1.1                          A bill for an act 
  1.2             relating to community development; appropriating money 
  1.3             for community development and certain agencies of 
  1.4             state government with certain conditions; establishing 
  1.5             and modifying certain programs; regulating certain 
  1.6             activities and practices; setting and modifying fees; 
  1.7             defining terms; requiring studies and reports; 
  1.8             amending Minnesota Statutes 1996, sections 60A.23, 
  1.9             subdivision 8; 65B.48, subdivision 3; 79.255, by 
  1.10            adding a subdivision; 116J.01, subdivision 5; 
  1.11            116J.551; 116J.553, subdivision 2; 116J.554, 
  1.12            subdivision 1; 116L.04, subdivision 1, and by adding a 
  1.13            subdivision; 176.181, subdivision 2a; 268A.15, 
  1.14            subdivisions 2, 6, and by adding subdivisions; 394.25, 
  1.15            by adding a subdivision; 446A.04, subdivision 5; 
  1.16            446A.081, subdivisions 1, 4, and 9; 462.357, by adding 
  1.17            a subdivision; and 462A.206, subdivisions 2 and 4; 
  1.18            proposing coding for new law in Minnesota Statutes, 
  1.19            chapters 116J; 116L; 268; and 366; repealing Minnesota 
  1.20            Statutes 1996, sections 116J.990, subdivision 7; and 
  1.21            462A.206, subdivision 5. 
  1.22  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.23  Section 1.  [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 
  1.24     The sums shown in the columns marked "APPROPRIATIONS" are 
  1.25  appropriated from the general fund, or another named fund, to 
  1.26  the agencies and for the purposes specified in this act, to be 
  1.27  available for the fiscal years indicated for each purpose.  The 
  1.28  figures "1998" and "1999," where used in this act, mean that the 
  1.29  appropriation or appropriations listed under them are available 
  1.30  for the year ending June 30, 1998, or June 30, 1999, 
  1.31  respectively.  The term "first year" means the fiscal year 
  1.32  ending June 30, 1998, and "second year" means the fiscal year 
  1.33  ending June 30, 1999. 
  2.1                           SUMMARY BY FUND
  2.2                             1998          1999           TOTAL
  2.3   General              $192,165,000   $162,147,000   $354,312,000
  2.4   Petroleum Tank
  2.5   Cleanup                   957,000        780,000      1,737,000
  2.6   Trunk Highway             706,000        723,000      1,429,000 
  2.7   Workers' 
  2.8   Compensation           22,899,000     22,912,000     45,811,000
  2.9   Special Revenue           345,000        350,000        695,000
  2.10  TOTAL                $217,072,000   $186,912,000   $403,984,000
  2.11                                             APPROPRIATIONS 
  2.12                                         Available for the Year 
  2.13                                             Ending June 30 
  2.14                                            1998         1999 
  2.15  Sec. 2.  TRADE AND ECONOMIC DEVELOPMENT 
  2.16  Subdivision 1.  Total 
  2.17  Appropriation                       $ 42,157,000   $ 33,810,000
  2.18                Summary by Fund
  2.19  General              41,451,000    33,087,000
  2.20  Trunk Highway           706,000       723,000 
  2.21  The amounts that may be spent from this 
  2.22  appropriation for certain programs are 
  2.23  specified in the following subdivisions.
  2.24  Subd. 2.  Business and Community 
  2.25  Development
  2.26       27,401,000     18,904,000
  2.27  $4,444,000 the first year is for state 
  2.28  matching money for federal grants to 
  2.29  capitalize the drinking water revolving 
  2.30  loan fund under Minnesota Statutes, 
  2.31  section 446A.081.  The expenditure is 
  2.32  limited to the minimum amount necessary 
  2.33  to match the allotment of federal money 
  2.34  to Minnesota.  This is a one-time 
  2.35  appropriation and must not be included 
  2.36  in the budget base for the biennium 
  2.37  ending June 30, 2001. 
  2.38  $2,000,000 in the first year is for the 
  2.39  public facilities authority.  Of that 
  2.40  amount, $1,500,000 is for repayment of 
  2.41  the portion of the wastewater treatment 
  2.42  loan to the city of Cambridge for the 
  2.43  increased cost of wastewater treatment 
  2.44  attributable to the designation of the 
  2.45  Rum river as a wild and scenic river 
  2.46  and $500,000 is for municipalities with 
  2.47  wastewater infrastructure projects that 
  2.48  are not otherwise eligible for 
  2.49  assistance under Minnesota Statutes, 
  2.50  sections 446A.07 and 446A.072.  
  2.51  Projects must be certified as 
  2.52  technically feasible by the 
  2.53  commissioner of the Minnesota pollution 
  3.1   control agency and approved by the 
  3.2   public facilities authority. 
  3.3   $526,000 the first year and $537,000 
  3.4   the second year is from fees collected 
  3.5   under Minnesota Statutes, section 
  3.6   446A.04, subdivision 5, and credited to 
  3.7   the general fund to administer the 
  3.8   programs of the public facilities 
  3.9   authority. 
  3.10  $5,017,000 the first year and 
  3.11  $5,017,000 the second year is for 
  3.12  Minnesota investment fund grants, of 
  3.13  which $500,000 each year may be used 
  3.14  for the purposes of the capital access 
  3.15  program, and is available until spent. 
  3.16  $250,000 the first year and $250,000 
  3.17  the second year is for grants to 
  3.18  Advantage Minnesota, Inc.  The funds 
  3.19  are available only if matched on at 
  3.20  least a dollar-for-dollar basis from 
  3.21  other sources.  The commissioner may 
  3.22  release the funds only upon: 
  3.23  (1) certification that matching funds 
  3.24  from each participating organization 
  3.25  are available; and 
  3.26  (2) review and approval by the 
  3.27  commissioner of the proposed operations 
  3.28  plan of Advantage Minnesota, Inc. for 
  3.29  the biennium. 
  3.30  $7,916,000 the first year and 
  3.31  $7,920,000 the second year is for the 
  3.32  job skills partnership programs.  
  3.33  $1,000,000 is for grants under 
  3.34  Minnesota Statutes, sections 116J.551 
  3.35  to 116J.558.  From this appropriation, 
  3.36  a roughly equal dollar amount of grants 
  3.37  must be made in the metropolitan area 
  3.38  and the nonmetropolitan area.  This 
  3.39  appropriation is available until spent. 
  3.40  $50,000 the first year and $50,000 the 
  3.41  second year is for a grant to the 
  3.42  greater metropolitan foreign trade zone 
  3.43  commission for the purpose of promoting 
  3.44  foreign trade zones in Minnesota. 
  3.45  $25,000 the first year is for a grant 
  3.46  to the board of invention.  The 
  3.47  appropriation is available upon receipt 
  3.48  by the board of $4 in matching 
  3.49  contributions in money from nonstate 
  3.50  sources for every $1 provided by this 
  3.51  appropriation. 
  3.52  $1,000,000 is for a grant to develop a 
  3.53  direct reduction iron-processing 
  3.54  facility in Minnesota.  This 
  3.55  appropriation is available until July 
  3.56  1, 1999. 
  3.57  Notwithstanding Laws 1996, chapter 452, 
  3.58  section 2, paragraph (c), a match is 
  3.59  not required for the grant to the 
  3.60  Morrison county rural development 
  4.1   finance authority made by that law. 
  4.2   $45,000 is for a grant to the Upper 
  4.3   Minnesota Valley River Regional 
  4.4   Development Commission for development 
  4.5   of design specifications and 
  4.6   architectural plans for a regional 
  4.7   visitors center on the upper segment of 
  4.8   the Minnesota river corridor within the 
  4.9   designated scenic byway area and in 
  4.10  conjunction with the development of the 
  4.11  Minnesota river corridor trail.  The 
  4.12  appropriation is available until June 
  4.13  30, 1999. 
  4.14  $100,000 is for a grant to the 
  4.15  Minnesota Organization for Global 
  4.16  Professional Assignments, an 
  4.17  independent, nonprofit corporation, for 
  4.18  a program that creates opportunities 
  4.19  for the international professional 
  4.20  development of Minnesota college 
  4.21  graduates and Minnesota college seniors 
  4.22  interested in pursuing careers with 
  4.23  multinational businesses.  This is a 
  4.24  one-time appropriation and must be 
  4.25  repaid by January 1, 2000.  The 
  4.26  appropriation is available for the 
  4.27  fiscal year ending June 30, 1998. 
  4.28  $100,000 the first year and $100,000 
  4.29  the second year is for grants to the 
  4.30  city of New Brighton, the project 
  4.31  coordinator and fiscal agent of the 
  4.32  north metro I-35W corridor coalition, 
  4.33  for the purposes of the project.  The 
  4.34  coalition shall share all results and 
  4.35  written reports with the metropolitan 
  4.36  council and the department of trade and 
  4.37  economic development. 
  4.38  $130,000 the first year and $155,000 
  4.39  the second year is for grants to the 
  4.40  metropolitan economic development 
  4.41  association. 
  4.42  $240,000 the first year and $265,000 
  4.43  the second year is for grants to Women 
  4.44  Venture.  
  4.45  Women Venture and the metropolitan 
  4.46  economic development association must, 
  4.47  in the first year, develop contacts and 
  4.48  relationships with the regional 
  4.49  initiatives selected under Minnesota 
  4.50  Statutes, section 116J.415, subdivision 
  4.51  3, and a plan to deliver their services 
  4.52  statewide.  In the second year, they 
  4.53  must generally offer their services 
  4.54  statewide. 
  4.55  $100,000 the first year and $100,000 
  4.56  the second year is for grants to create 
  4.57  and operate two community development 
  4.58  corporations that target Asian-Pacific 
  4.59  Minnesotans under Minnesota Statutes, 
  4.60  section 116J.982.  One must be in 
  4.61  Hennepin county and one must be in 
  4.62  Ramsey county. 
  4.63  Subd. 3.  Minnesota Trade Office 
  5.1        2,202,000      2,236,000
  5.2   $150,000 the first year and $150,000 
  5.3   the second year is for state 
  5.4   participation in the federal City-State 
  5.5   Leveraged Financing Program. 
  5.6   Subd. 4.  Tourism 
  5.7        8,175,000      8,205,000
  5.8                 Summary by Fund
  5.9   General               7,469,000     7,482,000
  5.10  Trunk Highway           706,000       723,000
  5.11  To develop maximum private sector 
  5.12  involvement in tourism, $2,500,000 the 
  5.13  first year and $2,500,000 the second 
  5.14  year of the amounts appropriated for 
  5.15  marketing activities is contingent upon 
  5.16  receipt of an equal contribution of 
  5.17  nonstate sources that have been 
  5.18  certified by the commissioner.  Up to 
  5.19  one-half of the match may be given in 
  5.20  in-kind contributions.  This 
  5.21  appropriation may not be spent until 
  5.22  the money is matched. 
  5.23  In order to maximize marketing grant 
  5.24  benefits, the commissioner must give 
  5.25  priority for joint venture marketing 
  5.26  grants to organizations with year-round 
  5.27  sustained tourism activities.  For 
  5.28  programs and projects submitted, the 
  5.29  commissioner must give priority to 
  5.30  those that attract nonresident 
  5.31  travelers to the state. 
  5.32  Any unexpended money from general fund 
  5.33  appropriations made under this 
  5.34  subdivision do not cancel, but must be 
  5.35  placed in a special advertising account 
  5.36  for use by the office of tourism to 
  5.37  purchase additional media. 
  5.38  If an appropriation for either year for 
  5.39  grants is not sufficient, the 
  5.40  appropriation for the other year is 
  5.41  available for it.  
  5.42  The commissioner may use grant dollars 
  5.43  or the value of in-kind services to 
  5.44  provide the state contribution for the 
  5.45  partnership program. 
  5.46  $50,000 in the first year is to make 
  5.47  grants to the University of Minnesota 
  5.48  tourism center to research the needs of 
  5.49  the tourism and travel industry in 
  5.50  Minnesota. 
  5.51  $329,000 the first year and $329,000 
  5.52  the second year is for the Minnesota 
  5.53  film board.  This appropriation is 
  5.54  available only upon receipt by the 
  5.55  board of $1 in matching contributions 
  5.56  of money or in-kind from nonstate 
  5.57  sources for every $3 provided by this 
  5.58  appropriation.  
  6.1   $500,000 the first year and $500,000 
  6.2   the second year is for grants from the 
  6.3   department of trade and economic 
  6.4   development to the Minnesota film board 
  6.5   for the film production jobs fund in 
  6.6   Minnesota Statutes, section 116J.543. 
  6.7   Subd. 5.  Administration 
  6.8        2,971,000      3,028,000
  6.9   Subd. 6.  Information and Analysis
  6.10       1,408,000      1,437,000
  6.11  Sec. 3.  MINNESOTA TECHNOLOGY, INC.    9,437,000      9,937,000
  6.12  $7,605,000 the first year and 
  6.13  $8,105,000 the second year is for 
  6.14  transfer from the general fund to the 
  6.15  Minnesota Technology, Inc. fund. 
  6.16  $1,500,000 the first year and 
  6.17  $2,000,000 the second year is for a 
  6.18  technology partnership fund to make 
  6.19  investments of $20,000 to $100,000 in 
  6.20  businesses partnering with faculty 
  6.21  members at Minnesota academic 
  6.22  institutions.  Any unencumbered balance 
  6.23  remaining in the first year does not 
  6.24  cancel but is available for the second 
  6.25  year of the biennium. 
  6.26  $75,000 the first year and $75,000 the 
  6.27  second year is for grants to Minnesota 
  6.28  Inventors Congress. 
  6.29  $594,000 the first year and $594,000 
  6.30  the second year is for grants to 
  6.31  Minnesota Project Innovation.  
  6.32  Minnesota Project Innovation must open 
  6.33  and maintain an office in Northeastern 
  6.34  Minnesota. 
  6.35  $950,000 the first year and $950,000 
  6.36  the second year is for grants to 
  6.37  Natural Resources Research Institute.  
  6.38  $113,000 the first year and $113,000 
  6.39  the second year is for grants to 
  6.40  Minnesota Council for Quality. 
  6.41  $100,000 the first year and $100,000 
  6.42  the second year is for grants to 
  6.43  Minnesota Cold Weather Research Center. 
  6.44  Sec. 4.  WORLD TRADE CENTER CORP.         78,000 
  6.45  $78,000 the first year is to retire the 
  6.46  debt of the Minnesota World Trade 
  6.47  Center.  In addition, the Minnesota 
  6.48  trade office may transfer $50,000 each 
  6.49  year to the World Trade Center for 
  6.50  services to agencies, nonprofits, and 
  6.51  public organizations. 
  6.52  Sec. 5.  ECONOMIC SECURITY
  6.53  Subdivision 1.  Total 
  6.54  Appropriation                         39,960,000     32,628,000
  7.1   The amount that may be spent from this 
  7.2   appropriation for certain programs are 
  7.3   specified in the following subdivisions.
  7.4   Subd. 2.  Workforce Rehabilitation Services
  7.5       19,638,000     19,643,000
  7.6   $1,578,000 the first year and 
  7.7   $2,078,000 the second year is for 
  7.8   centers for independent living. 
  7.9   $423,000 the first year and $423,000 
  7.10  the second year is for mentally ill 
  7.11  employment support services authorized 
  7.12  by Minnesota Statutes, section 268A.13. 
  7.13  $500,000 the first year is to provide 
  7.14  services to people with severe 
  7.15  impairment to employment, as defined in 
  7.16  Minnesota Statutes, section 268A.15, 
  7.17  subdivision 1a.  Of this appropriation, 
  7.18  five percent is for administrative 
  7.19  costs. 
  7.20  $100,000 in the first year and $100,000 
  7.21  in the second year is for grants to the 
  7.22  Minnesota employment center for deaf 
  7.23  and hard-of-hearing people. 
  7.24  Subd. 3.  State Services for the Blind 
  7.25       3,735,000      3,816,000
  7.26  This appropriation may be supplemented 
  7.27  by funds provided by the Friends of the 
  7.28  Communication Center, for support of 
  7.29  Services for the Blind's Communication 
  7.30  Center, which serves all blind and 
  7.31  visually handicapped Minnesotans.  The 
  7.32  commissioner shall report to the 
  7.33  legislature on a biennial basis the 
  7.34  funds provided by the Friends of the 
  7.35  Communication Center.  The commissioner 
  7.36  may not require employees to 
  7.37  participate in intensive blindness 
  7.38  sensitivity training in which the 
  7.39  employees are blindfolded or otherwise 
  7.40  simulate blindness, unless the employee 
  7.41  is a manager or a counselor. 
  7.42  Subd. 4.  Workforce Preparation 
  7.43      14,987,000      7,769,000
  7.44  $300,000 the first year and $300,000 
  7.45  the second year is for youth 
  7.46  intervention programs under Minnesota 
  7.47  Statutes, section 268.30, subdivisions 
  7.48  1 and 2.  Funding may be used to expand 
  7.49  existing programs to serve unmet needs 
  7.50  and to create new programs in 
  7.51  underserved areas.  This appropriation 
  7.52  is available until spent. 
  7.53  $30,000 in fiscal year 1998 is for a 
  7.54  grant to the city of Champlin for 
  7.55  creating and expanding curfew 
  7.56  enforcement.  The program must have 
  7.57  clearly established neighborhood, 
  7.58  community, and family measures of 
  8.1   success and must report to the 
  8.2   commissioner of economic security on 
  8.3   the achievement of these outcomes on or 
  8.4   before June 30, 1998. 
  8.5   Notwithstanding Minnesota Statutes, 
  8.6   section 268.022, subdivision 2, the 
  8.7   commissioner of finance shall transfer 
  8.8   to the general fund from the dedicated 
  8.9   fund $3,500,000 in the first year and 
  8.10  $3,500,000 in the second year of the 
  8.11  money collected through the special 
  8.12  assessment established in Minnesota 
  8.13  Statutes, section 268.022, subdivision 
  8.14  1. 
  8.15  Of this appropriation, $6,000,000 the 
  8.16  first year is for summer youth 
  8.17  employment programs. 
  8.18  Of the money appropriated for the 
  8.19  summer youth employment programs for 
  8.20  the first year, $750,000 is immediately 
  8.21  available.  Any remaining balance of 
  8.22  the immediately available money is 
  8.23  available for the year in which it is 
  8.24  appropriated.  If the appropriation for 
  8.25  either year of the biennium is 
  8.26  insufficient, money may be transferred 
  8.27  from the appropriation for the other 
  8.28  year. 
  8.29  $550,000 the first year and $550,000 
  8.30  the second year is for youth employment 
  8.31  and for housing for the homeless 
  8.32  through the YOUTHBUILD program.  A 
  8.33  Minnesota YOUTHBUILD program funded 
  8.34  under this section as authorized in 
  8.35  Minnesota Statutes, sections 268.361 to 
  8.36  268.367, qualifies as an approved 
  8.37  training program under Minnesota Rules, 
  8.38  part 5200.0930, subpart 1. 
  8.39  $250,000 the first year and $250,000 
  8.40  the second year is for the learn to 
  8.41  earn summer youth employment program 
  8.42  established in Laws 1995, chapter 224, 
  8.43  section 39.  This appropriation is 
  8.44  available until spent. 
  8.45  $1,000,000 the first year and 
  8.46  $1,050,000 the second year is to 
  8.47  supplement the activities of the Job 
  8.48  Training Partnership Act (JTPA), Title 
  8.49  IIA program, as described in United 
  8.50  States Code, title 29, sections 1501 to 
  8.51  1792.  The appropriation is to provide 
  8.52  services to TANF eligible recipients.  
  8.53  The appropriation shall be allocated in 
  8.54  accordance with the Job Training 
  8.55  Partnership Act requirements for 
  8.56  allowable activities and is subject to 
  8.57  cost limitations, eligibility criteria, 
  8.58  and other operational guidelines of the 
  8.59  act.  Any unencumbered balance does not 
  8.60  cancel at the end of the first year and 
  8.61  is available for the second year of the 
  8.62  program.  The commissioner may use up 
  8.63  to five percent of the appropriation 
  8.64  for state operations.  This 
  8.65  appropriation is available until 
  9.1   expended. 
  9.2   $250,000 the first year and $250,000 
  9.3   the second year is to operate a 
  9.4   community work empowerment support 
  9.5   group demonstration project in at least 
  9.6   two "weed and seed" sites.  A 
  9.7   demonstration project must be operated 
  9.8   for at least two years.  At least one 
  9.9   of the sites must be located outside of 
  9.10  the metropolitan seven-county area.  A 
  9.11  project consists of empowerment groups 
  9.12  of individuals that are in the process 
  9.13  of obtaining or have obtained jobs, 
  9.14  including those in the welfare-to-work 
  9.15  programs, or are working out problems 
  9.16  of attaining self-sufficiency.  The 
  9.17  groups must separately meet at least 
  9.18  monthly for at least two hours.  Each 
  9.19  group meeting must include empower 
  9.20  mentors whose responsibility will be to 
  9.21  conduct the meeting.  Group members 
  9.22  must be paid at least $25 for each 
  9.23  meeting attended.  The sites will 
  9.24  report to the commissioner on a 
  9.25  semiannual basis regarding the progress 
  9.26  achieved at the meetings.  The purpose 
  9.27  of the group is to:  
  9.28  (1) share information among group 
  9.29  members as to the successes and 
  9.30  problems encountered in the 
  9.31  individual's employment goals; 
  9.32  (2) provide a forum for individuals 
  9.33  involved in moving to self-sufficiency 
  9.34  to share their experiences and 
  9.35  strategies and to support and empower 
  9.36  each other; and 
  9.37  (3) to provide feedback to the 
  9.38  commissioner concerning the best 
  9.39  strategies to achieve the empowerment 
  9.40  support group's objectives. 
  9.41  $500,000 is for a grant to the center 
  9.42  for victims of torture to design and 
  9.43  develop training to educate health care 
  9.44  and human service workers on levels of 
  9.45  sensitive care and how to make 
  9.46  referrals and to establish a network of 
  9.47  care providers to do pro bono care for 
  9.48  torture survivors so as to enable a 
  9.49  rapid integration into communities and 
  9.50  labor markets by torture victims.  This 
  9.51  is a one-time appropriation requiring a 
  9.52  one-to-one nonstate, in-kind match, and 
  9.53  is available until expended. 
  9.54  Subd. 5.  Workforce Exchange 
  9.55       1,600,000      1,400,000
  9.56  $1,600,000 the first year and 
  9.57  $1,400,000 the second year is to 
  9.58  supplement the federal workforce center 
  9.59  initiative which integrates local 
  9.60  employment and training services, 
  9.61  providing a comprehensive system to job 
  9.62  seekers and employers. 
 10.1   Sec. 6.  HOUSING FINANCE AGENCY       27,532,000     26,532,000
 10.2   The amounts that may be spent from this 
 10.3   appropriation for certain programs are 
 10.4   specified below. 
 10.5   This appropriation is for transfer to 
 10.6   the housing development fund for the 
 10.7   programs specified.  This transfer is 
 10.8   part of the agency's permanent budget 
 10.9   base. 
 10.10  Spending limit on cost of general 
 10.11  administration of agency programs:  
 10.12        1998           1999
 10.13      11,017,000     11,678,000
 10.14  $13,486,000 is for the affordable 
 10.15  rental investment fund program.  To the 
 10.16  extent practicable, this appropriation 
 10.17  shall be used so that an approximately 
 10.18  equal number of housing units are 
 10.19  financed in the metropolitan area, as 
 10.20  defined in Minnesota Statutes, section 
 10.21  473.121, subdivision 2, and in the 
 10.22  nonmetropolitan area. 
 10.23  (a) In the area of the state outside 
 10.24  the metropolitan area, the agency must 
 10.25  work with groups in the funding regions 
 10.26  created under Minnesota Statutes, 
 10.27  section 116J.415, to assist the agency 
 10.28  in identifying the affordable housing 
 10.29  needed in each region in connection 
 10.30  with economic development and 
 10.31  redevelopment efforts and in 
 10.32  establishing priorities for uses of the 
 10.33  affordable rental investment fund.  The 
 10.34  groups must include the regional 
 10.35  development commissioners, the regional 
 10.36  organization selected under Minnesota 
 10.37  Statutes, section 116J.415, the private 
 10.38  industry councils, units of local 
 10.39  government, community action agencies, 
 10.40  the Minnesota housing partnership 
 10.41  network groups, local lenders, 
 10.42  for-profit and nonprofit developers, 
 10.43  and realtors.  In addition to 
 10.44  priorities developed by the group, the 
 10.45  agency must give a preference to 
 10.46  economically viable projects in which 
 10.47  units of local government, area 
 10.48  employers, and the private sector 
 10.49  contribute financial assistance.  
 10.50  (b) In the metropolitan area, the 
 10.51  commissioner shall collaborate with the 
 10.52  metropolitan council to identify the 
 10.53  priorities for use of the affordable 
 10.54  rental investment fund.  Funds 
 10.55  distributed in the metropolitan area 
 10.56  must be used consistent with the 
 10.57  objectives of the metropolitan 
 10.58  development guide, adopted under 
 10.59  Minnesota Statutes, section 473.145.  
 10.60  In addition to the priorities 
 10.61  identified in conjunction with the 
 10.62  metropolitan council, the agency shall 
 10.63  give preference to economically viable 
 11.1   projects that: 
 11.2   (1) include a contribution of financial 
 11.3   resources from units of local 
 11.4   government and area employers; 
 11.5   (2) take into account the availability 
 11.6   of transportation in the community; and 
 11.7   (3) take into account the job training 
 11.8   efforts in the community. 
 11.9   $6,800,000 is for the community 
 11.10  rehabilitation program. 
 11.11  Of this amount for the community 
 11.12  rehabilitation program, $500,000 is for 
 11.13  a grant to provide matching funds to an 
 11.14  organization or consortium of 
 11.15  organizations awarded a grant from the 
 11.16  metropolitan livable communities 
 11.17  demonstration program to develop 
 11.18  affordable and lifecycle housing in St. 
 11.19  Paul.  The project must be based upon a 
 11.20  comprehensive community planning 
 11.21  process that creates a long-term plan 
 11.22  to revitalize a neighborhood and must 
 11.23  include compact development with 
 11.24  linkages to employment, transit, and 
 11.25  affordable lifecycle housing. 
 11.26  Of the amount for the community 
 11.27  rehabilitation program, $1,000,000 is 
 11.28  for the purpose of acquiring, 
 11.29  demolishing, removing, rehabilitating, 
 11.30  and reconfiguring multiple-unit 
 11.31  residential property that has an 
 11.32  occupancy rate of 50 percent or less to 
 11.33  reduce concentrations of substandard 
 11.34  multiple-unit rental housing.  Funds 
 11.35  are only available for projects that 
 11.36  will result in the creation of a full 
 11.37  range of housing opportunities, 
 11.38  including housing opportunities for 
 11.39  residents of the affected multiple-unit 
 11.40  rental housing, that will increase the 
 11.41  tax base and income mix of the 
 11.42  community.  For the purposes of this 
 11.43  paragraph, "substandard" means a 
 11.44  building that cannot be modified to 
 11.45  satisfy the applicable building codes 
 11.46  at a cost of less than 50 percent of 
 11.47  the total development cost of a new 
 11.48  building of the same square footage and 
 11.49  type on the site. 
 11.50  $187,000 the first year and $187,000 
 11.51  the second year is for the urban Indian 
 11.52  housing program under Minnesota 
 11.53  Statutes, section 462A.07, subdivision 
 11.54  15.  
 11.55  $1,683,000 the first year and 
 11.56  $1,683,000 the second year is for the 
 11.57  tribal Indian housing program under 
 11.58  Minnesota Statutes, section 462A.07, 
 11.59  subdivision 14.  
 11.60  $186,000 the first year and $186,000 
 11.61  the second year is for the Minnesota 
 11.62  rural and urban homesteading program 
 12.1   under Minnesota Statutes, section 
 12.2   462A.057.  
 12.3   $100,000 the first year and $100,000 
 12.4   the second year is for the capacity 
 12.5   building grant program for projects 
 12.6   under the neighborhood land trust 
 12.7   program in Minnesota Statutes, sections 
 12.8   462A.30 and 462A.31. 
 12.9   $4,287,000 the first year and 
 12.10  $4,287,000 the second year is for the 
 12.11  housing rehabilitation and 
 12.12  accessibility program under Minnesota 
 12.13  Statutes, section 462A.05, subdivision 
 12.14  14a.  
 12.15  $2,700,000 the first year and 
 12.16  $2,700,000 the second year is for the 
 12.17  rent assistance for family 
 12.18  stabilization program under Minnesota 
 12.19  Statutes, section 462A.205.  
 12.20  $2,375,000 the first year and 
 12.21  $2,375,000 the second year is for the 
 12.22  family homeless prevention and 
 12.23  assistance program. 
 12.24  $358,000 the first year and $358,000 
 12.25  the second year is for the emergency 
 12.26  mortgage foreclosure prevention and 
 12.27  emergency rental assistance program. 
 12.28  $50,000 the first year and $50,000 the 
 12.29  second year is for home equity 
 12.30  conversion counseling grants under 
 12.31  Minnesota Statutes, section 462A.28.  
 12.32  The money must be used for a counseling 
 12.33  service which only counsels for home 
 12.34  equity conversions. 
 12.35  $2,348,000 the first year and 
 12.36  $2,348,000 the second year is for the 
 12.37  housing trust fund to be deposited in 
 12.38  the housing trust fund account created 
 12.39  under Minnesota Statutes, section 
 12.40  462A.201, and used for the purposes 
 12.41  provided in that section.  Of this 
 12.42  amount, $550,000 each year must be used 
 12.43  for transitional housing. 
 12.44  $1,200,000 the first year and 
 12.45  $1,200,000 the second year is for home 
 12.46  ownership assistance under Minnesota 
 12.47  Statutes, section 462A.21, subdivision 
 12.48  8. 
 12.49  Sec. 7.  COMMERCE 
 12.50  Subdivision 1.  Total 
 12.51  Appropriation                         16,004,000     16,178,000
 12.52                Summary by Fund
 12.53  General              14,240,000    14,572,000
 12.54  Petro Cleanup           957,000       780,000 
 12.55  Workers' 
 12.56  Compensation            462,000       476,000               
 13.1   Special Revenue         345,000       350,000 
 13.2   The amounts that may be spent from this 
 13.3   appropriation for each program are 
 13.4   specified in the following subdivisions.
 13.5   Subd. 2.  Financial Examinations 
 13.6        3,802,000      3,883,000
 13.7   Subd. 3.  Registration and Insurance 
 13.8        4,479,000      4,590,000
 13.9                 Summary by Fund
 13.10  General               4,017,000     4,114,000
 13.11  Workers' 
 13.12  Compensation            462,000       476,000               
 13.13  Subd. 4.  Enforcement and Licensing 
 13.14       3,945,000      4,031,000
 13.15                Summary by Fund
 13.16  General               3,600,000     3,681,000
 13.17  Special Revenue         345,000       350,000
 13.18  $345,000 the first year and $350,000 
 13.19  the second year is from the real estate 
 13.20  education, research, and recovery 
 13.21  account in the special revenue fund for 
 13.22  the purpose of Minnesota Statutes, 
 13.23  section 82.34, subdivision 6.  If the 
 13.24  appropriation from the special revenue 
 13.25  fund for either year is insufficient, 
 13.26  the appropriation for the other year is 
 13.27  available for it. 
 13.28  Subd. 5.  Petroleum Tank Release 
 13.29  Cleanup Board 
 13.30         957,000        780,000
 13.31  This appropriation is from the 
 13.32  petroleum tank release cleanup fund for 
 13.33  administration. 
 13.34  Subd. 6.  Administrative Services 
 13.35       2,821,000      2,894,000 
 13.36  Sec. 8.  BOARD OF ACCOUNTANCY            572,000        587,000
 13.37  Sec. 9.  BOARD OF ARCHITECTURE,
 13.38  ENGINEERING, LAND SURVEYING, 
 13.39  LANDSCAPE ARCHITECTURE, GEOLOGISTS, AND 
 13.40  INTERIOR DESIGN                          684,000        700,000 
 13.41  Sec. 10.  BOARD OF BARBER   
 13.42  EXAMINERS                                136,000        140,000
 13.43  Sec. 11.  BOARD OF BOXING                 79,000         82,000
 13.44  Sec. 12.  LABOR AND INDUSTRY 
 13.45  Subdivision 1.  Total 
 13.46  Appropriation                         25,014,000     25,084,000
 14.1                 Summary by Fund
 14.2   General               4,041,000     4,112,000
 14.3   Workers' 
 14.4   Compensation         20,973,000    20,972,000
 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       12,127,000     12,135,000
 14.10                Summary by Fund
 14.11  General                 100,000       100,000
 14.12  Workers' 
 14.13  Compensation         12,027,000    12,035,000
 14.14  $100,000 the first year and $100,000 
 14.15  the second year is for grants to the 
 14.16  Vinland Center for rehabilitation 
 14.17  service. 
 14.18  Notwithstanding Minnesota Statutes, 
 14.19  section 79.253, $47,000 the first year 
 14.20  and $47,000 the second year is 
 14.21  appropriated from the assigned risk 
 14.22  safety account in the special 
 14.23  compensation fund to the commissioner 
 14.24  of labor and industry for the purpose 
 14.25  of providing information to employers 
 14.26  regarding the prevention of violence in 
 14.27  the workplace. 
 14.28  Subd. 3.  Workplace Services 
 14.29       6,393,000      6,713,000
 14.30                Summary by Fund
 14.31  General               2,875,000     2,931,000
 14.32  Workers'
 14.33  Compensation          3,518,000     3,782,000
 14.34  Subd. 4.  General Support 
 14.35       6,494,000      6,236,000
 14.36                Summary by Fund
 14.37  General               1,066,000     1,081,000
 14.38  Workers' 
 14.39  Compensation          5,428,000     5,155,000
 14.40  $204,000 the first year and $204,000 
 14.41  the second year is for labor education 
 14.42  and advancement program grants.  
 14.43  Subd. 5.  Daedalus Project
 14.44  $2,500,000 appropriated in Laws 1995, 
 14.45  chapter 224, section 12, subdivision 2, 
 14.46  from the workers' compensation fund for 
 14.47  the Daedalus imaging project does not 
 15.1   cancel on June 30, 1997, but is 
 15.2   available until June 30, 1999. 
 15.3   Sec. 13.  MEDIATION SERVICES 
 15.4   Subdivision 1.  Total
 15.5   Appropriation                          2,061,000      2,074,000
 15.6   Subd. 2.  Mediation Services
 15.7        1,646,000      1,659,000
 15.8   Subd. 3.  Labor Management Cooperation Grants
 15.9          302,000        302,000
 15.10  $302,000 the first year and $302,000 
 15.11  the second year is for grants to area 
 15.12  labor management committees.  Any 
 15.13  unencumbered balance remaining at the 
 15.14  end of the first year does not cancel 
 15.15  but is available for the second year. 
 15.16  Subd. 4.  Office of Dispute Resolution
 15.17         113,000        113,000
 15.18  Sec. 14.  WORKERS' COMPENSATION 
 15.19  COURT OF APPEALS                       1,464,000      1,464,000
 15.20  This appropriation is from the workers' 
 15.21  compensation fund. 
 15.22  Sec. 15.  LABOR INTERPRETIVE 
 15.23  CENTER                                   207,000        214,000
 15.24  Sec. 16.  PUBLIC UTILITIES  
 15.25  COMMISSION                             3,326,000      3,400,000
 15.26  Sec. 17.  DEPARTMENT OF PUBLIC SERVICE 
 15.27  Subdivision 1.  Total       
 15.28  Appropriation                          9,008,000      9,116,000
 15.29  The amounts that may be spent from this 
 15.30  appropriation for each program are 
 15.31  specified in the following subdivisions.
 15.32  Subd. 2.  Telecommunications
 15.33         785,000        803,000
 15.34  Subd. 3.  Weights and Measures 
 15.35       3,076,000      3,070,000
 15.36  Subd. 4.  Information and Operations 
 15.37  Management 
 15.38       1,501,000      1,532,000
 15.39  Subd. 5.  Energy 
 15.40       3,646,000      3,711,000
 15.41  $588,000 the first year and $588,000 
 15.42  the second year is for transfer to the 
 15.43  energy and conservation account 
 15.44  established in Minnesota Statutes, 
 15.45  section 216B.241, subdivision 2a, for 
 15.46  programs administered by the 
 16.1   commissioner of children, families, and 
 16.2   learning to improve the energy 
 16.3   efficiency of residential oil-fired 
 16.4   heating plants in low-income households 
 16.5   and, when necessary, to provide 
 16.6   weatherization services to the homes. 
 16.7   Sec. 18.  MINNESOTA HISTORICAL 
 16.8   SOCIETY 
 16.9   Subdivision 1.  Total       
 16.10  Appropriation                         22,820,000     23,156,000
 16.11  The amounts that may be spent from this 
 16.12  appropriation for each program are 
 16.13  specified in the following subdivisions.
 16.14  The Minnesota historical society is 
 16.15  eligible for a salary supplement in the 
 16.16  same manner as state agencies if one is 
 16.17  available.  Employees of the Minnesota 
 16.18  historical society will be paid in 
 16.19  accordance with the appropriate pay 
 16.20  plan. 
 16.21  Subd. 2.  Education and
 16.22  Outreach                              11,588,000     11,903,000
 16.23  Of this amount, $150,000 each year is 
 16.24  for expenses associated with the 
 16.25  territorial sesquicentennial and 
 16.26  millennium celebrations. 
 16.27  Subd. 3.  Preservation   
 16.28  and Access                             8,661,000      8,828,000
 16.29  Subd. 4.  Information Program
 16.30  Delivery                               2,095,000      2,097,000
 16.31  $2,000,000 the first year and 
 16.32  $2,000,000 the second year is for 
 16.33  technology improvements that will 
 16.34  expand core capacity and improve 
 16.35  service and program delivery.  Money 
 16.36  spent from this appropriation for 
 16.37  system development must not be included 
 16.38  in the budget base for the biennium 
 16.39  ending June 30, 2001. 
 16.40  Subd. 5.  Fiscal Agent                   476,000        328,000
 16.41  (a) Sibley House Association 
 16.42          88,000         88,000
 16.43  This appropriation is available for 
 16.44  operation and maintenance of the Sibley 
 16.45  House and related buildings on the Old 
 16.46  Mendota state historic site operated by 
 16.47  the Sibley House Association.  
 16.48  (b) Minnesota International Center 
 16.49          50,000         50,000
 16.50  (c) Minnesota Air National   
 16.51  Guard Museum 
 16.52          19,000 
 16.53  (d) Institute for Learning and
 17.1   Teaching - Project 120
 17.2           90,000         90,000 
 17.3   (e) Minnesota Military Museum
 17.4           29,000        
 17.5   (f) Farmamerica
 17.6          100,000        100,000 
 17.7   Notwithstanding any other law, this 
 17.8   grant may be used for operational 
 17.9   purposes. 
 17.10  (g) $50,000 is for a grant to the 
 17.11  Hubert H. Humphrey museum.  The grant 
 17.12  shall be used for planning, and to the 
 17.13  extent possible, the design and 
 17.14  construction drawings for the Hubert H. 
 17.15  Humphrey museum to be located in 
 17.16  Waverly, Minnesota. 
 17.17  (h) Balances Forward
 17.18  Any unencumbered balance remaining in 
 17.19  this subdivision the first year does 
 17.20  not cancel but is available for the 
 17.21  second year of the biennium. 
 17.22  Subd. 6.  Preservation Grants 
 17.23  Notwithstanding Laws 1994, chapter 643, 
 17.24  section 19, subdivision 5, the 
 17.25  historical society may award grants 
 17.26  from the unexpended balance under that 
 17.27  subdivision to public agencies or 
 17.28  entities based on historical 
 17.29  preservation purposes and needs.  The 
 17.30  society shall require significant 
 17.31  matching money for such projects.  A 
 17.32  grant awarded under this section for 
 17.33  historical preservation is not subject 
 17.34  to the requirements of Minnesota 
 17.35  Statutes, section 16A.695. 
 17.36  Subd. 7.  Bemidji Depot 
 17.37  $50,000 is for a grant to the city of 
 17.38  Bemidji.  The city may use the grant 
 17.39  only to pay up to one-half of the total 
 17.40  costs, including acquisition, design, 
 17.41  other preliminary work, and 
 17.42  construction costs, for the purchase or 
 17.43  repair of an abandoned historic 
 17.44  railroad depot within the city and its 
 17.45  conversion to a historical museum and 
 17.46  facility for the Beltrami county 
 17.47  historical society. 
 17.48  Sec. 19.  MINNESOTA MUNICIPAL
 17.49  BOARD                                    307,000        315,000
 17.50  Any unencumbered balance remaining in 
 17.51  the first year does not cancel but is 
 17.52  available for the second year of the 
 17.53  biennium.  
 17.54  Sec. 20.  COUNCIL ON BLACK
 17.55  MINNESOTANS                              281,000        286,000
 18.1   Sec. 21.  CHICANO-LATINO    
 18.2   AFFAIRS COUNCIL                          300,000        305,000
 18.3   During the biennium ending June 30, 
 18.4   1999, council publications may contain 
 18.5   advertising.  Receipts from advertising 
 18.6   are appropriated to the council for 
 18.7   purposes of council publications.  For 
 18.8   the biennium ending June 30, 1999, the 
 18.9   council shall report to the legislature 
 18.10  on the revenues and expenditures from 
 18.11  advertising by February 15 each year. 
 18.12  Sec. 22.  COUNCIL ON
 18.13  ASIAN-PACIFIC MINNESOTANS                272,000        269,000
 18.14  Sec. 23.  INDIAN AFFAIRS
 18.15  COUNCIL                                  523,000        535,000
 18.16  For the biennium ending June 30, 1999, 
 18.17  federal money received for the Indian 
 18.18  affairs council is appropriated to the 
 18.19  council and added to this appropriation.
 18.20  Sec. 24.  CHILDREN, FAMILIES, AND 
 18.21  LEARNING 
 18.22  Subdivision 1.  Total 
 18.23  Appropriation                          1,100,000         50,000
 18.24  Subd. 2.  Meadowbrook Collaborative 
 18.25  Of this amount, $50,000 the first year 
 18.26  is for a grant to the St. Louis Park 
 18.27  Meadowbrook Collaborative Housing 
 18.28  Project to enhance youth outreach 
 18.29  services and to provide educational and 
 18.30  recreational programming for youth at 
 18.31  risk through the development of formal 
 18.32  after school programming and weekend 
 18.33  youth activities.  The collaborative 
 18.34  shall include a cross-section of public 
 18.35  and private sector community 
 18.36  representatives to develop services to 
 18.37  address specific community and social 
 18.38  needs of children and youth. 
 18.39  These funds shall also be made 
 18.40  available to assist in staffing and 
 18.41  program development for the Meadowbrook 
 18.42  Youth Center.  The center shall focus 
 18.43  on reducing truancy, developing assets 
 18.44  for at-risk youth, developing programs 
 18.45  for structured time thus minimizing 
 18.46  opportunities for adverse activities, 
 18.47  and mentoring with adults. 
 18.48  $25,000 of the amount available is 
 18.49  available on the day following final 
 18.50  enactment of this section on a nonmatch 
 18.51  basis to the collaborative to develop 
 18.52  at-risk youth programs.  The remainder 
 18.53  is only available on a matching grant 
 18.54  basis. 
 18.55  Subd. 3.  Energy Assistance 
 18.56  Of this amount, $1,000,000 is for 
 18.57  low-income energy assistance. 
 19.1   Subd. 4.  Model School for Chronic 
 19.2   Truancy and Other Behavior Problems 
 19.3   Of this amount, $50,000 the first year 
 19.4   and $50,000 the second year is for the 
 19.5   purpose of funding the efforts of 
 19.6   independent school district No. 77, 
 19.7   Mankato, to participate in an 
 19.8   interagency cooperative program for 
 19.9   at-risk middle and junior high school 
 19.10  students in adjudication for chronic 
 19.11  truancy and other behavior problems.  
 19.12  The program, which involves a maximum 
 19.13  of 12 youth, encourages individualized 
 19.14  teaching plans, regular parent 
 19.15  meetings, and collaboration between the 
 19.16  student's probation officer, social 
 19.17  worker, teachers, administrators, and 
 19.18  any law enforcement officials working 
 19.19  with the youth. 
 19.20  Sec. 25.  MILITARY AFFAIRS                50,000         50,000 
 19.21  $50,000 the first year and $50,000 the 
 19.22  second year is appropriated from the 
 19.23  general fund to the adjutant general 
 19.24  for the biennium ending June 30, 1999.  
 19.25  The appropriation is for the purpose of 
 19.26  coordinating agreements with community 
 19.27  empowerment support groups for the use 
 19.28  of the military training center and 
 19.29  related personnel at Camp Ripley for 
 19.30  providing what are commonly referred to 
 19.31  as "soft skills" job skills training to 
 19.32  people, including those who are 
 19.33  expected to make the transition from 
 19.34  welfare to work.  "Soft skills" include 
 19.35  such things as being punctual and 
 19.36  following directions.  The adjutant 
 19.37  general may enter into contracts with 
 19.38  other state departments and local 
 19.39  agencies for the purpose of using the 
 19.40  facilities at Camp Ripley and staff to 
 19.41  provide that training. 
 19.42  Sec. 26.  RURAL POLICY AND DEVELOPMENT 
 19.43  CENTER; APPROPRIATION; ENDOWMENT 
 19.44  $13,000,000 is appropriated from the 
 19.45  general fund to the center for rural 
 19.46  policy and development account. 
 19.47  $10,000,000 of the appropriation does 
 19.48  not cancel and does not require a 
 19.49  match.  Up to $3,000,000 of this 
 19.50  appropriation must be matched by June 
 19.51  30, 1999, or it cancels to the extent 
 19.52  it is not matched.  $100,000 is 
 19.53  appropriated to Mankato State 
 19.54  University for the purpose of starting 
 19.55  up the rural policy and development 
 19.56  center. 
 19.57  Sec. 27.  UNIVERSITY OF MINNESOTA 
 19.58  INTERNATIONAL TRADE ACTIVITIES; 
 19.59  APPROPRIATION 
 19.60  (a) $600,000 is appropriated from the 
 19.61  general fund to the regents of the 
 19.62  University of Minnesota for the first 
 19.63  year. 
 20.1   (b) Of this appropriation, $100,000 is 
 20.2   for research and development to provide 
 20.3   application, content, and technical 
 20.4   assistance to support global United 
 20.5   Nations tradepoints located in 
 20.6   Minnesota. 
 20.7   (c) Of this appropriation, $500,000 is 
 20.8   for the operation of a secure 
 20.9   electronic authentication link 
 20.10  laboratory. 
 20.11  Sec. 28.  APPROPRIATION; CITY OF 
 20.12  ANDOVER 
 20.13  $300,000 is appropriated from the 
 20.14  contaminated site cleanup and 
 20.15  development account.  The appropriation 
 20.16  shall be funded by tax proceeds 
 20.17  collected under Minnesota Statutes, 
 20.18  section 270.91, and deposited into the 
 20.19  account.  The grant shall be used for 
 20.20  the cleanup of contaminated land but 
 20.21  cannot be used for land acquisition. 
 20.22     Sec. 29.  [LEAD HAZARD REDUCTION; ADVISORY TASK FORCE.] 
 20.23     Subdivision 1.  [PURPOSE; DUTIES.] An advisory task force 
 20.24  on lead hazard reduction is established to: 
 20.25     (1) study and propose a program to certify residential 
 20.26  rental property as lead-safe; 
 20.27     (2) study and propose essential maintenance practices and 
 20.28  standard treatments to ensure that a residence remains lead-safe 
 20.29  after certification; 
 20.30     (3) identify the current barriers that cause lead liability 
 20.31  exclusion riders to be added to property owner insurance 
 20.32  liability policies; 
 20.33     (4) identify the legal rights and responsibilities of 
 20.34  landlords to provide lead-safe housing and the legal rights and 
 20.35  responsibilities of both landlords and tenants to maintain 
 20.36  lead-safe property; and 
 20.37     (5) study the legal liability of landlords and tenants when 
 20.38  a child becomes lead poisoned and propose methods to reduce 
 20.39  property owner liability while still protecting the legal rights 
 20.40  of children who become lead poisoned. 
 20.41     The task force shall report its findings and proposals to 
 20.42  the 1998 legislature. 
 20.43     Subd. 2.  [MEMBERSHIP.] Members of the advisory task force 
 20.44  on lead hazard reduction are as follows: 
 21.1      (1) the chairs, or the chairs' designees, of the house of 
 21.2   representatives housing and housing finance division, and the 
 21.3   family and early childhood education finance division; 
 21.4      (2) the chairs, or the chairs' designees, of the senate 
 21.5   jobs, energy, and community development committee, and the 
 21.6   family and early childhood education finance division; 
 21.7      (3) the commissioner of commerce or the commissioner's 
 21.8   designee; 
 21.9      (4) the commissioner of the housing finance agency or the 
 21.10  commissioner's designee; 
 21.11     (5) the commissioner of health or the commissioner's 
 21.12  designee; and 
 21.13     (6) 12 members appointed jointly by the commissioner of 
 21.14  commerce and the commissioner of the housing finance agency to 
 21.15  represent the following interests:  landlords, tenants, 
 21.16  attorneys practicing landlord-tenant law, parents of children 
 21.17  with lead poisoning, swab teams, insurers, the education 
 21.18  association, family physicians and pediatricians, realtors, the 
 21.19  Children's Defense Fund, the federal Environmental Protection 
 21.20  Agency, and local boards of health. 
 21.21     Subd. 3.  [CHAIR.] The commissioners of the housing finance 
 21.22  agency and the department of commerce shall convene the first 
 21.23  meeting of the advisory task force.  At the advisory task 
 21.24  force's first meeting, the members shall select a member to 
 21.25  serve as chair. 
 21.26     Subd. 4.  [TECHNICAL ASSISTANCE.] The commissioners of 
 21.27  health, commerce, and the housing finance agency and the 
 21.28  attorney general shall provide assistance to the advisory task 
 21.29  force, including technical assistance relating to lead hazards 
 21.30  and the reduction of lead hazards, insurance, landlord-tenant 
 21.31  law, and other assistance as requested by the task force. 
 21.32     Subd. 5.  [EXPIRATION.] This section expires June 30, 1998. 
 21.33     Sec. 30.  [REPORT; RESIDENTIAL REHABILITATION LOANS.] 
 21.34     The Minnesota housing finance agency shall submit a report 
 21.35  to the legislature by February 1, 1998.  The report shall 
 21.36  describe how the agency shall provide funding for not less than 
 22.1   2,000 residential rehabilitation loans per year for not less 
 22.2   than ten years from its community fix-up fund for homes located 
 22.3   anywhere in fully developed cities.  A fully developed city 
 22.4   includes any city, except cities of the first class, within the 
 22.5   fully developed area described in Pub. No. 78-94-022 (February 
 22.6   15, 1994) titled "Keeping the Twin Cities Vital:  Regional 
 22.7   Strategies for Change In The Fully Developed Area" prepared by 
 22.8   the Metropolitan Council.  The terms of the loans and the income 
 22.9   limitations for loans available in fully developed cities shall 
 22.10  be consistent with other fix-up fund loans except that the 
 22.11  interest rate shall not exceed an actuarial percentage rate of 
 22.12  five percent per annum.  The agency shall include in its report 
 22.13  any additional costs of administrating this loan program and 
 22.14  providing loans at the required interest rate. 
 22.15     Sec. 31.  [MINNESOTA TECHNOLOGY CORRIDOR TRANSFER.] 
 22.16     The grant to the Minnesota Technology Corridor Corporation, 
 22.17  a 501(c)(3) nonprofit corporation, provided in Laws 1995, 
 22.18  chapter 224, section 3, does not cancel and any remaining 
 22.19  balance that may exist upon the dissolution of the Minnesota 
 22.20  Technology Corridor Corporation shall be transferred to the 
 22.21  William C. Norris Institute, a 501(c)(3) nonprofit corporation. 
 22.22     Sec. 32.  [TASK FORCE; WELFARE REFORM BUDGET IMPACT.] 
 22.23     The commissioner of finance shall report to the legislature 
 22.24  by January 20, 1998, on the potential budget impact to each 
 22.25  state department and agency, including public institutions of 
 22.26  higher education, of the 1996 federal welfare reform legislation 
 22.27  and the response to that reform by the legislature, by 
 22.28  legislation contained in S.F. No. 1 in the 1997 session, if 
 22.29  enacted. 
 22.30     The commissioner shall report that potential budgetary 
 22.31  impact separately for each department and for each program, 
 22.32  including programs funded by pass through appropriations. 
 22.33     Each state department and agency must cooperate with the 
 22.34  commissioner in the preparation of the report. 
 22.35     The commissioner shall solicit input from the public about 
 22.36  the budgetary impacts. 
 23.1      Sec. 33.  Minnesota Statutes 1996, section 60A.23, 
 23.2   subdivision 8, is amended to read: 
 23.3      Subd. 8.  [SELF-INSURANCE OR INSURANCE PLAN ADMINISTRATORS 
 23.4   WHO ARE VENDORS OF RISK MANAGEMENT SERVICES.] (1)  [SCOPE.] This 
 23.5   subdivision applies to any vendor of risk management services 
 23.6   and to any entity which administers, for compensation, a 
 23.7   self-insurance or insurance plan.  This subdivision does not 
 23.8   apply (a) to an insurance company authorized to transact 
 23.9   insurance in this state, as defined by section 60A.06, 
 23.10  subdivision 1, clauses (4) and (5); (b) to a service plan 
 23.11  corporation, as defined by section 62C.02, subdivision 6; (c) to 
 23.12  a health maintenance organization, as defined by section 62D.02, 
 23.13  subdivision 4; (d) to an employer directly operating a 
 23.14  self-insurance plan for its employees' benefits; (e) to an 
 23.15  entity which administers a program of health benefits 
 23.16  established pursuant to a collective bargaining agreement 
 23.17  between an employer, or group or association of employers, and a 
 23.18  union or unions; or (f) to an entity which administers a 
 23.19  self-insurance or insurance plan if a licensed Minnesota insurer 
 23.20  is providing insurance to the plan and if the licensed insurer 
 23.21  has appointed the entity administering the plan as one of its 
 23.22  licensed agents within this state. 
 23.23     (2)  [DEFINITIONS.] For purposes of this subdivision the 
 23.24  following terms have the meanings given them. 
 23.25     (a) "Administering a self-insurance or insurance plan" 
 23.26  means (i) processing, reviewing or paying claims, (ii) 
 23.27  establishing or operating funds and accounts, or (iii) otherwise 
 23.28  providing necessary administrative services in connection with 
 23.29  the operation of a self-insurance or insurance plan. 
 23.30     (b) "Employer" means an employer, as defined by section 
 23.31  62E.02, subdivision 2. 
 23.32     (c) "Entity" means any association, corporation, 
 23.33  partnership, sole proprietorship, trust, or other business 
 23.34  entity engaged in or transacting business in this state. 
 23.35     (d) "Self-insurance or insurance plan" means a plan 
 23.36  providing life, medical or hospital care, accident, sickness or 
 24.1   disability insurance for the benefit of employees or members of 
 24.2   an association, or a plan providing liability coverage for any 
 24.3   other risk or hazard, which is or is not directly insured or 
 24.4   provided by a licensed insurer, service plan corporation, or 
 24.5   health maintenance organization. 
 24.6      (e) "Vendor of risk management services" means an entity 
 24.7   providing for compensation actuarial, financial management, 
 24.8   accounting, legal or other services for the purpose of designing 
 24.9   and establishing a self-insurance or insurance plan for an 
 24.10  employer. 
 24.11     (3)  [LICENSE.] No vendor of risk management services or 
 24.12  entity administering a self-insurance or insurance plan may 
 24.13  transact this business in this state unless it is licensed to do 
 24.14  so by the commissioner.  An applicant for a license shall state 
 24.15  in writing the type of activities it seeks authorization to 
 24.16  engage in and the type of services it seeks authorization to 
 24.17  provide.  The license may be granted only when the commissioner 
 24.18  is satisfied that the entity possesses the necessary 
 24.19  organization, background, expertise, and financial integrity to 
 24.20  supply the services sought to be offered.  The commissioner may 
 24.21  issue a license subject to restrictions or limitations upon the 
 24.22  authorization, including the type of services which may be 
 24.23  supplied or the activities which may be engaged in.  The license 
 24.24  fee is $100 $500 for the initial application and $500 for each 
 24.25  two-year renewal.  All licenses are for a period of two years. 
 24.26     (4)  [REGULATORY RESTRICTIONS; POWERS OF THE COMMISSIONER.] 
 24.27  To assure that self-insurance or insurance plans are financially 
 24.28  solvent, are administered in a fair and equitable fashion, and 
 24.29  are processing claims and paying benefits in a prompt, fair, and 
 24.30  honest manner, vendors of risk management services and entities 
 24.31  administering insurance or self-insurance plans are subject to 
 24.32  the supervision and examination by the commissioner.  Vendors of 
 24.33  risk management services, entities administering insurance or 
 24.34  self-insurance plans, and insurance or self-insurance plans 
 24.35  established or operated by them are subject to the trade 
 24.36  practice requirements of sections 72A.19 to 72A.30.  In lieu of 
 25.1   an unlimited guarantee from a parent corporation for a vendor of 
 25.2   risk management services or an entity administering insurance or 
 25.3   self-insurance plans, the commissioner may accept a surety bond 
 25.4   in a form satisfactory to the commissioner in an amount equal to 
 25.5   120 percent of the total amount of claims handled by the 
 25.6   applicant in the prior year.  If at any time the total amount of 
 25.7   claims handled during a year exceeds the amount upon which the 
 25.8   bond was calculated, the administrator shall immediately notify 
 25.9   the commissioner.  The commissioner may require that the bond be 
 25.10  increased accordingly. 
 25.11     (5)  [RULEMAKING AUTHORITY.] To carry out the purposes of 
 25.12  this subdivision, the commissioner may adopt rules pursuant to 
 25.13  sections 14.001 to 14.69.  These rules may: 
 25.14     (a) establish reporting requirements for administrators of 
 25.15  insurance or self-insurance plans; 
 25.16     (b) establish standards and guidelines to assure the 
 25.17  adequacy of financing, reinsuring, and administration of 
 25.18  insurance or self-insurance plans; 
 25.19     (c) establish bonding requirements or other provisions 
 25.20  assuring the financial integrity of entities administering 
 25.21  insurance or self-insurance plans; or 
 25.22     (d) establish other reasonable requirements to further the 
 25.23  purposes of this subdivision. 
 25.24     Sec. 34.  Minnesota Statutes 1996, section 65B.48, 
 25.25  subdivision 3, is amended to read: 
 25.26     Subd. 3.  Self-insurance, subject to approval of the 
 25.27  commissioner, is effected by filing with the commissioner in 
 25.28  satisfactory form: 
 25.29     (1) a continuing undertaking by the owner or other 
 25.30  appropriate person to pay tort liabilities or basic economic 
 25.31  loss benefits, or both, and to perform all other obligations 
 25.32  imposed by sections 65B.41 to 65B.71; 
 25.33     (2) evidence that appropriate provision exists for prompt 
 25.34  administration of all claims, benefits, and obligations provided 
 25.35  by sections 65B.41 to 65B.71; 
 25.36     (3) evidence that reliable financial arrangements, 
 26.1   deposits, or commitments exist providing assurance, 
 26.2   substantially equivalent to that afforded by a policy of 
 26.3   insurance complying with sections 65B.41 to 65B.71, for payment 
 26.4   of tort liabilities, basic economic loss benefits, and all other 
 26.5   obligations imposed by sections 65B.41 to 65B.71; and 
 26.6      (4) a nonrefundable initial application fee of $500 and an 
 26.7   annual renewal fee of $100 for political subdivisions and $250 
 26.8   for nonpolitical entities.  
 26.9      Sec. 35.  Minnesota Statutes 1996, section 79.255, is 
 26.10  amended by adding a subdivision to read: 
 26.11     Subd. 10.  [FEE.] A registration or exemption certificate 
 26.12  fee of $50 shall be paid. 
 26.13     Sec. 36.  Minnesota Statutes 1996, section 116J.01, 
 26.14  subdivision 5, is amended to read: 
 26.15     Subd. 5.  [DEPARTMENTAL ORGANIZATION.] (a) The commissioner 
 26.16  shall organize the department as provided in section 15.06.  
 26.17     (b) The commissioner may establish divisions and offices 
 26.18  within the department.  The commissioner may employ three deputy 
 26.19  commissioners in the unclassified service.  One deputy must 
 26.20  direct the Minnesota trade office and must be experienced and 
 26.21  knowledgeable in matters of international trade.  
 26.22     (c) The commissioner shall: 
 26.23     (1) employ assistants and other officers, employees, and 
 26.24  agents that the commissioner considers necessary to discharge 
 26.25  the functions of the commissioner's office; 
 26.26     (2) define the duties of the officers, employees, and 
 26.27  agents, and delegate to them any of the commissioner's powers, 
 26.28  duties, and responsibilities, subject to the commissioner's 
 26.29  control and under conditions prescribed by the commissioner.  
 26.30     (d) The commissioner shall ensure that there are at least 
 26.31  three trade and economic development officers in state offices 
 26.32  in nonmetropolitan areas of the state who will work with local 
 26.33  units of government on developing local trade and economic 
 26.34  development. 
 26.35     Sec. 37.  [116J.421] [RURAL POLICY AND DEVELOPMENT CENTER.] 
 26.36     Subdivision 1.  [ESTABLISHED.] The rural policy and 
 27.1   development center is established at Mankato state university. 
 27.2      Subd. 2.  [GOVERNANCE.] The center is governed by a board 
 27.3   of directors who, other than the legislative members, shall be 
 27.4   appointed to six-year terms by the governor and comprised of: 
 27.5      (1) two representatives of statewide farm organizations; 
 27.6      (2) a representative from a regional initiative 
 27.7   organization selected under section 116J.415, subdivision 3; 
 27.8      (3) the president of Mankato state university; 
 27.9      (4) a representative from the general public residing in a 
 27.10  town of less than 5,000 located outside of the metropolitan 
 27.11  area; 
 27.12     (5) a member of the house of representatives appointed by 
 27.13  the speaker of the house and a member of the senate appointed by 
 27.14  the subcommittee on committees of the senate committee on rules 
 27.15  and administration appointed for two-year terms; 
 27.16     (6) three representatives from business, including one 
 27.17  representing rural manufacturing and one rural retail and 
 27.18  service business; and 
 27.19     (7) five representatives from private foundations with a 
 27.20  demonstrated commitment to rural issues. 
 27.21     Subd. 3.  [DUTIES.] The center shall: 
 27.22     (1) identify present and emerging social and economic 
 27.23  issues for rural Minnesota, including health care, 
 27.24  transportation, crime, housing, and job training; 
 27.25     (2) forge alliances and partnerships with rural communities 
 27.26  to find practical solutions to economic and social problems; 
 27.27     (3) provide a resource center for rural communities on 
 27.28  issues of importance to them; 
 27.29     (4) encourage collaboration across higher education 
 27.30  institutions to provide interdisciplinary team approaches to 
 27.31  problem solving with rural communities; and 
 27.32     (5) involve students in center projects. 
 27.33     Subd. 4.  [STATEWIDE FOCUS.] The center has a statewide 
 27.34  mission.  It may contract and collaborate with higher education 
 27.35  and other institutions located throughout the state. 
 27.36     Sec. 38.  [116J.423] [CENTER FOR RURAL POLICY AND 
 28.1   DEVELOPMENT FUND.] 
 28.2      A center for rural policy and development fund is 
 28.3   established as an account in the state treasury.  The 
 28.4   commissioner of finance shall credit to the account the amounts 
 28.5   authorized under this section and appropriations to the 
 28.6   account.  The state board of investment shall ensure that 
 28.7   account money is invested under section 11A.24.  All money 
 28.8   earned by the account must be credited to the account.  The 
 28.9   principal of the account and any unexpended earnings must be 
 28.10  invested and reinvested by the state board of investment. 
 28.11     Gifts and donations, including land or interests in land, 
 28.12  may be made to the account.  Noncash gifts and donations must be 
 28.13  disposed of for cash as soon as the board prudently can maximize 
 28.14  the value of the gift or donation.  Gifts and donations of 
 28.15  marketable securities may be held or be disposed of for cash at 
 28.16  the option of the board.  The cash receipts of gifts and 
 28.17  donations of cash or capital assets and marketable securities 
 28.18  disposed of for cash must be credited immediately to the 
 28.19  principal of the account.  The value of marketable securities at 
 28.20  the time the gift or donation is made must be credited to the 
 28.21  principal of the account and any earnings from the marketable 
 28.22  securities are earnings of the account.  The earnings in the 
 28.23  account are annually appropriated to the board of the center for 
 28.24  rural policy and development to carry out the duties of the 
 28.25  center. 
 28.26     Sec. 39.  [116J.543] [FILM PRODUCTION JOBS PROGRAM.] 
 28.27     The film production jobs program is created.  The program 
 28.28  shall be operated by the Minnesota film board with 
 28.29  administrative oversight and control by the commissioner of 
 28.30  trade and economic development.  The program shall make payment 
 28.31  to producers of long-form narrative film productions that 
 28.32  directly create new film production jobs in Minnesota.  To be 
 28.33  eligible for a payment, a producer must submit documentation to 
 28.34  the Minnesota film board of expenditures for wages for work on 
 28.35  new film production jobs in Minnesota by resident Minnesotans.  
 28.36  The film jobs include work such as technical crews, acting 
 29.1   talent, set construction, soundstage or equipment rental, local 
 29.2   post-production film processing, and other film production jobs. 
 29.3      The film board must make recommendations to the 
 29.4   commissioner about program payment, but the recommendations are 
 29.5   not binding and the commissioner has the authority to make the 
 29.6   final determination on payments.  The commissioner's 
 29.7   determination must be based on the amount of wages documented to 
 29.8   the film board and the likelihood that the payment will lead to 
 29.9   further documentable wage payments.  Payment may not exceed 
 29.10  $100,000 for a single long-form narrative film.  No more than 
 29.11  five percent of the funds appropriated for the program in any 
 29.12  year may be expended for administration.  Individual film 
 29.13  projects shooting on or after January 1, 1997, are eligible for 
 29.14  fund allocations. 
 29.15     Sec. 40.  Minnesota Statutes 1996, section 116J.551, is 
 29.16  amended to read: 
 29.17     116J.551 [CREATION OF ACCOUNT.] 
 29.18     A contaminated site cleanup and development predevelopment 
 29.19  account is created in the general fund.  Money in the account 
 29.20  may be used, as appropriated by law, to make grants as provided 
 29.21  in section sections 116J.554 and 116J.564 and to pay for the 
 29.22  commissioner's costs in reviewing applications and making grants.
 29.23     Sec. 41.  Minnesota Statutes 1996, section 116J.553, 
 29.24  subdivision 2, is amended to read: 
 29.25     Subd. 2.  [REQUIRED CONTENT.] (a) The commissioner shall 
 29.26  prescribe and provide the application form.  Except as provided 
 29.27  in paragraph (b), the application must include at least the 
 29.28  following information: 
 29.29     (1) identification of the site; 
 29.30     (2) an approved response action plan for the site, 
 29.31  including the results of engineering and other tests showing the 
 29.32  nature and extent of the release or threatened release of 
 29.33  contaminants at the site; 
 29.34     (3) a detailed estimate, along with necessary supporting 
 29.35  evidence, of the total cleanup costs for the site; 
 29.36     (4) an appraisal of the current market value of the 
 30.1   property, separately taking into account the effect of the 
 30.2   contaminants on the market value, prepared by a qualified 
 30.3   independent appraiser using accepted appraisal methodology; 
 30.4      (5) an assessment of the development potential or likely 
 30.5   use of the site after completion of the response action plan, 
 30.6   including any specific commitments from third parties to 
 30.7   construct improvements on the site; 
 30.8      (6) the manner in which the municipality will meet the 
 30.9   local match requirement; and 
 30.10     (7) any additional information or material that the 
 30.11  commissioner prescribes. 
 30.12     (b) An application for a grant under section 116J.554, 
 30.13  subdivision 1, paragraph (b), must include a detailed estimate 
 30.14  of the cost of the actions for which the grant is sought, but 
 30.15  need not include the information specified in paragraph (a), 
 30.16  clauses (2) to (4), and (6). 
 30.17     Sec. 42.  Minnesota Statutes 1996, section 116J.554, 
 30.18  subdivision 1, is amended to read: 
 30.19     Subdivision 1.  [AUTHORITY.] (a) The commissioner may make 
 30.20  a grant to an applicant development authority to pay for up to 
 30.21  75 percent of the cleanup costs for a qualifying site, except 
 30.22  the grant may not exceed or 50 percent of the project costs, 
 30.23  whichever is greater.  
 30.24     (b) The commissioner may also make a grant to an applicant 
 30.25  development authority to pay up to 75 percent or $50,000, 
 30.26  whichever is less, toward the cost of performing contaminant 
 30.27  investigations and the development of a response action plan for 
 30.28  a qualifying site. 
 30.29     (c) The determination of whether to make a grant for a 
 30.30  qualifying site is within the sole discretion of the 
 30.31  commissioner, subject to the process provided by this section, 
 30.32  and available unencumbered money in the appropriation.  The 
 30.33  commissioner's decisions and application of the priorities under 
 30.34  section 116J.555 are not subject to judicial review, except for 
 30.35  abuse of discretion. 
 30.36     (d) The total amount of money provided in grants under 
 31.1   paragraph (b) may not exceed $250,000 per fiscal year. 
 31.2      (e) In making grants under paragraph (b), the commissioner 
 31.3   shall give priority to applicants that have not received a grant 
 31.4   under paragraph (a) or section 473.252 during the year ending on 
 31.5   the date of application. 
 31.6      Sec. 43.  [116J.562] [DEFINITIONS.] 
 31.7      Subdivision 1.  [APPLICATION.] For the purposes of sections 
 31.8   116J.562 to 116J.564, the following terms have the meanings 
 31.9   given. 
 31.10     Subd. 2.  [DEVELOPMENT AUTHORITY.] "Development authority" 
 31.11  has the meaning given in section 116J.552, subdivision 4. 
 31.12     Subd. 3.  [METROPOLITAN AREA.] "Metropolitan area" has the 
 31.13  meaning given in section 116J.552, subdivision 5. 
 31.14     Subd. 4.  [MUNICIPALITY.] "Municipality" has the meaning 
 31.15  given in section 116J.552, subdivision 6. 
 31.16     Subd. 5.  [QUALIFYING SITE.] "Qualifying site" means a 
 31.17  qualifying site under section 116J.564, subdivision 2. 
 31.18     Subd. 6.  [REDEVELOPMENT COSTS.] "Redevelopment costs" 
 31.19  means costs of the following:  property acquisition; demolition 
 31.20  of existing improvements; relocation of persons or businesses; 
 31.21  site preparation and grading; planning, engineering, and site 
 31.22  design; installation of infrastructure; site marketing; and 
 31.23  related administrative costs. 
 31.24     Sec. 44.  [116J.563] [GRANT APPLICATIONS.] 
 31.25     Subdivision 1.  [APPLICATION REQUIRED.] To obtain a 
 31.26  redevelopment and job creation grant, a development authority 
 31.27  shall apply to the commissioner. 
 31.28     Subd. 2.  [REQUIRED CONTENT.] The commissioner shall 
 31.29  prescribe and provide the application form.  An application must 
 31.30  include at least the following information: 
 31.31     (1) identification of the site; 
 31.32     (2) a detailed estimate, along with necessary supporting 
 31.33  evidence, of the total redevelopment costs for the site; 
 31.34     (3) an assessment of the development potential or likely 
 31.35  use of the site, including any specific commitments from third 
 31.36  parties to construct improvements on the site; and 
 32.1      (4) any additional information or material that the 
 32.2   commissioner prescribes. 
 32.3      Sec. 45.  [116J.564] [GRANTS.] 
 32.4      Subdivision 1.  [AUTHORITY.] The commissioner may make 
 32.5   grants to development authorities for redevelopment costs at 
 32.6   qualifying sites.  The determination of whether to make a grant 
 32.7   for a qualifying site is within the sole discretion of the 
 32.8   commissioner, subject to the process and criteria provided by 
 32.9   this section and available appropriations.  The commissioner's 
 32.10  decisions and application of the priorities under subdivision 3 
 32.11  are not subject to judicial review, except for abuse of 
 32.12  discretion. 
 32.13     Subd. 2.  [QUALIFYING SITES.] A site qualifies for a grant 
 32.14  under this section if: 
 32.15     (1) the appraised value of the site, after adjusting for 
 32.16  the effect on the value of the presence or possible presence of 
 32.17  contaminants, using accepted appraisal methodology (i) is less 
 32.18  than 50 percent of the estimated cleanup costs for the site or 
 32.19  (ii) is less than or equal to the estimated cleanup costs for 
 32.20  the site and the cleanup costs equal or exceed $3 per square 
 32.21  foot for the site; and 
 32.22     (2) after completion of the grant-funded project, it is 
 32.23  expected that the site will be further improved in a manner that 
 32.24  complies with the conditions in subdivision 4. 
 32.25     Subd. 3.  [PRIORITIES] (a) The legislature expects that 
 32.26  applications for grants will exceed the available appropriations 
 32.27  and the agency will be able to provide grants to only some of 
 32.28  the applicant development authorities. 
 32.29     (b) The agency shall make grants for sites that, in the 
 32.30  commissioner's judgment, provide the highest return in public 
 32.31  benefits for the public costs incurred and that meet all of the 
 32.32  requirements provided by law.  In making this judgment, the 
 32.33  commission shall consider the following factors: 
 32.34     (1) the number of jobs expected to be created and retained 
 32.35  after development of a qualified site and the average 
 32.36  anticipated wage levels of such jobs; 
 33.1      (2) the total amount of the requested assistance in 
 33.2   relation to the total full-time jobs which will result from the 
 33.3   redevelopment on the qualified site; 
 33.4      (3) the proportion of the requested assistance to the 
 33.5   estimated total redevelopment costs for a qualified site; 
 33.6      (4) the probability that a qualified site will be 
 33.7   redeveloped without use of public money in the reasonable 
 33.8   foreseeable future; 
 33.9      (5) the proportion of the estimated total costs of 
 33.10  contamination cleanup at a qualified site to the estimated total 
 33.11  of redevelopment costs; 
 33.12     (6) the availability of funds for contamination cleanup; 
 33.13     (7) the current unemployment rate in the municipality in 
 33.14  which the qualified site is located; 
 33.15     (8) the level of reliance on public assistance in the 
 33.16  municipality in which the qualified site is located, as measured 
 33.17  by the applicable county welfare roles; and 
 33.18     (9) the extent of poverty in the municipality in which the 
 33.19  qualified site is located, as measured by percentage of 
 33.20  population living below the poverty line, percentage of children 
 33.21  under 18 years of age living below the poverty line, and 
 33.22  percentage of ethnic minorities living below the poverty line. 
 33.23     (c) The factors in paragraph (b) are not listed in order of 
 33.24  priority and the commissioner may weigh each factor, depending 
 33.25  upon the facts and circumstances, as the commissioner considers 
 33.26  appropriate.  The absence of a specific commitment from a third 
 33.27  party to construct improvements on a site does not make the site 
 33.28  ineligible for a grant.  The commissioner shall provide a 
 33.29  written statement of the supporting reasons for each grant. 
 33.30     Subd. 4.  [GRANT CONDITIONS.] A grant awarded under this 
 33.31  section is subject to the following conditions applicable to the 
 33.32  use of the site when fully developed: 
 33.33     (1) the site must be used for industrial purposes; 
 33.34     (2) an average of 30 percent of the site must be covered by 
 33.35  buildings; 
 33.36     (3) the buildings constructed on the site must have an 
 34.1   average construction value of at least $30 per square foot if 
 34.2   the qualified site is located in the metropolitan area and $20 
 34.3   per square foot if the qualified site is located outside of the 
 34.4   metropolitan area; 
 34.5      (4) the site must provide at least one job for each 1,000 
 34.6   square feet of building space; and 
 34.7      (5) preference for employees hired to work at a business 
 34.8   located at the site must be given to qualified residents of the 
 34.9   municipality in which the site is located.  If at least 60 
 34.10  percent of the employees hired to work at a business are not 
 34.11  residents then the business must certify to the municipality 
 34.12  that a sufficient number of qualified residents are not 
 34.13  available and agree to fill vacant positions with qualified 
 34.14  residents referred to the business by the municipality, until 
 34.15  the 60 percent level is attained. 
 34.16     Subd. 5.  [APPLICATION CYCLES; REPORTS.] (a) In making 
 34.17  grants, the commissioner shall establish semiannual application 
 34.18  deadlines in which grants will be authorized from all or part of 
 34.19  the available appropriations of money in the account. 
 34.20     (b) The commissioner shall annually report to the 
 34.21  legislature on the status of the redevelopment and job creation 
 34.22  projects undertaken under grants made under this program.  The 
 34.23  commissioner shall include in the annual report information on 
 34.24  the redevelopment and job creation activities undertaken for the 
 34.25  grants made in that and previous fiscal years.  The commissioner 
 34.26  shall make this report no later than 120 days after the end of 
 34.27  the fiscal year. 
 34.28     Sec. 46.  [116J.8755] [SMALL BUSINESS; ELECTRONIC ACCESS TO 
 34.29  INTERNATIONAL MARKETS.] 
 34.30     The commissioner shall develop a plan for enabling small 
 34.31  businesses to gain electronic access to international markets 
 34.32  through mechanisms that may include electronic trade points. 
 34.33     Sec. 47.  Minnesota Statutes 1996, section 116L.04, 
 34.34  subdivision 1, is amended to read: 
 34.35     Subdivision 1.  [GRANTS-IN-AID PARTNERSHIP PROGRAM.] (a) 
 34.36  The partnership program may provide grants-in-aid to educational 
 35.1   or other nonprofit training institutions using the following 
 35.2   guidelines:  
 35.3      (1) the educational or other nonprofit institution is a 
 35.4   provider of training within the state in either the public or 
 35.5   private sector; 
 35.6      (2) the program involves skills training that is an area of 
 35.7   employment need; and 
 35.8      (3) preference will be given to educational or other 
 35.9   nonprofit training institutions which serve economically 
 35.10  disadvantaged people, minorities, or those who are victims of 
 35.11  economic dislocation and to businesses located in rural areas.  
 35.12     (b) A single grant to any one institution shall not exceed 
 35.13  $200,000 $400,000.  
 35.14     Sec. 48.  Minnesota Statutes 1996, section 116L.04, is 
 35.15  amended by adding a subdivision to read: 
 35.16     Subd. 1a.  [PATHWAYS PROGRAM.] The pathways program may 
 35.17  provide grants-in-aid for developing programs which assist in 
 35.18  the transition of persons from welfare to work.  The program is 
 35.19  to be operated by the board. 
 35.20     Pathways grants-in-aid may be awarded to educational or 
 35.21  other nonprofit training institutions for education and training 
 35.22  programs that serve public assistance recipients transitioning 
 35.23  from public assistance to employment. 
 35.24     Preference shall be given to projects that: 
 35.25     (1) provide employment with benefits paid to employees; 
 35.26     (2) provide employment where there are defined career paths 
 35.27  for trainees; 
 35.28     (3) pilot the development of an educational pathways that 
 35.29  can be used on a continuing basis for transitioning persons from 
 35.30  public assistance directly to work; and 
 35.31     (4) demonstrate the active participation of department of 
 35.32  economic security workforce centers, Minnesota state college and 
 35.33  university institutions and other educational institutions, and 
 35.34  local welfare agencies. 
 35.35     Pathways projects must demonstrate the active involvement 
 35.36  and financial commitment of private business.  Pathways projects 
 36.1   must be matched with cash or in-kind contributions on at least a 
 36.2   one-to-one ratio by participating private business. 
 36.3      A single grant to any one institution shall not exceed 
 36.4   $200,000. 
 36.5      Sec. 49.  [116L.06] [HIRE EDUCATION LOAN PROGRAM.] 
 36.6      Subdivision 1.  [FUND USES.] The job skills partnership 
 36.7   board may make loans to Minnesota employers to train persons for 
 36.8   jobs in Minnesota.  The loans must be used to train current and 
 36.9   prospective employees of an employer for specific jobs with the 
 36.10  employer.  
 36.11     Subd. 2.  [LOAN PROCESS.] The board shall establish a 
 36.12  schedule and competitive process for accepting loan 
 36.13  applications.  The board shall evaluate loan applications. 
 36.14     Subd. 3.  [LOAN PRIORITY.] The board shall give priority to 
 36.15  loans that provide training for jobs that are permanent, provide 
 36.16  health coverage and other fringe benefits, and have a career or 
 36.17  job path with prospects for wage increases. 
 36.18     Subd. 4.  [LOAN TERMS.] Loans may be secured or unsecured, 
 36.19  shall be for a term of no more than two years, and shall bear no 
 36.20  interest.  The maximum amount of a loan is $250,000.  A loan 
 36.21  origination fee of up to two percent of the principal of the 
 36.22  loan may be charged.  An employer may have only one outstanding 
 36.23  loan.  The loans shall contain such other standard commercial 
 36.24  loan terms as the board deems appropriate. 
 36.25     Subd. 5.  [LOAN USES.] Loans must be used by an employer to 
 36.26  obtain the most cost-effective training available from public or 
 36.27  private training institutions.  An employer must document to the 
 36.28  board the process the employer has utilized to ensure that the 
 36.29  proposed loan is used to acquire the most cost-effective 
 36.30  training and provide a training plan. 
 36.31     Subd. 6.  [PACKAGING LOANS.] The board may package a grant 
 36.32  it makes under section 116L.04 with a loan under this section.  
 36.33     Subd. 7.  [LOAN REPAYMENTS.] Loan repayments and loan 
 36.34  origination fees shall be retained by the board for board 
 36.35  programs. 
 36.36     Sec. 50.  Minnesota Statutes 1996, section 176.181, 
 37.1   subdivision 2a, is amended to read: 
 37.2      Subd. 2a.  [APPLICATION FEE.] Every initial application 
 37.3   filed pursuant to subdivision 2 requesting authority to 
 37.4   self-insure shall be accompanied by a nonrefundable fee of 
 37.5   $1,000 $2,500.  The fee is not refundable.  When an employer 
 37.6   seeks to be added as a member of an existing approved group 
 37.7   under section 79A.03, subdivision 6, the proposed new member 
 37.8   shall pay a nonrefundable $250 application fee to the 
 37.9   commissioner at the time of application.  Each annual report due 
 37.10  August 1 under section 79A.03, subdivision 9, shall be 
 37.11  accompanied by an annual fee of $200. 
 37.12     Sec. 51.  [268.666] [WORKFORCE SERVICE AREA COMMITTEES.] 
 37.13     The commissioner shall establish one or more job service 
 37.14  employer committees in each workforce service area to provide 
 37.15  local employers a means of communicating their current and 
 37.16  projected needs for worker skills and to assist the job service 
 37.17  in planning and maintaining quality employer services.  The 
 37.18  commissioner shall set uniform guidelines for the composition 
 37.19  and operation of the committees. 
 37.20     Sec. 52.  Minnesota Statutes 1996, section 268A.15, is 
 37.21  amended by adding a subdivision to read: 
 37.22     Subd. 1a.  [SEVERE IMPAIRMENT TO EMPLOYMENT; 
 37.23  DEFINITION.] For the purpose of this section, "severe impairment 
 37.24  to employment" means profound limitations that dramatically 
 37.25  restrict an individual's ability to seek, secure, and maintain 
 37.26  employment due to an extended history of little or no 
 37.27  employment, limited education, training, or job skills, and 
 37.28  physical, intellectual, or emotional characteristics seriously 
 37.29  impairing future ability to obtain and retain permanent 
 37.30  employment. 
 37.31     Sec. 53.  Minnesota Statutes 1996, section 268A.15, 
 37.32  subdivision 2, is amended to read: 
 37.33     Subd. 2.  [PROGRAM PURPOSE.] The extended employment 
 37.34  program shall have two categories of clients consisting of those 
 37.35  with severe disabilities and those with severe impairment to 
 37.36  employment.  The purpose of the extended employment program for 
 38.1   persons with severe disabilities is to provide the ongoing 
 38.2   services necessary to maintain and advance the employment of 
 38.3   persons with severe disabilities.  The purpose of the extended 
 38.4   employment program for persons with severe impairment to 
 38.5   employment is to provide the ongoing support services necessary 
 38.6   to secure, maintain, and advance in employment.  Employment 
 38.7   under this section must encompass the broad range of employment 
 38.8   choices available to all persons and promote an individual's 
 38.9   self-sufficiency and financial independence.  
 38.10     Sec. 54.  Minnesota Statutes 1996, section 268A.15, is 
 38.11  amended by adding a subdivision to read: 
 38.12     Subd. 3a.  [SEVERE IMPAIRMENT TO EMPLOYMENT; SEPARATE 
 38.13  PROGRAM.] The allocation of funds, eligibility criteria, and 
 38.14  funding criteria for extended employment program funds for 
 38.15  persons with severe disabilities shall be separate from the 
 38.16  allocation of funds, eligibility criteria, and funding criteria 
 38.17  for extended employment program funds for persons with severe 
 38.18  impairment to employment.  Extended employment program services 
 38.19  for persons with severe disabilities shall be modified to the 
 38.20  extent necessary to provide services to persons with severe 
 38.21  impairment to employment. 
 38.22     The county agency must consider placing an individual who 
 38.23  is on welfare and who has a severe impairment to employment, as 
 38.24  defined in subdivision 1a, into an extended employment program 
 38.25  under this section for job skills training or a job, or both, as 
 38.26  part of the effort to move people from welfare to work as 
 38.27  required under federal welfare reform. 
 38.28     Sec. 55.  Minnesota Statutes 1996, section 268A.15, 
 38.29  subdivision 6, is amended to read: 
 38.30     Subd. 6.  [GRANTS.] The commissioner may provide innovation 
 38.31  and expansion grants to rehabilitation facilities to encourage 
 38.32  the development, demonstration, or dissemination of innovative 
 38.33  business practices, training programs, and service delivery 
 38.34  methods that: 
 38.35     (1) expand and improve employment opportunities for persons 
 38.36  with severe disabilities or severe impairment to employment who 
 39.1   are unserved or underserved by the extended employment program; 
 39.2   and 
 39.3      (2) increase the ability of persons with severe 
 39.4   disabilities or severe impairment to employment to use new and 
 39.5   emerging technologies in employment settings, and foster the 
 39.6   capacity of rehabilitation facilities and employers to promote 
 39.7   the integration of individuals with severe disabilities and 
 39.8   severe impairment to employment into the workplace and the 
 39.9   mainstream of community life. 
 39.10     The grants must require collaboration at the local level 
 39.11  among vocational rehabilitation field offices, county social 
 39.12  service and planning agencies, rehabilitation facilities, and 
 39.13  employers.  
 39.14     Sec. 56.  Minnesota Statutes 1996, section 268A.15, is 
 39.15  amended by adding a subdivision to read: 
 39.16     Subd. 8.  [FUNDING AUTHORITY.] State grant funds under this 
 39.17  section and section 268A.13 shall be available for 24 months 
 39.18  following the end of a fiscal year to allow for the submission 
 39.19  of final grant data reports, the completion of audit adjustments 
 39.20  of payments to grantees including grantee appeals of final audit 
 39.21  adjustments, and the redistribution of remaining balances in 
 39.22  grant accounts to other grantees who meet or exceed their 
 39.23  contracts with the department for that fiscal year. 
 39.24     Sec. 57.  [366.152] [CONDITIONAL USES.] 
 39.25     A manufactured home park, as defined in section 327.14, 
 39.26  subdivision 3, is a conditional use in a zoning district that 
 39.27  allows the construction or placement of a building used or 
 39.28  intended to be used by two or more families. 
 39.29     Sec. 58.  Minnesota Statutes 1996, section 394.25, is 
 39.30  amended by adding a subdivision to read: 
 39.31     Subd. 3b.  [CONDITIONAL USES.] A manufactured home park, as 
 39.32  defined in section 327.14, subdivision 3, is a conditional use 
 39.33  in a zoning district that allows the construction or placement 
 39.34  of a building used or intended to be used by two or more 
 39.35  families. 
 39.36     Sec. 59.  Minnesota Statutes 1996, section 446A.04, 
 40.1   subdivision 5, is amended to read: 
 40.2      Subd. 5.  [FEES.] (a) The authority may set and collect 
 40.3   fees for costs incurred by the authority for audits, arbitrage 
 40.4   accounting, and payment of fees charged by the state board of 
 40.5   investment.  The authority may also set and collect fees for 
 40.6   costs incurred by the commissioner, the department of health, 
 40.7   and the pollution control agency, including costs for personnel 
 40.8   and administrative services, for its financings and the 
 40.9   establishment and maintenance of reserve funds.  Fees charged 
 40.10  directly to borrowers upon executing a loan agreement must not 
 40.11  exceed one-half of one percent of the loan amount.  Servicing 
 40.12  fees assessed to loan repayments must not exceed two percent of 
 40.13  the loan repayment.  The disposition of fees collected for costs 
 40.14  incurred by the authority is governed by section 446A.11, 
 40.15  subdivision 13.  The authority shall enter into interagency 
 40.16  agreements to transfer funds into appropriate administrative 
 40.17  accounts established for fees collected under this subdivision 
 40.18  for costs incurred by the commissioner, the department of 
 40.19  health, or the pollution control agency must be credited to the 
 40.20  general fund. 
 40.21     (b) The authority shall annually report to the chairs of 
 40.22  the finance and appropriations committees of the legislature on: 
 40.23     (1) the amount of fees collected under this subdivision for 
 40.24  costs incurred by the authority; 
 40.25     (2) the purposes for which the fee proceeds have been 
 40.26  spent; and 
 40.27     (3) the amount of any remaining balance of fee proceeds. 
 40.28     Sec. 60.  Minnesota Statutes 1996, section 446A.081, 
 40.29  subdivision 1, is amended to read: 
 40.30     Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
 40.31  section, the terms in this subdivision have the meanings given 
 40.32  them.  
 40.33     (b) "Act" means the federal Safe Drinking Water 
 40.34  Infrastructure Financing Act Amendments of 1996, Public Law 
 40.35  Number 104-182. 
 40.36     (c) "Department" means the department of health.  
 41.1      Sec. 61.  Minnesota Statutes 1996, section 446A.081, 
 41.2   subdivision 4, is amended to read: 
 41.3      Subd. 4.  [CAPITALIZATION GRANT AGREEMENT.] The authority 
 41.4   shall enter into an agreement with the administrator of the 
 41.5   United States Environmental Protection Agency to receive 
 41.6   capitalization grants for the fund.  The authority and the 
 41.7   department shall enter into an operating agreement with the 
 41.8   administrator of the United States Environmental Protection 
 41.9   Agency to satisfy the criteria in the act to operate the fund.  
 41.10  The authority and the department may exercise the powers 
 41.11  necessary to comply with the requirements specified in 
 41.12  the agreement agreements and to ensure that loan recipients 
 41.13  comply with all applicable federal and state requirements. 
 41.14     Sec. 62.  Minnesota Statutes 1996, section 446A.081, 
 41.15  subdivision 9, is amended to read: 
 41.16     Subd. 9.  [OTHER USES OF FUND.] The drinking water 
 41.17  revolving loan fund may be used as provided in the act, 
 41.18  including the following uses: 
 41.19     (1) to buy or refinance the debt obligations, at or below 
 41.20  market rates, of public water systems for drinking water 
 41.21  systems, where such debt was incurred after the date of 
 41.22  enactment of the act, for the purposes of construction of the 
 41.23  necessary improvements to comply with the national primary 
 41.24  drinking water regulations under the federal Safe Drinking Water 
 41.25  Act; 
 41.26     (2) to purchase or guarantee insurance for local 
 41.27  obligations to improve credit market access or reduce interest 
 41.28  rates; 
 41.29     (3) to provide a source of revenue or security for the 
 41.30  payment of principal and interest on revenue or general 
 41.31  obligation bonds issued by the authority if the bond proceeds 
 41.32  are deposited in the fund; 
 41.33     (4) to provide loans or loan guarantees for similar 
 41.34  revolving funds established by a governmental unit or state 
 41.35  agency; 
 41.36     (5) to earn interest on fund accounts; and 
 42.1      (6) to pay the reasonable costs incurred by the authority, 
 42.2   department of trade and economic development, and the department 
 42.3   for conducting activities as authorized and required under the 
 42.4   act up to the limits authorized under the act; and 
 42.5      (7) to develop and administer programs for water system 
 42.6   supervision, source water protection, and related programs 
 42.7   required under the act. 
 42.8      Sec. 63.  Minnesota Statutes 1996, section 462.357, is 
 42.9   amended by adding a subdivision to read: 
 42.10     Subd. 1b.  [CONDITIONAL USES.] A manufactured home park, as 
 42.11  defined in section 327.14, subdivision 3, is a conditional use 
 42.12  in a zoning district that allows the construction or placement 
 42.13  of a building used or intended to be used by two or more 
 42.14  families. 
 42.15     Sec. 64.  Minnesota Statutes 1996, section 462A.206, 
 42.16  subdivision 2, is amended to read: 
 42.17     Subd. 2.  [AUTHORIZATION.] The agency may make grants or 
 42.18  loans to cities or nonprofit organizations for the purposes of 
 42.19  construction, acquisition, rehabilitation, demolition, permanent 
 42.20  financing, refinancing, gap financing of single or multifamily 
 42.21  housing, or full cycle home ownership services, as defined in 
 42.22  section 462A.209, subdivision 2.  Gap financing is financing for 
 42.23  the difference between the cost of the improvement of the 
 42.24  blighted property, including acquisition, demolition, 
 42.25  rehabilitation, and construction, and the market value of the 
 42.26  property upon sale.  The agency shall take into account the 
 42.27  amount of money that the city or nonprofit organization 
 42.28  leverages from other sources in awarding grants and loans.  The 
 42.29  agency shall also consider the extent to which the grant or loan 
 42.30  recipient will coordinate use of the funds with its other 
 42.31  housing-related efforts or other housing-related efforts in the 
 42.32  recipient's geographic area.  Cities and nonprofit organizations 
 42.33  may use the grants and loans to establish revolving loan funds 
 42.34  and to provide grants and loans to eligible mortgagors.  The 
 42.35  city or nonprofit organization may determine the terms and 
 42.36  conditions of the grants and loans.  An agency loan may only be 
 43.1   used by a city or nonprofit organization to make loans. 
 43.2      Sec. 65.  Minnesota Statutes 1996, section 462A.206, 
 43.3   subdivision 4, is amended to read: 
 43.4      Subd. 4.  [DESIGNATED AREAS.] For the purposes of focusing 
 43.5   resources, a city or a nonprofit organization located in a 
 43.6   metropolitan statistical area must designate neighborhoods 
 43.7   within which the grants or loans may be used, and a city or 
 43.8   nonprofit organization located outside of a metropolitan 
 43.9   statistical area must designate a geographic area within which 
 43.10  the grants or loans may be used. 
 43.11     Sec. 66.  [TRANSITION PROVISION.] 
 43.12     The governor shall appoint the board of the center for 
 43.13  rural policy and development, other than legislative members, by 
 43.14  August 1, 1997.  Original appointments shall be staggered so 
 43.15  that four members serve two-year terms, four serve four-year 
 43.16  terms, and five serve six-year terms.  Thereafter, all terms 
 43.17  shall be for six years or the unexpired term of a term that was 
 43.18  not completed. 
 43.19     Sec. 67.  [REPEALER.] 
 43.20     Minnesota Statutes 1996, sections 116J.990, subdivision 7; 
 43.21  and 462A.206, subdivision 5, are repealed.