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Office of the Revisor of Statutes

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

                            CHAPTER 223-H.F.No. 2390 
                  An act relating to state government; appropriating 
                  money for economic development and certain agencies of 
                  state government; establishing and modifying programs; 
                  regulating activities and practices; modifying fees; 
                  making conforming changes; requiring reports; 
                  providing criminal penalties; amending Minnesota 
                  Statutes 1998, sections 45.0295; 53A.03; 53A.05, 
                  subdivision 1; 60A.14, subdivision 1; 60A.23, 
                  subdivision 8; 60A.71, subdivision 7; 60K.06; 65B.48, 
                  subdivision 3; 70A.14, subdivision 4; 72B.04, 
                  subdivision 10; 79.255, subdivision 10; 82A.08, 
                  subdivision 2; 82A.16, subdivisions 2 and 6; 116J.415, 
                  subdivision 5; 116J.421, subdivisions 2, 3, and by 
                  adding subdivisions; 116J.63, subdivision 4; 
                  116J.8745, subdivisions 1 and 2; 116L.03, subdivisions 
                  1, 2, and 5; 116L.04, subdivision 1a; 116L.06, 
                  subdivision 4; 175.17; 176.181, subdivision 2a; 
                  216C.41, subdivisions 1 and 2; 268.022; 268.666, by 
                  adding a subdivision; 268.98, subdivision 3; 268A.13; 
                  268A.14; 298.22, subdivisions 2 and 6; 298.2213, 
                  subdivision 4; 298.223, subdivision 2; 326.105, if 
                  enacted; 326.86, subdivision 1; 383B.79, subdivision 
                  4; 446A.072, subdivision 4; 462A.20, subdivision 2, 
                  and by adding a subdivision; 462A.204, by adding a 
                  subdivision; 462A.205, subdivision 3; 462A.209; 
                  462A.21, by adding a subdivision; and 473.251; Laws 
                  1998, chapter 404, section 13, subdivision 5; Laws 
                  1998, First Special Session chapter 1, article 3, 
                  section 8; proposing coding for new law in Minnesota 
                  Statutes, chapters 82B; 116J; 245; 268; 462A; and 473; 
                  repealing Minnesota Statutes 1998, sections 44A.001; 
                  44A.01; 44A.02; 44A.023; 44A.025; 44A.031; 44A.0311; 
                  44A.06; 44A.08; 44A.11; 341.01; 341.02; 341.04; 
                  341.045; 341.05; 341.06; 341.07; 341.08; 341.09; 
                  341.10; 341.11; 341.115; 341.12; 341.13; 341.15; 
                  462A.28; 469.305; 469.306; 469.307; 469.308; and 
                  469.31; Laws 1999, chapter 137, section 5. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
                                   ARTICLE 1 
                                 APPROPRIATIONS 
        Section 1.  [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 
           The sums shown in the columns marked "APPROPRIATIONS" are 
        appropriated from the general fund, or another named fund, to 
        the agencies and for the purposes specified in this act, to be 
        available for the fiscal years indicated for each purpose.  The 
        figures "2000" and "2001," where used in this act, mean that the 
        appropriation or appropriations listed under them are available 
        for the year ending June 30, 2000, or June 30, 2001, 
        respectively.  The term "first year" means the fiscal year 
        ending June 30, 2000, and "second year" means the fiscal year 
        ending June 30, 2001. 
                                SUMMARY BY FUND
                    1999          2000          2001           TOTAL
        General   $21,000     $224,507,000   $184,543,000   $409,071,000
        Petroleum Tank
        Cleanup                 1,015,000      1,045,000      2,060,000
        Environmental Fund        700,000        700,000      1,400,000
        TANF                    6,000,000      4,000,000     10,000,000
        Trunk Highway             745,000        766,000      1,511,000 
        Workers' 
        Compensation           22,217,000     22,439,000     44,656,000
        Special Revenue           100,000        -0-            100,000
        Workforce
        Development Fund       17,993,000     12,557,000     30,550,000 
        TOTAL     $21,000    $273,277,000   $226,050,000   $499,348,000
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  2000         2001 
        Sec. 2.  TRADE AND ECONOMIC DEVELOPMENT 
        Subdivision 1.  Total       
        Appropriation                          56,880,000    46,056,000
                      Summary by Fund
        General              42,985,000    32,590,000
        Trunk Highway           745,000       766,000 
        TANF                  1,500,000     1,500,000
        Environmental Fund      700,000       700,000 
        Workforce 
        Development Fund     10,950,000    10,500,000 
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Business and Community 
        Development                            38,488,000    28,186,000
                      Summary by Fund
        General             25,338,000     15,486,000
        TANF                 1,500,000      1,500,000
        Environmental Fund     700,000        700,000
        Workforce 
        Development Fund    10,950,000     10,500,000
        $5,017,000 the first year and 
        $4,017,000 the second year are for 
        Minnesota investment fund grants.  Of 
        this amount, $1,000,000 in the first 
        year is a one-time appropriation and is 
        not added to the agency's budget base. 
        $400,000 the first year is for a 
        one-time grant to Advantage Minnesota, 
        Inc.  The funds are available only if 
        matched on at least a dollar-for-dollar 
        basis from other sources.  The 
        commissioner may release the funds only 
        upon: 
        (1) certification that matching funds 
        from each participating organization 
        are available; and 
        (2) review and approval by the 
        commissioner of the proposed operations 
        plan of Advantage Minnesota, Inc. for 
        the biennium. 
        $14,067,000 the first year and 
        $14,073,000 the second year are for the 
        job skills partnership program.  If the 
        appropriation for either year is 
        insufficient, the appropriation for the 
        other year is available.  Of this 
        appropriation, $10,000,000 in each year 
        is a one-time appropriation from the 
        workforce development fund.  It is the 
        intention of the legislature that this 
        program base funding be $5,931,000 per 
        year in the 2002-2003 biennium.  This 
        appropriation does not cancel.  
        $500,000 the first year and $500,000 
        the second year are one-time 
        appropriations from the workforce 
        development fund for the pathways 
        program. 
        $1,500,000 the first year and 
        $1,500,000 the second year are 
        appropriated from the state's federal 
        TANF block grant under Title I of 
        Public Law Number 104-193 to the 
        commissioner of human services, to be 
        transferred to the commissioner of 
        trade and economic development for the 
        pathways program under Minnesota 
        Statutes, section 116L.04, subdivision 
        1a.  It is the intention of the 
        legislature that the general fund base 
        funding to the pathways program be 
        $1,500,000 per year in the 2002-2003 
        biennium. 
        $500,000 the first year is for a 
        one-time grant to the city of Fridley 
        for costs of the design and 
        construction of infrastructure 
        improvements required by a large 
        business campus development in the 
        Moore lakes area of the city. 
        $551,000 the first year and $565,000 
        the second year are from fees collected 
        under Minnesota Statutes, section 
        446A.04, subdivision 5, to administer 
        the programs of the public facilities 
        authority. 
        $500,000 in the first year is for a 
        one-time grant to the community 
        resources program under Minnesota 
        Statutes, chapter 466A. 
        $200,000 the first year is for a 
        one-time grant to the board of the 
        rural policy and development center for 
        operation of the center.  This 
        appropriation is available as matched 
        in cash on a dollar-for-dollar basis 
        from nonstate sources. 
        $155,000 the first year and $155,000 
        the second year are for grants to the 
        metropolitan economic development 
        association.  This is a one-time 
        appropriation and is not added to the 
        agency's budget base. 
        $265,000 the first year and $265,000 
        the second year are for grants to 
        WomenVenture.  WomenVenture must 
        implement a program to encourage and 
        assist women to enter nontraditional 
        careers in the trades and technical 
        occupations.  The program shall consist 
        of outreach to women and girls and 
        training, job placement, and job 
        retention support that meet women's 
        specific needs.  The program must be 
        accessible to low-income working 
        mothers, including MFIP recipients. 
        $450,000 the first year is for a 
        one-time grant to the St. Paul 
        rehabilitation center for its current 
        programs, including those related to 
        developing job-seeking skills and 
        workplace orientation, intensive job 
        development, functional work English, 
        and on-site job coaching.  This 
        appropriation is from the workforce 
        development fund. 
        $250,000 is for a grant to the city of 
        Windom to provide loans to assist an 
        expanding business.  This is a one-time 
        appropriation and is not added to the 
        agency's budget base. 
        $350,000 is for the biennium ending 
        June 30, 2001, for a grant to the Camp 
        Heartland center.  The grant may be 
        used for phase II capital expenditures 
        including, without limitation, a septic 
        system upgrade and bath/shower house 
        construction, construction of a family 
        lodge, renovation of a medical 
        facility, construction of staff housing 
        and offices, or expansion and upgrade 
        of the dining room and kitchen.  This 
        is a one-time appropriation and is not 
        added to the agency's budget base.  
        $4,800,000 the first year and 
        $2,800,000 the second year are for 
        purposes of the contamination cleanup 
        and development grant program under 
        Minnesota Statutes, sections 116J.551 
        to 116J.558.  Of this appropriation, 
        $2,000,000 is a one-time appropriation 
        and is not added to the agency's budget 
        base. 
        $75,000 is for a grant to the city of 
        Lake Benton for planning costs 
        associated with a new visitor center 
        and railroad depot building.  This is a 
        one-time appropriation and is not added 
        to the agency's budget base. 
        $220,000 the first year and $220,000 
        the second year are for microenterprise 
        technical assistance under Minnesota 
        Statutes, section 116J.8745.  This is a 
        one-time appropriation and is not added 
        to the agency's budget base. 
        $50,000 in 2000 is for a grant to the 
        Chatfield brass band music lending 
        library.  The money must be used for 
        computer hardware and software to 
        catalog the music collection and create 
        a Web site.  This is a one-time 
        appropriation and must not be added to 
        the agency's budget base. 
        $50,000 in fiscal year 2000 is for a 
        one-time grant to the Duluth Economic 
        Development Authority for the purchase 
        and installation of railroad ties to 
        improve the Lake Superior Mississippi 
        Railroad scenic railway along the St. 
        Louis Bay in Duluth. 
        $100,000 is appropriated for a grant to 
        the city of Lanesboro for 
        predevelopment costs for the Root River 
        Regional Arts Center.  This is a 
        one-time appropriation and is not added 
        to the agency's budget base. 
        $50,000 the first year is for a 
        one-time grant to county and district 
        agricultural societies and associations 
        that are eligible to receive aid under 
        Minnesota Statutes, section 38.02.  The 
        commissioner shall administer this 
        appropriation pursuant to a need-based 
        competitive grant process. 
        $216,000 in the first year is for 
        one-time rural job creation grants 
        under Minnesota Statutes, section 
        469.309. 
        $450,000 is for a grant to the city of 
        Duluth to support the development of 
        the Duluth Technology Village.  The 
        grant shall be used to establish 
        international partnerships, attract 
        software businesses, recruit and train 
        workers for the software industry, and 
        support a software business incubator 
        facility.  This is a one-time 
        appropriation and is not part of the 
        agency base budget.  This appropriation 
        is not available unless matched by 
        nonstate money. 
        $150,000 the first year is for a grant 
        to the suburban Hennepin regional park 
        district for restoration of the Grimm 
        farmstead. 
        $150,000 in the first year is for a 
        one-time grant to the city of Ely for 
        rehabilitation of the Ely technical 
        building.  
        $50,000 in the first year is for a 
        one-time grant to the Highland Park 
        district council for the enhancement of 
        the West Seventh Street/Gateway area, 
        which serves as a major transportation 
        and commercial corridor for visitors 
        from the Minneapolis-St. Paul 
        International Airport, Mall of America, 
        and other destinations.  The 
        appropriation may be used to make 
        improvements to the public right-of-way 
        including, but not limited to, 
        landscaping, lighting, signage, and 
        roadway improvements.  This 
        appropriation must be matched 
        one-for-one by nonstate funds. 
        $3,000,000 in the first year is for the 
        redevelopment account under Minnesota 
        Statutes, sections 116J.561 to 
        116J.567.  The appropriation is 
        available for the biennium ending June 
        30, 2001.  This is a one-time 
        appropriation and is not added to the 
        agency's budget base. 
        $75,000 in the first year is for a 
        one-time grant to Perham Business 
        Technology Center to equip the training 
        center with interactive television and 
        for program funds to implement the 
        business plan. 
        $300,000 in the first year is for a 
        one-time grant to the city of Owatonna 
        for city infrastructure improvements.* 
        (The preceding text beginning "$300,000 
        in the first year" was vetoed by the 
        governor.) 
        Subd. 3.  Minnesota Trade Office 
             2,275,000      2,318,000
        The department shall act as the lead 
        agency in developing a plan for a 
        coordinated effort to promote Minnesota 
        internationally.  The commissioner may 
        appoint an advisory committee and may 
        seek federal and private funding to 
        develop and implement the plan. 
        Subd. 4.  Tourism 
            10,805,000     10,910,000
                      Summary by Fund
        General              10,060,000    10,144,000
        Trunk Highway           745,000       766,000
        To develop maximum private sector 
        involvement in tourism, $3,500,000 the 
        first year and $3,500,000 the second 
        year of the amounts appropriated for 
        marketing activities are contingent on 
        receipt of an equal contribution from 
        nonstate sources that have been 
        certified by the commissioner.  Up to 
        one-half of the match may be given in 
        in-kind contributions.  
        In order to maximize marketing grant 
        benefits, the commissioner must give 
        priority for joint venture marketing 
        grants to organizations with year-round 
        sustained tourism activities.  For 
        programs and projects submitted, the 
        commissioner must give priority to 
        those that encompass two or more areas 
        or that attract nonresident travelers 
        to the state. 
        If an appropriation for either year for 
        grants is not sufficient, the 
        appropriation for the other year is 
        available for it. 
        The commissioner may use grant dollars 
        or the value of in-kind services to 
        provide the state contribution for the 
        partnership program. 
        Any unexpended money from general fund 
        appropriations made under this 
        subdivision does not cancel but must be 
        placed in a special advertising account 
        for use by the office of tourism to 
        purchase additional media. 
        This appropriation may be used for a 
        grant to Minnesota Festivals and Events 
        Association for the following purposes: 
        (1) for a partnership with the 
        University of Minnesota's tourism 
        center to build the methodology for a 
        low-cost economic impact model that 
        will allow festival and event managers 
        to conduct research independently in 
        their own communities; 
        (2) to promote regional workshops to 
        increase production value and 
        professionalism for events in the 
        state, increase event service and 
        entertainment value for local 
        residents, build community awareness of 
        opportunities to generate new tourism, 
        and assure production of high quality, 
        safe, and meaningful tourism products 
        that are in line with the vision, 
        mission, and growth goals of individual 
        towns and cities in Minnesota; 
        (3) for a partnership with the 
        University of Minnesota's tourism 
        center to enhance professionalism via 
        its certified festival manager program, 
        training event managers and volunteer 
        staff to implement value-added 
        festivals and events for visitors to 
        the state; 
        (4) for a partnership with the 
        Minnesota office of tourism to publish 
        a pull-out mini-magazine advertising 
        the statewide festivals and events 
        calendar for the year; and 
        (5) to expand the Minnesota Festivals 
        and Events Association website, to 
        provide travel planners with more 
        festival and event intensive links to 
        communities hosting such activities. 
        $250,000 in the first year is for a 
        one-time grant for the purpose of the 
        Upper Red Lake business loan program.  
        $829,000 the first year and $829,000 
        the second year are for the Minnesota 
        film board.  $329,000 of this 
        appropriation in each year is available 
        only upon receipt by the board of $1 in 
        matching contributions of money or 
        in-kind from nonstate sources for every 
        $3 provided by this appropriation.  Of 
        this amount, $500,000 the first year 
        and $500,000 the second year are for 
        grants to the Minnesota film board for 
        a film production jobs fund to 
        stimulate feature film production in 
        Minnesota.  This appropriation is to 
        reimburse film producers for two to 
        five percent of documented wages which 
        they paid to Minnesotans for film 
        production after January 1, 1999. 
        $100,000 the first year is for a grant 
        to promote tourism in the Mille Lacs 
        area.  This is a one-time appropriation 
        and is not added to the agency's budget 
        base. 
        $100,000 the first year is for a 
        one-time grant to promote tourism in 
        the areas near the northern border of 
        Minnesota, including the Northwest 
        Angle. 
        $37,000 the first year is for a grant 
        to the Mississippi River parkway 
        commission.  
        Subd. 5.  Administration 
             3,897,000      3,192,000
        $750,000 the first year is appropriated 
        for enhancements to the journey travel 
        destination system.  The funds are 
        available only if matched in cash on at 
        least a dollar-for-dollar basis from 
        other sources.  This is a one-time 
        appropriation and is available until 
        spent. 
        Subd. 6.  Information and Analysis
             1,415,000      1,450,000
        Sec. 3.  MINNESOTA TECHNOLOGY, INC.    6,425,000      7,225,000
        $4,605,000 the first year and 
        $6,105,000 the second year are for 
        transfer from the general fund to the 
        Minnesota Technology, Inc. fund. 
        $70,000 the first year and $70,000 the 
        second year are for grants to Minnesota 
        Inventors Congress.  This is a one-time 
        appropriation and is not added to the 
        agency's budget base. 
        $100,000 the first year and $100,000 
        the second year are for grants to the 
        Minnesota cold weather research 
        center.  By January 15, 2001, the 
        center will report to the legislature 
        on (1) the sources and amounts of its 
        nonstate matching funds, and (2) the 
        effectiveness of its program in 
        achieving quantifiable economic 
        development benefits to the state.  
        This is a one-time appropriation and is 
        not added to the agency's budget base. 
        $700,000 the first year and $500,000 
        the second year are for grants to 
        Minnesota Project Innovation.  The 
        legislature intends for Minnesota 
        Project Innovation to move toward 
        economic self-sufficiency.  This is a 
        one-time appropriation and is not added 
        to the agency's budget base. 
        $850,000 the first year and $450,000 
        the second year are for grants to the 
        Natural Resources Research Institute.  
        This is a one-time appropriation and is 
        not added to the agency's budget base. 
        $100,000 the first year is for a 
        one-time grant to the Minnesota Council 
        for Quality. 
        Sec. 4.  ECONOMIC SECURITY  
        Subdivision 1.  Total 
        Appropriation                         46,015,000     38,674,000
                      Summary by Fund
        General              39,287,000    37,446,000
        TANF Block Grant        500,000       -0- 
        Workforce
        Development Fund      6,228,000     1,228,000
        Subd. 2.  Rehabilitation Services     22,578,000     22,089,000
                      Summary by Fund
        General              21,902,000    21,913,000
        TANF                    500,000       -0-
        Workforce
        Development Fund        176,000       176,000
        $1,850,000 the first year and 
        $1,850,000 the second year are for 
        centers for independent living.  The 
        commissioner shall review the 
        allocation of this appropriation among 
        the centers for independent living and 
        consider whether unequal allocation 
        might be appropriate in subsequent 
        years. 
        $500,000 the first year is to provide 
        welfare-to-work extended employment 
        services to welfare recipients with 
        severe impairment to employment, as 
        defined in Minnesota Statutes, section 
        268A.15, subdivision 1a.  Of this 
        appropriation, up to five percent is 
        for administrative costs.  This is a 
        one-time appropriation and may not be 
        added to the budget base in the 
        biennium ending June 30, 2003.  This 
        appropriation is from the state's 
        federal TANF block grant under Public 
        Law Number 104-193 to the commissioner 
        of human services, to be transferred to 
        the commissioner of economic security.  
        This appropriation is available until 
        June 30, 2001.  
        $825,000 the first year and $827,000 
        the second year are for employment 
        support services for persons with 
        mental illness authorized under 
        Minnesota Statutes, section 268A.13.  
        $250,000 the first year and $250,000 
        the second year are for a grant to the 
        Minnesota employment center for deaf 
        and hard-of-hearing people.  Of this 
        appropriation, $50,000 each year is a 
        one-time appropriation from the 
        workforce development fund.  It is the 
        intention of the legislature that base 
        funding for this program be $250,000 in 
        the 2002-2003 biennium.  
        In fiscal year 2000 and fiscal year 
        2001, $975,000 is to increase the 
        reimbursement rates for extended 
        employment services.  Effective for 
        services rendered on or after July 1, 
        1999, the commissioner shall increase 
        by ten percent all reimbursement rates 
        under Minnesota Rules, part 3300.2035, 
        subpart 6, item A, for extended 
        employment services for persons with 
        severe disabilities or related 
        conditions under Minnesota Statutes, 
        section 268A.15.  This amount is added 
        to the agency's budget base. 
        $126,000 the first year and $126,000 
        the second year are for a grant to 
        Advocating Change Together, Inc., 
        (ACT).  This appropriation is from the 
        workforce development fund.  The grant 
        must be used for the training of 
        individuals with developmental and 
        other mental health disabilities, the 
        maintenance of related data, or 
        technical assistance for work 
        advancement or additional workforce 
        training.  No part of this grant may be 
        applied to litigation costs, or used 
        for legal advocacy or legal assistance 
        purposes.  This is a one-time 
        appropriation and is available until 
        June 30, 2001.* (The preceding text 
        beginning "$126,000 the first year" was 
        vetoed by the governor.) 
        Subd. 3.  State Services for the Blind 
             6,114,000      4,817,000
        $1,400,000 the first year is 
        appropriated to convert the 
        communication center to digital 
        technology and move the radio talking 
        book program to a different frequency.  
        The funds are available only if matched 
        in cash on at least a dollar-for-dollar 
        basis from private sources.  This is a 
        one-time appropriation and is available 
        until June 30, 2001. 
        The appropriation in the second year is 
        not available until the commissioners 
        of finance and economic security have 
        reviewed the operation of the state 
        services for the blind, determined why 
        a budget deficiency occurred in fiscal 
        year 1999 and what steps should be 
        taken to prevent a future deficiency 
        and reported their findings to the 
        legislature. 
        Subd. 4.  Workforce Preparation 
            17,273,000     11,718,000
                      Summary by Fund
        General              11,221,000    10,666,000
        Workforce
        Development Fund      6,052,000     1,052,000
        $775,000 the first year and $775,000 
        the second year are for job training 
        programs under Minnesota Statutes, 
        sections 268.60 to 268.64.  This 
        appropriation is from the workforce 
        development fund.  
        $2,049,000 the first year and 
        $2,054,000 the second year are for 
        displaced homemaker programs under 
        Minnesota Statutes, section 268.96.  Of 
        this appropriation, $227,000 each year 
        is a one-time appropriation from the 
        workforce development fund.  The 
        commissioner shall prepare and report 
        to the legislature a plan for a sliding 
        scale fee structure for this program. 
        Of this amount, $100,000 the first year 
        and $100,000 the second year are for 
        one-time grants to the St. Paul 
        district 5 planning council.* (The 
        preceding sentence beginning "Of this 
        amount," was vetoed by the governor.)  
        These grants are to operate a community 
        work empowerment support group 
        demonstration project.  A project 
        consists of empowerment groups of 
        individuals that are in the process of 
        obtaining or have obtained jobs, 
        including those in the welfare-to-work 
        programs, or are working out problems 
        of attaining self-sufficiency.  The 
        groups must separately meet at least 
        monthly for at least two hours.  Each 
        group meeting must include empower 
        mentors whose responsibility will be to 
        conduct the meeting.  The sites will 
        report to the commissioner on a 
        semiannual basis regarding the progress 
        achieved at the meetings.  The purpose 
        of the group is to: 
        (1) share information among group 
        members as to the successes and 
        problems encountered in the 
        individual's employment goals; 
        (2) provide a forum for individuals 
        involved in moving to self-sufficiency 
        to share their experiences and 
        strategies and to support and empower 
        each other; and 
        (3) to provide feedback to the 
        commissioner concerning the best 
        strategies to achieve the empowerment 
        support group's objectives. 
        $5,000,000 the first year is a one-time 
        appropriation from the workforce 
        development fund to match available 
        United States Department of Labor 
        Welfare-to-Work funds.  The 
        commissioner shall explore sources of 
        noncash match for these funds.  To the 
        extent this appropriation is not needed 
        for these purposes, the balance is 
        available for the Welfare-to-Work 
        program.  
        $1,425,000 the first year and 
        $1,425,000 the second year are for 
        youth intervention programs under 
        Minnesota Statutes, section 268.30.  
        Funding from this appropriation may be 
        used to expand existing programs to 
        serve unmet needs and to create new 
        programs in underserved areas.  Of this 
        appropriation, $3,750 is for a grant to 
        the Minnesota Youth Intervention 
        Programs Association (YIPA) to provide 
        collaborative training and technical 
        assistance to community-based grantees 
        of the program. 
        $851,000 the first year and $852,000 
        the second year are for the Youthbuild 
        program under Minnesota Statutes, 
        sections 268.361 to 268.366.  Of this 
        amount, $100,000 in the first year and 
        $100,000 in the second year are 
        one-time appropriations from the 
        workforce development fund for the 
        YOUTHBUILD technical program under 
        Minnesota Statutes, section 268.368.  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. 
        $116,000 the first year and $116,000 
        the second year are appropriated for 
        youth violence prevention programs to 
        match the federal juvenile 
        accountability incentive block grant.  
        This is a one-time appropriation. 
        Notwithstanding Minnesota Statutes, 
        section 268.022, subdivision 2, the 
        commissioner of finance shall transfer 
        to the general fund from the dedicated 
        fund on June 25, 1999, $29,000,000 of 
        the money collected through the special 
        assessment established in Minnesota 
        Statutes, section 268.022, subdivision 
        1.  This paragraph is effective the day 
        following final enactment. 
        $572,000 in the first year is for 
        enterprise zone incentive grants under 
        Minnesota Statutes, section 469.305.  
        Subd. 5.  Workforce Exchange 
                50,000         50,000
        The commissioner of economic security 
        is directed to prepare a plan to reduce 
        the number of line managers and reduce 
        the costs of operation in workforce 
        centers.  The legislature finds it 
        unacceptable to have up to five 
        managers in individual workforce 
        centers. 
        $50,000 the first year and $50,000 the 
        second year are for asset preservation 
        and facility repair. 
        $348,625 the first year is for systems 
        development for electronic commerce to 
        improve communication with customers of 
        the job service and reemployment 
        insurance program.  In accordance with 
        Minnesota Statutes, section 268.194, 
        subdivision 5, this money is a one-time 
        appropriation from federal money made 
        available specifically for that purpose 
        under United States Code, title 42, 
        section 1103, also known as the "Reed 
        Act."  This appropriation is available 
        for the biennium ending June 30, 2001. 
        $2,000,000 the first year and 
        $2,000,000 the second year is for 
        systems development for electronic 
        commerce in the reemployment insurance 
        program to improve communication with 
        employers.  In accordance with 
        Minnesota Statutes, section 268.194, 
        subdivision 5, this money is a one-time 
        appropriation from federal money to be 
        made available specifically for that 
        purpose under United States Code, title 
        42, section 1103, also known as the 
        "Reed Act," and section 5403 of the 
        federal Balanced Budget Act of 1997.  
        Each annual appropriation is available 
        for the biennium ending June 30, 2001. 
        Sec. 5.  HOUSING FINANCE AGENCY       74,770,000     45,770,000
                      Summary by Fund
        General              70,770,000    43,270,000
        TANF                  4,000,000     2,500,000
        Subdivision 1.  Total Appropriation 
        The amounts that may be spent from this 
        appropriation for certain programs are 
        specified in the following subdivisions.
        This appropriation is for transfer to 
        the housing development fund for the 
        programs specified.  Except as 
        otherwise indicated, this transfer is 
        part of the agency's permanent budget 
        base. 
        Subd. 2.  Challenge Program 
        $20,000,000 is appropriated for 
        transfer to the housing development 
        fund for the economic development and 
        housing challenge program created by 
        Minnesota Statutes, section 462A.33.  
        This is a one-time appropriation and is 
        not added to the agency's permanent 
        base. 
        Subd. 3.  Rental Assistance for Mentally Ill 
        $1,700,000 the first year and 
        $1,700,000 the second year are for a 
        rental housing assistance program for 
        persons with a mental illness or 
        families with an adult member with a 
        mental illness under Minnesota 
        Statutes, section 462A.2097. 
        Subd. 4.  Family Homeless Prevention 
        $3,250,000 the first year and 
        $3,250,000 the second year is for the 
        family homeless prevention and 
        assistance program under Minnesota 
        Statutes, section 462A.204, and is 
        available until June 30, 2001.  Of this 
        amount, $1,875,000 the first year and 
        $375,000 the second year is from the 
        state's federal TANF block grant under 
        Title I of Public Law Number 104-193 to 
        the commissioner of human services, to 
        reimburse the housing development fund 
        for assistance under this program for 
        families receiving TANF assistance 
        under the MFIP program.  The 
        commissioner of human services shall 
        make monthly reimbursements to the 
        housing development fund.  The 
        commissioner of human services shall 
        not make any reimbursement which the 
        commissioner determines would be 
        subject to a penalty under Code of 
        Federal Regulations, section 262.1.  
        $100,000 of the total grants made to 
        Hennepin county from this appropriation 
        is for grants to organizations 
        providing case management for persons 
        that need assistance to rehabilitate 
        their rent history and find rental 
        housing.  Case management services 
        include, but are not limited to, 
        assisting tenants in correcting tenant 
        screening reports, providing intensive 
        training and certification for tenants, 
        creating a bonding program to encourage 
        landlords to accept high-risk tenants 
        with poor rent histories, paying 
        security deposits for high-risk 
        tenants, and agreeing to pay landlord 
        expenses for filing unlawful detainer 
        actions.  If the appropriation in 
        either year is insufficient, the 
        appropriation for the other year is 
        available.  It is the intention of the 
        legislature that the general fund base 
        funding to this program be $6,500,000 
        for the 2002-2003 biennium. 
        Subd. 5.  Mortgage Foreclosure
        Prevention
        $583,000 the first year and $583,000 
        the second year are for the mortgage 
        foreclosure prevention and assistance 
        program under Minnesota Statutes, 
        section 462A.207. 
        Subd. 6.  Rental Assistance for
        Family Stabilization 
        $2,125,000 the first year and 
        $2,125,000 the second year are 
        appropriated from the state's federal 
        TANF block grant under Title I of 
        Public Law Number 104-193 to the 
        commissioner of human services, to 
        reimburse the housing development fund 
        for rent subsidies provided to families 
        receiving TANF assistance from the MFIP 
        program under the rent assistance for 
        family stabilization program under 
        Minnesota Statutes, section 462A.205.  
        The commissioner of human services 
        shall make monthly reimbursements to 
        the housing development fund.  The 
        commissioner of human services shall 
        not make any reimbursement which the 
        commissioner determines would be 
        subject to a penalty under Code of 
        Federal Regulations, section 262.1.  If 
        the appropriation in either year is 
        insufficient, the appropriation for the 
        other year is available.  It is the 
        intention of the legislature that the 
        general fund base funding for this 
        program be $2,000,000 per year for the 
        2002-2003 biennium. 
        Subd. 7.  Housing Trust Fund
        $2,348,000 the first year and 
        $2,348,000 the second year are for the 
        housing trust fund to be deposited in 
        the housing trust fund account created 
        under Minnesota Statutes, section 
        462A.201, and used for the purposes 
        provided in that section.  Of this 
        amount, $550,000 each year must be used 
        for transitional housing. 
        Subd. 8.  Affordable Rental Investment Fund
        $21,493,000 the first year and 
        $21,493,000 the second year are for the 
        affordable rental investment fund 
        program under Minnesota Statutes, 
        section 462A.21, subdivision 8b.  Of 
        this amount, $15,000,000 the first year 
        and $15,000,000 the second year are to 
        finance the acquisition, 
        rehabilitation, and debt restructuring 
        of federally assisted rental property 
        and for making equity take-out loans 
        under Minnesota Statutes, section 
        462A.05, subdivision 39.  The owner of 
        the federally assisted rental property 
        must agree to participate in the 
        applicable federally assisted housing 
        program and to extend any existing 
        low-income affordability restrictions 
        on the housing for the maximum term 
        permitted.  The owner must also enter 
        into an agreement that gives local 
        units of government, housing and 
        redevelopment authorities, and 
        nonprofit housing organizations the 
        right of first refusal if the rental 
        property is offered for sale.  Priority 
        must be given among comparable 
        properties to properties with the 
        longest remaining term under an 
        agreement for federal rental 
        assistance.  Priority must also be 
        given among comparable rental housing 
        developments to developments that are 
        or will be owned by local government 
        units, a housing and redevelopment 
        authority, or a nonprofit housing 
        organization.  Of this appropriation, 
        $5,000,000 in each year is a one-time 
        appropriation and is not added to the 
        agency's permanent base.  
        To the extent practicable, this 
        appropriation shall be used so that an 
        approximately equal number of housing 
        units are financed in the metropolitan 
        area, as defined in Minnesota Statutes, 
        section 473.121, subdivision 2, and in 
        the nonmetropolitan area. 
        Subd. 9.  Urban Indian Housing Program
        No appropriation is made for the urban 
        Indian housing program under Minnesota 
        Statutes, section 462A.07, subdivision 
        15.  It is the intention of the 
        legislature that the agency will use 
        accumulated reserves to fund this 
        program in the 2000-2001 biennium.  The 
        base of $187,000 per year is intended 
        to be restored in fiscal year 2002 and 
        beyond. 
        Subd. 10.  Tribal Indian Housing Program
        $1,683,000 the first year and 
        $1,683,000 the second year are for the 
        tribal Indian housing program under 
        Minnesota Statutes, section 462A.07, 
        subdivision 14.  
        Subd. 11.  Rural and Urban Homesteading
        $186,000 the first year and $186,000 
        the second year are for the Minnesota 
        rural and urban homesteading program 
        under Minnesota Statutes, section 
        462A.057.  
        Subd. 12.  Capacity Building Grants 
        $240,000 the first year and $240,000 
        the second year are for nonprofit 
        capacity building grants under 
        Minnesota Statutes, section 462A.21, 
        subdivision 3b.  
        Subd. 13.  Community Rehabilitation Program 
        $6,175,000 the first year and 
        $6,175,000 the second year are for the 
        community rehabilitation program under 
        Minnesota Statutes, section 462A.206.  
        Of this appropriation, $1,000,000 in 
        each year is a one-time appropriation 
        and is not added to the agency's budget 
        base.  
        Priority will be given to a proposal 
        from a community in which the existing 
        housing is predominantly manufactured 
        housing and the proposal seeks funds to 
        revitalize the community through the 
        use of improved manufactured housing 
        and to leverage available federal funds.
        Of this appropriation, $50,000 the 
        first year and $50,000 the second year 
        must be used to make grants to a 
        statewide organization that advocates 
        on behalf of persons with mental 
        retardation or related conditions.  The 
        grants must be used to provide entry 
        cost assistance, prepurchase and 
        postpurchase counseling to persons with 
        various disabilities who are 
        participating in the Fannie Mae 
        Homechoice demonstration project and 
        other projects designed to encourage 
        home ownership among persons with 
        disabilities.  
        Of this appropriation, $275,000 the 
        first year and $275,000 the second year 
        are for full-cycle home ownership and 
        purchase-rehabilitation lending 
        initiatives under Minnesota Statutes, 
        section 462A.21, subdivision 26. 
        Subd. 14.  Housing Rehabilitation
        and Accessibility
        $4,287,000 the first year and 
        $4,287,000 the second year are for the 
        housing rehabilitation and 
        accessibility program under Minnesota 
        Statutes, section 462A.05, subdivisions 
        14a and 15a. 
        Subd. 15.  Home Ownership
        Assistance Fund
        $900,000 the first year and $900,000 
        the second year are for the home 
        ownership assistance fund under 
        Minnesota Statutes, section 462A.21, 
        subdivision 8.  
        Subd. 16.  Employer Matching Grants
        $800,000 in the first year and $800,000 
        in the second year are for the employer 
        matching grant program under Minnesota 
        Statutes, section 462A.2092.  
        Subd. 17.  School Stability Project 
        $1,000,000 the first year is for the 
        school stability project under 
        Minnesota Statutes, section 462A.204, 
        subdivision 8.  This is a one-time 
        appropriation and is not added to the 
        agency's permanent base. 
        Subd. 18.  Innovative and Inclusionary
        Housing Program 
        $8,000,000 the first year is for 
        innovative and inclusionary housing 
        programs.  $4,000,000 of this 
        appropriation is for the 
        nonmetropolitan innovative and 
        inclusionary housing program under 
        Minnesota Statutes, section 462A.2093.  
        $4,000,000 of this appropriation is for 
        transfer to the metropolitan council 
        for deposit in the inclusionary housing 
        account created in Minnesota Statutes, 
        section 473.251.  The metropolitan 
        council may use this transfer only for 
        projects that are consistent with 
        Minnesota Statutes, section 473.255.  
        This is a one-time appropriation and is 
        not added to the agency's permanent 
        base. 
        Subd. 19.  Cancellations 
        The unobligated and unencumbered 
        balance in the contract for deed 
        guarantee account under Minnesota 
        Statutes, section 462A.2091 is 
        transferred to the full cycle 
        homeownership services program under 
        section 462A.209. 
        The unobligated and unencumbered 
        balance appropriated to the advisory 
        task force on lead hazard reduction 
        established under Laws 1997, chapter 
        200, article 4, section 1, is 
        transferred to the housing 
        rehabilitation and accessibility 
        program under Minnesota Statutes, 
        section 462A.05, subdivisions 14a and 
        15a, for use in the emergency loan 
        fund.  Priority for the use of these 
        funds shall be given to emergency loans 
        and grants for lead hazard reduction. 
        The unobligated and unencumbered 
        balance appropriated to the community 
        rehabilitation fund account under Laws 
        1997, chapter 200, article 1, section 
        6, for grants to acquire, demolish, and 
        remove substandard multiple-unit 
        residential property or acquire, 
        rehabilitate, and reconfigure 
        multiple-unit residential rental 
        property is transferred on July 1, 
        2000, to the affordable rental 
        investment fund program under Minnesota 
        Statutes, section 462A.21, subdivision 
        8b. 
        Sec. 6.  COMMERCE 
        Subdivision 1.  Total 
        Appropriation                         18,927,000     17,460,000
                      Summary by Fund
        General              17,245,000    15,831,000
        Petro Cleanup         1,015,000     1,045,000 
        Workers'
        Compensation            567,000       584,000
        Special Revenue         100,000       -0-  
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Financial Examinations 
             3,963,000      4,052,000
        Subd. 3.  Registration and Insurance 
             4,916,000      4,934,000
                      Summary by Fund
        General               4,249,000     4,350,000
        Workers' 
        Compensation            567,000       584,000
        Special Revenue         100,000       -0-
        $100,000 the first year is from the 
        real estate education, research, and 
        recovery account for the purposes of an 
        educational campaign aimed at stopping 
        the fraudulent practice known commonly 
        as mortgage flipping.  The department 
        is directed to develop a public 
        awareness campaign targeted to the 
        communities hardest hit by this 
        practice.  The department is further 
        directed to solicit contributions to 
        this campaign from trade organizations, 
        banks, mortgage companies, and 
        foundations to supplement the program.  
        The materials shall be prepared in 
        multiple languages as necessary.  The 
        appropriation is available until 
        expended and any contributions received 
        are available for the educational 
        campaign described in this section.  
        Subd. 4.  Enforcement and Licensing 
             4,355,000      4,296,000
        Subd. 5.  Petroleum Tank Release 
        Cleanup Board 
             1,015,000      1,045,000
        This appropriation is from the 
        petroleum tank release cleanup fund. 
        Subd. 6.  Administrative Services 
             4,678,000      3,133,000 
        $1,400,000 the first year is a one-time 
        appropriation to redesign and 
        re-engineer the department's data base. 
        $90,000 the first year is a one-time 
        appropriation for expanding website 
        capabilities.  
        Sec. 7.  BOARD OF ACCOUNTANCY            607,000        624,000
        Sec. 8.  BOARD OF ARCHITECTURE,
        ENGINEERING, LAND SURVEYING, 
        LANDSCAPE ARCHITECTURE, AND 
        INTERIOR DESIGN                          770,000        794,000 
        $21,000 is appropriated from the 
        general fund and is added to the 
        appropriations in Laws 1997, chapter 
        200, section 9, for board operations.  
        This added appropriation is effective 
        the day following final enactment. 
        Sec. 9.  BOARD OF BARBER   
        EXAMINERS                                144,000        149,000
        Sec. 10.  BOARD OF BOXING                 84,000          -0-
        Sec. 11.  LABOR AND INDUSTRY 
        Subdivision 1.  Total             
        Appropriation                         24,608,000     24,962,000
                      Summary by Fund
        General               3,736,000     3,913,000
        Workers'     
        Compensation         20,107,000    20,270,000
        Workforce 
        Development Fund        765,000       779,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Workers' Compensation
            10,586,000     10,833,000
        This appropriation is from the workers' 
        compensation fund. 
        $125,000 the first year and $125,000 
        the second year is for grants to the 
        Vinland Center for rehabilitation 
        service. 
        Subd. 3.  Workplace Services 
             7,476,000      7,759,000
                      Summary by Fund
        General               2,672,000     2,844,000
        Workers'
        Compensation          4,039,000     4,136,000
        Workforce 
        Development Fund        765,000       779,000 
        $204,000 the first year and $204,000 
        the second year are for labor education 
        and advancement program grants.  The 
        commissioner must report to the 
        legislature by February 15, 2000, on 
        the success of the program in placing 
        and retaining participants.  This 
        appropriation is from the workforce 
        development fund. 
        Subd. 4.  General Support 
             6,546,000      6,370,000
                      Summary by Fund
        General               1,064,000     1,069,000
        Workers'     
        Compensation          5,482,000     5,301,000
        Sec. 12.  BUREAU OF MEDIATION SERVICES 
        Subdivision 1.  Total
        Appropriation                          2,130,000      2,180,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Mediation Services 
             1,712,000      1,759,000
        Subd. 3.  Labor Management Cooperation Grants
               302,000        302,000
        $302,000 each year is for grants to 
        area labor-management committees.  Any 
        unencumbered balance remaining at the 
        end of the first year does not cancel 
        but is available for the second year. 
        Subd. 4.  Office of Dispute Resolution
               116,000        119,000
        Sec. 13.  WORKERS' COMPENSATION
        COURT OF APPEALS                       1,543,000      1,585,000
        This appropriation is from the workers' 
        compensation fund. 
        Sec. 14.  LABOR INTERPRETIVE 
        CENTER                                   200,000        200,000
        It is the intention of the legislature 
        that the Center will increase the 
        nonstate share of its operating 
        budget.* (The preceding section was 
        vetoed by the governor.) 
        Sec. 15.  PUBLIC UTILITIES  
        COMMISSION                             3,781,000      3,880,000
        Sec. 16.  DEPARTMENT OF PUBLIC SERVICE 
        Subdivision 1.  Total       
        Appropriation                          9,604,000      9,814,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Telecommunications
               962,000        980,000
        Subd. 3.  Weights and Measures 
             3,138,000      3,207,000
        Subd. 4.  Information and Operations 
        Management 
             1,584,000      1,627,000
        Subd. 5.  Energy 
             3,920,000      4,000,000
        $588,000 each year is for transfer to 
        the energy and conservation account 
        established in Minnesota Statutes, 
        section 216B.241, subdivision 2a, for 
        programs administered by the 
        commissioner of children, families, and 
        learning to improve the energy 
        efficiency of residential oil-fired 
        heating plants in low-income households 
        and, when necessary, to provide 
        weatherization services to the homes. 
        Sec. 17.  MINNESOTA HISTORICAL 
        SOCIETY 
        Subdivision 1.  Total       
        Appropriation                         24,934,000     27,794,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Education and     
        Outreach                              12,669,000     12,812,000
        $80,000 the first year is for partial 
        operating expenses at the Northwest Fur 
        Company Post. 
        Subd. 3.  Preservation and Access
             9,318,000      9,479,000
        $25,000 the first year and $25,000 the 
        second year are for historic site 
        repair and maintenance.  
        Subd. 4.  Information Program 
        Delivery 
             2,341,000      2,155,000
        Subd. 5.  Fiscal Agent
        General                   606,000        348,000
        (a) Sibley House Association 
                88,000         88,000
        This appropriation is available for 
        operation and maintenance of the Sibley 
        House and related buildings on the Old 
        Mendota state historic site operated by 
        the Sibley House Association.  
        (b) Minnesota International Center 
                50,000         50,000
        (c) Minnesota Air National   
        Guard Museum 
                19,000        -0-
        (d) Institute for Learning and
        Teaching - Project 120
               110,000        110,000 
        (e) Minnesota Military Museum
                29,000        -0-
        (f) Farmamerica
               100,000        100,000 
        Notwithstanding any other law, this 
        appropriation may be used for 
        operations. 
        (g) Winona County Historical Society
                10,000        -0-
        This is a one-time appropriation and is 
        not added to the agency's budget base. 
        (h) Historic Building Relocation
                100,000                  
        $100,000 is for a grant to the city of 
        Maplewood for the costs of acquiring 
        land, developing a site, relocating 
        certain buildings onto the site, and 
        renovating the buildings.  The 
        buildings to be acquired, relocated, 
        and renovated are the home, barn, 
        granary, and windmill on the Bruentrup 
        farm site, the last working farm in 
        Ramsey county.  The grant must not be 
        made until the director of the 
        Minnesota historical society has 
        determined that an equal amount in cash 
        or in-kind has been committed from 
        nonstate sources and the city of 
        Maplewood has passed a resolution 
        approving the project.  The 
        appropriation is available the day 
        following final enactment and until 
        June 30, 2000.  
        (i) Fishing Museum
                  50,000                 
        $50,000 is for a grant to the city of 
        Little Falls for planning in connection 
        with the establishment of a museum of 
        fishing-related artifacts, equipment, 
        and memorabilia and an environmental 
        education center.  This appropriation 
        is available until spent.  This is a 
        one-time appropriation and is not added 
        to the agency's budget base. 
        (j) $50,000 is to refurbish the Fridley 
        historical museum in Fridley.  This is 
        a one-time appropriation and is not 
        added to the agency's budget base. 
        (k) Balances Forward
        Any unencumbered balance remaining in 
        this subdivision the first year does 
        not cancel but is available for the 
        second year of the biennium. 
        Sec. 18.  MINNESOTA MUNICIPAL
        BOARD                                    162,000           -0- 
        Sec. 19.  COUNCIL ON BLACK
        MINNESOTANS                              320,000        329,000
        $25,000 each year is for expenses 
        associated with the Dr. Martin Luther 
        King Day activities. 
        Sec. 20.  COUNCIL ON 
        CHICANO-LATINO AFFAIRS                   314,000        324,000
        Sec. 21.  COUNCIL ON
        ASIAN-PACIFIC MINNESOTANS                277,000        286,000
        Sec. 22.  INDIAN AFFAIRS
        COUNCIL                                  551,000        567,000
        Sec. 23.  OFFICE OF STRATEGIC AND
        LONG-RANGE PLANNING                      161,000        327,000 
        To assume administrative 
        responsibilities resulting from the 
        sunset of the municipal board under 
        Laws 1997, chapter 202, article 5, 
        section 8. 
        Sec. 24.  MILITARY AFFAIRS               50,000        50,000 
        $50,000 the first year and $50,000 the 
        second year is for the purpose of 
        coordinating agreements with community 
        empowerment support groups for the use 
        of the military training center and 
        related personnel at Camp Ripley for 
        providing what are commonly referred to 
        as "soft skill" job skills training to 
        people, including those who are 
        expected to make the transition from 
        welfare to work.  "Soft skills" include 
        such things as being punctual and 
        following directions.  The adjutant 
        general may enter into contracts with 
        other state departments and local 
        agencies for the purpose of using the 
        facilities at Camp Ripley and staff to 
        provide that training.  This is a 
        one-time appropriation and may not be 
        added to the budget base for the 
        biennium ending June 30, 2001.  
        Sec. 25.  ADMINISTRATION                 20,000           -0-
        To the commissioner of administration 
        for the low-income energy task force 
        study and report required by article 2, 
        section 75. 
                                   ARTICLE 2 
                                 MISCELLANEOUS 
           Section 1.  Minnesota Statutes 1998, section 45.0295, is 
        amended to read: 
           45.0295 [FEES.] 
           (a) The following fees shall be paid to the commissioner: 
           (1) for a letter of certification of licensure, $20; 
           (2) for a license history, $20; 
           (3) for a duplicate license, $10; 
           (4) for a change of name or address, $10; 
           (5) for a temporary license, $10; 
           (6) for each hour or fraction of one hour of course 
        approval for continuing education sought, $10; and 
           (7) (2) for each continuing education course coordinator 
        approval, $100. 
           (b) All fees paid to the commissioner under this section 
        are nonrefundable, except that an overpayment of a fee shall be 
        returned upon proper application. 
           Sec. 2.  Minnesota Statutes 1998, section 53A.03, is 
        amended to read: 
           53A.03 [APPLICATION FOR LICENSE; FEES.] 
           (a) An application for a license must be in writing, under 
        oath, and in the form prescribed and furnished by the 
        commissioner and must contain the following: 
           (1) the full name and address (both of residence and place 
        of business) of the applicant, and if the applicant is a 
        partnership or association, of every member, and the name and 
        business address if the applicant is a corporation; 
           (2) the county and municipality, with street and number, if 
        any, of all currency exchange locations operated by the 
        applicant; and 
           (3) the applicant's occupation or profession, for the ten 
        years immediately preceding the application; present or previous 
        connection with any other currency exchange in this or any other 
        state; whether the applicant has ever been convicted of any 
        crime; and the nature of the applicant's occupancy of the 
        premises to be licensed; and if the applicant is a partnership 
        or a corporation, the information specified in this paragraph 
        must be supplied for each partner and each officer and director 
        of the corporation.  If the applicant is a partnership or a 
        nonpublicly held corporation, the information specified in this 
        paragraph must be required of each partner and each officer, 
        director, and stockholders owning in excess of ten percent of 
        the corporate stock of the corporation.  
           (b) The application shall be accompanied by a nonrefundable 
        fee of $250 $1,000 for the review of the initial application.  
        Upon approval by the commissioner, an additional license fee 
        of $50 $500 must be paid by the applicant as an annual license 
        fee for the remainder of the calendar year.  An annual license 
        fee of $50 $500 is due for each subsequent calendar year of 
        operation upon submission of a license renewal application on or 
        before September 1.  Fees must be deposited in the state 
        treasury and credited to the general fund.  Upon payment of the 
        required annual license fee, the commissioner shall issue a 
        license for the year beginning January 1. 
           (c) The commissioner shall require the applicant to submit 
        to a background investigation conducted by the bureau of 
        criminal apprehension as a condition of licensure.  As part of 
        the background investigation, the bureau of criminal 
        apprehension shall conduct criminal history checks of Minnesota 
        records and is authorized to exchange fingerprints with the 
        Federal Bureau of Investigation for the purpose of a criminal 
        background check of the national files.  The cost of the 
        investigation must be paid by the applicant. 
           (d) For purposes of this section, "applicant" includes an 
        employee who exercises management or policy control over the 
        company, a director, an officer, a limited or general partner, a 
        manager, or a shareholder holding more than ten percent of the 
        outstanding stock of the corporation. 
           Sec. 3.  Minnesota Statutes 1998, section 53A.05, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [NAME OR LOCATION.] If a licensee proposes 
        to change the name or location of any or all of its currency 
        exchanges, the licensee shall file an application for approval 
        of the change with the commissioner.  The commissioner shall not 
        approve a change of location if the requirements of sections 
        53A.02, subdivision 2, and 53A.04 have not been satisfied.  If 
        the change is approved by the commissioner, the commissioner 
        shall issue an amended license in the licensee's new name or 
        location.  A $50 $100 fee must be paid for the amended license. 
           Sec. 4.  Minnesota Statutes 1998, section 60A.14, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FEES OTHER THAN EXAMINATION FEES.] In 
        addition to the fees and charges provided for examinations, the 
        following fees must be paid to the commissioner for deposit in 
        the general fund: 
           (a) by township mutual fire insurance companies: 
           (1) for filing certificate of incorporation $25 and 
        amendments thereto, $10; 
           (2) for filing annual statements, $15; 
           (3) for each annual certificate of authority, $15; 
           (4) for filing bylaws $25 and amendments thereto, $10. 
           (b) by other domestic and foreign companies including 
        fraternals and reciprocal exchanges: 
           (1) for filing certified copy of certificate of articles of 
        incorporation, $100; 
           (2) for filing annual statement, $225; 
           (3) for filing certified copy of amendment to certificate 
        or articles of incorporation, $100; 
           (4) for filing bylaws, $75 or amendments thereto, $75; 
           (5) for each company's certificate of authority, $575, 
        annually. 
           (c) the following general fees apply: 
           (1) for each certificate, including certified copy of 
        certificate of authority, renewal, valuation of life policies, 
        corporate condition or qualification, $25; 
           (2) for each copy of paper on file in the commissioner's 
        office 50 cents per page, and $2.50 for certifying the same; 
           (3) for license to procure insurance in unadmitted foreign 
        companies, $575; 
           (4) for valuing the policies of life insurance companies, 
        one cent per $1,000 of insurance so valued, provided that the 
        fee shall not exceed $13,000 per year for any company.  The 
        commissioner may, in lieu of a valuation of the policies of any 
        foreign life insurance company admitted, or applying for 
        admission, to do business in this state, accept a certificate of 
        valuation from the company's own actuary or from the 
        commissioner of insurance of the state or territory in which the 
        company is domiciled; 
           (5) for receiving and filing certificates of policies by 
        the company's actuary, or by the commissioner of insurance of 
        any other state or territory, $50; 
           (6) for each appointment of an agent filed with the 
        commissioner, a domestic insurer shall remit $5 and all other 
        insurers shall remit $3; 
           (7) for filing forms and rates, $50 $75 per filing; 
           (8) for annual renewal of surplus lines insurer license, 
        $300. 
           The commissioner shall adopt rules to define filings that 
        are subject to a fee. 
           Sec. 5.  Minnesota Statutes 1998, section 60A.23, 
        subdivision 8, is amended to read: 
           Subd. 8.  [SELF-INSURANCE OR INSURANCE PLAN ADMINISTRATORS 
        WHO ARE VENDORS OF RISK MANAGEMENT SERVICES.] (1)  [SCOPE.] This 
        subdivision applies to any vendor of risk management services 
        and to any entity which administers, for compensation, a 
        self-insurance or insurance plan.  This subdivision does not 
        apply (a) to an insurance company authorized to transact 
        insurance in this state, as defined by section 60A.06, 
        subdivision 1, clauses (4) and (5); (b) to a service plan 
        corporation, as defined by section 62C.02, subdivision 6; (c) to 
        a health maintenance organization, as defined by section 62D.02, 
        subdivision 4; (d) to an employer directly operating a 
        self-insurance plan for its employees' benefits; (e) to an 
        entity which administers a program of health benefits 
        established pursuant to a collective bargaining agreement 
        between an employer, or group or association of employers, and a 
        union or unions; or (f) to an entity which administers a 
        self-insurance or insurance plan if a licensed Minnesota insurer 
        is providing insurance to the plan and if the licensed insurer 
        has appointed the entity administering the plan as one of its 
        licensed agents within this state. 
           (2)  [DEFINITIONS.] For purposes of this subdivision the 
        following terms have the meanings given them. 
           (a) "Administering a self-insurance or insurance plan" 
        means (i) processing, reviewing or paying claims, (ii) 
        establishing or operating funds and accounts, or (iii) otherwise 
        providing necessary administrative services in connection with 
        the operation of a self-insurance or insurance plan. 
           (b) "Employer" means an employer, as defined by section 
        62E.02, subdivision 2. 
           (c) "Entity" means any association, corporation, 
        partnership, sole proprietorship, trust, or other business 
        entity engaged in or transacting business in this state. 
           (d) "Self-insurance or insurance plan" means a plan 
        providing life, medical or hospital care, accident, sickness or 
        disability insurance for the benefit of employees or members of 
        an association, or a plan providing liability coverage for any 
        other risk or hazard, which is or is not directly insured or 
        provided by a licensed insurer, service plan corporation, or 
        health maintenance organization. 
           (e) "Vendor of risk management services" means an entity 
        providing for compensation actuarial, financial management, 
        accounting, legal or other services for the purpose of designing 
        and establishing a self-insurance or insurance plan for an 
        employer. 
           (3)  [LICENSE.] No vendor of risk management services or 
        entity administering a self-insurance or insurance plan may 
        transact this business in this state unless it is licensed to do 
        so by the commissioner.  An applicant for a license shall state 
        in writing the type of activities it seeks authorization to 
        engage in and the type of services it seeks authorization to 
        provide.  The license may be granted only when the commissioner 
        is satisfied that the entity possesses the necessary 
        organization, background, expertise, and financial integrity to 
        supply the services sought to be offered.  The commissioner may 
        issue a license subject to restrictions or limitations upon the 
        authorization, including the type of services which may be 
        supplied or the activities which may be engaged in.  The license 
        fee is $500 $1,000 for the initial application and $500 $1,000 
        for each two-year renewal.  All licenses are for a period of two 
        years. 
           (4)  [REGULATORY RESTRICTIONS; POWERS OF THE COMMISSIONER.] 
        To assure that self-insurance or insurance plans are financially 
        solvent, are administered in a fair and equitable fashion, and 
        are processing claims and paying benefits in a prompt, fair, and 
        honest manner, vendors of risk management services and entities 
        administering insurance or self-insurance plans are subject to 
        the supervision and examination by the commissioner.  Vendors of 
        risk management services, entities administering insurance or 
        self-insurance plans, and insurance or self-insurance plans 
        established or operated by them are subject to the trade 
        practice requirements of sections 72A.19 to 72A.30.  In lieu of 
        an unlimited guarantee from a parent corporation for a vendor of 
        risk management services or an entity administering insurance or 
        self-insurance plans, the commissioner may accept a surety bond 
        in a form satisfactory to the commissioner in an amount equal to 
        120 percent of the total amount of claims handled by the 
        applicant in the prior year.  If at any time the total amount of 
        claims handled during a year exceeds the amount upon which the 
        bond was calculated, the administrator shall immediately notify 
        the commissioner.  The commissioner may require that the bond be 
        increased accordingly. 
           (5)  [RULEMAKING AUTHORITY.] To carry out the purposes of 
        this subdivision, the commissioner may adopt rules pursuant to 
        sections 14.001 to 14.69.  These rules may: 
           (a) establish reporting requirements for administrators of 
        insurance or self-insurance plans; 
           (b) establish standards and guidelines to assure the 
        adequacy of financing, reinsuring, and administration of 
        insurance or self-insurance plans; 
           (c) establish bonding requirements or other provisions 
        assuring the financial integrity of entities administering 
        insurance or self-insurance plans; or 
           (d) establish other reasonable requirements to further the 
        purposes of this subdivision. 
           Sec. 6.  Minnesota Statutes 1998, section 60A.71, 
        subdivision 7, is amended to read: 
           Subd. 7.  [FEES.] Each applicant for a reinsurance 
        intermediary license shall pay to the commissioner a fee of 
        $160 $200 for an initial two-year license and a fee of $120 $150 
        for each renewal.  Applications shall be submitted on forms 
        prescribed by the commissioner. 
           Sec. 7.  Minnesota Statutes 1998, section 60K.06, is 
        amended to read: 
           60K.06 [FEES.] 
           Subdivision 1.  [RENEWAL FEES.] (a) Each agent licensed 
        pursuant to section 60K.03 shall pay in accordance with the 
        procedure adopted by the commissioner a renewal fee as 
        prescribed by subdivision 2.  
           (b) Every agent, corporation, limited liability company, 
        and partnership renewal license is valid for a period of 24 
        months.  The commissioner may stagger the implementation of the 
        24-month licensing program so that approximately one-half of the 
        licenses will expire on October 31 of each even-numbered year 
        and the other half on October 31 of each odd-numbered year. 
        Those licensees who will receive a 12-month license on November 
        1, 1994, because of the staggered implementation schedule, will 
        pay for the license a fee reduced by an amount equal to one-half 
        the fee for renewal of the license. 
           (c) Persons whose applications have been properly and 
        timely filed who have not received notice of denial of renewal 
        are approved for renewal and may continue to transact business 
        whether or not the renewed license has been received on or 
        before November 1.  Applications for renewal of a license are 
        timely filed if received by the commissioner on or before 
        October 15 of the year due, on forms duly executed and 
        accompanied by appropriate fees.  An application mailed is 
        considered timely filed if addressed to the commissioner, with 
        proper postage, and postmarked by October 15.  
           Subd. 2.  [LICENSING FEES.] (a) In addition to the fees and 
        charges provided for examinations, each agent licensed pursuant 
        to section 60K.03 shall pay to the commissioner: 
           (1) a fee of $60 $80 per license for an initial license 
        issued to an individual agent, and a fee of $60 $80 for each 
        renewal; 
           (2) a fee of $160 $200 for an initial license issued to a 
        partnership, limited liability company, or corporation, and a 
        fee of $120 $150 for each renewal; 
           (3) a fee of $75 for an initial amendment (variable 
        annuity) to a license, and a fee of $50 for each renewal; and 
           (4) a fee of $500 for an initial surplus lines agent's 
        license, and a fee of $500 for each renewal. 
           (b) Persons whose applications have been properly and 
        timely filed who have not received notice of denial of renewal 
        are approved for renewal and may continue to transact business 
        whether or not the renewed license has been received on or 
        before November 1 of the renewal year.  Applications for renewal 
        of a license are timely filed if received by the commissioner on 
        or before the 15th day preceding the license renewal date of the 
        applicant on forms duly executed and accompanied by appropriate 
        fees.  An application mailed is considered timely filed if 
        addressed to the commissioner, with proper postage, and 
        postmarked on or before the 15th day preceding the licensing 
        renewal date of the applicant. 
           (c) Initial licenses issued under this section must be 
        valid for a period not to exceed two years.  The commissioner 
        shall assign an expiration date to each initial license so that 
        approximately one-half of all licenses expire each year.  Each 
        initial license must expire on October 31 of the expiration year 
        assigned by the commissioner. 
           (d) All fees shall be retained by the commissioner and are 
        nonreturnable, except that an overpayment of any fee must be 
        refunded upon proper application. 
           Subd. 3.  [INITIAL LICENSE EXPIRATION; FEE REDUCTION.] If 
        an initial license issued under subdivision 2, paragraph (a), 
        expires less than 12 months after issuance, the license fee must 
        be reduced by an amount equal to one-half the fee for a renewal 
        of the license. 
           Sec. 8.  Minnesota Statutes 1998, section 65B.48, 
        subdivision 3, is amended to read: 
           Subd. 3.  Self-insurance, subject to approval of the 
        commissioner, is effected by filing with the commissioner in 
        satisfactory form: 
           (1) a continuing undertaking by the owner or other 
        appropriate person to pay tort liabilities or basic economic 
        loss benefits, or both, and to perform all other obligations 
        imposed by sections 65B.41 to 65B.71; 
           (2) evidence that appropriate provision exists for prompt 
        administration of all claims, benefits, and obligations provided 
        by sections 65B.41 to 65B.71; 
           (3) evidence that reliable financial arrangements, 
        deposits, or commitments exist providing assurance, 
        substantially equivalent to that afforded by a policy of 
        insurance complying with sections 65B.41 to 65B.71, for payment 
        of tort liabilities, basic economic loss benefits, and all other 
        obligations imposed by sections 65B.41 to 65B.71; and 
           (4) a nonrefundable initial application fee of $500 $1,500 
        and an annual renewal fee of $100 $400 for political 
        subdivisions and $250 $500 for nonpolitical entities.  
           Sec. 9.  Minnesota Statutes 1998, section 70A.14, 
        subdivision 4, is amended to read: 
           Subd. 4.  [DURATION.] Licenses issued pursuant to this 
        section shall remain in effect until the licensee withdraws from 
        the state or until the license is suspended or revoked.  The fee 
        for each license shall be $1,000 $3,000, payable every three 
        years. 
           Sec. 10.  Minnesota Statutes 1998, section 72B.04, 
        subdivision 10, is amended to read: 
           Subd. 10.  [FEES.] A fee of $40 $80 is imposed for each 
        initial license or temporary permit and $25 $80 for each renewal 
        thereof or amendment thereto.  A fee of $20 is imposed for the 
        registration of each nonlicensed adjuster who is required to 
        register under section 72B.06.  All fees shall be transmitted to 
        the commissioner and shall be payable to the state treasurer.  
        If a fee is paid for an examination and if within one year from 
        the date of that payment no written request for a refund is 
        received by the commissioner or the examination for which the 
        fee was paid is not taken, the fee is forfeited to the state of 
        Minnesota. 
           Sec. 11.  Minnesota Statutes 1998, section 79.255, 
        subdivision 10, is amended to read: 
           Subd. 10.  [FEE.] A registration or exemption certificate 
        fee of $50 $100 shall be paid. 
           Sec. 12.  Minnesota Statutes 1998, section 82A.08, 
        subdivision 2, is amended to read: 
           Subd. 2.  [FEE.] Every annual report filed pursuant to this 
        section shall be accompanied by a fee of $100 $500. 
           Sec. 13.  Minnesota Statutes 1998, section 82A.16, 
        subdivision 2, is amended to read: 
           Subd. 2.  [FEE AND CONTENTS.] A salesperson or broker may 
        apply for a license by filing a fee of $25 $50 and an 
        application with the commissioner which includes the following 
        information: 
           (1) the applicant's name, age, residence address, and, in 
        the case of a salesperson, the name and place of business of the 
        membership camping operator or broker on whose behalf the 
        salesperson will be acting; 
           (2) the applicant's date and place of birth; 
           (3) a statement whether or not the applicant within the 
        past ten years has been convicted of a misdemeanor or felony 
        involving theft, fraud, or dishonesty or whether or not the 
        applicant within the past ten years has been enjoined from, had 
        any civil penalty assessed for, or been found to have engaged in 
        any violation of any securities, land sales, camping, or 
        consumer protection statutes; 
           (4) a statement whether or not the applicant is named as a 
        defendant in a pending criminal indictment or proceeding 
        involving fraud, theft, or dishonesty or is a defendant in a 
        pending lawsuit arising out of alleged violations of securities, 
        land sales, camping, or consumer protection statutes.  A copy of 
        the charge, complaint, or lawsuit shall be provided to the 
        commissioner; 
           (5) a statement describing the applicant's employment 
        history for the past five years and whether or not any 
        termination of employment during the last five years was 
        occasioned by a theft, fraud, or act of dishonesty; 
           (6) an affidavit certifying that the applicant is 
        knowledgeable concerning the provisions of this section and 
        sections 82A.05, 82A.13, and 82A.14, and any rules adopted under 
        those sections; 
           (7) a statement whether or not the applicant has ever been 
        licensed by this state or its political subdivisions to engage 
        in any other business or profession; whether any such license 
        has been denied, suspended, or revoked and, if so, the 
        circumstances of the denial, suspension, or revocation; 
           (8) such other information as the commissioner may 
        reasonably deem necessary to administer the provisions of 
        sections 82A.01 to 82A.26, by rule or order. 
           Sec. 14.  Minnesota Statutes 1998, section 82A.16, 
        subdivision 6, is amended to read: 
           Subd. 6.  [RENEWAL.] The license of a salesperson and 
        broker shall be renewed annually by the filing of a form 
        prescribed by the commissioner and payment of a fee of $10 $25. 
           Sec. 15.  [82B.201] [CRIMINAL PENALTY.] 
           A person is guilty of a gross misdemeanor and may be 
        sentenced to imprisonment for not more than one year or to 
        payment of a fine of not more than $3,000, or both, if the 
        person: 
           (1) violates section 82B.20, subdivision 2, clause (4); 
           (2) performs unlicensed activities, if a license is 
        required under this chapter; or 
           (3) violates any order issued by the commissioner related 
        to conduct prohibited by clause (1). 
           Sec. 16.  [116J.036] [DEPARTMENT MAY NOT OPERATE AS TRAVEL 
        AGENCY.] 
           The department may not operate or provide a travel 
        reservation system in competition with private sector travel 
        agents, but may make referrals to private sector travel agents. 
           Sec. 17.  [116J.037] [CERTIFICATION OF 
        ELECTRONIC-COMMERCE-READY CITIES AND COUNTIES.] 
           A county or statutory or home rule charter city of 
        Minnesota shall be designated an electronic-commerce-ready city 
        or county by the department of trade and economic development 
        and may be annually recertified as an electronic-commerce-ready 
        city or county if it: 
           (1) has formed effective public-private partnerships with 
        communication providers, the business community, banks, schools, 
        health care, government, and nonprofit social and service 
        organizations to become electronic commerce ready; 
           (2) makes available training and continuing education to 
        develop an electronic-commerce-ready workforce; 
           (3) develops a plan for electronic commerce readiness that 
        reflects resource integration across economic and government 
        sectors, including current and future investments by business, 
        government, education, and health care to achieve cooperative 
        community and economic development benefits; 
           (4) uses local funding sources to catalyze and sustain 
        information technology investments to adapt to new business 
        priorities as electronic commerce grows; and 
           (5) maintains public access sites to ensure access to 
        electronic commerce applications and community networking tools, 
        such as electronic mail. 
           Sec. 18.  Minnesota Statutes 1998, section 116J.415, 
        subdivision 5, is amended to read: 
           Subd. 5.  [LOAN CRITERIA.] The following criteria apply to 
        loans made under the challenge grant program:  
           (1) loans must be made to businesses that are not likely to 
        undertake a project for which loans are sought without 
        assistance from the challenge grant program; 
           (2) a loan must be used for a project designed principally 
        to benefit low-income persons through the creation of job or 
        business opportunities for them; 
           (3) the minimum loan is $5,000 and the maximum 
        is $100,000 $200,000; 
           (4) a loan may not exceed 50 percent of the total cost of 
        an individual project; 
           (5) a loan may not be used for a retail development 
        project; and 
           (6) a business applying for a loan, except a 
        microenterprise loan under subdivision 6, must be sponsored by a 
        resolution of the governing body of the local governmental unit 
        within whose jurisdiction the project is located. 
           Sec. 19.  Minnesota Statutes 1998, section 116J.421, 
        subdivision 2, is amended to read: 
           Subd. 2.  [GOVERNANCE.] The center is governed by a board 
        of directors appointed to six-year terms by the governor 
        comprised of: 
           (1) a representative from each of the two largest statewide 
        general farm organizations; 
           (2) a representative from a regional initiative 
        organization selected under section 116J.415, subdivision 3; 
           (3) the president of Mankato State University; 
           (4) a representative from the general public residing in a 
        town of less than 5,000 located outside of the metropolitan 
        area; 
           (5) a member of the house of representatives appointed by 
        the speaker of the house and a member of the senate appointed by 
        the subcommittee on committees of the senate committee on rules 
        and administration appointed for two-year terms; 
           (6) three representatives from business, including one 
        representing rural manufacturing and one rural retail and 
        service business; 
           (7) three representatives from private foundations with a 
        demonstrated commitment to rural issues; 
           (8) one representative from a rural county government; and 
           (9) one representative from a rural regional government. 
           The board shall appoint one additional member to the board 
        of directors who shall represent the general public.  
           Sec. 20.  Minnesota Statutes 1998, section 116J.421, 
        subdivision 3, is amended to read: 
           Subd. 3.  [DUTIES.] The center shall: 
           (1) research and identify present and emerging social and 
        economic issues for rural Minnesota, including health care, 
        transportation, crime, housing, and job training; 
           (2) forge alliances and partnerships with rural communities 
        to find practical solutions to economic and social problems; 
           (3) provide a resource center for rural communities on 
        issues of importance to them; 
           (4) encourage collaboration across higher education 
        institutions to provide interdisciplinary team approaches to 
        problem solving with rural communities; and 
           (5) involve students in center projects. 
           Sec. 21.  Minnesota Statutes 1998, section 116J.421, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [USE OF APPROPRIATION.] State appropriations to 
        the board, whether from the general fund or the rural policy and 
        development fund, may, at the discretion of the board, be 
        expended for administration of the center and to carry out its 
        duties under this section or under other law. 
           Sec. 22.  Minnesota Statutes 1998, section 116J.421, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [BOARD COMPENSATION.] Compensation and expense 
        reimbursement of board members is as provided in section 
        15.0575, subdivision 3. 
           Sec. 23.  [116J.423] [MINNESOTA MINERALS 21ST CENTURY 
        FUND.] 
           Subdivision 1.  [CREATED.] The Minnesota minerals 21st 
        century fund is created as a separate account in the treasury.  
        Money in the account is appropriated to the commissioner of 
        trade and economic development for the purposes of this 
        section.  All money earned by the account, loan repayments of 
        principal and interest, and earnings on investments must be 
        credited to the account.  For the purpose of this section, 
        "fund" means the Minnesota minerals 21st century fund.  The 
        commissioner shall operate the account as a revolving account. 
           Subd. 2.  [USE OF FUND.] The commissioner shall use money 
        in the fund to make loans or equity investments in mineral 
        processing facilities including, but not limited to, taconite 
        processing, direct reduction processing, and steel production.  
        The commissioner must, prior to making any loans or equity 
        investments and after consultation with industry and public 
        officials, develop a strategy for making loans and equity 
        investments that assists the Minnesota mineral industry in 
        becoming globally competitive.  Money in the fund may also be 
        used to pay for the costs of carrying out the commissioner's due 
        diligence duties under this section. 
           Subd. 3.  [REQUIREMENTS PRIOR TO COMMITTING FUNDS.] The 
        commissioner, prior to making a commitment for a loan or equity 
        investment must, at a minimum, conduct due diligence research 
        regarding the proposed loan or equity investment, including 
        contracting with professionals as needed to assist in the due 
        diligence. 
           Subd. 4.  [REQUIREMENTS FOR FUND DISBURSEMENTS.] The 
        commissioner may make conditional commitments for loans or 
        equity investments but disbursements of funds pursuant to a 
        commitment may not be made until commitments for the remainder 
        of a project's funding are made that are satisfactory to the 
        commissioner and disbursements made from the other commitments 
        sufficient to protect the interests of the state in its loan or 
        investment. 
           Subd. 5.  [COMPANY CONTRIBUTION.] The commissioner may 
        provide loans or equity investments that match, in a proportion 
        determined by the commissioner, an investment made by the owner 
        of a facility. 
           Sec. 24.  [116J.424] [IRRRB CONTRIBUTION.] 
           The commissioner of the iron range resources and 
        rehabilitation board with approval of the board shall provide an 
        equal match for any loan or equity investment made for a 
        facility located in the tax relief area defined in section 
        273.134 by the Minnesota minerals 21st century fund created by 
        section 116J.423.  The match may be in the form of a loan or 
        equity investment, notwithstanding whether the fund makes a loan 
        or equity investment.  The state shall not acquire an equity 
        interest because of an equity investment or loan by the board 
        and the board at its sole discretion shall decide what interest 
        it acquires in a project.  The commissioner of trade and 
        economic development may require a commitment from the board to 
        make the match prior to disbursing money from the fund. 
           Sec. 25.  Minnesota Statutes 1998, section 116J.63, 
        subdivision 4, is amended to read: 
           Subd. 4.  The office of tourism may market tourism-related 
        publications, trade, and media promotional material promotion 
        and advertising programs and information distribution to 
        businesses and organizations.  The proceeds from the marketing 
        must be placed in a special account revenue accounts and are 
        appropriated to the commissioner to prepare and distribute the 
        office's publications and media promotional materials implement 
        the programs for which the revenue is collected. 
           Sec. 26.  Minnesota Statutes 1998, section 116J.8745, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [TECHNICAL ASSISTANCE; LOAN 
        ADMINISTRATION.] The commissioner of trade and economic 
        development shall make grants to nonprofit organizations to 
        provide technical assistance to individuals with entrepreneurial 
        plans that require microenterprise loans in an amount ranging 
        from approximately $1,000 to $25,000, and for loan 
        administration costs related to those microenterprise loans. 
        Microenterprise is a small business which employs under five 
        employees plus the owner and requires under $25,000 to start to 
        support the startup and growth of self-employment and 
        microbusinesses.  Eligible businesses are microenterprises 
        employing under five people plus the owner and requiring under 
        $25,000 or no capital to start or expand the business. 
           Sec. 27.  Minnesota Statutes 1998, section 116J.8745, 
        subdivision 2, is amended to read: 
           Subd. 2.  [GRANT ELIGIBILITY AND ALLOCATION.] Nonprofit 
        organizations must apply for grants under this section following 
        procedures established by the commissioner.  To be eligible for 
        a grant, an organization must demonstrate to the commissioner 
        that it has the appropriate expertise.  The commissioner shall 
        give preference for grants to organizations that target 
        nontraditional entrepreneurs such as women, members of a 
        minority, low-income individuals, or persons seeking work who 
        are currently on or recently removed from welfare assistance. 
           An application must include: 
           (1) the local need for microenterprise support; 
           (2) proposed criteria for business eligibility; 
           (3) proposals for identifying and serving eligible 
        businesses; 
           (4) a description of technical assistance to be provided to 
        eligible businesses; 
           (5) proposals to coordinate technical assistance with 
        financial assistance; and 
           (6) a demonstration of ability to collaborate with other 
        agencies including educational and financial institutions; and 
           (7) project goals identifying the number of eligible 
        businesses to be assisted with the state funds awarded under the 
        grant. 
           Sec. 28.  [116J.9665] [WORLD TRADE CENTER.] 
           Subdivision 1.  [DEFINITIONS.] For purposes of this 
        section, the following terms have the meaning given them: 
           (1) "Conference and service center" means the approximately 
        20,000 square feet of space on the third and fourth floors of 
        the Minnesota world trade center that the state of Minnesota has 
        the right to possess, occupy, and use subject to the terms and 
        conditions of the development agreement. 
           (2) "Development agreement" means the agreement entered 
        into by and between the world trade center board, as agent of 
        the state of Minnesota, and Oxford Development Minnesota, Inc. 
        dated July 27, 1984, and the amendments to that agreement, for 
        development and construction of a world trade center at a 
        designated site in Minnesota. 
           (3) "Minnesota world trade center" means the facility 
        constructed in accordance with the development agreement or 
        other facilities meeting the membership requirements of the 
        World Trade Centers Association. 
           Subd. 2.  [GENERALLY.] The commissioner shall facilitate 
        and support Minnesota world trade center programs and services 
        and promote the Minnesota world trade center.  These activities 
        are not subject to chapters 14, 16A, 16B, and 16C. 
           Subd. 3.  [POWERS.] In furtherance of the goals set forth 
        in subdivision 2, and in addition to the powers granted by 
        sections 116J.035 and 116J.966, the commissioner may: 
           (1) define, formulate, administer, and deliver programs and 
        services through the world trade center; 
           (2) set and collect fees for services and programs; 
           (3) adopt membership requirements for an association of 
        members of the Minnesota world trade center; 
           (4) participate jointly with private persons, firms, 
        corporations, or organizations or with public entities in 
        appropriate programs or projects and enter into contracts to 
        spend money to carry out those programs or projects; 
           (5) enter into contracts or agreements with a federal or 
        state agency, individual, business entity, or other 
        organization; 
           (6) acquire and dispose of real property or an interest in 
        real property; and 
           (7) hold and maintain membership for the Minnesota world 
        trade center in the World Trade Centers Association.  
           Subd. 4.  [DUTIES.] The commissioner shall: 
           (1) promote and market the Minnesota world trade center and 
        membership in the World Trade Center Association; 
           (2) sponsor conferences or other promotional events in the 
        conference and service center; 
           (3) sponsor, develop, and conduct educational programs 
        related to international trade; 
           (4) establish and maintain an office in the Minnesota world 
        trade center; and 
           (5) not duplicate programs or services provided by the 
        commissioner of agriculture. 
           Subd. 5.  [PROMOTIONAL EXPENSES.] The commissioner may 
        expend money to carry out this section.  Promotional expenses 
        include, but are not limited to, expenses for the food, lodging, 
        and travel of consultants and speakers, and publications and 
        other forms of advertising.  
           Subd. 6.  [WORLD TRADE CENTER ACCOUNT.] The world trade 
        center account is in the special revenue fund.  All money 
        received from the use of the conference and service center or 
        appropriated under this section must be deposited in the 
        account.  Money in the account including interest earned is 
        appropriated to the commissioner and must be used exclusively 
        for the purposes of this section. 
           Subd. 7.  [SERVICE INFORMATION; CLASSIFICATION OF DATA.] (a)
        Service information, including databases, purchased by the 
        commissioner or developed by the commissioner for sale pursuant 
        to this section, is not subject to chapter 13. 
           (b) For purposes of this subdivision, "business transaction"
        means a transaction between parties other than the 
        commissioner.  The following data received or developed by the 
        commissioner is private with respect to data on individuals and 
        nonpublic with respect to data not on individuals: 
           (1) data relating to the financial condition of individuals 
        or businesses receiving or performing services by or on behalf 
        of the commissioner in furtherance of this section; 
           (2) at the request of either party to the transaction data 
        on business transactions; and 
           (3) at the request of the person or business seeking the 
        information, the identities of persons or businesses requesting 
        business or trade information from the commissioner, and the 
        nature of the trade information. 
           Sec. 29.  Minnesota Statutes 1998, section 116L.03, 
        subdivision 5, is amended to read: 
           Subd. 5.  [TERMS.] The terms of appointed members shall be 
        for four years except for the initial appointments.  The initial 
        appointments of the governor shall have the following terms:  
        two members each for one, two, three, and four years.  
        Compensation for board members is as provided in section 
        15.0575, subdivision 3. 
           Sec. 30.  Minnesota Statutes 1998, section 116L.04, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [PATHWAYS PROGRAM.] The pathways program may 
        provide grants-in-aid for developing programs which assist in 
        the transition of persons from welfare to work.  The program is 
        to be operated by the board.  The board shall consult and 
        coordinate with the Job Training Partnership Act, Title II-A, 
        program administrators at the department of economic security to 
        design and provide services for temporary assistance for needy 
        families recipients. 
           Pathways grants-in-aid may be awarded to educational or 
        other nonprofit training institutions for education and training 
        programs that serve public assistance recipients transitioning 
        from public assistance to employment. 
           Preference shall be given to projects that: 
           (1) provide employment with benefits paid to employees; 
           (2) provide employment where there are defined career paths 
        for trainees; 
           (3) pilot the development of an educational pathway that 
        can be used on a continuing basis for transitioning persons from 
        public assistance directly to work; and 
           (4) demonstrate the active participation of department of 
        economic security workforce centers, Minnesota state college and 
        university institutions and other educational institutions, and 
        local welfare agencies. 
           Pathways projects must demonstrate the active involvement 
        and financial commitment of private business.  Pathways projects 
        must be matched with cash or in-kind contributions on at least a 
        one-to-one ratio by participating private business. 
           A single grant to any one institution shall not exceed 
        $200,000 $400,000. 
           The board shall annually, by March 31, report to the 
        commissioners of economic security and trade and economic 
        development on pathways programs, including the number of public 
        assistance recipients participating in the program, the number 
        of participants placed in employment, the salary and benefits 
        they receive, and the state program costs per participant. 
           Sec. 31.  Minnesota Statutes 1998, section 116L.06, 
        subdivision 4, is amended to read: 
           Subd. 4.  [LOAN TERMS.] Loans may be secured or unsecured, 
        shall be for a term of no more than two five years, and shall 
        bear no interest.  The maximum amount of a loan is $250,000.  A 
        loan origination fee of up to two percent of the principal of 
        the loan may be charged.  An employer may have only one 
        outstanding loan.  The loans shall contain such other standard 
        commercial loan terms as the board deems appropriate. 
           Sec. 32.  Minnesota Statutes 1998, section 175.17, is 
        amended to read: 
           175.17 [POWERS AND DUTIES, COMMISSIONER OF THE DEPARTMENT 
        OF LABOR AND INDUSTRY.] 
           (1) The commissioner shall administer the laws relating to 
        workers' compensation and the laws governing employees of the 
        state, a county, or other governmental subdivisions who contract 
        tuberculosis; 
           (2) The commissioner shall adopt reasonable and proper 
        rules governing rules of practice before the workers' 
        compensation division in matters which are not before a 
        compensation judge; 
           (3) The commissioner shall collect, collate, and publish 
        statistical and other information relating to work under the 
        department's jurisdiction and make public reports the 
        commissioner judges necessary, including such other reports as 
        may be required by law; 
           (4) The commissioner shall establish and maintain branch 
        offices as needed for the conduct of the affairs of the workers' 
        compensation division; 
           (5) The commissioner may: 
           (i) apply for, receive, and spend money received from 
        federal, municipal, county, regional, and other government 
        agencies and private sources; and 
           (ii) apply for, accept, and disburse grants and other aids 
        from public and private sources. 
           Sec. 33.  Minnesota Statutes 1998, section 176.181, 
        subdivision 2a, is amended to read: 
           Subd. 2a.  [APPLICATION FEE.] Every initial application 
        filed pursuant to subdivision 2 requesting authority to 
        self-insure shall be accompanied by a nonrefundable fee of 
        $2,500 $4,000.  When an employer seeks to be added as a member 
        of an existing approved group under section 79A.03, subdivision 
        6, the proposed new member shall pay a nonrefundable $250 $400 
        application fee to the commissioner at the time of application.  
        Each annual report due August 1 under section 79A.03, 
        subdivision 9, shall be accompanied by an annual fee 
        of $200 $500.  
           Sec. 34.  Minnesota Statutes 1998, section 216C.41, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
        subdivision apply to this section. 
           (b) "Qualified hydroelectric facility" means a 
        hydroelectric generating facility in this state that: 
           (1) is located at the site of a dam, if the dam was in 
        existence as of March 31, 1994; and 
           (2) begins generating electricity after July 1, 1994. 
           (c) "Qualified wind energy conversion facility" means a 
        wind energy conversion system that: 
           (1) produces two megawatts or less of electricity as 
        measured by nameplate rating and begins generating electricity 
        after June 30, 1997, and before July 1, 1999; or 
           (2) begins generating electricity after June 30, 1999, 
        produces two megawatts or less of electricity as measured by 
        nameplate rating, and is: 
           (i) located within one county and owned by a natural person 
        who owns the land where the facility is sited; 
           (ii) owned by a Minnesota small business as defined in 
        section 645.445; 
           (iii) owned by a nonprofit organization; or 
           (iv) owned by a tribal council if the facility is located 
        within the boundaries of the reservation; or 
           (3) begins generating electricity after June 30, 1999, 
        produces seven megawatts or less of electricity as measured by 
        nameplate rating, and: 
           (i) is owned by a cooperative organized under chapter 308A; 
        and 
           (ii) all shares and membership in the cooperative are held 
        by natural persons or estates, at least 51 percent of whom 
        reside in a county or contiguous to a county where the wind 
        energy production facilities of the cooperative are located. 
           Sec. 35.  Minnesota Statutes 1998, section 216C.41, 
        subdivision 2, is amended to read: 
           Subd. 2.  [INCENTIVE PAYMENT.] Incentive payments shall be 
        made according to this section to the owner or operator of a 
        qualified hydropower facility or qualified wind energy 
        conversion facility for electric energy generated and sold by 
        the facility or, for a publicly owned hydropower facility, for 
        electric energy that is generated by the facility and used by 
        the owner of the facility outside the facility.  Payment may 
        only be made upon receipt by the commissioner of finance of an 
        incentive payment application that establishes that the 
        applicant is eligible to receive an incentive payment and that 
        satisfies other requirements the commissioner deems necessary.  
        The application shall be in a form and submitted at a time the 
        commissioner establishes.  There is annually appropriated from 
        the general fund sums sufficient to make the payments required 
        under this section.  
           Sec. 36.  [245.4705] [EMPLOYMENT SUPPORT SERVICES AND 
        PROGRAMS.] 
           The commissioner of human services shall cooperate with the 
        commissioner of economic security in the operation of a 
        statewide system, as provided in section 268A.14, to reimburse 
        providers for employment support services for persons with 
        mental illness. 
           Sec. 37.  [268.368] [YOUTHBUILD TECH.] 
           Subdivision 1.  [GENERALLY.] A pilot program is established 
        within the department to make grants to eligible organizations 
        for programs which are available to students who have completed 
        at least four months in a program funded under section 268.362.  
        Programs funded under this section must provide participants 
        with the knowledge and skills necessary to obtain entry-level 
        jobs in the computer industry, including core computer classes 
        and job-specific education. 
           Subd. 2.  [GRANTS.] The provisions of section 268.361; 
        268.362, subdivision 2; 268.3625; and 268.366 shall apply to 
        grants under this section. 
           Sec. 38.  Minnesota Statutes 1998, section 268.666, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [INTERPRETER.] Workforce centers in areas that 
        have a significant number of residents for whom English is not 
        the primary language must attempt to provide outreach services 
        to those residents. 
           Sec. 39.  Minnesota Statutes 1998, section 268.98, 
        subdivision 3, is amended to read: 
           Subd. 3. [COST LIMITATIONS.] (a) For purposes of sections 
        268.9781 and 268.9782, funds allocated to a grantee are subject 
        to the following limitations: 
           (1) a maximum of 15 percent for administration in a worker 
        adjustment services plan and ten percent in a dislocation event 
        services grant; 
           (2) a minimum of 50 percent for provision of training 
        assistance; 
           (3) a minimum of ten percent and maximum of 30 percent for 
        provision of support services; and no more than ten percent 
        statewide may be allocated annually for support services, as 
        defined in section 268.975, subdivision 13; and 
           (4) the balance used for provision of basic readjustment 
        assistance. 
           (b) A waiver of the cost limitation on providing training 
        assistance may be requested.  The waiver may not permit less 
        than 30 percent of the funds be spent on training assistance. 
           (c) The commissioner shall prescribe the form and manner 
        for submission of an application for a waiver under paragraph 
        (b).  Criteria for granting a waiver shall be established by the 
        commissioner in consultation with the workforce development 
        council. 
           Sec. 40.  Minnesota Statutes 1998, section 268A.13, is 
        amended to read: 
           268A.13 [EMPLOYMENT SUPPORT SERVICES FOR PERSONS WITH 
        MENTAL ILLNESS.] 
           The commissioner of economic security, in cooperation with 
        the commissioner of human services, shall develop a statewide 
        program of grants as outlined in section 268A.14 to provide 
        services for persons with mental illness in supported 
        employment.  Projects funded under this section must:  (1) 
        assist persons with mental illness in obtaining and retaining 
        employment; (2) emphasize individual community placements for 
        clients; (3) ensure interagency collaboration at the local level 
        between vocational rehabilitation field offices, county service 
        agencies, community support programs operating under the 
        authority of section 245.4712, and community rehabilitation 
        providers, in assisting clients; and (4) involve clients in the 
        planning, development, oversight, and delivery of support 
        services.  Project funds may not be used to provide services in 
        segregated settings such as the center-based employment 
        subprograms as defined in section 268A.01. 
           The commissioner of economic security, in consultation with 
        the commissioner of human services, shall develop a request for 
        proposals which is consistent with the requirements of this 
        section and section 268A.14 and which specifies the types of 
        services that must be provided by grantees.  Projects shall be 
        funded for state fiscal year 1995 and Priority for funding shall 
        be given to organizations with experience in developing 
        innovative employment support services for persons with mental 
        illness.  Each applicant for funds under this section shall 
        submit an evaluation protocol as part of the grant application. 
           Sec. 41.  Minnesota Statutes 1998, section 268A.14, is 
        amended to read: 
           268A.14 [PLAN FOR A STATEWIDE REIMBURSEMENT SYSTEM FOR 
        EMPLOYMENT SUPPORT SERVICES.] 
           Subdivision 1.  [EMPLOYMENT SUPPORT SERVICES AND PROGRAMS.] 
        The commissioner of economic security, in cooperation with the 
        commissioner of human services, shall develop a detailed plan 
        for establishing operate a statewide system to reimburse 
        providers for employment support services for persons with 
        mental illness.  The plan must include the following:  (1) 
        protocols for certifying eligible providers; (2) standards for 
        determining client eligibility for the service; (3) a list of 
        reimbursable services with the proposed reimbursement level for 
        each service; and (4) a description of the systems, including 
        necessary computer systems, that will be used by the state 
        agency for payment of reimbursement to eligible providers.  The 
        plan must also include projected total biennial costs for the 
        new reimbursement system, recommendations on the nature of 
        appeal rights which shall be provided to clients and providers, 
        and recommendations on the necessity for agency rulemaking prior 
        to implementation of the new reimbursement system.  The system 
        shall be operated to support employment programs and services 
        where: 
           (1) services provided are readily accessible to all persons 
        with mental illness so they can make progress toward economic 
        self-sufficiency; 
           (2) services provided are made an integral part of all 
        treatment and rehabilitation programs for persons with mental 
        illness to ensure that they have the ability and opportunity to 
        consider a variety of work options; 
           (3) programs help persons with mental illness form long 
        range plans for employment that fit their skills and abilities 
        by ensuring that ongoing support, crisis management, placement, 
        and career planning services are available; 
           (4) services provided give persons with mental illness the 
        information needed to make informed choices about employment 
        expectations and options, including information on the types of 
        employment available in the local community, the types of 
        employment services available, the impact of employment on 
        eligibility for governmental benefits, and career options; 
           (5) programs assess whether persons with mental illness 
        being serviced are satisfied with the services and outcomes.  
        Satisfaction assessments shall address at least whether persons 
        like their jobs, whether quality of life is improved, whether 
        potential for advancement exists, and whether there are adequate 
        support services in place; 
           (6) programs encourage persons with mental illness being 
        served to be involved in employment support services issues by 
        allowing them to participate in the development of individual 
        rehabilitation plans and to serve on boards, committees, task 
        forces, and review bodies that shape employment services 
        policies and that award grants, and by encouraging and helping 
        them to establish and participate in self-help and consumer 
        advocacy groups; 
           (7) programs encourage employers to expand employment 
        opportunities for persons with mental illness and, to maximize 
        the hiring of persons with mental illness, educate employers 
        about the needs and abilities of persons with mental illness and 
        the requirements of the Americans with Disabilities Act; 
           (8) programs encourage persons with mental illness, 
        vocational rehabilitation professionals, and mental health 
        professionals to learn more about current work incentive 
        provisions in governmental benefits programs; 
           (9) programs establish and maintain linkages with a wide 
        range of other programs and services, including educational 
        programs, housing programs, economic assistance services, 
        community support services, and clinical services to ensure that 
        persons with mental illness can obtain and maintain employment; 
           (10) programs participate in ongoing training across 
        agencies and service delivery systems so that providers in human 
        services systems understand their respective roles, rules, and 
        responsibilities and understand the options that exist for 
        providing employment and community support services to persons 
        with mental illness; and 
           (11) programs work with local communities to expand system 
        capacity to provide access to employment services to all persons 
        with mental illness who want them. 
           Subd. 2.  [REPORT.] Before preparing a biennial budget 
        request, the commissioner of economic security, in cooperation 
        with the commissioner of human services, must report on the 
        status and evaluation of the grants currently funded under 
        section 268A.14 to the chairs of the policy and finance 
        committees of the legislature having jurisdiction.  The report 
        must also include a determination of the unmet needs of persons 
        with mental illness who require employment services and provide 
        recommendations to expand the program to meet the identified 
        needs. 
           Sec. 42.  Minnesota Statutes 1998, section 298.22, 
        subdivision 2, is amended to read: 
           Subd. 2.  [IRON RANGE RESOURCES AND REHABILITATION BOARD.] 
        There is hereby created the iron range resources and 
        rehabilitation board, consisting of 11 13 members, five of whom 
        are state senators appointed by the subcommittee on committees 
        of the rules committee of the senate, and five of whom are 
        representatives, appointed by the speaker of the house of 
        representatives.  The remaining members shall be appointed one 
        each by the senate majority leader, the speaker of the house of 
        representatives, and the governor and must be nonlegislators who 
        reside in a tax relief area as defined in section 273.134.  The 
        members shall be appointed in January of every odd-numbered 
        year, except that the initial nonlegislator members shall be 
        appointed by July 1, 1999, and shall serve until January of the 
        next odd-numbered year.  The 11th member of the board is the 
        commissioner of natural resources.  Vacancies on the board shall 
        be filled in the same manner as the original members were 
        chosen.  At least a majority of the legislative members of the 
        board shall be elected from state senatorial or legislative 
        districts in which over 50 percent of the residents reside 
        within a tax relief area as defined in section 273.134.  All 
        expenditures and projects made by the commissioner of iron range 
        resources and rehabilitation shall first be submitted to the 
        iron range resources and rehabilitation board for approval by at 
        least eight board members a majority of the board of 
        expenditures and projects for rehabilitation purposes as 
        provided by this section, and the method, manner, and time of 
        payment of all funds proposed to be disbursed shall be first 
        approved or disapproved by the board.  The board shall 
        biennially make its report to the governor and the legislature 
        on or before November 15 of each even-numbered year.  The 
        expenses of the board shall be paid by the state from the funds 
        raised pursuant to this section. 
           Sec. 43.  Minnesota Statutes 1998, section 298.22, 
        subdivision 6, is amended to read: 
           Subd. 6.  [EQUITY PRIVATE ENTITY PARTICIPATION.] The board 
        may acquire an equity interest in any project for which it 
        provides funding.  The commissioner may establish, participate 
        in the management of, and dispose of the assets of charitable 
        foundations and nonprofit corporations associated with any 
        project for which it provides funding, including specifically, 
        but without limitation, a corporation within the meaning of 
        section 317A.011, subdivision 6. 
           Sec. 44.  Minnesota Statutes 1998, section 298.2213, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PROJECT APPROVAL.] The board shall by August 1 
        each year prepare a list of projects to be funded from the money 
        appropriated in this section with necessary supporting 
        information including descriptions of the projects, plans, and 
        cost estimates.  A project must not be approved by the board 
        unless it finds that:  
           (1) the project will materially assist, directly or 
        indirectly, the creation of additional long-term employment 
        opportunities; 
           (2) the prospective benefits of the expenditure exceed the 
        anticipated costs; and 
           (3) in the case of assistance to private enterprise, the 
        project will serve a sound business purpose.  
           To be proposed by the board, a project must be approved by 
        at least eight a majority of the iron range resources and 
        rehabilitation board members and the commissioner of iron range 
        resources and rehabilitation.  The list of projects must be 
        submitted to the governor, who shall, by November 15 of each 
        year, approve, disapprove, or return for further consideration, 
        each project.  The money for a project may be spent only upon 
        approval of the project by the governor.  The board may submit 
        supplemental projects for approval at any time.  
           Sec. 45.  Minnesota Statutes 1998, section 298.223, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ADMINISTRATION.] The taconite environmental 
        protection fund shall be administered by the commissioner of the 
        iron range resources and rehabilitation board.  The commissioner 
        shall by September 1 of each year submit to the board a list of 
        projects to be funded from the taconite environmental protection 
        fund, with such supporting information including description of 
        the projects, plans, and cost estimates as may be necessary.  
        Upon approval by at least eight a majority of the members of the 
        iron range resources and rehabilitation board, this list shall 
        be submitted to the governor by November 1 of each year.  By 
        December 1 of each year, the governor shall approve or 
        disapprove, or return for further consideration, each project.  
        Funds for a project may be expended only upon approval of the 
        project by the board and governor.  The commissioner may submit 
        supplemental projects to the board and governor for approval at 
        any time.  
           Sec. 46.  Minnesota Statutes 1998, section 326.86, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [LICENSING FEE.] The licensing fee for 
        persons licensed pursuant to sections 326.83 to 326.991 
        is $75 $100 per year.  The commissioner may adjust the fees 
        under section 16A.1285 to recover the costs of administration 
        and enforcement.  The fees must be limited to the cost of 
        license administration and enforcement and must be deposited in 
        the state treasury and credited to the general fund.  
           Sec. 47.  Minnesota Statutes 1998, section 383B.79, 
        subdivision 4, is amended 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 projects in 
        this section with any funds under its control.  Any sale, lease, 
        or development of such property by the board of county 
        commissioners shall be conducted in accordance with section 
        469.029. 
           Sec. 48.  Minnesota Statutes 1998, section 446A.072, 
        subdivision 4, is amended to read: 
           Subd. 4.  [FUNDING LEVEL.] (a) The authority shall provide 
        supplemental assistance for essential project component costs as 
        certified by the commissioner of the pollution control agency 
        under section 116.182, subdivision 4.  
           (b) Except as provided in paragraph (c), a municipality may 
        not receive more than $4,000,000 under this section unless 
        specifically approved by law.  If a project would be eligible 
        for more than $4,000,000 under paragraph (e), the authority 
        shall include a description of the project and the financing 
        plan in its report on needs in subdivision 11. 
           (c) A sanitary district or multijurisdictional wastewater 
        treatment district may receive an additional $1,000,000 for each 
        municipality participating up to a maximum grant of $8,000,000, 
        unless a higher amount is specifically approved by law.  If a 
        project would be eligible for more than $8,000,000 under 
        paragraph (e), the authority shall include a description of the 
        project and the financing plan in its report on needs in 
        subdivision 11. 
           (d) The authority shall provide supplemental assistance for 
        up to one-half of the eligible grant funding level determined by 
        the United States Department of Agriculture Rural Development 
        funding for projects listed on the agency's project priority 
        list, in priority order.  For municipalities that are not 
        eligible for United States Department of Agriculture Rural 
        Development funding for wastewater, the authority shall provide 
        supplemental assistance for:  (1) essential project component 
        costs calculated by first determining the amount needed to 
        reduce a municipality's annual residential sewer costs to 1.4 
        percent of the municipality's median household income or $25 per 
        month per household, whichever is greater, and then multiplying 
        that amount by 80 percent to determine the actual award amount 
        to supplement loans under section 446A.07; and (2) up to 50 
        percent of the incremental costs specifically identified by the 
        agency as being attributable to more stringent wastewater 
        standards required to protect outstanding resource value waters 
        or outstanding international resource value waters. 
           (d) (e) Notwithstanding paragraph (b), in the event that a 
        municipality's monthly residential sewer service charges average 
        above $50, the authority will provide 90 percent of the grant 
        amount needed to reduce the average monthly sewer service charge 
        to $50, provided the project is ranked in the top 50 percentile 
        of the agency's intended use plan. 
           (e) Notwithstanding paragraphs (b), (c), and (d), a 
        municipality with an annual median household income of $40,000 
        or greater shall not be eligible for a grant, except for 
        incremental costs specifically identified by the agency as being 
        attributable to more stringent wastewater standards required to 
        protect outstanding resource value waters or outstanding 
        international resource value waters. 
           (f) The authority shall provide supplemental assistance to 
        a municipality that would not otherwise qualify for supplemental 
        assistance if: 
           (1) the municipality voluntarily accepts a sewer connection 
        from another governmental unit to serve residential, industrial, 
        or commercial developments that were completed before March 1, 
        1996, or are on lots whose plats were recorded before that date; 
        and 
           (2) fees charged by the municipality for the connection 
        must take into account state and federal grants used by the 
        municipality for the construction of the treatment plant. 
        The amount of supplemental assistance under this paragraph must 
        be sufficient to reduce debt service payments under section 
        446A.07 to an extent equivalent to a zero percent loan in an 
        amount up to the other governmental unit's project costs 
        necessary for connection.  Eligibility for supplemental 
        assistance under this paragraph ends three years after the 
        agency certifies that the connection has met the operational 
        performance standards established by the agency. 
           Sec. 49.  Minnesota Statutes 1998, section 462A.20, 
        subdivision 2, is amended to read: 
           Subd. 2.  [WHICH MONEY IN FUND.] There shall be paid into 
        the housing development fund: 
           (a) Any moneys appropriated and made available by the state 
        for the purposes of the fund; 
           (b) Any moneys which the agency receives in repayment of 
        advances made from the fund; 
           (c) Any other moneys which may be made available to the 
        agency for the purpose of the fund from any other source or 
        sources; 
           (d) All fees and charges collected by the agency; 
           (e) All interest or other income not required by the 
        provisions of a resolution or indenture securing notes or bonds 
        to be paid into another special fund; but the agency shall not 
        expend money for its cost of general administration of agency 
        programs in any fiscal year in excess of such limit for such 
        fiscal year as may be established by law.  "Cost of general 
        administration of agency programs" does not include debt 
        service, amortization of deferred financing costs, loan 
        origination costs, professional and other contractual services, 
        any deposit or expenditure required to be made by the provisions 
        of a bond or note resolution or indenture, or any deposit or 
        expenditure made to preserve the security for the bonds or notes.
           Sec. 50.  Minnesota Statutes 1998, section 462A.20, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [OPERATING COSTS REPORT.] On or before February 
        15 of each year, the agency shall deliver a report to the chairs 
        of the finance and appropriations committees of the legislature 
        on the costs of operating the agency in the previous fiscal year.
        The report shall include the expenditures for salaries and 
        benefits, rent, professional and technical services, general 
        agency administration, and agency's audited financial statements 
        which include information on expenditures and receipts relating 
        to debt issuance and administration and loan origination and 
        administration.  The report shall include a budget plan for 
        salaries and benefits, rent, professional and technical 
        services, and general administration for the current fiscal 
        year, including estimates of changes in costs from the previous 
        fiscal year.  If it appears that the costs in the current fiscal 
        year will exceed the budget plan contained in the report 
        submitted under this subdivision, the agency must notify the 
        chairs of the legislative committees or divisions with 
        jurisdiction over the agency's budget that the costs in the 
        current fiscal year will exceed the submitted budget plan and 
        the reasons for the changes in costs and must submit a revised 
        budget plan to the commissioner of finance and obtain the 
        commissioner's concurrence with the revised plan.  The agency 
        must also notify the chairs of the legislative committees or 
        divisions with jurisdiction over the agency's budget when the 
        agency is considering an expansion of agency activities that 
        were not contemplated in the submitted budget plan. 
           Sec. 51.  Minnesota Statutes 1998, section 462A.204, is 
        amended by adding a subdivision to read: 
           Subd. 8.  [SCHOOL STABILITY.] (a) The agency in 
        consultation with the interagency task force on homelessness may 
        establish a school stability project under the family homeless 
        prevention and assistance program.  The purpose of the project 
        is to secure stable housing for families with school-age 
        children who have moved frequently and for unaccompanied youth.  
        For purposes of this subdivision, "unaccompanied youth" are 
        minors who are leaving foster care or juvenile correctional 
        facilities, or minors who meet the definition of a child in need 
        of services or protection under section 260.015, subdivision 2a, 
        but for whom no court finding has been made pursuant to that 
        statute. 
           (b) The agency shall make grants to family homeless 
        prevention and assistance projects in communities with a school 
        or schools that have a significant degree of student mobility. 
           (c) Each project must be designed to reduce school 
        absenteeism; stabilize children in one home setting, or at a 
        minimum, in one school setting; and reduce shelter usage.  Each 
        project must include plans for the following: 
           (1) targeting of families with children under age 12 who, 
        in the last 12 months have either:  changed schools or homes at 
        least once or been absent from school at least 15 percent of the 
        school year and who have either been evicted from their housing; 
        are living in overcrowded conditions in their current housing; 
        or are paying more than 50 percent of their income for rent; 
           (2) targeting of unaccompanied youth in need of an 
        alternative residential setting; 
           (3) connecting families with the social services necessary 
        to maintain the family's stability in their home; and 
           (4) one or more of the following: 
           (i) provision of rental assistance for a specified period 
        of time, which may exceed 24 months; or 
           (ii) development of permanent supportive housing or 
        transitional housing. 
           (d) Notwithstanding subdivision 2, grants under this 
        section may be used to acquire, rehabilitate, or construct 
        transitional or permanent housing. 
           (e) Each grantee under the project must include 
        representatives of the local school district or targeted 
        schools, or both, and of the local community correction agencies 
        on its advisory committee. 
           Sec. 52.  Minnesota Statutes 1998, section 462A.205, 
        subdivision 3, is amended to read: 
           Subd. 3.  [LOCAL HOUSING ORGANIZATION.] The agency may 
        contract with a local housing organization to administer the 
        rent assistance under this section.  The agency may pay the 
        local housing organization an administrative fee.  The 
        administrative fee may not exceed $40 per unit per month. 
           Sec. 53.  Minnesota Statutes 1998, section 462A.209, is 
        amended to read: 
           462A.209 [HOME OWNERSHIP ASSISTANCE.] 
           Subdivision 1.  [FULL CYCLE HOME OWNERSHIP SERVICES.] The 
        full cycle home ownership services program shall be used to fund 
        nonprofit organizations and political subdivisions providing, 
        building capacity to provide, or supporting full cycle lending 
        for home ownership to low and moderate income home buyers and 
        homeowners, including seniors.  The purpose of the program is to 
        encourage private investment in affordable housing and 
        collaboration of nonprofit organizations and political 
        subdivisions with each other and private lenders in providing 
        full cycle lending services. 
           Subd. 2.  [DEFINITION.] "Full cycle home ownership 
        services" means supporting eligible home buyers and owners 
        through all phases of purchasing and keeping a home, by 
        providing prepurchase home buyer education, prepurchase 
        counseling and credit repair, prepurchase property inspection 
        and technical and financial assistance to buyers in 
        rehabilitating the home, postpurchase and counseling, including 
        home equity conversion loan counseling, mortgage default 
        counseling, postpurchase assistance with home maintenance, entry 
        cost assistance, and access to flexible loan products. 
           Subd. 3.  [ELIGIBILITY.] The agency shall establish 
        eligibility criteria for nonprofit organizations and political 
        subdivisions to receive funding under this section.  The 
        eligibility criteria must require the nonprofit organization or 
        political subdivision to provide, to build capacity to provide, 
        or support full cycle home ownership services for eligible home 
        buyers.  The agency may fund a nonprofit organization or 
        political subdivision that will provide full cycle home 
        ownership services by coordinating with one or more other 
        organizations that will provide specific components of full 
        cycle home ownership services.  The agency may make exceptions 
        to providing all components of full cycle lending if justified 
        by the application.  If there are more applicants requesting 
        funding than there are funds available, the agency shall award 
        the funds on a competitive basis and also assure an equitable 
        geographic distribution of the available funds.  The eligibility 
        criteria must require the nonprofit organization or political 
        subdivision to have a demonstrated involvement in the local 
        community and to target the housing affordability needs of the 
        local community or to have demonstrated experience with 
        counseling older persons on housing, or both.  Partnerships and 
        collaboration with innovative, grass roots, or community-based 
        initiatives shall be encouraged.  The agency shall give priority 
        to nonprofit organizations and political subdivisions that 
        provide matching funds.  Applicants for funds under section 
        462A.057 may also apply funds under this program. 
           Subd. 4.  [ENTRY COST HOME OWNERSHIP OPPORTUNITY PROGRAM.] 
        The agency may establish an entry cost home ownership 
        opportunity program, on terms and conditions it deems advisable, 
        to assist individuals with downpayment and closing costs to 
        finance the purchase of a home. 
           Sec. 54.  [462A.2093] [INNOVATIVE AND INCLUSIONARY HOUSING 
        PROGRAM.] 
           Subdivision 1.  [DEFINITIONS.] For purposes of this section, 
        the following terms have the meanings given them in this 
        subdivision. 
           (a) "Municipality" means a town or a statutory or home rule 
        city. 
           (b) "Nonmetropolitan" means the area of the state outside 
        of the metropolitan area defined in section 473.121, subdivision 
        2. 
           (c) "Inclusionary housing development" means a new 
        construction development including owner-occupied or rental 
        housing, or a combination of both, with a variety of prices and 
        designs which serve families with a range of incomes and housing 
        needs. 
           Subd. 2.  [APPLICATION CRITERIA.] The commissioner must 
        give preference to economically viable proposals to the degree 
        that they:  (1) use innovative building techniques or materials 
        to lower construction costs while maintaining high quality 
        construction and livability; (2) are located in communities that 
        have demonstrated a willingness to waive local restrictions 
        which otherwise would increase costs of construction; and (3) 
        include units affordable to households with incomes at or below 
        80 percent of the greater of state or area median income. 
           Cost savings from regulatory incentives must be reflected 
        in the sale of all residences in an inclusionary housing 
        development. 
           Sec. 55.  Minnesota Statutes 1998, section 462A.21, is 
        amended by adding a subdivision to read: 
           Subd. 26.  [FULL CYCLE HOME OWNERSHIP SERVICES.] The agency 
        may spend money for the purposes of section 462A.209 and may pay 
        the costs and expenses necessary and incidental to the 
        development and operation of the program. 
           Sec. 56.  [462A.33] [ECONOMIC DEVELOPMENT AND HOUSING 
        CHALLENGE PROGRAM.] 
           Subdivision 1.  [CREATED.] The economic development and 
        housing challenge program is created to be administered by the 
        agency. 
           The program shall provide grants or loans for the purpose 
        of construction, acquisition, rehabilitation, construction 
        financing, permanent financing, interest rate reduction, 
        refinancing, and gap financing of housing to support economic 
        development activities or job creation within a community or 
        region by meeting locally identified housing needs. 
           Subd. 2.  [ELIGIBLE RECIPIENTS.] Challenge grants or loans 
        may be made to a city, a private developer, a nonprofit 
        organization, or the owner of the housing, including 
        individuals.  For the purpose of this section, "city" has the 
        meaning given it in section 462A.03, subdivision 21.  Preference 
        shall be given to challenge grants or loans for home ownership.  
        To the extent practicable, grants and loans shall be made so 
        that an approximately equal number of housing units are financed 
        in the metropolitan area, as defined in section 473.121, 
        subdivision 2, and in the nonmetropolitan area. 
           Subd. 3.  [CONTRIBUTION REQUIREMENT; REGULATORY 
        FLEXIBILITY.] Challenge grants or loans must be used for 
        economically viable homeownership or rental housing proposals 
        that:  
           (1) include a financial or in-kind contribution from an 
        area employer and either a unit of local government or a private 
        philanthropic, religious, or charitable organization; and 
           (2) address the housing needs of the local work force.  
           For the purpose of this subdivision, an employer 
        contribution may consist partially or wholly of federal housing 
        tax credits.  Preference for grants and loans shall be given to 
        comparable proposals that include regulatory changes that result 
        in identifiable cost avoidance or cost reductions, such as 
        increased density, flexibility in site development standards, or 
        zoning code requirements.  
           Preference for grants and loans shall also be given to 
        comparable proposals that include a financial or in-kind 
        contribution from a unit of local government, an area employer, 
        and a private philanthropic, religious, or charitable 
        organization. 
           Subd. 4.  [STATE AND LOCAL GOVERNMENT COOPERATION.] In 
        making challenge grants or loans, the commissioner must develop 
        a joint application process and coordinate funding with funding 
        available to the commissioner of trade and economic development 
        and local governments for housing and infrastructure 
        construction and repair. 
           Subd. 5.  [INCOME LIMITS.] Households served through 
        challenge grants or loans must not have incomes that exceed, for 
        homeownership projects, 115 percent of the greater of state or 
        area median income as determined by the United States Department 
        of Housing and Urban Development, and for rental housing 
        projects, 115 percent of the greater of state or area median 
        income as determined by the United States Department of Housing 
        and Urban Development. 
           Subd. 6.  [LARGE-SCALE PROJECTS.] At least one proposal 
        funded under this section must provide sufficient resources to 
        make a significant impact on the housing needs and economic 
        development activities within a community. 
           Subd. 7.  [GRANTS AND LOANS TO INDIVIDUALS.] Preference 
        shall be given to grants and loans that provide down payments 
        and other assistance to individuals to purchase a home.  The 
        commissioner must coordinate home ownership assistance provided 
        to individuals under this section with other programs 
        administered by or through the commissioner. 
           Sec. 57.  Minnesota Statutes 1998, section 473.251, is 
        amended to read: 
           473.251 [METROPOLITAN LIVABLE COMMUNITIES FUND.] 
           The metropolitan livable communities fund is created and 
        consists of the following accounts:  
           (1) the tax base revitalization account; 
           (2) the livable communities demonstration account; and 
           (3) the local housing incentives account; and 
           (4) the inclusionary housing account. 
           Sec. 58.  [473.255] [INCLUSIONARY HOUSING ACCOUNT.] 
           Subdivision 1.  [DEFINITIONS.] (a) "Inclusionary housing 
        development" means a new construction development, including 
        owner-occupied or rental housing, or a combination of both, with 
        a variety of prices and designs which serve families with a 
        range of incomes and housing needs. 
           (b) "Municipality" means a statutory or home rule charter 
        city or town participating in the local housing incentives 
        program under section 473.254. 
           Subd. 2.  [APPLICATION CRITERIA.] The metropolitan council 
        must give preference to economically viable proposals to the 
        degree that they:  (1) use innovative building techniques or 
        materials to lower construction costs while maintaining high 
        quality construction and livability; (2) are located in 
        communities that have demonstrated a willingness to waive local 
        restrictions which otherwise would increase costs of 
        construction; and (3) include units affordable to households 
        with incomes at or below 80 percent of area median income. 
           Priority shall be given to proposals where at least 15 
        percent of the owner-occupied units are affordable to households 
        at or below 60 percent of the area annual median income and at 
        least ten percent of the rental units are affordable to 
        households at or below 30 percent of area annual median income. 
           An inclusionary housing development may include resale 
        limitations on its affordable units.  The limitations may 
        include a minimum ownership period before a purchaser may profit 
        on the sale of an affordable unit. 
           Cost savings from regulatory incentives must be reflected 
        in the sale of all residences in an inclusionary development. 
           Subd. 3.  [INCLUSIONARY HOUSING INCENTIVES.] The 
        metropolitan council may work with municipalities and developers 
        to provide incentives to inclusionary housing developments such 
        as waiver of service availability charges and other regulatory 
        incentives that would result in identifiable cost avoidance or 
        reductions for an inclusionary housing development. 
           Subd. 4.  [INCLUSIONARY HOUSING GRANTS.] The council shall 
        use funds in the inclusionary housing account to make grants or 
        loans to municipalities to fund the production of inclusionary 
        housing developments that are located in municipalities that 
        offer incentives to assist in the production of inclusionary 
        housing.  Such incentives include but are not limited to:  
        density bonuses, reduced setbacks and parking requirements, 
        decreased roadwidths, flexibility in site development standards 
        and zoning code requirements, waiver of permit or impact fees, 
        fast-track permitting and approvals, or any other regulatory 
        incentives that would result in identifiable cost avoidance or 
        reductions that contribute to the economic feasibility of 
        inclusionary housing. 
           Subd. 5.  [GRANT APPLICATION.] A grant application must at 
        a minimum include the location of the inclusionary development, 
        the type of housing to be produced, the number of affordable 
        units to be produced, the monthly rent, or purchase price of the 
        affordable units, and the incentives provided by the 
        municipality to achieve development of the affordable units. 
           Sec. 59.  1999 S.F. No. 1485, section 1, if enacted, is 
        amended to read: 
           Section 1.  [326.105] [FEES.] 
           (a) The fee for licensure or renewal of licensure as an 
        architect, professional engineer, land surveyor, landscape 
        architect, or geoscience professional is $120 $104 per biennium. 
        The fee for certification as a certified interior designer or 
        for renewal of the certificate is $120 $104 per biennium.  The 
        fee for an architect applying for original certification as a 
        certified interior designer is $50 per biennium.  The initial 
        license or certification fee for all professions is $120 $104.  
        The renewal fee shall be paid biennially on or before June 30 of 
        each even-numbered year.  The renewal fee, when paid by mail, is 
        not timely paid unless it is postmarked on or before June 30 of 
        each even-numbered year.  
           (b) The application fee is $25 for in-training applicants 
        and $75 for professional license applicants. 
           (c) The fee for monitoring licensing examinations for 
        applicants is $25, payable by the applicant.  
           Sec. 60.  Laws 1998, chapter 404, section 13, subdivision 
        5, is amended to read: 
        Subd. 5.  Labor Interpretive Center                   6,000,000 
        For renovation and upgrades to the East 
        Building of the Science Museum for use 
        for the Minnesota Labor Interpretive 
        Center.  The balance of the cost of the 
        project is to be paid with funds from 
        nonstate sources. 
           Sec. 61.  Laws 1998, First Special Session chapter 1, 
        article 3, section 8, is amended to read: 
           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 2000. 
           Sec. 62.  [GRANT COUNTY.] 
           A grant by the commissioner of trade and economic 
        development to Grant county for community infrastructure 
        improvements needed to develop value-added agriprocessing 
        facilities is not subject to the maximum grant limitation of 
        Minnesota Statutes, section 116J.8731, subdivision 5, or agency 
        policy regarding maximum grant per job created. 
           Sec. 63.  [REPORT TO LEGISLATURE.] 
           The commissioner of the Minnesota housing finance agency 
        shall report to the legislature by February 1, 2001, on current 
        and proposed strategies related to HIV/AIDS for coordinating 
        local, state, and federal housing resources to address 
        identified opportunities and needs, plans for future 
        implementation, and recommendations for future legislative 
        action.  The commissioner shall consult with the commissioners 
        of health and human services and representatives of affected 
        populations in preparing this report.  
           Sec. 64.  [REPORT TO LEGISLATURE.] 
           The board of electricity, in consultation with the 
        commissioner of finance, shall report to the legislature by 
        January 15, 2000, on: 
           (1) the board's efforts to control its administrative 
        costs; 
           (2) the board's efforts to involve the members of its 
        citizen board in its business activities; 
           (3) the progress of the board's computer system 
        improvements; and 
           (4) a proposal for codification of the board's fee 
        schedule, including any changes to the schedule that the board 
        deems appropriate. 
           The commissioner of finance shall oversee the board's 
        activities under clauses (1) to (4) and related activities. 
           Sec. 65.  [FEE INCREASES PROHIBITED.] 
           The board of electricity shall not, prior to July 1, 2000, 
        increase any handling or inspection fees set pursuant to 
        Minnesota Statutes, section 326.244, subdivision 2, paragraph 
        (b). 
           Sec. 66.  [MEMBERSHIP AGREEMENT.] 
           The commissioner shall request the executive board of the 
        World Trade Centers Association to transfer the membership of 
        the Minnesota world trade center corporation in the World Trade 
        Centers Association to the department of trade and economic 
        development, Minnesota trade office. 
           Sec. 67.  [TRANSFERS.] 
           All of the rights and obligations of the Minnesota World 
        Trade Center Corporation under the development agreement and all 
        existing contracts related to the approximately 20,000 square 
        feet to which the world trade center corporation is a party or 
        beneficiary is transferred to the state of Minnesota, department 
        of trade and economic development, Minnesota trade office.  All 
        other property of the world trade center corporation is 
        transferred and appropriated to the commissioner per Minnesota 
        Statutes 1998, section 15.039. 
           Sec. 68.  [TRANSFER.] 
           The unobligated balance as of July 1, 1999, of the amount 
        appropriated to the department of trade and economic development 
        for a grant to the Minnesota World Trade Center Corporation in 
        Laws 1992, chapter 513, article 4, section 17, subdivision 2, is 
        transferred to the world trade center account in the special 
        revenue fund in the state treasury for world trade center 
        activities.  
           Sec. 69.  [TRANSFER OF POSITIONS AND EMPLOYEES.] 
           All positions and employees of the World Trade Center 
        Corporation are transferred to the executive branch of the state 
        government under the department of trade and economic 
        development on July 1, 1999, under the following conditions. 
           The commissioner of employee relations will determine which 
        positions are to be placed in the classified service and which 
        are placed in the unclassified service of the state in 
        accordance with appropriate provisions of Minnesota Statutes, 
        chapter 43A.  The commissioner will allocate positions to 
        appropriate classes in the state classification plan.  Positions 
        transferred with their incumbents do not create vacancies in 
        state service. 
           Employees transferred to unlimited classified positions are 
        transferred to state service without examinations.  Those 
        transferred to positions in the managerial plan pursuant to 
        Minnesota Statutes, section 43A.18, subdivision 3, who have 
        completed 12 months of service in their position and all others 
        who have completed six months of service in their positions are 
        transferred with permanent status.  Employees transferred to 
        managerial positions with less than 12 months of service in 
        their positions are transferred with probationary status.  
        However, all time spent by these employees in the positions must 
        be credited toward meeting the probationary period requirement 
        of the contract or plan governing the classification to which 
        their positions have been assigned. 
           Employees transferred to limited classified positions or to 
        temporary unclassified positions shall receive emergency, 
        temporary, or temporary unclassified appointments under 
        provisions of Minnesota Statutes, section 43A.15, subdivisions 2 
        and 3, or Minnesota Statutes, section 43A.08, subdivision 2a, as 
        appropriate. 
           The appointing authority and incumbent employees of 
        unlimited positions whose positions have been assigned by the 
        department of employee relations to classes in the state 
        classification plan shall have access to the provisions of 
        Minnesota Statutes, section 43A.07, subdivision 3, regarding 
        protested allocation of their positions effective July 1, 1999, 
        and for 30 days thereafter.  
           Sec. 70.  [REPORT; REGULATION OF RISK-BEARING ENTITIES.] 
           The commissioners of commerce and health shall study the 
        issues involved in consistent regulation of all entities that 
        assume financial risks related to health coverage in this 
        state.  The study must consider all such entities, regardless of 
        current licensure or regulation.  The study must include a plan 
        for consistent regulation that can be implemented in a cost 
        neutral manner for such entities and their enrollees and does 
        not result in dual regulation.  The commissioners must consider 
        laws recently enacted by the state of Ohio on this subject and 
        any relevant model laws or regulations adopted or under 
        consideration by the National Association of Insurance 
        Commissioners.  The commissioners shall provide a written 
        report, with recommendations, to the legislature in compliance 
        with Minnesota Statutes, section 3.195, no later than January 
        15, 2000.  
           Sec. 71.  [DIRECT REDUCTION IRON PROCESSING FACILITIES 
        APPROPRIATION TRANSFER.] 
           The appropriation of $10,000,000 made to the commissioner 
        of trade and economic development for direct reduction iron 
        processing facilities by Laws 1998, chapter 404, section 23, 
        subdivision 3, is transferred and appropriated to the Minnesota 
        minerals 21st century fund created by Minnesota Statutes, 
        section 116J.423.  The matching requirements of Minnesota 
        Statutes, section 116J.424, do not apply to expenditures from 
        the appropriation transferred by this section. 
           Sec. 72.  [UPPER RED LAKE BUSINESS LOAN PROGRAM.] 
           The commissioner of trade and economic development must 
        make loans to businesses in the Upper Red Lake area that have 
        been severely affected by the significant decline of the walleye 
        fishing resource in Upper Red Lake.  The loans may only be made 
        to businesses that operated in 1998.  A business must submit an 
        application to the commissioner on forms provided by the 
        commissioner.  The application must include a business plan for 
        continued operation, with the assistance of the loan, until the 
        walleye fishing resource recovers.  The commissioner shall 
        allocate available loan funds to a business based on the 
        commissioner's evaluation of the probable success of its 
        business plan.  A loan shall be for a maximum amount of $75,000 
        and a duration of ten years from the date of the loan and shall 
        be interest free.  Repayment of a loan in monthly payments of 
        1/120 of the original principal amount must begin no later than 
        one year after walleye fishing on Upper Red Lake is allowed by 
        the department of natural resources.  Any principal balance 
        remaining at the end of the ten-year period shall be forgiven if 
        the business continues in operation for the ten-year period.  
        Loan repayments shall be deposited in the general fund. 
           Sec. 73.  [PIPESTONE INDIAN SCHOOL AUTHORIZATION.] 
           Notwithstanding Minnesota Statutes, section 16A.695, the 
        board of trustees of the Minnesota state colleges and 
        universities may convey by quitclaim deed, at no cost, the 
        state's interest in the historic Pipestone Indian school 
        superintendent's house and gymnasium at the Pipestone campus of 
        Minnesota West community and technical college.  The conveyance 
        shall be in a form approved by the attorney general. 
           The deed must reserve to the state all minerals and mineral 
        rights and provide that the property shall revert to the state 
        if the grantee: 
           (1) fails to provide the use intended on the property; 
           (2) allows a public use other than the use agreed to by the 
        board without the written approval of the board; or 
           (3) abandons the use of the property. 
           Sec. 74.  [PASS THROUGH GRANT EVALUATION PROCESS.] 
           This act makes various appropriations that are commonly 
        referred to as pass through appropriations.  The director of the 
        Minnesota office of strategic and long-range planning shall 
        evaluate the following entities to determine the extent to which 
        their programs (i) are effective in accomplishing the mission of 
        the entity receiving the grant; (ii) leverage additional funds 
        from nonstate sources; and (iii) are consistent with the mission 
        of the state agency by which the grant is administered.  The 
        director shall report the results of the evaluation to the 
        legislative finance divisions or committees having jurisdiction 
        over the appropriations in this act.  The entities to be 
        evaluated are: 
           (1) Advantage Minnesota, Inc.; 
           (2) Rural policy and development center; 
           (3) metropolitan economic development association; 
           (4) WomenVenture; 
           (5) Minnesota Inventor's Congress; 
           (6) Minnesota Project Innovation; 
           (7) Natural Resources Research Institute; 
           (8) Minnesota Council for Quality; 
           (9) Minnesota Cold Weather Research Center; 
           (10) Center for Victims of Torture; 
           (11) St. Paul Rehabilitation Center; 
           (12) Microenterprise Assistance; 
           (13) NeighborLink Community Program; and 
           (14) Neighborhood Development Corporation. 
           Sec. 75.  [LOW-INCOME ENERGY TASK FORCE.] 
           The management analysis division of the department of 
        administration, in consultation with the appropriate 
        commissioners, shall report to the legislature by January 15, 
        2000, on the future of low-income energy assistance.  The report 
        shall be developed with the input of appropriate consumer 
        advocates, energy providers of various fuel types, energy 
        assistance delivery organizations and other interested parties. 
           The report shall analyze and make recommendations in the 
        following areas: 
           (1) improvements necessary in the administration of 
        low-income energy assistance programs to develop a uniform 
        statewide assistance network, including outreach efforts, 
        eligibility determination, and areas for technological 
        improvements; 
           (2) development of an accurate and consistent method to 
        determine the number of Minnesotans who should be eligible for 
        energy assistance and the level of assistance which should be 
        provided; and 
           (3) analyze funding level and revenue options for 
        low-income energy assistance programs consistent with 
        competitive electric and gas energy markets. 
           Sec. 76.  [STATE MARKETING PLAN.] 
           The commissioner of the department of trade and economic 
        development shall develop a comprehensive marketing plan for the 
        state's trade, tourism, and economic development activities.  
        The plan shall include a strategy for integrating the various 
        marketing activities of the state, including, but not limited 
        to, the Minnesota trade office, the office of tourism, the 
        Minnesota film board, Advantage Minnesota, the Minnesota 
        historical society, and the department of natural resources.  
        The commissioner shall consult with other state agencies that 
        market Minnesota for economic development and tourism purposes 
        and incorporate those activities into a comprehensive "Marketing 
        Minnesota" plan.  The commissioner shall propose consolidation, 
        mergers, and other mechanisms that may be necessary to 
        accomplish this task.  The commissioner shall submit 
        recommendations to the senate economic development budget 
        division and the house jobs and economic development finance 
        committee by February 1, 2000. 
           Sec. 77.  [REPORT.] 
           The commissioner of trade and economic development shall 
        submit a report to the legislature reviewing business 
        regulations contained in Minnesota Statutes and Minnesota Rules 
        that have a positive or negative impact on the business climate 
        in Minnesota.  The commissioner shall submit the report to the 
        legislature under Minnesota Statutes, section 3.195, by February 
        15, 2000.  
           Sec. 78.  [TASK FORCE CREATED.] 
           The governor's airport community stabilization funding task 
        force is created.  The task force shall identify and recommend 
        funding sources for implementation of noise mitigation measures 
        identified in the MSP Noise Mitigation Program Report dated 
        November 1996, and the low noise frequency policy committee 
        convened by the metropolitan airports commission, the 
        metropolitan council, and the city of Richfield in February 1998.
           Recommendations shall be provided to the governor and 
        legislature by January 15, 2000.  Funding sources shall include, 
        but not be limited to, federal, state, metropolitan airports 
        commission, and local sources.  The task force shall, to the 
        extent possible, identify all federal revenue sources that will 
        mitigate noise impacts from the north/south runway. 
           The governor shall appoint task force members that include 
        representatives from the following: 
           (1) the metropolitan airports commission chair or designee 
        and one other metropolitan airports commission board member; 
           (2) one member from the governor's staff; 
           (3) the commissioner of finance or the commissioner's 
        designee; 
           (4) representatives designated by the governing boards of 
        the following cities: 
           (i) Bloomington; 
           (ii) Minneapolis; 
           (iii) Burnsville; 
           (iv) Eagan; and 
           (v) Richfield; 
           (5) two at-large designees appointed by the governor; and 
           (6) the commissioner of the department of trade and 
        economic development or the commissioner's designee.  
           The task force shall be administered and supported by the 
        department of trade and economic development. 
           The first meeting of the task force must be convened no 
        later than July 31, 1999. 
           Sec. 79.  [PUBLIC UTILITIES COMMISSION RIGHT-OF-WAY COST 
        ALLOCATION.] 
           The public utilities commission shall use available general 
        fund appropriations made during the biennium ending June 30, 
        1999, to pay for up to $30,000 of the costs allocated and 
        assessed to local units of government for right-of-way 
        rulemaking proceedings.  The allocation and assessment of costs 
        to the local units of government shall be canceled to the extent 
        paid pursuant to this section. 
           Sec. 80.  [REPEALER.] 
           (a) Minnesota Statutes 1998, sections 44A.001; 44A.01; 
        44A.02; 44A.023; 44A.025; 44A.031; 44A.0311; 44A.06; 44A.08; 
        44A.11; and 462A.28, are repealed.  
           (b) Minnesota Statutes 1998, sections 469.305; 469.306; 
        469.307; 469.308; and 469.31, are repealed.  
           (c) Minnesota Statutes 1998, sections 341.01; 341.02; 
        341.04; 341.045; 341.05; 341.06; 341.07; 341.08; 341.09; 341.10; 
        341.11; 341.115; 341.12; 341.13; and 341.15, are repealed. 
           (d) Minnesota Statutes, section 82B.201, as added by Laws 
        1999, chapter 137, section 5, is repealed effective 
        retroactively to the day following final enactment of Laws 1999, 
        chapter 137, so that Minnesota Statutes, section 82B.201, as so 
        added, never takes effect. 
           Sec. 81.  [EFFECTIVE DATES.] 
           Section 48 is effective March 1, 2000. 
           Sections 59, 61, 62, 64, 65, and 79 are effective the day 
        following final enactment.  
           Section 67 is effective June 30, 1999. 
           Section 80, paragraph (a), is effective July 1, 1999. 
           Section 80, paragraph (b), is effective July 1, 2000. 
           Section 80, paragraph (c), is effective July 1, 2001. 
                                   ARTICLE 3
                       WORKFORCE DEVELOPMENT AND TRAINING 
           Section 1.  Minnesota Statutes 1998, section 116L.03, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MEMBERS.] The partnership shall be 
        governed by a board of 11 12 directors.  
           Sec. 2.  Minnesota Statutes 1998, section 116L.03, 
        subdivision 2, is amended to read: 
           Subd. 2.  [APPOINTMENT.] The Minnesota job skills 
        partnership board consists of:  eight nine members appointed by 
        the governor, the commissioner of trade and economic 
        development, the commissioner of economic security, and the 
        chancellor, or the chancellor's designee, of the Minnesota state 
        colleges and universities.  If the chancellor makes a 
        designation under this subdivision, the designee must have 
        experience in technical education.  Two of the appointed members 
        must be representatives from organized labor.  
           Sec. 3.  Minnesota Statutes 1998, section 268.022, is 
        amended to read: 
           268.022 [WORKFORCE INVESTMENT DEVELOPMENT FUND.] 
           Subdivision 1.  [DETERMINATION AND COLLECTION OF SPECIAL 
        ASSESSMENT.] (a) In addition to all other taxes, assessments, 
        and payment obligations under chapter 268, each employer, except 
        an employer making payments in lieu of taxes is liable for a 
        special assessment levied at the rate of one-tenth of one 
        percent per year until June 30, 2000, and seven-hundredths of 
        one percent per year on and after July 1, 2000, on all taxable 
        wages, as defined in section 268.04, subdivision 25b.  The 
        assessment shall become due and be paid by each employer to the 
        department on the same schedule and in the same manner as other 
        taxes. 
           (b) The special assessment levied under this section shall 
        not affect the computation of any other taxes, assessments, or 
        payment obligations due under this chapter. 
           (c) Notwithstanding any provision to the contrary, if on 
        June 30 of any year the unobligated balance of the special 
        assessment fund under this section is greater than $30,000,000, 
        the special assessment for the following year only shall be 
        levied at a rate of 1/20th of one percent on all taxable wages. 
           Subd. 2.  [DISBURSEMENT OF SPECIAL ASSESSMENT FUNDS.] (a) 
        The money collected under this section shall be deposited in the 
        state treasury and credited to a dedicated the workforce 
        development fund to provide for the employment and training 
        programs established under sections 268.975 to 268.98; including 
        vocational guidance, training, placement, and job 
        development.  The workforce development fund is created as a 
        special account in the state treasury. 
           (b) All money in the dedicated fund not otherwise 
        appropriated or transferred is appropriated to the commissioner 
        who must act as the fiscal agent for the money and must disburse 
        the that money for the purposes of this section, not allowing 
        the money to be used for any other obligation of the state.  All 
        money in the dedicated workforce development fund shall be 
        deposited, administered, and disbursed in the same manner and 
        under the same conditions and requirements as are provided by 
        law for the other dedicated funds special accounts in the state 
        treasury, except that all interest or net income resulting from 
        the investment or deposit of money in the fund shall accrue to 
        the fund for the purposes of the fund. 
           (c) No more than five percent of the dedicated funds 
        collected in each fiscal year may be used by the department of 
        economic security for its administrative costs. 
           (d) Reimbursement for costs related to collection of the 
        special assessment shall be in an amount negotiated between the 
        commissioner and the United States Department of Labor. 
           (e) The dedicated funds appropriated to the commissioner, 
        less amounts under paragraphs (c) and (d) shall be allocated as 
        follows:  
           (1) 40 percent to be allocated annually to substate 
        grantees for provision of expeditious response activities under 
        section 268.9771 and worker adjustment services under section 
        268.9781; and 
           (2) 60 percent to be allocated to activities and programs 
        authorized under sections 268.975 to 268.98. 
           (f) Any funds not allocated, obligated, or expended in a 
        fiscal year shall be available for allocation, obligation, and 
        expenditure in the following fiscal year. 
           Sec. 4.  [COMPREHENSIVE WORKFORCE DEVELOPMENT ANALYSIS.] 
           The commissioner of the department of economic security, 
        the commissioner of trade and economic development, the 
        chancellor of the Minnesota state colleges and universities, and 
        the director of the Minnesota office of strategic and long-range 
        planning shall conduct a multi-agency study of strategic 
        consolidation of workforce training in the state and submit 
        their report to the governor and the legislature by January 15, 
        2000.  The purpose of the study is to identify workforce 
        training programs administered by state agencies and to 
        recommend any program changes or consolidations which would 
        serve to encourage the growth of high-skill, high-wage jobs 
        while ensuring that the state has an adequate number of workers 
        with the skills necessary to succeed in those jobs.  The study 
        will address the extent to which consolidations or program 
        changes would achieve the following objectives: 
           (1) effective and efficient training, retraining, and 
        upgrading of the workforce to succeed in high-skill, high-wage 
        jobs; 
           (2) encouragement to those not currently in the workforce 
        to enter or reenter the labor market; 
           (3) increasing access to information about jobs and the 
        labor market; 
           (4) facilitation of efficient job placement; 
           (5) encouragement and facilitation of productivity 
        enhancements in the public and private sectors. 
           Sec. 5.  [TRANSFER OF DISLOCATED WORKER PROGRAM FUNCTION TO 
        DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT.] 
           The responsibility of the department of economic security 
        for the dislocated workers program under Minnesota Statutes, 
        sections 268.022 and 268.975 to 268.98, is transferred pursuant 
        to Minnesota Statutes, section 15.039 to the jobs skills 
        partnership board. 
           Sec. 6.  [WORKFORCE DEVELOPMENT FUND; SUCCESSOR IN 
        INTEREST.] 
           The workforce development fund is a renaming of the 
        workforce investment fund and all money in the workforce 
        investment fund shall be transferred to the workforce 
        development fund. 
           Sec. 7.  [APPROPRIATION.] 
           $29,000,000 is appropriated on July 1, 1999, from the 
        general fund to the Minnesota workforce development fund, 
        created under Minnesota Statutes, section 268.022. 
           Sec. 8.  [EFFECTIVE DATE.] 
           Sections 1, 2, and 5 are effective July 1, 2000. 
           Presented to the governor May 21, 1999 
           Signed by the governor May 25, 1999, 3:43 p.m.