3rd Engrossment - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to the organization and operation of state 1.3 government; appropriating money for economic 1.4 development and certain agencies of state government, 1.5 with certain conditions; establishing and modifying 1.6 certain programs; providing for regulation of certain 1.7 activities and practices; providing for accounts, 1.8 assessments, and fees; requiring studies and reports; 1.9 amending Minnesota Statutes 1994, sections 5.14; 1.10 16B.08, subdivision 7; 44A.01, subdivision 2; 97A.531, 1.11 by adding a subdivision; 116J.552, subdivision 2; 1.12 116J.555, subdivision 2; 116J.873, subdivision 3, and 1.13 by adding a subdivision; 116J.982, subdivision 3; 1.14 116M.16, subdivision 2; 116M.18, subdivisions 4, 5, 1.15 and by adding a subdivision; 116N.03, subdivision 2; 1.16 116N.08, subdivisions 5, 6, and by adding a 1.17 subdivision; 124.85, by adding a subdivision; 175.171; 1.18 176.011, subdivision 7a; 176.231, by adding a 1.19 subdivision; 207A.01; 216B.16, subdivision 2, and by 1.20 adding a subdivision; 216B.2424; 216B.27, subdivision 1.21 4; 237.701, subdivision 1; 245A.11, subdivision 2; 1.22 268A.01, subdivisions 4, 5, 6, 9, and 10; 268A.03; 1.23 268A.06, subdivision 1; 268A.07; 268A.08, subdivisions 1.24 1 and 2; 268A.13; 298.22, subdivision 2; 298.223, 1.25 subdivision 2; 462.357, subdivision 7; 462A.05, 1.26 subdivisions 14, 15c, and 30; 462A.201, subdivision 2; 1.27 462A.202, subdivisions 2 and 6; 462A.204, subdivision 1.28 1; 462A.205, subdivision 4; 462A.206, subdivisions 2 1.29 and 5; 462A.21, subdivisions 3b, 8, 8b, 13, 21, and by 1.30 adding subdivisions; 469.0171; 504.33, subdivisions 2 1.31 and 3; 504.34, subdivisions 1 and 2; and 504.35; Laws 1.32 1993, chapter 369, section 9, subdivisions 2 and 3; 1.33 Laws 1994, chapter 573, section 5, subdivision 2; 1.34 chapter 643, section 19, subdivision 9; proposing 1.35 coding for new law in Minnesota Statutes, chapters 1.36 97A; 116J; 176; 178; 268A; 383B; and 462A; repealing 1.37 Minnesota Statutes 1994, sections 97A.531, 1.38 subdivisions 2, 3, 4, 5, and 6; 116J.874, subdivision 1.39 6; 268A.01, subdivisions 7, 11, and 12; 268A.09; 1.40 298.2211, subdivision 3a; and 462A.21, subdivision 8c; 1.41 Laws 1990, chapter 521, section 4. 1.42 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.43 Section 1. [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 2.1 The sums shown in the columns marked "APPROPRIATIONS" are 2.2 appropriated from the general fund, or another named fund, to 2.3 the agencies and for the purposes specified in this act, to be 2.4 available for the fiscal years indicated for each purpose. The 2.5 figures "1996" and "1997," where used in this act, mean that the 2.6 appropriation or appropriations listed under them are available 2.7 for the year ending June 30, 1996, or June 30, 1997, 2.8 respectively. The term "first year" means the fiscal year 2.9 ending June 30, 1996, and "second year" means the fiscal year 2.10 ending June 30, 1997. 2.11 SUMMARY BY FUND 2.12 1995 1996 1997 TOTAL 2.13 General $408,000 $194,091,000 $160,733,000 $355,232,000 2.14 Petroleum Tank 2.15 Cleanup 838,000 842,000 1,680,000 2.16 Trunk Highway 670,000 670,000 1,340,000 2.17 Special 2.18 Compensation 407,000 20,641,000 18,179,000 39,227,000 2.19 Special Revenue 336,000 341,000 677,000 2.20 TOTAL $815,000 $216,576,000 $180,765,000 $398,156,000 2.21 APPROPRIATIONS 2.22 Available for the Year 2.23 Ending June 30 2.24 1995 1996 1997 2.25 Sec. 2. TRADE AND ECONOMIC DEVELOPMENT 2.26 Subdivision 1. Total 2.27 Appropriation $ $ 36,579,000 $ 21,648,000 2.28 Summary by Fund 2.29 General 35,909,000 20,978,000 2.30 Trunk Highway 670,000 670,000 2.31 The amounts that may be spent from this 2.32 appropriation for each program are 2.33 specified in the following subdivisions. 2.34 Subd. 2. Business and Community 2.35 Development 2.36 23,961,000 9,351,000 2.37 $100,000 the first year and $100,000 2.38 the second year are for the affirmative 2.39 enterprise program. The appropriation 2.40 is available until spent. 2.41 $6,017,000 the first year is for 2.42 economic recovery grants, of which 2.43 $500,000 may be used for the purposes 3.1 of the capital access program, and is 3.2 available until spent. 3.3 $379,000 the first year and $379,000 3.4 the second year are for the small 3.5 cities federal match. 3.6 $200,000 the first year and $200,000 3.7 the second year are for grants to 3.8 Advantage Minnesota, Inc. The funds 3.9 are available only if matched on at 3.10 least a dollar-for-dollar basis from 3.11 other sources. The commissioner may 3.12 release the funds only upon: 3.13 (1) certification that matching funds 3.14 from each participating organization 3.15 are available; and 3.16 (2) review and approval by the 3.17 commissioner of the proposed operations 3.18 plan of Advantage Minnesota, Inc. for 3.19 the biennium. 3.20 $450,000 the first year and $450,000 3.21 the second year are for the state's 3.22 match for the federal small business 3.23 development centers. If funding in one 3.24 year is insufficient, the other year's 3.25 appropriation is available. 3.26 $1,987,000 the first year and 3.27 $1,962,000 the second year are for the 3.28 job skills partnership program. 3.29 $300,000 is to the job skills 3.30 partnership board for the purpose of 3.31 funding the development and 3.32 implementation of a program by the city 3.33 of St. Paul which connects the economic 3.34 development activities of the St. Paul 3.35 port authority with the city of St. 3.36 Paul's employment and job development 3.37 programs. This employment connection 3.38 program shall be administered by the 3.39 port authority consistent with, and 3.40 subject to, the program requirements of 3.41 the Minnesota job skills partnership 3.42 program. The appropriation is 3.43 available until spent. 3.44 $100,000 the first year and $100,000 3.45 the second year are to the job skills 3.46 partnership board for a grant to the 3.47 city of Minneapolis' employment 3.48 connection program with the Minneapolis 3.49 Community Development Agency. 3.50 $7,800,000 is for grants under 3.51 Minnesota Statutes, sections 116J.551 3.52 to 116J.558. This appropriation is 3.53 available until spent. 3.54 $100,000 is for a grant to the Phoenix 3.55 Group, Inc. The grant must be used to 3.56 make grants and loans and provide 3.57 technical and other assistance to 3.58 community residents in neighborhoods 3.59 with high levels of poverty for the 3.60 purpose of creating business 3.61 opportunities to promote 4.1 self-sufficiency. The appropriation is 4.2 available for the biennium ending June 4.3 30, 1997. 4.4 $200,000 the first year is for a grant 4.5 to Hennepin county for the 4.6 multijurisdictional reinvestment 4.7 program established in Minnesota 4.8 Statutes, section 383B.79. Hennepin 4.9 county, working in conjunction with the 4.10 metropolitan council, shall report to 4.11 the senate committee on jobs, energy, 4.12 and community development and the house 4.13 committee on economic development, 4.14 infrastructure, and regulation finance 4.15 by February 15, 1996, with its 4.16 recommendations, funding needs, and 4.17 potential funding sources to carry out 4.18 the multijurisdictional reinvestment 4.19 program. This appropriation does not 4.20 lapse, and is available until spent. 4.21 $450,000 the first year and $515,000 4.22 the second year are from fees collected 4.23 under Minnesota Statutes, section 4.24 446A.04, subdivision 5, and credited to 4.25 the general fund to administer the 4.26 programs of the public facilities 4.27 authority. 4.28 $250,000 is for the state's share for a 4.29 matching defense conversion grant to 4.30 Hennepin and Ramsey counties from the 4.31 United States department of commerce 4.32 economic development administration. 4.33 The state and local government 4.34 contribution must be matched at least 4.35 three to one by the federal 4.36 government. This appropriation is 4.37 available until spent. 4.38 Subd. 3. Minnesota Trade Office 4.39 2,304,000 2,318,000 4.40 $150,000 the first year and $150,000 4.41 the second year are for state 4.42 participation in the federal City-State 4.43 Leveraged Financing Program. 4.44 Subd. 4. Tourism 4.45 8,172,000 8,147,000 4.46 Summary by Fund 4.47 General 7,502,000 7,477,000 4.48 Trunk Highway 670,000 670,000 4.49 $100,000 is for the costs of activities 4.50 by the commissioner of trade and 4.51 economic development to resolve a 4.52 dispute concerning fishing restrictions 4.53 in Ontario waters that unduly restrict 4.54 the rights of Minnesota residents to 4.55 take fish by angling in border waters. 4.56 The commissioner may use this 4.57 appropriation for (1) a grant to the 4.58 attorney general to study a legal 4.59 challenge in the courts of Ontario or 5.1 any other available forum to actions of 5.2 that province relating to fishing 5.3 rights of Minnesotans in border waters, 5.4 (2) efforts to mediate the dispute, (3) 5.5 seeking recourse through the mechanisms 5.6 of international trade agreements, or 5.7 (4) other actions the commissioner 5.8 deems necessary to achieve a 5.9 resolution. This appropriation is 5.10 available until spent. 5.11 $100,000 the first year and $175,000 5.12 the second year are for expanded group 5.13 tour marketing and to host the National 5.14 Tour Association Convention in 5.15 Minnesota in 1996. 5.16 To develop maximum private sector 5.17 involvement in tourism, $2,500,000 the 5.18 first year and $2,500,000 the second 5.19 year of the amounts appropriated for 5.20 marketing activities are contingent 5.21 upon receipt of an equal contribution 5.22 of nonstate sources that have been 5.23 certified by the commissioner. Up to 5.24 one-half of the match may be given in 5.25 in-kind contributions. This 5.26 appropriation may not be spent until 5.27 the money is matched. Of this 5.28 appropriation, $400,000 the first year 5.29 and $400,000 the second year are for 5.30 international marketing and tourism 5.31 promotion to maximize international 5.32 tourism to Minnesota and to promote 5.33 Minnesota goods and services in the 5.34 international market place. The office 5.35 of tourism shall consult with the trade 5.36 office in these promotional efforts. 5.37 The office shall report on January 1, 5.38 1997, to the chairs of the legislative 5.39 committees with jurisdiction over 5.40 economic development policy and finance 5.41 on these promotional efforts. 5.42 In order to maximize marketing grant 5.43 benefits, the commissioner must give 5.44 priority for joint venture marketing 5.45 grants to organizations with year-round 5.46 sustained tourism activities. For 5.47 programs and projects submitted, the 5.48 commissioner must give priority to 5.49 those that encompass two or more areas 5.50 or that attract nonresident travelers 5.51 to the state. 5.52 Any unexpended money from general fund 5.53 appropriations made under this 5.54 subdivision do not cancel, but must be 5.55 placed in a special advertising account 5.56 for use by the office of tourism to 5.57 purchase additional media. 5.58 If an appropriation for either year for 5.59 grants is not sufficient, the 5.60 appropriation for the other year is 5.61 available for it. 5.62 $229,000 the first year and $229,000 5.63 the second year are for the Minnesota 5.64 film board. This appropriation is 5.65 available only upon receipt by the 6.1 board of $1 in matching contributions 6.2 of money or in-kind from nonstate 6.3 sources for every $3 provided by this 6.4 appropriation. 6.5 The commissioner may use grant dollars 6.6 or the value of in-kind services to 6.7 provide the state contribution for the 6.8 joint venture grant program. 6.9 Subd. 5. Administration 6.10 2,142,000 1,832,000 6.11 $670,000 the first year and $330,000 6.12 the second year are for network 6.13 management services and support. 6.14 Sec. 3. MINNESOTA TECHNOLOGY, INC. 8,034,000 7,834,000 6.15 $6,105,000 the first year and 6.16 $6,105,000 the second year are for 6.17 transfer from the general fund to the 6.18 Minnesota Technology, Inc. fund. 6.19 $75,000 the first year and $75,000 the 6.20 second year are for grants to Minnesota 6.21 Inventors Congress. 6.22 $494,000 the first year and $494,000 6.23 the second year are for grants to 6.24 Minnesota Project Innovation. 6.25 $1,147,000 the first year and $947,000 6.26 the second year are for grants to 6.27 Natural Resources Research Institute. 6.28 Of this appropriation the institute 6.29 shall spend $200,000 the first year as 6.30 follows: 6.31 (1) $100,000 is for a study of water 6.32 quality impacts and permitting 6.33 requirements related to peat harvesting 6.34 operations. The study must include: 6.35 (i) a review of existing water quality 6.36 permitting requirements and the ability 6.37 of peat producers to comply with these 6.38 requirements; (ii) establishment and 6.39 monitoring of representative background 6.40 control and downstream sampling 6.41 locations at selected peat harvesting 6.42 operations; (iii) an evaluation of the 6.43 use of innovative best management 6.44 practices to minimize downstream water 6.45 quality impacts; and (iv) development 6.46 of a model water quality permit for 6.47 peat harvesting operations in this 6.48 state. By October 1, 1997, the 6.49 institute shall report on the results 6.50 of the study to the chairs of the 6.51 senate and house environment and 6.52 natural resources committees. The 6.53 report must include recommendations, if 6.54 any, for changes to existing state laws 6.55 and rules relating to water quality 6.56 permitting requirements for peat 6.57 harvesting operations. 6.58 (2) $100,000 is for a grant to Rainy 6.59 River community college for a study of 6.60 reclamation and restoration options for 7.1 harvested peatlands. The grant 7.2 recipient must submit to the chairs of 7.3 the senate and house environment and 7.4 natural resources committees a report 7.5 on the study, including any 7.6 recommendations for changes to existing 7.7 laws and rules relating to reclamation 7.8 and restoration of harvested peatlands. 7.9 $88,000 the first year and $88,000 the 7.10 second year are for grants to Minnesota 7.11 Council for Quality. 7.12 $50,000 the first year and $50,000 the 7.13 second year are for grants to Minnesota 7.14 Technology Corridor Corporation. 7.15 $75,000 the first year and $75,000 the 7.16 second year are for grants to Minnesota 7.17 Cold Weather Research Center. 7.18 Sec. 4. WORLD TRADE CENTER CORP. 170,000 7.19 Sec. 5. ECONOMIC SECURITY 51,952,000 47,772,000 7.20 Subdivision 1. Rehabilitation Services 7.21 18,232,000 18,232,000 7.22 $100,000 the first year and $100,000 7.23 the second year are for centers for 7.24 independent living. 7.25 $70,000 in 1996 and $70,000 in 1997 is 7.26 for mentally ill employment support 7.27 services authorized by Minnesota 7.28 Statutes, section 268A.13. 7.29 $50,000 the first year and $50,000 the 7.30 second year are for purposes of 7.31 planning, implementing, and managing 7.32 the statewide reimbursement system 7.33 authorized by Minnesota Statutes, 7.34 section 268A.14. 7.35 Subd. 2. State Services for the Blind 7.36 3,638,000 3,659,000 7.37 This appropriation may be supplemented 7.38 by funds provided by the Friends of the 7.39 Communication Center, for support of 7.40 Services for the Blind's Communication 7.41 Center, which serves all blind and 7.42 visually handicapped Minnesotans. The 7.43 commissioner shall report to the 7.44 legislature on a biennial basis the 7.45 funds provided by the Friends of the 7.46 Communication Center. 7.47 Subd. 3. Community-Based Services 7.48 30,082,000 25,881,000 7.49 $935,000 the first year and $935,000 7.50 the second year are for operating costs 7.51 of transitional housing programs under 7.52 Minnesota Statutes, section 268.38. 7.53 $7,000,000 the first year and 7.54 $7,000,000 the second year are for the 8.1 Minnesota economic opportunity grant 8.2 program. Of this appropriation the 8.3 commissioner may use up to 8.7 percent 8.4 each year for state operations. 8.5 For the biennium ending June 30, 1997, 8.6 the commissioner shall transfer to the 8.7 low-income home weatherization program 8.8 at least five percent of the money 8.9 received under the low-income home 8.10 energy assistance block grant in each 8.11 year of the biennium and shall spend 8.12 all of the transferred money during the 8.13 year of the transfer or the year 8.14 following the transfer. Up to 1.63 8.15 percent of the transferred money may be 8.16 used by the commissioner for 8.17 administrative purposes. 8.18 For the biennium ending June 30, 1997, 8.19 no more than 1.63 percent of money 8.20 remaining under the low-income home 8.21 energy assistance program after 8.22 transfers to the weatherization program 8.23 may be used by the commissioner for 8.24 administrative purposes. 8.25 The state appropriation for the 8.26 temporary emergency food assistance 8.27 program may be used to meet the federal 8.28 match requirements. 8.29 $100,000 the first year and $100,000 8.30 the second year are for youth 8.31 intervention programs under Minnesota 8.32 Statutes, section 268.30, subdivisions 8.33 1 and 2. Funding may be used to expand 8.34 existing programs to serve unmet needs 8.35 and to create new programs in 8.36 underserved areas. In awarding these 8.37 new funds, the commissioner may waive 8.38 or modify the requirement for local 8.39 match when this requirement deters 8.40 expansion to underserved communities or 8.41 populations. This appropriation is 8.42 available until spent. 8.43 Notwithstanding Minnesota Statutes, 8.44 section 268.022, subdivision 2, the 8.45 commissioner of finance shall transfer 8.46 to the general fund from the dedicated 8.47 fund $3,000,000 in the first year and 8.48 $3,000,000 in the second year of the 8.49 money collected through the special 8.50 assessment established in Minnesota 8.51 Statutes, section 268.022, subdivision 8.52 1. 8.53 Of this appropriation, $3,000,000 the 8.54 first year is for summer youth 8.55 employment programs. 8.56 Of the money appropriated for the 8.57 summer youth employment programs for 8.58 the first year, $750,000 is immediately 8.59 available. Any remaining balance of 8.60 the immediately available money is 8.61 available for the year in which it is 8.62 appropriated. If the appropriation for 8.63 either year of the biennium is 8.64 insufficient, money may be transferred 9.1 from the appropriation for the other 9.2 year. 9.3 $200,000 the first year is for youth 9.4 employment and for housing for the 9.5 homeless through the YOUTHBUILD 9.6 program. A Minnesota YOUTHBUILD 9.7 program funded under this section as 9.8 authorized in Minnesota Statutes, 9.9 sections 268.361 to 268.367 qualifies 9.10 as an approved training program under 9.11 Minnesota Rules, part 5200.0930, 9.12 subpart 1. 9.13 Of the appropriation for Head Start, 9.14 the commissioner may use up to two 9.15 percent each year for state operations. 9.16 $250,000 is for the learn to earn 9.17 summer youth employment demonstration 9.18 program established in section 39. 9.19 This appropriation is available until 9.20 spent. 9.21 Sec. 6. HOUSING FINANCE AGENCY 30,082,000 17,532,000 9.22 This appropriation is for transfer to 9.23 the housing development fund for the 9.24 programs specified. This transfer is 9.25 part of the agency's permanent budget 9.26 base. 9.27 Any state appropriations used to meet 9.28 match requirements under Title II of 9.29 the National Affordable Housing Act of 9.30 1990, Public Law Number 101-625, 104 9.31 Stat. 4079, must be repaid, to the 9.32 extent required by federal law, to the 9.33 HOME Investment Trust Fund established 9.34 by the department of housing and urban 9.35 development pursuant to Title II of the 9.36 National Affordable Housing Act of 1990 9.37 for the state of Minnesota or for the 9.38 appropriate participating jurisdiction. 9.39 State appropriations to the Minnesota 9.40 housing finance agency may be granted 9.41 by the agency to cities or nonprofit 9.42 organizations to the extent necessary 9.43 to meet match requirements under Title 9.44 II of the National Affordable Housing 9.45 Act of 1990, Public Law Number 101-625, 9.46 104 Stat. 4079, provided that other 9.47 program requirements are met. 9.48 Spending limit on cost of general 9.49 administration of agency programs: 9.50 1996 1997 9.51 10,493,000 9,911,000 9.52 $1,200,000 the first year and 9.53 $1,200,000 the second year are for a 9.54 rental housing assistance program for 9.55 persons with a mental illness or 9.56 families with an adult member with a 9.57 mental illness under Minnesota 9.58 Statutes, section 462A.2097. 9.59 $6,000,000 is for the affordable rental 10.1 investment fund program. To the extent 10.2 practicable, this appropriation shall 10.3 be used so that an approximately equal 10.4 number of housing units are financed in 10.5 the metropolitan area, as defined in 10.6 Minnesota Statutes, section 473.121, 10.7 subdivision 2, and in the 10.8 nonmetropolitan area. 10.9 (a) In the area of the state outside 10.10 the metropolitan area, the agency must 10.11 work with groups in the funding regions 10.12 created under Minnesota Statutes, 10.13 section 116N.08 to assist the agency in 10.14 identifying the affordable housing 10.15 needed in each region in connection 10.16 with economic development and 10.17 redevelopment efforts and in 10.18 establishing priorities for uses of the 10.19 affordable rental investment fund. The 10.20 groups must include the regional 10.21 development commissioners, the regional 10.22 organization selected under section 10.23 116N.08, the private industry councils, 10.24 units of local government, community 10.25 action agencies, the Minnesota housing 10.26 partnership network groups, local 10.27 lenders, for-profit and nonprofit 10.28 developers, and realtors. In addition 10.29 to priorities developed by the group, 10.30 the agency must give a preference to 10.31 economically viable projects in which 10.32 units of local government, area 10.33 employers, and the private sector 10.34 contribute financial assistance. 10.35 (b) In the metropolitan area, the 10.36 commissioner shall collaborate with the 10.37 metropolitan council to identify the 10.38 priorities for use of the affordable 10.39 rental investment fund. Funds 10.40 distributed in the metropolitan area 10.41 must be used consistent with the 10.42 objectives of the metropolitan 10.43 development guide, adopted under 10.44 Minnesota Statutes, section 473.145. 10.45 In addition to the priorities 10.46 identified in conjunction with the 10.47 metropolitan council, the agency shall 10.48 give preference to economically viable 10.49 projects that: 10.50 (1) include a contribution of financial 10.51 resources from units of local 10.52 government and area employers; 10.53 (2) take into account the availability 10.54 of transportation in the community; and 10.55 (3) take into account the job training 10.56 efforts in the community. 10.57 $5,800,000 is for the community 10.58 rehabilitation program. Of this 10.59 amount, $250,000 each year is for full 10.60 cycle home ownership and 10.61 purchase-rehabilitation lending 10.62 initiatives. At least 20 percent of 10.63 this appropriation must be used in 10.64 areas in a city of the first class 10.65 located in the metropolitan area, as 11.1 defined in Minnesota Statutes, section 11.2 473.121, subdivision 2, in which at 11.3 least one census tract meets at least 11.4 three of the four following criteria: 11.5 (1) at least 70 percent of the housing 11.6 structures were built before 1960; 11.7 (2) at least 60 percent of the 11.8 single-family housing is owner 11.9 occupied; 11.10 (3) the median value, as recorded in 11.11 the 1990 federal decennial census, of 11.12 the area's owner-occupied housing is 11.13 not more than 100 percent of the 11.14 purchase price limit for existing homes 11.15 eligible for purchase in the area under 11.16 the agency's home mortgage loan 11.17 program; and 11.18 (4) between 1980 and 1990, the rate of 11.19 owner-occupancy of residential 11.20 properties in the area declined by five 11.21 percent, or at least 80 percent of the 11.22 residential properties in the area are 11.23 rental properties. 11.24 The area shall include eight blocks in 11.25 any direction from the census tract. 11.26 In cities of the first class located in 11.27 the metropolitan area the appropriation 11.28 may be used only for grants and loans 11.29 for owner-occupied housing. Priority 11.30 must be given for property located in 11.31 an area that meets all four of the 11.32 criteria. This appropriation may fund 11.33 grants in an amount greater or less 11.34 than $350,000 and a grantee may receive 11.35 grants to serve one or more census 11.36 tracts within a city. 11.37 In distributing funds available from 11.38 the 1994 Series E bond sale, the 11.39 agency, in accordance with the terms of 11.40 that sale, shall give priority to 11.41 requests for use of the funds in cities 11.42 which receive funding from this 11.43 appropriation to the community 11.44 rehabilitation program. 11.45 $150,000 is for equal grants to the six 11.46 regional organizations selected under 11.47 Minnesota Statutes, section 116N.08, 11.48 for capacity building grants and if the 11.49 appropriation is not spent under that 11.50 section it is available for the 11.51 capacity building grant program under 11.52 Minnesota Statutes, section 462A.21, 11.53 subdivision 3b. 11.54 $187,000 the first year and $187,000 11.55 the second year are for the urban 11.56 Indian housing program under Minnesota 11.57 Statutes, section 462A.07, subdivision 11.58 15. 11.59 $1,683,000 the first year and 11.60 $1,683,000 the second year are for the 11.61 tribal Indian housing program under 12.1 Minnesota Statutes, section 462A.07, 12.2 subdivision 14. 12.3 $186,000 the first year and $186,000 12.4 the second year are for the Minnesota 12.5 rural and urban homesteading program 12.6 under Minnesota Statutes, section 12.7 462A.057. 12.8 The agency may use up to $1,000,000 of 12.9 available resources for the purpose of 12.10 making loans under the Minnesota rural 12.11 and urban homesteading program 12.12 established under Minnesota Statutes, 12.13 section 462A.057, subdivision 1. The 12.14 commissioner shall report to the 12.15 relevant finance divisions in the house 12.16 of representatives and senate on the 12.17 outcomes of this program January 15 of 12.18 each year. 12.19 $500,000 is for the purpose of 12.20 residential lead paint and lead 12.21 contaminated soil abatement under 12.22 Minnesota Statutes, section 462A.05, 12.23 subdivision 15c, paragraph (b). 12.24 $4,287,000 the first year and 12.25 $4,287,000 the second year are for the 12.26 housing rehabilitation and 12.27 accessibility program under Minnesota 12.28 Statutes, section 462A.05, subdivision 12.29 14a. 12.30 $1,500,000 the first year and 12.31 $1,500,000 the second year are for the 12.32 rent assistance for family 12.33 stabilization program under Minnesota 12.34 Statutes, section 462A.205. 12.35 $100,000 is for the contract for deed 12.36 guarantee account. 12.37 $200,000 the first year and $200,000 12.38 the second year are for family homeless 12.39 prevention and assistance program. 12.40 $200,000 the first year and $200,000 12.41 the second year are for the emergency 12.42 mortgage foreclosure prevention and 12.43 emergency rental assistance program. 12.44 $25,000 the first year and $25,000 the 12.45 second year are for home equity 12.46 conversion counseling grants under 12.47 Minnesota Statutes, section 462A.28. 12.48 Sec. 7. COMMERCE 12.49 Subdivision 1. Total 12.50 Appropriation 15,087,000 15,162,000 12.51 Summary by Fund 12.52 General 13,913,000 13,979,000 12.53 Petro Cleanup 838,000 842,000 12.54 Special Revenue 336,000 341,000 12.55 The amounts that may be spent from this 13.1 appropriation for each program are 13.2 specified in the following subdivisions. 13.3 Subd. 2. Financial Examinations 13.4 3,775,000 3,790,000 13.5 Subd. 3. Registration and Analysis 13.6 3,995,000 4,002,000 13.7 Subd. 4. Enforcement and Licensing 13.8 3,913,000 3,934,000 13.9 Summary by Fund 13.10 General 3,577,000 3,593,000 13.11 Special Revenue 336,000 341,000 13.12 $336,000 the first year and $341,000 13.13 the second year are from the real 13.14 estate education, research, and 13.15 recovery account in the special revenue 13.16 fund for the purpose of Minnesota 13.17 Statutes, section 82.34, subdivision 13.18 6. If the appropriation from the 13.19 special revenue fund for either year is 13.20 insufficient, the appropriation for the 13.21 other year is available for it. 13.22 Subd. 5. Petroleum Tank Release 13.23 Cleanup Board 13.24 838,000 842,000 13.25 This appropriation is from the 13.26 petroleum tank release cleanup account 13.27 in the environmental fund for 13.28 administration. 13.29 Subd. 6. Administrative Services 13.30 2,716,000 2,744,000 13.31 Subd. 7. General Reduction 13.32 (150,000) (150,000) 13.33 Sec. 8. BOARD OF ACCOUNTANCY 537,000 558,000 13.34 Sec. 9. BOARD OF ARCHITECTURE, 13.35 ENGINEERING, LAND SURVEYING, 13.36 LANDSCAPE ARCHITECTURE, AND 13.37 INTERIOR DESIGN 100,000 625,000 635,000 13.38 The appropriation for fiscal year 1995 13.39 is for legal fees and is available 13.40 until June 30, 1997. 13.41 Sec. 10. BOARD OF BARBER 13.42 EXAMINERS 128,000 129,000 13.43 Sec. 11. BOARD OF BOXING 75,000 75,000 13.44 Sec. 12. LABOR AND INDUSTRY 13.45 Subdivision 1. Total 13.46 Appropriation 23,136,000 20,680,000 14.1 Summary by Fund 14.2 General 3,866,000 3,883,000 14.3 Workers' 14.4 Compensation 407,000 19,270,000 16,797,000 14.5 The amounts that may be spent from this 14.6 appropriation for each program are 14.7 specified in the following subdivisions. 14.8 Subd. 2. Workers' Compensation 14.9 Regulation and Enforcement 14.10 407,000 11,861,000 9,412,000 14.11 Summary by Fund 14.12 General 100,000 100,000 14.13 Special 14.14 Compensation 407,000 11,761,000 9,312,000 14.15 The appropriation for fiscal year 1995 14.16 is from the special compensation fund 14.17 for litigation expenses. 14.18 $2,500,000 the first year is from the 14.19 worker's compensation special 14.20 compensation fund for the Daedalus 14.21 imaging systems project, to be 14.22 available until June 30, 1997. 14.23 $100,000 in the first year and $100,000 14.24 in the second year are for grants to 14.25 the Vinland Center for rehabilitation 14.26 service. 14.27 Notwithstanding Minnesota Statutes, 14.28 section 79.253, $45,000 the first year 14.29 and $45,000 the second year are 14.30 appropriated from the assigned risk 14.31 safety account in the special 14.32 compensation fund to the commissioner 14.33 of labor and industry for the purpose 14.34 of providing information to employers 14.35 regarding the prevention of violence in 14.36 the workplace. 14.37 Notwithstanding Minnesota Statutes, 14.38 section 79.253, $140,000 the first year 14.39 and $140,000 the second year are 14.40 appropriated from the assigned risk 14.41 safety account in the special 14.42 compensation fund to the commissioner 14.43 of labor and industry for the purpose 14.44 of hiring two occupational safety and 14.45 health inspectors. The inspectors 14.46 shall perform safety consultations for 14.47 employers through labor-management 14.48 committees as defined in Minnesota 14.49 Statutes, section 179.81, subdivision 14.50 2, under an interagency agreement 14.51 entered into between the commissioners 14.52 of labor and industry and mediation 14.53 services. 14.54 Subd. 3. Workplace Services 14.55 5,353,000 5,339,000 15.1 Summary by Fund 15.2 General 2,516,000 2,527,000 15.3 Workers' Comp. 2,837,000 2,812,000 15.4 Subd. 4. General Support 15.5 5,922,000 5,929,000 15.6 Summary by Fund 15.7 General 1,250,000 1,256,000 15.8 Workers' 15.9 Compensation 4,672,000 4,673,000 15.10 $204,000 the first year and $204,000 15.11 the second year are for labor education 15.12 and advancement program grants. 15.13 Sec. 13. MEDIATION SERVICES 15.14 Subdivision 1. Total 15.15 Appropriation 1,820,000 1,823,000 15.16 Subd. 2. Labor Management Cooperation Grants 15.17 222,000 222,000 15.18 $222,000 the first year and $222,000 15.19 the second year are for grants to area 15.20 labor-management committees. Any 15.21 unencumbered balance remaining at the 15.22 end of the first year does not cancel 15.23 but is available for the second year. 15.24 Subd. 3. Office of Dispute Resolution 15.25 81,000 81,000 15.26 Sec. 14. WORKERS' COMPENSATION 15.27 COURT OF APPEALS 1,371,000 1,382,000 15.28 This appropriation is from the special 15.29 compensation fund. 15.30 Sec. 15. LABOR INTERPRETIVE 15.31 CENTER 140,000 200,000 15.32 Sec. 16. PUBLIC UTILITIES 15.33 COMMISSION 3,244,000 3,219,000 15.34 Sec. 17. DEPARTMENT OF PUBLIC SERVICE 15.35 Subdivision 1. Total 15.36 Appropriation 8,797,000 8,763,000 15.37 The amounts that may be spent from this 15.38 appropriation for each program are 15.39 specified in the following subdivisions. 15.40 Subd. 2. Telecommunications 15.41 761,000 767,000 15.42 Subd. 3. Weights and Measures 15.43 2,926,000 2,937,000 15.44 Subd. 4. Information and Operations 16.1 Management 16.2 1,461,000 1,472,000 16.3 Subd. 5. Energy 16.4 3,649,000 3,587,000 16.5 $588,000 the first year and $588,000 16.6 the second year are for transfer to the 16.7 energy and conservation account 16.8 established in Minnesota Statutes, 16.9 section 216B.241, subdivision 2a, for 16.10 programs administered by the 16.11 commissioner of economic security to 16.12 improve the energy efficiency of 16.13 residential oil-fired heating plants in 16.14 low-income households and, when 16.15 necessary, to provide weatherization 16.16 services to the homes. 16.17 Sec. 18. MINNESOTA HISTORICAL 16.18 SOCIETY 16.19 Subdivision 1. Total 16.20 Appropriation 18,889,000 18,832,000 16.21 The amounts that may be spent from this 16.22 appropriation for each program are 16.23 specified in the following subdivisions. 16.24 The Minnesota historical society is 16.25 eligible for a salary supplement in the 16.26 same manner as state agencies if one is 16.27 available. Employees of the Minnesota 16.28 historical society will be paid in 16.29 accordance with the appropriate pay 16.30 plan. 16.31 Subd. 2. Public Programs 16.32 and Operations 18,434,000 18,500,000 16.33 (a) History Center Operations 16.34 9,043,000 9,043,000 16.35 (b) History Center Building Services 16.36 5,568,000 5,568,000 16.37 (c) Historic Site Operations 16.38 2,749,000 2,815,000 16.39 (d) Statewide Outreach 16.40 644,000 644,000 16.41 (e) Repair and Replacement 16.42 430,000 430,000 16.43 Subd. 3. Fiscal Agent 455,000 332,000 16.44 (a) State Archaeologist 16.45 104,000 104,000 16.46 (b) Sibley House Association 16.47 88,000 88,000 17.1 This appropriation is available for 17.2 operation and maintenance of the Sibley 17.3 house and related buildings on the Old 17.4 Mendota state historic site operated by 17.5 the Sibley house association. 17.6 (c) Minnesota International Center 17.7 50,000 50,000 17.8 (d) Minnesota Air National 17.9 Guard Museum 17.10 19,000 17.11 (e) Institute for Learning and 17.12 Teaching - Project 120 17.13 90,000 90,000 17.14 (f) Minnesota Military Museum 17.15 29,000 17.16 (g) Farmamerica 17.17 25,000 17.18 Notwithstanding any other law, this 17.19 appropriation may be used for 17.20 operations. 17.21 (h) Kee theatre 17.22 25,000 17.23 (i) Federal National Guard Museum 17.24 25,000 17.25 (j) Balances Forward 17.26 Any unencumbered balance remaining in 17.27 this subdivision the first year does 17.28 not cancel but is available for the 17.29 second year of the biennium. 17.30 Subd. 4. Preservation grants 17.31 Notwithstanding Laws 1994, chapter 643, 17.32 section 19, subdivision 5, the 17.33 historical society may award grants 17.34 from the unexpended balance under that 17.35 subdivision to public agencies or 17.36 entities based on historical 17.37 preservation purposes and needs. The 17.38 society shall require significant 17.39 matching money for such projects. A 17.40 grant awarded under this section for 17.41 historical preservation is not subject 17.42 to the requirements of Minnesota 17.43 Statutes, section 16A.695. 17.44 Subd. 5. Carryover 17.45 Amounts appropriated under Laws 1993, 17.46 chapter 369, section 12, subdivisions 17.47 2, 3, 4, and 5, do not cancel on June 17.48 30, 1995, but are available until June 17.49 30, 1997. 18.1 Sec. 19. MINNESOTA HUMANITIES 18.2 COMMISSION 586,000 586,000 18.3 Any unencumbered balance remaining in 18.4 the first year does not cancel but is 18.5 available for the second year of the 18.6 biennium. 18.7 Sec. 20. BOARD OF THE ARTS 18.8 Subdivision 1. Total Appropriation 6,897,000 6,903,000 18.9 Any unencumbered balance remaining in 18.10 this section the first year does not 18.11 cancel but is available for the second 18.12 year of the biennium. 18.13 Subd. 2. Operations and Services 690,000 693,000 18.14 Subd. 3. Grants Program 4,781,000 4,783,000 18.15 The board shall spend this 18.16 appropriation to ensure that at least 18.17 ten percent of the expenditure is for 18.18 arts programs intended primarily for 18.19 children. 18.20 Subd. 4. Regional Arts 18.21 Councils 1,426,000 1,427,000 18.22 The board shall distribute this 18.23 appropriation to the regional arts 18.24 councils to ensure that ten percent of 18.25 the total distribution in each region 18.26 is for arts programs intended primarily 18.27 for children. 18.28 Sec. 21. MINNESOTA MUNICIPAL 18.29 BOARD 300,000 287,000 18.30 Any unencumbered balance remaining in 18.31 the first year does not cancel but is 18.32 available for the second year of the 18.33 biennium. 18.34 Sec. 22. UNIFORM LAWS 18.35 COMMISSION 29,000 29,000 18.36 Sec. 23. COUNCIL ON BLACK 18.37 MINNESOTANS 229,000 232,000 18.38 The appropriation for the second year 18.39 is contingent on submission of the 18.40 report required in section 35. 18.41 Sec. 24. COUNCIL ON AFFAIRS 18.42 OF SPANISH-SPEAKING PEOPLE 246,000 248,000 18.43 During the biennium ending June 30, 18.44 1997, council publications may contain 18.45 advertising. Receipts from advertising 18.46 are appropriated to the council for 18.47 purposes of council publications. For 18.48 the biennium ending June 30, 1997, the 18.49 council shall report to the legislature 18.50 on the revenues and expenditures from 18.51 advertising by February 15 each year. 18.52 The appropriation for the second year 18.53 is contingent on submission of the 18.54 report required in section 35. 19.1 Sec. 25. COUNCIL ON 19.2 ASIAN-PACIFIC MINNESOTANS 198,000 200,000 19.3 The appropriation for the second year 19.4 is contingent on submission of the 19.5 report required in section 35. 19.6 Sec. 26. INDIAN AFFAIRS 19.7 COUNCIL 508,000 463,000 19.8 For the biennium ending June 30, 1997, 19.9 federal money received for the Indian 19.10 affairs council is appropriated to the 19.11 council and added to this appropriation. 19.12 The appropriation for the second year 19.13 is contingent on submission of the 19.14 report required in section 35. 19.15 Sec. 27. SECRETARY OF STATE 19.16 Subdivision 1. Total 19.17 Appropriation 6,617,000 5,573,000 19.18 The amounts that may be spent from this 19.19 appropriation for each activity are 19.20 specified in the following subdivisions. 19.21 Subd. 2. Administration 19.22 938,000 947,000 19.23 Subd. 3. Operations 19.24 5,231,000 4,103,000 19.25 The legislature estimates that the 19.26 increase in fees for expedited 19.27 processing under Minnesota Statutes, 19.28 section 5.14, provided for by this act, 19.29 will increase revenue to the general 19.30 fund by $350,000 the first year and 19.31 $350,000 the second year. 19.32 Subd. 4. Election Administration 19.33 448,000 523,000 19.34 Sec. 28. BOARD FOR COMMUNITY 19.35 COLLEGES 300,000 19.36 This appropriation is to the state 19.37 board for community colleges or its 19.38 successor for the design through 19.39 development of construction documents, 19.40 to the extent possible given the amount 19.41 of the appropriation, for a residential 19.42 facility at Fond du Lac community 19.43 college. The facility is intended for 19.44 Indian students, to help immerse them 19.45 in Indian culture while attending the 19.46 college. The board shall include the 19.47 facility in its capital budget request 19.48 for consideration by the 1996 19.49 legislature. This appropriation is 19.50 available until expended. 19.51 Sec. 29. ETHICAL PRACTICES 19.52 BOARD 308,000 19.53 This appropriation is for fiscal year 20.1 1995. Of this appropriation, $291,000 20.2 is for litigation expenses and $17,000 20.3 is for severance costs. 20.4 Sec. 30. [EFFECTIVE DATE FOR LAWS 1995, CHAPTER 22.] 20.5 Laws 1995, chapter 22, is effective March 28, 1995. This 20.6 section is effective the day following final enactment. 20.7 Sec. 31. Laws 1994, chapter 573, section 5, subdivision 2, 20.8 is amended to read: 20.9 Subd. 2. [PUBLIC UTILITIES COMMISSION; RESEARCH PROJECTS.] 20.10 $150,000, or so much of this amount as may be needed, is 20.11 appropriated from the general fund to the public utilities 20.12 commission to complete the work of the team of science advisors 20.13 as specified in section 1 or initiate research projects in 20.14 fiscal year 1995 as recommended by the team of science advisors 20.15 and approved by the commission. Any amount of this 20.16 appropriation that remains unencumbered after June 30, 1996, 20.17 reverts to the general fund. 20.18 Sec. 32. Laws 1993, chapter 369, section 9, subdivision 2, 20.19 is amended to read: 20.20 Subd. 2. Workers' Compensation 20.21 Regulation and Enforcement 20.22 14,961,000 9,410,000 20.23 Summary by Fund 20.24 General 100,000 100,000 20.25 Workers' Comp. 14,861,000 9,310,000 20.26 $5,000,000 the first year from the 20.27 special compensation fund is for the 20.28 Daedalus imaging systems project. This 20.29 appropriation must not be allotted 20.30 until the commissioner certifies that 20.31 all information policy office 20.32 requirements for this project have been 20.33 met or will be met. This appropriation 20.34 is available
for either year of the20.35 bienniumuntil June 30, 1997. 20.36 $100,000 in the first year and $100,000 20.37 in the second year are for grants to 20.38 the Vinland Center for rehabilitation 20.39 service. 20.40 Fee receipts collected as a result of 20.41 providing direct computer access to 20.42 public workers' compensation data on 20.43 file with the commissioner must be 20.44 credited to the general fund. 20.45 Sec. 33. Laws 1993, chapter 369, section 9, subdivision 3, 21.1 is amended to read: 21.2 Subd. 3. Workplace Services 21.3 5,455,000 4,744,000 21.4 Summary by Fund 21.5 General 2,704,000 2,703,000 21.6 Workers' Comp. 2,751,000 2,041,000 21.7 This appropriation includes the 21.8 transfer of the industrial hygiene 21.9 activity from the department of 21.10 health. The appropriation for this 21.11 activity is from the special 21.12 compensation fund. 21.13 $710,000 the first year from the 21.14 special compensation fund is for 21.15 litigation of alleged ergonomic 21.16 violations cases under the occupational 21.17 safety and health act (OSHA). This 21.18 appropriation is available for either21.19 year of the bienniumuntil June 30, 21.20 1997. 21.21 Sec. 34. [BASE CUT TRANSFERS.] 21.22 For any agency assigned base cuts in this act, the 21.23 proportion of agency base cuts for pass-through grants compared 21.24 to total agency base cuts may not exceed the proportion of 21.25 dollars appropriated for pass-through grants in the agency 21.26 compared to total dollars appropriated to that agency. 21.27 Sec. 35. [COUNCILS TO REPORT.] 21.28 (a) The Indian affairs council, the council on affairs of 21.29 Spanish-speaking people, the council on Black Minnesotans, and 21.30 the council on Asian-Pacific Minnesotans shall, individually and 21.31 jointly as provided in paragraph (b), conduct a study of each 21.32 council's membership and operations. Each council's study must 21.33 contain recommendations on: 21.34 (1) removal of council members by the governor; 21.35 (2) statutory requirements and qualifications for council 21.36 membership; 21.37 (3) appointment of the council director, including 21.38 qualifications; 21.39 (4) methods of reducing overall costs of the councils 21.40 through sharing of staff and administrative expenses; 21.41 (5) methods of improving coordination with other state 21.42 agencies; 22.1 (6) methods of reducing burdensome reporting requirements 22.2 without compromising accountability; 22.3 (7) methods of educating council members in management 22.4 issues for state agencies, including but not limited to 22.5 statewide budget and accounting practices, management practices, 22.6 and legal liability; and 22.7 (8) a statement of the mission of each council and 22.8 measurable impact goals for each council. 22.9 (b) Each council must make all feasible efforts to 22.10 coordinate its study with each other council's study, to achieve 22.11 the maximum possible consistency in recommendations. 22.12 (c) Each council must consult with the governor's office in 22.13 studying paragraph (b), items (1) to (3). 22.14 (d) Each council must submit its report to the legislature 22.15 by February 1, 1996. 22.16 Sec. 36. [STUDY TO ASSESS BENEFITS OF CIVIC CENTERS.] 22.17 The division of tourism of the department of trade and 22.18 economic development shall conduct a statewide study assessing 22.19 the benefits of publicly owned civic and convention centers to 22.20 the convention and tourism industry in the state. The results 22.21 of the study shall be reported to the house capital investment 22.22 committee and the senate finance committee by September 30, 22.23 1995. A copy of the study shall be given to the governor and to 22.24 the commissioner of finance, who shall consider whether to 22.25 include funding for civic and convention centers in the 1996 22.26 capital budget. 22.27 Sec. 37. [WORKERS' COMPENSATION DIVISION; SALARIES; 22.28 MANAGERIAL PLAN.] 22.29 Funds appropriated to the department of labor and industry 22.30 may not be used to pay the salaries for any positions in the 22.31 managerial plan under Minnesota Statutes, section 43A.18, 22.32 subdivision 3, in the workers' compensation division unless the 22.33 positions existed on October 1, 1994, and had been filled on or 22.34 before that date. This section does not prohibit the addition 22.35 or modification of duties or responsibilities to existing 22.36 managerial plan positions. 23.1 Sec. 38. [BRANDON FISHERIES ACQUISITION.] 23.2 The commissioner of trade and economic development shall 23.3 study whether it is economically feasible and otherwise 23.4 appropriate for the state to acquire the Brandon fisheries 23.5 property near Brandon, Minnesota, for the purpose of a rest stop 23.6 or tourism information center. The results of the study shall 23.7 be reported to the relevant finance divisions and committees of 23.8 the legislature by January 15, 1996. 23.9 Sec. 39. [DEMONSTRATION PROGRAM.] 23.10 The commissioner of economic security shall fund a 23.11 demonstration program for summer youth employment which requires 23.12 that youth who are otherwise eligible for employment under 23.13 Minnesota Statutes, sections 268.56 and 268.561, participate in 23.14 a program of remedial education involving reading and writing 23.15 skills in both a learning and teaching capacity as part of 23.16 summer youth programs. The commissioner shall evaluate the 23.17 success of the program and report to the chairs of the jobs, 23.18 energy, and community development committee of the senate and 23.19 the economic development, infrastructure, and regulation finance 23.20 committee of the house of representatives. 23.21 Sec. 40. [REGIONAL PROGRAM TO IDENTIFY ENERGY-EFFICIENCY 23.22 INVESTMENT OPPORTUNITIES FOR BUSINESS.] 23.23 Subdivision 1. [PURPOSE.] A grant program for fiscal year 23.24 1996 is established to support regional efforts to identify 23.25 energy-efficiency investments for businesses to provide 23.26 opportunities for economic growth and job creation. 23.27 Subd. 2. [GRANT APPLICATION AND REVIEW PROCESS.] Regional 23.28 development commissions are eligible to apply to the 23.29 commissioner of public service for grants under this section. 23.30 Applications must be submitted to the commissioner in the form 23.31 and manner determined by the commissioner. The applicant must 23.32 specify a process for identifying business and industrial 23.33 sectors most appropriate for making changes in energy use. This 23.34 regional process may include surveys, interviews, and regional 23.35 forums to identify opportunities for energy-efficiency 23.36 improvements and the use of new energy resources by businesses. 24.1 The applicant must identify and retain the services of an 24.2 appropriate nonprofit corporation to provide the technical 24.3 expertise to assess energy-efficiency opportunities in new, 24.4 existing, and expanding businesses, to analyze the 24.5 cost-effectiveness of the opportunities, and to facilitate 24.6 relationships among utilities, energy service providers, 24.7 businesses, and public agencies that result in cost-effective 24.8 investments in energy-efficiency improvements that contribute to 24.9 economic development. These efforts must be designed to 24.10 maximize participation in utility conservation and energy 24.11 efficiency programs and to promote the growth of the energy 24.12 service industry in the region, which includes engineering 24.13 firms, distributors, contractors, and other energy service 24.14 providers. 24.15 In each participating region, the regional development 24.16 commission shall establish a project oversight committee that 24.17 shall consist of a labor representative, a utility 24.18 representative, a business representative, and not more than two 24.19 additional members. This committee shall review and approve the 24.20 project work plan and proposed activities and energy-efficiency 24.21 installations undertaken as part of the project. 24.22 Subd. 3. [EVALUATION.] Each grant proposal must include a 24.23 process for evaluating the specific business cost savings 24.24 resulting from the regional energy-efficiency program activity. 24.25 Subd. 4. [REPORT.] The commissioner of public service 24.26 shall report to the legislature by January 1, 1997, on the 24.27 business investments in energy-efficiency technology which 24.28 resulted from the grant program. 24.29 Sec. 41. [RADIO TALKING BOOK FOR THE BLIND.] 24.30 The commissioner of the department of economic security, 24.31 the Friends of the Communication Center, the Rehabilitation 24.32 Advisory Council of the Blind, and consumer organizations of the 24.33 blind must initiate open public discussions regarding 24.34 privatization of the Radio Talking Book for the Blind. The 24.35 discussions must include, but not be limited to, a study of the 24.36 Radio Talking Book, its statewide coverage, effectiveness of 25.1 service, staffing, funding, programming, and the relationship 25.2 between State Services for the Blind, the Friends of the 25.3 Communication Center, consumer organizations of the blind, and 25.4 Radio Talking Book consumers. 25.5 Sec. 42. [EXTENDED EMPLOYMENT AUDITS.] 25.6 The department of economic security, division of vocational 25.7 rehabilitation, must complete its audit and reconciliation for 25.8 extended employment programs according to the following schedule: 25.9 (1) fiscal year 1991 by April 14, 1995; 25.10 (2) fiscal year 1992 by July 28, 1995; 25.11 (3) fiscal year 1993 by July 28, 1995; and 25.12 (4) fiscal year 1994 by June 1, 1996. 25.13 Sec. 43. [LEGISLATIVE AUDITOR; ECONOMIC RECOVERY GRANT 25.14 PROGRAM.] 25.15 The legislative audit commission is requested to direct the 25.16 legislative auditor to conduct an evaluation of the economic 25.17 recovery grant program under Minnesota Statutes, section 25.18 116J.873. The evaluation must include an audit of loans and 25.19 grants made under the program and the criteria used in selecting 25.20 projects for grants and loans. The legislative auditor shall 25.21 report the results of the evaluation to the legislature by 25.22 January 15, 1996. 25.23 Sec. 44. [LEGISLATIVE AUDITOR; BUSINESS ASSISTANCE 25.24 PROGRAMS.] 25.25 The legislative audit commission is requested to direct the 25.26 legislative auditor to conduct an evaluation of business 25.27 assistance programs of state and local governments and report 25.28 the results of the evaluation to the legislature by January 15, 25.29 1996. The evaluation must include tax increment financing 25.30 assistance. The evaluation must identify the source of public 25.31 funds for each project, number of jobs proposed or promised at 25.32 the time of application and the number of jobs created, 25.33 estimated number of jobs retained, salary and benefit 25.34 distribution and dispersal by company for the jobs resulting 25.35 from the public assistance, the number and name of projects 25.36 approved, and, if possible, the number of jobs displaced by the 26.1 assistance. 26.2 The salary distribution must show the number of employees 26.3 in salary per hour bands, one dollar in width, beginning with 26.4 the minimum wage and proceeding to the maximum salary paid. 26.5 Sec. 45. [WASTE WOOD COGENERATION FACILITIES; BIOMASS 26.6 MANDATE.] 26.7 Electric energy produced at a St. Paul district heating and 26.8 cooling system cogeneration facility which utilizes waste wood 26.9 as a primary fuel source may also count toward satisfaction of 26.10 up to 25 megawatts of the amount of biomass energy required by 26.11 Minnesota Statutes, section 216B.2424, clause (2), provided that: 26.12 (1) the cogeneration facility utilizes nonhazardous tree 26.13 trimmings and other nonhazardous waste wood, including, but not 26.14 limited to, wood that would otherwise be landfilled or burned in 26.15 a process not designed to reclaim and use the energy contained 26.16 therein as a primary fuel source; and 26.17 (2) the cogenerated thermal load of such facility replaces 26.18 a thermal load produced by nonrenewable fuels; and 26.19 (3) construction of the cogeneration facility begins after 26.20 August 1, 1995. 26.21 All projects seeking to satisfy the biomass mandate of 26.22 Minnesota Statutes, section 216B.2424, in whole or in part must 26.23 be selected in a competitive bidding process or such other 26.24 selection process approved by the public utilities commission. 26.25 Sec. 46. [SUSTAINABLE BIOMASS ENERGY PRODUCTION PROJECT; 26.26 TECHNICAL ASSISTANCE AND SUPPORT.] 26.27 The commissioner of the department of agriculture, in 26.28 collaboration and consultation with the commissioners of the 26.29 departments of natural resources, trade and economic 26.30 development, and public service, shall provide technical 26.31 assistance and support to the Sustainable Biomass Energy 26.32 Production Project, a joint effort of the University of 26.33 Minnesota, the Minnesota Valley Alfalfa Producers, and other 26.34 public and private interests. The support shall include 26.35 assistance in analysis of environmental and economic benefits of 26.36 the proposed project, assistance in developing feasibility and 27.1 market assessments of the alfalfa-derived coproducts that would 27.2 be produced by the project, and assistance to aid the project in 27.3 securing a grant from the United States Department of Energy and 27.4 the United States Department of Agriculture under the Biomass 27.5 Power for Rural Development Initiative. The assistance provided 27.6 under this section shall terminate June 30, 1997. 27.7 Sec. 47. [COGENERATION; POWER PLANT SITING ACT EXEMPTION.] 27.8 (a) A person who proposes to construct a cogeneration 27.9 facility which utilizes gasified petroleum coke as its primary 27.10 fuel source which is derived as a by-product of the oil refining 27.11 process at an oil refining facility owned by the person 27.12 proposing the project may identify a single site for the project 27.13 in its application under Minnesota Statutes, section 116C.57, 27.14 subdivision 1, instead of the two sites normally required under 27.15 that subdivision, if the site is in reasonable proximity to the 27.16 thermal host of the cogeneration plant. For the purposes of 27.17 this subdivision, the "thermal host" of a cogeneration plant 27.18 means the facility in which the thermal energy produced by the 27.19 cogeneration plant is to be utilized. The environmental quality 27.20 board shall determine whether the cogeneration facility is 27.21 reasonably proximate to the thermal host with the understanding 27.22 that the site should be adjacent to or contiguous with the site 27.23 of the thermal host whenever practicable. 27.24 (b) A person who proposes to construct a cogeneration 27.25 facility as described in paragraph (a) may apply to the 27.26 environmental quality board to exempt the construction from the 27.27 requirements of Minnesota Statutes, sections 116C.51 to 116C.69, 27.28 under the provisions of Minnesota Statutes, section 116C.57, 27.29 subdivision 5a, notwithstanding the size restrictions found in 27.30 that subdivision. All other requirements of Minnesota Statutes, 27.31 section 116C.57, subdivision 5a, apply to an application for an 27.32 exemption under this subdivision. If the board determines that 27.33 the proposed site will not have a significant human and 27.34 environmental impact, the board may exempt the construction of 27.35 the proposed plant at the proposed site from the requirements of 27.36 Minnesota Statutes, sections 116C.51 to 116C.69 with any 28.1 appropriate conditions. 28.2 Sec. 48. Minnesota Statutes 1994, section 5.14, is amended 28.3 to read: 28.4 5.14 [TRANSACTION SURCHARGE.] 28.5 The secretary of state may impose a surcharge of $10$20 on 28.6 each transaction involving over-the-counter expedited service ,28.7 other than simple copying requests,that takes place at the 28.8 office of the secretary of state. 28.9 Sec. 49. Minnesota Statutes 1994, section 16B.08, 28.10 subdivision 7, is amended to read: 28.11 Subd. 7. [SPECIFIC PURCHASES.] (a) The following may be 28.12 purchased without regard to the competitive bidding requirements 28.13 of this chapter: 28.14 (1) merchandise for resale at state park refectories or 28.15 facility operations; 28.16 (2) farm and garden products, which may be sold at the 28.17 prevailing market price on the date of the sale; 28.18 (3) meat for other state institutions from the technical 28.19 college maintained at Pipestone by independent school district 28.20 No. 583; and 28.21 (4) products and services from the Minnesota correctional 28.22 facilities. 28.23 (b) Supplies, materials, equipment, and utility services 28.24 for use by a community-based residential facility operated by 28.25 the commissioner of human services may be purchased or rented 28.26 without regard to the competitive bidding requirements of this 28.27 chapter. 28.28 (c) Supplies, materials, or equipment to be used in the 28.29 operation of a hospital licensed under sections 144.50 to 144.56 28.30 that are purchased under a shared service purchasing arrangement 28.31 whereby more than one hospital purchases supplies, materials, or 28.32 equipment with one or more other hospitals, either through one 28.33 of the hospitals or through another entity, may be purchased 28.34 without regard to the competitive bidding requirements of this 28.35 chapter if the following conditions are met: 28.36 (1) the hospital's governing authority authorizes the 29.1 arrangement; 29.2 (2) the shared services purchasing program purchases items 29.3 available from more than one source on the basis of competitive 29.4 bids or competitive quotations of prices; and 29.5 (3) the arrangement authorizes the hospital's governing 29.6 authority or its representatives to review the purchasing 29.7 procedures to determine compliance with these requirements. 29.8 (d) Supplies, materials, equipment, and utility services to29.9 be used or purchased by the iron range resources and29.10 rehabilitation board are subject to the competitive bidding29.11 requirements of this chapter only as described in section29.12 298.2211, subdivision 3a.29.13 Sec. 50. Minnesota Statutes 1994, section 44A.01, 29.14 subdivision 2, is amended to read: 29.15 Subd. 2. [BOARD MEMBERSHIP.] The corporation is governed 29.16 by a board of directors consisting of: 29.17 (1) four members, representing the international business 29.18 community, elected to six-year terms by the association of 29.19 members established under section 44A.023, subdivision 2, clause 29.20 (5); 29.21 (2) four members, representing the international business 29.22 community, appointed by the governor, to serve at the governor's 29.23 pleasure; 29.24 (3) the mayor of St. Paul or the mayor's designee; and29.25 (4) the commissioners of trade and economic development, 29.26 agriculture, and commerce; and 29.27 (5) three members of the house appointed by the speaker of 29.28 the house and three members of the senate appointed under the 29.29 rules of the senate, who serve as nonvoting members. One member 29.30 from each house must be a member of the minority party of that 29.31 house. Legislative members are appointed at the beginning of 29.32 each regular session of the legislature for two-year terms. A 29.33 legislator who remains a member of the body from which the 29.34 legislator was appointed may serve until a successor is 29.35 appointed and qualifies. A vacancy in a legislator member's 29.36 term is filled for the unexpired portion of the term in the same 30.1 manner as the original appointment. 30.2 Members appointed by the governor must be knowledgeable or 30.3 experienced in international trade in products or services. 30.4 Sec. 51. Minnesota Statutes 1994, section 97A.531, is 30.5 amended by adding a subdivision to read: 30.6 Subd. 7. [POSSESSION OF FISH ON LAKE OF THE WOODS.] While 30.7 in Minnesota, a person permitted to take and possess fish in 30.8 Minnesota and licensed by the province of Ontario to take and 30.9 possess fish may possess the daily limit of fish allowed by the 30.10 Ontario border water conservation tag, if the fish taken in 30.11 Ontario were taken on Ontario waters of Lake of the Woods north 30.12 of Big Island. 30.13 Sec. 52. [97A.552] [FISHING REGULATIONS; EXECUTIVE ORDER.] 30.14 Subdivision 1. [ORDER AUTHORIZED.] (a) The governor may by 30.15 executive order: 30.16 (1) require that fish that are lawfully taken by angling 30.17 and possessed in Canada be brought into the state in-the-round; 30.18 (2) authorize fish lawfully taken by angling in Canada to 30.19 be transported within the state or out of the state by a 30.20 nonresident; 30.21 (3) require that a Minnesota resident transporting in 30.22 Minnesota fish that have been taken by angling in Canada possess 30.23 a Minnesota angling license; and 30.24 (4) require that any advertisement of fishing resorts or 30.25 facilities in Canada in printed or broadcast form originating or 30.26 distributed within the state must contain a summary of the 30.27 requirement of clause (1) and penalty for noncompliance. 30.28 (b) An executive order issued under paragraph (a) is 30.29 effective the day following the filing of a certified copy of it 30.30 in the office of the secretary of state, and remains in effect 30.31 until rescinded by order of the governor. 30.32 Subd. 2. [PENALTY FOR NONCOMPLIANCE.] A violation of an 30.33 executive order imposing the requirement in subdivision 1, 30.34 paragraph (a), clause (1), is a misdemeanor and, in addition to 30.35 any criminal penalty imposed, fish brought into or transported 30.36 within the state contrary to that executive order must be 31.1 confiscated, and a penalty of $10 for each fish must be imposed. 31.2 Sec. 53. Minnesota Statutes 1994, section 116J.552, 31.3 subdivision 2, is amended to read: 31.4 Subd. 2. [CLEANUP COSTS.] "Cleanup costs" or "costs" 31.5 meanmeans the costcosts of developing and implementing an31.6 approveda response action plan, but does not include 31.7 implementation costs incurred before the award of a grant unless 31.8 the application for the grant was submitted within 180 days 31.9 after the response action plan was approved by the commissioner 31.10 of the pollution control agency. 31.11 Sec. 54. Minnesota Statutes 1994, section 116J.555, 31.12 subdivision 2, is amended to read: 31.13 Subd. 2. [APPLICATION CYCLES; REPORTING TO LCWM.] (a) In 31.14 making grants, the commissioner shall establish regular31.15 semiannual application deadlines in which grants will be 31.16 authorized from all or part of the available appropriations of 31.17 money in the account. 31.18 (b) After each semiannual cycle in which grants are 31.19 awarded, the commissioner shall report to the legislative 31.20 commission on waste management the grants awarded and 31.21 appropriate supporting information describing each grant made. 31.22 This report must be made within 30 days after the grants are 31.23 awarded. 31.24 (c) The commissioner shall annually report to the 31.25 legislative commission on the status of the cleanup projects 31.26 undertaken under grants made under the programs. The 31.27 commissioner shall include in the annual report information on 31.28 the cleanup and development activities undertaken for the grants 31.29 made in that and previous fiscal years. The commissioner shall 31.30 make this report no later than 120 days after the end of the 31.31 fiscal year. 31.32 Sec. 55. Minnesota Statutes 1994, section 116J.873, 31.33 subdivision 3, is amended to read: 31.34 Subd. 3. [GRANT EVALUATION.] The commissioner shall 31.35 accept, review, and evaluate applications for grants to local 31.36 units of government made in accordance with rules adopted for 32.1 economic development grants in the small cities development 32.2 program. Projects must be evaluated based on the existence of 32.3 the following conditions: 32.4 (1) whether assistance is necessary to provide equity to 32.5 business owners who do not have the capacity to invest in a 32.6 project; 32.7 (2) whether there is an inability to secure sufficient 32.8 financing from other public or private sources at market 32.9 interest rates or on favorable market terms; 32.10 (3) whether assistance is necessary to attract out-of-state 32.11 businesses or to retain existing business within the state; and 32.12 (4) whether there are excessive public infrastructure or 32.13 improvement costs beyond the means of the affected community and 32.14 private participants in the project. 32.15 A grant or loan cannot be made based solely on a finding 32.16 that the condition in clause (3) exists. A finding must be made 32.17 that a condition in clause (1), (2), or (4) also exists. 32.18 Applications recommended for funding shall be submitted to 32.19 the commissioner. 32.20 Sec. 56. Minnesota Statutes 1994, section 116J.873, is 32.21 amended by adding a subdivision to read: 32.22 Subd. 5. [SPORTS FACILITY.] An economic recovery grant or 32.23 loan cannot be used for a project related to a sports facility. 32.24 For the purpose of this subdivision, "sports facility" means a 32.25 building that has a professional sports team as a principal 32.26 tenant. 32.27 Sec. 57. Minnesota Statutes 1994, section 116J.982, 32.28 subdivision 3, is amended to read: 32.29 Subd. 3. [CERTIFICATION; CORPORATIONS ELIGIBLE.] (a) The 32.30 commissioner shall certify a community development corporation 32.31 under this section if the corporation is a nonprofit corporation 32.32 incorporated under chapter 317A and meets the other criteria in 32.33 this subdivision. 32.34 (b) The corporation, in its articles of incorporation or 32.35 bylaws, must designate a low-income area as the specific 32.36 geographic community within which it will operate. Within 33.1 cities of the first class, a designated community must be an 33.2 identifiable neighborhood or a combination of neighborhoods but 33.3 may not be the entire city. Outside cities of the first class, 33.4 a designated community may be an identifiable neighborhood or 33.5 neighborhoods, or home rule charter or statutory cities, 33.6 townships, unincorporated areas, or combinations of those 33.7 entities, but may not be an entire economic development region 33.8 nor cross existing economic development region boundaries except 33.9 as provided in this section. 33.10 (c) The corporation's major purpose, in its articles of 33.11 incorporation or bylaws, must be economic development, 33.12 redevelopment, or housing in its designated community. 33.13 (d) The corporation must be tax exempt under section 501, 33.14 paragraph (c), clause (3), of the Internal Revenue Code of 1986, 33.15 as amended. 33.16 (e) The membership and board of directors of the 33.17 corporation must be representative of the designated community. 33.18 At least 20 percent of the directors shall have low incomes or 33.19 shall reside in low-income areas described in subdivision 1, 33.20 paragraph (e), clause (1), or the low-income subarea described 33.21 in subdivision 1, paragraph (e), clause (2). At least 60 33.22 percent of the directors must be residents of, or be employed 33.23 in, the designated community. Other directors shall be 33.24 business, financial, or civic leaders or 33.25 representatives-at-large of the designated community. At least 33.26 40 percent of the directors must reside in the designated 33.27 community. Notwithstanding the requirements of this paragraph, 33.28 a corporation which meets board structure requirements for a 33.29 community housing development corporation under Code of Federal 33.30 Regulations, title 24, part 92.2, is deemed to meet the board 33.31 membership requirements of this subdivision. 33.32 (f) The corporation shall not discriminate against any 33.33 persons on the basis of a status protected under chapter 363. 33.34 (g) The corporation shall demonstrate that it has or can 33.35 obtain the technical skills to analyze projects, that it is 33.36 familiar with available public and private funding sources and 34.1 economic development, redevelopment, and housing programs, and 34.2 that it is capable of packaging economic development, 34.3 redevelopment, and housing projects. 34.4 (h) The corporation must have completed two or more 34.5 economic development, redevelopment, or housing projects within 34.6 its designated community during the last three years. 34.7 Sec. 58. [116J.991] [PUBLIC ASSISTANCE TO BUSINESS; WAGE 34.8 AND JOB REQUIREMENTS.] 34.9 A business that receives state or local government 34.10 assistance for economic development or job growth purposes must 34.11 create a net increase in jobs in Minnesota within two years of 34.12 receiving the assistance. 34.13 The government agency providing the assistance must 34.14 establish wage level and job creation goals to be met by the 34.15 business receiving the assistance. A business that fails to 34.16 meet the goals must repay the assistance to the government 34.17 agency. 34.18 Each government agency must report the wage and job goals 34.19 and the results for each project in achieving those goals to the 34.20 department of trade and economic development. The department 34.21 shall compile and publish the results of the reports for the 34.22 previous calendar year by June 1 of each year. The reports of 34.23 the agencies to the department and the compilation report of the 34.24 department shall be made available to the public. 34.25 For the purpose of this section, "assistance" means a grant 34.26 or loan in excess of $25,000 or tax increment financing. 34.27 Sec. 59. Minnesota Statutes 1994, section 116M.16, 34.28 subdivision 2, is amended to read: 34.29 Subd. 2. [GIFTS; GRANTS; APPROPRIATION.] The board may 34.30 apply for, accept, and disburse gifts, grants, loans, or other 34.31 property from the United States, the state, private foundations, 34.32 or any other source. It may enter into an agreement required 34.33 for the gifts, grants, or loans and may hold, use, and dispose 34.34 of its assets in accordance with the terms of the gift, grant, 34.35 loan, or agreement. Money received by the board under this 34.36 subdivision must be deposited in a separate account in the state 35.1 treasury and invested by the state board of investment. The 35.2 amount deposited, including investment earnings, is appropriated 35.3 to the board to carry out its duties. 35.4 Sec. 60. Minnesota Statutes 1994, section 116M.18, 35.5 subdivision 4, is amended to read: 35.6 Subd. 4. [BUSINESS LOAN CRITERIA.] (a) The criteria in 35.7 this subdivision apply to loans made under the urban challenge 35.8 grant program. 35.9 (b) Loans must be made to businesses that are not likely to 35.10 undertake a project for which loans are sought without 35.11 assistance from the urban challenge grant program. 35.12 (c) A loan must be used for a project designed to benefit 35.13 persons in low-income areas through the creation of job or 35.14 business opportunities for them. Among loan applicants,35.15 priority must be given on the basis of the number of permanent35.16 jobs created or retained by the project and the proportion of35.17 nonpublic money leveraged by the loan.Priority must alsobe 35.18 given for loans to the lowest income areas. 35.19 (d) The minimum loan is $5,000 and the maximum is $150,000. 35.20 (e) With the approval of the commissioner, a loan may be35.21 used to provide up to 50 percent of the private investment35.22 required to qualify for a grant from the economic recovery35.23 account.35.24 (f)A loan must be matched by at least an equal amount of 35.25 new private investment. 35.26 (g)(f) A loan may not be used for a retail development 35.27 project. 35.28 (h)(g) The business must agree to work with job referral 35.29 networks that focus on minority applicants from low-income areas. 35.30 Sec. 61. Minnesota Statutes 1994, section 116M.18, is 35.31 amended by adding a subdivision to read: 35.32 Subd. 4a. [MICROENTERPRISE LOAN.] Urban challenge grants 35.33 may be used to make microenterprise loans to small, beginning 35.34 businesses, including a sole proprietorship. Microenterprise 35.35 loans are subject to this section except that: 35.36 (1) they may also be made to qualified retail businesses; 36.1 (2) they may be made for a minimum of $1,000 and a maximum 36.2 of $10,000; and 36.3 (3) they do not require a match. 36.4 Sec. 62. Minnesota Statutes 1994, section 116M.18, 36.5 subdivision 5, is amended to read: 36.6 Subd. 5. [REVOLVING FUND ADMINISTRATION; RULES.] (a) The 36.7 board shall establish a minimum interest rate for loans to 36.8 ensure that necessary loan administration costs are covered. 36.9 (b) Loan repayment amounts equal to one-half of the 36.10 principal and interest must be deposited in a revolving fund 36.11 created by the board for challenge grants. The remaining amount 36.12 of the loan repayment may be deposited in a revolving loan fund 36.13 created by the nonprofit corporation originating the loan being 36.14 repaid for further distribution, consistent with the loan 36.15 criteria specified in subdivision 4. 36.16 (c) Administrative expenses of the board and nonprofit 36.17 corporations with whom the board enters into agreements under 36.18 subdivision 2 may be paid out of the interest earned on 36.19 loans and out of interest earned on money invested by the state 36.20 board of investment under section 116M.16, subdivision 2. 36.21 Sec. 63. Minnesota Statutes 1994, section 116N.03, 36.22 subdivision 2, is amended to read: 36.23 Subd. 2. [GIFTS; GRANTS.] The board may apply for, accept, 36.24 and disburse gifts, grants, loans, or other property from the 36.25 United States, the state, private foundations, or any other 36.26 source. It may enter into an agreement required for the gifts, 36.27 grants, or loans and may hold, use, and dispose of its assets in 36.28 accordance with the terms of the gift, grant, loan, or 36.29 agreement. Money received by the board under this subdivision 36.30 must be deposited in a separate account in the state treasury 36.31 and invested by the state board of investment. The amount 36.32 deposited, including investment earnings, is appropriated to the 36.33 board to carry out its duties. 36.34 Sec. 64. Minnesota Statutes 1994, section 116N.08, 36.35 subdivision 5, is amended to read: 36.36 Subd. 5. [LOAN CRITERIA.] The following criteria apply to 37.1 loans made under the challenge grant program: 37.2 (a) Loans must be made to businesses that are not likely to 37.3 undertake a project for which loans are sought without 37.4 assistance from the challenge grant program. 37.5 (b) A loan must be used for a project designed principally 37.6 to benefit low-income persons through the creation of job or 37.7 business opportunities for them. Among loan applicants,37.8 priority must be given on the basis of the number of permanent37.9 jobs created or retained by the project and the proportion of37.10 nonstate money leveraged by the revolving loan.37.11 (c) The minimum loan is $5,000 and the maximum is $100,000. 37.12 (d) With the approval of the commissioner, a loan may be37.13 used to provide up to 50 percent of the private investment37.14 required to qualify for a grant from the economic recovery37.15 account.37.16 (e)A loan may not exceed 50 percent of the total cost of 37.17 an individual project. 37.18 (f)(e) A loan may not be used for a retail development 37.19 project. 37.20 (g)(f) A business applying for a loan, except a 37.21 microenterprise loan under subdivision 5a, must be sponsored by 37.22 a resolution of the governing body of the local governmental 37.23 unit within whose jurisdiction the project is located. 37.24 Sec. 65. Minnesota Statutes 1994, section 116N.08, is 37.25 amended by adding a subdivision to read: 37.26 Subd. 5a. [MICROENTERPRISE LOANS.] Challenge grants may be 37.27 used to make microenterprise loans to small, beginning 37.28 businesses, including a sole proprietorship. Microenterprise 37.29 loans are subject to this section except that: 37.30 (1) they may also be made to qualified retail businesses; 37.31 (2) they may be for a minimum of $1,000 and a maximum of 37.32 $10,000; and 37.33 (3) they do not require a match. 37.34 Sec. 66. Minnesota Statutes 1994, section 116N.08, 37.35 subdivision 6, is amended to read: 37.36 Subd. 6. [REVOLVING FUND ADMINISTRATION.] (a) The board 38.1 shall establish a minimum interest rate for loans to ensure that 38.2 necessary management costs are covered. 38.3 (b) Loan repayment amounts equal to one-half of the 38.4 principal and interest must be deposited in the rural 38.5 rehabilitation revolving fund for challenge grants to the region 38.6 from which the money was originally designated. The remaining 38.7 amount of the loan repayment may be deposited in the regional 38.8 revolving loan fund for further distribution by the regional 38.9 organization, consistent with the loan criteria specified in 38.10 subdivisions 4 and 5. 38.11 (c) The first $1,000,000 of revolving loans for each region 38.12 must be matched by nonstate sources. The matching requirement 38.13 does not apply to loans made under subdivision 6, clause (b). 38.14 (d) Administrative expenses of each organization may be 38.15 paid out of the interest earned on loans and on interest earned 38.16 on money invested by the state board of investment under section 38.17 116N.03, subdivision 2. 38.18 Sec. 67. Minnesota Statutes 1994, section 124.85, is 38.19 amended by adding a subdivision to read: 38.20 Subd. 2c. [PAYMENT OF REVIEW EXPENSES.] The commissioner 38.21 of public service may charge a school district requesting 38.22 services under subdivisions 2a and 2b actual costs incurred by 38.23 the department while conducting the review, or one-half percent 38.24 of the total identified project cost, whichever is less. Before 38.25 conducting the review, the commissioner shall notify a school 38.26 district requesting review services that expenses will be 38.27 charged to the school district. The commissioner shall bill the 38.28 school district upon completion of the contract review. Money 38.29 collected by the commissioner under this subdivision must be 38.30 deposited in the general fund. A district may include the cost 38.31 of a review by the commissioner under subdivision 2a in a 38.32 contract made pursuant to this section. 38.33 Sec. 68. Minnesota Statutes 1994, section 175.171, is 38.34 amended to read: 38.35 175.171 [POWERS AND DUTIES, DEPARTMENT OF LABOR AND 38.36 INDUSTRY.] 39.1 The department of labor and industry shall have the 39.2 following powers and duties: 39.3 (1) to exercise all powers and perform all duties of the 39.4 department consistent with the provisions of this chapter; 39.5 (2) to adopt reasonable and proper rules relative to the 39.6 exercise of its powers and duties, and proper rules to govern 39.7 its proceedings and to regulate the mode and manner of all 39.8 investigations and hearings, which shall not be effective until 39.9 ten days after their adoption, and a copy of these rules shall 39.10 be delivered to every citizen making application therefor; 39.11 (3) to collect, collate, and publish statistical and other 39.12 information relating to the work under its jurisdiction, to keep 39.13 records and to make public reports in its judgment necessary; 39.14 and on or before October 1 in each even-numbered year the 39.15 department shall report its doings, conclusions, and 39.16 recommendations to the governor, which report shall be printed 39.17 and distributed by November 15 of each even-numbered year to the 39.18 legislature pursuant to section 3.195, and otherwise as the 39.19 department may direct; 39.20 (4) to establish and maintain branch offices as needed for 39.21 the conduct of its affairs; and 39.22 (5) to provide direct computer access to and electronic 39.23 data interchange of public and nonpublic workers' compensation 39.24 data and other data maintained by the department and to charge a 39.25 reasonable fee for the access and electronic data interchange, 39.26 except that in no circumstances may a fee be charged an employee 39.27 or the employee's attorney seeking access and data interchange 39.28 to information about the employee's claim or circumstances. 39.29 Notwithstanding any other law to the contrary, the fee receipts 39.30 for providing the computer access to and electronic data 39.31 interchange of data shall be deposited in the special 39.32 compensation fund. Access to and electronic data interchange of 39.33 nonpublic data shall be only as authorized by the subject of the 39.34 data, as authorized in chapter 13, or as otherwise authorized by 39.35 law. 39.36 Sec. 69. Minnesota Statutes 1994, section 176.011, 40.1 subdivision 7a, is amended to read: 40.2 Subd. 7a. (1) [COMPENSATION JUDGE.] "Compensation judge" 40.3 means a workers' compensation judge at the office of 40.4 administrative hearings. 40.5 (2) [CALENDAR JUDGE.] "Calendar judge" means a workers' 40.6 compensation judge at the office of administrative hearings. 40.7 (3) [SETTLEMENT JUDGE.] "Settlement judge" means a 40.8 compensation judge at the department of labor and industry. 40.9 Settlement judges may conduct settlement conferences, issue 40.10 summary decisions, approve settlements and issue awards thereon, 40.11 determine petitions for attorney fees and costs, and make other 40.12 determinations, decisions, orders, and awards as may be 40.13 delegated to them by the commissioner. Settlement judges must 40.14 be learned in the law. 40.15 Sec. 70. Minnesota Statutes 1994, section 176.231, is 40.16 amended by adding a subdivision to read: 40.17 Subd. 12. [REPORTS; ELECTRONIC MONITORING.] Beginning July 40.18 1, 1995, the commissioner shall monitor electronically all 40.19 reports of injury, all payments for reported injuries, and 40.20 compliance with all reporting and payment timelines. 40.21 Sec. 71. [176.445] [SETTLEMENT JUDGES.] 40.22 Notwithstanding section 176.011, subdivision 27, any 40.23 provision in chapter 175 setting out general power of the 40.24 commissioner, or any other law to the contrary: 40.25 (1) The chief settlement judge at the department is the 40.26 administrator and supervisor of all dispute resolute functions 40.27 and personnel, and reports directly to the commissioner. 40.28 (2) The commissioner may delegate authority only to 40.29 settlement judges to make determinations under the procedure in 40.30 sections 176.106, 176.238, and 176.239 and to approve 40.31 settlements of claims under section 176.521. A settlement judge 40.32 must preside at all workers' compensation settlement conferences 40.33 conducted at the department. 40.34 Sec. 72. [178.20] [LABOR EDUCATION ADVANCEMENT GRANT 40.35 PROGRAM.] 40.36 The commissioner shall establish the labor education 41.1 advancement grant program for the purpose of facilitating the 41.2 participation of minorities and women in apprenticeable trades 41.3 and occupations. The commissioner shall award grants to 41.4 community-based organizations serving the targeted populations 41.5 on a competitive request-for-proposal basis. Interested 41.6 organizations shall apply for the grants in a form prescribed by 41.7 the commissioner. As part of the application process, 41.8 applicants must provide a statement of need for the grant, a 41.9 description of the targeted population and apprenticeship 41.10 opportunities, a description of activities to be funded by the 41.11 grant, evidence supporting the ability to deliver services, 41.12 information related to coordinating grant activities with other 41.13 employment and training programs, identification of matching 41.14 funds, a budget, and performance objectives. Each submitted 41.15 application shall be evaluated for completeness and 41.16 effectiveness of the proposed grant activity. 41.17 Sec. 73. Minnesota Statutes 1994, section 207A.01, is 41.18 amended to read: 41.19 207A.01 [PRESIDENTIAL PRIMARY.] 41.20 A presidential primary must be held on the first Tuesday in 41.21 April of each year after 1999 in which a president and vice 41.22 president of the United States are to be nominated and elected, 41.23 at which the voters of this state may express their preference 41.24 among the candidates of the major political party of their 41.25 choice, for that party's nomination to be president of the 41.26 United States or may vote for uncommitted delegates to the 41.27 national party convention. For the purposes of sections 207A.01 41.28 to 207A.07, "political party" or "party" means a political party 41.29 as defined in section 200.02, subdivision 7. 41.30 Sec. 74. Minnesota Statutes 1994, section 216B.16, 41.31 subdivision 2, is amended to read: 41.32 Subd. 2. [SUSPENSION OF PROPOSED RATES; HEARING; FINAL 41.33 DETERMINATION DEFINED.] (a) Whenever there is filed with the 41.34 commission a schedule modifying or resulting in a change in any 41.35 rates then in force as provided in subdivision 1, the commission 41.36 may suspend the operation of the schedule by filing with the 42.1 schedule of rates and delivering to the affected utility a 42.2 statement in writing of its reasons for the suspension at any 42.3 time before the rates become effective. The suspension shall 42.4 not be for a longer period than ten months beyond the initial 42.5 filing date except as provided in this subdivision or 42.6 subdivision 1a. During the suspension the commission shall 42.7 determine whether all questions of the reasonableness of the 42.8 rates requested raised by persons deemed interested or by the 42.9 administrative division of the department of public service can 42.10 be resolved to the satisfaction of the commission. If the 42.11 commission finds that all significant issues raised have not 42.12 been resolved to its satisfaction, or upon petition by ten 42.13 percent of the affected customers or 250 affected customers, 42.14 whichever is less, it shall refer the matter to the office of 42.15 administrative hearings with instructions for a public hearing 42.16 as a contested case pursuant to chapter 14, except as otherwise 42.17 provided in this section. The commission may order that the 42.18 issues presented by the proposed rate changes be bifurcated into 42.19 two separate hearings as follows: (1) determination of the 42.20 utility's revenue requirements and (2) determination of the rate 42.21 design. Upon issuance of both administrative law judge reports, 42.22 the issues shall again be joined for consideration and final 42.23 determination by the commission. All prehearing discovery 42.24 activities of state agency intervenors shall be consolidated and 42.25 conducted by the department of public service. If the 42.26 commission does not make a final determination concerning a 42.27 schedule of rates within ten months after the initial filing 42.28 date, the schedule shall be deemed to have been approved by the 42.29 commission; except if: 42.30 (1) an extension of the procedural schedule has been 42.31 granted under subdivision 1a, in which case the schedule of 42.32 rates is deemed to have been approved by the commission on the 42.33 last day of the extended period of suspension; or 42.34 (2) a settlement has been submitted to and rejected by the 42.35 commission and the commission does not make a final 42.36 determination concerning the schedule of rates, the schedule of 43.1 rates is deemed to have been approved 60 days after the initial 43.2 or, if applicable, the extended period of suspension. 43.3 (b) If the commission finds that it has insufficient time 43.4 during the suspension period to make a final determination of a 43.5 case involving changes in general rates because of the need to 43.6 make a final determinationsdetermination of otheranother 43.7 previously filed casescase involving changes in general rates 43.8 under this section or section 237.075, the commission may extend 43.9 the suspension period to the extent necessary to allow itself 20 43.10 working days to make the final determination after it has made a 43.11 final determinationsdetermination in the previously filed cases43.12 case. An extension of the suspension period under this 43.13 paragraph does not alter the setting of interim rates under 43.14 subdivision 3. 43.15 (c) For the purposes of this section, "final determination" 43.16 means the initial decision of the commission and not any order 43.17 which may be entered by the commission in response to a petition 43.18 for rehearing or other further relief. The commission may 43.19 further suspend rates until it determines all those petitions. 43.20 Sec. 75. Minnesota Statutes 1994, section 216B.16, is 43.21 amended by adding a subdivision to read: 43.22 Subd. 12a. [EXEMPTION FOR SMALL ELECTRIC UTILITY 43.23 FRANCHISE.] (a) An electric utility, operating as such in a 43.24 bordering state and having fewer than 200 customers in 43.25 Minnesota, is exempt from this section if the utility: 43.26 (1) charges Minnesota customers the same rates as those 43.27 charged to customers in the bordering state; 43.28 (2) provides 60-day notice to the commission of rate 43.29 increases for its Minnesota customers; 43.30 (3) provides individual, written notice of rate increases 43.31 to its Minnesota customers; 43.32 (4) provides the commission with schedules of rates and 43.33 tariffs charged in the bordering state and revenues by class 43.34 under the former and proposed rates; and 43.35 (5) maintains an up-to-date tariff book with the department. 43.36 (b) The commission may initiate an investigation under 44.1 section 216B.17, on its own motion or upon customer complaint 44.2 with respect to the utility's rates and practices in Minnesota. 44.3 Sec. 76. Minnesota Statutes 1994, section 216B.2424, is 44.4 amended to read: 44.5 216B.2424 [BIOMASS POWER MANDATE.] 44.6 A public utility, as defined in section 216B.02, 44.7 subdivision 4, that operates a nuclear-powered electric 44.8 generating plant within this state must , by December 31, 1998,44.9 construct and operate, purchase, or contract to construct and 44.10 operate (1) by December 31, 1998, 50 megawatts of electric 44.11 energy installed capacity generated by farm grown closed-loop 44.12 biomass scheduled to be operational by December 31, 2001; and 44.13 (2) by December 31, 1998, an additional 75 megawatts of 44.14 installed capacity so generated scheduled to be operational by 44.15 December 31, 2002. Of the total 125 megawatts of biomass 44.16 electric energy installed capacity required under this section, 44.17 no more than 75 megawatts may be provided by a single project. 44.18 Of the 75 megawatts of biomass electric energy installed 44.19 capacity required under clause (2), no more than 25 megawatts of 44.20 this capacity may be provided by a St. Paul district heating and 44.21 cooling system cogeneration facility utilizing waste wood as a 44.22 primary fuel source. The public utility must accept and 44.23 consider on an equal basis with other proposals a proposal to 44.24 satisfy the requirements of this section that includes a project 44.25 that exceeds the megawatt capacity requirements of either clause 44.26 (1) or (2) and that proposes to sell the excess capacity to the 44.27 public utility or to other purchasers. 44.28 Sec. 77. Minnesota Statutes 1994, section 216B.27, 44.29 subdivision 4, is amended to read: 44.30 Subd. 4. [DEADLINE TO GRANT APPLICATION.] Any application 44.31 for a rehearing not granted within 2060 days from the date of 44.32 filing thereof, shall be deemed denied. 44.33 Sec. 78. Minnesota Statutes 1994, section 237.701, 44.34 subdivision 1, is amended to read: 44.35 Subdivision 1. [FUND CREATED; AUTHORIZED EXPENDITURES.] 44.36 The telephone assistance fund is created as a separate account 45.1 in the state treasury to consist of amounts received by the 45.2 department of administration representing the surcharge 45.3 authorized by section 237.70, subdivision 6, and amounts earned 45.4 on the fund assets. Money in the fund may be used only for: 45.5 (1) reimbursement to telephone companies for expenses and 45.6 credits allowed in section 237.70, subdivision 7, paragraph (d), 45.7 clause (5); 45.8 (2) reimbursement of the administrative expenses of the 45.9 department of human services to implement sections 237.69 to 45.10 237.71, not to exceed $314,000 annually; and45.11 (3) reimbursement of the administrative expenses of the 45.12 commission not to exceed $25,000 annually; and 45.13 (4) reimbursement of the statewide indirect cost of the 45.14 commission. 45.15 Sec. 79. Minnesota Statutes 1994, section 245A.11, 45.16 subdivision 2, is amended to read: 45.17 Subd. 2. [PERMITTED SINGLE-FAMILY RESIDENTIAL USE.] 45.18 Residential programs with a licensed capacity of six or fewer 45.19 persons shall be considered a permitted single-family 45.20 residential use of property for the purposes of zoning and other 45.21 land use regulations, except that a residential program whose 45.22 primary purpose is to treat juveniles who have violated criminal 45.23 statutes relating to sex offenses or have been adjudicated 45.24 delinquent on the basis of conduct in violation of criminal 45.25 statutes relating to sex offenses shall not be considered a 45.26 permitted use. Programs otherwise allowed under this 45.27 subdivision shall not be prohibited by operation of restrictive 45.28 covenants or similar restrictions, regardless of when entered 45.29 into, which cannot be met because of the nature of the licensed 45.30 program, including provisions which require the home's occupants 45.31 be related, and that the home must be occupied by the owner, or 45.32 similar provisions. 45.33 Sec. 80. Minnesota Statutes 1994, section 268A.01, 45.34 subdivision 4, is amended to read: 45.35 Subd. 4. [VOCATIONAL REHABILITATION SERVICES.] "Vocational 45.36 rehabilitation services" means those services and goods so 46.1 defined in the federal Rehabilitation Act of 1973, as amended, 46.2 and section 268A.03, clause (b). 46.3 Sec. 81. Minnesota Statutes 1994, section 268A.01, 46.4 subdivision 5, is amended to read: 46.5 Subd. 5. [PERSON WITH A DISABILITY.] "Person with a 46.6 disability" means a person who because of a substantial 46.7 physical, mental, or emotional disability or dysfunction46.8 requires special services in order to enjoy the benefits of 46.9 society. 46.10 Sec. 82. Minnesota Statutes 1994, section 268A.01, 46.11 subdivision 6, is amended to read: 46.12 Subd. 6. [REHABILITATION FACILITY.] "Rehabilitation 46.13 facility" means an entity which meets the definition 46.14 of community rehabilitation facilityprogram in the federal 46.15 Rehabilitation Act of 1973, as amended ;. However, for the 46.16 purposes of sections 268A.03, paragraph (a), 268A.06, 268A.08, 46.17 and 268A.09268A.15, rehabilitation facility means an entity 46.18 which is operated for the primary purpose of 46.19 providing remunerativeor facilitating employment to thosefor 46.20 persons with a severe disability who, as a result of physical or46.21 mental disability, are unable to participate in competitive46.22 employment. A rehabilitation facility shall supply such46.23 employment (1) as a step in the rehabilitation process for those46.24 who cannot be readily absorbed in the competitive labor market,46.25 or (2) during such time as employment opportunities for them in46.26 the competitive labor market do not exist. 46.27 Sec. 83. Minnesota Statutes 1994, section 268A.01, 46.28 subdivision 9, is amended to read: 46.29 Subd. 9. [ LONG-TERMCENTER-BASED EMPLOYMENT PROGRAM46.30 SUBPROGRAM.] " Long-termCenter-based employment program46.31 subprogram" means a programemployment which provides paid work 46.32 on the premises of a rehabilitation facility and training 46.33 services or other services necessary for employment on or off 46.34 the premises and which does not include work activityof the 46.35 rehabilitation facility. 46.36 Sec. 84. Minnesota Statutes 1994, section 268A.01, 47.1 subdivision 10, is amended to read: 47.2 Subd. 10. [EXTENDED EMPLOYMENT PROGRAMSPROGRAM.] 47.3 "Extended employment programsprogram" means the following47.4 programs which may be offered by a rehabilitation47.5 facility:center-based employment and supported employment 47.6 subprograms. 47.7 (1) long-term employment program;47.8 (2) work activity program;47.9 (3) work component program; and47.10 (4) supported employment program.47.11 Sec. 85. Minnesota Statutes 1994, section 268A.03, is 47.12 amended to read: 47.13 268A.03 [POWERS AND DUTIES.] 47.14 The commissioner shall: 47.15 (a) certify the rehabilitation facilities to offer extended 47.16 employment programs, grant funds to the extended employment 47.17 programs, and perform the duties as specified in section 268A.0947.18 268A.15; 47.19 (b) provide vocational rehabilitation services to persons 47.20 with disabilities in accordance with the state plan for 47.21 vocational rehabilitation. These services include but are not 47.22 limited to: diagnostic and related services incidental to 47.23 determination of eligibility for services to be provided, 47.24 including medical diagnosis and vocational diagnosis; vocational 47.25 counseling, training and instruction, including personal 47.26 adjustment training; physical restoration, including corrective 47.27 surgery, therapeutic treatment, hospitalization and prosthetic 47.28 and orthotic devices, all of which shall be obtained from 47.29 appropriate established agencies; transportation; occupational 47.30 and business licenses or permits, customary tools and equipment; 47.31 maintenance; books, supplies, and training materials; initial 47.32 stocks and supplies; placement; on-the-job skill training and 47.33 time-limited postemployment services leading to supported 47.34 employment; acquisition of vending stands or other equipment, 47.35 initial stocks and supplies for small business enterprises; 47.36 supervision and management of small business enterprises, 48.1 merchandising programs, or services rendered by severely 48.2 disabled persons. Persons with a disability are entitled to 48.3 free choice of vendor for any medical, dental, prosthetic, or 48.4 orthotic services provided under this paragraph; 48.5 (c) expend funds and provide technical assistance for the 48.6 establishment, improvement, maintenance, or extension of public 48.7 and other nonprofit rehabilitation facilities or centers; 48.8 (d) maintain a contractual or regulatory relationship with 48.9 the United States as authorized by the Social Security Act, as 48.10 amended. Under this relationship, the state will undertake to 48.11 make determinations referred to in those public laws with 48.12 respect to all individuals in Minnesota, or with respect to a 48.13 class or classes of individuals in this state that is designated 48.14 in the agreement at the state's request. It is the purpose of 48.15 this relationship to permit the citizens of this state to obtain 48.16 all benefits available under federal law; 48.17 (e) provide an in-service training program for division of 48.18 rehabilitation services employees by paying for its direct costs 48.19 with state and federal funds; 48.20 (f) conduct research and demonstration projects; provide 48.21 training and instruction, including establishment and 48.22 maintenance of research fellowships and traineeships, along with 48.23 all necessary stipends and allowances; disseminate information 48.24 to persons with a disability and the general public; and provide 48.25 technical assistance relating to vocational rehabilitation and 48.26 independent living; 48.27 (g) receive and disburse pursuant to law money and gifts 48.28 available from governmental and private sources including, but 48.29 not limited to, the federal Department of Education and the 48.30 Social Security Administration, for the purpose of vocational 48.31 rehabilitation or independent living; 48.32 (h) design all state plans for vocational rehabilitation or 48.33 independent living services required as a condition to the 48.34 receipt and disbursement of any money available from the federal 48.35 government; 48.36 (i) cooperate with other public or private agencies or 49.1 organizations for the purpose of vocational rehabilitation or 49.2 independent living. Money received from school districts, 49.3 governmental subdivisions, mental health centers or boards, and 49.4 private nonprofit organizations is appropriated to the 49.5 commissioner for conducting joint or cooperative vocational 49.6 rehabilitation or independent living programs; 49.7 (j) enter into contractual arrangements with 49.8 instrumentalities of federal, state, or local government and 49.9 with private individuals, organizations, agencies, or facilities 49.10 with respect to providing vocational rehabilitation or 49.11 independent living services; 49.12 (k) take other actions required by state and federal 49.13 legislation relating to vocational rehabilitation, independent 49.14 living, and disability determination programs; 49.15 (l) hire staff and arrange services and facilities 49.16 necessary to perform the duties and powers specified in this 49.17 section; 49.18 (m) adopt, amend, suspend, or repeal rules necessary to 49.19 implement or make specific programs that the commissioner by 49.20 sections 268A.01 to 268A.10268A.15 is empowered to administer; 49.21 and 49.22 (n) contact any person with traumatic brain injury or 49.23 spinal cord injury reported by the commissioner of health under 49.24 section 144.664, subdivision 3, and notify the person, or the 49.25 person's parent or guardian if the person is a minor or is 49.26 mentally incompetent, of services available to the person, 49.27 eligibility requirements and application procedures for public 49.28 programs, and other information the commissioner believes may be 49.29 helpful to the person to make appropriate use of available 49.30 rehabilitation services. 49.31 Sec. 86. Minnesota Statutes 1994, section 268A.06, 49.32 subdivision 1, is amended to read: 49.33 Subdivision 1. [APPLICATION.] Any city, town, county, 49.34 nonprofit corporation, state regional center, or any combination 49.35 thereof, may apply to the commissioner for assistance in 49.36 establishing or operating a community rehabilitation facility. 50.1 Application for assistance shall be on forms suppliedprescribed 50.2 by the commissioner. Each applicant shall annually submit to 50.3 the commissioner its plan and budget for the next fiscal year. 50.4 No applicant shall be eligible for a grant hereunder unless its 50.5 plan and budget have been approved by the commissioner. 50.6 Sec. 87. Minnesota Statutes 1994, section 268A.07, is 50.7 amended to read: 50.8 268A.07 [REQUIREMENTS FOR CERTIFICATION.] 50.9 Subdivision 1. [BENEFITS.] A rehabilitation facility must, 50.10 as a condition for receiving program certification, provide 50.11 employees in a long-termcenter-based employment program the50.12 with personnel benefits prescribed in rules adopted by the 50.13 commissioner of the department of economic security. 50.14 Subd. 2. [GRIEVANCE PROCEDURE.] A rehabilitation facility 50.15 must, as a condition for receiving program certification, 50.16 provide to employees in a long-termcenter-based 50.17 employment programsubprograms, a grievance procedure which has 50.18 as its final step provisions for final and binding arbitration. 50.19 Sec. 88. Minnesota Statutes 1994, section 268A.08, 50.20 subdivision 1, is amended to read: 50.21 Subdivision 1. [APPOINTMENT; MEMBERSHIP.] Every city, 50.22 town, county, nonprofit corporation, or combination thereof 50.23 establishing a rehabilitation facility shall appoint a 50.24 rehabilitation facility board of no fewer than nine members 50.25 before becoming eligible for the assistance provided by sections 50.26 268A.06 to 268A.09268A.15. When any city, town, or county 50.27 singly establishes such a rehabilitation facility, the board 50.28 shall be appointed by the chief executive officer of the city or 50.29 the chair of the governing board of the county or town. When 50.30 any combination of cities, towns, counties, or nonprofit 50.31 corporations establishes a rehabilitation facility, the chief 50.32 executive officers of the cities, nonprofit corporations and the 50.33 chairs of the governing bodies of the counties or towns shall 50.34 appoint the board. If a nonprofit corporation singly 50.35 establishes a rehabilitation facility, the corporation shall 50.36 appoint the board of directors. Membership on a board shall be 51.1 representative of the community served and shall include a 51.2 person with a disability. One-third to one-half of the board 51.3 shall be representative of industry or business. The remaining 51.4 members should be representative of lay associations for persons 51.5 with a disability, labor, the general public, and education, 51.6 welfare, medical, and health professions. Nothing in sections 51.7 268A.06 to 268A.09268A.15 shall be construed to preclude the 51.8 appointment of elected or appointed public officials or members 51.9 of the board of directors of the sponsoring nonprofit 51.10 corporation to the board, so long as representation described 51.11 above is preserved. If a state regional center establishes an 51.12 extended employment program, the chief executive officer of the 51.13 state regional center shall perform the functions of the 51.14 rehabilitation facility board as prescribed in subdivision 2. 51.15 The regional center is not required to establish a separate 51.16 governing body as a board. The state regional center shall 51.17 establish an advisory committee following the membership 51.18 representation requirements of this subdivision. If a county 51.19 establishes an extended employment program and manages the 51.20 program with county employees, the governing board shall be the 51.21 county board of commissioners and other provisions of this 51.22 chapter pertaining to membership on the governing board do not 51.23 apply. 51.24 Sec. 89. Minnesota Statutes 1994, section 268A.08, 51.25 subdivision 2, is amended to read: 51.26 Subd. 2. [DUTIES.] Subject to the provisions of sections 51.27 268A.06 to 268A.09268A.15 and the rules of the department, each 51.28 rehabilitation facility board shall: 51.29 (a) review and evaluate the need for extended employment 51.30 programs offered by the rehabilitation facility provided 51.31 pursuant to sections 268A.06 to 268A.09268A.15 and report 51.32 thereon to the commissioner and, when indicated, the public, 51.33 together with recommendations for additional extended employment 51.34 programs; 51.35 (b) recruit and promote local financial support for the51.36 extended employment programs from private sources such as 52.1 community chests, business, industrial and private foundations, 52.2 voluntary agencies and other lawful sources and promote public 52.3 support for municipal and county appropriations; 52.4 (c) promote, arrange, and implement working agreements with 52.5 other educational and social service agencies both public and 52.6 private and any other allied agencies; 52.7 (d) advise the commissioner on the adoption and 52.8 implementation of policies to stimulate effective community 52.9 relations; 52.10 (e) review the annual plan and budget and make 52.11 recommendations thereon; 52.12 (f) when thean extended employment program offered by the 52.13 rehabilitation facility is certified, act as the administrator 52.14 of the rehabilitation facility and its programssubprograms for 52.15 purposes of this chapter. 52.16 Sec. 90. Minnesota Statutes 1994, section 268A.13, is 52.17 amended to read: 52.18 268A.13 [EMPLOYMENT SUPPORT SERVICES FOR PERSONS WITH 52.19 MENTAL ILLNESS.] 52.20 The commissioner of economic security, in cooperation with 52.21 the commissioner of human services, shall develop a statewide 52.22 program of grants to provide services for persons with mental 52.23 illness in supported employment. Projects funded under this 52.24 section must: (1) assist persons with mental illness in 52.25 obtaining and retaining employment; (2) emphasize individual 52.26 community placements for clients; (3) ensure interagency 52.27 collaboration at the local level between vocational 52.28 rehabilitation field offices, county service agencies, community 52.29 support programs operating under the authority of section 52.30 245.4712, and community rehabilitation providers, in assisting 52.31 clients; and (4) involve clients in the planning, development, 52.32 oversight, and delivery of support services. Project funds may 52.33 not be used to provide services in segregated settings such as 52.34 long-termthe center-based employment or work activity programs52.35 subprograms as defined in section 268A.01. 52.36 The commissioner of economic security, in consultation with 53.1 the commissioner of human services, shall develop a request for 53.2 proposals which is consistent with the requirements of this 53.3 section and which specifies the types of services that must be 53.4 provided by grantees. Projects shall be funded for state fiscal 53.5 year 1995 and priority for funding shall be given to 53.6 organizations with experience in developing innovative 53.7 employment support services for persons with mental illness. 53.8 Each applicant for funds under this section shall submit an 53.9 evaluation protocol as part of the grant application. 53.10 Sec. 91. [268A.15] [EXTENDED EMPLOYMENT PROGRAM.] 53.11 Subdivision 1. [ADMINISTRATION.] The department of 53.12 economic security shall administer this section through the 53.13 division of rehabilitation services. The department may employ 53.14 staff as required to administer this section and may accept and 53.15 receive funds from nonstate sources for the purpose of 53.16 implementing this section. 53.17 Subd. 2. [PURPOSE.] The purpose of the extended employment 53.18 program is to provide the ongoing services necessary to maintain 53.19 and advance the employment of persons with severe disabilities. 53.20 Employment under this section must encompass the broad range of 53.21 employment choices available to all persons and promote an 53.22 individual's self-sufficiency and financial independence. 53.23 Subd. 3. [RULE AUTHORITY.] The commissioner shall adopt 53.24 rules on an individual's eligibility for the extended employment 53.25 program, the certification of rehabilitation facilities, and the 53.26 methods, criteria, and units of distribution for the allocation 53.27 of state grant funds to certified rehabilitation facilities. In 53.28 determining the allocation, the commissioner must consider the 53.29 economic conditions of the community and the performance of 53.30 rehabilitation facilities relative to their impact on the 53.31 economic status of workers in the extended employment program. 53.32 Subd. 4. [EVALUATION.] The commissioner of economic 53.33 security shall evaluate the extended employment program to 53.34 determine whether the purpose of extended employment as defined 53.35 in subdivision 2 is being achieved. The evaluation must include 53.36 an assessment of whether workers in the extended employment 54.1 program are satisfied with their employment. A written report 54.2 of this evaluation must be prepared at least every two years and 54.3 made available to the public. 54.4 Subd. 5. [TECHNICAL ASSISTANCE.] The commissioner of 54.5 economic security shall provide technical assistance within 54.6 available resources to rehabilitation facilities. 54.7 Subd. 6. [GRANTS.] The commissioner may provide innovation 54.8 and expansion grants to rehabilitation facilities to encourage 54.9 the development, demonstration, or dissemination of innovative 54.10 business practices, training programs, and service delivery 54.11 methods that: 54.12 (1) expand and improve employment opportunities for persons 54.13 with severe disabilities who are unserved or underserved by the 54.14 extended employment program; and 54.15 (2) increase the ability of persons with severe 54.16 disabilities to use new and emerging technologies in employment 54.17 settings, and foster the capacity of rehabilitation facilities 54.18 and employers to promote the integration of individuals with 54.19 severe disabilities into the workplace and the mainstream of 54.20 community life. 54.21 The grants must require collaboration at the local level 54.22 among vocational rehabilitation field offices, county social 54.23 service and planning agencies, rehabilitation facilities, and 54.24 employers. 54.25 Subd. 7. [WITHDRAWAL OF FUNDS.] The commissioner may 54.26 withdraw funds from a rehabilitation facility that is not being 54.27 administered in accordance with its approved plan and budget 54.28 unless a modified plan and budget is submitted to and approved 54.29 by the commissioner, and implemented within a reasonable time. 54.30 The commissioner may withdraw funds from a rehabilitation 54.31 facility not being administered according to department rules, 54.32 or not meeting mandatory standards for certification, unless a 54.33 plan bringing the rehabilitation facility into compliance with 54.34 the rules and standards is submitted to and approved by the 54.35 commissioner, and implemented within a reasonable time. Funds 54.36 withdrawn shall, after reasonable notice and opportunity for 55.1 hearing, be reallocated by the commissioner to other 55.2 rehabilitation facilities. 55.3 Sec. 92. Minnesota Statutes 1994, section 298.22, 55.4 subdivision 2, is amended to read: 55.5 Subd. 2. There is hereby created the iron range resources 55.6 and rehabilitation board, consisting of 11 members, five of whom 55.7 shall be state senators appointed by the subcommittee on 55.8 committees of the rules committee of the senate, and five of 55.9 whom shall be representatives, appointed by the speaker of the 55.10 house of representatives, their terms of office to commence on 55.11 May 1, 1943, and continue until January 3rd, 1945, or until 55.12 their successors are appointed and qualified. Their successors 55.13 shall be appointed each two years in the same manner as the 55.14 original members were appointed, in January of every second 55.15 year, commencing in January, 1945. The 11th member of said 55.16 board shall be the commissioner of natural resources of the 55.17 state of Minnesota. Vacancies on the board shall be filled in 55.18 the same manner as the original members were chosen. At least a 55.19 majority of the legislative members of the board shall be 55.20 elected from state senatorial or legislative districts in which 55.21 over 50 percent of the residents reside within a tax relief area 55.22 as defined in section 273.134. All expenditures and projects 55.23 made by the commissioner of iron range resources and 55.24 rehabilitation shall first be submitted to said iron range 55.25 resources and rehabilitation board which shall recommendfor 55.26 approval by at least eight board members or disapproval or55.27 modificationof expenditures and projects for rehabilitation 55.28 purposes as provided by this section, and the method, manner, 55.29 and time of payment of all said funds proposed to be disbursed 55.30 shall be first approved or disapproved by said board. The board 55.31 shall biennially make its report to the governor and the 55.32 legislature on or before November 15 of each even numbered 55.33 year. The expenses of said board shall be paid by the state of 55.34 Minnesota from the funds raised pursuant to this section. 55.35 Sec. 93. Minnesota Statutes 1994, section 298.223, 55.36 subdivision 2, is amended to read: 56.1 Subd. 2. [ADMINISTRATION.] The taconite environmental 56.2 protection fund shall be administered by the commissioner of the 56.3 iron range resources and rehabilitation board. The commissioner 56.4 shall by September 1 of each year preparesubmit to the board a 56.5 list of projects to be funded from the taconite environmental 56.6 protection fund, with such supporting information including 56.7 description of the projects, plans, and cost estimates as may be 56.8 necessary. Upon recommendationapproval by at least eight 56.9 members of the iron range resources and rehabilitation board, 56.10 this list shall be submitted to the governor by November 1 of 56.11 each year. By December 1 of each year, the governor shall 56.12 approve or disapprove, or return for further consideration, each 56.13 project. Funds for a project may be expended only upon approval 56.14 of the project by the board and governor. The commissioner may 56.15 submit supplemental projects to the board and governor for 56.16 approval at any time. 56.17 Sec. 94. [383B.79] [MULTIJURISDICTIONAL PROGRAM.] 56.18 Subdivision 1. [PROGRAM CREATED.] A multijurisdictional 56.19 reinvestment program involving Hennepin county, the cities of 56.20 Minneapolis, Brooklyn Center, and other interested statutory or 56.21 home rule charter cities in Hennepin county, the Minneapolis 56.22 park board, and the suburban Hennepin county park district is 56.23 created. The multijurisdictional program must include plans for 56.24 housing rehabilitation and removals, industrial polluted land 56.25 cleanup, water ponding, environmental cleanup, community 56.26 corridor connections, corridor planning, creation of green 56.27 space, and job creation. 56.28 Subd. 2. [USE OF APPROPRIATIONS.] Up to one-half of any 56.29 state appropriation for the program created in subdivision 1 may 56.30 be used by the county as a grant to the cities of Minneapolis 56.31 and Brooklyn Center to provide assistance in a capital nature 56.32 for constructing public infrastructure improvements in order to 56.33 further economic development. 56.34 Subd. 3. [MATCHING.] Government jurisdictions 56.35 participating in the reinvestment program planning and projects 56.36 must match any state contribution on at least a 57.1 dollar-for-dollar basis in the aggregate. Government 57.2 jurisdictions, however constituted, may use any funds under 57.3 their control for the match requirement. 57.4 Sec. 95. Minnesota Statutes 1994, section 462.357, 57.5 subdivision 7, is amended to read: 57.6 Subd. 7. [PERMITTED SINGLE FAMILY USE.] A state licensed 57.7 residential facility serving six or fewer persons, a licensed 57.8 day care facility serving 12 or fewer persons, and a group 57.9 family day care facility licensed under Minnesota Rules, parts 57.10 9502.0315 to 9502.0445 to serve 14 or fewer children shall be 57.11 considered a permitted single family residential use of property 57.12 for the purposes of zoning, except that a residential facility 57.13 whose primary purpose is to treat juveniles who have violated 57.14 criminal statutes relating to sex offenses or have been 57.15 adjudicated delinquent on the basis of conduct in violation of 57.16 criminal statutes relating to sex offenses shall not be 57.17 considered a permitted use. 57.18 Sec. 96. Minnesota Statutes 1994, section 462A.05, 57.19 subdivision 14, is amended to read: 57.20 Subd. 14. [REHABILITATION LOANS.] It may agree to 57.21 purchase, make, or otherwise participate in the making, and may 57.22 enter into commitments for the purchase, making, or 57.23 participation in the making, of eligible loans for 57.24 rehabilitation to persons and families of low and moderate 57.25 income, and to owners of existing residential housing for 57.26 occupancy by such persons and families, for the rehabilitation 57.27 of existing residential housing owned by them. The loans may be 57.28 insured or uninsured and may be made with security, or may be 57.29 unsecured, as the agency deems advisable. The loans may be in 57.30 addition to or in combination with long-term eligible mortgage 57.31 loans under subdivision 3. They may be made in amounts 57.32 sufficient to refinance existing indebtedness secured by the 57.33 property, if refinancing is determined by the agency to be 57.34 necessary to permit the owner to meet the owner's housing cost 57.35 without expending an unreasonable portion of the owner's income 57.36 thereon. No loan for rehabilitation shall be made unless the 58.1 agency determines that the loan will be used primarily to make 58.2 the housing more desirable to live in, to increase the market 58.3 value of the housing, for compliance with state, county or 58.4 municipal building, housing maintenance, fire, health or similar 58.5 codes and standards applicable to housing, or to accomplish 58.6 energy conservation related improvements. In unincorporated 58.7 areas and municipalities not having codes and standards, the 58.8 agency may, solely for the purpose of administering the 58.9 provisions of this chapter, establish codes and standards. 58.10 Except for accessibility improvements under this subdivision 14d58.11 and subdivisions 14a and 24, clause (1), no secured loan for 58.12 rehabilitation of any property shall be made in an amount which, 58.13 with all other existing indebtedness secured by the property, 58.14 would exceed its market value, as determined by the agency. No 58.15 loan under this subdivision shall be denied solely because the 58.16 loan will not be used for placing the residential housing in 58.17 full compliance with all state, county, or municipal building, 58.18 housing maintenance, fire, health, or similar codes and 58.19 standards applicable to housing. Rehabilitation loans shall be 58.20 made only when the agency determines that financing is not 58.21 otherwise available, in whole or in part, from private lenders 58.22 upon equivalent terms and conditions. Accessibility 58.23 rehabilitation loans authorized under this subdivision may be 58.24 made to eligible persons and families without limitations 58.25 relating to the maximum incomes of the borrowers if: 58.26 (1) the borrower or a member of the borrower's family 58.27 requires a level of care provided in a hospital, skilled nursing 58.28 facility, or intermediate care facility for persons with mental 58.29 retardation or related conditions; 58.30 (2) home care is appropriate; and 58.31 (3) the improvement will enable the borrower or a member of 58.32 the borrower's family to reside in the housing. 58.33 Sec. 97. Minnesota Statutes 1994, section 462A.05, 58.34 subdivision 15c, is amended to read: 58.35 Subd. 15c. [RESIDENTIAL LEAD ABATEMENT.] (a) It may make 58.36 or purchase loans or grants for the abatement of hazardous 59.1 levels of lead paint in residential buildings and lead 59.2 contaminated soil on the property of residential buildings 59.3 occupied by low- and moderate-income persons. Hazardous levels 59.4 are as determined by the department of health or the pollution 59.5 control agency. The agency must establish grantcriteria for a 59.6 residential lead paint and lead contaminated soil abatement 59.7 program, including the terms of loans and grants under this 59.8 section, a maximum amount for loans or grants, eligible owners59.9 borrowers or grantees, eligible contractors, and eligible 59.10 buildings. The agency may make grants to cities, local units of 59.11 government, registered lead abatement contractors, and nonprofit 59.12 organizations for the purpose of administering a residential 59.13 lead paint and contaminated lead soil abatement program. No59.14 loan or grant may be made for lead paint abatement for a59.15 multifamily building which contains substantial housing59.16 maintenance code violations unless the violations are being59.17 corrected in conjunction with receipt of the loan or grant under59.18 this section.The agency must establish standards for the 59.19 relocation of families where necessary and the payment of 59.20 relocation expenses. To the extent possible, the agency must 59.21 coordinate loans and grants under this section with existing 59.22 housing programs. 59.23 The agency, in consultation with the department of health, 59.24 shall report to the legislature by January 19931996 on the 59.25 costs and benefits of subsidized lead abatement and the extent 59.26 of the childhood lead exposure problem. The agency shall review 59.27 the effectiveness of its existing loan and grant programs in 59.28 providing funds for residential lead abatement and report to the 59.29 legislature with examples, case studies and recommendations. 59.30 (b) The agency may also make grants to eligible 59.31 organizations, as defined in section 268.92, subdivision 1, for 59.32 the purposes of section 268.92. 59.33 Sec. 98. Minnesota Statutes 1994, section 462A.05, 59.34 subdivision 30, is amended to read: 59.35 Subd. 30. [AGENCY INVESTMENT IN CERTAIN NOTES AND 59.36 MORTGAGES.] It may invest in, purchase, acquire, and take 60.1 assignments of existing notes and mortgages not closed for the 60.2 purpose of sale to the agency, from lenders that are nonprofit 60.3 or nonprofit entities, as defined in the agency's rules, 60.4 provided that: (1) the notes and mortgages evidence loans for 60.5 the construction, rehabilitation, purchase, improvement, or 60.6 refinancing of residential housing intended for occupancy and 60.7 occupied by low- and moderate-income persons and families; and 60.8 (2) the loan sellers utilize the funds derived from the 60.9 purchases in accordance with the authority contained in section 60.10 462A.07, subdivision 12, for the purposes and objectives of 60.11 sections 462A.02, 462A.03, 462A.05, 462A.07, and 462A.21; and 60.12 (3) the purchases are subject to security and limitations on the 60.13 costs and expenses of the loan sellers incidental to the 60.14 utilization of the purchase proceeds as the agency may 60.15 determine. The proceeds of the purchases authorized by this 60.16 subdivision shall not be subject to the limitations of section 60.17 462A.21, subdivisions 4k, 6, 9, and 12. In addition, it may 60.18 invest in, purchase, acquire, and take assignments of existing 60.19 federally insured mortgages for multifamily housing, not closed 60.20 for the purpose of sale to the agency, from any banking 60.21 institution, savings and loan association, or other lender or 60.22 financial intermediary approved by the members; provided that 60.23 the multifamily housing is benefited by contracts for federal 60.24 housing assistance payments. 60.25 Sec. 99. Minnesota Statutes 1994, section 462A.201, 60.26 subdivision 2, is amended to read: 60.27 Subd. 2. [LOW-INCOME HOUSING.] (a) The agency may, in 60.28 consultation with the advisory committee, use money from the 60.29 housing trust fund account to provide loans or grants for 60.30 projects for the development, construction, acquisition, 60.31 preservation, and rehabilitation of low-income rental and 60.32 limited equity cooperative housing units and homes for 60.33 ownership. No more than 20 percent of available funds may be 60.34 used for home ownership projects. 60.35 (b) TheA rental or limited equity cooperative housing 60.36 project must meet one of the following income tests: 61.1 (1) at least 75 percent of the rental and cooperative 61.2 units , and 100 percent of the homes for ownership,must be 61.3 rented to or cooperatively owned , or ownedby persons and 61.4 families whose income does not exceed 30 percent of the median 61.5 family income for the metropolitan area as defined in section 61.6 473.121, subdivision 2; or 61.7 (2) all of the units funded by the housing trust fund 61.8 account must be used for the benefit of persons and families 61.9 whose income does not exceed 30 percent of the median family 61.10 income for the metropolitan area as defined in section 473.121, 61.11 subdivision 2. 61.12 The median family income may be adjusted for families of 61.13 five or more. 61.14 (c) Homes for ownership must be owned or purchased by 61.15 persons and families whose income does not exceed 50 percent of 61.16 the metropolitan area median income, adjusted for family size. 61.17 (d) In making the grants, the agency shall determine the 61.18 terms and conditions of repayment and the appropriate security, 61.19 if any, should repayment be required. To promote the geographic 61.20 distribution of grants and loans, the agency may designate a 61.21 portion of the grant or loan awards to be set aside for projects 61.22 located in specified congressional districts or other 61.23 geographical regions specified by the agency. The agency may 61.24 adopt emergency and permanent rules for awarding grants and 61.25 loans under this subdivision. The emergency rules are effective 61.26 for 180 days or until the permanent rules are adopted, whichever 61.27 occurs first. 61.28 Sec. 100. Minnesota Statutes 1994, section 462A.202, 61.29 subdivision 2, is amended to read: 61.30 Subd. 2. [TRANSITIONAL HOUSING.] The agency may make loans 61.31 with or without interest to cities and counties to finance the 61.32 acquisition, improvement, and rehabilitation of existing housing 61.33 properties or the acquisition, site improvement, and development 61.34 of new properties for the purposes of providing transitional 61.35 housing, upon terms and conditions the agency determines. 61.36 Preference must be given to cities that propose to acquire 62.1 properties being sold by the resolution trust corporation or the 62.2 department of housing and urban development. Loans under this 62.3 subdivision are subject to the restrictions in subdivision 7. 62.4 Sec. 101. Minnesota Statutes 1994, section 462A.202, 62.5 subdivision 6, is amended to read: 62.6 Subd. 6. [NEIGHBORHOOD LAND TRUSTS.] The agency may make 62.7 loans with or without interest to cities and counties to finance 62.8 the capital costs of a land trust project undertaken pursuant to 62.9 sections 462A.30 and 462A.31. Loans under this subdivision are 62.10 subject to the restrictions in subdivision 7. 62.11 Sec. 102. Minnesota Statutes 1994, section 462A.204, 62.12 subdivision 1, is amended to read: 62.13 Subdivision 1. [ESTABLISHMENT.] The agency may establish a 62.14 family homeless prevention and assistance program to assist 62.15 families who are homeless or are at imminent risk of 62.16 homelessness. The term "family" may include single 62.17 individuals. The agency may make grants to develop and 62.18 implement family homeless prevention and assistance projects 62.19 under the program. For purposes of this section, "families" 62.20 means families and persons under the age of 1822. 62.21 Sec. 103. Minnesota Statutes 1994, section 462A.205, 62.22 subdivision 4, is amended to read: 62.23 Subd. 4. [AMOUNT AND PAYMENT OF RENT ASSISTANCE.] (a) This 62.24 subdivision applies to both the voucher option and the 62.25 project-based voucher option. 62.26 (b) Within the limits of available appropriations, eligible 62.27 families may receive monthly rent assistance for a 36-month 62.28 period starting with the month the family first receives rent 62.29 assistance under this section. The amount of the family's 62.30 portion of the rental payment is equal to at least 30 percent of 62.31 gross income. 62.32 (c) The rent assistance must be paid by the local housing 62.33 organization to the property owner. 62.34 (d) Subject to the limitations in paragraph (e), the amount 62.35 of rent assistance is the difference between the rent and the 62.36 family's portion of the rental payment. 63.1 (e) In no case: 63.2 (1) may the amount of monthly rent assistance be more 63.3 than $250 for housing located within the metropolitan area, as 63.4 defined in section 473.121, subdivision 2, or more than $200 for 63.5 housing located outside of the metropolitan area; 63.6 (2) may the owner receive more rent for assisted units than 63.7 for comparable unassisted units; nor 63.8 (3) may the amount of monthly rent assistance be more than 63.9 the difference between the family's portion of the rental 63.10 payment and the fair market rent for the unit as determined by 63.11 the Department of Housing and Urban Development. 63.12 Sec. 104. Minnesota Statutes 1994, section 462A.206, 63.13 subdivision 2, is amended to read: 63.14 Subd. 2. [AUTHORIZATION.] The agency may make grants or 63.15 loans to cities for the purposes of construction, acquisition, 63.16 rehabilitation, demolition, permanent financing, refinancing, or63.17 gap financing of single or multifamily housing, or full cycle 63.18 home ownership services, as defined in section 462A.209, 63.19 subdivision 2. Gap financing is financing for the difference 63.20 between the cost of the improvement of the blighted property, 63.21 including acquisition, demolition, rehabilitation, and 63.22 construction, and the market value of the property upon sale. 63.23 The agency shall take into account the amount of money that the 63.24 city leverages from other sources in awarding grants and loans. 63.25 Cities may use the grants and loans to establish revolving loan 63.26 funds and to provide grants and loans to eligible mortgagors. 63.27 The city may determine the terms and conditions of the grants 63.28 and loans. An agency loan may only be used by a city to make 63.29 loans. 63.30 Sec. 105. Minnesota Statutes 1994, section 462A.206, 63.31 subdivision 5, is amended to read: 63.32 Subd. 5. [OTHER ELIGIBLE ORGANIZATIONS.] A nonprofit 63.33 organization is eligible to apply directly for grants or loans 63.34 from the community rehabilitation fund account if the city 63.35 within which it is located enacts a resolution authorizing the 63.36 organization to apply on the city's behalf, except that a 64.1 nonprofit organization providing full cycle home ownership 64.2 services may apply directly to the agency. 64.3 Sec. 106. [462A.209] [HOME OWNERSHIP ASSISTANCE.] 64.4 Subdivision 1. [FULL CYCLE HOME OWNERSHIP SERVICES.] The 64.5 full cycle home ownership services program shall be used to fund 64.6 nonprofit organizations and political subdivisions providing, 64.7 building capacity to provide, or supporting full cycle lending 64.8 for home ownership to low and moderate income home buyers. The 64.9 purpose of the program is to encourage private investment in 64.10 affordable housing and collaboration of nonprofit organizations 64.11 and political subdivisions with each other and private lenders 64.12 in providing full cycle lending services. 64.13 Subd. 2. [DEFINITION.] "Full cycle home ownership services" 64.14 means supporting eligible home buyers and owners through all 64.15 phases of purchasing and keeping a home, by providing 64.16 prepurchase home buyer education, prepurchase counseling and 64.17 credit repair, prepurchase property inspection and technical and 64.18 financial assistance to buyers in rehabilitating the home, 64.19 postpurchase and mortgage default counseling, postpurchase 64.20 assistance with home maintenance, entry cost assistance, and 64.21 access to flexible loan products. 64.22 Subd. 3. [ELIGIBILITY.] The agency shall establish 64.23 eligibility criteria for nonprofit organizations and political 64.24 subdivisions to receive funding under this section. The 64.25 eligibility criteria must require the nonprofit organization or 64.26 political subdivision to provide, to build capacity to provide, 64.27 or support full cycle home ownership services for eligible home 64.28 buyers. The agency may fund a nonprofit organization or 64.29 political subdivision that will provide full cycle home 64.30 ownership services by coordinating with one or more other 64.31 organizations that will provide specific components of full 64.32 cycle home ownership services. The agency may make exceptions 64.33 to providing all components of full cycle lending if justified 64.34 by the application. If there are more applicants requesting 64.35 funding than there are funds available, the agency shall award 64.36 the funds on a competitive basis and also assure an equitable 65.1 geographic distribution of the available funds. The eligibility 65.2 criteria must require the nonprofit organization or political 65.3 subdivision to have a demonstrated involvement in the local 65.4 community and to target the housing affordability needs of the 65.5 local community. Partnerships and collaboration with 65.6 innovative, grass roots, or community-based initiatives shall be 65.7 encouraged. The agency shall give priority to nonprofit 65.8 organizations and political subdivisions that provide matching 65.9 funds. Applicants for funds under section 462A.057 may also 65.10 apply funds under this program. 65.11 Subd. 4. [ENTRY COST HOME OWNERSHIP OPPORTUNITY 65.12 PROGRAM.] The agency may establish an entry cost home ownership 65.13 opportunity program, on terms and conditions it deems advisable, 65.14 to assist individuals with downpayment and closing costs to 65.15 finance the purchase of a home. 65.16 Sec. 107. [462A.2091] [CONTRACT FOR DEED GUARANTEE 65.17 ACCOUNT.] 65.18 Subdivision 1. [CREATION.] The contract for deed guarantee 65.19 account is created as a separate account in the housing 65.20 development fund. Money in the account is appropriated to the 65.21 agency for the purposes of this section. The account consists 65.22 of money appropriated to the account and transferred from other 65.23 sources and all earnings from money in the account. 65.24 Subd. 2. [ACCOUNT USES.] Money in the account may be used 65.25 to create a guarantee fund for the refinancing of contracts for 65.26 deed. 65.27 Subd. 3. [ELIGIBLE PROPERTY.] Contracts for deed eligible 65.28 for refinancing with guarantee fund assistance must be for the 65.29 purchase of an owner-occupied single-family or duplex 65.30 structure. In a city of the first class in the metropolitan 65.31 area, as defined in section 473.121, subdivision 2, eligible 65.32 properties must be located in an area in which at least one 65.33 census tract meets at least three of the following four criteria: 65.34 (1) at least 70 percent of the housing structures were 65.35 built before 1960; 65.36 (2) at least 60 percent of the single-family housing is 66.1 owner-occupied; 66.2 (3) the median market value of the area's owner-occupied 66.3 housing, as recorded in the most recent federal decennial 66.4 census, is not more than 100 percent of the purchase price limit 66.5 for existing homes eligible for purchase in the area under the 66.6 agency's home mortgage loan program; and 66.7 (4) between 1980 and 1990, the rate of owner occupancy of 66.8 residential properties in the area declined by at least five 66.9 percent, or at least 80 percent of the residential properties in 66.10 the area are rental properties. 66.11 The area must include eight blocks in any direction from 66.12 the census tract. Priority must be given for property located 66.13 in an area that meets all four criteria. 66.14 Sec. 108. [462A.2097] [RENTAL HOUSING.] 66.15 The agency may establish a rental housing assistance 66.16 program for persons of low income or for persons with a mental 66.17 illness or families that include an adult family member with a 66.18 mental illness. Rental assistance may be in the form of direct 66.19 rental subsidies for housing for persons or families with 66.20 incomes of up to 50 percent of the area median income as 66.21 determined by the United States Department of Housing and Urban 66.22 Development, adjusted for families of five or more. Housing for 66.23 the mentally ill must be operated in coordination with social 66.24 service providers who provide services requested by tenants. 66.25 Direct rental subsidies must be administered by the agency for 66.26 the benefit of eligible tenants. Financial assistance provided 66.27 under this section must be in the form of vendor payments 66.28 whenever possible. 66.29 Sec. 109. Minnesota Statutes 1994, section 462A.21, 66.30 subdivision 3b, is amended to read: 66.31 Subd. 3b. [CAPACITY BUILDING GRANTS.] It may make capacity 66.32 building grants to nonprofit organizations, local government 66.33 units, Indian tribes, and Indian tribal organizations to expand 66.34 their capacity to provide affordable housing and housing-related 66.35 services. The grants may be used to assess housing needs and to 66.36 develop and implement strategies to meet those needs, including 67.1 the creation or preservation of affordable housing, prepurchase 67.2 and postpurchase counseling and associated administrative costs, 67.3 and the linking of supportive services to the housing. The 67.4 agency shall adopt rules specifying the eligible uses of grant 67.5 money. Funding priority must be given to those applicants that 67.6 include low-income persons in their membership, have provided 67.7 housing-related services to low-income people, and demonstrate a 67.8 local commitment of local resources, which may include in-kind 67.9 contributions. Grants under this subdivision may be made only 67.10 with specific appropriations by the legislature. 67.11 Sec. 110. Minnesota Statutes 1994, section 462A.21, 67.12 subdivision 8, is amended to read: 67.13 Subd. 8. [HOME OWNERSHIP ASSISTANCE FUND.] It may 67.14 establish a home ownership assistance fund, on terms and 67.15 conditions it deems advisable, to assist persons and families of 67.16 low and moderate income in the purchase of affordable 67.17 residential housing and may use the funds to provide loans, 67.18 additional security for eligible loans or to pay costs 67.19 associated with or provide additional security for bonds issued 67.20 by the agency. 67.21 Sec. 111. Minnesota Statutes 1994, section 462A.21, 67.22 subdivision 8b, is amended to read: 67.23 Subd. 8b. [FAMILY RENTAL HOUSING.] It may establish a 67.24 family rental housing assistance program to provide loans or 67.25 direct rental subsidies for housing for families with incomes of 67.26 up to 6080 percent of areastate median income. Priority must 67.27 be given to those developments with resident families with the 67.28 lowest income. The development may be financed by the agency or 67.29 other public or private lenders. Direct rental subsidies must 67.30 be administered by the agency for the benefit of eligible 67.31 families. Financial assistance provided under this subdivision 67.32 to recipients of aid to families with dependent children must be 67.33 in the form of vendor payments whenever possible. Loans and 67.34 direct rental subsidies under this subdivision may be made only 67.35 with specific appropriations by the legislature. The 67.36 limitations on eligible mortgagors contained in section 462A.03, 68.1 subdivision 13, do not apply to loans for the rehabilitation of 68.2 existing housing under this subdivision. 68.3 Sec. 112. Minnesota Statutes 1994, section 462A.21, 68.4 subdivision 13, is amended to read: 68.5 Subd. 13. [ACCESSIBILITY PROGRAMS.] It may spend money for 68.6 the purposepurposes of section 462A.05, subdivision68.7 subdivisions 14, 14a, and 24, and may pay the costs and expenses 68.8 necessary and incidental to the development and operation of the 68.9 programs authorized in that subdivisionthose subdivisions. 68.10 Sec. 113. Minnesota Statutes 1994, section 462A.21, 68.11 subdivision 21, is amended to read: 68.12 Subd. 21. [COMMUNITY REHABILITATION PROGRAM.] The 68.13 agency or its grantees may spend money for the purposes of the 68.14 community rehabilitation program authorized under section 68.15 462A.206 and may pay the costs and expenses necessary and 68.16 incidental to the development and operation of the program. 68.17 Sec. 114. Minnesota Statutes 1994, section 462A.21, is 68.18 amended by adding a subdivision to read: 68.19 Subd. 22. [CONTRACT FOR DEED GUARANTEE PROGRAM.] It may 68.20 expend money for the purposes of section 462A.2091 and may pay 68.21 the costs and expenses necessary and incidental to the 68.22 development and operation of the program authorized by section 68.23 462A.2091. 68.24 Sec. 115. Minnesota Statutes 1994, section 462A.21, is 68.25 amended by adding a subdivision to read: 68.26 Subd. 23. [RENTAL HOUSING.] The agency may spend money for 68.27 the purposes of the rental housing program authorized under 68.28 section 462A.2097, and may pay the costs and expenses necessary 68.29 and incidental to the development and operation of the program. 68.30 Sec. 116. Minnesota Statutes 1994, section 469.0171, is 68.31 amended to read: 68.32 469.0171 [HOUSING PLAN, PROGRAM, AND REVIEW.] 68.33 Prior to the issuance of bonds or obligations for a housing 68.34 development project proposed by an authority under section 68.35 469.017, the authority shall: 68.36 (1) prepare a plan meeting the requirements of section 69.1 462C.03, subdivision 1, paragraphs (a) to (d); 69.2 (2) obtain review of the plan in the manner provided in 69.3 section 462C.04, subdivision 1; and 69.4 (3) prepare and submit for review a program as defined in 69.5 section 462C.02, subdivision 3, in the manner provided in 69.6 section 462C.04, subdivision 2, and section 462C.05, subdivision 69.7 5, for the making or purchasing of loans by cities. 69.8 The authority shall prepare and submit the report required 69.9 under section 462C.04, subdivision 3. 69.10 Sec. 117. Minnesota Statutes 1994, section 504.33, 69.11 subdivision 2, is amended to read: 69.12 Subd. 2. [CITY.] "City" means aany statutory or home rule 69.13 charter city located within the metropolitan area as defined in 69.14 section 473.121, subdivision 2, and any city of the first class 69.15 as defined in section 410.01. The term "city" also includes, 69.16 where applicable, a port authority, economic development 69.17 authority, a housing and redevelopment authority, or any 69.18 development agency established under chapter 469 which share 69.19 common boundaries with the city. 69.20 Sec. 118. Minnesota Statutes 1994, section 504.33, 69.21 subdivision 3, is amended to read: 69.22 Subd. 3. [DISPLACE.] "Displace" means to demolish, acquire 69.23 for or convert to a use other than low-income housing, or to 69.24 provide or spend money that directly results in the demolition, 69.25 acquisition, or conversion of housing to a use other than 69.26 low-income housing. 69.27 "Displace" does not include providing or spending money 69.28 that directly results in: (i) housing improvements made to 69.29 comply with health, housing, building, fire prevention, housing 69.30 maintenance, or energy codes or standards of the applicable 69.31 government unit; (ii) housing improvements to make housing more 69.32 accessible to a handicapped person; or (iii) the demolition, 69.33 acquisition, or conversion of housing for the purpose of 69.34 creating owner-occupied housing that consists of no more than 69.35 four units per structure. 69.36 "Displace" does not include downsizing large apartment 70.1 complexes by demolishing less than 25 percent of the units in 70.2 the complex or by eliminating units through reconfiguration and 70.3 expansion of individual units for the purpose of expanding the 70.4 size of the remaining low-income units. For the purpose of this 70.5 section, "large apartment complex" means two or more adjacent 70.6 buildings containing a total of 100 or more units per complex. 70.7 In any city in the metropolitan area, as defined in section 70.8 473.121, subdivision 2, which has met its housing affordability 70.9 goals under the metropolitan council's metropolitan development 70.10 guide, adopted under section 473.145, "displace" means the 70.11 demolition, acquisition, or conversion of housing only for 70.12 purposes other than the construction or rehabilitation of 70.13 housing. 70.14 Sec. 119. Minnesota Statutes 1994, section 504.34, 70.15 subdivision 1, is amended to read: 70.16 Subdivision 1. [ANNUAL REPORT REQUIRED.] A government 70.17 unit, or in the case of a government unit located in the 70.18 metropolitan area as defined in section 473.121, the government70.19 unit andthe metropolitan council, shall prepare a housing 70.20 impact report either: 70.21 (1) for each year in which the government unit displaces 70.22 ten or more units of low-income housing in a city of the first 70.23 class as defined in section 410.01; or 70.24 (2) when a specific project undertaken by a government unit 70.25 for longer than one year displaces a total of ten or more units 70.26 of low-income housing in a city of the first class as defined in 70.27 section 410.01. 70.28 Sec. 120. Minnesota Statutes 1994, section 504.34, 70.29 subdivision 2, is amended to read: 70.30 Subd. 2. [DRAFT ANNUAL HOUSING IMPACT REPORT.] As provided 70.31 in subdivision 1, a government unit or in the case of a 70.32 government unit participating withlocated in the metropolitan 70.33 area, as defined in section 473.121, subdivision 2, the 70.34 metropolitan council subject to this section must prepare a 70.35 draft annual housing impact report for review and comment by 70.36 interested persons. The draft report must be completed by 71.1 January 31 of the year immediately following a year in which the 71.2 government unit has displaced ten or more units of low-income 71.3 housing in a city. For a housing impact report required under 71.4 subdivision 1, clause (2), the draft report must be completed by 71.5 January 31 of the year immediately following the year in which 71.6 the government unit has displaced a cumulative total of ten 71.7 units of low-income housing in a city. 71.8 Sec. 121. Minnesota Statutes 1994, section 504.35, is 71.9 amended to read: 71.10 504.35 [REPLACEMENT HOUSING REQUIRED.] 71.11 A government unit which displaces ten or more units of 71.12 low-income housing in a city of the first class as defined in 71.13 section 410.01 and is subject to section 504.34or in any city 71.14 located within the metropolitan area as defined in section 71.15 473.121, subdivision 2, must provide the replacement housing 71.16 within 36 months following the date of the final annual housing 71.17 impact report, unless there is an adequate supply of available 71.18 and unoccupied low-income housing units to meet the demand for 71.19 the replacement housing in the city where housing has been 71.20 displaced by the government unit. 71.21 Sec. 122. [AFFORDABLE NEIGHBORHOOD DESIGN AND DEVELOPMENT 71.22 INITIATIVE.] 71.23 In order to develop and implement methods of reducing the 71.24 total costs of housing units through the innovative use of 71.25 technology and planning, the housing finance agency may conduct 71.26 a competition or secure proposals for innovative plans for the 71.27 development of housing units affordable to low-income persons. 71.28 The agency shall seek models for use by local units of 71.29 government and nonprofit organizations to develop neighborhoods 71.30 with small, owner-occupied affordable housing. The agency may 71.31 seek plans that reduce construction costs through technological 71.32 advancements, uniform housing designs suitable for use 71.33 throughout the state, central purchasing of material or housing 71.34 components, or streamlining of regulatory processes for site 71.35 planning and land development. Designs selected become the 71.36 property of the state of Minnesota. The agency may award one or 72.1 more premiums in each competition and may share the costs and 72.2 fees that may be required for the conduct of competitions. 72.3 Sec. 123. [REPLACEMENT HOUSING; METROPOLITAN COUNCIL 72.4 STUDY.] 72.5 The metropolitan council shall study the issue of 72.6 replacement housing and the need for a metropolitan area 72.7 replacement housing law. The council shall report the results 72.8 of the study and its recommendations to the legislature by 72.9 December 1, 1996. 72.10 Sec. 124. Laws 1994, chapter 643, section 19, subdivision 72.11 9, is amended to read: 72.12 Subd. 9. Museum and Center for 72.13 American Indian History 1,100,000 72.14 This appropriation is for the Minnesota72.15 historical societyboard of trustees of 72.16 the Minnesota state colleges and 72.17 universities to plan, design, and 72.18 construct a museum and center for 72.19 American Indian history and policy. 72.20 The facility shall be located at an72.21 institution of higher education,72.22 selected by the state university board,72.23 which serves a region including the72.24 three most populous Indian reservations72.25 Bemidji State University. This 72.26 appropriation is not available unless 72.27 matched by $1,000,000 from nonpublic 72.28 sources. The board of trustees of the 72.29 Minnesota state colleges and 72.30 universities is not required to pay any 72.31 debt service for this appropriation. 72.32 Sec. 125. [APPLICABILITY.] 72.33 Sections 119, 120, and 123 apply in the counties of Anoka, 72.34 Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. 72.35 Sec. 126. [REPEALER.] 72.36 (a) Minnesota Statutes 1994, sections 116J.874, subdivision 72.37 6; 268A.01, subdivisions 7, 11, and 12; and 268A.09, are 72.38 repealed. 72.39 (b) Minnesota Statutes 1994, sections 298.2211, subdivision 72.40 3a, and 462A.21, subdivision 8c, are repealed. 72.41 (c) Minnesota Statutes 1994, section 97A.531, subdivisions 72.42 2, 3, 4, 5, and 6, are repealed. Any action of the commissioner 72.43 of natural resources under authority of those subdivisions is 72.44 void. 72.45 (d) Laws 1990, chapter 521, section 4, is repealed. 73.1 Sec. 127. [EFFECTIVE DATES.] 73.2 Sections 18, subdivision 5; 30 to 47; 49; 57; 69; 71; 76; 73.3 79; 95; 96; 98; 100 to 103; 108; 112; 115; 116; 123 to 125; 126, 73.4 paragraphs (b), (c), and (d); and all provisions of this act 73.5 making appropriations for fiscal year 1995, are effective the 73.6 day following final enactment. Section 51 is effective the day 73.7 following final enactment and is repealed December 31, 1995. 73.8 Section 52 is effective May 1, 1996. Sections 117 to 121 are 73.9 effective August 1, 1997. All other provisions of this act are 73.10 effective July 1, 1995.