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SF 1670

3rd Engrossment - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 3rd Engrossment

  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. 
  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 
  2.26  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
 13.37  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
 15.35  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. 
 16.18  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. 
 18.2   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. 
 18.29  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: 
 20.10  $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 the 
 20.35  biennium until 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 either 
 21.19  year of the biennium until 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. 
 22.17     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. 
 22.29     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. 
 23.2      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. 
 23.23     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. 
 25.14  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. 
 25.24  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. 
 26.6   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. 
 26.27     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. 
 27.8      (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 to 
 29.9   be used or purchased by the iron range resources and 
 29.10  rehabilitation board are subject to the competitive bidding 
 29.11  requirements of this chapter only as described in section 
 29.12  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; and 
 29.25     (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   mean means the cost costs of developing and implementing an 
 31.6   approved a 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 regular 
 31.15  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: 
 32.30  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 
 34.9      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 permanent 
 35.16  jobs created or retained by the project and the proportion of 
 35.17  nonpublic money leveraged by the loan.  Priority must also be 
 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 be 
 35.21  used to provide up to 50 percent of the private investment 
 35.22  required to qualify for a grant from the economic recovery 
 35.23  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 permanent 
 37.9   jobs created or retained by the project and the proportion of 
 37.10  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 be 
 37.13  used to provide up to 50 percent of the private investment 
 37.14  required to qualify for a grant from the economic recovery 
 37.15  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: 
 38.36  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: 
 41.33  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 determinations determination of other another 
 43.7   previously filed cases case 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 determinations determination in the previously filed cases 
 43.12  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: 
 43.23  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 20 60 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; and 
 45.11     (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: 
 45.18  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 dysfunction 
 46.8   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 facility program 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.09 268A.15, rehabilitation facility means an entity 
 46.18  which is operated for the primary purpose of 
 46.19  providing remunerative or facilitating employment to those for 
 46.20  persons with a severe disability who, as a result of physical or 
 46.21  mental disability, are unable to participate in competitive 
 46.22  employment.  A rehabilitation facility shall supply such 
 46.23  employment (1) as a step in the rehabilitation process for those 
 46.24  who cannot be readily absorbed in the competitive labor market, 
 46.25  or (2) during such time as employment opportunities for them in 
 46.26  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: 
 46.30  SUBPROGRAM.] "Long-term Center-based employment program 
 46.31  subprogram" means a program employment 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 activity of the 
 46.35  rehabilitation facility. 
 46.36     Sec. 84.  Minnesota Statutes 1994, section 268A.01, 
 47.1   subdivision 10, is amended to read: 
 47.3   "Extended employment programs program" means the following 
 47.4   programs which may be offered by a rehabilitation 
 47.5   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; and 
 47.10     (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.09 
 47.18  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.10 268A.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 supplied prescribed 
 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: 
 50.9      Subdivision 1.  [BENEFITS.] A rehabilitation facility must, 
 50.10  as a condition for receiving program certification, provide 
 50.11  employees in a long-term center-based employment program the 
 50.12  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-term center-based 
 50.17  employment program subprograms, 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.09 268A.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.09 268A.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.09 268A.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.09 268A.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 the 
 51.36  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 the an extended employment program offered by the 
 52.13  rehabilitation facility is certified, act as the administrator 
 52.14  of the rehabilitation facility and its programs subprograms for 
 52.15  purposes of this chapter. 
 52.16     Sec. 90.  Minnesota Statutes 1994, section 268A.13, is 
 52.17  amended to read: 
 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-term the center-based employment or work activity programs 
 52.35  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 recommend for 
 55.26  approval by at least eight board members or disapproval or 
 55.27  modification of 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 prepare submit 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 recommendation approval 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 14d 
 58.11  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 grant criteria 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 owners 
 59.9   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.  No 
 59.14  loan or grant may be made for lead paint abatement for a 
 59.15  multifamily building which contains substantial housing 
 59.16  maintenance code violations unless the violations are being 
 59.17  corrected in conjunction with receipt of the loan or grant under 
 59.18  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 1993 1996 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: 
 59.36  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) The A 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 owned by 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 18 22.  
 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, or 
 63.17  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. 
 65.12  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 60 80 percent of area state 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 purpose purposes of section 462A.05, subdivision 
 68.7   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 subdivision those subdivisions. 
 68.10     Sec. 113.  Minnesota Statutes 1994, section 462A.21, 
 68.11  subdivision 21, is amended to read: 
 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 a any 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 government 
 70.19  unit and the 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 with located 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: 
 71.11     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 504.34 or 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. 
 71.22  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. 
 72.4   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 Minnesota 
 72.15  historical society board 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 an 
 72.21  institution of higher education, 
 72.22  selected by the state university board, 
 72.23  which serves a region including the 
 72.24  three most populous Indian reservations 
 72.25  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.