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, or contracts
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; and
24.1 (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 a responsible person tank owner or operator who owns no more
25.17 than only 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 aircraft in 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, 1997 1996, 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
35.2 to change from one place to another in this state, or to change
35.3 from any place in any state, territory, or country to any place
35.4 in 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.]
35.18 Any A person, firm, association, or corporation violating
35.19 any provision of section 181.64 and this section shall be is
35.20 guilty of a misdemeanor. Any A person who shall be is
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 have has 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 damages such
35.30 the person may have sustained, shall have has the right to
35.31 recover such reasonable 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, whichever
36.23 is 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 of seven eight 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) the sole purpose 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; and
38.11 (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 which vitally
39.10 substantially affects or is imminently likely to vitally
39.11 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 the two-year three-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 the two-year
40.16 three-year period from and after the warranty date, the home
40.17 improvement shall be free from defects caused by the faulty
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 the one-year two-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 within six months one 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 of zero percent loans, with loan
43.30 repayments beginning February 20 or August 20 following the
43.31 scheduled date of the project obtaining grants. 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 notice
43.35 from the agency that the project operational performance
43.36 standards have been met, the authority will forgive the
44.1 scheduled loan repayments made under this section. If not
44.2 forgiven, loan Grant 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 needed
44.16 for the essential project component costs by first determining
44.17 the amount needed to reduce a municipality's monthly residential
44.18 sewer service charge to $25 or to an annual residential sewer
44.19 service charge in excess of 1.5 percent of the municipality's
44.20 median household income, whichever is less, and then multiplying
44.21 that amount by 80 percent to determine the actual award amount
44.22 to supplement loans under section 446A.07 or provide up to
44.23 one-third of the amount of the grant funding level required by
44.24 USDA/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 of section 8 project-based and
47.23 section 236 federally assisted rental property upon which the
47.24 agency holds a first mortgage. The owner of a section 8
47.25 project-based federally assisted rental property must agree to
47.26 participate in the section 8 federal assistance program and
47.27 extend the low-income affordability restrictions on the housing
47.28 for the maximum term of the section 8 federal assistance
47.29 contract. The owner of section 236 rental property must agree
47.30 to participate in the section 236 interest reduction payments
47.31 program, to extend any existing low-income affordability
47.32 restrictions on the housing, and to extend any rental assistance
47.33 payments for the maximum term permitted under the agreement for
47.34 rental assistance payments. The An equity take-out loan must be
47.35 secured by a subordinate loan on the property and may include
47.36 additional appropriate 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
48.11 participating in a self-sufficiency program who 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 is participating
49.23 in a self-sufficiency program complying 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
49.28 participating in a self-sufficiency program complying 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 by
50.17 an employment and training service provider as defined in
50.18 chapter 256J, an employability program administered by a
50.19 community action agency, or courses of study at an accredited
50.20 institution of higher education pursued with at least half-time
50.21 student 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 to self-sufficiency program
50.29 administrators employment and training service providers for
50.30 participating families and to county agencies for participating
50.31 families 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
51.6 self-sufficiency program administrators and to county
51.7 agencies employment 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 and a county
51.18 agency an 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 agencies Employment 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. The county agency employment 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) The county agency local 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. The county
52.3 agency local 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
52.8 a county agency an 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 after the
52.12 termination of earned income the 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) The county agency employment 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,
52.28 after six 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 a 36-month 60-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) If a county agency an 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, the county agency employment 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
53.14 earned income has ended an 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 the county agency employment 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
55.25 which is subject to prepayment if 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 500,000 or, (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 than two three 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 within two three 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
62.13 12,152,000 12,202,000 12,160,000 12,110,000
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 and
63.1 economic development, labor and industry, and economic
63.2 security The governor's workforce development council shall
63.3 conduct a joint study of job-training programs funded wholly or
63.4 partly with state public funds. The commissioners The
63.5 governor's workforce development council must report annually to
63.6 the governor and legislature on the development of the study by
63.7 January 15, 1998, and make a final report on the study by
63.8 January 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 section 345.38 345.62 and are subject to the provisions of
91.3 sections 345.31 345.61 to 345.60 345.90. 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 section 345.41 345.67.
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; 345.35 345.62, paragraph (a), clause (2); 345.43,
92.33 subdivision 2a 345.68; 345.44 345.70; 345.55, subdivision
92.34 3 345.83; 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 a banking organization, financial
93.25 organization or life insurance corporation company within the
93.26 meanings given these terms by section 345.31 345.61;
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 sections 345.41 345.67 to 345.43 345.69.
95.5 Sec. 6. Minnesota Statutes 1996, section 276.19,
95.6 subdivision 4, is amended to read:
95.7 Subd. 4. [APPLICABILITY.] Sections 345.31 345.61 to 345.60
95.8 345.90 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 section 345.43 345.68, 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 section 345.42
95.21 345.68 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 sections 345.41 345.67 and 345.42 345.69 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 sections 345.31 345.61 to 345.60 345.90. 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 any banking
96.24 organization or financial organization as defined in section
96.25 345.31 345.61 and every person, company, and corporation engaged
96.26 in whole or in part, in business as a banking organization or
96.27 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 such banking organization or financial 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.