receive a maximum of $5,500 87.28 of financial assistance to prevent a mortgage foreclosure or the 87.29 cancellation of a contract for deed. 87.30 (e) The agency may require the recipient of financial 87.31 assistance to enter into an agreement with the agency for 87.32 repayment. The repayment agreement for mortgages or contract 87.33 for deed buyers must provide that in the event the property is 87.34 sold, transferred, or otherwise conveyed, or ceases to be the 87.35 recipient's principal place of residence, the recipient shall 87.36 repay all or a portion of the financial assistance. The agency 88.1 may take into consideration financial hardship in determining 88.2 repayment requirements. The repayment agreement may be secured 88.3 by a lien on the property for the benefit of the agency. 88.4 Subd. 8. [REPORT.] By January 10 of every year, each 88.5 nonprofit organization that delivers services under this section 88.6 must submit a report to the agency that summarizes the number of 88.7 people served and the sources and amounts of nonstate money used 88.8 to fund the services. The agency shall annually submit a report 88.9 to the legislature by February 15. 88.10 Sec. 4. Minnesota Statutes 2000, section 462A.21, is 88.11 amended by adding a subdivision to read: 88.12 Subd. 27. [ECONOMIC DEVELOPMENT AND HOUSING CHALLENGE 88.13 PROGRAM.] The agency may spend money for the purposes of section 88.14 462A.33 and may pay the costs and expenses necessary and 88.15 incidental to the development and operation of the program. 88.16 Sec. 5. Minnesota Statutes 2000, section 462A.33, 88.17 subdivision 1, is amended to read: 88.18 Subdivision 1. [CREATED.] The economic development and 88.19 housing challenge program is created to be administered by the 88.20 agency. 88.21 (a) The program shall provide grants or loans for the 88.22 purpose of construction, acquisition, rehabilitation, demolition 88.23 or removal of existing structures, construction financing, 88.24 permanent financing, interest rate reduction, refinancing, and 88.25 gap financing of housing to support economic development and 88.26 redevelopment activities or job creation or job preservation 88.27 within a community or region by meeting locally identified 88.28 housing needs. 88.29 Gap financing is either: 88.30 (i) the difference between the costs of the property, 88.31 including acquisition, demolition, rehabilitation, and 88.32 construction, and the market value of the property upon sale; or 88.33 (ii) the difference between the cost of the property and 88.34 the amount the targeted household can afford for housing, based 88.35 on industry standards and practices. 88.36 (b) Preference for grants and loans shall be given to 89.1 comparable proposals that include regulatory changes or waivers 89.2 that result in identifiable cost avoidance or cost reductions, 89.3 such as increased density, flexibility in site development 89.4 standards, or zoning code requirements. Preference must also be 89.5 given among comparable proposals to proposals for projects that 89.6 are accessible to transportation systems, jobs, schools, and 89.7 other services. 89.8 (c) If a grant or loan is used for demolition or removal of 89.9 existing structures, the cleared land must be used for the 89.10 construction of housing to be owned or rented by persons who 89.11 meet the income limits of this section or for other 89.12 housing-related purposes that primarily benefit the persons 89.13 residing in the adjacent housing. In making selections for 89.14 grants or loans for projects that demolish affordable housing 89.15 units, the agency must review the potential displacement of 89.16 residents and consider the extent to which displacement of 89.17 residents is minimized. 89.18 Sec. 6. Minnesota Statutes 2000, section 462A.33, 89.19 subdivision 2, is amended to read: 89.20 Subd. 2. [ELIGIBLE RECIPIENTS.] Challenge grants or loans 89.21 may be made to a city, a private developer, a nonprofit 89.22 organization, or the owner of the housing, including 89.23 individuals. For the purpose of this section, "city" has the 89.24 meaning given it in section 462A.03, subdivision 21.Preference89.25shall be given to challenge grants or loans for home ownership.89.26 To the extent practicable, grants and loans shall be made so 89.27 that an approximately equal number of housing units are financed 89.28 in the metropolitan area, as defined in section 473.121, 89.29 subdivision 2, and in the nonmetropolitan area. 89.30 Sec. 7. Minnesota Statutes 2000, section 462A.33, 89.31 subdivision 3, is amended to read: 89.32 Subd. 3. [CONTRIBUTION REQUIREMENT; REGULATORY89.33FLEXIBILITY.] Fifty percent of the funds appropriated for this 89.34 section must be used for challenge grants or loans which meet 89.35 the requirements of this subdivision. These challenge grants or 89.36 loans must be used for economically viable homeownership or 90.1 rental housing proposals that: 90.2 (1) include a financial or in-kind contribution from an 90.3 area employer and either a unit of local government or a private 90.4 philanthropic, religious, or charitable organization; and 90.5 (2) address the housing needs of the local work force. 90.6 For the purpose of this subdivision, an employer 90.7 contribution may consist partially or wholly of the premium paid 90.8 for federal housing tax credits.Preference for grants and90.9loans shall be given to comparable proposals that include90.10regulatory changes that result in identifiable cost avoidance or90.11cost reductions, such as increased density, flexibility in site90.12development standards, or zoning code requirements.90.13 Preference for grants and loans shall also be given to 90.14 comparable proposals that include a financial or in-kind 90.15 contribution from a unit of local government, an area employer, 90.16 and a private philanthropic, religious, or charitable 90.17 organization. 90.18 Sec. 8. Minnesota Statutes 2000, section 462A.33, 90.19 subdivision 5, is amended to read: 90.20 Subd. 5. [INCOME LIMITS.] Households served through 90.21 challenge grants or loans must not have incomes at the time of 90.22 initial occupancy that exceed, for homeownership projects, 115 90.23 percent of the greater of state or area median income as 90.24 determined by the United States Department of Housing and Urban 90.25 Development, and for rental housing projects,11580 percent of 90.26 the greater of state or area median income as determined by the 90.27 United States Department of Housing and Urban Development except 90.28 that the housing developed or rehabilitated with challenge fund 90.29 grants or loans must be affordable to the local work force. 90.30 Preference among comparable proposals shall be given those 90.31 that provide housing opportunities for an expanded range of 90.32 household incomes within a community or that provide housing 90.33 opportunities for a wide range of incomes within the development. 90.34 Sec. 9. Minnesota Statutes 2000, section 462A.33, is 90.35 amended by adding a subdivision to read: 90.36 Subd. 8. [LIMITATION ON RETURN.] The limitations on return 91.1 of eligible mortgagors contained in section 462A.03, subdivision 91.2 13, do not apply to loans or grants for rental housing if the 91.3 loans or grants made by the agency, from all sources, are less 91.4 than 50 percent of the total costs, as determined by the agency. 91.5 Sec. 10. [REPEALER.] 91.6 Minnesota Statutes 2000, sections 462A.201, subdivision 4; 91.7 462A.207; 462A.209, subdivision 4; 462A.21, subdivision 17; and 91.8 462A.33, subdivisions 4, 6, and 7, are repealed. 91.9 ARTICLE 6 91.10 PUBLIC SERVICE CONSOLIDATION 91.11 Section 1. [CONSOLIDATION OF STATE REGULATION OF 91.12 COMMERCE.] 91.13 In order to make state government more efficient and 91.14 effective and to accomplish more efficient and effective 91.15 regulation of commerce in Minnesota, all of the powers, rights, 91.16 responsibilities, and duties that remain in the department of 91.17 public service after reorganization order No. 181 are 91.18 transferred to the department of commerce under Minnesota 91.19 Statutes, section 15.039. This transfer is governed in all 91.20 respects by Minnesota Statutes, section 15.039. The department 91.21 of public service is abolished. 91.22 Sec. 2. Minnesota Statutes 2000, section 3C.12, 91.23 subdivision 2, is amended to read: 91.24 Subd. 2. [FREE DISTRIBUTION.] The revisor shall distribute 91.25 without charge copies of each edition of Minnesota Statutes, 91.26 supplements to Minnesota Statutes, and Laws of Minnesota to the 91.27 persons or bodies listed in this subdivision. Before 91.28 distributing the copies, the revisor shall inform these persons 91.29 or bodies of the cost of the publication and the availability of 91.30 statutes and session laws on the Internet, and shall ask whether 91.31 their work requires the full number of copies authorized by this 91.32 subdivision. Unless a smaller number is needed, the revisor 91.33 shall distribute: 91.34 (a) 30 copies to the supreme court; 91.35 (b) 30 copies to the court of appeals; 91.36 (c) one copy to each judge of a district court; 92.1 (d) one copy to the court administrator of each district 92.2 court for use in each courtroom of the district court; 92.3 (e) one copy to each judge, district attorney, clerk of 92.4 court of the United States, and deputy clerk of each division of 92.5 the United States district court in Minnesota; 92.6 (f) 100 copies to the office of the attorney general; 92.7 (g) ten copies each to the governor's office, the 92.8 departments of agriculture,commerce,corrections, children, 92.9 families, and learning, finance, health, transportation, labor 92.10 and industry, economic security, natural resources, public 92.11 safety,public service,human services, revenue, and the 92.12 pollution control agency; 92.13 (h) two copies each to the lieutenant governor and the 92.14 state treasurer; 92.15 (i) 20 copies each to thedepartmentdepartments of 92.16 administration and commerce, state auditor, and legislative 92.17 auditor; 92.18 (j) one copy each to other state departments, agencies, 92.19 boards, and commissions not specifically named in this 92.20 subdivision; 92.21 (k) one copy to each member of the legislature; 92.22 (l) 150 copies for the use of the senate and 200 copies for 92.23 the use of the house of representatives; 92.24 (m) 50 copies to the revisor of statutes from which the 92.25 revisor shall send the appropriate number to the Library of 92.26 Congress for copyright and depository purposes; 92.27 (n) four copies to the secretary of the senate; 92.28 (o) four copies to the chief clerk of the house of 92.29 representatives; 92.30 (p) 100 copies to the state law library; 92.31 (q) 100 copies to the law school of the University of 92.32 Minnesota; 92.33 (r) five copies each to the Minnesota historical society 92.34 and the secretary of state; 92.35 (s) one copy each to the public library of the largest 92.36 municipality of each county if the library is not otherwise 93.1 eligible to receive a free copy under this section or section 93.2 15.18; and 93.3 (t) one copy to each county library maintained pursuant to 93.4 chapter 134, except in counties containing cities of the first 93.5 class. If a county has not established a county library 93.6 pursuant to chapter 134, the copy shall be provided to any 93.7 public library in the county. 93.8 Sec. 3. Minnesota Statutes 2000, section 13.679, is 93.9 amended to read: 93.10 13.679 [DEPARTMENT OF PUBLIC SERVICE DATA.] 93.11 Subdivision 1. [TENANT.] Data collected by thedepartment93.12of public servicecommissioner of commerce that reveals the 93.13 identity of a tenant who makes a complaint regarding energy 93.14 efficiency standards for rental housing are private data on 93.15 individuals. 93.16 Subd. 2. [UTILITY OR TELEPHONE COMPANY EMPLOYEE OR 93.17 CUSTOMER.] (a) The following are private data on individuals: 93.18 data collected by thedepartment of public servicecommissioner 93.19 of commerce or the public utilities commission, including the 93.20 names or any other data that would reveal the identity of either 93.21 an employee or customer of a telephone company or public utility 93.22 who files a complaint or provides information regarding a 93.23 violation or suspected violation by the telephone company or 93.24 public utility of any federal or state law or rule; except this 93.25 data may be released as needed to law enforcement authorities. 93.26 (b) The following are private data on individuals: data 93.27 collected by the commission or thedepartment of public service93.28 commissioner of commerce on individual public utility or 93.29 telephone company customers or prospective customers, including 93.30 copies of tax forms, needed to administer federal or state 93.31 programs that provide relief from telephone company bills, 93.32 public utility bills, or cold weather disconnection. The 93.33 determination of eligibility of the customers or prospective 93.34 customers may be released to public utilities or telephone 93.35 companies to administer the programs. 93.36 Sec. 4. Minnesota Statutes 2000, section 15.01, is amended 94.1 to read: 94.2 15.01 [DEPARTMENTS OF THE STATE.] 94.3 The following agencies are designated as the departments of 94.4 the state government: the department of administration; the 94.5 department of agriculture; the department of commerce; the 94.6 department of corrections; the department of children, families, 94.7 and learning; the department of economic security; the 94.8 department of trade and economic development; the department of 94.9 finance; the department of health; the department of human 94.10 rights; the department of labor and industry; the department of 94.11 military affairs; the department of natural resources; the 94.12 department of employee relations; the department of public 94.13 safety;the department of public service;the department of 94.14 human services; the department of revenue; the department of 94.15 transportation; the department of veterans affairs; and their 94.16 successor departments. 94.17 Sec. 5. Minnesota Statutes 2000, section 15.06, 94.18 subdivision 1, is amended to read: 94.19 Subdivision 1. [APPLICABILITY.] This section applies to 94.20 the following departments or agencies: the departments of 94.21 administration, agriculture, commerce, corrections, economic 94.22 security, children, families, and learning, employee relations, 94.23 trade and economic development, finance, health, human rights, 94.24 labor and industry, natural resources, public safety,public94.25service,human services, revenue, transportation, and veterans 94.26 affairs; the housing finance and pollution control agencies; the 94.27 office of commissioner of iron range resources and 94.28 rehabilitation; the bureau of mediation services; and their 94.29 successor departments and agencies. The heads of the foregoing 94.30 departments or agencies are "commissioners." 94.31 Sec. 6. Minnesota Statutes 2000, section 15A.0815, 94.32 subdivision 2, is amended to read: 94.33 Subd. 2. [GROUP I SALARY LIMITS.] The salaries for 94.34 positions in this subdivision may not exceed 95 percent of the 94.35 salary of the governor: 94.36 Commissioner of administration; 95.1 Commissioner of agriculture; 95.2 Commissioner of children, families, and learning; 95.3 Commissioner of commerce; 95.4 Commissioner of corrections; 95.5 Commissioner of economic security; 95.6 Commissioner of employee relations; 95.7 Commissioner of finance; 95.8 Commissioner of health; 95.9 Executive director, higher education services office; 95.10 Commissioner, housing finance agency; 95.11 Commissioner of human rights; 95.12 Commissioner of human services; 95.13 Executive director, state board of investment; 95.14 Commissioner of labor and industry; 95.15 Commissioner of natural resources; 95.16 Director of office of strategic and long-range planning; 95.17 Commissioner, pollution control agency; 95.18 Commissioner of public safety; 95.19Commissioner, department of public service;95.20 Commissioner of revenue; 95.21 Commissioner of trade and economic development; 95.22 Commissioner of transportation; and 95.23 Commissioner of veterans affairs. 95.24 Sec. 7. Minnesota Statutes 2000, section 16B.32, 95.25 subdivision 2, is amended to read: 95.26 Subd. 2. [ENERGY CONSERVATION GOALS; EFFICIENCY PROGRAM.] 95.27 (a) The commissioner of administration in consultation with 95.28 thedepartment of public servicecommissioner of commerce, in 95.29 cooperation with one or more public utilities or comprehensive 95.30 energy services providers, may conduct a shared-savings program 95.31 involving energy conservation expenditures on state-owned 95.32 buildings. The public utility or energy services provider shall 95.33 contract with appropriate state agencies to implement energy 95.34 efficiency improvements in the selected buildings. A contract 95.35 must require the public utility or energy services provider to 95.36 include all energy efficiency improvements in selected buildings 96.1 that are calculated to achieve a cost payback within ten years. 96.2 The contract must require that the public utility or energy 96.3 services provider be repaid solely from energy cost savings and 96.4 only to the extent of energy cost savings. Repayments must be 96.5 interest-free. The goal of the program in this paragraph is to 96.6 demonstrate that through effective energy conservation the total 96.7 energy consumption per square foot of state-owned and wholly 96.8 state-leased buildings could be reduced by at least 25 percent 96.9 from consumption in the base year of 1990. All agencies 96.10 participating in the program must report to the commissioner of 96.11 administration their monthly energy usage, building schedules, 96.12 inventory of energy-consuming equipment, and other information 96.13 as needed by the commissioner to manage and evaluate the program. 96.14 (b) The commissioner may exclude from the program of 96.15 paragraph (a) a building in which energy conservation measures 96.16 are carried out. "Energy conservation measures" means measures 96.17 that are applied to a state building that improve energy 96.18 efficiency and have a simple return of investment in ten years 96.19 or within the remaining period of a lease, whichever time is 96.20 shorter, and involves energy conservation, conservation 96.21 facilities, renewable energy sources, improvements in operations 96.22 and maintenance efficiencies, or retrofit activities. 96.23 (c) This subdivision expires January 1, 2001. 96.24 Sec. 8. Minnesota Statutes 2000, section 16B.335, 96.25 subdivision 4, is amended to read: 96.26 Subd. 4. [ENERGY CONSERVATION.] A recipient to whom a 96.27 direct appropriation is made for a capital improvement project 96.28 shall ensure that the project complies with the applicable 96.29 energy conservation standards contained in law, including 96.30 sections 216C.19 to 216C.20, and rules adopted thereunder. The 96.31 recipient mayuse the energy planning and intervention and96.32energy technologies units of the department of public service to96.33 obtain information and technical assistance from the state 96.34 energy office in the department of commerce on energy 96.35 conservation and alternative energy development relating to the 96.36 planning and construction of the capital improvement project. 97.1 Sec. 9. Minnesota Statutes 2000, section 16B.56, 97.2 subdivision 1, is amended to read: 97.3 Subdivision 1. [EMPLOYEE TRANSPORTATION PROGRAM.] (a) 97.4 [ESTABLISHMENT.] To conserve energy and alleviate traffic 97.5 congestion around state offices, the commissioner shall, in 97.6 cooperation withthe commissioner of public service,the 97.7 commissioner of transportation, the state energy office in the 97.8 department of commerce, and interested nonprofit agencies, 97.9 establish and operate an employee transportation program using 97.10 commuter vans with a capacity of not less than seven nor more 97.11 than 16 passengers. Commuter vans may be used by state 97.12 employees and others to travel between their homes and their 97.13 work locations. However, only state employee drivers may use 97.14 the van for personal purposes after working hours, not including 97.15 partisan political activity. The commissioner shall acquire or 97.16 lease commuter vans, or otherwise contract for the provision of 97.17 commuter vans, and shall make the vans available for the use of 97.18 state employees and others in accordance with standards and 97.19 procedures adopted by the commissioner. The commissioner shall 97.20 promote the maximum participation of state employees and others 97.21 in the use of the vans. 97.22 (b) [ADMINISTRATIVE POLICIES.] The commissioner shall adopt 97.23 standards and procedures under this section without regard to 97.24 chapter 14. The commissioner shall provide for the recovery by 97.25 the state of vehicle acquisition, lease, operation, and 97.26 insurance costs through efficient and convenient assignment of 97.27 vans, and for the billing of costs and collection of fees. A 97.28 state employee using a van for personal use shall pay, pursuant 97.29 to the standards and procedures adopted by the commissioner, for 97.30 operating and routine maintenance costs incurred as a result of 97.31 the personal use. Fees collected under this subdivision shall 97.32 be deposited in the accounts from which the costs of operating, 97.33 maintaining, and leasing or amortization for the specific 97.34 vehicle are paid. 97.35 Sec. 10. Minnesota Statutes 2000, section 16B.76, 97.36 subdivision 1, is amended to read: 98.1 Subdivision 1. [MEMBERSHIP.] (a) The construction codes 98.2 advisory council consists of the following members: 98.3 (1) the commissioner of administration or the 98.4 commissioner's designee representing the department's building 98.5 codes and standards division; 98.6 (2) the commissioner of health or the commissioner's 98.7 designee representing an environmental health section of the 98.8 department; 98.9 (3) the commissioner of public safety or the commissioner's 98.10 designee representing the department's state fire marshal 98.11 division; 98.12 (4) the commissioner ofpublic servicecommerce or the 98.13 commissioner's designee representing the department'senergy98.14regulation and resource management divisionstate energy office; 98.15 and 98.16 (5) one member representing each of the following 98.17 occupations or entities, appointed by the commissioner of 98.18 administration: 98.19 (i) a certified building official; 98.20 (ii) a fire service representative; 98.21 (iii) a licensed architect; 98.22 (iv) a licensed engineer; 98.23 (v) a building owners and managers representative; 98.24 (vi) a licensed residential building contractor; 98.25 (vii) a commercial building contractor; 98.26 (viii) a heating and ventilation contractor; 98.27 (ix) a plumbing contractor; 98.28 (x) a representative of a construction and building trades 98.29 union; and 98.30 (xi) a local unit of government representative. 98.31 (b) For members who are not state officials or employees, 98.32 terms, compensation, removal, and the filling of vacancies are 98.33 governed by section 15.059. The council shall select one of its 98.34 members to serve as chair. 98.35 (c) The council expires June 30, 2001. 98.36 Sec. 11. Minnesota Statutes 2000, section 17.86, 99.1 subdivision 3, is amended to read: 99.2 Subd. 3. [INFORMATION.] The University of Minnesota 99.3 extension service, in cooperation with the commissioners of 99.4 agriculture, children, families, and learning, natural 99.5 resources, andpublic servicecommerce, shall serve as the 99.6 principal agency for publishing and circulating information 99.7 derived from research under subdivision 2 among the various 99.8 municipalities and individual property owners in the state. 99.9 Where practical, the extension service and the state energy 99.10 office in the department ofpublic servicecommerce shall secure 99.11 the advice and assistance of various energy utilities interested 99.12 and concerned with conservation. The commissioner of 99.13 agriculture shall establish an information source for requests 99.14 for nursery stock, to match needs of municipalities with stocks 99.15 of trees available for planting from private and governmental 99.16 sources. 99.17 Sec. 12. Minnesota Statutes 2000, section 18.024, 99.18 subdivision 1, is amended to read: 99.19 Subdivision 1. [WOOD UTILIZATION.] The departments of 99.20 agriculture and natural resources, after consultation with the 99.21 Minnesota shade tree advisory committee and thecommissioner of99.22public servicestate energy office in the department of 99.23 commerce, shall investigate, evaluate, and make recommendations 99.24 to the legislature concerning the potential uses of wood from 99.25 community trees removed due to disease or other disorders. 99.26 These recommendations shall include maximum resource recovery 99.27 through recycling, use as an alternative energy source, or use 99.28 in construction or the manufacture of new products. Wood 99.29 utilization or disposal systems as defined in section 18.023 99.30 must be included to ensure maximum utilization of diseased shade 99.31 trees with designs and procedures to ensure public safety and to 99.32 assure compliance with approved disease control programs. 99.33 Sec. 13. Minnesota Statutes 2000, section 43A.08, 99.34 subdivision 1a, is amended to read: 99.35 Subd. 1a. [ADDITIONAL UNCLASSIFIED POSITIONS.] Appointing 99.36 authorities for the following agencies may designate additional 100.1 unclassified positions according to this subdivision: the 100.2 departments of administration; agriculture; commerce; 100.3 corrections; economic security; children, families, and 100.4 learning; employee relations; trade and economic development; 100.5 finance; health; human rights; labor and industry; natural 100.6 resources; public safety;public service;human services; 100.7 revenue; transportation; and veterans affairs; the housing 100.8 finance and pollution control agencies; the state lottery; the 100.9 state board of investment; the office of administrative 100.10 hearings; the office of environmental assistance; the offices of 100.11 the attorney general, secretary of state, state auditor, and 100.12 state treasurer; the Minnesota state colleges and universities; 100.13 the higher education services office; the Perpich center for 100.14 arts education; and the Minnesota zoological board. 100.15 A position designated by an appointing authority according 100.16 to this subdivision must meet the following standards and 100.17 criteria: 100.18 (1) the designation of the position would not be contrary 100.19 to other law relating specifically to that agency; 100.20 (2) the person occupying the position would report directly 100.21 to the agency head or deputy agency head and would be designated 100.22 as part of the agency head's management team; 100.23 (3) the duties of the position would involve significant 100.24 discretion and substantial involvement in the development, 100.25 interpretation, and implementation of agency policy; 100.26 (4) the duties of the position would not require primarily 100.27 personnel, accounting, or other technical expertise where 100.28 continuity in the position would be important; 100.29 (5) there would be a need for the person occupying the 100.30 position to be accountable to, loyal to, and compatible with, 100.31 the governor and the agency head, the employing statutory board 100.32 or commission, or the employing constitutional officer; 100.33 (6) the position would be at the level of division or 100.34 bureau director or assistant to the agency head; and 100.35 (7) the commissioner has approved the designation as being 100.36 consistent with the standards and criteria in this subdivision. 101.1 Sec. 14. Minnesota Statutes 2000, section 45.012, is 101.2 amended to read: 101.3 45.012 [COMMISSIONER.] 101.4 (a) The department of commerce is under the supervision and 101.5 control of the commissioner of commerce. The commissioner is 101.6 appointed by the governor in the manner provided by section 101.7 15.06. 101.8 (b) Data that is received by the commissioner or the 101.9 commissioner's designee by virtue of membership or participation 101.10 in an association, group, or organization that is not otherwise 101.11 subject to chapter 13 is confidential or protected nonpublic 101.12 data but may be shared with the department employees as the 101.13 commissioner considers appropriate. The commissioner may 101.14 release the data to any person, agency, or the public if the 101.15 commissioner determines that the access will aid the law 101.16 enforcement process, promote public health or safety, or dispel 101.17 widespread rumor or unrest. 101.18 (c) It is part of the department's mission that within the 101.19 department's resources the commissioner shall endeavor to: 101.20 (1) prevent the waste or unnecessary spending of public 101.21 money; 101.22 (2) use innovative fiscal and human resource practices to 101.23 manage the state's resources and operate the department as 101.24 efficiently as possible; 101.25 (3) coordinate the department's activities wherever 101.26 appropriate with the activities of other governmental agencies; 101.27 (4) use technology where appropriate to increase agency 101.28 productivity, improve customer service, increase public access 101.29 to information about government, and increase public 101.30 participation in the business of government; 101.31 (5) utilize constructive and cooperative labor-management 101.32 practices to the extent otherwise required by chapters 43A and 101.33 179A; 101.34 (6) report to the legislature on the performance of agency 101.35 operations and the accomplishment of agency goals in the 101.36 agency's biennial budget according to section 16A.10, 102.1 subdivision 1; and 102.2 (7) recommend to the legislature appropriate changes in law 102.3 necessary to carry out the mission and improve the performance 102.4 of the department. 102.5 (d) The commissioner also has all the powers and 102.6 responsibilities and shall perform all the duties previously 102.7 assigned to the commissioner of public service and the 102.8 department of public service under chapters 216, 216A, 216B, 102.9 216C, 237, 238, 239, and other statutes prior to the date of 102.10 final enactment of this act, except in the case where those 102.11 powers, responsibilities, or duties have been specifically 102.12 otherwise assigned by law. 102.13 Sec. 15. Minnesota Statutes 2000, section 103F.325, 102.14 subdivision 2, is amended to read: 102.15 Subd. 2. [REVIEW AND HEARING.] (a) The commissioner shall 102.16 make the proposed management plan available to affected local 102.17 governmental bodies, shoreland owners, conservation and outdoor 102.18 recreation groups, the commissioner of trade and economic 102.19 development, the commissioner ofpublic servicecommerce, the 102.20 governor, and the general public. The commissioners of trade 102.21 and economic developmentand of public service, the state energy 102.22 office in the department of commerce, and the governor shall 102.23 review the proposed management plan in accordance with the 102.24 criteria in section 86A.09, subdivision 3, and submit any 102.25 written comments to the commissioner within 60 days after 102.26 receipt of the proposed management plan. 102.27 (b) By 60 days after making the information available, the 102.28 commissioner shall conduct a public hearing on the proposed 102.29 management plan in the county seat of each county that contains 102.30 a portion of the designated system area, in the manner provided 102.31 in chapter 14. 102.32 Sec. 16. Minnesota Statutes 2000, section 103F.325, 102.33 subdivision 3, is amended to read: 102.34 Subd. 3. [POST HEARING REVIEW.] Upon receipt of the 102.35 administrative law judge's report, the commissioner shall 102.36 immediately forward the proposed management plan and the 103.1 administrative law judge's report to the commissioners of trade 103.2 and economic development and ofpublic servicecommerce for 103.3 review under section 86A.09, subdivision 3, except that the 103.4 review by the commissioners must be completed or be deemed 103.5 completed within 30 days after receiving the administrative law 103.6 judge's report, and the review by the governor must be completed 103.7 or be deemed completed within 15 days after receipt. 103.8 Sec. 17. Minnesota Statutes 2000, section 115A.15, 103.9 subdivision 5, is amended to read: 103.10 Subd. 5. [REPORTS.] (a) By January 1 of each odd-numbered 103.11 year, the commissioner of administration shall submit a report 103.12 to the governor and to the environment and natural resources 103.13 committees of the senate and house of representatives, the 103.14 finance division of the senate committee on environment and 103.15 natural resources, and the house of representatives committee on 103.16 environment and natural resources finance summarizing past 103.17 activities and proposed goals of the program for the following 103.18 biennium. The report shall include at least: 103.19 (1) a summary list of product and commodity purchases that 103.20 contain recycled materials; 103.21 (2) the results of any performance tests conducted on 103.22 recycled products and agencies' experience with recycled 103.23 products used; 103.24 (3) a list of all organizations participating in and using 103.25 the cooperative purchasing program; and 103.26 (4) a list of products and commodities purchased for their 103.27 recyclability and of recycled products reviewed for purchase. 103.28 (b) By July 1 of each even-numbered year, the director of 103.29 the office of environmental assistance and the commissioner of 103.30public servicecommerce through the state energy office shall 103.31 submit recommendations to the commissioner regarding the 103.32 operation of the program. 103.33 Sec. 18. Minnesota Statutes 2000, section 116O.06, 103.34 subdivision 2, is amended to read: 103.35 Subd. 2. [EQUITY INVESTMENTS.] The corporation may acquire 103.36 an interest in a product or a private business entity, except 104.1 that the corporation may not acquire an interest in a business 104.2 entity engaged in a trade or industry whose profits are directly 104.3 regulated by the commissioner of commerce or thedepartment of104.4public servicepublic utilities commission. The corporation may 104.5 enter into joint venture agreements with other private 104.6 corporations to promote economic development and job creation. 104.7 Sec. 19. Minnesota Statutes 2000, section 123B.65, 104.8 subdivision 1, is amended to read: 104.9 Subdivision 1. [DEFINITIONS.] The definitions in this 104.10 subdivision apply to this section. 104.11 (a) "Energy conservation measure" means a training program 104.12 or facility alteration designed to reduce energy consumption or 104.13 operating costs and includes: 104.14 (1) insulation of the building structure and systems within 104.15 the building; 104.16 (2) storm windows and doors, caulking or weatherstripping, 104.17 multiglazed windows and doors, heat absorbing or heat reflective 104.18 glazed and coated window and door systems, additional glazing, 104.19 reductions in glass area, and other window and door system 104.20 modifications that reduce energy consumption; 104.21 (3) automatic energy control systems; 104.22 (4) heating, ventilating, or air conditioning system 104.23 modifications or replacements; 104.24 (5) replacement or modifications of lighting fixtures to 104.25 increase the energy efficiency of the lighting system without 104.26 increasing the overall illumination of a facility, unless such 104.27 increase in illumination is necessary to conform to the 104.28 applicable state or local building code for the lighting system 104.29 after the proposed modifications are made; 104.30 (6) energy recovery systems; 104.31 (7) cogeneration systems that produce steam or forms of 104.32 energy such as heat, as well as electricity, for use primarily 104.33 within a building or complex of buildings; 104.34 (8) energy conservation measures that provide long-term 104.35 operating cost reductions. 104.36 (b) "Guaranteed energy savings contract" means a contract 105.1 for the evaluation and recommendations of energy conservation 105.2 measures, and for one or more energy conservation measures. The 105.3 contract must provide that all payments, except obligations on 105.4 termination of the contract before its expiration, are to be 105.5 made over time, but not to exceed 15 years from the date of 105.6 final installation, and the savings are guaranteed to the extent 105.7 necessary to make payments for the systems. 105.8 (c) "Qualified provider" means a person or business 105.9 experienced in the design, implementation, and installation of 105.10 energy conservation measures. A qualified provider to whom the 105.11 contract is awarded shall give a sufficient bond to the school 105.12 district for its faithful performance. 105.13 (d) "Commissioner" means the commissioner ofpublic service105.14 commerce through the state energy office. 105.15 Sec. 20. Minnesota Statutes 2000, section 123B.65, 105.16 subdivision 3, is amended to read: 105.17 Subd. 3. [EVALUATION BY COMMISSIONER.] Upon request of the 105.18 board, the commissionerof public serviceshall review the 105.19 report required in subdivision 2 and provide an evaluation to 105.20 the board on the proposed contract within 15 working days of 105.21 receiving the report. In evaluating the proposed contract, the 105.22 commissioner shall determine whether the detailed calculations 105.23 of the costs and of the energy and operating savings are 105.24 accurate and reasonable. The commissioner may request 105.25 additional information about a proposed contract as the 105.26 commissioner deems necessary. If the commissioner requests 105.27 additional information, the commissioner shall not be required 105.28 to submit an evaluation to the board within fewer than ten 105.29 working days of receiving the requested information. 105.30 Sec. 21. Minnesota Statutes 2000, section 123B.65, 105.31 subdivision 5, is amended to read: 105.32 Subd. 5. [PAYMENT OF REVIEW EXPENSES.] The commissionerof105.33public servicemay charge a district requesting services under 105.34 subdivisions 3 and 4 actual costs incurred by the department 105.35 ofpublic servicecommerce while conducting the review, or 105.36 one-half percent of the total identified project cost, whichever 106.1 is less. Before conducting the review, the commissioner shall 106.2 notify a district requesting review services that expenses will 106.3 be charged to the district. The commissioner shall bill the 106.4 district upon completion of the contract review. Money 106.5 collected by the commissioner under this subdivision must be 106.6 deposited in the general fund. A district may include the cost 106.7 of a review by the commissioner under subdivision 3 in a 106.8 contract made pursuant to this section. 106.9 Sec. 22. Minnesota Statutes 2000, section 161.45, 106.10 subdivision 1, is amended to read: 106.11 Subdivision 1. [RULES.] Electric transmission, telephone 106.12 or telegraph lines, pole lines, community antenna television 106.13 lines, railways, ditches, sewers, water, heat or gas mains, gas 106.14 and other pipe lines, flumes, or other structures which, under 106.15 the laws of this state or the ordinance of any city, may be 106.16 constructed, placed, or maintained across or along any trunk 106.17 highway, or the roadway thereof, by any person, persons, 106.18 corporation, or any subdivision of the state, may be so 106.19 maintained or hereafter constructed only in accordance with such 106.20 rules as may be prescribed by the commissioner who shall have 106.21 power to prescribe and enforce reasonable rules with reference 106.22 to the placing and maintaining along, across, or in any such 106.23 trunk highway of any of the utilities hereinbefore set forth. 106.24 Nothing herein shall restrict the actions of public authorities 106.25 in extraordinary emergencies nor restrict the power and 106.26 authority of thedepartment of public servicecommissioner of 106.27 commerce as provided for in other provisions of law. Provided, 106.28 however, that in the event any local subdivision of government 106.29 has enacted ordinances relating to the method of installation or 106.30 requiring underground installation of such community antenna 106.31 television lines, the permit granted by the commissioner of 106.32 transportation shall require compliance with such local 106.33 ordinance. 106.34 Sec. 23. Minnesota Statutes 2000, section 168.61, 106.35 subdivision 1, is amended to read: 106.36 Subdivision 1. [DEFINITION.] The term "intercity bus" as 107.1 used in sections 168.61 to 168.65 means a motor bus as defined 107.2 in section 168.011, subdivision 9, which is owned or operated by 107.3 either a resident or nonresident of Minnesota in interstate 107.4 commerce under authority of the Interstate Commerce Commission 107.5 or in combined interstate and intrastate commerce under 107.6 authority of the Interstate Commerce Commission and the 107.7 department ofpublic servicetransportation of Minnesota, as a 107.8 result of which operation such bus operates both within and 107.9 without the territorial limits of the state of Minnesota. 107.10 Sec. 24. Minnesota Statutes 2000, section 169.073, is 107.11 amended to read: 107.12 169.073 [PROHIBITED LIGHT OR SIGNAL.] 107.13 (a) No person or corporation shall place, maintain or 107.14 display any red light or red sign, signal, or lighting device or 107.15 maintain it in view of any highway or any line of railroad on or 107.16 over which trains are operated in such a way as to interfere 107.17 with the effectiveness or efficiency of any highway 107.18 traffic-control device or signals or devices used in the 107.19 operation of a railroad. Upon written notice from the 107.20 commissioner of transportation, a person or corporation 107.21 maintaining or owning or displaying a prohibited light shall 107.22 promptly remove it, or change the color of it to some other 107.23 color than red. Where a prohibited light or sign interferes 107.24 with the effectiveness or efficiency of the signals or devices 107.25 used in the operation of a railroad, the department ofpublic107.26servicetransportation may cause the removal of it and the 107.27 department may issue notices and orders for its removal. The 107.28 department shall proceed as provided in sections 216.13, 216.14, 107.29 216.15, 216.16, and 216.17, with a right of appeal to the 107.30 aggrieved party in accordance with chapter 14. 107.31 (b) No person or corporation shall maintain or display any 107.32 light after written notice from the commissioner of 107.33 transportation or the department of public service that the 107.34 light constitutes a traffic hazard and that it has ordered the 107.35 removal thereof. 107.36 Sec. 25. Minnesota Statutes 2000, section 174.03, 108.1 subdivision 7, is amended to read: 108.2 Subd. 7. [ENERGY CONSERVATION.] The commissioner, in 108.3 cooperation with the commissioner ofpublic servicecommerce 108.4 through the state energy office, shall evaluate all modes of 108.5 transportation in terms of their levels of energy consumption. 108.6 The commissioner ofpublic servicecommerce shall provide the 108.7 commissioner with projections of the future availability of 108.8 energy resources for transportation. The commissioner shall use 108.9 the results of this evaluation and the projections to evaluate 108.10 alternative programs and facilities to be included in the 108.11 statewide plan and to otherwise promote the more efficient use 108.12 of energy resources for transportation purposes. 108.13 Sec. 26. Minnesota Statutes 2000, section 181.30, is 108.14 amended to read: 108.15 181.30 [DUTY OF DEPARTMENT OF PUBLIC SERVICE.] 108.16 Any officer of any railroad company in the state violating 108.17 any of the provisions of section 181.29 shall be guilty of a 108.18 misdemeanor; and, upon conviction, punished by a fine of not 108.19 less than $100, and not more than $700, for each offense, or by 108.20 imprisonment in the county jail not more than 60 days, or both 108.21 fine and imprisonment, at the discretion of the court. It shall 108.22 be the duty of the state department ofpublic108.23servicetransportation, upon complaint properly filed with it 108.24 alleging a violation of section 181.29, to make a full 108.25 investigation in relation thereto, and for such purpose it shall 108.26 have the power to administer oaths, interrogate witnesses, take 108.27 testimony and require the production of books and papers, and if 108.28 such report shall show a violation of the provisions of section 108.29 181.29, the department ofpublic servicetransportation shall, 108.30 through the attorney general, begin the prosecution of all 108.31 parties against whom evidence of such violation is found; but 108.32 section 181.29 shall not be construed to prevent any other 108.33 person from beginning prosecution for the violation of the 108.34 provisions thereof. 108.35 Sec. 27. Minnesota Statutes 2000, section 216A.01, is 108.36 amended to read: 109.1 216A.01 [ESTABLISHMENT OFDEPARTMENT AND COMMISSION; POWERS 109.2 AND DUTIES.] 109.3There are hereby created and established the department of109.4public service, and the public utilities commission.The 109.5 department ofpublic servicecommerce shall have and possess all 109.6 of the rights and powers and perform all of the duties vested in 109.7 it by this chapter. The public utilities commission shall have 109.8 and possess all of the rights and powers and perform all of the 109.9 duties vested in it by this chapter, and those formerly vested 109.10 by law in the railroad and warehouse commission. 109.11 Sec. 28. Minnesota Statutes 2000, section 216A.035, is 109.12 amended to read: 109.13 216A.035 [CONFLICT OF INTEREST.] 109.14 (a) No person, while a member of the public utilities 109.15 commission, while acting as executive secretary of the 109.16 commission, or while employed in a professional capacity by the 109.17 commission, shall receive any income, other than dividends or 109.18 other earnings from a mutual fund or trust if these earnings do 109.19 not constitute a significant portion of the person's income, 109.20 directly or indirectly from any public utility or other 109.21 organization subject to regulation by the commission. 109.22 (b) No person is eligible to be appointed as a member of 109.23 the commission if the person has been employed with an entity, 109.24 or an affiliated company of an entity, that is subject to rate 109.25 regulation by the commission within one year from the date when 109.26 the person's term on the commission will begin. 109.27 (c) No person who is an employee of thepublic service109.28 department of commerce shall participate in any manner in any 109.29 decision or action of the commission where that person has a 109.30 direct or indirect financial interest. Each commissioner or 109.31 employee of thepublic servicedepartment who is in the general 109.32 professional, supervisory, or technical units established in 109.33 section 179A.10 or who is a professional, supervisory, or 109.34 technical employee defined as confidential in section 179A.03, 109.35 subdivision 4, or who is a management classification employee 109.36 and whose duties are related to publicutilities or110.1transportationutility, telephone company, or telecommunications 110.2 company regulation shall report to the campaign finance and 110.3 public disclosure board annually before April 15 any interest in 110.4 an industry or business regulated by the commission. Each 110.5 commissioner shall file a statement of economic interest as 110.6 required by section 10A.09 with the campaign finance and public 110.7 disclosure board and the public utilities commission before 110.8 taking office. The statement of economic interest must state 110.9 any interest that the commissioner has in an industry or 110.10 business regulated by the commission. 110.11 (d) A professional employee of the commission or department 110.12 must immediately disclose to the commission or to the 110.13 commissioner of the department, respectively, any communication, 110.14 direct or indirect, with a person who is a party to a pending 110.15 proceeding before the commission regarding future benefits, 110.16 compensation, or employment to be received from that person. 110.17 Sec. 29. Minnesota Statutes 2000, section 216A.036, is 110.18 amended to read: 110.19 216A.036 [EMPLOYMENT RESTRICTIONS.] 110.20 (a) A person who serves as (1) a commissioner of the public 110.21 utilities commission, (2) commissioner ofthe department of110.22public servicecommerce, or (3) deputy commissioner ofthe110.23departmentcommerce, shall not, while employed with or within 110.24 one year after leaving the commission, or department, accept 110.25 employment with, receive compensation directly or indirectly 110.26 from, or enter into a contractual relationship with an entity, 110.27 or an affiliated company of an entity, that is subject to rate 110.28 regulation by the commission. 110.29 (b) An entity or an affiliated company of an entity that is 110.30 subject to rate regulation by the commission, or a person acting 110.31 on behalf of the entity, shall not negotiate or offer to employ 110.32 or compensate a commissioner of the public utilities commission, 110.33 the commissioner ofpublic servicecommerce, or the deputy 110.34 commissioner of commerce, while the person is so employed or 110.35 within one year after the person leaves that employment. 110.36 (c) For the purposes of this section, "affiliated company" 111.1 means a company that controls, is controlled by, or is under 111.2 common control with an entity subject to rate regulation by the 111.3 commission. 111.4 (d) A person who violates this section is subject to a 111.5 civil penalty not to exceed $10,000 for each violation. The 111.6 attorney general may bring an action in district court to 111.7 collect the penalties provided in this section. 111.8 Sec. 30. Minnesota Statutes 2000, section 216A.05, 111.9 subdivision 1, is amended to read: 111.10 Subdivision 1. [LEGISLATIVE AND QUASI-JUDICIAL FUNCTIONS.] 111.11 The functions of the commission shall be legislative and 111.12 quasi-judicial in nature. It may make such investigations and 111.13 determinations, hold such hearings, prescribe such rules and 111.14 issue such orders with respect to the control and conduct of the 111.15 businesses coming within its jurisdiction as the legislature 111.16 itself might make but only as it shall from time to time 111.17 authorize. It may adjudicate all proceedings brought before it 111.18 in which the violation of any law or rule administered by the 111.19 department of commerce is alleged. 111.20 Sec. 31. Minnesota Statutes 2000, section 216A.07, 111.21 subdivision 1, is amended to read: 111.22 Subdivision 1. [ADMINISTRATIVECOMMISSIONER DUTIES.] The 111.23 commissionershall be the executive and administrative head of111.24the public service department and shall have and possessof 111.25 commerce has all the rights and powers and shall perform all the 111.26 dutiesrelating to the administrative function of the department111.27asset forth in this chapter. The commissioner may: 111.28 (1) prepare all forms or blanks for the purpose of 111.29 obtaining information which the commissioner may deem necessary 111.30 or useful in the proper exercise of the authority and duties of 111.31 the commissioner in connection with regulated businesses; 111.32 (2) prescribe the time and manner within which forms or 111.33 blanks shall be filed with the department; 111.34 (3) inspect at all reasonable times, and copy the books, 111.35 records, memoranda and correspondence or other documents and 111.36 records of any person relating to any regulated business; and 112.1 (4) cause the deposition to be taken of any person 112.2 concerning the business and affairs of any business regulated by 112.3 the department. Information sought through said deposition 112.4 shall be for a lawfully authorized purpose and shall be relevant 112.5 and material to the investigation or hearing before the 112.6 commission. Information obtained from said deposition shall be 112.7 used by the department only for a lawfully authorized purpose 112.8 and pursuant to powers and responsibilities conferred upon the 112.9 department. Said deposition is to be taken in the manner 112.10 prescribed by law for taking depositions in civil actions in the 112.11 district court. 112.12 Sec. 32. Minnesota Statutes 2000, section 216A.08, is 112.13 amended to read: 112.14 216A.08 [CONTINUATION OF RULES OF PUBLIC SERVICE 112.15 DEPARTMENT.] 112.16 All valid rules, orders, and directives heretofore 112.17 enforced, issued, or promulgated by the public service 112.18 department under authority of chapter 216, 216A, 216B, 216C, 112.19 218, 219, 221,or222, 237, 238, or 239 shall remain and 112.20 continue in force and effect until repealed, modified, or 112.21 superseded by duly authorized rules, orders, or directives of 112.22 the public utilities commissionor, the commissioner of 112.23 transportation, or the commissioner of commerce. 112.24 Sec. 33. Minnesota Statutes 2000, section 216A.085, 112.25 subdivision 3, is amended to read: 112.26 Subd. 3. [STAFFING.] The intervention office shall be 112.27 under the control and supervision of the commissioner ofthe112.28department of public servicecommerce. The commissioner may 112.29 hire staff or contract for outside services as needed to carry 112.30 out the purposes of this section. The attorney general shall 112.31 act as counsel in all intervention proceedings. 112.32 Sec. 34. Minnesota Statutes 2000, section 216B.02, 112.33 subdivision 1, is amended to read: 112.34 Subdivision 1. [SCOPE.] For the purposes ofLaws 1974,112.35chapter 429this chapter the terms defined in this section have 112.36 the meanings given them. 113.1 Sec. 35. Minnesota Statutes 2000, section 216B.02, 113.2 subdivision 7, is amended to read: 113.3 Subd. 7. [COMMISSION.] "Commission" means the public 113.4 utilities commissionof the department of public service. 113.5 Sec. 36. Minnesota Statutes 2000, section 216B.02, 113.6 subdivision 8, is amended to read: 113.7 Subd. 8. [DEPARTMENT.] "Department" means the department 113.8 ofpublic servicecommerce of the state of Minnesota. 113.9 Sec. 37. Minnesota Statutes 2000, section 216B.16, 113.10 subdivision 1, is amended to read: 113.11 Subdivision 1. [NOTICE.] Unless the commission otherwise 113.12 orders, no public utility shall change a rate which has been 113.13 duly established under this chapter, except upon 60 days' notice 113.14 to the commission. The notice shall include statements of 113.15 facts, expert opinions, substantiating documents, and exhibits, 113.16 supporting the change requested, and state the change proposed 113.17 to be made in the rates then in force and the time when the 113.18 modified rates will go into effect. If the filing utility does 113.19 not have an approved conservation improvement plan on file with 113.20 the departmentof public service, it shall also include in its 113.21 notice an energy conservation plan pursuant to section 113.22 216B.241. The filing utility shall give written notice, as 113.23 approved by the commission, of the proposed change to the 113.24 governing body of each municipality and county in the area 113.25 affected. All proposed changes shall be shown by filing new 113.26 schedules or shall be plainly indicated upon schedules on file 113.27 and in force at the time. 113.28 Sec. 38. Minnesota Statutes 2000, section 216B.16, 113.29 subdivision 2, is amended to read: 113.30 Subd. 2. [SUSPENSION OF PROPOSED RATE; HEARING; FINAL 113.31 DETERMINATION DEFINED.] (a) Whenever there is filed with the 113.32 commission a schedule modifying or resulting in a change in any 113.33 rates then in force as provided in subdivision 1, the commission 113.34 may suspend the operation of the schedule by filing with the 113.35 schedule of rates and delivering to the affected utility a 113.36 statement in writing of its reasons for the suspension at any 114.1 time before the rates become effective. The suspension shall 114.2 not be for a longer period than ten months beyond the initial 114.3 filing date except as provided in this subdivision or 114.4 subdivision 1a. 114.5 (b) During the suspension the commission shall determine 114.6 whether all questions of the reasonableness of the rates 114.7 requested raised by persons deemed interested or by the 114.8administrative division of thedepartmentof public servicecan 114.9 be resolved to the satisfaction of the commission. If the 114.10 commission finds that all significant issues raised have not 114.11 been resolved to its satisfaction, or upon petition by ten 114.12 percent of the affected customers or 250 affected customers, 114.13 whichever is less, it shall refer the matter to the office of 114.14 administrative hearings with instructions for a public hearing 114.15 as a contested case pursuant to chapter 14, except as otherwise 114.16 provided in this section. 114.17 (c) The commission may order that the issues presented by 114.18 the proposed rate changes be bifurcated into two separate 114.19 hearings as follows: (1) determination of the utility's revenue 114.20 requirements and (2) determination of the rate design. Upon 114.21 issuance of both administrative law judge reports, the issues 114.22 shall again be joined for consideration and final determination 114.23 by the commission. 114.24 (d) All prehearing discovery activities of state agency 114.25 intervenors shall be consolidated and conducted by the 114.26 department ofpublic servicecommerce. 114.27 (e) If the commission does not make a final determination 114.28 concerning a schedule of rates within ten months after the 114.29 initial filing date, the schedule shall be deemed to have been 114.30 approved by the commission; except if: 114.31 (1) an extension of the procedural schedule has been 114.32 granted under subdivision 1a, in which case the schedule of 114.33 rates is deemed to have been approved by the commission on the 114.34 last day of the extended period of suspension; or 114.35 (2) a settlement has been submitted to and rejected by the 114.36 commission and the commission does not make a final 115.1 determination concerning the schedule of rates, the schedule of 115.2 rates is deemed to have been approved 60 days after the initial 115.3 or, if applicable, the extended period of suspension. 115.4 (f) If the commission finds that it has insufficient time 115.5 during the suspension period to make a final determination of a 115.6 case involving changes in general rates because of the need to 115.7 make a final determination of another previously filed case 115.8 involving changes in general rates under this section or section 115.9 237.075, the commission may extend the suspension period to the 115.10 extent necessary to allow itself 20 working days to make the 115.11 final determination after it has made a final determination in 115.12 the previously filed case. An extension of the suspension 115.13 period under this paragraph does not alter the setting of 115.14 interim rates under subdivision 3. 115.15 (g) For the purposes of this section, "final determination" 115.16 means the initial decision of the commission and not any order 115.17 which may be entered by the commission in response to a petition 115.18 for rehearing or other further relief. The commission may 115.19 further suspend rates until it determines all those petitions. 115.20 Sec. 39. Minnesota Statutes 2000, section 216B.16, 115.21 subdivision 6b, is amended to read: 115.22 Subd. 6b. [ENERGY CONSERVATION IMPROVEMENT.] (a) Except as 115.23 otherwise provided in this subdivision, all investments and 115.24 expenses of a public utility as defined in section 216B.241, 115.25 subdivision 1, paragraph (e), incurred in connection with energy 115.26 conservation improvements shall be recognized and included by 115.27 the commission in the determination of just and reasonable rates 115.28 as if the investments and expenses were directly made or 115.29 incurred by the utility in furnishing utility service. 115.30 (b) After December 31, 1999, investments and expenses for 115.31 energy conservation improvements shall not be included by the 115.32 commission in the determination of just and reasonable electric 115.33 and gas rates for retail electric and gas service provided to 115.34 large electric customer facilities that have been exempted by 115.35 the commissioner of the departmentof public servicepursuant to 115.36 section 216B.241, subdivision 1a, paragraph (b). However, no 116.1 public utility shall be prevented from recovering its investment 116.2 in energy conservation improvements from all customers that were 116.3 made on or before December 31, 1999, in compliance with the 116.4 requirements of section 216B.241. 116.5 (c) The commission may permit a public utility to file rate 116.6 schedules providing for annual recovery of the costs of energy 116.7 conservation improvements. These rate schedules may be 116.8 applicable to less than all the customers in a class of retail 116.9 customers if necessary to reflect the differing minimum spending 116.10 requirements of section 216B.241, subdivision 1a. After 116.11 December 31, 1999, the commission shall allow a public utility, 116.12 without requiring a general rate filing under this section, to 116.13 reduce the electric and gas rates applicable to large electric 116.14 customer facilities that have been exempted by the commissioner 116.15 of the departmentof public servicepursuant to section 116.16 216B.241, subdivision 1a, paragraph (b), by an amount that 116.17 reflects the elimination of energy conservation improvement 116.18 investments or expenditures for those facilities required on or 116.19 before December 31, 1999. In the event that the commission has 116.20 set electric or gas rates based on the use of an accounting 116.21 methodology that results in the cost of conservation 116.22 improvements being recovered from utility customers over a 116.23 period of years, the rate reduction may occur in a series of 116.24 steps to coincide with the recovery of balances due to the 116.25 utility for conservation improvements made by the utility on or 116.26 before December 31, 1999. 116.27 Sec. 40. Minnesota Statutes 2000, section 216B.16, 116.28 subdivision 15, is amended to read: 116.29 Subd. 15. [LOW-INCOME RATE PROGRAMS; REPORT.] (a) The 116.30 commission may consider ability to pay as a factor in setting 116.31 utility rates and may establish programs for low-income 116.32 residential ratepayers in order to ensure affordable, reliable, 116.33 and continuous service to low-income utility customers. The 116.34 commission shall order a pilot program for at least one 116.35 utility. In ordering pilot programs, the commission shall 116.36 consider the following: 117.1 (1) the potential for low-income programs to provide 117.2 savings to the utility for all collection costs including but 117.3 not limited to: costs of disconnecting and reconnecting 117.4 residential ratepayers' service, all activities related to the 117.5 utilities' attempt to collect past due bills, utility working 117.6 capital costs, and any other administrative costs related to 117.7 inability to pay programs and initiatives; 117.8 (2) the potential for leveraging federal low-income energy 117.9 dollars to the state; and 117.10 (3) the impact of energy costs as a percentage of the total 117.11 income of a low-income residential customer. 117.12 (b) In determining the structure of the pilot utility 117.13 program, the commission shall: 117.14 (1) consult with advocates for and representatives of 117.15 low-income utility customers, administrators of energy 117.16 assistance and conservation programs, and utility 117.17 representatives; 117.18 (2) coordinate eligibility for the program with the state 117.19 and federal energy assistance program and low-income residential 117.20 energy programs, including weatherization programs; and 117.21 (3) evaluate comprehensive low-income programs offered by 117.22 utilities in other states. 117.23 (c) The commission shall implement at least one pilot 117.24 project by January 1, 1995, and shall allow a utility required 117.25 to implement a pilot project to recover the net costs of the 117.26 project in the utility's rates. 117.27(d) The commission, in conjunction with the commissioner of117.28the department of public service and the commissioner of117.29economic security, shall review low-income rate programs and117.30shall report to the legislature by January 1, 1998. The report117.31must include:117.32(1) the increase in federal energy assistance money117.33leveraged by the state as a result of this program;117.34(2) the effect of the program on low-income customer's117.35ability to pay energy costs;117.36(3) the effect of the program on utility customer bad debt118.1and arrearages;118.2(4) the effect of the program on the costs and numbers of118.3utility disconnections and reconnections and other costs118.4incurred by the utility in association with inability to pay118.5programs;118.6(5) the ability of the utility to recover the costs of the118.7low-income program without a general rate change;118.8(6) how other ratepayers have been affected by this118.9program;118.10(7) recommendations for continuing, eliminating, or118.11expanding the low-income pilot program; and118.12(8) how general revenue funds may be utilized in118.13conjunction with low-income programs.118.14 Sec. 41. Minnesota Statutes 2000, section 216B.162, 118.15 subdivision 7, is amended to read: 118.16 Subd. 7. [COMMISSION DETERMINATION.] (a) Except as 118.17 provided under subdivision 6, competitive rates offered by 118.18 electric utilities under this section must be filed with the 118.19 commission and must be approved, modified, or rejected by the 118.20 commission within 90 days. The utility's filing must include 118.21 statements of fact demonstrating that the proposed rates meet 118.22 the standards of this subdivision. The filing must be served on 118.23 the departmentof public serviceand the office of the attorney 118.24 general at the same time as it is served on the commission. 118.25 (b) In reviewing a specific rate proposal, the commission 118.26 shall determine: 118.27 (1) that the rate meets the terms and conditions in 118.28 subdivision 4, unless the commission determines that waiver of 118.29 one or more terms and conditions would be in the public 118.30 interest; 118.31 (2) that the consumer can obtain its energy requirements 118.32 from an energy supplier not rate-regulated by the commission 118.33 under section 216B.16; 118.34 (3) that the customer is not likely to take service from 118.35 the electric utility seeking to offer the competitive rate if 118.36 the customer was charged the electric utility's standard 119.1 tariffed rate; and 119.2 (4) that after consideration of environmental and 119.3 socioeconomic impacts it is in the best interest of all other 119.4 customers to offer the competitive rate to the customer subject 119.5 to effective competition. 119.6 (c) If the commission approves the competitive rate, it 119.7 becomes effective as agreed to by the electric utility and the 119.8 customer. If the competitive rate is modified by the 119.9 commission, the commission shall issue an order modifying the 119.10 competitive rate subject to the approval of the electric utility 119.11 and the customer. Each party has ten days in which to reject 119.12 the proposed modification. If no party rejects the proposed 119.13 modification, the commissioner's order becomes final. If either 119.14 party rejects the commission's proposed modification, the 119.15 electric utility, on its behalf or on the behalf of the 119.16 customer, may submit to the commission a modified version of the 119.17 commission's proposal. The commission shall accept or reject 119.18 the modified version within 30 days. If the commission rejects 119.19 the competitive rate, it shall issue an order indicating the 119.20 reasons for the rejection. 119.21 Sec. 42. Minnesota Statutes 2000, section 216B.162, 119.22 subdivision 11, is amended to read: 119.23 Subd. 11. [COMMISSION DETERMINATION.] (a) Proposals for 119.24 discretionary rate reductions offered by utilities must be filed 119.25 with the commission, with copies of the filing served upon the 119.26 departmentof public serviceand the office of attorney general 119.27 at the same time it is served upon the commission. The 119.28 commission shall review the proposals according to procedures 119.29 developed under section 216B.05, subdivision 2a. The commission 119.30 shall not approve discretionary rate reductions offered by 119.31 public utilities that do not have an accepted resource plan on 119.32 file with the commission. The commission shall not approve 119.33 discretionary rate reductions unless the utility has made the 119.34 customer aware of all cost-effective opportunities for energy 119.35 efficiency improvements offered by the utility. 119.36 (b) Public utilities that provide service under 120.1 discretionary rate reductions shall not, through increased 120.2 revenue requirements or through prospective rate design changes, 120.3 recover any revenues foregone due to the discretionary rate 120.4 reductions, nor shall the commission grant such recovery. 120.5 Sec. 43. Minnesota Statutes 2000, section 216B.1675, 120.6 subdivision 9, is amended to read: 120.7 Subd. 9. [COMMISSION FINDINGS.] The commission shall issue 120.8 findings concerning the appropriateness of the proposed plan. 120.9 The commission may approve, reject, or modify the plan in a 120.10 manner which meets the requirements of this section. An 120.11 approved or modified plan becomes effective unless the plan is 120.12 withdrawn by the utility within 30 days of a final appealable 120.13 order. If the utility withdraws an approved or modified plan, 120.14 all of the administrative costs related to the plan that are 120.15 charged by the commission or the departmentof public serviceto 120.16 the utility may not be recovered from ratepayers in current or 120.17 subsequent rates. A utility that withdraws an approved or 120.18 modified plan may not file another plan under this section for a 120.19 period of one year following the withdrawal of the plan. 120.20 Sec. 44. Minnesota Statutes 2000, section 216B.241, 120.21 subdivision 1a, is amended to read: 120.22 Subd. 1a. [INVESTMENT, EXPENDITURE, AND CONTRIBUTION; 120.23 PUBLIC UTILITY.] (a) For purposes of this subdivision and 120.24 subdivision 2, "public utility" has the meaning given it in 120.25 section 216B.02, subdivision 4. Each public utility shall spend 120.26 and invest for energy conservation improvements under this 120.27 subdivision and subdivision 2 the following amounts: 120.28 (1) for a utility that furnishes gas service, 0.5 percent 120.29 of its gross operating revenues from service provided in the 120.30 state; 120.31 (2) for a utility that furnishes electric service, 1.5 120.32 percent of its gross operating revenues from service provided in 120.33 the state; and 120.34 (3) for a utility that furnishes electric service and that 120.35 operates a nuclear-powered electric generating plant within the 120.36 state, two percent of its gross operating revenues from service 121.1 provided in the state. 121.2 For purposes of this paragraph (a), "gross operating 121.3 revenues" do not include revenues from large electric customer 121.4 facilities exempted by the commissioner of the departmentof121.5public servicepursuant to paragraph (b). 121.6 (b) The owner of a large electric customer facility may 121.7 petition the commissioner of the departmentof public serviceto 121.8 exempt both electric and gas utilities serving the large energy 121.9 customer facility from the investment and expenditure 121.10 requirements of paragraph (a) with respect to retail revenues 121.11 attributable to the facility. At a minimum, the petition must 121.12 be supported by evidence relating to competitive or economic 121.13 pressures on the customer and a showing by the customer of 121.14 reasonable efforts to identify, evaluate, and implement 121.15 cost-effective conservation improvements at the facility. If a 121.16 petition is filed on or before October 1 of any year, the order 121.17 of the commissioner to exempt revenues attributable to the 121.18 facility can be effective no earlier than January 1 of the 121.19 following year. The commissioner shall not grant an exemption 121.20 if the commissioner determines that granting the exemption is 121.21 contrary to the public interest. The commissioner may, after 121.22 investigation, rescind any exemption granted under this 121.23 paragraph upon a determination that cost-effective energy 121.24 conservation improvements are available at the large electric 121.25 customer facility. For the purposes of this paragraph, 121.26 "cost-effective" means that the projected total cost of the 121.27 energy conservation improvement at the large electric customer 121.28 facility is less than the projected present value of the energy 121.29 and demand savings resulting from the energy conservation 121.30 improvement. For the purposes of investigations by the 121.31 commissioner under this paragraph, the owner of any large 121.32 electric customer facility shall, upon request, provide the 121.33 commissioner with updated information comparable to that 121.34 originally supplied in or with the owner's original petition 121.35 under this paragraph. 121.36 (c) The commissioner may require investments or spending 122.1 greater than the amounts required under this subdivision for a 122.2 public utility whose most recent advance forecast required under 122.3 section 216B.2422 or 216C.17 projects a peak demand deficit of 122.4 100 megawatts or greater within five years under mid-range 122.5 forecast assumptions. 122.6 (d) A public utility or owner of a large electric customer 122.7 facility may appeal a decision of the commissioner under 122.8 paragraph (b) or (c) to the commission under subdivision 2. In 122.9 reviewing a decision of the commissioner under paragraph (b) or 122.10 (c), the commission shall rescind the decision if it finds that 122.11 the required investments or spending will: 122.12 (1) not result in cost-effective energy conservation 122.13 improvements; or 122.14 (2) otherwise not be in the public interest. 122.15 (e) Each utility shall determine what portion of the amount 122.16 it sets aside for conservation improvement will be used for 122.17 conservation improvements under subdivision 2 and what portion 122.18 it will contribute to the energy and conservation account 122.19 established in subdivision 2a. A public utility may propose to 122.20 the commissioner to designate that all or a portion of funds 122.21 contributed to the account established in subdivision 2a be used 122.22 for research and development projects. Contributions must be 122.23 remitted to the commissionerof public serviceby February 1 of 122.24 each year. Nothing in this subdivision prohibits a public 122.25 utility from spending or investing for energy conservation 122.26 improvement more than required in this subdivision. 122.27 Sec. 45. Minnesota Statutes 2000, section 216B.241, 122.28 subdivision 1b, is amended to read: 122.29 Subd. 1b. [CONSERVATION IMPROVEMENT BY COOPERATIVE 122.30 ASSOCIATION OR MUNICIPALITY.] (a) This subdivision applies to: 122.31 (1) a cooperative electric association that generates and 122.32 transmits electricity to associations that provide electricity 122.33 at retail including a cooperative electric association not 122.34 located in this state that serves associations or others in the 122.35 state; 122.36 (2) a municipality that provides electric service to retail 123.1 customers; and 123.2 (3) a municipality with gross operating revenues in excess 123.3 of $5,000,000 from sales of natural gas to retail customers. 123.4 (b) Each cooperative electric association and municipality 123.5 subject to this subdivision shall spend and invest for energy 123.6 conservation improvements under this subdivision the following 123.7 amounts: 123.8 (1) for a municipality, 0.5 percent of its gross operating 123.9 revenues from the sale of gas and one percent of its gross 123.10 operating revenues from the sale of electricity not purchased 123.11 from a public utility governed by subdivision 1a or a 123.12 cooperative electric association governed by this subdivision, 123.13 excluding gross operating revenues from electric and gas service 123.14 provided in the state to large electric customer facilities; and 123.15 (2) for a cooperative electric association, 1.5 percent of 123.16 its gross operating revenues from service provided in the state, 123.17 excluding gross operating revenues from service provided in the 123.18 state to large electric customer facilities indirectly through a 123.19 distribution cooperative electric association. 123.20 (c) Each municipality and cooperative association subject 123.21 to this subdivision shall identify and implement energy 123.22 conservation improvement spending and investments that are 123.23 appropriate for the municipality or association, except that a 123.24 municipality or association may not spend or invest for energy 123.25 conservation improvements that directly benefit a large electric 123.26 customer facility. Each municipality and cooperative electric 123.27 association subject to this subdivision may spend and invest 123.28 annually up to 15 percent of the total amount required to be 123.29 spent and invested on energy conservation improvements under 123.30 this subdivision on research and development projects that meet 123.31 the definition of energy conservation improvement in subdivision 123.32 1 and that are funded directly by the municipality or 123.33 cooperative electric association. Load management may be used 123.34 to meet the requirements of this subdivision if it reduces the 123.35 demand for or increases the efficiency of electric services. A 123.36 generation and transmission cooperative electric association may 124.1 include as spending and investment required under this 124.2 subdivision conservation improvement spending and investment by 124.3 cooperative electric associations that provide electric service 124.4 at retail to consumers and that are served by the generation and 124.5 transmission association. 124.6 (d) By February 1 of each year, each municipality or 124.7 cooperative shall report to the commissioner its energy 124.8 conservation improvement spending and investments with a brief 124.9 analysis of effectiveness in reducing consumption of electricity 124.10 or gas. The commissioner shall review each report and make 124.11 recommendations, where appropriate, to the municipality or 124.12 association to increase the effectiveness of conservation 124.13 improvement activities. The commissioner shall also review each 124.14 report for whether a portion of the money spent on residential 124.15 conservation improvement programs is devoted to programs that 124.16 directly address the needs of renters and low-income persons 124.17 unless an insufficient number of appropriate programs are 124.18 available. For the purposes of this subdivision and subdivision 124.19 2, "low-income" means an income of less than 185 percent of the 124.20 federal poverty level. 124.21 (e) As part of its spending for conservation improvement, a 124.22 municipality or association may contribute to the energy and 124.23 conservation account. A municipality or association may propose 124.24 to the commissioner to designate that all or a portion of funds 124.25 contributed to the account be used for research and development 124.26 projects. Any amount contributed must be remitted to the 124.27 commissionerof public serviceby February 1 of each year. 124.28 Sec. 46. Minnesota Statutes 2000, section 216B.241, 124.29 subdivision 2b, is amended to read: 124.30 Subd. 2b. [RECOVERY OF EXPENSES.] The commission shall 124.31 allow a utility to recover expenses resulting from a 124.32 conservation improvement program required by the department and 124.33 contributions to the energy and conservation account, unless the 124.34 recovery would be inconsistent with a financial incentive 124.35 proposal approved by the commission. In addition, a utility may 124.36 file annually, or the public utilities commission may require 125.1 the utility to file, and the commission may approve, rate 125.2 schedules containing provisions for the automatic adjustment of 125.3 charges for utility service in direct relation to changes in the 125.4 expenses of the utility for real and personal property taxes, 125.5 fees, and permits, the amounts of which the utility cannot 125.6 control. A public utility is eligible to file for adjustment 125.7 for real and personal property taxes, fees, and permits under 125.8 this subdivision only if, in the year previous to the year in 125.9 which it files for adjustment, it has spent or invested at least 125.10 1.75 percent of its gross revenues from provision of electric 125.11 service, excluding gross operating revenues from electric 125.12 service provided in the state to large electric customer 125.13 facilities for which the commissionerof public servicehas 125.14 issued an exemption under subdivision 1a, paragraph (b), and 0.6 125.15 percent of its gross revenues from provision of gas service, 125.16 excluding gross operating revenues from gas services provided in 125.17 the state to large electric customer facilities for which the 125.18 commissionerof public servicehas issued an exemption under 125.19 subdivision 1a, paragraph (b), for that year for energy 125.20 conservation improvements under this section. 125.21 Sec. 47. Minnesota Statutes 2000, section 216C.01, 125.22 subdivision 1, is amended to read: 125.23 Subdivision 1. [APPLICABILITY.] The definitions in this 125.24 section apply tosections 216C.02, 216C.05, 216C.07 to 216C.19,125.25216C.20 to 216C.35, and 216C.373 to 216C.381this chapter. 125.26 Sec. 48. Minnesota Statutes 2000, section 216C.01, 125.27 subdivision 2, is amended to read: 125.28 Subd. 2. [COMMISSIONER.] "Commissioner" means the 125.29 commissioner ofthe department of public servicecommerce. 125.30 Sec. 49. Minnesota Statutes 2000, section 216C.01, 125.31 subdivision 3, is amended to read: 125.32 Subd. 3. [DEPARTMENT.] "Department" means the department 125.33 ofpublic servicecommerce. 125.34 Sec. 50. Minnesota Statutes 2000, section 216C.051, 125.35 subdivision 6, is amended to read: 125.36 Subd. 6. [ASSESSMENT; APPROPRIATION.] On request by the 126.1 cochairs of the legislative task force and after approval of the 126.2 legislative coordinating commission, the commissioner ofthe126.3department of public servicecommerce shall assess from electric 126.4 utilities, in addition to assessments made under section 126.5 216B.62, the amount requested for the operation of the task 126.6 force not to exceed $700,000. This authority to assess 126.7 continues until the commissioner has assessed a total of 126.8 $700,000. The amount assessed under this section is 126.9 appropriated to the director of the legislative coordinating 126.10 commission for those purposes, and is available until expended. 126.11 Sec. 51. Minnesota Statutes 2000, section 216C.37, 126.12 subdivision 1, is amended to read: 126.13 Subdivision 1. [DEFINITIONS.] In this section: 126.14 (a) "Commissioner" means the commissioner ofpublic service126.15 commerce. 126.16 (b) "Energy conservation investments" means all capital 126.17 expenditures that are associated with conservation measures 126.18 identified in an energy project study, and that have a ten-year 126.19 or less payback period. 126.20 (c) "Municipality" means any county, statutory or home rule 126.21 charter city, town, school district, or any combination of those 126.22 units operating under an agreement to jointly undertake projects 126.23 authorized in this section. 126.24 (d) "Energy project study" means a study of one or more 126.25 energy-related capital improvement projects analyzed in 126.26 sufficient detail to support a financing application. At a 126.27 minimum, it must include one year of energy consumption and cost 126.28 data, a description of existing conditions, a description of 126.29 proposed conditions, a detailed description of the costs of the 126.30 project, and calculations sufficient to document the proposed 126.31 energy savings. 126.32 Sec. 52. Minnesota Statutes 2000, section 216C.40, 126.33 subdivision 4, is amended to read: 126.34 Subd. 4. [CONDITION PRECEDENT.] The duties of the 126.35 department under this section are conditional on the 126.36 commissionerof public servicefinding that there will be at 127.1 least one public utility that will be subject to the assessment 127.2 created by Laws 1993, chapter 254, section 7. 127.3 Sec. 53. Minnesota Statutes 2000, section 237.02, is 127.4 amended to read: 127.5 237.02 [GENERAL AUTHORITY OF DEPARTMENT AND COMMISSION; 127.6 DEFINITIONS.] 127.7 The department ofpublic servicecommerce and the public 127.8 utilities commission, now existing under the laws of this state,127.9 are hereby vested with the same jurisdiction and supervisory 127.10 power over telephone and telecommunications companies doing 127.11 business in this state asit now hasthe commission's 127.12 predecessor, the railroad and warehouse commission, had over 127.13 railroad and express companies. The definitions set forth 127.14 insectionsections 216A.02shall applyand 216B.02 also apply 127.15 to this chapter. 127.16 Sec. 54. Minnesota Statutes 2000, section 237.075, 127.17 subdivision 2, is amended to read: 127.18 Subd. 2. [SUSPENSION OF PROPOSED RATE; HEARING; FINAL 127.19 DETERMINATION DEFINED.] (a) Whenever there is filed with the 127.20 commission as provided in subdivision 1 a schedule modifying or 127.21 resulting in a change in any rate then in force, the commission 127.22 may suspend the operation of the schedule by filing with the 127.23 schedule of rates and delivering to the affected telephone 127.24 company a statement in writing of its reasons for the suspension 127.25 at any time before the rates become effective. The suspension 127.26 shall not be for a longer period than ten months beyond the 127.27 initial filing date except as provided in paragraph (b). During 127.28 the suspension the commission shall determine whether all 127.29 questions of the reasonableness of the rates requested raised by 127.30 persons deemed interested or by theadministrative division of127.31thedepartmentof public servicecan be resolved to the 127.32 satisfaction of the commission. If the commission finds that 127.33 all significant issues raised have not been resolved to its 127.34 satisfaction, or upon petition by ten percent of the affected 127.35 customers or 250 affected customers, whichever is less, it shall 127.36 refer the matter to the office of administrative hearings with 128.1 instructions for a public hearing as a contested case pursuant 128.2 to chapter 14, except as otherwise provided in this section. 128.3 The commission may order that the issues presented by the 128.4 proposed rate changes be bifurcated into two separate hearings 128.5 as follows: (1) determination of the telephone company's 128.6 revenue requirements and (2) determination of the rate design. 128.7 Upon issuance of both administrative law judge reports, the 128.8 issues shall again be joined for consideration and final 128.9 determination by the commission. All prehearing discovery 128.10 activities of state agency intervenors shall be consolidated and 128.11 conducted by the department ofpublic servicecommerce. If the 128.12 commission does not make a final determination concerning a 128.13 schedule of rates within ten months after the initial filing 128.14 date, the schedule shall be deemed to have been approved by the 128.15 commission; except if a settlement has been submitted to and 128.16 rejected by the commission, the schedule is deemed to have been 128.17 approved 12 months after the initial filing. 128.18 (b) If the commission finds that it has insufficient time 128.19 during the suspension period to make a final determination of a 128.20 case involving changes in general rates because of the need to 128.21 make final determinations of other previously filed cases 128.22 involving changes in general rates under this section or section 128.23 216B.16, the commission may extend the suspension period to the 128.24 extent necessary to allow itself 20 working days to make the 128.25 final determination after it has made final determinations in 128.26 the previously filed cases. An extension of the suspension 128.27 period under this paragraph does not alter the setting of 128.28 interim rates under subdivision 3. 128.29 (c) For the purposes of this section, "final determination" 128.30 means the initial decision of the commission and not any order 128.31 which may be entered by the commission in response to a petition 128.32 for rehearing or other further relief. The commission may 128.33 further suspend rates until it determines all those petitions. 128.34 Sec. 55. Minnesota Statutes 2000, section 237.075, 128.35 subdivision 9, is amended to read: 128.36 Subd. 9. [ELECTION ON REGULATION; COOPERATIVE, MUNICIPAL, 129.1 INDEPENDENT.] For the purposes of this section, "telephone 129.2 company" shall not include a cooperative telephone association 129.3 organized under the provisions of chapter 308A, an independent 129.4 telephone company, or a municipal, unless the cooperative 129.5 telephone association, independent telephone company, or 129.6 municipal makes the election provided in this subdivision. 129.7 A cooperative telephone association may elect to become 129.8 subject to rate regulation by the commission pursuant to this 129.9 section. The election shall be (a) approved by the board of 129.10 directors of the association in accordance with the procedures 129.11 for amending the articles of incorporation contained in section 129.12 308A.135, excluding the filing requirements; or (b) approved by 129.13 a majority of members or stockholders voting by mail ballot 129.14 initiated by petition of no fewer than five percent of the 129.15 members or stockholders of the association. The ballot to be 129.16 used for the election shall be approved by the board of 129.17 directors and the departmentof public service. The department 129.18 shall mail the ballots to the association's members who shall 129.19 return the ballots to the department. The department will keep 129.20 the ballots sealed until a date agreed upon by the department 129.21 and the board of directors. On this date, representatives of 129.22 the department and the association shall count the ballots. If 129.23 a majority of the association's members who vote elect to become 129.24 subject to rate regulation by the commission, the election shall 129.25 be effective 30 days after the date the ballots are counted. 129.26 For purposes of this section, the term "member or stockholder" 129.27 shall mean either the member or stockholder of record or the 129.28 spouse of the member or stockholder unless the association has 129.29 been notified otherwise in writing. 129.30 A municipal may elect to become subject to rate regulation 129.31 by the commission pursuant to this section. The election shall 129.32 be (a) approved by resolution of the governing body of the 129.33 municipality; or (b) approved by a majority of the customers of 129.34 the municipal voting by mail ballot initiated by petition of no 129.35 fewer than 20 percent of the customers of the municipal. The 129.36 ballot to be used for the election shall be approved by the 130.1 governing body of the municipality and the departmentof public130.2service. The department shall mail the ballots to the 130.3 municipal's customers who shall return the ballots to the 130.4 department. The department will keep the ballots sealed until a 130.5 date agreed upon by the department and the governing body of the 130.6 municipality. On this date, representatives of the department 130.7 and the municipal shall count the ballots. If a majority of the 130.8 customers of the municipal who vote elect to become subject to 130.9 rate regulation by the commission, the election shall be 130.10 effective 30 days after the date the ballots are counted. For 130.11 purposes of this section, the term "customer" shall mean either 130.12 the person in whose name the telephone service is registered or 130.13 the spouse of the person unless the municipal utility has been 130.14 notified otherwise in writing. 130.15 An independent telephone company may elect to become 130.16 subject to rate regulation by the commission pursuant to this 130.17 section. The election shall be (a) approved by the board of 130.18 directors of the company in accordance with the procedures for 130.19 amending the articles of incorporation contained in sections 130.20 302A.133 to 302A.139, excluding the filing requirements; or (b) 130.21 approved by a majority of subscribers voting by mail ballot 130.22 initiated by petition of no fewer than five percent of the 130.23 subscribers of the company. The ballot to be used for the 130.24 election shall be approved by the board of directors and the 130.25 departmentof public service. The department shall mail the 130.26 ballots to the company's subscribers who shall return the 130.27 ballots to the department. The department will keep the ballots 130.28 sealed until a date agreed upon by the department and the board 130.29 of directors. On this date, representatives of the department 130.30 and the company shall count the ballots. If a majority of the 130.31 company's subscribers who vote elect to become subject to rate 130.32 regulation by the commission, the election shall be effective 30 130.33 days after the date the ballots are counted. For purposes of 130.34 this section the term "subscriber" shall mean either the person 130.35 in whose name the telephone service is registered or the spouse 130.36 of the person unless the independent telephone company has been 131.1 notified otherwise in writing. 131.2 Sec. 56. Minnesota Statutes 2000, section 237.082, is 131.3 amended to read: 131.4 237.082 [TELECOMMUNICATION SERVICE; POLICY OF INCREASED 131.5 SPEED AND SERVICE.] 131.6 When setting rates, adopting rules, or issuing orders 131.7 related to telecommunication matters that affect deployment of 131.8 the infrastructure, the commission may apply the goals of: 131.9 (1) achieving economically efficient investment in: 131.10 (i) higher speed telecommunication services; and 131.11 (ii) greater capacity for voice, video, and data 131.12 transmission; and 131.13 (2) just and reasonable rates. 131.14 The departmentof public servicemay apply the same goals 131.15 in its regulation of and recommendations regarding 131.16 telecommunication services. 131.17 Sec. 57. Minnesota Statutes 2000, section 237.21, is 131.18 amended to read: 131.19 237.21 [VALUATION OF TELEPHONE PROPERTY.] 131.20 In determining the value of any telephone property for rate 131.21 making purposes, no valuation shall be allowed upon the value of 131.22 any franchise granted by the state or any municipality where no 131.23 payment was or is being made to the state or municipality on 131.24 account thereof. The requirement as to reasonableness of rates 131.25 shall apply to each exchange unit as well as to telephone plants 131.26 as a whole. Provided, that in the case of a company operating a 131.27 telephone system consisting of more than one exchange in the 131.28 state, reasonableness of rates, as measured by earnings, shall 131.29 be determined by a reasonable return from the total operations 131.30 of the system within the state rather than by the return from 131.31 individual exchanges or services. No telephone rates or charges 131.32 shall be allowed or approved by the commission under any 131.33 circumstances, which are inadequate and which are intended to or 131.34 naturally tend to destroy competition or produce a monopoly in 131.35 telephone service in the locality affected. 131.36Laws 1953, chapter 25, shall have no effect on proceedings132.1pending before the courts or the department of public service at132.2the time of its enactment.132.3 Sec. 58. Minnesota Statutes 2000, section 237.30, is 132.4 amended to read: 132.5 237.30 [TELEPHONE INVESTIGATION FUND; APPROPRIATION.] 132.6 The sum of $25,000 is hereby appropriated out of any moneys 132.7 in the state treasury not otherwise appropriated, to establish 132.8 and provide a revolving fund to be known as the Minnesota 132.9 Telephone Investigation Fund for the use of the department of 132.10public servicecommerce and of the attorney general in 132.11 investigations, valuations, and revaluations under section 132.12 237.295. All sums paid by the telephone companies to reimburse 132.13 the departmentof public servicefor its expenses pursuant to 132.14 section 237.295 shall be credited to the revolving fund and 132.15 shall be deposited in a separate bank account and not commingled 132.16 with any other state funds or moneys, but any balance in excess 132.17 of $25,000 in the revolving fund at the end of each fiscal year 132.18 shall be paid into the state treasury and credited to the 132.19 general fund. The sum of $25,000 herein appropriated and all 132.20 subsequent credits to said revolving fund shall be paid upon the 132.21 warrant of the commissioner of finance upon application of the 132.22 department or of the attorney general to an aggregate amount of 132.23 not more than one-half of such sums to each of them, which 132.24 proportion shall be constantly maintained in all credits and 132.25 withdrawals from the revolving fund. 132.26 Sec. 59. Minnesota Statutes 2000, section 237.462, 132.27 subdivision 6, is amended to read: 132.28 Subd. 6. [EXPEDITED PROCEEDING.] (a) The commission may 132.29 order an expedited proceeding under section 237.61 and this 132.30 subdivision, in lieu of a contested case under chapter 14, to 132.31 develop an evidentiary record in any proceeding that involves 132.32 contested issues of material fact either upon request of a party 132.33 or upon the commission's own motion if the complaint alleges a 132.34 violation described in subdivision 1, clauses (1) to (4). The 132.35 commission may order an expedited proceeding under this 132.36 subdivision if the commission finds an expedited proceeding is 133.1 in the public interest, regardless of whether all parties agree 133.2 to the expedited proceeding. In determining whether to grant an 133.3 expedited proceeding, the commission may consider any evidence 133.4 of impairment of the provision of telecommunications service to 133.5 subscribers in the state or impairment of the provision of any 133.6 service or network element subject to the jurisdiction of the 133.7 commission. 133.8 (b) Any request for an expedited proceeding under this 133.9 subdivision must be noted in the title of the first filing by a 133.10 party. The filing shall also state the specific circumstances 133.11 that the party believes warrant an expedited proceeding under 133.12 this subdivision. 133.13 (c) A complaint requesting an expedited proceeding, unless 133.14 filed by the departmentof public serviceor the attorney 133.15 general, must set forth the actions and the dates of the actions 133.16 taken by the party filing the complaint to attempt to resolve 133.17 the alleged violations with the party against whom the complaint 133.18 is filed, including any requests that the party against whom the 133.19 complaint is filed correct the conduct giving rise to the 133.20 violations alleged in the complaint. If no such actions were 133.21 taken by the complainant, the complaint shall set forth the 133.22 reasons why no such actions were taken. The commission may 133.23 order an expedited proceeding even if the filing complaint fails 133.24 to meet this requirement if the commission determines that it 133.25 would be in the public interest to go forward with the expedited 133.26 proceeding without information in the complaint on attempts to 133.27 resolve the dispute. 133.28 (d) The complaining party shall serve the complaint along 133.29 with any written discovery requests by hand delivery and 133.30 facsimile on the party against whom the complaint is filed, the 133.31 departmentof public service, and the office of the attorney 133.32 general on the same day the complaint is filed with the 133.33 commission. 133.34 (e) The party responding to a complaint that includes a 133.35 request for an expedited proceeding under this subdivision shall 133.36 file an answer within 15 days after receiving the complaint. 134.1 The responding party shall state in the answer the party's 134.2 position on the request for an expedited proceeding. The 134.3 responding party shall serve with the answer any objections to 134.4 any written discovery requests as well as any written discovery 134.5 requests the responding party wishes to serve on the complaining 134.6 party. Except for stating any objections, the responding party 134.7 is not required to answer any written discovery requests under 134.8 this subdivision until a time established at a prehearing 134.9 conference. The responding party shall serve a copy of the 134.10 answer and any discovery requests and objections on the 134.11 complaining party, the departmentof public service, and office 134.12 of the attorney general by hand delivery and facsimile on the 134.13 same day as the answer is filed with the commission. 134.14 (f) Within 15 days of receiving the answer to a complaint 134.15 in a proceeding in which a party has requested an expedited 134.16 hearing, the commission shall determine whether the filing 134.17 warrants an expedited proceeding. If the commission decides to 134.18 grant a request by a party or if the commission orders an 134.19 expedited proceeding on its own motion, the commission shall 134.20 conduct within seven days of the decision a prehearing 134.21 conference to schedule the evidentiary hearing. During the 134.22 prehearing conference, the commission shall establish a 134.23 discovery schedule that requires all discovery to be completed 134.24 no later than three days before the start of the hearing. An 134.25 evidentiary hearing under this subdivision must commence no 134.26 later than 45 days after the commission's decision to order an 134.27 expedited proceeding. A quorum of the commission shall preside 134.28 at any evidentiary hearing under this subdivision unless all the 134.29 parties to the proceeding agree otherwise. 134.30 (g) All pleadings submitted under this subdivision must be 134.31 verified and all oral statements of fact made in a hearing or 134.32 deposition under this subdivision must be made under oath or 134.33 affirmation. 134.34 (h) The commission shall issue a written decision and final 134.35 order on the complaint within 15 days after the close of the 134.36 evidentiary hearing under this subdivision. On the day of 135.1 issuance, the commission shall notify the parties by facsimile 135.2 that a final order has been issued and shall provide each party 135.3 with a copy of the final order. 135.4 (i) The commission may extend any time periods under this 135.5 subdivision if all parties to the proceeding agree to the 135.6 extension or if the commission finds the extension is necessary 135.7 to ensure a just resolution of the complaint. 135.8 (j) Except as otherwise provided in this subdivision, an 135.9 expedited proceeding under this subdivision shall be governed by 135.10 the following procedural rules: 135.11 (1) the parties shall have the discovery rights provided in 135.12 Minnesota Rules, parts 1400.6700 to 1400.7000; 135.13 (2) the parties shall have the right to cross-examine 135.14 witnesses as provided in section 14.60, subdivision 3; 135.15 (3) the admissibility of evidence and development of record 135.16 for decision shall be governed by section 14.60 and Minnesota 135.17 Rules, part 1400.7300; and 135.18 (4) the commission may apply other procedures or standards 135.19 included in the rules of the office of administrative hearings, 135.20 as necessary to ensure the fair and expeditious resolution of 135.21 disputes under this section. 135.22 Sec. 60. Minnesota Statutes 2000, section 237.51, 135.23 subdivision 1, is amended to read: 135.24 Subdivision 1. [CREATION.] Thedepartment of public135.25servicecommissioner of commerce shall administer through 135.26 interagency agreement with thedepartmentcommissioner of human 135.27 services a program to distribute communication devices to 135.28 eligible communication-impaired persons and contract with a 135.29 local consumer group that serves communication-impaired persons 135.30 to create and maintain a telecommunication relay service. For 135.31 purposes of sections 237.51 to 237.56, the department ofpublic135.32servicecommerce and any organization with which it contracts 135.33 pursuant to this section or section 237.54, subdivision 2, are 135.34 not telephone companies or telecommunications carriers as 135.35 defined in section 237.01. 135.36 Sec. 61. Minnesota Statutes 2000, section 237.51, 136.1 subdivision 5, is amended to read: 136.2 Subd. 5. [DEPARTMENT OF PUBLIC SERVICECOMMISSIONER OF 136.3 COMMERCE DUTIES.] In addition to any duties specified elsewhere 136.4 in sections 237.51 to 237.56, thedepartment of public service136.5 commissioner of commerce shall: 136.6 (1) prepare the reports required by section 237.55; 136.7 (2) administer the fund created in section 237.52; and 136.8 (3) adopt rules under chapter 14 to implement the 136.9 provisions of sections 237.50 to 237.56. 136.10 Sec. 62. Minnesota Statutes 2000, section 237.51, 136.11 subdivision 5a, is amended to read: 136.12 Subd. 5a. [DEPARTMENT OF HUMAN SERVICES DUTIES.] (a) In 136.13 addition to any duties specified elsewhere in sections 237.51 to 136.14 237.56, thedepartmentcommissioner of human services shall: 136.15 (1) define economic hardship, special needs, and household 136.16 criteria so as to determine the priority of eligible applicants 136.17 for initial distribution of devices and to determine 136.18 circumstances necessitating provision of more than one 136.19 communication device per household; 136.20 (2) establish a method to verify eligibility requirements; 136.21 (3) establish specifications for communication devices to 136.22 be purchased under section 237.53, subdivision 3; and 136.23 (4) inform the public and specifically the community of 136.24 communication-impaired persons of the program. 136.25 (b) Thedepartmentcommissioner may establish an advisory 136.26 board to advise the department in carrying out the duties 136.27 specified in this section and to advise thedepartment of public136.28servicecommissioner of commerce in carrying outitsduties 136.29 under section 237.54. If so established, the advisory board 136.30 must include, at a minimum, the following communication-impaired 136.31 persons: 136.32 (1) at least one member who is deaf; 136.33 (2) at least one member who is speech impaired; 136.34 (3) at least one member who is mobility impaired; and 136.35 (4) at least one member who is hard-of-hearing. 136.36 The membership terms, compensation, and removal of members 137.1 and the filling of membership vacancies are governed by section 137.2 15.059. Advisory board meetings shall be held at the discretion 137.3 of the commissioner. 137.4 Sec. 63. Minnesota Statutes 2000, section 237.52, 137.5 subdivision 2, is amended to read: 137.6 Subd. 2. [ASSESSMENT.] Thedepartment of public137.7servicecommissioner of commerce shall annually recommend to the 137.8 commission an adequate and appropriate surcharge and budget to 137.9 implement sections 237.50 to 237.56. The public utilities 137.10 commission shall review the budget for reasonableness and may 137.11 modify the budget to the extent it is unreasonable. The 137.12 commission shall annually determine the funding mechanism to be 137.13 used within 60 days of receipt of the recommendation of the 137.14 department and shall order the imposition of surcharges 137.15 effective on the earliest practicable date. The commission 137.16 shall establish a monthly charge no greater than 20 cents for 137.17 each customer access line, including trunk equivalents as 137.18 designated by the commission pursuant to section 403.11, 137.19 subdivision 1. 137.20 Sec. 64. Minnesota Statutes 2000, section 237.52, 137.21 subdivision 4, is amended to read: 137.22 Subd. 4. [APPROPRIATION.] Money in the fund is 137.23 appropriated to thedepartment of public servicecommissioner of 137.24 commerce to implement sections 237.51 to 237.56. 137.25 Sec. 65. Minnesota Statutes 2000, section 237.52, 137.26 subdivision 5, is amended to read: 137.27 Subd. 5. [EXPENDITURES.] Money in the fund may only be 137.28 used for: 137.29 (1) expenses of the department ofpublic servicecommerce, 137.30 including personnel cost, public relations, advisory board 137.31 members' expenses, preparation of reports, and other reasonable 137.32 expenses not to exceed ten percent of total program 137.33 expenditures; 137.34 (2) reimbursing the commissioner of human services for 137.35 purchases made or services provided pursuant to section 237.53; 137.36 (3) reimbursing telephone companies for purchases made or 138.1 services provided under section 237.53, subdivision 5; and 138.2 (4) contracting for establishment and operation of the 138.3 telecommunication relay service required by section 237.54. 138.4 All costs directly associated with the establishment of the 138.5 program, the purchase and distribution of communication devices, 138.6 and the establishment and operation of the telecommunication 138.7 relay service are either reimbursable or directly payable from 138.8 the fund after authorization by thedepartment of public service138.9 commissioner of commerce. Thedepartment of public138.10servicecommissioner of commerce shall contract with the message 138.11 relay service operator to indemnify the local exchange carriers 138.12 of the relay service for any fines imposed by the Federal 138.13 Communications Commission related to the failure of the relay 138.14 service to comply with federal service standards. 138.15 Notwithstanding section 16A.41, thedepartment of public service138.16 commissioner may advance money to the contractor of the 138.17 telecommunication relay service if the contractor establishes to 138.18 thedepartment'scommissioner's satisfaction that the advance 138.19 payment is necessary for the operation of the service. The 138.20 advance payment may be used only for working capital reserve for 138.21 the operation of the service. The advance payment must be 138.22 offset or repaid by the end of the contract fiscal year together 138.23 with interest accrued from the date of payment. 138.24 Sec. 66. Minnesota Statutes 2000, section 237.54, 138.25 subdivision 2, is amended to read: 138.26 Subd. 2. [OPERATION.] Thedepartment of public138.27servicecommissioner of commerce shall contract with a local 138.28 consumer organization that serves communication-impaired persons 138.29 for operation and maintenance of the telecommunication relay 138.30 system. Thedepartmentcommissioner may contract with other 138.31 than a local consumer organization if no local consumer 138.32 organization is available to enter into or perform a reasonable 138.33 contract or the only available consumer organization fails to 138.34 comply with terms of a contract. The operator of the system 138.35 shall keep all messages confidential, shall train personnel in 138.36 the unique needs of communication-impaired people, and shall 139.1 inform communication-impaired persons and the public of the 139.2 availability and use of the system. The operator shall not 139.3 relay a message unless it originates or terminates through a 139.4 communication device for the deaf or a Brailling device for use 139.5 with a telephone. 139.6 Sec. 67. Minnesota Statutes 2000, section 237.55, is 139.7 amended to read: 139.8 237.55 [ANNUAL REPORT ON COMMUNICATION ACCESS.] 139.9 Thedepartment of public servicecommissioner of commerce 139.10 must prepare a report for presentation to the commission by 139.11 January 31 of each year. Each report must review the 139.12 accessibility of the telephone system to communication-impaired 139.13 persons, review the ability of non-communication-impaired 139.14 persons to communicate with communication-impaired persons via 139.15 the telephone system, describe services provided, account for 139.16 money received and disbursed annually for each aspect of the 139.17 program to date, and include predicted future operation. 139.18 Sec. 68. Minnesota Statutes 2000, section 237.59, 139.19 subdivision 2, is amended to read: 139.20 Subd. 2. [PETITION.] (a) A telephone company, or the 139.21 commission on its own motion, may petition to have a service of 139.22 that telephone company classified as subject to effective 139.23 competition or emerging competition. The petition must be 139.24 served on the commission, the departmentof public service, the 139.25 office of the attorney general, and any other person designated 139.26 by the commission. The petition must contain at least: 139.27 (1) a list of the known alternative providers of the 139.28 service available to the company's customers; and 139.29 (2) a description of affiliate relationships with any other 139.30 provider of the service in the company's market. 139.31 (b) At the time the company first offers a service, it 139.32 shall also file a petition with the commission for a 139.33 determination as to how the service should be classified. In 139.34 the event that no interested party or the commission objects to 139.35 the company's proposed classification within 20 days of the 139.36 filing of the petition, the company's proposed classification of 140.1 the service is deemed approved. If an objection is filed, the 140.2 commission shall determine the appropriate classification after 140.3 a hearing conducted pursuant to section 237.61. In either 140.4 event, the company may offer the new service to its customers 140.5 ten days after the company files the price list and incremental 140.6 cost study as provided in section 237.60, subdivision 2, 140.7 paragraph (f). 140.8 (c) A new service may be classified as subject to effective 140.9 competition or emerging competition pursuant to the criteria set 140.10 forth in subdivision 5. A new service must be regulated under 140.11 the emerging competition provisions if it is not integrally 140.12 related to the provision of adequate local service or access to 140.13 the telephone network or to the privacy, health, or safety of 140.14 the company's customers, whether or not it meets the criteria 140.15 set forth in subdivision 5. 140.16 Sec. 69. Minnesota Statutes 2000, section 237.768, is 140.17 amended to read: 140.18 237.768 [PERIODIC FINANCIAL REPORT.] 140.19 In addition to the reports required under section 237.766, 140.20 an alternative regulation plan may require a telephone company 140.21 to file with the department an annual report of financial 140.22 matters for the previous calendar year on or before May 1 of 140.23 each year on report forms furnished by the departmentof public140.24servicein the same manner as is required of other telephone 140.25 companies on August 1, 1995. In addition, any company subject 140.26 to a plan shall file with the commission and department a copy 140.27 of any filings it has made to the Federal Communications 140.28 Commission regarding the provisions of video programming 140.29 provided through a video dial tone facility in Minnesota. An 140.30 alternative regulation plan may require a telephone company to 140.31 maintain its accounts in accordance with the system of accounts 140.32 prescribed for the company by the commission under section 140.33 237.10. 140.34 Sec. 70. Minnesota Statutes 2000, section 239.01, is 140.35 amended to read: 140.36 239.01 [WEIGHTS AND MEASURES DIVISION; JURISDICTION.] 141.1 The weights and measures division, referred to in this 141.2 chapter as the division, is created under the jurisdiction of 141.3 the department ofpublic servicecommerce. The division has 141.4 supervision and control over all weights, weighing devices, and 141.5 measures in the state. 141.6 Sec. 71. Minnesota Statutes 2000, section 239.10, is 141.7 amended to read: 141.8 239.10 [ANNUAL INSPECTION.] 141.9 Subdivision 1. [LIGHT CAPACITY SCALES; RETAIL 141.10 ESTABLISHMENTS.] The director shall inspect light capacity 141.11 scales in retail establishments such as grocery stores, other 141.12 retail food establishments, or hardware stores, not more often 141.13 than once every 36 months except when the owner requests an 141.14 inspection, when the scale is inspected as part of an 141.15 investigation, or when the scale has been repaired. 141.16 Subd. 2. [PACKAGED FOOD COMMODITIES.] The director shall 141.17 inspect packaged food commodities in grocery stores and other 141.18 retail food establishments not more often than once every 36 141.19 months except when the owner requests an inspection or when 141.20 packages are inspected as part of an investigation. 141.21 Subd. 3. [OTHER WEIGHTS AND MEASURES.] The director shall 141.22 inspect all weights and measures, except those specified in 141.23 subdivisions 1 and 2, annually, or as often as deemed possible 141.24 within budget and staff limitations. 141.25 Sec. 72. Minnesota Statutes 2000, section 325E.11, is 141.26 amended to read: 141.27 325E.11 [COLLECTION FACILITIES; NOTICE.] 141.28 (a) Any person selling at retail or offering motor oil or 141.29 motor oil filters for retail sale in this state shall: 141.30 (1) post a notice indicating the nearest location where 141.31 used motor oil and used motor oil filters may be returned at no 141.32 cost for recycling or reuse, post a toll-free telephone number 141.33 that may be called by the public to determine a convenient 141.34 location, or post a listing of locations where used motor oil 141.35 and used motor oil filters may be returned at no cost for 141.36 recycling or reuse; or 142.1 (2) if the person is subject to section 325E.112, 142.2 subdivision 1, paragraph (b), post a notice informing customers 142.3 purchasing motor oil or motor oil filters of the location of the 142.4 used motor oil and used motor oil filter collection site 142.5 established by the retailer in accordance with section 325E.112, 142.6 subdivision 1, paragraph (b), where used motor oil and used 142.7 motor oil filters may be returned at no cost. 142.8 (b) A notice under paragraph (a) shall be posted on or 142.9 adjacent to the motor oil and motor oil filter displays, be at 142.10 least 8-1/2 inches by 11 inches in size, contain the universal 142.11 recycling symbol with the following language: 142.12 (1) "It is illegal to put used oil and used motor oil 142.13 filters in the garbage."; 142.14 (2) "Recycle your used oil and used motor oil filters."; 142.15 and 142.16 (3)(i) "There is a free collection site here for your used 142.17 oil and used motor oil filters."; 142.18 (ii) "There is a free collection site for used oil and used 142.19 motor oil filters located at (name of business and street 142.20 address)."; 142.21 (iii) "For the location of a free collection site for used 142.22 oil and used motor oil filters call (toll-free phone number)."; 142.23 or 142.24 (iv) "Here is a list of free collection sites for used oil 142.25 and used motor oil filters." 142.26 (c) The division of weights and measuresunderin the 142.27 department ofpublic servicecommerce shall enforce compliance 142.28 with this section as provided in section 239.54. The pollution 142.29 control agency shall enforce compliance with this section under 142.30 sections 115.071 and 116.072 in coordination with the division 142.31 of weights and measures. 142.32 Sec. 73. Minnesota Statutes 2000, section 325E.115, 142.33 subdivision 2, is amended to read: 142.34 Subd. 2. [COMPLIANCE; MANAGEMENT.] The division of weights 142.35 and measuresunderin the department ofpublic servicecommerce 142.36 shall enforce compliance of subdivision 1 as provided in section 143.1 239.54. The commissioner of the pollution control agency shall 143.2 inform persons governed by subdivision 1 of requirements for 143.3 managing lead acid batteries. 143.4 Sec. 74. Minnesota Statutes 2000, section 326.243, is 143.5 amended to read: 143.6 326.243 [SAFETY STANDARDS.] 143.7 All electrical wiring, apparatus and equipment for electric 143.8 light, heat and power, alarm and communication systems shall 143.9 comply with the rules of the department ofpublic service, the143.10commissioner ofcommerce,or the department of labor and 143.11 industry, as applicable, and be installed in conformity with 143.12 accepted standards of construction for safety to life and 143.13 property. For the purposes of this chapter, the rules and 143.14 safety standards stated at the time the work is done in the then 143.15 most recently published edition of the National Electrical Code 143.16 as adopted by the National Fire Protection Association, Inc. and 143.17 approved by the American National Standards Institute, and the 143.18 National Electrical Safety Code as published by the Institute of 143.19 Electrical and Electronics Engineers, Inc. and approved by the 143.20 American National Standards Institute, shall be prima facie 143.21 evidence of accepted standards of construction for safety to 143.22 life and property; provided further, that in the event a 143.23 Minnesota Building Code is formulated pursuant to section 143.24 16B.61, containing approved methods of electrical construction 143.25 for safety to life and property, compliance with said methods of 143.26 electrical construction of said Minnesota Building Code shall 143.27 also constitute compliance with this section, and provided 143.28 further, that nothing herein contained shall prohibit any 143.29 political subdivision from making and enforcing more stringent 143.30 requirements than set forth herein and such requirements shall 143.31 be complied with by all licensed electricians working within the 143.32 jurisdiction of such political subdivisions. 143.33 Sec. 75. Minnesota Statutes 2000, section 484.50, is 143.34 amended to read: 143.35 484.50 [SUMMONS; PLACE OF TRIAL; ST. LOUIS COUNTY.] 143.36 A party wishing to have an appeal from an order of the 144.1department of public servicepublic utilities commission, an 144.2 election contest, a lien foreclosure, or a civil cause or 144.3 proceeding of a kind commenced or appealed by a party in the 144.4 court, tried in the city of Virginia shall, in the summons, 144.5 notice of appeal in a matter, or other jurisdictional instrument 144.6 issued, in addition to the usual provisions, print, stamp, or 144.7 write thereon the words, "to be tried at the city of Virginia," 144.8 and a party wishing a matter commenced or appealed by a party in 144.9 the court tried at the city of Hibbing shall, in the summons, 144.10 notice of appeal in a matter, or other jurisdictional instrument 144.11 issued, in addition to the usual provisions, print, stamp, or 144.12 write thereon the words, "to be tried at the city of Hibbing," 144.13 and in a case where a summons, notice of appeal in a matter, or 144.14 other jurisdictional instrument contains a specification, the 144.15 case shall be tried at the city of Virginia, or the city of 144.16 Hibbing, as the case may be, unless the defendant shall have the 144.17 place of trial fixed in the manner specified in this section. 144.18 If the place of trial designated is not the proper place of 144.19 trial, as specified in sections 484.44 to 484.52, the cause 144.20 shall nevertheless be tried in a place, unless the defendant, in 144.21 an answer in addition to the other allegations of defense, shall 144.22 plead the location of the defendant's residence, and demand that 144.23 the action be tried at the place of holding the court nearest 144.24 the defendant's residence, as provided in this section; and in a 144.25 case where the answer of the defendant pleads the place of 144.26 residence and makes a demand of place of trial, the plaintiff, 144.27 in reply, may admit or deny the allegations of residence, and if 144.28 the allegations of residence are not expressly denied, the case 144.29 shall be tried at the place demanded by the defendant, and if 144.30 the allegations of residence are denied, the place of trial 144.31 shall be determined by the court on motion. 144.32 If there are several defendants, residing at different 144.33 places in a county, the trial shall be at the place in which the 144.34 majority of the defendants unite in demanding, or if the numbers 144.35 are equal, at the place nearest the residence of the majority of 144.36 the defendants. 145.1 The venue of an action may be changed from one of these 145.2 places to another, by order of the court, in the following cases: 145.3 (1) Upon written consent of the parties; 145.4 (2) When it appears, on motion, that a party has been made 145.5 a defendant for the purpose of preventing a change of venue as 145.6 provided in this section; 145.7 (3) When an impartial trial cannot be held in the place 145.8 where the action is pending; or 145.9 (4) When the convenience of witnesses and the ends of 145.10 justice would be promoted by the change. 145.11 Application for a change under clause (2), (3), or (4), 145.12 shall be made by motion which shall be returnable and heard at 145.13 the place of commencement of the action. 145.14 Sec. 76. [REPEALER.] 145.15 Minnesota Statutes 2000, sections 216A.06; and 237.69, 145.16 subdivision 3, are repealed. 145.17 Sec. 77. [INSTRUCTION TO REVISOR.] 145.18 The revisor of statutes shall change the words "public 145.19 service" to the word "commerce" in the following sections of 145.20 Minnesota Statutes: 13.68; 13.681; 17A.04, subdivisions 6, 7, 145.21 and 8; 17A.10, subdivision 1; 41A.09, subdivision 7; 116C.03, 145.22 subdivision 2; 160.262, subdivision 3; 216A.085, subdivision 1; 145.23 216B.241, subdivision 1; 237.295, subdivision 1; 237.662, 145.24 subdivision 3; 237.70, subdivision 7; 239.05, subdivisions 6c, 145.25 7a, 8, and 8c; 272.0211, subdivision 1; 296A.02, subdivision 1; 145.26 308A.210, subdivisions 5 and 6; 325F.733, subdivision 7; and 145.27 469.164, subdivision 2. 145.28 Sec. 78. [EFFECTIVE DATE.] 145.29 This article is effective July 1, 2001.