3rd Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to economic development; appropriating money 1.3 for economic development, housing, and related 1.4 purposes; providing for a municipal reimbursement; 1.5 requiring reports; establishing pilot projects; 1.6 providing exemptions from grant limits; defining 1.7 terms; setting requirements for wastewater financial 1.8 assistance; modifying loan criteria; modifying 1.9 supplemental assistance provisions; establishing a 1.10 revolving loan fund; modifying warranty provisions; 1.11 providing warranty information; modifying collection 1.12 agency provisions; requiring builders to make certain 1.13 disclosures; establishing a public education campaign 1.14 for homeowners' rights; providing for an employee 1.15 notice of rights; modifying false statement 1.16 provisions; modifying labor provisions for city 1.17 attorneys; modifying reinvestment program provisions; 1.18 extending boundaries; creating and changing programs 1.19 and projects; modifying wage rate study provisions; 1.20 imposing terms and conditions; enacting the Uniform 1.21 Unclaimed Property Act of 1995; making conforming 1.22 changes; amending Minnesota Statutes 1996, sections 1.23 16A.45, subdivisions 1 and 4; 16B.06, subdivision 2; 1.24 16B.08, subdivision 7; 16B.65, subdivision 7; 80C.03; 1.25 115C.09, by adding a subdivision; 116.182, subdivision 1.26 1, and by adding a subdivision; 116J.415, subdivision 1.27 5; 116J.553, subdivision 2; 116L.03, subdivision 5; 1.28 181.64; 181.65; 198.231; 276.19, subdivision 4; 1.29 308A.711, subdivisions 1 and 2; 326.87, subdivision 2; 1.30 326.975, subdivision 1; 327A.01, subdivisions 2 and 5; 1.31 327A.02, subdivisions 1 and 3; 327A.03; 332.32; 1.32 356.65, subdivision 2; 383B.79, subdivision 1, and by 1.33 adding a subdivision; 446A.072, subdivisions 2 and 4; 1.34 462A.05, subdivision 14; 462A.21, by adding a 1.35 subdivision; 462A.222, subdivision 3; 469.303; 1.36 474A.061, subdivision 2a; 541.051, subdivisions 1 and 1.37 4; and 624.68; Minnesota Statutes 1997 Supplement, 1.38 sections 16A.6701, subdivision 1; 115C.09, subdivision 1.39 3f; 116J.421, subdivision 1, and by adding a 1.40 subdivision; 179A.03, subdivision 7; 268.07, 1.41 subdivision 2, as amended; 462A.05, subdivision 39; 1.42 and 462A.205, subdivisions 1, 2, 5, 6, and 9; Laws 1.43 1997, chapter 200, article 1, section 12, subdivision 1.44 2, section 33, subdivision 1, and by adding 1.45 subdivisions; Laws 1997, Second Special Session 1.46 chapter 2, section 4, subdivision 3; proposing coding 2.1 for new law in Minnesota Statutes, chapters 116J; 181; 2.2 327A; 345; and 471; repealing Minnesota Statutes 1996, 2.3 sections 345.31; 345.32; 345.33; 345.34; 345.35; 2.4 345.36; 345.37; 345.38; 345.381; 345.39; 345.40; 2.5 345.41; 345.42; 345.43; 345.44; 345.45; 345.46; 2.6 345.47; 345.485; 345.49; 345.50; 345.51; 345.515; 2.7 345.52; 345.525; 345.53; 345.54; 345.55; 345.56; 2.8 345.57; 345.58; 345.59; and 345.60; Minnesota Statutes 2.9 1997 Supplement, sections 345.48; and 446A.072, 2.10 subdivision 4a; Laws 1991, chapter 275, section 3. 2.11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.12 ARTICLE 1 2.13 ECONOMIC DEVELOPMENT 2.14 Section 1. [ECONOMIC DEVELOPMENT APPROPRIATIONS.] 2.15 The sums in the columns marked "APPROPRIATIONS" are 2.16 appropriated from the general fund, or another named fund, to 2.17 the agencies and for the purposes specified in this article, to 2.18 be available for the fiscal years indicated for each purpose. 2.19 The figures "1998" and "1999," where used in this act, mean that 2.20 the appropriation or appropriations listed under them are 2.21 available for the year ending June 30, 1998, or June 30, 1999, 2.22 respectively. The term "first year" means the fiscal year 2.23 ending June 30, 1998, and "second year" means the fiscal year 2.24 ending June 30, 1999. 2.25 SUMMARY BY FUND 2.26 1998 1999 2.27 General $ 409,000 $38,742,000 2.28 Workers' Compensation Fund 50,000 (50,000) 2.29 Special Revenue Fund -0- 150,000 2.30 TOTAL $ 459,000 $38,842,000 2.31 APPROPRIATIONS 2.32 Available for the Year 2.33 Ending June 30 2.34 1998 1999 2.35 Sec. 2. DEPARTMENT OF TRADE AND 2.36 ECONOMIC DEVELOPMENT $ -0- $6,210,000 2.37 The amounts that may be spent from this 2.38 appropriation for each purpose is 2.39 specified in the following paragraphs. 2.40 (a) Millennium Screen Writing Festival 2.41 $100,000 in 1999 is for planning for 2.42 the millennium screen writing festival, 2.43 and to enhance the film making industry 2.44 in Minnesota by providing grants to 2.45 local screenwriters. Of this amount, 2.46 $50,000 is added to the department's 3.1 budget base. 3.2 (b) Tourism Advertising and Marketing 3.3 $950,000 in 1999 is for additional 3.4 tourism advertising, is available 3.5 immediately, is added to the 3.6 appropriation for tourism provided in 3.7 Laws 1997, chapter 200, article 1, 3.8 section 2, subdivision 4, and of this 3.9 amount, $900,000 is added to the 3.10 department's budget base. Of this 3.11 amount, $50,000 is for a study on the 3.12 feasibility and economic impact of a 3.13 Great Rivers of the World Aquarium in 3.14 St. Paul on the Mississippi river. 3.15 (c) Minnesota Film Board 3.16 $3,300,000 in 1999 is for transfer to 3.17 the revolving loan fund under Minnesota 3.18 Statutes, section 116J.545. This is a 3.19 one-time appropriation and is not added 3.20 to the department's budget base. 3.21 (d) Duluth Technology Center 3.22 $200,000 in 1999 is for a grant to the 3.23 Duluth Technology Center to continue 3.24 development of software business 3.25 opportunities with particular attention 3.26 to encouraging location of foreign 3.27 software companies in northeastern 3.28 Minnesota. This is a one-time 3.29 appropriation and is not added to the 3.30 department's budget base. 3.31 (e) Chatfield Brass Band Music Lending 3.32 Library 3.33 $60,000 in 1999 is for a grant to the 3.34 Chatfield brass band music lending 3.35 library. The money must be used for 3.36 computer hardware and software to 3.37 catalog the music collection and create 3.38 a Web site. This is a one-time 3.39 appropriation and must not be added to 3.40 the agency's budget base. 3.41 (f) Neighborhood Development Center, Inc. 3.42 $90,000 in 1999 is for the purpose of 3.43 making a grant to the Neighborhood 3.44 Development Center, Inc. The center 3.45 shall use the grant for the purpose of 3.46 expanding and improving its 3.47 neighborhood and ethnic-based 3.48 entrepreneur training, lending, and 3.49 support programs in the poorest 3.50 communities of Minneapolis and St. 3.51 Paul. This appropriation is added to 3.52 the department's budget base. 3.53 (g) Public Arts St. Paul 3.54 $50,000 in 1999 is for a grant to 3.55 Public Arts Saint Paul for planning for 3.56 public art projects throughout the city 3.57 of St. Paul. This is a one-time 3.58 appropriation and is not added to the 3.59 department's budget base. 4.1 (h) City of St. Paul 4.2 $300,000 in 1999 is for a grant to the 4.3 city of St. Paul. Of this amount, 4.4 $250,000 is for the completion of 4.5 renovations to the University of 4.6 Minnesota Centennial Showboat to be 4.7 docked at Harriet Island. Of this 4.8 amount, $50,000 is for a study on the 4.9 relocation and expansion of the St. 4.10 Paul Farmers' Market at a site that 4.11 will interact with the Concord Street 4.12 business area. The study will consider 4.13 growth needs, job development 4.14 opportunities, and the creation of a 4.15 state-approved commercial kitchen. 4.16 This is a one-time appropriation and is 4.17 not added to the department's budget 4.18 base. 4.19 (i) Mississippi River Parkway 4.20 Commission 4.21 $15,000 in 1999 is for a grant to the 4.22 Mississippi River Parkway Commission of 4.23 Minnesota for the Smithsonian River of 4.24 Song community promotion and Great 4.25 River Road Ramble. This is a one-time 4.26 appropriation and is not added to the 4.27 department's budget base. 4.28 (j) Biomass Energy Project 4.29 $800,000 in 1999 is for a grant to the 4.30 Granite Falls economic development 4.31 authority for the development of a 4.32 farm-grown, closed loop biomass energy 4.33 project. The grant may be used to 4.34 manage the development, seek financing 4.35 and equity participation, reimburse 4.36 costs of third-party due diligence 4.37 exercises, and perform environmental 4.38 review and permitting. This is a 4.39 one-time appropriation and is not added 4.40 to the department's budget base. 4.41 (k) Fairmont Opera House 4.42 $200,000 in 1999 is for accessibility 4.43 improvements for the Fairmont Opera 4.44 House. This is a one-time 4.45 appropriation and is not added to the 4.46 department's budget base. 4.47 (l) Heritage Breed Chickens 4.48 $25,000 in 1999 is for grants to county 4.49 fairs to provide premiums and prizes 4.50 for heritage breeds of chickens. This 4.51 appropriation may also be used to 4.52 provide participating 4H and other 4.53 youth groups up to 25 free nursery 4.54 hatchlings. This appropriation is 4.55 added to the department's budget base. 4.56 (m) Watonwan County Trail System 4.57 $10,000 in 1999 is for a grant to 4.58 Watonwan county for preplanning of the 4.59 Watonwan county trail system. This is 4.60 a one-time appropriation and is not 5.1 added to the department's budget base. 5.2 (n) Wyoming and Chisago City Business Park 5.3 $10,000 in 1999 is for a grant to the 5.4 joint powers board established under 5.5 Minnesota Statutes, section 471.59, by 5.6 the town of Wyoming and the city of 5.7 Chisago City for the purpose of 5.8 establishing a joint commercial and 5.9 business park. The grant must be used 5.10 to pay the costs of environmental, 5.11 transportation, job creation and 5.12 associated studies, and preparation of 5.13 a site plan related to the park as well 5.14 as legal, engineering, administrative, 5.15 and similar costs associated with the 5.16 studies. Establishment of the park 5.17 would serve as a pilot project to 5.18 determine the feasibility and benefit 5.19 of developing a coordinated site for 5.20 business, educational, and recreational 5.21 facilities within an area, a portion of 5.22 which has been determined to be 5.23 undesirable for the location of 5.24 residential development because of the 5.25 presence of power lines. This is a 5.26 one-time appropriation and is not added 5.27 to the department's budget base. 5.28 (o) Minnesota Trade Office 5.29 The appropriation in Laws 1997, chapter 5.30 200, article 1, section 2, subdivision 5.31 3, to the department of trade and 5.32 economic development for the Minnesota 5.33 trade office for a multifaceted program 5.34 to develop trade with China is 5.35 available until June 30, 1999. 5.36 (p) Circulator Vehicle Pilot Project 5.37 $50,000 in 1999 is for a grant to 5.38 Hennepin county for the planning and 5.39 development, in cooperation with a task 5.40 force created by the city of 5.41 Minneapolis, of a circulator vehicle 5.42 pilot project for the purposes of: 5.43 (1) connecting the Minneapolis 5.44 convention center and other major 5.45 locations in downtown Minneapolis with 5.46 multicultural tourist, heritage, and 5.47 cultural resources in the Phillips, 5.48 Stevens Square, Whittier, Central, 5.49 Powderhorn, Seward, Loring Park, and 5.50 Cedar-Riverside neighborhoods in 5.51 Minneapolis and contributing to the 5.52 revitalization of those neighborhoods 5.53 by increasing urban tourism; 5.54 (2) generating additional spending by 5.55 expanding the selection of tourism 5.56 activities provided by the convention 5.57 center and downtown Minneapolis; and 5.58 (3) promoting state and local tourism 5.59 activities which provide a richer, more 5.60 culturally diverse experience of 5.61 Minneapolis urban life as an 5.62 alternative to larger, more commercial 6.1 attractions. This is a one-time 6.2 appropriation and is not added to the 6.3 department's budget base. 6.4 (q) River of Song Project 6.5 $50,000 in 1999 is for a grant to the 6.6 Mississippi River Parkway Commission of 6.7 Minnesota for the state's share of the 6.8 Smithsonian's River of Song Project. 6.9 This is a one-time appropriation and is 6.10 not added to the department's budget 6.11 base. 6.12 Sec. 3. MINNESOTA TECHNOLOGY, INC. - 0 - 200,000 6.13 $200,000 in 1999 is for transfer to the 6.14 Minnesota Technology, Inc. fund for a 6.15 grant to Minnesota Project Innovation, 6.16 Inc. Of this amount, $170,000 is to 6.17 fund two business information and 6.18 technology centers, with one to be 6.19 located at Metropolitan state 6.20 university, and one located outside the 6.21 Twin Cities metropolitan area. The 6.22 remaining $30,000 is for a grant to the 6.23 Fairmont Interactive TV, Inc., to be 6.24 used for the development of interactive 6.25 educational television for area youth. 6.26 This is a one-time appropriation and is 6.27 not added to the agency's budget base. 6.28 Sec. 4. MINNESOTA WORLD TRADE CENTER 6.29 CORPORATION 155,000 -0- 6.30 $155,000 is appropriated in 1998 for 6.31 full and final payments of the 6.32 remaining 1988 debt of the Minnesota 6.33 World Trade Center Corporation which 6.34 was incurred for conference center 6.35 furniture, fixtures, and equipment. 6.36 This appropriation is available 6.37 immediately. This is a one-time 6.38 appropriation and is not added to the 6.39 department's budget base. 6.40 Sec. 5. DEPARTMENT OF ECONOMIC 6.41 SECURITY -0- 9,310,000 6.42 The amounts that may be spent from this 6.43 appropriation for each purpose are 6.44 specified in the following paragraphs. 6.45 (a) State Services for the Blind 6.46 $1,400,000 in 1999 to the State 6.47 Services for the Blind to update radio 6.48 talking book receivers and create a 6.49 digital infrastructure for the 6.50 communication center. This is a 6.51 one-time appropriation and must be 6.52 matched dollar for dollar by a private 6.53 nonprofit organization for the same 6.54 purpose. The commissioner of economic 6.55 security must certify to the 6.56 commissioner of finance that the match 6.57 has been received before this 6.58 appropriation is released. The office 6.59 of technology must approve the digital 6.60 infrastructure and updated receivers as 6.61 appropriate technology for their 7.1 purposes prior to their purchase. This 7.2 appropriation is available until June 7.3 30, 2000. 7.4 (b) Vocational Rehabilitation 7.5 $1,000,000 in 1999 to the vocational 7.6 rehabilitation program to be added to 7.7 the appropriation for rehabilitation 7.8 services provided in Laws 1997, chapter 7.9 200, article 1, section 5, subdivision 7.10 2, and is added to the department's 7.11 budget base. 7.12 (c) Regional Job Market Analysis 7.13 $200,000 in 1999 is to retain the 7.14 services of regional job market 7.15 analysts. This appropriation is added 7.16 to the department's budget base. 7.17 (d) Alien Labor Certification 7.18 $160,000 in 1999 is to administer the 7.19 alien labor certification program. 7.20 This is a one-time appropriation and is 7.21 not added to the department's budget 7.22 base. 7.23 (e) Youth Intervention Programs 7.24 $750,000 in 1999 is for grants to fund 7.25 youth intervention programs under 7.26 Minnesota Statutes, section 268.30, and 7.27 is in addition to the appropriation 7.28 made by Laws 1997, chapter 200, article 7.29 1, section 5, subdivision 4. This is a 7.30 one-time appropriation and is not added 7.31 to the department's budget base. It is 7.32 available until June 30, 1999. 7.33 (f) Youthbuild 7.34 $400,000 in 1999 is for the Youthbuild 7.35 program under Minnesota Statutes, 7.36 sections 268.361 to 268.366. A 7.37 Minnesota Youthbuild program funded 7.38 under this section as authorized in 7.39 Minnesota Statutes, sections 268.361 to 7.40 268.366, qualifies as an approved 7.41 training program under Minnesota Rules, 7.42 part 5200.0930, subpart 1. The 7.43 appropriation is in addition to the 7.44 appropriation made by Laws 1997, 7.45 chapter 200, article 1, section 5, 7.46 subdivision 4, and of this amount 7.47 $247,000 is added to the department's 7.48 budget base. 7.49 (g) Summer Youth Employment 7.50 $3,200,000 in 1999 is for summer youth 7.51 employment programs. This is a 7.52 one-time appropriation and is available 7.53 immediately and is available until June 7.54 30, 1999. 7.55 (h) Nontraditional Careers for Women 7.56 $250,000 in 1999 is a one-time 7.57 appropriation for grants to 8.1 organizations for programs that 8.2 encourage and assist women to enter 8.3 nontraditional careers in the trades 8.4 and in manual and technical 8.5 occupations. To be eligible for a 8.6 grant under this section, a program 8.7 must include: (1) outreach to girls 8.8 and women through public and private 8.9 elementary, junior high and high 8.10 schools, appropriate community 8.11 organizations, or existing state and 8.12 county employment and training 8.13 programs. The outreach will consist of 8.14 general information concerning 8.15 opportunities for women in the trades, 8.16 manual, and technical occupations, 8.17 including specific fields where worker 8.18 shortages exist; and specific 8.19 information about training programs 8.20 offered. The outreach may include 8.21 printed or recorded information, 8.22 presentations to women and girls, 8.23 hands-on experiences for girls, or 8.24 ongoing contact with appropriate staff 8.25 and volunteers; or (2) assistance for 8.26 women to enter careers in the trades, 8.27 technical, and manual occupations as 8.28 follows: (a) training designed to 8.29 prepare women to succeed in 8.30 nontraditional occupations, conducted 8.31 by the grantee or in collaboration with 8.32 another institution. The training 8.33 shall cover the knowledge and skills 8.34 required for the trade, information 8.35 about on-the-job realities for women in 8.36 the particular trade, physical strength 8.37 and stamina training as needed to 8.38 increase women's eligibility for jobs 8.39 that require physical strength, 8.40 opportunities for developing workplace 8.41 problem solving skills, and information 8.42 about the current and projected future 8.43 job market and likely career paths; (b) 8.44 assistance with child care and 8.45 transportation during training, job 8.46 search, and the first two months of 8.47 employment for low-income women who do 8.48 not have other coverage for these 8.49 expenses; (c) job placement assistance 8.50 during and for at least two years after 8.51 completion of the training program; and 8.52 (d) job retention support. This may 8.53 take the form of mentorship programs, 8.54 support groups, or ongoing staff 8.55 contact for at least the first year of 8.56 placement in a job after completion of 8.57 training, and should include access to 8.58 job-related information, assistance 8.59 with workplace issues resolution, and 8.60 access to advocacy. 8.61 Programs must be accessible to MFIP-S 8.62 participants and other low-income 8.63 women. Factors that contribute to 8.64 accessibility include: (1) 8.65 affordability or financial aid 8.66 available for tuition and supplies; (2) 8.67 geographic proximity to low-income 8.68 neighborhoods, child care, and 8.69 transportation routes; and (3) 8.70 flexibility of hours per week and weeks 9.1 of duration of training programs to be 9.2 compatible with family needs and the 9.3 need for employment during training. 9.4 All state-funded employment and 9.5 training programs must include 9.6 information about opportunities for 9.7 women in nontraditional careers in the 9.8 trades, manual, and technical 9.9 occupations. 9.10 (i) Extended Employment Welfare-to-Work 9.11 $650,000 in 1999 is a one-time 9.12 appropriation and is not added to the 9.13 department's budget base to provide 9.14 extended employment training for 9.15 welfare recipients through the 9.16 welfare-to-work extended employment 9.17 partnership program under Minnesota 9.18 Statutes, section 268A.15. Of this 9.19 appropriation, up to five percent may 9.20 be used for administrative costs. 9.21 (j) School to Work 9.22 $200,000 in 1999 is to develop a pilot 9.23 project that will electronically link 9.24 four department workforce centers with 9.25 the secondary schools in the school 9.26 district in which the workforce center 9.27 is located for the purpose of providing 9.28 secondary students and school 9.29 counselors with labor market 9.30 information and job-seeking skills 9.31 expertise to assist transition from 9.32 school to work. The commissioner shall 9.33 create a position at each of the four 9.34 workforce centers to implement this 9.35 project. The commissioner shall report 9.36 on the progress of the pilot project to 9.37 the legislature by February 1, 1999. 9.38 The commissioner shall make a final 9.39 report on the pilot projects to the 9.40 legislature by March 1, 2000. This is 9.41 a one-time appropriation and is not 9.42 added to the agency's budget base. 9.43 (k) Advocating Change Together, Inc. 9.44 $126,000 in 1999 is for a grant to 9.45 Advocating Change Together, Inc. 9.46 (ACT). The grant must be used for (1) 9.47 the training and empowerment of 9.48 individuals with developmental and 9.49 other mental health disabilities, 9.50 including mental illnesses that are 9.51 serious and persistent, that are 9.52 chronic, or that pose a risk of 9.53 hospitalization; (2) the maintenance of 9.54 related data; or (3) technical 9.55 assistance for work advancement or 9.56 additional workforce training. This is 9.57 a one-time appropriation and is not 9.58 added to the department's budget base. 9.59 (l) Displaced Homemakers 9.60 $600,000 in 1999 is for displaced 9.61 homemaker programs under Minnesota 9.62 Statutes, section 268.96, and is a 9.63 one-time appropriation and not added to 10.1 the department's budget base. Of this 10.2 appropriation, $200,000 is for grants 10.3 to operate a community work empowerment 10.4 support group demonstration project and 10.5 is in addition to the appropriation for 10.6 that purpose contained in Laws 1997, 10.7 chapter 200, article 1, section 4, 10.8 subdivision 4. Of this appropriation, 10.9 $400,000 is for the costs of training 10.10 recommended for clients of displaced 10.11 homemaker programs under Minnesota 10.12 Statutes, section 268.96. 10.13 (m) Fund Transfer 10.14 Notwithstanding Minnesota Statutes, 10.15 section 268.022, subdivision 2, the 10.16 commissioner of finance shall transfer 10.17 $300,000 to the general fund in fiscal 10.18 year 1999 from the fund established in 10.19 Minnesota Statutes, section 268.022. 10.20 (n) Centers for Independent Living 10.21 $300,000 in 1999 is for centers for 10.22 independent living. This appropriation 10.23 is added to the department's budget 10.24 base. The department shall allocate 10.25 this appropriation among the centers 10.26 equally, and shall not consider what 10.27 federal funds may be available to a 10.28 center in determining the allocations. 10.29 (o) Wage Rate Study 10.30 $74,000 in 1999 is for the wage rate 10.31 study in sections 81 to 84. This is a 10.32 one-time appropriation and is not added 10.33 to the department's budget base. 10.34 Sec. 6. MINNESOTA HOUSING 10.35 FINANCE AGENCY -0- 20,135,000 10.36 The amounts that may be spent from this 10.37 appropriation for certain programs are 10.38 specified below. 10.39 This appropriation is for transfer to 10.40 the housing development fund for the 10.41 programs specified. Except as 10.42 otherwise indicated, this transfer is 10.43 part of the agency's budget base. 10.44 (a) Affordable Rental Investment Fund 10.45 $13,000,000 in 1999 is for the 10.46 affordable rental investment fund 10.47 program under Minnesota Statutes, 10.48 section 462A.21, subdivision 8b. Of 10.49 this amount, $1,000,000 is a one-time 10.50 appropriation and is not added to the 10.51 agency's budget base. The agency shall 10.52 allocate $3,000,000 of these funds 10.53 according to the geographic 10.54 distribution requirements in the 10.55 appropriation for the affordable rental 10.56 investment program in Laws 1997, 10.57 chapter 200, article 1, section 6. 10.58 Of the amount appropriated to the 10.59 affordable rental investment fund 11.1 program, $10,000,000 is to finance the 11.2 acquisition, rehabilitation, and debt 11.3 restructuring of federally assisted 11.4 rental property and for making equity 11.5 take-out loans under Minnesota 11.6 Statutes, section 462A.05, subdivision 11.7 39. The owner of the rental property 11.8 must agree to participate in the 11.9 applicable federally assisted housing 11.10 program and to extend any existing 11.11 low-income affordability restrictions 11.12 on the housing for the maximum term 11.13 permitted. The owner must also enter 11.14 into an agreement that gives local 11.15 units of government, housing and 11.16 redevelopment authorities, and 11.17 nonprofit housing organizations the 11.18 right of first refusal if the rental 11.19 property is offered for sale. Priority 11.20 must be given to properties with the 11.21 longest remaining term under an 11.22 agreement for federal rental 11.23 assistance. Priority must also be 11.24 given among comparable rental housing 11.25 developments to developments that are 11.26 or will be owned by a local government 11.27 unit, a housing and redevelopment 11.28 authority, or a nonprofit housing 11.29 organization. 11.30 (b) Family Homeless Prevention 11.31 and Assistance Program 11.32 $1,000,000 in 1999 is for the family 11.33 homeless prevention and assistance 11.34 program under Minnesota Statutes, 11.35 section 462A.204 and is added to the 11.36 appropriation for this program in Laws 11.37 1997, chapter 200, article 1, section 6. 11.38 (c) Community Rehabilitation Fund 11.39 $5,000,000 in 1999 is for the community 11.40 rehabilitation program, under Minnesota 11.41 Statutes, section 462A.206. 11.42 Notwithstanding section 462A.206, this 11.43 appropriation shall be used to provide 11.44 housing for families and persons with 11.45 incomes less than or equal to 80 11.46 percent of the Twin Cities metropolitan 11.47 area median income applied statewide. 11.48 The agency must give preference to 11.49 economically viable projects in which 11.50 there is a contribution from nonstate 11.51 sources. Of this amount, the agency 11.52 may use up to $500,000 to fund projects 11.53 in cities of the first class if the 11.54 projects use innovative urban design 11.55 elements, comprehensive community 11.56 planning, or help leverage federal 11.57 funds from the federal home ownership 11.58 zone program. Of this amount, 11.59 $3,000,000 is a one-time appropriation 11.60 and is not added to the agency's budget 11.61 base. 11.62 (d) Home Ownership Counseling 11.63 $70,000 in 1999 is for full-cycle home 11.64 ownership and purchase-rehabilitation 11.65 lending initiatives under Minnesota 12.1 Statutes, section 462A.209. This is a 12.2 one-time appropriation and is not added 12.3 to the agency's budget base. This 12.4 appropriation must be used to make a 12.5 grant to a statewide organization that 12.6 advocates on behalf of persons with 12.7 developmental disabilities or related 12.8 conditions. The grant must be used to 12.9 provide prepurchase and postpurchase 12.10 counseling to persons with disabilities 12.11 who are participating in the Fannie Mae 12.12 Homechoice demonstration project and 12.13 other projects designed to encourage 12.14 home ownership among persons with 12.15 disabilities. 12.16 (e) Mental Illness/Rental Assistance 12.17 $1,000,000 in 1999 is for the purposes 12.18 of the rental housing assistance 12.19 program for persons with a mental 12.20 illness or families with an adult 12.21 member with a mental illness, under 12.22 Minnesota Statutes, section 462A.2097. 12.23 (f) Nonprofit Capacity Building Grants 12.24 $65,000 in 1999 is for nonprofit 12.25 capacity building grants under 12.26 Minnesota Statutes, section 462A.21, 12.27 subdivision 3b. This appropriation is 12.28 for grants to supplement resources from 12.29 the corporation for national service in 12.30 support of placement of VISTA 12.31 volunteers with nonprofit housing 12.32 agencies. 12.33 (g) Chemical Sensitivity Grants or Loans 12.34 The agency may use up to $65,000 of the 12.35 fiscal year 1999 appropriation for the 12.36 housing trust fund in Laws 1997, 12.37 chapter 200, article 1, section 6, for 12.38 grants or loans for housing for 12.39 households that include a member 12.40 diagnosed with chemical sensitivity. 12.41 (h) Administrative Spending Limit 12.42 Notwithstanding Laws 1997, chapter 200, 12.43 article 1, section 6, the spending 12.44 limit on cost of general administration 12.45 of housing finance agency programs is 12.46 $11,684,000 in fiscal year 1998 and 12.47 $13,278,000 in fiscal year 1999. 12.48 Sec. 7. DEPARTMENT OF COMMERCE -0- 297,000 12.49 Summary by Fund 12.50 General -0- 147,000 12.51 Special Revenue Fund -0- 150,000 12.52 $22,000 in 1999 is from the general 12.53 fund for implementation of the mortgage 12.54 originator and servicer regulation 12.55 program established in Minnesota 12.56 Statutes, chapter 58. This is added to 12.57 the department's budget base. 13.1 $125,000 in 1999 is from the general 13.2 fund for the healthy homes pilot 13.3 project established in section 25. 13.4 This is a one-time appropriation and is 13.5 not added to the department's budget 13.6 base. 13.7 $150,000 in 1999 is from the 13.8 contractor's recovery account in the 13.9 special revenue fund under Minnesota 13.10 Statutes 1996, section 326.975, 13.11 subdivision 1, and of this amount, 13.12 $50,000 is added to the department's 13.13 budget base. Of this amount, $50,000 13.14 is to provide information to consumers 13.15 on residential construction issues. Of 13.16 this amount, $100,000 is for a grant to 13.17 the University of Minnesota department 13.18 of wood and paper science to complete a 13.19 field assessment of a representative 13.20 sample of new buildings, including 13.21 low-income residential housing, to 13.22 determine their performance relative to 13.23 the existing and proposed energy code 13.24 requirements. 13.25 Sec. 8. LABOR AND INDUSTRY -0- 100,000 13.26 $100,000 in 1999 is for development of 13.27 the employee rights brochure, required 13.28 in Minnesota Statutes, section 181.636, 13.29 subdivision 2, and to develop and 13.30 implement a public awareness campaign 13.31 in consultation with the councils 13.32 created under Minnesota Statutes, 13.33 sections 3.922, 3.9223, 3.9225, and 13.34 3.9226, to educate employees and 13.35 employers on their rights and duties 13.36 under Minnesota Statutes, section 13.37 181.636, and chapters 177 and 181. The 13.38 commissioner shall report to the 13.39 legislature by January 15, 2000, on the 13.40 results of the campaign. Of this 13.41 appropriation, $81,000 is added to the 13.42 department's budget base. 13.43 Sec. 9. MEDIATION SERVICES BUREAU -0- 40,000 13.44 $40,000 in 1999 is to cover initial 13.45 costs of providing dispute resolution, 13.46 mediation, and arbitration services 13.47 related to development and review of 13.48 community-based comprehensive plans 13.49 pursuant to Laws 1997, chapter 202, 13.50 articles 4, 5, and 6, and from 13.51 objections to annexations proposed 13.52 under Minnesota Statutes, chapter 414. 13.53 This is a one-time appropriation and is 13.54 not added to the agency's permanent 13.55 budget base. 13.56 On or before January 15, 1999, the 13.57 commissioner must provide to the 13.58 governor; the chair of the senate 13.59 committee on jobs, energy, and 13.60 community development; and the chair of 13.61 the house economic development finance 13.62 division of the committee on economic 13.63 development and international trade an 13.64 update on the bureau's initial 13.65 experience in providing dispute 14.1 resolution services related to 14.2 community-based planning and objections 14.3 to annexations. In developing this 14.4 information, the commissioner must 14.5 consider the long-term service needs 14.6 under this activity, alternatives 14.7 regarding its future administration, 14.8 and any ongoing funding needs. 14.9 Sec. 10. PUBLIC UTILITIES 14.10 COMMISSION 204,000 189,000 14.11 This appropriation is for costs 14.12 associated with the regulation of 14.13 utilities and is added to the 14.14 commission's budget base. 14.15 Sec. 11. DEPARTMENT OF 14.16 PUBLIC SERVICE -0- 130,000 14.17 This appropriation is for planning and 14.18 analysis of the regulation of the 14.19 electric industry and is added to the 14.20 department's budget base. 14.21 Sec. 12. METROPOLITAN COUNCIL -0- 250,000 14.22 $250,000 in 1999 is for corridor 14.23 planning pilot project grants, as 14.24 provided in section 24. This is a 14.25 one-time appropriation and is not added 14.26 to the department's budget base. 14.27 Sec. 13. MINNESOTA HISTORICAL SOCIETY 50,000 1,051,000 14.28 The amounts that may be spent from this 14.29 appropriation for each purpose are 14.30 specified in the following paragraphs. 14.31 (a) Salary Adjustment 14.32 $686,000 in 1999 is for salary 14.33 adjustments. This appropriation is 14.34 added to the historical society's 14.35 budget base. 14.36 (b) Church Restoration 14.37 $50,000 in 1999 is for a grant for a 14.38 church restoration project in Faribault 14.39 county. This is a one-time 14.40 appropriation and is not added to the 14.41 society's budget base. 14.42 (c) Lake Superior and Mississippi 14.43 Railroad 14.44 $100,000 in 1999 is for a grant to the 14.45 Lake Superior and Mississippi railroad, 14.46 a 501(c)(3) organization, for the 14.47 purchase and installation of railroad 14.48 ties. This is a one-time appropriation 14.49 and is not added to the department's 14.50 budget base. 14.51 (d) Hmong Archives 14.52 $75,000 in 1999 is for start-up costs 14.53 for the Hmong history and culture 14.54 archival project. The society may make 14.55 grants to nonprofit organizations for 15.1 planning, training, and purchase of 15.2 supplies and equipment. This 15.3 appropriation is added to the society's 15.4 budget base to assist with the creation 15.5 of archives and collections for other 15.6 underrepresented groups. 15.7 (e) Fridley Historical Museum 15.8 $50,000 in 1999 is for a grant to the 15.9 Fridley Historical Museum to refurbish 15.10 the Fridley Historical Museum in 15.11 Fridley. This is a one-time 15.12 appropriation and is not added to the 15.13 department's budget base. 15.14 (f) Winona County Historical Society 15.15 $50,000 in 1999 is for a one-time grant 15.16 to the Winona county historical society 15.17 for upgrade of technology. The Winona 15.18 county historical society shall submit 15.19 to the Minnesota historical society a 15.20 plan for the use of this grant. As 15.21 part of this project, the Minnesota 15.22 historical society, in collaboration 15.23 with the Winona county historical 15.24 society and other county and local 15.25 historical societies, shall develop a 15.26 plan for the future use of technology 15.27 by county and local historical 15.28 societies. This is a one-time 15.29 appropriation and is not added to the 15.30 department's budget base. 15.31 (g) Metropolitan Multitype Library 15.32 Consortium 15.33 $40,000 in 1999 is for a grant to the 15.34 metropolitan multitype library 15.35 consortium for copying and making 15.36 available to the 11 greater Minnesota 15.37 regional public library systems and the 15.38 St. Paul and Minneapolis libraries, 15.39 through the Minnesota center for the 15.40 book, a series of video cassette tapes 15.41 of interviews with Minnesota authors, 15.42 for the production and programming 15.43 costs of the northern lights cable 15.44 program on which the Minnesota authors 15.45 are interviewed, and for operating 15.46 costs the consortium incurs as a result 15.47 of this provision. Libraries that 15.48 receive a copy of the series shall make 15.49 the video cassettes readily available 15.50 to teachers and other members of the 15.51 public interested in learning about the 15.52 work and lives of Minnesota authors. 15.53 This is a one-time appropriation and is 15.54 not added to the budget base. 15.55 (h) Blackduck 15.56 $50,000 in 1998 is for a grant to the 15.57 city of Blackduck to help restore and 15.58 stabilize eight buildings at Camp 15.59 Rabideau in Chippewa National Forest. 15.60 This is a one-time appropriation and is 15.61 not added to the society's budget 15.62 base. This appropriation is available 15.63 until June 30, 1999. 16.1 Sec. 14. COUNCIL ON BLACK 16.2 MINNESOTANS -0- 75,000 16.3 $75,000 in 1999 is to assist in 16.4 planning and coordinating observances 16.5 of the Martin Luther King, Jr. holiday 16.6 and other events honoring Martin Luther 16.7 King, Jr. This is a one-time 16.8 appropriation and is not added to the 16.9 council's budget base. 16.10 Sec. 15. INDIAN AFFAIRS COUNCIL -0- 80,000 16.11 $80,000 is appropriated in 1999 to 16.12 assist in funding the 50th annual 16.13 conference of the Interstate Indian 16.14 Council to be held in Minnesota in 16.15 1999. This is a one-time appropriation 16.16 and is not added to the council's 16.17 budget base. 16.18 Sec. 16. DEPARTMENT OF ADMINISTRATION -0- 250,000 16.19 The amounts that may be spent from this 16.20 appropriation for each purpose are 16.21 specified in the following paragraphs. 16.22 (a) Walnut Grove 16.23 $50,000 in 1999 is for a grant to the 16.24 city of Walnut Grove for capital 16.25 improvements to the Laura Ingalls 16.26 Wilder pageant facilities. This is a 16.27 one-time appropriation and is not added 16.28 to the department's budget base. 16.29 (b) Columbia Heights 16.30 $100,000 in 1999 is for a grant to the 16.31 city of Columbia Heights for Central 16.32 Avenue streetscape improvements. This 16.33 is a one-time appropriation and is not 16.34 added to the department's budget base. 16.35 (c) Stewart 16.36 $100,000 in 1999 is for a grant to the 16.37 city of Stewart for the final draw down 16.38 design for the storm sewer project. 16.39 This is a one-time appropriation and is 16.40 not added to the department's budget 16.41 base. 16.42 Sec. 17. CENTER FOR RURAL 16.43 POLICY AND DEVELOPMENT -0- 500,000 16.44 $500,000 in 1999 is for deposit in the 16.45 Rural Policy and Development Center 16.46 fund in the state treasury. This is a 16.47 one-time appropriation and is not added 16.48 to the budget base. 16.49 Sec. 18. DEPARTMENT OF 16.50 NATURAL RESOURCES -0- 75,000 16.51 $75,000 in 1999 is for a grant to the 16.52 St. Croix Valley Heritage Coalition, 16.53 Inc., for initial project design for 16.54 the St. Croix Valley Heritage Center. 16.55 This is a one-time appropriation and is 16.56 not added to the department's budget 17.1 base. 17.2 Sec. 19. [TRANSFER OF BONDING AUTHORITY.] 17.3 The Minnesota housing finance agency may enter into an 17.4 agreement with the city of Minnetonka for a residential rental 17.5 project which received an allocation from the housing pool in 17.6 1998, whereby the city of Minnetonka may issue up to $500,000 in 17.7 obligations pursuant to bonding authority allocated to the 17.8 Minnesota housing finance agency in 1998 under Minnesota 17.9 Statutes, section 474A.03. 17.10 Sec. 20. [BOUNDARY EXTENSION.] 17.11 The boundaries of the North Mississippi Regional Park are 17.12 extended to include 49th Avenue North and adjacent property from 17.13 Humboldt Avenue east to the Mississippi river. Funds 17.14 appropriated for the North Mississippi Regional Park may be 17.15 expended to create a trail or greenway as part of the Hennepin 17.16 county multijurisdictional program on 49th Avenue North and 17.17 adjacent property as an entrance to the North Mississippi 17.18 Regional Park. 17.19 Sec. 21. [JUDY GARLAND CHILDREN'S MUSEUM.] 17.20 The appropriation in Laws 1997, chapter 200, article 1, 17.21 section 2, subdivision 2, to the commissioner of trade and 17.22 economic development for the Judy Garland Children's Museum is 17.23 available until and may be matched until June 30, 1999. 17.24 Sec. 22. [LEROY NIEMAN MUSEUM OF ART.] 17.25 The appropriation in Laws 1997, chapter 200, article 1, 17.26 section 2, subdivision 4, to the commissioner of trade and 17.27 economic development for a grant to the LeRoy Nieman Museum of 17.28 Art is available until and may be matched until June 30, 1999. 17.29 Sec. 23. [NEWPORT.] 17.30 The city of Newport may include in-kind resources and money 17.31 raised or contributed during a period beginning January 1, 1993, 17.32 in determining its required match for the appropriation to the 17.33 city in Laws 1997, chapter 200, article 1, section 2, 17.34 subdivision 2. 17.35 Sec. 24. [CORRIDOR PLANNING PILOT PROJECTS.] 17.36 Subdivision 1. [PILOT PROJECTS.] (a) The metropolitan 18.1 council shall establish corridor planning pilot projects for the 18.2 highway 61 south, and I-35W north corridors in the metropolitan 18.3 area. A "corridor plan" is a subregional, multijurisdictional 18.4 comprehensive plan for the area along a major transportation 18.5 corridor through two or more municipalities. A corridor plan 18.6 implements local development and redevelopment objectives in 18.7 compliance with regional goals and priorities by establishing an 18.8 integrated and cooperative working relationship between 18.9 adjoining corridor communities to, among other things: 18.10 (1) make use of shared geographic information systems, as 18.11 they are developed; 18.12 (2) establish a framework for a comprehensive livable 18.13 community urban design; 18.14 (3) develop strategies for housing, and economic 18.15 development and redevelopment, including the cleanup of 18.16 contaminated properties; and 18.17 (4) create a comprehensive multimodal transportation plan 18.18 for the corridor, integrating transportation and land use issues. 18.19 (b) A corridor plan must be developed by representatives of 18.20 each of the municipalities in the corridor, reviewed and 18.21 approved by the metropolitan council, and adopted by each of the 18.22 participating municipalities. A local comprehensive plan must 18.23 be consistent with the corridor plan. 18.24 Subd. 2. [1999 LEGISLATIVE PROPOSAL.] Based on the 18.25 metropolitan council's experience with the corridor planning 18.26 pilot projects, the council shall propose legislation for the 18.27 1999 legislature's consideration, that will provide incentives 18.28 to communities to implement their adopted corridor plans 18.29 approved by the council. Recommendations for incentives may 18.30 include, but are not limited to, recommendations related to tax 18.31 increment financing, brownfield cleanup and redevelopment 18.32 assistance, transportation funding, board of government 18.33 innovation and cooperation grants, and local government 18.34 assistance. 18.35 Sec. 25. [HEALTHY HOMES PILOT PROJECT.] 18.36 (a) The commissioner of commerce shall establish a 19.1 Minnesota healthy homes pilot project to provide training and 19.2 technical assistance to selected building code officials, and 19.3 low-income housing developers and their contractors in the pilot 19.4 communities to address the problem of defective homes and to 19.5 develop a model program for education, training, and technical 19.6 assistance to be replicated statewide. The project must be 19.7 implemented in up to four demonstration sites (two urban, one 19.8 suburban, and one in greater Minnesota) and work with building 19.9 code officials from the selected municipalities, and selected 19.10 low-income housing developers and their building contractors. 19.11 The project must: 19.12 (1) provide up to four low-income housing developers with 19.13 education and implementation guidelines to produce healthy 19.14 homes, including on-site training during the actual construction 19.15 phase; 19.16 (2) demonstrate the use of mechanical ventilation systems 19.17 as a strategy for healthy indoor air while allowing for a 19.18 tightly constructed building, including design, installation, 19.19 and testing of this approach; 19.20 (3) conduct classroom and on-site training at designated 19.21 building sites to provide inspectors and builders with practical 19.22 training and experience from the ground up; 19.23 (4) conduct integrated performance testing of homes 19.24 throughout the construction process; 19.25 (5) establish a protocol utilizing the results of the pilot 19.26 project, which can be used statewide as a guideline for healthy 19.27 home construction; 19.28 (6) develop an educational program for homeowners in the 19.29 pilot communities on how to operate and maintain their homes in 19.30 order to prevent contributing to indoor air quality problems 19.31 that lead to unhealthy houses; and 19.32 (7) report to the house and senate finance and policy 19.33 committees with jurisdiction over housing on the progress and 19.34 results of the pilot project by March 15, 1999. 19.35 (b) The commissioner of commerce shall make a grant to 19.36 Sustainable Resources Center, a nonprofit organization with 20.1 expertise and certification in indoor air quality diagnostics 20.2 and remediating sick homes, to design, implement, and manage the 20.3 pilot project. 20.4 (c) The department of commerce, in conjunction with 20.5 representatives from the office of environmental assistance, 20.6 Minnesota state colleges and universities, the department of 20.7 wood and paper science at the University of Minnesota, the 20.8 Sustainable Resources Center, the Builders Association of 20.9 Minnesota, the Center for Energy and Environment, and 20.10 representatives from other appropriate organizations, shall 20.11 develop recommendations for the creation of a building 20.12 technology center to conduct applied research, provide 20.13 technological development, and offer training regarding 20.14 technologies and methods that assure safe, affordable 20.15 buildings. The recommendations shall be made to the legislature 20.16 by January 20, 1999. 20.17 Sec. 26. [TOWN OF WYOMING; CITY OF CHISAGO CITY; MUNICIPAL 20.18 REIMBURSEMENT.] 20.19 Notwithstanding the limitation on duration or equality of 20.20 payment imposed under Minnesota Statutes, section 414.036, the 20.21 city of Chisago City may provide reimbursement for orderly 20.22 annexed property to the town of Wyoming for the period and in 20.23 the amounts agreed to by the city and the town under a joint 20.24 powers agreement entered into for the purpose of establishing a 20.25 joint commercial and business park in the annexed area as 20.26 described in section 2, paragraph (h). 20.27 Sec. 27. [TRAINING FOR HMONG AND LAOTIAN WOMEN.] 20.28 $100,000 of the appropriation in fiscal year 1999 for the 20.29 Job Training Partnership Act program in Laws 1997, chapter 200, 20.30 article 1, section 5, subdivision 4, is available to the Women's 20.31 Association of Hmong and Lao to provide employment and training 20.32 to eligible Hmong and Laotian women. 20.33 Sec. 28. [DISCLOSURE, CATEGORY 1; CATEGORY 2.] 20.34 Prior to March 1, 1999, a builder shall disclose in writing 20.35 to a purchaser before execution of a purchase contract whether 20.36 the residential building to be constructed is a category 1 or 21.1 category 2 building, as defined in Minnesota Rules, part 21.2 7670.0470, subpart 6, item A. The disclosure shall include an 21.3 explanation of the difference between the categories in respect 21.4 of ventilation systems. 21.5 Sec. 29. [PUBLIC EDUCATION CAMPAIGN.] 21.6 The department of commerce shall establish a public 21.7 education campaign to educate the public about homeowners' and 21.8 purchasers' rights under Minnesota Statutes, sections 16B.61, 21.9 subdivision 3b; 16B.65, subdivision 7; 326.87, subdivision 2; 21.10 326.975, subdivision 1; 327A.01, subdivisions 2 and 5; 327A.02, 21.11 subdivisions 1 and 3; 327A.03; 541.051, subdivisions 1 and 4, 21.12 and about ways to recognize safety and health issues that may 21.13 arise when purchasing a home, including potential moisture and 21.14 indoor air quality problems. 21.15 Sec. 30. [METRO STATE UNIVERSITY HOUSING PROJECT.] 21.16 The housing finance agency shall consult with the Minnesota 21.17 state colleges and universities system, the city of St. Paul, 21.18 the Dayton's Bluff neighborhood housing service, the district 4 21.19 council, the east side neighborhood development corporation, the 21.20 swede hollow land trust organization, east metro women's 21.21 resource center, and other interested parties concerning the 21.22 feasibility of a project to acquire and/or rehabilitate existing 21.23 housing structures for use as rental housing for low-income 21.24 students at Metro State University. The housing finance agency 21.25 shall report to the house and senate finance and policy 21.26 committees with jurisdiction over housing and education during 21.27 the 1999 legislative session on the feasibility of the project, 21.28 and identify the barriers to the project and the potential 21.29 sources of funding. 21.30 Sec. 31. [COMMUNITY AND CONVENTION CENTERS; CRITERIA FOR 21.31 STATE ASSISTANCE; STUDY.] 21.32 The center for rural policy and development shall study the 21.33 issue of state grants to local units of government located 21.34 outside the metropolitan seven county area for community and 21.35 convention center projects. The study shall develop criteria 21.36 for awarding those grants. Specifically, and without 22.1 limitation, the center must consider as criteria: 22.2 (1) matching requirements for grants; 22.3 (2) the ability of the center to operate without further 22.4 state financial assistance; 22.5 (3) for convention centers, the availability of privately 22.6 operated facilities in the area that provide the same service as 22.7 the proposed convention center; and 22.8 (4) for community centers, the access of low-income people, 22.9 collaboration with other facilities for seniors and youth, 22.10 including schools, and the availability of the center to youth 22.11 in the evening. 22.12 The center shall report its findings and recommended 22.13 criteria to the economic development finance divisions of the 22.14 senate and house by March 1, 1999. 22.15 Sec. 32. [MINNESOTA INVESTMENT FUND.] 22.16 Subdivision 1. [CITY OF LUVERNE.] Notwithstanding the 22.17 grant limit contained in Minnesota Statutes, section 116J.8731, 22.18 subdivision 5, a grant of up to $1,000,000 may be made to the 22.19 city of Luverne to offset severe job losses due to plant 22.20 closings. Before a grant is made, there must be coordination 22.21 with an existing environmental review of the impact on 22.22 groundwater by the Minnesota pollution control agency in 22.23 cooperation with the public facilities authority and its program 22.24 for wastewater infrastructure and the state revolving loan fund 22.25 for drinking water or wastewater treatment. 22.26 Subd. 2. [SOYBEAN OILSEED PROCESSING 22.27 FACILITY.] Notwithstanding the grant limit in Minnesota 22.28 Statutes, section 116J.8731, subdivision 5, a grant of up to 22.29 $1,000,000 may be made to a political subdivision that is chosen 22.30 as a site for a soybean oilseed processing facility, constructed 22.31 by a Minnesota-based cooperative. The grant may be used for 22.32 site preparation, predevelopment, and other infrastructure 22.33 improvements, including public and private utility improvements, 22.34 that are necessary for development of the oilseed processing 22.35 facility. The grant may be made any time until December 31, 22.36 2000. 23.1 Sec. 33. Minnesota Statutes 1996, section 16B.06, 23.2 subdivision 2, is amended to read: 23.3 Subd. 2. [VALIDITY OF STATE CONTRACTS.] (a) A state 23.4 contract or lease is not valid and the state is not bound by it 23.5 until: 23.6 (1) it has first been executed by the head of the agency or 23.7 a delegate which is a party to the contract; 23.8 (2) it has been approved by the commissioner or a delegate, 23.9 under this section; 23.10 (3) it has been approved by the attorney general or a 23.11 delegate as to form and execution; and 23.12 (4) the account system shows an allotment or encumbrance 23.13 balance for the full amount of the contract liability. 23.14 (b) Paragraph (a), clause (2), does not apply to contracts 23.15 between state agencies, contracts awarding grants,orcontracts 23.16 making loans, or bond purchase agreements by the department of 23.17 trade and economic development or the Minnesota public 23.18 facilities authority. 23.19 (c) The head of the agency may delegate the execution of 23.20 specific contracts or specific types of contracts to a 23.21 designated subordinate within the agency if the delegation has 23.22 been approved by the commissioner of administration and filed 23.23 with the secretary of state. The fully executed copy of every 23.24 contract or lease must be kept on file at the contracting agency. 23.25 Sec. 34. Minnesota Statutes 1996, section 16B.08, 23.26 subdivision 7, is amended to read: 23.27 Subd. 7. [SPECIFIC PURCHASES.] (a) The following may be 23.28 purchased without regard to the competitive bidding requirements 23.29 of this chapter: 23.30 (1) merchandise for resale at state park refectories or 23.31 facility operations; 23.32 (2) farm and garden products, which may be sold at the 23.33 prevailing market price on the date of the sale; 23.34 (3) meat for other state institutions from the technical 23.35 college maintained at Pipestone by independent school district 23.36 No. 583;and24.1 (4) products and services from the Minnesota correctional 24.2 facilities; and 24.3 (5) merchandise for resale at office of tourism locations. 24.4 (b) Supplies, materials, equipment, and utility services 24.5 for use by a community-based residential facility operated by 24.6 the commissioner of human services may be purchased or rented 24.7 without regard to the competitive bidding requirements of this 24.8 chapter. 24.9 (c) Supplies, materials, or equipment to be used in the 24.10 operation of a hospital licensed under sections 144.50 to 144.56 24.11 that are purchased under a shared service purchasing arrangement 24.12 whereby more than one hospital purchases supplies, materials, or 24.13 equipment with one or more other hospitals, either through one 24.14 of the hospitals or through another entity, may be purchased 24.15 without regard to the competitive bidding requirements of this 24.16 chapter if the following conditions are met: 24.17 (1) the hospital's governing authority authorizes the 24.18 arrangement; 24.19 (2) the shared services purchasing program purchases items 24.20 available from more than one source on the basis of competitive 24.21 bids or competitive quotations of prices; and 24.22 (3) the arrangement authorizes the hospital's governing 24.23 authority or its representatives to review the purchasing 24.24 procedures to determine compliance with these requirements. 24.25 Sec. 35. Minnesota Statutes 1996, section 16B.65, 24.26 subdivision 7, is amended to read: 24.27 Subd. 7. [CONTINUING EDUCATION.] Subject to sections 24.28 16B.59 to 16B.75, the commissioner may by rule establish or 24.29 approve continuing education programs for municipal building 24.30 officials dealing with matters of building code administration, 24.31 inspection, and enforcement. 24.32 Effective January 1, 1985, each person certified as a 24.33 building official for the state must satisfactorily complete 24.34 applicable educational programs established or approved by the 24.35 commissioner every three calendar years to retain certification, 24.36 including at least three hours in programs relating to the state 25.1 energy code. 25.2 Each person certified as a building official must submit in 25.3 writing to the commissioner an application for renewal of 25.4 certification within 60 days of the last day of the third 25.5 calendar year following the last certificate issued. Each 25.6 application for renewal must be accompanied by proof of 25.7 satisfactory completion of minimum continuing education 25.8 requirements and the certification renewal fee established by 25.9 the commissioner. 25.10 For persons certified prior to January 1, 1985, the first 25.11 three-year period commences January 1, 1985. 25.12 Sec. 36. Minnesota Statutes 1997 Supplement, section 25.13 115C.09, subdivision 3f, is amended to read: 25.14 Subd. 3f. [REIMBURSEMENTS; SMALL GASOLINE RETAILERS.] (a) 25.15 As used in this subdivision, "small gasoline retailer" means 25.16 aresponsible persontank owner or operator who ownsno more25.17thanonly one location in this state, and no locations in any 25.18 other state, where motor fuel was dispensed to the public into 25.19 motor vehicles, watercraft, or aircraftin the previous year, 25.20 and who dispensed motor fuel at that location. 25.21 (b) Notwithstanding subdivision 1, paragraph (b), clause 25.22 (1), for eligible applicants who are small gasoline retailers 25.23 that have dispensed less than 500,000 gallons of motor fuel 25.24 during the most recent calendar year that petroleum products 25.25 were dispensed at the location owned by the retailer, the board 25.26 shall reimburse the applicant for 90 percent of the applicant's 25.27 total reimbursable cost for tank removal projects started after 25.28 January 1,19971996, including, but not limited to, tank 25.29 removal, closure in place, backfill, resurfacing, and utility 25.30 service restoration costs, regardless of whether a release has 25.31 occurred at the site, provided that the tank involved is a 25.32 regulated underground storage tank. 25.33 (c) Notwithstanding subdivision 1, paragraph (b), clause 25.34 (1), for eligible applicants who are small gasoline retailers 25.35 that have dispensed less than 250,000 gallons of motor fuel 25.36 during the most recent calendar year that petroleum products 26.1 were dispensed at the location owned by the retailer, provided 26.2 that the tank involved is a regulated underground storage tank, 26.3 the board shall reimburse the applicant for 95 percent of the 26.4 following costs: 26.5 (1) tank removal costs described in paragraph (b); and 26.6 (2) petroleum contamination cleanup as provided under 26.7 subdivision 1 incurred during or after the tank removal project. 26.8 (d) An applicant who owns only one location in this or any 26.9 other state where motor fuel was dispensed to the public into 26.10 motor vehicles, watercraft, or aircraft but who did not dispense 26.11 motor fuel at that location may qualify as a small gasoline 26.12 retailer if: 26.13 (1) the previous tank owner or operator at the location was 26.14 a small gasoline retailer that dispensed less than 500,000 26.15 gallons of motor fuel during the most recent calendar year that 26.16 petroleum products were dispensed at the location; and 26.17 (2) the applicant acquired legal or equitable title to the 26.18 property after January 1, 1996. 26.19 (e) This subdivision expires January 1, 2000. 26.20 Sec. 37. Minnesota Statutes 1996, section 115C.09, is 26.21 amended by adding a subdivision to read: 26.22 Subd. 3g. [REIMBURSEMENTS; SMALL BUSINESS OWNERS.] (a) As 26.23 used in this subdivision, "small business owner" means a person: 26.24 (1) who has no more than $250,000 per year in sales; 26.25 (2) who owns no more than one location where motor fuel was 26.26 previously dispensed to the public into motor vehicles; 26.27 (3) who did not dispense motor fuel at that location; and 26.28 (4) whose tanks were never registered with the state. 26.29 (b) Notwithstanding subdivision 1, paragraph (b), clause 26.30 (1), the board shall reimburse an eligible applicant who is a 26.31 small business owner for 90 percent of the applicant's total 26.32 reimbursable cost for tank removal projects started after 26.33 January 1, 1998, including, but not limited to, tank removal, 26.34 closure in place, backfill, resurfacing, and utility service 26.35 restoration costs, regardless of whether a release has occurred 26.36 at the site, and provided that the person does not intend to 27.1 replace the tanks. 27.2 Sec. 38. Minnesota Statutes 1996, section 116.182, 27.3 subdivision 1, is amended to read: 27.4 Subdivision 1. [DEFINITIONS.] (a) For the purposes of this 27.5 section, the terms defined in this subdivision have the meanings 27.6 given them. 27.7 (b) "Agency" means the pollution control agency. 27.8 (c) "Authority" means the public facilities authority 27.9 established in section 446A.03. 27.10 (d) "Commissioner" means the commissioner of the pollution 27.11 control agency. 27.12 (e) "Essential project components" means those components 27.13 of a wastewater disposal system that are necessary to convey or 27.14 treat a municipality's existing wastewater flows and loadings, 27.15 and future wastewater flows and loadings based on 50 percent of 27.16 the projected residential growth of the municipality for a 27.17 20-year period. 27.18 (f) "Municipality" means a county, home rule charter or 27.19 statutory city, town, the metropolitan council, an Indian tribe 27.20 or an authorized Indian tribal organization; or any other 27.21 governmental subdivision of the state responsible by law for the 27.22 prevention, control, and abatement of water pollution in any 27.23 area of the state. 27.24 (g) "Outstanding international resource value waters" are 27.25 the surface waters of the state in the Lake Superior Basin, 27.26 other than Class 7 waters and those waters designated as 27.27 outstanding resource value waters. 27.28 (h) "Outstanding resource value waters" are those that have 27.29 high water quality, wilderness characteristics, unique 27.30 scientific or ecological significance, exceptional recreation 27.31 value, or other special qualities that warrant special 27.32 protection. 27.33 Sec. 39. Minnesota Statutes 1996, section 116.182, is 27.34 amended by adding a subdivision to read: 27.35 Subd. 3a. [NOTIFICATION OF OTHER GOVERNMENT UNITS.] In 27.36 addition to other applicable statutes or rules that are required 28.1 to receive financial assistance consistent with this 28.2 subdivision, the commissioner may not approve or certify a 28.3 project to the public facilities authority for wastewater 28.4 financial assistance unless the following requirements are met: 28.5 (1) prior to the initiation of the public facilities 28.6 planning process for a new wastewater treatment system, the 28.7 project proposer gives written notice to all municipalities as 28.8 defined in 116.82 within ten miles of the proposed project 28.9 service area, including the county in which the project is 28.10 located, the office of strategic and long-range planning, and 28.11 the pollution control agency. The notice shall state the 28.12 proposer's intent to begin the facilities planning process and 28.13 provide a description of the need for the proposed project. The 28.14 notice also shall request a response within 30 days of the 28.15 notice date from all government units who wish to receive and 28.16 comment on the future facilities plan for the proposed project; 28.17 (2) during development of the facility plan's analysis of 28.18 service alternatives, the project proposer must request 28.19 information from all municipalities and sanitary districts which 28.20 have existing systems that have current capacity to meet the 28.21 proposer's needs or can be upgraded to meet those needs. At a 28.22 minimum, the proposer must notify in writing those 28.23 municipalities and sanitary districts whose corporate limits or 28.24 boundaries are within three miles of the proposed project's 28.25 service area; 28.26 (3) 60 days prior to the municipality's public hearing on 28.27 the facilities plan, a copy of the draft facilities plan and 28.28 notice of the public hearing on the facilities plan must be 28.29 given to the local government units who previously expressed 28.30 interest in the proposed project under clause (1); 28.31 (4) for a proposed project located or proposed to be 28.32 located outside the corporate limits of a city, the affected 28.33 county has certified to the agency that the proposed project is 28.34 consistent with the applicable county comprehensive plan and 28.35 zoning and subdivision regulations; and 28.36 (5) copies of the notifications required under clauses (1) 29.1 and (2), as well as the certification from the county and a 29.2 summary of the comments received, must be included by the 29.3 municipality in the submission of its facilities plan to the 29.4 pollution control agency, along with other required items as 29.5 specified in the agency's rules. 29.6 This subdivision does not apply to the western Lake 29.7 Superior sanitary district or the metropolitan council. 29.8 Sec. 40. Minnesota Statutes 1996, section 116J.415, 29.9 subdivision 5, is amended to read: 29.10 Subd. 5. [LOAN CRITERIA.] The following criteria apply to 29.11 loans made under the challenge grant program: 29.12 (1) loans must be made to businesses that are not likely to 29.13 undertake a project for which loans are sought without 29.14 assistance from the challenge grant program; 29.15 (2) a loan must be used for a project designed principally 29.16 to benefit low-income persons through the creation of job or 29.17 business opportunities for them; 29.18 (3) the minimum loan is $5,000 and the maximum 29.19 is$100,000$200,000; 29.20 (4) a loan may not exceed 50 percent of the total cost of 29.21 an individual project; 29.22 (5) a loan may not be used for a retail development 29.23 project; and 29.24 (6) a business applying for a loan, except a 29.25 microenterprise loan under subdivision 6, must be sponsored by a 29.26 resolution of the governing body of the local governmental unit 29.27 within whose jurisdiction the project is located. 29.28 Sec. 41. Minnesota Statutes 1997 Supplement, section 29.29 116J.421, subdivision 1, is amended to read: 29.30 Subdivision 1. [ESTABLISHED.] The rural policy and 29.31 development center is established at Mankato State University. 29.32 The center may be established by the board as a nonprofit 29.33 corporation under section 501(c)3 of the Internal Revenue Code 29.34 or the board may organize and operate the center in a manner and 29.35 form that the board determines best allows the center to carry 29.36 out its duties. 30.1 Sec. 42. Minnesota Statutes 1997 Supplement, section 30.2 116J.421, is amended by adding a subdivision to read: 30.3 Subd. 5. [POWERS.] The board has the power to do all 30.4 things reasonable and necessary to carry out the duties of the 30.5 center including, without limitation, the power to: 30.6 (1) enter into contracts for goods or services with 30.7 individuals and private and public entities; 30.8 (2) sue and be sued; 30.9 (3) acquire, hold, lease, and transfer any interest in real 30.10 and personal property; 30.11 (4) accept appropriations, gifts, grants, and bequests; 30.12 (5) hire employees; and 30.13 (6) delegate any of its powers. 30.14 Sec. 43. [116J.544] [DEFINITIONS.] 30.15 Subdivision 1. [TERMS.] For the purposes of sections 30.16 116J.544 to 116J.545, the following terms have the meanings 30.17 given them. 30.18 Subd. 2. [BOARD.] "Board" means the Minnesota film board. 30.19 Subd. 3. [COMMISSIONER.] "Commissioner" means the 30.20 commissioner of trade and economic development. 30.21 Sec. 44. [116J.5445] [DUTIES; REPORTS.] 30.22 The commissioner shall enter into a contract with the board 30.23 to implement the revolving loan fund created in section 30.24 116J.545. The contract shall include a description of the 30.25 board's responsibilities in reviewing, approving, and monitoring 30.26 of projects funded by the loan fund. The commissioner shall 30.27 submit an annual report to the legislature by January 1 of each 30.28 year describing each loan made under section 116J.545, including 30.29 information on the production and distribution status of each 30.30 project for which a loan has been made, the repayment status of 30.31 each loan, the number of jobs created in Minnesota, the amount 30.32 of expenditures in Minnesota, and the amount and source of 30.33 matching funds. 30.34 Sec. 45. [116J.545] [MINNESOTA FILM AND TELEVISION 30.35 REVOLVING LOAN FUND.] 30.36 Subdivision 1. [ELIGIBLE PROJECTS.] An eligible project is 31.1 a feature film, long form television project, or television 31.2 series. At least one of the project's principals must be a 31.3 Minnesota resident. The principals are defined as the project's 31.4 director, producer, or company chief executive officer. 31.5 Subd. 2. [REVOLVING LOAN FUND.] The commissioner shall 31.6 establish a revolving loan fund in the special revenue fund for 31.7 the purpose of making loans to finance eligible projects. Loan 31.8 applications given preliminary approval by the board must be 31.9 forwarded to the commissioner for final approval. Funds for the 31.10 loan will be disbursed by the commissioner to the board after 31.11 this approval. 31.12 Subd. 3. [BUSINESS LOAN CRITERIA.] (a) The criteria in 31.13 this subdivision apply to loans made under the Minnesota film 31.14 and television revolving loan fund. 31.15 (b) Loans must only be made for projects that the board 31.16 determines would not be undertaken without assistance from the 31.17 loan fund. 31.18 (c) The minimum loan is $50,000 and the maximum loan is 31.19 $500,000. The board will determine the interest rate, terms, 31.20 maturity, and collateral for each loan. The interest rate must 31.21 be at least three percent. 31.22 (d) The amount of a loan may not exceed 50 percent of each 31.23 project. 31.24 (e) Funded projects will be required to spend 120 percent 31.25 of the amount of the loan in Minnesota. These expenditures may 31.26 include direct production or postproduction costs as well as 31.27 talent, producer, or director fees. 31.28 (f) The commissioner may adopt rules to implement this 31.29 section. 31.30 Subd. 4. [REVOLVING LOAN FUND ADMINISTRATION.] (a) Loan 31.31 repayment amounts must be returned by the board to the 31.32 commissioner and deposited in a revolving loan fund for 31.33 additional loans to be made by the board. 31.34 (b) Administrative expenses of the board incurred to 31.35 operate the loan program, not to exceed $50,000 per year, may be 31.36 paid to the board from the revolving loan fund. 32.1 Subd. 5. [REPORTING REQUIREMENTS.] The board shall: 32.2 (1) submit an annual report to the commissioner by 32.3 September 30 of each year that includes a description of 32.4 projects funded for the preceding 12 months as of June 30 of the 32.5 same year. The report shall include a description of projects 32.6 supported by the revolving loan fund, the production and 32.7 distribution status of each project for which a loan has been 32.8 made, the terms of each loan and the repayment status of each 32.9 loan, the number of jobs created in Minnesota and the amount of 32.10 expenditures in Minnesota, and the amount and source of matching 32.11 funds. A description of the administrative expenses incurred by 32.12 the board shall also be included; and 32.13 (2) provide for an independent annual audit to be performed 32.14 in accordance with generally accepted accounting practices and 32.15 auditing standards and submit a copy of each annual audit report 32.16 to the commissioner. 32.17 Sec. 46. Minnesota Statutes 1996, section 116J.553, 32.18 subdivision 2, is amended to read: 32.19 Subd. 2. [REQUIRED CONTENT.] (a) The commissioner shall 32.20 prescribe and provide the application form. Except as provided 32.21 in paragraphs (b) and (c), the application must include at least 32.22 the following information: 32.23 (1) identification of the site; 32.24 (2) an approved response action plan for the site, 32.25 including the results of engineering and other tests showing the 32.26 nature and extent of the release or threatened release of 32.27 contaminants at the site; 32.28 (3) a detailed estimate, along with necessary supporting 32.29 evidence, of the total cleanup costs for the site; 32.30 (4) an appraisal of the current market value of the 32.31 property, separately taking into account the effect of the 32.32 contaminants on the market value, prepared by a qualified 32.33 independent appraiser using accepted appraisal methodology; 32.34 (5) an assessment of the development potential or likely 32.35 use of the site after completion of the response action plan, 32.36 including any specific commitments from third parties to 33.1 construct improvements on the site; 33.2 (6) the manner in which the municipality will meet the 33.3 local match requirement; and 33.4 (7) any additional information or material that the 33.5 commissioner prescribes. 33.6 (b) An application for a grant under section 116J.554, 33.7 subdivision 1, paragraph (b), must include a detailed estimate 33.8 of the cost of the actions for which the grant is sought, but 33.9 need not include the information specified in paragraph (a), 33.10 clauses (2) to (4) and (6). 33.11 (c) A response action plan is not required as a condition 33.12 to receive a grant under section 116J.554, subdivision 1, 33.13 paragraph (c). 33.14 Sec. 47. Minnesota Statutes 1996, section 116L.03, 33.15 subdivision 5, is amended to read: 33.16 Subd. 5. [TERMS AND COMPENSATION.] The terms of appointed 33.17 members shall be for four years except for the initial 33.18 appointments. The initial appointments of the governor shall 33.19 have the following terms: two members each for one, two, three, 33.20 and four years. Compensation of members shall be as provided in 33.21 section 15.0575, subdivision 3. 33.22 Sec. 48. Minnesota Statutes 1997 Supplement, section 33.23 179A.03, subdivision 7, is amended to read: 33.24 Subd. 7. [ESSENTIAL EMPLOYEE.] "Essential employee" means 33.25 firefighters, peace officers subject to licensure under sections 33.26 626.84 to 626.863, guards at correctional facilities, 33.27 confidential employees, supervisory employees, assistant county 33.28 attorneys, assistant city attorneys, principals, and assistant 33.29 principals. However, for state employees, "essential employee" 33.30 means all employees in law enforcement, health care 33.31 professionals, correctional guards, professional engineering, 33.32 and supervisory collective bargaining units, irrespective of 33.33 severance, and no other employees. For University of Minnesota 33.34 employees, "essential employee" means all employees in law 33.35 enforcement, nursing professional and supervisory units, 33.36 irrespective of severance, and no other employees. 34.1 "Firefighters" means salaried employees of a fire department 34.2 whose duties include, directly or indirectly, controlling, 34.3 extinguishing, preventing, detecting, or investigating fires. 34.4 Sec. 49. [181.636] [EMPLOYEE NOTICE OF RIGHTS; FOREIGN 34.5 LANGUAGES.] 34.6 Subdivision 1. [EMPLOYER DEFINED.] For the purposes of 34.7 this section, "employer" means any person employing one or more 34.8 employees. 34.9 Subd. 2. [EMPLOYEE RIGHTS FORM.] The commissioner of labor 34.10 and industry shall provide a single brochure for use in 34.11 providing the notice required in subdivision 3. The single form 34.12 must contain the disclosure in English and in ten other 34.13 languages that the commissioner determines are the most commonly 34.14 spoken as the dominant language by Minnesota employees. 34.15 Subd. 3. [EMPLOYEE RIGHTS NOTICE.] An employer shall 34.16 provide a brochure provided by the department of labor and 34.17 industry within ten days of the first day of work that notifies 34.18 the job offeree that: 34.19 (1) there are state and federal laws that regulate minimum 34.20 wages and maximum hours of work; prohibit unsafe working 34.21 conditions and discrimination; prohibit employers from making 34.22 false statements in order to induce someone into employment; and 34.23 require the terms and conditions of employment be provided in 34.24 writing to migrant farm workers and persons employed in the food 34.25 processing industry; and 34.26 (2) the employee may call the department of labor and 34.27 industry and the department of human rights at a telephone 34.28 number indicated on the brochure to learn about those laws and 34.29 the employee's rights. 34.30 Sec. 50. Minnesota Statutes 1996, section 181.64, is 34.31 amended to read: 34.32 181.64 [FALSE STATEMENTS AS INDUCEMENT TO ENTERING 34.33 EMPLOYMENT.] 34.34 It shall be unlawful for any person, partnership, company, 34.35 corporation, association, or organization of any kind, doing 34.36 business in this state, directly or through any agent or 35.1 attorney, to induce, influence, persuade, or engage any person 35.2to change from one place to another in this state, or to change35.3from any place in any state, territory, or country to any place35.4in this state,to work in any branch of labor through or by 35.5 means of knowingly false representations, whether spoken, 35.6 written, or advertised in printed form, concerning the kind or 35.7 character of such work, the compensation therefor, the sanitary 35.8 conditions relating to or surrounding it, or failure to state in 35.9 any advertisement, proposal, or contract for the employment that 35.10 there is a strike or lockout at the place of the proposed 35.11 employment, when in fact such strike or lockout then actually 35.12 exists in such employment at such place. Any such unlawful acts 35.13 shall be deemed a false advertisement or misrepresentation for 35.14 the purposes of this section and section 181.65. 35.15 Sec. 51. Minnesota Statutes 1996, section 181.65, is 35.16 amended to read: 35.17 181.65 [PENALTIES.] 35.18AnyA person, firm, association, or corporation violating 35.19 any provision of section 181.64and this section shall beis 35.20 guilty of a misdemeanor.AnyA person whoshall beis 35.21 influenced, induced, or persuaded to enter or change employment 35.22 or change a place of employment through or by means of any of 35.23 the things prohibited in section 181.64,shall havehas a right 35.24 of action for the recovery of all damages sustained in 35.25 consequence of the false or deceptive representations, false 35.26 advertising, or false pretenses used to induce the person to 35.27 enter into or change a place of employment, against any person, 35.28 firm, association, or corporation directly or indirectly causing 35.29 such damage; and, in addition to all such actual damagessuch35.30 the person may have sustained,shall havehas the right to 35.31 recoversuchreasonable attorneys' fees as the court shall fix, 35.32 to be taxed as costs in any judgment recovered. 35.33 In addition to any other penalties, the commissioner of 35.34 labor and industry may fine an employer up to $1,000 for each 35.35 violation of section 181.64. In determining the amount of the 35.36 fine, the size of the employer's business, the number of 36.1 violations, and past violations must be considered. 36.2 Sec. 52. Minnesota Statutes 1997 Supplement, section 36.3 268.07, subdivision 2, as amended by Laws 1998, chapter 265, 36.4 section 23, is amended to read: 36.5 Subd. 2. [WEEKLY BENEFIT AMOUNT AND MAXIMUM AMOUNT OF 36.6 BENEFITS.] (a) To establish a reemployment insurance account, a 36.7 claimant must have: 36.8 (1) wage credits in two or more calendar quarters of the 36.9 claimant's base period; 36.10 (2) minimum total wage credits equal to or greater than the 36.11 high quarter wage credits multiplied by 1.25; 36.12 (3) high quarter wage credits of not less than $1,000. 36.13 (b) If the commissioner finds that a claimant has 36.14 established a reemployment insurance account, the weekly benefit 36.15 amount payable during the claimant's benefit year shall be the 36.16 higher of: 36.17 (1) 50 percent of the claimant's average weekly wage during 36.18 the claimant's base period, to a maximum of 66-2/3 percent of 36.19 the state's average weekly wage; or 36.20 (2) 50 percent of the claimant's average weekly wage during 36.21 the high quarter, to a maximum of the higher of $331 or 50 36.22 percent of the state's average weekly wage, or $331, whichever36.23is higher. 36.24 The claimant's average weekly wage under clause (1) shall 36.25 be computed by dividing the claimant's total wage credits by 36.26 52. The claimant's average weekly wage under clause (2) shall 36.27 be computed by dividing the claimant's high quarter wage credits 36.28 by 13. 36.29 (c) The state's maximum weekly benefit amount and the 36.30 claimant's weekly benefit amount shall be computed to the 36.31 nearest whole dollar. 36.32 (d) The maximum amount of benefits payable on any 36.33 reemployment insurance account shall equal one-third of the 36.34 claimant's total wage credits rounded to the next lower dollar, 36.35 not to exceed 26 times the claimant's weekly benefit amount. 36.36 Sec. 53. Minnesota Statutes 1996, section 326.87, 37.1 subdivision 2, is amended to read: 37.2 Subd. 2. [HOURS.] A qualifying person of a licensee must 37.3 provide proof of completion ofseveneight hours of continuing 37.4 education per year. At least three hours of continuing 37.5 education per year must relate to requirements of the state 37.6 energy code. To the extent the commissioner considers it 37.7 appropriate, courses or parts of courses may be considered to 37.8 satisfy both continuing education requirements under this 37.9 section and continuing real estate education requirements. 37.10 Sec. 54. Minnesota Statutes 1996, section 326.975, 37.11 subdivision 1, is amended to read: 37.12 Subdivision 1. [GENERALLY.] (a) In addition to any other 37.13 fees, each applicant for a license under sections 326.83 to 37.14 326.98 shall pay a fee to the contractor's recovery fund. The 37.15 contractor's recovery fund is created in the state treasury and 37.16 must be administered by the commissioner in the manner and 37.17 subject to all the requirements and limitations provided by 37.18 section 82.34 with the following exceptions: 37.19 (1) each licensee who renews a license shall pay in 37.20 addition to the appropriate renewal fee an additional fee which 37.21 shall be credited to the contractor's recovery fund. The amount 37.22 of the fee shall be based on the licensee's gross annual 37.23 receipts for the licensee's most recent fiscal year preceding 37.24 the renewal, on the following scale: 37.25 Fee Gross Receipts 37.26 $100 under $1,000,000 37.27 $150 $1,000,000 to $5,000,000 37.28 $200 over $5,000,000 37.29 Any person who receives a new license shall pay a fee based on 37.30 the same scale; 37.31 (2) thesolepurpose of this fund is to compensate any 37.32 aggrieved owner or lessee of residential property who obtains a 37.33 final judgment in any court of competent jurisdiction against a 37.34 licensee licensed under section 326.84, on grounds of 37.35 fraudulent, deceptive, or dishonest practices, conversion of 37.36 funds, or failure of performance or breach of warranty arising 38.1 directly out of any transaction when the judgment debtor was 38.2 licensed and performed any of the activities enumerated under 38.3 section 326.83, subdivision 19, on the owner's residential 38.4 property or on residential property rented by the lessee, or on 38.5 new residential construction which was never occupied prior to 38.6 purchase by the owner, or which was occupied by the licensee for 38.7 less than one year prior to purchase by the owner, and which 38.8 cause of action arose on or after April 1, 1994; 38.9 (3) nothing may obligate the fund for more than $50,000 per 38.10 claimant, nor more than $50,000 per licensee;and38.11 (4) nothing may obligate the fund for claims based on a 38.12 cause of action that arose before the licensee paid the recovery 38.13 fund fee set in clause (1), or as provided in section 326.945, 38.14 subdivision 3; and 38.15 (5) appropriations from this fund may be made for expenses 38.16 of providing information to consumers on residential 38.17 construction issues. 38.18 (b) Should the commissioner pay from the contractor's 38.19 recovery fund any amount in settlement of a claim or toward 38.20 satisfaction of a judgment against a licensee, the license shall 38.21 be automatically suspended upon the effective date of an order 38.22 by the court authorizing payment from the fund. No licensee 38.23 shall be granted reinstatement until the licensee has repaid in 38.24 full, plus interest at the rate of 12 percent a year, twice the 38.25 amount paid from the fund on the licensee's account, and has 38.26 obtained a surety bond issued by an insurer authorized to 38.27 transact business in this state in the amount of at least 38.28$40,000$50,000. 38.29 Sec. 55. Minnesota Statutes 1996, section 327A.01, 38.30 subdivision 2, is amended to read: 38.31 Subd. 2. [BUILDING STANDARDS.] "Building standards" means 38.32 the structural, mechanical, electrical, and quality standards of 38.33 the home building industry for the geographic area in which the 38.34 dwelling is situated. For those geographic areas where the 38.35 state building code adopted by the commissioner of 38.36 administration according to sections 16B.59 to 16B.75 is in 39.1 effect, "building standards" shall be no less rigorous than the 39.2 state building code. 39.3 Sec. 56. Minnesota Statutes 1996, section 327A.01, 39.4 subdivision 5, is amended to read: 39.5 Subd. 5. [MAJOR CONSTRUCTION DEFECT.] "Major construction 39.6 defect" means actual damage to the load-bearing portion of the 39.7 dwelling or the home improvement, including damage due to 39.8 subsidence, expansion or lateral movement of the soil, which 39.9 affects the load-bearing function and whichvitally39.10 substantially affects or is imminently likely tovitally39.11 substantially affect use of the dwelling or the home improvement 39.12 for residential purposes. "Major construction defect" does not 39.13 include damage due to movement of the soil caused by flood, 39.14 earthquake or other natural disaster. 39.15 Sec. 57. Minnesota Statutes 1996, section 327A.02, 39.16 subdivision 1, is amended to read: 39.17 Subdivision 1. [WARRANTIES BY VENDORS.] (a) In every sale 39.18 of a completed dwelling, and in every contract for the sale of a 39.19 dwelling to be completed, the vendor shall warrant to the vendee 39.20 that: 39.21(a)(1) during the one-year period from and after the 39.22 warranty date the dwelling shall be free from defects caused by 39.23 faulty workmanship and defective materials due to noncompliance 39.24 with building standards; 39.25(b)(2) during thetwo-yearthree-year period from and 39.26 after the warranty date, the dwelling shall be free from defects 39.27 caused by faulty installation of plumbing, electrical, heating, 39.28 and cooling systems; and 39.29(c)(3) during the ten-year period from and after the 39.30 warranty date, the dwelling shall be free from major 39.31 construction defects. 39.32 (b) The warranties provided by this chapter are transferred 39.33 automatically with conveyance of the property and benefit the 39.34 initial vendee and all future vendees. 39.35 Sec. 58. Minnesota Statutes 1996, section 327A.02, 39.36 subdivision 3, is amended to read: 40.1 Subd. 3. [HOME IMPROVEMENT WARRANTIES.] (a) In a sale or 40.2 in a contract for the sale of home improvement work involving 40.3 major structural changes or additions to a residential building, 40.4 the home improvement contractor shall warrant to the owner that: 40.5 (1) during the one-year period from and after the warranty 40.6 date the home improvement shall be free from defects caused by 40.7 faulty workmanship and defective materials due to noncompliance 40.8 with building standards; and 40.9 (2) during the ten-year period from and after the warranty 40.10 date the home improvement shall be free from major construction 40.11 defects. 40.12 (b) In a sale or in a contract for the sale of home 40.13 improvement work involving the installation of plumbing, 40.14 electrical, heating or cooling systems, the home improvement 40.15 contractor shall warrant to the owner that, during thetwo-year40.16 three-year period from and after the warranty date, the home 40.17 improvement shall be free from defects caused bythefaulty 40.18 installation of the system or systems. 40.19 (c) In a sale or in a contract for the sale of any home 40.20 improvement work not covered by paragraph (a) or (b), the home 40.21 improvement contractor shall warrant to the owner that, during 40.22 theone-yeartwo-year period from and after the warranty date, 40.23 the home improvement shall be free from defects caused by faulty 40.24 workmanship or defective materials due to noncompliance with 40.25 building standards. 40.26 Sec. 59. Minnesota Statutes 1996, section 327A.03, is 40.27 amended to read: 40.28 327A.03 [EXCLUSIONS.] 40.29 The liability of the vendor or the home improvement 40.30 contractor under sections 327A.01 to 327A.07 is limited to the 40.31 specific items set forth in sections 327A.01 to 327A.07 and does 40.32 not extend to the following: 40.33 (a) Loss or damage not reported by the vendee or the owner 40.34 to the vendor or the home improvement contractor in writing 40.35 withinsix monthsone year after the vendee or the owner 40.36 discovers or should have discovered the loss or damage; 41.1 (b) Loss or damage caused by defects in design, 41.2 installation, or materials which the vendee or the owner 41.3 supplied, installed, or directed to be installed; 41.4 (c) Secondary loss or damage such as personal injury or 41.5 property damage; 41.6 (d) Loss or damage from normal wear and tear; 41.7 (e) Loss or damage from normal shrinkage caused by drying 41.8 of the dwelling or the home improvement within tolerances of 41.9 building standards; 41.10 (f) Loss or damage from dampness and condensation due to 41.11 insufficient ventilation after occupancy, when the inadequate 41.12 ventilation is attributable to conditions resulting from 41.13 compliance with the requirements of the state energy code in 41.14 effect at the time of construction; 41.15 (g) Loss or damage from negligence, improper maintenance or 41.16 alteration of the dwelling or the home improvement by parties 41.17 other than the vendor or the home improvement contractor; 41.18 (h) Loss or damage from changes in grading of the ground 41.19 around the dwelling or the home improvement by parties other 41.20 than the vendor or the home improvement contractor; 41.21 (i) Landscaping or insect loss or damage; 41.22 (j) Loss or damage from failure to maintain the dwelling or 41.23 the home improvement in good repair; 41.24 (k) Loss or damage which the vendee or the owner, whenever 41.25 feasible, has not taken timely action to minimize; 41.26 (l) Loss or damage which occurs after the dwelling or the 41.27 home improvement is no longer used primarily as a residence; 41.28 (m) Accidental loss or damage usually described as acts of 41.29 God, including, but not limited to: fire, explosion, smoke, 41.30 water escape, windstorm, hail or lightning, falling trees, 41.31 aircraft and vehicles, flood, and earthquake, except when the 41.32 loss or damage is caused by failure to comply with building 41.33 standards; 41.34 (n) Loss or damage from soil movement which is compensated 41.35 by legislation or covered by insurance; 41.36 (o) Loss or damage due to soil conditions where 42.1 construction is done upon lands owned by the vendee or the owner 42.2 and obtained by the vendee or owner from a source independent of 42.3 the vendor or the home improvement contractor; 42.4 (p) In the case of home improvement work, loss or damage 42.5 due to defects in the existing structure and systems not caused 42.6 by the home improvement. 42.7 Sec. 60. [327A.035] [WARRANTY INFORMATION.] 42.8 A vendor or home improvement contractor must, prior to 42.9 entering into a contract covered by this chapter for the sale of 42.10 a dwelling or of home improvement work, provide the vendee or 42.11 owner with a copy of sections 327A.02 and 327A.03. 42.12 Sec. 61. Minnesota Statutes 1996, section 332.32, is 42.13 amended to read: 42.14 332.32 [EXCLUSIONS.] 42.15 The term "collection agency" shall not include persons 42.16 whose collection activities in this state are confined to and 42.17 are directly related to the operation of a business other than 42.18 that of a collection agency such as, but not limited to banks 42.19 when collecting accounts owed to the banks and when the bank 42.20 will sustain any loss arising from uncollectible accounts, 42.21 abstract companies doing an escrow business, real estate 42.22 brokers, public officers, persons acting under order of a court, 42.23 lawyers, trust companies, insurance companies, credit unions, 42.24 savings associations, loan or finance companies unless they are 42.25 engaged in asserting, enforcing or prosecuting unsecured claims 42.26 which have been purchased from any person, firm, or association 42.27 when there is recourse to the seller for all or part of the 42.28 claim if the claim is not collected, or any person residing in a 42.29 state that regulates collection agencies and whose collection 42.30 activities in this state are limited to incidental contact with 42.31 a resident debtor on behalf of an out-of-state creditor. As 42.32 used in this section, "incidental contact" means annual contact 42.33 with ten or fewer resident debtors through the use of interstate 42.34 communications, including telephone, mail service, or facsimile 42.35 transmissions. A creditor is deemed to be a Minnesota creditor 42.36 if a credit card agreement, from which the debt arises, was 43.1 signed in the state of Minnesota. 43.2 Sec. 62. Minnesota Statutes 1996, section 383B.79, 43.3 subdivision 1, is amended to read: 43.4 Subdivision 1. [PROGRAM CREATED.] A multijurisdictional 43.5 reinvestment program involving Hennepin county, the cities of 43.6 Minneapolis, Brooklyn Center, and other interested statutory or 43.7 home rule charter cities in Hennepin county, the Minneapolis 43.8 park board, and the suburban Hennepin county park district is 43.9 created. The multijurisdictional program must include plans for 43.10 housing rehabilitation and removals, industrial polluted land 43.11 cleanup, water ponding, environmental cleanup, community 43.12 corridor connections, corridor planning, creation of green 43.13 space, acquisition of property, development and redevelopment of 43.14 parks and open space, water quality and lakeshore improvement, 43.15 development and redevelopment of housing and existing commercial 43.16 projects, and job creation. 43.17 Sec. 63. Minnesota Statutes 1996, section 383B.79, is 43.18 amended by adding a subdivision to read: 43.19 Subd. 6. [ADMINISTRATION.] The board of county 43.20 commissioners shall administer the program and funds and bond 43.21 for projects in this section either as a county board or a 43.22 housing and redevelopment authority. The board of county 43.23 commissioners may acquire property in connection with the 43.24 project known as the Humboldt Avenue Greenway from any funds 43.25 under its control. 43.26 Sec. 64. Minnesota Statutes 1996, section 446A.072, 43.27 subdivision 2, is amended to read: 43.28 Subd. 2. [TYPE OF SUPPLEMENTAL ASSISTANCE.] Supplemental 43.29 assistance shall be in the form ofzero percent loans, with loan43.30repayments beginning February 20 or August 20 following the43.31scheduled date of the project obtaininggrants. If one year 43.32 after the initiation of operation of the project, the project 43.33 does not meet the operational performance standards established 43.34 by the agency, the grant must be repaid.Upon receipt of notice43.35from the agency that the project operational performance43.36standards have been met, the authority will forgive the44.1scheduled loan repayments made under this section. If not44.2forgiven, loanGrant repayments shall be deferred upon request 44.3 from the commissioner of the agency for six-month periods, 44.4 provided the commissioner has determined that satisfactory 44.5 progress is being made to achieve project performance or is 44.6 developing or implementing a corrective action plan. 44.7 Sec. 65. Minnesota Statutes 1996, section 446A.072, 44.8 subdivision 4, is amended to read: 44.9 Subd. 4. [FUNDING LEVEL.] (a) The authority shall provide 44.10 supplemental assistance for essential project component costs as 44.11 certified by the commissioner of the pollution control agency 44.12 under section 116.182, subdivision 4. 44.13 (b) A municipality may not receive more than $4,000,000 44.14 under this section unless specifically approved by law. 44.15 (c)The authority will calculate the grant amount needed44.16for the essential project component costs by first determining44.17the amount needed to reduce a municipality's monthly residential44.18sewer service charge to $25 or to an annual residential sewer44.19service charge in excess of 1.5 percent of the municipality's44.20median household income, whichever is less, and then multiplying44.21that amount by 80 percent to determine the actual award amount44.22to supplement loans under section 446A.07 or provide up to44.23one-third of the amount of the grant funding level required by44.24USDA/RECD for projects listed on the agency's intended use plan.44.25(d)The authority shall provide supplemental assistance for 44.26 up to one-half of the eligible grant funding level determined by 44.27 the United States Department of Agriculture Rural Development 44.28 funding for projects listed on the agency's project priority 44.29 list, in priority order. For municipalities that are not 44.30 eligible for United State Department of Agriculture Rural 44.31 Development funding for wastewater, the authority shall provide 44.32 supplemental assistance for: (1) essential project component 44.33 costs calculated by first determining the amount needed to 44.34 reduce a municipality's annual residential sewer costs to 1.4 44.35 percent of the municipality's median household income or $25 per 44.36 month per household, whichever is greater, and then multiplying 45.1 that amount by 80 percent to determine the actual award amount 45.2 to supplement loans under section 446A.07; and (2) up to 50 45.3 percent of the incremental costs specifically identified by the 45.4 agency as being attributable to more stringent wastewater 45.5 standards required to protect outstanding resource value waters 45.6 or outstanding international resource value waters. 45.7 (d) Notwithstanding paragraph (b), in the event that a 45.8 municipality's monthly residential sewer service charges average 45.9 above $50, the authority will provide 90 percent of the grant 45.10 amount needed to reduce the average monthly sewer service charge 45.11 to $50, provided the project is ranked in the top 50 percentile 45.12 of the agency's intended use plan. 45.13 (e) Notwithstanding paragraphs (b), (c), and (d), a 45.14 municipality with an annual median household income of $40,000 45.15 or greater shall not be eligible for a grant, except for 45.16 incremental costs specifically identified by the agency as being 45.17 attributable to more stringent wastewater standards required to 45.18 protect outstanding resource value waters or outstanding 45.19 international resource value waters. 45.20 (f) The authority shall provide supplemental assistance to 45.21 a municipality that would not otherwise qualify for supplemental 45.22 assistance if: 45.23 (1) the municipality voluntarily accepts a sewer connection 45.24 from another governmental unit to serve residential, industrial, 45.25 or commercial developments that were completed before March 1, 45.26 1996, or are on lots whose plats were recorded before that date; 45.27 and 45.28 (2) fees charged by the municipality for the connection 45.29 must take into account state and federal grants used by the 45.30 municipality for the construction of the treatment plant. 45.31 The amount of supplemental assistance under this paragraph must 45.32 be sufficient to reduce debt service payments under section 45.33 446A.07 to an extent equivalent to a zero percent loan in an 45.34 amount up to the other governmental unit's project costs 45.35 necessary for connection. Eligibility for supplemental 45.36 assistance under this paragraph ends three years after the 46.1 agency certifies that the connection has met the operational 46.2 performance standards established by the agency. 46.3 Sec. 66. Minnesota Statutes 1996, section 462A.05, 46.4 subdivision 14, is amended to read: 46.5 Subd. 14. [REHABILITATION LOANS.] It may agree to 46.6 purchase, make, or otherwise participate in the making, and may 46.7 enter into commitments for the purchase, making, or 46.8 participation in the making, of eligible loans for 46.9 rehabilitation to persons and families of low and moderate 46.10 income, and to owners of existing residential housing for 46.11 occupancy by such persons and families, for the rehabilitation 46.12 of existing residential housing owned by them. The loans may be 46.13 insured or uninsured and may be made with security, or may be 46.14 unsecured, as the agency deems advisable. The loans may be in 46.15 addition to or in combination with long-term eligible mortgage 46.16 loans under subdivision 3. They may be made in amounts 46.17 sufficient to refinance existing indebtedness secured by the 46.18 property, if refinancing is determined by the agency to be 46.19 necessary to permit the owner to meet the owner's housing cost 46.20 without expending an unreasonable portion of the owner's income 46.21 thereon. No loan for rehabilitation shall be made unless the 46.22 agency determines that the loan will be used primarily to make 46.23 the housing more desirable to live in, to increase the market 46.24 value of the housing, for compliance with state, county or 46.25 municipal building, housing maintenance, fire, health or similar 46.26 codes and standards applicable to housing, or to accomplish 46.27 energy conservation related improvements. In unincorporated 46.28 areas and municipalities not having codes and standards, the 46.29 agency may, solely for the purpose of administering the 46.30 provisions of this chapter, establish codes and standards. 46.31 Except for accessibility improvements under this subdivision and 46.32 subdivisions 14a and 24, clause (1), no secured loan for 46.33 rehabilitation of any property shall be made in an amount which, 46.34 with all other existing indebtedness secured by the property, 46.35 would exceed 110 percent of its market value, as determined by 46.36 the agency. No loan under this subdivision shall be denied 47.1 solely because the loan will not be used for placing the 47.2 residential housing in full compliance with all state, county, 47.3 or municipal building, housing maintenance, fire, health, or 47.4 similar codes and standards applicable to housing. 47.5 Rehabilitation loans shall be made only when the agency 47.6 determines that financing is not otherwise available, in whole 47.7 or in part, from private lenders upon equivalent terms and 47.8 conditions. Accessibility rehabilitation loans authorized under 47.9 this subdivision may be made to eligible persons and families 47.10 without limitations relating to the maximum incomes of the 47.11 borrowers if: 47.12 (1) the borrower or a member of the borrower's family 47.13 requires a level of care provided in a hospital, skilled nursing 47.14 facility, or intermediate care facility for persons with mental 47.15 retardation or related conditions; 47.16 (2) home care is appropriate; and 47.17 (3) the improvement will enable the borrower or a member of 47.18 the borrower's family to reside in the housing. 47.19 Sec. 67. Minnesota Statutes 1997 Supplement, section 47.20 462A.05, subdivision 39, is amended to read: 47.21 Subd. 39. [EQUITY TAKE-OUT LOANS.] The agency may make 47.22 equity take-out loans to owners ofsection 8 project-based and47.23section 236federally assisted rental propertyupon which the47.24agency holds a first mortgage. The owner of asection 847.25project-basedfederally assisted rental property must agree to 47.26 participate in thesection 8federal assistance program and 47.27 extend the low-income affordability restrictions on the housing 47.28 for the maximum term of thesection 8federal assistance 47.29 contract.The owner of section 236 rental property must agree47.30to participate in the section 236 interest reduction payments47.31program, to extend any existing low-income affordability47.32restrictions on the housing, and to extend any rental assistance47.33payments for the maximum term permitted under the agreement for47.34rental assistance payments. TheAn equity take-out loan must be 47.35 secured bya subordinate loan on the property and may include47.36additionalappropriate security determined necessary by the 48.1 agency. 48.2 Sec. 68. Minnesota Statutes 1997 Supplement, section 48.3 462A.205, subdivision 1, is amended to read: 48.4 Subdivision 1. [FAMILY STABILIZATION DEMONSTRATION 48.5 PROJECT.] The agency, in consultation with the department of 48.6 human services, may establish a rent assistance for family 48.7 stabilization demonstration project. The purpose of the project 48.8 is to provide rental assistance to families who, at the time of 48.9 initial eligibility for rental assistance under this section, 48.10 were receiving public assistance, and had a caretaker parent 48.11participating in a self-sufficiency programwho was complying 48.12 with the parent's job search support plan or employment plan and 48.13 at least one minor child and to provide rental assistance to 48.14 families who, at the time of initial eligibility for rental 48.15 assistance under this section, were receiving public assistance, 48.16 and had a caretaker parent who had earned income and with at 48.17 least one minor child. The demonstration project is limited to 48.18 counties with high average housing costs. The program must 48.19 offer two options: a voucher option and a project-based voucher 48.20 option. The funds may be distributed on a request for proposal 48.21 basis. 48.22 Sec. 69. Minnesota Statutes 1997 Supplement, section 48.23 462A.205, subdivision 2, is amended to read: 48.24 Subd. 2. [DEFINITIONS.] For the purposes of this section, 48.25 the following terms have the meanings given them. 48.26 (a) "Caretaker parent" means a parent, relative caretaker, 48.27 or minor caretaker as defined by the aid to families with 48.28 dependent children program, sections 256.72 to 256.87, or its 48.29 successor program. 48.30 (b) "County agency" means the agency designated by the 48.31 county board to implement financial assistance for current 48.32 public assistance programs and for the Minnesota family 48.33 investment program statewide. 48.34 (c) "Counties with high average housing costs" means 48.35 counties whose average federal section 8 fair market rents as 48.36 determined by the Department of Housing and Urban Development 49.1 are in the highest one-third of average rents in the state. 49.2 (d) "Designated rental property" is rental property (1) 49.3 that is made available by a self-sufficiency program for use by 49.4 participating families and meets federal section 8 existing 49.5 quality standards, or (2) that has received federal, state, or 49.6 local rental rehabilitation assistance since January 1, 1987, 49.7 and meets federal section 8 existing housing quality standards. 49.8 (e) "Earned income" for a family receiving rental 49.9 assistance under this section means cash or in-kind income 49.10 earned through the receipt of wages, salary, commissions, profit 49.11 from employment activities, net profit from self-employment 49.12 activities, payments made by an employer for regularly accrued 49.13 vacation or sick leave, and any other profit from activity 49.14 earned through effort or labor. 49.15 (f) "Employment and training service provider" means a 49.16 provider as defined in chapter 256J. 49.17 (g) "Employment plan" means a plan as defined in chapter 49.18 256J. 49.19 (h) "Family or participating family" means a family that at 49.20 the time it begins receiving rent assistance has at least one 49.21 member who is a recipient of public assistance, and: 49.22 (1) a family with a caretaker parent who isparticipating49.23in a self-sufficiency programcomplying with the parent's job 49.24 search support plan or employment plan and with at least one 49.25 minor child; 49.26 (2) a family that, at the time it began receiving rent 49.27 assistance under this section, had a caretaker parent 49.28participating in a self-sufficiency programcomplying with the 49.29 parent's job search support plan or employment plan and had at 49.30 least one minor child; 49.31 (3) a family with a caretaker parent who is receiving 49.32 public assistance and has earned income and with at least one 49.33 minor child; or 49.34 (4) a family that, at the time it began receiving rent 49.35 assistance under this section, had a caretaker parent who had 49.36 earned income and at least one minor child. 50.1(g)(i) "Gross family income" for a family receiving rental 50.2 assistance under this section means the gross amount of the 50.3 wages, salaries, social security payments, pensions, workers' 50.4 compensation, reemployment insurance, the cash assistance 50.5 portion of public assistance payments, alimony, and child 50.6 support, and income from assets received by the family. 50.7(h)(j) "Local housing organization" means the agency of 50.8 local government responsible for administering the Department of 50.9 Housing and Urban Development's section 8 existing voucher and 50.10 certificate program or a nonprofit or for-profit organization 50.11 experienced in housing management. 50.12(i)(k) "Public assistance" means aid to families with 50.13 dependent children, or its successor program, family general 50.14 assistance, or its successor program, or family work readiness, 50.15 or its successor program. 50.16(j) "Self-sufficiency program" means a program operated by50.17an employment and training service provider as defined in50.18chapter 256J, an employability program administered by a50.19community action agency, or courses of study at an accredited50.20institution of higher education pursued with at least half-time50.21student status.50.22 Sec. 70. Minnesota Statutes 1997 Supplement, section 50.23 462A.205, subdivision 5, is amended to read: 50.24 Subd. 5. [VOUCHER OPTION.] At least one-half of the 50.25 appropriated funds must be made available for a voucher option. 50.26 Under the voucher option, the Minnesota housing finance agency, 50.27 in consultation with the department of human services, will 50.28 award a number of vouchers toself-sufficiency program50.29administratorsemployment and training service providers for 50.30 participating familiesand to county agencies for participating50.31families with earned income. Families may use the voucher for 50.32 any rental housing that is certified by the local housing 50.33 organization as meeting section 8 existing housing quality 50.34 standards. 50.35 Sec. 71. Minnesota Statutes 1997 Supplement, section 50.36 462A.205, subdivision 6, is amended to read: 51.1 Subd. 6. [PROJECT-BASED VOUCHER OPTION.] A portion of the 51.2 appropriated funds must be made available for a project-based 51.3 voucher option. Under the project-based voucher option, the 51.4 Minnesota housing finance agency, in consultation with the 51.5 department of human services, will award a number of vouchers to 51.6self-sufficiency program administrators and to county51.7agenciesemployment and training service providers for 51.8 participating families who live in designated rental property 51.9 that is certified by a local housing organization as meeting 51.10 section 8 existing housing quality standards. 51.11 Sec. 72. Minnesota Statutes 1997 Supplement, section 51.12 462A.205, subdivision 9, is amended to read: 51.13 Subd. 9. [VOUCHERS FOR FAMILIES WITH A CARETAKER PARENT 51.14 WITH EARNED INCOME.] (a) Applications to provide the rental 51.15 assistance for families with a caretaker parent with earned 51.16 income under either the voucher or project-based option must be 51.17 submitted jointly by a local housing organization anda county51.18agencyan employment and training service provider. The 51.19 application must include a description of how the caretaker 51.20 parent participants will be selected. 51.21 (b)County agenciesEmployment and training service 51.22 providers awarded vouchers must select the caretaker parents 51.23 with earned income whose families will receive the rental 51.24 assistance. Thecounty agencyemployment and training service 51.25 provider must notify the local housing organization and the 51.26 agency if: 51.27 (1) at the time of annual recertification, the caretaker 51.28 parent no longer has earned income and is not in compliance with 51.29 the caretaker parent's employment plan or job search plan; and 51.30 (2) for a period of six months after the annual 51.31 recertification, the caretaker parent has no earned income and 51.32 has failed to comply with the job search support plan or 51.33 employment plan. 51.34 (c) Thecounty agencylocal housing organization must 51.35 provide the caretaker parent who, at the time of annual 51.36 recertification, has no earned income and is not in compliance 52.1 with the job search support plan or employment plan with the 52.2 notice specified in Minnesota Rules, part 4900.3379. Thecounty52.3agencylocal housing organization must send a subsequent notice 52.4 to the caretaker parent, the local housing organization,and the 52.5 Minnesota housing finance agency 60 days before the termination 52.6 of rental assistance. 52.7 (d) If the local housing organization receives notice from 52.8a county agencyan employment and training service provider that 52.9 a caretaker parent whose initial eligibility for rental 52.10 assistance was based on the receipt of earned income no longer 52.11 has earned income and for a period of six months afterthe52.12termination of earned incomethe annual recertification has 52.13 failed to comply with the caretaker parent's job search plan or 52.14 employment plan, the local housing organization must notify the 52.15 property owner that rental assistance may terminate and notify 52.16 the caretaker parent of the termination of rental assistance 52.17 under Minnesota Rules, part 4900.3380. 52.18 (e) Thecounty agencyemployment and training service 52.19 provider awarded vouchers for families with a caretaker parent 52.20 with earned income must comply with the provisions of Minnesota 52.21 Rules, part 4900.3377. 52.22 (f) For families whose initial eligibility for rental 52.23 assistance was based on the receipt of earned income, rental 52.24 assistance must be terminated under any of the following 52.25 conditions: 52.26 (1) the family is evicted from the property for cause; 52.27 (2) the caretaker parent no longer has earned income and, 52.28aftersix months after an annual recertification, is not in 52.29 compliance with the parent's job search or employment plan; 52.30 (3) 30 percent of the family's gross income equals or 52.31 exceeds the amount of the housing costs for two or more 52.32 consecutive months; 52.33 (4) the family has received rental assistance under this 52.34 section for a36-month60-month period; or 52.35 (5) the rental unit no longer meets federal section 8 52.36 existing housing quality standards, the owner refused to make 53.1 necessary repairs or alterations to bring the rental unit into 53.2 compliance within a reasonable time, and the caretaker parent 53.3 refused to relocate to a qualifying unit. 53.4 (g) Ifa county agencyan employment and training service 53.5 provider determines that a caretaker parent no longer has earned 53.6 income and is not in compliance with the parent's job search or 53.7 employment plan, thecounty agencyemployment and training 53.8 service provider must notify the caretaker parent of that 53.9 determination. The notice must be in writing and must explain 53.10 the effect of not having earned income or failing to be in 53.11 compliance with the job search or employment plan will have on 53.12 the rental assistance. The notice must: 53.13 (1) state that rental assistance will end six months after 53.14earned income has endedan annual recertification; 53.15 (2) specify the date the rental assistance will end; 53.16 (3) explain that after the date specified, the caretaker 53.17 parent will be responsible for the total housing costs; 53.18 (4) describe the actions the caretaker parent may take to 53.19 avoid termination of rental assistance; and 53.20 (5) inform the caretaker parent of the caretaker parent's 53.21 responsibility to notify thecounty agencyemployment and 53.22 training service provider if the caretaker parent has earned 53.23 income. 53.24 Sec. 73. Minnesota Statutes 1996, section 462A.21, is 53.25 amended by adding a subdivision to read: 53.26 Subd. 25. [FULL CYCLE HOMEOWNERSHIP.] It may spend money 53.27 for the purposes of the full cycle homeownership services 53.28 program under section 462A.209, and may pay the costs and 53.29 expenses necessary and incidental to the development and 53.30 operation of the program. 53.31 Sec. 74. Minnesota Statutes 1996, section 462A.222, 53.32 subdivision 3, is amended to read: 53.33 Subd. 3. [ALLOCATION PROCEDURE.] (a) Projects will be 53.34 awarded tax credits in three competitive rounds on an annual 53.35 basis. The date for applications for each round must be 53.36 determined by the agency. No allocating agency may award tax 54.1 credits prior to the application dates established by the agency. 54.2 (b) Each allocating agency must meet the requirements of 54.3 section 42(m) of the Internal Revenue Code of 1986, as amended 54.4 through December 31, 1989, for the allocation of tax credits and 54.5 the selection of projects. 54.6 (c) For projects that are eligible for an allocation of 54.7 credits pursuant to section 42(h)(4) of the Internal Revenue 54.8 Code of 1986, as amended, tax credits may only be allocated if 54.9 the project satisfies the requirements of the allocating 54.10 agency's qualified allocation plan. For projects that are 54.11 eligible for an allocation of credits pursuant to section 54.12 42(h)(4) of the Internal Revenue Code of 1986, as amended, for 54.13 which the agency is the issuer of the bonds for the project, or 54.14 the issuer of the bonds for the project is located outside the 54.15 jurisdiction of a city or county that has received reserved tax 54.16 credits, the applicable allocation plan is the agency's 54.17 qualified allocation plan. 54.18 (d) For applications submitted for the first round, an 54.19 allocating agency may allocate tax credits only to the following 54.20 types of projects: 54.21 (1) in the metropolitan area: 54.22 (i) new construction or substantial rehabilitation of 54.23 projects in which, for the term of the extended use period, at 54.24 least 75 percent of the total tax credit units are single-room 54.25 occupancy, efficiency, or one bedroom units and which are 54.26 affordable by households whose income does not exceed 30 percent 54.27 of the median income; 54.28 (ii) new construction or substantial rehabilitation family 54.29 housing projects that are not restricted to persons who are 55 54.30 years of age or older and in which, for the term of the extended 54.31 use period, at least 75 percent of the tax credit units contain 54.32 two or more bedrooms and at least one-third of the 75 percent 54.33 contain three or more bedrooms; or 54.34 (iii) substantial rehabilitation projects in neighborhoods 54.35 targeted by the city for revitalization; 54.36 (2) outside the metropolitan area, projects which meet a 55.1 locally identified housing need and which are in short supply in 55.2 the local housing market as evidenced by credible data submitted 55.3 with the application; 55.4 (3) projects that are not restricted to persons of a 55.5 particular age group and in which, for the term of the extended 55.6 use period, a percentage of the units are set aside and rented 55.7 to persons: 55.8 (i) with a serious and persistent mental illness as defined 55.9 in section 245.462, subdivision 20, paragraph (c); 55.10 (ii) with a developmental disability as defined in United 55.11 States Code, title 42, section 6001, paragraph (5), as amended 55.12 through December 31, 1990; 55.13 (iii) who have been assessed as drug dependent persons as 55.14 defined in section 254A.02, subdivision 5, and are receiving or 55.15 will receive care and treatment services provided by an approved 55.16 treatment program as defined in section 254A.02, subdivision 2; 55.17 (iv) with a brain injury as defined in section 256B.093, 55.18 subdivision 4, paragraph (a); or 55.19 (v) with permanent physical disabilities that substantially 55.20 limit one or more major life activities, if at least 50 percent 55.21 of the units in the project are accessible as provided under 55.22 Minnesota Rules, chapter 1340; 55.23 (4) projects, whether or not restricted to persons of a 55.24 particular age group, which preserve existing subsidized housing 55.25which is subject to prepaymentif the use of tax credits is 55.26 necessary to prevent conversion to market rate use; or 55.27 (5) projects financed by the Farmers Home Administration, 55.28 or its successor agency, which meet statewide distribution goals. 55.29 (e) Before the date for applications for the second round, 55.30 the allocating agencies other than the agency shall return all 55.31 uncommitted and unallocated tax credits to the pool from which 55.32 they were allocated, along with copies of any allocation or 55.33 commitment. In the second round, the agency shall allocate the 55.34 remaining credits from the regional pools to projects from the 55.35 respective regions. 55.36 (f) In the third round, all unallocated tax credits must be 56.1 transferred to a unified pool for allocation by the agency on a 56.2 statewide basis. 56.3 (g) Unused portions of the state ceiling for low-income 56.4 housing tax credits reserved to cities and counties for 56.5 allocation may be returned at any time to the agency for 56.6 allocation. 56.7 (h) If an allocating agency determines, at any time after 56.8 the initial commitment or allocation for a specific project, 56.9 that a project is no longer eligible for all or a portion of the 56.10 low-income housing tax credits committed or allocated to the 56.11 project, the credits must be transferred to the agency to be 56.12 reallocated pursuant to the procedures established in paragraphs 56.13 (e) to (g); provided that if the tax credits for which the 56.14 project is no longer eligible are from the current year's annual 56.15 ceiling and the allocating agency maintains a waiting list, the 56.16 allocating agency may continue to commit or allocate the credits 56.17 until not later than October 1, at which time any uncommitted 56.18 credits must be transferred to the agency. 56.19 Sec. 75. Minnesota Statutes 1996, section 469.303, is 56.20 amended to read: 56.21 469.303 [ELIGIBILITY REQUIREMENTS.] 56.22 An area within the city is eligible for designation as an 56.23 enterprise zone if the area (1) includes census tracts eligible 56.24 for a federal empowerment zone or enterprise community as 56.25 defined by the United States Department of Housing and Urban 56.26 Development under Public Law Number 103-66, notwithstanding the 56.27 maximum zone population standard under the federal empowerment 56.28 zone program for cities with a population under 500,000or, (2) 56.29 is an area within a city of the second class that is designated 56.30 as an economically depressed area by the United States 56.31 Department of Commerce, or (3) includes property located in St. 56.32 Paul in a transit zone as defined in section 473.3915, 56.33 subdivision 3. 56.34 Sec. 76. [471.9997] [FEDERALLY ASSISTED RENTAL HOUSING; 56.35 IMPACT STATEMENT.] 56.36 At least 12 months before termination of participation in a 57.1 federally assisted rental housing program, including 57.2 project-based section 8 and section 236 rental housing, the 57.3 owner of the federally assisted rental housing must submit a 57.4 statement regarding the impact of termination on the residents 57.5 of the rental housing to the governing body of the local 57.6 government unit in which the housing is located. The impact 57.7 statement must identify the number of units that will no longer 57.8 be subject to rent restrictions imposed by the federal program, 57.9 the estimated rents that will be charged as compared to rents 57.10 charged under the federal program, and actions the owner will 57.11 take to assist displaced tenants in obtaining other housing. A 57.12 copy of the impact statement must be provided to each resident 57.13 of the affected building, the Minnesota housing finance agency, 57.14 and, if the property is located in the metropolitan area as 57.15 defined in section 473.121, subdivision 2, the metropolitan 57.16 council. 57.17 Sec. 77. Minnesota Statutes 1996, section 474A.061, 57.18 subdivision 2a, is amended to read: 57.19 Subd. 2a. [HOUSING POOL ALLOCATION.] (a) On the first 57.20 business day that falls on a Monday of the calendar year and the 57.21 first Monday in February, the commissioner shall allocate 57.22 available bonding authority in the housing pool to applications 57.23 received by the Monday of the previous week for residential 57.24 rental projects that are not restricted to persons who are 55 57.25 years of age or older and that meet the eligibility criteria 57.26 under section 474A.047, except that allocations may be made to 57.27 projects that are restricted to persons who are 55 years of age 57.28 or older if the project preserves existing federally assisted 57.29 rental housing. Projects that preserve existing federally 57.30 assisted rental housing shall be allocated available bonding 57.31 authority in the housing pool prior to the allocation of 57.32 available bonding authority to other eligible residential rental 57.33 projects. If an issuer that receives an allocation under this 57.34 paragraph does not issue obligations equal to all or a portion 57.35 of the allocation received within 120 days of the allocation or 57.36 returns the allocation to the commissioner, the amount of the 58.1 allocation is canceled and returned for reallocation through the 58.2 housing pool. 58.3 (b) After February 1, and through February 15, the 58.4 Minnesota housing finance agency may accept applications from 58.5 cities for single-family housing programs which meet program 58.6 requirements as follows: 58.7 (1) the housing program must meet a locally identified 58.8 housing need and be economically viable; 58.9 (2) the adjusted income of home buyers may not exceed the 58.10 greater of the agency's income limits or 80 percent of the area 58.11 median income as published by the Department of Housing and 58.12 Urban Development; 58.13 (3) house price limits may not exceed: 58.14 (i) the greater of agency house price limits or the federal 58.15 price limits for housing up to a maximum of $95,000; or 58.16 (ii) for a new construction affordability initiative, the 58.17 greater of 115 percent of agency house price limits or 90 58.18 percent of the median purchase price in the city for which the 58.19 bonds are to be sold up to a maximum of $95,000. 58.20 Data establishing the median purchase price in the city 58.21 must be included in the application by a city requesting house 58.22 price limits higher than the housing finance agency's house 58.23 price limits; and 58.24 (4) an application deposit equal to one percent of the 58.25 requested allocation must be submitted before the agency 58.26 forwards the list specifying the amounts allocated to the 58.27 commissioner under paragraph (c). The agency shall submit the 58.28 city's application and application deposit to the commissioner 58.29 when requesting an allocation from the housing pool. 58.30 Applications by a consortium shall include the name of each 58.31 member of the consortium and the amount of allocation requested 58.32 by each member. 58.33 The Minnesota housing finance agency may accept 58.34 applications from June 15 through June 30 from cities for 58.35 single-family housing programs which meet program requirements 58.36 specified under clauses (1) to (4) if bonding authority is 59.1 available in the housing pool. The agency must allot available 59.2 bonding authority. For purposes of paragraphs (a) to (g), 59.3 "city" means a county or a consortium of local government units 59.4 that agree through a joint powers agreement to apply together 59.5 for single-family housing programs, and has the meaning given it 59.6 in section 462C.02, subdivision 6. "Agency" means the Minnesota 59.7 housing finance agency. 59.8 (c) The total amount of allocation for mortgage bonds for 59.9 one city is limited to the lesser of: (i) the amount requested, 59.10 or (ii) the product of the total amount available for mortgage 59.11 bonds from the housing pool, multiplied by the ratio of each 59.12 applicant's population as determined by the most recent estimate 59.13 of the city's population released by the state demographer's 59.14 office to the total of all the applicants' population, except 59.15 that each applicant shall be allocated a minimum of $100,000 59.16 regardless of the amount requested or the amount determined 59.17 under the formula in clause (ii). If a city applying for an 59.18 allocation is located within a county that has also applied for 59.19 an allocation, the city's population will be deducted from the 59.20 county's population in calculating the amount of allocations 59.21 under this paragraph. 59.22 Upon determining the amount of each applicant's allocation, 59.23 the agency shall forward a list specifying the amounts allotted 59.24 to each application and application deposit checks to the 59.25 commissioner. 59.26 (d) The agency may issue bonds on behalf of participating 59.27 cities. The agency shall request an allocation from the 59.28 commissioner for all applicants who choose to have the agency 59.29 issue bonds on their behalf and the commissioner shall allocate 59.30 the requested amount to the agency. The agency may request an 59.31 allocation at any time after the first Monday in February and 59.32 through the last Monday in July, but may request an allocation 59.33 no later than the last Monday in July. The commissioner shall 59.34 return any application deposit to a city that paid an 59.35 application deposit under paragraph (b), clause (4), but was not 59.36 part of the list forwarded to the commissioner under paragraph 60.1 (c). 60.2 (e) A city may choose to issue bonds on its own behalf or 60.3 through a joint powers agreement or may use bonding authority 60.4 for mortgage credit certificates and may request an allocation 60.5 from the commissioner. If the total amount requested by all 60.6 applicants exceeds the amount available in the pool, the city 60.7 may not receive a greater allocation than the amount it would 60.8 have received under the list forwarded by the Minnesota housing 60.9 finance agency to the commissioner. No city may request or 60.10 receive an allocation from the commissioner until the list under 60.11 paragraph (c) has been forwarded to the commissioner. A city 60.12 must request an allocation from the commissioner no later than 60.13 14 days before the unified pool is created pursuant to section 60.14 474A.091, subdivision 1. On and after the first Monday in 60.15 February and through the last Monday in July, no city may 60.16 receive an allocation from the housing pool which has not first 60.17 applied to the Minnesota housing finance agency. The 60.18 commissioner shall allocate the requested amount to the city or 60.19 cities subject to the limitations under this paragraph. 60.20 If a city issues mortgage bonds from an allocation received 60.21 under this paragraph, the issuer must provide for the recycling 60.22 of funds into new loans. If the issuer is not able to provide 60.23 for recycling, the issuer must notify the commissioner in 60.24 writing of the reason that recycling was not possible and the 60.25 reason the issuer elected not to have the Minnesota housing 60.26 finance agency issue the bonds. "Recycling" means the use of 60.27 money generated from the repayment and prepayment of loans for 60.28 further eligible loans or for the redemption of bonds and the 60.29 issuance of current refunding bonds. 60.30 (f) No entitlement city or county or city in an entitlement 60.31 county may apply for or be allocated authority to issue bonds or 60.32 use mortgage credit certificates from the housing pool. 60.33 (g) A city that does not use at least 50 percent of their 60.34 allotment by the date applications are due for the first 60.35 allocation that is made from the housing pool for single-family 60.36 housing programs in the immediately succeeding calendar year may 61.1 not apply to the housing pool for a single-family mortgage bond 61.2 or mortgage credit certificate program allocation or receive an 61.3 allotment from the housing pool in the succeeding two calendar 61.4 years. Each local government unit in a consortium must meet the 61.5 requirements of this paragraph. 61.6 Sec. 78. Minnesota Statutes 1996, section 541.051, 61.7 subdivision 1, is amended to read: 61.8 Subdivision 1. (a) Except where fraud is involved, no 61.9 action by any person in contract, tort, or otherwise to recover 61.10 damages for any injury to property, real or personal, or for 61.11 bodily injury or wrongful death, arising out of the defective 61.12 and unsafe condition of an improvement to real property, nor any 61.13 action for contribution or indemnity for damages sustained on 61.14 account of the injury, shall be brought against any person 61.15 performing or furnishing the design, planning, supervision, 61.16 materials, or observation of construction or construction of the 61.17 improvement to real property or against the owner of the real 61.18 property more thantwothree years after discovery of the injury 61.19 or, in the case of an action for contribution or indemnity, 61.20 accrual of the cause of action, nor, in any event shall such a 61.21 cause of action accrue more than ten years after substantial 61.22 completion of the construction. Date of substantial completion 61.23 shall be determined by the date when construction is 61.24 sufficiently completed so that the owner or the owner's 61.25 representative can occupy or use the improvement for the 61.26 intended purpose. 61.27 (b) For purposes of paragraph (a), a cause of action 61.28 accrues upon discovery of the injury or, in the case of an 61.29 action for contribution or indemnity, upon payment of a final 61.30 judgment, arbitration award, or settlement arising out of the 61.31 defective and unsafe condition. 61.32 (c) Nothing in this section shall apply to actions for 61.33 damages resulting from negligence in the maintenance, operation 61.34 or inspection of the real property improvement against the owner 61.35 or other person in possession. 61.36 (d) The limitations prescribed in this section do not apply 62.1 to the manufacturer or supplier of any equipment or machinery 62.2 installed upon real property. 62.3 Sec. 79. Minnesota Statutes 1996, section 541.051, 62.4 subdivision 4, is amended to read: 62.5 Subd. 4. This section shall not apply to actions based on 62.6 breach of the statutory warranties set forth in section 327A.02, 62.7 or to actions based on breach of an express written warranty, 62.8 provided such actions shall be brought withintwothree years of 62.9 the discovery of the breach. 62.10 Sec. 80. Laws 1997, chapter 200, article 1, section 12, 62.11 subdivision 2, is amended to read: 62.12 Subd. 2. Workers' Compensation 62.1312,152,00012,202,00012,160,00012,110,000 62.14 This appropriation is from the workers' 62.15 compensation fund. 62.16 $125,000 the first year and $125,000 62.17 the second year is for grants to the 62.18 Vinland Center for rehabilitation 62.19 service. 62.20 Notwithstanding Minnesota Statutes, 62.21 section 79.253, the following 62.22 appropriations are made from the 62.23 assigned risk safety account in the 62.24 special compensation fund to the 62.25 commissioner of labor and industry: 62.26 (a) $77,000 the first year and $73,000 62.27 in the second year are for the purpose 62.28 of hiring one occupational safety and 62.29 health inspector. The inspector shall 62.30 perform safety consultations for 62.31 employers through labor-management 62.32 committees as defined in Minnesota 62.33 Statutes, section 179.81, subdivision 62.34 2, under an interagency agreement 62.35 entered into between the commissioners 62.36 of labor and industry and mediation 62.37 services. 62.38 (b) $95,000 the first year and $75,000 62.39 the second year are for the purpose of 62.40 providing information to employers 62.41 regarding the prevention of violence in 62.42 the workplace. 62.43 (c) $25,000 the first year and $25,000 62.44 the second year are for the purpose of 62.45 safety training and other safety 62.46 programs for youth apprentices. 62.47 Sec. 81. Laws 1997, chapter 200, article 1, section 33, 62.48 subdivision 1, is amended to read: 62.49 Subdivision 1. [STUDY.]The commissioners of trade and63.1economic development, labor and industry, and economic63.2securityThe governor's workforce development council shall 63.3 conduct ajointstudy of job-training programs funded wholly or 63.4 partly withstatepublic funds.The commissionersThe 63.5 governor's workforce development council must report annually to 63.6 the governor and legislature on the development of the studyby63.7January 15, 1998, and make a final report on the study by63.8January 15, 1998. 63.9 Sec. 82. Laws 1997, chapter 200, article 1, section 33, is 63.10 amended by adding a subdivision to read: 63.11 Subd. 4. [WAGE RATE STUDY.] The governor's workforce 63.12 development council must identify for each job-training program 63.13 studied: 63.14 (1) the number and proportion of placement jobs paying at 63.15 least 120 percent of the federal poverty level initially; 63.16 (2) the number and proportion of placement jobs paying at 63.17 least 150 percent of the federal poverty level initially; 63.18 (3) the number and proportion of individuals who were 63.19 employed two years after successful program completion; and 63.20 (4) the number and proportion of individuals who were 63.21 employed five years after successful program completion. 63.22 Sec. 83. Laws 1997, chapter 200, article 1, section 33, is 63.23 amended by adding a subdivision to read: 63.24 Subd. 5. [BREAKDOWN OF INFORMATION.] For each program 63.25 included in the job-training study, the governor's workforce 63.26 development council shall report the information required by 63.27 this section for each of the following groups: men, women, 63.28 Blacks, Native Americans, Hispanics, Asians, persons with 63.29 disabilities, persons under 25, persons between 25 and 45, 63.30 persons over 45, and persons receiving MFIP-S employment and 63.31 training and food stamp employment and training (FSET). 63.32 Sec. 84. Laws 1997, chapter 200, article 1, section 33, is 63.33 amended by adding a subdivision to read: 63.34 Subd. 6. [COLLECTION OF INFORMATION.] All training 63.35 programs being studied by the governor's workforce development 63.36 council are to collect demographic information in accordance 64.1 with subdivision 5, and are to make available to the Minnesota 64.2 department of economic security the social security numbers of 64.3 the programs' participants for the purpose of tracking wages and 64.4 job retention for two-year and five-year periods following 64.5 program completion. The social security numbers will be used 64.6 according to federal law. 64.7 Sec. 85. Laws 1997, Second Special Session chapter 2, 64.8 section 4, subdivision 3, is amended to read: 64.9 Subd. 3. Community Rehabilitation 64.10 Fund Program 4,500,000 64.11 This is a one-time appropriation from 64.12 the general fund for the community 64.13 rehabilitation fund program under 64.14 Minnesota Statutes, section 462A.206. 64.15 Of this amount, up to $500,000 is 64.16 available for grants for damages 64.17 occurring after June 10, 1997, in an 64.18 area designated under a presidential 64.19 declaration of major 64.20 disaster. Pursuant to a plan approved 64.21 by the agency, grants or loans may be 64.22 made without regard to the income of 64.23 the borrower in communities where at 64.24 least 20 percent of the housing stock 64.25 is subject to acquisition and buyout as 64.26 a result of the 1997 flooding. The 64.27 grants or loans made without regard to 64.28 the borrower's income shall not exceed 64.29 the maximum grant or loan amount 64.30 available to buyout households. This 64.31 appropriation is available until 64.32 expended. 64.33 Sec. 86. [LOCAL APPROVAL; EFFECTIVE DATE.] 64.34 Section 26 is effective the day after the latter of the 64.35 town of Wyoming and the city of Chisago City complies with 64.36 Minnesota Statutes, section 645.021, subdivision 3. 64.37 Sections 62 and 63 are effective the day after the Hennepin 64.38 county board complies with Minnesota Statutes, section 645.021, 64.39 subdivision 3. 64.40 Sec. 87. [REPEALER.] 64.41 (a) Minnesota Statutes 1997 Supplement, section 446A.072, 64.42 subdivision 4a, is repealed. 64.43 (b) Laws 1991, chapter 275, section 3, is repealed. 64.44 Sec. 88. [EFFECTIVE DATE.] 64.45 Sections 19, 23, 25, 31, 32, subdivision 1, 36, 38, 39, 41, 64.46 42, 64, 65, 67, 75, 81 to 85, 87, paragraph (a), and all 64.47 provisions making appropriations for fiscal year 1998, are 65.1 effective the day following final enactment. 65.2 Section 24 is effective the day following final enactment 65.3 and applies in the counties of Anoka, Carver, Dakota, Hennepin, 65.4 Ramsey, Scott, and Washington. 65.5 Section 28 is effective May 1, 1998. 65.6 Section 47 is effective retroactive to July 1, 1997. 65.7 Sections 49 and 61 are effective January 1, 1999. 65.8 Section 52 is effective August 1, 1998. 65.9 Sections 55 to 59, 78, and 79 are effective for housing 65.10 warranties that take effect on or after June 1, 1999. 65.11 ARTICLE 2 65.12 UNCLAIMED PROPERTY 65.13 Section 1. [345.61] [DEFINITIONS.] 65.14 Subdivision 1. [SCOPE.] For the purposes of sections 65.15 345.61 to 345.90, the terms defined in this section have the 65.16 meanings given them. 65.17 Subd. 2. [ADMINISTRATOR.] "Administrator" means the 65.18 commissioner of commerce. 65.19 Subd. 3. [APPARENT OWNER.] "Apparent owner" means a person 65.20 whose name appears on the records of a holder as the person 65.21 entitled to property held, issued, or owing by the holder. 65.22 Subd. 4. [BUSINESS ASSOCIATION.] "Business association" 65.23 means a corporation, joint stock company, investment company, 65.24 partnership, unincorporated association, joint venture, limited 65.25 liability company, business trust, trust company, safe deposit 65.26 company, financial organization, insurance company, mutual fund, 65.27 utility, or other business entity consisting of one or more 65.28 persons, whether or not for profit. 65.29 Subd. 5. [DOMICILE.] "Domicile" means the state of 65.30 incorporation of a corporation and the state of the principal 65.31 place of business of a holder other than a corporation. 65.32 Subd. 6. [FINANCIAL ORGANIZATION.] "Financial organization" 65.33 means a savings association; savings bank or industrial loan and 65.34 thrift company; banking organization; or credit union. 65.35 Subd. 7. [HOLDER.] "Holder" means a person obligated to 65.36 hold for the account of, or deliver or pay to, the owner 66.1 property that is subject to sections 345.61 to 345.90. 66.2 Subd. 8. [INSURANCE COMPANY.] "Insurance company" means an 66.3 association, corporation, or fraternal or mutual benefit 66.4 organization, whether or not for profit, engaged in the business 66.5 of providing life endowments, annuities, or insurance, including 66.6 accident, burial, casualty, credit life, contract performance, 66.7 dental, disability, fidelity, fire, health, hospitalization, 66.8 illness, life, malpractice, marine, mortgage, surety, wage 66.9 protection, and workers' compensation insurance. 66.10 Subd. 9. [MINERAL.] "Mineral" means gas; oil; coal; other 66.11 gaseous, liquid, and solid hydrocarbons; oil shale; cement 66.12 material; sand and gravel; road material; building stone; 66.13 chemical raw material; gemstone; fissionable and nonfissionable 66.14 ores; colloidal and other clay; steam and other geothermal 66.15 resource; or any other substance defined as a mineral by the law 66.16 of this state. 66.17 Subd. 10. [MINERAL PROCEEDS.] "Mineral proceeds" means 66.18 amounts payable for the extraction, production, or sale of 66.19 minerals, or, upon the abandonment of those payments, all 66.20 payments that become payable thereafter. The term includes 66.21 amounts payable: 66.22 (1) for the acquisition and retention of a mineral lease, 66.23 including bonuses, royalties, compensatory royalties, shut-in 66.24 royalties, minimum royalties, and delay rentals; 66.25 (2) for the extraction, production, or sale of minerals, 66.26 including net revenue interests, royalties, overriding 66.27 royalties, extraction payments, and production payments; and 66.28 (3) under an agreement or option, including a joint 66.29 operating agreement, unit agreement, pooling agreement, and 66.30 farm-out agreement. 66.31 Subd. 11. [MONEY ORDER.] "Money order" includes an express 66.32 money order and a personal money order, on which the remitter is 66.33 the purchaser. The term does not include a bank money order or 66.34 any other instrument sold by a financial organization if the 66.35 seller has obtained the name and address of the payee. 66.36 Subd. 12. [OWNER.] "Owner" means a person who has a legal 67.1 or equitable interest in property subject to sections 345.61 to 67.2 345.90 or the person's legal representative. The term includes 67.3 a depositor in the case of a deposit, a beneficiary in the case 67.4 of a trust other than a deposit in trust, and a creditor, 67.5 claimant, or payee in the case of other property. 67.6 Subd. 13. [PERSON.] "Person" means an individual, business 67.7 association, financial organization, estate, trust, government, 67.8 governmental subdivision, agency, or instrumentality, or any 67.9 other legal or commercial entity. 67.10 Subd. 14. [PROPERTY.] (a) "Property" means tangible 67.11 property described in section 345.63 or a fixed and certain 67.12 interest in intangible property that is held, issued, or owed in 67.13 the course of a holder's business, or by a government, 67.14 governmental subdivision, agency, or instrumentality, and all 67.15 income or increments therefrom. The term includes property that 67.16 is referred to as or evidenced by: 67.17 (1) money, a check, draft, deposit, interest, or dividend; 67.18 (2) credit balance, customer's overpayment, gift 67.19 certificate, security deposit, refund, credit memorandum, unpaid 67.20 wage, unused ticket, mineral proceeds, or unidentified 67.21 remittance; 67.22 (3) stock or other evidence of ownership of an interest in 67.23 a business association or financial organization; 67.24 (4) a bond, debenture, note, or other evidence of 67.25 indebtedness; 67.26 (5) money deposited to redeem stocks, bonds, coupons, or 67.27 other securities or to make distributions; 67.28 (6) an amount due and payable under the terms of an annuity 67.29 or insurance policy, including policies providing life 67.30 insurance, property and casualty insurance, workers' 67.31 compensation insurance, or health and disability insurance; and 67.32 (7) an amount distributable from a trust or custodial fund 67.33 established under a plan to provide health, welfare, pension, 67.34 vacation, severance, retirement, death, stock purchase, profit 67.35 sharing, employee savings, supplemental unemployment insurance, 67.36 or similar benefits. 68.1 (b) The term "property" does not include: 68.2 (1) assets of any plan governed under the federal Employee 68.3 Retirement Income Security Act of 1974 (ERISA), United States 68.4 Code, title 29, sections 1001 to 1461; and 68.5 (2) gift certificates: 68.6 (i) with a value of $50 or less; 68.7 (ii) redeemable at a holder that has issued less than 68.8 $15,000 in gift certificates during the preceding calendar year; 68.9 (iii) purchased for resale; or 68.10 (iv) purchased for fundraising purposes by a charitable or 68.11 educational organization. 68.12 Subd. 15. [RECORD.] "Record" means information that is 68.13 inscribed on a tangible medium or that is stored in an 68.14 electronic or other medium and is retrievable in perceivable 68.15 form. 68.16 Subd. 16. [STATE.] "State" means a state of the United 68.17 States, the District of Columbia, the Commonwealth of Puerto 68.18 Rico, or any territory or insular possession subject to the 68.19 jurisdiction of the United States. 68.20 Subd. 17. [UTILITY.] "Utility" means any person who owns 68.21 or operates within this state, for public use, any plant, 68.22 equipment, property, franchise, or license for the transmission 68.23 of communications or the production, storage, transmission, 68.24 sale, delivery, or furnishing of electricity, water, steam, or 68.25 gas. 68.26 Sec. 2. [345.62] [PRESUMPTIONS OF ABANDONMENT.] 68.27 (a) Property is presumed abandoned if it is unclaimed by 68.28 the apparent owner during the time set forth below for the 68.29 particular property: 68.30 (1) traveler's check, 15 years after issuance; 68.31 (2) money order, seven years after issuance; 68.32 (3) stock or other equity interest in a business 68.33 association or financial organization, including a security 68.34 entitlement under the Uniform Commercial Code - Investment 68.35 Securities, three years after the earlier of (i) the date of the 68.36 most recent dividend, stock split, or other distribution 69.1 unclaimed by the apparent owner, or (ii) the date of the second 69.2 mailing of a statement of account or other notification or 69.3 communication that was returned as undeliverable or after the 69.4 holder discontinued mailings, notifications, or communications 69.5 to the apparent owner; 69.6 (4) debt of a business association or financial 69.7 organization, other than a bearer bond or an original issue 69.8 discount bond, three years after the date of the most recent 69.9 interest payment unclaimed by the apparent owner; 69.10 (5) a demand, savings, or time deposit, including a deposit 69.11 that is automatically renewable, three years after the earlier 69.12 of maturity or the date of the last indication by the owner of 69.13 interest in the property; but a deposit that is automatically 69.14 renewable is deemed matured for purposes of this section upon 69.15 its initial date of maturity, unless the owner has consented to 69.16 a renewal at or about the time of the renewal and the consent is 69.17 in writing or is evidenced by a memorandum or other record on 69.18 file with the holder; 69.19 (6) money or credits owed to a customer as a result of a 69.20 retail business transaction, three years after the obligation 69.21 accrued; 69.22 (7) gift certificate, three years after December 31 of the 69.23 year in which the certificate was sold, but if redeemable in 69.24 merchandise only, the amount abandoned is deemed to be 60 69.25 percent of the certificate's face value; 69.26 (8) amount owed by an insurer on a life or endowment 69.27 insurance policy or an annuity that has matured or terminated, 69.28 three years after the obligation to pay arose or, in the case of 69.29 a policy or annuity payable upon proof of death, three years 69.30 after the insured has attained, or would have attained if 69.31 living, the limiting age under the mortality table on which the 69.32 reserve is based; 69.33 (9) property distributable by a business association or 69.34 financial organization in a course of dissolution, one year 69.35 after the property becomes distributable; 69.36 (10) property received by a court as proceeds of a class 70.1 action, and not distributed pursuant to the judgment, one year 70.2 after the distribution date; 70.3 (11) property held by a court, government, governmental 70.4 subdivision, agency, or instrumentality, one year after the 70.5 property becomes distributable; 70.6 (12) wages or other compensation for personal services, one 70.7 year after the compensation becomes payable; 70.8 (13) deposit or refund owed to a subscriber by a utility, 70.9 one year after the deposit or refund becomes payable; 70.10 (14) property in an individual retirement account, defined 70.11 benefit plan, or other account or plan that is qualified for tax 70.12 deferral under the income tax laws of the United States, three 70.13 years after the earliest of the date of the distribution or 70.14 attempted distribution of the property, the date of the required 70.15 distribution as stated in the plan or trust agreement governing 70.16 the plan, or the date, if determinable by the holder, specified 70.17 in the income tax laws of the United States by which 70.18 distribution of the property must begin in order to avoid a tax 70.19 penalty; and 70.20 (15) all other property, three years after the owner's 70.21 right to demand the property or after the obligation to pay or 70.22 distribute the property arises, whichever first occurs. 70.23 (b) At the time that an interest is presumed abandoned 70.24 under paragraph (a), any other property right accrued or 70.25 accruing to the owner as a result of the interest, and not 70.26 previously presumed abandoned, is also presumed abandoned. 70.27 (c) Property is unclaimed if, for the applicable period set 70.28 forth in paragraph (a), the apparent owner has not communicated 70.29 in writing or by other means reflected in a contemporaneous 70.30 record prepared by or on behalf of the holder, with the holder 70.31 concerning the property or the account in which the property is 70.32 held, and has not otherwise indicated an interest in the 70.33 property. A communication with an owner by a person other than 70.34 the holder or its representative who has not in writing 70.35 identified the property to the owner is not an indication of 70.36 interest in the property by the owner. 71.1 (d) An indication of an owner's interest in property 71.2 includes: 71.3 (1) the presentment of a check or other instrument of 71.4 payment of a dividend or other distribution made with respect to 71.5 an account or underlying stock or other interest in a business 71.6 association or financial organization or, in the case of a 71.7 distribution made by electronic or similar means, evidence that 71.8 the distribution has been received; 71.9 (2) owner-directed activity in the account in which the 71.10 property is held, including a direction by the owner to 71.11 increase, decrease, or change the amount or type of property 71.12 held in the account; 71.13 (3) the making of a deposit to or withdrawal from a bank 71.14 account; and 71.15 (4) the payment of a premium with respect to a property 71.16 interest in an insurance policy; but the application of an 71.17 automatic premium loan provision or other nonforfeiture 71.18 provision contained in an insurance policy does not prevent a 71.19 policy from maturing or terminating if the insured has died or 71.20 the insured or the beneficiary of the policy has otherwise 71.21 become entitled to the proceeds before the depletion of the cash 71.22 surrender value of a policy by the application of those 71.23 provisions. 71.24 (e) Property is payable or distributable for purposes of 71.25 sections 345.61 to 345.90 notwithstanding the owner's failure to 71.26 make demand or present an instrument or document otherwise 71.27 required to obtain payment. 71.28 Sec. 3. [345.63] [CONTENTS OF SAFE DEPOSIT BOX OR OTHER 71.29 SAFEKEEPING DEPOSITORY.] 71.30 Tangible property held in a safe deposit box or other 71.31 safekeeping depository in this state in the ordinary course of 71.32 the holder's business and proceeds resulting from the sale of 71.33 the property permitted by other law are presumed abandoned if 71.34 the property remains unclaimed by the owner for more than five 71.35 years after expiration of the lease or rental period on the box 71.36 or other depository. 72.1 Sec. 4. [345.64] [RULES FOR TAKING CUSTODY.] 72.2 Except as otherwise provided in sections 345.61 to 345.90 72.3 or by other statute of this state, property that is presumed 72.4 abandoned, whether located in this or another state, is subject 72.5 to the custody of this state if: 72.6 (1) the last known address of the apparent owner, as shown 72.7 on the records of the holder, is in this state; 72.8 (2) the records of the holder do not reflect the identity 72.9 of the person entitled to the property and it is established 72.10 that the last known address of the person entitled to the 72.11 property is in this state; 72.12 (3) the records of the holder do not reflect the last known 72.13 address of the apparent owner and it is established that: 72.14 (i) the last known address of the person entitled to the 72.15 property is in this state; or 72.16 (ii) the holder is domiciled in this state or is a 72.17 government or governmental subdivision, agency, or 72.18 instrumentality of this state and has not previously paid or 72.19 delivered the property to the state of the last known address of 72.20 the apparent owner or other person entitled to the property; 72.21 (4) the last known address of the apparent owner, as shown 72.22 on the records of the holder, is in a state that does not 72.23 provide for the escheat or custodial taking of the property and 72.24 the holder is domiciled in this state or is a government or 72.25 governmental subdivision, agency, or instrumentality of this 72.26 state; 72.27 (5) the last known address of the apparent owner, as shown 72.28 on the records of the holder, is in a foreign country and the 72.29 holder is domiciled in this state or is a government or 72.30 governmental subdivision, agency, or instrumentality of this 72.31 state; 72.32 (6) the transaction out of which the property arose 72.33 occurred in this state, the holder is domiciled in a state that 72.34 does not provide for the escheat or custodial taking of the 72.35 property, and the last known address of the apparent owner or 72.36 other person entitled to the property is unknown or is in a 73.1 state that does not provide for the escheat or custodial taking 73.2 of the property; or 73.3 (7) the property is a traveler's check or money order 73.4 purchased in this state, or the issuer of the traveler's check 73.5 or money order has its principal place of business in this state 73.6 and the issuer's records show that the instrument was purchased 73.7 in a state that does not provide for the escheat or custodial 73.8 taking of the property, or do not show the state in which the 73.9 instrument was purchased. 73.10 Sec. 5. [345.65] [DORMANCY CHARGE.] 73.11 A holder may deduct from property presumed abandoned a 73.12 charge imposed by reason of the owner's failure to claim the 73.13 property within a specified time only if there is a valid and 73.14 enforceable written contract between the holder and the owner 73.15 under which the holder may impose the charge and the holder 73.16 regularly imposes the charge, which is not regularly reversed or 73.17 otherwise canceled. The total amount of the deduction must not 73.18 exceed $30. In the case of traveler's checks, any service 73.19 charge shall be by contract, and may be deducted for a period 73.20 not to exceed one year. 73.21 Sec. 6. [345.66] [BURDEN OF PROOF AS TO PROPERTY EVIDENCED 73.22 BY RECORD OF CHECK OR DRAFT.] 73.23 A record of the issuance of a check, draft, or similar 73.24 instrument is prima facie evidence of an obligation. In 73.25 claiming property from a holder who is also the issuer, the 73.26 administrator's burden of proof as to the existence and amount 73.27 of the property and its abandonment is satisfied by showing 73.28 issuance of the instrument and passage of the requisite period 73.29 of abandonment. Defenses of payment, satisfaction, discharge, 73.30 and want of consideration are affirmative defenses that must be 73.31 established by the holder. 73.32 Sec. 7. [345.67] [REPORT OF ABANDONED PROPERTY.] 73.33 (a) A holder of property presumed abandoned shall make a 73.34 report to the administrator concerning the property. 73.35 (b) The report must be verified and must contain: 73.36 (1) a description of the property; 74.1 (2) except with respect to a traveler's check or money 74.2 order, the name, if known, and last known address, if any, and 74.3 the social security number or taxpayer identification number, if 74.4 readily ascertainable, of the apparent owner of property of the 74.5 value of $100 or more; 74.6 (3) an aggregated amount of items valued under $100 each; 74.7 (4) in the case of an amount of $100 or more held or owing 74.8 under an annuity or a life or endowment insurance policy, the 74.9 full name and last known address of the annuitant or insured and 74.10 of the beneficiary; 74.11 (5) in the case of property held in a safe deposit box or 74.12 other safekeeping depository, an indication of the place where 74.13 it is held and where it may be inspected by the administrator, 74.14 and any amounts owing to the holder; 74.15 (6) the date, if any, on which the property became payable, 74.16 demandable, or returnable, and the date of the last transaction 74.17 with the apparent owner with respect to the property; and 74.18 (7) other information that the administrator by rule 74.19 prescribes as necessary for the administration of sections 74.20 345.61 to 345.90. 74.21 (c) If a holder of property presumed abandoned is a 74.22 successor to another person who previously held the property for 74.23 the apparent owner or the holder has changed its name while 74.24 holding the property, the holder shall file with the report its 74.25 former names, if any, and the known names and addresses of all 74.26 previous holders of the property. 74.27 (d) The report must be filed before November 1 of each year 74.28 and cover the 12 months next preceding July 1 of that year, but 74.29 a report with respect to a life insurance company must be filed 74.30 before May 1 of each year for the calendar year next preceding. 74.31 (e) The holder of property presumed abandoned shall send 74.32 written notice to the apparent owner, not more than 120 days 74.33 before filing the report, stating that the holder is in 74.34 possession of property subject to sections 345.61 to 345.90, if: 74.35 (1) the holder has in its records an address for the 74.36 apparent owner which the holder's records do not disclose to be 75.1 inaccurate; 75.2 (2) the claim of the apparent owner is not barred by a 75.3 statute of limitations; and 75.4 (3) the value of the property is $100 or more. 75.5 (f) Before the date for filing the report, the holder of 75.6 property presumed abandoned may request the administrator to 75.7 extend the time for filing the report. The administrator may 75.8 grant the extension for good cause. The holder, upon receipt of 75.9 the extension, may make an interim payment on the amount the 75.10 holder estimates will ultimately be due, which terminates the 75.11 accrual of additional interest on the amount paid. 75.12 (g) The holder of property presumed abandoned shall file 75.13 with the report an affidavit stating that the holder has 75.14 complied with paragraph (e). 75.15 Sec. 8. [345.68] [PAYMENT OR DELIVERY OF ABANDONED 75.16 PROPERTY.] 75.17 (a) Upon filing the report required by section 345.67, the 75.18 holder of property presumed abandoned shall pay, deliver, or 75.19 cause to be paid or delivered to the administrator the property 75.20 described in the report as unclaimed, but if the property is an 75.21 automatically renewable deposit, and a penalty or forfeiture in 75.22 the payment of interest would result, the time for compliance is 75.23 extended until a penalty or forfeiture would no longer result. 75.24 (b) If the property reported to the administrator is a 75.25 security or security entitlement under the Uniform Commercial 75.26 Code - Investment Securities, the administrator is an 75.27 appropriate person to make an endorsement, instruction, or 75.28 entitlement order on behalf of the apparent owner to invoke the 75.29 duty of the issuer or its transfer agent or the securities 75.30 intermediary to transfer or dispose of the security or the 75.31 security entitlement in accordance with the Uniform Commercial 75.32 Code - Investment Securities. 75.33 (c) If the holder of property reported to the administrator 75.34 is the issuer of a certificated security, the administrator has 75.35 the right to obtain a replacement certificate pursuant to 75.36 section 336.8-408, but an indemnity bond is not required. 76.1 (d) An issuer, the holder, and any transfer agent or other 76.2 person acting pursuant to the instructions of and on behalf of 76.3 the issuer or holder in accordance with this section is not 76.4 liable to the apparent owner and must be indemnified against 76.5 claims of any person in accordance with section 345.70. 76.6 Sec. 9. [345.69] [NOTICE AND PUBLICATION OF LISTS OF 76.7 ABANDONED PROPERTY.] 76.8 (a) The administrator shall publish a notice not later than 76.9 November 30 of the year next following the year in which 76.10 abandoned property has been paid or delivered to the 76.11 administrator. The advertisement must be in a form that, in the 76.12 judgment of the administrator, is likely to attract the 76.13 attention of the apparent owner of the unclaimed property. The 76.14 form must contain: 76.15 (1) the name of each person appearing to be the owner of 76.16 the property, as set forth in the report filed by the holder; 76.17 (2) the last known address or location of each person 76.18 appearing to be the owner of the property, if an address or 76.19 location is set forth in the report filed by the holder; 76.20 (3) a statement explaining that property of the owner is 76.21 presumed to be abandoned and has been taken into the protective 76.22 custody of the administrator; and 76.23 (4) a statement that information about the property and its 76.24 return to the owner is available to a person having a legal or 76.25 beneficial interest in the property, upon request to the 76.26 administrator. 76.27 (b) The administrator is not required to advertise the name 76.28 and address or location of an owner of property having a total 76.29 value less than $100, or information concerning a traveler's 76.30 check, money order, or similar instrument. 76.31 Sec. 10. [345.70] [CUSTODY BY STATE; RECOVERY BY HOLDER; 76.32 DEFENSE OF HOLDER.] 76.33 (a) In this section, payment or delivery is made in "good 76.34 faith" if: 76.35 (1) payment or delivery was made in a reasonable attempt to 76.36 comply with sections 345.61 to 345.90; 77.1 (2) the holder was not then in breach of a fiduciary 77.2 obligation with respect to the property and had a reasonable 77.3 basis for believing, based on the facts then known, that the 77.4 property was presumed abandoned; and 77.5 (3) there is no showing that the records under which the 77.6 payment or delivery was made did not meet reasonable commercial 77.7 standards of practice. 77.8 (b) Upon payment or delivery of property to the 77.9 administrator, the state assumes custody and responsibility for 77.10 the safekeeping of the property. A holder who pays or delivers 77.11 property to the administrator in good faith is relieved of 77.12 liability arising thereafter with respect to the property to the 77.13 extent of the value of the property at the time it is paid or 77.14 delivered to the administrator. 77.15 (c) A holder who has paid money to the administrator 77.16 pursuant to sections 345.61 to 345.90 may subsequently make 77.17 payment to a person reasonably appearing to the holder to be 77.18 entitled to payment. Upon a filing by the holder of proof of 77.19 payment and proof that the payee was entitled to the payment, 77.20 the administrator shall promptly reimburse the holder for the 77.21 payment without imposing a fee or other charge. If 77.22 reimbursement is sought for a payment made on a negotiable 77.23 instrument, including a traveler's check or money order, the 77.24 holder must be reimbursed upon filing proof that the instrument 77.25 was duly presented and that payment was made to a person who 77.26 reasonably appeared to be entitled to payment. The holder must 77.27 be reimbursed for payment made even if the payment was made to a 77.28 person whose claim was barred under section 345.78, paragraph 77.29 (a). 77.30 (d) A holder who has delivered property other than money to 77.31 the administrator pursuant to sections 345.61 to 345.90 may 77.32 reclaim the property if it is still in the possession of the 77.33 administrator, without paying any fee or other charge, upon 77.34 filing proof that the apparent owner has claimed the property 77.35 from the holder. 77.36 (e) The administrator may accept a holder's affidavit as 78.1 sufficient proof of the holder's right to recover money and 78.2 property under this section. 78.3 (f) If a holder pays or delivers property to the 78.4 administrator in good faith and thereafter another person claims 78.5 the property from the holder or another state claims the money 78.6 or property under its laws relating to escheat or abandoned or 78.7 unclaimed property, the administrator, upon written notice of 78.8 the claim, shall defend the holder against the claim and 78.9 indemnify the holder against any liability on the claim 78.10 resulting from payment or delivery of the property to the 78.11 administrator but only to the extent of the value of the 78.12 property paid or delivered to the administrator. 78.13 (g) Property removed from a safe deposit box or other 78.14 safekeeping depository is received by the administrator subject 78.15 to any valid lien or contract providing for the holder to be 78.16 reimbursed for unpaid rent or storage charges. The 78.17 administrator shall reimburse the holder out of the proceeds 78.18 remaining after deducting the expense incurred by the 78.19 administrator in selling the property. 78.20 Sec. 11. [345.71] [PUBLIC SALE OF ABANDONED PROPERTY.] 78.21 (a) Except as otherwise provided in this section, the 78.22 administrator, within ten years after the receipt of abandoned 78.23 property, shall sell it to the highest bidder at public sale at 78.24 a location in the state which in the judgment of the 78.25 administrator affords the most favorable market for the 78.26 property. The administrator may decline the highest bid and 78.27 reoffer the property for sale if the administrator considers the 78.28 bid to be insufficient. The administrator need not offer the 78.29 property for sale if the administrator considers that the 78.30 probable cost of the sale will exceed the proceeds of the sale. 78.31 A sale held under this section must be preceded by a single 78.32 publication of notice, at least three weeks before the sale, in 78.33 a newspaper of general circulation in the county in which the 78.34 property is to be sold. 78.35 (b) Securities listed on an established stock exchange must 78.36 be sold at prices prevailing on the exchange at the time of 79.1 sale. Other securities may be sold over the counter at prices 79.2 prevailing at the time of the sale or by any reasonable method 79.3 selected by the administrator. If securities are sold by the 79.4 administrator before the expiration of three years after their 79.5 delivery to the administrator, a person making a claim under 79.6 sections 345.61 to 345.90 before the end of the three-year 79.7 period is entitled to the proceeds of the sale of the securities 79.8 or the market value of the securities at the time the claim is 79.9 made, whichever is greater, less any deduction for expenses of 79.10 the sale. A person making a claim under sections 345.61 to 79.11 345.90 after the expiration of the three-year period is entitled 79.12 to receive the securities delivered to the administrator by the 79.13 holder, if they still remain in the custody of the 79.14 administrator, or the net proceeds received from the sale, and 79.15 is not entitled to receive any appreciation in the value of the 79.16 property occurring after delivery to the administrator, except 79.17 in a case of intentional misconduct or malfeasance by the 79.18 administrator. 79.19 (c) A purchaser of property at a sale conducted by the 79.20 administrator pursuant to sections 345.61 to 345.90 takes the 79.21 property free of all claims of the owner or previous holder and 79.22 of all persons claiming through or under them. The 79.23 administrator shall execute all documents necessary to complete 79.24 the transfer of ownership. 79.25 (d) The administrator shall provide the Minnesota 79.26 historical society with an inventory of abandoned property, 79.27 other than money, six months prior to public sale. The society 79.28 may select for its collections any items it finds of historical 79.29 value. The society shall make its selection before the 79.30 administrator appraises or sorts the material for public sale. 79.31 The society has 90 days from the date of notification by the 79.32 administrator to exercise the authority granted by this 79.33 subdivision. The society shall receive title to the property 79.34 selected free from all claims of the owner or prior holder and 79.35 of all persons claiming through or under them. The 79.36 administrator shall execute all documents necessary to complete 80.1 the transfer of title. 80.2 Sec. 12. [345.72] [DEPOSIT OF FUNDS.] 80.3 (a) Except as otherwise provided by this section and 80.4 section 345.90, the administrator shall promptly deposit in the 80.5 general fund of this state all funds received under sections 80.6 345.61 to 345.90, including the proceeds from the sale of 80.7 abandoned property under section 345.71. The administrator 80.8 shall retain in a separate trust fund at least $100,000 from 80.9 which the administrator shall pay claims duly allowed. The 80.10 administrator shall record the name and last known address of 80.11 each person appearing from the holders' reports to be entitled 80.12 to the property and the name and last known address of each 80.13 insured person or annuitant and beneficiary and with respect to 80.14 each policy or annuity listed in the report of an insurance 80.15 company, its number, the name of the company, and the amount due. 80.16 (b) Before making a deposit to the credit of the general 80.17 fund, the administrator may deduct: 80.18 (1) expenses of the sale of abandoned property; 80.19 (2) costs of mailing and publication in connection with 80.20 abandoned property; 80.21 (3) reasonable service charges; and 80.22 (4) expenses incurred in examining records of holders of 80.23 property and in collecting the property from those holders. 80.24 Sec. 13. [345.73] [CLAIM OF ANOTHER STATE TO RECOVER 80.25 PROPERTY.] 80.26 (a) After property has been paid or delivered to the 80.27 administrator under sections 345.61 to 345.90, another state may 80.28 recover the property if: 80.29 (1) the property was paid or delivered to the custody of 80.30 this state because the records of the holder did not reflect a 80.31 last known location of the apparent owner within the borders of 80.32 the other state and the other state establishes that the 80.33 apparent owner or other person entitled to the property was last 80.34 known to be located within the borders of that state and under 80.35 the laws of that state the property has escheated or become 80.36 subject to a claim of abandonment by that state; 81.1 (2) the property was paid or delivered to the custody of 81.2 this state because the laws of the other state did not provide 81.3 for the escheat or custodial taking of the property, and under 81.4 the laws of that state subsequently enacted the property has 81.5 escheated or become subject to a claim of abandonment by that 81.6 state; 81.7 (3) the records of the holder were erroneous in that they 81.8 did not accurately identify the owner of the property and the 81.9 last known location of the owner within the borders of another 81.10 state and under the laws of that state the property has 81.11 escheated or become subject to a claim of abandonment by that 81.12 state; 81.13 (4) the property was subjected to custody by this state 81.14 under section 345.64, clause (6), and under the laws of the 81.15 state of domicile of the holder the property has escheated or 81.16 become subject to a claim of abandonment by that state; or 81.17 (5) the property is a sum payable on a traveler's check, 81.18 money order, or similar instrument that was purchased in the 81.19 other state and delivered into the custody of this state under 81.20 section 345.64, clause (7), and under the laws of the other 81.21 state the property has escheated or become subject to a claim of 81.22 abandonment by that state. 81.23 (b) A claim of another state to recover escheated or 81.24 abandoned property must be presented in a form prescribed by the 81.25 administrator, who shall decide the claim within 90 days after 81.26 it is presented. The administrator shall allow the claim upon 81.27 determining that the other state is entitled to the abandoned 81.28 property under paragraph (a). 81.29 (c) The administrator shall require another state, before 81.30 recovering property under this section, to agree to indemnify 81.31 this state and its officers and employees against any liability 81.32 on a claim to the property. 81.33 Sec. 14. [345.74] [FILING CLAIM WITH ADMINISTRATOR; 81.34 HANDLING OF CLAIMS BY ADMINISTRATOR.] 81.35 (a) A person, excluding another state, claiming property 81.36 paid or delivered to the administrator may file a claim on a 82.1 form prescribed by the administrator and verified by the 82.2 claimant. 82.3 (b) Within 90 days after a claim is filed, the 82.4 administrator shall allow or deny the claim and give written 82.5 notice of the decision to the claimant. If the claim is denied, 82.6 the administrator shall inform the claimant of the reasons for 82.7 the denial and specify what additional evidence is required 82.8 before the claim will be allowed. The claimant may then file a 82.9 new claim with the administrator or maintain an action under 82.10 section 345.75. 82.11 (c) Within 30 days after a claim is allowed, the property 82.12 or the net proceeds of a sale of the property must be delivered 82.13 or paid by the administrator to the claimant, together with any 82.14 dividend, interest, or other increment to which the claimant is 82.15 entitled under section 345.71. 82.16 (d) A holder who pays the owner for property that has been 82.17 delivered to the state and which, if claimed from the 82.18 administrator by the owner would be subject to an increment 82.19 under section 345.71, may recover from the administrator the 82.20 amount of the increment. 82.21 Sec. 15. [345.75] [ACTION TO ESTABLISH CLAIM.] 82.22 A person aggrieved by a decision of the administrator or 82.23 whose claim has not been acted upon within 90 days after its 82.24 filing may maintain an original action to establish the claim in 82.25 the district court, naming the administrator as a defendant. 82.26 Sec. 16. [345.76] [ELECTION TO TAKE PAYMENT OR DELIVERY.] 82.27 (a) The administrator may decline to receive property 82.28 reported under sections 345.61 to 345.90 which the administrator 82.29 considers to have a value less than the expenses of notice and 82.30 sale. 82.31 (b) A holder, with the written consent of the administrator 82.32 and upon conditions and terms prescribed by the administrator, 82.33 may report and deliver property before the property is presumed 82.34 abandoned. Property so delivered must be held by the 82.35 administrator and is not presumed abandoned until it otherwise 82.36 would be presumed abandoned under sections 345.61 to 345.90. 83.1 Sec. 17. [345.77] [DESTRUCTION OR DISPOSITION OF PROPERTY 83.2 HAVING NO SUBSTANTIAL COMMERCIAL VALUE; IMMUNITY FROM 83.3 LIABILITY.] 83.4 If the administrator determines after investigation that 83.5 property delivered under sections 345.61 to 345.90 has no 83.6 substantial commercial value, the administrator may destroy or 83.7 otherwise dispose of the property at any time. An action or 83.8 proceeding may not be maintained against the state or any 83.9 officer or against the holder for or on account of an act of the 83.10 administrator under this section, except for intentional 83.11 misconduct or malfeasance. 83.12 Sec. 18. [345.78] [PERIODS OF LIMITATION.] 83.13 (a) The expiration, before or after the effective date of 83.14 sections 345.61 to 345.90, of a period of limitation on the 83.15 owner's right to receive or recover property, whether specified 83.16 by contract, statute, or court order, does not preclude the 83.17 property from being presumed abandoned or affect a duty to file 83.18 a report or to pay or deliver or transfer property to the 83.19 administrator as required by sections 345.61 to 345.90. 83.20 (b) An action or proceeding may not be maintained by the 83.21 administrator to enforce sections 345.61 to 345.90 in regard to 83.22 the reporting, delivery, or payment of property more than ten 83.23 years after the holder specifically identified the property in a 83.24 report filed with the administrator or gave express notice to 83.25 the administrator of a dispute regarding the property. In the 83.26 absence of such a report or other express notice, the period of 83.27 limitation is tolled. The period of limitation is also tolled 83.28 by the filing of a report that is fraudulent. 83.29 Sec. 19. [345.79] [REQUESTS FOR REPORTS AND EXAMINATION OF 83.30 RECORDS.] 83.31 (a) The administrator may require a person who has not 83.32 filed a report, or a person who the administrator believes has 83.33 filed an inaccurate, incomplete, or false report, to file a 83.34 verified report in a form specified by the administrator. The 83.35 report must state whether the person is holding property 83.36 reportable under sections 345.61 to 345.90, describe property 84.1 not previously reported or as to which the administrator has 84.2 made inquiry, and specifically identify and state the amounts of 84.3 property that may be in issue. 84.4 (b) The administrator, at reasonable times and upon 84.5 reasonable notice, may examine the records of any person to 84.6 determine whether the person has complied with sections 345.61 84.7 to 345.90 if the administrator has reasonable cause to believe 84.8 that a person has failed to report property that should have 84.9 been reported under sections 345.61 to 345.90. The 84.10 administrator may conduct the examination even if the person 84.11 believes it is not in possession of any property that must be 84.12 reported, paid, or delivered under sections 345.61 to 345.90. 84.13 The administrator may contract with any other person to conduct 84.14 the examination on behalf of the administrator. 84.15 (c) The administrator at reasonable times may examine the 84.16 records of an agent, including a dividend disbursing agent or 84.17 transfer agent, of a business association or financial 84.18 association that is the holder of property presumed abandoned if 84.19 the administrator has given the notice required by paragraph (b) 84.20 to both the association or organization and the agent at least 84.21 90 days before the examination. 84.22 (d) Documents and working papers obtained or compiled by 84.23 the administrator, or the administrator's agents, employees, or 84.24 designated representatives, in the course of conducting an 84.25 examination are confidential and are not public records, but the 84.26 documents and papers may be: 84.27 (1) used by the administrator in the course of an action to 84.28 collect unclaimed property or otherwise enforce sections 345.61 84.29 to 345.90; 84.30 (2) used in joint examinations conducted with or pursuant 84.31 to an agreement with another state, the federal government, or 84.32 any other governmental subdivision, agency, or instrumentality; 84.33 (3) produced pursuant to subpoena or court order; or 84.34 (4) disclosed to the abandoned property office of another 84.35 state for that state's use in circumstances equivalent to those 84.36 described in this section, if the other state is bound to keep 85.1 the documents and papers confidential. 85.2 (e) If an examination of the records of a person results in 85.3 the disclosure of property reportable under sections 345.61 to 85.4 345.90, the administrator may assess the cost of the examination 85.5 against the holder at the rate of $200 a day for each examiner, 85.6 or a greater amount that is reasonable and was incurred, but the 85.7 assessment may not exceed the value of the property found to be 85.8 reportable. The cost of an examination made pursuant to 85.9 paragraph (c) may be assessed only against the business 85.10 association or financial organization. 85.11 (f) If, after the effective date of sections 345.61 to 85.12 345.90, a holder does not maintain the records required by 85.13 section 345.61 and the records of the holder available for the 85.14 periods subject to sections 345.61 to 345.90 are insufficient to 85.15 permit the preparation of a report, the administrator may 85.16 require the holder to report and pay to the administrator the 85.17 amount the administrator reasonably estimates, on the basis of 85.18 any available records of the holder or by any other reasonable 85.19 method of estimation, should have been but was not reported. 85.20 Sec. 20. [345.80] [RETENTION OF RECORDS.] 85.21 (a) Except as otherwise provided in paragraph (b), a holder 85.22 required to file a report under section 345.67 shall maintain 85.23 the records containing the information required to be included 85.24 in the report for ten years after the holder files the report, 85.25 unless a shorter period is provided by rule of the administrator. 85.26 (b) A business association or financial organization that 85.27 sells, issues, or provides to others for sale or issue in this 85.28 state, traveler's checks, money orders, or similar instruments 85.29 other than third-party bank checks, on which the business 85.30 association or financial organization is directly liable, shall 85.31 maintain a record of the instruments while they remain 85.32 outstanding, indicating the state and date of issue, for three 85.33 years after the holder files the report. 85.34 Sec. 21. [345.81] [ENFORCEMENT.] 85.35 The administrator may maintain an action in this or another 85.36 state to enforce sections 345.61 to 345.90. 86.1 Sec. 22. [345.82] [INTERSTATE AGREEMENTS AND COOPERATION; 86.2 JOINT AND RECIPROCAL ACTIONS WITH OTHER STATES.] 86.3 (a) The administrator may enter into an agreement with 86.4 another state to exchange information relating to abandoned 86.5 property or its possible existence. The agreement may permit 86.6 the other state, or another person acting on behalf of a state, 86.7 to examine records as authorized in section 345.79. The 86.8 administrator by rule may require the reporting of information 86.9 needed to enable compliance with an agreement made under this 86.10 section and prescribe the form. 86.11 (b) The administrator may join with another state to seek 86.12 enforcement of sections 345.61 to 345.90 against any person who 86.13 is or may be holding property reportable under sections 345.61 86.14 to 345.90. 86.15 (c) At the request of another state, and after consultation 86.16 with the administrator, the attorney general of this state may 86.17 maintain an action on behalf of the other state to enforce, in 86.18 this state, the unclaimed property laws of the other state 86.19 against a holder of property subject to escheat or a claim of 86.20 abandonment by the other state, if the other state has agreed to 86.21 pay expenses incurred by the attorney general in maintaining the 86.22 action. 86.23 (d) The administrator may request that the attorney general 86.24 of another state or another attorney commence an action in the 86.25 other state on behalf of the administrator. With the approval 86.26 of the attorney general of this state, the administrator may 86.27 retain any other attorney to commence an action in this state on 86.28 behalf of the administrator. This state shall pay all expenses, 86.29 including attorney's fees, in maintaining an action under this 86.30 paragraph. With the administrator's approval, the expenses and 86.31 attorney's fees may be paid from money received under sections 86.32 345.61 to 345.90. The administrator may agree to pay expenses 86.33 and attorney's fees based in whole or in part on a percentage of 86.34 the value of any property recovered in the action. Any expenses 86.35 or attorney's fees paid under this paragraph may not be deducted 86.36 from the amount that is subject to the claim by the owner under 87.1 sections 345.61 to 345.90. 87.2 Sec. 23. [345.83] [INTEREST AND PENALTIES.] 87.3 (a) A holder who fails to report, pay, or deliver property 87.4 within the time prescribed by sections 345.61 to 345.90 shall 87.5 pay to the administrator interest at the rate prescribed by 87.6 section 270.75 on the property or value thereof from the date 87.7 the property should have been reported, paid, or delivered. 87.8 (b) Except as otherwise provided in paragraph (c), a holder 87.9 who fails to report, pay, or deliver property within the time 87.10 prescribed by sections 345.61 to 345.90, or fails to perform 87.11 other duties imposed by sections 345.61 to 345.90, shall pay to 87.12 the administrator, in addition to interest as provided in 87.13 paragraph (a), a civil penalty of $200 for each day the report, 87.14 payment, or delivery is withheld, or the duty is not performed, 87.15 up to a maximum of $5,000. 87.16 (c) A holder who willfully fails to report, pay, or deliver 87.17 property within the time prescribed by sections 345.61 to 87.18 345.90, or willfully fails to perform other duties imposed by 87.19 sections 345.61 to 345.90, shall pay to the administrator, in 87.20 addition to interest as provided in paragraph (a), a civil 87.21 penalty of $1,000 for each day the report, payment, or delivery 87.22 is withheld, or the duty is not performed, up to a maximum of 87.23 $25,000, plus 25 percent of the value of any property that 87.24 should have been but was not reported. 87.25 (d) A holder who makes a fraudulent report shall pay to the 87.26 administrator, in addition to interest as provided in paragraph 87.27 (a), a civil penalty of $1,000 for each day from the date a 87.28 report under sections 345.61 to 345.90 was due, up to a maximum 87.29 of $25,000, plus 25 percent of the value of any property that 87.30 should have been but was not reported. 87.31 (e) The administrator for good cause may waive, in whole or 87.32 in part, interest under paragraph (a) and penalties under 87.33 paragraphs (b) and (c), and shall waive penalties if the holder 87.34 acted in good faith. 87.35 Sec. 24. [345.84] [AGREEMENT TO LOCATE PROPERTY.] 87.36 (a) An agreement by an owner, the primary purpose of which 88.1 is to locate, deliver, recover, or assist in the recovery of 88.2 property that is presumed abandoned, is void and unenforceable 88.3 if it was entered into during the period commencing on the date 88.4 the property was presumed abandoned and extending to a time that 88.5 is 24 months after the date the property is paid or delivered to 88.6 the administrator. This paragraph does not apply to an owner's 88.7 agreement with an attorney to file a claim as to identified 88.8 property or contest the administrator's denial of a claim. 88.9 (b) An agreement by an owner, the primary purpose of which 88.10 is to locate, deliver, recover, or assist in the recovery of 88.11 property, is enforceable only if the agreement is in writing, 88.12 clearly sets forth the nature of the property and the services 88.13 to be rendered, is signed by the apparent owner, and states the 88.14 value of the property before and after the fee or other 88.15 compensation has been deducted. 88.16 (c) If an agreement covered by this section applies to 88.17 mineral proceeds and the agreement contains a provision to pay 88.18 compensation that includes a portion of the underlying minerals 88.19 or any mineral proceeds not then presumed abandoned, the 88.20 provision is void and unenforceable. 88.21 (d) This section does not preclude an owner from asserting 88.22 that an agreement covered by this section is invalid on grounds 88.23 other than unconscionable compensation. 88.24 Sec. 25. [345.85] [FOREIGN TRANSACTIONS.] 88.25 Sections 345.61 to 345.90 do not apply to property held, 88.26 due, and owing in a foreign country and arising out of a foreign 88.27 transaction. 88.28 Sec. 26. [345.86] [TRANSITIONAL PROVISIONS.] 88.29 (a) An initial report filed under sections 345.61 to 345.90 88.30 for property that was not required to be reported before the 88.31 effective date of sections 345.61 to 345.90 but which is subject 88.32 to sections 345.61 to 345.90 must include all items of property 88.33 that would have been presumed abandoned during the ten-year 88.34 period next preceding the effective date of sections 345.61 to 88.35 345.90 as if sections 345.61 to 345.90 had been in effect during 88.36 that period. 89.1 (b) Sections 345.61 to 345.90 do not relieve a holder of a 89.2 duty that arose before the effective date of sections 345.61 to 89.3 345.90 to report, pay, or deliver property. Except as otherwise 89.4 provided in section 345.78, paragraph (b), a holder who did not 89.5 comply with the law in effect before the effective date of 89.6 sections 345.61 to 345.90 is subject to the applicable 89.7 provisions for enforcement and penalties which then existed, 89.8 which are continued in effect for the purpose of this section. 89.9 Sec. 27. [345.87] [RULES.] 89.10 The administrator may adopt rules under chapter 14 89.11 necessary to carry out sections 345.61 to 345.90. 89.12 Sec. 28. [345.88] [UNIFORMITY OF APPLICATION AND 89.13 CONSTRUCTION.] 89.14 Sections 345.61 to 345.90 shall be applied and construed to 89.15 effectuate its general purpose to make uniform the law with 89.16 respect to the subject of sections 345.61 to 345.90 among states 89.17 enacting it. 89.18 Sec. 29. [345.89] [SHORT TITLE.] 89.19 Sections 345.61 to 345.89 may be cited as the Uniform 89.20 Unclaimed Property Act (1995). 89.21 Sec. 30. [345.90] [UNCLAIMED GIFT CERTIFICATE PROCEEDS; 89.22 APPROPRIATION.] 89.23 Proceeds of the sale of unclaimed gift certificates, sold 89.24 under section 345.71, shall be deposited in a separate account 89.25 in the special revenue fund and is appropriated to the 89.26 department of commerce for the purposes of increasing the level 89.27 of voluntary filings and for other enforcement activities 89.28 against holders who have not filed. 89.29 Sec. 31. [TRANSITION PROVISION.] 89.30 Notwithstanding section 5, the maximum dormancy charge that 89.31 may be imposed by a banking and financial institution or by a 89.32 business association for an unclaimed money order until June 30, 89.33 1999, is the maximum allowed under the law repealed by this 89.34 article. 89.35 Sec. 32. [FISCAL IMPACT; STUDY.] 89.36 The department of commerce shall seek to increase the 90.1 number of holders voluntarily filing reports and report to the 90.2 house and senate budget divisions with jurisdiction over the 90.3 department's budget, by February 15, 1999, the results of those 90.4 efforts, along with any recommendations as to steps that should 90.5 be taken to increase voluntary compliance. 90.6 The department of commerce shall monitor the number of 90.7 holders filing reports and the amount of monies collected under 90.8 sections 1 to 29 for the period July 1, 1998, to June 30, 1999, 90.9 and compare it to the number of holders filing reports and the 90.10 monies collected for each of the previous two years. If the 90.11 department determines sections 1 to 29 have caused a reduction 90.12 in the number of holder reports or monies collected, it shall 90.13 develop recommendations for legislation to eliminate any 90.14 negative fiscal impact. The department shall report by February 90.15 15, 2000, the results of the monitoring and any recommendations 90.16 to the house and senate budget divisions having jurisdiction 90.17 over the department's budget. 90.18 Sec. 33. [REPEALER.] 90.19 Minnesota Statutes 1996, sections 345.31; 345.32; 345.33; 90.20 345.34; 345.35; 345.36; 345.37; 345.38; 345.381; 345.39; 345.40; 90.21 345.41; 345.42; 345.43; 345.44; 345.45; 345.46; 345.47; 345.485; 90.22 345.49; 345.50; 345.51; 345.515; 345.52; 345.525; 345.53; 90.23 345.54; 345.55; 345.56; 345.57; 345.58; 345.59; and 345.60; 90.24 Minnesota Statutes 1997 Supplement, section 345.48, are repealed. 90.25 Sec. 34. [EFFECTIVE DATE.] 90.26 This article is effective July 1, 1998. 90.27 ARTICLE 3 90.28 CONFORMING CHANGES 90.29 Section 1. Minnesota Statutes 1996, section 16A.45, 90.30 subdivision 1, is amended to read: 90.31 Subdivision 1. [CANCEL; CREDIT.] Once each fiscal year the 90.32 commissioner and the treasurer shall cancel upon their books all 90.33 outstanding unpaid commissioner's warrants, except warrants 90.34 issued for federal assistance programs, that have been issued 90.35 and delivered for more than six months prior to that date and 90.36 credit to the general fund the respective amounts of the 91.1 canceled warrants. These warrants are presumed abandoned under 91.2 section345.38345.62 and are subject to the provisions of 91.3 sections345.31345.61 to345.60345.90. The commissioner and 91.4 the treasurer shall cancel upon their books all outstanding 91.5 unpaid commissioner's warrants issued for federal assistance 91.6 programs that have been issued and delivered for more than the 91.7 period of time set pursuant to the federal program and credit to 91.8 the general fund and the appropriate account in the federal 91.9 fund, the amount of the canceled warrants. 91.10 Sec. 2. Minnesota Statutes 1996, section 16A.45, 91.11 subdivision 4, is amended to read: 91.12 Subd. 4. [LOCATING UNPAID WARRANTS.] A person may not seek 91.13 or receive from another person, or contract with a person for, a 91.14 fee or compensation for locating outstanding unpaid 91.15 commissioner's warrants before the warrants have been reported 91.16 to the commissioner of commerce under section345.41345.67. 91.17 Sec. 3. Minnesota Statutes 1997 Supplement, section 91.18 16A.6701, subdivision 1, is amended to read: 91.19 Subdivision 1. [STATE LICENSE AND SERVICE FEES.] For 91.20 purposes of section 16A.67, subdivision 3, and this section, the 91.21 term "state license and service fees" means, and refers to, all 91.22 license fees, service fees, and charges imposed by law and 91.23 collected by any state officer, agency, or employee, which are 91.24 listed below or which are defined as departmental earnings under 91.25 section 16A.1285, subdivision 1, and the use of which is not 91.26 otherwise restricted by law, and which are not required to be 91.27 credited or transferred to a fund other than the general fund: 91.28 Minnesota Statutes 1994, sections 3.9221; 5.12; 5.14; 5.16; 91.29 5A.04; 6.58; 13.03, subdivision 10; 16A.155; 16A.48; 16A.54; 91.30 16A.72; 16B.59; 16B.70; 17A.04; 18.51, subdivision 2; 18.53; 91.31 18.54; 18C.551; 19.58; 19.64; 27.041, subdivision 2, clauses (d) 91.32 and (e); 27.07, subdivision 5; 28A.08; 32.071; 32.075; 32.392; 91.33 35.71; 35.824; 35.95; 41C.12; 45.027, subdivisions 3 and 6; 91.34 46.041, subdivision 1; 46.131, subdivisions 2, 7, 8, 9, and 10; 91.35 47.101, subdivision 2; 47.54, subdivisions 1 and 4; 47.62, 91.36 subdivision 4; 47.65; 48.475, subdivision 1; 48.61, subdivision 92.1 7; 48.93; 49.36, subdivision 1; 52.01; 52.203; 53.03, 92.2 subdivisions 1, 5, and 6; 53.09, subdivision 1; 53A.03; 53A.05, 92.3 subdivision 1; 53A.081, subdivision 3; 54.294, subdivision 1; 92.4 55.04, subdivision 2; 55.095; 56.02; 56.04; 56.10; 59A.03, 92.5 subdivision 2; 59A.06, subdivision 3; 60A.14, subdivisions 1 and 92.6 2; 60A.23, subdivision 8; 60K.19, subdivision 5; 65B.48, 92.7 subdivision 3; 70A.14, subdivision 4; 72B.04, subdivision 10; 92.8 79.251, subdivision 5; 80A.28, subdivisions 1, 2, 3, 4, 5, 6, 7, 92.9 7a, 8, and 9; 80C.04, subdivision 1; 80C.07; 80C.08, subdivision 92.10 1; 80C.16, subdivisions 2 and 3; 80C.18, subdivision 2; 82.20, 92.11 subdivision 8 and 9; 82A.04, subdivision 1; 82A.08, subdivision 92.12 2; 82A.16, subdivisions 2 and 6; 82B.09, subdivision 1; 83.23, 92.13 subdivisions 2, 3, and 4; 83.25, subdivisions 1 and 2; 83.26, 92.14 subdivision 2; 83.30, subdivision 2; 83.31, subdivision 2; 92.15 83.38, subdivision 2; 85.052; 85.053; 85.055; 88.79, subdivision 92.16 2; 89.035; 89.21; 115.073; 115.77, subdivisions 1 and 2; 116.41, 92.17 subdivision 2; 116C.69; 116C.712; 116J.9673; 125.08; 136C.04, 92.18 subdivision 9; 155A.045; 155A.16; 168.27, subdivision 11; 92.19 168.33, subdivisions 3 and 7; 168.54; 168.67; 168.705; 168A.152; 92.20 168A.29; 169.345; 171.06, subdivision 2a; 171.29, subdivision 2; 92.21 176.102; 176.1351; 176.181, subdivision 2a; 177.30; 181A.12; 92.22 183.545; 183.57; 184.28; 184.29; 184A.09; 201.091, subdivision 92.23 5; 204B.11; 207A.02; 214.06; 216C.261; 221.0355; 239.101; 92.24 240.06; 240.07; 240.08; 240.09; 240.10; 246.51; 270.69, 92.25 subdivision 2; 270A.07; 272.484; 296.06; 296.12; 296.17; 92.26 297F.03; 297.33; 299C.46; 299C.62; 299K.09; 299K.095; 299L.07; 92.27 299M.04; 300.49; 318.02; 323.44, subdivision 3; 325D.415; 92.28 326.22; 326.3331; 326.47; 326.50; 326.92, subdivisions 1 and 3; 92.29 327.33; 331A.02; 332.15, subdivisions 2 and 3; 332.17; 332.22, 92.30 subdivision 1; 332.33, subdivisions 3 and 4; 332.54, subdivision 92.31 7; 333.055; 333.20; 333.23; 336.9-413; 336A.04; 336A.05; 92.32 336A.09;345.35345.62, paragraph (a), clause (2);345.43,92.33subdivision 2a345.68;345.44345.70;345.55, subdivision92.343345.83; 347.33; 349.151; 349.161; 349.162; 349.163; 349.164; 92.35 349.165; 349.166; 349.167; 357.08; 359.01, subdivision 3; 92.36 360.018; 360.63; 386.68; and 414.01, subdivision 11; Minnesota 93.1 Statutes 1994, chapters 154; 216B; 237; 302A; 303; 308A; 317A; 93.2 322A; and 322B; Laws 1990, chapter 593; Laws 1993, chapter 254, 93.3 section 7; and Laws 1994, chapter 573, section 4; Minnesota 93.4 Rules, parts 1800.0500; 1950.1070; 2100.9300; 7515.0210; and 93.5 9545.2000 to 9545.2040. 93.6 Sec. 4. Minnesota Statutes 1996, section 80C.03, is 93.7 amended to read: 93.8 80C.03 [EXEMPTIONS.] 93.9 The registration requirement imposed by section 80C.02 93.10 shall not apply to the following provided that the method of 93.11 offer or sale is not used for the purpose of evading sections 93.12 80C.01 to 80C.22: 93.13 (a) the offer or sale of a franchise owned by that 93.14 franchisee, or the offer or sale of the entire area franchise 93.15 owned by the subfranchisor making the offer or sale if the sale 93.16 is not effected by or through a franchisor; provided, however, 93.17 that no person shall make more than one sale during any period 93.18 of 12 consecutive months of a franchise or area franchise 93.19 granted by a single franchisor. A sale is not effected by or 93.20 through a franchisor merely because a franchisor has a right to 93.21 approve or disapprove a different franchisee; 93.22 (b) any transaction by an executor, administrator, sheriff, 93.23 receiver, trustee in bankruptcy, guardian or conservator; 93.24 (c) any offer or sale to abanking organization,financial 93.25 organization orlifeinsurancecorporationcompany within the 93.26 meanings given these terms by section345.31345.61; 93.27 (d) securities currently registered in this state pursuant 93.28 to chapter 80A; 93.29 (e) the offer or sale of a franchise, not including an area 93.30 franchise, provided that: 93.31 (1) the franchisor shall make no more than one sale of a 93.32 franchise pursuant to this exemption during any period of 12 93.33 consecutive months; 93.34 (2) the franchisor has not advertised the franchise for 93.35 sale to the general public in newspapers or other publications 93.36 of general circulation or otherwise by radio, television, 94.1 electronic means or similar communications media, or through a 94.2 program of general solicitation by means of mail or telephone; 94.3 (3) the franchisor deposits all franchisee fees within two 94.4 days of receipt in an escrow account until all obligations of 94.5 the franchisor to the franchisee which are, pursuant to the 94.6 terms of the franchise agreement, to be performed prior to the 94.7 opening of the franchise, have been performed. The franchisor 94.8 shall provide the franchisee with a purchase receipt for the 94.9 franchise fees paid, a copy of the escrow agreement and the 94.10 name, address and telephone number of the escrow agent. The 94.11 escrow agent shall be a bank located in Minnesota. Upon a 94.12 showing of good cause the commissioner may waive the escrow of 94.13 franchise fees; and 94.14 (4) the franchisor has provided to the commissioner, no 94.15 later than ten business days prior to the sale, a written notice 94.16 of its intention to offer or sell a franchise pursuant to this 94.17 exemption; 94.18 (f) the offer or sale of a fractional franchise; 94.19 (g) any transaction which the commissioner by rule or order 94.20 exempts as not being within the purposes of this chapter and the 94.21 registration of which the commissioner finds is not necessary or 94.22 appropriate in the public interest or for the protection of 94.23 investors; and 94.24 (h) the offer or sale of a franchise to a resident of a 94.25 foreign state, territory, or country who is neither domiciled in 94.26 this state nor actually present in this state, if the franchise 94.27 business is not to be operated wholly or partly in this state, 94.28 and if the sale of this franchise is not in violation of any law 94.29 of the foreign state, territory, or county concerned. 94.30 Sec. 5. Minnesota Statutes 1996, section 198.231, is 94.31 amended to read: 94.32 198.231 [PERSONAL PROPERTY OF DISCHARGED RESIDENTS.] 94.33 Personal property of discharged residents of the veterans 94.34 homes that remains unclaimed for one year after discharge may be 94.35 inventoried, appraised, and sold. The proceeds from the sale 94.36 must be deposited into the state treasury. Proceeds from the 95.1 sale of personal property and any funds held on behalf of the 95.2 resident in the member's depository accounts must be credited to 95.3 a separate state account and disposed of in accordance with 95.4 sections345.41345.67 to345.43345.69. 95.5 Sec. 6. Minnesota Statutes 1996, section 276.19, 95.6 subdivision 4, is amended to read: 95.7 Subd. 4. [APPLICABILITY.] Sections345.31345.61 to345.6095.8 345.90 do not apply to unclaimed property tax refunds, 95.9 overpayments, and warrants. 95.10 Sec. 7. Minnesota Statutes 1996, section 308A.711, 95.11 subdivision 1, is amended to read: 95.12 Subdivision 1. [ALTERNATE PROCEDURE TO DISBURSE PROPERTY.] 95.13 Notwithstanding the provisions of section345.43345.68, a 95.14 cooperative may, in lieu of paying or delivering to the 95.15 commissioner of commerce the unclaimed property specified in its 95.16 report of unclaimed property, distribute the unclaimed property 95.17 to a corporation or organization that is exempt from taxation 95.18 under section 290.05, subdivision 1, paragraph (b), or 2. A 95.19 cooperative making the election to distribute unclaimed property 95.20 shall, within 20 days after the time specified in section345.4295.21 345.68 for claiming the property from the holder, file with the 95.22 commissioner of commerce: 95.23 (1) a verified written explanation of the proof of claim of 95.24 an owner establishing a right to receive the abandoned property; 95.25 (2) any errors in the presumption of abandonment; 95.26 (3) the name, address, and exemption number of the 95.27 corporation or organization to which the property was or is to 95.28 be distributed; and 95.29 (4) the approximate date of distribution. 95.30 Sec. 8. Minnesota Statutes 1996, section 308A.711, 95.31 subdivision 2, is amended to read: 95.32 Subd. 2. [REPORTING AND CLAIMING PROCEDURE NOT AFFECTED.] 95.33 This subdivision does not alter the procedure provided in 95.34 sections345.41345.67 and345.42345.69 for cooperatives to 95.35 report unclaimed property to the commissioner of commerce and 95.36 the requirement that claims of owners are made to the 96.1 cooperatives for a period of 65 days following the publication 96.2 of lists of abandoned property. 96.3 Sec. 9. Minnesota Statutes 1996, section 356.65, 96.4 subdivision 2, is amended to read: 96.5 Subd. 2. [DISPOSITION OF ABANDONED AMOUNTS.] Any unclaimed 96.6 public pension fund amounts existing in any public pension fund 96.7 shall be presumed abandoned, but shall not be subject to the 96.8 provisions of sections345.31345.61 to345.60345.90. Unless 96.9 the benefit plan of the public pension fund specifically 96.10 provides for a different disposition of unclaimed or abandoned 96.11 funds or amounts, any unclaimed public pension fund amounts 96.12 shall cancel and shall be credited to the public pension fund. 96.13 If the unclaimed public pension fund amount exceeds $25 and the 96.14 inactive or former member again becomes a member of the public 96.15 pension fund or applies for a retirement annuity pursuant to 96.16 section 3A.12, 352.72, 352B.30, 352C.051, 353.71, 354.60, 96.17 356.30, or 422A.16, subdivision 8, whichever is applicable, the 96.18 canceled amount shall be restored to the credit of the person. 96.19 Sec. 10. Minnesota Statutes 1996, section 624.68, is 96.20 amended to read: 96.21 624.68 [RECEIVING DEPOSIT IN INSOLVENT BANKS OR FINANCIAL 96.22 ORGANIZATIONS.] 96.23 Every officer, director, agent, or employee of anybanking96.24organization orfinancial organization as defined in section 96.25345.31345.61 and every person, company, and corporation engaged 96.26 in whole or in part, in business as abanking organization or96.27 financial organization, who shall accept or receive on deposit 96.28 from any person, any money, bank bills, notes, currency, checks, 96.29 bills, drafts, or paper circulating as money, knowing or, in the 96.30 case of officers or directors, having good reason to know that 96.31 suchbanking organization orfinancial organization is 96.32 insolvent, and every person knowing of such insolvent condition 96.33 who shall be accessory to, or permit, or connive at the 96.34 accepting or receiving on deposit therein any such deposits, 96.35 shall be guilty of a felony and punished by imprisonment in the 96.36 Minnesota correctional facility-Stillwater for not less than one 97.1 year nor more than five years or by a fine of not less than $700 97.2 nor more than $20,000.