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                            CHAPTER 200-H.F.No. 2158 
                  An act relating to the organization and operation of 
                  state government; appropriating money for economic 
                  development and certain agencies of state government; 
                  establishing and modifying certain programs; providing 
                  for regulation of certain activities and practices; 
                  standardizing certain licensing service fees; 
                  establishing and modifying certain fees; modifying 
                  housing programs; establishing a task force; providing 
                  for a manufactured home park to be a conditional use; 
                  requiring reports; modifying definitions; amending 
                  Minnesota Statutes 1996, sections 44A.01, subdivision 
                  2; 60A.23, subdivision 8; 60A.71, by adding a 
                  subdivision; 60K.06, subdivision 2; 65B.48, 
                  subdivision 3; 72B.04, subdivision 10; 79.253, 
                  subdivision 1; 79.255, by adding a subdivision; 82.21, 
                  subdivision 1; 82B.09, subdivision 1; 115B.03, 
                  subdivision 5; 115C.021, by adding a subdivision; 
                  115C.03, subdivision 9; 115C.08, subdivision 4; 
                  115C.09, subdivision 3, and by adding a subdivision; 
                  115C.13; 116J.01, subdivision 5; 116J.552, subdivision 
                  4; 116J.615, subdivision 1; 116L.04, subdivision 1, 
                  and by adding a subdivision; 116O.05, by adding a 
                  subdivision; 116O.122, subdivision 1; 155A.045, 
                  subdivision 1; 176.181, subdivision 2a; 268.38, 
                  subdivision 7; 268.672, subdivision 6, and by adding 
                  subdivisions; 268.673, subdivisions 3, 4a, and 5; 
                  268.6751, subdivision 1; 268.677, subdivision 1; 
                  268.681; 268.917; 268A.15, subdivisions 2, 6, and by 
                  adding subdivisions; 298.22, by adding a subdivision; 
                  326.86, subdivision 1; 394.25, by adding a 
                  subdivision; 446A.04, subdivision 5; 446A.081, 
                  subdivisions 1, 4, and 9; 446A.12, subdivision 1; 
                  462.357, by adding a subdivision; 462A.05, 
                  subdivisions 14d, 30, 39, and by adding a subdivision; 
                  462A.13; 462A.201, subdivision 2; 462A.205; 462A.206, 
                  subdivisions 2 and 4; 462A.207, subdivisions 1, 2, 3, 
                  4, and 6; 462A.21, subdivision 12a; and 469.305, 
                  subdivision 1; Laws 1997, chapter 85, article 1, 
                  section 39, subdivision 4; proposing coding for new 
                  law in Minnesota Statutes, chapters 45; 79; 116J; 
                  116L; 268; 366; 462A; and 469; repealing Minnesota 
                  Statutes 1996, sections 116J.581; 116J.990, 
                  subdivision 7; 268.39; 268.672, subdivision 4; 
                  268.673, subdivision 6; 268.676; 268.677, subdivisions 
                  2 and 3; 268.678; 268.679, subdivision 3; 462A.05, 
                  subdivision 20; 462A.206, subdivision 5; and 462A.21, 
                  subdivisions 4k, 12, and 14. 
        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 "1998" and "1999," where used in this act, mean that the 
        appropriation or appropriations listed under them are available 
        for the year ending June 30, 1998, or June 30, 1999, 
        respectively.  The term "first year" means the fiscal year 
        ending June 30, 1998, and "second year" means the fiscal year 
        ending June 30, 1999. 
                                SUMMARY BY FUND
                                  1998          1999           TOTAL
        General              $195,977,000   $163,741,000   $359,718,000
        Petroleum Tank
        Cleanup                   957,000        969,000      1,926,000
        Trunk Highway             706,000        723,000      1,429,000 
        Workers' 
        Compensation           23,095,000     23,130,000     46,225,000
        Special Revenue         1,120,000      1,125,000      2,245,000
        Taconite Environmental
        Protection              1,410,000        -0-          1,410,000
        TOTAL                $223,265,000   $189,688,000   $412,953,000
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  1998         1999 
        Sec. 2.  TRADE AND ECONOMIC DEVELOPMENT 
        Subdivision 1.  Total       
        Appropriation                          51,419,000    35,983,000
                      Summary by Fund
        General              50,713,000    35,260,000
        Trunk Highway           706,000       723,000 
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Business and Community 
        Development
            35,963,000     20,977,000
        $7,017,000 the first year and 
        $6,017,000 the second year is for 
        Minnesota investment fund grants.  Of 
        this appropriation, $3,000,000 the 
        first year and $2,000,000 the second 
        year are one-time appropriations and 
        may not be added to the budget base for 
        the biennium ending June 30, 2001.  Of 
        this one-time appropriation $1,000,000 
        the first year is for a single grant 
        recipient, to be identified by the 
        commissioner, notwithstanding the 
        monetary limitation under Minnesota 
        Statutes, section 116J.8731, 
        subdivision 5.  This amount may not be 
        added to the agency's budget base.  
        This amount is available until June 30, 
        1999. 
        $450,000 the first year and $450,000 
        the second year is for grants to 
        Advantage Minnesota, Inc.  The funds 
        are available only if matched on at 
        least a dollar-for-dollar basis from 
        other sources.  The commissioner may 
        release the funds only upon: 
        (1) certification that matching funds 
        from each participating organization 
        are available; and 
        (2) review and approval by the 
        commissioner of the proposed operations 
        plan of Advantage Minnesota, Inc. for 
        the biennium. 
        $7,418,000 the first year and 
        $7,918,000 the second year is for the 
        job skills partnership program.  If the 
        appropriation for either year is 
        insufficient, the appropriation for the 
        other year is available.  This 
        appropriation does not cancel.  Of this 
        amount, $1,500,000 the first year and 
        $2,000,000 the second year is for the 
        Pathways program under Minnesota 
        Statutes, section 116L.04, subdivision 
        1a. 
        $250,000 the first year is for a grant 
        from the department of trade and 
        economic development to the Software 
        Technology Center to broaden 
        industry-related educational and 
        technological services.  This 
        appropriation is available upon 
        documentation of a dollar-for-dollar 
        match from other sources since the 
        inception of the Software Technology 
        Center.  This is a one-time 
        appropriation and must not be included 
        in the budget base for the biennium 
        ending June 30, 2001. 
        $100,000 the first year is for a 
        one-time grant to the Duluth Technology 
        Center.  This appropriation is 
        available until June 30, 1999. 
        $25,000 the first year is for a 
        one-time grant to the city of New 
        London for improvements to the Little 
        Theatre.  This appropriation is 
        available when the city matches the 
        appropriation with $25,000 from 
        nonstate sources. 
        $750,000 the first year is for one or 
        more grants to the Minnesota Futures 
        Fund administered by the Minneapolis 
        Foundation.  The Minneapolis Foundation 
        shall use these grants to provide 
        technical assistance grants to 
        nonprofit organizations to assist them 
        in redesigning services and 
        organizational structures in response 
        to changes in federal and state welfare 
        policy.  The commissioner shall make 
        the grants in amounts necessary to 
        match nonpublic contributions to the 
        fund on a dollar-for-dollar basis.  
        This appropriation is available until 
        June 30, 1999.  This is a one-time 
        appropriation and may not be included 
        in the budget base for the biennium 
        ending June 30, 2001. 
        $35,000 the first year is for a 
        one-time appropriation to the Fairfax 
        economic development authority for roof 
        replacement.  This appropriation is 
        available until June 30, 1999. 
        $2,000,000 the first year is for a 
        one-time grant to the city of Brooklyn 
        Center to redevelop the Brookdale 
        regional center and provide 
        opportunities for economic development 
        at or near the center.  The grant must 
        be used to assist the city in 
        constructing a series of storm water 
        retention ponds that will facilitate 
        the redevelopment and economic 
        development of the center and nearby 
        property.  The grant must be on terms 
        and conditions determined by the 
        commissioner.  The grant must be 
        matched by city resources that equal at 
        least 25 percent of the grant. 
        $650,000 the first year is for the 
        taconite mining grant program under 
        Minnesota Statutes, section 116J.992.  
        This appropriation is available until 
        June 30, 1999.  This is a one-time 
        appropriation and may not be included 
        in the budget base for the biennium 
        ending June 30, 2001. 
        $95,000 the first year and $95,000 the 
        second year is for grants to county and 
        district agricultural societies and 
        associations that are eligible to 
        receive aid under Minnesota Statutes, 
        section 38.02.  The commissioner shall 
        spend this appropriation as grants of 
        $1,000 for each fair conducted by such 
        a county and district agricultural 
        society and association in each year. 
        $3,000,000 the first year is for a 
        grant to develop a direct reduction 
        iron-processing facility in Minnesota.  
        This appropriation is available until 
        June 30, 1999.  This is a one-time 
        appropriation and may not be included 
        in the budget base for the biennium 
        ending June 30, 2001. 
        $500,000 the first year is for 
        technical assistance under Minnesota 
        Statutes, section 116J.8745.  This 
        appropriation is available until June 
        30, 1999. 
        $4,444,000 the first year is for state 
        matching money for federal grants to 
        capitalize the drinking water revolving 
        loan fund under Minnesota Statutes, 
        section 446A.081.  The expenditure is 
        limited to the minimum amount necessary 
        to match the allotment of federal money 
        to Minnesota.  This is a one-time 
        appropriation and must not be included 
        in the budget base for the biennium 
        ending June 30, 2001. 
        $25,000 the first year is for a 
        one-time grant to the city of St. Paul 
        to improve, beautify, and enhance 
        marked trunk highway No. 5 from 
        Minneapolis-St.Paul international 
        airport to interstate highway No. 
        35-E.  Enhancements may include, among 
        other things, landscaping, historical 
        lighting, and signing. 
        $100,000 the first year is for a 
        one-time grant to the city of Grey 
        Eagle for construction of a wastewater 
        treatment plant. 
        $526,000 the first year and $537,000 
        the second year is from fees collected 
        under Minnesota Statutes, section 
        446A.04, subdivision 5, to administer 
        the programs of the public facilities 
        authority. 
        $125,000 the first year is for a 
        one-time demonstration project grant to 
        the city of Newport for the city to 
        conduct a study of the economic impact 
        on the city resulting from regional 
        infrastructure improvement projects.  
        The city may retain consultants and 
        enter into contracts it considers 
        desirable to conduct the study.  The 
        elements of the study must include an 
        alternate economic use study, a fiscal 
        impact study, an infrastructure impact 
        study, and a traffic impact study.  The 
        grant is available only to the extent 
        that the city provides in-kind 
        resources or money that provides a 
        one-to-one match of the grant. 
        $100,000 the first year is for a grant 
        to the Minnesota Organization for 
        Global Professional Assignments, an 
        independent, nonprofit corporation, for 
        a program that creates opportunities 
        for the international professional 
        development of Minnesota college 
        graduates and Minnesota college seniors 
        interested in pursuing careers with 
        multinational businesses.  This is a 
        one-time appropriation.  The 
        appropriation is available for the 
        fiscal year ending June 30, 1998. 
        $100,000 the first year and $100,000 
        the second year is for one-time grants 
        to the city of New Brighton, as project 
        coordinator and fiscal agent of the 
        seven-city coalition, for the 
        multicommunity business retention and 
        market expansion project and related 
        planning efforts linking geographical 
        information systems, contaminated land 
        remediation, land use planning, 
        transportation corridor study, 
        integration of existing housing stock, 
        subregional transit and reverse commute 
        coordination, employment densities, job 
        training and welfare reform placement 
        coordination, and commercial and 
        industrial development.  The coalition 
        shall share all results and written 
        reports with the department of trade 
        and economic development. 
        $2,000,000 the first year is for 
        transfer to the rural policy and 
        development center fund.  This 
        appropriation does not cancel.  This is 
        a one-time appropriation and may not be 
        included in the agency's budget base 
        for the biennium ending June 30, 2001. 
        $250,000 the first year and $250,000 
        the second year is for grants to the 
        board of the rural policy and 
        development center for operation of the 
        center. 
        $130,000 the first year and $155,000 
        the second year is for grants to the 
        metropolitan economic development 
        association. 
        $240,000 the first year and $265,000 
        the second year is for grants to 
        WomenVenture. 
        WomenVenture and the metropolitan 
        economic development association must, 
        in the first year, develop contacts and 
        relationships with the regional 
        initiatives selected under Minnesota 
        Statutes, section 116J.415, subdivision 
        3, and a plan to deliver their services 
        statewide.  In the second year, they 
        must generally offer their services 
        statewide. 
        $500,000 the first year and $500,000 
        the second year is for grants to the 
        St. Paul rehabilitation center for its 
        current programs, including those 
        related to developing job-seeking 
        skills and workplace orientation, 
        intensive job development, functional 
        work English, and on-site job coaching. 
        $250,000 in the first year is for a 
        one-time grant to the Morrison county 
        rural development finance authority 
        established under Laws 1982, chapter 
        437.  The authority must use the grant 
        only for capital improvements to a 
        paper and wood products manufacturer in 
        the county primarily for the purposes 
        of facility upgrading and expansion of 
        the manufacturer's capability to 
        utilize recycled wastepaper as a fiber 
        source.  Minnesota Statutes, section 
        116J.991, applies to the grant. 
        $200,000 the first year is for an 
        agreement with the Judy Garland 
        Children's Museum to assist in the 
        design and construction of a children's 
        museum.  This amount must be matched by 
        at least $1,275,000 from nonstate 
        sources committed by June 30, 1998.  
        This is a one-time appropriation and 
        may not be added to the agency's budget 
        base in future biennia.  
        Notwithstanding Minnesota Statutes, 
        section 116J.8731, or any other law to 
        the contrary, the commissioner shall, 
        in the commissioner's considerations on 
        Minnesota investment fund grants in 
        fiscal year 1998, strongly consider an 
        application for a $250,000 grant to the 
        Morrison county rural development 
        authority established under Laws 1982, 
        chapter 437, for capital improvements 
        to a paper and wood products 
        manufacturer in Morrison county 
        primarily for the purposes of facility 
        upgrading and expansion of the 
        manufacturer's capability to utilize 
        recycled wastepaper as a fiber source, 
        thereby achieving the purpose of job 
        enhancement, stability, and 
        preservation.  As part of this 
        consideration, the commissioner shall 
        confer with the manufacturer, inspect 
        the manufacturer's facilities, and 
        conduct an analysis of the 
        manufacturer's business plan and its 
        previous and proposed efforts to 
        achieve these purposes.  The 
        commissioner shall strongly consider 
        approving the grant application unless 
        the commissioner determines that the 
        grant will not significantly contribute 
        to achieving these purposes.  The 
        commissioner must make a determination 
        on this application by December 1, 1997.
        $45,000 the first year is for a 
        one-time grant to the Upper Minnesota 
        Valley River regional development 
        commission for development of design 
        specifications and architectural plans 
        for a regional visitors center, to be 
        built on the upper segment of the 
        Minnesota river corridor within the 
        designated scenic byway area and in 
        conjunction with the development of the 
        Minnesota river corridor trail.  This 
        appropriation is available until June 
        30, 1999. 
        $100,000 the first year and $100,000 
        the second year is for grants to create 
        and operate community development 
        corporations under Minnesota Statutes, 
        section 116J.982, that target 
        Asian-Pacific Minnesotans.  One must be 
        in Hennepin county and one must be in 
        Ramsey county. 
        $80,000 the first year and $80,000 the 
        second year is for one-time grants to 
        the greater metropolitan area foreign 
        trade zone commission for the purpose 
        of promoting foreign trade zones in 
        Minnesota. 
        Subd. 3.  Minnesota Trade Office 
             2,452,000      2,336,000
        $250,000 the first year and $100,000 
        the second year is for a multifaceted 
        program to develop trade with China.  
        This is a one-time appropriation and 
        must not be included in the budget base 
        for the biennium ending June 30, 2001. 
        The department shall act as the lead 
        agency in developing a plan for a 
        coordinated effort to promote Minnesota 
        internationally.  The commissioner may 
        appoint an advisory committee and may 
        seek federal and private funding to 
        develop and implement the plan. 
        Subd. 4.  Tourism 
             8,625,000      8,205,000
                      Summary by Fund
        General               7,919,000     7,482,000
        Trunk Highway           706,000       723,000
        To develop maximum private sector 
        involvement in tourism, $2,500,000 the 
        first year and $2,500,00 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.  This 
        appropriation may not be spent until 
        the money is matched. 
        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. 
        $329,000 the first year and $329,000 
        the second year is for the Minnesota 
        film board.  This appropriation 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. 
        $500,000 the first year and $500,000 
        the second year is for grants to the 
        Minnesota film board for a film 
        production jobs fund to stimulate 
        feature film production in Minnesota.  
        This appropriation is to reimburse film 
        producers for two to five percent of 
        documented wages which they paid to 
        Minnesotans for film production after 
        January 1, 1997. 
        $500,000 the first year is for a 
        one-time grant to the Leroy Neiman 
        museum of art.  This appropriation is 
        available on documentation of a 
        dollar-for-dollar match from other 
        sources.  This amount may not be added 
        to the agency's budget base. 
        $10,000 the first year is for a 
        one-time grant to the city of St. Louis 
        Park for public art.  This 
        appropriation is available on 
        documentation of a dollar-for-dollar 
        match from other sources and is 
        available until June 30, 1999.  $25,000 
        in the first year is for a one-time 
        grant to the city of Bloomington for 
        planning, development, and site 
        selection of a community tourism center 
        and theater. 
        The office of tourism shall expand its 
        efforts in the 1998-1999 biennium to 
        market and promote tourism within 
        Minnesota that emphasizes multicultural 
        areas and neighborhoods and those areas 
        and neighborhoods with a high 
        concentration of recent immigrants. 
        Subd. 5.  Administration 
             2,971,000      3,028,000
        Subd. 6.  Information and Analysis
             1,408,000      1,437,000
        Sec. 3.  MINNESOTA TECHNOLOGY, INC.    9,537,000     10,037,000
        $7,605,000 the first year and 
        $8,105,000 the second year is for 
        transfer from the general fund to the 
        Minnesota Technology, Inc. fund. 
        $75,000 the first year and $75,000 the 
        second year is for grants to Minnesota 
        Inventors Congress. 
        $694,000 the first year and $694,000 
        the second year is for grants to 
        Minnesota Project Innovation.  
        Minnesota Project Innovation must open 
        and maintain an office in Northeastern 
        Minnesota. 
        $1,500,000 the first year and 
        $2,000,000 the second year is for a 
        technology partnership fund to make 
        investments of $20,000 to $100,000 in 
        businesses partnering with faculty 
        members at Minnesota academic 
        institutions.  Any unencumbered balance 
        remaining in the first year does not 
        cancel but is available for the second 
        year of the biennium. 
        $950,000 the first year and $950,000 
        the second year is for grants to the 
        Natural Resources Research Institute.  
        $113,000 the first year and $113,000 
        the second year is for grants to 
        Minnesota Council for Quality. 
        $100,000 the first year and $100,000 
        the second year is for grants to 
        Minnesota Cold Weather Research Center. 
        Sec. 4.  WORLD TRADE CENTER CORP.         78,000 
        $78,000 the first year is to retire the 
        debt of the Minnesota World Trade 
        Center.  This is a one-time 
        appropriation and may not be included 
        in the budget base for the biennium 
        ending June 30, 2001.  In addition, the 
        Minnesota trade office may transfer 
        $50,000 each year to the World Trade 
        Center for services to agencies, 
        nonprofit and public organizations. 
        Sec. 5.  ECONOMIC SECURITY  
        Subdivision 1.  Total 
        Appropriation                         42,067,000     34,110,000
                      Summary by Fund
        General              41,292,000    33,335,000
        Special Revenue         775,000       775,000
        Subd. 2.  Rehabilitation Services
            19,810,000     19,815,000
        $1,750,000 the first year and 
        $1,750,000 the second year is for 
        centers for independent living. 
        $500,000 the first year is to provide 
        services to people with severe 
        impairment to employment, as defined in 
        Minnesota Statutes, section 268A.15, 
        subdivision 1a.  Of this appropriation, 
        five percent is for administrative 
        costs.  This is a one-time 
        appropriation and may not be added to 
        the budget base in the biennium ending 
        June 30, 2001. 
        $323,000 the first year and $823,000 
        the second year are for employment 
        support services authorized under 
        Minnesota Statutes, section 268A.13.  
        $200,000 the first year and $200,000 
        the second year is for a grant to the 
        Minnesota employment center for deaf 
        and hard-of-hearing people. 
        Subd. 3.  State Services for the Blind 
             3,735,000      3,816,000
        This appropriation may be supplemented 
        by funds provided by the Friends of the 
        Communication Center, for support of 
        Services for the Blind's Communication 
        Center, which serves all blind and 
        visually handicapped Minnesotans.  The 
        commissioner shall report to the 
        legislature on a biennial basis the 
        funds provided by the Friends of the 
        Communication Center. 
        The commissioner may not require 
        employees to participate in intensive 
        blindness sensitivity training in which 
        the employees are blindfolded or 
        otherwise simulate blindness, unless 
        the employee is a manager or counselor; 
        except that the commissioner may 
        require the training for up to 14 
        employees who are not managers or 
        counselors but have direct contact with 
        blind clients seeking services, and up 
        to four employees at the store located 
        at the state services for the blind. 
        A person may not serve more than a 
        total of six years as a member of the 
        rehabilitation advisory council for the 
        blind or its predecessor, the council 
        for the blind.  Service prior to the 
        effective date of this section is 
        included in the six-year limit, except 
        that a person currently serving on the 
        rehabilitation advisory council for the 
        blind may serve out the person's 
        current term and serve one additional 
        term. 
        Subd. 4.  Workforce Preparation 
            16,922,000      9,079,000
                      Summary by Fund
        General              16,147,000     8,304,000
        Special Revenue         775,000       775,000
        $775,000 the first year and $775,000 
        the second year is for job training 
        programs under Minnesota Statutes, 
        sections 268.60 to 268.64.  
        Notwithstanding Minnesota Statutes, 
        section 268.022, this appropriation is 
        from the workforce investment fund.  Of 
        this amount, $250,000 each year is for 
        grants to the Ramsey county 
        opportunities industrialization 
        center.  The grants are to be used to 
        (1) offer prevocational training 
        programs and specific vocational 
        training programs involving intensive 
        English as a second language in 
        instruction, and (2) train for and 
        locate entry level jobs including, 
        without limitation, clerical, building 
        maintenance, manufacturing, home 
        maintenance and repair, and certified 
        nursing assistance.  
        $1,815,000 the first year and 
        $1,817,000 the second year is for 
        displaced homemaker programs under 
        Minnesota Statutes, section 268.96.  
        $1,050,000 the first year and 
        $1,050,000 the second year is for youth 
        intervention programs under Minnesota 
        Statutes, section 268.30.  Funding from 
        this appropriation may be used to 
        expand existing programs to serve unmet 
        needs and to create new programs in 
        underserved areas.  This appropriation 
        is available until spent. 
        $1,500,000 the first year and 
        $1,500,000 the second year is to 
        supplement the activities of the Job 
        Training Partnership Act Title II-A 
        program as described in United States 
        Code, title 29, sections 1501 to 1792.  
        The commissioner may use up to five 
        percent of this amount of state 
        operations.  The balance of the amount 
        is for services to temporary assistance 
        for needy families (TANF) recipients.  
        This is a one-time appropriation and 
        may not be included in the budget base 
        for the biennium ending June 30, 2001. 
        $75,000 the first year is for the PLATO 
        education partnership pilot program.  
        If the commissioner favorably evaluates 
        the demonstration implementation of 
        PLATO in Fairmont and Owatonna, the 
        commissioner shall select two other 
        communities in which PLATO will be 
        implemented.  Of this amount, not more 
        than $10 is for the demonstration 
        implementations.  This appropriation is 
        available until June 30, 1999.  This is 
        a one-time appropriation and may not be 
        included in the agency's budget base 
        for the biennium ending June 30, 2001. 
        $250,000 the first year and $250,000 
        the second year is for the learn to 
        earn summer youth employment program 
        established under Laws 1995, chapter 
        224, sections 5 and 39.  This 
        appropriation is available until spent. 
        $10,000 the first year and $10,000 the 
        second year are for one-time grants to 
        independent school district No. 2752, 
        Fairmont, for community initiatives.  
        Of the money appropriated for the 
        summer youth program for the first 
        year, $750,000 is immediately 
        available.  Any remaining balance of 
        the immediately available money is 
        available for the year in which it is 
        appropriated.  In addition to the base 
        appropriation, $6,000,000 the first 
        year is for the summer youth program. 
        If the appropriation in either year is 
        insufficient, the appropriation for the 
        other year is available. 
        $700,000 the first year and $700,000 
        the second year is for the Youthbuild 
        program under Minnesota Statutes, 
        sections 268.361 to 268.366.  A 
        Minnesota YOUTHBUILD program funded 
        under this section as authorized in 
        Minnesota Statutes, sections 268.361 to 
        268.367, qualifies as an approved 
        training program under Minnesota Rules, 
        part 5200.0930, subpart 1. 
        $250,000 the first year is for a 
        one-time grant to the displaced 
        homemaker program in the department of 
        economic security and $125,000 the 
        first year and $125,000 the second year 
        are for one-time grants to the St. Paul 
        district 5 planning council.  These 
        grants are to operate a community work 
        empowerment support group demonstration 
        project.  A project consists of 
        empowerment groups of individuals that 
        are in the process of obtaining or have 
        obtained jobs, including those in the 
        welfare-to-work programs, or are 
        working out problems of attaining 
        self-sufficiency.  The groups must 
        separately meet at least monthly for at 
        least two hours.  Each group meeting 
        must include empower mentors whose 
        responsibility will be to conduct the 
        meeting.  Group members must be paid at 
        least $20 for each meeting attended.  
        The sites will report to the 
        commissioner on a semiannual basis 
        regarding the progress achieved at the 
        meetings.  The purpose of the group is 
        to: 
        (1) share information among group 
        members as to the successes and 
        problems encountered in the 
        individual's employment goals; 
        (2) provide a forum for individuals 
        involved in moving to self-sufficiency 
        to share their experiences and 
        strategies and to support and empower 
        each other; and 
        (3) to provide feedback to the 
        commissioner concerning the best 
        strategies to achieve the empowerment 
        support group's objectives. 
        Notwithstanding Minnesota Statutes, 
        section 268.022, subdivision 2, the 
        commissioner of finance shall transfer 
        to the general fund from the dedicated 
        fund $3,500,000 in the first year and 
        $3,500,000 in the second year of the 
        money collected through the special 
        assessment established in Minnesota 
        Statutes, section 268.022, subdivision 
        1. 
        $30,000 the first year is for a grant 
        to the city of Champlin for creating 
        and expanding curfew enforcement.  The 
        program must have clearly established 
        neighborhood, community, and family 
        measures of success and must report to 
        the commissioner of economic security 
        on the achievement of these outcomes on 
        or before June 30, 1998. 
        $250,000 the first year is for a 
        one-time grant to Ramsey county to 
        expand the sister-to-sister mentoring, 
        support, and training network program 
        countywide.  This appropriation is in 
        addition to money appropriated under 
        Minnesota Statutes, sections 256J.62 
        and 256J.76. 
        $500,000 is for a grant to the center 
        for victims of torture to design and 
        develop training to educate health care 
        and human service workers on levels of 
        sensitive care and how to make 
        referrals and to establish a network of 
        care providers to do pro bono care for 
        torture survivors so as to enable a 
        rapid integration into communities and 
        labor markets by torture victims.  This 
        is a one-time appropriation requiring a 
        one-to-one nonstate, in-kind match, and 
        is available until expended. 
        Subd. 5.  Workforce Exchange 
             1,600,000      1,400,000
        $1,600,000 the first year and 
        $1,400,000 the second year is 
        appropriated to leverage federal 
        dollars in support of the 
        implementation of the Minnesota 
        Workforce Center System.  The 
        department shall report to the 
        Minnesota office of technology its 
        plans to coordinate workforce center 
        development with the Minnesota career 
        education planning system and other 
        electronic job banks.  This is a 
        one-time appropriation and may not be 
        included in the budget base for the 
        biennium ending June 30, 2001. 
        Sec. 6.  HOUSING FINANCE AGENCY       33,380,000     24,976,000
        The amounts that may be spent from this 
        appropriation for certain programs are 
        specified below. 
        This appropriation is for transfer to 
        the housing development fund for the 
        programs specified.  Except as 
        otherwise indicated, this transfer is 
        part of the agency's permanent budget 
        base. 
        Spending limit on cost of general 
        administration of agency programs:  
              1998           1999
            11,017,000     11,678,000
        $1,550,000 the first year and 
        $1,550,000 the second year is 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. 
        A biennial appropriation of $5,750,000 
        is made in the first year and is for 
        the family homeless prevention and 
        assistance program under Minnesota 
        Statutes, section 462A.204, and is 
        available until June 30, 1999. 
        Grants to organizations made under the 
        family homeless prevention and 
        assistance program may include grants 
        (1) to organizations providing case 
        management for persons that need 
        assistance to rehabilitate their rent 
        history and find rental housing, and 
        (2) to organizations that will provide, 
        and report on the success or failure 
        of, innovative approaches to housing 
        persons with poor rental histories, 
        including, but not limited to, 
        assisting tenants in correcting tenant 
        screening reports, developing a single 
        application fee and process acceptable 
        to participating landlords, developing 
        a certification of tenants program 
        acceptable to participating landlords, 
        expungement of unlawful detainer 
        records, and creating a bonding program 
        to encourage landlords to accept 
        high-risk tenants with poor rent 
        histories. 
        $583,000 the first year and $583,000 
        the second year is for the foreclosure 
        prevention and assistance program under 
        Minnesota Statutes, section 462A.207. 
        $2,750,000 the first year and 
        $2,750,000 the second year is for the 
        rent assistance for family 
        stabilization program under Minnesota 
        Statutes, section 462A.205.  Of this 
        amount, $750,000 each year is a 
        one-time appropriation and is not added 
        to the agency's permanent base. 
        $2,348,000 the first year and 
        $2,348,000 the second year is for the 
        housing trust fund to be deposited in 
        the housing trust fund account created 
        under Minnesota Statutes, section 
        462A.201, and used for the purposes 
        provided in that section.  Of this 
        amount, $550,000 each year must be used 
        for transitional housing. 
        $8,118,000 the first year and 
        $6,493,000 the second year is for the 
        affordable rental investment fund 
        program under Minnesota Statutes, 
        section 462A.21, subdivision 8b.  Of 
        this amount, $1,625,000 the first year 
        is a one-time appropriation and is not 
        added to the agency's permanent base.  
        Of the one-time appropriation, $125,000 
        the first year is for housing for 
        people with HIV or AIDS outside of the 
        Minneapolis-St. Paul metropolitan 
        statistical area.  
        To the extent practicable, this 
        appropriation shall be used so that an 
        approximately equal number of housing 
        units are financed in the metropolitan 
        area, as defined in Minnesota Statutes, 
        section 473.121, subdivision 2, and in 
        the nonmetropolitan area. 
        (a) In the area of the state outside 
        the metropolitan area, the agency must 
        work with groups in the funding regions 
        created under Minnesota Statutes, 
        section 116J.415, to assist the agency 
        in identifying the affordable housing 
        needed in each region in connection 
        with economic development and 
        redevelopment efforts and in 
        establishing priorities for uses of the 
        affordable rental investment fund.  The 
        groups must include the regional 
        development commissioners, the regional 
        organization selected under Minnesota 
        Statutes, section 116J.415, the private 
        industry councils, units of local 
        government, community action agencies, 
        the Minnesota housing partnership 
        network groups, local lenders, 
        for-profit and nonprofit developers, 
        and realtors.  In addition to 
        priorities developed by the group, the 
        agency must give a preference to 
        economically viable projects in which 
        units of local government, area 
        employers, and the private sector 
        contribute financial assistance.  
        (b) In the metropolitan area, the 
        commissioner shall collaborate with the 
        metropolitan council to identify the 
        priorities for use of the affordable 
        rental investment fund.  Funds 
        distributed in the metropolitan area 
        must be used consistent with the 
        objectives of the metropolitan 
        development guide, adopted under 
        Minnesota Statutes, section 473.145.  
        In addition to the priorities 
        identified in conjunction with the 
        metropolitan council, the agency shall 
        give preference to economically viable 
        projects that: 
        (1) include a contribution of financial 
        resources from units of local 
        government and area employers; 
        (2) take into account the availability 
        of transportation in the community; and 
        (3) take into account the job training 
        efforts in the community. 
        $187,000 the first year and $187,000 
        the second year is for the urban Indian 
        housing program under Minnesota 
        Statutes, section 462A.07, subdivision 
        15.  
        $1,683,000 the first year and 
        $1,683,000 the second year is for the 
        tribal Indian housing program under 
        Minnesota Statutes, section 462A.07, 
        subdivision 14.  
        $186,000 the first year and $186,000 
        the second year is for the Minnesota 
        rural and urban homesteading program 
        under Minnesota Statutes, section 
        462A.057.  
        $340,000 the first year and $240,000 
        the second year is for nonprofit 
        capacity building grants under 
        Minnesota Statutes, section 462A.21, 
        subdivision 3b.  Of this amount, 
        $80,000 is for a grant to the Minnesota 
        housing partnership.  Of this amount, 
        $150,000 is for equal grants to an 
        organization in each of the six regions 
        established under Minnesota Statutes, 
        section 116J.415, for capacity building 
        grants.  Of this amount, $50,000 is for 
        a grant in the metropolitan area, as 
        defined in Minnesota Statutes, section 
        473.121, subdivision 2.  Of this 
        amount, $100,000 the first year is to 
        develop projects under the neighborhood 
        land trust program under Minnesota 
        Statutes, sections 462A.30 and 462A.31, 
        and is available until June 30, 1999.  
        The appropriation in the first year for 
        the neighborhood land trust program is 
        a one-time appropriation and is not 
        added to the agency's permanent base.  
        $4,368,000 the first year and 
        $3,569,000 the second year is for the 
        community rehabilitation program under 
        Minnesota Statutes, section 462A.206.  
        Of this amount, $250,000 the first year 
        and $250,000 the second year is for 
        full-cycle home ownership and 
        purchase-rehabilitation lending 
        initiatives.  Of this amount, 
        $1,218,000 the first year and $419,000 
        the second year are one-time 
        appropriations and are not added to the 
        agency's permanent base. 
        Of the one-time appropriation for the 
        community rehabilitation program, 
        $375,000 the first year and $375,000 
        the second year is for grants to 
        acquire, demolish, and remove 
        substandard multiple-unit residential 
        rental property or acquire, 
        rehabilitate, and reconfigure 
        multiple-unit residential rental 
        property.  No more than one-half of 
        money available in a year shall be 
        given to a single project.  Priority 
        must be given to projects that result 
        in the creation of housing 
        opportunities that will diversify the 
        housing stock and promote the creation 
        of life-cycle housing opportunities 
        within the community.  For the purposes 
        of this paragraph, "substandard 
        multiple-unit residential rental 
        property" is property that meets the 
        definition of Minnesota Statutes 1996, 
        section 273.1316, subdivision 2.  
        Displaced residents must be provided 
        relocation assistance, as provided in 
        Minnesota Statutes, sections 117.50 to 
        117.56.  To the extent allowed by 
        federal law, a public agency 
        administering a federal rent subsidy 
        program shall give priority to persons 
        displaced by grants under this section. 
        Of the one-time appropriation for the 
        community rehabilitation program, 
        $250,000 the first year is for a grant 
        to provide funds to an organization or 
        consortium of organizations 
        participating in a project that is 
        awarded a grant from the metropolitan 
        livable communities demonstration 
        program to develop affordable and 
        life-cycle housing in St. Paul or 
        Minneapolis.  The project must be based 
        upon a comprehensive community planning 
        process that creates a long-term plan 
        to revitalize a neighborhood and must 
        include compact development with 
        linkages to employment, transit, and 
        affordable lifecycle housing. 
        Of the one-time appropriation for the 
        community rehabilitation program, up to 
        $550,000 the first year is for a grant 
        to the city of Landfall to purchase a 
        portion of real property in the city 
        owned by the Washington county housing 
        and redevelopment authority.  The 
        agency shall not make the grant until 
        the city of Landfall has secured the 
        balance of the funds necessary to 
        purchase the real property from the 
        Washington county housing and 
        redevelopment authority.  The agency 
        shall require that the land purchased 
        be restricted to use by current 
        residents or for affordable housing for 
        the term of the bonds issued by the 
        city to purchase the land.  "Affordable"
        is as defined by the metropolitan 
        council for the purposes of the 
        metropolitan livable communities 
        program.  
        A recipient of funds from the community 
        rehabilitation program for a project in 
        a historic preservation district in St. 
        Paul, must provide assurances to the 
        agency that the project will conform to 
        the written historic preservation 
        guidelines for the district and that 
        the funding recipient will not seek any 
        variance to the guidelines.  
        $4,287,000 the first year and 
        $4,287,000 the second year is for the 
        housing rehabilitation and 
        accessibility program under Minnesota 
        Statutes, section 462A.05, subdivisions 
        14a and 15a.  
        $1,075,000 the first year and 
        $1,075,000 the second year is for the 
        home ownership assistance fund under 
        Minnesota Statutes, section 462A.21, 
        subdivision 8.  Of this amount, 
        $175,000 each year is a one-time 
        appropriation and is not added to the 
        agency's permanent base. 
        $25,000 the first year and $25,000 the 
        second year is for home equity 
        conversion counseling grants under 
        Minnesota Statutes, section 462A.28.  
        The money must be used for a counseling 
        service which only counsels for home 
        equity conversions. 
        $50,000 is for the costs of the 
        advisory task force on lead hazard 
        reduction, established in article 4, 
        section 1.  This is a one-time 
        appropriation and is not added to the 
        agency's permanent base. 
        $80,000 is for the affordable 
        neighborhood design and development 
        initiative, in Laws 1995, chapter 224, 
        section 122.  This is a one-time 
        appropriation and is not added to the 
        agency's permanent base. 
        Sec. 7.  COMMERCE 
        Subdivision 1.  Total 
        Appropriation                         16,004,000     16,367,000
                      Summary by Fund
        General              14,240,000    14,572,000
        Petro Cleanup           957,000       969,000 
        Workers' Compensation   462,000       476,000
        Special Revenue         345,000       350,000 
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Financial Examinations 
             3,802,000      3,883,000
        Subd. 3.  Registration and Insurance 
             4,479,000      4,590,000
                      Summary by Fund
        General               4,017,000     4,114,000
        Workers' Compensation   462,000       476,000 
        Subd. 4.  Enforcement and Licensing 
             3,945,000      4,031,000
                      Summary by Fund
        General               3,600,000     3,681,000
        Special Revenue         345,000       350,000
        $345,000 the first year and $350,000 
        the second year is from the real estate 
        education, research, and recovery 
        account in the special revenue fund for 
        the purpose of Minnesota Statutes, 
        section 82.34, subdivision 6.  If the 
        appropriation from the special revenue 
        fund for either year is insufficient, 
        the appropriation for the other year is 
        available for it. 
        Subd. 5.  Petroleum Tank Release 
        Cleanup Board 
               957,000        969,000
        This appropriation is from the 
        petroleum tank release cleanup fund. 
        Subd. 6.  Administrative Services 
             2,821,000      2,894,000 
        Sec. 8.  BOARD OF ACCOUNTANCY            572,000        587,000
        Sec. 9.  BOARD OF ARCHITECTURE,
        ENGINEERING, LAND SURVEYING, 
        LANDSCAPE ARCHITECTURE, AND 
        INTERIOR DESIGN                          684,000        700,000 
        Sec. 10.  BOARD OF BARBER   
        EXAMINERS                                136,000        140,000
        Sec. 11.  BOARD OF BOXING                 79,000         82,000
        Sec. 12.  LABOR AND INDUSTRY 
        Subdivision 1.  Total             
        Appropriation                         25,110,000     25,168,000
                      Summary by Fund
        General               3,941,000     4,012,000
        Workers'     
        Compensation         21,169,000    21,156,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Workers' Compensation
            12,152,000     12,160,000
        This appropriation is from the workers' 
        compensation fund. 
        $125,000 the first year and $125,000 
        the second year is for grants to the 
        Vinland Center for rehabilitation 
        service. 
        Notwithstanding Minnesota Statutes, 
        section 79.253, the following 
        appropriations are made from the 
        assigned risk safety account in the 
        special compensation fund to the 
        commissioner of labor and industry: 
        (a) $77,000 the first year and $73,000 
        in the second year are for the purpose 
        of hiring one occupational safety and 
        health inspector.  The inspector shall 
        perform safety consultations for 
        employers through labor-management 
        committees as defined in Minnesota 
        Statutes, section 179.81, subdivision 
        2, under an interagency agreement 
        entered into between the commissioners 
        of labor and industry and mediation 
        services. 
        (b) $95,000 the first year and $75,000 
        the second year are for the purpose of 
        providing information to employers 
        regarding the prevention of violence in 
        the workplace. 
        (c) $25,000 the first year and $25,000 
        the second year are for the purpose of 
        safety training and other safety 
        programs for youth apprentices. 
        Subd. 3.  Workplace Services 
             6,393,000      6,713,000
                      Summary by Fund
        General               2,875,000     2,931,000
        Workers'
        Compensation          3,518,000     3,782,000
        $204,000 the first year and $204,000 
        the second year is for labor education 
        and advancement program grants. 
        Subd. 4.  General Support 
             6,565,000      6,295,000
                      Summary by Fund
        General               1,066,000     1,081,000
        Workers'     
        Compensation          5,499,000     5,214,000
        Subd. 5.  Daedalus Project
        $2,500,000 appropriated in Laws 1995, 
        chapter 224, section 12, subdivision 2, 
        from the workers' compensation fund for 
        the Daedalus imaging project does not 
        cancel on June 30, 1997, but is 
        available until June 30, 1999. 
        Sec. 13.  BUREAU OF MEDIATION SERVICES 
        Subdivision 1.  Total
        Appropriation                          2,061,000      2,074,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Mediation Services 
             1,646,000      1,659,000
        Subd. 3.  Labor Management Cooperation Grants
               302,000        302,000
        $302,000 each year is for grants to 
        area labor-management committees.  Any 
        unencumbered balance remaining at the 
        end of the first year does not cancel 
        but is available for the second year. 
        Subd. 4.  Office of Dispute Resolution
               113,000        113,000
        Sec. 14.  WORKERS' COMPENSATION
        COURT OF APPEALS                       1,464,000      1,498,000
        This appropriation is from the workers' 
        compensation fund. 
        Sec. 15.  LABOR INTERPRETIVE 
        CENTER                                   207,000        214,000
        Sec. 16.  PUBLIC UTILITIES  
        COMMISSION                             3,326,000      3,400,000
        The commission shall assess the amount 
        appropriated in section 25 in addition 
        to its assessments to public utilities 
        in fiscal year 1998 under Minnesota 
        Statutes, section 216B.62, subdivision 
        3.  This assessment is not subject to 
        the limits prescribed under that 
        subdivision. 
        Sec. 17.  DEPARTMENT OF PUBLIC SERVICE 
        Subdivision 1.  Total       
        Appropriation                          9,008,000      9,116,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Telecommunications
               785,000        803,000
        Subd. 3.  Weights and Measures 
             3,076,000      3,070,000
        Subd. 4.  Information and Operations 
        Management 
             1,501,000      1,532,000
        Subd. 5.  Energy 
             3,646,000      3,711,000
        $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. 
        Sec. 18.  MINNESOTA HISTORICAL 
        SOCIETY 
        Subdivision 1.  Total       
        Appropriation                         23,315,000     23,476,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Education and     
        Outreach                              11,763,000     12,078,000
        $175,000 the first year and $175,000 
        the second year in addition to the base 
        is for the grant-in-aid programs for 
        county and local historical societies.  
        The Minnesota historical society shall 
        set program guidelines and criteria, 
        and shall require a dollar-for-dollar 
        match for these grants.  
        $150,000 the first year and $150,000 
        the second year is for activities 
        associated with the sesquicentennial 
        and millennium celebrations.  This is a 
        one-time appropriation and may not be 
        included in the budget base for the 
        biennium ending June 30, 2001. 
        Subd. 3.  Preservation and Access
             8,661,000      8,828,000
        $300,000 the first year and $300,000 
        the second year is for historic site 
        repair and maintenance.  
        Subd. 4.  Information Program 
        Delivery 
             1,995,000      2,097,000
        $1,900,000 the first year and 
        $2,000,000 the second year is for 
        technology improvements that will 
        expand core capacity and improve 
        service and program delivery.  If the 
        appropriation for either year is 
        insufficient, the appropriation for the 
        other year is available.  
        Subd. 5.  Fiscal Agent                   896,000        473,000
        (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 
        (d) Institute for Learning and
        Teaching - Project 120
               110,000        110,000 
        (e) Minnesota Military Museum
                29,000        
        (f) Farmamerica
               150,000        150,000 
        Notwithstanding any other law, this 
        appropriation may be used for 
        operations. 
        (g) Bemidji Historical Museum
                50,000
        This appropriation is for a one-time 
        grant to the city of Bemidji to pay up 
        to one-half of the total costs, 
        including acquisition, design, other 
        preliminary work, and construction 
        costs, for purchase of an abandoned 
        historic railroad depot in the city and 
        its conversion to a historical museum 
        and facility for the Beltrami county 
        historical society. 
        (h) Winona County Historical Society
                75,000
        For a one-time grant for upgrade of 
        technology.  The Winona county 
        historical society shall submit to the 
        Minnesota historical society a plan for 
        the use of this grant.  As part of this 
        project, the Minnesota historical 
        society, in collaboration with the 
        Winona county historical society and 
        other county and local historical 
        societies, shall develop a plan for the 
        future use of technology by county and 
        local historical societies. 
        (i) Humphrey Museum
                50,000
        For a one-time grant for planning, and 
        to the extent possible, design and 
        construction drawings for the Hubert H. 
        Humphrey museum to be located in 
        Waverly. 
        (j) Grimm Farmhouse
                75,000
        For a one-time grant to Hennepin parks 
        for the design and stabilization of the 
        Wendelin Grimm farmhouse.  This 
        appropriation is available until June 
        30, 1999.  This appropriation must be 
        matched by an equal amount from 
        nonstate sources. 
        (k) Perpich Memorial
               100,000
        For a one-time grant to the friends of 
        the iron range interpretative center 
        for planning, design, and construction 
        of a Rudy Perpich Memorial.  This 
        appropriation is available until June 
        30, 1999. 
        (l) Citizenship Programs
                75,000         75,000
        For a grant to the Minnesota center for 
        community legal education for 
        citizenship programs in Minnesota 
        schools.  Of this amount, (1) $30,000 
        is for Project Citizen, a program to 
        educate middle school students to 
        identify, study, and influence 
        decisions on public policy issues, (2) 
        $25,000 is for We the People, a program 
        to promote civic awareness and 
        responsibility among elementary and 
        secondary students, and (3) $20,000 is 
        for the Minnesota youth summit on 
        violence prevention, a program to build 
        citizenship skills among middle and 
        high school students by engaging them 
        in the lawmaking process. 
        (m) Fishing Museum
                25,000 
        For work, in conjunction with the 
        commissioners of natural resources and 
        trade and economic development, on a 
        feasibility study for a museum housing 
        fishing-related artifacts, equipment, 
        and memorabilia.  The director of the 
        Minnesota Historical Society must 
        present study recommendations to the 
        chairs of the appropriate legislative 
        finance committees and divisions by 
        January 15, 1998.  This is a one-time 
        appropriation and may not be included 
        in the budget base for the biennium 
        ending June 30, 2001. 
        (n) Balances Forward
        Any unencumbered balance remaining in 
        this subdivision the first year does 
        not cancel but is available for the 
        second year of the biennium. 
        Sec. 19.  MINNESOTA MUNICIPAL
        BOARD                                    307,000        315,000
        Sec. 20.  COUNCIL ON BLACK
        MINNESOTANS                              356,000        286,000
        $7,500 each year is for expenses 
        associated with the Dr. Martin Luther 
        King Day activities. 
        $75,000 the first year is for planning 
        of an African Resource Center, a 
        clearinghouse for information and 
        referral services for recent immigrants 
        from Africa.  This is a one-time 
        appropriation and may not be included 
        in the agency's budget base for the 
        biennium ending June 30, 2001.  This 
        appropriation is available until June 
        30, 1999.  To the extent that this 
        appropriation exceeds the amount needed 
        for planning the center, the balance 
        may be used for operation of the center.
        Sec. 21.  COUNCIL ON 
        CHICANO-LATINO AFFAIRS                   300,000        305,000
        Sec. 22.  COUNCIL ON
        ASIAN-PACIFIC MINNESOTANS                272,000        269,000
        Sec. 23.  INDIAN AFFAIRS
        COUNCIL                                  523,000        535,000
        Sec. 24.  IRON RANGE RESOURCES
        AND REHABILITATION BOARD               1,410,000               
        This appropriation is from the taconite 
        environmental protection fund.  This 
        appropriation is available until June 
        30, 1999.  The board shall spend this 
        appropriation for the following 
        one-time grants: 
        (a) City of Big Fork
                  75,000
        For new well construction and 
        infrastructure for a housing park. 
        (b) Greenway Joint Recreation Board
                  35,000
        For electrical system upgrade, Zamboni 
        room addition, roof replacement, and 
        other repairs and improvements to the 
        board's ice arena. 
        (c) Town of Lone Pine
                  10,000
        For construction of a baseball field. 
        (d) City of Nashwauk
                  40,000
        For construction of water and sewer 
        lines on Roberts Street. 
        (e) City of Marble
                  40,000
        For construction of a water line on 
        Chernevet Avenue. 
        (f) City of Eveleth
                 100,000
        For improvements to the community 
        hospital's dialysis unit. 
        (g) City of Aurora
                 100,000
        For capital improvements to the White 
        community hospital. 
        (h) City of Virginia
                 380,000
        For relocation of the Virginia 
        rehabilitation center. 
        (i) City of Buhl
                 180,000
        For handicapped access improvements to 
        Martin Hugh high school. 
        (j) City of Ely
                 200,000
        For construction of infrastructure in 
        the city's industrial park. 
        (k) Chisholm-Hibbing Airport Authority
                 250,000
        For construction of infrastructure in 
        the airport industrial park.* (The 
        preceding section was vetoed by the 
        governor.) 
        Sec. 25.  LEGISLATURE                     50,000               
        This appropriation is from the general 
        fund is to be added to any other 
        appropriation made in the 1997 
        legislative session to the 
        legislature.  This appropriation is for 
        the office of the legislative auditor 
        for a study and program evaluation of 
        the public utilities commission.  The 
        study shall include, among other 
        things, (1) state functions relating to 
        public utility regulation assigned to 
        the commission, department of public 
        service, and office of the attorney 
        general, and methods of increasing 
        efficiency and avoiding unnecessary 
        duplication of effort in carrying out 
        these functions, and (2) the future 
        role of the commission in public 
        utility regulation and public service 
        during a time of increasing 
        deregulation of utilities.  The 
        legislative auditor shall present an 
        interim report to the legislature on 
        the study by January 15, 1998, and 
        present a final report to the 
        legislature on the study by February 1, 
        1999.  This appropriation is available 
        until June 30, 1999. 
        Sec. 26.  CHILDREN, FAMILIES,
        AND LEARNING 
        Subdivision 1.  Total 
        Appropriation                          1,050,000        -0-
        Subd. 2.  Meadowbrook Collaborative 
        Of this amount, $50,000 the first year 
        is for a one-time grant to the city of 
        St. Louis Park for the Meadowbrook 
        Collaborative Housing Project to 
        enhance youth outreach services and to 
        provide educational and recreational 
        programming for youth at risk through 
        the development of formal after school 
        programming and weekend youth 
        activities.  The collaborative shall 
        include a cross-section of public and 
        private sector community 
        representatives to develop services to 
        address specific community and social 
        needs of children and youth. 
        These funds shall also be made 
        available to assist in staffing and 
        program development for the Meadowbrook 
        Youth Center.  The center shall focus 
        on reducing truancy, developing assets 
        for at-risk youth, developing programs 
        for structured time thus minimizing 
        opportunities for adverse activities, 
        and mentoring with adults. 
        $25,000 of the amount available is 
        available on the day following final 
        enactment of this section on a nonmatch 
        basis to the collaborative to develop 
        at-risk youth programs.  The remainder 
        is only available on a matching grant 
        basis. 
        Subd. 3.  Energy Assistance 
        Of this amount, $500,000 is for 
        low-income energy assistance.  This is 
        a one-time appropriation and may not be 
        added to the budget base for the 
        biennium ending June 30, 2001.  
        Of this amount, $500,000 is for the 
        low-income home weatherization 
        program.  This is a one-time 
        appropriation and may not be added to 
        the budget base in the biennium ending 
        June 30, 2001. 
        Sec. 27.  MILITARY AFFAIRS                50,000         50,000
        $50,000 the first year and $50,000 the 
        second year is for the purpose of 
        coordinating agreements with community 
        empowerment support groups for the use 
        of the military training center and 
        related personnel at Camp Ripley for 
        providing what are commonly referred to 
        as "soft skills" job skills training to 
        people, including those who are 
        expected to make the transition from 
        welfare to work.  "Soft skills" include 
        such things as being punctual and 
        following directions.  The adjutant 
        general may enter into contracts with 
        other state departments and local 
        agencies for the purpose of using the 
        facilities at Camp Ripley and staff to 
        provide that training.  This is a 
        one-time appropriation and may not be 
        added to the budget base for the 
        biennium ending June 30, 2001.  
        Sec. 28.  OFFICE OF TECHNOLOGY; 
        INTERNATIONAL TRADE ACTIVITIES           500,000
        $500,000 the first year is appropriated 
        from the general fund to the office of 
        technology for a one-time grant to the 
        regents of the University of Minnesota 
        for the operation of a secure 
        electronic authentication link 
        laboratory (SEAL). 
        Sec. 29.  CITY OF ANDOVER                500,000
        Notwithstanding any other law, $500,000 
        is appropriated the first year from the 
        contaminated site cleanup and 
        development account to the commissioner 
        of trade and economic development for a 
        grant to the city of Andover to be used 
        for the cleanup of contaminated land 
        but this grant cannot be used for land 
        acquisition.  This appropriation shall 
        be funded by tax proceeds collected 
        under Minnesota Statutes, section 
        270.91, and deposited into the 
        account.  This is a one-time 
        appropriation and may not be added to 
        the budget base for the biennium ending 
        June 30, 2001.  
           Sec. 30.  [MINNESOTA TECHNOLOGY GRANT TO MINNESOTA 
        TECHNOLOGY CORRIDOR CORPORATION.] 
           The grant under Laws 1995, chapter 224, section 3, to the 
        Minnesota Technology Corridor Corporation, a 501(c)(3) nonprofit 
        corporation, does not cancel, and any remaining balance of the 
        grant that may exist upon the dissolution of the Minnesota 
        Technology Corridor Corporation shall be transferred to the 
        William C. Norris Institute, a 501(c)(3) nonprofit corporation. 
           Sec. 31.  [RURAL POLICY AND DEVELOPMENT CENTER; 
        TRANSITION.] 
           The governor shall appoint the board of the center for 
        rural policy and development, other than legislative members, by 
        August 1, 1997.  Original appointments shall be staggered so 
        that four members serve two-year terms, four serve four-year 
        terms, and five serve six-year terms.  Thereafter, all terms 
        shall be for six years or the unexpired term of a term that was 
        not completed. 
           Sec. 32.  [STUDY OF STATE SERVICES FOR THE BLIND.] 
           The legislative audit commission is requested to undertake 
        a study, for reporting to the legislature in 1998, of the 
        advisability of removing state services for the blind from the 
        department of economic security and creating a separate board 
        for the blind, governed by a board appointed by the governor.  
        The study should include the factors of mission, identity, 
        visibility, service, accountability to blind citizens, consumer 
        involvement, administration, finance, and employment.  The study 
        should be performed in consultation with the rehabilitation 
        advisory council for the blind, as well as with consumer groups 
        and blind individuals. 
           Sec. 33.  [STUDY OF JOB-TRAINING PROGRAMS.] 
           Subdivision 1.  [STUDY.] The commissioners of trade and 
        economic development, labor and industry, and economic security 
        shall conduct a joint study of job-training programs funded 
        wholly or partly with state funds.  The commissioners must 
        report to the governor and legislature on the development of the 
        study by January 15, 1998, and make a final report on the study 
        by January 15, 1999. 
           Subd. 2.  [LONG-TERM TRACKING.] The study must include 
        findings and recommendations on the feasibility and desirability 
        of creating and implementing long-term tracking of individuals 
        who complete state-funded job training programs.  The 
        recommended tracking must provide, among other things, for 
        comparison of per capita income and wages earned by participants 
        in these programs with those earned by nonparticipants who are 
        in the same socioeconomic group as participants at the time of 
        program entry.  The study shall take into consideration the 
        physical and mental capabilities of individuals as well as their 
        levels of learning and training. 
           Subd. 3.  [COST REPORT.] The study must include a 
        compilation of all job training programs funded wholly or partly 
        with state funds for the purpose of determining the true cost of 
        these programs.  The study shall include, for each such program: 
           (1) a program description; 
           (2) the total costs, including those incurred by federal, 
        state, and local governments, and private and nonprofit 
        employers; 
           (3) economic benefits; and 
           (4) a comparison of the per-capita cost with the increases 
        in wages earned by program participants. 
           Sec. 34.  [INTERNATIONAL AFFAIRS COORDINATOR.] 
           During the biennium ending June 30, 1999, the legislative 
        coordinating commission may employ an international affairs 
        coordinator to: 
           (1) host international visitors; 
           (2) promote international education, research, and 
        exchanges; and 
           (3) monitor federal laws and agreements. 
           All state agencies shall assist the coordinator in the 
        performance of the coordinator's duties. 
           Sec. 35.  [COMMISSIONER OF NATURAL RESOURCES; AVAILABILITY 
        OF APPROPRIATION.] 
           The appropriation in Laws 1996, chapter 407, section 3, of 
        $750,000 to the commissioner of natural resources from the 
        taconite protection fund for acquisition and development of the 
        Iron Range off-highway vehicle recreation area does not cancel 
        but is available until June 30, 1999. 
           Sec. 36.  [COMMISSIONER OF ECONOMIC SECURITY; GRANT TO ST. 
        PAUL.] 
           The commissioner of economic security shall spend all of 
        the allocation to the city of St. Paul under Minnesota Statutes, 
        section 469.305, subdivision 1, for fiscal year 1997, that has 
        not been spent or otherwise committed by the city of St. Paul on 
        the effective date of this section, as a grant to the city of St.
        Paul for community development corporations to be used for 
        microenterprise and equity loans to eligible businesses located 
        or to be located at or near the Dale Street shops/Maxson Steel 
        industrial sites and the Minnehaha Mall area of the city of St. 
        Paul.  The commissioner or the city of St. Paul shall place this 
        amount in an interest-bearing account and shall make the money 
        in the account available for the purposes of this section only 
        when the contamination cleanup at the Dale Street shops/Maxson 
        Steel industrial sites has progressed to the point where 
        redevelopment can occur.  For purposes of this section, 
        "eligible businesses" is limited to small beginning businesses, 
        including an existing business that is starting a new location, 
        where similar businesses have demonstrated success in similar 
        neighborhoods.  The $10,000 maximum limit on microenterprise 
        loans under Minnesota Statutes, section 116M.18, subdivision 4a, 
        clause (2), does not apply to the grant under this section. 
           Sec. 37.  [TASK FORCE; WELFARE REFORM BUDGET IMPACT.] 
           The commissioner of finance shall report to the 
        legislature:  (1) by January 20, 1998, on the potential budget 
        impact to each state department and agency, including public 
        institutions of higher education, of the 1996 federal welfare 
        reform legislation and the response to that reform by the 
        legislature, by legislation contained in S.F. No. 1 in the 1997 
        session, if enacted; and (2) by January 20, 1999, on new 
        programs enacted by the 1997 legislature designed to address the 
        welfare to work requirements of federal welfare reform and 
        evaluate the success of those new programs in achieving their 
        goals, job placement and retention rates for those programs, and 
        the success of those programs in meeting the needs of welfare 
        recipients seeking employment. 
           The commissioner shall report that potential budgetary 
        impact separately for each department and for each program, 
        including programs funded by pass through appropriations. 
           Each state department and agency must cooperate with the 
        commissioner in the preparation of the report. 
           The commissioner shall solicit input from the public about 
        the budgetary impacts. 
           Sec. 38.  [YEAR 2000 READY.] 
           Any computer software or hardware that is purchased with 
        money appropriated in this bill must be year 2000 ready. 
           Sec. 39.  Minnesota Statutes 1996, section 44A.01, 
        subdivision 2, is amended to read: 
           Subd. 2.  [BOARD MEMBERSHIP.] The corporation is governed 
        by a board of directors consisting of: 
           (1) four members, representing the international business 
        community, elected to six-year three-year terms by the 
        association of members established under section 44A.023, 
        subdivision 2, clause (5); 
           (2) four members, representing the international business 
        community, appointed by the governor, to serve at the governor's 
        pleasure; 
           (3) the mayor of St. Paul or the mayor's designee; 
           (4) the commissioners of trade and economic development, 
        agriculture, and commerce; and 
           (5) three members of the house appointed by the speaker of 
        the house and three members of the senate appointed under the 
        rules of the senate, who serve as nonvoting members.  One member 
        from each house must be a member of the minority party of that 
        house.  Legislative members are appointed at the beginning of 
        each regular session of the legislature for two-year terms.  A 
        legislator who remains a member of the body from which the 
        legislator was appointed may serve until a successor is 
        appointed and qualifies.  A vacancy in a legislator member's 
        term is filled for the unexpired portion of the term in the same 
        manner as the original appointment. 
           Members appointed by the governor must be knowledgeable or 
        experienced in international trade in products or services. 
           Sec. 40.  [45.0295] [FEES.] 
           (a) The following fees shall be paid to the commissioner: 
           (1) for a letter of certification of licensure, $20; 
           (2) for a license history, $20; 
           (3) for a duplicate license, $10; 
           (4) for a change of name or address, $10; 
           (5) for a temporary license, $10; 
           (6) for each hour or fraction of one hour of course 
        approval for continuing education sought, $10; and 
           (7) for each continuing education course coordinator 
        approval, $100. 
           (b) All fees paid to the commissioner under this section 
        are nonrefundable, except that an overpayment of a fee shall be 
        returned upon proper application. 
           Sec. 41.  Minnesota Statutes 1996, section 60A.23, 
        subdivision 8, is amended to read: 
           Subd. 8.  [SELF-INSURANCE OR INSURANCE PLAN ADMINISTRATORS 
        WHO ARE VENDORS OF RISK MANAGEMENT SERVICES.] (1)  [SCOPE.] This 
        subdivision applies to any vendor of risk management services 
        and to any entity which administers, for compensation, a 
        self-insurance or insurance plan.  This subdivision does not 
        apply (a) to an insurance company authorized to transact 
        insurance in this state, as defined by section 60A.06, 
        subdivision 1, clauses (4) and (5); (b) to a service plan 
        corporation, as defined by section 62C.02, subdivision 6; (c) to 
        a health maintenance organization, as defined by section 62D.02, 
        subdivision 4; (d) to an employer directly operating a 
        self-insurance plan for its employees' benefits; (e) to an 
        entity which administers a program of health benefits 
        established pursuant to a collective bargaining agreement 
        between an employer, or group or association of employers, and a 
        union or unions; or (f) to an entity which administers a 
        self-insurance or insurance plan if a licensed Minnesota insurer 
        is providing insurance to the plan and if the licensed insurer 
        has appointed the entity administering the plan as one of its 
        licensed agents within this state. 
           (2)  [DEFINITIONS.] For purposes of this subdivision the 
        following terms have the meanings given them. 
           (a) "Administering a self-insurance or insurance plan" 
        means (i) processing, reviewing or paying claims, (ii) 
        establishing or operating funds and accounts, or (iii) otherwise 
        providing necessary administrative services in connection with 
        the operation of a self-insurance or insurance plan. 
           (b) "Employer" means an employer, as defined by section 
        62E.02, subdivision 2. 
           (c) "Entity" means any association, corporation, 
        partnership, sole proprietorship, trust, or other business 
        entity engaged in or transacting business in this state. 
           (d) "Self-insurance or insurance plan" means a plan 
        providing life, medical or hospital care, accident, sickness or 
        disability insurance for the benefit of employees or members of 
        an association, or a plan providing liability coverage for any 
        other risk or hazard, which is or is not directly insured or 
        provided by a licensed insurer, service plan corporation, or 
        health maintenance organization. 
           (e) "Vendor of risk management services" means an entity 
        providing for compensation actuarial, financial management, 
        accounting, legal or other services for the purpose of designing 
        and establishing a self-insurance or insurance plan for an 
        employer. 
           (3)  [LICENSE.] No vendor of risk management services or 
        entity administering a self-insurance or insurance plan may 
        transact this business in this state unless it is licensed to do 
        so by the commissioner.  An applicant for a license shall state 
        in writing the type of activities it seeks authorization to 
        engage in and the type of services it seeks authorization to 
        provide.  The license may be granted only when the commissioner 
        is satisfied that the entity possesses the necessary 
        organization, background, expertise, and financial integrity to 
        supply the services sought to be offered.  The commissioner may 
        issue a license subject to restrictions or limitations upon the 
        authorization, including the type of services which may be 
        supplied or the activities which may be engaged in.  The license 
        fee is $100 $500 for the initial application and $500 for each 
        two-year renewal.  All licenses are for a period of two years. 
           (4)  [REGULATORY RESTRICTIONS; POWERS OF THE COMMISSIONER.] 
        To assure that self-insurance or insurance plans are financially 
        solvent, are administered in a fair and equitable fashion, and 
        are processing claims and paying benefits in a prompt, fair, and 
        honest manner, vendors of risk management services and entities 
        administering insurance or self-insurance plans are subject to 
        the supervision and examination by the commissioner.  Vendors of 
        risk management services, entities administering insurance or 
        self-insurance plans, and insurance or self-insurance plans 
        established or operated by them are subject to the trade 
        practice requirements of sections 72A.19 to 72A.30.  In lieu of 
        an unlimited guarantee from a parent corporation for a vendor of 
        risk management services or an entity administering insurance or 
        self-insurance plans, the commissioner may accept a surety bond 
        in a form satisfactory to the commissioner in an amount equal to 
        120 percent of the total amount of claims handled by the 
        applicant in the prior year.  If at any time the total amount of 
        claims handled during a year exceeds the amount upon which the 
        bond was calculated, the administrator shall immediately notify 
        the commissioner.  The commissioner may require that the bond be 
        increased accordingly. 
           (5)  [RULEMAKING AUTHORITY.] To carry out the purposes of 
        this subdivision, the commissioner may adopt rules pursuant to 
        sections 14.001 to 14.69.  These rules may: 
           (a) establish reporting requirements for administrators of 
        insurance or self-insurance plans; 
           (b) establish standards and guidelines to assure the 
        adequacy of financing, reinsuring, and administration of 
        insurance or self-insurance plans; 
           (c) establish bonding requirements or other provisions 
        assuring the financial integrity of entities administering 
        insurance or self-insurance plans; or 
           (d) establish other reasonable requirements to further the 
        purposes of this subdivision. 
           Sec. 42.  Minnesota Statutes 1996, section 60A.71, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [FEES.] Each applicant for a reinsurance 
        intermediary license shall pay to the commissioner a fee of $160 
        for an initial two-year license and a fee of $120 for each 
        renewal.  Applications shall be submitted on forms prescribed by 
        the commissioner. 
           Sec. 43.  Minnesota Statutes 1996, section 60K.06, 
        subdivision 2, is amended to read: 
           Subd. 2.  [LICENSING FEES.] (a) In addition to the fees and 
        charges provided for examinations, each agent licensed pursuant 
        to section 60K.03 shall pay to the commissioner: 
           (1) a fee of $60 per license for an initial license issued 
        to an individual agent, and a fee of $60 for each renewal; 
           (2) a fee of $160 for an initial license issued to a 
        partnership, limited liability company, or corporation, and a 
        fee of $120 for each renewal; 
           (3) a fee of $75 for an initial amendment (variable 
        annuity) to a license, and a fee of $50 for each renewal; and 
           (4) a fee of $500 for an initial surplus lines agent's 
        license, and a fee of $500 for each renewal; 
           (5) for issuing a duplicate license, $10; and 
           (6) for issuing licensing histories, $20. 
           (b) Persons whose applications have been properly and 
        timely filed who have not received notice of denial of renewal 
        are approved for renewal and may continue to transact business 
        whether or not the renewed license has been received on or 
        before November 1 of the renewal year.  Applications for renewal 
        of a license are timely filed if received by the commissioner on 
        or before the 15th day preceding the license renewal date of the 
        applicant on forms duly executed and accompanied by appropriate 
        fees.  An application mailed is considered timely filed if 
        addressed to the commissioner, with proper postage, and 
        postmarked on or before the 15th day preceding the licensing 
        renewal date of the applicant. 
           (c) Initial licenses issued under this section must be 
        valid for a period not to exceed two years.  The commissioner 
        shall assign an expiration date to each initial license so that 
        approximately one-half of all licenses expire each year.  Each 
        initial license must expire on October 31 of the expiration year 
        assigned by the commissioner. 
           (d) All fees shall be retained by the commissioner and are 
        nonreturnable, except that an overpayment of any fee must be 
        refunded upon proper application. 
           Sec. 44.  Minnesota Statutes 1996, section 65B.48, 
        subdivision 3, is amended to read: 
           Subd. 3.  Self-insurance, subject to approval of the 
        commissioner, is effected by filing with the commissioner in 
        satisfactory form: 
           (1) a continuing undertaking by the owner or other 
        appropriate person to pay tort liabilities or basic economic 
        loss benefits, or both, and to perform all other obligations 
        imposed by sections 65B.41 to 65B.71; 
           (2) evidence that appropriate provision exists for prompt 
        administration of all claims, benefits, and obligations provided 
        by sections 65B.41 to 65B.71; 
           (3) evidence that reliable financial arrangements, 
        deposits, or commitments exist providing assurance, 
        substantially equivalent to that afforded by a policy of 
        insurance complying with sections 65B.41 to 65B.71, for payment 
        of tort liabilities, basic economic loss benefits, and all other 
        obligations imposed by sections 65B.41 to 65B.71; and 
           (4) a nonrefundable initial application fee of $500 and an 
        annual renewal fee of $100 for political subdivisions and $250 
        for nonpolitical entities.  
           Sec. 45.  Minnesota Statutes 1996, section 72B.04, 
        subdivision 10, is amended to read: 
           Subd. 10.  [FEES.] A fee of $40 is imposed for each initial 
        license or temporary permit and $25 for each renewal thereof or 
        amendment thereto.  A fee of $20 is imposed for each examination 
        taken.  A fee of $20 is imposed for the registration of each 
        nonlicensed adjuster who is required to register under section 
        72B.06.  All fees shall be transmitted to the commissioner and 
        shall be payable to the state treasurer.  If a fee is paid for 
        an examination and if within one year from the date of that 
        payment no written request for a refund is received by the 
        commissioner or the examination for which the fee was paid is 
        not taken, the fee is forfeited to the state of Minnesota. 
           Sec. 46.  Minnesota Statutes 1996, section 79.253, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CREATION OF ACCOUNT.] There is created the 
        assigned risk safety account as a separate account in the 
        special compensation fund in the state treasury.  Income earned 
        by funds in the account must be credited to the account.  
        Principal and income of the account are annually appropriated to 
        the commissioner of labor and industry and must be used for 
        grants and loans under this section to establish and promote 
        workplace safety and health programs. 
           Sec. 47.  Minnesota Statutes 1996, section 79.255, is 
        amended by adding a subdivision to read: 
           Subd. 10.  [FEE.] A registration or exemption certificate 
        fee of $50 shall be paid. 
           Sec. 48.  Minnesota Statutes 1996, section 82.21, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AMOUNTS.] The following fees shall be paid 
        to the commissioner: 
           (a) A fee of $150 for each initial individual broker's 
        license, and a fee of $100 for each renewal thereof; 
           (b) A fee of $70 for each initial salesperson's license, 
        and a fee of $40 for each renewal thereof; 
           (c) A fee of $85 for each initial real estate closing agent 
        license, and a fee of $60 for each renewal thereof; 
           (d) A fee of $150 for each initial corporate, limited 
        liability company, or partnership license, and a fee of $100 for 
        each renewal thereof; 
           (e) A fee for payment to the education, research and 
        recovery fund in accordance with section 82.34; 
           (f) A fee of $20 for each transfer; 
           (g) A fee of $50 for a corporation, limited liability 
        company, or partnership name change; 
           (h) A fee of $10 for an agent name change; 
           (i) A fee of $20 for a license history; 
           (j) A fee of $10 for a duplicate license; 
           (k) A fee of $50 for license reinstatement; and 
           (l) (h) A fee of $20 for reactivating a corporate, limited 
        liability company, or partnership license without land; 
           (m) A fee of $100 for course coordinator approval; and 
           (n) A fee of $20 for each hour or fraction of one hour of 
        course approval sought. 
           Sec. 49.  Minnesota Statutes 1996, section 82B.09, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AMOUNTS.] The following fees must be paid 
        to the commissioner: 
           (1) for each initial individual real estate appraiser's 
        license:  $150 if the license expires more than 12 months after 
        issuance, $100 if the license expires less than 12 months after 
        issuance; and a fee of $100 for each renewal;. 
           (2) a fee of $10 for a change in personal name or trade 
        name or personal address or business location; 
           (3) a fee of $10 for a license history; 
           (4) a fee of $25 for a duplicate license; 
           (5) a fee of $100 for appraiser course coordinator 
        approval; and 
           (6) a fee of $10 for each hour or fraction of one hour of 
        course approval sought. 
           Sec. 50.  Minnesota Statutes 1996, section 116J.01, 
        subdivision 5, is amended to read: 
           Subd. 5.  [DEPARTMENTAL ORGANIZATION.] (a) The commissioner 
        shall organize the department as provided in section 15.06.  
           (b) The commissioner may establish divisions and offices 
        within the department.  The commissioner may employ three deputy 
        commissioners in the unclassified service.  One deputy must 
        direct the Minnesota trade office and must be experienced and 
        knowledgeable in matters of international trade.  
           (c) The commissioner shall: 
           (1) employ assistants and other officers, employees, and 
        agents that the commissioner considers necessary to discharge 
        the functions of the commissioner's office; 
           (2) define the duties of the officers, employees, and 
        agents, and delegate to them any of the commissioner's powers, 
        duties, and responsibilities, subject to the commissioner's 
        control and under conditions prescribed by the commissioner.  
           (d) The commissioner shall ensure that there are at least 
        three trade and economic development officers in state offices 
        in nonmetropolitan areas of the state who will work with local 
        units of government on developing local trade and economic 
        development. 
           Sec. 51.  [116J.421] [RURAL POLICY AND DEVELOPMENT CENTER.] 
           Subdivision 1.  [ESTABLISHED.] The rural policy and 
        development center is established at Mankato State University. 
           Subd. 2.  [GOVERNANCE.] The center is governed by a board 
        of directors appointed to six-year terms by the governor 
        comprised of: 
           (1) a representative from each of the two largest statewide 
        general farm organizations; 
           (2) a representative from a regional initiative 
        organization selected under Minnesota Statutes, section 
        116J.415, subdivision 3; 
           (3) the president of Mankato State University; 
           (4) a representative from the general public residing in a 
        town of less than 5,000 located outside of the metropolitan 
        area; 
           (5) a member of the house of representatives appointed by 
        the speaker of the house and a member of the senate appointed by 
        the subcommittee on committees of the senate committee on rules 
        and administration appointed for two-year terms; 
           (6) three representatives from business, including one 
        representing rural manufacturing and one rural retail and 
        service business; 
           (7) three representatives from private foundations with a 
        demonstrated commitment to rural issues; 
           (8) one representative from a rural county government; and 
           (9) one representative from a rural regional government. 
           Subd. 3.  [DUTIES.] The center shall: 
           (1) identify present and emerging social and economic 
        issues for rural Minnesota, including health care, 
        transportation, crime, housing, and job training; 
           (2) forge alliances and partnerships with rural communities 
        to find practical solutions to economic and social problems; 
           (3) provide a resource center for rural communities on 
        issues of importance to them; 
           (4) encourage collaboration across higher education 
        institutions to provide interdisciplinary team approaches to 
        problem solving with rural communities; and 
           (5) involve students in center projects. 
           Subd. 4.  [STATEWIDE FOCUS.] The center has a statewide 
        mission.  It may contract and collaborate with higher education 
        and other institutions located throughout the state. 
           Sec. 52.  [116J.422] [RURAL POLICY AND DEVELOPMENT CENTER 
        FUND.] 
           A rural policy and development center fund is established 
        as an account in the state treasury.  The commissioner of 
        finance shall credit to the account the amounts authorized under 
        this section and appropriations and transfers to the account.  
        The state board of investment shall ensure that account money is 
        invested under Minnesota Statutes, section 11A.24.  All money 
        earned by the account must be credited to the account.  The 
        principal of the account and any unexpended earnings must be 
        invested and reinvested by the state board of investment. 
           Gifts and donations, including land or interests in land, 
        may be made to the account.  Noncash gifts and donations must be 
        disposed of for cash as soon as the board prudently can maximize 
        the value of the gift or donation.  Gifts and donations of 
        marketable securities may be held or be disposed of for cash at 
        the option of the board.  The cash receipts of gifts and 
        donations of cash or capital assets and marketable securities 
        disposed of for cash must be credited immediately to the 
        principal of the account.  The value of marketable securities at 
        the time the gift or donation is made must be credited to the 
        principal of the account and any earnings from the marketable 
        securities are earnings of the account.  The earnings in the 
        account are annually appropriated to the board of the center for 
        rural policy and development to carry out the duties of the 
        center. 
           Sec. 53.  [116J.543] [FILM PRODUCTIONS JOBS PROGRAM.] 
           The film production jobs program is created.  The program 
        shall be operated by the Minnesota film board with 
        administrative oversight and control by the commissioner of 
        trade and economic development.  The program shall make payment 
        to producers of long-form and narrative film productions that 
        directly create new film jobs in Minnesota.  To be eligible for 
        a payment, a producer must submit documentation to the Minnesota 
        film board of expenditures for wages for work on new film 
        production jobs in Minnesota by resident Minnesotans.  The film 
        jobs include work such as technical crews, acting talent, set 
        construction, soundstage or equipment rental, local 
        postproduction film processing, and other film production jobs.  
           The film board must make recommendations to the 
        commissioner about program payment, but the recommendations are 
        not binding and the commissioner has the authority to make the 
        final determination on payments.  The commissioner's 
        determination must be based on the amount of wages documented to 
        the film board and the likelihood that the payment will lead to 
        further documentable wage payments.  Payment may not exceed 
        $100,000 for a single long-form and narrative film.  No more 
        than five percent of the funds appropriated for the program in 
        any year may be expended for administration.  Individual feature 
        film projects shooting on or after January 1, 1997, will be 
        eligible for fund allocations. 
           Sec. 54.  Minnesota Statutes 1996, section 116J.615, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DUTIES OF DIRECTOR.] The director of 
        tourism shall:  
           (1) publish, disseminate, and distribute informational and 
        promotional literature; 
           (2) promote and encourage the expansion and development of 
        international tourism marketing; 
           (3) advertise and disseminate information about travel 
        opportunities in the state of Minnesota; 
           (4) aid various local communities to improve their tourism 
        marketing programs; 
           (5) coordinate and implement a comprehensive state tourism 
        marketing program that takes into consideration all public and 
        private businesses and attractions; 
           (6) conduct market research and analysis to improve 
        marketing techniques in the area of tourism; 
           (7) investigate and study conditions affecting Minnesota's 
        tourism industry, collect and disseminate information, and 
        engage in technical studies, scientific investigations, and 
        statistical research and educational activities necessary or 
        useful for the proper execution of the powers and duties of the 
        director in promoting and developing Minnesota's tourism 
        industry, both within and outside the state; 
           (8) apply for, accept, receive, and expend any funds for 
        the promotion of tourism in Minnesota.  All money received by 
        the director under this subdivision shall be deposited in the 
        state treasury and is appropriated to the director for the 
        purposes for which the money has been received.  The director 
        may enter into interagency agreements and may agree to share net 
        revenues with the contributing agencies.  The money does not 
        cancel and is available until expended; and 
           (9) plan and conduct information and publicity programs to 
        attract tourists, visitors, and other interested persons from 
        outside the state to this state; encourage and coordinate 
        efforts of other public and private organizations or groups of 
        citizens to publicize facilities and attractions in this state; 
        and work with representatives of the hospitality and tourism 
        industry to carry out its programs. 
           Sec. 55.  [116J.8745] [MICROENTERPRISE ENTREPRENEURIAL 
        ASSISTANCE.] 
           Subdivision 1.  [TECHNICAL ASSISTANCE; LOAN 
        ADMINISTRATION.] The commissioner of trade and economic 
        development shall make grants to nonprofit organizations to 
        provide technical assistance to individuals with entrepreneurial 
        plans that require microenterprise loans in an amount ranging 
        from approximately $1,000 to $25,000, and for loan 
        administration costs related to those microenterprise loans.  
        Microenterprise is a small business which employs under five 
        employees plus the owner and requires under $25,000 to start. 
           Subd. 2.  [GRANT ELIGIBILITY AND ALLOCATION.] Nonprofit 
        organizations must apply for grants under this section following 
        procedures established by the commissioner.  To be eligible for 
        a grant, an organization must demonstrate to the commissioner 
        that it has the appropriate expertise.  The commissioner shall 
        give preference for grants to organizations that target 
        nontraditional entrepreneurs such as women, members of a 
        minority, low-income individuals, or persons seeking work who 
        are currently on or recently removed from welfare assistance. 
           An application must include: 
           (1) the local need for microenterprise support; 
           (2) proposed criteria for business eligibility; 
           (3) proposals for identifying and serving eligible 
        businesses; 
           (4) a description of technical assistance to be provided to 
        eligible businesses; 
           (5) proposals to coordinate technical assistance with 
        financial assistance; and 
           (6) a demonstration of ability to collaborate with other 
        agencies including educational and financial institutions. 
           Subd. 3.  [GRANT EVALUATIONS.] Grant recipients must report 
        to the commissioner by February 1 in each of the two years 
        succeeding 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, recommendations to continue or change the program, and 
        a suggested level of funding. 
           Sec. 56.  [116J.8755] [SMALL BUSINESS; ELECTRONIC ACCESS TO 
        INTERNATIONAL MARKETS.] 
           The commissioner shall develop a plan for enabling small 
        businesses to gain electronic access to international markets 
        through mechanisms that may include electronic trade points. 
           Sec. 57.  [116J.992] [TACONITE MINING GRANTS.] 
           (a) The commissioner shall establish a program to make 
        grants to taconite mining companies to enable them to research 
        technologies that: 
           (1) reduce energy consumption; 
           (2) reduce environmental emissions; 
           (3) improve productivity; or 
           (4) improve pellet quality. 
           (b) To receive a grant a recipient must convey to the state 
        permanent ownership of both mineral reserves and corresponding 
        surface lands that: 
           (1) contain unmined taconite with a 23 percent minimum 
        magnetic iron content; 
           (2) have an open pit stripping ratio of less than 1.5 to 1; 
           (3) are unencumbered by current or planned surface 
        development; 
           (4) are substantially unencumbered by past mining activity; 
           (5) have marketable title for both surface and mineral 
        interests; and 
           (6) are in an area that could reasonably be expected to be 
        mined within 50 years. 
           (c) A grant may not exceed the value of the mineral 
        reserves and surface land as assessed by the commissioner of 
        natural resources.  When assessing value, the commissioner must, 
        at a minimum, take into account the future value of any royalty 
        stream, the state's cost of capital, the costs of removing any 
        encumbrances, and the probability that the reserves will be 
        mined in the future.  Any revenue generated by ownership or sale 
        of the property must be deposited in the general fund. 
           Sec. 58.  Minnesota Statutes 1996, section 116L.04, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GRANTS-IN-AID PARTNERSHIP PROGRAM.] (a) 
        The partnership program may provide grants-in-aid to educational 
        or other nonprofit training institutions using the following 
        guidelines:  
           (1) the educational or other nonprofit institution is a 
        provider of training within the state in either the public or 
        private sector; 
           (2) the program involves skills training that is an area of 
        employment need; and 
           (3) preference will be given to educational or other 
        nonprofit training institutions which serve economically 
        disadvantaged people, minorities, or those who are victims of 
        economic dislocation and to businesses located in rural areas.  
           (b) A single grant to any one institution shall not exceed 
        $200,000 $400,000.  
           Sec. 59.  Minnesota Statutes 1996, section 116L.04, is 
        amended by adding a subdivision to read: 
           Subd. 1a.  [PATHWAYS PROGRAM.] The pathways program may 
        provide grants-in-aid for developing programs which assist in 
        the transition of persons from welfare to work.  The program is 
        to be operated by the board.  The board shall consult and 
        coordinate with the Job Training Partnership Act Title II-A 
        program administrators at the department of economic security to 
        design and provide services for temporary assistance for needy 
        families recipients. 
           Pathways grants-in-aid may be awarded to educational or 
        other nonprofit training institutions for education and training 
        programs that serve public assistance recipients transitioning 
        from public assistance to employment. 
           Preference shall be given to projects that: 
           (1) provide employment with benefits paid to employees; 
           (2) provide employment where there are defined career paths 
        for trainees; 
           (3) pilot the development of an educational pathways that 
        can be used on a continuing basis for transitioning persons from 
        public assistance directly to work; and 
           (4) demonstrate the active participation of department of 
        economic security workforce centers, Minnesota state college and 
        university institutions and other educational institutions, and 
        local welfare agencies. 
           Pathways projects must demonstrate the active involvement 
        and financial commitment of private business.  Pathways projects 
        must be matched with cash or in-kind contributions on at least a 
        one-to-one ratio by participating private business. 
           A single grant to any one institution shall not exceed 
        $200,000. 
           The board shall annually, by March 31, report to the 
        commissioners of economic security and trade and economic 
        development on pathways programs, including the number of public 
        assistance recipients participating in the program, the number 
        of participants placed in employment, the salary and benefits 
        they receive, and the state program costs per participant. 
           Sec. 60.  [116L.06] [HIRE EDUCATION LOAN PROGRAM.] 
           Subdivision 1.  [FUND USES.] The job skills partnership 
        board may make loans to Minnesota employers to train persons for 
        jobs in Minnesota.  The loans must be used to train current and 
        prospective employees of an employer for specific jobs with the 
        employer.  
           Subd. 2.  [LOAN PROCESS.] The board shall establish a 
        schedule and competitive process for accepting loan 
        applications.  The board shall evaluate loan applications. 
           Subd. 3.  [LOAN PRIORITY.] The board shall give priority to 
        loans that provide training for jobs that are permanent, provide 
        health coverage and other fringe benefits, and have a career or 
        job path with prospects for wage increases. 
           Subd. 4.  [LOAN TERMS.] Loans may be secured or unsecured, 
        shall be for a term of no more than two years, and shall bear no 
        interest.  The maximum amount of a loan is $250,000.  A loan 
        origination fee of up to two percent of the principal of the 
        loan may be charged.  An employer may have only one outstanding 
        loan.  The loans shall contain such other standard commercial 
        loan terms as the board deems appropriate. 
           Subd. 5.  [LOAN USES.] Loans must be used by an employer to 
        obtain the most cost-effective training available from public or 
        private training institutions.  An employer must document to the 
        board the process the employer has utilized to ensure that the 
        proposed loan is used to acquire the most cost-effective 
        training and provide a training plan. 
           Subd. 6.  [PACKAGING LOANS.] The board may package a grant 
        it makes under section 116L.04 with a loan under this section.  
           Subd. 7.  [LOAN REPAYMENTS.] Loan repayments and loan 
        origination fees shall be retained by the board for board 
        programs. 
           Sec. 61.  Minnesota Statutes 1996, section 116O.05, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [SUPPORTING ORGANIZATIONS.] On making a 
        determination that the public policies and purposes of this 
        chapter will be carried out to a greater extent than what might 
        otherwise occur, the board may cause to be created and may 
        delegate, assign, or transfer to one or more entities, including 
        without limitation a corporation, nonprofit corporation, limited 
        liability company, partnership, or limited partnership, any or 
        all rights and duties, assets and liabilities, powers or 
        authority created, authorized, or allowed under this chapter, 
        including without limitation those pertaining to the seed 
        capital fund under section 116O.122, except to the extent 
        specifically limited by the constitution or by law. 
           Sec. 62.  Minnesota Statutes 1996, section 116O.122, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ESTABLISHMENT.] The corporation shall, in 
        consultation with private venture and seed capital companies and 
        other public and private organizations as appropriate, implement 
        a centrally managed seed capital fund to invest in early stage 
        companies and small companies in Minnesota through equity or 
        equity-type investments.  The seed capital fund may receive 
        contributions from the corporation, as well as from local, 
        state, or federal government, private foundations, or other 
        sources.  Total investments by the seed capital fund in 
        seven-county metropolitan area based companies must not exceed 
        20 percent of the total amount invested capitalization 
        appropriated by the legislature or provided by the corporation.  
        Investments which contribute to the 20 percent metropolitan area 
        limitation are those which will primarily enhance the operations 
        of a metropolitan based facility.  Investments that benefit a 
        Greater Minnesota facility of a metropolitan based company are 
        not subject to the limitation.  Investments by the seed capital 
        fund must be matched by other sources of capital at a ratio to 
        be determined by the corporation.  The seed capital fund shall 
        identify sources of technical, management, and marketing 
        assistance for companies funded by the seed capital program and 
        make appropriate referrals.  The seed capital fund shall 
        establish a procedure for liquidating private investments. 
           Sec. 63.  Minnesota Statutes 1996, section 155A.045, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SCHEDULE.] The fee schedule for licensees 
        is as follows: 
           (a) Three-year license fees: 
           (1) cosmetologist, manicurist, esthetician, $45 for each 
        initial license and $30 for each renewal; 
           (2) instructor, manager, $60 for each initial license, 
        and $45 for each renewal; 
           (3) salon, $65 for each initial license, and $50 for each 
        renewal; and 
           (4) school, $750. 
           (b) Penalties: 
           (1) reinspection fee, variable; and 
           (2) manager with lapsed practitioner, $25. 
           (c) Administrative fees: 
           (1) duplicate license (includes individual name or address 
        change), $5; 
           (2) certificate of identification, $20; 
           (3) processing fee (covers licensing history or 
        certification of licensure, restoration of lapsed license, salon 
        name change, school name change, late renewals, applications for 
        new licenses), $15; and 
           (4) (2) school original application, $150. 
           Sec. 64.  Minnesota Statutes 1996, section 176.181, 
        subdivision 2a, is amended to read: 
           Subd. 2a.  [APPLICATION FEE.] Every initial application 
        filed pursuant to subdivision 2 requesting authority to 
        self-insure shall be accompanied by a nonrefundable fee of 
        $1,000 $2,500.  The fee is not refundable.  When an employer 
        seeks to be added as a member of an existing approved group 
        under section 79A.03, subdivision 6, the proposed new member 
        shall pay a nonrefundable $250 application fee to the 
        commissioner at the time of application.  Each annual report due 
        August 1 under section 79A.03, subdivision 9, shall be 
        accompanied by an annual fee of $200.  
           Sec. 65.  [268.3625] [ADMINISTRATIVE COSTS.] 
           The commissioner may use up to five percent of the biennial 
        appropriation for Youthbuild from the general fund to pay costs 
        incurred by the department in administering Youthbuild during 
        the biennium. 
           Sec. 66.  Minnesota Statutes 1996, section 268A.15, is 
        amended by adding a subdivision to read: 
           Subd. 1a.  [SEVERE IMPAIRMENT TO EMPLOYMENT; 
        DEFINITION.] For the purpose of this section, "severe impairment 
        to employment" means profound limitations that dramatically 
        restrict an individual's ability to seek, secure, and maintain 
        employment due to an extended history of little or no 
        employment, limited education, training, or job skills, and 
        physical, intellectual, or emotional characteristics seriously 
        impairing future ability to obtain and retain permanent 
        employment. 
           Sec. 67.  Minnesota Statutes 1996, section 268A.15, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PROGRAM PURPOSE.] The extended employment 
        program shall have two categories of clients consisting of those 
        with severe disabilities and those with severe impairment to 
        employment.  The purpose of the extended employment program for 
        persons with severe disabilities is to provide the ongoing 
        services necessary to maintain and advance the employment of 
        persons with severe disabilities.  The purpose of the extended 
        employment program for persons with severe impairment to 
        employment is to provide the ongoing support services necessary 
        to secure, maintain, and advance in employment.  Employment 
        under this section must encompass the broad range of employment 
        choices available to all persons and promote an individual's 
        self-sufficiency and financial independence.  
           Sec. 68.  Minnesota Statutes 1996, section 268A.15, is 
        amended by adding a subdivision to read: 
           Subd. 3a.  [SEVERE IMPAIRMENT TO EMPLOYMENT; SEPARATE 
        PROGRAM.] The allocation of funds, eligibility criteria, and 
        funding criteria for extended employment program funds for 
        persons with severe disabilities shall be separate from the 
        allocation of funds, eligibility criteria, and funding criteria 
        for extended employment program funds for persons with severe 
        impairment to employment.  Extended employment program services 
        for persons with severe disabilities shall be modified to the 
        extent necessary to provide services to persons with severe 
        impairment to employment. 
           The county agency must consider placing an individual who 
        is on welfare and who has a severe impairment to employment, as 
        defined in subdivision 1a, into an extended employment program 
        under this section for job skills training or a job, or both, as 
        part of the effort to move people from welfare to work as 
        required under federal welfare reform. 
           Sec. 69.  Minnesota Statutes 1996, section 268A.15, 
        subdivision 6, is amended to read: 
           Subd. 6.  [GRANTS.] The commissioner may provide innovation 
        and expansion grants to rehabilitation facilities to encourage 
        the development, demonstration, or dissemination of innovative 
        business practices, training programs, and service delivery 
        methods that: 
           (1) expand and improve employment opportunities for persons 
        with severe disabilities or severe impairment to employment who 
        are unserved or underserved by the extended employment program; 
        and 
           (2) increase the ability of persons with severe 
        disabilities or severe impairment to employment to use new and 
        emerging technologies in employment settings, and foster the 
        capacity of rehabilitation facilities and employers to promote 
        the integration of individuals with severe disabilities and 
        severe impairment to employment into the workplace and the 
        mainstream of community life. 
           The grants must require collaboration at the local level 
        among vocational rehabilitation field offices, county social 
        service and planning agencies, rehabilitation facilities, and 
        employers.  
           Sec. 70.  Minnesota Statutes 1996, section 268A.15, is 
        amended by adding a subdivision to read: 
           Subd. 8.  [FUNDING AUTHORITY.] State grant funds under this 
        section and section 268A.13 shall be available for 24 months 
        following the end of a fiscal year to allow for the submission 
        of final grant data reports, the completion of audit adjustments 
        of payments to grantees including grantee appeals of final audit 
        adjustments, and the redistribution of remaining balances in 
        grant accounts to other grantees who meet or exceed their 
        contracts with the department for that fiscal year. 
           Sec. 71.  Minnesota Statutes 1996, section 298.22, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [GIANTS RIDGE RECREATION AREA.] (a) In addition 
        to the other powers granted in this section and other law, the 
        commissioner, for purposes of fostering economic development and 
        tourism within the Giants Ridge recreation area, may spend any 
        money made available to the agency under section 298.28 to 
        acquire real or personal property or interests therein by gift, 
        purchase, or lease and may convey by lease, sale, or other means 
        of conveyance or commitment any or all of those property 
        interests acquired.  
           (b) Notwithstanding any other law to the contrary, property 
        conveyed under this subdivision and used for residential 
        purposes is not eligible for property tax homestead 
        classification under section 273.124 or for a property tax 
        refund under chapter 290A. 
           (c) In furtherance of development of the Giants Ridge 
        recreation area, the commissioner may establish and participate 
        in charitable foundations and nonprofit corporations, including 
        a corporation within the meaning of section 317A.011, 
        subdivision 6. 
           (d) The term "Giants Ridge recreation area" refers to an 
        economic development project area established by the 
        commissioner in furtherance of the powers delegated in this 
        section within St. Louis county in the western portions of the 
        town of White and in the eastern portion of the westerly, 
        adjacent, unorganized township. 
           Sec. 72.  Minnesota Statutes 1996, section 326.86, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [LICENSING FEE.] The licensing fee for 
        persons licensed pursuant to sections 326.83 to 326.991 is $75 
        per year.  The commissioner may adjust the fees under section 
        16A.1285 to recover the costs of administration and 
        enforcement.  The fees must be limited to the cost of license 
        administration and enforcement and must be deposited in the 
        state treasury and credited to the general fund.  A fee of $25 
        will be charged for a duplicate license or an amended license 
        reflecting a change of business name, address, or qualifying 
        person. 
           Sec. 73.  Minnesota Statutes 1996, section 469.305, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [INCENTIVE GRANTS.] (a) An incentive grant 
        is available to businesses located in an enterprise zone that 
        meet the conditions of this section.  Each city designated as an 
        enterprise zone is allocated $3,000,000 to be used to provide 
        grants under this section for the duration of the program.  Each 
        city of the second class designated as an economically depressed 
        area by the United States Department of Commerce is allocated 
        $300,000 to be used to provide grants under this section for the 
        duration of the program.  For fiscal year 1998 and subsequent 
        years, the proration in section 469.31 shall continue to apply 
        until the amount designated in this subdivision is 
        expended.  For the allocation in fiscal year 1998 and subsequent 
        years, the commissioner may use up to 15 percent of the 
        allocation to the city of Minneapolis for a grant to the city of 
        Minneapolis and up to 15 percent of the allocation to the city 
        of St. Paul for a grant to the city of St. Paul, for 
        administration of the program or employment services provided to 
        the employers and employees involved in the incentive grant 
        program under this section. 
           (b) The incentive grant is in an amount equal to 20 percent 
        of the wages paid to an employee, not to exceed $5,000 per 
        employee per calendar year.  The incentive grant is available to 
        an employer for a zone resident employed in the zone at 
        full-time wage levels of not less than 170 percent of minimum 
        wage 110 percent of the federal poverty level for a family of 
        four, as determined by the United States Department of 
        Agriculture.  The incentive grant is not available to workers 
        employed in construction or employees of financial institutions, 
        gambling enterprises, public utilities, sports, fitness, and 
        health facilities, or racetracks.  The employee must be employed 
        at that rate at the time the business applies for a grant, and 
        must have been employed for at least one year at the business.  
        A grant may be provided only for new jobs; for purposes of this 
        section, a "new job" is a job that did not exist in Minnesota 
        before May 6, 1994.  The incentive grant authority is available 
        for the five calendar years after the application has been 
        approved to the extent the allocation to the city remains 
        available to fund the grants, and if the city certifies to the 
        commissioner on an annual basis that the business is in 
        compliance with the plan to recruit, hire, train, and retain 
        zone residents.  The employer may designate an organization that 
        provides employment services to receive all or a portion of the 
        employer's incentive grant. 
           Sec. 74.  [REPEALER.] 
           Minnesota Statutes 1996, sections 116J.581; and 116J.990, 
        subdivision 7, are repealed. 
           Sec. 75.  [EFFECTIVE DATE.] 
           Section 35 is effective the day following final enactment. 
                                   ARTICLE 2 
                         PETROLEUM TANK RELEASE CLEANUP 
           Section 1.  Minnesota Statutes 1996, section 115B.03, 
        subdivision 5, is amended to read: 
           Subd. 5.  [EMINENT DOMAIN.] (a) The state, an agency of the 
        state, or a political subdivision is not a responsible person 
        under this section solely as a result of the acquisition of 
        property, or as a result of providing funds for the acquisition 
        of such property either through loan or grant, if the property 
        was acquired by the state, an agency of the state, or a 
        political subdivision that acquires property (1) through 
        exercise of the power of eminent domain, or (2) through 
        negotiated purchase in lieu of, or after filing a petition for 
        the taking of the property through eminent domain, or (3) after 
        adopting a redevelopment or development plan under sections 
        469.001 to 469.134 describing the property and stating its 
        intended use and the necessity of its taking is not a 
        responsible person under this section solely as a result of the 
        acquisition of the property, (4) after adopting a layout plan 
        for highway development under sections 161.15 to 161.241 
        describing the property and stating its intended use and the 
        necessity of its taking, or (5) through the use of a loan to 
        purchase right-of-way in the seven-county metropolitan area 
        under section 473.167.  
           (b) A person who acquires property from the state, an 
        agency of the state, or a political subdivision, is not a 
        responsible person under this section solely as a result of the 
        acquisition of property if the property was acquired by the 
        state, agency, or political subdivision through exercise of the 
        power of eminent domain or by negotiated purchase after filing a 
        petition for the taking of the property through eminent domain 
        or, after adopting a redevelopment or development plan under 
        sections 469.001 to 469.134 describing the property and stating 
        its intended use and the necessity of its taking, or after 
        adopting a layout plan for highway development under sections 
        161.15 to 161.241 describing the property and stating its 
        intended use and the necessity of its taking. 
           Sec. 2.  Minnesota Statutes 1996, section 115C.021, is 
        amended by adding a subdivision to read: 
           Subd. 3a.  [EMINENT DOMAIN.] (a) The department of 
        transportation is not responsible for a release from a tank 
        under this section solely as a result of the acquisition of 
        property or as a result of providing funds for the acquisition 
        of such property either through loan or grant, if the property 
        was acquired by the department through exercise of the power of 
        eminent domain, through negotiated purchase in lieu of or after 
        filing a petition for the taking of the property through eminent 
        domain, or after adopting a layout plan for highway development 
        under sections 161.15 to 161.241 describing the property and 
        stating its intended use and the necessity of its taking.  
           (b) A person who acquires property from the department, 
        other than property acquired through a land exchange, is not a 
        responsible person under this section solely as a result of the 
        acquisition of property if the property was acquired by the 
        department through exercise of the power of eminent domain, by 
        negotiated purchase after filing a petition for the taking of 
        the property through eminent domain, or after adopting a layout 
        plan for highway development under sections 161.15 to 161.241 
        describing the property and stating its intended use and the 
        necessity of its taking. 
           Sec. 3.  Minnesota Statutes 1996, section 115C.03, 
        subdivision 9, is amended to read: 
           Subd. 9.  [REQUESTS FOR REVIEW, INVESTIGATION, AND 
        OVERSIGHT.] (a) The commissioner may, upon request:  
           (1) assist in determining whether a release has occurred; 
        and 
           (2) assist in or supervise the development and 
        implementation of reasonable and necessary corrective actions; 
        and 
           (3) assist in or supervise the investigation, development, 
        and implementation of actions to minimize, eliminate, or clean 
        up petroleum contamination at sites where it is not certain that 
        the contamination is attributable to a release.  
           (b) Assistance may include review of agency records and 
        files and review and approval of a requester's investigation 
        plans and reports and corrective action plans and implementation.
           (c) Assistance may include the issuance of a written 
        determination that an owner or prospective buyer of real 
        property will not be a responsible person under section 
        115C.021, if the commissioner finds the release came from a tank 
        not located on the property.  The commissioner may also issue a 
        written confirmation that the real property was the site of a 
        release and that the tank from which the release occurred has 
        been removed or that the agency has issued a site closure letter 
        and has not revoked that status.  The issuance of the written 
        determination or confirmation applies to tanks not on the 
        property or removed only and does not affect liability for 
        releases from tanks that are on the property at the time of 
        purchase.  The commissioner may also issue site closure letters 
        and nonresponsible person determinations for sites contaminated 
        by petroleum where it is not certain that the contamination is 
        attributable to a release.  The written determination or 
        confirmation extends to the successors and assigns of the person 
        to whom it originally applied, if the successors and assigns are 
        not otherwise responsible for the release. 
           (d) The person requesting assistance under this subdivision 
        shall pay the agency for the agency's cost, as determined by the 
        commissioner, of providing assistance.  Money received by the 
        agency for assistance under this subdivision must be deposited 
        in the state treasury and credited to an account in the special 
        revenue fund.  Money in this account is annually appropriated to 
        the commissioner for purposes of administering the subdivision. 
           Sec. 4.  Minnesota Statutes 1996, section 115C.08, 
        subdivision 4, is amended to read: 
           Subd. 4.  [EXPENDITURES.] (a) Money in the fund may only be 
        spent: 
           (1) to administer the petroleum tank release cleanup 
        program established in this chapter; 
           (2) for agency administrative costs under sections 116.46 
        to 116.50, sections 115C.03 to 115C.06, and costs of corrective 
        action taken by the agency under section 115C.03, including 
        investigations; 
           (3) for costs of recovering expenses of corrective actions 
        under section 115C.04; 
           (4) for training, certification, and rulemaking under 
        sections 116.46 to 116.50; 
           (5) for agency administrative costs of enforcing rules 
        governing the construction, installation, operation, and closure 
        of aboveground and underground petroleum storage tanks; 
           (6) for reimbursement of the harmful substance compensation 
        account under subdivision 5 and section 115B.26, subdivision 4; 
           (7) for administrative and staff costs as set by the board 
        to administer the petroleum tank release program established in 
        this chapter; and 
           (8) for corrective action performance audits under section 
        115C.093; and 
           (9) for contamination cleanup grants, as provided in 
        paragraph (c). 
           (b) Except as provided in paragraph (c), money in the fund 
        is appropriated to the board to make reimbursements or payments 
        under this section. 
           (c) $6,200,000 is annually appropriated from the fund to 
        the commissioner of trade and economic development for 
        contamination cleanup grants under section 116J.554, provided 
        that money appropriated in this paragraph may be used only for 
        cleanup costs attributable to petroleum contamination, as 
        determined by the commissioner of the pollution control agency. 
        Of this amount, the commissioner may spend up to $120,000 
        annually for administration of the contamination cleanup grant 
        program. 
           Sec. 5.  Minnesota Statutes 1996, section 115C.09, 
        subdivision 3, is amended to read: 
           Subd. 3.  [REIMBURSEMENTS; SUBROGATION; APPROPRIATION.] (a) 
        The board shall reimburse an eligible applicant from the fund in 
        the following amounts: 
           (1) 90 percent of the total reimbursable costs on the first 
        $250,000 and 75 percent on any remaining costs in excess of 
        $250,000 on a site; 
           (2) for corrective actions at a residential site used as a 
        permanent residence at the time the release was discovered, 92.5 
        percent of the total reimbursable costs on the first $100,000 
        and 100 percent of any remaining costs in excess of $100,000; or 
           (3) 90 percent of the total reimbursable costs on the first 
        $250,000 and 100 percent of the cumulative total reimbursable 
        costs in excess of $250,000 at all sites in which the 
        responsible person had interest, and for which the commissioner 
        has not issued a closure letter as of April 3, 1996, if the 
        responsible person dispensed less than 1,000,000 gallons of 
        petroleum at each location in each of the last three calendar 
        years that the responsible person dispensed petroleum at the 
        location and: 
           (i) has owned no more than three locations in the state at 
        which motor fuel was dispensed into motor vehicles and has 
        discontinued operation of all petroleum retail operations; or 
           (ii) has owned no more than one location in the state at 
        which motor fuel was dispensed into motor vehicles.; or 
           (4) With respect to projects begun on or after January 1, 
        1997, 90 percent of the total amount of all of the following 
        costs, regardless of whether a release has occurred at the 
        site:  tank removal, closure in place, backfill, resurfacing, 
        utility service restoration, and, if a release has occurred at 
        the site, any reimbursable costs under subdivision 1.  This 
        clause applies only if the tank or tanks involved are 
        underground tanks, and if the responsible person dispensed less 
        than 400,000 gallons of motor fuel during the last year in which 
        petroleum products were dispensed to the public at the location, 
        and the responsible person owns no more than one location in 
        this or any other state at which motor fuel was dispensed into 
        motor vehicles or watercraft.  This clause expires December 31, 
        1999. 
           Not more than $1,000,000 may be reimbursed for costs 
        associated with a single release, regardless of the number of 
        persons eligible for reimbursement, and not more than $2,000,000 
        may be reimbursed for costs associated with a single tank 
        facility. 
           (b) A reimbursement may not be made from the fund under 
        this chapter until the board has determined that the costs for 
        which reimbursement is requested were actually incurred and were 
        reasonable. 
           (c) When an applicant has obtained responsible competitive 
        bids or proposals according to rules promulgated under this 
        chapter prior to June 1, 1995, the eligible costs for the tasks, 
        procedures, services, materials, equipment, and tests of the low 
        bid or proposal are presumed to be reasonable by the board, 
        unless the costs of the low bid or proposal are substantially in 
        excess of the average costs charged for similar tasks, 
        procedures, services, materials, equipment, and tests in the 
        same geographical area during the same time period. 
           (d) When an applicant has obtained a minimum of two 
        responsible competitive bids or proposals on forms prescribed by 
        the board and where the rules promulgated under this chapter 
        after June 1, 1995, designate maximum costs for specific tasks, 
        procedures, services, materials, equipment and tests, the 
        eligible costs of the low bid or proposal are deemed reasonable 
        if the costs are at or below the maximums set forth in the rules.
           (e) Costs incurred for change orders executed as prescribed 
        in rules promulgated under this chapter after June 1, 1995, are 
        presumed reasonable if the costs are at or below the maximums 
        set forth in the rules, unless the costs in the change order are 
        above those in the original bid or proposal or are 
        unsubstantiated and inconsistent with the process and standards 
        required by the rules. 
           (f) A reimbursement may not be made from the fund in 
        response to either an initial or supplemental application for 
        costs incurred after June 4, 1987, that are payable under an 
        applicable insurance policy, except that if the board finds that 
        the applicant has made reasonable efforts to collect from an 
        insurer and failed, the board shall reimburse the applicant. 
           (g) If the board reimburses an applicant for costs for 
        which the applicant has insurance coverage, the board is 
        subrogated to the rights of the applicant with respect to that 
        insurance coverage, to the extent of the reimbursement by the 
        board.  The board may request the attorney general to bring an 
        action in district court against the insurer to enforce the 
        board's subrogation rights.  Acceptance by an applicant of 
        reimbursement constitutes an assignment by the applicant to the 
        board of any rights of the applicant with respect to any 
        insurance coverage applicable to the costs that are reimbursed.  
        Notwithstanding this paragraph, the board may instead request a 
        return of the reimbursement under subdivision 5 and may employ 
        against the applicant the remedies provided in that subdivision, 
        except where the board has knowingly provided reimbursement 
        because the applicant was denied coverage by the insurer. 
           (h) Money in the fund is appropriated to the board to make 
        reimbursements under this chapter.  A reimbursement to a state 
        agency must be credited to the appropriation account or accounts 
        from which the reimbursed costs were paid. 
           (i) The board may reduce the amount of reimbursement to be 
        made under this chapter if it finds that the applicant has not 
        complied with a provision of this chapter, a rule or order 
        issued under this chapter, or one or more of the following 
        requirements: 
           (1) the agency was given notice of the release as required 
        by section 115.061; 
           (2) the applicant, to the extent possible, fully cooperated 
        with the agency in responding to the release; and 
           (3) the state and federal rules and regulations applicable 
        to the condition or operation of the tank when the noncompliance 
        caused or failed to mitigate the release. 
           (j) The reimbursement may be reduced as much as 100 percent 
        for failure by the applicant to comply with the requirements in 
        paragraph (i), clauses (1) to (3).  In determining the amount of 
        the reimbursement reduction, the board shall consider:  
           (1) the reasonable determination by the agency of the 
        environmental impact of the noncompliance; 
           (2) whether the noncompliance was negligent, knowing, or 
        willful; 
           (3) the deterrent effect of the award reduction on other 
        tank owners and operators; and 
           (4) the amount of reimbursement reduction recommended by 
        the commissioner. 
           (k) An applicant may assign the right to receive 
        reimbursement to each lender who advanced funds to pay the costs 
        of the corrective action or to each contractor or consultant who 
        provided corrective action services.  An assignment must be made 
        by filing with the board a document, in a form prescribed by the 
        board, indicating the identity of the applicant, the identity of 
        the assignee, the dollar amount of the assignment, and the 
        location of the corrective action.  An assignment signed by the 
        applicant is valid unless terminated by filing a termination 
        with the board, in a form prescribed by the board, which must 
        include the written concurrence of the assignee.  The board 
        shall maintain an index of assignments filed under this 
        paragraph.  The board shall pay the reimbursement to the 
        applicant and to one or more assignees by a multiparty check.  
        The board has no liability to an applicant for a payment under 
        an assignment meeting the requirements of this paragraph. 
           Sec. 6.  Minnesota Statutes 1996, section 115C.09, is 
        amended by adding a subdivision to read: 
           Subd. 3e.  [DEPARTMENT OF TRANSPORTATION ELIGIBILITY.] The 
        department of transportation may apply to the board and is 
        eligible for reimbursement of reimbursable costs associated with 
        property that the department has acquired under section 
        115C.021, subdivision 3a, if corrective action pursuant to a 
        plan reviews and approved by the commissioner of the pollution 
        control agency in accordance with applicable rules and guidance 
        documents was taken on the entire property so acquired.  
        Notwithstanding subdivision 3, paragraph (a), the department of 
        transportation shall receive 100 percent of total reimbursable 
        costs associated with a single release up to $1,000,000. 
           Sec. 7.  Minnesota Statutes 1996, section 115C.13, is 
        amended to read: 
           115C.13 [REPEALER.] 
           Sections 115C.01, 115C.02, 115C.021, 115C.03, 115C.04, 
        115C.045, 115C.05, 115C.06, 115C.065, 115C.07, 115C.08, 115C.09, 
        115C.092, 115C.10, 115C.11, and 115C.12, are repealed effective 
        June 30, 2000 2005. 
           Sec. 8.  Minnesota Statutes 1996, section 116J.552, 
        subdivision 4, is amended to read: 
           Subd. 4.  [DEVELOPMENT AUTHORITY.] "Development authority" 
        includes a statutory or home rule charter city, county, housing 
        and redevelopment authority, economic development authority, and 
        a port authority. 
           Sec. 9.  [REPORT ON COORDINATION OF CLEANUP AND 
        REDEVELOPMENT OF CONTAMINATED PROPERTIES.] 
           The commissioner of trade and economic development, in 
        consultation with the commissioners of the pollution control 
        agency, commerce, agriculture, and revenue, and the director of 
        the metropolitan council, shall issue a report to the 
        legislature by January 15, 1998, which includes: 
           (1) recommendations from the agencies with regard to 
        establishing and administering an office to provide for the 
        coordination of programs providing state and regional assistance 
        in the cleanup and redevelopment of contaminated properties, as 
        well as any legislative recommendations to provide for an 
        effective and efficient office; and 
           (2) a plan for additional changes to existing contaminated 
        property programs, including the consolidation of programs, to 
        streamline applications for assistance, ensure efficient and 
        effective administration of these programs, and provide for an 
        overall, coordinated state policy for the cleanup and 
        redevelopment of contaminated properties. 
           Sec. 10.  [EFFECTIVE DATE.] 
           Sections 1 to 4 and 6 to 9 are effective July 1, 1997.  
        Section 5 is effective retroactive to January 1, 1997. 
                                   ARTICLE 3 
             MINNESOTA EMPLOYMENT AND ECONOMIC DEVELOPMENT PROGRAM 
           Section 1.  [268.6715] [1997 MINNESOTA EMPLOYMENT AND 
        ECONOMIC DEVELOPMENT PROGRAM.] 
           The 1997 Minnesota employment and economic development 
        program is established to assist businesses and communities to 
        create jobs that provide the wages, benefits, and on-the-job 
        training opportunities necessary to help low-wage workers and 
        people transitioning from public assistance to get and retain 
        jobs, and to help their families to move out of poverty.  
        Employment obtained under this program is not excluded from the 
        definition of "employment" by section 268.04, subdivision 12, 
        clause 10, paragraph (d). 
           Sec. 2.  Minnesota Statutes 1996, section 268.672, 
        subdivision 6, is amended to read: 
           Subd. 6.  [ELIGIBLE JOB APPLICANT.] "Eligible job 
        applicant" means a person who:  (1) has been a resident of this 
        state for at least one month, (2) is unemployed, (3) is not 
        receiving and is not qualified to receive reemployment insurance 
        or workers' compensation, and (4) is determined to be likely to 
        be available for employment by an eligible employer for the 
        duration of the job.  
           For the purposes of this subdivision, a farmer or any 
        member of a farm family household who can demonstrate severe 
        household financial need must be considered unemployed. 
           (1) has attempted to secure a nonsubsidized job by 
        completing comprehensive job readiness and is: 
           (i) a temporary assistance for needy families (TANF) 
        recipient who is making good faith efforts to comply with the 
        family support agreement as defined under section 256.032, 
        subdivision 7a, but has failed to find suitable employment; or 
           (ii) a family general assistance recipient; 
           (2) is a member of a household supported only by: 
           (i) a low-income worker; or 
           (ii) a person who is underemployed as that term is defined 
        in section 268.61, subdivision 5; or 
           (3) is a member of a family that is eligible for, but not 
        receiving public assistance. 
           Sec. 3.  Minnesota Statutes 1996, section 268.672, is 
        amended by adding a subdivision to read: 
           Subd. 13.  [COMPREHENSIVE JOB READINESS.] "Comprehensive 
        job readiness" means a job search program administered by a 
        county, its designee, or workforce service area that teaches 
        self-esteem, marketable work habits, job-seeking skills, and 
        life-management skills, and may include job retention services. 
           Sec. 4.  Minnesota Statutes 1996, section 268.672, is 
        amended by adding a subdivision to read. 
           Subd. 14.  [ELIGIBLE PROGRAM PARTICIPANT.] "Eligible 
        program participant" means an eligible job applicant who is 
        participating in comprehensive job readiness, subsidized 
        employment, or job retention services.  An individual who has 
        been dismissed for cause or quit subsidized employment without 
        good cause is not eligible for subsidized employment under the 
        program. 
           Sec. 5.  Minnesota Statutes 1996, section 268.672, is 
        amended by adding a subdivision to read:  
           Subd. 15.  [EMPLOYER.] "Employer" means a private or public 
        employer that: 
           (1) agrees to create a job that is long term and full time, 
        except a private nonprofit or public employer may provide a 
        temporary job; 
           (2) pays a wage of at least $2 per hour higher than the 
        minimum wage; and 
           (3) agrees to retain a participant at the same wage and 
        benefit level of the wage subsidy period after satisfactory 
        completion of the subsidy period. 
           Sec. 6.  Minnesota Statutes 1996, section 268.672, is 
        amended by adding a subdivision to read: 
           Subd. 16.  [FULL TIME.] "Full time" means 40 hours of work 
        per week or any other schedule considered full time by the 
        employer.  In the case of a temporary assistance to needy 
        families recipient, "full time" means 40 hours comprised of the 
        number of hours of work needed to meet the recipient's work 
        requirement plus the number of hours spent in a training or 
        education program.  The employer is required to pay and is 
        eligible to receive the subsidy only for hours worked by the 
        participant for the employer.  
           Sec. 7.  Minnesota Statutes 1996, section 268.672, is 
        amended by adding a subdivision to read: 
           Subd. 17.  [JOB RETENTION SERVICES.] "Job retention 
        services" means assistance that would not otherwise be provided 
        to an eligible job applicant with child care, transportation, 
        job coaching, employer-employee mediation, and other forms of 
        support services to help an applicant to transition to 
        employment and retain a job. 
           Sec. 8.  Minnesota Statutes 1996, section 268.672, is 
        amended by adding a subdivision to read: 
           Subd. 18.  [LOW-INCOME WORKER.] "Low-income worker" means a 
        worker who earns no more than $1 per hour more than the minimum 
        wage. 
           Sec. 9.  Minnesota Statutes 1996, section 268.672, is 
        amended by adding a subdivision to read: 
           Subd. 19.  [MINIMUM WAGE.] "Minimum wage" means the greater 
        of (1) the federal minimum wage in effect on or after September 
        1, 1997, and (2) the state minimum wage under section 177.24. 
           Sec. 10.  Minnesota Statutes 1996, section 268.672, is 
        amended by adding a subdivision to read: 
           Subd. 20.  [PROGRAM.] "Program" means the 1997 Minnesota 
        employment and economic development program. 
           Sec. 11.  Minnesota Statutes 1996, section 268.672, is 
        amended by adding a subdivision to read: 
           Subd. 21.  [WORKFORCE SERVICE AREA.] "Workforce service 
        area" means a service delivery area designated by the governor 
        under the Job Training Partnership Act, United States Code, 
        title 29, section 1501, et seq. 
           Sec. 12.  Minnesota Statutes 1996, section 268.673, 
        subdivision 3, is amended to read: 
           Subd. 3.  [DEPARTMENT OF ECONOMIC SECURITY.] The 
        commissioner shall supervise wage subsidies, comprehensive job 
        readiness, and job retention services and shall provide 
        technical assistance to the local service units for the purpose 
        of delivering wage subsidies counties in their delivery.  
           Sec. 13.  Minnesota Statutes 1996, section 268.673, 
        subdivision 4a, is amended to read: 
           Subd. 4a.  [CONTRACTS WITH SERVICE PROVIDERS COUNTIES.] The 
        commissioner shall contract directly with a certified local 
        service provider counties, their designees, or workforce service 
        areas to deliver wage subsidies, comprehensive job readiness, 
        and job retention services if (1) each county served by 
        the provider designee or workforce service area agrees to the 
        contract and knows the amount of wage subsidy money, 
        comprehensive job readiness money, and job retention services 
        money allocated to the county under section 268.6751, and (2) 
        the provider designee or workforce service area agrees to meet 
        regularly with each county being served.  The contracts must 
        require that no more than ten percent of the contract amount be 
        expended for administration. 
           Counties and workforce service areas are encouraged to 
        designate community-based providers of comprehensive job 
        readiness and job retention services. 
           Sec. 14.  Minnesota Statutes 1996, section 268.673, 
        subdivision 5, is amended to read: 
           Subd. 5.  [REPORT.] Each entity county delivering wage 
        subsidies, comprehensive job readiness, and job retention 
        services shall report to the commissioner on a quarterly basis: 
           (1) the number of persons placed in private sector jobs, in 
        temporary public sector jobs, or in other services; 
           (2) the outcome for each participant placed in a private 
        sector job, in a temporary public sector job, or in another 
        service; 
           (3) the number and type of employers employing persons 
        under the program; 
           (4) the amount of money spent in each local service unit 
        county for wages, comprehensive job readiness, and job retention 
        services for each type of employment and each type of other 
        expense; 
           (5) the age, educational experience, family status, gender, 
        priority group status, race, and work experience of each person 
        in the program; 
           (6) the amount of wages received by persons while in the 
        program and 60 days after completing the program; and 
           (7) for each classification of persons described in clause 
        (5), the outcome of the wage subsidy placement, the 
        comprehensive job readiness, and the job retention services, 
        including length of time employed; nature of employment, whether 
        private sector, temporary public sector, or other service; and 
        the hourly wages; and 
           (8) any other information requested by the commissioner.  
        Each report must include cumulative information, as well as 
        information for each quarter. 
           Data collected on individuals under this subdivision are 
        private data on individuals as defined in section 13.02, 
        subdivision 12, except that summary data may be provided under 
        section 13.05, subdivision 7. 
           Sec. 15.  Minnesota Statutes 1996, section 268.6751, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [WAGE SUBSIDIES ALLOCATION.] Wage subsidy 
        money, comprehensive job readiness money, and job retention 
        services money must be allocated to local service units in the 
        following manner: 
           (a) The commissioner shall allocate 87.5 percent of the 
        funds available for allocation to local service units for wage 
        subsidy programs as follows:  the proportion of the wage subsidy 
        money available to each local service unit must be based on the 
        number of unemployed persons in the local service unit for the 
        most recent six-month period and the number of work readiness 
        assistance cases and aid to families with dependent children 
        cases in the local service unit for the most recent six-month 
        period. 
           (b) Five percent of the money available for wage subsidy 
        programs must be allocated at the discretion of the commissioner.
           (c) Seven and one-half percent of the money available for 
        wage subsidy programs must be allocated at the discretion of the 
        commissioner to provide jobs for residents of federally 
        recognized Indian reservations.  
           (d) counties in proportion to the number of persons living 
        at or below the federal poverty threshold in each county.  By 
        December 31 of each fiscal year, providers and local service 
        units counties, designees, and workforce service areas receiving 
        wage subsidy money, comprehensive job readiness money, and job 
        retention services money shall report to the commissioner on the 
        use of allocated funds.  The commissioner shall reallocate 
        uncommitted funds for each fiscal year according to the formula 
        in paragraph (a) this subdivision. 
           Sec. 16.  Minnesota Statutes 1996, section 268.677, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [WAGE SUBSIDY, COMPREHENSIVE JOB READINESS, 
        AND JOB RETENTION SERVICES MONEY.] To the extent allowable under 
        federal and state law, wage subsidy money, comprehensive job 
        readiness money, and job retention services money must be pooled 
        and used in combination with money from other employment and 
        training services or income maintenance and support 
        services.  At least 75 percent of the money appropriated for 
        wage subsidies must be used to pay wages for eligible job 
        applicants.  For each eligible job applicant employed, the 
        maximum state contribution from any combination of public 
        assistance grant diversion and employment and training services 
        governed under this chapter, including wage subsidies, is $4 per 
        hour for wages and $1 per hour for fringe benefits.  The use of 
        wage subsidies is limited as follows:  
           (a) The wage subsidy is $2.50 per hour for wages and up to 
        $1 per hour for reimbursement of employer-paid benefits for 
        health care, child care, or transportation expenses for 
        employers paying an eligible program participant an hourly wage 
        that is $2 to $2.99 per hour higher than the minimum wage. 
           (b) The wage subsidy is $4 per hour for wages and up to $1 
        per hour for reimbursement of employer paid benefits for health 
        care, child care, or transportation expenses for employers 
        paying an eligible program participant an hourly wage that is $3 
        or more per hour higher than the minimum wage. 
           (c) The wage subsidy for each an eligible job applicant 
        placed in private or nonprofit employment, the state may 
        subsidize wages may be paid for a maximum of 1,040 hours over a 
        period of 26 weeks.  Employers are encouraged to use money from 
        other sources to provide increased wages to applicants they 
        employ.  Job retention services may be provided to an eligible 
        program participant over a period of 78 weeks.  
           (b) For each eligible job applicant participating in a job 
        training program and placed in private sector employment, the 
        state may subsidize wages for a maximum of 1,040 hours over a 
        period of 52 weeks.  
           (c) For each eligible job applicant placed in a community 
        investment program job, the state may provide wage subsidies for 
        a maximum of 780 hours over a maximum of 26 weeks.  For an 
        individual placed in a community investment program job, the 
        county share of the wage subsidy shall be 25 percent.  Counties 
        may use money from sources other than public assistance and wage 
        subsidies, including private grants, contributions from 
        nonprofit corporations and other units of government, and other 
        state money, to increase the wages or hours of persons employed 
        in community investment programs.  
           (d) Notwithstanding the limitations of paragraphs (a) and 
        (b), money may be used to provide a state contribution for wages 
        and fringe benefits in private sector jobs for eligible 
        applicants who had previously held temporary jobs with eligible 
        government and nonprofit agencies or who had previously held 
        community investment program jobs for which a state contribution 
        had been made, and who are among the priority groups established 
        in section 268.676, subdivision 1.  The use of money under this 
        paragraph shall be for a maximum of 1,040 hours over a maximum 
        period of 26 weeks per job applicant. An employer of more than 
        four full-time employees shall receive wage subsidies for no 
        more than 25 percent of the employer's full-time workforce. 
           Sec. 17.  Minnesota Statutes 1996, section 268.681, is 
        amended to read: 
           268.681 [BUSINESS EMPLOYMENT.] 
           Subdivision 1.  [ELIGIBLE BUSINESSES.] A business employer 
        is an eligible employer if it enters into a written contract, 
        signed and subscribed to under oath, with a local service 
        unit county or its contractor designee, containing assurances 
        that: 
           (a) funds received by a business shall be used only as 
        permitted under sections 268.672 to 268.682; 
           (b) the business has submitted information to the local 
        service unit county or, its contractor designee, or 
        workforce service area (1) describing the duties and proposed 
        compensation of each employee proposed to be hired under the 
        program; and (2) demonstrating that, with the funds provided 
        under sections 268.672 to 268.682, the business is likely to 
        succeed and continue to employ persons hired using wage 
        subsidies; 
           (c) the business will use funds exclusively for 
        compensation and fringe benefits of eligible job applicants and 
        will provide employees hired with these funds with fringe 
        benefits and other terms and conditions of employment comparable 
        to those provided to other employees of the business who do 
        comparable work; 
           (d) the funds are necessary to allow the business to begin, 
        or to employ additional people, expand, or to fill other open 
        positions but not to fill positions which would be filled even 
        in the absence of wage subsidies; 
           (e) the business will cooperate with the local service unit 
        county and the commissioner in collecting data to assess the 
        result of wage subsidies and the effectiveness of comprehensive 
        job readiness and job retention services; and 
           (f) the business is in compliance with all applicable 
        affirmative action, fair labor, health, safety, and 
        environmental standards.  
           Subd. 1a.  [INELIGIBLE BUSINESSES.] A business employer is 
        ineligible to participate in the program and is ineligible to 
        receive wage subsidy money if:  
           (1) the business is a temporary employment agency; or 
           (2) the business is a restaurant.  
           For purposes of this subdivision, "temporary employment 
        agency" means a business that hires people to work in temporary 
        positions for employers who are clients of that business.  
           For purposes of this subdivision, "restaurant" includes, 
        but is not limited to, fast food restaurants. 
           Subd. 1b.  [DISCHARGE OF PROGRAM PARTICIPANT.] A program 
        participant discharged from employment may challenge the 
        discharge as a violation of subdivision 1. 
           Subd. 2.  [PRIORITIES.] (a) In allocating funds among 
        eligible businesses, the local service unit county or its 
        contractor designee shall give priority to: 
           (1) businesses that will provide applicants with on-the-job 
        training and marketable job skills; 
           (2) businesses engaged in manufacturing; 
           (2) (3) nonretail businesses that are small businesses as 
        defined in section 645.445; and 
           (3) (4) businesses that export products outside the state. 
           (b) In addition to paragraph (a), a local service unit 
        county must give priority to businesses that: 
           (1) have a high potential for growth and long-term job 
        creation; 
           (2) are labor intensive; 
           (3) make high use of local and Minnesota resources; 
           (4) are under ownership of women and minorities; 
           (5) make high use of new technology; 
           (6) produce energy conserving materials or services or are 
        involved in development of renewable sources of energy; and 
           (7) have their primary place of business in Minnesota.  
           Subd. 3.  [PAYBACK.] (a) A business receiving wage 
        subsidies shall repay 70 percent of the amount initially 
        received for each eligible job applicant employed, if the 
        employee does not continue in the employment of the business 
        beyond the six-month subsidized period.  If the employee 
        continues in the employment of the business for one year or 
        longer after the six-month subsidized period, the business need 
        not repay any of the funds received for that employee's wages.  
        If the employee continues in the employment of the business for 
        a period of less than one year after the expiration of the 
        six-month subsidized period, the business shall receive a 
        proportional reduction in the amount it must repay. 
           (b) If an employer dismisses an employee for good cause and 
        works in good faith with the local service unit or its 
        contractor to employ and train another person referred by 
        the local service unit county or, its contractor 
        designee, or workforce service area, the payback formula shall 
        apply as if the original person had continued in employment.  
           (c) If a business receiving funds under the program reduces 
        the hourly wage after the six-month subsidy, the business must 
        repay a portion of the subsidy in direct proportion to the 
        amount that the hourly wage is reduced. 
           (d) A repayment schedule shall be negotiated and agreed to 
        by the local service unit county and the business prior to the 
        disbursement of the funds and is subject to renegotiation.  The 
        local service unit county shall forward 25 percent of the 
        payments received under this subdivision to the commissioner on 
        a monthly basis and shall retain the remaining 75 percent for 
        local program expenditures.  Notwithstanding section 268.677, 
        subdivision 2, the local service unit may use up to 20 percent 
        of its share of the funds returned retain payments received 
        under this subdivision for any administrative costs associated 
        with the collection of the funds under this subdivision and for 
        entering into new wage subsidy agreements.  At least 80 percent 
        of the local service unit's share of the funds returned under 
        this subdivision must be used as provided in section 268.677.  
        The commissioner shall deposit payments forwarded to the 
        commissioner under this subdivision in the general fund. 
           (e) If an employer is more than 60 days late in repaying a 
        subsidy as required in this subdivision, the county may engage a 
        licensed collection agency or refer the matter to the department 
        for collection under chapter 16D. 
           Subd. 4.  [SUCCESSORSHIP.] A contract entered into by an 
        owner, employer, or manager under the wage subsidy program is 
        legally binding on any successor owner, employer, or manager. 
           Sec. 18.  [268.6811] [FUND COMBINATIONS.] 
           To the extent allowable under federal law, money for job 
        training under Title II a of the Job Training Partnership Act, 
        United States Code, title 29, section 1501 et seq. and money 
        from other employment and training services or income 
        maintenance and support services, except services administered 
        under chapter 116L, may be pooled and used in combination with 
        money to provide subsidized employment, comprehensive job 
        readiness and job retention services under Minnesota Statutes, 
        section 268.6715 to 268.682. 
           Sec. 19.  [REPEALER.] 
           Minnesota Statutes 1996, sections 268.672, subdivision 4; 
        268.673, subdivision 6; 268.676; 268.677, subdivisions 2 and 3; 
        268.678; and 268.679, subdivision 3, are repealed. 
                                   ARTICLE 4 
                                    HOUSING 
           Section 1.  [LEAD HAZARD REDUCTION; ADVISORY TASK FORCE.] 
           Subdivision 1.  [PURPOSE; DUTIES.] An advisory task force 
        on lead hazard reduction is established to: 
           (1) study and propose a program to certify residential 
        rental property as lead-safe; 
           (2) study and propose essential maintenance practices and 
        standard treatments to ensure that a residence remains lead-safe 
        after certification; 
           (3) identify the current barriers that cause lead liability 
        exclusion riders to be added to property owner insurance 
        liability policies; 
           (4) identify the legal rights and responsibilities of 
        landlords to provide lead-safe housing and the legal rights and 
        responsibilities of both landlords and tenants to maintain 
        lead-safe property; and 
           (5) study the legal liability of landlords and tenants when 
        a child becomes lead poisoned and propose methods to reduce 
        property owner liability while still protecting the legal rights 
        of children who become lead poisoned. 
           The task force shall report its findings and proposals to 
        the 1998 legislature. 
           Subd. 2.  [MEMBERSHIP.] Members of the advisory task force 
        on lead hazard reduction are as follows: 
           (1) the chairs, or the chairs' designees, of the house of 
        representatives housing and housing finance division, and the 
        family and early childhood education finance division; 
           (2) the chairs, or the chairs' designees, of the senate 
        jobs, energy, and community development committee, and the 
        family and early childhood education finance division; 
           (3) one house member from the minority caucus, appointed by 
        the speaker, and one senator from the minority caucus, appointed 
        by the subcommittee on committees of the committee on rules and 
        administration; 
           (4) the commissioner of commerce or the commissioner's 
        designee; 
           (5) the commissioner of the housing finance agency or the 
        commissioner's designee; 
           (6) the commissioner of health or the commissioner's 
        designee; and 
           (7) up to 15 members appointed jointly by the commissioner 
        of commerce and the commissioner of the housing finance agency 
        to represent the following interests:  landlords, tenants, 
        attorneys practicing landlord tenant law, parents of children 
        with lead poisoning, swab teams, insurers, the education 
        association, family physicians and pediatricians, realtors, the 
        Children's Defense Fund, the federal Environmental Protection 
        Agency, building inspectors, the paint and coatings industry, 
        and local boards of health. 
           Subd. 3.  [CHAIR.] The commissioners of the housing finance 
        agency and the department of commerce shall convene the first 
        meeting of the advisory task force.  At the advisory task 
        force's first meeting, the members shall select a member to 
        serve as chair. 
           Subd. 4.  [TECHNICAL ASSISTANCE.] The commissioners of 
        health, commerce, and the housing finance agency and the 
        attorney general shall provide assistance to the advisory task 
        force, including technical assistance relating to lead hazards 
        and the reduction of lead hazards, insurance, landlord-tenant 
        law, and other assistance as requested by the task force. 
           Subd. 5.  [EXPENSES; ADMINISTRATIVE SUPPORT.] Members of 
        the advisory task force must receive per diem and expenses, in 
        the amount provided in Minnesota Statutes, section 15.059, 
        subdivision 3.  Members' compensation and other administrative 
        expenses of the advisory task force must be paid for by the 
        Minnesota housing finance agency. 
           Subd. 6.  [EFFECTIVE DATE; EXPIRATION.] This section is 
        effective the day following final enactment and expires June 30, 
        1998. 
           Sec. 2.  Minnesota Statutes 1996, section 268.38, 
        subdivision 7, is amended to read: 
           Subd. 7.  [FUNDING COORDINATION.] Grant recipients shall 
        combine funds awarded under this section with other funds from 
        public and private sources.  Programs receiving funds under this 
        section are also eligible for assistance under section 462A.05, 
        subdivision 20.  
           Sec. 3.  [366.152] [CONDITIONAL USES.] 
           A manufactured home park, as defined in section 327.14, 
        subdivision 3, is a conditional use in a zoning district that 
        allows the construction or placement of a building used or 
        intended to be used by two or more families. 
           Sec. 4.  Minnesota Statutes 1996, section 394.25, is 
        amended by adding a subdivision to read: 
           Subd. 3b.  [CONDITIONAL USES.] A manufactured home park, as 
        defined in section 327.14, subdivision 3, is a conditional use 
        in a zoning district that allows the construction or placement 
        of a building used or intended to be used by two or more 
        families. 
           Sec. 5.  Minnesota Statutes 1996, section 462.357, is 
        amended by adding a subdivision to read: 
           Subd. 1b.  [CONDITIONAL USES.] A manufactured home park, as 
        defined in section 327.14, subdivision 3, is a conditional use 
        in a zoning district that allows the construction or placement 
        of a building used or intended to be used by two or more 
        families. 
           Sec. 6.  Minnesota Statutes 1996, section 462A.05, 
        subdivision 14d, is amended to read: 
           Subd. 14d.  [ACCESSIBILITY LOAN PROGRAM.] Rehabilitation 
        loans authorized under subdivision 14 may be made to eligible 
        persons and families households without limitations relating to 
        the maximum incomes of the borrowers. 
           A person or family household is eligible to receive an 
        accessibility loan under the following conditions: 
           (1) the borrower or a member of an individual residing in 
        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; home has a permanent physical or mental condition 
        that substantially limits one or more major life activities; and 
           (2) home care is appropriate; and 
           (3) the improvement to the housing will enable assist the 
        borrower or a member of the borrower's family to reside 
        household in residing in the housing. 
           Sec. 7.  Minnesota Statutes 1996, section 462A.05, 
        subdivision 30, is amended to read: 
           Subd. 30.  [AGENCY INVESTMENT IN CERTAIN NOTES AND 
        MORTGAGES.] It may invest in, purchase, acquire, and take 
        assignments of existing notes and mortgages not closed for the 
        purpose of sale to the agency, from lenders that are nonprofit 
        or nonprofit entities, as defined in the agency's rules, 
        provided that:  (1) the notes and mortgages evidence loans for 
        the construction, rehabilitation, purchase, improvement, or 
        refinancing of residential housing intended for occupancy and 
        occupied by low- and moderate-income persons and families; and 
        (2) the loan sellers utilize the funds derived from the 
        purchases in accordance with the authority contained in section 
        462A.07, subdivision 12, for the purposes and objectives of 
        sections 462A.02, 462A.03, 462A.05, 462A.07, and 462A.21; and 
        (3) the purchases are subject to security and limitations on the 
        costs and expenses of the loan sellers incidental to the 
        utilization of the purchase proceeds as the agency may 
        determine.  The proceeds of the purchases authorized by this 
        subdivision shall not be subject to the limitations of section 
        462A.21, subdivisions 4k, 6, 9, and 12 6 and 9.  In addition, it 
        may invest in, purchase, acquire, and take assignments of 
        existing federally insured mortgages for multifamily housing, 
        not closed for the purpose of sale to the agency, from any 
        banking institution, savings association, or other lender or 
        financial intermediary approved by the members; provided that 
        the multifamily housing is benefited by contracts for federal 
        housing assistance payments. 
           Sec. 8.  Minnesota Statutes 1996, section 462A.05, 
        subdivision 39, is amended to read: 
           Subd. 39.  [EQUITY TAKE-OUT LOANS.] The agency may make 
        equity take-out loans to owners of section 8 project-based and 
        section 236 rental property upon which the agency holds a first 
        mortgage.  The owner of a section 8 project-based rental 
        property must agree to participate in the section 8 program and 
        extend the low-income affordability restrictions on the housing 
        for the maximum term of the section 8 contract.  The owner of 
        section 236 rental property must agree to participate in the 
        section 236 interest reduction payments program, to extend any 
        existing low-income affordability restrictions on the housing, 
        and to extend any rental assistance payments for the maximum 
        term permitted under the agreement for rental assistance 
        payments.  The equity take-out loan must be secured by a 
        subordinate loan on the property and may include additional 
        appropriate security determined necessary by the agency. 
           Sec. 9.  Minnesota Statutes 1996, section 462A.05, is 
        amended by adding a subdivision to read: 
           Subd. 41.  [DEMONSTRATION GRANTS.] The agency may make 
        demonstration grants to owners or managers of multifamily rental 
        property upon which the agency holds a mortgage for the purpose 
        of developing or coordinating services that promote the tenant's 
        ability to live independently, support the tenant's 
        self-sufficiency, improve the relationship between the tenants 
        and the community, or that otherwise strengthen the community. 
           Sec. 10.  Minnesota Statutes 1996, section 462A.13, is 
        amended to read: 
           462A.13 [BONDS AND NOTES; PURCHASE AND CANCELLATION BY 
        AGENCY.] 
           The agency, subject to such agreements with noteholders or 
        bondholders as may then exist, shall have power out of any funds 
        available therefor to purchase notes or bonds of the agency, 
        which shall thereupon be canceled, either at initial issuance or 
        at a subsequent date, for cancellation or as an investment of 
        funds of the agency until required for its authorized purposes.  
        If so purchased, the notes or bonds shall be purchased at a 
        price not exceeding (a) if the notes or bonds are then 
        redeemable, the redemption price then applicable plus accrued 
        interest to the next interest payment date thereon purchase 
        date, or (b) if the notes or bonds are not redeemable, the 
        redemption price applicable on the first date after such 
        purchase upon which the notes or bonds become subject to 
        redemption plus accrued interest to such the purchase date.  
           Sec. 11.  Minnesota Statutes 1996, 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 
        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.  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 of the units funded by the housing trust fund 
        account must be used for the benefit of 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. 
           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) In making the 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. 12.  Minnesota Statutes 1996, section 462A.205, is 
        amended to read: 
           462A.205 [RENT ASSISTANCE FOR FAMILY STABILIZATION 
        DEMONSTRATION PROJECT.] 
           Subdivision 1.  [FAMILY STABILIZATION DEMONSTRATION 
        PROJECT.] The agency, in consultation with the department of 
        human services, may establish a rent assistance for family 
        stabilization demonstration project.  The purpose of the project 
        is to provide rental assistance to families who, at the time of 
        initial eligibility for rental assistance under this section, 
        were receiving public assistance, and had a caretaker parent 
        participating in a self-sufficiency program and at least one 
        minor child and to provide rental assistance to families who, at 
        the time of initial eligibility for rental assistance under this 
        section, were receiving public assistance, and had a caretaker 
        parent who had earned income and with at least one minor child.  
        The demonstration project is limited to counties with high 
        average housing costs.  The program must offer two options:  a 
        voucher option and a project-based voucher option.  The funds 
        may be distributed on a request for proposal basis.  
           Subd. 2.  [DEFINITIONS.] For the purposes of this section, 
        the following terms have the meanings given them. 
           (a) "Caretaker parent" means a parent, relative caretaker, 
        or minor caretaker as defined by the aid to families with 
        dependent children program, sections 256.72 to 256.87, or its 
        successor program. 
           (b) "County agency" means the agency designated by the 
        county board to implement financial assistance for current 
        public assistance programs and for the Minnesota family 
        investment program statewide. 
           (c) "Counties with high average housing costs" means 
        counties whose average federal section 8 fair market rents as 
        determined by the Department of Housing and Urban Development 
        are in the highest one-third of average rents in the state. 
           (c) (d) "Designated rental property" is rental property (1) 
        that is made available by a self-sufficiency program for use by 
        participating families and meets federal section 8 existing 
        quality standards, or (2) that has received federal, state, or 
        local rental rehabilitation assistance since January 1, 1987, 
        and meets federal section 8 existing housing quality standards. 
           (e) "Earned income" for a family receiving rental 
        assistance under this section means cash or in-kind income 
        earned through the receipt of wages, salary, commissions, profit 
        from employment activities, net profit from self-employment 
        activities, payments made by an employer for regularly accrued 
        vacation or sick leave, and any other profit from activity 
        earned through effort or labor. 
           (f) "Family or participating family" means: 
           (1) a family with a caretaker parent who is participating 
        in a self-sufficiency program and with at least one minor child; 
           (2) a family that, at the time it began receiving rent 
        assistance under this section, had a caretaker parent 
        participating in a self-sufficiency program and had at least one 
        minor child; 
           (3) a family with a caretaker parent who is receiving 
        public assistance and has earned income and with at least one 
        minor child; or 
           (4) a family that, at the time it began receiving rent 
        assistance under this section, had a caretaker parent who had 
        earned income and at least one minor child. 
           (d) (g) "Gross family income" for a family receiving rental 
        assistance under this section means the gross amount of the 
        wages, salaries, social security payments, pensions, workers' 
        compensation, reemployment insurance, public assistance 
        payments, alimony, child support, and income from assets 
        received by the family. 
           (e) (h) "Local housing organization" means the agency of 
        local government responsible for administering the Department of 
        Housing and Urban Development's section 8 existing voucher and 
        certificate program or a nonprofit or for-profit organization 
        experienced in housing management. 
           (f) (i) "Public assistance" means aid to families with 
        dependent children, or its successor program, family general 
        assistance, or its successor program, or family work readiness, 
        or its successor program. 
           (g) (j) "Self-sufficiency program" means a program operated 
        by a certified an employment and training service provider as 
        defined in section 256.736, subdivision 1a, paragraph 
        (e) chapter 256J, an employability program administered by a 
        community action agency, or courses of study at an accredited 
        institution of higher education pursued with at least half-time 
        student status. 
           Subd. 3.  [LOCAL HOUSING ORGANIZATION.] The agency may 
        contract with a local housing organization to administer the 
        rent assistance under this section.  The agency may pay the 
        local housing organization an administrative fee.  The 
        administrative fee may not exceed $40 per unit per month. 
           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 36-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. 
           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. 
           Subd. 5.  [VOUCHER OPTION.] At least one-half of the 
        appropriated funds must be made available for a voucher option.  
        Under the voucher option, the Minnesota housing finance agency, 
        in consultation with the department of human services, will 
        award a number of vouchers to self-sufficiency program 
        administrators for participating families and to county agencies 
        for participating families with earned income.  Families may use 
        the voucher for any rental housing that is certified by the 
        local housing organization as meeting section 8 existing housing 
        quality standards. 
           Subd. 6.  [PROJECT-BASED VOUCHER OPTION.] A portion of the 
        appropriated funds must be made available for a project-based 
        voucher option.  Under the project-based voucher option, the 
        Minnesota housing finance agency, in consultation with the 
        department of human services, will award a number of vouchers to 
        self-sufficiency program administrators and to county agencies 
        for participating families who live in designated rental 
        property that is certified by a local housing organization as 
        meeting section 8 existing housing quality standards.  The 
        Minnesota housing finance agency and local housing organizations 
        must work with self-sufficiency program administrators to 
        identify rental property that has received rental rehabilitation 
        assistance since January 1, 1987.  The agency may set aside a 
        portion of the funds to be used in connection with rental 
        rehabilitation projects which will be completed by July 1, 1992. 
           Subd. 7.  [PROPERTY OWNER.] In order to receive rent 
        assistance payments, the property owner must enter into a 
        standard lease agreement with the family which includes a clause 
        providing for good cause evictions only.  Otherwise, the lease 
        may be any standard lease agreement.  The agency and local 
        housing organizations must make model lease agreements available 
        to participating families and property owners.  
           Subd. 8.  [AUTHORIZED LEVERAGE OF MONEY.] The agency may 
        leverage federal program money with program money from the 
        family stabilization demonstration project authorized under this 
        section. 
           Subd. 9.  [VOUCHERS FOR FAMILIES WITH A CARETAKER PARENT 
        WITH EARNED INCOME.] (a) Applications to provide the rental 
        assistance for families with a caretaker parent with earned 
        income under either the voucher or project-based option must be 
        submitted jointly by a local housing organization and a county 
        agency.  The application must include a description of how the 
        caretaker parent participants will be selected. 
           (b) County agencies awarded vouchers must select the 
        caretaker parents with earned income whose families will receive 
        the rent assistance.  The county agency must notify the local 
        housing organization and the agency if: 
           (1) the caretaker parent no longer has earned income and is 
        not in compliance with the caretaker parent's employment plan or 
        job search plan; and 
           (2) for a period of six months, the caretaker parent has no 
        earned income and has failed to comply with the job search 
        support plan or employment plan. 
           (c) The county agency must provide the caretaker parent who 
        has no earned income and is not in compliance with the job 
        search support plan or employment plan with the notice specified 
        in Minnesota Rules, part 4900.3379.  The county agency must send 
        a subsequent notice to the caretaker parent, the local housing 
        organization, and the Minnesota housing finance agency 60 days 
        before the termination of rental assistance. 
           (d) If the local housing organization receives notice from 
        a county agency that a caretaker parent whose initial 
        eligibility for rental assistance was based on the receipt of 
        earned income no longer has earned income and for a period of 
        six months after the termination of earned income has failed to 
        comply with the caretaker parent's job search plan or employment 
        plan, the local housing organization must notify the property 
        owner that rental assistance may terminate and notify the 
        caretaker parent of the termination of rental assistance under 
        Minnesota Rules, part 4900.3380. 
           (e) The county agency awarded vouchers for families with a 
        caretaker parent with earned income must comply with the 
        provisions of Minnesota Rules, part 4900.3377. 
           (f) For families whose initial eligibility for rental 
        assistance was based on the receipt of earned income, rental 
        assistance must be terminated under any of the following 
        conditions: 
           (1) the family is evicted from the property for cause; 
           (2) the caretaker parent no longer has earned income and, 
        after six months, is not in compliance with the parent's job 
        search or employment plan; 
           (3) 30 percent of the family's gross income equals or 
        exceeds the amount of the housing costs for two or more 
        consecutive months; 
           (4) the family has received rental assistance under this 
        section for a 36-month period; or 
           (5) the rental unit no longer meets federal section 8 
        existing housing quality standards, the owner refused to make 
        necessary repairs or alterations to bring the rental unit into 
        compliance within a reasonable time, and the caretaker parent 
        refused to relocate to a qualifying unit. 
           (g) If a county agency determines that a caretaker parent 
        no longer has earned income and is not in compliance with the 
        parent's job search or employment plan, the county agency must 
        notify the caretaker parent of that determination.  The notice 
        must be in writing and must explain the effect of not having 
        earned income or failing to be in compliance with the job search 
        or employment plan will have on the rental assistance.  The 
        notice must: 
           (1) state that rental assistance will end six months after 
        earned income has ended; 
           (2) specify the date the rental assistance will end; 
           (3) explain that after the date specified, the caretaker 
        parent will be responsible for the total housing costs; 
           (4) describe the actions the caretaker parent may take to 
        avoid termination of rental assistance; and 
           (5) inform the caretaker parent of the caretaker parent's 
        responsibility to notify the county agency if the caretaker 
        parent has earned income.  
           Sec. 13.  Minnesota Statutes 1996, section 462A.206, 
        subdivision 2, is amended to read: 
           Subd. 2.  [AUTHORIZATION.] The agency may make grants or 
        loans to cities or nonprofit organizations for the purposes of 
        construction, acquisition, rehabilitation, demolition, permanent 
        financing, refinancing, gap financing of single or multifamily 
        housing, or full cycle home ownership services, as defined in 
        section 462A.209, subdivision 2.  Gap financing is financing for 
        the difference between the cost of the improvement of the 
        blighted property, including acquisition, demolition, 
        rehabilitation, and construction, and the market value of the 
        property upon sale.  The agency shall take into account the 
        amount of money that the city or nonprofit organization 
        leverages from other sources in awarding grants and loans.  The 
        agency shall also consider the extent to which the grant or loan 
        recipient will coordinate use of the funds with its other 
        housing-related efforts or other housing-related efforts in the 
        recipient's geographic area.  The city or nonprofit organization 
        must indicate in its application how the proposed project is 
        consistent with the consolidated housing plan.  Not less than 
        ten days before submitting its application to the agency, a 
        nonprofit organization must notify the city in which the project 
        will be located of its intent to apply for funds.  The city may 
        submit to the agency its written comments on the nonprofit 
        organization's application and the agency shall consider the 
        city's comments in reviewing the application.  Cities and 
        nonprofit organizations may use the grants and loans to 
        establish revolving loan funds and to provide grants and loans 
        to eligible mortgagors.  The city or nonprofit organization may 
        determine the terms and conditions of the grants and loans.  An 
        agency loan may only be used by a city or nonprofit organization 
        to make loans. 
           Sec. 14.  Minnesota Statutes 1996, section 462A.206, 
        subdivision 4, is amended to read: 
           Subd. 4.  [DESIGNATED AREAS.] For the purposes of focusing 
        resources, a city or a nonprofit organization located in a 
        metropolitan statistical area must designate neighborhoods 
        within which the grants or loans may be used, and a city or 
        nonprofit organization located outside of a metropolitan 
        statistical area must designate a geographic area within which 
        the grants or loans may be used. 
           Sec. 15.  [462A.2065] [REPORT ON LOSS OF HOUSING.] 
           Each year, the commissioner shall report to the chair of 
        the house of representatives housing and housing finance 
        division and to the chair of the senate jobs, energy, and 
        community development committee, the information provided in the 
        reports made to the commissioner under section 469.0305. 
           Sec. 16.  Minnesota Statutes 1996, section 462A.207, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ESTABLISHMENT.] The agency shall, within 
        the limits of available appropriations, establish a mortgage 
        foreclosure prevention and emergency rental assistance program 
        to provide assistance to low-income and moderate-income persons 
        who are facing the loss of their housing due to circumstances 
        beyond their control.  Priority for assistance under this 
        section must be given to persons and families at or below 60 
        percent of area median income, adjusted for family size, as 
        determined by the department of housing and urban development. 
           Sec. 17.  Minnesota Statutes 1996, section 462A.207, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ADMINISTRATION.] The agency may contract with 
        community-based, nonprofit organizations that meet the 
        requirements specified in this section to provide either 
        mortgage foreclosure assistance or rental assistance, or both.  
        Preference must be given to nonprofit organizations that 
        demonstrate the greatest ability to leverage program money with 
        other sources of funding, or to organizations serving areas 
        without access to mortgage foreclosure assistance or rental 
        assistance.  The agency may require an organization to match 
        program money with other money or resources. 
           Sec. 18.  Minnesota Statutes 1996, section 462A.207, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ORGANIZATION ELIGIBILITY.] A nonprofit 
        organization must be able to demonstrate that it is qualified to 
        deliver program services, has relevant expertise in mortgage 
        foreclosure prevention or landlord and tenant procedures, and is 
        able to perform the duties required under the program.  An 
        organization must provide the agency with a detailed description 
        of how the proposed program would be administered, including the 
        qualifications of staff.  An organization may not be part of, 
        nor affiliated with, a mortgage lender nor provide assistance to 
        a household which occupies a housing unit owned or managed by 
        the organization. 
           Sec. 19.  Minnesota Statutes 1996, section 462A.207, 
        subdivision 4, is amended to read: 
           Subd. 4.  [SELECTION CRITERIA.] The agency shall take the 
        following criteria into consideration when determining whether 
        an organization is qualified to administer the program: 
           (1) the prior experience of the nonprofit organization in 
        establishing, administering, and maintaining a mortgage 
        foreclosure prevention or a rental assistance program; 
           (2) the documented familiarity of the organization 
        regarding mortgage foreclosure prevention procedures, landlord 
        and tenant procedures, and other services available to assist 
        with preventing the loss of housing; 
           (3) the reasonableness of the proposed budget in meeting 
        the program objectives; 
           (4) the documented ability of the organization to provide 
        financial assistance; and 
           (5) the documented ability of the organization to provide 
        mortgage foreclosure prevention or other financial or tenant 
        counseling. 
           Sec. 20.  Minnesota Statutes 1996, section 462A.207, 
        subdivision 6, is amended to read: 
           Subd. 6.  [ASSISTANCE.] (a) Program assistance includes 
        general information, screening, assessment, referral services, 
        case management, advocacy, and financial assistance to borrowers 
        who are delinquent on mortgage, or contract for deed, or rent 
        payments. 
           (b) Not more than one-half of program funding may be used 
        for mortgage or financial counseling services. 
           (c) Financial assistance consists of: 
           (1) 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; 
        or. 
           (2) delinquent rent payments, utility bills, any fees or 
        costs necessary to redeem the property, future rent payments for 
        a period of up to six months, and relocation costs if necessary. 
           (d) An individual or family may receive the lesser of six 
        months or $4,500 of financial assistance. 
           Sec. 21.  Minnesota Statutes 1996, section 462A.21, 
        subdivision 12a, is amended to read: 
           Subd. 12a.  [PROGRAM MONEY TRANSFER.] Grants authorized 
        under section 462A.05, subdivision 20, may be made only with 
        specific appropriations by the legislature, but Unencumbered 
        balances of money appropriated for the purpose of loans or 
        grants for agency programs under these subdivisions may be 
        transferred between programs created by these subdivisions or in 
        accordance with section 462A.20, subdivision 3. 
           Sec. 22.  [469.0305] [REPORT ON LOSS OF HOUSING.] 
           Subdivision 1.  [EFFECTS OF WELFARE REFORM.] A public 
        agency administering a public housing program or a rent subsidy 
        program shall report to the commissioner of the housing finance 
        agency by February 1, each year, beginning in 1998, the 
        reduction in the number of units or section 8 certificates or 
        vouchers during the year and an assessment of the reasons for 
        the reduction, including whether it is due to the state's 
        welfare reform initiatives. 
           Subd. 2.  [REDUCTION IN LOW-INCOME HOUSING UNITS.] A public 
        agency that acquires and demolishes housing occupied by persons 
        whose incomes are less than 50 percent of the area median income 
        shall report the number of units demolished to the commissioner 
        of the housing finance agency.  The report must be submitted to 
        the commissioner of the housing finance agency no later than 
        March 15 of the following year. 
           Sec. 23.  [REPEALER.] 
           Minnesota Statutes 1996, sections 268.39; 462A.05, 
        subdivision 20; 462A.206, subdivision 5; 462A.21, subdivisions 
        4k, 12, and 14, are repealed. 
           Sec. 24.  [EFFECTIVE DATE.] 
           Section 1 is effective as provided in that section.  The 
        remainder of this article is effective July 1, 1997. 
                                   ARTICLE 5
                               CAPITAL INVESTMENT
           Section 1.  Minnesota Statutes 1996, section 268.917, is 
        amended to read: 
           268.917 [EARLY CHILDHOOD LEARNING AND CHILD PROTECTION 
        FACILITIES.] 
           The commissioner may make grants to state agencies and 
        political subdivisions to construct or rehabilitate facilities 
        for Head Start, early childhood and family education 
        facilities programs, other early childhood intervention 
        programs, or demonstration family service centers housing 
        multiagency collaboratives, with priority to centers in counties 
        or municipalities with the highest number of children living in 
        poverty.  The commissioner may also make grants to state 
        agencies and political subdivisions to construct or rehabilitate 
        facilities for crisis nurseries or child visitation centers.  
        The facilities must be owned by the state or a political 
        subdivision, but may be leased under section 16A.695 to 
        organizations that operate the programs.  The commissioner shall 
        prescribe the terms and conditions of the leases.  A grant for 
        an individual facility must not exceed $200,000 for each program 
        that is housed in the facility, up to a maximum of $500,000 for 
        a facility that houses three programs or more.  The commissioner 
        shall give priority to grants that involve collaboration among 
        sponsors of programs under this section.  At least 25 percent of 
        the amounts appropriated for these grants must be used in 
        conjunction with the youth employment and training programs 
        operated by the commissioner.  Eligible programs must consult 
        with appropriate labor organizations to deliver education and 
        training. 
           Sec. 2.  Minnesota Statutes 1996, section 446A.04, 
        subdivision 5, is amended to read: 
           Subd. 5.  [FEES.] (a) The authority may set and collect 
        fees for costs incurred by the authority for audits, arbitrage 
        accounting, and payment of fees charged by the state board of 
        investment.  The authority may also set and collect fees for 
        costs incurred by the commissioner, the department of health, 
        and the pollution control agency, including costs for personnel 
        and administrative services, for its financings and the 
        establishment and maintenance of reserve funds.  Fees charged 
        directly to borrowers upon executing a loan agreement must not 
        exceed one-half of one percent of the loan amount.  Servicing 
        fees assessed to loan repayments must not exceed two percent of 
        the loan repayment.  The disposition of fees collected for costs 
        incurred by the authority is governed by section 446A.11, 
        subdivision 13.  The authority shall enter into interagency 
        agreements to transfer funds into appropriate administrative 
        accounts established for fees collected under this subdivision 
        for costs incurred by the commissioner, the department of 
        health, or the pollution control agency must be credited to the 
        general fund. 
           (b) The authority shall annually report to the chairs of 
        the finance and appropriations committees of the legislature on: 
           (1) the amount of fees collected under this subdivision for 
        costs incurred by the authority; 
           (2) the purposes for which the fee proceeds have been 
        spent; and 
           (3) the amount of any remaining balance of fee proceeds. 
           Sec. 3.  Minnesota Statutes 1996, section 446A.081, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
        section, the terms in this subdivision have the meanings given 
        them.  
           (b) "Act" means the federal Safe Drinking Water 
        Infrastructure Financing Act Amendments of 1996, Public Law 
        Number 104-182. 
           (c) "Department" means the department of health.  
           Sec. 4.  Minnesota Statutes 1996, section 446A.081, 
        subdivision 4, is amended to read: 
           Subd. 4.  [CAPITALIZATION GRANT AGREEMENT.] The authority 
        shall enter into an agreement with the administrator of the 
        United States Environmental Protection Agency to receive 
        capitalization grants for the fund.  The authority and the 
        department shall enter into an operating agreement with the 
        administrator of the United States Environmental Protection 
        Agency to satisfy the criteria in the act to operate the fund.  
        The authority and the department may exercise the powers 
        necessary to comply with the requirements specified in 
        the agreement agreements and to ensure that loan recipients 
        comply with all applicable federal and state requirements.  
           Sec. 5.  Minnesota Statutes 1996, section 446A.081, 
        subdivision 9, is amended to read: 
           Subd. 9.  [OTHER USES OF FUND.] The drinking water 
        revolving loan fund may be used as provided in the act, 
        including the following uses: 
           (1) to buy or refinance the debt obligations, at or below 
        market rates, of public water systems for drinking water 
        systems, where such debt was incurred after the date of 
        enactment of the act, for the purposes of construction of the 
        necessary improvements to comply with the national primary 
        drinking water regulations under the federal Safe Drinking Water 
        Act; 
           (2) to purchase or guarantee insurance for local 
        obligations to improve credit market access or reduce interest 
        rates; 
           (3) to provide a source of revenue or security for the 
        payment of principal and interest on revenue or general 
        obligation bonds issued by the authority if the bond proceeds 
        are deposited in the fund; 
           (4) to provide loans or loan guarantees for similar 
        revolving funds established by a governmental unit or state 
        agency; 
           (5) to earn interest on fund accounts; and 
           (6) to pay the reasonable costs incurred by the authority, 
        the department of trade and economic development, and the 
        department for conducting activities as authorized and required 
        under the act up to the limits authorized under the act; and 
           (7) to develop and administer programs for water system 
        supervision, source water protection, and related programs 
        required under the act. 
           Sec. 6.  Minnesota Statutes 1996, section 446A.12, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [BONDING AUTHORITY.] The authority may 
        issue negotiable bonds in a principal amount that the authority 
        determines necessary to provide sufficient funds for achieving 
        its purposes, including the making of loans and purchase of 
        securities, the payment of interest on bonds of the authority, 
        the establishment of reserves to secure its bonds, the payment 
        of fees to a third party providing credit enhancement, and the 
        payment of all other expenditures of the authority incident to 
        and necessary or convenient to carry out its corporate purposes 
        and powers, but not including the making of grants.  Bonds of 
        the authority may be issued as bonds or notes or in any other 
        form authorized by law.  The principal amount of bonds issued 
        and outstanding under this section at any time may not exceed 
        $450,000,000 $850,000,000, excluding bonds for which refunding 
        bonds or crossover refunding bonds have been issued. 
           Sec. 7.  [EFFECTIVE DATE.] 
           Section 1 is effective the day following final enactment. 
                                   ARTICLE 6 
                   ECONOMIC SECURITY MISCELLANEOUS PROVISIONS 
           Section 1.  Laws 1997, chapter 85, article 1, section 39, 
        subdivision 4, is amended to read: 
           Subd. 4.  [EMPLOYMENT AND TRAINING SERVICE PROVIDER.] 
        "Employment and training service provider" means: 
           (1) a public, private, or nonprofit employment and training 
        agency certified by the commissioner of economic security under 
        sections 268.0122, subdivision 3, and 268.871, subdivision 1, or 
        is approved under section 256J.51 and is included in the county 
        plan submitted under section 256J.50, subdivision 7; or 
           (2) a public, private, or nonprofit agency that is not 
        certified by the commissioner under clause (1), but with which a 
        county has contracted to provide employment and training 
        services and which is included in the county's plan submitted 
        under section 256J.50, subdivision 7; or 
           (3) a county agency, if the county has opted is certified 
        under clause (1) to provide employment and training services and 
        the county has indicated that fact in the plan submitted under 
        section 256J.50, subdivision 7. 
           Notwithstanding section 268.871, an employment and training 
        services provider meeting this definition may deliver employment 
        and training services under this chapter. 
           Sec. 2.  [EFFECTIVE DATE.] 
           Section 1 is effective July 1, 1997. 
           Presented to the governor May 27, 1997 
           Signed by the governor May 30, 1997, 1:32 p.m.

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