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                            CHAPTER 452-H.F.No. 3243 
                  An act relating to the organization and operation of 
                  state government; appropriating money for economic 
                  development and other purposes; providing for 
                  assessments against utilities; amending Minnesota 
                  Statutes 1994, sections 138.35, by adding a 
                  subdivision; 138.664, by adding a subdivision; 
                  138.763, subdivision 1; 298.22, by adding a 
                  subdivision; 469.056, subdivision 2; and 469.303; 
                  Minnesota Statutes 1995 Supplement, sections 79.561, 
                  subdivision 3; 138.01, by adding a subdivision; and 
                  473.252; Laws 1980, chapter 595, section 3, as 
                  amended; Laws 1994, chapter 573, sections 1, 
                  subdivisions 6 and 7; 4; and 5, subdivisions 1 and 2; 
                  Laws 1995, chapters 231, article 1, section 33; and 
                  224, section 5, subdivision 3; proposing coding for 
                  new law in Minnesota Statutes, chapter 116J; repealing 
                  Minnesota Statutes 1994, sections 116J.873, 
                  subdivisions 1, 2, and 4; 138.662, subdivision 5; and 
                  268.9783, subdivision 8; Minnesota Statutes 1995 
                  Supplement, section 116J.873, subdivisions 3 and 5; 
                  Laws 1988, chapter 684, article 1, section 23. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
        Section 1.  [ECONOMIC DEVELOPMENT APPROPRIATIONS.] 
           The sums 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 article, to 
        be available for the fiscal years indicated for each purpose. 
                                SUMMARY BY FUND
                                                 1996          1997
        General                           $    1,654,000 $   23,724,000
        Petroleum 
        Tank Cleanup                              47,000         93,000
        Special  
        Compensation                             -0-          2,800,000
        TOTAL                             $    1,701,000 $   26,617,000
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  1996         1997 
        Sec. 2.  TRADE AND ECONOMIC
        DEVELOPMENT                              -0-          5,105,000
        (a) Minnesota investment fund 
               -0-          4,000,000
        This appropriation is for the Minnesota 
        investment fund under Minnesota 
        Statutes, section 116J.8731. 
        Any funds previously appropriated for 
        the economic recovery grant program 
        under Minnesota Statutes, section 
        116J.873, may be spent for the 
        Minnesota investment fund program. 
        (b) Minnesota film board 
               -0-            100,000
        This appropriation is for the Minnesota 
        film board and is added to the 
        appropriation for fiscal year 1997 in 
        Laws 1995, chapter 224, section 2, 
        subdivision 4. 
        (c) Morrison county rural development 
        finance authority 
               -0-            750,000
        This appropriation is for a grant to 
        the Morrison county rural development 
        finance authority established under 
        Laws 1982, chapter 437.  The authority 
        must use the grant only for capital 
        improvements to a paper and wood 
        products manufacturer in the county 
        primarily for the purposes of facility 
        upgrading and expansion of the 
        manufacturer's capability to utilize 
        recycled wastepaper as a fiber source.  
        Minnesota Statutes, section 116J.991, 
        applies to the grant.  The commissioner 
        shall make the grant only if the 
        commissioner determines that at least 
        $500,000 of the grant will be matched 
        from other sources.  The authority or 
        any city or county within which the 
        improvements and equipment are located 
        may issue general obligation bonds in 
        accordance with Minnesota Statutes, 
        chapter 475, to finance the local 
        match, except that sections 475.53, 
        475.58, and 475.59, do not apply. 
        (d) Job Skills Partnership Board 
               -0-            250,000
        This appropriation is for the job 
        skills partnership program and is added 
        to the appropriation for fiscal year 
        1997 in Laws 1995, chapter 224, section 
        2, subdivision 2. 
        (e) Study 
               -0-              5,000
        This appropriation is for a study, in 
        consultation with the pollution control 
        agency and the department of natural 
        resources, to evaluate the 
        compatibility of metal materials 
        shredding projects and other industrial 
        uses with tourism and other 
        nonindustrial uses of the Mississippi 
        River Critical Area, which has been 
        designated an area of critical concern 
        under Minnesota Statutes, section 
        116G.15.  The commissioner of trade and 
        economic development shall report the 
        findings and recommendations of the 
        evaluation to the legislature by 
        January 1, 1997.* (The preceding text 
        beginning "(e)" was vetoed by the 
        governor.) 
        Sec. 3.  MINNESOTA TECHNOLOGY, INC.      -0-            700,000
        Of this appropriation, $575,000 is for 
        a grant to the natural resources 
        research institute. 
        Of this appropriation, $125,000 is for 
        a study of cold weather research needs 
        and opportunities.  The corporation 
        shall contract with the Minnesota cold 
        weather resource center for the study.  
        The study must address at least the 
        following: 
        (1) opportunities for research funded 
        by nonstate entities, including 
        businesses, to be conducted in 
        Minnesota; 
        (2) strategies to attract a significant 
        share of funded cold weather research 
        to Minnesota; 
        (3) types of facilities that are needed 
        to attract cold weather research 
        projects; 
        (4) recommended ownership structure and 
        lease arrangements with research 
        entities or businesses for such 
        facilities; and 
        (5) economic benefits that might accrue 
        to the people of Minnesota if a greater 
        amount of cold weather research is 
        conducted in the state. 
        The study may also include predesign or 
        architectural design of facilities for 
        cold weather research. 
        The corporation shall submit a report 
        of the study findings to the 
        legislature by January 1, 1998. 
        Sec. 4.  WORLD TRADE CENTER 
        CORPORATION                                               78,000 
        This appropriation is for the 
        corporation's December 31, 1996, debt 
        payment. 
        Sec. 5.  HOUSING FINANCE AGENCY                          550,000
        This appropriation is for transfer to 
        the housing development fund.  Of this 
        amount, $250,000 is for the community 
        rehabilitation program for the purpose 
        of acquiring, demolishing, removing, 
        rehabilitating, and reconfiguring 
        multiple-unit residential rental 
        property to reduce concentrations of 
        substandard multiple-unit rental 
        housing.  Priority shall be given to 
        projects that result in the creation of 
        a full range of housing opportunities, 
        including housing opportunities for 
        residents of the affected multiple-unit 
        rental housing, that will increase the 
        tax base and the income mix within a 
        community.  
        Of this amount, $300,000 is for the 
        family homeless prevention and 
        assistance program under Minnesota 
        Statutes, section 462A.204.  This 
        appropriation is available until 
        expended. 
        Sec. 6.  DEPARTMENT OF ECONOMIC
        SECURITY                                 810,000     16,340,000
        The amounts that may be spent from this 
        appropriation for each purpose are as 
        follows: 
        (a) Minnesota Youth Program      
               -0-          6,000,000 
        $6,000,000 is appropriated for fiscal 
        year 1997 for summer youth employment 
        programs.  Of this amount, $117,000 is 
        for YOUTHBUILD, under Minnesota 
        Statutes, sections 268.361 to 268.367, 
        and $250,000 is for the learn to earn 
        summer youth employment program 
        established under Laws 1995, chapter 
        224, sections 5 and 39, if Congress 
        appropriates at least $2,000,000 for 
        the federal title IIB, Job Training 
        Partnership Act (JTPA) 1996 Minnesota 
        summer youth program. 
        (b) Transitional housing 
               -0-            450,000
        This appropriation is for transitional 
        housing programs under Minnesota 
        Statutes, section 268.38, and is added 
        to the appropriations for fiscal year 
        1997 in Laws 1995, chapter 224, section 
        5, subdivision 3. 
        (c) Minnesota Workforce Center System  
               -0-            500,000 
        $500,000 is appropriated for fiscal 
        year 1997 to leverage federal dollars 
        in support of the establishment of a 
        public access computer system to 
        Minnesota Workforce System services. 
        (d) Employment Support Services 
               -0-            200,000 
        $200,000 is appropriated for employment 
        support services authorized by 
        Minnesota Statutes, section 268A.13.  
        Of this amount, up to $20,000 may be 
        used for administration. 
        (e) Home Energy Assistance 
               810,000        190,000 
        (1) $750,000 is available immediately 
        and until June 30, 1997, for low-income 
        home energy assistance under the 
        low-income home energy assistance block 
        grant, and is to be used and allocated 
        in the same manner as the federal money 
        is used and allocated.  
        (2) $60,000 is available immediately 
        and until June 30, 1997, for grants for 
        energy-related repairs to a home's 
        primary heat source.  
        (3) $190,000 is for the low-income home 
        weatherization program. 
        (f) Home energy assistance contingency 
                 -0-        9,000,000
        This appropriation is from the budget 
        reserve account in the general fund for 
        low income home energy assistance and 
        grants for energy related repairs to a 
        home's primary heat source contingent 
        on the governor's determination that 
        federal money allocated to Minnesota 
        under the low income energy assistance 
        block grant for federal fiscal year 
        1996 has been reduced below the amount 
        received by Minnesota under that grant 
        in federal fiscal year 1995.  The 
        amount available from this contingent 
        appropriation shall be equal to the 
        reduction as determined by the governor.
        The commissioner shall report to the 
        legislature by January 21, 1997, on any 
        expenditures of this appropriation. 
        Sec. 7.  DEPARTMENT OF 
        COMMERCE                                  47,000         93,000
        This appropriation is from the 
        petroleum tank release cleanup fund and 
        is for legal services.  This 
        appropriation is added to the 
        appropriation in Laws 1995, chapter 
        224, section 7, subdivision 5. 
        Sec. 8.  DEPARTMENT OF LABOR
        AND INDUSTRY                               -0-        2,800,000
        This appropriation is from the special 
        compensation fund for the Daedalus 
        imaging systems project.  This 
        appropriation is added to the 
        appropriation in Laws 1995, chapter 
        224, section 12, subdivision 2. 
        Sec. 9.  PUBLIC UTILITIES COMMISSION     370,000          -0-    
        This appropriation is available 
        immediately and until June 30, 1998, 
        for the costs related to the duties of 
        the commission and team of science 
        advisors under Laws 1994, chapter 573. 
        Sec. 10.  MINNESOTA HISTORICAL 
        SOCIETY                                  174,000        951,000
        (a) Compensation 
               174,000        826,000
        This appropriation is for the purposes 
        of Minnesota Statutes, section 138.01, 
        subdivision 5. 
        (b) Farmamerica 
               -0-             50,000
        This appropriation is for a grant to 
        Farmamerica.  Notwithstanding any other 
        law this grant may be used for 
        operations. 
        (c) St. Anthony heritage board 
               -0-             75,000 
        This appropriation is for a grant to 
        the St. Anthony heritage board 
        established in Minnesota Statutes, 
        section 138.763. 
        Sec. 11.  MINNESOTA HUMANITIES 
        COMMISSION                               300,000        -0-    
        This appropriation is for fiscal year 
        1996 and is for moving expenses and 
        general operation and maintenance of 
        the Minnesota humanities commission's 
        new building.  This appropriation is 
        available until June 30, 1997. 
           Sec. 12.  [TRANSFER TO WORLD TRADE CENTER.] 
           The commissioner of trade and economic development shall 
        transfer, from the appropriations to the commissioner for the 
        federal city-state leveraged finance program, $50,000 in fiscal 
        year 1996 and $50,000 in fiscal year 1997 to the World Trade 
        Center Corporation.  The World Trade Center Corporation shall 
        use the amounts so transferred for operating expenses. 
           Sec. 13.  [DEPARTMENT OF PUBLIC SAFETY; DEPUTY REGISTRAR 
        RULES.] 
           Subdivision 1.  [RULE PROHIBITED.] Notwithstanding any 
        other law, the commissioner of public safety may not adopt any 
        rule that amends or replaces, or addresses substantially the 
        same subject matter as, a rule of the department in effect on 
        January 1, 1996, that regulates the solicitation or service area 
        of deputy motor vehicle registrar offices.  
           Subd. 2.  [REMOVAL OF INVENTORY.] Any rule of the 
        commissioner of public safety that prohibits the removal of 
        inventory from a deputy motor vehicle registrar office does not 
        apply to a deputy motor vehicle registrar who (1) for at least 
        five years before the effective date of this section has 
        provided customer service and inventory outside the deputy 
        registrar's office, and (2) before the effective date of the 
        rule requests in writing an exemption from the rule.  The 
        commissioner shall grant any request under this subdivision that 
        complies with this subdivision. 
           Subd. 3.  [REPORT.] The commissioner of public safety shall 
        report to the governor and legislature by January 1, 1997, on 
        the issue of restrictions on the solicitation or service area of 
        deputy motor vehicle registrar offices.  The report must 
        consider existing and proposed restrictions on deputy motor 
        vehicle registrar solicitation or service area and evaluate each 
        on the basis of administrative efficiency and public service. 
           Sec. 14.  [VOYAGEUR RECREATION AREA.] 
           Subdivision 1.  [ESTABLISHMENT.] A recreation zone called 
        the "Voyageur recreation area" is established and consists of 
        all contiguous land in Koochiching county and that part of St. 
        Louis county lying north of county highway 23 and west of county 
        highway 24 to the Canadian border. 
           Subd. 2.  [PURPOSE.] The purpose of the Voyageur recreation 
        area is to encourage and attract public and private funds in 
        order to diversify and promote economic development and 
        recreational and educational opportunities throughout the area. 
           Sec. 15.  [BOARD CREATED.] 
           Subdivision 1.  [MEMBERSHIP.] A Voyageur recreation area 
        board is created of nine members, with representation from the 
        following groups: 
           (1) International Falls Visitors and Convention Bureau; 
           (2) Kabetogama Lake association; 
           (3) Ash River/Crane Lake resort association; 
           (4) Koochiching county; 
           (5) St. Louis county; 
           (6) city of Orr; 
           (7) city of Ranier; 
           (8) city of International Falls; and 
           (9) city of Cook.  
           Subd. 2.  [TERMS.] The membership terms, removal, and 
        filling of vacancies of board members are as provided in 
        Minnesota Statutes, section 15.0575. 
           Subd. 3.  [CHAIR; OTHER OFFICERS.] The board shall annually 
        elect a chair and other officers as necessary from its members. 
           Sec. 16.  [POWERS.] 
           Subdivision 1.  [CONTRACTS.] The board may enter into 
        contracts and grant agreements necessary to carry out its 
        responsibilities. 
           Subd. 2.  [GIFTS; GRANTS.] The board may apply for, accept, 
        and disburse gifts, grants, 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 or grants and 
        may hold, use, and dispose of its assets in accordance with the 
        terms of the gift, grant, or agreement.  Money received by the 
        board under this subdivision must be deposited in a separate 
        account. 
           Sec. 17.  [UTILITY ASSESSMENT; STRAY VOLTAGE.] 
           Subdivision 1.  [AUTHORITY.] To provide funding for the 
        appropriation in section 9 for the costs of the commission and 
        team of science advisors under Laws 1994, chapter 573, the 
        public utilities commission and the department of public service 
        shall assess a total of up to $370,000 under Minnesota Statutes, 
        section 216B.62, against public and municipal utilities 
        providing electrical service and cooperative electric 
        associations.  The assessment must be deposited in the general 
        fund.  The assessment is not subject to the limits prescribed 
        under Minnesota Statutes, section 216B.62, subdivision 3.  The 
        assessment authority under this section is in addition to the 
        assessment authority contained in Laws 1994, chapter 573, 
        section 4. 
           Subd. 2.  [PROPORTIONAL ASSESSMENT; EXPENSES AND 
        ACTIVITIES.] Each utility or association shall be assessed in 
        proportion that its gross operating revenues for the sale of 
        electric service within the state for the last calendar year 
        bears to the total of those revenues for all public and 
        municipal utilities and cooperative associations. 
           Sec. 18.  [COMMUNITY REHABILITATION PROGRAM.] 
           The requirements in Laws 1995, chapter 224, section 6, 
        relating to use of the appropriation in that section for the 
        community rehabilitation program in cities of the first class in 
        the metropolitan area apply only to the city of St. Paul.  For 
        the city of Minneapolis the requirements as to the use of that 
        appropriation are as follows: 
           (1) it must be used in areas that are defined as 
        redirection and revitalization neighborhoods by the neighborhood 
        revitalization program under Minnesota Statutes, section 
        469.1831; and 
           (2) the area must include eight blocks in any direction 
        from the neighborhood boundary.  
           Sec. 19.  [ADMINISTRATIVE COSTS; CONTAMINATION CLEAN-UP 
        GRANTS.] 
           Up to 1.5 percent of the appropriation made in Laws 1995, 
        chapter 224, section 2, subdivision 2, for grants under 
        Minnesota Statutes 1994, sections 116J.551 to 116J.558, may be 
        expended for costs of the department of trade and economic 
        development incurred in administering those grants. 
           Sec. 20.  [GROUND VOLTAGE SCIENCE ADVISORS; IMMUNITY FROM 
        SUIT, INDEMNIFICATION.] 
           (a) A member of the team of science advisors charged with 
        studying, researching, or preparing the report required by Laws 
        1994, chapter 573, or serving in a liaison capacity on behalf of 
        the team of science advisors, is not liable for the content of 
        the preliminary assessment or final report, for any action taken 
        or project conducted on behalf of researching and preparing the 
        assessment and report, or for any action taken or consequence 
        resulting from or arising out of publication and dissemination 
        of the report.  This section does not provide immunity for 
        negligence or intentional misconduct of a member or a liaison. 
           (b) If a person referred to in paragraph (a) becomes a 
        party to a civil action or other legal or administrative 
        proceeding by reason of any action referred to in paragraph (a), 
        despite the intent of paragraph (a) to hold those persons immune 
        from suit, the state shall defend, save harmless, and indemnify 
        the person for any judgment or settlement and other costs 
        incurred in defense of the action or proceeding, unless the 
        person is found liable for negligent or intentional misconduct. 
           Sec. 21.  Laws 1995, chapter 224, section 5, subdivision 3, 
        is amended to read: 
        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. 
        Of this appropriation, $250,000 is for 
        the learn to earn summer youth 
        employment demonstration program 
        established in Laws 1995, chapter 224, 
        section 39.  This appropriation is 
        available until spent. 
           Sec. 22.  Laws 1994, chapter 573, section 1, subdivision 6, 
        is amended to read: 
           Subd. 6.  [RESEARCH DEADLINE.] The research conducted under 
        this section and any recommendations by the science advisors to 
        the commission must be completed and reported or made by June 
        30, 1996 1998. 
           Sec. 23.  Laws 1994, chapter 573, section 1, subdivision 7, 
        is amended to read: 
           Subd. 7.  [EXPIRATION.] The team of science advisors 
        expires June 30, 1996 1998. 
           Sec. 24.  Laws 1994, chapter 573, section 4, is amended to 
        read: 
           Sec. 4.  [ASSESSMENT.] 
           (a) To provide funding for activities required under this 
        act, the public utilities commission and the department of 
        public service shall assess a total of up to $548,000 under 
        Minnesota Statutes, section 216B.62, against public and 
        municipal utilities providing electrical service and cooperative 
        electric associations.  The assessment must be deposited in the 
        general fund.  The assessment is not subject to the limits 
        prescribed under Minnesota Statutes, section 216B.62, 
        subdivision 3. 
           (b) Each utility or association shall be assessed in 
        proportion that its gross operating revenues for the sale of 
        electric service within the state for the last calendar year 
        bears to the total of those revenues for all public and 
        municipal utilities and cooperative associations.  
           (c) Paragraphs (a) and (b) expire June 30, 1998.  
           Sec. 25.  Laws 1994, chapter 573, section 5, subdivision 1, 
        is amended to read: 
           Subdivision 1.  [PUBLIC UTILITIES COMMISSION; STUDY COSTS.] 
        $300,000 is appropriated from the general fund to the public 
        utilities commission. 
           $75,000 of this appropriation is for administrative 
        expenses of the commission under sections 1 and 2. 
           $225,000 of this appropriation is for expenses of the team 
        of scientific advisors and the commission liaison. 
           This appropriation remains available until June 30, 1996 
        1998.  
           Sec. 26.  Laws 1994, chapter 573, section 5, subdivision 2, 
        is amended to read: 
           Subd. 2.  [PUBLIC UTILITIES COMMISSION; RESEARCH PROJECTS 
        STUDY COSTS.] $150,000, or so much of this amount as may be 
        needed, is appropriated from the general fund to the public 
        utilities commission to 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 does not cancel but is available until June 30, 
        1998. 
           Sec. 27.  Laws 1995, chapter 231, article 1, section 33, is 
        amended to read: 
           Sec. 33.  [APPROPRIATION.] 
           The $900,000 is appropriated from the special compensation 
        fund for the biennium ending June 30, 1997, to the department of 
        commerce shall be used for the purposes of rate regulation of 
        commercial self-insurance groups under Minnesota Statutes, 
        sections 79A.19 to 79A.32 and workers' compensation rate 
        regulation under Minnesota Statutes, sections 79.50 to 79.561.  
        The complement of the department of commerce is increased by 13 
        positions for the purposes of rate regulation. 
           Sec. 28.  Minnesota Statutes 1995 Supplement, section 
        79.561, subdivision 3, is amended to read: 
           Subd. 3.  [CONSULTANTS AND COSTS.] The commissioner may 
        retain consultants, including a consulting actuary or other 
        experts, that the commissioner determines necessary for purposes 
        of this chapter.  The salary limit set by section 43A.17 does 
        not apply to a consulting actuary retained under this 
        subdivision.  A consulting actuary shall be a fellow in the 
        casualty actuarial society and shall have demonstrated 
        experience in workers' compensation insurance ratemaking.  Any 
        individual not so qualified shall not render an opinion or 
        testify on actuarial aspects of a filing, including but not 
        limited to, data quality, loss development, and trending.  The 
        costs incurred in commissioner may determine the costs necessary 
        for implementing and conducting a contested case hearing under 
        subdivision 2, including, but not limited to, retaining any 
        consulting actuaries and experts, and those costs shall be 
        reimbursed by the special compensation fund. 
           Sec. 29.  [116J.8731] [MINNESOTA INVESTMENT FUND.] 
           Subdivision 1.  [PURPOSE.] The Minnesota investment fund is 
        created to provide financial assistance, through partnership 
        with communities, for the creation of new employment or to 
        maintain existing employment, and for business start-up, 
        expansions, and retention.  It shall accomplish these goals by 
        the following means: 
           (1) creation or retention of permanent private-sector jobs 
        in order to create above-average economic growth consistent with 
        environmental protection; 
           (2) stimulation or leverage of private investment to ensure 
        economic renewal and competitiveness; 
           (3) increasing the local tax base, based on demonstrated 
        measurable outcomes, to guarantee a diversified industry mix; 
           (4) improvement of employment and economic opportunity for 
        citizens in the region to create a reasonable standard of 
        living, consistent with federal and state guidelines on low- to 
        moderate-income persons; and 
           (5) stimulation of productivity growth through improved 
        manufacturing or new technologies, including cold weather 
        testing.  
           Subd. 2.  [ADMINISTRATION.] The commissioner shall 
        administer the fund as part of the small cities development 
        block grant program.  Funds shall be made available to local 
        communities and recognized Indian tribal governments in 
        accordance with the rules adopted for economic development 
        grants in the small cities community development block grant 
        program, except that all units of general purpose local 
        government are eligible applicants for Minnesota investment 
        funds.  A home rule charter or statutory city, county, or town 
        may loan or grant money under this section to a regional 
        development commission to provide the local match required for 
        capitalization of a regional revolving loan fund.  
           Subd. 3.  [ELIGIBLE EXPENDITURES.] The money appropriated 
        for this section may be used to provide grants for 
        infrastructure, loans, loan guarantees, interest buy-downs, and 
        other forms of participation with private sources of financing, 
        provided that a loan to a private enterprise must be for a 
        principal amount not to exceed one-half of the cost of the 
        project for which financing is sought. 
           Subd. 4.  [ELIGIBLE PROJECTS.] Assistance must be evaluated 
        on the existence of the following conditions: 
           (1) creation of new jobs or retention of existing jobs; 
           (2) increase in the tax base; 
           (3) the project can demonstrate that investment of public 
        dollars induces private funds; 
           (4) the project can demonstrate an excessive public 
        infrastructure or improvement cost beyond the means of the 
        affected community and private participants in the project; 
           (5) the project provides higher wage levels to the 
        community or will add value to current workforce skills; 
           (6) whether assistance is necessary to retain existing 
        business; and 
           (7) whether assistance is necessary to attract out-of-state 
        business.  
           A grant or loan cannot be made based solely on a finding 
        that the conditions in clause (6) or (7) exist.  A finding must 
        be made that a condition in clause (1), (2), (3), (4), or (5) 
        also exists. 
           Applications recommended for funding shall be submitted to 
        the commissioner. 
           Subd. 5.  [GRANT LIMITS.] A Minnesota investment fund grant 
        may not be approved for an amount in excess of $500,000. This 
        limit covers all money paid to complete the same project, 
        whether paid to one or more grant recipients and whether paid in 
        one or more fiscal years.  The portion of a Minnesota investment 
        fund grant that exceeds $100,000 must be repaid to the state 
        when it is repaid to the local community or recognized Indian 
        tribal government by the person or entity to which it was loaned 
        by the local community or Indian tribal government.  Money 
        repaid to the state must be credited to the general fund.  A 
        grant or loan may not be made to a person or entity for the 
        operation or expansion of a casino or a store which is used 
        solely or principally for retail sales.  Persons or entities 
        receiving grants or loans must pay each employee total 
        compensation, including benefits not mandated by law, that on an 
        annualized basis is equal to at least 110 percent of the federal 
        poverty level for a family of four. 
           Subd. 6.  [SPORTS FACILITY.] A Minnesota investment fund 
        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. 
           Subd. 7.  [CONTRACTUAL OBLIGATION.] A business receiving 
        Minnesota investment fund grants must demonstrate why the grant 
        is necessary for a project and enter into an agreement with the 
        local grantor.  The agreement, among other things, must obligate 
        the recipient to pay the minimum compensation set by this 
        section and meet job creation goals.  A recipient that breaches 
        the agreement must repay the grant directly to the commissioner. 
        Repayments under this subdivision must be deposited in the 
        general fund. 
           Sec. 30.  Minnesota Statutes 1995 Supplement, section 
        138.01, is amended by adding a subdivision to read: 
           Subd. 5.  The Minnesota historical society shall receive 
        specific appropriations each biennium to carry out the purposes 
        of subdivision 2.  The appropriation must be sufficient to pay 
        for salary and benefit related increases as determined by the 
        commissioner of employee relations in the commissioner's plan in 
        accordance with section 43A.18, subdivision 2, and the 
        legislature. 
           Sec. 31.  Minnesota Statutes 1994, section 138.35, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [EMPLOYMENT OF PERSONNEL.] The state 
        archaeologist may employ personnel to assist in carrying out the 
        state archaeologist's duties, and may spend state appropriations 
        to compensate such personnel. 
           Sec. 32.  Minnesota Statutes 1994, section 138.664, is 
        amended by adding a subdivision to read: 
           Subd. 13a.  Burbank Livingston Griggs House; Ramsey county. 
           Sec. 33.  Minnesota Statutes 1994, section 138.763, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MEMBERSHIP.] There is a St. Anthony Falls 
        heritage board consisting of 19 22 members with the director of 
        the Minnesota historical society as chair.  The members include 
        the mayor,; the chair of the Hennepin county board of 
        commissioners or the chair's designee,; the president of the 
        Minneapolis park and recreation board or the president's 
        designee,; the superintendent of the park board,; two members 
        each from the house of representatives appointed by the speaker, 
        the senate appointed by the rules committee, the city council, 
        the Hennepin county board, and the park board, and; one member 
        each from the preservation commission, the preservation office, 
        Hennepin county historical society, and the society; one person 
        appointed by the park board; and two persons appointed by the 
        chair of the board. 
           Sec. 34.  Minnesota Statutes 1994, section 298.22, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [EQUITY PARTICIPATION.] The board may acquire an 
        equity interest in any project for which it provides funding. 
           Sec. 35.  Minnesota Statutes 1994, section 469.056, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CONTRACTS.] A port authority may contract to 
        erect, repair, maintain or operate docks, warehouses, terminals, 
        elevators, or other structures on or in connection with property 
        it owns or controls.  The authority may contract or arrange with 
        the federal government, or any of its departments, with persons, 
        public corporations, the state, or any of its political 
        subdivisions, commissions, or agencies, for separate or joint 
        action, on any matter related to using the authority's powers or 
        doing its duties.  The authority may contract to purchase and 
        sell real and personal property.  An obligation or expense must 
        not be incurred unless existing appropriations together with the 
        reasonably expected revenue of the port authority from other 
        sources are sufficient to discharge the obligation or pay the 
        expense when due.  The state and its municipal subdivisions are 
        not liable on the obligations.  Notwithstanding section 16A.695, 
        for leases or management contracts entered into with respect to 
        property acquired or bettered with the proceeds of state general 
        obligation bonds, (1) a seaway port authority may meet its 
        obligations and expenses of operating and reinvest in capital 
        improvements by retaining revenues received under the leases or 
        management contracts and is not required to pay lease or 
        management contract revenues to the commissioner of finance; and 
        (2) the lease or management contract entered into by a seaway 
        port authority must not be canceled or terminated as a result of 
        changes or termination by the state in the governmental program 
        of the seaway port authority unless compensation is paid as 
        provided by law. 
           Sec. 36.  Minnesota Statutes 1994, section 469.303, is 
        amended to read: 
           469.303 [ELIGIBILITY REQUIREMENTS.] 
           An area within the city is eligible for designation as an 
        enterprise zone if the area is (1) designated as includes census 
        tracts eligible for a proposed federal empowerment zone or 
        enterprise community as defined by the city in an application to 
        the United States Department of Housing and Urban Development 
        under Public Law Number 103-66, provided the city can 
        demonstrate that it can meet the notwithstanding the maximum 
        zone population standard under the federal empowerment zone 
        program for cities with a population under 500,000 or (2) an 
        area within a city of the second class that is designated as an 
        economically depressed area by the United States Department of 
        Commerce. 
           Sec. 37.  Minnesota Statutes 1995 Supplement, section 
        473.252, is amended to read: 
           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. 1a.  [DEVELOPMENT AUTHORITY.] For the purpose of this 
        section, "development authority" means a statutory or home rule 
        charter city, housing and redevelopment authority, economic 
        development authority, or a port authority. 
           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 or 
        development authorities for the cleanup of polluted land in the 
        metropolitan area.  A grant to a metropolitan county or a 
        development authority 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. 38.  Laws 1980, chapter 595, section 3, as amended by 
        Laws 1985, chapter 194, section 29; Laws 1988, chapter 572, 
        section 2; and Laws 1988, chapter 594, sections 1 to 4, is 
        amended by adding a subdivision to read: 
           Subd. 13.  [ECONOMIC DEVELOPMENT.] When the agency 
        exercises its powers for industrial development or to establish 
        industrial development districts for purposes under Minnesota 
        Statutes, sections 469.048 to 469.068, the term "industrial," 
        when used in relation to industrial development purposes, 
        includes "economic" and "economic development." 
           Sec. 39.  [NEW TECHNOLOGY TRAINING.] 
           The house of representatives may spend funds carried 
        forward from its appropriations for the biennium ending June 30, 
        1995, for costs associated with training for new technology. 
           Sec. 40.  [REPEALER.] 
           (a) Minnesota Statutes 1994, sections 116J.873, 
        subdivisions 1, 2, and 4; and 138.662, subdivision 5; and 
        Minnesota Statutes 1995 Supplement, section 116J.873, 
        subdivisions 3 and 5, are repealed. 
           (b) Minnesota Statutes 1994, section 268.9783, subdivision 
        8; and Laws 1988, chapter 684, article 1, section 23, are 
        repealed.  
           Sec. 41.  [EFFECTIVE DATE.] 
           Sections 12 to 28, 30, 31, and 33 to 39; section 40, 
        paragraph (b); and all provisions making appropriations for 
        fiscal year 1996, are effective the day following final 
        enactment.  Section 29; and section 40, paragraph (a), are 
        effective July 1, 1996. 
           Presented to the governor April 4, 1996 
           Signed by the governor April 12, 1996, 11:05 a.m.