Office of the Revisor of Statutes
Minnesota Session Laws - 2001, 1st Special Session
Key: (1) language to be deleted (2) new language
CHAPTER 4-H.F.No. 5
An act relating to state government; appropriating
money for economic development, housing, and certain
agencies of state government; establishing and
modifying programs; abolishing the department of
economic security; transferring certain duties and
funds; creating a transition team for the
reorganization of state departments; consolidating
housing programs; regulating activities and practices;
modifying fees; making conforming changes; requiring
reports; codifying reorganization order No. 181;
transferring the remaining duties of the commissioner
of public service to the commissioner of commerce;
instructing the revisor to change certain terms;
amending Minnesota Statutes 2000, sections 3.922, by
adding a subdivision; 3C.12, subdivision 2; 13.679;
15.01; 15.06, subdivision 1; 15A.0815, subdivision 2;
16B.32, subdivision 2; 16B.335, subdivision 4; 16B.56,
subdivision 1; 16B.76, subdivision 1; 17.86,
subdivision 3; 18.024, subdivision 1; 43A.08,
subdivision 1a; 45.012; 103F.325, subdivisions 2, 3;
115A.15, subdivision 5; 116J.8731, subdivision 1;
116L.03; 116L.04, by adding a subdivision; 116L.05, by
adding a subdivision; 116L.16; 116O.06, subdivision 2;
123B.65, subdivisions 1, 3, 5; 138.664, by adding a
subdivision; 161.45, subdivision 1; 168.61,
subdivision 1; 169.073; 174.03, subdivision 7; 181.30;
184.29; 184.30, subdivision 1; 184.38, subdivisions 6,
8, 9, 10, 11, 17, 18, 20; 184.41; 216A.01; 216A.035;
216A.036; 216A.05, subdivision 1; 216A.07, subdivision
1; 216A.08; 216A.085, subdivision 3; 216B.02,
subdivisions 1, 7, 8; 216B.16, subdivisions 1, 2, 6b,
15; 216B.162, subdivisions 7, 11; 216B.1675,
subdivision 9; 216B.241, subdivisions 1a, 1b, 2b;
216C.01, subdivisions 1, 2, 3; 216C.051, subdivision
6; 216C.37, subdivision 1; 216C.40, subdivision 4;
216C.41, as amended; 237.02; 237.075, subdivisions 2,
9; 237.082; 237.21; 237.30; 237.462, subdivision 6;
237.51, subdivisions 1, 5, 5a; 237.52, subdivisions 2,
4, 5; 237.54, subdivision 2; 237.55; 237.59,
subdivision 2; 237.768; 239.01; 239.10; 268.022,
subdivision 2; 268.145, subdivision 1; 268.665, by
adding a subdivision; 325E.11; 325E.115, subdivision
2; 326.243; 462A.01; 462A.03, subdivisions 1, 6, 10,
by adding a subdivision; 462A.04, subdivision 6;
462A.05, subdivisions 14, 14a, 16, 22, 26; 462A.06,
subdivisions 1, 4; 462A.07, subdivisions 10, 12;
462A.073, subdivision 1; 462A.15; 462A.17, subdivision
3; 462A.20, subdivision 3; 462A.201, subdivisions 2,
6; 462A.204, subdivision 3; 462A.205, subdivisions 4,
4a; 462A.209; 462A.2091, subdivision 3; 462A.2093,
subdivision 1; 462A.2097; 462A.21, subdivisions 5, 10,
by adding subdivisions; 462A.222, subdivision 1a;
462A.24; 462A.33, subdivisions 1, 2, 3, 5, by adding a
subdivision; 473.195, by adding a subdivision; 484.50;
Laws 1993, chapter 301, section 1, subdivision 4, as
amended; Laws 1995, chapter 248, article 12, section
2, as amended; Laws 1995, chapter 248, article 13,
section 2, subdivision 2, as amended; Laws 2000,
chapter 488, article 8, section 2, subdivision 6;
proposing coding for new law in Minnesota Statutes,
chapters 116L; 181; 462A; repealing Minnesota Statutes
2000, sections 184.22, subdivisions 2, 3, 4, 5;
184.37, subdivision 2; 216A.06; 237.69, subdivision 3;
268.975; 268.976; 268.9771; 268.978; 268.9781;
268.9782; 268.9783; 268.979; 268.98; 462A.201,
subdivision 4; 462A.207; 462A.209, subdivision 4;
462A.21, subdivision 17; 462A.221, subdivision 4;
462A.30, subdivision 2; 462A.33, subdivisions 4, 6, 7.
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 "2002" and "2003," where used in this act, mean that the
appropriation or appropriations listed under them are available
for the year ending June 30, 2002, or June 30, 2003,
respectively. The term "first year" means the fiscal year
ending June 30, 2002, and "second year" means the fiscal year
ending June 30, 2003.
SUMMARY BY FUND
2002 2003 TOTAL
General $192,471,000 $192,612,000 $385,083,000
Petroleum Tank
Cleanup 1,064,000 1,084,000 2,148,000
Environmental Fund 700,000 700,000 1,400,000
TANF Block Grant 15,198,000 14,302,000 29,500,000
Workers'
Compensation 23,216,000 23,765,000 46,981,000
Special Revenue
Fund 11,849,000 10,942,000 22,791,000
TOTAL $244,498,000 $243,405,000 $487,903,000
APPROPRIATIONS
Available for the Year
Ending June 30
2002 2003
Sec. 2. TRADE AND ECONOMIC DEVELOPMENT
Subdivision 1. Total
Appropriation $41,965,000 $39,591,000
Summary by Fund
General 38,453,000 37,426,000
TANF Block Grant 1,750,000 1,000,000
Environmental Fund 700,000 700,000
Special
Revenue Fund 1,062,000 465,000
The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.
Subd. 2. Business and Community
Development 13,149,000 11,167,000
Summary by Fund
General 11,852,000 10,467,000
Environmental Fund 700,000 700,000
Special
Revenue Fund 597,000 -0-
(a) $3,867,000 the first year and
$3,867,000 the second year are for
Minnesota investment fund grants. It
is the intention of the legislature
that the base funding for the Minnesota
investment fund in the 2004-2005
biennium be $4,017,000 each year.
(b) $150,000 the first year and
$150,000 the second year are for
one-time grants to the rural policy and
development center at Minnesota State
University, Mankato. The grant shall
be used for research and policy
analysis on emerging economic and
social issues in rural Minnesota, to
serve as a policy resource center for
rural Minnesota communities, to
encourage collaboration across higher
education institutions to provide
interdisciplinary team approaches to
research and problem solving in rural
communities, and to administer overall
operations of the center.
The grant shall be provided upon the
condition that each state-appropriated
dollar be matched with a
non-state-appropriated dollar.
Acceptable matching funds are
non-state-appropriated contributions
that the center has received after July
1, 2000, and have not been used to
match previous state grants. The funds
not spent the first year are available
the second.
(c) $155,000 the first year and
$155,000 the second year are for
one-time grants to the metropolitan
economic development association for
continuing minority business
development programs in the
metropolitan area.
(d) $300,000 the first year is for
one-time grants to nonprofit
organizations to provide technical
assistance to individuals to support
the start-up and growth of
self-employment and microenterprise
businesses. Eligible businesses are
microenterprises employing fewer than
five people plus the owner and
requiring under $35,000 or no capital
to start or expand the business.
Nonprofit organizations must apply for
grants under this subdivision 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 or who have recently been
laid off from their previous employment.
An application must include:
(1) the local need for microenterprise
support;
(2) proposed criteria for business
eligibility;
(3) a proposal for identifying and
serving eligible businesses;
(4) a description of technical
assistance to be provided to eligible
businesses;
(5) a proposal to coordinate technical
assistance with financial assistance;
(6) demonstration of an 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.
Grant recipients must report to the
commissioner by February 1 in each of
the two years after the year of receipt
of the grant. The report must detail
the number of customers served; the
number of businesses started,
stabilized, or expanded; the number of
jobs created and retained; and business
success rates. The commissioner shall
report to the legislature on the
microenterprise entrepreneurial
assistance. The report shall contain
an evaluation of the results.
(e) $35,000 the first year is for a
one-time grant for a pilot project
incubated by Blue Earth county named
the Rural Advanced Business
Facilitation Program. The grant shall
be provided on the condition that the
funds be matched on a one-to-one basis
from nonstate sources. This
appropriation is available until June
30, 2003.
(f) $500,000 the first year is for a
one-time grant to the city of St. Paul
for the planning, predesign, and design
of the new Roy Wilkins auditorium and
exhibit hall. This appropriation is
available until June 30, 2003. * (The
preceding text beginning "(f) $500,000
the first year" was indicated as vetoed
by the governor.)
(g) $50,000 the first year is for a
one-time grant to Minnesota rural
partners. This grant must be used only
for the Minnesota rural summit and
shall be provided on the condition that
funds be matched on a one-to-one basis
from nongovernmental sources. This
appropriation is available until June
30, 2003.
(h) $100,000 the first year is for a
one-time grant to the Albert Lea Port
Authority to remodel a building in the
Northaire Industrial Park. Of this
amount, $50,000 is from the Minnesota
investment fund. This appropriation is
available until June 30, 2003. This
grant must be matched on a two-for-one
basis by nonstate funds. * (The
preceding text beginning "(h) $100,000
the first year" was indicated as vetoed
by the governor.)
(i) $300,000 the first year is for a
one-time grant to the St. Paul port
authority for the 33-acre Trillium site
that is part of the Trout Brook
greenway corridor in St. Paul. * (The
preceding text beginning "(i) $300,000
the first year" was indicated as vetoed
by the governor.)
(j) Notwithstanding the limit in
Minnesota Statutes, section 116J.8731,
subdivision 5, a grant of up to
$1,000,000 may be made to a political
subdivision that is chosen as a site
for a soybean oilseed processing
facility constructed by a
Minnesota-based cooperative. The grant
may be used for site preparation,
predevelopment, and other
infrastructure improvements, including
public and private utility improvements
that are necessary for development of
the oilseed processing facility. The
grant may be made any time until June
30, 2003.
(k) $500,000 the first year is from the
workforce development fund for a grant
to the city of Duluth to support the
development of the Duluth Technology
Village. This is a one-time
expenditure, and funds not spent the
first year are available the second
year.
(l) $75,000 in fiscal year 2002 is for
a grant to the West Central Growth
Alliance to establish a regional
marketing plan, economic development
pilot project in Big Stone, Chippewa,
Kandiyohi, Lac Qui Parle, Meeker,
Renville, Stevens, Swift, and Yellow
Medicine counties. The grant must be
matched by $75,000 in nonstate money.
This is a one-time appropriation. This
appropriation is available until June
30, 2003.
(m) $150,000 the first year is for a
one-time grant to the city of Ironton
to be applied to planning for the
Cuyuna Range Technology Center. This
appropriation is available until June
30, 2003. The grant must be matched by
$150,000 in nonstate money.
(n) $97,000 the first year from the
workforce development fund is for a
one-time grant to Neighborhood
Development Center, Inc. The funds not
spent the first year are available the
second.
Subd. 3. Minnesota Trade Office
2,466,000 2,614,000
On or before July 10, 2001, the
commissioner of finance shall transfer
the following amounts from the
unencumbered balance in the export
finance authority working capital
account created by Minnesota Statutes,
section 116J.9673: to the workforce
development fund, $350,000; and to the
general fund, $771,000.
Subd. 4. Workforce Development 11,045,000 10,295,000
Summary by Fund
General 8,830,000 8,830,000
Special Revenue 465,000 465,000
TANF Block Grant 1,750,000 1,000,000
(a) $8,500,000 the first year and
$8,500,000 the second year are for the
job skills partnership and pathways
programs. If the appropriation for
either year is insufficient, the
appropriation for the other year is
available. This appropriation does not
cancel.
(b) $450,000 the first year and
$450,000 the second year are for
one-time grants to Lifetrack Resources
for its immigrant/refugee collaborative
programs, including those related to
job-seeking skills and workplace
orientation, intensive job development,
functional work English, and on-site
job coaching. Of this amount, $200,000
each year is from the workforce
development fund and $250,000 each 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 be transferred to
the commissioner of trade and economic
development.
(c) $330,000 the first year and
$330,000 the second year are from the
general fund for one-time grants to
Twin Cities Rise to provide training to
hard-to-train individuals. Twin Cities
Rise must report to the commissioner by
October 1 after the close of each
fiscal year. The report must detail
the number of participants served, the
cost per participant, the number of
participants placed, the number of
participants who otherwise successfully
completed the program, and any other
information requested by the
commissioner.
(d) $750,000 the first year is for the
job skills partnership board to operate
the pilot program provided by article
2, section 30. This is a one-time
appropriation and 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 be
transferred to the commissioner of
trade and economic development. This
appropriation is available until June
30, 2003.
(e) $265,000 the first year and
$265,000 the second year from the
workforce development fund are for
one-time grants to WomenVenture for
women's business development programs.
Subd. 5. Office of Tourism
10,219,000 10,111,000
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.
Of this amount, $50,000 the first year
is for a one-time grant to the
Mississippi River parkway commission to
support the increased promotion of
tourism along the Great River Road.
Of this amount, $150,000 the first year
is for one-time grants to local units
of government, and state or local
nonprofit entities to plan and promote
the 2004 Grand Excursion. A local
nonstate dollar-for-dollar match is
required. * (The preceding text
beginning "Of this amount, $150,000 the
first year" was indicated as vetoed by
the governor.)
$50,000 the first year is for a
one-time grant to Koochiching county
for concept development and a marketing
feasibility study related to the
construction of a North American bear
center called the Big Bear Country
Education and Logging Center. * (The
preceding text beginning "$50,000 the
first year" was indicated as vetoed by
the governor.)
$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 film production in
Minnesota. This appropriation is to
reimburse film and television producers
for up to ten percent of the documented
wages and cost of services that they
paid to Minnesotans for film and
television production after January 1,
2001.
$150,000 the first year is for
partnerships with local tourism
interests to operate travel information
centers. This is a one-time
appropriation.
Subd. 6. Information and Analysis
1,631,000 1,668,000
Subd. 7. Administrative Support 3,455,000 3,736,000
Sec. 3. MINNESOTA TECHNOLOGY, INC. 5,930,000 6,105,000
$5,005,000 the first year and
$6,105,000 the second year are for
transfer from the general fund to the
Minnesota Technology, Inc. fund. It is
the intention of the legislature that
the base funding for the Minnesota
Technology, Inc. fund in the 2004-2005
biennium be $6,105,000 each year.
$875,000 the first year is for a grant
to Minnesota Project Innovation. This
is a one-time appropriation and is not
added to the agency's budget base.
$50,000 the first year is for grants to
Minnesota Inventors Congress. This is
a one-time appropriation and is not
added to the agency's budget base.
On or before July 10, 2001, the
commissioner of finance shall transfer
$900,000 from the Minnesota technology
account created in Minnesota Statutes,
section 116O.12, to the general fund.
Notwithstanding the provisions of
Minnesota Statutes, section 116O.12,
the legislature does not approve the
industry cluster initiative proposed by
Minnesota Technology, Inc., in the
governor's 2002-2003 biennial budget.
Sec. 4. ECONOMIC SECURITY
Subdivision 1. Total
Appropriation 40,443,000 39,977,000
Summary by Fund
General 29,376,000 29,381,000
TANF Block Grant 1,073,000 927,000
Special
Revenue Fund 9,994,000 9,669,000
Subd. 2. Workforce Services 12,046,000 11,944,000
Summary by Fund
General 9,194,000 9,092,000
TANF Block Grant 927,000 927,000
Special Revenue 1,925,000 1,925,000
(a) $1,827,000 the first year and
$1,827,000 the second year are for
displaced homemaker programs under
Minnesota Statutes, section 268.96. Of
this amount, $1,000,000 each year is
from the workforce development fund and
$827,000 each year is a one-time
appropriation 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
economic security. The commissioner of
economic security shall report to the
legislature by February 15, 2003, on
the outcome of grants under this
paragraph.
(b) $111,000 the first year is for
youth violence prevention programs to
match the federal juvenile
accountability incentive block grant.
This is a one-time appropriation and is
not added to the agency's budget base.
(c) No appropriation is made for the
youth curfew and truancy prevention
program established in Laws 1999,
chapter 216, article 1, section 20.
(d) No appropriation is made for asset
preservation and facility repair.
(e) $1,025,000 the first year and
$1,025,000 the second year are for the
opportunities industrialization center
programs. Of this amount, $150,000
each year is a one-time appropriation
from the workforce development fund and
$100,000 each year is a one-time
appropriation 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
economic security.
(f) $300,000 each year is added to the
base for youth intervention programs
under Minnesota Statutes, section
268.30. Of this appropriation, $15,000
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.
(g) $150,000 each year is added to the
base for grants to Youthbuild programs
under Minnesota Statutes, sections
268.361 to 268.3661.
Subd. 3. Rehabilitation Services 23,422,000 22,966,000
Summary by Fund
General 15,207,000 15,222,000
TANF 146,000 -0-
Special
Revenue Fund 8,069,000 7,744,000
$11,927,000 in the first year and
$11,940,000 in the second year are for
extended employment services for
persons with severe disabilities or
related conditions under Minnesota
Statutes, section 268A.15. Of this
amount, $7,719,000 the first year and
$7,719,000 the second year are from the
workforce development fund; of which
$400,000 each year is to increase the
reimbursement rates for extended
employment services. It is the
intention of the legislature that the
funding for extended employment from
the workforce development fund shall be
$6,920,000 each year in the 2004-2005
biennium.
$146,000 the first year is from the
state's 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
economic security for extended
employment services for the
continuation of efforts to provide
extended employment training through
the welfare-to-work extended employment
partnership program to welfare
recipients with severe impairments to
employment as provided for under
Minnesota Statutes, section 268A.15.
Of this appropriation, up to five
percent may be used for administrative
costs. This is a one-time
appropriation and is not added to the
agency's budget base.
$50,000 the first year and $50,000 the
second year are for grants to fund the
eight centers for independent living.
This appropriation shall be added to
the agency's base level funding for the
2004-2005 biennium.
$500,000 the first year and $500,000
the second year are added to the base
for grants for programs that provide
employment support services to persons
with mental illness under Minnesota
Statutes, sections 268A.13 and
268A.14. Up to $70,000 each year may
be used for administrative and salary
expenses.
$175,000 the first year is appropriated
from the workforce development fund for
purposes of workplace HIV education.
This is a one-time appropriation.
$25,000 each year from the workforce
development fund is for grants to the
Minnesota employment center for people
who are deaf or hard-of-hearing. This
appropriation is added to the base
level funding for the 2002-2003
biennium for the Minnesota employment
center for people who are deaf or
hard-of-hearing. Funds not expended in
the first year are available in the
second.
$150,000 the first year is from the
workforce development fund for the
purpose of the vocational
rehabilitation brain injury pilot
program to be available until June 30,
2003. This is a one-time appropriation.
Subd. 4. State Services for the Blind
4,940,000 5,067,000
Subd. 5. Workforce Wage Assistance
$35,000 in the first year is to prepare
a report to the legislature by February
1, 2002, on the costs and benefits of
providing paid or insured wage
replacement during parental leave. The
report must include (1) estimates of
the percent of employees who currently
have the option of taking paid parental
leave, including the nature and extent
of the benefits, (2) the impact on
employers of offering paid parental
leave, including wage replacement
costs, and the impact on overall
employment, retention, and recruitment
costs, and (3) an estimate of the
public health costs of not providing
wage replacement during parental leave,
including the impact on infant care and
maternal health. The commissioners of
health and children, families, and
learning shall assist in the report's
preparation, as needed.
Subd. 6. Economic Security Contingent Account
Beginning in the 2002-2003 biennium,
the first $2,000,000 deposited in each
year of the biennium into the economic
security contingent account created
under Minnesota Statutes, section
268.196, subdivision 3, shall be
transferred upon deposit to the
workforce development fund. Deposits
in excess of the $2,000,000 shall be
used for purposes of the economic
security contingent account. It is the
intent of the legislature that in
future years, $2,000,000 each year will
be transferred in this manner.
Sec. 5. HOUSING FINANCE AGENCY 65,057,000 64,457,000
Summary by Fund
General 52,932,000 52,332,000
TANF 12,125,000 12,125,000
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
$12,004,000 the first year and
$12,004,000 the second year are for the
economic development and housing
challenge program under Minnesota
Statutes, section 462A.33. Until
January 1, 2002, the agency may
administer the appropriations under
this subdivision in the same manner as
appropriations for Minnesota Statutes,
section 462A.21, subdivision 8b, 15,
21, or 24. In funding proposals with
money appropriated under this
subdivision, the agency shall give
priority to no more than three
proposals for pilot projects
encouraging homeowners to make
improvements to the exteriors of
deteriorating properties or assisting
homeowners with interior lead hazard
reduction in targeted neighborhoods.
Eligible proposals must meet the
following criteria:
(1) the funds will be used to discount
the interest rate on the community
fix-up fund program for home
improvement loans provided through the
agency;
(2) matching funds are provided from
either a local unit of government or a
private philanthropic, religious, or
charitable organization; and
(3) the discounted interest rate loans
will be targeted to households based on
need, as determined by the housing
finance agency in consultation with the
community.
Communities receiving funds under a
proposal for this purpose shall report
to the agency on the outcomes of the
pilot project, including the number of
households served, the cost per
household, the changes in property
values, if any, in the targeted
neighborhood, and improvements, if any,
made in the targeted neighborhoods
without government subsidy during the
same time period as the pilot project.
Of this amount, $200,000 each year is
for a grant to a nonprofit organization
currently operating the CLEARCorps lead
hazard reduction project. The grant
must be used as a match for federal
funds for mitigation and rehabilitation
to reduce lead hazards. This is a
one-time allocation.
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
$3,750,000 the first year and
$3,750,000 the second year are for the
family homeless prevention and
assistance program under Minnesota
Statutes, section 462A.204, and are
available until June 30, 2003. Of this
amount, $125,000 the first year and
$125,000 the second year are one-time
appropriations 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. 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 $7,250,000 for the 2004-2005
biennium.
Subd. 5. Home Ownership Education,
Counseling, and Training
$983,000 the first year and $983,000
the second year are for the home
ownership education, counseling, and
training program under Minnesota
Statutes, section 462A.209.
Of this amount, $125,000 the first year
and $125,000 the second year are
one-time appropriations for full-cycle
home ownership services for
non-English-speaking persons, recent
immigrants, and historically
underserved populations.
Subd. 6. Housing Trust Fund
$4,623,000 the first year and
$4,623,000 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. Until
January 1, 2002, the agency may
administer the appropriations under
this subdivision in the same manner as
appropriations for Minnesota Statutes
2000, sections 462A.201, 462A.205, and
462A.21, subdivision 8b. Among
comparable rehabilitation proposals,
the agency may give a priority for
projects that include lead hazard
reduction.
Subd. 7. Affordable Rental Investment Fund
$22,000,000 the first year and
$22,000,000 the second year are for the
affordable rental investment fund
program under Minnesota Statutes,
section 462A.21, subdivision 8b. Of
this amount, $12,000,000 in each year
is a one-time appropriation and is not
added to the agency's base budget.
(a) Of this amount, $10,000,000 the
first year and $10,000,000 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.
(b) Of this appropriation, $12,000,000
the first year and $12,000,000 the
second year are to be used by the
agency to finance permanent and
supportive rental housing units and
necessary operating cost subsidies
related to the units financed and to
provide rental assistance. The
appropriation under this paragraph must
be used to finance units or provide
assistance for families whose household
income, at the time of initial
occupancy, does not exceed 30 percent
of the HUD established median income
for the metropolitan area, as defined
in Minnesota Statutes, section 473.121,
subdivision 2. The median family
income may be adjusted for families of
five or more persons. The owner of
units financed with the appropriation
under this paragraph must agree to
maintain affordability of the units
financed under this paragraph for a
30-year period.
Housing units financed in the
metropolitan area with the
appropriation under paragraph (b) must
be located near public transit that
provides regular service and access to
jobs, schools, and other services that
support self-sufficiency.
Housing units financed outside the
metropolitan area with the
appropriation under paragraph (b) must
be located near jobs, schools, and
other services that support
self-sufficiency.
The commissioner shall utilize
strategies to: (1) promote occupancy
of the units financed by the
appropriation under paragraph (b) by
households most in need of subsidized
housing and (2) encourage households to
move into homeownership or unsubsidized
housing as the household achieves
economic self-sufficiency.
The appropriation under paragraph (b)
shall be jointly administered by the
commissioners of the Minnesota housing
finance agency and the department of
human services and the director of the
strategic and long-range planning
office.
[WORKING FAMILY CREDIT.] (a) On a
regular basis, the commissioner of
revenue, with the assistance of the
commissioner of human services, shall
calculate the value of the refundable
portion of the Minnesota working family
credits provided under Minnesota
Statutes, section 290.0671, that
qualifies for federal reimbursement
from the temporary assistance to needy
families block grant. The commissioner
of revenue shall provide the
commissioner of human services with
such expenditure records and
information as are necessary to support
draw down of federal funds.
(b) Federal TANF funds, as specified in
this paragraph, are appropriated to the
commissioner of housing finance based
on calculations under paragraph (a) of
working family tax credit expenditures
that qualify for reimbursement from the
TANF block grant for income tax refunds
payable in federal fiscal years
beginning October 1, 2001. The draw
down of federal TANF funds shall be
made on a regular basis based on
calculations of credit expenditures by
the commissioner of revenue.
$12,000,000 in fiscal year 2002 and
$12,000,000 in fiscal year 2003 are
appropriated to the commissioner of the
housing finance agency. These funds
shall be transferred to the
commissioner of revenue to deposit into
the general fund. These funds shall
not become part of the 2004-2005 base
budget.
Subd. 8. Urban Indian Housing Program
$187,000 the first year and $187,000
the second year are for the urban
Indian housing program under Minnesota
Statutes, section 462A.07, subdivision
15.
Subd. 9. 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. 10. Capacity Building Grants
$340,000 the first year and $340,000
the second year are for nonprofit
capacity building grants under
Minnesota Statutes, section 462A.21,
subdivision 3b.
Subd. 11. 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. 12. 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. 13. Manufactured Home
Park Redevelopment
$400,000 is for the manufactured home
park redevelopment program created by
Minnesota Statutes, section 462A.2035,
and is available until June 30, 2003.
This is a one-time appropriation and is
not added to the agency's permanent
budget base.
Subd. 14. Rental Housing
Pilot Program
$100,000 is for a rental housing pilot
program to encourage landlords to rent
to high-risk tenants with poor rental
histories in the counties of Benton,
Clay, Dakota, Hennepin, Olmsted,
Ramsey, St. Louis, Sherburne, and
Stearns. This is a one-time
appropriation available until June 30,
2003, and is not added to the agency's
permanent budget base.
For purposes of this subdivision,
preference as a "high-risk tenant"
shall be given to a person who has had
an application for rental housing
denied for reasons other than a felony
conviction of that person or previous
willful substantial damage to rental
housing by that person.
The program shall allow local agencies
to provide payment bonds to landlords
willing to accept high-risk tenants to
reimburse them for losses caused by a
high-risk tenant. In selecting
recipients for funding under the rental
housing pilot program, priority must be
given to proposals that include
accountability provisions for
participating landlords and training
for participating tenants. Local
government units, nonprofit agencies,
or partnerships between local
government units and nonprofit agencies
are eligible for funding under the
rental housing pilot program.
Local government units must provide
matching funds, which may include
administrative costs, payment bond
funding, or property tax credits.
The agency shall consult with
representatives of the following
organizations in selecting recipients
for funding under the program:
organizations who advocate for tenants
and provide tenant training, nonprofit
and for-profit housing providers,
supportive housing service providers,
and tenant screening organizations.
The agency must report to the
legislature by January 15, 2003, on the
effectiveness of the pilot program in
securing rental housing for individuals
with poor rental histories. The report
must also address the feasibility of
and need for expanding the program
statewide and recommend best practices.
Subd. 15. Supportive Housing
Grant
$100,000 is for a grant to the district
287 foundation to assist in the
development of supportive housing to
provide independent living
opportunities for adults with
disabilities. This is a one-time
appropriation and is not added to the
agency's permanent budget base.
Subd. 16. Cancellations
(a) [TRANSFER OF DISASTER RELIEF
FUNDS.] The unobligated and
unencumbered balance appropriated to
the affordable rental investment fund
account and the community
rehabilitation fund account under Laws
1997, Second Special Session chapter 2,
section 4, is transferred on July 1,
2001, to the housing development fund
under Minnesota Statutes, section
462A.20. The unobligated and
unencumbered balance appropriated to
the affordable rental investment fund
account and the community
rehabilitation fund account under Laws
1998, chapter 383, section 2, is
transferred on July 1, 2001, to the
housing development fund under
Minnesota Statutes, section 462A.20.
(b) [RENTAL HOUSING PILOT PROGRAM.] Up
to $257,000 of the amount transferred
under paragraph (a) is for the rental
housing pilot program under subdivision
14. This is a one-time appropriation
and is not added to the agency's
permanent budget base.
(c) [SECTION 8 HOME OWNERSHIP.] Up to
$250,000 of the amount transferred
under paragraph (a) is for grants to
agencies administering the federal
section 8 housing program for
administrative costs associated with
the establishment and operation of
section 8 home ownership programs and
for grants to public or nonprofit
section 8 administering agencies or
collaboratives of those agencies to
acquire and rehabilitate or construct
homes for resale to households eligible
for section 8 assistance using section
8 vouchers and certificates to finance
the home purchases including gap
financing. The administering agencies
shall set guidelines for the sale of
homes under this subdivision to ensure
that a home buyer who later loses
eligibility for section 8 assistance
due to increased income will have an
opportunity to purchase the home and to
retain any equity built up in the
home. For purposes of this
subdivision, "section 8" means section
8 of the United States Housing Act of
1937. This is a one-time appropriation
and is not added to the agency's
permanent budget base.
(d) [HOMELESS VETERANS HOUSING.]
$420,000 of the unobligated and
unencumbered balance in the local
government unit housing account under
Minnesota Statutes, section 462A.202,
is transferred to the housing trust
fund under Minnesota Statutes, section
462A.201, for loans and grants to
assist in the development,
construction, acquisition, or
rehabilitation of supportive and
permanent housing to serve veterans and
single adults who are homeless or at
risk of becoming homeless. The loans
or grants must be used for at least two
housing projects that:
(1) are located on property owned by
the United States Department of
Veterans Affairs or other property that
could be obtained at no cost;
(2) provide or coordinate health and
social services needed by the
residents; and
(3) are a collaborative partnership
between community agencies and local
units of government or the federal
government.
Sec. 6. CHILDREN, FAMILIES,
AND LEARNING 500,000 500,000
Summary by Fund
General 250,000 250,000
TANF 250,000 250,000
[EMERGENCY SERVICES.] $500,000 the
first year and $500,000 the second year
are one-time appropriations for
emergency services grants according to
Laws 1997, chapter 162, article 3,
section 7.
Of this amount, $250,000 the first year
and $250,000 the second year are
one-time appropriations from the
state's federal TANF block grant under
Title I of Public Law Number 104-193 to
the commissioner of human services.
Sec. 7. INVESTMENT BOARD 100,000 100,000
$100,000 in each year is for the
purpose of paying staff costs related
to focusing efforts on investing in
Minnesota-based startup businesses
under new Minnesota Statutes, section
11A.26. This is a one-time
appropriation for this pilot project. *
(The preceding section was indicated as
vetoed by the governor.)
Sec. 8. COMMERCE
Subdivision 1. Total
Appropriation 27,061,000 27,728,000
Summary by Fund
General 25,398,000 26,029,000
Petroleum Cleanup 1,064,000 1,084,000
Workers'
Compensation 599,000 615,000
The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.
Subd. 2. Financial Examinations
6,379,000 6,555,000
Subd. 3. Petroleum Tank Release
Cleanup Board
1,064,000 1,084,000
This appropriation is from the
petroleum tank release cleanup fund.
Subd. 4. Administrative Services
5,852,000 6,003,000
Subd. 5. Enforcement
and Compliance 5,685,000 5,836,000
Summary by Fund
General 5,086,000 5,221,000
Workers' Compensation 599,000 615,000
Subd. 6. Energy
3,809,000 3,884,000
$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 economic security 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.
Subd. 7. Telecommunication
986,000 1,008,000
Subd. 8. Weights and Measurement
3,286,000 3,358,000
Sec. 9. BOARD OF ACCOUNTANCY 683,000 721,000
Sec. 10. BOARD OF ARCHITECTURE,
ENGINEERING, LAND SURVEYING,
LANDSCAPE ARCHITECTURE, GEOSCIENCE,
AND INTERIOR DESIGN 951,000 981,000
Sec. 11. BOARD OF BARBER
EXAMINERS 153,000 159,000
Sec. 12. LABOR AND INDUSTRY
Subdivision 1. Total
Appropriation 25,413,000 26,001,000
Summary by Fund
General 3,572,000 3,661,000
Workers'
Compensation 21,048,000 21,532,000
Special
Revenue Fund 793,000 808,000
The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.
Subd. 2. Workers' Compensation
10,912,000 11,178,000
This appropriation is from the workers'
compensation fund.
$125,000 the first year and $125,000
the second year are for grants to the
Vinland Center for rehabilitation
service.
Subd. 3. Workplace Services 7,468,000 7,644,000
Summary by Fund
General 2,493,000 2,555,000
Workers'
Compensation 4,182,000 4,281,000
Special
Revenue Fund 793,000 808,000
$204,000 the first year and $204,000
the second year are for labor education
and advancement program grants. This
appropriation is from the workforce
development fund.
Subd. 4. General Support 7,033,000 7,179,000
Summary by Fund
General 1,079,000 1,106,000
Workers'
Compensation 5,954,000 6,073,000
$5,000 in the first year is a one-time
appropriation for a study and report to
the legislature by January 15, 2002, on:
(1) the extent of wage disparities,
both in the public and private sector,
between men and women, and between
minorities and nonminorities;
(2) those factors that cause, or tend
to cause, such disparities, including
segregation between women and men, and
between minorities and nonminorities
across and within occupations; payment
of lower wages for work in
female-dominated occupations;
child-rearing responsibilities; and
education and training;
(3) the consequences of such
disparities on the economy and families
affected; and
(4) actions, including proposed
legislation, that are likely to lead to
the elimination and prevention of such
disparities.
Sec. 13. BUREAU OF MEDIATION SERVICES
Subdivision 1. Total
Appropriation 2,259,000 2,307,000
The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.
Subd. 2. Mediation Services 1,957,000 2,005,000
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.
Sec. 14. WORKERS' COMPENSATION
COURT OF APPEALS 1,569,000 1,618,000
This appropriation is from the workers'
compensation fund.
Sec. 15. PUBLIC UTILITIES
COMMISSION 3,994,000 4,163,000
Sec. 16. MINNESOTA HISTORICAL
SOCIETY
Subdivision 1. Total
Appropriation 26,865,000 27,395,000
The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.
Subd. 2. Education and
Outreach 14,935,000 15,412,000
$150,000 the first year and $200,000
the second year are for operating
expenses at the Northwest Fur Company
Post.
$150,000 the first year and $250,000
the second year are for operating
expenses at the Mill City Museum, St.
Anthony Falls.
Subd. 3. Preservation and Access 11,384,000 11,635,000
Subd. 4. Fiscal Agent 546,000 348,000
(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
79,000 -0-
(f) Farmamerica
150,000 100,000
Notwithstanding any other law, this
appropriation may be used for
operations.
(g) Little Elk Heritage Preserve
50,000 -0-
This appropriation is to assist the
Institute for Minnesota Archaeology in
site research and preservation,
economic and infrastructure
development, public outreach, and
education programming. The
appropriated funds may be matched by
nonstate sources. This is a one-time
appropriation.
(h) 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.
Subd. 5. Fund Transfer
The society may reallocate funds
appropriated in and between
subdivisions 2 and 3 for any program
purposes.
Sec. 17. COUNCIL ON BLACK
MINNESOTANS 342,000 352,000
Sec. 18. COUNCIL ON
CHICANO-LATINO AFFAIRS 334,000 344,000
Sec. 19. COUNCIL ON
ASIAN-PACIFIC MINNESOTANS 295,000 304,000
Sec. 20. INDIAN AFFAIRS
COUNCIL 584,000 602,000
Sec. 21. [FEDERAL FUND APPROVAL.]
Requests to spend federal grants and aids as shown in the
biennial budget document and its supplements for the departments
of trade and economic development, economic security, commerce,
and labor and industry; the Minnesota housing finance agency;
and Minnesota Technology, Inc., for which further review was
requested under Minnesota Statutes, section 3.3005, subdivision
2a, in January or February 2001, are approved and the amounts
shown in the budget documents are appropriated for the purpose
indicated in the request.
ARTICLE 2
POLICY PROVISIONS
Section 1. Minnesota Statutes 2000, section 3.922, is
amended by adding a subdivision to read:
Subd. 10. [RULEMAKING.] Notwithstanding section 116J.64,
subdivision 7, or other law, the council does not have authority
to adopt, amend, or repeal rules or to adjudicate contested
cases or appeals. Rules adopted before the effective date of
this subdivision may continue in effect until amended or
repealed by law.
Sec. 2. Minnesota Statutes 2000, section 116J.8731,
subdivision 1, is amended to read:
Subdivision 1. [PURPOSE.] The Minnesota investment fund is
created to provide financial assistance, through partnership
with communities, for the creation of new employment or to
maintain existing employment, and for business start-up,
expansions, and retention. It shall accomplish these goals by
the following means:
(1) creation or retention of permanent private-sector jobs
in order to create above-average economic growth consistent with
environmental protection, which includes investments in
technology and equipment that increase productivity and provide
for a higher wage;
(2) stimulation or leverage of private investment to ensure
economic renewal and competitiveness;
(3) increasing the local tax base, based on demonstrated
measurable outcomes, to guarantee a diversified industry mix;
(4) improvement of employment and economic opportunity for
citizens in the region to create a reasonable standard of
living, consistent with federal and state guidelines on low- to
moderate-income persons; and
(5) stimulation of productivity growth through improved
manufacturing or new technologies, including cold weather
testing.
Sec. 3. Minnesota Statutes 2000, section 116L.03, is
amended to read:
116L.03 [BOARD.]
Subdivision 1. [MEMBERS.] The partnership shall be
governed by a board of 12 13 directors.
Subd. 2. [APPOINTMENT.] The Minnesota job skills
partnership board consists of: nine seven members appointed by
the governor, the chair of the governor's workforce development
council, 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, the president, or the president's designee, of the
University of Minnesota, and two nonlegislator members, one
appointed by the subcommittee on committees of the senate
committee on rules and administration and one appointed by the
speaker of the house. If the chancellor or the president of the
university makes a designation under this subdivision, the
designee must have experience in technical education. Two Four
of the appointed members must be representatives from members of
the governor's workforce development council, of whom two must
represent organized labor and two must represent business and
industry. One of the appointed members must be a representative
of a nonprofit organization that provides workforce development
or job training services.
Subd. 3. [QUALIFICATIONS.] Members must have expertise in,
and be representative of the following fields of education, job
skills training, labor, business, and government.
Subd. 4. [CHAIR.] The chair shall be appointed by the
governor.
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. No member
shall serve more than two terms, and no person shall be
appointed after December 31, 2001, for any term that would cause
that person to serve a total of more than eight years on the
board. Compensation for board members is as provided in section
15.0575, subdivision 3.
Subd. 7. [OFFICES.] The department of trade and economic
development shall provide staff and administrative services for
the board. The department of trade and economic development
shall provide office space and staff to the job skills
partnership board for the execution of its duties. The board
shall hire an executive director to assist in carrying out its
duties.
Sec. 4. Minnesota Statutes 2000, section 116L.04, is
amended by adding a subdivision to read:
Subd. 4. [PERFORMANCE STANDARDS AND REPORTING.] By January
15, 2002, the board must develop performance standards for
workforce development and job training programs receiving state
funding. The standards may vary across program types. The
board may contract with a consultant to develop the performance
standards. The board must consult with stakeholder advocacy
groups, nonprofit service providers, and local workforce
councils in the development of both performance standards and
reporting requirements. The adult standards must at a minimum
measure:
(1) the employability levels of individuals as defined by
basic skill level, the amount of work experience, and barriers
to employment prior to program entry;
(2) the individual's annual income and employability level
for the 12 months prior to entering the program, the starting
annual income upon placement after completing the program,
employability level and annual income one year after completion
of the program, and the individual's reported satisfaction;
(3) the program completion rate, placement rate,
employability level upon placement, and one-year retention rate;
and
(4) the governmental cost per placement and per job
retained at one year and the percentage of program funding
coming from the state and other levels of government.
After January 15, 2002, all workforce development programs
receiving state funds must submit an annual performance report
to the board. The board may develop a uniform format for the
report and prescribe the manner in which the report is required
to be submitted.
Sec. 5. Minnesota Statutes 2000, section 116L.05, is
amended by adding a subdivision to read:
Subd. 4. [LEGISLATIVE RECOMMENDATIONS.] By January 15 of
each odd-numbered year, the board must submit recommendations to
the house and senate committees with jurisdiction over workforce
development programs, regarding modifications to, or elimination
of, existing workforce development programs and the potential
implementation of new programs. The recommendations must
include recommendations regarding funding levels and sources.
Sec. 6. Minnesota Statutes 2000, section 116L.16, is
amended to read:
116L.16 [DISTANCE-WORK GRANTS.]
The job skills partnership board may make grants-in-aid for
distance-work projects. The purpose of the grants is to promote
distance-work projects involving technology in rural areas and
may include a consortium of organizations partnering in the
development of rural technology industry. Grants may be used to
identify and train rural workers in technology, act as a
catalyst to bring together employers and rural employees to
perform distance work, and provide rural workers with physical
connections to telecommunications infrastructure, where
necessary, in order to be self-employed or employed from their
homes or satellite offices. Grants must be made according to
sections 116L.02 and 116L.04, except that:
(1) the business match may include, but is not limited
to, office space; additional management or technology staff
costs; start-up equipment costs such as telecommunications
infrastructure, additional software, or computer upgrades;
consulting fees for implementation of distance-work policies or
identification and skill assessment of potential employees; and
the joint financial contribution of two or more businesses
acting as a consortium;
(2) cash or in-kind contributions by partnering
organizations may be used as a match;
(3) eligible grantees may be educational or nonprofit
educational training organizations; and
(4) grants-in-aid may be packaged with loans under section
116L.06, subdivision 6; and
(5) with respect to grants serving as a catalyst to bring
together employers and rural employees to perform distance work,
the match must be at least one-to-two.
The board shall, to the extent there are sufficient
applications, make grant awards to as many parts of the state as
possible. Subject to the requirement for geographic
distribution of grants, preference shall be given to grant
applications that provide the most cost-effective training
proposals, that provide the best prospects for high-paying jobs
with high retention rates, or that are from more economically
distressed rural areas or communities.
Grantees must meet reporting and evaluation requirements
established by the board.
Sec. 7. [116L.17] [STATE DISLOCATED WORKER PROGRAM.]
Subdivision 1. [DEFINITIONS.] (a) For the purposes of this
section, the following terms have the meanings given them in
this subdivision.
(b) "Dislocated worker" means an individual who is a
resident of Minnesota at the time employment ceased or was
working in the state at the time employment ceased and:
(1) has been terminated or has received a notice of
termination from public or private sector employment, is
eligible for or has exhausted entitlement to unemployment
benefits, and is unlikely to return to the previous industry or
occupation;
(2) has been terminated or has received a notice of
termination of employment as a result of any plant closing or
any substantial layoff at a plant, facility, or enterprise;
(3) has been long-term unemployed and has limited
opportunities for employment or reemployment in the same or a
similar occupation in the area in which the individual resides,
including older individuals who may have substantial barriers to
employment by reason of age;
(4) has been self-employed, including farmers and ranchers,
and is unemployed as a result of general economic conditions in
the community in which the individual resides or because of
natural disasters, subject to rules to be adopted by the
commissioner;
(5) has been self-employed as a farmer or rancher and, even
though that employment has not ceased, has experienced a
significant reduction in income due to inadequate crop or
livestock prices, crop failures, or significant loss in crop
yields due to pests, disease, adverse weather, or other natural
phenomenon. This clause expires July 31, 2003; or
(6) is a displaced homemaker. A "displaced homemaker" is
an individual who has spent a substantial number of years in the
home providing homemaking service and (i) has been dependent
upon the financial support of another; and now due to divorce,
separation, death, or disability of that person, must find
employment to self support; or (ii) derived the substantial
share of support from public assistance on account of dependents
in the home and no longer receives such support.
To be eligible under this clause, the support must have
ceased while the worker resided in Minnesota.
(c) "Eligible organization" means a state or local
government unit, nonprofit organization, community action
agency, business organization or association, or labor
organization.
(d) "Plant closing" means the announced or actual permanent
shutdown of a single site of employment, or one or more
facilities or operating units within a single site of employment.
(e) "Substantial layoff" means a permanent reduction in the
workforce, which is not a result of a plant closing, and which
results in an employment loss at a single site of employment
during any 30-day period for at least 50 employees excluding
those employees that work less than 20 hours per week.
Subd. 2. [GRANTS.] The board shall make grants to
workforce service areas or other eligible organizations to
provide services to dislocated workers. The board shall
allocate funds available for the purposes of this section in its
discretion to respond to large layoffs. The board shall
regularly allocate funds to provide services to individual
dislocated workers or small groups. The allocation for this
purpose must be no less than 35 percent and no more than 50
percent of the projected collections, interest and other
earnings of the workforce development fund during the period for
which the allocation is made, less any collection costs paid out
of the fund. The board shall consider the need for services to
individual workers and workers in small layoffs in comparison to
those in large layoffs relative to the needs in previous years
when making this allocation. The board may, in its discretion,
allocate funds carried forward from previous years under
subdivision 9 for large, small, or individual layoffs.
Subd. 3. [ALLOCATION OF FUNDS.] The board, in consultation
with local workforce councils and local elected officials, shall
develop a method of distributing funds to provide services for
dislocated workers who are dislocated as a result of small or
individual layoffs. The board shall consider current requests
for services and the likelihood of future layoffs when making
this allocation. The board shall consider factors for
determining the allocation amounts that include, but are not
limited to, the previous year's obligations and projected
layoffs. After the first quarter of the program year, the board
shall evaluate the obligations by workforce service areas for
the purpose of reallocating funds to workforce service areas
with increased demand for services. Periodically throughout the
program year, the board shall consider making additional
allocations to the workforce service areas with a demonstrated
need for increased funding. The board shall make an initial
determination regarding allocations under this subdivision by
July 15, 2001, and in subsequent years shall make a
determination by April 15.
[EFFECTIVE DATE.] This subdivision is effective the day
following final enactment.
Subd. 4. [USE OF FUNDS.] Funds granted by the board under
this section may be used for any combination of the following,
except as otherwise provided in this section:
(1) employment transition services such as developing
readjustment plans for individuals; outreach and intake; early
readjustment; job or career counseling; testing; orientation;
assessment of skills and aptitudes; provision of occupational
and labor market information; job placement assistance; job
search; job development; prelayoff assistance; relocation
assistance; and programs provided in cooperation with employers
or labor organizations to provide early intervention in the
event of plant closings or substantial layoffs;
(2) services that will allow the participant to become
reemployed by retraining for a new occupation or industry,
enhancing current skills, or relocating to employ existing
skills, including classroom training; occupational skill
training; on-the-job training; out-of-area job search;
relocation; basic and remedial education; literacy and English
for training non-English speakers; entrepreneurial training; and
other appropriate training activities directly related to
appropriate employment opportunities in the local labor market;
and
(3) support services, including family care assistance,
including child care; commuting assistance; housing and rental
assistance; counseling assistance, including personal and
financial; health care; emergency health assistance; emergency
financial assistance; work-related tools and clothing; and other
appropriate support services that enable a person to participate
in an employment and training program.
Subd. 5. [COST LIMITATIONS.] Funds allocated to a grantee
are subject to the following cost limitations:
(1) no more than 10 percent may be allocated for
administration;
(2) at least 50 percent must be allocated for training
assistance as provided in subdivision 4, clause (2); and
(3) no more than 15 percent may be allocated for support
services as provided in subdivision 4, clause (3).
A waiver of the training assistance minimum in clause (2)
may be sought, but no waiver shall allow less than 30 percent of
the grant to be spent on training assistance. A waiver of the
support services maximum in clause (3) may be sought, but no
waiver shall allow more than 20 percent of the grant to be spent
on support services.
Subd. 6. [PERFORMANCE STANDARDS.] (a) The board, in
consultation with representatives of local workforce councils
and local elected officials, shall establish performance
standards for the programs and activities administered or funded
under this section. The board may use, when appropriate,
existing federal performance standards or, if the commissioner
determines that federal standards are inadequate or not
suitable, may formulate new performance standards to ensure that
the programs and activities of the dislocated worker program are
effectively administered.
(b) The board shall, at a minimum, establish performance
standards that appropriately gauge the program's effectiveness
at placing dislocated workers in employment, replacing lost
income resulting from dislocation, early intervention with
workers shortly after dislocation, and retraining of workers
from one industry or occupation to another.
Subd. 7. [REPORTS.] (a) Grantees receiving funds under
this section shall report to the board information on program
participants, activities funded, and utilization of funds in a
form and manner prescribed by the board.
(b) The board shall report quarterly to the workforce
development council information on grants awarded, activities
funded, and plant closings and substantial layoffs. Specific
information to be reported shall be by agreement between the
board and the workforce development council.
Subd. 8. [ADMINISTRATIVE COSTS.] No more than three
percent of the funds appropriated to the board for the purposes
of this section may be spent by the board for its administrative
costs.
Subd. 9. [CARRY FORWARD.] 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. 8. Minnesota Statutes 2000, section 138.664, is
amended by adding a subdivision to read:
Subd. 50a. Little Elk Heritage Preserve, Morrison county.
Sec. 9. [181.9455] [LEAVE FOR ORGAN DONATION.]
Subdivision 1. [DEFINITIONS.] (a) For the purposes of this
section, the following terms have the meanings given to them in
this subdivision.
(b) "Employee" means a person who performs services for
hire for a public employer, for an average of 20 or more hours
per week, and includes all individuals employed at any site
owned or operated by a public employer. Employee does not
include an independent contractor.
(c) "Employer" means a state, county, city, town, school
district, or other governmental subdivision that employs 20 or
more employees.
Subd. 2. [LEAVE.] An employer must grant paid leaves of
absence to an employee who seeks to undergo a medical procedure
to donate an organ or partial organ to another person. The
combined length of the leaves shall be determined by the
employee, but may not exceed 40 work hours for each donation,
unless agreed to by the employer. The employer may require
verification by a physician of the purpose and length of each
leave requested by the employee for organ donation. If there is
a medical determination that the employee does not qualify as an
organ donor, the paid leave of absence granted to the employee
prior to that medical determination is not forfeited.
Subd. 3. [NO EMPLOYER SANCTIONS.] An employer shall not
retaliate against an employee for requesting or obtaining a
leave of absence as provided by this section.
Subd. 4. [RELATIONSHIP TO OTHER LEAVE.] This section does
not prevent an employer from providing leave for organ donations
in addition to leave allowed under this section. This section
does not affect an employee's rights with respect to any other
employment benefit.
Subd. 5. [REPORT.] The commissioner of employee relations
must report to the legislature on the use and costs of the leave
under this section. The report must be made by February 15, 2003.
Subd. 6. [SUNSET.] This section expires on June 30, 2004.
Sec. 10. Minnesota Statutes 2000, section 184.29, is
amended to read:
184.29 [FEES.]
Before a license is granted to an applicant, the applicant
shall pay the following fee:
(a) An employment agent shall pay an annual license fee of
$250 for each license.
(b) A search firm exempt under section 184.22, subdivision
2, shall pay an annual registration fee of $250, accompanying
the annual statement to the commissioner.
(c) An applicant for a counselor's license shall pay a
license fee of $20 and a renewal fee of $10.
(d) (c) An applicant for an employment agency manager's
license shall pay a license fee of $20 and a renewal fee of $10.
[EFFECTIVE DATE.] This section is effective July 1, 2003.
Sec. 11. Minnesota Statutes 2000, section 184.30,
subdivision 1, is amended to read:
Subdivision 1. Every application for an employment
agency's license, and every annual report required to be filed
under section 184.22, subdivision 2, must be accompanied by a
surety bond approved by the department in the amount of $10,000
for each location; except, that for a search firm, the bond is
required only for the first five years of registration. For a
search firm that was previously licensed as an employment
agency, the bond is required only until the firm has met the
bond requirement as an agency or as a search firm for a total of
at least five years. The bond must be filed in the office of
the secretary of state and conditioned that the employment
agency and each member, shareholder, director, or officer of a
firm, partnership, corporation, or association operating as an
employment agency will comply with the provisions of sections
184.21 to 184.40 and any contract made by the employment agent
in the conduct of the business. A person damaged by a breach of
any condition of the bond may bring an action on the bond, and
successive actions may be maintained on it.
[EFFECTIVE DATE.] This section is effective July 1, 2003.
Sec. 12. Minnesota Statutes 2000, section 184.38,
subdivision 6, is amended to read:
Subd. 6. (a) No employment agent or search firm shall send
out any applicant for employment without having obtained a job
order, and if no employment of the kind applied for existed at
the place to which the applicant was directed, the employment
agent or search firm shall refund to the applicant, within 48
hours of demand, any sums paid by the applicant for
transportation in going to and returning from the place.
(b) Nothing in this chapter shall be construed to prevent
an employment agent or search firm from directing an applicant
to an employer where the employer has previously requested
interviews with applicants of certain types and qualifications,
even though no actual vacancy existed in the employer's
organization at the time the applicant was so directed; nor
shall it prevent the employment agent or search firm from
attempting to sell the services of an applicant to the employer
even though no order has been placed with the employment agent
or search firm; provided, that prior to scheduling an interview
with an employer, when no opening currently exists with that
employer, the applicant is clearly informed that no opening
exists at that time.
[EFFECTIVE DATE.] This section is effective July 1, 2003.
Sec. 13. Minnesota Statutes 2000, section 184.38,
subdivision 8, is amended to read:
Subd. 8. No employment agent or search firm shall
knowingly cause to be printed or published a false or fraudulent
notice or advertisement for help or for obtaining work or
employment. For purposes of this subdivision the phrase "false
or fraudulent notice or advertisement" shall include the
following:
(a) The advertisement of any job for which there is no bona
fide oral or written job order and completed job order form in
existence at the time the advertisement is placed;
(b) The inclusion in any advertisement of any information
concerning the identity, availability, features, or requirements
of any advertised job when such information is not substantiated
by, and included in, the supporting job order form;
(c) The advertisement of any job opening of the type
described in subdivision 6, clause (b);
(d) The advertisement of any job without the inclusion in
the advertisement of the "job order number" required in
subdivision 18;
(e) If an applicant appears at any agency or search firm in
response to the advertisement of a particular job, the failure
to attempt placement of the applicant in the advertised job;
provided however, that the agency or search firm may refuse to
attempt such placement if the reason(s) for the refusal are
clearly and truthfully disclosed to the applicant either orally
or in writing.
[EFFECTIVE DATE.] This section is effective July 1, 2003.
Sec. 14. Minnesota Statutes 2000, section 184.38,
subdivision 9, is amended to read:
Subd. 9. No employment agent or search firm shall place or
assist in placing any person in unlawful employment.
[EFFECTIVE DATE.] This section is effective July 1, 2003.
Sec. 15. Minnesota Statutes 2000, section 184.38,
subdivision 10, is amended to read:
Subd. 10. No employment agent or search firm shall fail to
state in any advertisement, proposal, or contract for
employment, that there is a strike or lockout at the place of
proposed employment, if the agent or firm has knowledge that
such condition exists.
[EFFECTIVE DATE.] This section is effective July 1, 2003.
Sec. 16. Minnesota Statutes 2000, section 184.38,
subdivision 11, is amended to read:
Subd. 11. No employment agency or its employee may split,
divide, or share, directly or indirectly, any fee, charge, or
compensation received from any employer or applicant with any
employer, or person in any way connected with the employer's
business. No search firm or its employee may split, divide, or
share, directly or indirectly, any fee, charge, or compensation
received from any employer with any person connected in any way
with the employer's business. A violation of this subdivision
shall be punished by a fine of not less than $100, and not more
than $3,000, or on failure to pay the fine by imprisonment for a
period not to exceed one year, or both, at the discretion of the
court.
[EFFECTIVE DATE.] This section is effective July 1, 2003.
Sec. 17. Minnesota Statutes 2000, section 184.38,
subdivision 17, is amended to read:
Subd. 17. Except for applicant information given in the
course of normal agency or firm operations, no employment agent
or search firm shall voluntarily sell, give, or otherwise
transfer any files, records, or other information relating to
its employment agency or search firm applicants and employers to
any person other than a licensed employment agent or registered
search firm or a person who agrees to obtain an employment
agency license or register as a search firm. Every employment
agent or search firm who ceases to engage in the business of or
act as an employment agent or search firm shall notify the
department of such fact within 30 days thereof, and shall advise
the department as to the disposition of all files and other
records relating to its employment agency or search firm
business.
[EFFECTIVE DATE.] This section is effective July 1, 2003.
Sec. 18. Minnesota Statutes 2000, section 184.38,
subdivision 18, is amended to read:
Subd. 18. Every job order communicated to an agency or
search firm shall be recorded by the agency or search firm on a
job order form which form shall contain specific information as
prescribed by the department. A job order form shall be filled
out for each job order prior to any attempt to advertise the job
opening or to place persons in said job. Such forms shall each
be assigned a separate number and shall be maintained by the
agency or search firm for a period of one year.
[EFFECTIVE DATE.] This section is effective July 1, 2003.
Sec. 19. Minnesota Statutes 2000, section 184.38,
subdivision 20, is amended to read:
Subd. 20. No employment agent or search firm shall
knowingly misrepresent to any employer the educational
background, skills, or qualifications of any job candidate; or
knowingly misrepresent to a job candidate the responsibilities,
salary, or other features of any position of employment.
[EFFECTIVE DATE.] This section is effective July 1, 2003.
Sec. 20. Minnesota Statutes 2000, section 184.41, is
amended to read:
184.41 [VIOLATIONS.]
Any person who engages in the business of or acts as an
employment agent or counselor without first procuring a license
as required by section 184.22, and any employment agent,
manager, or counselor who violates the provisions of this
chapter, and any exempt firm which violates any of the
applicable provisions of this chapter, is guilty of a
misdemeanor.
In addition to the penalties for commission of a
misdemeanor, the department may bring an action for an
injunction against any person who engages in the business of or
acts as an employment agent or counselor without first procuring
the license required under section 184.22, or who engages in the
business of or acts as a search firm without first filing the
registration required under section 184.22, subdivision 3, and
against any employment agent, manager, or counselor, or search
firm who violates the applicable provisions of this chapter. If
an agency, manager, or counselor, or search firm is found guilty
of a misdemeanor in any action relevant to the operation of an
agency, or search firm the department may suspend or revoke the
license or registration of the agency, manager, or counselor, or
search firm.
[EFFECTIVE DATE.] This section is effective July 1, 2003.
Sec. 21. Minnesota Statutes 2000, section 216C.41, as
amended by Laws 2001, chapter 212, article 5, section 1, is
amended to read:
216C.41 [RENEWABLE ENERGY PRODUCTION INCENTIVE.]
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, or
generates electricity after substantial refurbishing of a
facility that begins after July 1, 2001.
(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 December 31, 1996, and before July 1, 1999;
(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.
(d) "Qualified on-farm biogas recovery facility" means an
anaerobic digester system that:
(1) is located at the site of an agricultural operation;
(2) is owned by a natural person who owns or rents the land
where the facility is located; and
(3) begins generating electricity after July 1, 2001.
(e) "Anaerobic digester system" means a system of
components that processes animal waste based on the absence of
oxygen and produces gas used to generate electricity.
Subd. 2. [INCENTIVE PAYMENT; APPROPRIATION.] (a) Incentive
payments shall must be made according to this section to (1) a
qualified on-farm biogas recovery facility, (2) 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, (3) 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, or
(4) the owner of a publicly owned dam that is in need of
substantial repair, for electric energy that is generated by a
hydropower facility at the dam and the annual incentive payments
will be used to fund the structural repairs and replacement of
structural components of the dam, or to retire debt incurred to
fund those repairs.
(b) 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 must be in
a form and submitted at a time the commissioner establishes.
(c) There is annually appropriated from the general fund
sums sufficient to make the payments required under this section.
Subd. 3. [ELIGIBILITY WINDOW.] Payments may be made under
this section only for electricity generated:
(1) from a qualified hydroelectric facility that is
operational and generating electricity before December 31,
2002 2005; or
(2) from a qualified wind energy conversion facility that
is operational and generating electricity before January 1,
2005; or
(3) from a qualified on-farm biogas recovery facility from
July 1, 2001, through December 31, 2015.
Subd. 4. [PAYMENT PERIOD.] (a) A facility may receive
payments under this section for a ten-year period. No payment
under this section may be made for electricity generated:
(1) by a qualified hydroelectric facility after December
31, 2010 2015; or
(2) by a qualified wind energy conversion facility after
December 31, 2015; or
(3) by a qualified on-farm biogas recovery facility after
December 31, 2015.
(b) The payment period begins and runs consecutively from
the first year in which electricity generated from the facility
is eligible for incentive payment or after substantial repairs
to the hydropower facility dam funded by the incentive payments
are initiated.
Subd. 5. [AMOUNT OF PAYMENT.] An incentive payment is
based on the number of kilowatt hours of electricity generated.
The amount of the payment is:
(1) for a facility described under subdivision 2, paragraph
(a), clause (4), 1.0 cents per kilowatt hour; and
(2) for all other facilities, 1.5 cents per kilowatt hour.
For electricity generated by qualified wind energy
conversion facilities, the incentive payment under this section
is limited to no more than 100 megawatts of nameplate capacity.
During any period in which qualifying claims for incentive
payments exceed 100 megawatts of nameplate capacity, the
payments must be made to producers in the order in which the
production capacity was brought into production.
Sec. 22. Minnesota Statutes 2000, section 268.022,
subdivision 2, is amended to read:
Subd. 2. [DISBURSEMENT OF SPECIAL ASSESSMENT FUNDS.] (a)
The money collected under this section shall be deposited in the
state treasury and credited to the workforce development fund to
provide for employment and training programs. The workforce
development fund is created as a special account in the state
treasury.
(b) All money in the fund not otherwise appropriated or
transferred is appropriated to the commissioner who job skills
partnership board for the purposes of section 116L.17. The
board must act as the fiscal agent for the money and must
disburse that money for the purposes of this section 116L.17,
not allowing the money to be used for any other obligation of
the state. All money in the 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 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 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 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. 23. Minnesota Statutes 2000, section 268.145,
subdivision 1, is amended to read:
Subdivision 1. [NOTIFICATION.] (a) Upon filing an
application for unemployment benefits, the applicant shall be
informed that:
(1) unemployment benefits are subject to federal and state
income tax;
(2) there are requirements for filing estimated tax
payments;
(3) the applicant may elect to have federal income tax
withheld from unemployment benefits;
(4) if the applicant elects to have federal income tax
withheld, the applicant may, in addition, elect to have
Minnesota state income tax withheld; and
(5) at any time during the benefit year the applicant may
change a prior election.
(b) If an applicant elects to have federal income tax
withheld, the commissioner shall deduct 15 ten percent for
federal income tax, rounded to the nearest whole dollar. If an
applicant also elects to have Minnesota state income tax
withheld, the commissioner shall make an additional five percent
deduction for state income tax. Any amounts deducted or offset
pursuant to sections 268.155, 268.156, 268.18, and 268.184 have
priority over any amounts deducted under this section. Federal
income tax withholding has priority over state income tax
withholding.
(c) An election to have income tax withheld shall not be
retroactive and shall only apply to unemployment benefits paid
after the election.
[EFFECTIVE DATE.] This section is effective August 1, 2001.
Sec. 24. Minnesota Statutes 2000, section 268.665, is
amended by adding a subdivision to read:
Subd. 3a. [EXECUTIVE COMMITTEE DUTIES.] The executive
committee must, with advice and input of local workforce
councils and other stakeholders as appropriate, develop
performance standards for the state workforce centers. By
January 15, 2002, and each odd-numbered year thereafter, the
executive committee shall submit a report to the senate and
house committees with jurisdiction over workforce development
programs regarding the performance and outcomes of the workforce
centers. The report must provide recommendations regarding
workforce center funding levels and sources, program changes,
and administrative changes.
Sec. 25. Minnesota Statutes 2000, section 473.195, is
amended by adding a subdivision to read:
Subd. 5. [HRA GOVERNING BOARD.] For the purposes of
exercising the authority granted to it under this section, the
council may, at its sole discretion, establish within the
council's existing organizational structure a separate governing
body to which the council may delegate any or all of the
authority granted to the council under this section. The
resolution establishing the separate governing body must:
(1) set out the powers and duties delegated to the separate
governing body;
(2) prescribe the number, qualifications, and terms of its
members; and
(3) provide for any other terms and conditions that are
deemed appropriate by the council.
The council shall appoint the members of the separate governing
body in accordance with a process established by the council.
No fewer than 75 percent of the members of the separate
governing body must be council members. For purposes of
compliance with United States Code, title 42, section 1437(b),
and implementing federal regulations, at least one member of the
separate governing body members must be a resident directly
assisted by the council. Members are entitled to reimbursement
for all actual and necessary expenses incurred in the
performance of governing body business, and a member other than
a council member is entitled to payment of $50 for each day the
member attends one or more meetings of the separate governing
body or performs other services authorized by the body. The
council shall provide administrative and staff support to the
separate governing body. The council may, at its sole
discretion, abolish the separate governing body or limit or
expand its delegated authority. Nothing in this section impairs
existing contracts to which the council is a party or limits the
council's ability to enter into contracts when the council
exercises any of the functions, rights, powers, duties,
privileges, immunities, and limitations granted to the council
by this section.
Sec. 26. Laws 1993, chapter 301, section 1, subdivision 4,
as amended by Laws 1999, chapter 47, section 1, is amended to
read:
Subd. 4. [WAIVER.] (a) Upon receipt of the committee
report required by subdivision 3, each entity head shall submit
the list of recommended waivers to the commissioner of employee
relations. The commissioner shall then grant the waivers
requested by each entity, effective for the requesting entity,
for a period ending June 30, 1997, except the waivers granted
for the Minnesota housing finance agency shall extend to June
30, 2001 2003, subject to the restrictions in paragraph (b) and
to revision in accordance with subdivision 5. The commissioner
shall waive a rule by granting a variance under Minnesota
Statutes, section 14.05, subdivision 4.
(b) The commissioner may not grant a waiver if it would
result in the layoff of classified employees or unclassified
employees covered by a collective bargaining agreement except as
provided in a plan negotiated under Minnesota Statutes, chapter
179A, that provides options to layoff for employees who would be
affected. If a proposed waiver would violate the terms of a
collective bargaining agreement reached under Minnesota
Statutes, chapter 179A, the waiver may not be granted without
the consent of the exclusive representative that is a party to
the agreement.
[EFFECTIVE DATE.] This section is effective July 1, 2001.
Sec. 27. Laws 1995, chapter 248, article 12, section 2, as
amended by Laws 1999, chapter 47, section 2, is amended to read:
Sec. 2. [TERMINATION.]
Section 1 and the civil service pilot project in the
housing finance agency as authorized by Laws 1993, chapter 301,
terminate June 30, 2001 2003, or at any earlier time by a method
agreed upon by the commissioners of employee relations and
housing finance and the affected exclusive bargaining
representative of state employees.
[EFFECTIVE DATE.] This section is effective July 1, 2001.
Sec. 28. Laws 1995, chapter 248, article 13, section 2,
subdivision 2, as amended by Laws 1997, chapter 97, section 13,
is amended to read:
Subd. 2. [PILOT PROJECT.] During the biennium ending June
30, 2001 2005, the governor shall designate an executive agency
that will conduct a pilot civil service project. The pilot
program must adhere to the policies expressed in subdivision 1
and in Minnesota Statutes, section 43A.01. For the purposes of
conducting the pilot project, the commissioner of the designated
agency is exempt from the provisions that relate to employment
in Minnesota Statutes, chapter 43A, Minnesota Rules, chapter
3900, and administrative procedures and policies of the
department of employee relations. If a proposed exemption from
the provisions that relate to employment in Minnesota Statutes,
chapter 43A, Minnesota Rules, chapter 3900, and administrative
procedures and policies of the department of employee relations
would violate the terms of a collective bargaining agreement
effective under Minnesota Statutes, chapter 179A, the exemption
is not effective without the consent of the exclusive
representative that is a party to the agreement. Upon request
of the commissioner carrying out the pilot project, the
commissioner of employee relations shall provide technical
assistance in support of the pilot project. This section does
not exempt an agency from compliance with Minnesota Statutes,
sections 43A.19 and 43A.191, or from rules adopted to implement
those sections.
[EFFECTIVE DATE.] This section is effective July 1, 2001.
Sec. 29. [WORKFORCE CENTERS STRATEGIC PLAN.]
The executive committee of the governor's workforce
development council shall develop a strategic plan regarding the
appropriate placement and number of workforce centers within the
state. The executive committee must consult with local
workforce boards when determining the placement and number of
workforce centers in their area. The plan must recognize the
differing employment needs of various regions, the workforce
population within proximity of a center, and the potential for
colocation of the workforce centers with available educational
institutions. By January 15, 2002, the executive committee
shall submit the plan and recommendations for closure or
consolidation of workforce centers to the senate and house
committees with jurisdiction over workforce development programs.
Sec. 30. [TRAINING FOR LOW-INCOME WORKERS.]
The job skills partnership board may operate a pilot
project to provide vouchers for individuals who are
training-ready, have incomes at or below 200 percent of the
federal poverty line, and have dependent children, but are not
eligible for training services under the Minnesota family
investment program. The board may grant funds to eligible
recipients to pay for vouchers for board-certified training.
Training funded with grants provided under this section should
be flexible and responsive in order to maximize the ability of
funded programs to adapt to changes in economic and business
conditions. Eligible recipients of grants may include:
(1) public, private, or nonprofit entities that provide
employment services to low-income individuals; and
(2) partnerships of two or more eligible recipients under
clause (1), or partnerships of one or more eligible recipients
and the council on Black Minnesotans, the Chicano-Latino affairs
council, the council on Asian-Pacific Minnesotans, the Indian
affairs council, the Minneapolis community development agency,
or the St. Paul port authority.
The job skills partnership board shall report to the
legislature on the performance and progress of the pilot project
on or before September 1, 2003.
Sec. 31. [WORKFORCE ENHANCEMENT FEE.]
Subdivision 1. [FEE.] Notwithstanding Minnesota Statutes,
section 268.022, effective January 1, 2002, the special
assessment under that section on taxable wages as defined in
Minnesota Statutes, section 268.035, subdivision 24, is
suspended until December 31, 2005. Effective January 1, 2002,
there shall be assessed, in addition to unemployment taxes due
under Minnesota Statutes, section 268.051, a workforce
enhancement fee of .09 percent on taxable wages. This fee shall
be due and be paid on the same schedule and in the same manner
as unemployment taxes under Minnesota Statutes, section
268.051. Any amount past due under this section shall be
subject to the same interest and collection provisions as
unemployment taxes. This fee shall expire on December 31, 2005.
Subd. 2. [USE OF FUNDS COLLECTED.] An amount equal to .07
percent on taxable wages shall be deposited in the workforce
development fund provided for under Minnesota Statutes, section
268.022, subdivision 2. An amount equal to .02 percent on
taxable wages, less reimbursement for collection costs of the
total amount of the fee, shall be deposited in the unemployment
insurance technology initiative account provided for in section
32.
Sec. 32. [UNEMPLOYMENT INSURANCE TECHNOLOGY INITIATIVE.]
Subdivision 1. [PURPOSE; SET-ASIDE.] The unemployment
insurance technology initiative involves a set-aside of a
portion of the money that would otherwise go into the
unemployment insurance trust fund. This money shall be used on
technology to substantially enhance unemployment insurance
services to both applicants for benefits and employers.
Subd. 2. [TAX REDUCTION.] Notwithstanding Minnesota
Statutes, section 268.051, subdivision 2, paragraph (b),
effective January 1, 2002, the base unemployment tax on all
taxable wages shall be reduced by .02 percent. This subdivision
expires December 31, 2005.
Subd. 3. [ACCOUNT.] (a) Effective January 1, 2002, the
unemployment insurance technology initiative account is created
as a special account in the special revenue fund in the state
treasury. This account lapses on December 31, 2007, and any
money remaining in the account on that date shall be paid into
the unemployment insurance program trust fund. This account
consists of all money collected by the workforce enhancement fee
provided by section 31 and designated for deposit in this
account and all interest earned on any money in this account,
less reimbursement of collection costs under paragraph (e).
(b) Money in the unemployment insurance technology
initiative account is appropriated to the commissioner of
economic security and shall be allocated and expended by the
commissioner only for technology initiatives to enhance
unemployment insurance services for both applicants for benefits
and employers.
(c) Any funds not allocated, obligated, or expended in a
fiscal year shall be available for allocation, obligation, and
expenditure in the following fiscal year.
(d) If the total amount collected by the technology
initiative fee, excluding the amount expended for reimbursement
of collection costs plus interest earned upon money in the
unemployment insurance technology initiative account exceeds
$30,000,000, the excess shall be paid into the unemployment
insurance program trust fund.
(e) Because the administrative cost of collection of the
workforce enhancement fee is borne by federal money made
available only to administer the unemployment insurance program,
the commissioner shall negotiate with the United States
Department of Labor the amount of any reimbursement for costs
related to the collection of the fee. Because the reimbursement
is subsequently made available by the United States Department
of Labor to the commissioner for administration of the
unemployment insurance program, the commissioner shall expend
the reimbursement on personnel costs of operating the
unemployment insurance program's technology services.
Sec. 33. [SUNSET.]
Section 31 expires on December 31, 2005. Section 32
expires on December 31, 2007.
Sec. 34. [IMPORTANCE.]
The Little Elk Heritage Preserve, a 92.25 acre
archaeological park and nature preserve on the Mississippi river
near Little Falls, contains a unique cluster of cultural and
natural resources that together document diverse human
activities and connections to natural environments in central
Minnesota over thousands of years. The resources at Little Elk
Heritage Preserve include archaeological remains identified with
ancient native America, the colonial fur trade, early Dakota and
Ojibwe life, Black and women's history, Mississippi valley
exploration, a mission farm and school, United States Indian
treaties, territorial period homesteading and townsite
development, the conflict of 1862, hunting, gathering,
portaging, quarrying, logging, farming, dam building, grist
milling, saw milling, and wood products manufacturing. Ongoing
research programs explore and interpret these important
resources.
Sec. 35. [HISTORIC SITE DEFINITION; LITTLE ELK HERITAGE
PRESERVE.]
The state register of historic places listing for the
Little Elk Heritage Preserve includes those portions of the
preserve that contain significant archaeological or historic
resources.
Sec. 36. [TRANSFER TO COUNTY HISTORICAL SOCIETY.]
Notwithstanding Minnesota Statutes 2000, chapter 134 and
section 138.053, the city of Anoka may transfer before January
1, 2002, the balance in the city of Anoka library fund to the
Anoka county historical society for the society's use for any
Anoka county historical society purpose.
Sec. 37. [BOARD OF ACCOUNTANCY FEE.]
The legislature approves the board of accountancy's
proposed fee increase included in the governor's 2002-2003
biennial budget. This approval applies only to the 2002-2003
biennium.
Sec. 38. [ELECTRONIC REPORTING; FORMAT.]
In developing electronic reporting systems for use in the
administration of the workers' compensation system, the
department of labor and industry must consult with the
International Association of Industrial Accident Boards and
Commissions (IAIABC) so that the department's format of data
elements and their definitions conform as closely as possible to
the data dictionary used by the IAIABC.
Sec. 39. [MUNICIPAL UTILITY AND COOPERATIVE ELECTRIC
ASSOCIATIONS; CONSERVATION INVESTMENTS.]
Notwithstanding Laws 2001, chapter 212, article 8, section
6, the conservation investment obligation of a municipal utility
shall, until June 1, 2003, exclude revenues attributable to
electricity purchased from a public utility governed by
Minnesota Statutes, section 216B.241, subdivision 1a, or a
cooperative electric association governed by Minnesota Statutes,
section 216B.241, subdivision 1b. This section expires June 1,
2003.
Sec. 40. [RETROACTIVITY.]
A contract encumbered or a grant awarded by a state agency
before September 1, 2001, may be made retroactive to July 1,
2001.
Sec. 41. [REPEALER.]
(a) Minnesota Statutes 2000, sections 268.975; 268.976;
268.9771; 268.978; 268.9781; 268.9782; 268.9783; 268.979; and
268.98, are repealed.
(b) Minnesota Statutes 2000, sections 184.22, subdivisions
2, 3, 4, and 5; and 184.37, subdivision 2, are repealed
effective July 1, 2003.
ARTICLE 3
REORGANIZATION OF DEPARTMENTS
Section 1. [DEPARTMENT OF ECONOMIC SECURITY ABOLISHED.]
The department of economic security is abolished.
[EFFECTIVE DATE.] This section is effective July 1, 2002.
Sec. 2. [TRANSFER OF RESPONSIBILITIES OF DEPARTMENT OF
ECONOMIC SECURITY.]
Subdivision 1. [TO DEPARTMENT OF TRADE AND ECONOMIC
DEVELOPMENT.] The responsibilities of the department of economic
security performed by its workforce services unit for employment
transition services, youth services, welfare-to-work services,
and workforce exchange services are transferred to the
department of trade and economic development.
[EFFECTIVE DATE.] This subdivision is effective July 1,
2002.
Subd. 2. [TO DEPARTMENT OF COMMERCE.] The responsibility
for energy programs of the department of economic security is
transferred to the department of commerce.
[EFFECTIVE DATE.] This subdivision is effective October 1,
2001.
Subd. 3. [OTHER RESPONSIBILITIES.] The transition team
established under section 4 shall make recommendations regarding
the appropriate transfer of the responsibilities of the
department of economic security not otherwise transferred in
this section.
Sec. 3. [ORGANIZATION OF DEPARTMENT OF TRADE AND ECONOMIC
DEVELOPMENT.]
The department of trade and economic development shall have
a division of economic development consisting of business and
community development, the Minnesota trade office, tourism
division, information and analysis division, and administrative
support. The job skills partnership program shall be housed in
the department and shall have a policy, research, and evaluation
unit. The job skills partnership board shall provide
targeted-worker services to include the dislocated worker
program and welfare-to-work services formerly located in the
department of economic security. The board shall have a unit
providing special programs under a workforce transition services
unit.
[EFFECTIVE DATE.] This section is effective July 1, 2002.
Sec. 4. [TRANSITION TEAM CREATION; COMPOSITION.]
Subdivision 1. [CREATION.] A workforce development program
reorganization transition advisory team is created. The
transition team shall make recommendations to the governor and
the legislature by December 1, 2001, concerning the state
government structure and department organization for delivering
workforce development programs and other issues described in
section 5. The object of the reorganization is to consolidate
and streamline the state's workforce development system and
programs so as to provide the most efficient and effective
workforce development programs.
Subd. 2. [TRANSITION TEAM COMPOSITION.] The transition
team shall consist of 12 members appointed as follows:
(1) six members appointed by the governor of which one
shall represent business, one shall represent labor, one shall
represent job training providers, and one shall be designated by
the governor as head of the transition team;
(2) three members of the house of representatives appointed
by the speaker of the house of representatives, one of whom must
be a member of the minority party; and
(3) three members of the senate appointed by the
subcommittee on committees of the committee on rules and
administration of the senate, one of whom must be a member of
the minority party.
The transition team must solicit input from all interested
groups on how to best implement the reorganization of state
departments contained in sections 1 to 7 and develop the
recommendations required in subdivision 1.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 5. [TRANSITION TEAM DUTIES.]
Subdivision 1. [WORKFORCE DEVELOPMENT PROGRAMS.] The
transition team shall:
(1) consider alternative configurations of workforce
development programs within state agencies, including
legislative proposals submitted during the 2001 legislative
session and models from other states;
(2) recommend governance structures for workforce
development;
(3) develop recommendations for creating improved
communications between the higher education system and the
workforce development system;
(4) recommend statutory amendments necessary to implement
sections 1 to 7;
(5) recommend statutory and administrative changes
necessary to strengthen the oversight and management
responsibilities of local workforce boards and local elected
officials to ensure the efficient operation of the workforce
center system and to ensure better coordination of service
delivery at the community level;
(6) recommend the transfer of workforce development related
programs from other state agencies;
(7) recommend program modifications necessary to ensure
coordination between the workforce development system and the
employment and training programs administered by the department
of human services;
(8) recommend procedures for promoting greater coordination
and cooperation among local workforce development agencies,
local economic development agencies, and higher education
institutions;
(9) recommend methods for decreasing administrative costs
at the state agency level for the purpose of redirecting funding
to support the delivery of services at the community level;
(10) recommend where to house the unemployment insurance
program, taking into consideration the possibilities of
transferring the program to the department of labor and industry
or the department of trade and economic development;
(11) study the feasibility of transferring all or part of
the responsibility for collecting unemployment insurance taxes
and other assessments collected with those taxes to the
department of revenue;
(12) consider whether the Minnesota career information
system operated by the department of children, families, and
learning and the ISEEK system operated by the Minnesota state
colleges and universities are duplicative, and if so, the
potential for a consolidated system and recommendations on where
such a system might be housed; and
(13) make other recommendations to complete the
reorganization of state departments contained in sections 1 to 7.
Subd 2. [TRANSFER OF WORKFORCE INVESTMENT ACT
PROGRAMS.] The transition team may recommend, where appropriate,
the transfer of a program, including those programs under the
Workforce Investment Act of 1998, United States Code, title 29,
title I and title III, to local workforce boards.
Subd. 3. [REVISION OF STATE WORKFORCE INVESTMENT ACT
PLAN.] The transition team shall propose revisions to the state
unified plan submitted to the United States Department of Labor
under the Workforce Investment Act of 1998.
Subd. 4. [CONSULTATION WITH INTERESTED PARTIES.] The
transition team shall consult with:
(1) all appropriate state authorized councils, including,
but not limited to, the state rehabilitation advisory council,
the statewide independent living council, the rehabilitation
advisory council for the blind, and the Minnesota state council
on disability prior to making recommendations to the legislature
on the appropriate transfer of responsibilities for
administration of those programs for which the councils are
authorized;
(2) the SAFE coordinating council, prior to making any
recommendation to the legislature, on the appropriate state
agency in which to house the juvenile justice program, the
Minnesota city grants program, and the youth intervention
program in the department of economic security;
(3) the representatives of the collective bargaining units
for state employees affected by the transfers of
responsibilities under sections 1 to 7, including the
representatives of the two affected AFL-CIO affiliates and the
representative of another affected major statewide labor
organization;
(4) the commissioners of economic security, trade and
economic development, and labor and industry, prior to making
any recommendations to the legislature;
(5) local workforce councils and local elected officials;
(6) at least one consumer who receives services through the
Minnesota family investment program, or an advocate for such
consumers;
(7) nonprofit job training providers; and
(8) in determining the placement in state government of
state services for the blind, representatives from each of the
following groups:
(i) the Rehabilitation Council for the Blind;
(ii) the National Federation of the Blind;
(iii) the American Council of the Blind; and
(iv) the United Blind of Minnesota.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 6. [STAFF SUPPORT AND OPERATIONS OF THE TRANSITION
TEAM.]
(a) The head of the transition team shall be in the
unclassified service of the state, and may hire staff in the
classified or unclassified service, may contract for staff
assistance, or may have the assistance of existing state
employees.
(b) The commissioners of trade and economic development,
labor and industry, and economic security must cooperate with
and provide staff support to the transition team. The support
includes, but is not limited to, professional, technical, and
clerical staff necessary to fully assess the programs under
section 5.
(c) The transition team shall have access to private or
nonpublic data within the department of economic security,
department of labor and industry, and the department of trade
and economic development necessary to carry out the objectives
of section 5.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 7. [WORKER PROTECTION.]
In addition to any other protection, no employee in the
classified service shall suffer job loss, have a salary reduced,
or have employment benefits reduced as a result of a
reorganization mandated or recommended under authority of
sections 1 to 7. No action taken after July 1, 2005, shall be
considered a result of reorganization for the purposes of this
section.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 8. [EXPIRATION.]
Sections 4, 5, and 6 expire June 30, 2002.
ARTICLE 4
HOUSING PROGRAM AND TECHNICAL CHANGES
Section 1. Minnesota Statutes 2000, section 462A.01, is
amended to read:
462A.01 [CITATION.]
Sections 462A.01 to 462A.24 462A.34 shall be known as and
may be cited as the "Minnesota Housing Finance Agency Law of
1971."
Sec. 2. Minnesota Statutes 2000, section 462A.03,
subdivision 1, is amended to read:
Subdivision 1. [APPLICATION.] For the purpose of sections
462A.01 to 462A.24 this chapter, the terms defined in this
section have the meanings ascribed to them.
Sec. 3. Minnesota Statutes 2000, section 462A.03,
subdivision 6, is amended to read:
Subd. 6. [AGENCY.] "Agency" means the Minnesota housing
finance agency created by sections 462A.01 to 462A.24 this
chapter.
Sec. 4. Minnesota Statutes 2000, section 462A.03,
subdivision 10, is amended to read:
Subd. 10. [PERSONS AND FAMILIES OF LOW AND MODERATE
INCOME.] "Persons and families of low and moderate income" means
persons and families, irrespective of race, creed, national
origin, sex, or status with respect to guardianship or
conservatorship, determined by the agency to require such
assistance as is made available by sections 462A.01 to 462A.24
this chapter on account of personal or family income not
sufficient to afford adequate housing. In making such
determination the agency shall take into account the following:
(a) The amount of the total income of such persons and families
available for housing needs, (b) the size of the family, (c) the
cost and condition of housing facilities available, (d) the
eligibility of such persons and families to compete successfully
in the normal housing market and to pay the amounts at which
private enterprise is providing sanitary, decent and safe
housing. In the case of federally subsidized mortgages with
respect to which income limits have been established by any
agency of the federal government having jurisdiction thereover
for the purpose of defining eligibility of low and moderate
income families, the limits so established shall govern under
the provision provisions of sections 462A.01 to 462A.24 this
chapter. In all other cases income limits for the purpose of
defining low or moderate income persons shall be established by
the agency by rules.
Sec. 5. Minnesota Statutes 2000, section 462A.03, is
amended by adding a subdivision to read:
Subd. 23. [METROPOLITAN AREA.] "Metropolitan area" has the
meaning given in section 473.121, subdivision 2.
Sec. 6. Minnesota Statutes 2000, section 462A.04,
subdivision 6, is amended to read:
Subd. 6. [MANAGEMENT, CONTROL.] The management and control
of the agency shall be vested solely in the members in
accordance with the provisions of sections 462A.01 to 462A.24
this chapter.
Sec. 7. Minnesota Statutes 2000, section 462A.05,
subdivision 14, is amended to read:
Subd. 14. [REHABILITATION LOANS.] It may agree to
purchase, make, or otherwise participate in the making, and may
enter into commitments for the purchase, making, or
participation in the making, of eligible loans for
rehabilitation to persons and families of low and moderate
income, and to owners of existing residential housing for
occupancy by such persons and families, for the rehabilitation
of existing residential housing owned by them. The loans may be
insured or uninsured and may be made with security, or may be
unsecured, as the agency deems advisable. The loans may be in
addition to or in combination with long-term eligible mortgage
loans under subdivision 3. They may be made in amounts
sufficient to refinance existing indebtedness secured by the
property, if refinancing is determined by the agency to be
necessary to permit the owner to meet the owner's housing cost
without expending an unreasonable portion of the owner's income
thereon. No loan for rehabilitation shall be made unless the
agency determines that the loan will be used primarily to make
the housing more desirable to live in, to increase the market
value of the housing, for compliance with state, county or
municipal building, housing maintenance, fire, health or similar
codes and standards applicable to housing, or to accomplish
energy conservation related improvements. In unincorporated
areas and municipalities not having codes and standards, the
agency may, solely for the purpose of administering the
provisions of this chapter, establish codes and standards.
Except for accessibility improvements under this subdivision and
subdivisions 14a and 24, clause (1), no secured loan for
rehabilitation of any property shall be made in an amount which,
with all other existing indebtedness secured by the property,
would exceed 110 percent of its market value, as determined by
the agency. No loan under this subdivision shall be denied
solely because the loan will not be used for placing the
residential housing in full compliance with all state, county,
or municipal building, housing maintenance, fire, health, or
similar codes and standards applicable to housing.
Rehabilitation loans shall be made only when the agency
determines that financing is not otherwise available, in whole
or in part, from private lenders upon equivalent terms and
conditions. Accessibility rehabilitation loans authorized under
this subdivision may be made to eligible persons and families
without limitations relating to the maximum incomes of the
borrowers if:
(1) the borrower or a member of the borrower's family
requires a level of care provided in a hospital, skilled nursing
facility, or intermediate care facility for persons with mental
retardation or related conditions;
(2) home care is appropriate; and
(3) the improvement will enable the borrower or a member of
the borrower's family to reside in the housing.
The agency may waive any requirement that the housing units in a
residential housing development be rented to persons of low and
moderate income if the development consists of four or less
dwelling units, one of which is occupied by the owner.
Sec. 8. Minnesota Statutes 2000, section 462A.05,
subdivision 14a, is amended to read:
Subd. 14a. [REHABILITATION LOANS; EXISTING OWNER OCCUPIED
RESIDENTIAL HOUSING.] It may make loans to persons and families
of low and moderate income to rehabilitate or to assist in
rehabilitating existing residential housing owned and occupied
by those persons or families. No loan shall be made unless the
agency determines that the loan will be used primarily for
rehabilitation work necessary for health or safety, essential
accessibility improvements, or to improve the energy efficiency
of the dwelling. No loan for rehabilitation of owner occupied
residential housing shall be denied solely because the loan will
not be used for placing the residential housing in full
compliance with all state, county or municipal building, housing
maintenance, fire, health or similar codes and standards
applicable to housing. The amount of any loan shall not exceed
the lesser of (a) a maximum loan amount determined under rules
adopted by the agency not to exceed $20,000, or (b) the actual
cost of the work performed, or (c) that portion of the cost of
rehabilitation which the agency determines cannot otherwise be
paid by the person or family without the expenditure of an
unreasonable portion of the income of the person or family.
Loans made in whole or in part with federal funds may exceed the
maximum loan amount to the extent necessary to comply with
federal lead abatement requirements prescribed by the funding
source. In making loans, the agency shall determine the
circumstances under which and the terms and conditions under
which all or any portion of the loan will be repaid and shall
determine the appropriate security for the repayment of the
loan. Loans pursuant to this subdivision may be made with or
without interest or periodic payments. Loans made without
interest or periodic payments need not be repaid by the borrower
if the property for which the loan is made has not been sold,
transferred, or otherwise conveyed nor has it ceased to be the
principal place of residence of the borrower, within ten years
after the date of the loan.
Sec. 9. Minnesota Statutes 2000, section 462A.05,
subdivision 16, is amended to read:
Subd. 16. [PAYMENTS FOR STRUCTURAL DEFECTS.] (a) It may
make payments or expenditures from the housing development fund
to persons of low or moderate income, who are recipients of an
eligible loan as defined in section 462A.03, subdivision 11, or
who have purchased residential housing from a recipient of such
eligible loan, and who are owners and occupants of residential
housing constructed or rehabilitated under sections 462A.01 to
462A.24 this chapter, when, in the agency's determination, such
residential housing contains defects or omissions which affect
the structural soundness, or the use and the livability of such
housing, including but not limited to defects or omissions in
materials, hardware, fixtures, design, workmanship and
landscaping of whatever kind and nature incorporated in said
housing and which are covered by an agency approved warranty,
for the purposes of (i) correcting such defects, or (ii) paying
the claims of the owner arising from such defects, provided,
that this authority shall exist only if the owner has requested
assistance from the agency not later than four years after the
issuance of the eligible loan, or where such residential housing
was rehabilitated under sections 462A.01 to 462A.24 this chapter
only if the owner has requested assistance from the agency not
later than two years after the issuance of the eligible loan.
(b) If such owner elects to receive payments or
expenditures pursuant to this section, the agency is subrogated
to the right of such owner to recover damages against any party
or persons reasonably calculated to be responsible for such
damages.
(c) The agency may require from the seller of such
residential housing, or the contractor responsible for the
construction or rehabilitation of such housing, an agreement to
reimburse the agency for any payments and expenditures made
pursuant to this subdivision with respect to such residential
housing.
Sec. 10. Minnesota Statutes 2000, section 462A.05,
subdivision 22, is amended to read:
Subd. 22. [LOANS TO FINANCIAL INSTITUTIONS.] It may make
or participate in the making and enter into commitments for the
making of loans to any banking institution, savings association,
or other lender approved by the members, organized under the
laws of this or any other state or of the United States having
an office in this state, notwithstanding the provisions of
section 462A.03, subdivision 13, if it first determines that the
proceeds of such loans will be utilized for the purpose of
making loans to or for the benefit of eligible persons and
families as provided and in accordance with sections 462A.01 to
462A.24 this chapter. Loans pursuant to this subdivision shall
be secured, repaid and bear interest at the rate as determined
by the members.
Sec. 11. Minnesota Statutes 2000, section 462A.05,
subdivision 26, is amended to read:
Subd. 26. [FORMATION OF NONPROFIT CORPORATIONS.] It may,
when the agency determines it is necessary or desirable to carry
out its purposes and to exercise any or all of the powers
conferred upon it under sections 462A.01 to 462A.24 by this
chapter, and subject to the provisions of subdivision 27, form
or consent to the formation of one or more corporations under
the Minnesota Nonprofit Corporation Act, as amended, or under
other laws of this state. The agency may be a member of the
corporations, and the members and employees of the agency from
time to time may be members of the board of directors or
officers of the corporations. The agency may enter into
agreements with them providing for the agency to approve various
aspects of their operations. The agency may capitalize the
corporations and may acquire all or a part of the corporations'
share or member certificates. The agency may require that it
approve aspects of the operation of the corporations including
the corporations' articles of incorporation or bylaws,
directors, projects and expenditures, and the sale or conveyance
of projects, and the issuance of obligations. The agency may
agree to and may take title to property of the corporations upon
their dissolution.
Sec. 12. Minnesota Statutes 2000, section 462A.06,
subdivision 1, is amended to read:
Subdivision 1. [LISTED HERE.] For the purpose of
exercising the specific powers granted in section 462A.05 and
effectuating the other purposes of sections 462A.01 to 462A.24
this chapter, the agency shall have the general powers granted
in this section.
Sec. 13. Minnesota Statutes 2000, section 462A.06,
subdivision 4, is amended to read:
Subd. 4. [RULES.] It may make, and from time to time,
amend and repeal rules not inconsistent with the provisions of
sections 462A.01 to 462A.24 this chapter.
Sec. 14. Minnesota Statutes 2000, section 462A.07,
subdivision 10, is amended to read:
Subd. 10. [HUMAN RIGHTS.] It may establish and enforce
such rules as may be necessary to insure compliance with chapter
363, and to insure that occupancy of housing assisted under
sections 462A.01 to 462A.24 this chapter shall be open to all
persons, and that contractors and subcontractors engaged in the
construction of such housing shall provide an equal opportunity
for employment to all persons, without discrimination as to
race, color, creed, religion, national origin, sex, marital
status, age, and status with regard to public assistance or
disability.
Sec. 15. Minnesota Statutes 2000, section 462A.07,
subdivision 12, is amended to read:
Subd. 12. [USE OF OTHER AGENCIES.] It may delegate, use or
employ any federal, state, regional or local public or private
agency or organization, including organizations of physically
handicapped persons, upon terms it deems necessary or desirable,
to assist in the exercise of any of the powers granted in
sections 462A.01 to 462A.24 by this chapter and to carry out the
objectives of sections 462A.01 to 462A.24 this chapter and may
pay for the services from the housing development fund.
Sec. 16. Minnesota Statutes 2000, section 462A.073,
subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] (a) For purposes of this
section, the following terms have the meanings given them.
(b) "Existing housing" means single-family housing that (i)
has been previously occupied prior to the first day of the
origination period; or (ii) has been available for occupancy for
at least 12 months but has not been previously occupied.
(c) "Metropolitan area" means the metropolitan area as
defined in section 473.121, subdivision 2.
(d) "New housing" means single-family housing that has not
been previously occupied.
(e) (d) "Origination period" means the period that loans
financed with the proceeds of qualified mortgage revenue bonds
are available for the purchase of single-family housing. The
origination period begins when financing actually becomes
available to the borrowers for loans.
(f) (e) "Redevelopment area" means a compact and contiguous
area within which the city finds by resolution that 70 percent
of the parcels are occupied by buildings, streets, utilities, or
other improvements and more than 25 percent of the buildings,
not including outbuildings, are structurally substandard to a
degree requiring substantial renovation or clearance.
(g) (f) "Single-family housing" means dwelling units
eligible to be financed from the proceeds of qualified mortgage
revenue bonds under federal law.
(h) (g) "Structurally substandard" means containing defects
in structural elements or a combination of deficiencies in
essential utilities and facilities, light, ventilation, fire
protection including adequate egress, layout and condition of
interior partitions, or similar factors, which defects or
deficiencies are of sufficient total significance to justify
substantial renovation or clearance.
Sec. 17. Minnesota Statutes 2000, section 462A.15, is
amended to read:
462A.15 [STATE PLEDGE AGAINST IMPAIRMENT OF CONTRACTS.]
The state pledges and agrees with the holders of any notes
or bonds issued under sections 462A.01 to 462A.24 this chapter,
that the state will not limit or alter the rights vested in the
agency to fulfill the terms of any agreements made with the
holders thereof, or in any way impair the rights and remedies of
the holders until the notes or bonds, together with the interest
thereon, with interest on any unpaid installments of interest,
and all costs and expenses in connection with any action or
proceeding by or on behalf of such holders, are fully met and
discharged. The agency is authorized to include this pledge and
agreement of the state in any agreement with the holders of such
notes or bonds.
Sec. 18. Minnesota Statutes 2000, section 462A.17,
subdivision 3, is amended to read:
Subd. 3. [RAMSEY COUNTY VENUE; NOTICE OF PRINCIPAL DUE.]
The venue of any action or proceedings brought by the trustees
under sections 462A.01 to 462A.24 this chapter, shall be in
Ramsey county. Before declaring the principal of notes or bonds
due and payable, the trustee shall first give 30 days' notice in
writing to the governor, to the agency and to the state
treasurer.
Sec. 19. Minnesota Statutes 2000, section 462A.20,
subdivision 3, is amended to read:
Subd. 3. [SEPARATE ACCOUNTS; TRANSFERS; LIMITS.] Whenever
any money is appropriated by the state to the agency solely for
a specified purpose or purposes, the agency shall establish a
separate bookkeeping account or accounts in the housing
development fund to record the receipt and disbursement of such
money and of the income, gain, and loss from the investment and
reinvestment thereof. Earnings from investment of any amounts
appropriated by the state to the agency for a specified purpose
or purposes may be aggregated. The costs and expenses necessary
and incidental to the development and operation of all programs
funded by state appropriations may be paid from the aggregated
earnings from investments prior to periodic distributions of
earnings to separate accounts to be used for the same purpose as
the respective original appropriation. The agency may transfer
unencumbered balances from one appropriated account to another,
provided that no money appropriated for the purpose of agency
loan programs may be transferred to an account to be used for
making grants, except that money appropriated for the purpose of
section 462A.05, subdivision 14a, may be transferred for the
purpose of section 462A.05, subdivision 15a.
Sec. 20. [462A.2035] [MANUFACTURED HOME PARK REDEVELOPMENT
PROGRAM.]
Subdivision 1. [ESTABLISHMENT.] The agency shall establish
a manufactured home park redevelopment program for the purpose
of making manufactured home park redevelopment grants or loans
to cities, counties, or community action programs. Cities,
counties, and community action programs may use grants and loans
under this program to:
(1) provide current residents of manufactured home parks
with buy-out assistance not to exceed $4,000 per home with
preference given to older manufactured homes;
(2) provide down payment assistance for the purchase of new
and preowned manufactured homes that comply with the current
version of the State Building Code in effect at the time of the
sale, not to exceed $10,000 per home; and
(3) make improvements in manufactured home parks as
requested by the grant recipient.
Subd. 2. [ELIGIBILITY REQUIREMENTS.] Households assisted
under this section must have an annual household income at or
below 80 percent of the area median household income. Cities,
counties, or community action programs receiving funds under the
program must give preference to households at or below 50
percent of the area median household income. Participation in
the program is voluntary and no park resident shall be required
to participate. The agency shall attempt to make grants and
loans in approximately equal amounts to applicants outside and
within the metropolitan area.
Sec. 21. Minnesota Statutes 2000, section 462A.204,
subdivision 3, is amended to read:
Subd. 3. [SET ASIDE.] At least one grant must be awarded
in an area located outside of the metropolitan area as defined
in section 473.121, subdivision 2. A county, a group of
contiguous counties jointly acting together, or a
community-based nonprofit organization with a sponsoring
resolution from each of the county boards of the counties
located within its operating jurisdiction may apply for and
receive grants for areas located outside the metropolitan area.
Sec. 22. Minnesota Statutes 2000, section 462A.205,
subdivision 4, is amended to read:
Subd. 4. [AMOUNT AND PAYMENT OF RENT ASSISTANCE.] (a) This
subdivision applies to both the voucher option and the
project-based voucher option.
(b) Within the limits of available appropriations, eligible
families may receive monthly rent assistance for a 60-month
period starting with the month the family first receives rent
assistance under this section. The amount of the family's
portion of the rental payment is equal to at least 30 percent of
gross income.
(c) The rent assistance must be paid by the local housing
organization to the property owner.
(d) Subject to the limitations in paragraph (e), the amount
of rent assistance is the difference between the rent and the
family's portion of the rental payment.
(e) In no case:
(1) may the amount of monthly rent assistance be more than
$250 for housing located within the metropolitan area, as
defined in section 473.121, subdivision 2, or more than $200 for
housing located outside of the metropolitan area;
(2) may the owner receive more rent for assisted units than
for comparable unassisted units; nor
(3) may the amount of monthly rent assistance be more than
the difference between the family's portion of the rental
payment and the fair market rent for the unit as determined by
the Department of Housing and Urban Development.
Sec. 23. Minnesota Statutes 2000, section 462A.205,
subdivision 4a, is amended to read:
Subd. 4a. [ADDITIONAL AUTHORIZED EXPENSES.] In addition to
the monthly rent assistance authorized under subdivision 4, rent
assistance may include up to $200 for a security deposit for
housing located outside the metropolitan area, as defined in
section 473.121, subdivision 2, and up to $250 for a security
deposit for housing located within the metropolitan area.
Sec. 24. Minnesota Statutes 2000, section 462A.2091,
subdivision 3, is amended to read:
Subd. 3. [ELIGIBLE PROPERTY.] Contracts for deed eligible
for refinancing with guarantee fund assistance must be for the
purchase of an owner-occupied single-family or duplex
structure. In a city of the first class in the metropolitan
area, as defined in section 473.121, subdivision 2, eligible
properties must be located in an area in which at least one
census tract meets at least three of the following four criteria:
(1) at least 70 percent of the housing structures were
built before 1960;
(2) at least 60 percent of the single-family housing is
owner-occupied;
(3) the median market value of the area's owner-occupied
housing, as recorded in the most recent federal decennial
census, is not more than 100 percent of the purchase price limit
for existing homes eligible for purchase in the area under the
agency's home mortgage loan program; and
(4) between 1980 and 1990, the rate of owner occupancy of
residential properties in the area declined by at least five
percent, or at least 80 percent of the residential properties in
the area are rental properties.
The area must include eight blocks in any direction from
the census tract. Priority must be given for property located
in an area that meets all four criteria.
Sec. 25. Minnesota Statutes 2000, section 462A.2093,
subdivision 1, is amended to read:
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.
Sec. 26. Minnesota Statutes 2000, section 462A.2097, is
amended to read:
462A.2097 [RENTAL HOUSING.]
The agency may establish a tenant-based or project-based
rental housing assistance program for persons of low income or
for persons with a mental illness or families that include an
adult family member with a mental illness. Rental assistance
may be in the form of direct rental subsidies for housing for
persons or families with incomes, at the time of initial
occupancy, of up to 50 percent of the area median income as
determined by the United States Department of Housing and Urban
Development, adjusted for families of five or more. Housing for
the mentally ill must be operated in coordination with social
service providers who provide services requested by tenants.
Direct rental subsidies must be administered by the agency for
the benefit of eligible tenants. Financial assistance provided
under this section must be in the form of vendor payments
whenever possible.
Sec. 27. Minnesota Statutes 2000, section 462A.21,
subdivision 5, is amended to read:
Subd. 5. [OTHER AGENCY PURPOSES.] It may expend moneys in
the fund, not otherwise appropriated, for such other agency
purposes as previously enumerated in sections 462A.01 to 462A.24
this chapter as the agency in its discretion shall determine and
provide.
Sec. 28. Minnesota Statutes 2000, section 462A.21,
subdivision 10, is amended to read:
Subd. 10. [CERTAIN APPROPRIATIONS AVAILABLE UNTIL
EXPENDED.] Notwithstanding the repeal of section 462A.26 and the
provisions of section 16A.28 or any other law relating to lapse
of an appropriation, the appropriations made to the agency by
the legislature in 1976 and subsequent years are available until
fully expended, and the allocations provided in the
appropriations remain in effect. Earnings from investments of
any of the amounts appropriated to the agency are appropriated
to the agency to be used for the same purposes as the respective
original appropriations, after payment of the costs and expenses
necessary and incidental to the development and operation of the
programs authorized under this chapter.
Sec. 29. Minnesota Statutes 2000, section 462A.21, is
amended by adding a subdivision to read:
Subd. 28. [FAMILY STABILIZATION DEMONSTRATION
PROJECT.] The agency may spend money for the purposes of section
462A.205 and may pay costs and expenses necessary and incidental
to the development and operation of the project.
Sec. 30. Minnesota Statutes 2000, section 462A.21, is
amended by adding a subdivision to read:
Subd. 29. [DISASTER RELIEF CONTINGENCY FUND.] It may
establish a disaster relief contingency fund to provide loans or
grants, on terms and conditions it deems advisable, to assist
with the rehabilitation or replacement of housing damaged as a
result of a natural disaster in areas of the state designated
under presidential declarations of a major disaster. It may
transfer to the disaster relief contingency fund any repayments
of grants or loans made from appropriations specifically for
assistance after natural disasters in areas of the state
designated under a presidential declaration of a major disaster.
Sec. 31. Minnesota Statutes 2000, section 462A.21, is
amended by adding a subdivision to read:
Subd. 30. [MANUFACTURED HOME PARK REDEVELOPMENT.] The
agency may spend money for the purposes of section 462A.2035 and
may pay costs and expenses necessary and incidental to the
development and operation of the program.
Sec. 32. Minnesota Statutes 2000, section 462A.222,
subdivision 1a, is amended to read:
Subd. 1a. [DETERMINATION OF REGIONAL CREDIT POOLS.] The
agency shall divide the annual per capita amount used in
determining the state ceiling for low-income housing tax credits
provided under section 42 of the Internal Revenue Code of 1986,
as amended, into a metropolitan pool and a greater Minnesota
pool. The metropolitan pool shall serve the metropolitan area
as defined in section 473.121, subdivision 2. The greater
Minnesota pool shall serve the remaining counties of the state.
The percentage of the annual per capita amount allotted to each
pool must be determined as follows:
(a) The percentage set-aside for projects involving a
qualified nonprofit organization as provided in section 42 of
the Internal Revenue Code of 1986, as amended, must be deducted
from the annual per capita amount used in determining the state
ceiling.
(b) Of the remaining amount, the metropolitan pool must be
allotted a percentage equal to the metropolitan counties'
percentage of the total number of state recipients of the
Minnesota family investment program, general assistance,
Minnesota supplemental aid, and supplemental security income in
the state, as reported annually by the department of human
services. The greater Minnesota pool must be allotted the
amount remaining after the metropolitan pool's percentage has
been allotted.
The set-aside for qualified nonprofit organizations must be
divided between the two regional pools in the same percentage as
determined for the credit amounts above.
Sec. 33. Minnesota Statutes 2000, section 462A.24, is
amended to read:
462A.24 [CONSTRUCTION.]
Sections 462A.01 to 462A.24 are This chapter is necessary
for the welfare of the state of Minnesota and its inhabitants;
therefore, it shall be liberally construed to effect its purpose.
Sec. 34. Minnesota Statutes 2000, section 462A.33,
subdivision 2, is amended to read:
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.
Sec. 35. [462A.34] [VISITABILITY REQUIREMENT.]
All new construction of single-family homes, duplexes,
triplexes, and multilevel townhouses that are financed in whole
or in part by the agency must incorporate basic visitability
access into their design and construction. For the purpose of
this section, "visitability" means designing a dwelling so that
people with mobility impairments may enter and comfortably stay
for a duration. The specific design elements include one
no-step entrance, 32-inch clear doorways throughout the
dwelling, and a one-half bathroom on the main level. The agency
may waive the one-half bathroom requirement if it reduces
affordability for the targeted population of the agency program
from which it is funded. The agency may waive the no-step
entrance requirement if site conditions make the requirement
impractical or if it reduces affordability for the targeted
population of the agency program from which it is funded. This
section does not apply to owner-occupied housing financed by the
agency through a mortgage program unless the agency has provided
appropriated funds to finance the construction of the new
owner-occupied housing.
Sec. 36. [MANUFACTURED HOME PARK REDEVELOPMENT REPORT.]
The housing finance agency shall include in its annual
program assessment the program created by Minnesota Statutes,
section 462A.2035.
Sec. 37. [STUDY.]
The housing finance agency, in conjunction with the office
of strategic and long-range planning, shall study inclusionary
housing statutes and ordinances throughout the country and shall
report to the legislature by January 15, 2002, on the
implementation of statutes and ordinances on inclusionary
housing, including:
(1) a description of the various inclusionary housing
statutes and ordinances;
(2) the number of housing units, both ownership and rental,
developed under inclusionary statutes and ordinances;
(3) the level of affordability achieved in the housing
developed under inclusionary statutes and ordinances;
(4) the demographic characteristics of the households
residing in the affordable units developed under inclusionary
housing statutes and ordinances, if available; and
(5) the amount of public funds, if any, invested in the
affordable units developed under inclusionary housing statutes
and ordinances.
The report shall make recommendations regarding approaches
to encouraging residential developments that include housing for
a range of incomes. In developing recommendations, the state
agencies must consult with representatives of builders,
developers, realtors, municipalities, local zoning officials,
housing advocates, and local planning officials.
Sec. 38. Laws 2000, chapter 488, article 8, section 2,
subdivision 6, is amended to read:
Subd. 6. Economic Support Grants
30,509,000 25,368,000
The amounts that may be spent from this
appropriation for each purpose are as
follows:
[ASSISTANCE TO FAMILIES GRANTS TANF
FORECAST ADJUSTMENT.] The federal
Temporary Assistance to Needy Families
(TANF) block grant fund appropriated to
the commissioner of human services in
Laws 1999, chapter 245, article 1,
section 2, subdivision 10, for MFIP
cash grants are reduced by $37,513,000
in fiscal year 2000 and $30,217,000 in
fiscal year 2001.
[FEDERAL TANF FUNDS.] (1) In addition
to the Federal Temporary Assistance for
Needy Families (TANF) block grant funds
appropriated to the commissioner of
human services in Laws 1999, chapter
245, article 1, section 2, subdivision
10, federal TANF funds are appropriated
to the commissioner in amounts up to
$20,000,000 in fiscal year 2000 and
$80,440,000 in fiscal year 2001. In
addition to these funds, the
commissioner may draw or transfer any
other appropriations of federal TANF
funds or transfers of federal TANF
funds that are enacted into state law.
(2) Of the amounts in clause (1),
$19,680,000 in fiscal year 2001 is for
the local intervention grants program
under Minnesota Statutes, section
256J.625 and related grant programs and
shall be expended as follows:
(a) $500,000 in fiscal year 2001 is for
a grant to the Southeast Asian MFIP
services collaborative to replicate in
a second location an existing model of
an intensive intervention transitional
employment training project which
serves TANF-eligible recipients and
which moves refugee and immigrant
welfare recipients unto unsubsidized
employment and leads to economic
self-sufficiency. This is a one-time
appropriation.
(b) $500,000 in fiscal year 2001 is for
nontraditional career assistance and
training programs under Minnesota
Statutes, section 256K.30, subdivision
4. This is a one-time appropriation.
(c) $18,680,000 is for local
intervention grants for
self-sufficiency program under
Minnesota Statutes, section 256J.625.
For fiscal years 2002 and 2003 the
commissioner of finance shall ensure
that the base level funding for the
local intervention grants program is
$27,180,000 each year.
(3) Of the amounts in clause (2),
paragraph (c) for local intervention
grants, $7,000,000 in fiscal year 2001
shall be transferred to the
commissioner of health for distribution
to county boards according to the
formula in Minnesota Statutes, section
256J.625, subdivision 3, to be used by
county public health boards to serve
families with incomes at or below 200
percent of the federal poverty
guidelines, in the manner specified by
Minnesota Statutes, section 145A.16,
subdivision 3, clauses (2) through
(6). Training, evaluation and
technical assistance shall be provided
in accordance with Minnesota Statutes,
section 145A.16, subdivisions 5 to 7.
For fiscal years 2002 and 2003 the
commissioner of finance shall ensure
that the base level funding for this
activity is $7,000,000 each year.
(4) Of the amounts in clause (1),
$250,000 in fiscal year 2001 is
appropriated to the commissioner to
contract with the board of trustees of
the Minnesota state colleges and
universities to provide tuition waivers
to employees of health care and human
services providers located in the state
that are members of qualifying
consortia operating under Minnesota
Statutes, sections 116L.10 to 116L.15.
(5) Of the amounts in clause (1),
$320,000 in fiscal year 2001 is for
training job counselors about the MFIP
program. For fiscal years 2002 and
2003 the commissioner of finance shall
ensure that the base level funding for
employment services includes $320,000
each year for this activity. The
appropriations in this clause shall not
become part of the base for the
2004-2005 biennium.
(6) Of the amounts in clause (1),
$1,000,000 in fiscal year 2001 is for
out-of-wedlock pregnancy prevention
funds to serve children in
TANF-eligible families under Minnesota
Statutes, section 256K.35. For fiscal
years 2002 and 2003 the commissioner of
finance shall ensure that the base
level funding for this program is
$1,000,000 each year. The
appropriations in this clause shall not
become part of the base for the
2004-2005 biennium.
(7) Of the amounts in clause (1),
$1,000,000 in fiscal year 2001 is to
provide services to TANF-eligible
families who are participating in the
supportive housing and managed care
pilot project under Minnesota Statutes,
section 256K.25. For fiscal years 2002
and 2003 the commissioner of finance
shall ensure that the base level
funding for this project is $1,000,000
each year. The appropriations in this
clause shall not become part of the
base for this project for the 2004-2005
biennium.
[TANF TRANSFER TO SOCIAL SERVICES.]
$7,500,000 is transferred from the
state's federal TANF block grant to the
state's federal Title XX block grant in
fiscal year 2001 and in fiscal year
2002, for purposes of increasing
services for families with children
whose incomes are at or below 200
percent of the federal poverty
guidelines. Notwithstanding section 6,
this paragraph expires June 30, 2002.
[TANF MOE.] (a) In order to meet the
basic maintenance of effort (MOE)
requirements of the TANF block grant
specified under United States Code,
title 42, section 609(a)(7), the
commissioner may only report nonfederal
money expended for allowable activities
listed in the following clauses as TANF
MOE expenditures:
(1) MFIP cash and food assistance
benefits under Minnesota Statutes,
chapter 256J;
(2) the child care assistance programs
under Minnesota Statutes, sections
119B.03 and 119B.05, and county child
care administrative costs under
Minnesota Statutes, section 119B.15;
(3) state and county MFIP
administrative costs under Minnesota
Statutes, chapters 256J and 256K;
(4) state, county, and tribal MFIP
employment services under Minnesota
Statutes, chapters 256J and 256K; and
(5) expenditures made on behalf of
noncitizen MFIP recipients who qualify
for the medical assistance without
federal financial participation program
under Minnesota Statutes, section
256B.06, subdivision 4, paragraphs (d),
(e), and (j).
(b) The commissioner shall ensure that
sufficient qualified nonfederal
expenditures are made each year to meet
the state's TANF MOE requirements. For
the activities listed in paragraph (a),
clauses (2) to (6), the commissioner
may only report expenditures that are
excluded from the definition of
assistance under Code of Federal
Regulations, title 45, section 260.31.
If nonfederal expenditures for the
programs and purposes listed in
paragraph (a) are insufficient to meet
the state's TANF MOE requirements, the
commissioner shall recommend additional
allowable sources of nonfederal
expenditures to the legislature, if the
legislature is or will be in session to
take action to specify additional
sources of nonfederal expenditures for
TANF MOE before a federal penalty is
imposed. The commissioner shall
otherwise provide notice to the
legislative commission on planning and
fiscal policy under paragraph (d).
(c) If the commissioner uses authority
granted under Laws 1999, chapter 245,
article 1, section 10, or similar
authority granted by a subsequent
legislature, to meet the state's TANF
MOE requirements in a reporting period,
the commissioner shall inform the
chairs of the appropriate legislative
committees about all transfers made
under that authority for this purpose.
(d) If the commissioner determines that
nonfederal expenditures for the
programs under Minnesota Statutes,
section 256J.025, are insufficient to
meet TANF MOE expenditure requirements,
and if the legislature is not or will
not be in session to take timely action
to avoid a federal penalty, the
commissioner may report nonfederal
expenditures from other allowable
sources as TANF MOE expenditures after
the requirements of this paragraph are
met.
The commissioner may report nonfederal
expenditures in addition to those
specified under paragraph (a) as
nonfederal TANF MOE expenditures, but
only ten days after the commissioner of
finance has first submitted the
commissioner's recommendations for
additional allowable sources of
nonfederal TANF MOE expenditures to the
members of the legislative commission
on planning and fiscal policy for their
review.
(e) The commissioner of finance shall
not incorporate any changes in federal
TANF expenditures or nonfederal
expenditures for TANF MOE that may
result from reporting additional
allowable sources of nonfederal TANF
MOE expenditures under the interim
procedures in paragraph (d) into the
February or November forecasts required
under Minnesota Statutes, section
16A.103, unless the commissioner of
finance has approved the additional
sources of expenditures under paragraph
(d).
(f) The provisions of paragraphs (a) to
(e) supersede any contrary provisions
in Laws 1999, chapter 245, article 1,
section 2, subdivision 10.
(g) The provisions of Minnesota
Statutes, section 256.011, subdivision
3, which require that federal grants or
aids secured or obtained under that
subdivision be used to reduce any
direct appropriations provided by law
do not apply if the grants or aids are
federal TANF funds.
(h) Notwithstanding section 6 of this
article, paragraphs (a) to (g) expire
June 30, 2003.
(i) Paragraphs (a) to (h) are effective
the day following final enactment.
(a) Assistance to Families Grants
9,628,000 (2,305,000)
(b) Work Grants
-0- (250,000)
(c) AFDC and Other Assistance
20,000,000 30,734,000
[TRANSFERS TO MINNESOTA HOUSING FINANCE
AGENCY.] (a) By June 30, 2001, the
commissioner shall transfer $50,000,000
of the general funds appropriated under
this paragraph to the Minnesota housing
finance agency for transfer to the
housing development fund. The program
funded by this transfer shall be known
as the "Bruce F. Vento Year 2000
Affordable Housing Program." Up to
$15,000,000 may be transferred in
fiscal year 2000.
(b) Of the funds transferred in
paragraph (a), $5,000,000 in fiscal
year 2001 and $15,000,000 in fiscal
year 2002 is for a loan to Habitat for
Humanity of Minnesota, Inc. The loan
shall be an interest-free deferred
loan. The loan shall become due and
payable in the event and to the extent
that Habitat for Humanity of Minnesota,
Inc. does not invest repayments and
prepayment of mortgage loans financed
with this appropriation in new
mortgages for additional homebuyers
through Habitat for Humanity of
Minnesota, Inc. To the extent
practicable, funding must be allocated
to Habitat for Humanity chapters on the
basis of the number of MFIP households
residing within a chapter's service
area compared to the statewide total of
MFIP households and on the basis of a
chapter's capacity.
(c) Of the funds transferred in
paragraph (a), $15,000,000 in fiscal
year 2001 and $15,000,000 in fiscal
year 2002 is for the affordable rental
investment fund program under Minnesota
Statutes, section 462A.21, subdivision
8b. To the extent practicable, the
number of units financed with the
appropriation under this paragraph
within a city, county, or region shall
reflect the number of MFIP households
residing within the city, county, or
region compared to the statewide total
of MFIP households. This appropriation
must be used to finance rental housing
units that serve families:
(1) receiving MFIP benefits under
Minnesota Statutes, section 256J.01, or
its successor program; and
(2) who have lost eligibility for MFIP
due to increased income from employment
or due to the collection of child or
spousal support under part D of title
IV of the Social Security Act for
reasons other than disqualification
from MFIP due to fraud.
Units produced with this appropriation
must remain affordable for a 30-year
period.
In order to coordinate the availability
of housing developed with the
appropriation under this paragraph with
MFIP families in need of affordable
housing, the commissioner of the
Minnesota housing finance agency, with
the assistance of the commissioner of
human services, shall establish
cooperative relationships with county
agencies as defined in Minnesota
Statutes, section 256J.08, local
employment and training service
providers as defined in Minnesota
Statutes, section 256J.49, local social
service agencies, or other
organizations that provide assistance
to MFIP households.
The commissioner of the Minnesota
housing finance agency shall develop
strategies to promote occupancy of the
units financed by the appropriation
under this paragraph by households most
in need of subsidized housing. The
strategies shall include provisions
that encourage households to move into
homeownership or unsubsidized housing
as the household secures stable
employment and achieves
self-sufficiency. The commissioner of
the Minnesota housing finance agency
shall consult with interested parties
in developing these strategies.
(d) The commissioner of the Minnesota
housing finance agency and the
commissioner of human services shall
jointly prepare and submit a report to
the governor and the legislature on the
results of the funding provided under
this section. The report shall include:
(1) information on the number of units
produced;
(2) the household size and income of
the occupants of the units at initial
occupancy; and
(3) to the extent the information is
available, measures related to the
occupants' attachment to the workforce
and public assistance usage, and number
of occupant moves.
The report must be submitted annually
beginning January 15, 2003.
(e) Section 6, sunset of uncodified
language, does not apply to paragraphs
(a) to (d). Paragraphs (a) to (d) are
effective the day following final
enactment.
[WORKING FAMILY CREDIT.] (a) On a
regular basis, the commissioner of
revenue, with the assistance of the
commissioner of human services, shall
calculate the value of the refundable
portion of the Minnesota working family
credits provided under Minnesota
Statutes, section 290.0671, that
qualifies for federal reimbursement
from the temporary assistance to needy
families block grant. The commissioner
of revenue shall provide the
commissioner of human services with
such expenditure records and
information as are necessary to support
draws of federal funds. The
commissioner of human services shall
reimburse the commissioner of revenue
for the costs of providing the
information required by this paragraph.
(b) Federal TANF funds, as specified in
this paragraph, are appropriated to the
commissioner of human services based on
calculations under paragraph (a) of
working family tax credit expenditures
that qualify for reimbursement from the
TANF block grant for income tax refunds
payable in federal fiscal years
beginning October 1, 1999. The draws
of federal TANF funds shall be made on
a regular basis based on calculations
of credit expenditures by the
commissioner of revenue. Up to the
following amounts of federal TANF draws
are appropriated to the commissioner of
human services to deposit into the
general fund: in fiscal year 2000,
$30,957,000; and in fiscal year 2001,
$33,895,000.
(d) General Assistance
557,000 (3,134,000)
(e) Minnesota Supplemental Aid
324,000 323,000
Sec. 39. [REPEALER.]
Minnesota Statutes 2000, sections 462A.221, subdivision 4;
and 462A.30, subdivision 2, are repealed.
ARTICLE 5
HOUSING PROGRAM CONSOLIDATION
Section 1. Minnesota Statutes 2000, section 462A.201,
subdivision 2, is amended to read:
Subd. 2. [LOW-INCOME HOUSING.] (a) The agency may, in
consultation with the advisory committee, use money from the
housing trust fund account to provide loans or grants for:
(1) projects for the development, construction,
acquisition, preservation, and rehabilitation of low-income
rental and limited equity cooperative housing units, including
temporary and transitional housing, and homes for ownership;
(2) the costs of operating rental housing, as determined by
the agency, that are unique to the operation of low-income
rental housing or supportive housing; and
(3) rental assistance, either project-based or tenant-based.
For purposes of this section, "transitional housing" means
housing that is provided for a limited duration not exceeding 24
months, except that up to one-third of the residents may live in
the housing for up to 36 months has the meaning given by the
United States Department of Housing and Urban Development.
Loans or grants for residential housing for migrant farmworkers
may be made under this section. No more than 20 percent of
available funds may be used for home ownership projects.
(b) A rental or limited equity cooperative permanent
housing project must meet one of the following income tests:
(1) at least 75 percent of the rental and cooperative units
must be rented to or cooperatively owned by persons and families
whose income does not exceed 30 percent of the median family
income for the metropolitan area as defined in section 473.121,
subdivision 2; or
(2) all The housing trust fund account must be used for the
benefit of persons and families whose income, at the time of
initial occupancy, does not exceed 60 percent of median income
as determined by the United States Department of Housing and
Urban Development for the metropolitan area. At least 75
percent of the units funded by funds in the housing trust fund
account must be used for the benefit of persons and families
whose income, at the time of initial occupancy, does not exceed
30 percent of the median family income for the metropolitan area
as defined in section 473.121, subdivision 2. For purposes of
this section, a household with a housing assistance voucher
under section 8 of the United States Housing Act of 1937, as
amended, is deemed to meet the income requirements of this
section.
The median family income may be adjusted for families of
five or more.
(c) Homes for ownership must be owned or purchased by
persons and families whose income does not exceed 50 percent of
the metropolitan area median income, adjusted for family size.
(d) Rental assistance under this section must be provided
by governmental units which administer housing assistance
supplements or by for-profit or nonprofit organizations
experienced in housing management. Rental assistance shall be
limited to households whose income at the time of initial
receipt of rental assistance does not exceed 60 percent of
median income, as determined by the United States Department of
Housing and Urban Development for the metropolitan area.
Priority among comparable applications for tenant-based rental
assistance will be given to proposals that will serve households
whose income at the time of initial application for rental
assistance does not exceed 30 percent of median income, as
determined by the United States Department of Housing and Urban
Development for the metropolitan area. Rental assistance must
be terminated when it is determined that 30 percent of a
household's monthly income for four consecutive months equals or
exceeds the market rent for the unit in which the household
resides plus utilities for which the tenant is responsible.
Rental assistance may only be used for rental housing units that
meet the housing maintenance code of the local unit of
government in which the unit is located, if such a code has been
adopted, or the housing quality standards adopted by the United
States Department of Housing and Urban Development, if no local
housing maintenance code has been adopted.
(d) In making the loans or grants, the agency shall
determine the terms and conditions of repayment and the
appropriate security, if any, should repayment be required. To
promote the geographic distribution of grants and loans, the
agency may designate a portion of the grant or loan awards to be
set aside for projects located in specified congressional
districts or other geographical regions specified by the
agency. The agency may adopt rules for awarding grants and
loans under this subdivision.
Sec. 2. Minnesota Statutes 2000, section 462A.201,
subdivision 6, is amended to read:
Subd. 6. [REPORT.] The agency shall submit a biennial
report to the legislature and the governor annually on the use
of the housing trust fund account including the number of loans
and grants made, the number and types of residential units
assisted through the account, the number of households for whom
rental assistance payments were provided, and the number of
residential units assisted through the account that were rented
to or cooperatively owned by persons or families at or below 30
percent of the median family income of the metropolitan area at
the time of initial occupancy.
Sec. 3. Minnesota Statutes 2000, section 462A.209, is
amended to read:
462A.209 [HOME OWNERSHIP ASSISTANCE EDUCATION, COUNSELING,
AND TRAINING PROGRAM.]
Subdivision 1. [FULL CYCLE HOME OWNERSHIP SERVICES.]
The full cycle home ownership services homeownership education,
counseling, and training program shall be used to fund provide
funding to community-based nonprofit organizations and political
subdivisions providing, building capacity to provide, or
supporting full cycle lending for to assist them in building the
capacity to provide and providing full cycle home ownership
services 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
homeownership services.
Subd. 2. [DEFINITION.] "Full cycle home ownership
services" means supporting eligible home buyers and owners home
owners through all phases of purchasing and keeping a home, by
providing prepurchase home buyer education,; prepurchase
counseling and credit repair,; prepurchase and postpurchase
property inspection and technical and financial assistance to
buyers in rehabilitating the home,; postpurchase counseling,
including home equity conversion loan counseling, mortgage
default counseling, postpurchase assistance with home
maintenance, entry cost assistance,; foreclosure prevention and
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. The eligibility
criteria may include a requirement for specific training
provided by designated state or national entities. The agency
may also include an eligibility criteria that requires counselor
certification or organizational accreditation by specified
organizations which provide certification or accreditation
services. 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 have funding
from other sources for full cycle homeownership services.
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.
Subd. 5. [SELECTION CRITERIA.] The agency shall take the
following criteria into consideration when determining whether
to award funds to an eligible organization:
(1) the extent to which there is an equitable geographic
distribution of funds among program applicants;
(2) the prior experience and documented familiarity of the
organization, as may be applicable, in establishing,
administering, and maintaining some or all of the components of
full cycle homeownership services;
(3) the reasonableness of the proposed budget in meeting
the program objectives, a demonstrated ability to leverage
program money with other sources of funding, and the extent of
the leveraging of other sources of funding;
(4) the extent to which efforts are targeted towards
households with incomes that do not exceed 80 percent of the
state or area median income or underserved segments of the local
population; and
(5) the extent to which program funding does not duplicate
other efforts currently available in the local area and will
enable, expand, or enhance existing activities.
Subd. 6. [DESIGNATED AREAS.] A program administrator must
designate specific areas, communities, or neighborhoods within
which the program is proposed to be operated for the purpose of
focusing resources.
Subd. 7. [ASSISTANCE TO PREVENT MORTGAGE FORECLOSURES.] (a)
Program assistance and counseling to prevent mortgage
foreclosures or cancellations of contract for deeds includes
general information, screening, assessment, referral services,
case management, advocacy, and financial assistance to borrowers
who are delinquent on mortgage or contract for deed payments.
(b) Not more than one-half of funds awarded for foreclosure
prevention and assistance activities may be used for mortgage or
financial counseling services.
(c) Financial assistance consists of payments for
delinquent mortgage or contract for deed payments, future
mortgage or contract for deed payments for a period of up to six
months, property taxes, assessments, utilities, insurance, home
improvement repairs, future rent payments for a period of up to
six months, and relocation costs if necessary, or other costs
necessary to prevent foreclosure.
(d) An individual or family may receive a maximum of $5,500
of financial assistance to prevent a mortgage foreclosure or the
cancellation of a contract for deed.
(e) The agency may require the recipient of financial
assistance to enter into an agreement with the agency for
repayment. The repayment agreement for mortgages or contract
for deed buyers must provide that in the event the property is
sold, transferred, or otherwise conveyed, or ceases to be the
recipient's principal place of residence, the recipient shall
repay all or a portion of the financial assistance. The agency
may take into consideration financial hardship in determining
repayment requirements. The repayment agreement may be secured
by a lien on the property for the benefit of the agency.
Subd. 8. [REPORT.] By January 10 of every year, each
nonprofit organization that delivers services under this section
must submit a report to the agency that summarizes the number of
people served and the sources and amounts of nonstate money used
to fund the services. The agency shall annually submit a report
to the legislature by February 15.
Sec. 4. Minnesota Statutes 2000, section 462A.21, is
amended by adding a subdivision to read:
Subd. 27. [ECONOMIC DEVELOPMENT AND HOUSING CHALLENGE
PROGRAM.] The agency may spend money for the purposes of section
462A.33 and may pay the costs and expenses necessary and
incidental to the development and operation of the program.
Sec. 5. Minnesota Statutes 2000, section 462A.33,
subdivision 1, is amended to read:
Subdivision 1. [CREATED.] The economic development and
housing challenge program is created to be administered by the
agency.
(a) The program shall provide grants or loans for the
purpose of construction, acquisition, rehabilitation, demolition
or removal of existing structures, construction financing,
permanent financing, interest rate reduction, refinancing, and
gap financing of housing to support economic development and
redevelopment activities or job creation or job preservation
within a community or region by meeting locally identified
housing needs.
Gap financing is either:
(i) the difference between the costs of the property,
including acquisition, demolition, rehabilitation, and
construction, and the market value of the property upon sale; or
(ii) the difference between the cost of the property and
the amount the targeted household can afford for housing, based
on industry standards and practices.
(b) Preference for grants and loans shall be given to
comparable proposals that include regulatory changes or waivers
that result in identifiable cost avoidance or cost reductions,
such as increased density, flexibility in site development
standards, or zoning code requirements. Preference must also be
given among comparable proposals to proposals for projects that
are accessible to transportation systems, jobs, schools, and
other services.
(c) If a grant or loan is used for demolition or removal of
existing structures, the cleared land must be used for the
construction of housing to be owned or rented by persons who
meet the income limits of this section or for other
housing-related purposes that primarily benefit the persons
residing in the adjacent housing. In making selections for
grants or loans for projects that demolish affordable housing
units, the agency must review the potential displacement of
residents and consider the extent to which displacement of
residents is minimized.
Sec. 6. Minnesota Statutes 2000, section 462A.33,
subdivision 2, is amended to read:
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.
Sec. 7. Minnesota Statutes 2000, section 462A.33,
subdivision 3, is amended to read:
Subd. 3. [CONTRIBUTION REQUIREMENT; REGULATORY
FLEXIBILITY.] Fifty percent of the funds appropriated for this
section must be used for challenge grants or loans which meet
the requirements of this subdivision. These 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 the premium paid
for 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.
Sec. 8. Minnesota Statutes 2000, section 462A.33,
subdivision 5, is amended to read:
Subd. 5. [INCOME LIMITS.] Households served through
challenge grants or loans must not have incomes at the time of
initial occupancy 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 80 percent of
the greater of state or area median income as determined by the
United States Department of Housing and Urban Development except
that the housing developed or rehabilitated with challenge fund
grants or loans must be affordable to the local work force.
Preference among comparable proposals shall be given those
that provide housing opportunities for an expanded range of
household incomes within a community or that provide housing
opportunities for a wide range of incomes within the development.
Sec. 9. Minnesota Statutes 2000, section 462A.33, is
amended by adding a subdivision to read:
Subd. 8. [LIMITATION ON RETURN.] The limitations on return
of eligible mortgagors contained in section 462A.03, subdivision
13, do not apply to loans or grants for rental housing if the
loans or grants made by the agency, from all sources, are less
than 50 percent of the total costs, as determined by the agency.
Sec. 10. [REPEALER.]
Minnesota Statutes 2000, sections 462A.201, subdivision 4;
462A.207; 462A.209, subdivision 4; 462A.21, subdivision 17; and
462A.33, subdivisions 4, 6, and 7, are repealed.
ARTICLE 6
PUBLIC SERVICE CONSOLIDATION
Section 1. [CONSOLIDATION OF STATE REGULATION OF
COMMERCE.]
In order to make state government more efficient and
effective and to accomplish more efficient and effective
regulation of commerce in Minnesota, all of the powers, rights,
responsibilities, and duties that remain in the department of
public service after reorganization order No. 181 are
transferred to the department of commerce under Minnesota
Statutes, section 15.039. This transfer is governed in all
respects by Minnesota Statutes, section 15.039. The department
of public service is abolished.
Sec. 2. Minnesota Statutes 2000, section 3C.12,
subdivision 2, is amended to read:
Subd. 2. [FREE DISTRIBUTION.] The revisor shall distribute
without charge copies of each edition of Minnesota Statutes,
supplements to Minnesota Statutes, and Laws of Minnesota to the
persons or bodies listed in this subdivision. Before
distributing the copies, the revisor shall inform these persons
or bodies of the cost of the publication and the availability of
statutes and session laws on the Internet, and shall ask whether
their work requires the full number of copies authorized by this
subdivision. Unless a smaller number is needed, the revisor
shall distribute:
(a) 30 copies to the supreme court;
(b) 30 copies to the court of appeals;
(c) one copy to each judge of a district court;
(d) one copy to the court administrator of each district
court for use in each courtroom of the district court;
(e) one copy to each judge, district attorney, clerk of
court of the United States, and deputy clerk of each division of
the United States district court in Minnesota;
(f) 100 copies to the office of the attorney general;
(g) ten copies each to the governor's office, the
departments of agriculture, commerce, corrections, children,
families, and learning, finance, health, transportation, labor
and industry, economic security, natural resources, public
safety, public service, human services, revenue, and the
pollution control agency;
(h) two copies each to the lieutenant governor and the
state treasurer;
(i) 20 copies each to the department departments of
administration and commerce, state auditor, and legislative
auditor;
(j) one copy each to other state departments, agencies,
boards, and commissions not specifically named in this
subdivision;
(k) one copy to each member of the legislature;
(l) 150 copies for the use of the senate and 200 copies for
the use of the house of representatives;
(m) 50 copies to the revisor of statutes from which the
revisor shall send the appropriate number to the Library of
Congress for copyright and depository purposes;
(n) four copies to the secretary of the senate;
(o) four copies to the chief clerk of the house of
representatives;
(p) 100 copies to the state law library;
(q) 100 copies to the law school of the University of
Minnesota;
(r) five copies each to the Minnesota historical society
and the secretary of state;
(s) one copy each to the public library of the largest
municipality of each county if the library is not otherwise
eligible to receive a free copy under this section or section
15.18; and
(t) one copy to each county library maintained pursuant to
chapter 134, except in counties containing cities of the first
class. If a county has not established a county library
pursuant to chapter 134, the copy shall be provided to any
public library in the county.
Sec. 3. Minnesota Statutes 2000, section 13.679, is
amended to read:
13.679 [DEPARTMENT OF PUBLIC SERVICE DATA.]
Subdivision 1. [TENANT.] Data collected by the department
of public service commissioner of commerce that reveals the
identity of a tenant who makes a complaint regarding energy
efficiency standards for rental housing are private data on
individuals.
Subd. 2. [UTILITY OR TELEPHONE COMPANY EMPLOYEE OR
CUSTOMER.] (a) The following are private data on individuals:
data collected by the department of public service commissioner
of commerce or the public utilities commission, including the
names or any other data that would reveal the identity of either
an employee or customer of a telephone company or public utility
who files a complaint or provides information regarding a
violation or suspected violation by the telephone company or
public utility of any federal or state law or rule; except this
data may be released as needed to law enforcement authorities.
(b) The following are private data on individuals: data
collected by the commission or the department of public service
commissioner of commerce on individual public utility or
telephone company customers or prospective customers, including
copies of tax forms, needed to administer federal or state
programs that provide relief from telephone company bills,
public utility bills, or cold weather disconnection. The
determination of eligibility of the customers or prospective
customers may be released to public utilities or telephone
companies to administer the programs.
Sec. 4. Minnesota Statutes 2000, section 15.01, is amended
to read:
15.01 [DEPARTMENTS OF THE STATE.]
The following agencies are designated as the departments of
the state government: the department of administration; the
department of agriculture; the department of commerce; the
department of corrections; the department of children, families,
and learning; the department of economic security; the
department of trade and economic development; the department of
finance; the department of health; the department of human
rights; the department of labor and industry; the department of
military affairs; the department of natural resources; the
department of employee relations; the department of public
safety; the department of public service; the department of
human services; the department of revenue; the department of
transportation; the department of veterans affairs; and their
successor departments.
Sec. 5. Minnesota Statutes 2000, section 15.06,
subdivision 1, is amended to read:
Subdivision 1. [APPLICABILITY.] This section applies to
the following departments or agencies: the departments of
administration, agriculture, commerce, corrections, economic
security, children, families, and learning, employee relations,
trade and economic development, finance, health, human rights,
labor and industry, natural resources, public safety, public
service, human services, revenue, transportation, and veterans
affairs; the housing finance and pollution control agencies; the
office of commissioner of iron range resources and
rehabilitation; the bureau of mediation services; and their
successor departments and agencies. The heads of the foregoing
departments or agencies are "commissioners."
Sec. 6. Minnesota Statutes 2000, section 15A.0815,
subdivision 2, is amended to read:
Subd. 2. [GROUP I SALARY LIMITS.] The salaries for
positions in this subdivision may not exceed 95 percent of the
salary of the governor:
Commissioner of administration;
Commissioner of agriculture;
Commissioner of children, families, and learning;
Commissioner of commerce;
Commissioner of corrections;
Commissioner of economic security;
Commissioner of employee relations;
Commissioner of finance;
Commissioner of health;
Executive director, higher education services office;
Commissioner, housing finance agency;
Commissioner of human rights;
Commissioner of human services;
Executive director, state board of investment;
Commissioner of labor and industry;
Commissioner of natural resources;
Director of office of strategic and long-range planning;
Commissioner, pollution control agency;
Commissioner of public safety;
Commissioner, department of public service;
Commissioner of revenue;
Commissioner of trade and economic development;
Commissioner of transportation; and
Commissioner of veterans affairs.
Sec. 7. Minnesota Statutes 2000, section 16B.32,
subdivision 2, is amended to read:
Subd. 2. [ENERGY CONSERVATION GOALS; EFFICIENCY PROGRAM.]
(a) The commissioner of administration in consultation with
the department of public service commissioner of commerce, in
cooperation with one or more public utilities or comprehensive
energy services providers, may conduct a shared-savings program
involving energy conservation expenditures on state-owned
buildings. The public utility or energy services provider shall
contract with appropriate state agencies to implement energy
efficiency improvements in the selected buildings. A contract
must require the public utility or energy services provider to
include all energy efficiency improvements in selected buildings
that are calculated to achieve a cost payback within ten years.
The contract must require that the public utility or energy
services provider be repaid solely from energy cost savings and
only to the extent of energy cost savings. Repayments must be
interest-free. The goal of the program in this paragraph is to
demonstrate that through effective energy conservation the total
energy consumption per square foot of state-owned and wholly
state-leased buildings could be reduced by at least 25 percent
from consumption in the base year of 1990. All agencies
participating in the program must report to the commissioner of
administration their monthly energy usage, building schedules,
inventory of energy-consuming equipment, and other information
as needed by the commissioner to manage and evaluate the program.
(b) The commissioner may exclude from the program of
paragraph (a) a building in which energy conservation measures
are carried out. "Energy conservation measures" means measures
that are applied to a state building that improve energy
efficiency and have a simple return of investment in ten years
or within the remaining period of a lease, whichever time is
shorter, and involves energy conservation, conservation
facilities, renewable energy sources, improvements in operations
and maintenance efficiencies, or retrofit activities.
(c) This subdivision expires January 1, 2001.
Sec. 8. Minnesota Statutes 2000, section 16B.335,
subdivision 4, is amended to read:
Subd. 4. [ENERGY CONSERVATION.] A recipient to whom a
direct appropriation is made for a capital improvement project
shall ensure that the project complies with the applicable
energy conservation standards contained in law, including
sections 216C.19 to 216C.20, and rules adopted thereunder. The
recipient may use the energy planning and intervention and
energy technologies units of the department of public service to
obtain information and technical assistance from the state
energy office in the department of commerce on energy
conservation and alternative energy development relating to the
planning and construction of the capital improvement project.
Sec. 9. Minnesota Statutes 2000, section 16B.56,
subdivision 1, is amended to read:
Subdivision 1. [EMPLOYEE TRANSPORTATION PROGRAM.] (a)
[ESTABLISHMENT.] To conserve energy and alleviate traffic
congestion around state offices, the commissioner shall, in
cooperation with the commissioner of public service, the
commissioner of transportation, the state energy office in the
department of commerce, and interested nonprofit agencies,
establish and operate an employee transportation program using
commuter vans with a capacity of not less than seven nor more
than 16 passengers. Commuter vans may be used by state
employees and others to travel between their homes and their
work locations. However, only state employee drivers may use
the van for personal purposes after working hours, not including
partisan political activity. The commissioner shall acquire or
lease commuter vans, or otherwise contract for the provision of
commuter vans, and shall make the vans available for the use of
state employees and others in accordance with standards and
procedures adopted by the commissioner. The commissioner shall
promote the maximum participation of state employees and others
in the use of the vans.
(b) [ADMINISTRATIVE POLICIES.] The commissioner shall adopt
standards and procedures under this section without regard to
chapter 14. The commissioner shall provide for the recovery by
the state of vehicle acquisition, lease, operation, and
insurance costs through efficient and convenient assignment of
vans, and for the billing of costs and collection of fees. A
state employee using a van for personal use shall pay, pursuant
to the standards and procedures adopted by the commissioner, for
operating and routine maintenance costs incurred as a result of
the personal use. Fees collected under this subdivision shall
be deposited in the accounts from which the costs of operating,
maintaining, and leasing or amortization for the specific
vehicle are paid.
Sec. 10. Minnesota Statutes 2000, section 16B.76,
subdivision 1, is amended to read:
Subdivision 1. [MEMBERSHIP.] (a) The construction codes
advisory council consists of the following members:
(1) the commissioner of administration or the
commissioner's designee representing the department's building
codes and standards division;
(2) the commissioner of health or the commissioner's
designee representing an environmental health section of the
department;
(3) the commissioner of public safety or the commissioner's
designee representing the department's state fire marshal
division;
(4) the commissioner of public service commerce or the
commissioner's designee representing the department's energy
regulation and resource management division state energy office;
and
(5) one member representing each of the following
occupations or entities, appointed by the commissioner of
administration:
(i) a certified building official;
(ii) a fire service representative;
(iii) a licensed architect;
(iv) a licensed engineer;
(v) a building owners and managers representative;
(vi) a licensed residential building contractor;
(vii) a commercial building contractor;
(viii) a heating and ventilation contractor;
(ix) a plumbing contractor;
(x) a representative of a construction and building trades
union; and
(xi) a local unit of government representative.
(b) For members who are not state officials or employees,
terms, compensation, removal, and the filling of vacancies are
governed by section 15.059. The council shall select one of its
members to serve as chair.
(c) The council expires June 30, 2001.
Sec. 11. Minnesota Statutes 2000, section 17.86,
subdivision 3, is amended to read:
Subd. 3. [INFORMATION.] The University of Minnesota
extension service, in cooperation with the commissioners of
agriculture, children, families, and learning, natural
resources, and public service commerce, shall serve as the
principal agency for publishing and circulating information
derived from research under subdivision 2 among the various
municipalities and individual property owners in the state.
Where practical, the extension service and the state energy
office in the department of public service commerce shall secure
the advice and assistance of various energy utilities interested
and concerned with conservation. The commissioner of
agriculture shall establish an information source for requests
for nursery stock, to match needs of municipalities with stocks
of trees available for planting from private and governmental
sources.
Sec. 12. Minnesota Statutes 2000, section 18.024,
subdivision 1, is amended to read:
Subdivision 1. [WOOD UTILIZATION.] The departments of
agriculture and natural resources, after consultation with the
Minnesota shade tree advisory committee and the commissioner of
public service state energy office in the department of
commerce, shall investigate, evaluate, and make recommendations
to the legislature concerning the potential uses of wood from
community trees removed due to disease or other disorders.
These recommendations shall include maximum resource recovery
through recycling, use as an alternative energy source, or use
in construction or the manufacture of new products. Wood
utilization or disposal systems as defined in section 18.023
must be included to ensure maximum utilization of diseased shade
trees with designs and procedures to ensure public safety and to
assure compliance with approved disease control programs.
Sec. 13. Minnesota Statutes 2000, section 43A.08,
subdivision 1a, is amended to read:
Subd. 1a. [ADDITIONAL UNCLASSIFIED POSITIONS.] Appointing
authorities for the following agencies may designate additional
unclassified positions according to this subdivision: the
departments of administration; agriculture; commerce;
corrections; economic security; children, families, and
learning; employee relations; trade and economic development;
finance; health; human rights; labor and industry; natural
resources; public safety; public service; human services;
revenue; transportation; and veterans affairs; the housing
finance and pollution control agencies; the state lottery; the
state board of investment; the office of administrative
hearings; the office of environmental assistance; the offices of
the attorney general, secretary of state, state auditor, and
state treasurer; the Minnesota state colleges and universities;
the higher education services office; the Perpich center for
arts education; and the Minnesota zoological board.
A position designated by an appointing authority according
to this subdivision must meet the following standards and
criteria:
(1) the designation of the position would not be contrary
to other law relating specifically to that agency;
(2) the person occupying the position would report directly
to the agency head or deputy agency head and would be designated
as part of the agency head's management team;
(3) the duties of the position would involve significant
discretion and substantial involvement in the development,
interpretation, and implementation of agency policy;
(4) the duties of the position would not require primarily
personnel, accounting, or other technical expertise where
continuity in the position would be important;
(5) there would be a need for the person occupying the
position to be accountable to, loyal to, and compatible with,
the governor and the agency head, the employing statutory board
or commission, or the employing constitutional officer;
(6) the position would be at the level of division or
bureau director or assistant to the agency head; and
(7) the commissioner has approved the designation as being
consistent with the standards and criteria in this subdivision.
Sec. 14. Minnesota Statutes 2000, section 45.012, is
amended to read:
45.012 [COMMISSIONER.]
(a) The department of commerce is under the supervision and
control of the commissioner of commerce. The commissioner is
appointed by the governor in the manner provided by section
15.06.
(b) Data that is received by the commissioner or the
commissioner's designee by virtue of membership or participation
in an association, group, or organization that is not otherwise
subject to chapter 13 is confidential or protected nonpublic
data but may be shared with the department employees as the
commissioner considers appropriate. The commissioner may
release the data to any person, agency, or the public if the
commissioner determines that the access will aid the law
enforcement process, promote public health or safety, or dispel
widespread rumor or unrest.
(c) It is part of the department's mission that within the
department's resources the commissioner shall endeavor to:
(1) prevent the waste or unnecessary spending of public
money;
(2) use innovative fiscal and human resource practices to
manage the state's resources and operate the department as
efficiently as possible;
(3) coordinate the department's activities wherever
appropriate with the activities of other governmental agencies;
(4) use technology where appropriate to increase agency
productivity, improve customer service, increase public access
to information about government, and increase public
participation in the business of government;
(5) utilize constructive and cooperative labor-management
practices to the extent otherwise required by chapters 43A and
179A;
(6) report to the legislature on the performance of agency
operations and the accomplishment of agency goals in the
agency's biennial budget according to section 16A.10,
subdivision 1; and
(7) recommend to the legislature appropriate changes in law
necessary to carry out the mission and improve the performance
of the department.
(d) The commissioner also has all the powers and
responsibilities and shall perform all the duties previously
assigned to the commissioner of public service and the
department of public service under chapters 216, 216A, 216B,
216C, 237, 238, 239, and other statutes prior to the date of
final enactment of this act, except in the case where those
powers, responsibilities, or duties have been specifically
otherwise assigned by law.
Sec. 15. Minnesota Statutes 2000, section 103F.325,
subdivision 2, is amended to read:
Subd. 2. [REVIEW AND HEARING.] (a) The commissioner shall
make the proposed management plan available to affected local
governmental bodies, shoreland owners, conservation and outdoor
recreation groups, the commissioner of trade and economic
development, the commissioner of public service commerce, the
governor, and the general public. The commissioners of trade
and economic development and of public service, the state energy
office in the department of commerce, and the governor shall
review the proposed management plan in accordance with the
criteria in section 86A.09, subdivision 3, and submit any
written comments to the commissioner within 60 days after
receipt of the proposed management plan.
(b) By 60 days after making the information available, the
commissioner shall conduct a public hearing on the proposed
management plan in the county seat of each county that contains
a portion of the designated system area, in the manner provided
in chapter 14.
Sec. 16. Minnesota Statutes 2000, section 103F.325,
subdivision 3, is amended to read:
Subd. 3. [POST HEARING REVIEW.] Upon receipt of the
administrative law judge's report, the commissioner shall
immediately forward the proposed management plan and the
administrative law judge's report to the commissioners of trade
and economic development and of public service commerce for
review under section 86A.09, subdivision 3, except that the
review by the commissioners must be completed or be deemed
completed within 30 days after receiving the administrative law
judge's report, and the review by the governor must be completed
or be deemed completed within 15 days after receipt.
Sec. 17. Minnesota Statutes 2000, section 115A.15,
subdivision 5, is amended to read:
Subd. 5. [REPORTS.] (a) By January 1 of each odd-numbered
year, the commissioner of administration shall submit a report
to the governor and to the environment and natural resources
committees of the senate and house of representatives, the
finance division of the senate committee on environment and
natural resources, and the house of representatives committee on
environment and natural resources finance summarizing past
activities and proposed goals of the program for the following
biennium. The report shall include at least:
(1) a summary list of product and commodity purchases that
contain recycled materials;
(2) the results of any performance tests conducted on
recycled products and agencies' experience with recycled
products used;
(3) a list of all organizations participating in and using
the cooperative purchasing program; and
(4) a list of products and commodities purchased for their
recyclability and of recycled products reviewed for purchase.
(b) By July 1 of each even-numbered year, the director of
the office of environmental assistance and the commissioner of
public service commerce through the state energy office shall
submit recommendations to the commissioner regarding the
operation of the program.
Sec. 18. Minnesota Statutes 2000, section 116O.06,
subdivision 2, is amended to read:
Subd. 2. [EQUITY INVESTMENTS.] The corporation may acquire
an interest in a product or a private business entity, except
that the corporation may not acquire an interest in a business
entity engaged in a trade or industry whose profits are directly
regulated by the commissioner of commerce or the department of
public service public utilities commission. The corporation may
enter into joint venture agreements with other private
corporations to promote economic development and job creation.
Sec. 19. Minnesota Statutes 2000, section 123B.65,
subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] The definitions in this
subdivision apply to this section.
(a) "Energy conservation measure" means a training program
or facility alteration designed to reduce energy consumption or
operating costs and includes:
(1) insulation of the building structure and systems within
the building;
(2) storm windows and doors, caulking or weatherstripping,
multiglazed windows and doors, heat absorbing or heat reflective
glazed and coated window and door systems, additional glazing,
reductions in glass area, and other window and door system
modifications that reduce energy consumption;
(3) automatic energy control systems;
(4) heating, ventilating, or air conditioning system
modifications or replacements;
(5) replacement or modifications of lighting fixtures to
increase the energy efficiency of the lighting system without
increasing the overall illumination of a facility, unless such
increase in illumination is necessary to conform to the
applicable state or local building code for the lighting system
after the proposed modifications are made;
(6) energy recovery systems;
(7) cogeneration systems that produce steam or forms of
energy such as heat, as well as electricity, for use primarily
within a building or complex of buildings;
(8) energy conservation measures that provide long-term
operating cost reductions.
(b) "Guaranteed energy savings contract" means a contract
for the evaluation and recommendations of energy conservation
measures, and for one or more energy conservation measures. The
contract must provide that all payments, except obligations on
termination of the contract before its expiration, are to be
made over time, but not to exceed 15 years from the date of
final installation, and the savings are guaranteed to the extent
necessary to make payments for the systems.
(c) "Qualified provider" means a person or business
experienced in the design, implementation, and installation of
energy conservation measures. A qualified provider to whom the
contract is awarded shall give a sufficient bond to the school
district for its faithful performance.
(d) "Commissioner" means the commissioner of public service
commerce through the state energy office.
Sec. 20. Minnesota Statutes 2000, section 123B.65,
subdivision 3, is amended to read:
Subd. 3. [EVALUATION BY COMMISSIONER.] Upon request of the
board, the commissioner of public service shall review the
report required in subdivision 2 and provide an evaluation to
the board on the proposed contract within 15 working days of
receiving the report. In evaluating the proposed contract, the
commissioner shall determine whether the detailed calculations
of the costs and of the energy and operating savings are
accurate and reasonable. The commissioner may request
additional information about a proposed contract as the
commissioner deems necessary. If the commissioner requests
additional information, the commissioner shall not be required
to submit an evaluation to the board within fewer than ten
working days of receiving the requested information.
Sec. 21. Minnesota Statutes 2000, section 123B.65,
subdivision 5, is amended to read:
Subd. 5. [PAYMENT OF REVIEW EXPENSES.] The commissioner of
public service may charge a district requesting services under
subdivisions 3 and 4 actual costs incurred by the department
of public service commerce while conducting the review, or
one-half percent of the total identified project cost, whichever
is less. Before conducting the review, the commissioner shall
notify a district requesting review services that expenses will
be charged to the district. The commissioner shall bill the
district upon completion of the contract review. Money
collected by the commissioner under this subdivision must be
deposited in the general fund. A district may include the cost
of a review by the commissioner under subdivision 3 in a
contract made pursuant to this section.
Sec. 22. Minnesota Statutes 2000, section 161.45,
subdivision 1, is amended to read:
Subdivision 1. [RULES.] Electric transmission, telephone
or telegraph lines, pole lines, community antenna television
lines, railways, ditches, sewers, water, heat or gas mains, gas
and other pipe lines, flumes, or other structures which, under
the laws of this state or the ordinance of any city, may be
constructed, placed, or maintained across or along any trunk
highway, or the roadway thereof, by any person, persons,
corporation, or any subdivision of the state, may be so
maintained or hereafter constructed only in accordance with such
rules as may be prescribed by the commissioner who shall have
power to prescribe and enforce reasonable rules with reference
to the placing and maintaining along, across, or in any such
trunk highway of any of the utilities hereinbefore set forth.
Nothing herein shall restrict the actions of public authorities
in extraordinary emergencies nor restrict the power and
authority of the department of public service commissioner of
commerce as provided for in other provisions of law. Provided,
however, that in the event any local subdivision of government
has enacted ordinances relating to the method of installation or
requiring underground installation of such community antenna
television lines, the permit granted by the commissioner of
transportation shall require compliance with such local
ordinance.
Sec. 23. Minnesota Statutes 2000, section 168.61,
subdivision 1, is amended to read:
Subdivision 1. [DEFINITION.] The term "intercity bus" as
used in sections 168.61 to 168.65 means a motor bus as defined
in section 168.011, subdivision 9, which is owned or operated by
either a resident or nonresident of Minnesota in interstate
commerce under authority of the Interstate Commerce Commission
or in combined interstate and intrastate commerce under
authority of the Interstate Commerce Commission and the
department of public service transportation of Minnesota, as a
result of which operation such bus operates both within and
without the territorial limits of the state of Minnesota.
Sec. 24. Minnesota Statutes 2000, section 169.073, is
amended to read:
169.073 [PROHIBITED LIGHT OR SIGNAL.]
(a) No person or corporation shall place, maintain or
display any red light or red sign, signal, or lighting device or
maintain it in view of any highway or any line of railroad on or
over which trains are operated in such a way as to interfere
with the effectiveness or efficiency of any highway
traffic-control device or signals or devices used in the
operation of a railroad. Upon written notice from the
commissioner of transportation, a person or corporation
maintaining or owning or displaying a prohibited light shall
promptly remove it, or change the color of it to some other
color than red. Where a prohibited light or sign interferes
with the effectiveness or efficiency of the signals or devices
used in the operation of a railroad, the department of public
service transportation may cause the removal of it and the
department may issue notices and orders for its removal. The
department shall proceed as provided in sections 216.13, 216.14,
216.15, 216.16, and 216.17, with a right of appeal to the
aggrieved party in accordance with chapter 14.
(b) No person or corporation shall maintain or display any
light after written notice from the commissioner of
transportation or the department of public service that the
light constitutes a traffic hazard and that it has ordered the
removal thereof.
Sec. 25. Minnesota Statutes 2000, section 174.03,
subdivision 7, is amended to read:
Subd. 7. [ENERGY CONSERVATION.] The commissioner, in
cooperation with the commissioner of public service commerce
through the state energy office, shall evaluate all modes of
transportation in terms of their levels of energy consumption.
The commissioner of public service commerce shall provide the
commissioner with projections of the future availability of
energy resources for transportation. The commissioner shall use
the results of this evaluation and the projections to evaluate
alternative programs and facilities to be included in the
statewide plan and to otherwise promote the more efficient use
of energy resources for transportation purposes.
Sec. 26. Minnesota Statutes 2000, section 181.30, is
amended to read:
181.30 [DUTY OF DEPARTMENT OF PUBLIC SERVICE.]
Any officer of any railroad company in the state violating
any of the provisions of section 181.29 shall be guilty of a
misdemeanor; and, upon conviction, punished by a fine of not
less than $100, and not more than $700, for each offense, or by
imprisonment in the county jail not more than 60 days, or both
fine and imprisonment, at the discretion of the court. It shall
be the duty of the state department of public
service transportation, upon complaint properly filed with it
alleging a violation of section 181.29, to make a full
investigation in relation thereto, and for such purpose it shall
have the power to administer oaths, interrogate witnesses, take
testimony and require the production of books and papers, and if
such report shall show a violation of the provisions of section
181.29, the department of public service transportation shall,
through the attorney general, begin the prosecution of all
parties against whom evidence of such violation is found; but
section 181.29 shall not be construed to prevent any other
person from beginning prosecution for the violation of the
provisions thereof.
Sec. 27. Minnesota Statutes 2000, section 216A.01, is
amended to read:
216A.01 [ESTABLISHMENT OF DEPARTMENT AND COMMISSION; POWERS
AND DUTIES.]
There are hereby created and established the department of
public service, and the public utilities commission. The
department of public service commerce shall have and possess all
of the rights and powers and perform all of the duties vested in
it by this chapter. The public utilities commission shall have
and possess all of the rights and powers and perform all of the
duties vested in it by this chapter, and those formerly vested
by law in the railroad and warehouse commission.
Sec. 28. Minnesota Statutes 2000, section 216A.035, is
amended to read:
216A.035 [CONFLICT OF INTEREST.]
(a) No person, while a member of the public utilities
commission, while acting as executive secretary of the
commission, or while employed in a professional capacity by the
commission, shall receive any income, other than dividends or
other earnings from a mutual fund or trust if these earnings do
not constitute a significant portion of the person's income,
directly or indirectly from any public utility or other
organization subject to regulation by the commission.
(b) No person is eligible to be appointed as a member of
the commission if the person has been employed with an entity,
or an affiliated company of an entity, that is subject to rate
regulation by the commission within one year from the date when
the person's term on the commission will begin.
(c) No person who is an employee of the public service
department of commerce shall participate in any manner in any
decision or action of the commission where that person has a
direct or indirect financial interest. Each commissioner or
employee of the public service department who is in the general
professional, supervisory, or technical units established in
section 179A.10 or who is a professional, supervisory, or
technical employee defined as confidential in section 179A.03,
subdivision 4, or who is a management classification employee
and whose duties are related to public utilities or
transportation utility, telephone company, or telecommunications
company regulation shall report to the campaign finance and
public disclosure board annually before April 15 any interest in
an industry or business regulated by the commission. Each
commissioner shall file a statement of economic interest as
required by section 10A.09 with the campaign finance and public
disclosure board and the public utilities commission before
taking office. The statement of economic interest must state
any interest that the commissioner has in an industry or
business regulated by the commission.
(d) A professional employee of the commission or department
must immediately disclose to the commission or to the
commissioner of the department, respectively, any communication,
direct or indirect, with a person who is a party to a pending
proceeding before the commission regarding future benefits,
compensation, or employment to be received from that person.
Sec. 29. Minnesota Statutes 2000, section 216A.036, is
amended to read:
216A.036 [EMPLOYMENT RESTRICTIONS.]
(a) A person who serves as (1) a commissioner of the public
utilities commission, (2) commissioner of the department of
public service commerce, or (3) deputy commissioner of the
department commerce, shall not, while employed with or within
one year after leaving the commission, or department, accept
employment with, receive compensation directly or indirectly
from, or enter into a contractual relationship with an entity,
or an affiliated company of an entity, that is subject to rate
regulation by the commission.
(b) An entity or an affiliated company of an entity that is
subject to rate regulation by the commission, or a person acting
on behalf of the entity, shall not negotiate or offer to employ
or compensate a commissioner of the public utilities commission,
the commissioner of public service commerce, or the deputy
commissioner of commerce, while the person is so employed or
within one year after the person leaves that employment.
(c) For the purposes of this section, "affiliated company"
means a company that controls, is controlled by, or is under
common control with an entity subject to rate regulation by the
commission.
(d) A person who violates this section is subject to a
civil penalty not to exceed $10,000 for each violation. The
attorney general may bring an action in district court to
collect the penalties provided in this section.
Sec. 30. Minnesota Statutes 2000, section 216A.05,
subdivision 1, is amended to read:
Subdivision 1. [LEGISLATIVE AND QUASI-JUDICIAL FUNCTIONS.]
The functions of the commission shall be legislative and
quasi-judicial in nature. It may make such investigations and
determinations, hold such hearings, prescribe such rules and
issue such orders with respect to the control and conduct of the
businesses coming within its jurisdiction as the legislature
itself might make but only as it shall from time to time
authorize. It may adjudicate all proceedings brought before it
in which the violation of any law or rule administered by the
department of commerce is alleged.
Sec. 31. Minnesota Statutes 2000, section 216A.07,
subdivision 1, is amended to read:
Subdivision 1. [ADMINISTRATIVE COMMISSIONER DUTIES.] The
commissioner shall be the executive and administrative head of
the public service department and shall have and possess of
commerce has all the rights and powers and shall perform all the
duties relating to the administrative function of the department
as set forth in this chapter. The commissioner may:
(1) prepare all forms or blanks for the purpose of
obtaining information which the commissioner may deem necessary
or useful in the proper exercise of the authority and duties of
the commissioner in connection with regulated businesses;
(2) prescribe the time and manner within which forms or
blanks shall be filed with the department;
(3) inspect at all reasonable times, and copy the books,
records, memoranda and correspondence or other documents and
records of any person relating to any regulated business; and
(4) cause the deposition to be taken of any person
concerning the business and affairs of any business regulated by
the department. Information sought through said deposition
shall be for a lawfully authorized purpose and shall be relevant
and material to the investigation or hearing before the
commission. Information obtained from said deposition shall be
used by the department only for a lawfully authorized purpose
and pursuant to powers and responsibilities conferred upon the
department. Said deposition is to be taken in the manner
prescribed by law for taking depositions in civil actions in the
district court.
Sec. 32. Minnesota Statutes 2000, section 216A.08, is
amended to read:
216A.08 [CONTINUATION OF RULES OF PUBLIC SERVICE
DEPARTMENT.]
All valid rules, orders, and directives heretofore
enforced, issued, or promulgated by the public service
department under authority of chapter 216, 216A, 216B, 216C,
218, 219, 221, or 222, 237, 238, or 239 shall remain and
continue in force and effect until repealed, modified, or
superseded by duly authorized rules, orders, or directives of
the public utilities commission or, the commissioner of
transportation, or the commissioner of commerce.
Sec. 33. Minnesota Statutes 2000, section 216A.085,
subdivision 3, is amended to read:
Subd. 3. [STAFFING.] The intervention office shall be
under the control and supervision of the commissioner of the
department of public service commerce. The commissioner may
hire staff or contract for outside services as needed to carry
out the purposes of this section. The attorney general shall
act as counsel in all intervention proceedings.
Sec. 34. Minnesota Statutes 2000, section 216B.02,
subdivision 1, is amended to read:
Subdivision 1. [SCOPE.] For the purposes of Laws 1974,
chapter 429 this chapter the terms defined in this section have
the meanings given them.
Sec. 35. Minnesota Statutes 2000, section 216B.02,
subdivision 7, is amended to read:
Subd. 7. [COMMISSION.] "Commission" means the public
utilities commission of the department of public service.
Sec. 36. Minnesota Statutes 2000, section 216B.02,
subdivision 8, is amended to read:
Subd. 8. [DEPARTMENT.] "Department" means the department
of public service commerce of the state of Minnesota.
Sec. 37. Minnesota Statutes 2000, section 216B.16,
subdivision 1, is amended to read:
Subdivision 1. [NOTICE.] Unless the commission otherwise
orders, no public utility shall change a rate which has been
duly established under this chapter, except upon 60 days' notice
to the commission. The notice shall include statements of
facts, expert opinions, substantiating documents, and exhibits,
supporting the change requested, and state the change proposed
to be made in the rates then in force and the time when the
modified rates will go into effect. If the filing utility does
not have an approved conservation improvement plan on file with
the department of public service, it shall also include in its
notice an energy conservation plan pursuant to section
216B.241. The filing utility shall give written notice, as
approved by the commission, of the proposed change to the
governing body of each municipality and county in the area
affected. All proposed changes shall be shown by filing new
schedules or shall be plainly indicated upon schedules on file
and in force at the time.
Sec. 38. Minnesota Statutes 2000, section 216B.16,
subdivision 2, is amended to read:
Subd. 2. [SUSPENSION OF PROPOSED RATE; HEARING; FINAL
DETERMINATION DEFINED.] (a) Whenever there is filed with the
commission a schedule modifying or resulting in a change in any
rates then in force as provided in subdivision 1, the commission
may suspend the operation of the schedule by filing with the
schedule of rates and delivering to the affected utility a
statement in writing of its reasons for the suspension at any
time before the rates become effective. The suspension shall
not be for a longer period than ten months beyond the initial
filing date except as provided in this subdivision or
subdivision 1a.
(b) During the suspension the commission shall determine
whether all questions of the reasonableness of the rates
requested raised by persons deemed interested or by the
administrative division of the department of public service can
be resolved to the satisfaction of the commission. If the
commission finds that all significant issues raised have not
been resolved to its satisfaction, or upon petition by ten
percent of the affected customers or 250 affected customers,
whichever is less, it shall refer the matter to the office of
administrative hearings with instructions for a public hearing
as a contested case pursuant to chapter 14, except as otherwise
provided in this section.
(c) The commission may order that the issues presented by
the proposed rate changes be bifurcated into two separate
hearings as follows: (1) determination of the utility's revenue
requirements and (2) determination of the rate design. Upon
issuance of both administrative law judge reports, the issues
shall again be joined for consideration and final determination
by the commission.
(d) All prehearing discovery activities of state agency
intervenors shall be consolidated and conducted by the
department of public service commerce.
(e) If the commission does not make a final determination
concerning a schedule of rates within ten months after the
initial filing date, the schedule shall be deemed to have been
approved by the commission; except if:
(1) an extension of the procedural schedule has been
granted under subdivision 1a, in which case the schedule of
rates is deemed to have been approved by the commission on the
last day of the extended period of suspension; or
(2) a settlement has been submitted to and rejected by the
commission and the commission does not make a final
determination concerning the schedule of rates, the schedule of
rates is deemed to have been approved 60 days after the initial
or, if applicable, the extended period of suspension.
(f) If the commission finds that it has insufficient time
during the suspension period to make a final determination of a
case involving changes in general rates because of the need to
make a final determination of another previously filed case
involving changes in general rates under this section or section
237.075, the commission may extend the suspension period to the
extent necessary to allow itself 20 working days to make the
final determination after it has made a final determination in
the previously filed case. An extension of the suspension
period under this paragraph does not alter the setting of
interim rates under subdivision 3.
(g) For the purposes of this section, "final determination"
means the initial decision of the commission and not any order
which may be entered by the commission in response to a petition
for rehearing or other further relief. The commission may
further suspend rates until it determines all those petitions.
Sec. 39. Minnesota Statutes 2000, section 216B.16,
subdivision 6b, is amended to read:
Subd. 6b. [ENERGY CONSERVATION IMPROVEMENT.] (a) Except as
otherwise provided in this subdivision, all investments and
expenses of a public utility as defined in section 216B.241,
subdivision 1, paragraph (e), incurred in connection with energy
conservation improvements shall be recognized and included by
the commission in the determination of just and reasonable rates
as if the investments and expenses were directly made or
incurred by the utility in furnishing utility service.
(b) After December 31, 1999, investments and expenses for
energy conservation improvements shall not be included by the
commission in the determination of just and reasonable electric
and gas rates for retail electric and gas service provided to
large electric customer facilities that have been exempted by
the commissioner of the department of public service pursuant to
section 216B.241, subdivision 1a, paragraph (b). However, no
public utility shall be prevented from recovering its investment
in energy conservation improvements from all customers that were
made on or before December 31, 1999, in compliance with the
requirements of section 216B.241.
(c) The commission may permit a public utility to file rate
schedules providing for annual recovery of the costs of energy
conservation improvements. These rate schedules may be
applicable to less than all the customers in a class of retail
customers if necessary to reflect the differing minimum spending
requirements of section 216B.241, subdivision 1a. After
December 31, 1999, the commission shall allow a public utility,
without requiring a general rate filing under this section, to
reduce the electric and gas rates applicable to large electric
customer facilities that have been exempted by the commissioner
of the department of public service pursuant to section
216B.241, subdivision 1a, paragraph (b), by an amount that
reflects the elimination of energy conservation improvement
investments or expenditures for those facilities required on or
before December 31, 1999. In the event that the commission has
set electric or gas rates based on the use of an accounting
methodology that results in the cost of conservation
improvements being recovered from utility customers over a
period of years, the rate reduction may occur in a series of
steps to coincide with the recovery of balances due to the
utility for conservation improvements made by the utility on or
before December 31, 1999.
Sec. 40. Minnesota Statutes 2000, section 216B.16,
subdivision 15, is amended to read:
Subd. 15. [LOW-INCOME RATE PROGRAMS; REPORT.] (a) The
commission may consider ability to pay as a factor in setting
utility rates and may establish programs for low-income
residential ratepayers in order to ensure affordable, reliable,
and continuous service to low-income utility customers. The
commission shall order a pilot program for at least one
utility. In ordering pilot programs, the commission shall
consider the following:
(1) the potential for low-income programs to provide
savings to the utility for all collection costs including but
not limited to: costs of disconnecting and reconnecting
residential ratepayers' service, all activities related to the
utilities' attempt to collect past due bills, utility working
capital costs, and any other administrative costs related to
inability to pay programs and initiatives;
(2) the potential for leveraging federal low-income energy
dollars to the state; and
(3) the impact of energy costs as a percentage of the total
income of a low-income residential customer.
(b) In determining the structure of the pilot utility
program, the commission shall:
(1) consult with advocates for and representatives of
low-income utility customers, administrators of energy
assistance and conservation programs, and utility
representatives;
(2) coordinate eligibility for the program with the state
and federal energy assistance program and low-income residential
energy programs, including weatherization programs; and
(3) evaluate comprehensive low-income programs offered by
utilities in other states.
(c) The commission shall implement at least one pilot
project by January 1, 1995, and shall allow a utility required
to implement a pilot project to recover the net costs of the
project in the utility's rates.
(d) The commission, in conjunction with the commissioner of
the department of public service and the commissioner of
economic security, shall review low-income rate programs and
shall report to the legislature by January 1, 1998. The report
must include:
(1) the increase in federal energy assistance money
leveraged by the state as a result of this program;
(2) the effect of the program on low-income customer's
ability to pay energy costs;
(3) the effect of the program on utility customer bad debt
and arrearages;
(4) the effect of the program on the costs and numbers of
utility disconnections and reconnections and other costs
incurred by the utility in association with inability to pay
programs;
(5) the ability of the utility to recover the costs of the
low-income program without a general rate change;
(6) how other ratepayers have been affected by this
program;
(7) recommendations for continuing, eliminating, or
expanding the low-income pilot program; and
(8) how general revenue funds may be utilized in
conjunction with low-income programs.
Sec. 41. Minnesota Statutes 2000, section 216B.162,
subdivision 7, is amended to read:
Subd. 7. [COMMISSION DETERMINATION.] (a) Except as
provided under subdivision 6, competitive rates offered by
electric utilities under this section must be filed with the
commission and must be approved, modified, or rejected by the
commission within 90 days. The utility's filing must include
statements of fact demonstrating that the proposed rates meet
the standards of this subdivision. The filing must be served on
the department of public service and the office of the attorney
general at the same time as it is served on the commission.
(b) In reviewing a specific rate proposal, the commission
shall determine:
(1) that the rate meets the terms and conditions in
subdivision 4, unless the commission determines that waiver of
one or more terms and conditions would be in the public
interest;
(2) that the consumer can obtain its energy requirements
from an energy supplier not rate-regulated by the commission
under section 216B.16;
(3) that the customer is not likely to take service from
the electric utility seeking to offer the competitive rate if
the customer was charged the electric utility's standard
tariffed rate; and
(4) that after consideration of environmental and
socioeconomic impacts it is in the best interest of all other
customers to offer the competitive rate to the customer subject
to effective competition.
(c) If the commission approves the competitive rate, it
becomes effective as agreed to by the electric utility and the
customer. If the competitive rate is modified by the
commission, the commission shall issue an order modifying the
competitive rate subject to the approval of the electric utility
and the customer. Each party has ten days in which to reject
the proposed modification. If no party rejects the proposed
modification, the commissioner's order becomes final. If either
party rejects the commission's proposed modification, the
electric utility, on its behalf or on the behalf of the
customer, may submit to the commission a modified version of the
commission's proposal. The commission shall accept or reject
the modified version within 30 days. If the commission rejects
the competitive rate, it shall issue an order indicating the
reasons for the rejection.
Sec. 42. Minnesota Statutes 2000, section 216B.162,
subdivision 11, is amended to read:
Subd. 11. [COMMISSION DETERMINATION.] (a) Proposals for
discretionary rate reductions offered by utilities must be filed
with the commission, with copies of the filing served upon the
department of public service and the office of attorney general
at the same time it is served upon the commission. The
commission shall review the proposals according to procedures
developed under section 216B.05, subdivision 2a. The commission
shall not approve discretionary rate reductions offered by
public utilities that do not have an accepted resource plan on
file with the commission. The commission shall not approve
discretionary rate reductions unless the utility has made the
customer aware of all cost-effective opportunities for energy
efficiency improvements offered by the utility.
(b) Public utilities that provide service under
discretionary rate reductions shall not, through increased
revenue requirements or through prospective rate design changes,
recover any revenues foregone due to the discretionary rate
reductions, nor shall the commission grant such recovery.
Sec. 43. Minnesota Statutes 2000, section 216B.1675,
subdivision 9, is amended to read:
Subd. 9. [COMMISSION FINDINGS.] The commission shall issue
findings concerning the appropriateness of the proposed plan.
The commission may approve, reject, or modify the plan in a
manner which meets the requirements of this section. An
approved or modified plan becomes effective unless the plan is
withdrawn by the utility within 30 days of a final appealable
order. If the utility withdraws an approved or modified plan,
all of the administrative costs related to the plan that are
charged by the commission or the department of public service to
the utility may not be recovered from ratepayers in current or
subsequent rates. A utility that withdraws an approved or
modified plan may not file another plan under this section for a
period of one year following the withdrawal of the plan.
Sec. 44. Minnesota Statutes 2000, section 216B.241,
subdivision 1a, is amended to read:
Subd. 1a. [INVESTMENT, EXPENDITURE, AND CONTRIBUTION;
PUBLIC UTILITY.] (a) For purposes of this subdivision and
subdivision 2, "public utility" has the meaning given it in
section 216B.02, subdivision 4. Each public utility shall spend
and invest for energy conservation improvements under this
subdivision and subdivision 2 the following amounts:
(1) for a utility that furnishes gas service, 0.5 percent
of its gross operating revenues from service provided in the
state;
(2) for a utility that furnishes electric service, 1.5
percent of its gross operating revenues from service provided in
the state; and
(3) for a utility that furnishes electric service and that
operates a nuclear-powered electric generating plant within the
state, two percent of its gross operating revenues from service
provided in the state.
For purposes of this paragraph (a), "gross operating
revenues" do not include revenues from large electric customer
facilities exempted by the commissioner of the department of
public service pursuant to paragraph (b).
(b) The owner of a large electric customer facility may
petition the commissioner of the department of public service to
exempt both electric and gas utilities serving the large energy
customer facility from the investment and expenditure
requirements of paragraph (a) with respect to retail revenues
attributable to the facility. At a minimum, the petition must
be supported by evidence relating to competitive or economic
pressures on the customer and a showing by the customer of
reasonable efforts to identify, evaluate, and implement
cost-effective conservation improvements at the facility. If a
petition is filed on or before October 1 of any year, the order
of the commissioner to exempt revenues attributable to the
facility can be effective no earlier than January 1 of the
following year. The commissioner shall not grant an exemption
if the commissioner determines that granting the exemption is
contrary to the public interest. The commissioner may, after
investigation, rescind any exemption granted under this
paragraph upon a determination that cost-effective energy
conservation improvements are available at the large electric
customer facility. For the purposes of this paragraph,
"cost-effective" means that the projected total cost of the
energy conservation improvement at the large electric customer
facility is less than the projected present value of the energy
and demand savings resulting from the energy conservation
improvement. For the purposes of investigations by the
commissioner under this paragraph, the owner of any large
electric customer facility shall, upon request, provide the
commissioner with updated information comparable to that
originally supplied in or with the owner's original petition
under this paragraph.
(c) The commissioner may require investments or spending
greater than the amounts required under this subdivision for a
public utility whose most recent advance forecast required under
section 216B.2422 or 216C.17 projects a peak demand deficit of
100 megawatts or greater within five years under mid-range
forecast assumptions.
(d) A public utility or owner of a large electric customer
facility may appeal a decision of the commissioner under
paragraph (b) or (c) to the commission under subdivision 2. In
reviewing a decision of the commissioner under paragraph (b) or
(c), the commission shall rescind the decision if it finds that
the required investments or spending will:
(1) not result in cost-effective energy conservation
improvements; or
(2) otherwise not be in the public interest.
(e) Each utility shall determine what portion of the amount
it sets aside for conservation improvement will be used for
conservation improvements under subdivision 2 and what portion
it will contribute to the energy and conservation account
established in subdivision 2a. A public utility may propose to
the commissioner to designate that all or a portion of funds
contributed to the account established in subdivision 2a be used
for research and development projects. Contributions must be
remitted to the commissioner of public service by February 1 of
each year. Nothing in this subdivision prohibits a public
utility from spending or investing for energy conservation
improvement more than required in this subdivision.
Sec. 45. Minnesota Statutes 2000, section 216B.241,
subdivision 1b, is amended to read:
Subd. 1b. [CONSERVATION IMPROVEMENT BY COOPERATIVE
ASSOCIATION OR MUNICIPALITY.] (a) This subdivision applies to:
(1) a cooperative electric association that generates and
transmits electricity to associations that provide electricity
at retail including a cooperative electric association not
located in this state that serves associations or others in the
state;
(2) a municipality that provides electric service to retail
customers; and
(3) a municipality with gross operating revenues in excess
of $5,000,000 from sales of natural gas to retail customers.
(b) Each cooperative electric association and municipality
subject to this subdivision shall spend and invest for energy
conservation improvements under this subdivision the following
amounts:
(1) for a municipality, 0.5 percent of its gross operating
revenues from the sale of gas and one percent of its gross
operating revenues from the sale of electricity not purchased
from a public utility governed by subdivision 1a or a
cooperative electric association governed by this subdivision,
excluding gross operating revenues from electric and gas service
provided in the state to large electric customer facilities; and
(2) for a cooperative electric association, 1.5 percent of
its gross operating revenues from service provided in the state,
excluding gross operating revenues from service provided in the
state to large electric customer facilities indirectly through a
distribution cooperative electric association.
(c) Each municipality and cooperative association subject
to this subdivision shall identify and implement energy
conservation improvement spending and investments that are
appropriate for the municipality or association, except that a
municipality or association may not spend or invest for energy
conservation improvements that directly benefit a large electric
customer facility. Each municipality and cooperative electric
association subject to this subdivision may spend and invest
annually up to 15 percent of the total amount required to be
spent and invested on energy conservation improvements under
this subdivision on research and development projects that meet
the definition of energy conservation improvement in subdivision
1 and that are funded directly by the municipality or
cooperative electric association. Load management may be used
to meet the requirements of this subdivision if it reduces the
demand for or increases the efficiency of electric services. A
generation and transmission cooperative electric association may
include as spending and investment required under this
subdivision conservation improvement spending and investment by
cooperative electric associations that provide electric service
at retail to consumers and that are served by the generation and
transmission association.
(d) By February 1 of each year, each municipality or
cooperative shall report to the commissioner its energy
conservation improvement spending and investments with a brief
analysis of effectiveness in reducing consumption of electricity
or gas. The commissioner shall review each report and make
recommendations, where appropriate, to the municipality or
association to increase the effectiveness of conservation
improvement activities. The commissioner shall also review each
report for whether a portion of the money spent on residential
conservation improvement programs is devoted to programs that
directly address the needs of renters and low-income persons
unless an insufficient number of appropriate programs are
available. For the purposes of this subdivision and subdivision
2, "low-income" means an income of less than 185 percent of the
federal poverty level.
(e) As part of its spending for conservation improvement, a
municipality or association may contribute to the energy and
conservation account. A municipality or association may propose
to the commissioner to designate that all or a portion of funds
contributed to the account be used for research and development
projects. Any amount contributed must be remitted to the
commissioner of public service by February 1 of each year.
Sec. 46. Minnesota Statutes 2000, section 216B.241,
subdivision 2b, is amended to read:
Subd. 2b. [RECOVERY OF EXPENSES.] The commission shall
allow a utility to recover expenses resulting from a
conservation improvement program required by the department and
contributions to the energy and conservation account, unless the
recovery would be inconsistent with a financial incentive
proposal approved by the commission. In addition, a utility may
file annually, or the public utilities commission may require
the utility to file, and the commission may approve, rate
schedules containing provisions for the automatic adjustment of
charges for utility service in direct relation to changes in the
expenses of the utility for real and personal property taxes,
fees, and permits, the amounts of which the utility cannot
control. A public utility is eligible to file for adjustment
for real and personal property taxes, fees, and permits under
this subdivision only if, in the year previous to the year in
which it files for adjustment, it has spent or invested at least
1.75 percent of its gross revenues from provision of electric
service, excluding gross operating revenues from electric
service provided in the state to large electric customer
facilities for which the commissioner of public service has
issued an exemption under subdivision 1a, paragraph (b), and 0.6
percent of its gross revenues from provision of gas service,
excluding gross operating revenues from gas services provided in
the state to large electric customer facilities for which the
commissioner of public service has issued an exemption under
subdivision 1a, paragraph (b), for that year for energy
conservation improvements under this section.
Sec. 47. Minnesota Statutes 2000, section 216C.01,
subdivision 1, is amended to read:
Subdivision 1. [APPLICABILITY.] The definitions in this
section apply to sections 216C.02, 216C.05, 216C.07 to 216C.19,
216C.20 to 216C.35, and 216C.373 to 216C.381 this chapter.
Sec. 48. Minnesota Statutes 2000, section 216C.01,
subdivision 2, is amended to read:
Subd. 2. [COMMISSIONER.] "Commissioner" means the
commissioner of the department of public service commerce.
Sec. 49. Minnesota Statutes 2000, section 216C.01,
subdivision 3, is amended to read:
Subd. 3. [DEPARTMENT.] "Department" means the department
of public service commerce.
Sec. 50. Minnesota Statutes 2000, section 216C.051,
subdivision 6, is amended to read:
Subd. 6. [ASSESSMENT; APPROPRIATION.] On request by the
cochairs of the legislative task force and after approval of the
legislative coordinating commission, the commissioner of the
department of public service commerce shall assess from electric
utilities, in addition to assessments made under section
216B.62, the amount requested for the operation of the task
force not to exceed $700,000. This authority to assess
continues until the commissioner has assessed a total of
$700,000. The amount assessed under this section is
appropriated to the director of the legislative coordinating
commission for those purposes, and is available until expended.
Sec. 51. Minnesota Statutes 2000, section 216C.37,
subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] In this section:
(a) "Commissioner" means the commissioner of public service
commerce.
(b) "Energy conservation investments" means all capital
expenditures that are associated with conservation measures
identified in an energy project study, and that have a ten-year
or less payback period.
(c) "Municipality" means any county, statutory or home rule
charter city, town, school district, or any combination of those
units operating under an agreement to jointly undertake projects
authorized in this section.
(d) "Energy project study" means a study of one or more
energy-related capital improvement projects analyzed in
sufficient detail to support a financing application. At a
minimum, it must include one year of energy consumption and cost
data, a description of existing conditions, a description of
proposed conditions, a detailed description of the costs of the
project, and calculations sufficient to document the proposed
energy savings.
Sec. 52. Minnesota Statutes 2000, section 216C.40,
subdivision 4, is amended to read:
Subd. 4. [CONDITION PRECEDENT.] The duties of the
department under this section are conditional on the
commissioner of public service finding that there will be at
least one public utility that will be subject to the assessment
created by Laws 1993, chapter 254, section 7.
Sec. 53. Minnesota Statutes 2000, section 237.02, is
amended to read:
237.02 [GENERAL AUTHORITY OF DEPARTMENT AND COMMISSION;
DEFINITIONS.]
The department of public service commerce and the public
utilities commission, now existing under the laws of this state,
are hereby vested with the same jurisdiction and supervisory
power over telephone and telecommunications companies doing
business in this state as it now has the commission's
predecessor, the railroad and warehouse commission, had over
railroad and express companies. The definitions set forth
in section sections 216A.02 shall apply and 216B.02 also apply
to this chapter.
Sec. 54. Minnesota Statutes 2000, section 237.075,
subdivision 2, is amended to read:
Subd. 2. [SUSPENSION OF PROPOSED RATE; HEARING; FINAL
DETERMINATION DEFINED.] (a) Whenever there is filed with the
commission as provided in subdivision 1 a schedule modifying or
resulting in a change in any rate then in force, the commission
may suspend the operation of the schedule by filing with the
schedule of rates and delivering to the affected telephone
company a statement in writing of its reasons for the suspension
at any time before the rates become effective. The suspension
shall not be for a longer period than ten months beyond the
initial filing date except as provided in paragraph (b). During
the suspension the commission shall determine whether all
questions of the reasonableness of the rates requested raised by
persons deemed interested or by the administrative division of
the department of public service can be resolved to the
satisfaction of the commission. If the commission finds that
all significant issues raised have not been resolved to its
satisfaction, or upon petition by ten percent of the affected
customers or 250 affected customers, whichever is less, it shall
refer the matter to the office of administrative hearings with
instructions for a public hearing as a contested case pursuant
to chapter 14, except as otherwise provided in this section.
The commission may order that the issues presented by the
proposed rate changes be bifurcated into two separate hearings
as follows: (1) determination of the telephone company's
revenue requirements and (2) determination of the rate design.
Upon issuance of both administrative law judge reports, the
issues shall again be joined for consideration and final
determination by the commission. All prehearing discovery
activities of state agency intervenors shall be consolidated and
conducted by the department of public service commerce. If the
commission does not make a final determination concerning a
schedule of rates within ten months after the initial filing
date, the schedule shall be deemed to have been approved by the
commission; except if a settlement has been submitted to and
rejected by the commission, the schedule is deemed to have been
approved 12 months after the initial filing.
(b) If the commission finds that it has insufficient time
during the suspension period to make a final determination of a
case involving changes in general rates because of the need to
make final determinations of other previously filed cases
involving changes in general rates under this section or section
216B.16, the commission may extend the suspension period to the
extent necessary to allow itself 20 working days to make the
final determination after it has made final determinations in
the previously filed cases. An extension of the suspension
period under this paragraph does not alter the setting of
interim rates under subdivision 3.
(c) For the purposes of this section, "final determination"
means the initial decision of the commission and not any order
which may be entered by the commission in response to a petition
for rehearing or other further relief. The commission may
further suspend rates until it determines all those petitions.
Sec. 55. Minnesota Statutes 2000, section 237.075,
subdivision 9, is amended to read:
Subd. 9. [ELECTION ON REGULATION; COOPERATIVE, MUNICIPAL,
INDEPENDENT.] For the purposes of this section, "telephone
company" shall not include a cooperative telephone association
organized under the provisions of chapter 308A, an independent
telephone company, or a municipal, unless the cooperative
telephone association, independent telephone company, or
municipal makes the election provided in this subdivision.
A cooperative telephone association may elect to become
subject to rate regulation by the commission pursuant to this
section. The election shall be (a) approved by the board of
directors of the association in accordance with the procedures
for amending the articles of incorporation contained in section
308A.135, excluding the filing requirements; or (b) approved by
a majority of members or stockholders voting by mail ballot
initiated by petition of no fewer than five percent of the
members or stockholders of the association. The ballot to be
used for the election shall be approved by the board of
directors and the department of public service. The department
shall mail the ballots to the association's members who shall
return the ballots to the department. The department will keep
the ballots sealed until a date agreed upon by the department
and the board of directors. On this date, representatives of
the department and the association shall count the ballots. If
a majority of the association's members who vote elect to become
subject to rate regulation by the commission, the election shall
be effective 30 days after the date the ballots are counted.
For purposes of this section, the term "member or stockholder"
shall mean either the member or stockholder of record or the
spouse of the member or stockholder unless the association has
been notified otherwise in writing.
A municipal may elect to become subject to rate regulation
by the commission pursuant to this section. The election shall
be (a) approved by resolution of the governing body of the
municipality; or (b) approved by a majority of the customers of
the municipal voting by mail ballot initiated by petition of no
fewer than 20 percent of the customers of the municipal. The
ballot to be used for the election shall be approved by the
governing body of the municipality and the department of public
service. The department shall mail the ballots to the
municipal's customers who shall return the ballots to the
department. The department will keep the ballots sealed until a
date agreed upon by the department and the governing body of the
municipality. On this date, representatives of the department
and the municipal shall count the ballots. If a majority of the
customers of the municipal who vote elect to become subject to
rate regulation by the commission, the election shall be
effective 30 days after the date the ballots are counted. For
purposes of this section, the term "customer" shall mean either
the person in whose name the telephone service is registered or
the spouse of the person unless the municipal utility has been
notified otherwise in writing.
An independent telephone company may elect to become
subject to rate regulation by the commission pursuant to this
section. The election shall be (a) approved by the board of
directors of the company in accordance with the procedures for
amending the articles of incorporation contained in sections
302A.133 to 302A.139, excluding the filing requirements; or (b)
approved by a majority of subscribers voting by mail ballot
initiated by petition of no fewer than five percent of the
subscribers of the company. The ballot to be used for the
election shall be approved by the board of directors and the
department of public service. The department shall mail the
ballots to the company's subscribers who shall return the
ballots to the department. The department will keep the ballots
sealed until a date agreed upon by the department and the board
of directors. On this date, representatives of the department
and the company shall count the ballots. If a majority of the
company's subscribers who vote elect to become subject to rate
regulation by the commission, the election shall be effective 30
days after the date the ballots are counted. For purposes of
this section the term "subscriber" shall mean either the person
in whose name the telephone service is registered or the spouse
of the person unless the independent telephone company has been
notified otherwise in writing.
Sec. 56. Minnesota Statutes 2000, section 237.082, is
amended to read:
237.082 [TELECOMMUNICATION SERVICE; POLICY OF INCREASED
SPEED AND SERVICE.]
When setting rates, adopting rules, or issuing orders
related to telecommunication matters that affect deployment of
the infrastructure, the commission may apply the goals of:
(1) achieving economically efficient investment in:
(i) higher speed telecommunication services; and
(ii) greater capacity for voice, video, and data
transmission; and
(2) just and reasonable rates.
The department of public service may apply the same goals
in its regulation of and recommendations regarding
telecommunication services.
Sec. 57. Minnesota Statutes 2000, section 237.21, is
amended to read:
237.21 [VALUATION OF TELEPHONE PROPERTY.]
In determining the value of any telephone property for rate
making purposes, no valuation shall be allowed upon the value of
any franchise granted by the state or any municipality where no
payment was or is being made to the state or municipality on
account thereof. The requirement as to reasonableness of rates
shall apply to each exchange unit as well as to telephone plants
as a whole. Provided, that in the case of a company operating a
telephone system consisting of more than one exchange in the
state, reasonableness of rates, as measured by earnings, shall
be determined by a reasonable return from the total operations
of the system within the state rather than by the return from
individual exchanges or services. No telephone rates or charges
shall be allowed or approved by the commission under any
circumstances, which are inadequate and which are intended to or
naturally tend to destroy competition or produce a monopoly in
telephone service in the locality affected.
Laws 1953, chapter 25, shall have no effect on proceedings
pending before the courts or the department of public service at
the time of its enactment.
Sec. 58. Minnesota Statutes 2000, section 237.30, is
amended to read:
237.30 [TELEPHONE INVESTIGATION FUND; APPROPRIATION.]
The sum of $25,000 is hereby appropriated out of any moneys
in the state treasury not otherwise appropriated, to establish
and provide a revolving fund to be known as the Minnesota
Telephone Investigation Fund for the use of the department of
public service commerce and of the attorney general in
investigations, valuations, and revaluations under section
237.295. All sums paid by the telephone companies to reimburse
the department of public service for its expenses pursuant to
section 237.295 shall be credited to the revolving fund and
shall be deposited in a separate bank account and not commingled
with any other state funds or moneys, but any balance in excess
of $25,000 in the revolving fund at the end of each fiscal year
shall be paid into the state treasury and credited to the
general fund. The sum of $25,000 herein appropriated and all
subsequent credits to said revolving fund shall be paid upon the
warrant of the commissioner of finance upon application of the
department or of the attorney general to an aggregate amount of
not more than one-half of such sums to each of them, which
proportion shall be constantly maintained in all credits and
withdrawals from the revolving fund.
Sec. 59. Minnesota Statutes 2000, section 237.462,
subdivision 6, is amended to read:
Subd. 6. [EXPEDITED PROCEEDING.] (a) The commission may
order an expedited proceeding under section 237.61 and this
subdivision, in lieu of a contested case under chapter 14, to
develop an evidentiary record in any proceeding that involves
contested issues of material fact either upon request of a party
or upon the commission's own motion if the complaint alleges a
violation described in subdivision 1, clauses (1) to (4). The
commission may order an expedited proceeding under this
subdivision if the commission finds an expedited proceeding is
in the public interest, regardless of whether all parties agree
to the expedited proceeding. In determining whether to grant an
expedited proceeding, the commission may consider any evidence
of impairment of the provision of telecommunications service to
subscribers in the state or impairment of the provision of any
service or network element subject to the jurisdiction of the
commission.
(b) Any request for an expedited proceeding under this
subdivision must be noted in the title of the first filing by a
party. The filing shall also state the specific circumstances
that the party believes warrant an expedited proceeding under
this subdivision.
(c) A complaint requesting an expedited proceeding, unless
filed by the department of public service or the attorney
general, must set forth the actions and the dates of the actions
taken by the party filing the complaint to attempt to resolve
the alleged violations with the party against whom the complaint
is filed, including any requests that the party against whom the
complaint is filed correct the conduct giving rise to the
violations alleged in the complaint. If no such actions were
taken by the complainant, the complaint shall set forth the
reasons why no such actions were taken. The commission may
order an expedited proceeding even if the filing complaint fails
to meet this requirement if the commission determines that it
would be in the public interest to go forward with the expedited
proceeding without information in the complaint on attempts to
resolve the dispute.
(d) The complaining party shall serve the complaint along
with any written discovery requests by hand delivery and
facsimile on the party against whom the complaint is filed, the
department of public service, and the office of the attorney
general on the same day the complaint is filed with the
commission.
(e) The party responding to a complaint that includes a
request for an expedited proceeding under this subdivision shall
file an answer within 15 days after receiving the complaint.
The responding party shall state in the answer the party's
position on the request for an expedited proceeding. The
responding party shall serve with the answer any objections to
any written discovery requests as well as any written discovery
requests the responding party wishes to serve on the complaining
party. Except for stating any objections, the responding party
is not required to answer any written discovery requests under
this subdivision until a time established at a prehearing
conference. The responding party shall serve a copy of the
answer and any discovery requests and objections on the
complaining party, the department of public service, and office
of the attorney general by hand delivery and facsimile on the
same day as the answer is filed with the commission.
(f) Within 15 days of receiving the answer to a complaint
in a proceeding in which a party has requested an expedited
hearing, the commission shall determine whether the filing
warrants an expedited proceeding. If the commission decides to
grant a request by a party or if the commission orders an
expedited proceeding on its own motion, the commission shall
conduct within seven days of the decision a prehearing
conference to schedule the evidentiary hearing. During the
prehearing conference, the commission shall establish a
discovery schedule that requires all discovery to be completed
no later than three days before the start of the hearing. An
evidentiary hearing under this subdivision must commence no
later than 45 days after the commission's decision to order an
expedited proceeding. A quorum of the commission shall preside
at any evidentiary hearing under this subdivision unless all the
parties to the proceeding agree otherwise.
(g) All pleadings submitted under this subdivision must be
verified and all oral statements of fact made in a hearing or
deposition under this subdivision must be made under oath or
affirmation.
(h) The commission shall issue a written decision and final
order on the complaint within 15 days after the close of the
evidentiary hearing under this subdivision. On the day of
issuance, the commission shall notify the parties by facsimile
that a final order has been issued and shall provide each party
with a copy of the final order.
(i) The commission may extend any time periods under this
subdivision if all parties to the proceeding agree to the
extension or if the commission finds the extension is necessary
to ensure a just resolution of the complaint.
(j) Except as otherwise provided in this subdivision, an
expedited proceeding under this subdivision shall be governed by
the following procedural rules:
(1) the parties shall have the discovery rights provided in
Minnesota Rules, parts 1400.6700 to 1400.7000;
(2) the parties shall have the right to cross-examine
witnesses as provided in section 14.60, subdivision 3;
(3) the admissibility of evidence and development of record
for decision shall be governed by section 14.60 and Minnesota
Rules, part 1400.7300; and
(4) the commission may apply other procedures or standards
included in the rules of the office of administrative hearings,
as necessary to ensure the fair and expeditious resolution of
disputes under this section.
Sec. 60. Minnesota Statutes 2000, section 237.51,
subdivision 1, is amended to read:
Subdivision 1. [CREATION.] The department of public
service commissioner of commerce shall administer through
interagency agreement with the department commissioner of human
services a program to distribute communication devices to
eligible communication-impaired persons and contract with a
local consumer group that serves communication-impaired persons
to create and maintain a telecommunication relay service. For
purposes of sections 237.51 to 237.56, the department of public
service commerce and any organization with which it contracts
pursuant to this section or section 237.54, subdivision 2, are
not telephone companies or telecommunications carriers as
defined in section 237.01.
Sec. 61. Minnesota Statutes 2000, section 237.51,
subdivision 5, is amended to read:
Subd. 5. [DEPARTMENT OF PUBLIC SERVICE COMMISSIONER OF
COMMERCE DUTIES.] In addition to any duties specified elsewhere
in sections 237.51 to 237.56, the department of public service
commissioner of commerce shall:
(1) prepare the reports required by section 237.55;
(2) administer the fund created in section 237.52; and
(3) adopt rules under chapter 14 to implement the
provisions of sections 237.50 to 237.56.
Sec. 62. Minnesota Statutes 2000, section 237.51,
subdivision 5a, is amended to read:
Subd. 5a. [DEPARTMENT OF HUMAN SERVICES DUTIES.] (a) In
addition to any duties specified elsewhere in sections 237.51 to
237.56, the department commissioner of human services shall:
(1) define economic hardship, special needs, and household
criteria so as to determine the priority of eligible applicants
for initial distribution of devices and to determine
circumstances necessitating provision of more than one
communication device per household;
(2) establish a method to verify eligibility requirements;
(3) establish specifications for communication devices to
be purchased under section 237.53, subdivision 3; and
(4) inform the public and specifically the community of
communication-impaired persons of the program.
(b) The department commissioner may establish an advisory
board to advise the department in carrying out the duties
specified in this section and to advise the department of public
service commissioner of commerce in carrying out its duties
under section 237.54. If so established, the advisory board
must include, at a minimum, the following communication-impaired
persons:
(1) at least one member who is deaf;
(2) at least one member who is speech impaired;
(3) at least one member who is mobility impaired; and
(4) at least one member who is hard-of-hearing.
The membership terms, compensation, and removal of members
and the filling of membership vacancies are governed by section
15.059. Advisory board meetings shall be held at the discretion
of the commissioner.
Sec. 63. Minnesota Statutes 2000, section 237.52,
subdivision 2, is amended to read:
Subd. 2. [ASSESSMENT.] The department of public
service commissioner of commerce shall annually recommend to the
commission an adequate and appropriate surcharge and budget to
implement sections 237.50 to 237.56. The public utilities
commission shall review the budget for reasonableness and may
modify the budget to the extent it is unreasonable. The
commission shall annually determine the funding mechanism to be
used within 60 days of receipt of the recommendation of the
department and shall order the imposition of surcharges
effective on the earliest practicable date. The commission
shall establish a monthly charge no greater than 20 cents for
each customer access line, including trunk equivalents as
designated by the commission pursuant to section 403.11,
subdivision 1.
Sec. 64. Minnesota Statutes 2000, section 237.52,
subdivision 4, is amended to read:
Subd. 4. [APPROPRIATION.] Money in the fund is
appropriated to the department of public service commissioner of
commerce to implement sections 237.51 to 237.56.
Sec. 65. Minnesota Statutes 2000, section 237.52,
subdivision 5, is amended to read:
Subd. 5. [EXPENDITURES.] Money in the fund may only be
used for:
(1) expenses of the department of public service commerce,
including personnel cost, public relations, advisory board
members' expenses, preparation of reports, and other reasonable
expenses not to exceed ten percent of total program
expenditures;
(2) reimbursing the commissioner of human services for
purchases made or services provided pursuant to section 237.53;
(3) reimbursing telephone companies for purchases made or
services provided under section 237.53, subdivision 5; and
(4) contracting for establishment and operation of the
telecommunication relay service required by section 237.54.
All costs directly associated with the establishment of the
program, the purchase and distribution of communication devices,
and the establishment and operation of the telecommunication
relay service are either reimbursable or directly payable from
the fund after authorization by the department of public service
commissioner of commerce. The department of public
service commissioner of commerce shall contract with the message
relay service operator to indemnify the local exchange carriers
of the relay service for any fines imposed by the Federal
Communications Commission related to the failure of the relay
service to comply with federal service standards.
Notwithstanding section 16A.41, the department of public service
commissioner may advance money to the contractor of the
telecommunication relay service if the contractor establishes to
the department's commissioner's satisfaction that the advance
payment is necessary for the operation of the service. The
advance payment may be used only for working capital reserve for
the operation of the service. The advance payment must be
offset or repaid by the end of the contract fiscal year together
with interest accrued from the date of payment.
Sec. 66. Minnesota Statutes 2000, section 237.54,
subdivision 2, is amended to read:
Subd. 2. [OPERATION.] The department of public
service commissioner of commerce shall contract with a local
consumer organization that serves communication-impaired persons
for operation and maintenance of the telecommunication relay
system. The department commissioner may contract with other
than a local consumer organization if no local consumer
organization is available to enter into or perform a reasonable
contract or the only available consumer organization fails to
comply with terms of a contract. The operator of the system
shall keep all messages confidential, shall train personnel in
the unique needs of communication-impaired people, and shall
inform communication-impaired persons and the public of the
availability and use of the system. The operator shall not
relay a message unless it originates or terminates through a
communication device for the deaf or a Brailling device for use
with a telephone.
Sec. 67. Minnesota Statutes 2000, section 237.55, is
amended to read:
237.55 [ANNUAL REPORT ON COMMUNICATION ACCESS.]
The department of public service commissioner of commerce
must prepare a report for presentation to the commission by
January 31 of each year. Each report must review the
accessibility of the telephone system to communication-impaired
persons, review the ability of non-communication-impaired
persons to communicate with communication-impaired persons via
the telephone system, describe services provided, account for
money received and disbursed annually for each aspect of the
program to date, and include predicted future operation.
Sec. 68. Minnesota Statutes 2000, section 237.59,
subdivision 2, is amended to read:
Subd. 2. [PETITION.] (a) A telephone company, or the
commission on its own motion, may petition to have a service of
that telephone company classified as subject to effective
competition or emerging competition. The petition must be
served on the commission, the department of public service, the
office of the attorney general, and any other person designated
by the commission. The petition must contain at least:
(1) a list of the known alternative providers of the
service available to the company's customers; and
(2) a description of affiliate relationships with any other
provider of the service in the company's market.
(b) At the time the company first offers a service, it
shall also file a petition with the commission for a
determination as to how the service should be classified. In
the event that no interested party or the commission objects to
the company's proposed classification within 20 days of the
filing of the petition, the company's proposed classification of
the service is deemed approved. If an objection is filed, the
commission shall determine the appropriate classification after
a hearing conducted pursuant to section 237.61. In either
event, the company may offer the new service to its customers
ten days after the company files the price list and incremental
cost study as provided in section 237.60, subdivision 2,
paragraph (f).
(c) A new service may be classified as subject to effective
competition or emerging competition pursuant to the criteria set
forth in subdivision 5. A new service must be regulated under
the emerging competition provisions if it is not integrally
related to the provision of adequate local service or access to
the telephone network or to the privacy, health, or safety of
the company's customers, whether or not it meets the criteria
set forth in subdivision 5.
Sec. 69. Minnesota Statutes 2000, section 237.768, is
amended to read:
237.768 [PERIODIC FINANCIAL REPORT.]
In addition to the reports required under section 237.766,
an alternative regulation plan may require a telephone company
to file with the department an annual report of financial
matters for the previous calendar year on or before May 1 of
each year on report forms furnished by the department of public
service in the same manner as is required of other telephone
companies on August 1, 1995. In addition, any company subject
to a plan shall file with the commission and department a copy
of any filings it has made to the Federal Communications
Commission regarding the provisions of video programming
provided through a video dial tone facility in Minnesota. An
alternative regulation plan may require a telephone company to
maintain its accounts in accordance with the system of accounts
prescribed for the company by the commission under section
237.10.
Sec. 70. Minnesota Statutes 2000, section 239.01, is
amended to read:
239.01 [WEIGHTS AND MEASURES DIVISION; JURISDICTION.]
The weights and measures division, referred to in this
chapter as the division, is created under the jurisdiction of
the department of public service commerce. The division has
supervision and control over all weights, weighing devices, and
measures in the state.
Sec. 71. Minnesota Statutes 2000, section 239.10, is
amended to read:
239.10 [ANNUAL INSPECTION.]
Subdivision 1. [LIGHT CAPACITY SCALES; RETAIL
ESTABLISHMENTS.] The director shall inspect light capacity
scales in retail establishments such as grocery stores, other
retail food establishments, or hardware stores, not more often
than once every 36 months except when the owner requests an
inspection, when the scale is inspected as part of an
investigation, or when the scale has been repaired.
Subd. 2. [PACKAGED FOOD COMMODITIES.] The director shall
inspect packaged food commodities in grocery stores and other
retail food establishments not more often than once every 36
months except when the owner requests an inspection or when
packages are inspected as part of an investigation.
Subd. 3. [OTHER WEIGHTS AND MEASURES.] The director shall
inspect all weights and measures, except those specified in
subdivisions 1 and 2, annually, or as often as deemed possible
within budget and staff limitations.
Sec. 72. Minnesota Statutes 2000, section 325E.11, is
amended to read:
325E.11 [COLLECTION FACILITIES; NOTICE.]
(a) Any person selling at retail or offering motor oil or
motor oil filters for retail sale in this state shall:
(1) post a notice indicating the nearest location where
used motor oil and used motor oil filters may be returned at no
cost for recycling or reuse, post a toll-free telephone number
that may be called by the public to determine a convenient
location, or post a listing of locations where used motor oil
and used motor oil filters may be returned at no cost for
recycling or reuse; or
(2) if the person is subject to section 325E.112,
subdivision 1, paragraph (b), post a notice informing customers
purchasing motor oil or motor oil filters of the location of the
used motor oil and used motor oil filter collection site
established by the retailer in accordance with section 325E.112,
subdivision 1, paragraph (b), where used motor oil and used
motor oil filters may be returned at no cost.
(b) A notice under paragraph (a) shall be posted on or
adjacent to the motor oil and motor oil filter displays, be at
least 8-1/2 inches by 11 inches in size, contain the universal
recycling symbol with the following language:
(1) "It is illegal to put used oil and used motor oil
filters in the garbage.";
(2) "Recycle your used oil and used motor oil filters.";
and
(3)(i) "There is a free collection site here for your used
oil and used motor oil filters.";
(ii) "There is a free collection site for used oil and used
motor oil filters located at (name of business and street
address).";
(iii) "For the location of a free collection site for used
oil and used motor oil filters call (toll-free phone number).";
or
(iv) "Here is a list of free collection sites for used oil
and used motor oil filters."
(c) The division of weights and measures under in the
department of public service commerce shall enforce compliance
with this section as provided in section 239.54. The pollution
control agency shall enforce compliance with this section under
sections 115.071 and 116.072 in coordination with the division
of weights and measures.
Sec. 73. Minnesota Statutes 2000, section 325E.115,
subdivision 2, is amended to read:
Subd. 2. [COMPLIANCE; MANAGEMENT.] The division of weights
and measures under in the department of public service commerce
shall enforce compliance of subdivision 1 as provided in section
239.54. The commissioner of the pollution control agency shall
inform persons governed by subdivision 1 of requirements for
managing lead acid batteries.
Sec. 74. Minnesota Statutes 2000, section 326.243, is
amended to read:
326.243 [SAFETY STANDARDS.]
All electrical wiring, apparatus and equipment for electric
light, heat and power, alarm and communication systems shall
comply with the rules of the department of public service, the
commissioner of commerce, or the department of labor and
industry, as applicable, and be installed in conformity with
accepted standards of construction for safety to life and
property. For the purposes of this chapter, the rules and
safety standards stated at the time the work is done in the then
most recently published edition of the National Electrical Code
as adopted by the National Fire Protection Association, Inc. and
approved by the American National Standards Institute, and the
National Electrical Safety Code as published by the Institute of
Electrical and Electronics Engineers, Inc. and approved by the
American National Standards Institute, shall be prima facie
evidence of accepted standards of construction for safety to
life and property; provided further, that in the event a
Minnesota Building Code is formulated pursuant to section
16B.61, containing approved methods of electrical construction
for safety to life and property, compliance with said methods of
electrical construction of said Minnesota Building Code shall
also constitute compliance with this section, and provided
further, that nothing herein contained shall prohibit any
political subdivision from making and enforcing more stringent
requirements than set forth herein and such requirements shall
be complied with by all licensed electricians working within the
jurisdiction of such political subdivisions.
Sec. 75. Minnesota Statutes 2000, section 484.50, is
amended to read:
484.50 [SUMMONS; PLACE OF TRIAL; ST. LOUIS COUNTY.]
A party wishing to have an appeal from an order of the
department of public service public utilities commission, an
election contest, a lien foreclosure, or a civil cause or
proceeding of a kind commenced or appealed by a party in the
court, tried in the city of Virginia shall, in the summons,
notice of appeal in a matter, or other jurisdictional instrument
issued, in addition to the usual provisions, print, stamp, or
write thereon the words, "to be tried at the city of Virginia,"
and a party wishing a matter commenced or appealed by a party in
the court tried at the city of Hibbing shall, in the summons,
notice of appeal in a matter, or other jurisdictional instrument
issued, in addition to the usual provisions, print, stamp, or
write thereon the words, "to be tried at the city of Hibbing,"
and in a case where a summons, notice of appeal in a matter, or
other jurisdictional instrument contains a specification, the
case shall be tried at the city of Virginia, or the city of
Hibbing, as the case may be, unless the defendant shall have the
place of trial fixed in the manner specified in this section.
If the place of trial designated is not the proper place of
trial, as specified in sections 484.44 to 484.52, the cause
shall nevertheless be tried in a place, unless the defendant, in
an answer in addition to the other allegations of defense, shall
plead the location of the defendant's residence, and demand that
the action be tried at the place of holding the court nearest
the defendant's residence, as provided in this section; and in a
case where the answer of the defendant pleads the place of
residence and makes a demand of place of trial, the plaintiff,
in reply, may admit or deny the allegations of residence, and if
the allegations of residence are not expressly denied, the case
shall be tried at the place demanded by the defendant, and if
the allegations of residence are denied, the place of trial
shall be determined by the court on motion.
If there are several defendants, residing at different
places in a county, the trial shall be at the place in which the
majority of the defendants unite in demanding, or if the numbers
are equal, at the place nearest the residence of the majority of
the defendants.
The venue of an action may be changed from one of these
places to another, by order of the court, in the following cases:
(1) Upon written consent of the parties;
(2) When it appears, on motion, that a party has been made
a defendant for the purpose of preventing a change of venue as
provided in this section;
(3) When an impartial trial cannot be held in the place
where the action is pending; or
(4) When the convenience of witnesses and the ends of
justice would be promoted by the change.
Application for a change under clause (2), (3), or (4),
shall be made by motion which shall be returnable and heard at
the place of commencement of the action.
Sec. 76. [REPEALER.]
Minnesota Statutes 2000, sections 216A.06; and 237.69,
subdivision 3, are repealed.
Sec. 77. [INSTRUCTION TO REVISOR.]
The revisor of statutes shall change the words "public
service" to the word "commerce" in the following sections of
Minnesota Statutes: 13.68; 13.681; 17A.04, subdivisions 6, 7,
and 8; 17A.10, subdivision 1; 41A.09, subdivision 7; 116C.03,
subdivision 2; 160.262, subdivision 3; 216A.085, subdivision 1;
216B.241, subdivision 1; 237.295, subdivision 1; 237.662,
subdivision 3; 237.70, subdivision 7; 239.05, subdivisions 6c,
7a, 8, and 8c; 272.0211, subdivision 1; 296A.02, subdivision 1;
308A.210, subdivisions 5 and 6; 325F.733, subdivision 7; and
469.164, subdivision 2.
Sec. 78. [EFFECTIVE DATE.]
This article is effective July 1, 2001.
Presented to the governor June 28, 2001
Signed by the governor June 30, 2001, 8:52 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes