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Office of the Revisor of Statutes

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

                            CHAPTER 255-S.F.No. 1019 
                  An act relating to metropolitan government; 
                  establishing the metropolitan livable communities fund 
                  and providing for fund distribution; reducing the levy 
                  authority of the metropolitan mosquito control 
                  commission; providing for certain revenue sharing; 
                  regulating employee layoffs by the metropolitan 
                  mosquito control district; authorizing an economic 
                  vitality and housing initiative; amending Minnesota 
                  Statutes 1994, sections 116J.552, subdivision 2; 
                  116J.555, subdivision 2; 116J.556; 473.167, 
                  subdivisions 2, 3, and by adding a subdivision; 
                  473.711, subdivision 2; and 473F.08, subdivisions 3a, 
                  5, 7a, and by adding a subdivision; proposing coding 
                  for new law in Minnesota Statutes, chapter 473; 
                  repealing Minnesota Statutes 1994, sections 504.33; 
                  504.34; and 504.35.  
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
                                   ARTICLE 1 
                      METROPOLITAN LIVABLE COMMUNITIES ACT 
           Section 1.  [473.25] [LIVABLE COMMUNITIES CRITERIA AND 
        GUIDELINES.] 
           (a) The council shall establish criteria for uses of the 
        fund provided in section 473.251 that are consistent with and 
        promote the purposes of this article and the policies of the 
        metropolitan development guide adopted by the council including, 
        but not limited to: 
           (1) helping to change long-term market incentives that 
        adversely impact creation and preservation of living-wage jobs 
        in the fully developed area; 
           (2) creating incentives for developing communities to 
        include a full range of housing opportunities; 
           (3) creating incentives to preserve and rehabilitate 
        affordable housing in the fully developed area; and 
           (4) creating incentives for all communities to implement 
        compact and efficient development.  
           (b) The council shall establish guidelines for the livable 
        community demonstration account for projects that the council 
        would consider funding with either grants or loans.  The 
        guidelines must provide that the projects will: 
           (1) interrelate development or redevelopment and transit; 
           (2) interrelate affordable housing and employment growth 
        areas; 
           (3) intensify land use that leads to more compact 
        development or redevelopment; 
           (4) involve development or redevelopment that mixes incomes 
        of residents in housing, including introducing or reintroducing 
        higher value housing in lower income areas to achieve a mix of 
        housing opportunities; or 
           (5) encourage public infrastructure investments which 
        connect urban neighborhoods and suburban communities, attract 
        private sector redevelopment investment in commercial and 
        residential properties adjacent to the public improvement, and 
        provide project area residents with expanded opportunities for 
        private sector employment. 
           (c) The council shall establish guidelines governing who 
        may apply for a grant or loan from the fund, providing priority 
        for proposals using innovative partnerships between government, 
        private for-profit, and nonprofit sectors. 
           (d) The council shall prepare an annual plan for 
        distribution of the fund based on the criteria for project and 
        applicant selection.  
           (e) The council shall prepare and submit to the 
        legislature, as provided in section 3.195, an annual report on 
        the metropolitan livable communities fund.  The report must 
        include information on the amount of money in the fund, the 
        amount distributed, to whom the funds were distributed and for 
        what purposes, and an evaluation of the effectiveness of the 
        projects funded in meeting the policies and goals of the 
        council.  The report may make recommendations to the legislature 
        on changes to this act. 
           Sec. 2.  [473.251] [METROPOLITAN LIVABLE COMMUNITIES FUND.] 
           The metropolitan livable communities fund is created and 
        consists of the following accounts:  
           (1) the tax base revitalization account; 
           (2) the livable communities demonstration account; and 
           (3) the local housing incentives account. 
           Sec. 3.  [473.252] [TAX BASE REVITALIZATION ACCOUNT.] 
           Subdivision 1.  [DEFINITION.] For the purposes of this 
        section, "municipality" means a statutory or home rule charter 
        city or town participating in the local housing incentives 
        program under section 473.254, or a county in the metropolitan 
        area.  
           Subd. 2.  [SOURCES OF FUNDS.] The council shall credit to 
        the tax base revitalization account within the fund the amount, 
        if any, provided for under section 473.167, subdivision 3a, 
        paragraph (b), and the amount, if any, distributed to the 
        council under section 473F.08, subdivision 3b. 
           Subd. 3.  [DISTRIBUTION OF FUNDS.] (a) The council must use 
        the funds in the account to make grants to municipalities for 
        the cleanup of polluted land in the metropolitan area.  A grant 
        to a metropolitan county must be used for a project in a 
        participating municipality.  The council shall prescribe and 
        provide the grant application form to municipalities.  The 
        council must consider the probability of funding from other 
        sources when making grants under this section. 
           (b)(1) The legislature expects that applications for grants 
        will exceed the available funds and the council will be able to 
        provide grants to only some of the applicant municipalities.  If 
        applications for grants for qualified sites exceed the available 
        funds, the council shall make grants that provide the highest 
        return in public benefits for the public costs incurred, that 
        encourage commercial and industrial development that will lead 
        to the preservation or growth of living-wage jobs and that 
        enhance the tax base of the recipient municipality. 
           (2) In making grants, the council shall establish regular 
        application deadlines in which grants will be awarded from the 
        available money in the account.  If the council provides for 
        application cycles of less than six-month intervals, the council 
        must reserve at least 40 percent of the receipts of the account 
        for a year for application deadlines that occur in the second 
        half of the year.  If the applications for grants exceed the 
        available funds for an application cycle, no more than one-half 
        of the funds may be granted to projects in a statutory or home 
        rule charter city and no more than three-quarters of the funds 
        may be granted to projects located in cities of the first class. 
           (c) A municipality may use the grant to provide a portion 
        of the local match requirement for project costs that qualify 
        for a grant under sections 116J.551 to 116J.557. 
           Sec. 4.  [473.253] [LIVABLE COMMUNITIES DEMONSTRATION 
        ACCOUNT.] 
           Subdivision 1.  [SOURCES OF FUNDS.] The council shall 
        credit to the livable communities demonstration account the 
        revenues provided in this subdivision.  This tax shall be levied 
        and collected in the manner provided by section 473.13.  The 
        levy shall not exceed the following amount for the years 
        specified:  
           (a)(1) for taxes payable in 1996, 50 percent of (i) the 
        metropolitan mosquito control commission's property tax levy for 
        taxes payable in 1995 multiplied by (ii) an index for market 
        valuation changes equal to the total market valuation of all 
        taxable property located within the metropolitan area for the 
        current taxes payable year divided by the total market valuation 
        of all taxable property located in the metropolitan area for the 
        previous taxes payable year; and 
           (2) for taxes payable in 1997 and subsequent years, the 
        product of (i) the property tax levy limit under this 
        subdivision for the previous year multiplied by (ii) an index 
        for market valuation changes equal to the total market valuation 
        of all taxable property located within the metropolitan area for 
        the current taxes payable year divided by the total market 
        valuation of all taxable property located in the metropolitan 
        area for the previous taxes payable year. 
           For the purposes of this subdivision, "total market 
        valuation" means the total market valuation of all taxable 
        property within the metropolitan area without valuation 
        adjustments for fiscal disparities under chapter 473F, tax 
        increment financing under sections 469.174 to 469.179, and high 
        voltage transmission lines under section 273.425. 
           (b) The metropolitan council, for the purposes of the fund, 
        is considered a unique taxing jurisdiction for purposes of 
        receiving aid pursuant to section 273.1398.  For aid to be 
        received in 1996, the fund's homestead and agricultural credit 
        base shall equal 50 percent of the metropolitan mosquito control 
        commission's certified homestead and agricultural credit aid for 
        1995, determined under section 273.1398, subdivision 2, less any 
        permanent aid reduction under section 477A.0132.  For aid to be 
        received under section 273.1398 in 1997 and subsequent years, 
        the fund's homestead and agricultural credit base shall be 
        determined in accordance with section 273.1398, subdivision 1. 
           Subd. 2.  [DISTRIBUTION OF FUNDS.] The council shall use 
        the funds in the livable communities demonstration account to 
        make grants or loans to municipalities participating in the 
        local housing incentives program under section 473.254 or to 
        metropolitan area counties to fund the initiatives specified in 
        section 473.25, paragraph (b), in participating municipalities. 
           Sec. 5.  [473.254] [LOCAL HOUSING INCENTIVES ACCOUNT.] 
           Subdivision 1.  [PARTICIPATION.] (a) By November 15 of each 
        year, a municipality may elect to participate in the local 
        housing incentive account program.  If a municipality does not 
        elect to participate for the year, it is not subject to this 
        section.  For purposes of this section, municipality means a 
        municipality electing to participate in the local housing 
        incentive account program, unless the context indicates 
        otherwise. 
           (b) A municipality that elects to participate may receive 
        grants or loans from the tax base revitalization account, 
        livable communities demonstration account, or the local housing 
        incentive account.  A municipality that does not participate is 
        not eligible to receive a grant under sections 116J.551 to 
        116J.557.  The council, when making discretionary funding 
        decisions, shall give consideration to a municipality's 
        participation in the local housing incentives program.  
           Subd. 2.  [AFFORDABLE AND LIFE-CYCLE HOUSING GOALS.] The 
        council shall negotiate with each municipality to establish 
        affordable and life-cycle housing goals for that municipality 
        that are consistent with and promote the policies of the 
        metropolitan council as provided in the adopted metropolitan 
        development guide.  The council shall adopt, by resolution after 
        a public hearing, the negotiated affordable and life-cycle 
        housing goals for each municipality by January 15, 1996.  By 
        June 30, 1996, each municipality shall identify to the council 
        the actions it plans to take to meet the established housing 
        goals. 
           Subd. 3.  [AFFORDABLE AND LIFE-CYCLE HOUSING OPPORTUNITIES 
        AMOUNT.] (1) By July 1, 1996, each county assessor shall certify 
        each municipality's average residential homestead limited market 
        value for the 1994 assessment year, including the value of the 
        farm house, garage, and one acre only in the case of farm 
        homesteads, multiplied by a factor of two, as the municipality's 
        "market value base amount."  For 1997 and thereafter, the 
        "market value base amount" shall be equal to the product of (i) 
        the market value base amount for the previous year multiplied by 
        (ii) the annual average United States Consumer Price Index for 
        all urban consumers, United States average, as determined by the 
        United States Department of Labor, for the previous year divided 
        by that annual average for the year before the previous year.  
           (2) By July 1, 1996, and each succeeding year the county 
        assessor shall determine which homesteads have market values in 
        excess of the municipality's market value base amount and the 
        county auditor shall certify the aggregate net tax capacity 
        corresponding to the amount by which those homesteads' market 
        values exceed the municipality's market value base amount as the 
        "net tax capacity excess amount" for the assessment year 
        corresponding to the current taxes payable year.  By July 1, 
        1996, the county auditor shall also certify the net tax capacity 
        excess amount for taxes payable in 1995. 
           (3) By July 1, 1996, and each succeeding year, the county 
        auditor shall also certify each municipality's local tax rate 
        for the current taxes payable year. 
           (4) By July 1, 1996, and each succeeding year, the county 
        auditor shall certify for each municipality the amount equal to 
        four percent of the municipality's current year total 
        residential homestead tax capacity multiplied by the local tax 
        rate. 
           (5) By August 1, 1996, and each succeeding year, the 
        metropolitan council shall notify each municipality of its 
        "affordable and life-cycle housing opportunities amount" for the 
        following calendar year equal to the lesser of the amount 
        certified under clause (4) or the amount, if any, by which the 
        net tax capacity excess amount for the current year exceeds the 
        amount for taxes payable in 1995, multiplied by the 
        municipality's local tax rate certified in clause (3). 
           Subd. 4.  [AFFORDABLE AND LIFE-CYCLE HOUSING REQUIREMENT.] 
        (a) A municipality that is determined by the council to have met 
        its affordable and life-cycle housing goals in the previous 
        calendar year may retain the amount calculated under subdivision 
        3 to maintain existing affordable and life-cycle housing. 
           (b) In 1998, and thereafter, a municipality that is 
        determined by the council not to have met the affordable and 
        life-cycle housing goals in the previous calendar year, as 
        negotiated and agreed to with the council, and not to have spent 
        85 percent of its affordable and life-cycle housing 
        opportunities amount to create affordable and life-cycle housing 
        opportunities in the previous calendar year must do one of the 
        following with the affordable and life-cycle housing 
        opportunities amount for the previous year as determined under 
        subdivision 3: 
           (1) distribute it to the local housing incentives account; 
        or 
           (2) distribute it to the housing and redevelopment 
        authority of the city or county in which the municipality is 
        located to create affordable and life-cycle housing 
        opportunities in the municipality. 
           A municipality may enter into agreements with adjacent 
        municipalities to cooperatively provide affordable and 
        life-cycle housing.  The housing may be provided in any of the 
        cooperating municipalities, but must meet the combined housing 
        goals of each participating municipality. 
           Subd. 5.  [SOURCES OF FUNDS.] (a) The council shall credit 
        to the local housing incentives account any revenues derived 
        from municipalities under subdivision 4, paragraph (b), clause 
        (1). 
           (b) The council shall credit $1,000,000 of the proceeds of 
        solid waste bonds issued by the council under Minnesota 
        Statutes, section 473.831, before its repeal, to the local 
        housing incentives account in the metropolitan livable 
        communities fund.  In 1998 and each year thereafter, the council 
        shall credit $1,000,000 of the revenues generated by the levy 
        authorized in section 473.249 to the local housing incentives 
        account. 
           (c) In 1997, and each year thereafter, the council shall 
        transfer $500,000 from the livable communities demonstration 
        account to the local housing incentives account.  
           Subd. 6.  [DISTRIBUTION OF FUNDS.] The funds in the account 
        must be distributed annually by the council to municipalities 
        that: 
           (1) have not met their affordable and life-cycle housing 
        goals as determined by the council; and 
           (2) are actively funding projects designed to help meet the 
        goals.  
           The funds distributed by the council must be matched on a 
        dollar-for-dollar basis by the municipality receiving the 
        funds.  When distributing funds in the account, the council must 
        give priority to those municipalities that (1) have contribution 
        net tax capacities that exceed their distribution net tax 
        capacities by more than $200 per household, (2) demonstrate the 
        proposed project will link employment opportunities with 
        affordable and life-cycle housing, and (3) provide matching 
        funds from a source other than the required amount under 
        subdivision 3.  For the purposes of this subdivision, 
        "municipality" means a statutory or home rule charter city or 
        town in the metropolitan area. 
           Subd. 7.  [REPORTING REQUIREMENT.] Beginning January 15, 
        1998, and annually thereafter, each municipality must report to 
        the council the following: 
           (1) the tax revenues defined in subdivision 3 that were 
        levied in the prior year; 
           (2) the portion of the revenues that were spent on meeting 
        the municipality's affordable and life-cycle housing goals; and 
           (3) information on how the expenditures directly support 
        the municipality's efforts to meet its affordable and life-cycle 
        housing goals. 
           The council shall verify each municipality's compliance 
        with this subdivision. 
           Subd. 8.  [LATER ELECTION TO PARTICIPATE.] If a 
        municipality did not participate for one or more years and 
        elects later to participate, the municipality must establish 
        that it has spent or agrees to spend on affordable and 
        life-cycle housing, or agrees to distribute to the local housing 
        incentives account, an amount equivalent to what it would have 
        spent on affordable and life-cycle housing had goals been 
        established under this section for the period in which it was 
        not participating.  The council will determine which investments 
        count toward the required cumulative investment amount by 
        comparing the municipality to participating municipalities 
        similar in terms of stage of development and demographics.  If 
        it determines it to be in the best interests of the region, the 
        council may waive a reasonable portion of the cumulative 
        investment amount.  
           Subd. 9.  [REPORT TO THE LEGISLATURE.] By February 1 of 
        each year, the council must report to the legislature the 
        municipalities that have elected to participate and not to 
        participate under subdivision 1.  This report must be filed as 
        provided in section 3.195. 
           Subd. 10.  [COMPREHENSIVE REPORT CARD ON AFFORDABLE AND 
        LIFE CYCLE HOUSING.] The metropolitan council shall present to 
        the legislature and release to the public by November 15, 1996, 
        and each year thereafter a comprehensive report card on 
        affordable and life cycle housing in each municipality in the 
        metropolitan area.  The report card must include information on 
        government, nonprofit, and marketplace efforts. 
           Sec. 6.  [PROGRAM EVALUATION.] 
           The metropolitan council shall submit a report to the 
        legislature by January 15, 2003, evaluating the metropolitan 
        livable communities act.  The report must include an accounting 
        of the funds credited to the tax base revitalization account, 
        the livable communities demonstration account, and the local 
        housing incentives account, a summary of how the funds were 
        spent, an analysis of the costs and benefits of the program, and 
        recommendations for future legislative action regarding the 
        program. 
           Sec. 7.  [2020 REPORT.] 
           The metropolitan council shall report to the legislature by 
        January 15, 1996, on the probable development patterns in and 
        affecting the metropolitan area by the year 2020 under various 
        scenarios, including the present course of growth versus 
        directed, compact, and efficient development.  The report should 
        consider impacts on the greater metropolitan region, including 
        within it counties in which five percent or more of residents 
        commute to employment in the present metropolitan region or 
        which are part of the metropolitan area as defined by the U.S. 
        Department of Commerce Standard Metropolitan Statistical Area.  
           Sec. 8.  [APPLICATION.] 
           This article applies in the counties of Anoka, Carver, 
        Dakota, Hennepin, Ramsey, Scott, and Washington. 
           Sec. 9.  [EFFECTIVE DATE.] 
           This article is effective the day after final enactment.  
        Section 4 is effective for taxes levied in 1995 and payable in 
        1996, and subsequent years. 
                                   ARTICLE 2
                            MISCELLANEOUS AMENDMENTS 
           Section 1.  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. 2.  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. 3.  Minnesota Statutes 1994, section 116J.554, is 
        amended by adding a subdivision to read: 
           Subd. 1a.  [METROPOLITAN LIVABLE COMMUNITIES.] The 
        commissioner may not make a grant to a municipality in the 
        metropolitan area unless it is participating in the local 
        housing incentives program under section 473.254.  
           Sec. 4.  Minnesota Statutes 1994, section 116J.556, is 
        amended to read: 
           116J.556 [LOCAL MATCH REQUIREMENT.] 
           (a) In order to qualify for a grant under sections 116J.551 
        to 116J.557, the municipality must pay for at least one-half of 
        the project costs as a local match.  The municipality shall pay 
        an amount of the project costs equal to at least 18 12 percent 
        of the cleanup costs from the municipality's general fund, a 
        property tax levy for that purpose, or other unrestricted money 
        available to the municipality (excluding tax increments).  These 
        unrestricted moneys may be spent for project costs, other than 
        cleanup costs, and qualify for the local match payment equal to 
        18 12 percent of cleanup costs.  The rest of the local match may 
        be paid with tax increments, regional, state, or federal money 
        available for the redevelopment of brownfields or any other 
        money available to the municipality. 
           (b) If the development authority establishes a tax 
        increment financing district or hazardous substance subdistrict 
        on the site to pay for part of the local match requirement, the 
        district or subdistrict is not subject to the state aid 
        reductions under section 273.1399.  In order to qualify for the 
        exemption from the state aid reductions, the municipality must 
        elect, by resolution, on or before the request for certification 
        is filed that all tax increments from the district or 
        subdistrict will be used exclusively to pay (1) for project 
        costs for the site and (2) administrative costs for the district 
        or subdistrict.  The district or subdistrict must be decertified 
        when an amount of tax increments equal to no more than three 
        times the costs of implementing the response action plan for the 
        site and the administrative costs for the district or 
        subdistrict have been received, after deducting the amount of 
        the state grant. 
           Sec. 5.  Minnesota Statutes 1994, section 473.167, 
        subdivision 2, is amended to read: 
           Subd. 2.  [LOANS FOR ACQUISITION.] The council may make 
        loans to counties, towns, and statutory and home rule charter 
        cities within the metropolitan area for the purchase of property 
        within the right-of-way of a state trunk highway shown on an 
        official map adopted pursuant to section 394.361 or 462.359 or 
        for the purchase of property within the proposed right-of-way of 
        a principal or intermediate arterial highway designated by the 
        council as a part of the metropolitan highway system plan and 
        approved by the council pursuant to subdivision 1.  The loans 
        shall be made by the council, from the fund established pursuant 
        to this subdivision, for purchases approved by the council.  The 
        loans shall bear no interest.  The council shall make loans 
        only:  (1) to accelerate the acquisition of primarily 
        undeveloped property when there is a reasonable probability that 
        the property will increase in value before highway construction, 
        and to update an expired environmental impact statement on a 
        project for which the right-of-way is being purchased; (2) to 
        avert the imminent conversion or the granting of approvals which 
        would allow the conversion of property to uses which would 
        jeopardize its availability for highway construction; or (3) to 
        advance planning and environmental activities on highest 
        priority major metropolitan river crossing projects, under the 
        transportation development guide chapter/policy plan.  The 
        council shall not make loans for the purchase of property at a 
        price which exceeds the fair market value of the property or 
        which includes the costs of relocating or moving persons or 
        property.  A private property owner may elect to receive the 
        purchase price either in a lump sum or in not more than four 
        annual installments without interest on the deferred 
        installments.  If the purchase agreement provides for 
        installment payments, the council shall make the loan in 
        installments corresponding to those in the purchase agreement.  
        The recipient of an acquisition loan shall convey the property 
        for the construction of the highway at the same price which the 
        recipient paid for the property.  The price may include the 
        costs of preparing environmental documents that were required 
        for the acquisition and that were paid for with money that the 
        recipient received from the loan fund.  Upon notification by the 
        council that the plan to construct the highway has been 
        abandoned or the anticipated location of the highway changed, 
        the recipient shall sell the property at market value in 
        accordance with the procedures required for the disposition of 
        the property.  All rents and other money received because of the 
        recipient's ownership of the property and all proceeds from the 
        conveyance or sale of the property shall be paid to the 
        council.  If a recipient is not permitted to include in the 
        conveyance price the cost of preparing environmental documents 
        that were required for the acquisition, then the recipient is 
        not required to repay the council an amount equal to 40 percent 
        of the money received from the loan fund and spent in preparing 
        the environmental documents.  The proceeds of the tax authorized 
        by subdivision 3 and distributed to the right-of-way acquisition 
        loan fund pursuant to subdivision 3a, paragraph (a), all money 
        paid to the council by recipients of loans, and all interest on 
        the proceeds and payments shall be maintained as a separate 
        fund.  For administration of the loan program, the council may 
        expend from the fund each year an amount no greater than three 
        percent of the amount of the authorized levy proceeds 
        distributed to the right-of-way acquisition loan fund pursuant 
        to subdivision 3a, paragraph (a), for that year. 
           Sec. 6.  Minnesota Statutes 1994, section 473.167, 
        subdivision 3, is amended to read: 
           Subd. 3.  [TAX.] The council may levy a tax on all taxable 
        property in the metropolitan area, as defined in section 
        473.121, to provide funds for loans made pursuant to 
        subdivisions 2 and 2a and for the tax base revitalization 
        account in the metropolitan livable communities fund, 
        established under section 473.251.  This tax for the 
        right-of-way acquisition loan fund and the tax base 
        revitalization account shall be certified by the council, 
        levied, and collected in the manner provided by section 473.13.  
        The tax shall be in addition to that authorized by section 
        473.249 and any other law and shall not affect the amount or 
        rate of taxes which may be levied by the council or any 
        metropolitan agency or local governmental unit.  The amount of 
        the levy shall be as determined and certified by the council, 
        except as otherwise provided in this subdivision.  
           The property tax levied by the metropolitan council for the 
        right-of-way acquisition loan fund and the tax base 
        revitalization account shall not exceed the following amount for 
        the years specified: 
           (a) for taxes payable in 1988, the product of 5/100 of one 
        mill multiplied by the total assessed valuation of all taxable 
        property located within the metropolitan area as adjusted by the 
        provisions of Minnesota Statutes 1986, sections 272.64; 273.13, 
        subdivision 7a; and 275.49; 
           (b) for taxes payable in 1989, except as provided in 
        section 473.249, subdivision 3, the product of (1) the 
        metropolitan council's property tax levy limitation for the 
        right-of-way acquisition loan fund for the taxes payable year 
        1988 determined under clause (a) multiplied by (2) an index for 
        market valuation changes equal to the assessment year 1988 total 
        market valuation of all taxable property located within the 
        metropolitan area divided by the assessment year 1987 total 
        market valuation of all taxable property located within the 
        metropolitan area; 
           (c) for taxes payable in 1990, an amount not to exceed 
        $2,700,000; and 
           (d) for taxes payable in 1991 and subsequent years, the 
        product of (1) the metropolitan council's property tax levy 
        limitation for the right-of-way acquisition loan fund for the 
        taxes payable in 1988 determined under clause (a) multiplied by 
        (2) an index for market valuation changes equal to the total 
        market valuation of all taxable property located within the 
        metropolitan area for the current taxes payable year divided by 
        the total market valuation of all taxable property located 
        within the metropolitan area for taxes payable in 1988. 
           For the purpose of determining the metropolitan council's 
        property tax levy limitation for the right-of-way acquisition 
        loan fund and tax base revitalization account in the 
        metropolitan livable communities fund, under section 473.251, 
        for the taxes payable year 1988 and subsequent years under this 
        subdivision, "total market valuation" means the total market 
        valuation of all taxable property within the metropolitan area 
        without valuation adjustments for fiscal disparities (chapter 
        473F), tax increment financing (sections 469.174 to 469.179), 
        and high voltage transmission lines (section 273.425). 
           The property tax levied under this subdivision for taxes 
        payable in 1988 and subsequent years shall not be levied at a 
        rate higher than that determined by the metropolitan council to 
        be sufficient, considering the other anticipated revenues of and 
        disbursements from the right-of-way acquisition loan fund, to 
        produce a balance in the loan fund at the end of the next 
        calendar year equal to twice the amount of the property tax levy 
        limitation for taxes payable in the next calendar year 
        determined under this section. 
           Sec. 7.  Minnesota Statutes 1994, section 473.167, is 
        amended by adding a subdivision to read: 
           Subd. 3a.  [DISTRIBUTION OF TAX PROCEEDS.] (a) Right-of-way 
        acquisition loan fund.  Tax proceeds shall first be deposited 
        into the right-of-way acquisition loan fund in an amount 
        determined by the metropolitan council to be sufficient, 
        considering the other anticipated revenues of and disbursements 
        from the right-of-way acquisition loan fund, to produce a 
        balance in the loan fund at the end of the next calendar year 
        equal to twice the amount of the property tax levy limitation 
        for taxes payable in the next calendar year determined under 
        subdivision 3. 
           (b) Metropolitan livable communities tax base 
        revitalization account.  Any tax proceeds not first deposited 
        into the right-of-way acquisition loan fund shall be distributed 
        to the tax base revitalization account in the metropolitan 
        livable communities fund, established under section 473.251. 
           Sec. 8.  Minnesota Statutes 1994, section 473.704, 
        subdivision 18, is amended to read: 
           Subd. 18.  The commission may establish a research program 
        to evaluate the effects of control programs on other fauna.  The 
        purpose of the program is to identify the types and magnitude of 
        the adverse effects of the control program on fish and wildlife 
        and associated food chain invertebrates.  The commission may 
        conduct research through contracts with qualified outside 
        researchers.  The commission may finance the research program 
        each year at a level up to 2.5 percent of its annual budget, 
        until December 31, 1995.  
           Sec. 9.  Minnesota Statutes 1994, section 473.711, 
        subdivision 2, is amended to read: 
           Subd. 2.  [BUDGET; TAX LEVY.] (a) Budget.  The metropolitan 
        mosquito control commission shall prepare an annual budget.  The 
        budget may provide for expenditures in an amount not exceeding 
        the property tax levy limitation determined in this subdivision. 
           (b) Tax Levy.  The commission may levy a tax on all taxable 
        property in the district as defined in section 473.702 to 
        provide funds for the purposes of sections 473.701 to 473.716.  
        The tax shall not exceed the property tax levy limitation 
        determined in this subdivision.  A participating county may 
        agree to levy an additional tax to be used by the commission for 
        the purposes of sections 473.701 to 473.716 but the sum of the 
        county's and commission's taxes may not exceed the county's 
        proportionate share of the property tax levy limitation 
        determined under this subdivision based on the ratio of its 
        total net tax capacity to the total net tax capacity of the 
        entire district as adjusted by section 270.12, subdivision 3.  
        The auditor of each county in the district shall add the amount 
        of the levy made by the district to other taxes of the county 
        for collection by the county treasurer with other taxes.  When 
        collected, the county treasurer shall make settlement of the tax 
        with the district in the same manner as other taxes are 
        distributed to political subdivisions.  No county shall levy any 
        tax for mosquito, disease vectoring tick, and black gnat 
        (Simuliidae) control except under sections 473.701 to 473.716 
        this section.  The levy shall be in addition to other taxes 
        authorized by law. 
           The property tax levied by the metropolitan mosquito 
        control commission shall not exceed the following amount for the 
        years specified: 
           (i) for taxes payable in 1996, the product of (1) the 
        commission's property tax levy limitation for the previous 
        year taxes payable in 1995 determined under this 
        subdivision minus 50 percent of the amount actually levied for 
        taxes payable in 1995, multiplied by (2) an index for market 
        valuation changes equal to the total market valuation of all 
        taxable property located within the district for the 
        current assessment taxes payable year divided by the total 
        market valuation of all taxable property located within the 
        district for the previous assessment taxes payable year; and 
           (ii) for taxes payable in 1997 and subsequent years, the 
        product of (1) the commission's property tax levy limitation for 
        the previous year determined under this subdivision multiplied 
        by (2) an index for market valuation changes equal to the total 
        market valuation of all taxable property located within the 
        district for the current taxes payable year divided by the total 
        market valuation of all taxable property located within the 
        district for the previous taxes payable year. 
           For the purpose of determining the commission's property 
        tax levy limitation under this subdivision, "total market 
        valuation" means the total market valuation of all taxable 
        property within the district without valuation adjustments for 
        fiscal disparities (chapter 473F), tax increment financing 
        (sections 469.174 to 469.179), and high voltage transmission 
        lines (section 273.425). 
           (c) Homestead and Agricultural Credit Aid.  For aids 
        payable in 1996 and subsequent years, the commission's homestead 
        and agricultural credit aid base under section 273.1398, 
        subdivision 1, is permanently reduced by 50 percent of the 
        amount certified to be received in 1995, less any permanent aid 
        reduction in 1995 under section 477A.0132. 
           (d) Emergency Tax Levy.  If the commissioner of the 
        department of health declares a health emergency due to a 
        threatened or actual outbreak of disease caused by mosquitos, 
        disease vectoring ticks, or black gnats (Simuliidae), the 
        commission may levy an additional tax not to exceed $500,000 on 
        all taxable property in the district to pay for the required 
        control measures. 
           (e) Optional County Levy.  A participating county may levy 
        a tax in an amount to be determined by the county board for 
        mosquito, disease vectoring tick, and black gnat (Simuliidae) 
        nuisance control.  If the county levies the tax for nuisance 
        control, it must contract with the commission to provide for 
        nuisance control activities within the county.  The levy for 
        nuisance control shall be in addition to other levies authorized 
        by law to the county. 
           Sec. 10.  Minnesota Statutes 1994, section 473F.08, 
        subdivision 3a, is amended to read: 
           Subd. 3a.  Beginning in 1987 and each subsequent year 
        through 1998, the city of Bloomington shall determine the 
        interest payments for that year for the bonds which have been 
        sold for the highway improvements pursuant to Laws 1986, chapter 
        391, section 2, paragraph (g).  Effective for property taxes 
        payable in 1988 through property taxes payable in 1999, after 
        the Hennepin county auditor has computed the areawide portion of 
        the levy for the city of Bloomington pursuant to subdivision 3, 
        clause (a), the auditor shall annually add a dollar amount to 
        the city of Bloomington's areawide portion of the levy equal to 
        the amount which has been certified to the auditor by the city 
        of Bloomington for the interest payments for that year for the 
        bonds which were sold for highway improvements.  The total 
        areawide portion of the levy for the city of Bloomington 
        including the additional amount for interest repayment certified 
        pursuant to this subdivision shall be certified by the Hennepin 
        county auditor to the administrative auditor pursuant to 
        subdivision 5.  The Hennepin county auditor shall distribute to 
        the city of Bloomington the additional areawide portion of the 
        levy computed pursuant to this subdivision at the same time that 
        payments are made to the other counties pursuant to subdivision 
        7a.  For property taxes payable from the year 2000 2006 through 
        2009 2015, the Hennepin county auditor shall adjust 
        Bloomington's contribution to the areawide gross tax capacity 
        upward each year by a value equal to ten percent of the total 
        additional areawide levy distributed to Bloomington under this 
        subdivision from 1988 to 1999, divided by the areawide tax rate 
        for taxes payable in the previous year. 
           Sec. 11.  Minnesota Statutes 1994, section 473F.08, is 
        amended by adding a subdivision to read: 
           Subd. 3b.  [LIVABLE COMMUNITIES FUND.] (a) The Hennepin 
        county auditor shall certify the city of Bloomington's interest 
        payments for 1987 for the bonds which were sold for highway 
        improvements pursuant to Laws 1986, chapter 391, section 2, 
        paragraph (g), and which were certified as an addition to the 
        city of Bloomington's areawide levy for taxes payable in 1988. 
           (b) For taxes payable in 1996 through taxes payable in 
        1999, the Hennepin county auditor shall certify the amount 
        calculated by subtracting the amount certified under subdivision 
        3a from the amount in paragraph (a).  For taxes payable in 2000 
        and subsequent years, the Hennepin county auditor shall certify 
        the amount calculated in paragraph (a).  
           (c) The metropolitan council may annually certify to the 
        Ramsey county auditor the amount calculated under paragraph (b), 
        or a lesser amount, but not to exceed $5,000,000, to be used to 
        provide funds for the cleanup of polluted lands in the 
        metropolitan area. 
           (d) The amount certified under paragraph (c) shall be 
        certified annually by the Ramsey county auditor to the 
        administrative auditor as an addition to the metropolitan 
        council's areawide levy under subdivision 5. 
           Sec. 12.  Minnesota Statutes 1994, section 473F.08, 
        subdivision 5, is amended to read: 
           Subd. 5.  [AREAWIDE TAX RATE.] On or before August 25 of 
        each year, the county auditor shall certify to the 
        administrative auditor that portion of the levy of each 
        governmental unit determined under subdivision subdivisions 3, 
        clause (a), 3a, and 3b.  The administrative auditor shall then 
        determine the areawide tax rate sufficient to yield an amount 
        equal to the sum of such levies from the areawide net tax 
        capacity.  On or before September 1 of each year, the 
        administrative auditor shall certify the areawide tax rate to 
        each of the county auditors. 
           Sec. 13.  Minnesota Statutes 1994, section 473F.08, 
        subdivision 7a, is amended to read: 
           Subd. 7a.  [CERTIFICATION OF VALUES; PAYMENT.] The 
        administrative auditor shall determine for each county the 
        difference between the total levy on distribution value pursuant 
        to subdivision subdivisions 3, clause (a), 3a, and 3b, within 
        the county and the total tax on contribution value pursuant to 
        subdivision 6, within the county.  On or before May 16 of each 
        year, the administrative auditor shall certify the differences 
        so determined to each county auditor.  In addition, the 
        administrative auditor shall certify to those county auditors 
        for whose county the total tax on contribution value exceeds the 
        total levy on distribution value the settlement the county is to 
        make to the other counties of the excess of the total tax on 
        contribution value over the total levy on distribution value in 
        the county.  On or before June 15 and November 15 of each year, 
        each county treasurer in a county having a total tax on 
        contribution value in excess of the total levy on distribution 
        value shall pay one-half of the excess to the other counties in 
        accordance with the administrative auditors certification. 
           Sec. 14.  [MOSQUITO CONTROL COMMISSION EMPLOYEES.] 
           Employees of the metropolitan mosquito control commission 
        covered under the terms of a collective bargaining agreement as 
        of March 1, 1995, may not be terminated by discharge, except for 
        cause, before January 1, 1999.  This act does not abrogate or 
        change any rights enjoyed by the employees of the commission 
        under the terms of a collective bargaining agreement that is in 
        effect on March 1, 1995. 
           Sec. 15.  [AMENDMENT OF GRANT APPLICATIONS.] 
           A development authority that, before the effective date of 
        this section, submitted an application for a grant under 
        Minnesota Statutes, sections 116J.551 to 116J.558, may, before 
        the next application deadline, submit to the commissioner of 
        trade and economic development an amended application based on 
        the changes made by section 1. 
           Sec. 16.  [ECONOMIC VITALITY AND HOUSING INITIATIVE.] 
           Subdivision 1.  [ESTABLISHMENT.] The Minnesota housing 
        finance agency may establish an economic vitality and housing 
        initiative to provide funds for affordable housing projects in 
        connection with local communities' economic development and 
        redevelopment efforts.  The purpose of the economic vitality and 
        housing initiative is to provide resources for affordable 
        housing in communities throughout the state necessary to ensure 
        the expansion and preservation of the economic base and 
        employment opportunities.  The agency must use the economic 
        vitality and housing initiative to leverage to the extent 
        possible private and other public funds for the purpose of this 
        section. 
           Subd. 2.  [GREATER MINNESOTA.] In Greater Minnesota, which 
        is defined for this section as the area of the state not 
        included in subdivision 3, the agency must work with groups in 
        the McKnight initiative fund regions 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 economic vitality and 
        housing funds.  The groups must include the McKnight initiative 
        funds, the regional development commissions, 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 viable projects in which area 
        employers contribute financial assistance. 
           Subd. 3.  [METROPOLITAN AREA.] In the metropolitan area, as 
        defined in Minnesota Statutes, section 473.121, subdivision 2, 
        the agency must confer with the metropolitan council to identify 
        the priorities for use of the economic vitality and housing 
        funds.  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) are located in areas accessible to public 
        transportation or served by transportation programs or along 
        arterial roadways; 
           (3) take into account the availability of job training 
        efforts in the community; and 
           (4) address local and regional objectives for the 
        development of affordable and life cycle housing and the 
        redevelopment of neighborhoods and communities. 
           Subd. 4.  [EXPIRATION.] This section expires June 30, 1997. 
           Sec. 17.  [REPEALER.] 
           Minnesota Statutes 1994, sections 504.33; 504.34; and 
        504.35, are repealed. 
           Sec. 18.  [CITATION.] 
           This act may be cited as "the metropolitan livable 
        communities act." 
           Sec. 19.  [APPLICATION.] 
           This article applies in the counties of Anoka, Carver, 
        Dakota, Hennepin, Ramsey, Scott, and Washington. 
           Sec. 20.  [EFFECTIVE DATES.] 
           This article is effective the day after final enactment.  
        Sections 6, 9, and 11 to 13 are effective for taxes levied in 
        1995, payable in 1996 and subsequent years. 
                                   ARTICLE 3
                                    HOUSING 
           Section 1.  Minnesota Statutes 1994, section 290.01, 
        subdivision 19b, is amended to read: 
           Subd. 19b.  [SUBTRACTIONS FROM FEDERAL TAXABLE INCOME.] For 
        individuals, estates, and trusts, there shall be subtracted from 
        federal taxable income: 
           (1) interest income on obligations of any authority, 
        commission, or instrumentality of the United States to the 
        extent includable in taxable income for federal income tax 
        purposes but exempt from state income tax under the laws of the 
        United States; 
           (2) if included in federal taxable income, the amount of 
        any overpayment of income tax to Minnesota or to any other 
        state, for any previous taxable year, whether the amount is 
        received as a refund or as a credit to another taxable year's 
        income tax liability; 
           (3) the amount paid to others not to exceed $650 for each 
        dependent in grades kindergarten to 6 and $1,000 for each 
        dependent in grades 7 to 12, for tuition, textbooks, and 
        transportation of each dependent in attending an elementary or 
        secondary school situated in Minnesota, North Dakota, South 
        Dakota, Iowa, or Wisconsin, wherein a resident of this state may 
        legally fulfill the state's compulsory attendance laws, which is 
        not operated for profit, and which adheres to the provisions of 
        the Civil Rights Act of 1964 and chapter 363.  As used in this 
        clause, "textbooks" includes books and other instructional 
        materials and equipment used in elementary and secondary schools 
        in teaching only those subjects legally and commonly taught in 
        public elementary and secondary schools in this state.  
        "Textbooks" does not include instructional books and materials 
        used in the teaching of religious tenets, doctrines, or worship, 
        the purpose of which is to instill such tenets, doctrines, or 
        worship, nor does it include books or materials for, or 
        transportation to, extracurricular activities including sporting 
        events, musical or dramatic events, speech activities, driver's 
        education, or similar programs.  In order to qualify for the 
        subtraction under this clause the taxpayer must elect to itemize 
        deductions under section 63(e) of the Internal Revenue Code; 
           (4) to the extent included in federal taxable income, 
        distributions from a qualified governmental pension plan, an 
        individual retirement account, simplified employee pension, or 
        qualified plan covering a self-employed person that represent a 
        return of contributions that were included in Minnesota gross 
        income in the taxable year for which the contributions were made 
        but were deducted or were not included in the computation of 
        federal adjusted gross income.  The distribution shall be 
        allocated first to return of contributions until the 
        contributions included in Minnesota gross income have been 
        exhausted.  This subtraction applies only to contributions made 
        in a taxable year prior to 1985; 
           (5) income as provided under section 290.0802; 
           (6) the amount of unrecovered accelerated cost recovery 
        system deductions allowed under subdivision 19g; 
           (7) to the extent included in federal adjusted gross 
        income, income realized on disposition of property exempt from 
        tax under section 290.491; and 
           (8) to the extent not deducted in determining federal 
        taxable income, the amount paid for health insurance of 
        self-employed individuals as determined under section 162(l) of 
        the Internal Revenue Code, except that the 25 percent limit does 
        not apply.  If the taxpayer deducted insurance payments under 
        section 213 of the Internal Revenue Code of 1986, the 
        subtraction under this clause must be reduced by the lesser of: 
           (i) the total itemized deductions allowed under section 
        63(d) of the Internal Revenue Code, less state, local, and 
        foreign income taxes deductible under section 164 of the 
        Internal Revenue Code and the standard deduction under section 
        63(c) of the Internal Revenue Code; or 
           (ii) the lesser of (A) the amount of insurance qualifying 
        as "medical care" under section 213(d) of the Internal Revenue 
        Code to the extent not deducted under section 162(1) of the 
        Internal Revenue Code or excluded from income or (B) the total 
        amount deductible for medical care under section 213(a); and 
           (9) the exemption amount allowed under section 2, 
        subdivision 3. 
           Sec. 2.  [URBAN HOMESTEADING PROGRAM.] 
           Subdivision 1.  [URBAN REVITALIZATION AND STABILIZATION 
        ZONES.] By September 1, 1995, the metropolitan council shall 
        designate one or more urban revitalization and stabilization 
        zones in the metropolitan area, as defined in section 473.121, 
        subdivision 2.  The designated zones must contain no more than 
        1,000 single family homes in total.  In designating urban 
        revitalization and stabilization zones, the council shall choose 
        areas that are in transition toward blight and poverty.  The 
        council shall use indicators that evidence increasing 
        neighborhood distress such as declining residential property 
        values, declining resident incomes, declining rates of 
        owner-occupancy, and other indicators of blight and poverty in 
        determining which areas are to be urban revitalization and 
        stabilization zones. 
           Subd. 2.  [PROGRAM ELIGIBILITY.] Any person buying and 
        occupying a home within the boundaries of an urban 
        revitalization and stabilization zone after September 1, 1995, 
        is eligible to participate in the urban homesteading program.  
        An owner may participate by filing an annual application with 
        the county assessor of the county in which the homestead is 
        located.  On or before January 15 of the second year after the 
        initial application and for a total of four subsequent years in 
        which the owner continues to meet eligibility requirements under 
        this subdivision, the assessor shall provide written 
        verification that the homestead is within an urban 
        revitalization and stabilization zone to the owner in a form and 
        manner prescribed by the commissioner of revenue.  The form 
        shall include the date on which the owner purchased the 
        property, the date on which the owner applied for the urban 
        homesteading program, and shall indicate if the property has 
        been found to be not in compliance with applicable building 
        codes, and the dates of inspections.  The assessor may charge a 
        fee to the owner, not to exceed $10 per year, for the costs of 
        processing the application.  An owner shall become ineligible 
        for the program if any of the following occurs: 
           (1) the property is sold or otherwise transferred to 
        another party; 
           (2) the property is found not to be in compliance with 
        applicable building codes, provided that at least three years 
        have passed since the owner filed for participation in the 
        program; 
           (3) the owner ceases to occupy the property; or 
           (4) any of the owners of the property are convicted of 
        violating Minnesota Statutes, sections 152.021 to 152.025 or 
        152.0261, or committing any other felony-level violation. 
           The county assessor shall annually provide to the county 
        attorney a list of the owners of property within the county who 
        are currently in the program.  The county attorney shall notify 
        the assessor if any of the owners participating in the program 
        have been convicted of violating a felony-level crime after the 
        date on which they began participation in the program.  The 
        assessor shall notify the owners, by first class mail, of the 
        loss of their eligibility of participation in the program for 
        the following year and any subsequent years.  The assessor shall 
        at the same time notify the commissioner of revenue of the 
        owners' loss of eligibility.  The owners may appeal the loss of 
        eligibility to the tax court, but the appeal is limited to the 
        factual question of whether the disqualifying event has actually 
        occurred. 
           Subd. 3.  [TAX BENEFITS.] Individuals participating in the 
        urban homesteading program shall receive an exemption from 
        Minnesota taxable income for each full tax year during which 
        eligibility under subdivision 2 is mandated, beginning in the 
        first full tax year following the filing of an application with 
        the county assessor.  Eligibility may continue for a maximum of 
        five years, provided that the individual does not become 
        ineligible for the program under subdivision 2.  The maximum 
        exemption amount shall equal $15,000 for married individuals 
        filing joint returns and surviving spouses as defined in section 
        2(a) of the Internal Revenue Code, $10,000 for unmarried 
        individuals, and $12,500 for unmarried individuals qualifying as 
        a head of household as defined in section 2(b) of the Internal 
        Revenue Code.  The maximum exemption amount shall be reduced by 
        two percent of the maximum exemption amount for each $1,000 of 
        adjusted gross income or part thereof above an income 
        threshold.  For purposes of this subdivision, adjusted gross 
        income means federal adjusted gross income as defined in section 
        62 of the Internal Revenue Code.  The income threshold shall 
        equal $60,000 for married individuals filing joint returns and 
        surviving spouses, $40,000 for unmarried individuals, and 
        $50,000 for unmarried individuals qualifying as a head of 
        household.  Participants shall claim the exemption by filing the 
        form provided under subdivision 2 with the income tax return 
        filed under chapter 290.  
           Subd. 4.  [EXPIRATION.] Initial applications for the urban 
        homesteading program shall not be accepted after July 1, 1997. 
           Subd. 5.  [INFORMATION TO POTENTIAL BUYERS.] The 
        metropolitan council shall market and promote the urban 
        homestead program to the extent feasible, but such efforts shall 
        at least include informing area realtors or realtor associations 
        about the program. 
           Subd. 6.  [REPORTS.] The metropolitan council shall make an 
        initial report to the legislature by January 1, 1998, on the 
        urban homesteading program.  The initial report shall contain 
        information on designation of zones, participation rates, and 
        current and projected future costs of providing state income tax 
        exemptions to program participants. 
           The metropolitan council shall make full reports to the 
        legislature by January 1, 2000, and January 1, 2003, on the 
        urban homesteading program.  The full reports shall include 
        information on those subjects covered by the initial report, as 
        well as information on neighborhood impacts, property values, 
        resident incomes, rates of owner-occupancy, and other indicators 
        of poverty and blight. 
           Sec. 3.  [APPLICATION.] 
           Section 2 applies in the counties of Anoka, Carver, Dakota, 
        Hennepin, Ramsey, Scott, and Washington.  
           Sec. 4.  [EFFECTIVE DATE.] 
           Section 1 is effective for tax years beginning after 
        December 31, 1995. 
           Presented to the governor May 30, 1995 
           Signed by the governor June 1, 1995, 11:40 a.m.