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Minnesota Legislature

Office of the Revisor of Statutes

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

                              CHAPTER 1-S.F.No. 2 
                  An act relating to the operation of state government; 
                  creating the Minnesota family assets for independence 
                  pilot project; appropriating money for economic 
                  development, housing, family and early childhood, and 
                  related programs; modifying community action program 
                  provisions; modifying various programs and projects; 
                  providing for a grant limit exception; amending 
                  Minnesota Statutes 1996, sections 16B.06, subdivision 
                  2; 115C.09, by adding a subdivision; 268.52, 
                  subdivisions 1 and 2; 268.54, subdivision 2; 383B.79, 
                  subdivision 1, and by adding a subdivision; and 
                  469.303; Minnesota Statutes 1997 Supplement, sections 
                  115C.09, subdivision 3f; 116J.421, subdivision 1, and 
                  by adding a subdivision; 179A.03, subdivision 7; and 
                  268.53, subdivision 5; Laws 1997, chapters 162, 
                  article 4, section 63, subdivision 2; 248, section 47, 
                  subdivision 1. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
                                   ARTICLE 1 
                           COMMUNITY ACTION PROGRAMS 
           Section 1.  Minnesota Statutes 1996, section 268.52, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AUTHORIZATION.] The commissioner of 
        economic security children, families, and learning may provide 
        financial assistance for community action agencies, Indian 
        reservations and the statewide migrant seasonal farmworker 
        organization known as the Minnesota migrant council, and migrant 
        and seasonal farmworker organizations to carry out community 
        action programs as described in section 268.54 in accordance 
        with the omnibus reconciliation act of 1981, Public Law Number 
        97-35, as amended in 1984, Public Law Number 98-558, state law, 
        and federal law and regulation. 
           Sec. 2.  Minnesota Statutes 1996, section 268.52, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ALLOCATION OF MONEY.] (a) State money 
        appropriated and community service block grant money allotted to 
        the state and all money transferred to the community service 
        block grant from other block grants shall be allocated annually 
        to community action agencies and Indian reservation governments 
        under clauses (b) and (c), and to the Minnesota migrant council 
        migrant and seasonal farmworker organizations under clause (d). 
           (b) The available annual money will provide base funding to 
        all community action agencies and the Indian reservations.  Base 
        funding amounts per agency are as follows:  for agencies with 
        low income populations up to 3,999, $25,000; 4,000 to 23,999, 
        $50,000; and 24,000 or more, $100,000. 
           (c) All remaining money of the annual money available after 
        the base funding has been determined must be allocated to each 
        agency and reservation in proportion to the size of the poverty 
        level population in the agency's service area compared to the 
        size of the poverty level population in the state.  
           (d) Allocation of money to the Minnesota migrant council 
        migrant and seasonal farmworker organizations must not exceed 
        three percent of the total annual money available.  Base funding 
        allocations must be made for all community action agencies and 
        Indian reservations that received money under this subdivision, 
        in fiscal year 1984, and for community action agencies 
        designated under this section with a service area population of 
        35,000 or greater. 
           Sec. 3.  Minnesota Statutes 1997 Supplement, section 
        268.53, subdivision 5, is amended to read: 
           Subd. 5.  [FUNCTIONS; POWERS.] A community action agency 
        shall:  
           (a) Plan systematically for an effective community action 
        program; develop information as to the problems and causes of 
        poverty in the community; determine how much and how effectively 
        assistance is being provided to deal with those problems and 
        causes; and establish priorities among projects, activities and 
        areas as needed for the best and most efficient use of 
        resources; 
           (b) Encourage agencies engaged in activities related to the 
        community action program to plan for, secure, and administer 
        assistance available under section 268.52 or from other sources 
        on a common or cooperative basis; provide planning or technical 
        assistance to those agencies; and generally, in cooperation with 
        community agencies and officials, undertake actions to improve 
        existing efforts to reduce poverty, such as improving day-to-day 
        communications, closing service gaps, focusing resources on the 
        most needy, and providing additional opportunities to low-income 
        individuals for regular employment or participation in the 
        programs or activities for which those community agencies and 
        officials are responsible; 
           (c) Initiate and sponsor projects responsive to needs of 
        the poor which are not otherwise being met, with particular 
        emphasis on providing central or common services that can be 
        drawn upon by a variety of related programs, developing new 
        approaches or new types of services that can be incorporated 
        into other programs, and filling gaps pending the expansion or 
        modification of those programs; 
           (d) Establish effective procedures by which the poor and 
        area residents concerned will be enabled to influence the 
        character of programs affecting their interests, provide for 
        their regular participation in the implementation of those 
        programs, and provide technical and other support needed to 
        enable the poor and neighborhood groups to secure on their own 
        behalf available assistance from public and private sources; 
           (e) Join with and encourage business, labor and other 
        private groups and organizations to undertake, together with 
        public officials and agencies, activities in support of the 
        community action program which will result in the additional use 
        of private resources and capabilities, with a view to developing 
        new employment opportunities, stimulating investment that will 
        have a measurable impact on reducing poverty among residents of 
        areas of concentrated poverty, and providing methods by which 
        residents of those areas can work with private groups, firms, 
        and institutions in seeking solutions to problems of common 
        concern.  
           Community action agencies, the Minnesota migrant council 
        migrant and seasonal farmworker organizations, and the Indian 
        reservations, may enter into cooperative purchasing agreements 
        and self-insurance programs with local units of government.  
        Nothing in this section expands or limits the current private or 
        public nature of a local community action agency. 
           (f) Adopt policies that require the agencies to refer area 
        residents and community action program constituents to education 
        programs that increase literacy, improve parenting skills, and 
        address the needs of children from families in poverty.  These 
        programs include, but are not limited to, early childhood family 
        education programs, adult basic education programs, and other 
        life-long learning opportunities.  The agencies and agency 
        programs, including Head Start, shall collaborate with child 
        care and other early childhood education programs to ensure 
        smooth transitions to work for parents. 
           Sec. 4.  Minnesota Statutes 1996, section 268.54, 
        subdivision 2, is amended to read: 
           Subd. 2.  [COMPONENTS.] The components of a community 
        action program shall be designed to assist participants, 
        including homeless individuals and families, migrant and 
        seasonal farmworkers, and the elderly poor to achieve increased 
        self-sufficiency and greater participation in the affairs of the 
        community by providing services and programs not sufficiently 
        provided in the community by any governmental unit, any public 
        institution, or any other publicly funded agency or 
        corporation.  Community action agencies, governmental units, 
        public institutions or other publicly funded agencies or 
        corporations shall consult on whether or not a program or 
        service is sufficiently provided in the community. 
           Sec. 5.  Laws 1997, chapter 248, section 47, subdivision 1, 
        is amended to read: 
           Subdivision 1.  [INTERIM AGE GROUPINGS; FAMILY DAY CARE.] 
        Notwithstanding Minnesota Rules, part 9502.0315, subparts 22, 28 
        and 30, until June 30, 1998 1999, for the purposes of family day 
        care and group family day care licensure the following 
        definitions apply: 
           (1) "Preschooler" means a child who is at least 24 months 
        old up to the age of being eligible to enter kindergarten within 
        the next four months. 
           (2) "Toddler" means a child who is at least 12 months old 
        but less than 24 months old, except that for purposes of 
        specialized infant and toddler family and group family day care, 
        "toddler" means a child who is at least 12 months old but less 
        than 30 months old. 
           (3) "School age" means a child who is at least of 
        sufficient age to have attended the first day of kindergarten, 
        or is eligible to enter kindergarten within the next four 
        months, but is younger than 11 years of age. 
           Sec. 6.  [MINNESOTA FAMILY ASSETS FOR INDEPENDENCE PILOT 
        PROJECT ESTABLISHMENT.] 
           The Minnesota family assets for independence initiative is 
        established to provide incentives for low-income families to 
        accrue assets for education, housing, and economic development 
        purposes. 
           Sec. 7.  [DEFINITIONS.] 
           Subdivision 1.  [APPLICATION.] The definitions in this 
        section apply to sections 6 to 12. 
           Subd. 2.  [FAMILY ASSET ACCOUNT.] "Family asset account" 
        means a savings account opened by a household participating in 
        the Minnesota family assets for independence initiative. 
           Subd. 3.  [COMMISSIONER.] "Commissioner" means the 
        commissioner of children, families, and learning. 
           Subd. 4.  [FIDUCIARY ORGANIZATION.] "Fiduciary organization"
        means: 
           (1) a community action agency that has obtained recognition 
        under section 268.53; 
           (2) a federal community development credit union serving 
        the seven-county metropolitan area; or 
           (3) a women-oriented economic development agency serving 
        the seven-county metropolitan area. 
           Subd. 5.  [FINANCIAL INSTITUTION.] "Financial institution" 
        means a bank, bank and trust, savings bank, savings association, 
        or credit union, the deposits of which are insured by the 
        Federal Deposit Insurance Corporation or the National Credit 
        Union Administration. 
           Subd. 6.  [PERMISSIBLE USE.] "Permissible use" means: 
           (1) post-secondary educational expenses at an accredited 
        public post-secondary institution including books, supplies, and 
        equipment required for courses of instruction; 
           (2) acquisition costs of acquiring, constructing, or 
        reconstructing a residence, including any usual or reasonable 
        settlement, financing, or other closing costs; 
           (3) business capitalization expenses for expenditures on 
        capital, plant, equipment, working capital, and inventory 
        expenses of a legitimate business pursuant to a business plan 
        approved by the fiduciary organization; and 
           (4) acquisition costs of a principal residence within the 
        meaning of section 1034 of the Internal Revenue Code of 1986 
        which do not exceed 100 percent of the average area purchase 
        price applicable to the residence determined according to 
        section 143(e)(2) and (3) of the Internal Revenue Code of 1986. 
           Subd. 7.  [HOUSEHOLD.] "Household" means all individuals 
        who share use of a dwelling unit as primary quarters for living 
        and eating separate from other individuals. 
           Sec. 8.  [GRANTS AWARDED.] 
           The commissioner shall allocate funds to participating 
        fiduciary organizations to provide family asset services.  Grant 
        awards must be based on a plan submitted by a statewide 
        organization representing fiduciary organizations.  The 
        statewide organization must ensure that any interested 
        unrepresented fiduciary organization have input into the 
        development of the plan.  The plan must equitably distribute 
        funds to achieve geographic balance and document the capacity of 
        participating fiduciary organizations to manage the program and 
        to raise the private match. 
           Sec. 9.  [DUTIES.] 
           A participating fiduciary organization must: 
           (1) provide separate accounts for the immediate deposit of 
        program funds; 
           (2) establish a process to select participants and describe 
        any priorities for participation; 
           (3) enter into a family asset agreement with the household 
        to establish the terms of participation; 
           (4) provide households with economic literacy education; 
           (5) provide households with information on early childhood 
        family education; 
           (6) provide matching deposits for participating households; 
           (7) coordinate with other related public and private 
        programs; and 
           (8) establish a process to appeal and mediate disputes. 
           Sec. 10.  [HOUSEHOLD ELIGIBILITY; PARTICIPATION.] 
           Subdivision 1.  [INITIAL ELIGIBILITY.] To be eligible for 
        the family assets for independence initiative, a household must 
        have income at or below 200 percent of the federal poverty level 
        and assets of $25,000 or less.  An individual who is a dependent 
        of another person for federal income tax purposes may not be a 
        separate eligible household for purposes of establishing a 
        family asset account.  An individual who is a debtor for a 
        judgment resulting from nonpayment of a court-ordered child 
        support obligation may not participate in this program.  Income 
        and assets are determined according to eligibility guidelines 
        for the energy assistance program.  
           Subd. 2.  [CONTINUED PARTICIPATION.] A participating 
        household whose income exceeds 200 percent of the poverty level 
        may continue to make contributions to the savings account.  The 
        amount of any contributions made during the time when a 
        participating household's income is greater than 200 percent of 
        the poverty level is not eligible for the match under section 11.
           Subd. 3.  [FAMILY PARTICIPATION.] Each participating 
        household must sign a family asset agreement that includes the 
        amount of scheduled deposits into its savings account, the 
        proposed use, and the proposed savings goal.  A participating 
        household must agree to complete an economic literacy training 
        program.  
           Participating households may only deposit money that is 
        derived from household earned income or from state and federal 
        income tax credits.  
           Sec. 11.  [WITHDRAWAL; MATCHING; PERMISSIBLE USES.] 
           Subdivision 1.  [WITHDRAWAL OF FUNDS.] To receive a match, 
        a participating household must transfer funds withdrawn from a 
        family asset account to a fiduciary organization, according to 
        the family asset agreement.  The fiduciary organization must 
        determine if the match request is for a permissible use 
        consistent with the household's family asset agreement. 
           A fiduciary organization must match the balance in the 
        household's account, including interest, at the time of an 
        approved withdrawal.  Matches must be provided as follows: 
           (1) from state grant funds a matching contribution of $2 
        for every $1 of funds withdrawn from the family asset account 
        equal to the lesser of $720 per year or a $3,000 lifetime limit; 
        and 
           (2) from nonstate funds, a matching contribution of no less 
        than $2 for every $1 of funds withdrawn from the family asset 
        account equal to the lesser of $720 per year or a $3,000 
        lifetime limit. 
           Subd. 2.  [VENDOR PAYMENT OF WITHDRAWN FUNDS.] Upon receipt 
        of withdrawn funds, the fiduciary organization must make a 
        direct payment to the vendor of the goods or services for the 
        permissible use.  
           Sec. 12.  [PROGRAM REPORTING.] 
           Each fiduciary organization operating a family assets for 
        independence initiative must annually report to the commissioner 
        of children, families, and learning the number of accounts, the 
        amount of savings and matches for each account, the uses of the 
        account, and the number of businesses, homes, and educational 
        services paid for with money from the account, as well as other 
        information that may be required for the state to operate the 
        program effectively. 
           Sec. 13.  [EFFECTIVE DATE.] 
           Sections 1 to 4 are effective October 1, 1998. 
                                   ARTICLE 2 
                   FAMILY AND EARLY CHILDHOOD APPROPRIATIONS 
           Section 1.  Laws 1997, chapter 162, article 4, section 63, 
        subdivision 2, is amended to read: 
           Subd. 2.  [BASIC SLIDING FEE CHILD CARE.] For child care 
        assistance according to Minnesota Statutes, section 119B.03: 
             $41,751,000     .....     1998
             $50,751,000 $54,001,000     .....     1999
           Any balance in the first year does not cancel but is 
        available the second year. 
           Of this appropriation, the department shall allocate the 
        amount necessary to administer the at-home child care program 
        under section 22. 
           The increase in the fiscal year 1999 appropriation is for 
        child care assistance under Minnesota Statutes, section 119B.03, 
        to provide uninterrupted assistance for families completing 
        transition year child care assistance in fiscal year 1999.  The 
        commissioner shall implement procedures to ensure this 
        assistance. 
           $3,250,000 of the fiscal year 1999 appropriation is a 
        one-time appropriation. 
           Sec. 2.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The sums indicated in this section are appropriated 
        from the general fund to the commissioner of children, families, 
        and learning for the fiscal years and for the purposes indicated.
           Subd. 2.  [EMERGENCY SERVICES GRANTS.] For emergency 
        services grants under Laws 1997, chapter 162, article 3, section 
        7: 
             $  300,000     .....     1999 
           This is a one-time appropriation for fiscal year 1999. 
           Subd. 3.  [TRANSITIONAL HOUSING.] For transitional housing 
        programs according to Minnesota Statutes, section 268.38: 
             $  300,000    .....      1999
           This is a one-time appropriation. 
           Subd. 4.  [LEAD HAZARD REDUCTION.] For the lead abatement 
        program under Minnesota Statutes, section 268.92: 
             $  100,000     .....     1999 
           This appropriation must be used for the swab team service 
        program to provide lead cleanup and lead hazard reduction 
        services in geographic areas where the residents have a high 
        risk of elevated blood lead levels. 
           Of this amount, 25 percent is for a grant to the city of 
        St. Louis Park to conduct lead testing and cleanup in the 
        residential neighborhoods contaminated by an industrial lead 
        site.  The remaining amount is for a nonprofit organization that 
        is currently operating the CLEARCorps lead hazard reduction 
        project and is willing to expand its geographic service area.  
           This is a one-time appropriation. 
           Subd. 5.  [HEAD START AND ECFE.] For competitive grants for 
        programs for children ages 0 to 3:  
             $  250,000     .....     1999 
           A Head Start and an early childhood family education 
        program must jointly apply for grants from this appropriation.  
        Grant awards must be used to expand collaborative programming 
        involving both early childhood family education and Head Start 
        for children under the age of three. 
           This is a one-time appropriation. 
           Sec. 3.  [APPROPRIATION; ADMINISTRATION OF ABUSED CHILDREN 
        PROGRAMS.] 
           Of the amount appropriated under Laws 1997, chapter 162, 
        article 2, section 31, subdivision 8, up to $134,000 for fiscal 
        year 1998 and up to $134,000 for fiscal year 1999 may be used 
        for state costs to administer abused children programs under 
        Minnesota Statutes, sections 119A.20 to 119A.23. 
           Sec. 4.  [APPROPRIATION; ADMINISTRATION OF DRUG POLICY AND 
        VIOLENCE PREVENTION PROGRAMS.] 
           Of the amount appropriated under Laws 1997, chapter 162, 
        article 2, section 31, subdivision 9, up to $305,000 for fiscal 
        year 1998 and up to $305,000 for fiscal year 1999 may be used 
        for state costs to administer drug policy and violence 
        prevention programs under Minnesota Statutes, sections 119A.25 
        to 119A.29 and 119A.32 to 119A.34. 
           Sec. 5.  [APPROPRIATION; ADMINISTRATION OF THE CHILDREN'S 
        TRUST FUND.] 
           Of the amount appropriated under Laws 1997, chapter 162, 
        article 2, section 31, subdivision 10, up to $22,000 for fiscal 
        year 1998 and up to $22,000 for fiscal year 1999 may be used for 
        state costs to administer the children's trust fund under 
        Minnesota Statutes, sections 119A.10 to 119A.17.  
           Of the amount in the special revenue account from fees 
        under Minnesota Statutes, section 144.226, subdivision 3, up to 
        $120,000 for fiscal year 1998 and $120,000 for fiscal year 1999 
        may be used for operating costs of the children's trust fund. 
           Sec. 6.  [EFFECTIVE DATE.] 
           Sections 3 to 5 are effective the day following final 
        enactment. 
                                   ARTICLE 3
                              ECONOMIC DEVELOPMENT 
        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.  
        The figures "1998" and "1999," where used in this act, mean that 
        the appropriation or appropriations listed under them are 
        available for the year ending June 30, 1998, or June 30, 1999, 
        respectively.  The term "first year" means the fiscal year 
        ending June 30, 1998, and "second year" means the fiscal year 
        ending June 30, 1999. 
                                SUMMARY BY FUND 
                                                 1998           1999 
        General                              $   359,000    $ 3,841,000
        TOTAL                                    359,000      3,841,000
                                                  APPROPRIATIONS 
                                              Available for the Year 
                                                  Ending June 30 
                                                 1998         1999 
        Sec. 2.  DEPARTMENT OF TRADE AND
        ECONOMIC DEVELOPMENT                 $     -0-      $   580,000
        The amounts that may be spent from this 
        appropriation for each purpose is 
        specified in the following paragraphs. 
        (a) Neighborhood Development Center, Inc.
        $80,000 in 1999 making a grant to the 
        Neighborhood Development Center, Inc.  
        The center shall use the grant for the 
        purpose of expanding and improving its 
        neighborhood and ethnic-based 
        entrepreneur training, lending, and 
        support programs in the poorest 
        communities of Minneapolis and St. 
        Paul.  This appropriation is a one-time 
        appropriation and is not added to the 
        department's budget base. 
        (b) Biomass Energy Project 
        $500,000 in 1999 is for a grant to the 
        Granite Falls economic development 
        authority for the development of a 
        farm-grown, closed loop biomass energy 
        project.  The grant may be used to 
        manage the development, seek financing 
        and equity participation, reimburse 
        costs of third-party due diligence 
        exercises, and perform environmental 
        review and permitting.  This is a 
        one-time appropriation and is not added 
        to the department's budget base. 
        (c) Minnesota Trade Office 
        The appropriation in Laws 1997, chapter 
        200, article 1, section 2, subdivision 
        3, to the department of trade and 
        economic development for the Minnesota 
        trade office for a multifaceted program 
        to develop trade with China is 
        available until June 30, 1999. 
        Sec. 3.  MINNESOTA WORLD TRADE CENTER
        CORPORATION                              155,000        -0-  
        $155,000 is appropriated in 1998 for 
        full and final payments of the 
        remaining 1988 debt of the Minnesota 
        World Trade Center Corporation which 
        was incurred for conference center 
        furniture, fixtures, and equipment.  
        This appropriation is available 
        immediately.  This is a one-time 
        appropriation and is not added to the 
        department's budget base. 
        Sec. 4.  DEPARTMENT OF ECONOMIC
        SECURITY                                  -0-         2,326,000 
        The amounts that may be spent from this 
        appropriation for each purpose are 
        specified in the following paragraphs. 
        (a) Vocational Rehabilitation
        $1,000,000 in 1999 to the vocational 
        rehabilitation program to be added to 
        the appropriation for rehabilitation 
        services provided in Laws 1997, chapter 
        200, article 1, section 5, subdivision 
        2, and is added to the department's 
        budget base.  
        (b) Summer Youth Employment
        $1,000,000 in 1999 is for summer youth 
        employment programs.  This is a 
        one-time appropriation and is available 
        immediately and is available until June 
        30, 1999. 
        (c) Advocating Change Together, Inc. 
        $126,000 in 1999 is for a grant to 
        Advocating Change Together, Inc. 
        (ACT).  The grant must be used for (1) 
        the training and empowerment of 
        individuals with developmental and 
        other mental health disabilities, 
        including mental illnesses that are 
        serious and persistent, that are 
        chronic, or that pose a risk of 
        hospitalization; (2) the maintenance of 
        related data; or (3) technical 
        assistance for work advancement or 
        additional workforce training.  This is 
        a one-time appropriation and is not 
        added to the department's budget base. 
        (d) Displaced Homemakers Empowerment
        $200,000 in 1999 is for displaced 
        homemaker programs under Minnesota 
        Statutes, section 268.96, and is a 
        one-time appropriation and not added to 
        the department's budget base.  This 
        appropriation is for grants to operate 
        a community work empowerment support 
        group demonstration project and is in 
        addition to the appropriation for that 
        purpose contained in Laws 1997, chapter 
        200, article 1, section 4, subdivision 
        4.  
        Sec. 5.  PUBLIC UTILITIES
        COMMISSION                               204,000        189,000 
        This appropriation is for costs 
        associated with the regulation of 
        utilities.  Notwithstanding any other 
        law, these amounts may not be billed 
        back to utility companies. 
        Sec. 6.  MINNESOTA HISTORICAL SOCIETY     -0-          646,000  
        The amounts that may be spent from this 
        appropriation for each purpose are 
        specified in the following paragraphs. 
        (a) Salary Adjustment 
        $571,000 in 1999 is for salary 
        adjustments.  This is a one-time 
        appropriation and is not added to the 
        society's budget base. 
        (b) Hmong Archives 
        $75,000 in 1999 is for start-up costs 
        for the Hmong history and culture 
        archival project.  The society may make 
        grants to nonprofit organizations for 
        planning, training, and purchase of 
        supplies and equipment.  This is a 
        one-time appropriation and is not added 
        to the society's budget base. 
        Sec. 7.  SUPREME COURT                    -0-          100,000 
        $100,000 in 1999 is for the community 
        justice system collaboration team in 
        the judicial branch.  This is a 
        one-time appropriation and is not added 
        to the budget base. 
           Sec. 8.  [JUDY GARLAND CHILDREN'S MUSEUM.] 
           The appropriation in Laws 1997, chapter 200, article 1, 
        section 2, subdivision 2, to the commissioner of trade and 
        economic development for the Judy Garland Children's Museum is 
        available until and may be matched until June 30, 1999. 
           Sec. 9.  [LEROY NIEMAN MUSEUM OF ART.] 
           The appropriation in Laws 1997, chapter 200, article 1, 
        section 2, subdivision 4, to the commissioner of trade and 
        economic development for a grant to the LeRoy Nieman Museum of 
        Art is available until and may be matched until June 30, 1999.  
           Sec. 10.  [NEWPORT.] 
           The city of Newport may include in-kind resources and money 
        raised or contributed during a period beginning January 1, 1993, 
        in determining its required match for the appropriation to the 
        city in Laws 1997, chapter 200, article 1, section 2, 
        subdivision 2.  
           Sec. 11.  [TRAINING FOR HMONG AND LAOTIAN WOMEN.] 
           $100,000 of the appropriation in fiscal year 1999 for the 
        Job Training Partnership Act program in Laws 1997, chapter 200, 
        article 1, section 5, subdivision 4, is available to the Women's 
        Association of Hmong and Lao to provide employment and training 
        to eligible Hmong and Laotian women. 
           Sec. 12.  [BOUNDARY EXTENSION.] 
           The boundaries of the North Mississippi Regional Park are 
        extended to include 49th Avenue North and adjacent property from 
        Humboldt Avenue east to the Mississippi river.  Funds 
        appropriated for the North Mississippi Regional Park may be 
        expended to create a trail or greenway as part of the Hennepin 
        county multijurisdictional program on 49th Avenue North and 
        adjacent property as an entrance to the North Mississippi 
        Regional Park.  
           Sec. 13.  [MINNESOTA INVESTMENT FUND; SOYBEAN OILSEED 
        PROCESSING FACILITY.] 
           Notwithstanding the grant limit in Minnesota Statutes, 
        section 116J.8731, subdivision 5, a grant of up to $1,000,000 
        may be made to a political subdivision that is chosen as a site 
        for a soybean oilseed processing facility, constructed by a 
        Minnesota-based cooperative.  The grant may be used for site 
        preparation, predevelopment, and other infrastructure 
        improvements, including public and private utility improvements, 
        that are necessary for development of the oilseed processing 
        facility.  The grant may be made any time until December 31, 
        2000. 
           Sec. 14.  [BIOMASS PROJECT; WAIVER OF FEES AUTHORIZED.] 
           The Minnesota environmental quality board may waive fees 
        under Minnesota Statutes, chapter 116C, for permits necessary 
        for construction to commence on a biomass energy project that 
        plans to use alfalfa for a primary fuel source. 
           Sec. 15.  Minnesota Statutes 1996, 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 
        until: 
           (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, contracts awarding grants, or contracts 
        making loans, or bond purchase agreements by the department of 
        trade and economic development or the Minnesota public 
        facilities authority. 
           (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. 16.  Minnesota Statutes 1997 Supplement, section 
        115C.09, subdivision 3f, is amended to read: 
           Subd. 3f.  [REIMBURSEMENTS; SMALL GASOLINE RETAILERS.] (a) 
        As used in this subdivision, "small gasoline retailer" means 
        a responsible person tank owner or operator who owns no more 
        than only one location in this state, and no locations in any 
        other state, where motor fuel was dispensed to the public into 
        motor vehicles, watercraft, or aircraft in the previous year, 
        and who dispensed motor fuel at that location. 
           (b) Notwithstanding subdivision 1, paragraph (b), clause 
        (1), for eligible applicants who are small gasoline retailers 
        that have dispensed less than 500,000 gallons of motor fuel 
        during the most recent calendar year that petroleum products 
        were dispensed at the location owned by the retailer, the board 
        shall reimburse the applicant for 90 percent of the applicant's 
        total reimbursable cost for tank removal projects started after 
        January 1, 1997 1996, including, but not limited to, tank 
        removal, closure in place, backfill, resurfacing, and utility 
        service restoration costs, regardless of whether a release has 
        occurred at the site, provided that the tank involved is a 
        regulated underground storage tank. 
           (c) Notwithstanding subdivision 1, paragraph (b), clause 
        (1), for eligible applicants who are small gasoline retailers 
        that have dispensed less than 250,000 gallons of motor fuel 
        during the most recent calendar year that petroleum products 
        were dispensed at the location owned by the retailer, provided 
        that the tank involved is a regulated underground storage tank, 
        the board shall reimburse the applicant for 95 percent of the 
        following costs: 
           (1) tank removal costs described in paragraph (b); and 
           (2) petroleum contamination cleanup as provided under 
        subdivision 1 incurred during or after the tank removal project. 
           (d) An applicant who owns only one location in this or any 
        other state where motor fuel was dispensed to the public into 
        motor vehicles, watercraft, or aircraft but who did not dispense 
        motor fuel at that location may qualify as a small gasoline 
        retailer if:  
           (1) the previous tank owner or operator at the location was 
        a small gasoline retailer that dispensed less than 500,000 
        gallons of motor fuel during the most recent calendar year that 
        petroleum products were dispensed at the location; and 
           (2) the applicant acquired legal or equitable title to the 
        property after January 1, 1996.  
           (e) This subdivision expires January 1, 2000. 
           Sec. 17.  Minnesota Statutes 1996, section 115C.09, is 
        amended by adding a subdivision to read: 
           Subd. 3g.  [REIMBURSEMENTS; SMALL BUSINESS OWNERS.] (a) As 
        used in this subdivision, "small business owner" means a person: 
           (1) who has no more than $250,000 per year in sales; 
           (2) who owns no more than one location where motor fuel was 
        previously dispensed to the public into motor vehicles; 
           (3) who did not dispense motor fuel at that location; and 
           (4) whose tanks were never registered with the state. 
           (b) Notwithstanding subdivision 1, paragraph (b), clause 
        (1), the board shall reimburse an eligible applicant who is a 
        small business owner for 90 percent of the applicant's total 
        reimbursable cost for tank removal projects started after 
        January 1, 1998, including, but not limited to, tank removal, 
        closure in place, backfill, resurfacing, and utility service 
        restoration costs, regardless of whether a release has occurred 
        at the site, and provided that the person does not intend to 
        replace the tanks. 
           Sec. 18.  Minnesota Statutes 1997 Supplement, section 
        116J.421, subdivision 1, is amended to read: 
           Subdivision 1.  [ESTABLISHED.] The rural policy and 
        development center is established at Mankato State University. 
           The center may be established by the board as a nonprofit 
        corporation under section 501(c)3 of the Internal Revenue Code 
        or the board may organize and operate the center in a manner and 
        form that the board determines best allows the center to carry 
        out its duties. 
           Sec. 19.  Minnesota Statutes 1997 Supplement, section 
        116J.421, is amended by adding a subdivision to read: 
           Subd. 5.  [POWERS.] The board has the power to do all 
        things reasonable and necessary to carry out the duties of the 
        center including, without limitation, the power to: 
           (1) enter into contracts for goods or services with 
        individuals and private and public entities; 
           (2) sue and be sued; 
           (3) acquire, hold, lease, and transfer any interest in real 
        and personal property; 
           (4) accept appropriations, gifts, grants, and bequests; 
           (5) hire employees; and 
           (6) delegate any of its powers. 
           Sec. 20.  Minnesota Statutes 1997 Supplement, section 
        179A.03, subdivision 7, is amended to read: 
           Subd. 7.  [ESSENTIAL EMPLOYEE.] "Essential employee" means 
        firefighters, peace officers subject to licensure under sections 
        626.84 to 626.863, guards at correctional facilities, 
        confidential employees, supervisory employees, assistant county 
        attorneys, assistant city attorneys, principals, and assistant 
        principals.  However, for state employees, "essential employee" 
        means all employees in law enforcement, health care 
        professionals, correctional guards, professional engineering, 
        and supervisory collective bargaining units, irrespective of 
        severance, and no other employees.  For University of Minnesota 
        employees, "essential employee" means all employees in law 
        enforcement, nursing professional and supervisory units, 
        irrespective of severance, and no other employees.  
        "Firefighters" means salaried employees of a fire department 
        whose duties include, directly or indirectly, controlling, 
        extinguishing, preventing, detecting, or investigating fires. 
           Sec. 21.  Minnesota Statutes 1996, section 383B.79, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PROGRAM CREATED.] A multijurisdictional 
        reinvestment program involving Hennepin county, the cities of 
        Minneapolis, Brooklyn Center, and other interested statutory or 
        home rule charter cities in Hennepin county, the Minneapolis 
        park board, and the suburban Hennepin county park district is 
        created.  The multijurisdictional program must include plans for 
        housing rehabilitation and removals, industrial polluted land 
        cleanup, water ponding, environmental cleanup, community 
        corridor connections, corridor planning, creation of green 
        space, acquisition of property, development and redevelopment of 
        parks and open space, water quality and lakeshore improvement, 
        development and redevelopment of housing and existing commercial 
        projects, and job creation.  
           Sec. 22.  Minnesota Statutes 1996, section 383B.79, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [ADMINISTRATION.] The board of county 
        commissioners shall administer the program and funds and bond 
        for projects in this section either as a county board or a 
        housing and redevelopment authority.  The board of county 
        commissioners may acquire property in connection with the 
        project known as the Humboldt Avenue Greenway from any funds 
        under its control. 
           Sec. 23.  Minnesota Statutes 1996, 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 (1) includes census tracts eligible 
        for a federal empowerment zone or enterprise community as 
        defined by the United States Department of Housing and Urban 
        Development under Public Law Number 103-66, notwithstanding the 
        maximum zone population standard under the federal empowerment 
        zone program for cities with a population under 500,000 or, (2) 
        is an area within a city of the second class that is designated 
        as an economically depressed area by the United States 
        Department of Commerce, or (3) includes property located in St. 
        Paul in a transit zone as defined in section 473.3915, 
        subdivision 3. 
           Sec. 24.  [LOCAL APPROVAL; EFFECTIVE DATE.] 
           Sections 21 and 22 are effective the day after the Hennepin 
        county board complies with Minnesota Statutes, section 645.021, 
        subdivision 3. 
           Sec. 25.  [EFFECTIVE DATE.] 
           All provisions making appropriations for fiscal year 1998, 
        or that are to be available immediately, are effective the day 
        following final enactment. 
                                   ARTICLE 4 
                                    HOUSING 
         Section 1.  [HOUSING 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.  
        The figures "1998" and "1999," where used in this act, mean that 
        the appropriation or appropriations listed under them are 
        available for the year ending June 30, 1998, or June 30, 1999, 
        respectively.  The term "first year" means the fiscal year 
        ending June 30, 1998, and "second year" means the fiscal year 
        ending June 30, 1999. 
                                SUMMARY BY FUND 
                                                 1998           1999 
        General                              $     -0-      $ 3,600,000 
        TOTAL                                      -0-        3,600,000 
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  1998         1999 
        Sec. 2.  MINNESOTA HOUSING 
        FINANCE AGENCY                       $     -0-      $ 3,600,000
        The amounts that may be spent from this 
        appropriation for certain programs are 
        specified below. 
        This appropriation is for transfer to 
        the housing development fund for the 
        programs specified and is a one-time 
        appropriation and is not added to the 
        agency's budget base. 
        (a) Affordable Rental Investment Fund
        and Community Rehabilitation Fund 
        $3,300,000 in 1999 is for the 
        affordable rental investment fund 
        program under Minnesota Statutes, 
        section 462A.21, subdivision 8b, to be 
        allocated according to the geographic 
        distribution requirements in the 
        appropriation for the affordable rental 
        investment program in Laws 1997, 
        chapter 200, article 1, section 6, and 
        for the community rehabilitation 
        program under Minnesota Statutes, 
        section 462A.206.  Notwithstanding 
        section 462A.206, this appropriation 
        shall be used to provide housing for 
        families and persons with incomes less 
        than or equal to 80 percent of the Twin 
        Cities metropolitan area median income 
        applied statewide.  The agency must 
        give preference to economically viable 
        projects in which there is a 
        contribution from nonstate sources.  Of 
        this amount, the agency may use up to 
        $500,000 to fund projects in cities of 
        the first class if the projects use 
        innovative urban design elements, 
        comprehensive community planning, or 
        help leverage federal funds from the 
        federal home ownership zone program.  
        (b) Family Homeless Prevention
        and Assistance Program
        $300,000 in 1999 is for the family 
        homeless prevention and assistance 
        program under Minnesota Statutes, 
        section 462A.204 and is added to the 
        appropriation for this program in Laws 
        1997, chapter 200, article 1, section 6.
           Presented to the governor April 22, 1998 
           Signed by the governor April 22, 1998, 9:58 p.m.