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Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

                            CHAPTER 224-S.F.No. 1670 
                  An act relating to the organization and operation of 
                  state government; appropriating money for economic 
                  development and certain agencies of state government, 
                  with certain conditions; establishing and modifying 
                  certain programs; providing for regulation of certain 
                  activities and practices; providing for accounts, 
                  assessments, and fees; requiring studies and reports; 
                  amending Minnesota Statutes 1994, sections 5.14; 
                  16B.08, subdivision 7; 44A.01, subdivision 2; 97A.531, 
                  by adding a subdivision; 116J.552, subdivision 2; 
                  116J.555, subdivision 2; 116J.873, subdivision 3, and 
                  by adding a subdivision; 116J.982, subdivision 3; 
                  116M.16, subdivision 2; 116M.18, subdivisions 4, 5, 
                  and by adding a subdivision; 116N.03, subdivision 2; 
                  116N.08, subdivisions 5, 6, and by adding a 
                  subdivision; 124.85, by adding a subdivision; 175.171; 
                  176.011, subdivision 7a; 176.231, by adding a 
                  subdivision; 207A.01; 216B.16, subdivision 2, and by 
                  adding a subdivision; 216B.2424; 216B.27, subdivision 
                  4; 237.701, subdivision 1; 245A.11, subdivision 2; 
                  268A.01, subdivisions 4, 5, 6, 9, and 10; 268A.03; 
                  268A.06, subdivision 1; 268A.07; 268A.08, subdivisions 
                  1 and 2; 268A.13; 298.22, subdivision 2; 298.223, 
                  subdivision 2; 462.357, subdivision 7; 462A.05, 
                  subdivisions 14, 15c, and 30; 462A.201, subdivision 2; 
                  462A.202, subdivisions 2 and 6; 462A.204, subdivision 
                  1; 462A.205, subdivision 4; 462A.206, subdivisions 2 
                  and 5; 462A.21, subdivisions 3b, 8, 8b, 13, 21, and by 
                  adding subdivisions; 469.0171; 504.33, subdivisions 2 
                  and 3; 504.34, subdivisions 1 and 2; and 504.35; Laws 
                  1993, chapter 369, section 9, subdivisions 2 and 3; 
                  Laws 1994, chapter 573, section 5, subdivision 2; 
                  chapter 643, section 19, subdivision 9; proposing 
                  coding for new law in Minnesota Statutes, chapters 
                  97A; 116J; 176; 178; 268A; 383B; and 462A; repealing 
                  Minnesota Statutes 1994, sections 97A.531, 
                  subdivisions 2, 3, 4, 5, and 6; 116J.874, subdivision 
                  6; 268A.01, subdivisions 7, 11, and 12; 268A.09; 
                  298.2211, subdivision 3a; and 462A.21, subdivision 8c; 
                  Laws 1990, chapter 521, section 4. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
        Section 1.  [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 
           The sums shown in the columns marked "APPROPRIATIONS" are 
        appropriated from the general fund, or another named fund, to 
        the agencies and for the purposes specified in this act, to be 
        available for the fiscal years indicated for each purpose.  The 
        figures "1996" and "1997," where used in this act, mean that the 
        appropriation or appropriations listed under them are available 
        for the year ending June 30, 1996, or June 30, 1997, 
        respectively.  The term "first year" means the fiscal year 
        ending June 30, 1996, and "second year" means the fiscal year 
        ending June 30, 1997. 
                                SUMMARY BY FUND
                      1995        1996          1997           TOTAL
        General     $408,000 $194,091,000   $160,733,000   $355,232,000
        Petroleum Tank
        Cleanup                   838,000        842,000      1,680,000
        Trunk Highway             670,000        670,000      1,340,000 
        Special 
        Compensation 407,000   20,641,000     18,179,000     39,227,000
        Special Revenue           336,000        341,000        677,000
        TOTAL       $815,000 $216,576,000   $180,765,000   $398,156,000
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                        1995      1996         1997 
        Sec. 2.  TRADE AND ECONOMIC DEVELOPMENT 
        Subdivision 1.  Total 
        Appropriation         $             $ 36,579,000   $ 21,648,000
                      Summary by Fund
        General              35,909,000    20,978,000
        Trunk Highway           670,000       670,000 
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Business and Community 
        Development
             23,961,000      9,351,000
        $100,000 the first year and $100,000 
        the second year are for the affirmative 
        enterprise program.  The appropriation 
        is available until spent.* (The 
        preceding paragraph beginning "$100,000"
        was vetoed by the governor.) 
        $6,017,000 the first year is for 
        economic recovery grants, of which 
        $500,000 may be used for the purposes 
        of the capital access program, and is 
        available until spent. 
        $379,000 the first year and $379,000 
        the second year are for the small 
        cities federal match.  
        $200,000 the first year and $200,000 
        the second year are for grants to 
        Advantage Minnesota, Inc.  The funds 
        are available only if matched on at 
        least a dollar-for-dollar basis from 
        other sources.  The commissioner may 
        release the funds only upon: 
        (1) certification that matching funds 
        from each participating organization 
        are available; and 
        (2) review and approval by the 
        commissioner of the proposed operations 
        plan of Advantage Minnesota, Inc. for 
        the biennium. 
        $450,000 the first year and $450,000 
        the second year are for the state's 
        match for the federal small business 
        development centers.  If funding in one 
        year is insufficient, the other year's 
        appropriation is available. 
        $1,987,000 the first year and 
        $1,962,000 the second year are for the 
        job skills partnership program.  
        $300,000 is to the job skills 
        partnership board for the purpose of 
        funding the development and 
        implementation of a program by the city 
        of St. Paul which connects the economic 
        development activities of the St. Paul 
        port authority with the city of St. 
        Paul's employment and job development 
        programs.  This employment connection 
        program shall be administered by the 
        port authority consistent with, and 
        subject to, the program requirements of 
        the Minnesota job skills partnership 
        program.  The appropriation is 
        available until spent. 
        $100,000 the first year and $100,000 
        the second year are to the job skills 
        partnership board for a grant to the 
        city of Minneapolis' employment 
        connection program with the Minneapolis 
        Community Development Agency. 
        $7,800,000 is for grants under 
        Minnesota Statutes, sections 116J.551 
        to 116J.558.  This appropriation is 
        available until spent. 
        $100,000 is for a grant to the Phoenix 
        Group, Inc.  The grant must be used to 
        make grants and loans and provide 
        technical and other assistance to 
        community residents in neighborhoods 
        with high levels of poverty for the 
        purpose of creating business 
        opportunities to promote 
        self-sufficiency.  The appropriation is 
        available for the biennium ending June 
        30, 1997. 
        $200,000 the first year is for a grant 
        to Hennepin county for the 
        multijurisdictional reinvestment 
        program established in Minnesota 
        Statutes, section 383B.79.  Hennepin 
        county, working in conjunction with the 
        metropolitan council, shall report to 
        the senate committee on jobs, energy, 
        and community development and the house 
        committee on economic development, 
        infrastructure, and regulation finance 
        by February 15, 1996, with its 
        recommendations, funding needs, and 
        potential funding sources to carry out 
        the multijurisdictional reinvestment 
        program.  This appropriation does not 
        lapse, and is available until spent. 
        $450,000 the first year and $515,000 
        the second year are from fees collected 
        under Minnesota Statutes, section 
        446A.04, subdivision 5, and credited to 
        the general fund to administer the 
        programs of the public facilities 
        authority. 
        $250,000 is for the state's share for a 
        matching defense conversion grant to 
        Hennepin and Ramsey counties from the 
        United States department of commerce 
        economic development administration.  
        The state and local government 
        contribution must be matched at least 
        three to one by the federal 
        government.  This appropriation is 
        available until spent. 
        Subd. 3.  Minnesota Trade Office 
             2,304,000      2,318,000
        $150,000 the first year and $150,000 
        the second year are for state 
        participation in the federal City-State 
        Leveraged Financing Program. 
        Subd. 4.  Tourism 
             8,172,000      8,147,000
                      Summary by Fund
        General               7,502,000     7,477,000
        Trunk Highway           670,000       670,000
        $100,000 is for the costs of activities 
        by the commissioner of trade and 
        economic development to resolve a 
        dispute concerning fishing restrictions 
        in Ontario waters that unduly restrict 
        the rights of Minnesota residents to 
        take fish by angling in border waters.  
        The commissioner may use this 
        appropriation for (1) a grant to the 
        attorney general to study a legal 
        challenge in the courts of Ontario or 
        any other available forum to actions of 
        that province relating to fishing 
        rights of Minnesotans in border waters, 
        (2) efforts to mediate the dispute, (3) 
        seeking recourse through the mechanisms 
        of international trade agreements, or 
        (4) other actions the commissioner 
        deems necessary to achieve a 
        resolution.  This appropriation is 
        available until spent. 
        $100,000 the first year and $175,000 
        the second year are for expanded group 
        tour marketing and to host the National 
        Tour Association Convention in 
        Minnesota in 1996. 
        To develop maximum private sector 
        involvement in tourism, $2,500,000 the 
        first year and $2,500,000 the second 
        year of the amounts appropriated for 
        marketing activities are contingent 
        upon receipt of an equal contribution 
        of nonstate sources that have been 
        certified by the commissioner.  Up to 
        one-half of the match may be given in 
        in-kind contributions.  This 
        appropriation may not be spent until 
        the money is matched.  Of this 
        appropriation, $400,000 the first year 
        and $400,000 the second year are for 
        international marketing and tourism 
        promotion to maximize international 
        tourism to Minnesota and to promote 
        Minnesota goods and services in the 
        international market place.  The office 
        of tourism shall consult with the trade 
        office in these promotional efforts.  
        The office shall report on January 1, 
        1997, to the chairs of the legislative 
        committees with jurisdiction over 
        economic development policy and finance 
        on these promotional efforts. 
        In order to maximize marketing grant 
        benefits, the commissioner must give 
        priority for joint venture marketing 
        grants to organizations with year-round 
        sustained tourism activities.  For 
        programs and projects submitted, the 
        commissioner must give priority to 
        those that encompass two or more areas 
        or that attract nonresident travelers 
        to the state. 
        Any unexpended money from general fund 
        appropriations made under this 
        subdivision do not cancel, but must be 
        placed in a special advertising account 
        for use by the office of tourism to 
        purchase additional media. 
        If an appropriation for either year for 
        grants is not sufficient, the 
        appropriation for the other year is 
        available for it.  
        $229,000 the first year and $229,000 
        the second year are for the Minnesota 
        film board.  This appropriation is 
        available only upon receipt by the 
        board of $1 in matching contributions 
        of money or in-kind from nonstate 
        sources for every $3 provided by this 
        appropriation.  
        The commissioner may use grant dollars 
        or the value of in-kind services to 
        provide the state contribution for the 
        joint venture grant program.  
        Subd. 5.  Administration 
             2,142,000      1,832,000
        $670,000 the first year and $330,000 
        the second year are for network 
        management services and support. 
        Sec. 3.  MINNESOTA TECHNOLOGY, INC.    8,034,000      7,834,000
        $6,105,000 the first year and 
        $6,105,000 the second year are for 
        transfer from the general fund to the 
        Minnesota Technology, Inc. fund. 
        $75,000 the first year and $75,000 the 
        second year are for grants to Minnesota 
        Inventors Congress. 
        $494,000 the first year and $494,000 
        the second year are for grants to 
        Minnesota Project Innovation.  
        $1,147,000 the first year and $947,000 
        the second year are for grants to 
        Natural Resources Research Institute.  
        Of this appropriation the institute 
        shall spend $200,000 the first year as 
        follows:* (The language "and $947,000 
        the second year" and "Of this 
        appropriation the institute shall spend 
        $200,000 the first year as follows:" 
        were vetoed by the governor.) 
        (1) $100,000 is for a study of water 
        quality impacts and permitting 
        requirements related to peat harvesting 
        operations.  The study must include: 
        (i) a review of existing water quality 
        permitting requirements and the ability 
        of peat producers to comply with these 
        requirements; (ii) establishment and 
        monitoring of representative background 
        control and downstream sampling 
        locations at selected peat harvesting 
        operations; (iii) an evaluation of the 
        use of innovative best management 
        practices to minimize downstream water 
        quality impacts; and (iv) development 
        of a model water quality permit for 
        peat harvesting operations in this 
        state.  By October 1, 1997, the 
        institute shall report on the results 
        of the study to the chairs of the 
        senate and house environment and 
        natural resources committees.  The 
        report must include recommendations, if 
        any, for changes to existing state laws 
        and rules relating to water quality 
        permitting requirements for peat 
        harvesting operations.* (The preceding 
        paragraph beginning "(1) $100,000" was 
        vetoed by the governor.) 
        (2) $100,000 is for a grant to Rainy 
        River community college for a study of 
        reclamation and restoration options for 
        harvested peatlands.  The grant 
        recipient must submit to the chairs of 
        the senate and house environment and 
        natural resources committees a report 
        on the study, including any 
        recommendations for changes to existing 
        laws and rules relating to reclamation 
        and restoration of harvested 
        peatlands.* (The preceding paragraph 
        beginning "(2) $100,000" was vetoed by 
        the governor.)  
        $88,000 the first year and $88,000 the 
        second year are for grants to Minnesota 
        Council for Quality. 
        $50,000 the first year and $50,000 the 
        second year are for grants to Minnesota 
        Technology Corridor Corporation. 
        $75,000 the first year and $75,000 the 
        second year are for grants to Minnesota 
        Cold Weather Research Center. 
        Sec. 4.  WORLD TRADE CENTER CORP.        170,000 
        Sec. 5.  ECONOMIC SECURITY            51,952,000     47,772,000 
        Subdivision 1.  Rehabilitation Services
            18,232,000     18,232,000
        $100,000 the first year and $100,000 
        the second year are for centers for 
        independent living. 
        $70,000 in 1996 and $70,000 in 1997 is 
        for mentally ill employment support 
        services authorized by Minnesota 
        Statutes, section 268A.13. 
        $50,000 the first year and $50,000 the 
        second year are for purposes of 
        planning, implementing, and managing 
        the statewide reimbursement system 
        authorized by Minnesota Statutes, 
        section 268A.14. 
        Subd. 2.  State Services for the Blind 
             3,638,000      3,659,000
        This appropriation may be supplemented 
        by funds provided by the Friends of the 
        Communication Center, for support of 
        Services for the Blind's Communication 
        Center, which serves all blind and 
        visually handicapped Minnesotans.  The 
        commissioner shall report to the 
        legislature on a biennial basis the 
        funds provided by the Friends of the 
        Communication Center. 
        Subd. 3.  Community-Based Services 
            30,082,000     25,881,000
        $935,000 the first year and $935,000 
        the second year are for operating costs 
        of transitional housing programs under 
        Minnesota Statutes, section 268.38. 
        $7,000,000 the first year and 
        $7,000,000 the second year are for the 
        Minnesota economic opportunity grant 
        program.  Of this appropriation the 
        commissioner may use up to 8.7 percent 
        each year for state operations. 
        For the biennium ending June 30, 1997, 
        the commissioner shall transfer to the 
        low-income home weatherization program 
        at least five percent of the money 
        received under the low-income home 
        energy assistance block grant in each 
        year of the biennium and shall spend 
        all of the transferred money during the 
        year of the transfer or the year 
        following the transfer.  Up to 1.63 
        percent of the transferred money may be 
        used by the commissioner for 
        administrative purposes. 
        For the biennium ending June 30, 1997, 
        no more than 1.63 percent of money 
        remaining under the low-income home 
        energy assistance program after 
        transfers to the weatherization program 
        may be used by the commissioner for 
        administrative purposes. 
        The state appropriation for the 
        temporary emergency food assistance 
        program may be used to meet the federal 
        match requirements. 
        $100,000 the first year and $100,000 
        the second year are for youth 
        intervention programs under Minnesota 
        Statutes, section 268.30, subdivisions 
        1 and 2.  Funding may be used to expand 
        existing programs to serve unmet needs 
        and to create new programs in 
        underserved areas.  In awarding these 
        new funds, the commissioner may waive 
        or modify the requirement for local 
        match when this requirement deters 
        expansion to underserved communities or 
        populations.  This appropriation is 
        available until spent. 
        Notwithstanding Minnesota Statutes, 
        section 268.022, subdivision 2, the 
        commissioner of finance shall transfer 
        to the general fund from the dedicated 
        fund $3,000,000 in the first year and 
        $3,000,000 in the second year of the 
        money collected through the special 
        assessment established in Minnesota 
        Statutes, section 268.022, subdivision 
        1. 
        Of this appropriation, $3,000,000 the 
        first year is for summer youth 
        employment programs. 
        Of the money appropriated for the 
        summer youth employment programs for 
        the first year, $750,000 is immediately 
        available.  Any remaining balance of 
        the immediately available money is 
        available for the year in which it is 
        appropriated.  If the appropriation for 
        either year of the biennium is 
        insufficient, money may be transferred 
        from the appropriation for the other 
        year. 
        $200,000 the first year is for youth 
        employment and for housing for the 
        homeless through the YOUTHBUILD 
        program.  A Minnesota YOUTHBUILD 
        program funded under this section as 
        authorized in Minnesota Statutes, 
        sections 268.361 to 268.367 qualifies 
        as an approved training program under 
        Minnesota Rules, part 5200.0930, 
        subpart 1. 
        Of the appropriation for Head Start, 
        the commissioner may use up to two 
        percent each year for state operations. 
        $250,000 is for the learn to earn 
        summer youth employment demonstration 
        program established in section 39.  
        This appropriation is available until 
        spent. 
        Sec. 6.  HOUSING FINANCE AGENCY       30,082,000     17,532,000
        This appropriation is for transfer to 
        the housing development fund for the 
        programs specified.  This transfer is 
        part of the agency's permanent budget 
        base. 
        Any state appropriations used to meet 
        match requirements under Title II of 
        the National Affordable Housing Act of 
        1990, Public Law Number 101-625, 104 
        Stat. 4079, must be repaid, to the 
        extent required by federal law, to the 
        HOME Investment Trust Fund established 
        by the department of housing and urban 
        development pursuant to Title II of the 
        National Affordable Housing Act of 1990 
        for the state of Minnesota or for the 
        appropriate participating jurisdiction. 
        State appropriations to the Minnesota 
        housing finance agency may be granted 
        by the agency to cities or nonprofit 
        organizations to the extent necessary 
        to meet match requirements under Title 
        II of the National Affordable Housing 
        Act of 1990, Public Law Number 101-625, 
        104 Stat. 4079, provided that other 
        program requirements are met. 
        Spending limit on cost of general 
        administration of agency programs:  
              1996           1997
            10,493,000      9,911,000
        $1,200,000 the first year and 
        $1,200,000 the second year are for a 
        rental housing assistance program for 
        persons with a mental illness or 
        families with an adult member with a 
        mental illness under Minnesota 
        Statutes, section 462A.2097. 
        $6,000,000 is for the affordable rental 
        investment fund program.  To the extent 
        practicable, this appropriation shall 
        be used so that an approximately equal 
        number of housing units are financed in 
        the metropolitan area, as defined in 
        Minnesota Statutes, section 473.121, 
        subdivision 2, and in the 
        nonmetropolitan area. 
        (a) In the area of the state outside 
        the metropolitan area, the agency must 
        work with groups in the funding regions 
        created under Minnesota Statutes, 
        section 116N.08 to assist the agency in 
        identifying the affordable housing 
        needed in each region in connection 
        with economic development and 
        redevelopment efforts and in 
        establishing priorities for uses of the 
        affordable rental investment fund.  The 
        groups must include the regional 
        development commissioners, the regional 
        organization selected under section 
        116N.08, the private industry councils, 
        units of local government, community 
        action agencies, the Minnesota housing 
        partnership network groups, local 
        lenders, for-profit and nonprofit 
        developers, and realtors.  In addition 
        to priorities developed by the group, 
        the agency must give a preference to 
        economically viable projects in which 
        units of local government, area 
        employers, and the private sector 
        contribute financial assistance.  
        (b) In the metropolitan area, the 
        commissioner shall collaborate with the 
        metropolitan council to identify the 
        priorities for use of the affordable 
        rental investment fund.  Funds 
        distributed in the metropolitan area 
        must be used consistent with the 
        objectives of the metropolitan 
        development guide, adopted under 
        Minnesota Statutes, section 473.145.  
        In addition to the priorities 
        identified in conjunction with the 
        metropolitan council, the agency shall 
        give preference to economically viable 
        projects that: 
        (1) include a contribution of financial 
        resources from units of local 
        government and area employers; 
        (2) take into account the availability 
        of transportation in the community; and 
        (3) take into account the job training 
        efforts in the community. 
        $5,800,000 is for the community 
        rehabilitation program.  Of this 
        amount, $250,000 each year is for full 
        cycle home ownership and 
        purchase-rehabilitation lending 
        initiatives.  At least 20 percent of 
        this appropriation must be used in 
        areas in a city of the first class 
        located in the metropolitan area, as 
        defined in Minnesota Statutes, section 
        473.121, subdivision 2, in which at 
        least one census tract meets at least 
        three of the four following criteria: 
        (1) at least 70 percent of the housing 
        structures were built before 1960; 
        (2) at least 60 percent of the 
        single-family housing is owner 
        occupied; 
        (3) the median value, as recorded in 
        the 1990 federal decennial census, of 
        the area's owner-occupied housing is 
        not more than 100 percent of the 
        purchase price limit for existing homes 
        eligible for purchase in the area under 
        the agency's home mortgage loan 
        program; and 
        (4) between 1980 and 1990, the rate of 
        owner-occupancy of residential 
        properties in the area declined by five 
        percent, or at least 80 percent of the 
        residential properties in the area are 
        rental properties. 
        The area shall include eight blocks in 
        any direction from the census tract. 
        In cities of the first class located in 
        the metropolitan area the appropriation 
        may be used only for grants and loans 
        for owner-occupied housing.  Priority 
        must be given for property located in 
        an area that meets all four of the 
        criteria.  This appropriation may fund 
        grants in an amount greater or less 
        than $350,000 and a grantee may receive 
        grants to serve one or more census 
        tracts within a city. 
        In distributing funds available from 
        the 1994 Series E bond sale, the 
        agency, in accordance with the terms of 
        that sale, shall give priority to 
        requests for use of the funds in cities 
        which receive funding from this 
        appropriation to the community 
        rehabilitation program. 
        $150,000 is for equal grants to the six 
        regional organizations selected under 
        Minnesota Statutes, section 116N.08, 
        for capacity building grants and if the 
        appropriation is not spent under that 
        section it is available for the 
        capacity building grant program under 
        Minnesota Statutes, section 462A.21, 
        subdivision 3b. 
        $187,000 the first year and $187,000 
        the second year are for the urban 
        Indian housing program under Minnesota 
        Statutes, section 462A.07, subdivision 
        15.  
        $1,683,000 the first year and 
        $1,683,000 the second year are for the 
        tribal Indian housing program under 
        Minnesota Statutes, section 462A.07, 
        subdivision 14.  
        $186,000 the first year and $186,000 
        the second year are for the Minnesota 
        rural and urban homesteading program 
        under Minnesota Statutes, section 
        462A.057.  
        The agency may use up to $1,000,000 of 
        available resources for the purpose of 
        making loans under the Minnesota rural 
        and urban homesteading program 
        established under Minnesota Statutes, 
        section 462A.057, subdivision 1.  The 
        commissioner shall report to the 
        relevant finance divisions in the house 
        of representatives and senate on the 
        outcomes of this program January 15 of 
        each year.  
        $500,000 is for the purpose of 
        residential lead paint and lead 
        contaminated soil abatement under 
        Minnesota Statutes, section 462A.05, 
        subdivision 15c, paragraph (b).* (The 
        preceding paragraph beginning 
        "$500,000" was vetoed by the governor.) 
        $4,287,000 the first year and 
        $4,287,000 the second year are for the 
        housing rehabilitation and 
        accessibility program under Minnesota 
        Statutes, section 462A.05, subdivision 
        14a.  
        $1,500,000 the first year and 
        $1,500,000 the second year are for the 
        rent assistance for family 
        stabilization program under Minnesota 
        Statutes, section 462A.205.  
        $100,000 is for the contract for deed 
        guarantee account. 
        $200,000 the first year and $200,000 
        the second year are for family homeless 
        prevention and assistance program. 
        $200,000 the first year and $200,000 
        the second year are for the emergency 
        mortgage foreclosure prevention and 
        emergency rental assistance program.* 
        (The preceding language "and $200,000 
        the second year are" was vetoed by the 
        governor.)  
        $25,000 the first year and $25,000 the 
        second year are for home equity 
        conversion counseling grants under 
        Minnesota Statutes, section 462A.28. 
        Sec. 7.  COMMERCE 
        Subdivision 1.  Total 
        Appropriation                         15,087,000     15,162,000
                      Summary by Fund
        General              13,913,000    13,979,000
        Petro Cleanup           838,000       842,000 
        Special Revenue         336,000       341,000 
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Financial Examinations 
             3,775,000      3,790,000
        Subd. 3.  Registration and Analysis 
             3,995,000      4,002,000
        Subd. 4.  Enforcement and Licensing 
             3,913,000      3,934,000
                      Summary by Fund
        General               3,577,000     3,593,000
        Special Revenue         336,000       341,000
        $336,000 the first year and $341,000 
        the second year are from the real 
        estate education, research, and 
        recovery account in the special revenue 
        fund for the purpose of Minnesota 
        Statutes, section 82.34, subdivision 
        6.  If the appropriation from the 
        special revenue fund for either year is 
        insufficient, the appropriation for the 
        other year is available for it. 
        Subd. 5.  Petroleum Tank Release 
        Cleanup Board 
               838,000        842,000
        This appropriation is from the 
        petroleum tank release cleanup account 
        in the environmental fund for 
        administration. 
        Subd. 6.  Administrative Services 
             2,716,000      2,744,000 
        Subd. 7.  General Reduction 
              (150,000)      (150,000) 
        Sec. 8.  BOARD OF ACCOUNTANCY            537,000        558,000
        Sec. 9.  BOARD OF ARCHITECTURE,
        ENGINEERING, LAND SURVEYING, 
        LANDSCAPE ARCHITECTURE, AND 
        INTERIOR DESIGN            100,000       625,000        635,000 
        The appropriation for fiscal year 1995 
        is for legal fees and is available 
        until June 30, 1997. 
        Sec. 10.  BOARD OF BARBER   
        EXAMINERS                                128,000        129,000
        Sec. 11.  BOARD OF BOXING                 75,000         75,000
        Sec. 12.  LABOR AND INDUSTRY 
        Subdivision 1.  Total 
        Appropriation                         23,136,000     20,680,000
                      Summary by Fund
        General               3,866,000     3,883,000
        Workers' 
        Compensation 407,000 19,270,000    16,797,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Workers' Compensation 
        Regulation and Enforcement 
               407,000       11,861,000      9,412,000
                      Summary by Fund
        General                 100,000       100,000
        Special 
        Compensation 407,000 11,761,000     9,312,000
        The appropriation for fiscal year 1995 
        is from the special compensation fund 
        for litigation expenses. 
        $2,500,000 the first year is from the 
        worker's compensation special 
        compensation fund for the Daedalus 
        imaging systems project, to be 
        available until June 30, 1997. 
        $100,000 in the first year and $100,000 
        in the second year are for grants to 
        the Vinland Center for rehabilitation 
        service. 
        Notwithstanding Minnesota Statutes, 
        section 79.253, $45,000 the first year 
        and $45,000 the second year are 
        appropriated from the assigned risk 
        safety account in the special 
        compensation fund to the commissioner 
        of labor and industry for the purpose 
        of providing information to employers 
        regarding the prevention of violence in 
        the workplace. 
        Notwithstanding Minnesota Statutes, 
        section 79.253, $140,000 the first year 
        and $140,000 the second year are 
        appropriated from the assigned risk 
        safety account in the special 
        compensation fund to the commissioner 
        of labor and industry for the purpose 
        of hiring two occupational safety and 
        health inspectors.  The inspectors 
        shall perform safety consultations for 
        employers through labor-management 
        committees as defined in Minnesota 
        Statutes, section 179.81, subdivision 
        2, under an interagency agreement 
        entered into between the commissioners 
        of labor and industry and mediation 
        services. 
        Subd. 3.  Workplace Services 
             5,353,000      5,339,000
                      Summary by Fund
        General               2,516,000     2,527,000
        Workers' Comp.        2,837,000     2,812,000
        Subd. 4.  General Support 
             5,922,000      5,929,000
                      Summary by Fund
        General               1,250,000     1,256,000
        Workers' 
        Compensation          4,672,000     4,673,000
        $204,000 the first year and $204,000 
        the second year are for labor education 
        and advancement program grants.  
        Sec. 13.  MEDIATION SERVICES 
        Subdivision 1.  Total
        Appropriation                          1,820,000      1,823,000
        Subd. 2.  Labor Management Cooperation Grants
               222,000        222,000
        $222,000 the first year and $222,000 
        the second year are for grants to area 
        labor-management committees.  Any 
        unencumbered balance remaining at the 
        end of the first year does not cancel 
        but is available for the second year. 
        Subd. 3.  Office of Dispute Resolution
                81,000         81,000
        Sec. 14.  WORKERS' COMPENSATION 
        COURT OF APPEALS                       1,371,000      1,382,000
        This appropriation is from the special 
        compensation fund. 
        Sec. 15.  LABOR INTERPRETIVE 
        CENTER                                   140,000        200,000
        Sec. 16.  PUBLIC UTILITIES  
        COMMISSION                             3,244,000      3,219,000
        Sec. 17.  DEPARTMENT OF PUBLIC SERVICE 
        Subdivision 1.  Total       
        Appropriation                          8,797,000      8,763,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Telecommunications
               761,000        767,000
        Subd. 3.  Weights and Measures 
             2,926,000      2,937,000
        Subd. 4.  Information and Operations 
        Management 
             1,461,000      1,472,000
        Subd. 5.  Energy 
             3,649,000      3,587,000
        $588,000 the first year and $588,000 
        the second year are for transfer to the 
        energy and conservation account 
        established in Minnesota Statutes, 
        section 216B.241, subdivision 2a, for 
        programs administered by the 
        commissioner of economic security to 
        improve the energy efficiency of 
        residential oil-fired heating plants in 
        low-income households and, when 
        necessary, to provide weatherization 
        services to the homes. 
        Sec. 18.  MINNESOTA HISTORICAL 
        SOCIETY 
        Subdivision 1.  Total       
        Appropriation                         18,889,000     18,832,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        The Minnesota historical society is 
        eligible for a salary supplement in the 
        same manner as state agencies if one is 
        available.  Employees of the Minnesota 
        historical society will be paid in 
        accordance with the appropriate pay 
        plan. 
        Subd. 2.  Public Programs
        and Operations                        18,434,000     18,500,000
        (a) History Center Operations
             9,043,000      9,043,000 
        (b) History Center Building Services
             5,568,000      5,568,000
        (c) Historic Site Operations
             2,749,000      2,815,000
        (d) Statewide Outreach 
               644,000        644,000
        (e) Repair and Replacement 
               430,000        430,000
        Subd. 3.  Fiscal Agent                   455,000        332,000
        (a) State Archaeologist 
               104,000        104,000
        (b) Sibley House Association 
                88,000         88,000
        This appropriation is available for 
        operation and maintenance of the Sibley 
        house and related buildings on the Old 
        Mendota state historic site operated by 
        the Sibley house association.  
        (c) Minnesota International Center 
                50,000         50,000
        (d) Minnesota Air National   
        Guard Museum 
                19,000 
        (e) Institute for Learning and
        Teaching - Project 120
                90,000         90,000 
        (f) Minnesota Military Museum
                29,000        
        (g) Farmamerica
                25,000         
        Notwithstanding any other law, this 
        appropriation may be used for 
        operations. 
        (h) Kee theatre
                25,000
        (i) Federal National Guard Museum 
                25,000
        (j) Balances Forward
        Any unencumbered balance remaining in 
        this subdivision the first year does 
        not cancel but is available for the 
        second year of the biennium. 
        Subd. 4.  Preservation grants 
        Notwithstanding Laws 1994, chapter 643, 
        section 19, subdivision 5, the 
        historical society may award grants 
        from the unexpended balance under that 
        subdivision to public agencies or 
        entities based on historical 
        preservation purposes and needs.  The 
        society shall require significant 
        matching money for such projects.  A 
        grant awarded under this section for 
        historical preservation is not subject 
        to the requirements of Minnesota 
        Statutes, section 16A.695. 
        Subd. 5.  Carryover 
        Amounts appropriated under Laws 1993, 
        chapter 369, section 12, subdivisions 
        2, 3, 4, and 5, do not cancel on June 
        30, 1995, but are available until June 
        30, 1997. 
        Sec. 19.  MINNESOTA HUMANITIES 
        COMMISSION                               586,000        586,000
        Any unencumbered balance remaining in 
        the first year does not cancel but is 
        available for the second year of the 
        biennium. 
        Sec. 20.  BOARD OF THE ARTS        
        Subdivision 1.  Total Appropriation    6,897,000      6,903,000
        Any unencumbered balance remaining in 
        this section the first year does not 
        cancel but is available for the second 
        year of the biennium. 
        Subd. 2.  Operations and Services        690,000        693,000
        Subd. 3.  Grants Program               4,781,000      4,783,000
        The board shall spend this 
        appropriation to ensure that at least 
        ten percent of the expenditure is for 
        arts programs intended primarily for 
        children. 
        Subd. 4.  Regional Arts
        Councils                               1,426,000      1,427,000
        The board shall distribute this 
        appropriation to the regional arts 
        councils to ensure that ten percent of 
        the total distribution in each region 
        is for arts programs intended primarily 
        for children. 
        Sec. 21.  MINNESOTA MUNICIPAL
        BOARD                                    300,000        287,000
        Any unencumbered balance remaining in 
        the first year does not cancel but is 
        available for the second year of the 
        biennium.  
        Sec. 22.  UNIFORM LAWS
        COMMISSION                                29,000         29,000
        Sec. 23.  COUNCIL ON BLACK
        MINNESOTANS                              229,000        232,000
        The appropriation for the second year 
        is contingent on submission of the 
        report required in section 35. 
        Sec. 24.  COUNCIL ON AFFAIRS
        OF SPANISH-SPEAKING PEOPLE               246,000        248,000
        During the biennium ending June 30, 
        1997, council publications may contain 
        advertising.  Receipts from advertising 
        are appropriated to the council for 
        purposes of council publications.  For 
        the biennium ending June 30, 1997, the 
        council shall report to the legislature 
        on the revenues and expenditures from 
        advertising by February 15 each year. 
        The appropriation for the second year 
        is contingent on submission of the 
        report required in section 35. 
        Sec. 25.  COUNCIL ON
        ASIAN-PACIFIC MINNESOTANS                198,000        200,000
        The appropriation for the second year 
        is contingent on submission of the 
        report required in section 35. 
        Sec. 26.  INDIAN AFFAIRS
        COUNCIL                                  508,000        463,000
        For the biennium ending June 30, 1997, 
        federal money received for the Indian 
        affairs council is appropriated to the 
        council and added to this appropriation.
        The appropriation for the second year 
        is contingent on submission of the 
        report required in section 35. 
        Sec. 27.  SECRETARY OF STATE
        Subdivision 1.  Total
        Appropriation                         6,617,000       5,573,000
        The amounts that may be spent from this 
        appropriation for each activity are 
        specified in the following subdivisions.
        Subd. 2.  Administration
               938,000        947,000 
        Subd. 3.  Operations
             5,231,000      4,103,000 
        The legislature estimates that the 
        increase in fees for expedited 
        processing under Minnesota Statutes, 
        section 5.14, provided for by this act, 
        will increase revenue to the general 
        fund by $350,000 the first year and 
        $350,000 the second year. 
        Subd. 4.  Election Administration
               448,000        523,000 
        Sec. 28.  BOARD FOR COMMUNITY 
        COLLEGES                                 300,000 
        This appropriation is to the state 
        board for community colleges or its 
        successor for the design through 
        development of construction documents, 
        to the extent possible given the amount 
        of the appropriation, for a residential 
        facility at Fond du Lac community 
        college.  The facility is intended for 
        Indian students, to help immerse them 
        in Indian culture while attending the 
        college.  The board shall include the 
        facility in its capital budget request 
        for consideration by the 1996 
        legislature.  This appropriation is 
        available until expended.  
        Sec. 29.  ETHICAL PRACTICES 
        BOARD                                    308,000 
        This appropriation is for fiscal year 
        1995.  Of this appropriation, $291,000 
        is for litigation expenses and $17,000 
        is for severance costs. 
           Sec. 30.  [EFFECTIVE DATE FOR LAWS 1995, CHAPTER 22.] 
           Laws 1995, chapter 22, is effective March 28, 1995.  This 
        section is effective the day following final enactment. 
           Sec. 31.  Laws 1994, chapter 573, section 5, subdivision 2, 
        is amended to read: 
           Subd. 2.  [PUBLIC UTILITIES COMMISSION; RESEARCH PROJECTS.] 
        $150,000, or so much of this amount as may be needed, is 
        appropriated from the general fund to the public utilities 
        commission to complete the work of the team of science advisors 
        as specified in section 1 or initiate research projects in 
        fiscal year 1995 as recommended by the team of science advisors 
        and approved by the commission.  Any amount of this 
        appropriation that remains unencumbered after June 30, 1996, 
        reverts to the general fund. 
           Sec. 32.  Laws 1993, chapter 369, section 9, subdivision 2, 
        is amended to read: 
        Subd. 2.  Workers' Compensation 
        Regulation and Enforcement 
            14,961,000     9,410,000
                      Summary by Fund
        General                 100,000       100,000
        Workers' Comp.       14,861,000     9,310,000
        $5,000,000 the first year from the 
        special compensation fund is for the 
        Daedalus imaging systems project.  This 
        appropriation must not be allotted 
        until the commissioner certifies that 
        all information policy office 
        requirements for this project have been 
        met or will be met.  This appropriation 
        is available for either year of the 
        biennium until June 30, 1997. 
        $100,000 in the first year and $100,000 
        in the second year are for grants to 
        the Vinland Center for rehabilitation 
        service. 
        Fee receipts collected as a result of 
        providing direct computer access to 
        public workers' compensation data on 
        file with the commissioner must be 
        credited to the general fund. 
           Sec. 33.  Laws 1993, chapter 369, section 9, subdivision 3, 
        is amended to read: 
        Subd. 3.  Workplace Services 
             5,455,000      4,744,000
                      Summary by Fund
        General               2,704,000     2,703,000
        Workers' Comp.        2,751,000     2,041,000
        This appropriation includes the 
        transfer of the industrial hygiene 
        activity from the department of 
        health.  The appropriation for this 
        activity is from the special 
        compensation fund. 
        $710,000 the first year from the 
        special compensation fund is for 
        litigation of alleged ergonomic 
        violations cases under the occupational 
        safety and health act (OSHA).  This 
        appropriation is available for either 
        year of the biennium until June 30, 
        1997. 
           Sec. 34.  [BASE CUT TRANSFERS.] 
           For any agency assigned base cuts in this act, the 
        proportion of agency base cuts for pass-through grants compared 
        to total agency base cuts may not exceed the proportion of 
        dollars appropriated for pass-through grants in the agency 
        compared to total dollars appropriated to that agency. 
           Sec. 35.  [COUNCILS TO REPORT.] 
           (a) The Indian affairs council, the council on affairs of 
        Spanish-speaking people, the council on Black Minnesotans, and 
        the council on Asian-Pacific Minnesotans shall, individually and 
        jointly as provided in paragraph (b), conduct a study of each 
        council's membership and operations.  Each council's study must 
        contain recommendations on: 
           (1) removal of council members by the governor; 
           (2) statutory requirements and qualifications for council 
        membership; 
           (3) appointment of the council director, including 
        qualifications; 
           (4) methods of reducing overall costs of the councils 
        through sharing of staff and administrative expenses; 
           (5) methods of improving coordination with other state 
        agencies; 
           (6) methods of reducing burdensome reporting requirements 
        without compromising accountability; 
           (7) methods of educating council members in management 
        issues for state agencies, including but not limited to 
        statewide budget and accounting practices, management practices, 
        and legal liability; and 
           (8) a statement of the mission of each council and 
        measurable impact goals for each council. 
           (b) Each council must make all feasible efforts to 
        coordinate its study with each other council's study, to achieve 
        the maximum possible consistency in recommendations. 
           (c) Each council must consult with the governor's office in 
        studying paragraph (b), items (1) to (3). 
           (d) Each council must submit its report to the legislature 
        by February 1, 1996. 
           Sec. 36.  [STUDY TO ASSESS BENEFITS OF CIVIC CENTERS.] 
           The division of tourism of the department of trade and 
        economic development shall conduct a statewide study assessing 
        the benefits of publicly owned civic and convention centers to 
        the convention and tourism industry in the state.  The results 
        of the study shall be reported to the house capital investment 
        committee and the senate finance committee by September 30, 
        1995.  A copy of the study shall be given to the governor and to 
        the commissioner of finance, who shall consider whether to 
        include funding for civic and convention centers in the 1996 
        capital budget. 
           Sec. 37.  [WORKERS' COMPENSATION DIVISION; SALARIES; 
        MANAGERIAL PLAN.] 
           Funds appropriated to the department of labor and industry 
        may not be used to pay the salaries for any positions in the 
        managerial plan under Minnesota Statutes, section 43A.18, 
        subdivision 3, in the workers' compensation division unless the 
        positions existed on October 1, 1994, and had been filled on or 
        before that date.  This section does not prohibit the addition 
        or modification of duties or responsibilities to existing 
        managerial plan positions. 
           Sec. 38.  [BRANDON FISHERIES ACQUISITION.] 
           The commissioner of trade and economic development shall 
        study whether it is economically feasible and otherwise 
        appropriate for the state to acquire the Brandon fisheries 
        property near Brandon, Minnesota, for the purpose of a rest stop 
        or tourism information center.  The results of the study shall 
        be reported to the relevant finance divisions and committees of 
        the legislature by January 15, 1996. 
           Sec. 39.  [DEMONSTRATION PROGRAM.] 
           The commissioner of economic security shall fund a 
        demonstration program for summer youth employment which requires 
        that youth who are otherwise eligible for employment under 
        Minnesota Statutes, sections 268.56 and 268.561, participate in 
        a program of remedial education involving reading and writing 
        skills in both a learning and teaching capacity as part of 
        summer youth programs.  The commissioner shall evaluate the 
        success of the program and report to the chairs of the jobs, 
        energy, and community development committee of the senate and 
        the economic development, infrastructure, and regulation finance 
        committee of the house of representatives. 
           Sec. 40.  [REGIONAL PROGRAM TO IDENTIFY ENERGY-EFFICIENCY 
        INVESTMENT OPPORTUNITIES FOR BUSINESS.] 
           Subdivision 1.  [PURPOSE.] A grant program for fiscal year 
        1996 is established to support regional efforts to identify 
        energy-efficiency investments for businesses to provide 
        opportunities for economic growth and job creation. 
           Subd. 2.  [GRANT APPLICATION AND REVIEW PROCESS.] Regional 
        development commissions are eligible to apply to the 
        commissioner of public service for grants under this section.  
        Applications must be submitted to the commissioner in the form 
        and manner determined by the commissioner.  The applicant must 
        specify a process for identifying business and industrial 
        sectors most appropriate for making changes in energy use.  This 
        regional process may include surveys, interviews, and regional 
        forums to identify opportunities for energy-efficiency 
        improvements and the use of new energy resources by businesses. 
           The applicant must identify and retain the services of an 
        appropriate nonprofit corporation to provide the technical 
        expertise to assess energy-efficiency opportunities in new, 
        existing, and expanding businesses, to analyze the 
        cost-effectiveness of the opportunities, and to facilitate 
        relationships among utilities, energy service providers, 
        businesses, and public agencies that result in cost-effective 
        investments in energy-efficiency improvements that contribute to 
        economic development.  These efforts must be designed to 
        maximize participation in utility conservation and energy 
        efficiency programs and to promote the growth of the energy 
        service industry in the region, which includes engineering 
        firms, distributors, contractors, and other energy service 
        providers. 
           In each participating region, the regional development 
        commission shall establish a project oversight committee that 
        shall consist of a labor representative, a utility 
        representative, a business representative, and not more than two 
        additional members.  This committee shall review and approve the 
        project work plan and proposed activities and energy-efficiency 
        installations undertaken as part of the project. 
           Subd. 3.  [EVALUATION.] Each grant proposal must include a 
        process for evaluating the specific business cost savings 
        resulting from the regional energy-efficiency program activity. 
           Subd. 4.  [REPORT.] The commissioner of public service 
        shall report to the legislature by January 1, 1997, on the 
        business investments in energy-efficiency technology which 
        resulted from the grant program. 
           Sec. 41.  [RADIO TALKING BOOK FOR THE BLIND.] 
           The commissioner of the department of economic security, 
        the Friends of the Communication Center, the Rehabilitation 
        Advisory Council of the Blind, and consumer organizations of the 
        blind must initiate open public discussions regarding 
        privatization of the Radio Talking Book for the Blind.  The 
        discussions must include, but not be limited to, a study of the 
        Radio Talking Book, its statewide coverage, effectiveness of 
        service, staffing, funding, programming, and the relationship 
        between State Services for the Blind, the Friends of the 
        Communication Center, consumer organizations of the blind, and 
        Radio Talking Book consumers. 
           Sec. 42.  [EXTENDED EMPLOYMENT AUDITS.] 
           The department of economic security, division of vocational 
        rehabilitation, must complete its audit and reconciliation for 
        extended employment programs according to the following schedule:
           (1) fiscal year 1991 by April 14, 1995; 
           (2) fiscal year 1992 by July 28, 1995; 
           (3) fiscal year 1993 by July 28, 1995; and 
           (4) fiscal year 1994 by June 1, 1996. 
           Sec. 43.  [LEGISLATIVE AUDITOR; ECONOMIC RECOVERY GRANT 
        PROGRAM.] 
           The legislative audit commission is requested to direct the 
        legislative auditor to conduct an evaluation of the economic 
        recovery grant program under Minnesota Statutes, section 
        116J.873.  The evaluation must include an audit of loans and 
        grants made under the program and the criteria used in selecting 
        projects for grants and loans.  The legislative auditor shall 
        report the results of the evaluation to the legislature by 
        January 15, 1996. 
           Sec. 44.  [LEGISLATIVE AUDITOR; BUSINESS ASSISTANCE 
        PROGRAMS.] 
           The legislative audit commission is requested to direct the 
        legislative auditor to conduct an evaluation of business 
        assistance programs of state and local governments and report 
        the results of the evaluation to the legislature by January 15, 
        1996.  The evaluation must include tax increment financing 
        assistance.  The evaluation must identify the source of public 
        funds for each project, number of jobs proposed or promised at 
        the time of application and the number of jobs created, 
        estimated number of jobs retained, salary and benefit 
        distribution and dispersal by company for the jobs resulting 
        from the public assistance, the number and name of projects 
        approved, and, if possible, the number of jobs displaced by the 
        assistance. 
           The salary distribution must show the number of employees 
        in salary per hour bands, one dollar in width, beginning with 
        the minimum wage and proceeding to the maximum salary paid. 
           Sec. 45.  [WASTE WOOD COGENERATION FACILITIES; BIOMASS 
        MANDATE.] 
           Electric energy produced at a St. Paul district heating and 
        cooling system cogeneration facility which utilizes waste wood 
        as a primary fuel source may also count toward satisfaction of 
        up to 25 megawatts of the amount of biomass energy required by 
        Minnesota Statutes, section 216B.2424, clause (2), provided that:
           (1) the cogeneration facility utilizes nonhazardous tree 
        trimmings and other nonhazardous waste wood, including, but not 
        limited to, wood that would otherwise be landfilled or burned in 
        a process not designed to reclaim and use the energy contained 
        therein as a primary fuel source; and 
           (2) the cogenerated thermal load of such facility replaces 
        a thermal load produced by nonrenewable fuels; and 
           (3) construction of the cogeneration facility begins after 
        August 1, 1995. 
           All projects seeking to satisfy the biomass mandate of 
        Minnesota Statutes, section 216B.2424, in whole or in part must 
        be selected in a competitive bidding process or such other 
        selection process approved by the public utilities commission. 
           Sec. 46.  [SUSTAINABLE BIOMASS ENERGY PRODUCTION PROJECT; 
        TECHNICAL ASSISTANCE AND SUPPORT.] 
           The commissioner of the department of agriculture, in 
        collaboration and consultation with the commissioners of the 
        departments of natural resources, trade and economic 
        development, and public service, shall provide technical 
        assistance and support to the Sustainable Biomass Energy 
        Production Project, a joint effort of the University of 
        Minnesota, the Minnesota Valley Alfalfa Producers, and other 
        public and private interests.  The support shall include 
        assistance in analysis of environmental and economic benefits of 
        the proposed project, assistance in developing feasibility and 
        market assessments of the alfalfa-derived coproducts that would 
        be produced by the project, and assistance to aid the project in 
        securing a grant from the United States Department of Energy and 
        the United States Department of Agriculture under the Biomass 
        Power for Rural Development Initiative.  The assistance provided 
        under this section shall terminate June 30, 1997. 
           Sec. 47.  [COGENERATION; POWER PLANT SITING ACT EXEMPTION.] 
           (a) A person who proposes to construct a cogeneration 
        facility which utilizes gasified petroleum coke as its primary 
        fuel source which is derived as a by-product of the oil refining 
        process at an oil refining facility owned by the person 
        proposing the project may identify a single site for the project 
        in its application under Minnesota Statutes, section 116C.57, 
        subdivision 1, instead of the two sites normally required under 
        that subdivision, if the site is in reasonable proximity to the 
        thermal host of the cogeneration plant.  For the purposes of 
        this subdivision, the "thermal host" of a cogeneration plant 
        means the facility in which the thermal energy produced by the 
        cogeneration plant is to be utilized.  The environmental quality 
        board shall determine whether the cogeneration facility is 
        reasonably proximate to the thermal host with the understanding 
        that the site should be adjacent to or contiguous with the site 
        of the thermal host whenever practicable. 
           (b) A person who proposes to construct a cogeneration 
        facility as described in paragraph (a) may apply to the 
        environmental quality board to exempt the construction from the 
        requirements of Minnesota Statutes, sections 116C.51 to 116C.69, 
        under the provisions of Minnesota Statutes, section 116C.57, 
        subdivision 5a, notwithstanding the size restrictions found in 
        that subdivision.  All other requirements of Minnesota Statutes, 
        section 116C.57, subdivision 5a, apply to an application for an 
        exemption under this subdivision.  If the board determines that 
        the proposed site will not have a significant human and 
        environmental impact, the board may exempt the construction of 
        the proposed plant at the proposed site from the requirements of 
        Minnesota Statutes, sections 116C.51 to 116C.69 with any 
        appropriate conditions. 
           Sec. 48.  Minnesota Statutes 1994, section 5.14, is amended 
        to read: 
           5.14 [TRANSACTION SURCHARGE.] 
           The secretary of state may impose a surcharge of $10 $20 on 
        each transaction involving over-the-counter expedited service, 
        other than simple copying requests, that takes place at the 
        office of the secretary of state. 
           Sec. 49.  Minnesota Statutes 1994, section 16B.08, 
        subdivision 7, is amended to read: 
           Subd. 7.  [SPECIFIC PURCHASES.] (a) The following may be 
        purchased without regard to the competitive bidding requirements 
        of this chapter:  
           (1) merchandise for resale at state park refectories or 
        facility operations; 
           (2) farm and garden products, which may be sold at the 
        prevailing market price on the date of the sale; 
           (3) meat for other state institutions from the technical 
        college maintained at Pipestone by independent school district 
        No. 583; and 
           (4) products and services from the Minnesota correctional 
        facilities.  
           (b) Supplies, materials, equipment, and utility services 
        for use by a community-based residential facility operated by 
        the commissioner of human services may be purchased or rented 
        without regard to the competitive bidding requirements of this 
        chapter. 
           (c) Supplies, materials, or equipment to be used in the 
        operation of a hospital licensed under sections 144.50 to 144.56 
        that are purchased under a shared service purchasing arrangement 
        whereby more than one hospital purchases supplies, materials, or 
        equipment with one or more other hospitals, either through one 
        of the hospitals or through another entity, may be purchased 
        without regard to the competitive bidding requirements of this 
        chapter if the following conditions are met: 
           (1) the hospital's governing authority authorizes the 
        arrangement; 
           (2) the shared services purchasing program purchases items 
        available from more than one source on the basis of competitive 
        bids or competitive quotations of prices; and 
           (3) the arrangement authorizes the hospital's governing 
        authority or its representatives to review the purchasing 
        procedures to determine compliance with these requirements. 
           (d) Supplies, materials, equipment, and utility services to 
        be used or purchased by the iron range resources and 
        rehabilitation board are subject to the competitive bidding 
        requirements of this chapter only as described in section 
        298.2211, subdivision 3a. 
           Sec. 50.  Minnesota Statutes 1994, section 44A.01, 
        subdivision 2, is amended to read: 
           Subd. 2.  [BOARD MEMBERSHIP.] The corporation is governed 
        by a board of directors consisting of: 
           (1) four members, representing the international business 
        community, elected to six-year terms by the association of 
        members established under section 44A.023, subdivision 2, clause 
        (5); 
           (2) four members, representing the international business 
        community, appointed by the governor, to serve at the governor's 
        pleasure; 
           (3) the mayor of St. Paul or the mayor's designee; and 
           (4) the commissioners of trade and economic development, 
        agriculture, and commerce; and 
           (5) three members of the house appointed by the speaker of 
        the house and three members of the senate appointed under the 
        rules of the senate, who serve as nonvoting members.  One member 
        from each house must be a member of the minority party of that 
        house.  Legislative members are appointed at the beginning of 
        each regular session of the legislature for two-year terms.  A 
        legislator who remains a member of the body from which the 
        legislator was appointed may serve until a successor is 
        appointed and qualifies.  A vacancy in a legislator member's 
        term is filled for the unexpired portion of the term in the same 
        manner as the original appointment. 
           Members appointed by the governor must be knowledgeable or 
        experienced in international trade in products or services. 
           Sec. 51.  Minnesota Statutes 1994, section 97A.531, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [POSSESSION OF FISH ON LAKE OF THE WOODS.] While 
        in Minnesota, a person permitted to take and possess fish in 
        Minnesota and licensed by the province of Ontario to take and 
        possess fish may possess the daily limit of fish allowed by the 
        Ontario border water conservation tag, if the fish taken in 
        Ontario were taken on Ontario waters of Lake of the Woods north 
        of Big Island. 
           Sec. 52.  [97A.552] [FISHING REGULATIONS; EXECUTIVE ORDER.] 
           Subdivision 1.  [ORDER AUTHORIZED.] (a) The governor may by 
        executive order: 
           (1) require that fish that are lawfully taken by angling 
        and possessed in Canada be brought into the state in-the-round; 
           (2) authorize fish lawfully taken by angling in Canada to 
        be transported within the state or out of the state by a 
        nonresident; 
           (3) require that a Minnesota resident transporting in 
        Minnesota fish that have been taken by angling in Canada possess 
        a Minnesota angling license; and 
           (4) require that any advertisement of fishing resorts or 
        facilities in Canada in printed or broadcast form originating or 
        distributed within the state must contain a summary of the 
        requirement of clause (1) and penalty for noncompliance. 
           (b) An executive order issued under paragraph (a) is 
        effective the day following the filing of a certified copy of it 
        in the office of the secretary of state, and remains in effect 
        until rescinded by order of the governor. 
           Subd. 2.  [PENALTY FOR NONCOMPLIANCE.] A violation of an 
        executive order imposing the requirement in subdivision 1, 
        paragraph (a), clause (1), is a misdemeanor and, in addition to 
        any criminal penalty imposed, fish brought into or transported 
        within the state contrary to that executive order must be 
        confiscated, and a penalty of $10 for each fish must be imposed. 
           Sec. 53.  Minnesota Statutes 1994, section 116J.552, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CLEANUP COSTS.] "Cleanup costs" or "costs" 
        mean means the cost costs of developing and implementing an 
        approved a response action plan, but does not include 
        implementation costs incurred before the award of a grant unless 
        the application for the grant was submitted within 180 days 
        after the response action plan was approved by the commissioner 
        of the pollution control agency. 
           Sec. 54.  Minnesota Statutes 1994, section 116J.555, 
        subdivision 2, is amended to read: 
           Subd. 2.  [APPLICATION CYCLES; REPORTING TO LCWM.] (a) In 
        making grants, the commissioner shall establish regular 
        semiannual application deadlines in which grants will be 
        authorized from all or part of the available appropriations of 
        money in the account. 
           (b) After each semiannual cycle in which grants are 
        awarded, the commissioner shall report to the legislative 
        commission on waste management the grants awarded and 
        appropriate supporting information describing each grant made.  
        This report must be made within 30 days after the grants are 
        awarded. 
           (c) The commissioner shall annually report to the 
        legislative commission on the status of the cleanup projects 
        undertaken under grants made under the programs.  The 
        commissioner shall include in the annual report information on 
        the cleanup and development activities undertaken for the grants 
        made in that and previous fiscal years.  The commissioner shall 
        make this report no later than 120 days after the end of the 
        fiscal year. 
           Sec. 55.  Minnesota Statutes 1994, section 116J.873, 
        subdivision 3, is amended to read: 
           Subd. 3.  [GRANT EVALUATION.] The commissioner shall 
        accept, review, and evaluate applications for grants to local 
        units of government made in accordance with rules adopted for 
        economic development grants in the small cities development 
        program.  Projects must be evaluated based on the existence of 
        the following conditions: 
           (1) whether assistance is necessary to provide equity to 
        business owners who do not have the capacity to invest in a 
        project; 
           (2) whether there is an inability to secure sufficient 
        financing from other public or private sources at market 
        interest rates or on favorable market terms; 
           (3) whether assistance is necessary to attract out-of-state 
        businesses or to retain existing business within the state; and 
           (4) whether there are excessive public infrastructure or 
        improvement costs beyond the means of the affected community and 
        private participants in the project. 
           A grant or loan cannot be made based solely on a finding 
        that the condition in clause (3) exists.  A finding must be made 
        that a condition in clause (1), (2), or (4) also exists. 
           Applications recommended for funding shall be submitted to 
        the commissioner. 
           Sec. 56.  Minnesota Statutes 1994, section 116J.873, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [SPORTS FACILITY.] An economic recovery grant or 
        loan cannot be used for a project related to a sports facility.  
        For the purpose of this subdivision, "sports facility" means a 
        building that has a professional sports team as a principal 
        tenant. 
           Sec. 57.  Minnesota Statutes 1994, section 116J.982, 
        subdivision 3, is amended to read: 
           Subd. 3.  [CERTIFICATION; CORPORATIONS ELIGIBLE.] (a) The 
        commissioner shall certify a community development corporation 
        under this section if the corporation is a nonprofit corporation 
        incorporated under chapter 317A and meets the other criteria in 
        this subdivision. 
           (b) The corporation, in its articles of incorporation or 
        bylaws, must designate a low-income area as the specific 
        geographic community within which it will operate.  Within 
        cities of the first class, a designated community must be an 
        identifiable neighborhood or a combination of neighborhoods but 
        may not be the entire city.  Outside cities of the first class, 
        a designated community may be an identifiable neighborhood or 
        neighborhoods, or home rule charter or statutory cities, 
        townships, unincorporated areas, or combinations of those 
        entities, but may not be an entire economic development region 
        nor cross existing economic development region boundaries except 
        as provided in this section.  
           (c) The corporation's major purpose, in its articles of 
        incorporation or bylaws, must be economic development, 
        redevelopment, or housing in its designated community. 
           (d) The corporation must be tax exempt under section 501, 
        paragraph (c), clause (3), of the Internal Revenue Code of 1986, 
        as amended. 
           (e) The membership and board of directors of the 
        corporation must be representative of the designated community.  
        At least 20 percent of the directors shall have low incomes or 
        shall reside in low-income areas described in subdivision 1, 
        paragraph (e), clause (1), or the low-income subarea described 
        in subdivision 1, paragraph (e), clause (2).  At least 60 
        percent of the directors must be residents of, or be employed 
        in, the designated community.  Other directors shall be 
        business, financial, or civic leaders or 
        representatives-at-large of the designated community.  At least 
        40 percent of the directors must reside in the designated 
        community.  Notwithstanding the requirements of this paragraph, 
        a corporation which meets board structure requirements for a 
        community housing development corporation under Code of Federal 
        Regulations, title 24, part 92.2, is deemed to meet the board 
        membership requirements of this subdivision. 
           (f) The corporation shall not discriminate against any 
        persons on the basis of a status protected under chapter 363.  
           (g) The corporation shall demonstrate that it has or can 
        obtain the technical skills to analyze projects, that it is 
        familiar with available public and private funding sources and 
        economic development, redevelopment, and housing programs, and 
        that it is capable of packaging economic development, 
        redevelopment, and housing projects. 
           (h) The corporation must have completed two or more 
        economic development, redevelopment, or housing projects within 
        its designated community during the last three years. 
           Sec. 58.  [116J.991] [PUBLIC ASSISTANCE TO BUSINESS; WAGE 
        AND JOB REQUIREMENTS.] 
           A business that receives state or local government 
        assistance for economic development or job growth purposes must 
        create a net increase in jobs in Minnesota within two years of 
        receiving the assistance. 
           The government agency providing the assistance must 
        establish wage level and job creation goals to be met by the 
        business receiving the assistance.  A business that fails to 
        meet the goals must repay the assistance to the government 
        agency. 
           Each government agency must report the wage and job goals 
        and the results for each project in achieving those goals to the 
        department of trade and economic development.  The department 
        shall compile and publish the results of the reports for the 
        previous calendar year by June 1 of each year.  The reports of 
        the agencies to the department and the compilation report of the 
        department shall be made available to the public. 
           For the purpose of this section, "assistance" means a grant 
        or loan in excess of $25,000 or tax increment financing. 
           Sec. 59.  Minnesota Statutes 1994, section 116M.16, 
        subdivision 2, is amended to read: 
           Subd. 2.  [GIFTS; GRANTS; APPROPRIATION.] The board may 
        apply for, accept, and disburse gifts, grants, loans, or other 
        property from the United States, the state, private foundations, 
        or any other source.  It may enter into an agreement required 
        for the gifts, grants, or loans and may hold, use, and dispose 
        of its assets in accordance with the terms of the gift, grant, 
        loan, or agreement.  Money received by the board under this 
        subdivision must be deposited in a separate account in the state 
        treasury and invested by the state board of investment.  The 
        amount deposited, including investment earnings, is appropriated 
        to the board to carry out its duties.  
           Sec. 60.  Minnesota Statutes 1994, section 116M.18, 
        subdivision 4, is amended to read: 
           Subd. 4.  [BUSINESS LOAN CRITERIA.] (a) The criteria in 
        this subdivision apply to loans made under the urban challenge 
        grant program.  
           (b) Loans must be made to businesses that are not likely to 
        undertake a project for which loans are sought without 
        assistance from the urban challenge grant program.  
           (c) A loan must be used for a project designed to benefit 
        persons in low-income areas through the creation of job or 
        business opportunities for them.  Among loan applicants, 
        priority must be given on the basis of the number of permanent 
        jobs created or retained by the project and the proportion of 
        nonpublic money leveraged by the loan.  Priority must also be 
        given for loans to the lowest income areas.  
           (d) The minimum loan is $5,000 and the maximum is $150,000. 
           (e) With the approval of the commissioner, a loan may be 
        used to provide up to 50 percent of the private investment 
        required to qualify for a grant from the economic recovery 
        account.  
           (f) A loan must be matched by at least an equal amount of 
        new private investment.  
           (g) (f) A loan may not be used for a retail development 
        project. 
           (h) (g) The business must agree to work with job referral 
        networks that focus on minority applicants from low-income areas.
           Sec. 61.  Minnesota Statutes 1994, section 116M.18, is 
        amended by adding a subdivision to read: 
           Subd. 4a.  [MICROENTERPRISE LOAN.] Urban challenge grants 
        may be used to make microenterprise loans to small, beginning 
        businesses, including a sole proprietorship.  Microenterprise 
        loans are subject to this section except that: 
           (1) they may also be made to qualified retail businesses; 
           (2) they may be made for a minimum of $1,000 and a maximum 
        of $10,000; and 
           (3) they do not require a match. 
           Sec. 62.  Minnesota Statutes 1994, section 116M.18, 
        subdivision 5, is amended to read: 
           Subd. 5.  [REVOLVING FUND ADMINISTRATION; RULES.] (a) The 
        board shall establish a minimum interest rate for loans to 
        ensure that necessary loan administration costs are covered.  
           (b) Loan repayment amounts equal to one-half of the 
        principal and interest must be deposited in a revolving fund 
        created by the board for challenge grants.  The remaining amount 
        of the loan repayment may be deposited in a revolving loan fund 
        created by the nonprofit corporation originating the loan being 
        repaid for further distribution, consistent with the loan 
        criteria specified in subdivision 4.  
           (c) Administrative expenses of the board and nonprofit 
        corporations with whom the board enters into agreements under 
        subdivision 2 may be paid out of the interest earned on 
        loans and out of interest earned on money invested by the state 
        board of investment under section 116M.16, subdivision 2.  
           Sec. 63.  Minnesota Statutes 1994, section 116N.03, 
        subdivision 2, is amended to read: 
           Subd. 2.  [GIFTS; GRANTS.] The board may apply for, accept, 
        and disburse gifts, grants, loans, or other property from the 
        United States, the state, private foundations, or any other 
        source.  It may enter into an agreement required for the gifts, 
        grants, or loans and may hold, use, and dispose of its assets in 
        accordance with the terms of the gift, grant, loan, or 
        agreement.  Money received by the board under this subdivision 
        must be deposited in a separate account in the state treasury 
        and invested by the state board of investment.  The amount 
        deposited, including investment earnings, is appropriated to the 
        board to carry out its duties.  
           Sec. 64.  Minnesota Statutes 1994, section 116N.08, 
        subdivision 5, is amended to read: 
           Subd. 5.  [LOAN CRITERIA.] The following criteria apply to 
        loans made under the challenge grant program:  
           (a) Loans must be made to businesses that are not likely to 
        undertake a project for which loans are sought without 
        assistance from the challenge grant program.  
           (b) A loan must be used for a project designed principally 
        to benefit low-income persons through the creation of job or 
        business opportunities for them.  Among loan applicants, 
        priority must be given on the basis of the number of permanent 
        jobs created or retained by the project and the proportion of 
        nonstate money leveraged by the revolving loan.  
           (c) The minimum loan is $5,000 and the maximum is $100,000. 
           (d) With the approval of the commissioner, a loan may be 
        used to provide up to 50 percent of the private investment 
        required to qualify for a grant from the economic recovery 
        account. 
           (e) A loan may not exceed 50 percent of the total cost of 
        an individual project.  
           (f) (e) A loan may not be used for a retail development 
        project. 
           (g) (f) A business applying for a loan, except a 
        microenterprise loan under subdivision 5a, must be sponsored by 
        a resolution of the governing body of the local governmental 
        unit within whose jurisdiction the project is located. 
           Sec. 65.  Minnesota Statutes 1994, section 116N.08, is 
        amended by adding a subdivision to read: 
           Subd. 5a.  [MICROENTERPRISE LOANS.] Challenge grants may be 
        used to make microenterprise loans to small, beginning 
        businesses, including a sole proprietorship.  Microenterprise 
        loans are subject to this section except that: 
           (1) they may also be made to qualified retail businesses; 
           (2) they may be for a minimum of $1,000 and a maximum of 
        $10,000; and 
           (3) they do not require a match. 
           Sec. 66.  Minnesota Statutes 1994, section 116N.08, 
        subdivision 6, is amended to read: 
           Subd. 6.  [REVOLVING FUND ADMINISTRATION.] (a) The board 
        shall establish a minimum interest rate for loans to ensure that 
        necessary management costs are covered.  
           (b) Loan repayment amounts equal to one-half of the 
        principal and interest must be deposited in the rural 
        rehabilitation revolving fund for challenge grants to the region 
        from which the money was originally designated.  The remaining 
        amount of the loan repayment may be deposited in the regional 
        revolving loan fund for further distribution by the regional 
        organization, consistent with the loan criteria specified in 
        subdivisions 4 and 5. 
           (c) The first $1,000,000 of revolving loans for each region 
        must be matched by nonstate sources.  The matching requirement 
        does not apply to loans made under subdivision 6, clause (b). 
           (d) Administrative expenses of each organization may be 
        paid out of the interest earned on loans and on interest earned 
        on money invested by the state board of investment under section 
        116N.03, subdivision 2. 
           Sec. 67.  Minnesota Statutes 1994, section 124.85, is 
        amended by adding a subdivision to read: 
           Subd. 2c.  [PAYMENT OF REVIEW EXPENSES.] The commissioner 
        of public service may charge a school district requesting 
        services under subdivisions 2a and 2b actual costs incurred by 
        the department while conducting the review, or one-half percent 
        of the total identified project cost, whichever is less.  Before 
        conducting the review, the commissioner shall notify a school 
        district requesting review services that expenses will be 
        charged to the school district.  The commissioner shall bill the 
        school district upon completion of the contract review.  Money 
        collected by the commissioner under this subdivision must be 
        deposited in the general fund.  A district may include the cost 
        of a review by the commissioner under subdivision 2a in a 
        contract made pursuant to this section. 
           Sec. 68.  Minnesota Statutes 1994, section 175.171, is 
        amended to read: 
           175.171 [POWERS AND DUTIES, DEPARTMENT OF LABOR AND 
        INDUSTRY.] 
           The department of labor and industry shall have the 
        following powers and duties: 
           (1) to exercise all powers and perform all duties of the 
        department consistent with the provisions of this chapter; 
           (2) to adopt reasonable and proper rules relative to the 
        exercise of its powers and duties, and proper rules to govern 
        its proceedings and to regulate the mode and manner of all 
        investigations and hearings, which shall not be effective until 
        ten days after their adoption, and a copy of these rules shall 
        be delivered to every citizen making application therefor; 
           (3) to collect, collate, and publish statistical and other 
        information relating to the work under its jurisdiction, to keep 
        records and to make public reports in its judgment necessary; 
        and on or before October 1 in each even-numbered year the 
        department shall report its doings, conclusions, and 
        recommendations to the governor, which report shall be printed 
        and distributed by November 15 of each even-numbered year to the 
        legislature pursuant to section 3.195, and otherwise as the 
        department may direct; 
           (4) to establish and maintain branch offices as needed for 
        the conduct of its affairs; and 
           (5) to provide direct computer access to and electronic 
        data interchange of public and nonpublic workers' compensation 
        data and other data maintained by the department and to charge a 
        reasonable fee for the access and electronic data interchange, 
        except that in no circumstances may a fee be charged an employee 
        or the employee's attorney seeking access and data interchange 
        to information about the employee's claim or circumstances.  
        Notwithstanding any other law to the contrary, the fee receipts 
        for providing the computer access to and electronic data 
        interchange of data shall be deposited in the special 
        compensation fund.  Access to and electronic data interchange of 
        nonpublic data shall be only as authorized by the subject of the 
        data, as authorized in chapter 13, or as otherwise authorized by 
        law. 
           Sec. 69.  Minnesota Statutes 1994, section 176.011, 
        subdivision 7a, is amended to read: 
           Subd. 7a.  (1) [COMPENSATION JUDGE.] "Compensation judge" 
        means a workers' compensation judge at the office of 
        administrative hearings.  
           (2) [CALENDAR JUDGE.] "Calendar judge" means a workers' 
        compensation judge at the office of administrative hearings.  
           (3) [SETTLEMENT JUDGE.] "Settlement judge" means a 
        compensation judge at the department of labor and industry.  
        Settlement judges may conduct settlement conferences, issue 
        summary decisions, approve settlements and issue awards thereon, 
        determine petitions for attorney fees and costs, and make other 
        determinations, decisions, orders, and awards as may be 
        delegated to them by the commissioner.  Settlement judges must 
        be learned in the law. 
           Sec. 70.  Minnesota Statutes 1994, section 176.231, is 
        amended by adding a subdivision to read: 
           Subd. 12.  [REPORTS; ELECTRONIC MONITORING.] Beginning July 
        1, 1995, the commissioner shall monitor electronically all 
        reports of injury, all payments for reported injuries, and 
        compliance with all reporting and payment timelines. 
           Sec. 71.  [176.445] [SETTLEMENT JUDGES.] 
           Notwithstanding section 176.011, subdivision 27, any 
        provision in chapter 175 setting out general power of the 
        commissioner, or any other law to the contrary: 
           (1) The chief settlement judge at the department is the 
        administrator and supervisor of all dispute resolute functions 
        and personnel, and reports directly to the commissioner. 
           (2) The commissioner may delegate authority only to 
        settlement judges to make determinations under the procedure in 
        sections 176.106, 176.238, and 176.239 and to approve 
        settlements of claims under section 176.521.  A settlement judge 
        must preside at all workers' compensation settlement conferences 
        conducted at the department. 
           Sec. 72.  [178.11] [LABOR EDUCATION ADVANCEMENT GRANT 
        PROGRAM.] 
           The commissioner shall establish the labor education 
        advancement grant program for the purpose of facilitating the 
        participation of minorities and women in apprenticeable trades 
        and occupations.  The commissioner shall award grants to 
        community-based organizations serving the targeted populations 
        on a competitive request-for-proposal basis.  Interested 
        organizations shall apply for the grants in a form prescribed by 
        the commissioner.  As part of the application process, 
        applicants must provide a statement of need for the grant, a 
        description of the targeted population and apprenticeship 
        opportunities, a description of activities to be funded by the 
        grant, evidence supporting the ability to deliver services, 
        information related to coordinating grant activities with other 
        employment and training programs, identification of matching 
        funds, a budget, and performance objectives.  Each submitted 
        application shall be evaluated for completeness and 
        effectiveness of the proposed grant activity. 
           Sec. 73.  Minnesota Statutes 1994, section 207A.01, is 
        amended to read: 
           207A.01 [PRESIDENTIAL PRIMARY.] 
           A presidential primary must be held on the first Tuesday in 
        April of each year after 1999 in which a president and vice 
        president of the United States are to be nominated and elected, 
        at which the voters of this state may express their preference 
        among the candidates of the major political party of their 
        choice, for that party's nomination to be president of the 
        United States or may vote for uncommitted delegates to the 
        national party convention.  For the purposes of sections 207A.01 
        to 207A.07, "political party" or "party" means a political party 
        as defined in section 200.02, subdivision 7.  
           Sec. 74.  Minnesota Statutes 1994, section 216B.16, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SUSPENSION OF PROPOSED RATES; HEARING; FINAL 
        DETERMINATION DEFINED.] (a) Whenever there is filed with the 
        commission a schedule modifying or resulting in a change in any 
        rates then in force as provided in subdivision 1, the commission 
        may suspend the operation of the schedule by filing with the 
        schedule of rates and delivering to the affected utility a 
        statement in writing of its reasons for the suspension at any 
        time before the rates become effective.  The suspension shall 
        not be for a longer period than ten months beyond the initial 
        filing date except as provided in this subdivision or 
        subdivision 1a.  During the suspension the commission shall 
        determine whether all questions of the reasonableness of the 
        rates requested raised by persons deemed interested or by the 
        administrative division of the department of public service can 
        be resolved to the satisfaction of the commission.  If the 
        commission finds that all significant issues raised have not 
        been resolved to its satisfaction, or upon petition by ten 
        percent of the affected customers or 250 affected customers, 
        whichever is less, it shall refer the matter to the office of 
        administrative hearings with instructions for a public hearing 
        as a contested case pursuant to chapter 14, except as otherwise 
        provided in this section.  The commission may order that the 
        issues presented by the proposed rate changes be bifurcated into 
        two separate hearings as follows:  (1) determination of the 
        utility's revenue requirements and (2) determination of the rate 
        design.  Upon issuance of both administrative law judge reports, 
        the issues shall again be joined for consideration and final 
        determination by the commission.  All prehearing discovery 
        activities of state agency intervenors shall be consolidated and 
        conducted by the department of public service.  If the 
        commission does not make a final determination concerning a 
        schedule of rates within ten months after the initial filing 
        date, the schedule shall be deemed to have been approved by the 
        commission; except if: 
           (1) an extension of the procedural schedule has been 
        granted under subdivision 1a, in which case the schedule of 
        rates is deemed to have been approved by the commission on the 
        last day of the extended period of suspension; or 
           (2) a settlement has been submitted to and rejected by the 
        commission and the commission does not make a final 
        determination concerning the schedule of rates, the schedule of 
        rates is deemed to have been approved 60 days after the initial 
        or, if applicable, the extended period of suspension. 
           (b) If the commission finds that it has insufficient time 
        during the suspension period to make a final determination of a 
        case involving changes in general rates because of the need to 
        make a final determinations determination of other another 
        previously filed cases case involving changes in general rates 
        under this section or section 237.075, the commission may extend 
        the suspension period to the extent necessary to allow itself 20 
        working days to make the final determination after it has made a 
        final determinations determination in the previously filed cases 
        case.  An extension of the suspension period under this 
        paragraph does not alter the setting of interim rates under 
        subdivision 3. 
           (c) For the purposes of this section, "final determination" 
        means the initial decision of the commission and not any order 
        which may be entered by the commission in response to a petition 
        for rehearing or other further relief.  The commission may 
        further suspend rates until it determines all those petitions. 
           Sec. 75.  Minnesota Statutes 1994, section 216B.16, is 
        amended by adding a subdivision to read: 
           Subd. 12a.  [EXEMPTION FOR SMALL ELECTRIC UTILITY 
        FRANCHISE.] (a) An electric utility, operating as such in a 
        bordering state and having fewer than 200 customers in 
        Minnesota, is exempt from this section if the utility: 
           (1) charges Minnesota customers the same rates as those 
        charged to customers in the bordering state; 
           (2) provides 60-day notice to the commission of rate 
        increases for its Minnesota customers; 
           (3) provides individual, written notice of rate increases 
        to its Minnesota customers; 
           (4) provides the commission with schedules of rates and 
        tariffs charged in the bordering state and revenues by class 
        under the former and proposed rates; and 
           (5) maintains an up-to-date tariff book with the department.
           (b) The commission may initiate an investigation under 
        section 216B.17, on its own motion or upon customer complaint 
        with respect to the utility's rates and practices in Minnesota. 
           Sec. 76.  Minnesota Statutes 1994, section 216B.2424, is 
        amended to read: 
           216B.2424 [BIOMASS POWER MANDATE.] 
           A public utility, as defined in section 216B.02, 
        subdivision 4, that operates a nuclear-powered electric 
        generating plant within this state must, by December 31, 1998, 
        construct and operate, purchase, or contract to construct and 
        operate (1) by December 31, 1998, 50 megawatts of electric 
        energy installed capacity generated by farm grown closed-loop 
        biomass scheduled to be operational by December 31, 2001; and 
        (2) by December 31, 1998, an additional 75 megawatts of 
        installed capacity so generated scheduled to be operational by 
        December 31, 2002.  Of the total 125 megawatts of biomass 
        electric energy installed capacity required under this section, 
        no more than 75 megawatts may be provided by a single project.  
        Of the 75 megawatts of biomass electric energy installed 
        capacity required under clause (2), no more than 25 megawatts of 
        this capacity may be provided by a St. Paul district heating and 
        cooling system cogeneration facility utilizing waste wood as a 
        primary fuel source.  The public utility must accept and 
        consider on an equal basis with other proposals a proposal to 
        satisfy the requirements of this section that includes a project 
        that exceeds the megawatt capacity requirements of either clause 
        (1) or (2) and that proposes to sell the excess capacity to the 
        public utility or to other purchasers.  
           Sec. 77.  Minnesota Statutes 1994, section 216B.27, 
        subdivision 4, is amended to read: 
           Subd. 4.  [DEADLINE TO GRANT APPLICATION.] Any application 
        for a rehearing not granted within 20 60 days from the date of 
        filing thereof, shall be deemed denied. 
           Sec. 78.  Minnesota Statutes 1994, section 237.701, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FUND CREATED; AUTHORIZED EXPENDITURES.] 
        The telephone assistance fund is created as a separate account 
        in the state treasury to consist of amounts received by the 
        department of administration representing the surcharge 
        authorized by section 237.70, subdivision 6, and amounts earned 
        on the fund assets.  Money in the fund may be used only for: 
           (1) reimbursement to telephone companies for expenses and 
        credits allowed in section 237.70, subdivision 7, paragraph (d), 
        clause (5); 
           (2) reimbursement of the administrative expenses of the 
        department of human services to implement sections 237.69 to 
        237.71, not to exceed $314,000 annually; and 
           (3) reimbursement of the administrative expenses of the 
        commission not to exceed $25,000 annually; and 
           (4) reimbursement of the statewide indirect cost of the 
        commission. 
           Sec. 79.  Minnesota Statutes 1994, section 245A.11, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PERMITTED SINGLE-FAMILY RESIDENTIAL USE.] 
        Residential programs with a licensed capacity of six or fewer 
        persons shall be considered a permitted single-family 
        residential use of property for the purposes of zoning and other 
        land use regulations, except that a residential program whose 
        primary purpose is to treat juveniles who have violated criminal 
        statutes relating to sex offenses or have been adjudicated 
        delinquent on the basis of conduct in violation of criminal 
        statutes relating to sex offenses shall not be considered a 
        permitted use.  Programs otherwise allowed under this 
        subdivision shall not be prohibited by operation of restrictive 
        covenants or similar restrictions, regardless of when entered 
        into, which cannot be met because of the nature of the licensed 
        program, including provisions which require the home's occupants 
        be related, and that the home must be occupied by the owner, or 
        similar provisions. 
           Sec. 80.  Minnesota Statutes 1994, section 268A.01, 
        subdivision 4, is amended to read: 
           Subd. 4.  [VOCATIONAL REHABILITATION SERVICES.] "Vocational 
        rehabilitation services" means those services and goods so 
        defined in the federal Rehabilitation Act of 1973, as amended, 
        and section 268A.03, clause (b). 
           Sec. 81.  Minnesota Statutes 1994, section 268A.01, 
        subdivision 5, is amended to read: 
           Subd. 5.  [PERSON WITH A DISABILITY.] "Person with a 
        disability" means a person who because of a substantial 
        physical, mental, or emotional disability or dysfunction 
        requires special services in order to enjoy the benefits of 
        society. 
           Sec. 82.  Minnesota Statutes 1994, section 268A.01, 
        subdivision 6, is amended to read: 
           Subd. 6.  [REHABILITATION FACILITY.] "Rehabilitation 
        facility" means an entity which meets the definition 
        of community rehabilitation facility program in the federal 
        Rehabilitation Act of 1973, as amended;.  However, for the 
        purposes of sections 268A.03, paragraph (a), 268A.06, 268A.08, 
        and 268A.09 268A.15, rehabilitation facility means an entity 
        which is operated for the primary purpose of 
        providing remunerative or facilitating employment to those for 
        persons with a severe disability who, as a result of physical or 
        mental disability, are unable to participate in competitive 
        employment.  A rehabilitation facility shall supply such 
        employment (1) as a step in the rehabilitation process for those 
        who cannot be readily absorbed in the competitive labor market, 
        or (2) during such time as employment opportunities for them in 
        the competitive labor market do not exist. 
           Sec. 83.  Minnesota Statutes 1994, section 268A.01, 
        subdivision 9, is amended to read: 
           Subd. 9.  [LONG-TERM CENTER-BASED EMPLOYMENT PROGRAM 
        SUBPROGRAM.] "Long-term Center-based employment program 
        subprogram" means a program employment which provides paid work 
        on the premises of a rehabilitation facility and training 
        services or other services necessary for employment on or off 
        the premises and which does not include work activity of the 
        rehabilitation facility. 
           Sec. 84.  Minnesota Statutes 1994, section 268A.01, 
        subdivision 10, is amended to read: 
           Subd. 10.  [EXTENDED EMPLOYMENT PROGRAMS PROGRAM.] 
        "Extended employment programs program" means the following 
        programs which may be offered by a rehabilitation 
        facility:  center-based employment and supported employment 
        subprograms. 
           (1) long-term employment program; 
           (2) work activity program; 
           (3) work component program; and 
           (4) supported employment program. 
           Sec. 85.  Minnesota Statutes 1994, section 268A.03, is 
        amended to read: 
           268A.03 [POWERS AND DUTIES.] 
           The commissioner shall: 
           (a) certify the rehabilitation facilities to offer extended 
        employment programs, grant funds to the extended employment 
        programs, and perform the duties as specified in section 268A.09 
        268A.15; 
           (b) provide vocational rehabilitation services to persons 
        with disabilities in accordance with the state plan for 
        vocational rehabilitation.  These services include but are not 
        limited to:  diagnostic and related services incidental to 
        determination of eligibility for services to be provided, 
        including medical diagnosis and vocational diagnosis; vocational 
        counseling, training and instruction, including personal 
        adjustment training; physical restoration, including corrective 
        surgery, therapeutic treatment, hospitalization and prosthetic 
        and orthotic devices, all of which shall be obtained from 
        appropriate established agencies; transportation; occupational 
        and business licenses or permits, customary tools and equipment; 
        maintenance; books, supplies, and training materials; initial 
        stocks and supplies; placement; on-the-job skill training and 
        time-limited postemployment services leading to supported 
        employment; acquisition of vending stands or other equipment, 
        initial stocks and supplies for small business enterprises; 
        supervision and management of small business enterprises, 
        merchandising programs, or services rendered by severely 
        disabled persons.  Persons with a disability are entitled to 
        free choice of vendor for any medical, dental, prosthetic, or 
        orthotic services provided under this paragraph; 
           (c) expend funds and provide technical assistance for the 
        establishment, improvement, maintenance, or extension of public 
        and other nonprofit rehabilitation facilities or centers; 
           (d) maintain a contractual or regulatory relationship with 
        the United States as authorized by the Social Security Act, as 
        amended.  Under this relationship, the state will undertake to 
        make determinations referred to in those public laws with 
        respect to all individuals in Minnesota, or with respect to a 
        class or classes of individuals in this state that is designated 
        in the agreement at the state's request.  It is the purpose of 
        this relationship to permit the citizens of this state to obtain 
        all benefits available under federal law; 
           (e) provide an in-service training program for division of 
        rehabilitation services employees by paying for its direct costs 
        with state and federal funds; 
           (f) conduct research and demonstration projects; provide 
        training and instruction, including establishment and 
        maintenance of research fellowships and traineeships, along with 
        all necessary stipends and allowances; disseminate information 
        to persons with a disability and the general public; and provide 
        technical assistance relating to vocational rehabilitation and 
        independent living; 
           (g) receive and disburse pursuant to law money and gifts 
        available from governmental and private sources including, but 
        not limited to, the federal Department of Education and the 
        Social Security Administration, for the purpose of vocational 
        rehabilitation or independent living; 
           (h) design all state plans for vocational rehabilitation or 
        independent living services required as a condition to the 
        receipt and disbursement of any money available from the federal 
        government; 
           (i) cooperate with other public or private agencies or 
        organizations for the purpose of vocational rehabilitation or 
        independent living.  Money received from school districts, 
        governmental subdivisions, mental health centers or boards, and 
        private nonprofit organizations is appropriated to the 
        commissioner for conducting joint or cooperative vocational 
        rehabilitation or independent living programs; 
           (j) enter into contractual arrangements with 
        instrumentalities of federal, state, or local government and 
        with private individuals, organizations, agencies, or facilities 
        with respect to providing vocational rehabilitation or 
        independent living services; 
           (k) take other actions required by state and federal 
        legislation relating to vocational rehabilitation, independent 
        living, and disability determination programs; 
           (l) hire staff and arrange services and facilities 
        necessary to perform the duties and powers specified in this 
        section; 
           (m) adopt, amend, suspend, or repeal rules necessary to 
        implement or make specific programs that the commissioner by 
        sections 268A.01 to 268A.10 268A.15 is empowered to administer; 
        and 
           (n) contact any person with traumatic brain injury or 
        spinal cord injury reported by the commissioner of health under 
        section 144.664, subdivision 3, and notify the person, or the 
        person's parent or guardian if the person is a minor or is 
        mentally incompetent, of services available to the person, 
        eligibility requirements and application procedures for public 
        programs, and other information the commissioner believes may be 
        helpful to the person to make appropriate use of available 
        rehabilitation services. 
           Sec. 86.  Minnesota Statutes 1994, section 268A.06, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [APPLICATION.] Any city, town, county, 
        nonprofit corporation, state regional center, or any combination 
        thereof, may apply to the commissioner for assistance in 
        establishing or operating a community rehabilitation facility.  
        Application for assistance shall be on forms supplied prescribed 
        by the commissioner.  Each applicant shall annually submit to 
        the commissioner its plan and budget for the next fiscal year.  
        No applicant shall be eligible for a grant hereunder unless its 
        plan and budget have been approved by the commissioner. 
           Sec. 87.  Minnesota Statutes 1994, section 268A.07, is 
        amended to read: 
           268A.07 [REQUIREMENTS FOR CERTIFICATION.] 
           Subdivision 1.  [BENEFITS.] A rehabilitation facility must, 
        as a condition for receiving program certification, provide 
        employees in a long-term center-based employment program the 
        with personnel benefits prescribed in rules adopted by the 
        commissioner of the department of economic security. 
           Subd. 2.  [GRIEVANCE PROCEDURE.] A rehabilitation facility 
        must, as a condition for receiving program certification, 
        provide to employees in a long-term center-based 
        employment program subprograms, a grievance procedure which has 
        as its final step provisions for final and binding arbitration. 
           Sec. 88.  Minnesota Statutes 1994, section 268A.08, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [APPOINTMENT; MEMBERSHIP.] Every city, 
        town, county, nonprofit corporation, or combination thereof 
        establishing a rehabilitation facility shall appoint a 
        rehabilitation facility board of no fewer than nine members 
        before becoming eligible for the assistance provided by sections 
        268A.06 to 268A.09 268A.15.  When any city, town, or county 
        singly establishes such a rehabilitation facility, the board 
        shall be appointed by the chief executive officer of the city or 
        the chair of the governing board of the county or town.  When 
        any combination of cities, towns, counties, or nonprofit 
        corporations establishes a rehabilitation facility, the chief 
        executive officers of the cities, nonprofit corporations and the 
        chairs of the governing bodies of the counties or towns shall 
        appoint the board.  If a nonprofit corporation singly 
        establishes a rehabilitation facility, the corporation shall 
        appoint the board of directors.  Membership on a board shall be 
        representative of the community served and shall include a 
        person with a disability.  One-third to one-half of the board 
        shall be representative of industry or business.  The remaining 
        members should be representative of lay associations for persons 
        with a disability, labor, the general public, and education, 
        welfare, medical, and health professions.  Nothing in sections 
        268A.06 to 268A.09 268A.15 shall be construed to preclude the 
        appointment of elected or appointed public officials or members 
        of the board of directors of the sponsoring nonprofit 
        corporation to the board, so long as representation described 
        above is preserved.  If a state regional center establishes an 
        extended employment program, the chief executive officer of the 
        state regional center shall perform the functions of the 
        rehabilitation facility board as prescribed in subdivision 2.  
        The regional center is not required to establish a separate 
        governing body as a board.  The state regional center shall 
        establish an advisory committee following the membership 
        representation requirements of this subdivision.  If a county 
        establishes an extended employment program and manages the 
        program with county employees, the governing board shall be the 
        county board of commissioners and other provisions of this 
        chapter pertaining to membership on the governing board do not 
        apply. 
           Sec. 89.  Minnesota Statutes 1994, section 268A.08, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DUTIES.] Subject to the provisions of sections 
        268A.06 to 268A.09 268A.15 and the rules of the department, each 
        rehabilitation facility board shall: 
           (a) review and evaluate the need for extended employment 
        programs offered by the rehabilitation facility provided 
        pursuant to sections 268A.06 to 268A.09 268A.15 and report 
        thereon to the commissioner and, when indicated, the public, 
        together with recommendations for additional extended employment 
        programs; 
           (b) recruit and promote local financial support for the 
        extended employment programs from private sources such as 
        community chests, business, industrial and private foundations, 
        voluntary agencies and other lawful sources and promote public 
        support for municipal and county appropriations; 
           (c) promote, arrange, and implement working agreements with 
        other educational and social service agencies both public and 
        private and any other allied agencies; 
           (d) advise the commissioner on the adoption and 
        implementation of policies to stimulate effective community 
        relations; 
           (e) review the annual plan and budget and make 
        recommendations thereon; 
           (f) when the an extended employment program offered by the 
        rehabilitation facility is certified, act as the administrator 
        of the rehabilitation facility and its programs subprograms for 
        purposes of this chapter. 
           Sec. 90.  Minnesota Statutes 1994, section 268A.13, is 
        amended to read: 
           268A.13 [EMPLOYMENT SUPPORT SERVICES FOR PERSONS WITH 
        MENTAL ILLNESS.] 
           The commissioner of economic security, in cooperation with 
        the commissioner of human services, shall develop a statewide 
        program of grants to provide services for persons with mental 
        illness in supported employment.  Projects funded under this 
        section must:  (1) assist persons with mental illness in 
        obtaining and retaining employment; (2) emphasize individual 
        community placements for clients; (3) ensure interagency 
        collaboration at the local level between vocational 
        rehabilitation field offices, county service agencies, community 
        support programs operating under the authority of section 
        245.4712, and community rehabilitation providers, in assisting 
        clients; and (4) involve clients in the planning, development, 
        oversight, and delivery of support services.  Project funds may 
        not be used to provide services in segregated settings such as 
        long-term the center-based employment or work activity programs 
        subprograms as defined in section 268A.01. 
           The commissioner of economic security, in consultation with 
        the commissioner of human services, shall develop a request for 
        proposals which is consistent with the requirements of this 
        section and which specifies the types of services that must be 
        provided by grantees.  Projects shall be funded for state fiscal 
        year 1995 and priority for funding shall be given to 
        organizations with experience in developing innovative 
        employment support services for persons with mental illness.  
        Each applicant for funds under this section shall submit an 
        evaluation protocol as part of the grant application. 
           Sec. 91.  [268A.15] [EXTENDED EMPLOYMENT PROGRAM.] 
           Subdivision 1.  [ADMINISTRATION.] The department of 
        economic security shall administer this section through the 
        division of rehabilitation services.  The department may employ 
        staff as required to administer this section and may accept and 
        receive funds from nonstate sources for the purpose of 
        implementing this section. 
           Subd. 2.  [PURPOSE.] The purpose of the extended employment 
        program is to provide the ongoing services necessary to maintain 
        and advance the employment of persons with severe disabilities.  
        Employment under this section must encompass the broad range of 
        employment choices available to all persons and promote an 
        individual's self-sufficiency and financial independence.  
           Subd. 3.  [RULE AUTHORITY.] The commissioner shall adopt 
        rules on an individual's eligibility for the extended employment 
        program, the certification of rehabilitation facilities, and the 
        methods, criteria, and units of distribution for the allocation 
        of state grant funds to certified rehabilitation facilities.  In 
        determining the allocation, the commissioner must consider the 
        economic conditions of the community and the performance of 
        rehabilitation facilities relative to their impact on the 
        economic status of workers in the extended employment program. 
           Subd. 4.  [EVALUATION.] The commissioner of economic 
        security shall evaluate the extended employment program to 
        determine whether the purpose of extended employment as defined 
        in subdivision 2 is being achieved.  The evaluation must include 
        an assessment of whether workers in the extended employment 
        program are satisfied with their employment.  A written report 
        of this evaluation must be prepared at least every two years and 
        made available to the public.  
           Subd. 5.  [TECHNICAL ASSISTANCE.] The commissioner of 
        economic security shall provide technical assistance within 
        available resources to rehabilitation facilities.  
           Subd. 6.  [GRANTS.] The commissioner may provide innovation 
        and expansion grants to rehabilitation facilities to encourage 
        the development, demonstration, or dissemination of innovative 
        business practices, training programs, and service delivery 
        methods that: 
           (1) expand and improve employment opportunities for persons 
        with severe disabilities who are unserved or underserved by the 
        extended employment program; and 
           (2) increase the ability of persons with severe 
        disabilities to use new and emerging technologies in employment 
        settings, and foster the capacity of rehabilitation facilities 
        and employers to promote the integration of individuals with 
        severe disabilities into the workplace and the mainstream of 
        community life. 
           The grants must require collaboration at the local level 
        among vocational rehabilitation field offices, county social 
        service and planning agencies, rehabilitation facilities, and 
        employers.  
           Subd. 7.  [WITHDRAWAL OF FUNDS.] The commissioner may 
        withdraw funds from a rehabilitation facility that is not being 
        administered in accordance with its approved plan and budget 
        unless a modified plan and budget is submitted to and approved 
        by the commissioner, and implemented within a reasonable time.  
        The commissioner may withdraw funds from a rehabilitation 
        facility not being administered according to department rules, 
        or not meeting mandatory standards for certification, unless a 
        plan bringing the rehabilitation facility into compliance with 
        the rules and standards is submitted to and approved by the 
        commissioner, and implemented within a reasonable time.  Funds 
        withdrawn shall, after reasonable notice and opportunity for 
        hearing, be reallocated by the commissioner to other 
        rehabilitation facilities.  
           Sec. 92.  Minnesota Statutes 1994, section 298.22, 
        subdivision 2, is amended to read: 
           Subd. 2.  There is hereby created the iron range resources 
        and rehabilitation board, consisting of 11 members, five of whom 
        shall be state senators appointed by the subcommittee on 
        committees of the rules committee of the senate, and five of 
        whom shall be representatives, appointed by the speaker of the 
        house of representatives, their terms of office to commence on 
        May 1, 1943, and continue until January 3rd, 1945, or until 
        their successors are appointed and qualified.  Their successors 
        shall be appointed each two years in the same manner as the 
        original members were appointed, in January of every second 
        year, commencing in January, 1945.  The 11th member of said 
        board shall be the commissioner of natural resources of the 
        state of Minnesota.  Vacancies on the board shall be filled in 
        the same manner as the original members were chosen.  At least a 
        majority of the legislative members of the board shall be 
        elected from state senatorial or legislative districts in which 
        over 50 percent of the residents reside within a tax relief area 
        as defined in section 273.134.  All expenditures and projects 
        made by the commissioner of iron range resources and 
        rehabilitation shall first be submitted to said iron range 
        resources and rehabilitation board which shall recommend for 
        approval by at least eight board members or disapproval or 
        modification of expenditures and projects for rehabilitation 
        purposes as provided by this section, and the method, manner, 
        and time of payment of all said funds proposed to be disbursed 
        shall be first approved or disapproved by said board.  The board 
        shall biennially make its report to the governor and the 
        legislature on or before November 15 of each even numbered 
        year.  The expenses of said board shall be paid by the state of 
        Minnesota from the funds raised pursuant to this section. 
           Sec. 93.  Minnesota Statutes 1994, section 298.223, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ADMINISTRATION.] The taconite environmental 
        protection fund shall be administered by the commissioner of the 
        iron range resources and rehabilitation board.  The commissioner 
        shall by September 1 of each year prepare submit to the board a 
        list of projects to be funded from the taconite environmental 
        protection fund, with such supporting information including 
        description of the projects, plans, and cost estimates as may be 
        necessary.  Upon recommendation approval by at least eight 
        members of the iron range resources and rehabilitation board, 
        this list shall be submitted to the governor by November 1 of 
        each year.  By December 1 of each year, the governor shall 
        approve or disapprove, or return for further consideration, each 
        project.  Funds for a project may be expended only upon approval 
        of the project by the board and governor.  The commissioner may 
        submit supplemental projects to the board and governor for 
        approval at any time.  
           Sec. 94.  [383B.79] [MULTIJURISDICTIONAL PROGRAM.] 
           Subdivision 1.  [PROGRAM CREATED.] A multijurisdictional 
        reinvestment program involving Hennepin county, the cities of 
        Minneapolis, Brooklyn Center, and other interested statutory or 
        home rule charter cities in Hennepin county, the Minneapolis 
        park board, and the suburban Hennepin county park district is 
        created.  The multijurisdictional program must include plans for 
        housing rehabilitation and removals, industrial polluted land 
        cleanup, water ponding, environmental cleanup, community 
        corridor connections, corridor planning, creation of green 
        space, and job creation.  
           Subd. 2.  [USE OF APPROPRIATIONS.] Up to one-half of any 
        state appropriation for the program created in subdivision 1 may 
        be used by the county as a grant to the cities of Minneapolis 
        and Brooklyn Center to provide assistance in a capital nature 
        for constructing public infrastructure improvements in order to 
        further economic development.  
           Subd. 3.  [MATCHING.] Government jurisdictions 
        participating in the reinvestment program planning and projects 
        must match any state contribution on at least a 
        dollar-for-dollar basis in the aggregate.  Government 
        jurisdictions, however constituted, may use any funds under 
        their control for the match requirement.  
           Sec. 95.  Minnesota Statutes 1994, section 462.357, 
        subdivision 7, is amended to read: 
           Subd. 7.  [PERMITTED SINGLE FAMILY USE.] A state licensed 
        residential facility serving six or fewer persons, a licensed 
        day care facility serving 12 or fewer persons, and a group 
        family day care facility licensed under Minnesota Rules, parts 
        9502.0315 to 9502.0445 to serve 14 or fewer children shall be 
        considered a permitted single family residential use of property 
        for the purposes of zoning, except that a residential facility 
        whose primary purpose is to treat juveniles who have violated 
        criminal statutes relating to sex offenses or have been 
        adjudicated delinquent on the basis of conduct in violation of 
        criminal statutes relating to sex offenses shall not be 
        considered a permitted use. 
           Sec. 96.  Minnesota Statutes 1994, section 462A.05, 
        subdivision 14, is amended to read: 
           Subd. 14.  [REHABILITATION LOANS.] It may agree to 
        purchase, make, or otherwise participate in the making, and may 
        enter into commitments for the purchase, making, or 
        participation in the making, of eligible loans for 
        rehabilitation to persons and families of low and moderate 
        income, and to owners of existing residential housing for 
        occupancy by such persons and families, for the rehabilitation 
        of existing residential housing owned by them.  The loans may be 
        insured or uninsured and may be made with security, or may be 
        unsecured, as the agency deems advisable.  The loans may be in 
        addition to or in combination with long-term eligible mortgage 
        loans under subdivision 3.  They may be made in amounts 
        sufficient to refinance existing indebtedness secured by the 
        property, if refinancing is determined by the agency to be 
        necessary to permit the owner to meet the owner's housing cost 
        without expending an unreasonable portion of the owner's income 
        thereon.  No loan for rehabilitation shall be made unless the 
        agency determines that the loan will be used primarily to make 
        the housing more desirable to live in, to increase the market 
        value of the housing, for compliance with state, county or 
        municipal building, housing maintenance, fire, health or similar 
        codes and standards applicable to housing, or to accomplish 
        energy conservation related improvements.  In unincorporated 
        areas and municipalities not having codes and standards, the 
        agency may, solely for the purpose of administering the 
        provisions of this chapter, establish codes and standards.  
        Except for accessibility improvements under this subdivision 14d 
        and subdivisions 14a and 24, clause (1), no secured loan for 
        rehabilitation of any property shall be made in an amount which, 
        with all other existing indebtedness secured by the property, 
        would exceed its market value, as determined by the agency.  No 
        loan under this subdivision shall be denied solely because the 
        loan will not be used for placing the residential housing in 
        full compliance with all state, county, or municipal building, 
        housing maintenance, fire, health, or similar codes and 
        standards applicable to housing.  Rehabilitation loans shall be 
        made only when the agency determines that financing is not 
        otherwise available, in whole or in part, from private lenders 
        upon equivalent terms and conditions.  Accessibility 
        rehabilitation loans authorized under this subdivision may be 
        made to eligible persons and families without limitations 
        relating to the maximum incomes of the borrowers if: 
           (1) the borrower or a member of the borrower's family 
        requires a level of care provided in a hospital, skilled nursing 
        facility, or intermediate care facility for persons with mental 
        retardation or related conditions; 
           (2) home care is appropriate; and 
           (3) the improvement will enable the borrower or a member of 
        the borrower's family to reside in the housing. 
           Sec. 97.  Minnesota Statutes 1994, section 462A.05, 
        subdivision 15c, is amended to read: 
           Subd. 15c.  [RESIDENTIAL LEAD ABATEMENT.] (a) It may make 
        or purchase loans or grants for the abatement of hazardous 
        levels of lead paint in residential buildings and lead 
        contaminated soil on the property of residential buildings 
        occupied by low- and moderate-income persons.  Hazardous levels 
        are as determined by the department of health or the pollution 
        control agency.  The agency must establish grant criteria for a 
        residential lead paint and lead contaminated soil abatement 
        program, including the terms of loans and grants under this 
        section, a maximum amount for loans or grants, eligible owners 
        borrowers or grantees, eligible contractors, and eligible 
        buildings.  The agency may make grants to cities, local units of 
        government, registered lead abatement contractors, and nonprofit 
        organizations for the purpose of administering a residential 
        lead paint and contaminated lead soil abatement program.  No 
        loan or grant may be made for lead paint abatement for a 
        multifamily building which contains substantial housing 
        maintenance code violations unless the violations are being 
        corrected in conjunction with receipt of the loan or grant under 
        this section.  The agency must establish standards for the 
        relocation of families where necessary and the payment of 
        relocation expenses.  To the extent possible, the agency must 
        coordinate loans and grants under this section with existing 
        housing programs. 
           The agency, in consultation with the department of health, 
        shall report to the legislature by January 1993 1996 on the 
        costs and benefits of subsidized lead abatement and the extent 
        of the childhood lead exposure problem.  The agency shall review 
        the effectiveness of its existing loan and grant programs in 
        providing funds for residential lead abatement and report to the 
        legislature with examples, case studies and recommendations.  
           (b) The agency may also make grants to eligible 
        organizations, as defined in section 268.92, subdivision 1, for 
        the purposes of section 268.92. 
           Sec. 98.  Minnesota Statutes 1994, section 462A.05, 
        subdivision 30, is amended to read: 
           Subd. 30.  [AGENCY INVESTMENT IN CERTAIN NOTES AND 
        MORTGAGES.] It may invest in, purchase, acquire, and take 
        assignments of existing notes and mortgages not closed for the 
        purpose of sale to the agency, from lenders that are nonprofit 
        or nonprofit entities, as defined in the agency's rules, 
        provided that:  (1) the notes and mortgages evidence loans for 
        the construction, rehabilitation, purchase, improvement, or 
        refinancing of residential housing intended for occupancy and 
        occupied by low- and moderate-income persons and families; and 
        (2) the loan sellers utilize the funds derived from the 
        purchases in accordance with the authority contained in section 
        462A.07, subdivision 12, for the purposes and objectives of 
        sections 462A.02, 462A.03, 462A.05, 462A.07, and 462A.21; and 
        (3) the purchases are subject to security and limitations on the 
        costs and expenses of the loan sellers incidental to the 
        utilization of the purchase proceeds as the agency may 
        determine.  The proceeds of the purchases authorized by this 
        subdivision shall not be subject to the limitations of section 
        462A.21, subdivisions 4k, 6, 9, and 12.  In addition, it may 
        invest in, purchase, acquire, and take assignments of existing 
        federally insured mortgages for multifamily housing, not closed 
        for the purpose of sale to the agency, from any banking 
        institution, savings and loan association, or other lender or 
        financial intermediary approved by the members; provided that 
        the multifamily housing is benefited by contracts for federal 
        housing assistance payments. 
           Sec. 99.  Minnesota Statutes 1994, section 462A.201, 
        subdivision 2, is amended to read: 
           Subd. 2.  [LOW-INCOME HOUSING.] (a) The agency may, in 
        consultation with the advisory committee, use money from the 
        housing trust fund account to provide loans or grants for 
        projects for the development, construction, acquisition, 
        preservation, and rehabilitation of low-income rental and 
        limited equity cooperative housing units and homes for 
        ownership.  No more than 20 percent of available funds may be 
        used for home ownership projects.  
           (b) The A rental or limited equity cooperative housing 
        project must meet one of the following income tests: 
           (1) at least 75 percent of the rental and cooperative 
        units, and 100 percent of the homes for ownership, must be 
        rented to or cooperatively owned, or owned by persons and 
        families whose income does not exceed 30 percent of the median 
        family income for the metropolitan area as defined in section 
        473.121, subdivision 2; or 
           (2) all of the units funded by the housing trust fund 
        account must be used for the benefit of persons and families 
        whose income does not exceed 30 percent of the median family 
        income for the metropolitan area as defined in section 473.121, 
        subdivision 2. 
           The median family income may be adjusted for families of 
        five or more. 
           (c) Homes for ownership must be owned or purchased by 
        persons and families whose income does not exceed 50 percent of 
        the metropolitan area median income, adjusted for family size. 
           (d) In making the grants, the agency shall determine the 
        terms and conditions of repayment and the appropriate security, 
        if any, should repayment be required.  To promote the geographic 
        distribution of grants and loans, the agency may designate a 
        portion of the grant or loan awards to be set aside for projects 
        located in specified congressional districts or other 
        geographical regions specified by the agency.  The agency may 
        adopt emergency and permanent rules for awarding grants and 
        loans under this subdivision.  The emergency rules are effective 
        for 180 days or until the permanent rules are adopted, whichever 
        occurs first. 
           Sec. 100.  Minnesota Statutes 1994, section 462A.202, 
        subdivision 2, is amended to read: 
           Subd. 2.  [TRANSITIONAL HOUSING.] The agency may make loans 
        with or without interest to cities and counties to finance the 
        acquisition, improvement, and rehabilitation of existing housing 
        properties or the acquisition, site improvement, and development 
        of new properties for the purposes of providing transitional 
        housing, upon terms and conditions the agency determines.  
        Preference must be given to cities that propose to acquire 
        properties being sold by the resolution trust corporation or the 
        department of housing and urban development.  Loans under this 
        subdivision are subject to the restrictions in subdivision 7. 
           Sec. 101.  Minnesota Statutes 1994, section 462A.202, 
        subdivision 6, is amended to read: 
           Subd. 6.  [NEIGHBORHOOD LAND TRUSTS.] The agency may make 
        loans with or without interest to cities and counties to finance 
        the capital costs of a land trust project undertaken pursuant to 
        sections 462A.30 and 462A.31.  Loans under this subdivision are 
        subject to the restrictions in subdivision 7. 
           Sec. 102.  Minnesota Statutes 1994, section 462A.204, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ESTABLISHMENT.] The agency may establish a 
        family homeless prevention and assistance program to assist 
        families who are homeless or are at imminent risk of 
        homelessness.  The term "family" may include single 
        individuals.  The agency may make grants to develop and 
        implement family homeless prevention and assistance projects 
        under the program.  For purposes of this section, "families" 
        means families and persons under the age of 18 22.  
           Sec. 103.  Minnesota Statutes 1994, section 462A.205, 
        subdivision 4, is amended to read: 
           Subd. 4.  [AMOUNT AND PAYMENT OF RENT ASSISTANCE.] (a) This 
        subdivision applies to both the voucher option and the 
        project-based voucher option.  
           (b) Within the limits of available appropriations, eligible 
        families may receive monthly rent assistance for a 36-month 
        period starting with the month the family first receives rent 
        assistance under this section.  The amount of the family's 
        portion of the rental payment is equal to at least 30 percent of 
        gross income. 
           (c) The rent assistance must be paid by the local housing 
        organization to the property owner. 
           (d) Subject to the limitations in paragraph (e), the amount 
        of rent assistance is the difference between the rent and the 
        family's portion of the rental payment. 
           (e) In no case: 
           (1) may the amount of monthly rent assistance be more 
        than $250 for housing located within the metropolitan area, as 
        defined in section 473.121, subdivision 2, or more than $200 for 
        housing located outside of the metropolitan area; 
           (2) may the owner receive more rent for assisted units than 
        for comparable unassisted units; nor 
           (3) may the amount of monthly rent assistance be more than 
        the difference between the family's portion of the rental 
        payment and the fair market rent for the unit as determined by 
        the Department of Housing and Urban Development. 
           Sec. 104.  Minnesota Statutes 1994, section 462A.206, 
        subdivision 2, is amended to read: 
           Subd. 2.  [AUTHORIZATION.] The agency may make grants or 
        loans to cities for the purposes of construction, acquisition, 
        rehabilitation, demolition, permanent financing, refinancing, or 
        gap financing of single or multifamily housing, or full cycle 
        home ownership services, as defined in section 462A.209, 
        subdivision 2.  Gap financing is financing for the difference 
        between the cost of the improvement of the blighted property, 
        including acquisition, demolition, rehabilitation, and 
        construction, and the market value of the property upon sale.  
        The agency shall take into account the amount of money that the 
        city leverages from other sources in awarding grants and loans.  
        Cities may use the grants and loans to establish revolving loan 
        funds and to provide grants and loans to eligible mortgagors.  
        The city may determine the terms and conditions of the grants 
        and loans.  An agency loan may only be used by a city to make 
        loans. 
           Sec. 105.  Minnesota Statutes 1994, section 462A.206, 
        subdivision 5, is amended to read: 
           Subd. 5.  [OTHER ELIGIBLE ORGANIZATIONS.] A nonprofit 
        organization is eligible to apply directly for grants or loans 
        from the community rehabilitation fund account if the city 
        within which it is located enacts a resolution authorizing the 
        organization to apply on the city's behalf, except that a 
        nonprofit organization providing full cycle home ownership 
        services may apply directly to the agency. 
           Sec. 106.  [462A.209] [HOME OWNERSHIP ASSISTANCE.] 
           Subdivision 1.  [FULL CYCLE HOME OWNERSHIP SERVICES.] The 
        full cycle home ownership services program shall be used to fund 
        nonprofit organizations and political subdivisions providing, 
        building capacity to provide, or supporting full cycle lending 
        for home ownership to low and moderate income home buyers.  The 
        purpose of the program is to encourage private investment in 
        affordable housing and collaboration of nonprofit organizations 
        and political subdivisions with each other and private lenders 
        in providing full cycle lending services. 
           Subd. 2.  [DEFINITION.] "Full cycle home ownership services"
        means supporting eligible home buyers and owners through all 
        phases of purchasing and keeping a home, by providing 
        prepurchase home buyer education, prepurchase counseling and 
        credit repair, prepurchase property inspection and technical and 
        financial assistance to buyers in rehabilitating the home, 
        postpurchase and mortgage default counseling, postpurchase 
        assistance with home maintenance, entry cost assistance, and 
        access to flexible loan products. 
           Subd. 3.  [ELIGIBILITY.] The agency shall establish 
        eligibility criteria for nonprofit organizations and political 
        subdivisions to receive funding under this section.  The 
        eligibility criteria must require the nonprofit organization or 
        political subdivision to provide, to build capacity to provide, 
        or support full cycle home ownership services for eligible home 
        buyers.  The agency may fund a nonprofit organization or 
        political subdivision that will provide full cycle home 
        ownership services by coordinating with one or more other 
        organizations that will provide specific components of full 
        cycle home ownership services.  The agency may make exceptions 
        to providing all components of full cycle lending if justified 
        by the application.  If there are more applicants requesting 
        funding than there are funds available, the agency shall award 
        the funds on a competitive basis and also assure an equitable 
        geographic distribution of the available funds.  The eligibility 
        criteria must require the nonprofit organization or political 
        subdivision to have a demonstrated involvement in the local 
        community and to target the housing affordability needs of the 
        local community.  Partnerships and collaboration with 
        innovative, grass roots, or community-based initiatives shall be 
        encouraged.  The agency shall give priority to nonprofit 
        organizations and political subdivisions that provide matching 
        funds.  Applicants for funds under section 462A.057 may also 
        apply funds under this program. 
           Subd. 4.  [ENTRY COST HOME OWNERSHIP OPPORTUNITY 
        PROGRAM.] The agency may establish an entry cost home ownership 
        opportunity program, on terms and conditions it deems advisable, 
        to assist individuals with downpayment and closing costs to 
        finance the purchase of a home. 
           Sec. 107.  [462A.2091] [CONTRACT FOR DEED GUARANTEE 
        ACCOUNT.] 
           Subdivision 1.  [CREATION.] The contract for deed guarantee 
        account is created as a separate account in the housing 
        development fund.  Money in the account is appropriated to the 
        agency for the purposes of this section.  The account consists 
        of money appropriated to the account and transferred from other 
        sources and all earnings from money in the account. 
           Subd. 2.  [ACCOUNT USES.] Money in the account may be used 
        to create a guarantee fund for the refinancing of contracts for 
        deed. 
           Subd. 3.  [ELIGIBLE PROPERTY.] Contracts for deed eligible 
        for refinancing with guarantee fund assistance must be for the 
        purchase of an owner-occupied single-family or duplex 
        structure.  In a city of the first class in the metropolitan 
        area, as defined in section 473.121, subdivision 2, eligible 
        properties must be located in an area in which at least one 
        census tract meets at least three of the following four criteria:
           (1) at least 70 percent of the housing structures were 
        built before 1960; 
           (2) at least 60 percent of the single-family housing is 
        owner-occupied; 
           (3) the median market value of the area's owner-occupied 
        housing, as recorded in the most recent federal decennial 
        census, is not more than 100 percent of the purchase price limit 
        for existing homes eligible for purchase in the area under the 
        agency's home mortgage loan program; and 
           (4) between 1980 and 1990, the rate of owner occupancy of 
        residential properties in the area declined by at least five 
        percent, or at least 80 percent of the residential properties in 
        the area are rental properties.  
           The area must include eight blocks in any direction from 
        the census tract.  Priority must be given for property located 
        in an area that meets all four criteria.  
           Sec. 108.  [462A.2097] [RENTAL HOUSING.] 
           The agency may establish a rental housing assistance 
        program for persons of low income or for persons with a mental 
        illness or families that include an adult family member with a 
        mental illness.  Rental assistance may be in the form of direct 
        rental subsidies for housing for persons or families with 
        incomes of up to 50 percent of the area median income as 
        determined by the United States Department of Housing and Urban 
        Development, adjusted for families of five or more.  Housing for 
        the mentally ill must be operated in coordination with social 
        service providers who provide services requested by tenants.  
        Direct rental subsidies must be administered by the agency for 
        the benefit of eligible tenants.  Financial assistance provided 
        under this section must be in the form of vendor payments 
        whenever possible. 
           Sec. 109.  Minnesota Statutes 1994, section 462A.21, 
        subdivision 3b, is amended to read: 
           Subd. 3b.  [CAPACITY BUILDING GRANTS.] It may make capacity 
        building grants to nonprofit organizations, local government 
        units, Indian tribes, and Indian tribal organizations to expand 
        their capacity to provide affordable housing and housing-related 
        services.  The grants may be used to assess housing needs and to 
        develop and implement strategies to meet those needs, including 
        the creation or preservation of affordable housing, prepurchase 
        and postpurchase counseling and associated administrative costs, 
        and the linking of supportive services to the housing.  The 
        agency shall adopt rules specifying the eligible uses of grant 
        money.  Funding priority must be given to those applicants that 
        include low-income persons in their membership, have provided 
        housing-related services to low-income people, and demonstrate a 
        local commitment of local resources, which may include in-kind 
        contributions.  Grants under this subdivision may be made only 
        with specific appropriations by the legislature. 
           Sec. 110.  Minnesota Statutes 1994, section 462A.21, 
        subdivision 8, is amended to read: 
           Subd. 8.  [HOME OWNERSHIP ASSISTANCE FUND.] It may 
        establish a home ownership assistance fund, on terms and 
        conditions it deems advisable, to assist persons and families of 
        low and moderate income in the purchase of affordable 
        residential housing and may use the funds to provide loans, 
        additional security for eligible loans or to pay costs 
        associated with or provide additional security for bonds issued 
        by the agency. 
           Sec. 111.  Minnesota Statutes 1994, section 462A.21, 
        subdivision 8b, is amended to read: 
           Subd. 8b.  [FAMILY RENTAL HOUSING.] It may establish a 
        family rental housing assistance program to provide loans or 
        direct rental subsidies for housing for families with incomes of 
        up to 60 80 percent of area state median income.  Priority must 
        be given to those developments with resident families with the 
        lowest income.  The development may be financed by the agency or 
        other public or private lenders.  Direct rental subsidies must 
        be administered by the agency for the benefit of eligible 
        families.  Financial assistance provided under this subdivision 
        to recipients of aid to families with dependent children must be 
        in the form of vendor payments whenever possible.  Loans and 
        direct rental subsidies under this subdivision may be made only 
        with specific appropriations by the legislature.  The 
        limitations on eligible mortgagors contained in section 462A.03, 
        subdivision 13, do not apply to loans for the rehabilitation of 
        existing housing under this subdivision. 
           Sec. 112.  Minnesota Statutes 1994, section 462A.21, 
        subdivision 13, is amended to read: 
           Subd. 13.  [ACCESSIBILITY PROGRAMS.] It may spend money for 
        the purpose purposes of section 462A.05, subdivision 
        subdivisions 14, 14a, and 24, and may pay the costs and expenses 
        necessary and incidental to the development and operation of the 
        programs authorized in that subdivision those subdivisions. 
           Sec. 113.  Minnesota Statutes 1994, section 462A.21, 
        subdivision 21, is amended to read: 
           Subd. 21.  [COMMUNITY REHABILITATION PROGRAM.] The 
        agency or its grantees may spend money for the purposes of the 
        community rehabilitation program authorized under section 
        462A.206 and may pay the costs and expenses necessary and 
        incidental to the development and operation of the program.  
           Sec. 114.  Minnesota Statutes 1994, section 462A.21, is 
        amended by adding a subdivision to read: 
           Subd. 22.  [CONTRACT FOR DEED GUARANTEE PROGRAM.] It may 
        expend money for the purposes of section 462A.2091 and may pay 
        the costs and expenses necessary and incidental to the 
        development and operation of the program authorized by section 
        462A.2091. 
           Sec. 115.  Minnesota Statutes 1994, section 462A.21, is 
        amended by adding a subdivision to read: 
           Subd. 23.  [RENTAL HOUSING.] The agency may spend money for 
        the purposes of the rental housing program authorized under 
        section 462A.2097, and may pay the costs and expenses necessary 
        and incidental to the development and operation of the program. 
           Sec. 116.  Minnesota Statutes 1994, section 469.0171, is 
        amended to read: 
           469.0171 [HOUSING PLAN, PROGRAM, AND REVIEW.] 
           Prior to the issuance of bonds or obligations for a housing 
        development project proposed by an authority under section 
        469.017, the authority shall: 
           (1) prepare a plan meeting the requirements of section 
        462C.03, subdivision 1, paragraphs (a) to (d); 
           (2) obtain review of the plan in the manner provided in 
        section 462C.04, subdivision 1; and 
           (3) prepare and submit for review a program as defined in 
        section 462C.02, subdivision 3, in the manner provided in 
        section 462C.04, subdivision 2, and section 462C.05, subdivision 
        5, for the making or purchasing of loans by cities. 
           The authority shall prepare and submit the report required 
        under section 462C.04, subdivision 3. 
           Sec. 117.  Minnesota Statutes 1994, section 504.33, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CITY.] "City" means a any statutory or home rule 
        charter city located within the metropolitan area as defined in 
        section 473.121, subdivision 2, and any city of the first class 
        as defined in section 410.01.  The term "city" also includes, 
        where applicable, a port authority, economic development 
        authority, a housing and redevelopment authority, or any 
        development agency established under chapter 469 which share 
        common boundaries with the city. 
           Sec. 118.  Minnesota Statutes 1994, section 504.33, 
        subdivision 3, is amended to read: 
           Subd. 3.  [DISPLACE.] "Displace" means to demolish, acquire 
        for or convert to a use other than low-income housing, or to 
        provide or spend money that directly results in the demolition, 
        acquisition, or conversion of housing to a use other than 
        low-income housing. 
           "Displace" does not include providing or spending money 
        that directly results in:  (i) housing improvements made to 
        comply with health, housing, building, fire prevention, housing 
        maintenance, or energy codes or standards of the applicable 
        government unit; (ii) housing improvements to make housing more 
        accessible to a handicapped person; or (iii) the demolition, 
        acquisition, or conversion of housing for the purpose of 
        creating owner-occupied housing that consists of no more than 
        four units per structure. 
           "Displace" does not include downsizing large apartment 
        complexes by demolishing less than 25 percent of the units in 
        the complex or by eliminating units through reconfiguration and 
        expansion of individual units for the purpose of expanding the 
        size of the remaining low-income units.  For the purpose of this 
        section, "large apartment complex" means two or more adjacent 
        buildings containing a total of 100 or more units per complex. 
           In any city in the metropolitan area, as defined in section 
        473.121, subdivision 2, which has met its housing affordability 
        goals under the metropolitan council's metropolitan development 
        guide, adopted under section 473.145, "displace" means the 
        demolition, acquisition, or conversion of housing only for 
        purposes other than the construction or rehabilitation of 
        housing. 
           Sec. 119.  Minnesota Statutes 1994, section 504.34, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ANNUAL REPORT REQUIRED.] A government 
        unit, or in the case of a government unit located in the 
        metropolitan area as defined in section 473.121, the government 
        unit and the metropolitan council, shall prepare a housing 
        impact report either: 
           (1) for each year in which the government unit displaces 
        ten or more units of low-income housing in a city of the first 
        class as defined in section 410.01; or 
           (2) when a specific project undertaken by a government unit 
        for longer than one year displaces a total of ten or more units 
        of low-income housing in a city of the first class as defined in 
        section 410.01. 
           Sec. 120.  Minnesota Statutes 1994, section 504.34, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DRAFT ANNUAL HOUSING IMPACT REPORT.] As provided 
        in subdivision 1, a government unit or in the case of a 
        government unit participating with located in the metropolitan 
        area, as defined in section 473.121, subdivision 2, the 
        metropolitan council subject to this section must prepare a 
        draft annual housing impact report for review and comment by 
        interested persons.  The draft report must be completed by 
        January 31 of the year immediately following a year in which the 
        government unit has displaced ten or more units of low-income 
        housing in a city.  For a housing impact report required under 
        subdivision 1, clause (2), the draft report must be completed by 
        January 31 of the year immediately following the year in which 
        the government unit has displaced a cumulative total of ten 
        units of low-income housing in a city. 
           Sec. 121.  Minnesota Statutes 1994, section 504.35, is 
        amended to read: 
           504.35 [REPLACEMENT HOUSING REQUIRED.] 
           A government unit which displaces ten or more units of 
        low-income housing in a city of the first class as defined in 
        section 410.01 and is subject to section 504.34 or in any city 
        located within the metropolitan area as defined in section 
        473.121, subdivision 2, must provide the replacement housing 
        within 36 months following the date of the final annual housing 
        impact report, unless there is an adequate supply of available 
        and unoccupied low-income housing units to meet the demand for 
        the replacement housing in the city where housing has been 
        displaced by the government unit. 
           Sec. 122.  [AFFORDABLE NEIGHBORHOOD DESIGN AND DEVELOPMENT 
        INITIATIVE.] 
           In order to develop and implement methods of reducing the 
        total costs of housing units through the innovative use of 
        technology and planning, the housing finance agency may conduct 
        a competition or secure proposals for innovative plans for the 
        development of housing units affordable to low-income persons.  
        The agency shall seek models for use by local units of 
        government and nonprofit organizations to develop neighborhoods 
        with small, owner-occupied affordable housing.  The agency may 
        seek plans that reduce construction costs through technological 
        advancements, uniform housing designs suitable for use 
        throughout the state, central purchasing of material or housing 
        components, or streamlining of regulatory processes for site 
        planning and land development.  Designs selected become the 
        property of the state of Minnesota.  The agency may award one or 
        more premiums in each competition and may share the costs and 
        fees that may be required for the conduct of competitions. 
           Sec. 123.  [REPLACEMENT HOUSING; METROPOLITAN COUNCIL 
        STUDY.] 
           The metropolitan council shall study the issue of 
        replacement housing and the need for a metropolitan area 
        replacement housing law.  The council shall report the results 
        of the study and its recommendations to the legislature by 
        December 1, 1996. 
           Sec. 124.  Laws 1994, chapter 643, section 19, subdivision 
        9, is amended to read: 
        Subd. 9.  Museum and Center for 
        American Indian History                               1,100,000
        This appropriation is for the Minnesota 
        historical society board of trustees of 
        the Minnesota state colleges and 
        universities to plan, design, and 
        construct a museum and center for 
        American Indian history and policy.  
        The facility shall be located at an 
        institution of higher education, 
        selected by the state university board, 
        which serves a region including the 
        three most populous Indian reservations 
        Bemidji State University.  This 
        appropriation is not available unless 
        matched by $1,000,000 from nonpublic 
        sources.  The board of trustees of the 
        Minnesota state colleges and 
        universities is not required to pay any 
        debt service for this appropriation. 
           Sec. 125.  [APPLICABILITY.] 
           Sections 119, 120, and 123 apply in the counties of Anoka, 
        Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. 
           Sec. 126.  [REPEALER.] 
           (a) Minnesota Statutes 1994, sections 116J.874, subdivision 
        6; 268A.01, subdivisions 7, 11, and 12; and 268A.09, are 
        repealed. 
           (b) Minnesota Statutes 1994, sections 298.2211, subdivision 
        3a, and 462A.21, subdivision 8c, are repealed. 
           (c) Minnesota Statutes 1994, section 97A.531, subdivisions 
        2, 3, 4, 5, and 6, are repealed.  Any action of the commissioner 
        of natural resources under authority of those subdivisions is 
        void. 
           (d) Laws 1990, chapter 521, section 4, is repealed. 
           Sec. 127.  [EFFECTIVE DATES.] 
           Sections 18, subdivision 5; 30 to 47; 49; 57; 69; 71; 76; 
        79; 95; 96; 98; 100 to 103; 108; 112; 115; 116; 123 to 125; 126, 
        paragraphs (b), (c), and (d); and all provisions of this act 
        making appropriations for fiscal year 1995, are effective the 
        day following final enactment.  Section 51 is effective the day 
        following final enactment and is repealed December 31, 1995.  
        Section 52 is effective May 1, 1996.  Sections 117 to 121 are 
        effective August 1, 1997.  All other provisions of this act are 
        effective July 1, 1995. 
           Presented to the governor May 22, 1995 
           Signed by the governor May 25, 1995, 3:12 p.m.