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                            CHAPTER 369-H.F.No. 2256 
                  An act relating to economic development; changing 
                  classification of the director of tourism; modifying 
                  provisions relating to business finance programs and 
                  the competitiveness task force; abolishing the main 
                  street program and the rural development board; 
                  transferring authority for certain programs; amending 
                  Minnesota Statutes 1994, sections 16B.06, subdivision 
                  2; 116J.01, subdivisions 4 and 5; 116J.581, 
                  subdivisions 2 and 4; and 116J.980, subdivision 1; 
                  Minnesota Statutes 1995 Supplement, sections 116J.58, 
                  subdivision 1; 116J.581, subdivision 1; 116J.655; 
                  116N.03, subdivision 2; and 116N.06; repealing 
                  Minnesota Statutes 1994, sections 116J.981; 116N.01, 
                  subdivision 2; 116N.02, subdivisions 2, 3, 4, and 5; 
                  116N.04; and 116N.07; Minnesota Statutes 1995 
                  Supplement, section 116N.02, subdivision 1; Minnesota 
                  Rules, part 4370.0010, subpart 3. 
           Section 1.  Minnesota Statutes 1994, section 16B.06, 
        subdivision 2, is amended to read: 
           Subd. 2.  [VALIDITY OF STATE CONTRACTS.] (a) A state 
        contract or lease is not valid and the state is not bound by it 
           (1) it has first been executed by the head of the agency or 
        a delegate which is a party to the contract; 
           (2) it has been approved by the commissioner or a delegate, 
        under this section; 
           (3) it has been approved by the attorney general or a 
        delegate as to form and execution; and 
           (4) the account system shows an allotment or encumbrance 
        balance for the full amount of the contract liability.  
           (b) Paragraph (a), clause (2), does not apply to contracts 
        between state agencies or, contracts awarding grants, or 
        contracts making loans by the department of trade and economic 
           (c) The head of the agency may delegate the execution of 
        specific contracts or specific types of contracts to a 
        designated subordinate within the agency if the delegation has 
        been approved by the commissioner of administration and filed 
        with the secretary of state.  The fully executed copy of every 
        contract or lease must be kept on file at the contracting agency.
           Sec. 2.  Minnesota Statutes 1994, section 116J.01, 
        subdivision 4, is amended to read: 
        TOURISM.] The director of the office of tourism shall be 
        appointed by the governor.  The director is under the 
        supervision of the commissioner and serves in the unclassified 
           Sec. 3.  Minnesota Statutes 1994, section 116J.01, 
        subdivision 5, is amended to read: 
           Subd. 5.  [DEPARTMENTAL ORGANIZATION.] (a) The commissioner 
        shall organize the department as provided in section 15.06.  
           (b) The commissioner may establish divisions and offices 
        within the department.  The commissioner may employ three deputy 
        commissioners in the unclassified service.  One deputy must 
        direct the Minnesota trade office and must be experienced and 
        knowledgeable in matters of international trade.  One deputy 
        must be the director of the office of tourism.  
           (c) The commissioner shall: 
           (1) employ assistants and other officers, employees, and 
        agents that the commissioner considers necessary to discharge 
        the functions of the commissioner's office; 
           (2) define the duties of the officers, employees, and 
        agents, and delegate to them any of the commissioner's powers, 
        duties, and responsibilities, subject to the commissioner's 
        control and under conditions prescribed by the commissioner.  
           Sec. 4.  Minnesota Statutes 1995 Supplement, section 
        116J.58, subdivision 1, is amended to read: 
           Subdivision 1.  [ENUMERATION.] The commissioner shall: 
           (1) investigate, study, and undertake ways and means of 
        promoting and encouraging the prosperous development and 
        protection of the legitimate interest and welfare of Minnesota 
        business, industry, and commerce, within and outside the state; 
           (2) locate markets for manufacturers and processors and aid 
        merchants in locating and contacting markets; 
           (3) investigate and study conditions affecting Minnesota 
        business, industry, and commerce and collect and disseminate 
        information, and engage in technical studies, scientific 
        investigations, and statistical research and educational 
        activities necessary or useful for the proper execution of the 
        powers and duties of the commissioner in promoting and 
        developing Minnesota business, industry, and commerce, both 
        within and outside the state; 
           (4) plan and develop an effective business information 
        service both for the direct assistance of business and industry 
        of the state and for the encouragement of business and industry 
        outside the state to use economic facilities within the state; 
           (5) compile, collect, and develop periodically, or 
        otherwise make available, information relating to current 
        business conditions; 
           (6) conduct or encourage research designed to further new 
        and more extensive uses of the natural and other resources of 
        the state and designed to develop new products and industrial 
           (7) study trends and developments in the industries of the 
        state and analyze the reasons underlying the trends; study costs 
        and other factors affecting successful operation of businesses 
        within the state; and make recommendations regarding 
        circumstances promoting or hampering business and industrial 
           (8) serve as a clearing house for business and industrial 
        problems of the state; and advise small business enterprises 
        regarding improved methods of accounting and bookkeeping; 
           (9) cooperate with interstate commissions engaged in 
        formulating and promoting the adoption of interstate compacts 
        and agreements helpful to business, industry, and commerce; 
           (10) cooperate with other state departments, and with 
        boards, commissions, and other state agencies, in the 
        preparation and coordination of plans and policies for the 
        development of the state and for the use and conservation of its 
        resources insofar as the use, conservation, and development may 
        be appropriately directed or influenced by a state agency; 
           (11) assemble and coordinate information relative to the 
        status, scope, cost, and employment possibilities and the 
        availability of materials, equipment, and labor in connection 
        with public works projects, state, county, and municipal; 
        recommend limitations on the public works; gather current 
        progress information with reference to public and private works 
        projects of the state and its political subdivisions with 
        reference to conditions of employment; inquire into and report 
        to the governor, when requested by the governor, with respect to 
        any program of public state improvements and the financing 
        thereof; and request and obtain information from other state 
        departments or agencies as may be needed properly to report 
           (12) study changes in population and current trends and 
        prepare plans and suggest policies for the development and 
        conservation of the resources of the state; 
           (13) confer and cooperate with the executive, legislative, 
        or planning authorities of the United States and neighboring 
        states and provinces and of the counties and municipalities of 
        such neighboring states, for the purpose of bringing about a 
        coordination between the development of such neighboring 
        provinces, states, counties, and municipalities and the 
        development of this state; 
           (14) generally, gather, compile, and make available 
        statistical information relating to business, trade, commerce, 
        industry, transportation, communication, natural resources, and 
        other like subjects in this state, with authority to call upon 
        other departments of the state for statistical data and results 
        obtained by them and to arrange and compile that statistical 
        information in a manner that seems wise; 
           (15) prepare an annual report to the legislature estimating 
        and, to the extent possible, describing the number of Minnesota 
        companies which have left the state or moved to surrounding 
        states or other countries.  The report should include an 
        estimate of the number of jobs lost by these moves, an estimate 
        of the total employment payroll, average hourly wage of those 
        jobs lost and those created in the new location, and to the 
        extent possible, the reasons for each company moving out of 
        state, if known; 
           (16) publish documents and annually convene regional 
        meetings to inform businesses, local government units, 
        assistance providers, and other interested persons of changes in 
        state and federal law related to economic development; 
           (17) annually convene conferences of providers of economic 
        development related financial and technical assistance for the 
        purposes of exchanging information on economic development 
        assistance, coordinating economic development activities, and 
        formulating economic development strategies; 
           (18) provide business with information on the economic 
        benefits of energy conservation and on the availability of 
        energy conservation assistance; and 
           (19) prepare, as part of biennial budget process with an 
        annual interim summary for the legislature, performance measures 
        for each business loan or grant program within the jurisdiction 
        of the commissioner.  Measures would include source of funds for 
        each program, numbers of jobs proposed or promised at the time 
        of application and the number of jobs created, estimated number 
        of jobs retained, the average salary and benefits for the jobs 
        resulting from the program, and the number of projects approved. 
           Sec. 5.  Minnesota Statutes 1995 Supplement, section 
        116J.581, subdivision 1, is amended to read: 
           Subdivision 1.  [CREATION.] There is created a permanent 
        task force on the state's economic future and competitiveness.  
        The task force is composed of the governor (ex officio); the 
        commissioners of the departments of economic security, trade and 
        economic development, commerce, and labor and industry; the 
        chancellor of the board of trustees of the Minnesota state 
        colleges and universities; the president of the largest 
        statewide Minnesota organized labor organization as measured by 
        the number of its members in affiliated labor organizations; the 
        deans of the business schools at the University of Minnesota and 
        St. Thomas University and the Hubert H. Humphrey Institute of 
        Public Affairs; the science and technology advisor to the 
        governor; six representatives from private sector businesses 
        appointed by the governor, two from companies with more than 
        1,000 employees, two from companies with 101 to 1,000 employees, 
        and two from companies with less than 100 employees; two members 
        representing environmental interests; and designees of the 
        majority leader of the senate and the minority leader of the 
        house of representatives.  The chair of the task force shall be 
        elected by the members from the private sector members.  Terms 
        of private sector members shall be for a minimum of three years 
        and a maximum of five years. 
           Sec. 6.  Minnesota Statutes 1994, section 116J.581, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DUTIES.] The task force shall: 
           (1) monitor implementation of the state's economic 
        blueprint, particularly as it pertains to the long-range 
        competitiveness of Minnesota's companies, published by the 
        department of trade and economic development in November 1992; 
           (2) issue long-range policy recommendations for the state 
        to achieve its long-range economic goals; 
           (3) hold periodic forums and symposiums as appropriate, 
        involving renowned experts in areas pertaining to economic 
        development and job creation; 
           (4) meet on call of the chair to receive reports and to 
        provide ongoing counsel and advice to the legislature and the 
        commissioner of trade and economic development; 
           (5) make recommendations as to modification or numeric 
        changes in the economic blueprint to maintain its relevance and 
           (6) ensure that goals, proposals, and recommendations 
        should be quantified to the extent possible; 
           (7) utilize modern modeling tools to determine the 
        long-range competitive impact of past, present, and proposed 
        legislative action; and 
           (8) scrutinize all legislation that can impact the state's 
        economic future or the competitiveness of Minnesota enterprise. 
           Sec. 7.  Minnesota Statutes 1994, section 116J.581, 
        subdivision 4, is amended to read: 
           Subd. 4.  [CONTINUATION SUNSET OF TASK FORCE.] The task 
        force shall not expire but shall continue until terminated by a 
        law specifically terminating it on January 1, 1999. 
           Sec. 8.  Minnesota Statutes 1995 Supplement, section 
        116J.655, is amended to read: 
           The commissioner of trade and economic development shall 
        establish a youth entrepreneurship education program to improve 
        the academic and entrepreneurial skills of students and aid in 
        their transition from school to business creation.  The program 
        shall strengthen local economies by creating jobs that enable 
        citizens to remain in their communities and to foster 
        cooperation among educators, economic development professionals, 
        business leaders, and representatives of labor.  Assistance 
        under this section shall be available to new or existing 
        student-operated or school-operated businesses that have an 
        educational purpose, and provide service or products for 
        customers or clients who do not attend or work at the sponsoring 
        school.  The commissioner may require an equal local match for 
        assistance under this section up to the maximum grant amount of 
           Sec. 9.  Minnesota Statutes 1994, section 116J.980, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DUTIES.] The department of trade and 
        economic development shall:  
           (1) be responsible for administering all state community 
        development and assistance programs, including the economic 
        recovery account, the outdoor recreation grant program, the 
        rural development board programs, the Minnesota public 
        facilities authority loan and grant programs, and the enterprise 
        zone program; 
           (2) be responsible for state administration of federally 
        funded community development and assistance programs, including 
        the small cities development grant program and land and water 
        conservation program; 
           (3) provide technical assistance to rural communities for 
        community development in cooperation with regional development 
           (4) coordinate the development and review of state rural 
        development policies; and 
           (5) provide staff and consultant services to the rural 
        development board; and 
           (6) be responsible for coordinating community assistance 
        and development programs in cooperation with regional 
        development commissions. 
           Sec. 10.  Minnesota Statutes 1995 Supplement, section 
        116N.03, subdivision 2, is amended to read: 
           Subd. 2.  [GIFTS; GRANTS.] The board commissioner 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 commissioner 
        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 commissioner to carry out 
        its duties under this section.  
           Sec. 11.  Minnesota Statutes 1995 Supplement, section 
        116N.06, is amended to read: 
           116N.06 [RURAL INVESTMENT GUIDE.] 
           The board, after appropriate study and public hearings as 
        necessary, commissioner shall adopt a comprehensive state rural 
        investment guide consisting of policy statements, objectives, 
        standards, and program criteria to guide state agencies in 
        establishing and implementing programs relating to rural 
        development.  The guide must recognize the community and 
        economic needs, the food and agricultural policy, and the 
        resources of rural Minnesota, and provide a plan to coordinate 
        and allocate public and private resources to the rural areas of 
        the state.  The board commissioner shall submit the guide to the 
        appropriate committees of the legislature.  The guide shall be 
        prepared every fourth year. 
           Sec. 12.  [INSTRUCTION TO REVISOR.] 
           The revisor shall: 
           (1) recodify Minnesota Statutes 1994, section 116J.655, as 
        Minnesota Statutes, section 121.72; 
           (2) recodify Minnesota Statutes, sections 116N.01, 
        subdivisions 1, 3, 4, 5, 6, 7, and 8; 116N.02, subdivision 6; 
        116N.03, subdivision 1; 116N.06; and 116N.08, in Minnesota 
        Statutes, chapter 116J, making conforming changes as necessary, 
        correct references to those sections in Minnesota Statutes and 
        Minnesota Rules, and change "board" where it means the rural 
        development board to "commissioner" in those sections; 
           (3) change "rural development board" and "board" where it 
        means the rural development board to "commissioner" in Minnesota 
        Rules, chapter 4370.  
           Sec. 13.  [REPEALER.] 
           Minnesota Statutes 1994, sections 116J.981; 116N.01, 
        subdivision 2; 116N.02, subdivisions 2, 3, 4, and 5; 116N.04; 
        and 116N.07; Minnesota Statutes 1995 Supplement, section 
        116N.02, subdivision 1; and Minnesota Rules, part 4370.0010, 
        subpart 3, are repealed. 
           Presented to the governor March 23, 1996 
           Signed by the governor March 26, 1996, 10:17 a.m.

Official Publication of the State of Minnesota
Revisor of Statutes