2nd Unofficial Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to economic development; appropriating money 1.3 for economic development, housing, and related 1.4 purposes; modifying provisions of a study; requiring 1.5 reports; establishing pilot projects; providing an 1.6 exemption from grant limits; defining terms; setting 1.7 requirements for wastewater financial assistance; 1.8 modifying loan criteria; modifying supplemental 1.9 assistance provisions; establishing a revolving loan 1.10 fund; modifying warranty provisions; providing 1.11 warranty information; modifying collection agency 1.12 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; providing exemptions from reemployment 1.17 insurance requirements; modifying labor provisions for 1.18 city attorneys; modifying reinvestment program 1.19 provisions; extending boundaries; modifying a public 1.20 utility mandate; creating and changing programs and 1.21 projects; imposing terms and conditions; amending 1.22 Minnesota Statutes 1996, sections 16B.06, subdivision 1.23 2; 16B.08, subdivision 7; 16B.65, subdivision 7; 1.24 115C.09, by adding a subdivision; 116.182, subdivision 1.25 1, and by adding a subdivision; 116J.415, subdivision 1.26 5; 116J.553, subdivision 2; 116L.03, subdivision 5; 1.27 179A.16, subdivisions 1, 3, 9, and by adding a 1.28 subdivision; 179A.18, subdivision 1; 181.64; 1.29 216B.2423, subdivision 1; 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; 332.31, 1.32 subdivisions 3, 6, and by adding a subdivision; 1.33 383B.79, subdivision 1, and by adding a subdivision; 1.34 446A.072, subdivisions 2 and 4; 462A.05, subdivision 1.35 14; 462A.21, by adding subdivisions; 462A.222, 1.36 subdivision 3; 469.303; 474A.061, subdivision 2a; 1.37 541.051, subdivisions 1 and 4; Minnesota Statutes 1997 1.38 Supplement, sections 115C.09, subdivision 3f; 414.11; 1.39 462A.05, subdivision 39; and 462A.205, subdivisions 1, 1.40 2, 5, 6, and 9; Laws 1997, chapter 200, article 1, 1.41 sections 2, subdivision 2; 6; 12, subdivision 2; and 1.42 33, subdivision 1, and by adding subdivisions; Laws 1.43 1997, Second Special Session chapter 2, section 4, 1.44 subdivision 3; proposing coding for new law in 1.45 Minnesota Statutes, chapters 116J; 181; 327A; 462A; 1.46 and 471; repealing Minnesota Statutes 1996, section 2.1 116C.80; Minnesota Statutes 1997 Supplement, section 2.2 446A.072, subdivision 4a; Laws 1991, chapter 275, 2.3 section 3. 2.4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.5 ARTICLE 1 2.6 ECONOMIC DEVELOPMENT 2.7 Section 1. [ECONOMIC DEVELOPMENT APPROPRIATIONS.] 2.8 The sums in the columns marked "APPROPRIATIONS" are 2.9 appropriated from the general fund, or another named fund, to 2.10 the agencies and for the purposes specified in this article, to 2.11 be available for the fiscal years indicated for each purpose. 2.12 The figures "1998" and "1999," where used in this act, mean that 2.13 the appropriation or appropriations listed under them are 2.14 available for the year ending June 30, 1998, or June 30, 1999, 2.15 respectively. The term "first year" means the fiscal year 2.16 ending June 30, 1998, and "second year" means the fiscal year 2.17 ending June 30, 1999. 2.18 SUMMARY BY FUND 2.19 1998 1999 2.20 General $ 983,000 $14,555,000 2.21 General Fund Revenue (204,000) (319,000) 2.22 Workers' Compensation Fund 50,000 (50,000) 2.23 Special Revenue Fund -0- 200,000 2.24 TOTAL $ 829,000 $14,386,000 2.25 APPROPRIATIONS 2.26 Available for the Year 2.27 Ending June 30 2.28 1998 1999 2.29 Sec. 2. DEPARTMENT OF TRADE AND 2.30 ECONOMIC DEVELOPMENT $ -0- $7,440,000 2.31 (a) Mining Grants 2.32 $300,000 is appropriated in 1999 for 2.33 the taconite mining grant program under 2.34 Minnesota Statutes, section 116J.992. 2.35 This is a one-time appropriation and is 2.36 not added to the department's permanent 2.37 budget base. 2.38 (b) Millennium Screen Writing Festival 2.39 $100,000 is appropriated in 1999 for 2.40 planning for the millennium screen 2.41 writing festival, and to enhance the 2.42 film making industry in Minnesota by 2.43 providing grants to local 2.44 screenwriters. Of this amount, $50,000 3.1 is a one-time appropriation and is not 3.2 added to the department's budget base, 3.3 and $50,000 is added to the 3.4 department's budget base. 3.5 (c) Minnesota Film Board 3.6 $5,000,000 is appropriated in 1999 for 3.7 transfer to the revolving loan fund 3.8 under Minnesota Statutes, section 3.9 116J.545. Of this appropriation, the 3.10 film board may use up to $100,000 each 3.11 year for administration of the loan 3.12 fund. This is a one-time appropriation 3.13 and is not added to the department's 3.14 permanent budget base. Of this amount, 3.15 $50,000 is for a grant to the 3.16 Mississippi River Parkway Commission of 3.17 Minnesota for the state's share of the 3.18 Smithsonian's River of Song project. 3.19 (d) Tourism Advertising and Marketing 3.20 $1,000,000 is appropriated in 1999 for 3.21 additional tourism advertising and is 3.22 added to the appropriation for tourism 3.23 provided in Laws 1997, chapter 200, 3.24 article 1, section 2, subdivision 4. 3.25 Of this amount, $711,000 is added to 3.26 the department's budget base. Of this 3.27 amount, $50,000 is to create 3.28 informational leaflets and other means 3.29 of marketing the Heritage Halls Museum 3.30 and Minnesota Aviation Hall of Fame in 3.31 Owatonna. Of this amount, $50,000 is 3.32 for a study on the feasibility and 3.33 economic impact of a Great Rivers of 3.34 the World Aquarium in St. Paul on the 3.35 Mississippi river. 3.36 (e) Duluth Technology Center 3.37 $200,000 is appropriated in 1999 for a 3.38 grant to the Duluth Technology Center 3.39 to continue development of software 3.40 business opportunities with particular 3.41 attention to encouraging location of 3.42 foreign software companies in 3.43 northeastern Minnesota. This is a 3.44 one-time appropriation and is not added 3.45 to the department's permanent budget 3.46 base. 3.47 (f) Chatfield Brass Band Music Lending 3.48 Library 3.49 $60,000 is appropriated in 1999 for a 3.50 grant to the Chatfield brass band music 3.51 lending library. The money must be 3.52 used for computer hardware and software 3.53 to catalog the music collection and 3.54 create a Web site. This is a one-time 3.55 appropriation and must not be added to 3.56 the agency's permanent budget base. 3.57 (g) Neighborhood Development Center, 3.58 Inc. 3.59 $90,000 is appropriated in 1999 for the 3.60 purpose of making a grant to the 3.61 Neighborhood Development Center, Inc. 4.1 The center shall use the grant for the 4.2 purpose of expanding and improving its 4.3 neighborhood and ethnic-based 4.4 entrepreneur training, lending, and 4.5 support programs in the poorest 4.6 communities of Minneapolis and St. 4.7 Paul. This appropriation is added to 4.8 the department's budget base. 4.9 (h) Public Arts St. Paul 4.10 $50,000 is appropriated in 1999 for a 4.11 grant to Public Arts Saint Paul for 4.12 planning for public art projects 4.13 throughout the city of St. Paul. This 4.14 is a one-time appropriation and is not 4.15 added to the department's permanent 4.16 budget base. 4.17 (i) City of St. Paul 4.18 $350,000 is appropriated in 1999 for a 4.19 grant to the city of St. Paul. Of this 4.20 amount, $250,000 is for the completion 4.21 of renovations to the University of 4.22 Minnesota Centennial Showboat to be 4.23 docked at Harriet Island. Of this 4.24 amount, $100,000 is for a study on the 4.25 relocation and expansion of the St. 4.26 Paul Farmers' Market at a site that 4.27 will interact with the Concord Street 4.28 business area. The study will consider 4.29 growth needs, job development 4.30 opportunities, and the creation of a 4.31 state-approved commercial kitchen. 4.32 This is a one-time appropriation and is 4.33 not added to the department's budget 4.34 base. 4.35 (j) Mississippi River Parkway 4.36 Commission 4.37 $15,000 is appropriated in 1999 for a 4.38 grant to the Mississippi River Parkway 4.39 Commission of Minnesota for the 4.40 Smithsonian River of Song community 4.41 promotion and Great River Road Ramble. 4.42 This is a one-time appropriation and is 4.43 not added to the department's budget 4.44 base. 4.45 (k) Biomass Energy Generation 4.46 $50,000 is appropriated in 1999 to 4.47 conduct financial analyses and project 4.48 due diligence exercises in cooperation 4.49 with private financial institutions and 4.50 the United States Department of 4.51 Agriculture for the purpose of 4.52 assembling a debt financing package for 4.53 a 75 megawatt electric energy 4.54 generation project using farm-grown 4.55 closed loop biomass. This is a 4.56 one-time appropriation and is not added 4.57 to the department's budget base. 4.58 (l) Fairmont Opera House 4.59 $200,000 is appropriated in 1999 for 4.60 accessibility improvements for the 4.61 Fairmont Opera House. This is a 5.1 one-time appropriation and is not added 5.2 to the department's budget base. 5.3 (m) Heritage Breed Chickens 5.4 $25,000 is appropriated in 1999 for 5.5 grants to county fairs to provide 5.6 premiums and prizes for heritage breeds 5.7 of chickens. This appropriation may 5.8 also be used to provide participating 5.9 4H and other youth groups up to 25 free 5.10 nursery hatchlings. This is a one-time 5.11 appropriation and is not added to the 5.12 department's budget base. 5.13 Sec. 3. MINNESOTA TECHNOLOGY, INC. -0- 100,000 5.14 $100,000 is appropriated in 1999 for 5.15 transfer to the Minnesota Technology, 5.16 Inc. fund for a grant to Minnesota 5.17 Project Innovation, Inc. to fund 5.18 Business Information and Technology 5.19 Centers, with one located at Metro 5.20 State University and one outside the 5.21 Twin Cities metropolitan area. This is 5.22 a one-time appropriation and is not 5.23 added to the agency's budget base. 5.24 Sec. 4. MINNESOTA WORLD TRADE CENTER 5.25 CORPORATION 155,000 -0- 5.26 $155,000 is appropriated in 1998 for 5.27 full and final payments of the 5.28 remaining 1988 debt of the Minnesota 5.29 World Trade Center Corporation which 5.30 was incurred for conference center 5.31 furniture, fixtures, and equipment. 5.32 This appropriation is available 5.33 immediately. This is a one-time 5.34 appropriation and is not added to the 5.35 department's permanent budget base. 5.36 Sec. 5. DEPARTMENT OF ECONOMIC 5.37 SECURITY 450,000 4,509,000 5.38 (a) Youthbuild 5.39 $200,000 is appropriated in 1998 for 5.40 the Youthbuild program under Minnesota 5.41 Statutes, sections 268.361 to 268.366. 5.42 A Minnesota Youthbuild program funded 5.43 under this section as authorized in 5.44 Minnesota Statutes, sections 268.361 to 5.45 268.366, qualifies as an approved 5.46 training program under Minnesota Rules, 5.47 part 5200.0930, subpart 1. The 5.48 appropriation is in addition to the 5.49 appropriation made by Laws 1997, 5.50 chapter 200, article 1, section 5, 5.51 subdivision 4, and is added to the 5.52 department's budget base. The 5.53 appropriation is available until June 5.54 30, 1999. 5.55 (b) Youth Intervention Programs 5.56 $250,000 is appropriated in 1998 for 5.57 grants to fund 50 youth intervention 5.58 programs under Minnesota Statutes, 5.59 section 268.30, and is in addition to 5.60 the appropriation made by Laws 1997, 6.1 chapter 200, article 1, section 5, 6.2 subdivision 4, and is added to the 6.3 department's budget base. It is 6.4 available until June 30, 1999. 6.5 (c) Centers for Independent Living 6.6 $523,000 in 1999 is for centers for 6.7 independent living. This appropriation 6.8 is to partially achieve the recommended 6.9 minimum funding level of $500,000 per 6.10 center and is in addition to the 6.11 appropriation provided in Laws 1997, 6.12 chapter 200, article 1, section 5, 6.13 subdivision 2. This appropriation is 6.14 added to the department's budget base. 6.15 The department shall allocate this 6.16 appropriation among the centers 6.17 equally, and shall not consider what 6.18 federal funds may be available to a 6.19 center in determining the allocations. 6.20 (d) Alien Labor Certification 6.21 $160,000 is appropriated in 1999 to 6.22 administer the alien labor 6.23 certification program. This is a 6.24 one-time appropriation and is not added 6.25 to the department's permanent budget 6.26 base. 6.27 (e) State Services for the Blind 6.28 $1,400,000 is appropriated in 1999 to 6.29 the State Services for the Blind to 6.30 update radio talking book receivers and 6.31 create a digital infrastructure for the 6.32 communication center. This is a 6.33 one-time appropriation and must be 6.34 matched dollar for dollar by a private 6.35 nonprofit organization for the same 6.36 purpose. This appropriation is 6.37 available until June 30, 2000. 6.38 (f) Regional Job Market Analysis 6.39 $200,000 is appropriated in 1999 to 6.40 retain the services of regional job 6.41 market analysts. This appropriation is 6.42 added to the department's budget base. 6.43 (g) Vocational Rehabilitation 6.44 $1,000,000 is appropriated in 1999 for 6.45 the vocational rehabilitation program 6.46 and is added to the appropriation for 6.47 rehabilitation services provided in 6.48 Laws 1997, chapter 200, article 1, 6.49 section 5, subdivision 2. This is a 6.50 one-time appropriation and is not added 6.51 to the department's budget base. 6.52 (h) Nontraditional Careers for Women 6.53 $250,000 is appropriated in 1999, and 6.54 is added to the department's budget 6.55 base, for grants to organizations for 6.56 programs that encourage and assist 6.57 women to enter nontraditional careers 6.58 in the trades and in manual and 6.59 technical occupations. To be eligible 7.1 for a grant under this section, a 7.2 program must include: (1) outreach to 7.3 girls and women through public and 7.4 private elementary, junior high and 7.5 high schools, appropriate community 7.6 organizations, or existing state and 7.7 county employment and training 7.8 programs. The outreach will consist of 7.9 general information concerning 7.10 opportunities for women in the trades, 7.11 manual, and technical occupations, 7.12 including specific fields where worker 7.13 shortages exist; and specific 7.14 information about training programs 7.15 offered. The outreach may include 7.16 printed or recorded information, 7.17 presentations to women and girls, 7.18 hands-on experiences for girls, or 7.19 ongoing contact with appropriate staff 7.20 and volunteers; or (2) assistance for 7.21 women to enter careers in the trades, 7.22 technical, and manual occupations as 7.23 follows: (a) training designed to 7.24 prepare women to succeed in 7.25 nontraditional occupations, conducted 7.26 by the grantee or in collaboration with 7.27 another institution. The training 7.28 shall cover the knowledge and skills 7.29 required for the trade, information 7.30 about on-the-job realities for women in 7.31 the particular trade, physical strength 7.32 and stamina training as needed to 7.33 increase women's eligibility for jobs 7.34 that require physical strength, 7.35 opportunities for developing workplace 7.36 problem solving skills, and information 7.37 about the current and projected future 7.38 job market and likely career paths; (b) 7.39 assistance with child care and 7.40 transportation during training, job 7.41 search, and the first two months of 7.42 employment for low-income women who do 7.43 not have other coverage for these 7.44 expenses; (c) job placement assistance 7.45 during and for at least two years after 7.46 completion of the training program; and 7.47 (d) job retention support. This may 7.48 take the form of mentorship programs, 7.49 support groups, or ongoing staff 7.50 contact for at least the first year of 7.51 placement in a job after completion of 7.52 training, and should include access to 7.53 job-related information, assistance 7.54 with workplace issues resolution, and 7.55 access to advocacy. 7.56 Programs must be accessible to MFIP-S 7.57 participants and other low-income 7.58 women. Factors that contribute to 7.59 accessibility include: (1) 7.60 affordability or financial aid 7.61 available for tuition and supplies; (2) 7.62 geographic proximity to low-income 7.63 neighborhoods, child care, and 7.64 transportation routes; and (3) 7.65 flexibility of hours per week and weeks 7.66 of duration of training programs to be 7.67 compatible with family needs and the 7.68 need for employment during training. 7.69 All state-funded employment and 7.70 training programs must include 8.1 information about opportunities for 8.2 women in nontraditional careers in the 8.3 trades, manual, and technical 8.4 occupations. 8.5 (i) Summer Youth Employment 8.6 $600,000 is appropriated in 1999 for 8.7 summer youth employment programs. This 8.8 is a one-time appropriation and is not 8.9 added to the department's budget base. 8.10 (j) Work Force Centers Pilot Project 8.11 $250,000 is appropriated in 1999 to 8.12 develop a pilot project that will 8.13 electronically link four department 8.14 workforce centers with four secondary 8.15 schools for the purpose of providing 8.16 secondary students and school 8.17 counselors with labor market 8.18 information and job-seeking skills 8.19 expertise to assist transition from 8.20 school to work. The commissioner shall 8.21 employ four people to implement this 8.22 project. The commissioner shall report 8.23 on the progress of the pilot project to 8.24 the legislature by May 1, 1999. The 8.25 commissioner shall make a final report 8.26 on the pilot projects to the 8.27 legislature by March 1, 2000. This is 8.28 a one-time appropriation and must not 8.29 be added to the agency's permanent 8.30 budget base. 8.31 (k) Advocating Change Together, Inc. 8.32 $126,000 is appropriated in 1999 for a 8.33 grant to Advocating Change Together, 8.34 Inc. (ACT). The grant must be used for 8.35 the training and empowerment of 8.36 individuals with developmental and 8.37 other mental health disabilities, the 8.38 maintenance of related data, or 8.39 technical assistance for work 8.40 advancement or additional workforce 8.41 training. This is a one-time 8.42 appropriation and is not added to the 8.43 department's permanent budget base. 8.44 Sec. 6. DEPARTMENT OF COMMERCE -0- 222,000 8.45 Summary by Fund 8.46 General -0- 22,000 8.47 Special Revenue Fund -0- 200,000 8.48 $22,000 is appropriated in 1999 from 8.49 the general fund for implementation of 8.50 the mortgage originator and servicer 8.51 regulation program established in House 8.52 File No. 2983, if enacted. This is 8.53 added to the department's budget base. 8.54 $200,000 is appropriated from the 8.55 contractor's recovery account in the 8.56 special revenue fund under Minnesota 8.57 Statutes 1996, section 326.975, 8.58 subdivision 1, to provide information 8.59 to consumers on residential 9.1 construction issues and is added to the 9.2 department's budget base. 9.3 Sec. 7. LABOR AND INDUSTRY -0- 100,000 9.4 $100,000 is appropriated in 1999 for 9.5 development of the standard disclosure 9.6 brochure, required in Minnesota 9.7 Statutes, section 181.636, subdivision 9.8 2, and to develop and implement a 9.9 public awareness campaign in 9.10 consultation with the councils created 9.11 under Minnesota Statutes, sections 9.12 3.922, 3.9223, 3.9225, and 3.9226, to 9.13 educate employees and employers on 9.14 their rights and duties under Minnesota 9.15 Statutes, section 181.636. The 9.16 commissioner shall report to the 9.17 legislature by January 15, 2000, on the 9.18 results of the campaign. Of this 9.19 appropriation, $81,000 is added to the 9.20 department's budget base. 9.21 Sec. 8. PUBLIC UTILITIES 9.22 COMMISSION 204,000 189,000 9.23 This appropriation is for costs 9.24 associated with the regulation of 9.25 utilities. 9.26 Sec. 9. DEPARTMENT OF 9.27 PUBLIC SERVICE -0- 130,000 9.28 This appropriation is for planning and 9.29 analysis of the regulation of the 9.30 electrical industry. 9.31 Sec. 10. MINNESOTA HISTORICAL 9.32 SOCIETY 124,000 925,000 9.33 (a) Salary Increases 9.34 $124,000 is appropriated in 1998 and 9.35 $450,000 is appropriated in 1999 for 9.36 salary increases. The fiscal year 1998 9.37 appropriation is available 9.38 immediately. This appropriation is 9.39 added to the historical society's 9.40 budget base. 9.41 (b) Lake Superior and Mississippi 9.42 Railroad 9.43 $100,000 is appropriated in 1999 for a 9.44 grant to the Lake Superior and 9.45 Mississippi railroad, a 501(c)(3) 9.46 organization, for the purchase and 9.47 installation of railroad ties. This is 9.48 a one-time appropriation and is not 9.49 added to the department's permanent 9.50 budget base. 9.51 (c) Hmong Archives 9.52 $100,000 is appropriated in 1999 for 9.53 start-up costs for the Hmong history 9.54 and culture archival project. The 9.55 society may make grants to nonprofit 9.56 organizations for planning, training, 9.57 and purchase of supplies and 9.58 equipment. Of this amount, $75,000 is 10.1 added to the society's budget base. 10.2 (d) Fridley Historical Museum 10.3 $50,000 is appropriated in 1999 to 10.4 refurbish the Fridley historical museum 10.5 in Fridley. This is a one-time 10.6 appropriation and is not added to the 10.7 department's permanent budget base. 10.8 (e) Winona County Historical Society 10.9 $50,000 is appropriated in 1999 for a 10.10 one-time grant to the Winona county 10.11 historical society for upgrade of 10.12 technology. The Winona county 10.13 historical society shall submit to the 10.14 Minnesota historical society a plan for 10.15 the use of this grant. As part of this 10.16 project, the Minnesota historical 10.17 society, in collaboration with the 10.18 Winona county historical society and 10.19 other county and local historical 10.20 societies, shall develop a plan for the 10.21 future use of technology by county and 10.22 local historical societies. This is a 10.23 one-time appropriation and is not added 10.24 to the department's permanent budget 10.25 base. 10.26 (f) St. Croix Valley Heritage Center 10.27 $75,000 is appropriated in 1999 for a 10.28 grant to the St. Croix Valley Heritage 10.29 Coalition, Inc., for initial project 10.30 design for the St. Croix Valley 10.31 Heritage Center. This is a one-time 10.32 appropriation and is not added to the 10.33 department's permanent budget base. 10.34 (g) Grimm Farmhouse 10.35 $75,000 is appropriated in 1999 for a 10.36 one-time grant to Hennepin parks for 10.37 the design and stabilization of the 10.38 Wendelin Grimm farmhouse. This 10.39 appropriation is available until June 10.40 30, 1999. This appropriation must be 10.41 matched by an equal amount from 10.42 nonstate sources. This is a one-time 10.43 appropriation and is not added to the 10.44 budget base. 10.45 (h) Metropolitan Multitype Library 10.46 Consortium 10.47 $25,000 is appropriated in 1999 for a 10.48 grant to the metropolitan multitype 10.49 library consortium for copying and 10.50 making available to the 11 greater 10.51 Minnesota regional public library 10.52 systems and the St. Paul and 10.53 Minneapolis libraries, through the 10.54 Minnesota center for the book, a series 10.55 of video cassette tapes of interviews 10.56 with Minnesota authors, for the 10.57 production and programming costs of the 10.58 northern lights cable program on which 10.59 the Minnesota authors are interviewed, 10.60 and for operating costs the consortium 10.61 incurs as a result of this provision. 11.1 Libraries that receive a copy of the 11.2 series shall make the video cassettes 11.3 readily available to teachers and other 11.4 members of the public interested in 11.5 learning about the work and lives of 11.6 Minnesota authors. This is a one-time 11.7 appropriation and is not added to the 11.8 budget base. 11.9 Sec. 11. COUNCIL ON BLACK 11.10 MINNESOTANS -0- 75,000 11.11 $75,000 is appropriated in 1999 to 11.12 assist in planning and coordinating 11.13 observances of the Martin Luther King, 11.14 Jr. holiday and other events honoring 11.15 Martin Luther King, Jr. This is a 11.16 one-time appropriation and is not added 11.17 to the council's budget base. 11.18 Sec. 12. INDIAN AFFAIRS COUNCIL -0- 80,000 11.19 $80,000 is appropriated in 1999 to 11.20 assist in funding the 50th annual 11.21 conference of the Interstate Indian 11.22 Council to be held in Minnesota in 11.23 1999. This is a one-time appropriation 11.24 and is not added to the council's 11.25 permanent budget base. This 11.26 appropriation is available only if 11.27 matched on at least a dollar-for-dollar 11.28 basis from nonstate sources. 11.29 Sec. 13. ADMINISTRATION 50,000 735,000 11.30 (a) Little Falls 11.31 $300,000 is appropriated in 1999 for a 11.32 grant to the city of Little Falls to 11.33 develop programming and marketing 11.34 plans, and to equip a conference center 11.35 and retreat site on the Mississippi 11.36 river in Little Falls. This is a 11.37 one-time appropriation and is not added 11.38 to the department's permanent budget 11.39 base. 11.40 (b) Montevideo 11.41 $185,000 is appropriated in 1999 for a 11.42 grant to the city of Montevideo for 11.43 exterior improvements to the city's 11.44 historic railroad depot and for design 11.45 and development of a related parking 11.46 area, trailhead, and public facilities 11.47 at the site, subject to the 11.48 requirements of Minnesota Statutes, 11.49 section 16A.695. This is a one-time 11.50 appropriation and is not added to the 11.51 department's permanent budget base. 11.52 (c) Walnut Grove 11.53 $50,000 is appropriated in 1999 for a 11.54 grant to the city of Walnut Grove for 11.55 capital improvements to the Laura 11.56 Ingalls Wilder pageant facilities. 11.57 This is a one-time appropriation and is 11.58 not added to the department's permanent 11.59 budget base. 12.1 (d) Columbia Heights 12.2 $100,000 is appropriated in 1999 for a 12.3 grant to the city of Columbia Heights 12.4 for Central Avenue streetscape 12.5 improvements. This is a one-time 12.6 appropriation and is not added to the 12.7 department's permanent budget base. 12.8 (e) Stewart 12.9 $100,000 is appropriated in 1999 for a 12.10 grant to the city of Stewart for the 12.11 final draw down design for the storm 12.12 sewer project. This is a one-time 12.13 appropriation and is not added to the 12.14 department's permanent budget base. 12.15 (f) Blackduck 12.16 $50,000 is appropriated in 1998 for a 12.17 grant to the city of Blackduck to help 12.18 restore and stabilize eight buildings 12.19 at Camp Rabideau in Chippewa National 12.20 Forest. This is a one-time 12.21 appropriation and is not added to the 12.22 department's budget base. This 12.23 appropriation is available until June 12.24 30, 1999. 12.25 Sec. 14. METROPOLITAN COUNCIL -0- 250,000 12.26 $250,000 is appropriated in 1999 for 12.27 corridor planning pilot project grants, 12.28 as provided in section 63. This is a 12.29 one-time appropriation and is not added 12.30 to the department's permanent budget 12.31 base. 12.32 Sec. 15. [BOUNDARY EXTENSION.] 12.33 The boundaries of the North Mississippi 12.34 Regional Park are extended to include 12.35 49th Avenue North and adjacent property 12.36 from Humboldt Avenue West to the 12.37 Mississippi river. Funds appropriated 12.38 for the North Mississippi Regional Park 12.39 may be expended to create a trail or 12.40 greenway as part of the Hennepin county 12.41 multijurisdictional program on 49th 12.42 Avenue North and adjacent property as 12.43 an entrance to the North Mississippi 12.44 Regional Park. 12.45 Sec. 16. Minnesota Statutes 1996, section 16B.06, 12.46 subdivision 2, is amended to read: 12.47 Subd. 2. [VALIDITY OF STATE CONTRACTS.] (a) A state 12.48 contract or lease is not valid and the state is not bound by it 12.49 until: 12.50 (1) it has first been executed by the head of the agency or 12.51 a delegate which is a party to the contract; 12.52 (2) it has been approved by the commissioner or a delegate, 12.53 under this section; 13.1 (3) it has been approved by the attorney general or a 13.2 delegate as to form and execution; and 13.3 (4) the account system shows an allotment or encumbrance 13.4 balance for the full amount of the contract liability. 13.5 (b) Paragraph (a), clause (2), does not apply to contracts 13.6 between state agencies, contracts awarding grants,orcontracts 13.7 making loans, or bond purchase agreements by the department of 13.8 trade and economic development or the Minnesota public 13.9 facilities authority. 13.10 (c) The head of the agency may delegate the execution of 13.11 specific contracts or specific types of contracts to a 13.12 designated subordinate within the agency if the delegation has 13.13 been approved by the commissioner of administration and filed 13.14 with the secretary of state. The fully executed copy of every 13.15 contract or lease must be kept on file at the contracting agency. 13.16 Sec. 17. Minnesota Statutes 1996, section 16B.08, 13.17 subdivision 7, is amended to read: 13.18 Subd. 7. [SPECIFIC PURCHASES.] (a) The following may be 13.19 purchased without regard to the competitive bidding requirements 13.20 of this chapter: 13.21 (1) merchandise for resale at state park refectories or 13.22 facility operations; 13.23 (2) farm and garden products, which may be sold at the 13.24 prevailing market price on the date of the sale; 13.25 (3) meat for other state institutions from the technical 13.26 college maintained at Pipestone by independent school district 13.27 No. 583;and13.28 (4) products and services from the Minnesota correctional 13.29 facilities; and 13.30 (5) merchandise for resale at office of tourism locations. 13.31 (b) Supplies, materials, equipment, and utility services 13.32 for use by a community-based residential facility operated by 13.33 the commissioner of human services may be purchased or rented 13.34 without regard to the competitive bidding requirements of this 13.35 chapter. 13.36 (c) Supplies, materials, or equipment to be used in the 14.1 operation of a hospital licensed under sections 144.50 to 144.56 14.2 that are purchased under a shared service purchasing arrangement 14.3 whereby more than one hospital purchases supplies, materials, or 14.4 equipment with one or more other hospitals, either through one 14.5 of the hospitals or through another entity, may be purchased 14.6 without regard to the competitive bidding requirements of this 14.7 chapter if the following conditions are met: 14.8 (1) the hospital's governing authority authorizes the 14.9 arrangement; 14.10 (2) the shared services purchasing program purchases items 14.11 available from more than one source on the basis of competitive 14.12 bids or competitive quotations of prices; and 14.13 (3) the arrangement authorizes the hospital's governing 14.14 authority or its representatives to review the purchasing 14.15 procedures to determine compliance with these requirements. 14.16 Sec. 18. Minnesota Statutes 1996, section 16B.65, 14.17 subdivision 7, is amended to read: 14.18 Subd. 7. [CONTINUING EDUCATION.] Subject to sections 14.19 16B.59 to 16B.75, the commissioner may by rule establish or 14.20 approve continuing education programs for municipal building 14.21 officials dealing with matters of building code administration, 14.22 inspection, and enforcement. 14.23 Effective January 1, 1985, each person certified as a 14.24 building official for the state must satisfactorily complete 14.25 applicable educational programs established or approved by the 14.26 commissioner every three calendar years to retain certification, 14.27 including at least three hours in programs relating to the state 14.28 energy code. 14.29 Each person certified as a building official must submit in 14.30 writing to the commissioner an application for renewal of 14.31 certification within 60 days of the last day of the third 14.32 calendar year following the last certificate issued. Each 14.33 application for renewal must be accompanied by proof of 14.34 satisfactory completion of minimum continuing education 14.35 requirements and the certification renewal fee established by 14.36 the commissioner. 15.1 For persons certified prior to January 1, 1985, the first 15.2 three-year period commences January 1, 1985. 15.3 Sec. 19. Minnesota Statutes 1997 Supplement, section 15.4 115C.09, subdivision 3f, is amended to read: 15.5 Subd. 3f. [REIMBURSEMENTS; SMALL GASOLINE RETAILERS.] (a) 15.6 As used in this subdivision, "small gasoline retailer" means 15.7 aresponsible persontank owner or operator who ownsno more15.8thanonly one location in this or any other state where motor 15.9 fuel was dispensed to the public into motor vehicles, 15.10 watercraft, or aircraftin the previous year, and who dispensed 15.11 motor fuel at that location. 15.12 (b) Notwithstanding subdivision 1, paragraph (b), clause 15.13 (1), for eligible applicants who are small gasoline retailers 15.14 that have dispensed less than 500,000 gallons of motor fuel 15.15 during the most recent calendar year that petroleum products 15.16 were dispensed at the location owned by the retailer, the board 15.17 shall reimburse the applicant for 90 percent of the applicant's 15.18 total reimbursable cost for tank removal projects started after 15.19 January 1,19971995, including, but not limited to, tank 15.20 removal, closure in place, backfill, resurfacing, and utility 15.21 service restoration costs, regardless of whether a release has 15.22 occurred at the site, provided that the tank involved is a 15.23 regulated underground storage tank. 15.24 (c) Notwithstanding subdivision 1, paragraph (b), clause 15.25 (1), for eligible applicants who are small gasoline retailers 15.26 that have dispensed less than 250,000 gallons of motor fuel 15.27 during the most recent calendar year that petroleum products 15.28 were dispensed at the location owned by the retailer, provided 15.29 that the tank involved is a regulated underground storage tank, 15.30 the board shall reimburse the applicant for 95 percent of the 15.31 following costs: 15.32 (1) tank removal costs described in paragraph (b); and 15.33 (2) petroleum contamination cleanup as provided under 15.34 subdivision 1 incurred during or after the tank removal project. 15.35 (d) An applicant who owns only one location in this or any 15.36 other state where motor fuel was dispensed to the public into 16.1 motor vehicles, watercraft, or aircraft but who did not dispense 16.2 motor fuel at that location may qualify as a small gasoline 16.3 retailer if: 16.4 (1) the previous tank owner or operator at the location was 16.5 a small gasoline retailer that dispensed less than 500,000 16.6 gallons of motor fuel during the most recent calendar year that 16.7 petroleum products were dispensed at the location; and 16.8 (2) the applicant acquired legal or equitable title to the 16.9 property after January 1, 1995. 16.10 (e) This subdivision expires January 1, 2000. 16.11 Sec. 20. Minnesota Statutes 1996, section 115C.09, is 16.12 amended by adding a subdivision to read: 16.13 Subd. 3g. [REIMBURSEMENTS; SMALL BUSINESS OWNERS.] (a) As 16.14 used in this subdivision, "small business owner" means a person: 16.15 (1) who has no more than $250,000 per year in sales; 16.16 (2) who owns no more than one location where motor fuel was 16.17 previously dispensed to the public into motor vehicles; 16.18 (3) who did not dispense motor fuel at that location; and 16.19 (4) whose tanks were never registered with the state. 16.20 (b) Notwithstanding subdivision 1, paragraph (b), clause 16.21 (1), the board shall reimburse an eligible applicant who is a 16.22 small business owner for 90 percent of the applicant's total 16.23 reimbursable cost for tank removal projects started after 16.24 January 1, 1998, including, but not limited to, tank removal, 16.25 closure in place, backfill, resurfacing, and utility service 16.26 restoration costs, regardless of whether a release has occurred 16.27 at the site, and provided that the person does not intend to 16.28 replace the tanks. 16.29 Sec. 21. Minnesota Statutes 1996, section 116.182, 16.30 subdivision 1, is amended to read: 16.31 Subdivision 1. [DEFINITIONS.] (a) For the purposes of this 16.32 section, the terms defined in this subdivision have the meanings 16.33 given them. 16.34 (b) "Agency" means the pollution control agency. 16.35 (c) "Authority" means the public facilities authority 16.36 established in section 446A.03. 17.1 (d) "Commissioner" means the commissioner of the pollution 17.2 control agency. 17.3 (e) "Essential project components" means those components 17.4 of a wastewater disposal system that are necessary to convey or 17.5 treat a municipality's existing wastewater flows and loadings, 17.6 and future wastewater flows and loadings based on 50 percent of 17.7 the projected residential growth of the municipality for a 17.8 20-year period. 17.9 (f) "Municipality" means a county, home rule charter or 17.10 statutory city, town, the metropolitan council, an Indian tribe 17.11 or an authorized Indian tribal organization; or any other 17.12 governmental subdivision of the state responsible by law for the 17.13 prevention, control, and abatement of water pollution in any 17.14 area of the state. 17.15 (g) "Outstanding resource value waters" are those that have 17.16 high water quality, wilderness characteristics, unique 17.17 scientific or ecological significance, exceptional recreation 17.18 value, or other special qualities that warrant special 17.19 protection. 17.20 (h) "Outstanding international resource value waters" are 17.21 the surface waters of the state in the Lake Superior Basin, 17.22 other than Class 7 waters and those waters designated as 17.23 outstanding resource value waters. 17.24 Sec. 22. Minnesota Statutes 1996, section 116.182, is 17.25 amended by adding a subdivision to read: 17.26 Subd. 3a. [NOTIFICATION OF OTHER GOVERNMENT UNITS.] In 17.27 addition to other applicable statutes or rules that are required 17.28 to receive financial assistance consistent with this 17.29 subdivision, the commissioner may not approve or certify a 17.30 project to the public facilities authority for wastewater 17.31 financial assistance unless the following requirements are met: 17.32 (1) prior to the initiation of the public facilities 17.33 planning process for a new wastewater treatment system, the 17.34 project proposer gives written notice to all municipalities as 17.35 defined in 116.82 within ten miles of the proposed project 17.36 service area, including the county in which the project is 18.1 located, the office of strategic and long-range planning, and 18.2 the pollution control agency. The notice shall state the 18.3 proposer's intent to begin the facilities planning process and 18.4 provide a description of the need for the proposed project. The 18.5 notice also shall request a response within 30 days of the 18.6 notice date from all government units who wish to receive and 18.7 comment on the future facilities plan for the proposed project; 18.8 (2) during development of the facility plan's analysis of 18.9 service alternatives, the project proposer must request 18.10 information from all municipalities and sanitary districts which 18.11 have existing systems that have current capacity to meet the 18.12 proposer's needs or can be upgraded to meet those needs. At a 18.13 minimum, the proposer must notify in writing those 18.14 municipalities and sanitary districts whose corporate limits or 18.15 boundaries are within three miles of the proposed project's 18.16 service area; 18.17 (3) 60 days prior to the municipality's public hearing on 18.18 the facilities plan, a copy of the draft facilities plan and 18.19 notice of the public hearing on the facilities plan must be 18.20 given to the local government units who previously expressed 18.21 interest in the proposed project under clause (1); 18.22 (4) for a proposed project located or proposed to be 18.23 located outside the corporate limits of a city, the affected 18.24 county has certified to the agency that the proposed project is 18.25 consistent with the applicable county comprehensive plan and 18.26 zoning and subdivision regulations; 18.27 (5) copies of the notifications required under clauses (1) 18.28 and (2), as well as the certification from the county and a 18.29 summary of the comments received, must be included by the 18.30 municipality in the submission of its facilities plan to the 18.31 pollution control agency, along with other required items as 18.32 specified in the agency's rules; 18.33 (6) at any time within the 60-day period specified in 18.34 clause (3), any city in the state within three miles of a 18.35 proposed project located outside the corporate limits of a city 18.36 may file a written objection with the pollution control agency. 19.1 An objection makes the proposed project ineligible for grant 19.2 funding until the city withdraws its objection or the pollution 19.3 control agency board certifies that the proposed project is the 19.4 only feasible and cost-effective option available for servicing 19.5 the proposed area; and 19.6 (7) this subdivision does not apply to the western Lake 19.7 Superior sanitary district or the metropolitan council. 19.8 Sec. 23. Minnesota Statutes 1996, section 116J.415, 19.9 subdivision 5, is amended to read: 19.10 Subd. 5. [LOAN CRITERIA.] The following criteria apply to 19.11 loans made under the challenge grant program: 19.12 (1) loans must be made to businesses that are not likely to 19.13 undertake a project for which loans are sought without 19.14 assistance from the challenge grant program; 19.15 (2) a loan must be used for a project designed principally 19.16 to benefit low-income persons through the creation of job or 19.17 business opportunities for them; 19.18 (3) the minimum loan is $5,000 and the maximum 19.19 is$100,000$200,000; 19.20 (4) a loan may not exceed 50 percent of the total cost of 19.21 an individual project; 19.22 (5) a loan may not be used for a retail development 19.23 project; and 19.24 (6) a business applying for a loan, except a 19.25 microenterprise loan under subdivision 6, must be sponsored by a 19.26 resolution of the governing body of the local governmental unit 19.27 within whose jurisdiction the project is located. 19.28 Sec. 24. [116J.544] [DEFINITIONS.] 19.29 Subdivision 1. [TERMS.] For the purposes of sections 19.30 116J.544 to 116J.545, the following terms have the meanings 19.31 given them. 19.32 Subd. 2. [BOARD.] "Board" means the Minnesota film board. 19.33 Subd. 3. [COMMISSIONER.] "Commissioner" means the 19.34 commissioner of trade and economic development. 19.35 Sec. 25. [116J.5445] [DUTIES; REPORTS.] 19.36 The commissioner shall enter into a contract with the board 20.1 to implement the revolving loan fund. The contract shall 20.2 include a description of the board's responsibilities in 20.3 reviewing, approving, and monitoring of projects funded by the 20.4 loan fund. The commissioner shall submit an annual report to 20.5 the legislature by January 1 of each year describing each loan 20.6 made under section 116J.545, including information on the 20.7 production and distribution status of each project for which a 20.8 loan has been made, the repayment status of each loan, the 20.9 number of jobs created in Minnesota, the amount of expenditures 20.10 in Minnesota, and the amount and source of matching funds. 20.11 Sec. 26. [116J.545] [MINNESOTA FILM AND TELEVISION 20.12 REVOLVING LOAN FUND.] 20.13 Subdivision 1. [ELIGIBLE PROJECTS.] An eligible project is 20.14 a feature film, long form television project, or television 20.15 series. At least one of the project's principals must be a 20.16 Minnesota resident. The principals are defined as the project's 20.17 director, producer, or company chief executive officer. 20.18 Subd. 2. [REVOLVING LOAN FUND.] The commissioner shall 20.19 establish a revolving loan fund in the special revenue fund for 20.20 the purpose of making loans to finance eligible projects. Loan 20.21 applications given preliminary approval by the board must be 20.22 forwarded to the commissioner for final approval. Funds for the 20.23 loan will be disbursed by the commissioner to the board after 20.24 this approval. 20.25 Subd. 3. [BUSINESS LOAN CRITERIA.] (a) The criteria in 20.26 this subdivision apply to loans made under the Minnesota film 20.27 and television revolving loan fund. 20.28 (b) Loans must only be made for projects that the board 20.29 determines would not be undertaken without assistance from the 20.30 loan fund. 20.31 (c) The minimum loan is $50,000 and the maximum loan is 20.32 $500,000. The board will determine the interest rate, terms, 20.33 maturity, and collateral for each loan. The interest rate must 20.34 be at least three percent. 20.35 (d) The amount of a loan may not exceed 50 percent of each 20.36 project. 21.1 (e) Funded projects will be required to spend 120 percent 21.2 of the amount of the loan in Minnesota. These expenditures may 21.3 include direct production or postproduction costs as well as 21.4 talent, producer, or director fees. 21.5 (f) The commissioner shall adopt rules to implement this 21.6 section. 21.7 Subd. 4. [REVOLVING LOAN FUND ADMINISTRATION.] (a) Loan 21.8 repayment amounts must be returned by the board to the 21.9 commissioner and deposited in a revolving loan fund for 21.10 additional loans to be made by the board. 21.11 (b) Administrative expenses of the board incurred to 21.12 operate the loan program, not to exceed $100,000 per year, may 21.13 be paid to the board from the revolving loan fund. 21.14 Subd. 5. [REPORTING REQUIREMENTS.] The board shall: 21.15 (1) submit an annual report to the commissioner by 21.16 September 30 of each year that includes a description of 21.17 projects funded as of June 30 of the same year. The report 21.18 shall include a description of projects supported by the 21.19 revolving loan fund, the production and distribution status of 21.20 each project for which a loan has been made, the terms of each 21.21 loan and the repayment status of each loan, the number of jobs 21.22 created in Minnesota and the amount of expenditures in 21.23 Minnesota, and the amount and source of matching funds. A 21.24 description of the administrative expenses incurred by the board 21.25 shall also be included; and 21.26 (2) provide for an independent annual audit to be performed 21.27 in accordance with generally accepted accounting practices and 21.28 auditing standards and submit a copy of each annual audit report 21.29 to the commissioner. 21.30 Sec. 27. Minnesota Statutes 1996, section 116J.553, 21.31 subdivision 2, is amended to read: 21.32 Subd. 2. [REQUIRED CONTENT.] (a) The commissioner shall 21.33 prescribe and provide the application form. Except as provided 21.34 in paragraphs (b) and (c), the application must include at least 21.35 the following information: 21.36 (1) identification of the site; 22.1 (2) an approved response action plan for the site, 22.2 including the results of engineering and other tests showing the 22.3 nature and extent of the release or threatened release of 22.4 contaminants at the site; 22.5 (3) a detailed estimate, along with necessary supporting 22.6 evidence, of the total cleanup costs for the site; 22.7 (4) an appraisal of the current market value of the 22.8 property, separately taking into account the effect of the 22.9 contaminants on the market value, prepared by a qualified 22.10 independent appraiser using accepted appraisal methodology; 22.11 (5) an assessment of the development potential or likely 22.12 use of the site after completion of the response action plan, 22.13 including any specific commitments from third parties to 22.14 construct improvements on the site; 22.15 (6) the manner in which the municipality will meet the 22.16 local match requirement; and 22.17 (7) any additional information or material that the 22.18 commissioner prescribes. 22.19 (b) An application for a grant under section 116J.554, 22.20 subdivision 1, paragraph (b), must include a detailed estimate 22.21 of the cost of the actions for which the grant is sought, but 22.22 need not include the information specified in paragraph (a), 22.23 clauses (2) to (4) and (6). 22.24 (c) A response action plan is not required as a condition 22.25 to receive a grant under section 116J.554, subdivision 1, 22.26 paragraph (c). 22.27 Sec. 28. Minnesota Statutes 1996, section 116L.03, 22.28 subdivision 5, is amended to read: 22.29 Subd. 5. [TERMS AND COMPENSATION.] The terms of appointed 22.30 members shall be for four years except for the initial 22.31 appointments. The initial appointments of the governor shall 22.32 have the following terms: two members each for one, two, three, 22.33 and four years. Compensation of members shall be as provided in 22.34 section 15.0575, subdivision 3. 22.35 Sec. 29. Minnesota Statutes 1996, section 179A.16, 22.36 subdivision 1, is amended to read: 23.1 Subdivision 1. [NONESSENTIAL EMPLOYEES.] An exclusive 23.2 representative or an employer of a unit of employees other than 23.3 essential employees may request interest arbitration by 23.4 providing written notice of the request to the other party and 23.5 the commissioner. The written request for arbitration must 23.6 specify the items to be submitted to arbitration and whether 23.7 conventional, final-offer total-package, or final-offer 23.8 item-by-item arbitration is contemplated by the request. 23.9 Except for city attorney legal units, the items to be 23.10 submitted to arbitration and the form of arbitration to be used 23.11 are subject to mutual agreement. If an agreement to arbitrate 23.12 is reached, it must be reduced to writing and a copy of the 23.13 agreement filed with the commissioner. A failure to respond, or 23.14 to reach agreement on the items or form of arbitration, within 23.15 15 days of receipt of the request to arbitrate constitutes a 23.16 rejection of the request. 23.17 Sec. 30. Minnesota Statutes 1996, section 179A.16, is 23.18 amended by adding a subdivision to read: 23.19 Subd. 1a. [CITY ATTORNEY LEGAL UNITS.] An exclusive 23.20 representative or employer of a city attorney legal unit may 23.21 petition for binding interest arbitration by filing a written 23.22 request with the other party and the commissioner. The written 23.23 request must specify the items that the party wishes to submit 23.24 to binding arbitration. Within 15 days of the request, the 23.25 commissioner shall determine whether further mediation of the 23.26 dispute would be appropriate and shall only certify matters to 23.27 the board in cases where the commissioner believes that both 23.28 parties have made substantial, good faith bargaining efforts and 23.29 that an impasse has occurred. 23.30 Sec. 31. Minnesota Statutes 1996, section 179A.16, 23.31 subdivision 3, is amended to read: 23.32 Subd. 3. [PROCEDURE.] Within 15 days from the time the 23.33 commissioner has certified a matter to be ready for binding 23.34 arbitration because of an agreement under subdivision 1 or in 23.35 accordance with subdivision 1a or 2, both parties shall submit 23.36 their final positions on the items in dispute. In the event of 24.1 a dispute over the items to be submitted to binding arbitration 24.2 involving essential employees, the commissioner shall determine 24.3 the items to be decided by arbitration based on the efforts to 24.4 mediate the dispute and the positions submitted by the parties 24.5 during the course of those efforts. The parties may stipulate 24.6 items to be excluded from arbitration. 24.7 Sec. 32. Minnesota Statutes 1996, section 179A.16, 24.8 subdivision 9, is amended to read: 24.9 Subd. 9. [NO ARBITRATION.] Failure to reach agreement on 24.10 employer payment of, or contributions toward, premiums for group 24.11 insurance coverage of retired employees is not subject to 24.12 interest arbitration procedures under this section, except for 24.13 units of essential employees and city attorney legal units. 24.14 Sec. 33. Minnesota Statutes 1996, section 179A.18, 24.15 subdivision 1, is amended to read: 24.16 Subdivision 1. [WHEN AUTHORIZED.] Essential employees may 24.17 not strike. Except as otherwise provided by subdivision 2 and 24.18 section 179A.17, subdivision 2, other public employees may 24.19 strike only under the following circumstances: 24.20 (1)(a) the collective bargaining agreement between their 24.21 exclusive representative and their employer has expired or, if 24.22 there is no agreement, impasse under section 179A.17, 24.23 subdivision 2, has occurred; and 24.24 (b) the exclusive representative and the employer have 24.25 participated in mediation over a period of at least 45 days, 24.26 provided that the mediation period established by section 24.27 179A.17, subdivision 2, governs negotiations under that section, 24.28 and provided that for the purposes of this subclause the 24.29 mediation period commences on the day following receipt by the 24.30 commissioner of a request for mediation; or 24.31 (2) the employer violates section 179A.13, subdivision 2, 24.32 clause (9); or 24.33 (3) in the case of city attorney legal units, neither the 24.34 exclusive representative nor the employer has petitioned for 24.35 binding interest arbitration in accordance with section 179A.16; 24.36 or 25.1 (4) in the case of state employees,: 25.2 (a) the legislative commission on employee relations has 25.3 rejected a negotiated agreement or arbitration decision during a 25.4 legislative interim; or 25.5 (b) the entire legislature rejects or fails to ratify a 25.6 negotiated agreement or arbitration decision, which has been 25.7 approved during a legislative interim by the legislative 25.8 commission on employee relations, at a special legislative 25.9 session called to consider it, or at its next regular 25.10 legislative session, whichever occurs first. 25.11 Sec. 34. [181.636] [EMPLOYEE NOTICE OF RIGHTS; FOREIGN 25.12 LANGUAGES.] 25.13 Subdivision 1. [EMPLOYER DEFINED.] For the purposes of 25.14 this section, "employer" means any person employing one or more 25.15 employees. 25.16 Subd. 2. [DISCLOSURE FORM.] The commissioner of labor and 25.17 industry shall provide a single brochure for use in making the 25.18 disclosure required in subdivision 3. The single form must 25.19 contain the disclosure in English and in ten other languages 25.20 that the commissioner determines are the most commonly spoken as 25.21 the dominant language by Minnesota employees. 25.22 Subd. 3. [EMPLOYEE RIGHTS NOTICE.] An employer shall 25.23 provide a brochure provided by the department of labor and 25.24 industry within ten days of the first day of work that notifies 25.25 the job offeree that: 25.26 (1) there are state and federal laws that regulate minimum 25.27 wages and maximum hours of work; prohibit unsafe working 25.28 conditions and discrimination; prohibit employers from making 25.29 false statements in order to induce someone into employment; and 25.30 require the terms and conditions of employment be provided in 25.31 writing to migrant farm workers and persons employed in the food 25.32 processing industry; and 25.33 (2) the employee may call the department of labor and 25.34 industry and the department of human rights at a telephone 25.35 number indicated on the brochure to learn about those laws and 25.36 the employee's rights. 26.1 Subd. 4. [PENALTY.] The department of labor and industry 26.2 shall warn an employer for the employer's first violation of 26.3 this section and impose a penalty of up to $200 for each 26.4 subsequent violation. If the commissioner determines that an 26.5 employer has engaged in a pattern of willful violation of this 26.6 section, the commissioner may impose a penalty of up to $500 for 26.7 each subsequent violation. 26.8 Sec. 35. Minnesota Statutes 1996, section 181.64, is 26.9 amended to read: 26.10 181.64 [FALSE STATEMENTS AS INDUCEMENT TO ENTERING 26.11 EMPLOYMENT.] 26.12 It shall be unlawful for any person, partnership, company, 26.13 corporation, association, or organization of any kind, doing 26.14 business in this state, directly or through any agent or 26.15 attorney, to induce, influence, persuade, or engage any person 26.16to change from one place to another in this state, or to change26.17from any place in any state, territory, or country to any place26.18in this state,to work in any branch of labor through or by 26.19 means of knowingly false representations, whether spoken, 26.20 written, or advertised in printed form, concerning the kind or 26.21 character of such work, the compensation therefor, the sanitary 26.22 conditions relating to or surrounding it, or failure to state in 26.23 any advertisement, proposal, or contract for the employment that 26.24 there is a strike or lockout at the place of the proposed 26.25 employment, when in fact such strike or lockout then actually 26.26 exists in such employment at such place. Any such unlawful acts 26.27 shall be deemed a false advertisement or misrepresentation for 26.28 the purposes of this section and section 181.65. 26.29 Sec. 36. Minnesota Statutes 1996, section 216B.2423, 26.30 subdivision 1, is amended to read: 26.31 Subdivision 1. [MANDATE.] A public utility, as defined in 26.32 section 216B.02, subdivision 4, that operates a nuclear-powered 26.33 electric generating plant within this state must construct and 26.34 operate, purchase, or contract to construct and operate: (1) 26.35 225 megawatts of electric energy installed capacity generated by 26.36 wind energy conversion systems within the state by December 31, 27.1 1998; and (2) an additional 200 megawatts of installed capacity 27.2 so generated within the state by December 31, 2002. 27.3 For the purpose of this section, "wind energy conversion 27.4 system" has the meaning given it in section 216C.06, subdivision 27.5 12. 27.6 Sec. 37. Minnesota Statutes 1996, section 326.87, 27.7 subdivision 2, is amended to read: 27.8 Subd. 2. [HOURS.] A qualifying person of a licensee must 27.9 provide proof of completion ofseveneight hours of continuing 27.10 education per year. At least three hours of continuing 27.11 education per year must relate to requirements of the state 27.12 energy code. To the extent the commissioner considers it 27.13 appropriate, courses or parts of courses may be considered to 27.14 satisfy both continuing education requirements under this 27.15 section and continuing real estate education requirements. 27.16 Sec. 38. Minnesota Statutes 1996, section 326.975, 27.17 subdivision 1, is amended to read: 27.18 Subdivision 1. [GENERALLY.] (a) In addition to any other 27.19 fees, each applicant for a license under sections 326.83 to 27.20 326.98 shall pay a fee to the contractor's recovery fund. The 27.21 contractor's recovery fund is created in the state treasury and 27.22 must be administered by the commissioner in the manner and 27.23 subject to all the requirements and limitations provided by 27.24 section 82.34 with the following exceptions: 27.25 (1) each licensee who renews a license shall pay in 27.26 addition to the appropriate renewal fee an additional fee which 27.27 shall be credited to the contractor's recovery fund. The amount 27.28 of the fee shall be based on the licensee's gross annual 27.29 receipts for the licensee's most recent fiscal year preceding 27.30 the renewal, on the following scale: 27.31 Fee Gross Receipts 27.32 $100 under $1,000,000 27.33 $150 $1,000,000 to $5,000,000 27.34 $200 over $5,000,000 27.35 Any person who receives a new license shall pay a fee based on 27.36 the same scale; 28.1 (2) thesolepurpose of this fund is to compensate any 28.2 aggrieved owner or lessee of residential property who obtains a 28.3 final judgment in any court of competent jurisdiction against a 28.4 licensee licensed under section 326.84, on grounds of 28.5 fraudulent, deceptive, or dishonest practices, conversion of 28.6 funds, or failure of performance or breach of warranty arising 28.7 directly out of any transaction when the judgment debtor was 28.8 licensed and performed any of the activities enumerated under 28.9 section 326.83, subdivision 19, on the owner's residential 28.10 property or on residential property rented by the lessee, or on 28.11 new residential construction which was never occupied prior to 28.12 purchase by the owner, or which was occupied by the licensee for 28.13 less than one year prior to purchase by the owner, and which 28.14 cause of action arose on or after April 1, 1994; 28.15 (3) nothing may obligate the fund for more than $50,000 per 28.16 claimant, nor more than $50,000 per licensee;and28.17 (4) nothing may obligate the fund for claims based on a 28.18 cause of action that arose before the licensee paid the recovery 28.19 fund fee set in clause (1), or as provided in section 326.945, 28.20 subdivision 3; and 28.21 (5) appropriations from this fund may be made for expenses 28.22 of providing information to consumers on residential 28.23 construction issues. 28.24 (b) Should the commissioner pay from the contractor's 28.25 recovery fund any amount in settlement of a claim or toward 28.26 satisfaction of a judgment against a licensee, the license shall 28.27 be automatically suspended upon the effective date of an order 28.28 by the court authorizing payment from the fund. No licensee 28.29 shall be granted reinstatement until the licensee has repaid in 28.30 full, plus interest at the rate of 12 percent a year, twice the 28.31 amount paid from the fund on the licensee's account, and has 28.32 obtained a surety bond issued by an insurer authorized to 28.33 transact business in this state in the amount of at least 28.34$40,000$50,000. 28.35 Sec. 39. Minnesota Statutes 1996, section 327A.01, 28.36 subdivision 2, is amended to read: 29.1 Subd. 2. [BUILDING STANDARDS.] "Building standards" means 29.2 the structural, mechanical, electrical, and quality standards of 29.3 the home building industry for the geographic area in which the 29.4 dwelling is situated. For those geographic areas where the 29.5 state building code adopted by the commissioner of 29.6 administration according to sections 16B.59 to 16B.75 is in 29.7 effect, "building standards" shall be no less rigorous than the 29.8 state building code. 29.9 Sec. 40. Minnesota Statutes 1996, section 327A.01, 29.10 subdivision 5, is amended to read: 29.11 Subd. 5. [MAJOR CONSTRUCTION DEFECT.] "Major construction 29.12 defect" means actual damage to the load-bearing portion of the 29.13 dwelling or the home improvement, including damage due to 29.14 subsidence, expansion or lateral movement of the soil, which 29.15 affects the load-bearing function and whichvitally29.16 substantially affects or is imminently likely tovitally29.17 substantially affect use of the dwelling or the home improvement 29.18 for residential purposes. "Major construction defect" does not 29.19 include damage due to movement of the soil caused by flood, 29.20 earthquake or other natural disaster. 29.21 Sec. 41. Minnesota Statutes 1996, section 327A.02, 29.22 subdivision 1, is amended to read: 29.23 Subdivision 1. [WARRANTIES BY VENDORS.] (a) In every sale 29.24 of a completed dwelling, and in every contract for the sale of a 29.25 dwelling to be completed, the vendor shall warrant to the vendee 29.26 that: 29.27(a)(1) during the one-year period from and after the 29.28 warranty date the dwelling shall be free from defects caused by 29.29 faulty workmanship and defective materials due to noncompliance 29.30 with building standards; 29.31(b)(2) during thetwo-yearthree-year period from and 29.32 after the warranty date, the dwelling shall be free from defects 29.33 caused by faulty workmanship and defective materials caused by 29.34 noncompliance with building standards relating to the 29.35 installation of plumbing, electrical, heating, and cooling 29.36 systems; and 30.1(c)(3) during the ten-year period from and after the 30.2 warranty date, the dwelling shall be free from major 30.3 construction defects. 30.4 (b) The warranties provided by this chapter are transferred 30.5 automatically with conveyance of the property and benefit the 30.6 initial vendee and all future vendees. 30.7 Sec. 42. Minnesota Statutes 1996, section 327A.02, 30.8 subdivision 3, is amended to read: 30.9 Subd. 3. [HOME IMPROVEMENT WARRANTIES.] (a) In a sale or 30.10 in a contract for the sale of home improvement work involving 30.11 major structural changes or additions to a residential building, 30.12 the home improvement contractor shall warrant to the owner that: 30.13 (1) during the one-year period from and after the warranty 30.14 date the home improvement shall be free from defects caused by 30.15 faulty workmanship and defective materials due to noncompliance 30.16 with building standards; and 30.17 (2) during the ten-year period from and after the warranty 30.18 date the home improvement shall be free from major construction 30.19 defects. 30.20 (b) In a sale or in a contract for the sale of home 30.21 improvement work involving the installation of plumbing, 30.22 electrical, heating or cooling systems, the home improvement 30.23 contractor shall warrant to the owner that, during thetwo-year30.24 three-year period from and after the warranty date, the home 30.25 improvement shall be free from defects caused bythefaulty 30.26 workmanship and defective materials caused by noncompliance with 30.27 building standards relating to the installation of the system or 30.28 systems. 30.29 (c) In a sale or in a contract for the sale of any home 30.30 improvement work not covered by paragraph (a) or (b), the home 30.31 improvement contractor shall warrant to the owner that, during 30.32 theone-yeartwo-year period from and after the warranty date, 30.33 the home improvement shall be free from defects caused by faulty 30.34 workmanship or defective materials due to noncompliance with 30.35 building standards. 30.36 Sec. 43. Minnesota Statutes 1996, section 327A.03, is 31.1 amended to read: 31.2 327A.03 [EXCLUSIONS.] 31.3 The liability of the vendor or the home improvement 31.4 contractor under sections 327A.01 to 327A.07 is limited to the 31.5 specific items set forth in sections 327A.01 to 327A.07 and does 31.6 not extend to the following: 31.7 (a) Loss or damage not reported by the vendee or the owner 31.8 to the vendor or the home improvement contractor in writing 31.9 withinsix monthstwo years after the vendee or the owner 31.10 discovers or should have discovered the loss or damage; 31.11 (b) Loss or damage caused by defects in design, 31.12 installation, or materials which the vendee or the owner 31.13 supplied, installed, or directed to be installed; 31.14 (c) Secondary loss or damage such as personal injury or 31.15 property damage; 31.16 (d) Loss or damage from normal wear and tear; 31.17 (e) Loss or damage from normal shrinkage caused by drying 31.18 of the dwelling or the home improvement within tolerances of 31.19 building standards; 31.20 (f) Loss or damage from dampness and condensation due to 31.21 insufficient ventilation after occupancy, when the inadequate 31.22 ventilation is attributable to conditions resulting from 31.23 compliance with requirements of the state energy code in effect 31.24 at the time of construction; 31.25 (g) Loss or damage from negligence, improper maintenance or 31.26 alteration of the dwelling or the home improvement by parties 31.27 other than the vendor or the home improvement contractor; 31.28 (h) Loss or damage from changes in grading of the ground 31.29 around the dwelling or the home improvement by parties other 31.30 than the vendor or the home improvement contractor; 31.31 (i) Landscaping or insect loss or damage; 31.32 (j) Loss or damage from failure to maintain the dwelling or 31.33 the home improvement in good repair; 31.34 (k) Loss or damage which the vendee or the owner, whenever 31.35 feasible, has not taken timely action to minimize; 31.36 (l) Loss or damage which occurs after the dwelling or the 32.1 home improvement is no longer used primarily as a residence; 32.2 (m) Accidental loss or damage usually described as acts of 32.3 God, including, but not limited to: fire, explosion, smoke, 32.4 water escape, windstorm, hail or lightning, falling trees, 32.5 aircraft and vehicles, flood, and earthquake, except when the 32.6 loss or damage is caused by failure to comply with building 32.7 standards; 32.8 (n) Loss or damage from soil movement which is compensated 32.9 by legislation or covered by insurance; 32.10 (o) Loss or damage due to soil conditions where 32.11 construction is done upon lands owned by the vendee or the owner 32.12 and obtained by the vendee or owner from a source independent of 32.13 the vendor or the home improvement contractor; 32.14 (p) In the case of home improvement work, loss or damage 32.15 due to defects in the existing structure and systems not caused 32.16 by the home improvement. 32.17 Sec. 44. [327A.035] [WARRANTY INFORMATION.] 32.18 A vendor or home improvement contractor must, prior to 32.19 entering into a contract covered by this chapter for the sale of 32.20 a dwelling or of home improvement work, provide the vendee or 32.21 owner with a copy of sections 327A.02 and 327A.03. 32.22 Sec. 45. Minnesota Statutes 1996, section 332.31, 32.23 subdivision 3, is amended to read: 32.24 Subd. 3. [COLLECTION AGENCY.] "Collection agency" means 32.25 and includes any person engaged in the business of collection 32.26 forothersa Minnesota creditor of any account, bill or other 32.27 indebtedness except as hereinafter provided. It includes 32.28 persons who furnish collection systems carrying a name which 32.29 simulates the name of a collection agency and who supply forms 32.30 or form letters to be used by the creditor, even though such 32.31 forms direct the debtor to make payments directly to the 32.32 creditor rather than to such fictitious agency. 32.33 Sec. 46. Minnesota Statutes 1996, section 332.31, 32.34 subdivision 6, is amended to read: 32.35 Subd. 6. [COLLECTOR.] "Collector" is a person acting under 32.36 the authority of a collection agency under subdivision 3, and on 33.1 its behalf in the business of collection forothers anMinnesota 33.2 creditors of any account, bill, or other indebtedness except as 33.3 otherwise provided in this chapter. 33.4 Sec. 47. Minnesota Statutes 1996, section 332.31, is 33.5 amended by adding a subdivision to read: 33.6 Subd. 7. [OUT-OF-STATE COLLECTION AGENCY.] No person shall 33.7 be considered to be engaged in the business of collection for 33.8 others of any account, bill, or other indebtedness if: (1) that 33.9 person is regulated as a collection agency under the laws of 33.10 another state and that person's activities within this state are 33.11 limited to collecting debts for out-of-state creditors from 33.12 debtors residing in this state by means of interstate 33.13 communications, including telephone, mail, or facsimile 33.14 transmission, from the person's location in another state; and 33.15 (2) that person discloses to the debtor in each communication 33.16 the state in which the person is regulated and engages in the 33.17 business of collecting debts. However, if the communication by 33.18 an out-of-state collection agency is contrary to section 332.37, 33.19 or does not include the disclosure required in clause (2), the 33.20 collection agency is subject to the jurisdiction of this state 33.21 under section 45.027 with respect to the communication. 33.22 Sec. 48. Minnesota Statutes 1996, section 383B.79, 33.23 subdivision 1, is amended to read: 33.24 Subdivision 1. [PROGRAM CREATED.] A multijurisdictional 33.25 reinvestment program involving Hennepin county, the cities of 33.26 Minneapolis, Brooklyn Center, and other interested statutory or 33.27 home rule charter cities in Hennepin county, the Minneapolis 33.28 park board, and the suburban Hennepin county park district is 33.29 created. The multijurisdictional program must include plans for 33.30 housing rehabilitation and removals, industrial polluted land 33.31 cleanup, water ponding, environmental cleanup, community 33.32 corridor connections, corridor planning, creation of green 33.33 space, acquisition of property, development and redevelopment of 33.34 parks and open space, water quality and lakeshore improvement, 33.35 development and redevelopment of housing and existing commercial 33.36 projects, funding and refunding of convention and conference 34.1 centers and related facilities, assistance to businesses, and 34.2 job creation. 34.3 Sec. 49. Minnesota Statutes 1996, section 383B.79, is 34.4 amended by adding a subdivision to read: 34.5 Subd. 6. [ADMINISTRATION.] The board of county 34.6 commissioners shall administer the program and funds and bond 34.7 for projects in this section either as a county board, a housing 34.8 and redevelopment authority, or a regional rail authority. The 34.9 board of county commissioners may acquire property in connection 34.10 with the project known as the Humboldt Avenue Greenway from any 34.11 funds under its control. 34.12 Sec. 50. Minnesota Statutes 1997 Supplement, section 34.13 414.11, is amended to read: 34.14 414.11 [MUNICIPAL BOARD SUNSET.] 34.15 The municipal board shall terminate on December 31,199934.16 2002, and all of its authority and duties under this chapter 34.17 shall be transferred to the office of strategic and long-range 34.18 planning according to section 15.039. 34.19 Sec. 51. Minnesota Statutes 1996, section 446A.072, 34.20 subdivision 2, is amended to read: 34.21 Subd. 2. [TYPE OF SUPPLEMENTAL ASSISTANCE.] Supplemental 34.22 assistance shall be in the form ofzero percent loans, with loan34.23repayments beginning February 20 or August 20 following the34.24scheduled date of the project obtaininggrants. If one year 34.25 after the initiation of operation of the project, the project 34.26 does not meet the operational performance standards established 34.27 by the agency, the grant must be repaid.Upon receipt of notice34.28from the agency that the project operational performance34.29standards have been met, the authority will forgive the34.30scheduled loan repayments made under this section. If not34.31forgiven, loanGrant repayments shall be deferred upon request 34.32 from the commissioner of the agency for six-month periods, 34.33 provided the commissioner has determined that satisfactory 34.34 progress is being made to achieve project performance or is 34.35 developing or implementing a corrective action plan. 34.36 Sec. 52. Minnesota Statutes 1996, section 446A.072, 35.1 subdivision 4, is amended to read: 35.2 Subd. 4. [FUNDING LEVEL.] (a) The authority shall provide 35.3 supplemental assistance for essential project component costs as 35.4 certified by the commissioner of the pollution control agency 35.5 under section 116.182, subdivision 4. 35.6 (b) A municipality may not receive more than $4,000,000 35.7 under this section unless specifically approved by law. 35.8 (c)The authority will calculate the grant amount needed35.9for the essential project component costs by first determining35.10the amount needed to reduce a municipality's monthly residential35.11sewer service charge to $25 or to an annual residential sewer35.12service charge in excess of 1.5 percent of the municipality's35.13median household income, whichever is less, and then multiplying35.14that amount by 80 percent to determine the actual award amount35.15to supplement loans under section 446A.07 or provide up to35.16one-third of the amount of the grant funding level required by35.17USDA/RECD for projects listed on the agency's intended use plan.35.18(d)The authority shall provide supplemental assistance for 35.19 up to one-half of the eligible grant funding level determined by 35.20 the United States Department of Agriculture Rural Development 35.21 funding for projects listed on the agency's project priority 35.22 list, in priority order. For municipalities that are not 35.23 eligible for United State Department of Agriculture Rural 35.24 Development funding for wastewater, the authority shall provide 35.25 supplemental assistance for: (1) essential project component 35.26 costs calculated by first determining the amount needed to 35.27 reduce a municipality's annual residential sewer costs to 1.4 35.28 percent of the municipality's median household income or $25, 35.29 whichever is greater, and then multiplying that amount by 80 35.30 percent to determine the actual award amount to supplement loans 35.31 under section 446A.07; and (2) up to 50 percent of the 35.32 incremental costs specifically identified by the agency as being 35.33 attributable to more stringent wastewater standards required to 35.34 protect outstanding resource value waters or outstanding 35.35 international resource value waters. 35.36 (d) Notwithstanding paragraph (b), in the event that a 36.1 municipality's monthly residential sewer service charges average 36.2 above $50, the authority will provide 90 percent of the grant 36.3 amount needed to reduce the average monthly sewer service charge 36.4 to $50, provided the project is ranked in the top 50 percentile 36.5 of the agency's intended use plan. 36.6 (e) Notwithstanding paragraphs (b), (c), and (d), a 36.7 municipality with an annual median household income of $40,000 36.8 or greater shall not be eligible for a grant, except for 36.9 incremental costs specifically identified by the agency as being 36.10 attributable to more stringent wastewater standards required to 36.11 protect outstanding resource value waters or outstanding 36.12 international resource value waters. 36.13 (f) The authority shall provide supplemental assistance to 36.14 a municipality that would not otherwise qualify for supplemental 36.15 assistance if: 36.16 (1) the municipality voluntarily accepts a sewer connection 36.17 from another governmental unit to serve residential, industrial, 36.18 or commercial developments that were completed before March 1, 36.19 1996, or are on lots whose plats were recorded before that date; 36.20 and 36.21 (2) fees charged by the municipality for the connection 36.22 must take into account state and federal grants used by the 36.23 municipality for the construction of the treatment plant. 36.24 The amount of supplemental assistance under this paragraph must 36.25 be sufficient to reduce debt service payments under section 36.26 446A.07 to an extent equivalent to a zero percent loan in an 36.27 amount up to the other governmental unit's project costs 36.28 necessary for connection. Eligibility for supplemental 36.29 assistance under this paragraph ends three years after the 36.30 agency certifies that the connection has met the operational 36.31 performance standards established by the agency. 36.32 Sec. 53. Minnesota Statutes 1996, section 469.303, is 36.33 amended to read: 36.34 469.303 [ELIGIBILITY REQUIREMENTS.] 36.35 An area within the city is eligible for designation as an 36.36 enterprise zone if the area (1) includes census tracts eligible 37.1 for a federal empowerment zone or enterprise community as 37.2 defined by the United States Department of Housing and Urban 37.3 Development under Public Law Number 103-66, notwithstanding the 37.4 maximum zone population standard under the federal empowerment 37.5 zone program for cities with a population under 500,000or, (2) 37.6 is an area within a city of the second class that is designated 37.7 as an economically depressed area by the United States 37.8 Department of Commerce, or (3) includes property located in St. 37.9 Paul in a transit zone as defined in section 473.3915, 37.10 subdivision 3. 37.11 Sec. 54. Minnesota Statutes 1996, section 541.051, 37.12 subdivision 1, is amended to read: 37.13 Subdivision 1. (a) Except where fraud is involved, no 37.14 action by any person in contract, tort, or otherwise to recover 37.15 damages for any injury to property, real or personal, or for 37.16 bodily injury or wrongful death, arising out of the defective 37.17 and unsafe condition of an improvement to real property, nor any 37.18 action for contribution or indemnity for damages sustained on 37.19 account of the injury, shall be brought against any person 37.20 performing or furnishing the design, planning, supervision, 37.21 materials, or observation of construction or construction of the 37.22 improvement to real property or against the owner of the real 37.23 property more thantwothree years after discovery of the injury 37.24 or, in the case of an action for contribution or indemnity, 37.25 accrual of the cause of action, nor, in any event shall such a 37.26 cause of action accrue more than ten years after substantial 37.27 completion of the construction. Date of substantial completion 37.28 shall be determined by the date when construction is 37.29 sufficiently completed so that the owner or the owner's 37.30 representative can occupy or use the improvement for the 37.31 intended purpose. 37.32 (b) For purposes of paragraph (a), a cause of action 37.33 accrues upon discovery of the injury or, in the case of an 37.34 action for contribution or indemnity, upon payment of a final 37.35 judgment, arbitration award, or settlement arising out of the 37.36 defective and unsafe condition. 38.1 (c) Nothing in this section shall apply to actions for 38.2 damages resulting from negligence in the maintenance, operation 38.3 or inspection of the real property improvement against the owner 38.4 or other person in possession. 38.5 (d) The limitations prescribed in this section do not apply 38.6 to the manufacturer or supplier of any equipment or machinery 38.7 installed upon real property. 38.8 Sec. 55. Minnesota Statutes 1996, section 541.051, 38.9 subdivision 4, is amended to read: 38.10 Subd. 4. This section shall not apply to actions based on 38.11 breach of the statutory warranties set forth in section 327A.02, 38.12 or to actions based on breach of an express written warranty, 38.13 provided such actions shall be brought withintwothree years of 38.14 the discovery of the breach. 38.15 Sec. 56. Laws 1997, chapter 200, article 1, section 2, 38.16 subdivision 2, is amended to read: 38.17 Subd. 2. Business and Community 38.18 Development 38.19 35,963,000 20,977,000 38.20 $7,017,000 the first year and 38.21 $6,017,000 the second year is for 38.22 Minnesota investment fund grants. Of 38.23 this appropriation, $3,000,000 the 38.24 first year and $2,000,000 the second 38.25 year are one-time appropriations and 38.26 may not be added to the budget base for 38.27 the biennium ending June 30, 2001. Of 38.28 this one-time appropriation $1,000,000 38.29 the first year is for a single grant 38.30 recipient, to be identified by the 38.31 commissioner, notwithstanding the 38.32 monetary limitation under Minnesota 38.33 Statutes, section 116J.8731, 38.34 subdivision 5. This amount may not be 38.35 added to the agency's budget base. 38.36 This amount is available until June 30, 38.37 1999. 38.38 $450,000 the first year and $450,000 38.39 the second year is for grants to 38.40 Advantage Minnesota, Inc. The funds 38.41 are available only if matched on at 38.42 least a dollar-for-dollar basis from 38.43 other sources. The commissioner may 38.44 release the funds only upon: 38.45 (1) certification that matching funds 38.46 from each participating organization 38.47 are available; and 38.48 (2) review and approval by the 38.49 commissioner of the proposed operations 38.50 plan of Advantage Minnesota, Inc. for 39.1 the biennium. 39.2 $7,418,000 the first year and 39.3 $7,918,000 the second year is for the 39.4 job skills partnership program. If the 39.5 appropriation for either year is 39.6 insufficient, the appropriation for the 39.7 other year is available. This 39.8 appropriation does not cancel. Of this 39.9 amount, $1,500,000 the first year and 39.10 $2,000,000 the second year is for the 39.11 Pathways program under Minnesota 39.12 Statutes, section 116L.04, subdivision 39.13 1a. 39.14 $250,000 the first year is for a grant 39.15 from the department of trade and 39.16 economic development to the Software 39.17 Technology Center to broaden 39.18 industry-related educational and 39.19 technological services. This 39.20 appropriation is available upon 39.21 documentation of a dollar-for-dollar 39.22 match from other sources since the 39.23 inception of the Software Technology 39.24 Center. This is a one-time 39.25 appropriation and must not be included 39.26 in the budget base for the biennium 39.27 ending June 30, 2001. 39.28 $100,000 the first year is for a 39.29 one-time grant to the Duluth Technology 39.30 Center. This appropriation is 39.31 available until June 30, 1999. 39.32 $25,000 the first year is for a 39.33 one-time grant to the city of New 39.34 London for improvements to the Little 39.35 Theatre. This appropriation is 39.36 available when the city matches the 39.37 appropriation with $25,000 from 39.38 nonstate sources. 39.39 $750,000 the first year is for one or 39.40 more grants to the Minnesota Futures 39.41 Fund administered by the Minneapolis 39.42 Foundation. The Minneapolis Foundation 39.43 shall use these grants to provide 39.44 technical assistance grants to 39.45 nonprofit organizations to assist them 39.46 in redesigning services and 39.47 organizational structures in response 39.48 to changes in federal and state welfare 39.49 policy. The commissioner shall make 39.50 the grants in amounts necessary to 39.51 match nonpublic contributions to the 39.52 fund on a dollar-for-dollar basis. 39.53 This appropriation is available until 39.54 June 30, 1999. This is a one-time 39.55 appropriation and may not be included 39.56 in the budget base for the biennium 39.57 ending June 30, 2001. 39.58 $35,000 the first year is for a 39.59 one-time appropriation to the Fairfax 39.60 economic development authority for roof 39.61 replacement. This appropriation is 39.62 available until June 30, 1999. 39.63 $2,000,000 the first year is for a 39.64 one-time grant to the city of Brooklyn 40.1 Center to redevelop the Brookdale 40.2 regional center and provide 40.3 opportunities for economic development 40.4 at or near the center. The grant must 40.5 be used to assist the city in 40.6 constructing a series of storm water 40.7 retention ponds that will facilitate 40.8 the redevelopment and economic 40.9 development of the center and nearby 40.10 property. The grant must be on terms 40.11 and conditions determined by the 40.12 commissioner. The grant must be 40.13 matched by city resources that equal at 40.14 least 25 percent of the grant. 40.15 $650,000 the first year is for the 40.16 taconite mining grant program under 40.17 Minnesota Statutes, section 116J.992. 40.18 This appropriation is available until 40.19 June 30, 1999. This is a one-time 40.20 appropriation and may not be included 40.21 in the budget base for the biennium 40.22 ending June 30, 2001. 40.23 $95,000 the first year and $95,000 the 40.24 second year is for grants to county and 40.25 district agricultural societies and 40.26 associations that are eligible to 40.27 receive aid under Minnesota Statutes, 40.28 section 38.02. The commissioner shall 40.29 spend this appropriation as grants of 40.30 $1,000 for each fair conducted by such 40.31 a county and district agricultural 40.32 society and association in each year. 40.33 $3,000,000 the first year is for a 40.34 grant to develop a direct reduction 40.35 iron-processing facility in Minnesota. 40.36 This appropriation is available until 40.37 June 30, 1999. This is a one-time 40.38 appropriation and may not be included 40.39 in the budget base for the biennium 40.40 ending June 30, 2001. 40.41 $500,000 the first year is for 40.42 technical assistance under Minnesota 40.43 Statutes, section 116J.8745. This 40.44 appropriation is available until June 40.45 30, 1999. 40.46 $4,444,000 the first year is for state 40.47 matching money for federal grants to 40.48 capitalize the drinking water revolving 40.49 loan fund under Minnesota Statutes, 40.50 section 446A.081. The expenditure is 40.51 limited to the minimum amount necessary 40.52 to match the allotment of federal money 40.53 to Minnesota. This is a one-time 40.54 appropriation and must not be included 40.55 in the budget base for the biennium 40.56 ending June 30, 2001. 40.57 $25,000 the first year is for a 40.58 one-time grant to the city of St. Paul 40.59 to improve, beautify, and enhance 40.60 marked trunk highway No. 5 from 40.61 Minneapolis-St.Paul international 40.62 airport to interstate highway No. 40.63 35-E. Enhancements may include, among 40.64 other things, landscaping, historical 40.65 lighting, and signing. 41.1 $100,000 the first year is for a 41.2 one-time grant to the city of Grey 41.3 Eagle for construction of a wastewater 41.4 treatment plant. 41.5 $526,000 the first year and $537,000 41.6 the second year is from fees collected 41.7 under Minnesota Statutes, section 41.8 446A.04, subdivision 5, to administer 41.9 the programs of the public facilities 41.10 authority. 41.11 $125,000 the first year is for a 41.12 one-time demonstration project grant to 41.13 the city of Newport for the city to 41.14 conduct a study of the economic impact 41.15 on the city resulting from regional 41.16 infrastructure improvement projects. 41.17 The city may retain consultants and 41.18 enter into contracts it considers 41.19 desirable to conduct the study. The 41.20 elements of the study must include an 41.21 alternate economic use study, a fiscal 41.22 impact study, an infrastructure impact 41.23 study, and a traffic impact study. The 41.24 grant is available only to the extent 41.25 that the city provides in-kind 41.26 resources or money, raised or 41.27 contributed during a period beginning 41.28 January 1, 1993, that provides a 41.29 one-to-one match of the grant. 41.30 $100,000 the first year is for a grant 41.31 to the Minnesota Organization for 41.32 Global Professional Assignments, an 41.33 independent, nonprofit corporation, for 41.34 a program that creates opportunities 41.35 for the international professional 41.36 development of Minnesota college 41.37 graduates and Minnesota college seniors 41.38 interested in pursuing careers with 41.39 multinational businesses. This is a 41.40 one-time appropriation. The 41.41 appropriation is available for the 41.42 fiscal year ending June 30, 1998. 41.43 $100,000 the first year and $100,000 41.44 the second year is for one-time grants 41.45 to the city of New Brighton, as project 41.46 coordinator and fiscal agent of the 41.47 seven-city coalition, for the 41.48 multicommunity business retention and 41.49 market expansion project and related 41.50 planning efforts linking geographical 41.51 information systems, contaminated land 41.52 remediation, land use planning, 41.53 transportation corridor study, 41.54 integration of existing housing stock, 41.55 subregional transit and reverse commute 41.56 coordination, employment densities, job 41.57 training and welfare reform placement 41.58 coordination, and commercial and 41.59 industrial development. The coalition 41.60 shall share all results and written 41.61 reports with the department of trade 41.62 and economic development. 41.63 $2,000,000 the first year is for 41.64 transfer to the rural policy and 41.65 development center fund. This 41.66 appropriation does not cancel. This is 42.1 a one-time appropriation and may not be 42.2 included in the agency's budget base 42.3 for the biennium ending June 30, 2001. 42.4 $250,000 the first year and $250,000 42.5 the second year is for grants to the 42.6 board of the rural policy and 42.7 development center for operation of the 42.8 center. 42.9 $130,000 the first year and $155,000 42.10 the second year is for grants to the 42.11 metropolitan economic development 42.12 association. 42.13 $240,000 the first year and $265,000 42.14 the second year is for grants to 42.15 WomenVenture. 42.16 WomenVenture and the metropolitan 42.17 economic development association must, 42.18 in the first year, develop contacts and 42.19 relationships with the regional 42.20 initiatives selected under Minnesota 42.21 Statutes, section 116J.415, subdivision 42.22 3, and a plan to deliver their services 42.23 statewide. In the second year, they 42.24 must generally offer their services 42.25 statewide. 42.26 $500,000 the first year and $500,000 42.27 the second year is for grants to the 42.28 St. Paul rehabilitation center for its 42.29 current programs, including those 42.30 related to developing job-seeking 42.31 skills and workplace orientation, 42.32 intensive job development, functional 42.33 work English, and on-site job coaching. 42.34 $250,000 in the first year is for a 42.35 one-time grant to the Morrison county 42.36 rural development finance authority 42.37 established under Laws 1982, chapter 42.38 437. The authority must use the grant 42.39 only for capital improvements to a 42.40 paper and wood products manufacturer in 42.41 the county primarily for the purposes 42.42 of facility upgrading and expansion of 42.43 the manufacturer's capability to 42.44 utilize recycled wastepaper as a fiber 42.45 source. Minnesota Statutes, section 42.46 116J.991, applies to the grant. 42.47 $200,000 the first year is for an 42.48 agreement with the Judy Garland 42.49 Children's Museum to assist in the 42.50 design and construction of a children's 42.51 museum. This amount must be matched by 42.52 at least $1,275,000 from nonstate 42.53 sources committed by June 30, 1998. 42.54 This is a one-time appropriation and 42.55 may not be added to the agency's budget 42.56 base in future biennia. 42.57 Notwithstanding Minnesota Statutes, 42.58 section 116J.8731, or any other law to 42.59 the contrary, the commissioner shall, 42.60 in the commissioner's considerations on 42.61 Minnesota investment fund grants in 42.62 fiscal year 1998, strongly consider an 42.63 application for a $250,000 grant to the 43.1 Morrison county rural development 43.2 authority established under Laws 1982, 43.3 chapter 437, for capital improvements 43.4 to a paper and wood products 43.5 manufacturer in Morrison county 43.6 primarily for the purposes of facility 43.7 upgrading and expansion of the 43.8 manufacturer's capability to utilize 43.9 recycled wastepaper as a fiber source, 43.10 thereby achieving the purpose of job 43.11 enhancement, stability, and 43.12 preservation. As part of this 43.13 consideration, the commissioner shall 43.14 confer with the manufacturer, inspect 43.15 the manufacturer's facilities, and 43.16 conduct an analysis of the 43.17 manufacturer's business plan and its 43.18 previous and proposed efforts to 43.19 achieve these purposes. The 43.20 commissioner shall strongly consider 43.21 approving the grant application unless 43.22 the commissioner determines that the 43.23 grant will not significantly contribute 43.24 to achieving these purposes. The 43.25 commissioner must make a determination 43.26 on this application by December 1, 1997. 43.27 $45,000 the first year is for a 43.28 one-time grant to the Upper Minnesota 43.29 Valley River regional development 43.30 commission for development of design 43.31 specifications and architectural plans 43.32 for a regional visitors center, to be 43.33 built on the upper segment of the 43.34 Minnesota river corridor within the 43.35 designated scenic byway area and in 43.36 conjunction with the development of the 43.37 Minnesota river corridor trail. This 43.38 appropriation is available until June 43.39 30, 1999. 43.40 $100,000 the first year and $100,000 43.41 the second year is for grants to create 43.42 and operate community development 43.43 corporations under Minnesota Statutes, 43.44 section 116J.982, that target 43.45 Asian-Pacific Minnesotans. One must be 43.46 in Hennepin county and one must be in 43.47 Ramsey county. 43.48 $80,000 the first year and $80,000 the 43.49 second year is for one-time grants to 43.50 the greater metropolitan area foreign 43.51 trade zone commission for the purpose 43.52 of promoting foreign trade zones in 43.53 Minnesota. 43.54 Sec. 57. Laws 1997, chapter 200, article 1, section 12, 43.55 subdivision 2, is amended to read: 43.56 Subd. 2. Workers' Compensation 43.5712,152,00012,202,00012,160,00012,110,000 43.58 This appropriation is from the workers' 43.59 compensation fund. 43.60 $125,000 the first year and $125,000 43.61 the second year is for grants to the 43.62 Vinland Center for rehabilitation 44.1 service. 44.2 Notwithstanding Minnesota Statutes, 44.3 section 79.253, the following 44.4 appropriations are made from the 44.5 assigned risk safety account in the 44.6 special compensation fund to the 44.7 commissioner of labor and industry: 44.8 (a) $77,000 the first year and $73,000 44.9 in the second year are for the purpose 44.10 of hiring one occupational safety and 44.11 health inspector. The inspector shall 44.12 perform safety consultations for 44.13 employers through labor-management 44.14 committees as defined in Minnesota 44.15 Statutes, section 179.81, subdivision 44.16 2, under an interagency agreement 44.17 entered into between the commissioners 44.18 of labor and industry and mediation 44.19 services. 44.20 (b) $95,000 the first year and $75,000 44.21 the second year are for the purpose of 44.22 providing information to employers 44.23 regarding the prevention of violence in 44.24 the workplace. 44.25 (c) $25,000 the first year and $25,000 44.26 the second year are for the purpose of 44.27 safety training and other safety 44.28 programs for youth apprentices. 44.29 Sec. 58. Laws 1997, chapter 200, article 1, section 33, 44.30 subdivision 1, is amended to read: 44.31 Subdivision 1. [STUDY.]The commissioners of trade and44.32economic development, labor and industry, and economic44.33securityThe governor's workforce development council shall 44.34 conduct a joint study of job-training programs funded wholly or 44.35 partly with state funds.The commissionersThe governor's 44.36 workforce development council must report to the governor and 44.37 legislature on the development of the study by January 15, 1998, 44.38 and make a final report on the study by January 15, 1999. 44.39 Sec. 59. Laws 1997, chapter 200, article 1, section 33, is 44.40 amended by adding a subdivision to read: 44.41 Subd. 4. [WAGE RATE STUDY.] The governor's workforce 44.42 development council must identify for each job-training program 44.43 studied: 44.44 (1) the number and proportion of placement jobs paying at 44.45 least 120 percent of the federal poverty level initially; 44.46 (2) the number and proportion of placement jobs paying at 44.47 least 150 percent of the federal poverty level initially; 45.1 (3) the number and proportion of individuals who were 45.2 employed two years after successful program completion; and 45.3 (4) the number and proportion of individuals who were 45.4 employed five years after successful program completion. 45.5 Sec. 60. Laws 1997, chapter 200, article 1, section 33, is 45.6 amended by adding a subdivision to read: 45.7 Subd. 5. [BREAKDOWN OF INFORMATION.] For each program 45.8 included in the job-training study, the governor's workforce 45.9 development council shall report the information required by 45.10 this section for each of the following groups: men, women, 45.11 Blacks, Native Americans, Hispanics, Asians, persons with 45.12 disabilities, persons under 25, persons between 25 and 45, 45.13 persons over 45, and persons receiving MFIP-S employment and 45.14 training and food stamp employment and training (FSET). 45.15 Sec. 61. Laws 1997, chapter 200, article 1, section 33, is 45.16 amended by adding a subdivision to read: 45.17 Subd. 6. [COLLECTION OF INFORMATION.] All training 45.18 programs being studied by the governor's workforce development 45.19 council are to collect demographic information in accordance 45.20 with subdivision 5, and are to make available to the Minnesota 45.21 department of economic security the social security numbers of 45.22 the programs' participants for the purpose of tracking wages and 45.23 job retention for two-year and five-year periods following 45.24 program completion. Notwithstanding Minnesota Statutes, section 45.25 13.47 or 268.19, the Minnesota department of economic security 45.26 shall provide the governor's workforce development council with 45.27 the necessary information on the program participants to carry 45.28 out this study. 45.29 Sec. 62. [TRAINING FOR HMONG AND LAOTIAN WOMEN.] 45.30 $100,000 of the appropriation in fiscal year 1999 for the 45.31 Job Training Partnership Act program in Laws 1997, chapter 200, 45.32 article 1, section 5, subdivision 4, is available to the Women's 45.33 Association of Hmong and Lao to provide employment and training 45.34 to eligible Hmong and Laotian women. 45.35 Sec. 63. [CORRIDOR PLANNING PILOT PROJECTS.] 45.36 Subdivision 1. [PILOT PROJECTS.] (a) The metropolitan 46.1 council shall contract with the University of Minnesota design 46.2 center for American urban landscape to establish corridor 46.3 planning pilot projects for the highway 61 south, and I-35W 46.4 north corridors in the metropolitan area. A "corridor plan" is 46.5 a subregional, multijurisdictional comprehensive plan for the 46.6 area along a major transportation corridor through two or more 46.7 municipalities. A corridor plan implements local development 46.8 and redevelopment objectives in compliance with regional goals 46.9 and priorities by establishing an integrated and cooperative 46.10 working relationship between adjoining corridor communities to, 46.11 among other things: 46.12 (1) make use of shared geographic information systems, as 46.13 they are developed; 46.14 (2) establish a framework for a comprehensive livable 46.15 community urban design; 46.16 (3) develop strategies for housing, and economic 46.17 development and redevelopment, including the cleanup of 46.18 contaminated properties and replacement of demolished affordable 46.19 housing; and 46.20 (4) create a comprehensive multimodal transportation plan 46.21 for the corridor, integrating transportation and land use issues. 46.22 (b) A corridor plan must be developed by representatives of 46.23 each of the municipalities in the corridor, reviewed and 46.24 approved by the metropolitan council, and adopted by each of the 46.25 participating municipalities. A local comprehensive plan must 46.26 be consistent with the corridor plan. 46.27 Subd. 2. [1999 LEGISLATIVE PROPOSAL.] Based on the 46.28 experience of the corridor communities with the corridor 46.29 planning pilot projects, the council, in collaboration with the 46.30 design center and the corridor communities, shall propose 46.31 legislation for the 1999 legislature's consideration, that will 46.32 provide incentives to communities to implement their adopted 46.33 corridor plans approved by the council. Recommendations for 46.34 incentives may include, but are not limited to, recommendations 46.35 related to tax increment financing, brownfield cleanup and 46.36 redevelopment assistance, transportation funding, board of 47.1 government innovation and cooperation grants, and local 47.2 government assistance. 47.3 Subd. 3. [EFFECTIVE DATES; APPLICATION.] This section is 47.4 effective the day following final enactment and applies in the 47.5 counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and 47.6 Washington. 47.7 Sec. 64. [MINNESOTA INVESTMENT FUND.] 47.8 Subdivision 1. [CITY OF LUVERNE.] Notwithstanding the 47.9 grant limit contained in Minnesota Statutes, section 116J.8731, 47.10 subdivision 5, a grant of up to $1,000,000 may be made to the 47.11 city of Luverne to offset severe job losses due to plant 47.12 closings. Before a grant is made, there must be coordination 47.13 with an existing environmental review of the impact on 47.14 groundwater by the Minnesota pollution control agency in 47.15 cooperation with the public facilities authority and its program 47.16 for wastewater infrastructure and the state revolving loan fund 47.17 for drinking water or wastewater treatment. This subdivision is 47.18 effective the day following final enactment. 47.19 Subd. 2. [SOYBEAN OILSEED PROCESSING 47.20 FACILITY.] Notwithstanding the grant limit in Minnesota 47.21 Statutes, section 116J.8731, subdivision 5, a grant of up to 47.22 $1,000,000 may be made to a political subdivision that is chosen 47.23 as a site for a soybean oilseed processing facility, constructed 47.24 by a Minnesota-based cooperative. The grant may be used for 47.25 site preparation, predevelopment, and other infrastructure 47.26 improvements, including public and private utility improvements, 47.27 that are necessary for development of the oilseed processing 47.28 facility. The grant may be made any time until December 31, 47.29 2000. 47.30 Sec. 65. [DISCLOSURE, CATEGORY 1; CATEGORY 2.] 47.31 Prior to March 1, 1999, a builder shall disclose in writing 47.32 to a purchaser before execution of a purchase contract whether 47.33 the residential building to be constructed is a category 1 or 47.34 category 2 building, as defined in Minnesota Rules, part 47.35 7670.0470, subpart 6, item A. The disclosure shall include an 47.36 explanation of the difference between the categories in respect 48.1 of ventilation systems. 48.2 Sec. 66. [PUBLIC EDUCATION CAMPAIGN.] 48.3 The department of commerce shall establish a public 48.4 education campaign to educate the public about homeowners' and 48.5 purchasers' rights under section 25 and Minnesota Statutes, 48.6 sections 16B.61, subdivision 3b; 16B.65, subdivision 7; 326.87, 48.7 subdivision 2; 326.975, subdivision 1; 327A.01, subdivisions 2 48.8 and 5; 327A.02, subdivisions 1 and 3; 327A.03; 541.051, 48.9 subdivisions 1 and 4, and about ways to recognize safety and 48.10 health issues that may arise when purchasing a home, including 48.11 potential moisture and indoor air quality problems. 48.12 Sec. 67. [ON-THE-JOB TRAINING.] 48.13 The job skills partnership board in cooperation with the 48.14 departments of trade and economic development, economic 48.15 security, and labor and industry and the Minnesota state 48.16 colleges and universities shall develop on-the-job training 48.17 programs to assist companies in training workers in the skilled 48.18 trades. The programs may include training for immigrants who 48.19 have completed training in skilled trades outside of the United 48.20 States and may include English as a second language specialists 48.21 and interpreters as necessary. The job skills partnership board 48.22 shall pay the costs of developing these programs from its 48.23 existing resources. 48.24 Sec. 68. [JUDY GARLAND CHILDREN'S MUSEUM.] 48.25 The appropriation in Laws 1997, chapter 200, article 1, 48.26 section 2, subdivision 2, to the commissioner of trade and 48.27 economic development for the Judy Garland Children's Museum is 48.28 available until and may be matched until June 30, 1999. 48.29 Sec. 69. [EXEMPTION FROM ADDITIONAL BENEFITS 48.30 REQUIREMENTS.] 48.31 Notwithstanding Minnesota Statutes, section 268.125, 48.32 subdivisions 1; and 3, clauses (1) and (6), a claimant is 48.33 eligible to receive additional benefits under Minnesota 48.34 Statutes, section 268.125, if: 48.35 (1) the claimant was laid off due to lack of work from the 48.36 Campbell Soup plant in Nobles county between the months of July 49.1 and September of 1997; and 49.2 (2) the commissioner of economic security finds that the 49.3 claimant satisfies the conditions of Minnesota Statutes, section 49.4 268.125, subdivision 3, clauses (2) to (5), and has been or is a 49.5 participant in a dislocated workers program. 49.6 This section is effective the day following final enactment. 49.7 Sec. 70. [RETIREMENT EXCEPTION.] 49.8 Section 71 does not apply to any claimant who, with respect 49.9 to any period prior to September 1, 1998, receives, or has an 49.10 agreement to receive, a retirement pension financed in whole or 49.11 in part by the Hibbing Taconite Company. 49.12 Sec. 71. [EXEMPTION FROM ADDITIONAL BENEFITS 49.13 REQUIREMENTS.] 49.14 Notwithstanding Minnesota Statutes, section 268.125, 49.15 subdivisions 1; and 3, clauses (1) and (6), a claimant is 49.16 eligible to receive additional benefits under Minnesota 49.17 Statutes, section 268.125, if: 49.18 (1) the claimant was laid off due to lack of work from the 49.19 Hibbing Taconite Company in St. Louis county between the months 49.20 of July and September of 1997; and 49.21 (2) the commissioner of economic security finds that the 49.22 claimant satisfies the conditions of Minnesota Statutes, section 49.23 268.125, subdivision 3, clauses (2) to (5). 49.24 This section is effective the day following final enactment. 49.25 Sec. 72. [REPEALER.] 49.26 (a) Minnesota Statutes 1996, section 116C.80, is repealed. 49.27 (b) Minnesota Statutes 1997 Supplement, section 446A.072, 49.28 subdivision 4a, is repealed. 49.29 (c) Laws 1991, chapter 275, section 3, is repealed. 49.30 Sec. 73. [EFFECTIVE DATES.] 49.31 Sections 1 to 14, 19, 21, 22, 36, 51, 52, 53, 56, 58, 59, 49.32 60, 61, and 72, paragraph (b), are effective the day following 49.33 final enactment. Section 28 is effective retroactive to July 1, 49.34 1997. Section 65 is effective May 1, 1998. Section 34 is 49.35 effective January 1, 1999. 49.36 Sections 39 to 43, 54, and 55 are effective for housing 50.1 warranties which take effect on or after June 1, 1999. 50.2 Sections 48 and 49 take effect the day after the Hennepin 50.3 county board complies with the provisions of Minnesota Statutes, 50.4 section 645.021, subdivision 3. 50.5 Sections 45 to 47 are effective January 1, 1999. 50.6 ARTICLE 2 50.7 HOUSING 50.8 Section 1. [APPROPRIATIONS.] 50.9 The sums in the columns marked "APPROPRIATIONS" are 50.10 appropriated from the general fund, or another named fund, to 50.11 the agencies and for the purposes specified in this act, to be 50.12 available for the fiscal years indicated for each purpose. The 50.13 figures "1998" and "1999," where used in this act, mean that the 50.14 appropriation or appropriations listed under them are available 50.15 for the year ending June 30, 1998, or June 30, 1999, 50.16 respectively. The term "first year" means the fiscal year 50.17 ending June 30, 1998, and "second year" means the fiscal year 50.18 ending June 30, 1999. 50.19 SUMMARY BY FUND 50.20 1998 1999 50.21 General $ -0- $20,100,000 50.22 TOTAL $ -0- $20,100,000 50.23 APPROPRIATIONS 50.24 Available for the Year 50.25 Ending June 30 50.26 1998 1999 50.27 Sec. 2. MINNESOTA HOUSING 50.28 FINANCE AGENCY -0- 19,975,000 50.29 The amounts that may be spent from this 50.30 appropriation for certain programs are 50.31 specified below. 50.32 This appropriation is for transfer to 50.33 the housing development fund for the 50.34 programs specified. Except as 50.35 otherwise indicated, this transfer is 50.36 part of the agency's permanent budget 50.37 base. 50.38 $365,000 in 1999 is for a rental 50.39 housing assistance program for persons 50.40 with a mental illness or families with 50.41 an adult member with a mental illness 50.42 under Minnesota Statutes, section 50.43 462A.2097, and is added to the 50.44 appropriation for this program in Laws 50.45 1997, chapter 200, article 1, section 6. 51.1 $700,000 in 1999 is for the family 51.2 homeless prevention and assistance 51.3 program under Minnesota Statutes, 51.4 section 462A.204 and is added to the 51.5 appropriation for this program in Laws 51.6 1997, chapter 200, article 1, section 6. 51.7 $14,100,000 in 1999 is for the 51.8 affordable rental investment fund 51.9 program under Minnesota Statutes, 51.10 section 462A.21, subdivision 8b, and 51.11 added to the appropriation for this 51.12 program in Laws 1997, chapter 200, 51.13 article 1, section 6. Of this amount, 51.14 $415,000 is a one-time appropriation 51.15 and is not added to the agency's 51.16 permanent budget base. The agency must 51.17 seek a commitment from nonstate 51.18 resources to be used in coordination 51.19 with $4,100,000 from the affordable 51.20 rental investment fund program to 51.21 secure affordable housing for workers. 51.22 Of the amount appropriated to the 51.23 affordable rental investment fund 51.24 program, $10,000,000 is to finance the 51.25 acquisition, rehabilitation, and debt 51.26 restructuring of federally assisted 51.27 rental property and for making equity 51.28 take-out loans under Minnesota 51.29 Statutes, section 462A.05, subdivision 51.30 39. The owner of the rental property 51.31 must agree to participate in the 51.32 applicable federally assisted housing 51.33 program and to extend any existing 51.34 low-income affordability restrictions 51.35 on the housing for the maximum term 51.36 permitted. The owner must also agree 51.37 to give local units of government, 51.38 housing and redevelopment authorities, 51.39 and nonprofit housing organizations the 51.40 right of first refusal if the rental 51.41 property is offered for sale. Priority 51.42 must be given to properties with the 51.43 longest remaining term under an 51.44 agreement for federal rental 51.45 assistance. Priority must also be 51.46 given among comparable rental housing 51.47 developments to developments that are 51.48 or will be owned by a local government 51.49 unit, a housing and redevelopment 51.50 authority, or a nonprofit housing 51.51 organization. 51.52 $65,000 in 1999 is for nonprofit 51.53 capacity building grants under 51.54 Minnesota Statutes, section 462A.21, 51.55 subdivision 3b, and is added to the 51.56 appropriation for this program in Laws 51.57 1997, chapter 200, article 1, section 51.58 6. This appropriation is for grants to 51.59 supplement resources from the 51.60 corporation for national service in 51.61 support of placement of VISTA 51.62 volunteers with nonprofit housing 51.63 agencies. 51.64 $4,100,000 in 1999 is for the community 51.65 rehabilitation program under Minnesota 51.66 Statutes, section 462A.206, and is 51.67 added to the appropriation for this 52.1 program in Laws 1997, chapter 200, 52.2 article 1, section 6. Of this amount, 52.3 $415,000 is a one-time appropriation 52.4 and is not added to the agency's 52.5 permanent budget base. The agency must 52.6 seek a commitment from nonstate 52.7 resources to be used in coordination 52.8 with the community rehabilitation 52.9 program to secure affordable housing 52.10 for workers. 52.11 $70,000 in 1999 is for full-cycle home 52.12 ownership and purchase-rehabilitation 52.13 lending initiatives under Minnesota 52.14 Statutes, section 462A.209. This is a 52.15 one-time appropriation and is not added 52.16 to the agency's permanent budget base. 52.17 This appropriation must be used to make 52.18 a grant to a statewide organization 52.19 that advocates on behalf of persons 52.20 with developmental disabilities or 52.21 related conditions. The grant must be 52.22 used to provide prepurchase and 52.23 postpurchase counseling to persons with 52.24 disabilities who are participating in 52.25 the Fannie Mae Homechoice demonstration 52.26 project and other projects designed to 52.27 encourage home ownership among persons 52.28 with disabilities. 52.29 $500,000 in 1999 is for the 52.30 homeownership zones program, under 52.31 Minnesota Statutes, section 462A.2066. 52.32 If the agency does not receive fundable 52.33 applications for this program by June 52.34 30, 1999, that will use the entire 52.35 appropriation, the remaining amount is 52.36 transferred to the community 52.37 rehabilitation program. 52.38 $75,000 in 1999 is appropriated for the 52.39 housing rehabilitation loan program 52.40 under Minnesota Statutes, section 52.41 462A.05, subdivision 14a, for loans to 52.42 households which include a member 52.43 diagnosed with chemical sensitivity. 52.44 Notwithstanding section 462A.05, 52.45 subdivision 14a, loans may be made to 52.46 households which include a member 52.47 diagnosed with chemical sensitivity for 52.48 the lesser of the actual cost of 52.49 improvements or $25,000. This is a 52.50 one-time appropriation and is not added 52.51 to the agency's permanent budget base. 52.52 Sec. 3. ADMINISTRATION -0- 125,000 52.53 To the commissioner of administration 52.54 for the Healthy Homes Pilot Project 52.55 established in section 5. This is a 52.56 one-time appropriation and is not added 52.57 to the department's permanent budget 52.58 base. 52.59 Sec. 4. Laws 1997, chapter 200, article 1, section 6, is 52.60 amended to read: 52.61 Sec. 6. HOUSING FINANCE AGENCY 33,380,000 24,976,000 52.62 The amounts that may be spent from this 53.1 appropriation for certain programs are 53.2 specified below. 53.3 This appropriation is for transfer to 53.4 the housing development fund for the 53.5 programs specified. Except as 53.6 otherwise indicated, this transfer is 53.7 part of the agency's permanent budget 53.8 base. 53.9 Spending limit on cost of general 53.10 administration of agency programs: 53.11 1998 1999 53.1211,017,00011,684,00011,678,00013,278,000 53.13 $1,550,000 the first year and 53.14 $1,550,000 the second year is for a 53.15 rental housing assistance program for 53.16 persons with a mental illness or 53.17 families with an adult member with a 53.18 mental illness under Minnesota 53.19 Statutes, section 462A.2097. 53.20 A biennial appropriation of $5,750,000 53.21 is made in the first year and is for 53.22 the family homeless prevention and 53.23 assistance program under Minnesota 53.24 Statutes, section 462A.204, and is 53.25 available until June 30, 1999. 53.26 Grants to organizations made under the 53.27 family homeless prevention and 53.28 assistance program may include grants 53.29 (1) to organizations providing case 53.30 management for persons that need 53.31 assistance to rehabilitate their rent 53.32 history and find rental housing, and 53.33 (2) to organizations that will provide, 53.34 and report on the success or failure 53.35 of, innovative approaches to housing 53.36 persons with poor rental histories, 53.37 including, but not limited to, 53.38 assisting tenants in correcting tenant 53.39 screening reports, developing a single 53.40 application fee and process acceptable 53.41 to participating landlords, developing 53.42 a certification of tenants program 53.43 acceptable to participating landlords, 53.44 expungement of unlawful detainer 53.45 records, and creating a bonding program 53.46 to encourage landlords to accept 53.47 high-risk tenants with poor rent 53.48 histories. 53.49 $583,000 the first year and $583,000 53.50 the second year is for the foreclosure 53.51 prevention and assistance program under 53.52 Minnesota Statutes, section 462A.207. 53.53 $2,750,000 the first year and 53.54 $2,750,000 the second year is for the 53.55 rent assistance for family 53.56 stabilization program under Minnesota 53.57 Statutes, section 462A.205. Of this 53.58 amount, $750,000 each year is a 53.59 one-time appropriation and is not added 53.60 to the agency's permanent base. 53.61 $2,348,000 the first year and 54.1 $2,348,000 the second year is for the 54.2 housing trust fund to be deposited in 54.3 the housing trust fund account created 54.4 under Minnesota Statutes, section 54.5 462A.201, and used for the purposes 54.6 provided in that section. Of this 54.7 amount, $550,000 each year must be used 54.8 for transitional housing. 54.9 $8,118,000 the first year and 54.10 $6,493,000 the second year is for the 54.11 affordable rental investment fund 54.12 program under Minnesota Statutes, 54.13 section 462A.21, subdivision 8b. Of 54.14 this amount, $1,625,000 the first year 54.15 is a one-time appropriation and is not 54.16 added to the agency's permanent base. 54.17 Of the one-time appropriation, $125,000 54.18 the first year is for housing for 54.19 people with HIV or AIDS outside of the 54.20 Minneapolis-St. Paul metropolitan 54.21 statistical area. 54.22 To the extent practicable, this 54.23 appropriation shall be used so that an 54.24 approximately equal number of housing 54.25 units are financed in the metropolitan 54.26 area, as defined in Minnesota Statutes, 54.27 section 473.121, subdivision 2, and in 54.28 the nonmetropolitan area. 54.29 (a) In the area of the state outside 54.30 the metropolitan area, the agency must 54.31 work with groups in the funding regions 54.32 created under Minnesota Statutes, 54.33 section 116J.415, to assist the agency 54.34 in identifying the affordable housing 54.35 needed in each region in connection 54.36 with economic development and 54.37 redevelopment efforts and in 54.38 establishing priorities for uses of the 54.39 affordable rental investment fund. The 54.40 groups must include the regional 54.41 development commissioners, the regional 54.42 organization selected under Minnesota 54.43 Statutes, section 116J.415, the private 54.44 industry councils, units of local 54.45 government, community action agencies, 54.46 the Minnesota housing partnership 54.47 network groups, local lenders, 54.48 for-profit and nonprofit developers, 54.49 and realtors. In addition to 54.50 priorities developed by the group, the 54.51 agency must give a preference to 54.52 economically viable projects in which 54.53 units of local government, area 54.54 employers, and the private sector 54.55 contribute financial assistance. 54.56 (b) In the metropolitan area, the 54.57 commissioner shall collaborate with the 54.58 metropolitan council to identify the 54.59 priorities for use of the affordable 54.60 rental investment fund. Funds 54.61 distributed in the metropolitan area 54.62 must be used consistent with the 54.63 objectives of the metropolitan 54.64 development guide, adopted under 54.65 Minnesota Statutes, section 473.145. 54.66 In addition to the priorities 54.67 identified in conjunction with the 55.1 metropolitan council, the agency shall 55.2 give preference to economically viable 55.3 projects that: 55.4 (1) include a contribution of financial 55.5 resources from units of local 55.6 government and area employers; 55.7 (2) take into account the availability 55.8 of transportation in the community; and 55.9 (3) take into account the job training 55.10 efforts in the community. 55.11 $187,000 the first year and $187,000 55.12 the second year is for the urban Indian 55.13 housing program under Minnesota 55.14 Statutes, section 462A.07, subdivision 55.15 15. 55.16 $1,683,000 the first year and 55.17 $1,683,000 the second year is for the 55.18 tribal Indian housing program under 55.19 Minnesota Statutes, section 462A.07, 55.20 subdivision 14. 55.21 $186,000 the first year and $186,000 55.22 the second year is for the Minnesota 55.23 rural and urban homesteading program 55.24 under Minnesota Statutes, section 55.25 462A.057. 55.26 $340,000 the first year and $240,000 55.27 the second year is for nonprofit 55.28 capacity building grants under 55.29 Minnesota Statutes, section 462A.21, 55.30 subdivision 3b. Of this amount, 55.31 $80,000 is for a grant to the Minnesota 55.32 housing partnership. Of this amount, 55.33 $150,000 is for equal grants to an 55.34 organization in each of the six regions 55.35 established under Minnesota Statutes, 55.36 section 116J.415, for capacity building 55.37 grants. Of this amount, $50,000 is for 55.38 a grant in the metropolitan area, as 55.39 defined in Minnesota Statutes, section 55.40 473.121, subdivision 2. Of this 55.41 amount, $100,000 the first year is to 55.42 develop projects under the neighborhood 55.43 land trust program under Minnesota 55.44 Statutes, sections 462A.30 and 462A.31, 55.45 and is available until June 30, 1999. 55.46 The appropriation in the first year for 55.47 the neighborhood land trust program is 55.48 a one-time appropriation and is not 55.49 added to the agency's permanent base. 55.50 $4,368,000 the first year and 55.51 $3,569,000 the second year is for the 55.52 community rehabilitation program under 55.53 Minnesota Statutes, section 462A.206. 55.54 Of this amount, $250,000 the first year 55.55 and $250,000 the second year is for 55.56 full-cycle home ownership and 55.57 purchase-rehabilitation lending 55.58 initiatives. Of this amount, 55.59 $1,218,000 the first year and $419,000 55.60 the second year are one-time 55.61 appropriations and are not added to the 55.62 agency's permanent base. 56.1 Of the one-time appropriation for the 56.2 community rehabilitation program, 56.3 $375,000 the first year and $375,000 56.4 the second year is for grants to 56.5 acquire, demolish, and remove 56.6 substandard multiple-unit residential 56.7 rental property or acquire, 56.8 rehabilitate, and reconfigure 56.9 multiple-unit residential rental 56.10 property. No more than one-half of 56.11 money available in a year shall be 56.12 given to a single project. Priority 56.13 must be given to projects that result 56.14 in the creation of housing 56.15 opportunities that will diversify the 56.16 housing stock and promote the creation 56.17 of life-cycle housing opportunities 56.18 within the community. For the purposes 56.19 of this paragraph, "substandard 56.20 multiple-unit residential rental 56.21 property" is property that meets the 56.22 definition of Minnesota Statutes 1996, 56.23 section 273.1316, subdivision 2. 56.24 Displaced residents must be provided 56.25 relocation assistance, as provided in 56.26 Minnesota Statutes, sections 117.50 to 56.27 117.56. To the extent allowed by 56.28 federal law, a public agency 56.29 administering a federal rent subsidy 56.30 program shall give priority to persons 56.31 displaced by grants under this section. 56.32 Of the one-time appropriation for the 56.33 community rehabilitation program, 56.34 $250,000 the first year is for a grant 56.35 to provide funds to an organization or 56.36 consortium of organizations 56.37 participating in a project that is 56.38 awarded a grant from the metropolitan 56.39 livable communities demonstration 56.40 program to develop affordable and 56.41 life-cycle housing in St. Paul or 56.42 Minneapolis. The project must be based 56.43 upon a comprehensive community planning 56.44 process that creates a long-term plan 56.45 to revitalize a neighborhood and must 56.46 include compact development with 56.47 linkages to employment, transit, and 56.48 affordable life-cycle housing. 56.49 Of the one-time appropriation for the 56.50 community rehabilitation program, up to 56.51 $550,000 the first year is for a grant 56.52 to the city of Landfall to purchase a 56.53 portion of real property in the city 56.54 owned by the Washington county housing 56.55 and redevelopment authority. The 56.56 agency shall not make the grant until 56.57 the city of Landfall has secured the 56.58 balance of the funds necessary to 56.59 purchase the real property from the 56.60 Washington county housing and 56.61 redevelopment authority. The agency 56.62 shall require that the land purchased 56.63 be restricted to use by current 56.64 residents or for affordable housing for 56.65 the term of the bonds issued by the 56.66 city to purchase the land. "Affordable" 56.67 is as defined by the metropolitan 56.68 council for the purposes of the 56.69 metropolitan livable communities 57.1 program. 57.2 A recipient of funds from the community 57.3 rehabilitation program for a project in 57.4 a historic preservation district in St. 57.5 Paul, must provide assurances to the 57.6 agency that the project will conform to 57.7 the written historic preservation 57.8 guidelines for the district and that 57.9 the funding recipient will not seek any 57.10 variance to the guidelines. 57.11 $4,287,000 the first year and 57.12 $4,287,000 the second year is for the 57.13 housing rehabilitation and 57.14 accessibility program under Minnesota 57.15 Statutes, section 462A.05, subdivisions 57.16 14a and 15a. 57.17 $1,075,000 the first year and 57.18 $1,075,000 the second year is for the 57.19 home ownership assistance fund under 57.20 Minnesota Statutes, section 462A.21, 57.21 subdivision 8. Of this amount, 57.22 $175,000 each year is a one-time 57.23 appropriation and is not added to the 57.24 agency's permanent base. 57.25 $25,000 the first year and $25,000 the 57.26 second year is for home equity 57.27 conversion counseling grants under 57.28 Minnesota Statutes, section 462A.28. 57.29 The money must be used for a counseling 57.30 service which only counsels for home 57.31 equity conversions. 57.32 $50,000 is for the costs of the 57.33 advisory task force on lead hazard 57.34 reduction, established in article 4, 57.35 section 1. This is a one-time 57.36 appropriation and is not added to the 57.37 agency's permanent base. 57.38 $80,000 is for the affordable 57.39 neighborhood design and development 57.40 initiative, in Laws 1995, chapter 224, 57.41 section 122. This is a one-time 57.42 appropriation and is not added to the 57.43 agency's permanent base. 57.44 Sec. 5. [HEALTHY HOMES PILOT PROJECT.] 57.45 (a) The commissioner of administration shall establish a 57.46 Minnesota healthy homes pilot project to provide training and 57.47 technical assistance to selected building code officials, and 57.48 low-income housing developers and their contractors in the pilot 57.49 communities to address the problem of defective homes and to 57.50 develop a model program for education, training, and technical 57.51 assistance to be replicated statewide. The project must be 57.52 implemented in up to four demonstration sites (two urban, one 57.53 suburban, and one in greater Minnesota) and work with building 57.54 code officials from the selected municipalities, and selected 58.1 low-income housing developers and their building contractors. 58.2 The project must: 58.3 (1) provide up to four low-income housing developers with 58.4 education and implementation guidelines to produce healthy 58.5 homes, including on-site training during the actual construction 58.6 phase; 58.7 (2) demonstrate the use of mechanical ventilation systems 58.8 as a strategy for healthy indoor air while allowing for a 58.9 tightly constructed building, including design, installation, 58.10 and testing of this approach; 58.11 (3) conduct classroom and on-site training at designated 58.12 building sites to provide inspectors and builders with practical 58.13 training and experience from the ground up; 58.14 (4) conduct integrated performance testing of homes 58.15 throughout the construction process; 58.16 (5) establish a protocol utilizing the results of the pilot 58.17 project, which can be used statewide as a guideline for healthy 58.18 home construction; 58.19 (6) develop an educational program for homeowners in the 58.20 pilot communities on how to operate and maintain their homes in 58.21 order to prevent contributing to indoor air quality problems 58.22 that lead to unhealthy houses; and 58.23 (7) report to the house and senate finance and policy 58.24 committees with jurisdiction over housing on the progress and 58.25 results of the pilot project by March 15, 1999. 58.26 (b) The commissioner of administration shall make a grant 58.27 to Sustainable Resources Center, a nonprofit organization with 58.28 expertise and certification in indoor air quality diagnostics 58.29 and remediating sick homes, to design, implement, and manage the 58.30 pilot project. 58.31 (c) This section is effective the day following final 58.32 enactment. 58.33 Sec. 6. [METRO STATE UNIVERSITY HOUSING PROJECT.] 58.34 The housing finance agency shall consult with the Minnesota 58.35 state colleges and universities system, the city of St. Paul, 58.36 the Dayton's Bluff neighborhood housing service, the district 4 59.1 council, the east side neighborhood development corporation, the 59.2 swede hollow land trust organization, east metro women's 59.3 resource center, and other interested parties concerning the 59.4 feasibility of a project to acquire and/or rehabilitate existing 59.5 housing structures for use as rental housing for low-income 59.6 students at Metro State University. The housing finance agency 59.7 shall report to the house and senate finance and policy 59.8 committees with jurisdiction over housing and education during 59.9 the 1999 legislative session on the feasibility of the project, 59.10 and identify the barriers to the project and the potential 59.11 sources of funding. 59.12 Sec. 7. Minnesota Statutes 1996, section 462A.05, 59.13 subdivision 14, is amended to read: 59.14 Subd. 14. [REHABILITATION LOANS.] It may agree to 59.15 purchase, make, or otherwise participate in the making, and may 59.16 enter into commitments for the purchase, making, or 59.17 participation in the making, of eligible loans for 59.18 rehabilitation to persons and families of low and moderate 59.19 income, and to owners of existing residential housing for 59.20 occupancy by such persons and families, for the rehabilitation 59.21 of existing residential housing owned by them. The loans may be 59.22 insured or uninsured and may be made with security, or may be 59.23 unsecured, as the agency deems advisable. The loans may be in 59.24 addition to or in combination with long-term eligible mortgage 59.25 loans under subdivision 3. They may be made in amounts 59.26 sufficient to refinance existing indebtedness secured by the 59.27 property, if refinancing is determined by the agency to be 59.28 necessary to permit the owner to meet the owner's housing cost 59.29 without expending an unreasonable portion of the owner's income 59.30 thereon. No loan for rehabilitation shall be made unless the 59.31 agency determines that the loan will be used primarily to make 59.32 the housing more desirable to live in, to increase the market 59.33 value of the housing, for compliance with state, county or 59.34 municipal building, housing maintenance, fire, health or similar 59.35 codes and standards applicable to housing, or to accomplish 59.36 energy conservation related improvements. In unincorporated 60.1 areas and municipalities not having codes and standards, the 60.2 agency may, solely for the purpose of administering the 60.3 provisions of this chapter, establish codes and standards. 60.4 Except for accessibility improvements under this subdivision and 60.5 subdivisions 14a and 24, clause (1), no secured loan for 60.6 rehabilitation of any property shall be made in an amount which, 60.7 with all other existing indebtedness secured by the property, 60.8 would exceed 110 percent of its market value, as determined by 60.9 the agency. No loan under this subdivision shall be denied 60.10 solely because the loan will not be used for placing the 60.11 residential housing in full compliance with all state, county, 60.12 or municipal building, housing maintenance, fire, health, or 60.13 similar codes and standards applicable to housing. 60.14 Rehabilitation loans shall be made only when the agency 60.15 determines that financing is not otherwise available, in whole 60.16 or in part, from private lenders upon equivalent terms and 60.17 conditions. Accessibility rehabilitation loans authorized under 60.18 this subdivision may be made to eligible persons and families 60.19 without limitations relating to the maximum incomes of the 60.20 borrowers if: 60.21 (1) the borrower or a member of the borrower's family 60.22 requires a level of care provided in a hospital, skilled nursing 60.23 facility, or intermediate care facility for persons with mental 60.24 retardation or related conditions; 60.25 (2) home care is appropriate; and 60.26 (3) the improvement will enable the borrower or a member of 60.27 the borrower's family to reside in the housing. 60.28 Sec. 8. Minnesota Statutes 1997 Supplement, section 60.29 462A.05, subdivision 39, is amended to read: 60.30 Subd. 39. [EQUITY TAKE-OUT LOANS.] The agency may make 60.31 equity take-out loans to owners ofsection 8 project-based and60.32section 236federally assisted rental propertyupon which the60.33agency holds a first mortgage. The owner of asection 860.34project-basedfederally assisted rental property must agree to 60.35 participate in thesection 8federal assistance program and 60.36 extend the low-income affordability restrictions on the housing 61.1 for the maximum term of thesection 8federal assistance 61.2 contract.The owner of section 236 rental property must agree61.3to participate in the section 236 interest reduction payments61.4program, to extend any existing low-income affordability61.5restrictions on the housing, and to extend any rental assistance61.6payments for the maximum term permitted under the agreement for61.7rental assistance payments.The equity take-out loan must be 61.8 secured by a subordinate loan on the property and may include 61.9 additional appropriate security determined necessary by the 61.10 agency. 61.11 Sec. 9. Minnesota Statutes 1997 Supplement, section 61.12 462A.205, subdivision 1, is amended to read: 61.13 Subdivision 1. [FAMILY STABILIZATION DEMONSTRATION 61.14 PROJECT.] The agency, in consultation with the department of 61.15 human services, may establish a rent assistance for family 61.16 stabilization demonstration project. The purpose of the project 61.17 is to provide rental assistance to families who, at the time of 61.18 initial eligibility for rental assistance under this section, 61.19 were receiving public assistance, and had a caretaker parent 61.20participating in a self-sufficiency programwho was complying 61.21 with the parent's job search support plan or employment plan and 61.22 at least one minor child and to provide rental assistance to 61.23 families who, at the time of initial eligibility for rental 61.24 assistance under this section, were receiving public assistance, 61.25 and had a caretaker parent who had earned income and with at 61.26 least one minor child. The demonstration project is limited to 61.27 counties with high average housing costs. The program must 61.28 offer two options: a voucher option and a project-based voucher 61.29 option. The funds may be distributed on a request for proposal 61.30 basis. 61.31 Sec. 10. Minnesota Statutes 1997 Supplement, section 61.32 462A.205, subdivision 2, is amended to read: 61.33 Subd. 2. [DEFINITIONS.] For the purposes of this section, 61.34 the following terms have the meanings given them. 61.35 (a) "Caretaker parent" means a parent, relative caretaker, 61.36 or minor caretaker as defined by the aid to families with 62.1 dependent children program, sections 256.72 to 256.87, or its 62.2 successor program. 62.3 (b) "County agency" means the agency designated by the 62.4 county board to implement financial assistance for current 62.5 public assistance programs and for the Minnesota family 62.6 investment program statewide. 62.7 (c) "Counties with high average housing costs" means 62.8 counties whose average federal section 8 fair market rents as 62.9 determined by the Department of Housing and Urban Development 62.10 are in the highest one-third of average rents in the state. 62.11 (d) "Designated rental property" is rental property (1) 62.12 that is made available by a self-sufficiency program for use by 62.13 participating families and meets federal section 8 existing 62.14 quality standards, or (2) that has received federal, state, or 62.15 local rental rehabilitation assistance since January 1, 1987, 62.16 and meets federal section 8 existing housing quality standards. 62.17 (e) "Earned income" for a family receiving rental 62.18 assistance under this section means cash or in-kind income 62.19 earned through the receipt of wages, salary, commissions, profit 62.20 from employment activities, net profit from self-employment 62.21 activities, payments made by an employer for regularly accrued 62.22 vacation or sick leave, and any other profit from activity 62.23 earned through effort or labor. 62.24 (f) "Employment and training service provider" means a 62.25 provider as defined in chapter 256J. 62.26 (g) "Employment plan" means a plan as defined in chapter 62.27 256J. 62.28 (h) "Family or participating family" means: 62.29 (1) a family with a caretaker parent who isparticipating62.30in a self-sufficiency programcomplying with the parent's job 62.31 search support plan or employment plan and with at least one 62.32 minor child; 62.33 (2) a family that, at the time it began receiving rent 62.34 assistance under this section, had a caretaker parent 62.35participating in a self-sufficiency programcomplying with the 62.36 parent's job search support plan or employment plan and had at 63.1 least one minor child; 63.2 (3) a family with a caretaker parent who is receiving 63.3 public assistance and has earned income and with at least one 63.4 minor child;or63.5 (4) a family that, at the time it began receiving rent 63.6 assistance under this section, had a caretaker parent who had 63.7 earned income and at least one minor child; and 63.8 (5) a family that has at least one member who is a 63.9 recipient of public assistance. 63.10(g)(i) "Gross family income" for a family receiving rental 63.11 assistance under this section means the gross amount of the 63.12 wages, salaries, social security payments, pensions, workers' 63.13 compensation, reemployment insurance, the cash assistance 63.14 portion of public assistance payments, alimony, and child 63.15 support, and income from assets received by the family. 63.16(h)(j) "Local housing organization" means the agency of 63.17 local government responsible for administering the Department of 63.18 Housing and Urban Development's section 8 existing voucher and 63.19 certificate program or a nonprofit or for-profit organization 63.20 experienced in housing management. 63.21(i)(k) "Public assistance" means aid to families with 63.22 dependent children, or its successor program, family general 63.23 assistance, or its successor program, or family work readiness, 63.24 or its successor program. 63.25(j) "Self-sufficiency program" means a program operated by63.26an employment and training service provider as defined in63.27chapter 256J, an employability program administered by a63.28community action agency, or courses of study at an accredited63.29institution of higher education pursued with at least half-time63.30student status.63.31 Sec. 11. Minnesota Statutes 1997 Supplement, section 63.32 462A.205, subdivision 5, is amended to read: 63.33 Subd. 5. [VOUCHER OPTION.] At least one-half of the 63.34 appropriated funds must be made available for a voucher option. 63.35 Under the voucher option, the Minnesota housing finance agency, 63.36 in consultation with the department of human services, will 64.1 award a number of vouchers toself-sufficiency program64.2administratorsemployment and training service providers for 64.3 participating familiesand to county agencies for participating64.4families with earned income. Families may use the voucher for 64.5 any rental housing that is certified by the local housing 64.6 organization as meeting section 8 existing housing quality 64.7 standards. 64.8 Sec. 12. Minnesota Statutes 1997 Supplement, section 64.9 462A.205, subdivision 6, is amended to read: 64.10 Subd. 6. [PROJECT-BASED VOUCHER OPTION.] A portion of the 64.11 appropriated funds must be made available for a project-based 64.12 voucher option. Under the project-based voucher option, the 64.13 Minnesota housing finance agency, in consultation with the 64.14 department of human services, will award a number of vouchers to 64.15self-sufficiency program administrators and to county64.16agenciesemployment and training service providers for 64.17 participating families who live in designated rental property 64.18 that is certified by a local housing organization as meeting 64.19 section 8 existing housing quality standards. 64.20 Sec. 13. Minnesota Statutes 1997 Supplement, section 64.21 462A.205, subdivision 9, is amended to read: 64.22 Subd. 9. [VOUCHERS FOR FAMILIES WITH A CARETAKER PARENT 64.23 WITH EARNED INCOME.] (a) Applications to provide the rental 64.24 assistance for families with a caretaker parent with earned 64.25 income under either the voucher or project-based option must be 64.26 submitted jointly by a local housing organization anda county64.27agencyan employment and training service provider. The 64.28 application must include a description of how the caretaker 64.29 parent participants will be selected. 64.30 (b)County agenciesEmployment and training service 64.31 providers awarded vouchers must select the caretaker parents 64.32 with earned income whose families will receive the rental 64.33 assistance. Thecounty agencyemployment and training service 64.34 provider must notify the local housing organization and the 64.35 agency if: 64.36 (1) at the time of annual recertification, the caretaker 65.1 parent no longer has earned income and is not in compliance with 65.2 the caretaker parent's employment plan or job search plan; and 65.3 (2) for a period of six months after the annual 65.4 recertification, the caretaker parent has no earned income and 65.5 has failed to comply with the job search support plan or 65.6 employment plan. 65.7 (c) Thecounty agencyemployment and training service 65.8 provider must provide the caretaker parent who, at the time of 65.9 annual recertification, has no earned income and is not in 65.10 compliance with the job search support plan or employment plan 65.11 with the notice specified in Minnesota Rules, part 4900.3379. 65.12 Thecounty agencyemployment and training service provider must 65.13 send a subsequent notice to the caretaker parent, the local 65.14 housing organization, and the Minnesota housing finance agency 65.15 60 days before the termination of rental assistance. 65.16 (d) If the local housing organization receives notice from 65.17a county agencyan employment and training service provider that 65.18 a caretaker parent whose initial eligibility for rental 65.19 assistance was based on the receipt of earned income no longer 65.20 has earned income and for a period of six months afterthe65.21termination of earned incomethe annual recertification has 65.22 failed to comply with the caretaker parent's job search plan or 65.23 employment plan, the local housing organization must notify the 65.24 property owner that rental assistance may terminate and notify 65.25 the caretaker parent of the termination of rental assistance 65.26 under Minnesota Rules, part 4900.3380. 65.27 (e) Thecounty agencyemployment and training service 65.28 provider awarded vouchers for families with a caretaker parent 65.29 with earned income must comply with the provisions of Minnesota 65.30 Rules, part 4900.3377. 65.31 (f) For families whose initial eligibility for rental 65.32 assistance was based on the receipt of earned income, rental 65.33 assistance must be terminated under any of the following 65.34 conditions: 65.35 (1) the family is evicted from the property for cause; 65.36 (2) the caretaker parent no longer has earned income and, 66.1aftersix months after an annual recertification, is not in 66.2 compliance with the parent's job search or employment plan; 66.3 (3) 30 percent of the family's gross income equals or 66.4 exceeds the amount of the housing costs for two or more 66.5 consecutive months; 66.6 (4) the family has received rental assistance under this 66.7 section for a36-month60-month period; or 66.8 (5) the rental unit no longer meets federal section 8 66.9 existing housing quality standards, the owner refused to make 66.10 necessary repairs or alterations to bring the rental unit into 66.11 compliance within a reasonable time, and the caretaker parent 66.12 refused to relocate to a qualifying unit. 66.13 (g) Ifa county agencyan employment and training service 66.14 provider determines that a caretaker parent no longer has earned 66.15 income and is not in compliance with the parent's job search or 66.16 employment plan, thecounty agencyemployment and training 66.17 service provider must notify the caretaker parent of that 66.18 determination. The notice must be in writing and must explain 66.19 the effect of not having earned income or failing to be in 66.20 compliance with the job search or employment plan will have on 66.21 the rental assistance. The notice must: 66.22 (1) state that rental assistance will end six months after 66.23earned income has endedan annual recertification; 66.24 (2) specify the date the rental assistance will end; 66.25 (3) explain that after the date specified, the caretaker 66.26 parent will be responsible for the total housing costs; 66.27 (4) describe the actions the caretaker parent may take to 66.28 avoid termination of rental assistance; and 66.29 (5) inform the caretaker parent of the caretaker parent's 66.30 responsibility to notify thecounty agencyemployment and 66.31 training service provider if the caretaker parent has earned 66.32 income. 66.33 Sec. 14. [462A.2066] [HOMEOWNERSHIP ZONES PROGRAM.] 66.34 Subdivision 1. [ACCOUNT.] The homeownership zones fund 66.35 account is established as a separate account in the housing 66.36 development fund. Money in the account is appropriated to the 67.1 agency for the purposes specified in this section. 67.2 Subd. 2. [COMPLEMENTARY TO FEDERAL PROGRAM.] In 67.3 implementing the state homeownership zones program, the agency 67.4 shall follow, to the extent practicable and not inconsistent 67.5 with provisions in this section, the federal program guidelines 67.6 for homeownership zones, established in the Federal Register, 67.7 volume 62, number 129, July 7, 1997. 67.8 Subd. 3. [ELIGIBILITY; GRANTS AND LOANS.] The agency may 67.9 make grants or loans to cities, counties, or nonprofit 67.10 organizations for the purposes of this section. In awarding 67.11 grants and loans, the agency shall take into account the amount 67.12 of money that the applicant leverages from other sources, 67.13 including the federal homeownership zones program. The 67.14 applicant must indicate in its application how the proposed 67.15 project is consistent with the consolidated housing plan. Not 67.16 less than ten days before submitting its application to the 67.17 agency, a county or nonprofit organization must notify the city 67.18 in which the project will be located of its intent to apply for 67.19 funds. The city may submit to the agency its written comments 67.20 on the county's or nonprofit organization's application and the 67.21 agency shall consider the city's comments in reviewing the 67.22 application. 67.23 Subd. 4. [SPECIAL PROJECT CHARACTERISTICS.] A 67.24 homeownership zone project may include scattered sites of less 67.25 than 300 units in an identified zone as well as a single 67.26 contiguous tract. A homeownership zone project must incorporate 67.27 energy conservation design and measures into the project. 67.28 Sec. 15. Minnesota Statutes 1996, section 462A.21, is 67.29 amended by adding a subdivision to read: 67.30 Subd. 24. [HOMEOWNERSHIP ZONES.] The agency may spend 67.31 money for the purposes of the homeownership zones program under 67.32 section 462A.2066, and may pay the costs and expenses necessary 67.33 and incidental to the development and operation of the program. 67.34 It may approve allocations of more than $300,000 to individual 67.35 projects. 67.36 Sec. 16. Minnesota Statutes 1996, section 462A.21, is 68.1 amended by adding a subdivision to read: 68.2 Subd. 25. [FULL CYCLE HOMEOWNERSHIP.] It may spend money 68.3 for the purposes of the full cycle homeownership services 68.4 program under section 462A.209, and may pay the costs and 68.5 expenses necessary and incidental to the development and 68.6 operation of the program. 68.7 Sec. 17. Minnesota Statutes 1996, section 462A.222, 68.8 subdivision 3, is amended to read: 68.9 Subd. 3. [ALLOCATION PROCEDURE.] (a) Projects will be 68.10 awarded tax credits in three competitive rounds on an annual 68.11 basis. The date for applications for each round must be 68.12 determined by the agency. No allocating agency may award tax 68.13 credits prior to the application dates established by the agency. 68.14 (b) Each allocating agency must meet the requirements of 68.15 section 42(m) of the Internal Revenue Code of 1986, as amended 68.16 through December 31, 1989, for the allocation of tax credits and 68.17 the selection of projects. 68.18 (c) For projects that are eligible for an allocation of 68.19 credits pursuant to section 42(h)(4) of the Internal Revenue 68.20 Code of 1986, as amended, tax credits may only be allocated if 68.21 the project satisfies the requirements of the allocating 68.22 agency's qualified allocation plan. For projects that are 68.23 eligible for an allocation of credits pursuant to section 68.24 42(h)(4) of the Internal Revenue Code of 1986, as amended, for 68.25 which the agency is the issuer of the bonds for the project, or 68.26 the issuer of the bonds for the project is located outside the 68.27 jurisdiction of a city or county that has received reserved tax 68.28 credits, the applicable allocation plan is the agency's 68.29 qualified allocation plan. 68.30 (d) For applications submitted for the first round, an 68.31 allocating agency may allocate tax credits only to the following 68.32 types of projects: 68.33 (1) in the metropolitan area: 68.34 (i) new construction or substantial rehabilitation of 68.35 projects in which, for the term of the extended use period, at 68.36 least 75 percent of the total tax credit units are single-room 69.1 occupancy, efficiency, or one bedroom units and which are 69.2 affordable by households whose income does not exceed 30 percent 69.3 of the median income; 69.4 (ii) new construction or substantial rehabilitation family 69.5 housing projects that are not restricted to persons who are 55 69.6 years of age or older and in which, for the term of the extended 69.7 use period, at least 75 percent of the tax credit units contain 69.8 two or more bedrooms and at least one-third of the 75 percent 69.9 contain three or more bedrooms; or 69.10 (iii) substantial rehabilitation projects in neighborhoods 69.11 targeted by the city for revitalization; 69.12 (2) outside the metropolitan area, projects which meet a 69.13 locally identified housing need and which are in short supply in 69.14 the local housing market as evidenced by credible data submitted 69.15 with the application; 69.16 (3) projects that are not restricted to persons of a 69.17 particular age group and in which, for the term of the extended 69.18 use period, a percentage of the units are set aside and rented 69.19 to persons: 69.20 (i) with a serious and persistent mental illness as defined 69.21 in section 245.462, subdivision 20, paragraph (c); 69.22 (ii) with a developmental disability as defined in United 69.23 States Code, title 42, section 6001, paragraph (5), as amended 69.24 through December 31, 1990; 69.25 (iii) who have been assessed as drug dependent persons as 69.26 defined in section 254A.02, subdivision 5, and are receiving or 69.27 will receive care and treatment services provided by an approved 69.28 treatment program as defined in section 254A.02, subdivision 2; 69.29 (iv) with a brain injury as defined in section 256B.093, 69.30 subdivision 4, paragraph (a); or 69.31 (v) with permanent physical disabilities that substantially 69.32 limit one or more major life activities, if at least 50 percent 69.33 of the units in the project are accessible as provided under 69.34 Minnesota Rules, chapter 1340; 69.35 (4) projects, whether or not restricted to persons of a 69.36 particular age group, which preserve existing subsidized housing 70.1which is subject to prepaymentif the use of tax credits is 70.2 necessary to prevent conversion to market rate use; or 70.3 (5) projects financed by the Farmers Home Administration, 70.4 or its successor agency, which meet statewide distribution goals. 70.5 (e) Before the date for applications for the second round, 70.6 the allocating agencies other than the agency shall return all 70.7 uncommitted and unallocated tax credits to the pool from which 70.8 they were allocated, along with copies of any allocation or 70.9 commitment. In the second round, the agency shall allocate the 70.10 remaining credits from the regional pools to projects from the 70.11 respective regions. 70.12 (f) In the third round, all unallocated tax credits must be 70.13 transferred to a unified pool for allocation by the agency on a 70.14 statewide basis. 70.15 (g) Unused portions of the state ceiling for low-income 70.16 housing tax credits reserved to cities and counties for 70.17 allocation may be returned at any time to the agency for 70.18 allocation. 70.19 (h) If an allocating agency determines, at any time after 70.20 the initial commitment or allocation for a specific project, 70.21 that a project is no longer eligible for all or a portion of the 70.22 low-income housing tax credits committed or allocated to the 70.23 project, the credits must be transferred to the agency to be 70.24 reallocated pursuant to the procedures established in paragraphs 70.25 (e) to (g); provided that if the tax credits for which the 70.26 project is no longer eligible are from the current year's annual 70.27 ceiling and the allocating agency maintains a waiting list, the 70.28 allocating agency may continue to commit or allocate the credits 70.29 until not later than October 1, at which time any uncommitted 70.30 credits must be transferred to the agency. 70.31 Sec. 18. [471.9997] [FEDERALLY ASSISTED RENTAL HOUSING; 70.32 IMPACT STATEMENT.] 70.33 At least 12 months before termination of participation in a 70.34 federally assisted rental housing program, including 70.35 project-based section 8 and section 236 rental housing, the 70.36 owner of the federally assisted rental housing must submit a 71.1 statement regarding the impact of termination on the residents 71.2 of the rental housing to the governing body of the local 71.3 government unit in which the housing is located. The impact 71.4 statement must identify the number of units that will no longer 71.5 be subject to rent restrictions imposed by the federal program, 71.6 the estimated rents that will be charged as compared to rents 71.7 charged under the federal program, and actions the owner will 71.8 take to assist displaced tenants in obtaining other housing. A 71.9 copy of the impact statement must be provided to each resident 71.10 of the affected building, the Minnesota housing finance agency, 71.11 and, if the property is located in the metropolitan area as 71.12 defined in section 473.121, subdivision 2, the metropolitan 71.13 council. 71.14 Sec. 19. Minnesota Statutes 1996, section 474A.061, 71.15 subdivision 2a, is amended to read: 71.16 Subd. 2a. [HOUSING POOL ALLOCATION.] (a) On the first 71.17 business day that falls on a Monday of the calendar year and the 71.18 first Monday in February, the commissioner shall allocate 71.19 available bonding authority in the housing pool to applications 71.20 received by the Monday of the previous week for residential 71.21 rental projects that are not restricted to persons who are 55 71.22 years of age or older and that meet the eligibility criteria 71.23 under section 474A.047, except that allocations may be made to 71.24 projects that are restricted to persons who are 55 years of age 71.25 or older if the project preserves existing federally assisted 71.26 rental housing. Projects that preserve existing federally 71.27 assisted rental housing shall be allocated available bonding 71.28 authority in the housing pool prior to the allocation of 71.29 available bonding authority to other eligible residential rental 71.30 projects. If an issuer that receives an allocation under this 71.31 paragraph does not issue obligations equal to all or a portion 71.32 of the allocation received within 120 days of the allocation or 71.33 returns the allocation to the commissioner, the amount of the 71.34 allocation is canceled and returned for reallocation through the 71.35 housing pool. 71.36 (b) After February 1, and through February 15, the 72.1 Minnesota housing finance agency may accept applications from 72.2 cities for single-family housing programs which meet program 72.3 requirements as follows: 72.4 (1) the housing program must meet a locally identified 72.5 housing need and be economically viable; 72.6 (2) the adjusted income of home buyers may not exceed the 72.7 greater of the agency's income limits or 80 percent of the area 72.8 median income as published by the Department of Housing and 72.9 Urban Development; 72.10 (3) house price limits may not exceed: 72.11 (i) the greater of agency house price limits or the federal 72.12 price limits for housing up to a maximum of $95,000; or 72.13 (ii) for a new construction affordability initiative, the 72.14 greater of 115 percent of agency house price limits or 90 72.15 percent of the median purchase price in the city for which the 72.16 bonds are to be sold up to a maximum of $95,000. 72.17 Data establishing the median purchase price in the city 72.18 must be included in the application by a city requesting house 72.19 price limits higher than the housing finance agency's house 72.20 price limits; and 72.21 (4) an application deposit equal to one percent of the 72.22 requested allocation must be submitted before the agency 72.23 forwards the list specifying the amounts allocated to the 72.24 commissioner under paragraph (c). The agency shall submit the 72.25 city's application and application deposit to the commissioner 72.26 when requesting an allocation from the housing pool. 72.27 Applications by a consortium shall include the name of each 72.28 member of the consortium and the amount of allocation requested 72.29 by each member. 72.30 The Minnesota housing finance agency may accept 72.31 applications from June 15 through June 30 from cities for 72.32 single-family housing programs which meet program requirements 72.33 specified under clauses (1) to (4) if bonding authority is 72.34 available in the housing pool. The agency must allot available 72.35 bonding authority. For purposes of paragraphs (a) to (g), 72.36 "city" means a county or a consortium of local government units 73.1 that agree through a joint powers agreement to apply together 73.2 for single-family housing programs, and has the meaning given it 73.3 in section 462C.02, subdivision 6. "Agency" means the Minnesota 73.4 housing finance agency. 73.5 (c) The total amount of allocation for mortgage bonds for 73.6 one city is limited to the lesser of: (i) the amount requested, 73.7 or (ii) the product of the total amount available for mortgage 73.8 bonds from the housing pool, multiplied by the ratio of each 73.9 applicant's population as determined by the most recent estimate 73.10 of the city's population released by the state demographer's 73.11 office to the total of all the applicants' population, except 73.12 that each applicant shall be allocated a minimum of $100,000 73.13 regardless of the amount requested or the amount determined 73.14 under the formula in clause (ii). If a city applying for an 73.15 allocation is located within a county that has also applied for 73.16 an allocation, the city's population will be deducted from the 73.17 county's population in calculating the amount of allocations 73.18 under this paragraph. 73.19 Upon determining the amount of each applicant's allocation, 73.20 the agency shall forward a list specifying the amounts allotted 73.21 to each application and application deposit checks to the 73.22 commissioner. 73.23 (d) The agency may issue bonds on behalf of participating 73.24 cities. The agency shall request an allocation from the 73.25 commissioner for all applicants who choose to have the agency 73.26 issue bonds on their behalf and the commissioner shall allocate 73.27 the requested amount to the agency. The agency may request an 73.28 allocation at any time after the first Monday in February and 73.29 through the last Monday in July, but may request an allocation 73.30 no later than the last Monday in July. The commissioner shall 73.31 return any application deposit to a city that paid an 73.32 application deposit under paragraph (b), clause (4), but was not 73.33 part of the list forwarded to the commissioner under paragraph 73.34 (c). 73.35 (e) A city may choose to issue bonds on its own behalf or 73.36 through a joint powers agreement or may use bonding authority 74.1 for mortgage credit certificates and may request an allocation 74.2 from the commissioner. If the total amount requested by all 74.3 applicants exceeds the amount available in the pool, the city 74.4 may not receive a greater allocation than the amount it would 74.5 have received under the list forwarded by the Minnesota housing 74.6 finance agency to the commissioner. No city may request or 74.7 receive an allocation from the commissioner until the list under 74.8 paragraph (c) has been forwarded to the commissioner. A city 74.9 must request an allocation from the commissioner no later than 74.10 14 days before the unified pool is created pursuant to section 74.11 474A.091, subdivision 1. On and after the first Monday in 74.12 February and through the last Monday in July, no city may 74.13 receive an allocation from the housing pool which has not first 74.14 applied to the Minnesota housing finance agency. The 74.15 commissioner shall allocate the requested amount to the city or 74.16 cities subject to the limitations under this paragraph. 74.17 If a city issues mortgage bonds from an allocation received 74.18 under this paragraph, the issuer must provide for the recycling 74.19 of funds into new loans. If the issuer is not able to provide 74.20 for recycling, the issuer must notify the commissioner in 74.21 writing of the reason that recycling was not possible and the 74.22 reason the issuer elected not to have the Minnesota housing 74.23 finance agency issue the bonds. "Recycling" means the use of 74.24 money generated from the repayment and prepayment of loans for 74.25 further eligible loans or for the redemption of bonds and the 74.26 issuance of current refunding bonds. 74.27 (f) No entitlement city or county or city in an entitlement 74.28 county may apply for or be allocated authority to issue bonds or 74.29 use mortgage credit certificates from the housing pool. 74.30 (g) A city that does not use at least 50 percent of their 74.31 allotment by the date applications are due for the first 74.32 allocation that is made from the housing pool for single-family 74.33 housing programs in the immediately succeeding calendar year may 74.34 not apply to the housing pool for a single-family mortgage bond 74.35 or mortgage credit certificate program allocation or receive an 74.36 allotment from the housing pool in the succeeding two calendar 75.1 years. Each local government unit in a consortium must meet the 75.2 requirements of this paragraph. 75.3 Sec. 20. Laws 1997, Second Special Session chapter 2, 75.4 section 4, subdivision 3, is amended to read: 75.5 Subd. 3. Community Rehabilitation 75.6 Fund Program 4,500,000 75.7 This is a one-time appropriation from 75.8 the general fund for the community 75.9 rehabilitation fund program under 75.10 Minnesota Statutes, section 462A.206. 75.11 Of this amount, up to $500,000 is 75.12 available for grants for damages 75.13 occurring after June 10, 1997, in an 75.14 area designated under a presidential 75.15 declaration of major 75.16 disaster. Pursuant to a plan approved 75.17 by the agency, grants or loans may be 75.18 made without regard to the income of 75.19 the borrower in communities where at 75.20 least 20 percent of the housing stock 75.21 is subject to acquisition and buyout as 75.22 a result of the 1997 flooding. The 75.23 grants or loans made without regard to 75.24 the borrower's income shall not exceed 75.25 the maximum grant or loan amount 75.26 available to buyout households. This 75.27 appropriation is available until 75.28 expended.