Minnesota Office of the Revisor of Statutes
[*Add Subtitle/link: Office]

Menu

Revisor of Statutes Menu

Minnesota Session Laws

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

                              CHAPTER 4-H.F.No. 5 
                  An act relating to state government; appropriating 
                  money for economic development, housing, and certain 
                  agencies of state government; establishing and 
                  modifying programs; abolishing the department of 
                  economic security; transferring certain duties and 
                  funds; creating a transition team for the 
                  reorganization of state departments; consolidating 
                  housing programs; regulating activities and practices; 
                  modifying fees; making conforming changes; requiring 
                  reports; codifying reorganization order No. 181; 
                  transferring the remaining duties of the commissioner 
                  of public service to the commissioner of commerce; 
                  instructing the revisor to change certain terms; 
                  amending Minnesota Statutes 2000, sections 3.922, by 
                  adding a subdivision; 3C.12, subdivision 2; 13.679; 
                  15.01; 15.06, subdivision 1; 15A.0815, subdivision 2; 
                  16B.32, subdivision 2; 16B.335, subdivision 4; 16B.56, 
                  subdivision 1; 16B.76, subdivision 1; 17.86, 
                  subdivision 3; 18.024, subdivision 1; 43A.08, 
                  subdivision 1a; 45.012; 103F.325, subdivisions 2, 3; 
                  115A.15, subdivision 5; 116J.8731, subdivision 1; 
                  116L.03; 116L.04, by adding a subdivision; 116L.05, by 
                  adding a subdivision; 116L.16; 116O.06, subdivision 2; 
                  123B.65, subdivisions 1, 3, 5; 138.664, by adding a 
                  subdivision; 161.45, subdivision 1; 168.61, 
                  subdivision 1; 169.073; 174.03, subdivision 7; 181.30; 
                  184.29; 184.30, subdivision 1; 184.38, subdivisions 6, 
                  8, 9, 10, 11, 17, 18, 20; 184.41; 216A.01; 216A.035; 
                  216A.036; 216A.05, subdivision 1; 216A.07, subdivision 
                  1; 216A.08; 216A.085, subdivision 3; 216B.02, 
                  subdivisions 1, 7, 8; 216B.16, subdivisions 1, 2, 6b, 
                  15; 216B.162, subdivisions 7, 11; 216B.1675, 
                  subdivision 9; 216B.241, subdivisions 1a, 1b, 2b; 
                  216C.01, subdivisions 1, 2, 3; 216C.051, subdivision 
                  6; 216C.37, subdivision 1; 216C.40, subdivision 4; 
                  216C.41, as amended; 237.02; 237.075, subdivisions 2, 
                  9; 237.082; 237.21; 237.30; 237.462, subdivision 6; 
                  237.51, subdivisions 1, 5, 5a; 237.52, subdivisions 2, 
                  4, 5; 237.54, subdivision 2; 237.55; 237.59, 
                  subdivision 2; 237.768; 239.01; 239.10; 268.022, 
                  subdivision 2; 268.145, subdivision 1; 268.665, by 
                  adding a subdivision; 325E.11; 325E.115, subdivision 
                  2; 326.243; 462A.01; 462A.03, subdivisions 1, 6, 10, 
                  by adding a subdivision; 462A.04, subdivision 6; 
                  462A.05, subdivisions 14, 14a, 16, 22, 26; 462A.06, 
                  subdivisions 1, 4; 462A.07, subdivisions 10, 12; 
                  462A.073, subdivision 1; 462A.15; 462A.17, subdivision 
                  3; 462A.20, subdivision 3; 462A.201, subdivisions 2, 
                  6; 462A.204, subdivision 3; 462A.205, subdivisions 4, 
                  4a; 462A.209; 462A.2091, subdivision 3; 462A.2093, 
                  subdivision 1; 462A.2097; 462A.21, subdivisions 5, 10, 
                  by adding subdivisions; 462A.222, subdivision 1a; 
                  462A.24; 462A.33, subdivisions 1, 2, 3, 5, by adding a 
                  subdivision; 473.195, by adding a subdivision; 484.50; 
                  Laws 1993, chapter 301, section 1, subdivision 4, as 
                  amended; Laws 1995, chapter 248, article 12, section 
                  2, as amended; Laws 1995, chapter 248, article 13, 
                  section 2, subdivision 2, as amended; Laws 2000, 
                  chapter 488, article 8, section 2, subdivision 6; 
                  proposing coding for new law in Minnesota Statutes, 
                  chapters 116L; 181; 462A; repealing Minnesota Statutes 
                  2000, sections 184.22, subdivisions 2, 3, 4, 5; 
                  184.37, subdivision 2; 216A.06; 237.69, subdivision 3; 
                  268.975; 268.976; 268.9771; 268.978; 268.9781; 
                  268.9782; 268.9783; 268.979; 268.98; 462A.201, 
                  subdivision 4; 462A.207; 462A.209, subdivision 4; 
                  462A.21, subdivision 17; 462A.221, subdivision 4; 
                  462A.30, subdivision 2; 462A.33, subdivisions 4, 6, 7. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                   ARTICLE 1 
                                 APPROPRIATIONS 
        Section 1.  [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 
           The sums shown in the columns marked "APPROPRIATIONS" are 
        appropriated from the general fund, or another named fund, to 
        the agencies and for the purposes specified in this act, to be 
        available for the fiscal years indicated for each purpose.  The 
        figures "2002" and "2003," where used in this act, mean that the 
        appropriation or appropriations listed under them are available 
        for the year ending June 30, 2002, or June 30, 2003, 
        respectively.  The term "first year" means the fiscal year 
        ending June 30, 2002, and "second year" means the fiscal year 
        ending June 30, 2003. 
                                SUMMARY BY FUND
                                  2002          2003           TOTAL
        General               $192,471,000   $192,612,000   $385,083,000
        Petroleum Tank
        Cleanup                  1,064,000      1,084,000      2,148,000
        Environmental Fund         700,000        700,000      1,400,000
        TANF Block Grant        15,198,000     14,302,000     29,500,000
        Workers' 
        Compensation            23,216,000     23,765,000     46,981,000
        Special Revenue  
        Fund                    11,849,000     10,942,000     22,791,000
        TOTAL                 $244,498,000   $243,405,000   $487,903,000
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  2002         2003 
        Sec. 2.  TRADE AND ECONOMIC DEVELOPMENT 
        Subdivision 1.  Total       
        Appropriation                         $41,965,000   $39,591,000
                      Summary by Fund
        General              38,453,000    37,426,000
        TANF Block Grant      1,750,000     1,000,000
        Environmental Fund      700,000       700,000 
        Special 
        Revenue Fund          1,062,000       465,000 
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Business and Community 
        Development                            13,149,000    11,167,000
                      Summary by Fund
        General              11,852,000    10,467,000
        Environmental Fund      700,000       700,000
        Special 
        Revenue Fund            597,000           -0- 
        (a) $3,867,000 the first year and 
        $3,867,000 the second year are for 
        Minnesota investment fund grants.  It 
        is the intention of the legislature 
        that the base funding for the Minnesota 
        investment fund in the 2004-2005 
        biennium be $4,017,000 each year. 
        (b) $150,000 the first year and 
        $150,000 the second year are for 
        one-time grants to the rural policy and 
        development center at Minnesota State 
        University, Mankato.  The grant shall 
        be used for research and policy 
        analysis on emerging economic and 
        social issues in rural Minnesota, to 
        serve as a policy resource center for 
        rural Minnesota communities, to 
        encourage collaboration across higher 
        education institutions to provide 
        interdisciplinary team approaches to 
        research and problem solving in rural 
        communities, and to administer overall 
        operations of the center.  
        The grant shall be provided upon the 
        condition that each state-appropriated 
        dollar be matched with a 
        non-state-appropriated dollar.  
        Acceptable matching funds are 
        non-state-appropriated contributions 
        that the center has received after July 
        1, 2000, and have not been used to 
        match previous state grants.  The funds 
        not spent the first year are available 
        the second. 
        (c) $155,000 the first year and 
        $155,000 the second year are for 
        one-time grants to the metropolitan 
        economic development association for 
        continuing minority business 
        development programs in the 
        metropolitan area. 
        (d) $300,000 the first year is for 
        one-time grants to nonprofit 
        organizations to provide technical 
        assistance to individuals to support 
        the start-up and growth of 
        self-employment and microenterprise 
        businesses.  Eligible businesses are 
        microenterprises employing fewer than 
        five people plus the owner and 
        requiring under $35,000 or no capital 
        to start or expand the business.  
        Nonprofit organizations must apply for 
        grants under this subdivision following 
        procedures established by the 
        commissioner.  To be eligible for a 
        grant, an organization must demonstrate 
        to the commissioner that it has the 
        appropriate expertise.  The 
        commissioner shall give preference for 
        grants to organizations that target 
        nontraditional entrepreneurs such as 
        women, members of a minority, 
        low-income individuals, or persons 
        seeking work who are currently on or 
        recently removed from welfare 
        assistance or who have recently been 
        laid off from their previous employment.
        An application must include: 
        (1) the local need for microenterprise 
        support; 
        (2) proposed criteria for business 
        eligibility; 
        (3) a proposal for identifying and 
        serving eligible businesses; 
        (4) a description of technical 
        assistance to be provided to eligible 
        businesses; 
        (5) a proposal to coordinate technical 
        assistance with financial assistance; 
        (6) demonstration of an ability to 
        collaborate with other agencies 
        including educational and financial 
        institutions; and 
        (7) project goals identifying the 
        number of eligible businesses to be 
        assisted with the state funds awarded 
        under the grant. 
        Grant recipients must report to the 
        commissioner by February 1 in each of 
        the two years after the year of receipt 
        of the grant.  The report must detail 
        the number of customers served; the 
        number of businesses started, 
        stabilized, or expanded; the number of 
        jobs created and retained; and business 
        success rates.  The commissioner shall 
        report to the legislature on the 
        microenterprise entrepreneurial 
        assistance.  The report shall contain 
        an evaluation of the results. 
        (e) $35,000 the first year is for a 
        one-time grant for a pilot project 
        incubated by Blue Earth county named 
        the Rural Advanced Business 
        Facilitation Program.  The grant shall 
        be provided on the condition that the 
        funds be matched on a one-to-one basis 
        from nonstate sources.  This 
        appropriation is available until June 
        30, 2003. 
        (f) $500,000 the first year is for a 
        one-time grant to the city of St. Paul 
        for the planning, predesign, and design 
        of the new Roy Wilkins auditorium and 
        exhibit hall.  This appropriation is 
        available until June 30, 2003. * (The 
        preceding text beginning "(f) $500,000 
        the first year" was indicated as vetoed 
        by the governor.) 
        (g) $50,000 the first year is for a 
        one-time grant to Minnesota rural 
        partners.  This grant must be used only 
        for the Minnesota rural summit and 
        shall be provided on the condition that 
        funds be matched on a one-to-one basis 
        from nongovernmental sources.  This 
        appropriation is available until June 
        30, 2003. 
        (h) $100,000 the first year is for a 
        one-time grant to the Albert Lea Port 
        Authority to remodel a building in the 
        Northaire Industrial Park.  Of this 
        amount, $50,000 is from the Minnesota 
        investment fund.  This appropriation is 
        available until June 30, 2003.  This 
        grant must be matched on a two-for-one 
        basis by nonstate funds. * (The 
        preceding text beginning "(h) $100,000 
        the first year" was indicated as vetoed 
        by the governor.) 
        (i) $300,000 the first year is for a 
        one-time grant to the St. Paul port 
        authority for the 33-acre Trillium site 
        that is part of the Trout Brook 
        greenway corridor in St. Paul. * (The 
        preceding text beginning "(i) $300,000 
        the first year" was indicated as vetoed 
        by the governor.) 
        (j) Notwithstanding the limit in 
        Minnesota Statutes, section 116J.8731, 
        subdivision 5, a grant of up to 
        $1,000,000 may be made to a political 
        subdivision that is chosen as a site 
        for a soybean oilseed processing 
        facility constructed by a 
        Minnesota-based cooperative.  The grant 
        may be used for site preparation, 
        predevelopment, and other 
        infrastructure improvements, including 
        public and private utility improvements 
        that are necessary for development of 
        the oilseed processing facility.  The 
        grant may be made any time until June 
        30, 2003. 
        (k) $500,000 the first year is from the 
        workforce development fund for a grant 
        to the city of Duluth to support the 
        development of the Duluth Technology 
        Village.  This is a one-time 
        expenditure, and funds not spent the 
        first year are available the second 
        year. 
        (l) $75,000 in fiscal year 2002 is for 
        a grant to the West Central Growth 
        Alliance to establish a regional 
        marketing plan, economic development 
        pilot project in Big Stone, Chippewa, 
        Kandiyohi, Lac Qui Parle, Meeker, 
        Renville, Stevens, Swift, and Yellow 
        Medicine counties.  The grant must be 
        matched by $75,000 in nonstate money.  
        This is a one-time appropriation.  This 
        appropriation is available until June 
        30, 2003. 
        (m) $150,000 the first year is for a 
        one-time grant to the city of Ironton 
        to be applied to planning for the 
        Cuyuna Range Technology Center.  This 
        appropriation is available until June 
        30, 2003.  The grant must be matched by 
        $150,000 in nonstate money. 
        (n) $97,000 the first year from the 
        workforce development fund is for a 
        one-time grant to Neighborhood 
        Development Center, Inc.  The funds not 
        spent the first year are available the 
        second. 
        Subd. 3.  Minnesota Trade Office 
             2,466,000      2,614,000
        On or before July 10, 2001, the 
        commissioner of finance shall transfer 
        the following amounts from the 
        unencumbered balance in the export 
        finance authority working capital 
        account created by Minnesota Statutes, 
        section 116J.9673:  to the workforce 
        development fund, $350,000; and to the 
        general fund, $771,000. 
        Subd. 4.  Workforce Development       11,045,000     10,295,000
                      Summary by Fund
        General               8,830,000     8,830,000
        Special Revenue         465,000       465,000
        TANF Block Grant      1,750,000     1,000,000
        (a) $8,500,000 the first year and 
        $8,500,000 the second year are for the 
        job skills partnership and pathways 
        programs.  If the appropriation for 
        either year is insufficient, the 
        appropriation for the other year is 
        available.  This appropriation does not 
        cancel. 
        (b) $450,000 the first year and 
        $450,000 the second year are for 
        one-time grants to Lifetrack Resources 
        for its immigrant/refugee collaborative 
        programs, including those related to 
        job-seeking skills and workplace 
        orientation, intensive job development, 
        functional work English, and on-site 
        job coaching.  Of this amount, $200,000 
        each year is from the workforce 
        development fund and $250,000 each year 
        is from the state's federal TANF block 
        grant under Title I of Public Law 
        Number 104-193 to the commissioner of 
        human services, to be transferred to 
        the commissioner of trade and economic 
        development. 
        (c) $330,000 the first year and 
        $330,000 the second year are from the 
        general fund for one-time grants to 
        Twin Cities Rise to provide training to 
        hard-to-train individuals.  Twin Cities 
        Rise must report to the commissioner by 
        October 1 after the close of each 
        fiscal year.  The report must detail 
        the number of participants served, the 
        cost per participant, the number of 
        participants placed, the number of 
        participants who otherwise successfully 
        completed the program, and any other 
        information requested by the 
        commissioner. 
        (d) $750,000 the first year is for the 
        job skills partnership board to operate 
        the pilot program provided by article 
        2, section 30.  This is a one-time 
        appropriation and is from the state's 
        federal TANF block grant under Title I 
        of Public Law Number 104-193 to the 
        commissioner of human services, to be 
        transferred to the commissioner of 
        trade and economic development.  This 
        appropriation is available until June 
        30, 2003. 
        (e) $265,000 the first year and 
        $265,000 the second year from the 
        workforce development fund are for 
        one-time grants to WomenVenture for 
        women's business development programs. 
        Subd. 5.  Office of Tourism 
           10,219,000      10,111,000 
        To develop maximum private sector 
        involvement in tourism, $3,500,000 the 
        first year and $3,500,000 the second 
        year of the amounts appropriated for 
        marketing activities are contingent on 
        receipt of an equal contribution from 
        nonstate sources that have been 
        certified by the commissioner.  Up to 
        one-half of the match may be given in 
        in-kind contributions. 
        In order to maximize marketing grant 
        benefits, the commissioner must give 
        priority for joint venture marketing 
        grants to organizations with year-round 
        sustained tourism activities.  For 
        programs and projects submitted, the 
        commissioner must give priority to 
        those that encompass two or more areas 
        or that attract nonresident travelers 
        to the state. 
        If an appropriation for either year for 
        grants is not sufficient, the 
        appropriation for the other year is 
        available for it. 
        The commissioner may use grant dollars 
        or the value of in-kind services to 
        provide the state contribution for the 
        partnership program. 
        Any unexpended money from general fund 
        appropriations made under this 
        subdivision does not cancel but must be 
        placed in a special advertising account 
        for use by the office of tourism to 
        purchase additional media. 
        Of this amount, $50,000 the first year 
        is for a one-time grant to the 
        Mississippi River parkway commission to 
        support the increased promotion of 
        tourism along the Great River Road. 
        Of this amount, $150,000 the first year 
        is for one-time grants to local units 
        of government, and state or local 
        nonprofit entities to plan and promote 
        the 2004 Grand Excursion.  A local 
        nonstate dollar-for-dollar match is 
        required. * (The preceding text 
        beginning "Of this amount, $150,000 the 
        first year" was indicated as vetoed by 
        the governor.) 
        $50,000 the first year is for a 
        one-time grant to Koochiching county 
        for concept development and a marketing 
        feasibility study related to the 
        construction of a North American bear 
        center called the Big Bear Country 
        Education and Logging Center. * (The 
        preceding text beginning "$50,000 the 
        first year" was indicated as vetoed by 
        the governor.) 
        $829,000 the first year and $829,000 
        the second year are for the Minnesota 
        film board.  $329,000 of this 
        appropriation in each year is available 
        only upon receipt by the board of $1 in 
        matching contributions of money or 
        in-kind from nonstate sources for every 
        $3 provided by this appropriation.  Of 
        this amount, $500,000 the first year 
        and $500,000 the second year are for 
        grants to the Minnesota film board for 
        a film production jobs fund to 
        stimulate film production in 
        Minnesota.  This appropriation is to 
        reimburse film and television producers 
        for up to ten percent of the documented 
        wages and cost of services that they 
        paid to Minnesotans for film and 
        television production after January 1, 
        2001. 
        $150,000 the first year is for 
        partnerships with local tourism 
        interests to operate travel information 
        centers.  This is a one-time 
        appropriation. 
        Subd. 6.  Information and Analysis 
             1,631,000      1,668,000 
        Subd. 7.  Administrative Support       3,455,000      3,736,000
        Sec. 3.  MINNESOTA TECHNOLOGY, INC.    5,930,000      6,105,000
        $5,005,000 the first year and 
        $6,105,000 the second year are for 
        transfer from the general fund to the 
        Minnesota Technology, Inc. fund.  It is 
        the intention of the legislature that 
        the base funding for the Minnesota 
        Technology, Inc. fund in the 2004-2005 
        biennium be $6,105,000 each year. 
        $875,000 the first year is for a grant 
        to Minnesota Project Innovation.  This 
        is a one-time appropriation and is not 
        added to the agency's budget base. 
        $50,000 the first year is for grants to 
        Minnesota Inventors Congress.  This is 
        a one-time appropriation and is not 
        added to the agency's budget base. 
        On or before July 10, 2001, the 
        commissioner of finance shall transfer 
        $900,000 from the Minnesota technology 
        account created in Minnesota Statutes, 
        section 116O.12, to the general fund. 
        Notwithstanding the provisions of 
        Minnesota Statutes, section 116O.12, 
        the legislature does not approve the 
        industry cluster initiative proposed by 
        Minnesota Technology, Inc., in the 
        governor's 2002-2003 biennial budget. 
        Sec. 4.  ECONOMIC SECURITY  
        Subdivision 1.  Total 
        Appropriation                         40,443,000     39,977,000
                      Summary by Fund
        General              29,376,000    29,381,000
        TANF Block Grant      1,073,000       927,000
        Special  
        Revenue Fund          9,994,000     9,669,000
        Subd. 2.  Workforce Services          12,046,000     11,944,000
                      Summary by Fund
        General               9,194,000     9,092,000
        TANF Block Grant        927,000       927,000
        Special Revenue       1,925,000     1,925,000
        (a) $1,827,000 the first year and 
        $1,827,000 the second year are for 
        displaced homemaker programs under 
        Minnesota Statutes, section 268.96.  Of 
        this amount, $1,000,000 each year is 
        from the workforce development fund and 
        $827,000 each year is a one-time 
        appropriation from the state's federal 
        TANF block grant under title I of 
        Public Law Number 104-193 to the 
        commissioner of human services, to be 
        transferred to the commissioner of 
        economic security.  The commissioner of 
        economic security shall report to the 
        legislature by February 15, 2003, on 
        the outcome of grants under this 
        paragraph. 
        (b) $111,000 the first year is for 
        youth violence prevention programs to 
        match the federal juvenile 
        accountability incentive block grant.  
        This is a one-time appropriation and is 
        not added to the agency's budget base. 
        (c) No appropriation is made for the 
        youth curfew and truancy prevention 
        program established in Laws 1999, 
        chapter 216, article 1, section 20. 
        (d) No appropriation is made for asset 
        preservation and facility repair.  
        (e) $1,025,000 the first year and 
        $1,025,000 the second year are for the 
        opportunities industrialization center 
        programs.  Of this amount, $150,000 
        each year is a one-time appropriation 
        from the workforce development fund and 
        $100,000 each year is a one-time 
        appropriation from the state's federal 
        TANF block grant under Title I of 
        Public Law Number 104-193 to the 
        commissioner of human services, to be 
        transferred to the commissioner of 
        economic security.  
        (f) $300,000 each year is added to the 
        base for youth intervention programs 
        under Minnesota Statutes, section 
        268.30.  Of this appropriation, $15,000 
        is for a grant to the Minnesota Youth 
        Intervention Programs Association 
        (YIPA) to provide collaborative 
        training and technical assistance to 
        community-based grantees of the program.
        (g) $150,000 each year is added to the 
        base for grants to Youthbuild programs 
        under Minnesota Statutes, sections 
        268.361 to 268.3661. 
        Subd. 3.  Rehabilitation Services     23,422,000     22,966,000
                      Summary by Fund
        General              15,207,000    15,222,000
        TANF                    146,000           -0- 
        Special         
        Revenue Fund          8,069,000     7,744,000
        $11,927,000 in the first year and 
        $11,940,000 in the second year are for 
        extended employment services for 
        persons with severe disabilities or 
        related conditions under Minnesota 
        Statutes, section 268A.15.  Of this 
        amount, $7,719,000 the first year and 
        $7,719,000 the second year are from the 
        workforce development fund; of which 
        $400,000 each year is to increase the 
        reimbursement rates for extended 
        employment services.  It is the 
        intention of the legislature that the 
        funding for extended employment from 
        the workforce development fund shall be 
        $6,920,000 each year in the 2004-2005 
        biennium.  
        $146,000 the first year is from the 
        state's TANF block grant under Title I 
        of Public Law Number 104-193 to the 
        commissioner of human services, to be 
        transferred to the commissioner of 
        economic security for extended 
        employment services for the 
        continuation of efforts to provide 
        extended employment training through 
        the welfare-to-work extended employment 
        partnership program to welfare 
        recipients with severe impairments to 
        employment as provided for under 
        Minnesota Statutes, section 268A.15.  
        Of this appropriation, up to five 
        percent may be used for administrative 
        costs.  This is a one-time 
        appropriation and is not added to the 
        agency's budget base. 
        $50,000 the first year and $50,000 the 
        second year are for grants to fund the 
        eight centers for independent living.  
        This appropriation shall be added to 
        the agency's base level funding for the 
        2004-2005 biennium. 
        $500,000 the first year and $500,000 
        the second year are added to the base 
        for grants for programs that provide 
        employment support services to persons 
        with mental illness under Minnesota 
        Statutes, sections 268A.13 and 
        268A.14.  Up to $70,000 each year may 
        be used for administrative and salary 
        expenses. 
        $175,000 the first year is appropriated 
        from the workforce development fund for 
        purposes of workplace HIV education.  
        This is a one-time appropriation. 
        $25,000 each year from the workforce 
        development fund is for grants to the 
        Minnesota employment center for people 
        who are deaf or hard-of-hearing.  This 
        appropriation is added to the base 
        level funding for the 2002-2003 
        biennium for the Minnesota employment 
        center for people who are deaf or 
        hard-of-hearing.  Funds not expended in 
        the first year are available in the 
        second. 
        $150,000 the first year is from the 
        workforce development fund for the 
        purpose of the vocational 
        rehabilitation brain injury pilot 
        program to be available until June 30, 
        2003.  This is a one-time appropriation.
        Subd. 4.  State Services for the Blind 
             4,940,000      5,067,000 
        Subd. 5.  Workforce Wage Assistance
        $35,000 in the first year is to prepare 
        a report to the legislature by February 
        1, 2002, on the costs and benefits of 
        providing paid or insured wage 
        replacement during parental leave.  The 
        report must include (1) estimates of 
        the percent of employees who currently 
        have the option of taking paid parental 
        leave, including the nature and extent 
        of the benefits, (2) the impact on 
        employers of offering paid parental 
        leave, including wage replacement 
        costs, and the impact on overall 
        employment, retention, and recruitment 
        costs, and (3) an estimate of the 
        public health costs of not providing 
        wage replacement during parental leave, 
        including the impact on infant care and 
        maternal health.  The commissioners of 
        health and children, families, and 
        learning shall assist in the report's 
        preparation, as needed. 
        Subd. 6.  Economic Security Contingent Account
        Beginning in the 2002-2003 biennium, 
        the first $2,000,000 deposited in each 
        year of the biennium into the economic 
        security contingent account created 
        under Minnesota Statutes, section 
        268.196, subdivision 3, shall be 
        transferred upon deposit to the 
        workforce development fund.  Deposits 
        in excess of the $2,000,000 shall be 
        used for purposes of the economic 
        security contingent account.  It is the 
        intent of the legislature that in 
        future years, $2,000,000 each year will 
        be transferred in this manner. 
        Sec. 5.  HOUSING FINANCE AGENCY       65,057,000     64,457,000
                      Summary by Fund
        General              52,932,000    52,332,000
        TANF                 12,125,000    12,125,000
        Subdivision 1.  Total Appropriation 
        The amounts that may be spent from this 
        appropriation for certain programs are 
        specified in the following subdivisions.
        This appropriation is for transfer to 
        the housing development fund for the 
        programs specified.  Except as 
        otherwise indicated, this transfer is 
        part of the agency's permanent budget 
        base. 
        Subd. 2.  Challenge Program 
        $12,004,000 the first year and 
        $12,004,000 the second year are for the 
        economic development and housing 
        challenge program under Minnesota 
        Statutes, section 462A.33.  Until 
        January 1, 2002, the agency may 
        administer the appropriations under 
        this subdivision in the same manner as 
        appropriations for Minnesota Statutes, 
        section 462A.21, subdivision 8b, 15, 
        21, or 24.  In funding proposals with 
        money appropriated under this 
        subdivision, the agency shall give 
        priority to no more than three 
        proposals for pilot projects 
        encouraging homeowners to make 
        improvements to the exteriors of 
        deteriorating properties or assisting 
        homeowners with interior lead hazard 
        reduction in targeted neighborhoods.  
        Eligible proposals must meet the 
        following criteria: 
        (1) the funds will be used to discount 
        the interest rate on the community 
        fix-up fund program for home 
        improvement loans provided through the 
        agency; 
        (2) matching funds are provided from 
        either a local unit of government or a 
        private philanthropic, religious, or 
        charitable organization; and 
        (3) the discounted interest rate loans 
        will be targeted to households based on 
        need, as determined by the housing 
        finance agency in consultation with the 
        community. 
        Communities receiving funds under a 
        proposal for this purpose shall report 
        to the agency on the outcomes of the 
        pilot project, including the number of 
        households served, the cost per 
        household, the changes in property 
        values, if any, in the targeted 
        neighborhood, and improvements, if any, 
        made in the targeted neighborhoods 
        without government subsidy during the 
        same time period as the pilot project.  
        Of this amount, $200,000 each year is 
        for a grant to a nonprofit organization 
        currently operating the CLEARCorps lead 
        hazard reduction project.  The grant 
        must be used as a match for federal 
        funds for mitigation and rehabilitation 
        to reduce lead hazards.  This is a 
        one-time allocation.  
        Subd. 3.  Rental Assistance for Mentally Ill 
        $1,700,000 the first year and 
        $1,700,000 the second year are for a 
        rental housing assistance program for 
        persons with a mental illness or 
        families with an adult member with a 
        mental illness under Minnesota 
        Statutes, section 462A.2097. 
        Subd. 4.  Family Homeless Prevention 
        $3,750,000 the first year and 
        $3,750,000 the second year are for the 
        family homeless prevention and 
        assistance program under Minnesota 
        Statutes, section 462A.204, and are 
        available until June 30, 2003.  Of this 
        amount, $125,000 the first year and 
        $125,000 the second year are one-time 
        appropriations from the state's federal 
        TANF block grant under Title I of 
        Public Law Number 104-193 to the 
        commissioner of human services, to 
        reimburse the housing development fund 
        for assistance under this program for 
        families receiving TANF assistance 
        under the MFIP program.  The 
        commissioner of human services shall 
        make monthly reimbursements to the 
        housing development fund.  The 
        commissioner of human services shall 
        not make any reimbursement which the 
        commissioner determines would be 
        subject to a penalty under Code of 
        Federal Regulations, section 262.1.  If 
        the appropriation in either year is 
        insufficient, the appropriation for the 
        other year is available.  It is the 
        intention of the legislature that the 
        general fund base funding to this 
        program be $7,250,000 for the 2004-2005 
        biennium. 
        Subd. 5.  Home Ownership Education, 
        Counseling, and Training
        $983,000 the first year and $983,000 
        the second year are for the home 
        ownership education, counseling, and 
        training program under Minnesota 
        Statutes, section 462A.209. 
        Of this amount, $125,000 the first year 
        and $125,000 the second year are 
        one-time appropriations for full-cycle 
        home ownership services for 
        non-English-speaking persons, recent 
        immigrants, and historically 
        underserved populations. 
        Subd. 6.  Housing Trust Fund
        $4,623,000 the first year and 
        $4,623,000 the second year are for the 
        housing trust fund to be deposited in 
        the housing trust fund account created 
        under Minnesota Statutes, section 
        462A.201, and used for the purposes 
        provided in that section.  Until 
        January 1, 2002, the agency may 
        administer the appropriations under 
        this subdivision in the same manner as 
        appropriations for Minnesota Statutes 
        2000, sections 462A.201, 462A.205, and 
        462A.21, subdivision 8b.  Among 
        comparable rehabilitation proposals, 
        the agency may give a priority for 
        projects that include lead hazard 
        reduction. 
        Subd. 7.  Affordable Rental Investment Fund
        $22,000,000 the first year and 
        $22,000,000 the second year are for the 
        affordable rental investment fund 
        program under Minnesota Statutes, 
        section 462A.21, subdivision 8b.  Of 
        this amount, $12,000,000 in each year 
        is a one-time appropriation and is not 
        added to the agency's base budget. 
        (a) Of this amount, $10,000,000 the 
        first year and $10,000,000 the second 
        year are to finance the acquisition, 
        rehabilitation, and debt restructuring 
        of federally assisted rental property 
        and for making equity take-out loans 
        under Minnesota Statutes, section 
        462A.05, subdivision 39.  The owner of 
        the federally assisted rental property 
        must agree to participate in the 
        applicable federally assisted housing 
        program and to extend any existing 
        low-income affordability restrictions 
        on the housing for the maximum term 
        permitted.  The owner must also enter 
        into an agreement that gives local 
        units of government, housing and 
        redevelopment authorities, and 
        nonprofit housing organizations the 
        right of first refusal if the rental 
        property is offered for sale.  Priority 
        must be given among comparable 
        properties to properties with the 
        longest remaining term under an 
        agreement for federal rental 
        assistance.  Priority must also be 
        given among comparable rental housing 
        developments to developments that are 
        or will be owned by local government 
        units, a housing and redevelopment 
        authority, or a nonprofit housing 
        organization. 
        (b) Of this appropriation, $12,000,000 
        the first year and $12,000,000 the 
        second year are to be used by the 
        agency to finance permanent and 
        supportive rental housing units and 
        necessary operating cost subsidies 
        related to the units financed and to 
        provide rental assistance.  The 
        appropriation under this paragraph must 
        be used to finance units or provide 
        assistance for families whose household 
        income, at the time of initial 
        occupancy, does not exceed 30 percent 
        of the HUD established median income 
        for the metropolitan area, as defined 
        in Minnesota Statutes, section 473.121, 
        subdivision 2.  The median family 
        income may be adjusted for families of 
        five or more persons.  The owner of 
        units financed with the appropriation 
        under this paragraph must agree to 
        maintain affordability of the units 
        financed under this paragraph for a 
        30-year period. 
        Housing units financed in the 
        metropolitan area with the 
        appropriation under paragraph (b) must 
        be located near public transit that 
        provides regular service and access to 
        jobs, schools, and other services that 
        support self-sufficiency.  
        Housing units financed outside the 
        metropolitan area with the 
        appropriation under paragraph (b) must 
        be located near jobs, schools, and 
        other services that support 
        self-sufficiency. 
        The commissioner shall utilize 
        strategies to:  (1) promote occupancy 
        of the units financed by the 
        appropriation under paragraph (b) by 
        households most in need of subsidized 
        housing and (2) encourage households to 
        move into homeownership or unsubsidized 
        housing as the household achieves 
        economic self-sufficiency. 
        The appropriation under paragraph (b) 
        shall be jointly administered by the 
        commissioners of the Minnesota housing 
        finance agency and the department of 
        human services and the director of the 
        strategic and long-range planning 
        office.  
        [WORKING FAMILY CREDIT.] (a) On a 
        regular basis, the commissioner of 
        revenue, with the assistance of the 
        commissioner of human services, shall 
        calculate the value of the refundable 
        portion of the Minnesota working family 
        credits provided under Minnesota 
        Statutes, section 290.0671, that 
        qualifies for federal reimbursement 
        from the temporary assistance to needy 
        families block grant.  The commissioner 
        of revenue shall provide the 
        commissioner of human services with 
        such expenditure records and 
        information as are necessary to support 
        draw down of federal funds. 
        (b) Federal TANF funds, as specified in 
        this paragraph, are appropriated to the 
        commissioner of housing finance based 
        on calculations under paragraph (a) of 
        working family tax credit expenditures 
        that qualify for reimbursement from the 
        TANF block grant for income tax refunds 
        payable in federal fiscal years 
        beginning October 1, 2001.  The draw 
        down of federal TANF funds shall be 
        made on a regular basis based on 
        calculations of credit expenditures by 
        the commissioner of revenue.  
        $12,000,000 in fiscal year 2002 and 
        $12,000,000 in fiscal year 2003 are 
        appropriated to the commissioner of the 
        housing finance agency.  These funds 
        shall be transferred to the 
        commissioner of revenue to deposit into 
        the general fund.  These funds shall 
        not become part of the 2004-2005 base 
        budget. 
        Subd. 8.  Urban Indian Housing Program 
        $187,000 the first year and $187,000 
        the second year are for the urban 
        Indian housing program under Minnesota 
        Statutes, section 462A.07, subdivision 
        15.  
        Subd. 9.  Tribal Indian Housing Program
        $1,683,000 the first year and 
        $1,683,000 the second year are for the 
        tribal Indian housing program under 
        Minnesota Statutes, section 462A.07, 
        subdivision 14.  
        Subd. 10.  Capacity Building Grants 
        $340,000 the first year and $340,000 
        the second year are for nonprofit 
        capacity building grants under 
        Minnesota Statutes, section 462A.21, 
        subdivision 3b.  
        Subd. 11.  Housing Rehabilitation
        and Accessibility
        $4,287,000 the first year and 
        $4,287,000 the second year are for the 
        housing rehabilitation and 
        accessibility program under Minnesota 
        Statutes, section 462A.05, subdivisions 
        14a and 15a. 
        Subd. 12.  Home Ownership
        Assistance Fund
        $900,000 the first year and $900,000 
        the second year are for the home 
        ownership assistance fund under 
        Minnesota Statutes, section 462A.21, 
        subdivision 8.  
        Subd. 13.  Manufactured Home
        Park Redevelopment
        $400,000 is for the manufactured home 
        park redevelopment program created by 
        Minnesota Statutes, section 462A.2035, 
        and is available until June 30, 2003.  
        This is a one-time appropriation and is 
        not added to the agency's permanent 
        budget base. 
        Subd. 14.  Rental Housing
        Pilot Program
        $100,000 is for a rental housing pilot 
        program to encourage landlords to rent 
        to high-risk tenants with poor rental 
        histories in the counties of Benton, 
        Clay, Dakota, Hennepin, Olmsted, 
        Ramsey, St. Louis, Sherburne, and 
        Stearns.  This is a one-time 
        appropriation available until June 30, 
        2003, and is not added to the agency's 
        permanent budget base. 
        For purposes of this subdivision, 
        preference as a "high-risk tenant" 
        shall be given to a person who has had 
        an application for rental housing 
        denied for reasons other than a felony 
        conviction of that person or previous 
        willful substantial damage to rental 
        housing by that person.  
        The program shall allow local agencies 
        to provide payment bonds to landlords 
        willing to accept high-risk tenants to 
        reimburse them for losses caused by a 
        high-risk tenant.  In selecting 
        recipients for funding under the rental 
        housing pilot program, priority must be 
        given to proposals that include 
        accountability provisions for 
        participating landlords and training 
        for participating tenants.  Local 
        government units, nonprofit agencies, 
        or partnerships between local 
        government units and nonprofit agencies 
        are eligible for funding under the 
        rental housing pilot program.  
        Local government units must provide 
        matching funds, which may include 
        administrative costs, payment bond 
        funding, or property tax credits.  
        The agency shall consult with 
        representatives of the following 
        organizations in selecting recipients 
        for funding under the program:  
        organizations who advocate for tenants 
        and provide tenant training, nonprofit 
        and for-profit housing providers, 
        supportive housing service providers, 
        and tenant screening organizations.  
        The agency must report to the 
        legislature by January 15, 2003, on the 
        effectiveness of the pilot program in 
        securing rental housing for individuals 
        with poor rental histories.  The report 
        must also address the feasibility of 
        and need for expanding the program 
        statewide and recommend best practices. 
        Subd. 15.  Supportive Housing
        Grant
        $100,000 is for a grant to the district 
        287 foundation to assist in the 
        development of supportive housing to 
        provide independent living 
        opportunities for adults with 
        disabilities.  This is a one-time 
        appropriation and is not added to the 
        agency's permanent budget base. 
        Subd. 16.  Cancellations 
        (a) [TRANSFER OF DISASTER RELIEF 
        FUNDS.] The unobligated and 
        unencumbered balance appropriated to 
        the affordable rental investment fund 
        account and the community 
        rehabilitation fund account under Laws 
        1997, Second Special Session chapter 2, 
        section 4, is transferred on July 1, 
        2001, to the housing development fund 
        under Minnesota Statutes, section 
        462A.20.  The unobligated and 
        unencumbered balance appropriated to 
        the affordable rental investment fund 
        account and the community 
        rehabilitation fund account under Laws 
        1998, chapter 383, section 2, is 
        transferred on July 1, 2001, to the 
        housing development fund under 
        Minnesota Statutes, section 462A.20. 
        (b) [RENTAL HOUSING PILOT PROGRAM.] Up 
        to $257,000 of the amount transferred 
        under paragraph (a) is for the rental 
        housing pilot program under subdivision 
        14.  This is a one-time appropriation 
        and is not added to the agency's 
        permanent budget base.  
        (c) [SECTION 8 HOME OWNERSHIP.] Up to 
        $250,000 of the amount transferred 
        under paragraph (a) is for grants to 
        agencies administering the federal 
        section 8 housing program for 
        administrative costs associated with 
        the establishment and operation of 
        section 8 home ownership programs and 
        for grants to public or nonprofit 
        section 8 administering agencies or 
        collaboratives of those agencies to 
        acquire and rehabilitate or construct 
        homes for resale to households eligible 
        for section 8 assistance using section 
        8 vouchers and certificates to finance 
        the home purchases including gap 
        financing.  The administering agencies 
        shall set guidelines for the sale of 
        homes under this subdivision to ensure 
        that a home buyer who later loses 
        eligibility for section 8 assistance 
        due to increased income will have an 
        opportunity to purchase the home and to 
        retain any equity built up in the 
        home.  For purposes of this 
        subdivision, "section 8" means section 
        8 of the United States Housing Act of 
        1937.  This is a one-time appropriation 
        and is not added to the agency's 
        permanent budget base. 
        (d) [HOMELESS VETERANS HOUSING.] 
        $420,000 of the unobligated and 
        unencumbered balance in the local 
        government unit housing account under 
        Minnesota Statutes, section 462A.202, 
        is transferred to the housing trust 
        fund under Minnesota Statutes, section 
        462A.201, for loans and grants to 
        assist in the development, 
        construction, acquisition, or 
        rehabilitation of supportive and 
        permanent housing to serve veterans and 
        single adults who are homeless or at 
        risk of becoming homeless.  The loans 
        or grants must be used for at least two 
        housing projects that: 
        (1) are located on property owned by 
        the United States Department of 
        Veterans Affairs or other property that 
        could be obtained at no cost; 
        (2) provide or coordinate health and 
        social services needed by the 
        residents; and 
        (3) are a collaborative partnership 
        between community agencies and local 
        units of government or the federal 
        government. 
        Sec. 6.  CHILDREN, FAMILIES,
        AND LEARNING                             500,000        500,000
                      Summary by Fund
        General                 250,000       250,000
        TANF                    250,000       250,000 
        [EMERGENCY SERVICES.] $500,000 the 
        first year and $500,000 the second year 
        are one-time appropriations for 
        emergency services grants according to 
        Laws 1997, chapter 162, article 3, 
        section 7. 
        Of this amount, $250,000 the first year 
        and $250,000 the second year are 
        one-time appropriations from the 
        state's federal TANF block grant under 
        Title I of Public Law Number 104-193 to 
        the commissioner of human services. 
        Sec. 7.  INVESTMENT BOARD                100,000        100,000
        $100,000 in each year is for the 
        purpose of paying staff costs related 
        to focusing efforts on investing in 
        Minnesota-based startup businesses 
        under new Minnesota Statutes, section 
        11A.26.  This is a one-time 
        appropriation for this pilot project. * 
        (The preceding section was indicated as 
        vetoed by the governor.) 
        Sec. 8.  COMMERCE 
        Subdivision 1.  Total 
        Appropriation                         27,061,000     27,728,000
                      Summary by Fund
        General              25,398,000    26,029,000
        Petroleum Cleanup     1,064,000     1,084,000 
        Workers'
        Compensation            599,000       615,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Financial Examinations 
             6,379,000      6,555,000
        Subd. 3.  Petroleum Tank Release 
        Cleanup Board 
             1,064,000      1,084,000
        This appropriation is from the 
        petroleum tank release cleanup fund. 
        Subd. 4.  Administrative Services 
             5,852,000      6,003,000 
        Subd. 5.  Enforcement 
        and Compliance                         5,685,000      5,836,000
                      Summary by Fund
        General               5,086,000     5,221,000
        Workers' Compensation   599,000       615,000
        Subd. 6.  Energy 
             3,809,000      3,884,000 
        $588,000 each year is for transfer to 
        the energy and conservation account 
        established in Minnesota Statutes, 
        section 216B.241, subdivision 2a, for 
        programs administered by the 
        commissioner of economic security to 
        improve the energy efficiency of 
        residential oil-fired heating plants in 
        low-income households and, when 
        necessary, to provide weatherization 
        services to the homes. 
        Subd. 7.  Telecommunication 
               986,000      1,008,000 
        Subd. 8.  Weights and Measurement 
             3,286,000      3,358,000 
        Sec. 9.  BOARD OF ACCOUNTANCY            683,000        721,000
        Sec. 10.  BOARD OF ARCHITECTURE,
        ENGINEERING, LAND SURVEYING, 
        LANDSCAPE ARCHITECTURE, GEOSCIENCE, 
        AND INTERIOR DESIGN                      951,000        981,000 
        Sec. 11.  BOARD OF BARBER   
        EXAMINERS                                153,000        159,000
        Sec. 12.  LABOR AND INDUSTRY 
        Subdivision 1.  Total             
        Appropriation                         25,413,000     26,001,000
                      Summary by Fund
        General               3,572,000     3,661,000
        Workers'     
        Compensation         21,048,000    21,532,000
        Special   
        Revenue Fund            793,000       808,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Workers' Compensation 
            10,912,000     11,178,000 
        This appropriation is from the workers' 
        compensation fund. 
        $125,000 the first year and $125,000 
        the second year are for grants to the 
        Vinland Center for rehabilitation 
        service. 
        Subd. 3.  Workplace Services           7,468,000      7,644,000
                      Summary by Fund
        General               2,493,000     2,555,000
        Workers'
        Compensation          4,182,000     4,281,000
        Special   
        Revenue Fund            793,000       808,000 
        $204,000 the first year and $204,000 
        the second year are for labor education 
        and advancement program grants.  This 
        appropriation is from the workforce 
        development fund. 
        Subd. 4.  General Support              7,033,000      7,179,000
                      Summary by Fund
        General               1,079,000     1,106,000
        Workers'     
        Compensation          5,954,000     6,073,000
        $5,000 in the first year is a one-time 
        appropriation for a study and report to 
        the legislature by January 15, 2002, on:
        (1) the extent of wage disparities, 
        both in the public and private sector, 
        between men and women, and between 
        minorities and nonminorities; 
        (2) those factors that cause, or tend 
        to cause, such disparities, including 
        segregation between women and men, and 
        between minorities and nonminorities 
        across and within occupations; payment 
        of lower wages for work in 
        female-dominated occupations; 
        child-rearing responsibilities; and 
        education and training; 
        (3) the consequences of such 
        disparities on the economy and families 
        affected; and 
        (4) actions, including proposed 
        legislation, that are likely to lead to 
        the elimination and prevention of such 
        disparities. 
        Sec. 13.  BUREAU OF MEDIATION SERVICES 
        Subdivision 1.  Total
        Appropriation                          2,259,000      2,307,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Mediation Services           1,957,000      2,005,000
        Subd. 3.  Labor Management 
        Cooperation Grants                       302,000        302,000
        $302,000 each year is for grants to 
        area labor-management committees.  Any 
        unencumbered balance remaining at the 
        end of the first year does not cancel 
        but is available for the second year. 
        Sec. 14.  WORKERS' COMPENSATION
        COURT OF APPEALS                       1,569,000      1,618,000
        This appropriation is from the workers' 
        compensation fund. 
        Sec. 15.  PUBLIC UTILITIES  
        COMMISSION                             3,994,000      4,163,000
        Sec. 16.  MINNESOTA HISTORICAL 
        SOCIETY 
        Subdivision 1.  Total       
        Appropriation                         26,865,000     27,395,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Education and     
        Outreach                              14,935,000     15,412,000
        $150,000 the first year and $200,000 
        the second year are for operating 
        expenses at the Northwest Fur Company 
        Post. 
        $150,000 the first year and $250,000 
        the second year are for operating 
        expenses at the Mill City Museum, St. 
        Anthony Falls. 
        Subd. 3.  Preservation and Access     11,384,000     11,635,000
        Subd. 4.  Fiscal Agent                   546,000        348,000
        (a) Sibley House Association 
                88,000         88,000
        This appropriation is available for 
        operation and maintenance of the Sibley 
        House and related buildings on the Old 
        Mendota state historic site operated by 
        the Sibley House Association.  
        (b) Minnesota International Center 
                50,000         50,000
        (c) Minnesota Air National   
        Guard Museum 
                19,000        -0-
        (d) Institute for Learning and
        Teaching - Project 120
               110,000        110,000 
        (e) Minnesota Military Museum
                79,000        -0-
        (f) Farmamerica
               150,000        100,000 
        Notwithstanding any other law, this 
        appropriation may be used for 
        operations. 
        (g) Little Elk Heritage Preserve
                 50,000           -0-
        This appropriation is to assist the 
        Institute for Minnesota Archaeology in 
        site research and preservation, 
        economic and infrastructure 
        development, public outreach, and 
        education programming.  The 
        appropriated funds may be matched by 
        nonstate sources.  This is a one-time 
        appropriation. 
        (h) Balances Forward
        Any unencumbered balance remaining in 
        this subdivision the first year does 
        not cancel but is available for the 
        second year of the biennium. 
        Subd. 5.  Fund Transfer
        The society may reallocate funds 
        appropriated in and between 
        subdivisions 2 and 3 for any program 
        purposes. 
        Sec. 17.  COUNCIL ON BLACK
        MINNESOTANS                              342,000        352,000
        Sec. 18.  COUNCIL ON 
        CHICANO-LATINO AFFAIRS                   334,000        344,000
        Sec. 19.  COUNCIL ON
        ASIAN-PACIFIC MINNESOTANS                295,000        304,000
        Sec. 20.  INDIAN AFFAIRS
        COUNCIL                                  584,000        602,000
           Sec. 21.  [FEDERAL FUND APPROVAL.] 
           Requests to spend federal grants and aids as shown in the 
        biennial budget document and its supplements for the departments 
        of trade and economic development, economic security, commerce, 
        and labor and industry; the Minnesota housing finance agency; 
        and Minnesota Technology, Inc., for which further review was 
        requested under Minnesota Statutes, section 3.3005, subdivision 
        2a, in January or February 2001, are approved and the amounts 
        shown in the budget documents are appropriated for the purpose 
        indicated in the request. 

                                   ARTICLE 2 
                               POLICY PROVISIONS 
           Section 1.  Minnesota Statutes 2000, section 3.922, is 
        amended by adding a subdivision to read: 
           Subd. 10.  [RULEMAKING.] Notwithstanding section 116J.64, 
        subdivision 7, or other law, the council does not have authority 
        to adopt, amend, or repeal rules or to adjudicate contested 
        cases or appeals.  Rules adopted before the effective date of 
        this subdivision may continue in effect until amended or 
        repealed by law. 
           Sec. 2.  Minnesota Statutes 2000, section 116J.8731, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PURPOSE.] The Minnesota investment fund is 
        created to provide financial assistance, through partnership 
        with communities, for the creation of new employment or to 
        maintain existing employment, and for business start-up, 
        expansions, and retention.  It shall accomplish these goals by 
        the following means: 
           (1) creation or retention of permanent private-sector jobs 
        in order to create above-average economic growth consistent with 
        environmental protection, which includes investments in 
        technology and equipment that increase productivity and provide 
        for a higher wage; 
           (2) stimulation or leverage of private investment to ensure 
        economic renewal and competitiveness; 
           (3) increasing the local tax base, based on demonstrated 
        measurable outcomes, to guarantee a diversified industry mix; 
           (4) improvement of employment and economic opportunity for 
        citizens in the region to create a reasonable standard of 
        living, consistent with federal and state guidelines on low- to 
        moderate-income persons; and 
           (5) stimulation of productivity growth through improved 
        manufacturing or new technologies, including cold weather 
        testing.  
           Sec. 3.  Minnesota Statutes 2000, section 116L.03, is 
        amended to read: 
           116L.03 [BOARD.] 
           Subdivision 1.  [MEMBERS.] The partnership shall be 
        governed by a board of 12 13 directors.  
           Subd. 2.  [APPOINTMENT.] The Minnesota job skills 
        partnership board consists of:  nine seven members appointed by 
        the governor, the chair of the governor's workforce development 
        council, the commissioner of trade and economic development, the 
        commissioner of economic security, and the chancellor, or the 
        chancellor's designee, of the Minnesota state colleges and 
        universities, the president, or the president's designee, of the 
        University of Minnesota, and two nonlegislator members, one 
        appointed by the subcommittee on committees of the senate 
        committee on rules and administration and one appointed by the 
        speaker of the house.  If the chancellor or the president of the 
        university makes a designation under this subdivision, the 
        designee must have experience in technical education.  Two Four 
        of the appointed members must be representatives from members of 
        the governor's workforce development council, of whom two must 
        represent organized labor and two must represent business and 
        industry.  One of the appointed members must be a representative 
        of a nonprofit organization that provides workforce development 
        or job training services. 
           Subd. 3.  [QUALIFICATIONS.] Members must have expertise in, 
        and be representative of the following fields of education, job 
        skills training, labor, business, and government.  
           Subd. 4.  [CHAIR.] The chair shall be appointed by the 
        governor.  
           Subd. 5.  [TERMS.] The terms of appointed members shall be 
        for four years except for the initial appointments.  The initial 
        appointments of the governor shall have the following terms:  
        two members each for one, two, three, and four years.  No member 
        shall serve more than two terms, and no person shall be 
        appointed after December 31, 2001, for any term that would cause 
        that person to serve a total of more than eight years on the 
        board.  Compensation for board members is as provided in section 
        15.0575, subdivision 3. 
           Subd. 7.  [OFFICES.] The department of trade and economic 
        development shall provide staff and administrative services for 
        the board.  The department of trade and economic development 
        shall provide office space and staff to the job skills 
        partnership board for the execution of its duties.  The board 
        shall hire an executive director to assist in carrying out its 
        duties. 
           Sec. 4.  Minnesota Statutes 2000, section 116L.04, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [PERFORMANCE STANDARDS AND REPORTING.] By January 
        15, 2002, the board must develop performance standards for 
        workforce development and job training programs receiving state 
        funding.  The standards may vary across program types.  The 
        board may contract with a consultant to develop the performance 
        standards.  The board must consult with stakeholder advocacy 
        groups, nonprofit service providers, and local workforce 
        councils in the development of both performance standards and 
        reporting requirements.  The adult standards must at a minimum 
        measure: 
           (1) the employability levels of individuals as defined by 
        basic skill level, the amount of work experience, and barriers 
        to employment prior to program entry; 
           (2) the individual's annual income and employability level 
        for the 12 months prior to entering the program, the starting 
        annual income upon placement after completing the program, 
        employability level and annual income one year after completion 
        of the program, and the individual's reported satisfaction; 
           (3) the program completion rate, placement rate, 
        employability level upon placement, and one-year retention rate; 
        and 
           (4) the governmental cost per placement and per job 
        retained at one year and the percentage of program funding 
        coming from the state and other levels of government. 
        After January 15, 2002, all workforce development programs 
        receiving state funds must submit an annual performance report 
        to the board.  The board may develop a uniform format for the 
        report and prescribe the manner in which the report is required 
        to be submitted.  
           Sec. 5.  Minnesota Statutes 2000, section 116L.05, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [LEGISLATIVE RECOMMENDATIONS.] By January 15 of 
        each odd-numbered year, the board must submit recommendations to 
        the house and senate committees with jurisdiction over workforce 
        development programs, regarding modifications to, or elimination 
        of, existing workforce development programs and the potential 
        implementation of new programs.  The recommendations must 
        include recommendations regarding funding levels and sources.  
           Sec. 6.  Minnesota Statutes 2000, section 116L.16, is 
        amended to read: 
           116L.16 [DISTANCE-WORK GRANTS.] 
           The job skills partnership board may make grants-in-aid for 
        distance-work projects.  The purpose of the grants is to promote 
        distance-work projects involving technology in rural areas and 
        may include a consortium of organizations partnering in the 
        development of rural technology industry.  Grants may be used to 
        identify and train rural workers in technology, act as a 
        catalyst to bring together employers and rural employees to 
        perform distance work, and provide rural workers with physical 
        connections to telecommunications infrastructure, where 
        necessary, in order to be self-employed or employed from their 
        homes or satellite offices.  Grants must be made according to 
        sections 116L.02 and 116L.04, except that: 
           (1) the business match may include, but is not limited 
        to, office space; additional management or technology staff 
        costs; start-up equipment costs such as telecommunications 
        infrastructure, additional software, or computer upgrades; 
        consulting fees for implementation of distance-work policies or 
        identification and skill assessment of potential employees; and 
        the joint financial contribution of two or more businesses 
        acting as a consortium; 
           (2) cash or in-kind contributions by partnering 
        organizations may be used as a match; 
           (3) eligible grantees may be educational or nonprofit 
        educational training organizations; and 
           (4) grants-in-aid may be packaged with loans under section 
        116L.06, subdivision 6; and 
           (5) with respect to grants serving as a catalyst to bring 
        together employers and rural employees to perform distance work, 
        the match must be at least one-to-two. 
           The board shall, to the extent there are sufficient 
        applications, make grant awards to as many parts of the state as 
        possible.  Subject to the requirement for geographic 
        distribution of grants, preference shall be given to grant 
        applications that provide the most cost-effective training 
        proposals, that provide the best prospects for high-paying jobs 
        with high retention rates, or that are from more economically 
        distressed rural areas or communities. 
           Grantees must meet reporting and evaluation requirements 
        established by the board. 
           Sec. 7.  [116L.17] [STATE DISLOCATED WORKER PROGRAM.] 
           Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
        section, the following terms have the meanings given them in 
        this subdivision. 
           (b) "Dislocated worker" means an individual who is a 
        resident of Minnesota at the time employment ceased or was 
        working in the state at the time employment ceased and: 
           (1) has been terminated or has received a notice of 
        termination from public or private sector employment, is 
        eligible for or has exhausted entitlement to unemployment 
        benefits, and is unlikely to return to the previous industry or 
        occupation; 
           (2) has been terminated or has received a notice of 
        termination of employment as a result of any plant closing or 
        any substantial layoff at a plant, facility, or enterprise; 
           (3) has been long-term unemployed and has limited 
        opportunities for employment or reemployment in the same or a 
        similar occupation in the area in which the individual resides, 
        including older individuals who may have substantial barriers to 
        employment by reason of age; 
           (4) has been self-employed, including farmers and ranchers, 
        and is unemployed as a result of general economic conditions in 
        the community in which the individual resides or because of 
        natural disasters, subject to rules to be adopted by the 
        commissioner; 
           (5) has been self-employed as a farmer or rancher and, even 
        though that employment has not ceased, has experienced a 
        significant reduction in income due to inadequate crop or 
        livestock prices, crop failures, or significant loss in crop 
        yields due to pests, disease, adverse weather, or other natural 
        phenomenon.  This clause expires July 31, 2003; or 
           (6) is a displaced homemaker.  A "displaced homemaker" is 
        an individual who has spent a substantial number of years in the 
        home providing homemaking service and (i) has been dependent 
        upon the financial support of another; and now due to divorce, 
        separation, death, or disability of that person, must find 
        employment to self support; or (ii) derived the substantial 
        share of support from public assistance on account of dependents 
        in the home and no longer receives such support. 
           To be eligible under this clause, the support must have 
        ceased while the worker resided in Minnesota.  
           (c) "Eligible organization" means a state or local 
        government unit, nonprofit organization, community action 
        agency, business organization or association, or labor 
        organization. 
           (d) "Plant closing" means the announced or actual permanent 
        shutdown of a single site of employment, or one or more 
        facilities or operating units within a single site of employment.
           (e) "Substantial layoff" means a permanent reduction in the 
        workforce, which is not a result of a plant closing, and which 
        results in an employment loss at a single site of employment 
        during any 30-day period for at least 50 employees excluding 
        those employees that work less than 20 hours per week. 
           Subd. 2.  [GRANTS.] The board shall make grants to 
        workforce service areas or other eligible organizations to 
        provide services to dislocated workers.  The board shall 
        allocate funds available for the purposes of this section in its 
        discretion to respond to large layoffs.  The board shall 
        regularly allocate funds to provide services to individual 
        dislocated workers or small groups.  The allocation for this 
        purpose must be no less than 35 percent and no more than 50 
        percent of the projected collections, interest and other 
        earnings of the workforce development fund during the period for 
        which the allocation is made, less any collection costs paid out 
        of the fund.  The board shall consider the need for services to 
        individual workers and workers in small layoffs in comparison to 
        those in large layoffs relative to the needs in previous years 
        when making this allocation.  The board may, in its discretion, 
        allocate funds carried forward from previous years under 
        subdivision 9 for large, small, or individual layoffs. 
           Subd. 3.  [ALLOCATION OF FUNDS.] The board, in consultation 
        with local workforce councils and local elected officials, shall 
        develop a method of distributing funds to provide services for 
        dislocated workers who are dislocated as a result of small or 
        individual layoffs.  The board shall consider current requests 
        for services and the likelihood of future layoffs when making 
        this allocation.  The board shall consider factors for 
        determining the allocation amounts that include, but are not 
        limited to, the previous year's obligations and projected 
        layoffs.  After the first quarter of the program year, the board 
        shall evaluate the obligations by workforce service areas for 
        the purpose of reallocating funds to workforce service areas 
        with increased demand for services.  Periodically throughout the 
        program year, the board shall consider making additional 
        allocations to the workforce service areas with a demonstrated 
        need for increased funding.  The board shall make an initial 
        determination regarding allocations under this subdivision by 
        July 15, 2001, and in subsequent years shall make a 
        determination by April 15. 
           [EFFECTIVE DATE.] This subdivision is effective the day 
        following final enactment. 
           Subd. 4.  [USE OF FUNDS.] Funds granted by the board under 
        this section may be used for any combination of the following, 
        except as otherwise provided in this section: 
           (1) employment transition services such as developing 
        readjustment plans for individuals; outreach and intake; early 
        readjustment; job or career counseling; testing; orientation; 
        assessment of skills and aptitudes; provision of occupational 
        and labor market information; job placement assistance; job 
        search; job development; prelayoff assistance; relocation 
        assistance; and programs provided in cooperation with employers 
        or labor organizations to provide early intervention in the 
        event of plant closings or substantial layoffs; 
           (2) services that will allow the participant to become 
        reemployed by retraining for a new occupation or industry, 
        enhancing current skills, or relocating to employ existing 
        skills, including classroom training; occupational skill 
        training; on-the-job training; out-of-area job search; 
        relocation; basic and remedial education; literacy and English 
        for training non-English speakers; entrepreneurial training; and 
        other appropriate training activities directly related to 
        appropriate employment opportunities in the local labor market; 
        and 
           (3) support services, including family care assistance, 
        including child care; commuting assistance; housing and rental 
        assistance; counseling assistance, including personal and 
        financial; health care; emergency health assistance; emergency 
        financial assistance; work-related tools and clothing; and other 
        appropriate support services that enable a person to participate 
        in an employment and training program. 
           Subd. 5.  [COST LIMITATIONS.] Funds allocated to a grantee 
        are subject to the following cost limitations: 
           (1) no more than 10 percent may be allocated for 
        administration; 
           (2) at least 50 percent must be allocated for training 
        assistance as provided in subdivision 4, clause (2); and 
           (3) no more than 15 percent may be allocated for support 
        services as provided in subdivision 4, clause (3). 
           A waiver of the training assistance minimum in clause (2) 
        may be sought, but no waiver shall allow less than 30 percent of 
        the grant to be spent on training assistance.  A waiver of the 
        support services maximum in clause (3) may be sought, but no 
        waiver shall allow more than 20 percent of the grant to be spent 
        on support services. 
           Subd. 6.  [PERFORMANCE STANDARDS.] (a) The board, in 
        consultation with representatives of local workforce councils 
        and local elected officials, shall establish performance 
        standards for the programs and activities administered or funded 
        under this section.  The board may use, when appropriate, 
        existing federal performance standards or, if the commissioner 
        determines that federal standards are inadequate or not 
        suitable, may formulate new performance standards to ensure that 
        the programs and activities of the dislocated worker program are 
        effectively administered. 
           (b) The board shall, at a minimum, establish performance 
        standards that appropriately gauge the program's effectiveness 
        at placing dislocated workers in employment, replacing lost 
        income resulting from dislocation, early intervention with 
        workers shortly after dislocation, and retraining of workers 
        from one industry or occupation to another. 
           Subd. 7.  [REPORTS.] (a) Grantees receiving funds under 
        this section shall report to the board information on program 
        participants, activities funded, and utilization of funds in a 
        form and manner prescribed by the board. 
           (b) The board shall report quarterly to the workforce 
        development council information on grants awarded, activities 
        funded, and plant closings and substantial layoffs.  Specific 
        information to be reported shall be by agreement between the 
        board and the workforce development council. 
           Subd. 8.  [ADMINISTRATIVE COSTS.] No more than three 
        percent of the funds appropriated to the board for the purposes 
        of this section may be spent by the board for its administrative 
        costs. 
           Subd. 9.  [CARRY FORWARD.] Any funds not allocated, 
        obligated, or expended in a fiscal year shall be available for 
        allocation, obligation, and expenditure in the following fiscal 
        year. 
           Sec. 8.  Minnesota Statutes 2000, section 138.664, is 
        amended by adding a subdivision to read: 
           Subd. 50a.  Little Elk Heritage Preserve, Morrison county. 
           Sec. 9.  [181.9455] [LEAVE FOR ORGAN DONATION.] 
           Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
        section, the following terms have the meanings given to them in 
        this subdivision. 
           (b) "Employee" means a person who performs services for 
        hire for a public employer, for an average of 20 or more hours 
        per week, and includes all individuals employed at any site 
        owned or operated by a public employer.  Employee does not 
        include an independent contractor. 
           (c) "Employer" means a state, county, city, town, school 
        district, or other governmental subdivision that employs 20 or 
        more employees. 
           Subd. 2.  [LEAVE.] An employer must grant paid leaves of 
        absence to an employee who seeks to undergo a medical procedure 
        to donate an organ or partial organ to another person.  The 
        combined length of the leaves shall be determined by the 
        employee, but may not exceed 40 work hours for each donation, 
        unless agreed to by the employer.  The employer may require 
        verification by a physician of the purpose and length of each 
        leave requested by the employee for organ donation.  If there is 
        a medical determination that the employee does not qualify as an 
        organ donor, the paid leave of absence granted to the employee 
        prior to that medical determination is not forfeited. 
           Subd. 3.  [NO EMPLOYER SANCTIONS.] An employer shall not 
        retaliate against an employee for requesting or obtaining a 
        leave of absence as provided by this section. 
           Subd. 4.  [RELATIONSHIP TO OTHER LEAVE.] This section does 
        not prevent an employer from providing leave for organ donations 
        in addition to leave allowed under this section.  This section 
        does not affect an employee's rights with respect to any other 
        employment benefit. 
           Subd. 5.  [REPORT.] The commissioner of employee relations 
        must report to the legislature on the use and costs of the leave 
        under this section. The report must be made by February 15, 2003.
           Subd. 6.  [SUNSET.] This section expires on June 30, 2004. 
           Sec. 10.  Minnesota Statutes 2000, section 184.29, is 
        amended to read: 
           184.29 [FEES.] 
           Before a license is granted to an applicant, the applicant 
        shall pay the following fee: 
           (a) An employment agent shall pay an annual license fee of 
        $250 for each license.  
           (b) A search firm exempt under section 184.22, subdivision 
        2, shall pay an annual registration fee of $250, accompanying 
        the annual statement to the commissioner.  
           (c) An applicant for a counselor's license shall pay a 
        license fee of $20 and a renewal fee of $10.  
           (d) (c) An applicant for an employment agency manager's 
        license shall pay a license fee of $20 and a renewal fee of $10. 
           [EFFECTIVE DATE.] This section is effective July 1, 2003. 
           Sec. 11.  Minnesota Statutes 2000, section 184.30, 
        subdivision 1, is amended to read: 
           Subdivision 1.  Every application for an employment 
        agency's license, and every annual report required to be filed 
        under section 184.22, subdivision 2, must be accompanied by a 
        surety bond approved by the department in the amount of $10,000 
        for each location; except, that for a search firm, the bond is 
        required only for the first five years of registration.  For a 
        search firm that was previously licensed as an employment 
        agency, the bond is required only until the firm has met the 
        bond requirement as an agency or as a search firm for a total of 
        at least five years.  The bond must be filed in the office of 
        the secretary of state and conditioned that the employment 
        agency and each member, shareholder, director, or officer of a 
        firm, partnership, corporation, or association operating as an 
        employment agency will comply with the provisions of sections 
        184.21 to 184.40 and any contract made by the employment agent 
        in the conduct of the business.  A person damaged by a breach of 
        any condition of the bond may bring an action on the bond, and 
        successive actions may be maintained on it. 
           [EFFECTIVE DATE.] This section is effective July 1, 2003. 
           Sec. 12.  Minnesota Statutes 2000, section 184.38, 
        subdivision 6, is amended to read: 
           Subd. 6.  (a) No employment agent or search firm shall send 
        out any applicant for employment without having obtained a job 
        order, and if no employment of the kind applied for existed at 
        the place to which the applicant was directed, the employment 
        agent or search firm shall refund to the applicant, within 48 
        hours of demand, any sums paid by the applicant for 
        transportation in going to and returning from the place. 
           (b) Nothing in this chapter shall be construed to prevent 
        an employment agent or search firm from directing an applicant 
        to an employer where the employer has previously requested 
        interviews with applicants of certain types and qualifications, 
        even though no actual vacancy existed in the employer's 
        organization at the time the applicant was so directed; nor 
        shall it prevent the employment agent or search firm from 
        attempting to sell the services of an applicant to the employer 
        even though no order has been placed with the employment agent 
        or search firm; provided, that prior to scheduling an interview 
        with an employer, when no opening currently exists with that 
        employer, the applicant is clearly informed that no opening 
        exists at that time. 
           [EFFECTIVE DATE.] This section is effective July 1, 2003. 
           Sec. 13.  Minnesota Statutes 2000, section 184.38, 
        subdivision 8, is amended to read: 
           Subd. 8.  No employment agent or search firm shall 
        knowingly cause to be printed or published a false or fraudulent 
        notice or advertisement for help or for obtaining work or 
        employment.  For purposes of this subdivision the phrase "false 
        or fraudulent notice or advertisement" shall include the 
        following: 
           (a) The advertisement of any job for which there is no bona 
        fide oral or written job order and completed job order form in 
        existence at the time the advertisement is placed; 
           (b) The inclusion in any advertisement of any information 
        concerning the identity, availability, features, or requirements 
        of any advertised job when such information is not substantiated 
        by, and included in, the supporting job order form; 
           (c) The advertisement of any job opening of the type 
        described in subdivision 6, clause (b); 
           (d) The advertisement of any job without the inclusion in 
        the advertisement of the "job order number" required in 
        subdivision 18; 
           (e) If an applicant appears at any agency or search firm in 
        response to the advertisement of a particular job, the failure 
        to attempt placement of the applicant in the advertised job; 
        provided however, that the agency or search firm may refuse to 
        attempt such placement if the reason(s) for the refusal are 
        clearly and truthfully disclosed to the applicant either orally 
        or in writing. 
           [EFFECTIVE DATE.] This section is effective July 1, 2003. 
           Sec. 14.  Minnesota Statutes 2000, section 184.38, 
        subdivision 9, is amended to read: 
           Subd. 9.  No employment agent or search firm shall place or 
        assist in placing any person in unlawful employment. 
           [EFFECTIVE DATE.] This section is effective July 1, 2003. 
           Sec. 15.  Minnesota Statutes 2000, section 184.38, 
        subdivision 10, is amended to read: 
           Subd. 10.  No employment agent or search firm shall fail to 
        state in any advertisement, proposal, or contract for 
        employment, that there is a strike or lockout at the place of 
        proposed employment, if the agent or firm has knowledge that 
        such condition exists. 
           [EFFECTIVE DATE.] This section is effective July 1, 2003. 
           Sec. 16.  Minnesota Statutes 2000, section 184.38, 
        subdivision 11, is amended to read: 
           Subd. 11.  No employment agency or its employee may split, 
        divide, or share, directly or indirectly, any fee, charge, or 
        compensation received from any employer or applicant with any 
        employer, or person in any way connected with the employer's 
        business.  No search firm or its employee may split, divide, or 
        share, directly or indirectly, any fee, charge, or compensation 
        received from any employer with any person connected in any way 
        with the employer's business.  A violation of this subdivision 
        shall be punished by a fine of not less than $100, and not more 
        than $3,000, or on failure to pay the fine by imprisonment for a 
        period not to exceed one year, or both, at the discretion of the 
        court. 
           [EFFECTIVE DATE.] This section is effective July 1, 2003. 
           Sec. 17.  Minnesota Statutes 2000, section 184.38, 
        subdivision 17, is amended to read: 
           Subd. 17.  Except for applicant information given in the 
        course of normal agency or firm operations, no employment agent 
        or search firm shall voluntarily sell, give, or otherwise 
        transfer any files, records, or other information relating to 
        its employment agency or search firm applicants and employers to 
        any person other than a licensed employment agent or registered 
        search firm or a person who agrees to obtain an employment 
        agency license or register as a search firm.  Every employment 
        agent or search firm who ceases to engage in the business of or 
        act as an employment agent or search firm shall notify the 
        department of such fact within 30 days thereof, and shall advise 
        the department as to the disposition of all files and other 
        records relating to its employment agency or search firm 
        business. 
           [EFFECTIVE DATE.] This section is effective July 1, 2003. 
           Sec. 18.  Minnesota Statutes 2000, section 184.38, 
        subdivision 18, is amended to read: 
           Subd. 18.  Every job order communicated to an agency or 
        search firm shall be recorded by the agency or search firm on a 
        job order form which form shall contain specific information as 
        prescribed by the department.  A job order form shall be filled 
        out for each job order prior to any attempt to advertise the job 
        opening or to place persons in said job.  Such forms shall each 
        be assigned a separate number and shall be maintained by the 
        agency or search firm for a period of one year. 
           [EFFECTIVE DATE.] This section is effective July 1, 2003. 
           Sec. 19.  Minnesota Statutes 2000, section 184.38, 
        subdivision 20, is amended to read: 
           Subd. 20.  No employment agent or search firm shall 
        knowingly misrepresent to any employer the educational 
        background, skills, or qualifications of any job candidate; or 
        knowingly misrepresent to a job candidate the responsibilities, 
        salary, or other features of any position of employment.  
           [EFFECTIVE DATE.] This section is effective July 1, 2003. 
           Sec. 20.  Minnesota Statutes 2000, section 184.41, is 
        amended to read: 
           184.41 [VIOLATIONS.] 
           Any person who engages in the business of or acts as an 
        employment agent or counselor without first procuring a license 
        as required by section 184.22, and any employment agent, 
        manager, or counselor who violates the provisions of this 
        chapter, and any exempt firm which violates any of the 
        applicable provisions of this chapter, is guilty of a 
        misdemeanor.  
           In addition to the penalties for commission of a 
        misdemeanor, the department may bring an action for an 
        injunction against any person who engages in the business of or 
        acts as an employment agent or counselor without first procuring 
        the license required under section 184.22, or who engages in the 
        business of or acts as a search firm without first filing the 
        registration required under section 184.22, subdivision 3, and 
        against any employment agent, manager, or counselor, or search 
        firm who violates the applicable provisions of this chapter.  If 
        an agency, manager, or counselor, or search firm is found guilty 
        of a misdemeanor in any action relevant to the operation of an 
        agency, or search firm the department may suspend or revoke the 
        license or registration of the agency, manager, or counselor, or 
        search firm. 
           [EFFECTIVE DATE.] This section is effective July 1, 2003. 
           Sec. 21.  Minnesota Statutes 2000, section 216C.41, as 
        amended by Laws 2001, chapter 212, article 5, section 1, is 
        amended to read: 
           216C.41 [RENEWABLE ENERGY PRODUCTION INCENTIVE.] 
           Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
        subdivision apply to this section. 
           (b) "Qualified hydroelectric facility" means a 
        hydroelectric generating facility in this state that: 
           (1) is located at the site of a dam, if the dam was in 
        existence as of March 31, 1994; and 
           (2) begins generating electricity after July 1, 1994, or 
        generates electricity after substantial refurbishing of a 
        facility that begins after July 1, 2001. 
           (c) "Qualified wind energy conversion facility" means a 
        wind energy conversion system that: 
           (1) produces two megawatts or less of electricity as 
        measured by nameplate rating and begins generating electricity 
        after June 30, 1997 December 31, 1996, and before July 1, 1999; 
           (2) begins generating electricity after June 30, 1999, 
        produces two megawatts or less of electricity as measured by 
        nameplate rating, and is: 
           (i) located within one county and owned by a natural person 
        who owns the land where the facility is sited; 
           (ii) owned by a Minnesota small business as defined in 
        section 645.445; 
           (iii) owned by a nonprofit organization; or 
           (iv) owned by a tribal council if the facility is located 
        within the boundaries of the reservation; or 
           (3) begins generating electricity after June 30, 1999, 
        produces seven megawatts or less of electricity as measured by 
        nameplate rating, and: 
           (i) is owned by a cooperative organized under chapter 308A; 
        and 
           (ii) all shares and membership in the cooperative are held 
        by natural persons or estates, at least 51 percent of whom 
        reside in a county or contiguous to a county where the wind 
        energy production facilities of the cooperative are located. 
           (d) "Qualified on-farm biogas recovery facility" means an 
        anaerobic digester system that: 
           (1) is located at the site of an agricultural operation; 
           (2) is owned by a natural person who owns or rents the land 
        where the facility is located; and 
           (3) begins generating electricity after July 1, 2001.  
           (e) "Anaerobic digester system" means a system of 
        components that processes animal waste based on the absence of 
        oxygen and produces gas used to generate electricity. 
           Subd. 2.  [INCENTIVE PAYMENT; APPROPRIATION.] (a) Incentive 
        payments shall must be made according to this section to (1) a 
        qualified on-farm biogas recovery facility, (2) the owner or 
        operator of a qualified hydropower facility or qualified wind 
        energy conversion facility for electric energy generated and 
        sold by the facility or, for, (3) a publicly owned hydropower 
        facility, for electric energy that is generated by the facility 
        and used by the owner of the facility outside the facility, or 
        (4) the owner of a publicly owned dam that is in need of 
        substantial repair, for electric energy that is generated by a 
        hydropower facility at the dam and the annual incentive payments 
        will be used to fund the structural repairs and replacement of 
        structural components of the dam, or to retire debt incurred to 
        fund those repairs.  
           (b) Payment may only be made upon receipt by the 
        commissioner of finance of an incentive payment application that 
        establishes that the applicant is eligible to receive an 
        incentive payment and that satisfies other requirements the 
        commissioner deems necessary.  The application shall must be in 
        a form and submitted at a time the commissioner establishes.  
           (c) There is annually appropriated from the general fund 
        sums sufficient to make the payments required under this section.
           Subd. 3.  [ELIGIBILITY WINDOW.] Payments may be made under 
        this section only for electricity generated: 
           (1) from a qualified hydroelectric facility that is 
        operational and generating electricity before December 31, 
        2002 2005; or 
           (2) from a qualified wind energy conversion facility that 
        is operational and generating electricity before January 1, 
        2005; or 
           (3) from a qualified on-farm biogas recovery facility from 
        July 1, 2001, through December 31, 2015. 
           Subd. 4.  [PAYMENT PERIOD.] (a) A facility may receive 
        payments under this section for a ten-year period.  No payment 
        under this section may be made for electricity generated: 
           (1) by a qualified hydroelectric facility after December 
        31, 2010 2015; or 
           (2) by a qualified wind energy conversion facility after 
        December 31, 2015; or 
           (3) by a qualified on-farm biogas recovery facility after 
        December 31, 2015.  
           (b) The payment period begins and runs consecutively from 
        the first year in which electricity generated from the facility 
        is eligible for incentive payment or after substantial repairs 
        to the hydropower facility dam funded by the incentive payments 
        are initiated. 
           Subd. 5.  [AMOUNT OF PAYMENT.] An incentive payment is 
        based on the number of kilowatt hours of electricity generated. 
        The amount of the payment is: 
           (1) for a facility described under subdivision 2, paragraph 
        (a), clause (4), 1.0 cents per kilowatt hour; and 
           (2) for all other facilities, 1.5 cents per kilowatt hour.  
           For electricity generated by qualified wind energy 
        conversion facilities, the incentive payment under this section 
        is limited to no more than 100 megawatts of nameplate capacity.  
        During any period in which qualifying claims for incentive 
        payments exceed 100 megawatts of nameplate capacity, the 
        payments must be made to producers in the order in which the 
        production capacity was brought into production.  
           Sec. 22.  Minnesota Statutes 2000, section 268.022, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DISBURSEMENT OF SPECIAL ASSESSMENT FUNDS.] (a) 
        The money collected under this section shall be deposited in the 
        state treasury and credited to the workforce development fund to 
        provide for employment and training programs.  The workforce 
        development fund is created as a special account in the state 
        treasury. 
           (b) All money in the fund not otherwise appropriated or 
        transferred is appropriated to the commissioner who job skills 
        partnership board for the purposes of section 116L.17.  The 
        board must act as the fiscal agent for the money and must 
        disburse that money for the purposes of this section 116L.17, 
        not allowing the money to be used for any other obligation of 
        the state.  All money in the workforce development fund shall be 
        deposited, administered, and disbursed in the same manner and 
        under the same conditions and requirements as are provided by 
        law for the other special accounts in the state treasury, except 
        that all interest or net income resulting from the investment or 
        deposit of money in the fund shall accrue to the fund for the 
        purposes of the fund. 
           (c) No more than five percent of the funds collected in 
        each fiscal year may be used by the department of economic 
        security for its administrative costs. 
           (d) Reimbursement for costs related to collection of the 
        special assessment shall be in an amount negotiated between the 
        commissioner and the United States Department of Labor. 
           (e) The funds appropriated to the commissioner, less 
        amounts under paragraphs (c) and (d) shall be allocated as 
        follows:  
           (1) 40 percent to be allocated annually to substate 
        grantees for provision of expeditious response activities under 
        section 268.9771 and worker adjustment services under section 
        268.9781; and 
           (2) 60 percent to be allocated to activities and programs 
        authorized under sections 268.975 to 268.98. 
           (f) Any funds not allocated, obligated, or expended in a 
        fiscal year shall be available for allocation, obligation, and 
        expenditure in the following fiscal year. 
           Sec. 23.  Minnesota Statutes 2000, section 268.145, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [NOTIFICATION.] (a) Upon filing an 
        application for unemployment benefits, the applicant shall be 
        informed that: 
           (1) unemployment benefits are subject to federal and state 
        income tax; 
           (2) there are requirements for filing estimated tax 
        payments; 
           (3) the applicant may elect to have federal income tax 
        withheld from unemployment benefits; 
           (4) if the applicant elects to have federal income tax 
        withheld, the applicant may, in addition, elect to have 
        Minnesota state income tax withheld; and 
           (5) at any time during the benefit year the applicant may 
        change a prior election. 
           (b) If an applicant elects to have federal income tax 
        withheld, the commissioner shall deduct 15 ten percent for 
        federal income tax, rounded to the nearest whole dollar.  If an 
        applicant also elects to have Minnesota state income tax 
        withheld, the commissioner shall make an additional five percent 
        deduction for state income tax.  Any amounts deducted or offset 
        pursuant to sections 268.155, 268.156, 268.18, and 268.184 have 
        priority over any amounts deducted under this section.  Federal 
        income tax withholding has priority over state income tax 
        withholding. 
           (c) An election to have income tax withheld shall not be 
        retroactive and shall only apply to unemployment benefits paid 
        after the election. 
           [EFFECTIVE DATE.] This section is effective August 1, 2001. 
           Sec. 24.  Minnesota Statutes 2000, section 268.665, is 
        amended by adding a subdivision to read: 
           Subd. 3a.  [EXECUTIVE COMMITTEE DUTIES.] The executive 
        committee must, with advice and input of local workforce 
        councils and other stakeholders as appropriate, develop 
        performance standards for the state workforce centers.  By 
        January 15, 2002, and each odd-numbered year thereafter, the 
        executive committee shall submit a report to the senate and 
        house committees with jurisdiction over workforce development 
        programs regarding the performance and outcomes of the workforce 
        centers.  The report must provide recommendations regarding 
        workforce center funding levels and sources, program changes, 
        and administrative changes.  
           Sec. 25.  Minnesota Statutes 2000, section 473.195, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [HRA GOVERNING BOARD.] For the purposes of 
        exercising the authority granted to it under this section, the 
        council may, at its sole discretion, establish within the 
        council's existing organizational structure a separate governing 
        body to which the council may delegate any or all of the 
        authority granted to the council under this section.  The 
        resolution establishing the separate governing body must: 
           (1) set out the powers and duties delegated to the separate 
        governing body; 
           (2) prescribe the number, qualifications, and terms of its 
        members; and 
           (3) provide for any other terms and conditions that are 
        deemed appropriate by the council. 
        The council shall appoint the members of the separate governing 
        body in accordance with a process established by the council.  
        No fewer than 75 percent of the members of the separate 
        governing body must be council members.  For purposes of 
        compliance with United States Code, title 42, section 1437(b), 
        and implementing federal regulations, at least one member of the 
        separate governing body members must be a resident directly 
        assisted by the council.  Members are entitled to reimbursement 
        for all actual and necessary expenses incurred in the 
        performance of governing body business, and a member other than 
        a council member is entitled to payment of $50 for each day the 
        member attends one or more meetings of the separate governing 
        body or performs other services authorized by the body.  The 
        council shall provide administrative and staff support to the 
        separate governing body.  The council may, at its sole 
        discretion, abolish the separate governing body or limit or 
        expand its delegated authority.  Nothing in this section impairs 
        existing contracts to which the council is a party or limits the 
        council's ability to enter into contracts when the council 
        exercises any of the functions, rights, powers, duties, 
        privileges, immunities, and limitations granted to the council 
        by this section. 
           Sec. 26.  Laws 1993, chapter 301, section 1, subdivision 4, 
        as amended by Laws 1999, chapter 47, section 1, is amended to 
        read: 
           Subd. 4.  [WAIVER.] (a) Upon receipt of the committee 
        report required by subdivision 3, each entity head shall submit 
        the list of recommended waivers to the commissioner of employee 
        relations.  The commissioner shall then grant the waivers 
        requested by each entity, effective for the requesting entity, 
        for a period ending June 30, 1997, except the waivers granted 
        for the Minnesota housing finance agency shall extend to June 
        30, 2001 2003, subject to the restrictions in paragraph (b) and 
        to revision in accordance with subdivision 5.  The commissioner 
        shall waive a rule by granting a variance under Minnesota 
        Statutes, section 14.05, subdivision 4.  
           (b) The commissioner may not grant a waiver if it would 
        result in the layoff of classified employees or unclassified 
        employees covered by a collective bargaining agreement except as 
        provided in a plan negotiated under Minnesota Statutes, chapter 
        179A, that provides options to layoff for employees who would be 
        affected.  If a proposed waiver would violate the terms of a 
        collective bargaining agreement reached under Minnesota 
        Statutes, chapter 179A, the waiver may not be granted without 
        the consent of the exclusive representative that is a party to 
        the agreement. 
           [EFFECTIVE DATE.] This section is effective July 1, 2001. 
           Sec. 27.  Laws 1995, chapter 248, article 12, section 2, as 
        amended by Laws 1999, chapter 47, section 2, is amended to read: 
           Sec. 2.  [TERMINATION.] 
           Section 1 and the civil service pilot project in the 
        housing finance agency as authorized by Laws 1993, chapter 301, 
        terminate June 30, 2001 2003, or at any earlier time by a method 
        agreed upon by the commissioners of employee relations and 
        housing finance and the affected exclusive bargaining 
        representative of state employees. 
           [EFFECTIVE DATE.] This section is effective July 1, 2001. 
           Sec. 28.  Laws 1995, chapter 248, article 13, section 2, 
        subdivision 2, as amended by Laws 1997, chapter 97, section 13, 
        is amended to read: 
           Subd. 2.  [PILOT PROJECT.] During the biennium ending June 
        30, 2001 2005, the governor shall designate an executive agency 
        that will conduct a pilot civil service project.  The pilot 
        program must adhere to the policies expressed in subdivision 1 
        and in Minnesota Statutes, section 43A.01.  For the purposes of 
        conducting the pilot project, the commissioner of the designated 
        agency is exempt from the provisions that relate to employment 
        in Minnesota Statutes, chapter 43A, Minnesota Rules, chapter 
        3900, and administrative procedures and policies of the 
        department of employee relations.  If a proposed exemption from 
        the provisions that relate to employment in Minnesota Statutes, 
        chapter 43A, Minnesota Rules, chapter 3900, and administrative 
        procedures and policies of the department of employee relations 
        would violate the terms of a collective bargaining agreement 
        effective under Minnesota Statutes, chapter 179A, the exemption 
        is not effective without the consent of the exclusive 
        representative that is a party to the agreement.  Upon request 
        of the commissioner carrying out the pilot project, the 
        commissioner of employee relations shall provide technical 
        assistance in support of the pilot project.  This section does 
        not exempt an agency from compliance with Minnesota Statutes, 
        sections 43A.19 and 43A.191, or from rules adopted to implement 
        those sections. 
           [EFFECTIVE DATE.] This section is effective July 1, 2001. 
           Sec. 29.  [WORKFORCE CENTERS STRATEGIC PLAN.] 
           The executive committee of the governor's workforce 
        development council shall develop a strategic plan regarding the 
        appropriate placement and number of workforce centers within the 
        state.  The executive committee must consult with local 
        workforce boards when determining the placement and number of 
        workforce centers in their area.  The plan must recognize the 
        differing employment needs of various regions, the workforce 
        population within proximity of a center, and the potential for 
        colocation of the workforce centers with available educational 
        institutions.  By January 15, 2002, the executive committee 
        shall submit the plan and recommendations for closure or 
        consolidation of workforce centers to the senate and house 
        committees with jurisdiction over workforce development programs.
           Sec. 30.  [TRAINING FOR LOW-INCOME WORKERS.] 
           The job skills partnership board may operate a pilot 
        project to provide vouchers for individuals who are 
        training-ready, have incomes at or below 200 percent of the 
        federal poverty line, and have dependent children, but are not 
        eligible for training services under the Minnesota family 
        investment program.  The board may grant funds to eligible 
        recipients to pay for vouchers for board-certified training.  
        Training funded with grants provided under this section should 
        be flexible and responsive in order to maximize the ability of 
        funded programs to adapt to changes in economic and business 
        conditions.  Eligible recipients of grants may include: 
           (1) public, private, or nonprofit entities that provide 
        employment services to low-income individuals; and 
           (2) partnerships of two or more eligible recipients under 
        clause (1), or partnerships of one or more eligible recipients 
        and the council on Black Minnesotans, the Chicano-Latino affairs 
        council, the council on Asian-Pacific Minnesotans, the Indian 
        affairs council, the Minneapolis community development agency, 
        or the St. Paul port authority. 
           The job skills partnership board shall report to the 
        legislature on the performance and progress of the pilot project 
        on or before September 1, 2003. 
           Sec. 31.  [WORKFORCE ENHANCEMENT FEE.] 
           Subdivision 1.  [FEE.] Notwithstanding Minnesota Statutes, 
        section 268.022, effective January 1, 2002, the special 
        assessment under that section on taxable wages as defined in 
        Minnesota Statutes, section 268.035, subdivision 24, is 
        suspended until December 31, 2005.  Effective January 1, 2002, 
        there shall be assessed, in addition to unemployment taxes due 
        under Minnesota Statutes, section 268.051, a workforce 
        enhancement fee of .09 percent on taxable wages.  This fee shall 
        be due and be paid on the same schedule and in the same manner 
        as unemployment taxes under Minnesota Statutes, section 
        268.051.  Any amount past due under this section shall be 
        subject to the same interest and collection provisions as 
        unemployment taxes.  This fee shall expire on December 31, 2005. 
           Subd. 2.  [USE OF FUNDS COLLECTED.] An amount equal to .07 
        percent on taxable wages shall be deposited in the workforce 
        development fund provided for under Minnesota Statutes, section 
        268.022, subdivision 2.  An amount equal to .02 percent on 
        taxable wages, less reimbursement for collection costs of the 
        total amount of the fee, shall be deposited in the unemployment 
        insurance technology initiative account provided for in section 
        32. 
           Sec. 32.  [UNEMPLOYMENT INSURANCE TECHNOLOGY INITIATIVE.] 
           Subdivision 1.  [PURPOSE; SET-ASIDE.] The unemployment 
        insurance technology initiative involves a set-aside of a 
        portion of the money that would otherwise go into the 
        unemployment insurance trust fund.  This money shall be used on 
        technology to substantially enhance unemployment insurance 
        services to both applicants for benefits and employers. 
           Subd. 2.  [TAX REDUCTION.] Notwithstanding Minnesota 
        Statutes, section 268.051, subdivision 2, paragraph (b), 
        effective January 1, 2002, the base unemployment tax on all 
        taxable wages shall be reduced by .02 percent.  This subdivision 
        expires December 31, 2005. 
           Subd. 3.  [ACCOUNT.] (a) Effective January 1, 2002, the 
        unemployment insurance technology initiative account is created 
        as a special account in the special revenue fund in the state 
        treasury.  This account lapses on December 31, 2007, and any 
        money remaining in the account on that date shall be paid into 
        the unemployment insurance program trust fund.  This account 
        consists of all money collected by the workforce enhancement fee 
        provided by section 31 and designated for deposit in this 
        account and all interest earned on any money in this account, 
        less reimbursement of collection costs under paragraph (e). 
           (b) Money in the unemployment insurance technology 
        initiative account is appropriated to the commissioner of 
        economic security and shall be allocated and expended by the 
        commissioner only for technology initiatives to enhance 
        unemployment insurance services for both applicants for benefits 
        and employers. 
           (c) Any funds not allocated, obligated, or expended in a 
        fiscal year shall be available for allocation, obligation, and 
        expenditure in the following fiscal year. 
           (d) If the total amount collected by the technology 
        initiative fee, excluding the amount expended for reimbursement 
        of collection costs plus interest earned upon money in the 
        unemployment insurance technology initiative account exceeds 
        $30,000,000, the excess shall be paid into the unemployment 
        insurance program trust fund. 
           (e) Because the administrative cost of collection of the 
        workforce enhancement fee is borne by federal money made 
        available only to administer the unemployment insurance program, 
        the commissioner shall negotiate with the United States 
        Department of Labor the amount of any reimbursement for costs 
        related to the collection of the fee.  Because the reimbursement 
        is subsequently made available by the United States Department 
        of Labor to the commissioner for administration of the 
        unemployment insurance program, the commissioner shall expend 
        the reimbursement on personnel costs of operating the 
        unemployment insurance program's technology services. 
           Sec. 33.  [SUNSET.] 
           Section 31 expires on December 31, 2005.  Section 32 
        expires on December 31, 2007. 
           Sec. 34.  [IMPORTANCE.] 
           The Little Elk Heritage Preserve, a 92.25 acre 
        archaeological park and nature preserve on the Mississippi river 
        near Little Falls, contains a unique cluster of cultural and 
        natural resources that together document diverse human 
        activities and connections to natural environments in central 
        Minnesota over thousands of years.  The resources at Little Elk 
        Heritage Preserve include archaeological remains identified with 
        ancient native America, the colonial fur trade, early Dakota and 
        Ojibwe life, Black and women's history, Mississippi valley 
        exploration, a mission farm and school, United States Indian 
        treaties, territorial period homesteading and townsite 
        development, the conflict of 1862, hunting, gathering, 
        portaging, quarrying, logging, farming, dam building, grist 
        milling, saw milling, and wood products manufacturing.  Ongoing 
        research programs explore and interpret these important 
        resources. 
           Sec. 35.  [HISTORIC SITE DEFINITION; LITTLE ELK HERITAGE 
        PRESERVE.] 
           The state register of historic places listing for the 
        Little Elk Heritage Preserve includes those portions of the 
        preserve that contain significant archaeological or historic 
        resources. 
           Sec. 36.  [TRANSFER TO COUNTY HISTORICAL SOCIETY.] 
           Notwithstanding Minnesota Statutes 2000, chapter 134 and 
        section 138.053, the city of Anoka may transfer before January 
        1, 2002, the balance in the city of Anoka library fund to the 
        Anoka county historical society for the society's use for any 
        Anoka county historical society purpose. 
           Sec. 37.  [BOARD OF ACCOUNTANCY FEE.] 
           The legislature approves the board of accountancy's 
        proposed fee increase included in the governor's 2002-2003 
        biennial budget.  This approval applies only to the 2002-2003 
        biennium. 
           Sec. 38.  [ELECTRONIC REPORTING; FORMAT.] 
           In developing electronic reporting systems for use in the 
        administration of the workers' compensation system, the 
        department of labor and industry must consult with the 
        International Association of Industrial Accident Boards and 
        Commissions (IAIABC) so that the department's format of data 
        elements and their definitions conform as closely as possible to 
        the data dictionary used by the IAIABC. 
           Sec. 39.  [MUNICIPAL UTILITY AND COOPERATIVE ELECTRIC 
        ASSOCIATIONS; CONSERVATION INVESTMENTS.] 
           Notwithstanding Laws 2001, chapter 212, article 8, section 
        6, the conservation investment obligation of a municipal utility 
        shall, until June 1, 2003, exclude revenues attributable to 
        electricity purchased from a public utility governed by 
        Minnesota Statutes, section 216B.241, subdivision 1a, or a 
        cooperative electric association governed by Minnesota Statutes, 
        section 216B.241, subdivision 1b.  This section expires June 1, 
        2003. 
           Sec. 40.  [RETROACTIVITY.] 
           A contract encumbered or a grant awarded by a state agency 
        before September 1, 2001, may be made retroactive to July 1, 
        2001. 
           Sec. 41.  [REPEALER.] 
           (a) Minnesota Statutes 2000, sections 268.975; 268.976; 
        268.9771; 268.978; 268.9781; 268.9782; 268.9783; 268.979; and 
        268.98, are repealed. 
           (b) Minnesota Statutes 2000, sections 184.22, subdivisions 
        2, 3, 4, and 5; and 184.37, subdivision 2, are repealed 
        effective July 1, 2003. 

                                   ARTICLE 3 
                         REORGANIZATION OF DEPARTMENTS 
           Section 1.  [DEPARTMENT OF ECONOMIC SECURITY ABOLISHED.] 
           The department of economic security is abolished. 
           [EFFECTIVE DATE.] This section is effective July 1, 2002. 
           Sec. 2.  [TRANSFER OF RESPONSIBILITIES OF DEPARTMENT OF 
        ECONOMIC SECURITY.] 
           Subdivision 1.  [TO DEPARTMENT OF TRADE AND ECONOMIC 
        DEVELOPMENT.] The responsibilities of the department of economic 
        security performed by its workforce services unit for employment 
        transition services, youth services, welfare-to-work services, 
        and workforce exchange services are transferred to the 
        department of trade and economic development. 
           [EFFECTIVE DATE.] This subdivision is effective July 1, 
        2002. 
           Subd. 2.  [TO DEPARTMENT OF COMMERCE.] The responsibility 
        for energy programs of the department of economic security is 
        transferred to the department of commerce. 
           [EFFECTIVE DATE.] This subdivision is effective October 1, 
        2001. 
           Subd. 3.  [OTHER RESPONSIBILITIES.] The transition team 
        established under section 4 shall make recommendations regarding 
        the appropriate transfer of the responsibilities of the 
        department of economic security not otherwise transferred in 
        this section. 
           Sec. 3.  [ORGANIZATION OF DEPARTMENT OF TRADE AND ECONOMIC 
        DEVELOPMENT.] 
           The department of trade and economic development shall have 
        a division of economic development consisting of business and 
        community development, the Minnesota trade office, tourism 
        division, information and analysis division, and administrative 
        support.  The job skills partnership program shall be housed in 
        the department and shall have a policy, research, and evaluation 
        unit.  The job skills partnership board shall provide 
        targeted-worker services to include the dislocated worker 
        program and welfare-to-work services formerly located in the 
        department of economic security.  The board shall have a unit 
        providing special programs under a workforce transition services 
        unit. 
           [EFFECTIVE DATE.] This section is effective July 1, 2002. 
           Sec. 4.  [TRANSITION TEAM CREATION; COMPOSITION.] 
           Subdivision 1.  [CREATION.] A workforce development program 
        reorganization transition advisory team is created.  The 
        transition team shall make recommendations to the governor and 
        the legislature by December 1, 2001, concerning the state 
        government structure and department organization for delivering 
        workforce development programs and other issues described in 
        section 5.  The object of the reorganization is to consolidate 
        and streamline the state's workforce development system and 
        programs so as to provide the most efficient and effective 
        workforce development programs. 
           Subd. 2.  [TRANSITION TEAM COMPOSITION.] The transition 
        team shall consist of 12 members appointed as follows: 
           (1) six members appointed by the governor of which one 
        shall represent business, one shall represent labor, one shall 
        represent job training providers, and one shall be designated by 
        the governor as head of the transition team; 
           (2) three members of the house of representatives appointed 
        by the speaker of the house of representatives, one of whom must 
        be a member of the minority party; and 
           (3) three members of the senate appointed by the 
        subcommittee on committees of the committee on rules and 
        administration of the senate, one of whom must be a member of 
        the minority party. 
           The transition team must solicit input from all interested 
        groups on how to best implement the reorganization of state 
        departments contained in sections 1 to 7 and develop the 
        recommendations required in subdivision 1. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 5.  [TRANSITION TEAM DUTIES.] 
           Subdivision 1.  [WORKFORCE DEVELOPMENT PROGRAMS.] The 
        transition team shall: 
           (1) consider alternative configurations of workforce 
        development programs within state agencies, including 
        legislative proposals submitted during the 2001 legislative 
        session and models from other states; 
           (2) recommend governance structures for workforce 
        development; 
           (3) develop recommendations for creating improved 
        communications between the higher education system and the 
        workforce development system; 
           (4) recommend statutory amendments necessary to implement 
        sections 1 to 7; 
           (5) recommend statutory and administrative changes 
        necessary to strengthen the oversight and management 
        responsibilities of local workforce boards and local elected 
        officials to ensure the efficient operation of the workforce 
        center system and to ensure better coordination of service 
        delivery at the community level; 
           (6) recommend the transfer of workforce development related 
        programs from other state agencies; 
           (7) recommend program modifications necessary to ensure 
        coordination between the workforce development system and the 
        employment and training programs administered by the department 
        of human services; 
           (8) recommend procedures for promoting greater coordination 
        and cooperation among local workforce development agencies, 
        local economic development agencies, and higher education 
        institutions; 
           (9) recommend methods for decreasing administrative costs 
        at the state agency level for the purpose of redirecting funding 
        to support the delivery of services at the community level; 
           (10) recommend where to house the unemployment insurance 
        program, taking into consideration the possibilities of 
        transferring the program to the department of labor and industry 
        or the department of trade and economic development; 
           (11) study the feasibility of transferring all or part of 
        the responsibility for collecting unemployment insurance taxes 
        and other assessments collected with those taxes to the 
        department of revenue; 
           (12) consider whether the Minnesota career information 
        system operated by the department of children, families, and 
        learning and the ISEEK system operated by the Minnesota state 
        colleges and universities are duplicative, and if so, the 
        potential for a consolidated system and recommendations on where 
        such a system might be housed; and 
           (13) make other recommendations to complete the 
        reorganization of state departments contained in sections 1 to 7.
           Subd 2.  [TRANSFER OF WORKFORCE INVESTMENT ACT 
        PROGRAMS.] The transition team may recommend, where appropriate, 
        the transfer of a program, including those programs under the 
        Workforce Investment Act of 1998, United States Code, title 29, 
        title I and title III, to local workforce boards. 
           Subd. 3.  [REVISION OF STATE WORKFORCE INVESTMENT ACT 
        PLAN.] The transition team shall propose revisions to the state 
        unified plan submitted to the United States Department of Labor 
        under the Workforce Investment Act of 1998. 
           Subd. 4.  [CONSULTATION WITH INTERESTED PARTIES.] The 
        transition team shall consult with: 
           (1) all appropriate state authorized councils, including, 
        but not limited to, the state rehabilitation advisory council, 
        the statewide independent living council, the rehabilitation 
        advisory council for the blind, and the Minnesota state council 
        on disability prior to making recommendations to the legislature 
        on the appropriate transfer of responsibilities for 
        administration of those programs for which the councils are 
        authorized; 
           (2) the SAFE coordinating council, prior to making any 
        recommendation to the legislature, on the appropriate state 
        agency in which to house the juvenile justice program, the 
        Minnesota city grants program, and the youth intervention 
        program in the department of economic security; 
           (3) the representatives of the collective bargaining units 
        for state employees affected by the transfers of 
        responsibilities under sections 1 to 7, including the 
        representatives of the two affected AFL-CIO affiliates and the 
        representative of another affected major statewide labor 
        organization; 
           (4) the commissioners of economic security, trade and 
        economic development, and labor and industry, prior to making 
        any recommendations to the legislature; 
           (5) local workforce councils and local elected officials; 
           (6) at least one consumer who receives services through the 
        Minnesota family investment program, or an advocate for such 
        consumers; 
           (7) nonprofit job training providers; and 
           (8) in determining the placement in state government of 
        state services for the blind, representatives from each of the 
        following groups: 
           (i) the Rehabilitation Council for the Blind; 
           (ii) the National Federation of the Blind; 
           (iii) the American Council of the Blind; and 
           (iv) the United Blind of Minnesota. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 6.  [STAFF SUPPORT AND OPERATIONS OF THE TRANSITION 
        TEAM.] 
           (a) The head of the transition team shall be in the 
        unclassified service of the state, and may hire staff in the 
        classified or unclassified service, may contract for staff 
        assistance, or may have the assistance of existing state 
        employees. 
           (b) The commissioners of trade and economic development, 
        labor and industry, and economic security must cooperate with 
        and provide staff support to the transition team.  The support 
        includes, but is not limited to, professional, technical, and 
        clerical staff necessary to fully assess the programs under 
        section 5. 
           (c) The transition team shall have access to private or 
        nonpublic data within the department of economic security, 
        department of labor and industry, and the department of trade 
        and economic development necessary to carry out the objectives 
        of section 5. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 7.  [WORKER PROTECTION.] 
           In addition to any other protection, no employee in the 
        classified service shall suffer job loss, have a salary reduced, 
        or have employment benefits reduced as a result of a 
        reorganization mandated or recommended under authority of 
        sections 1 to 7.  No action taken after July 1, 2005, shall be 
        considered a result of reorganization for the purposes of this 
        section. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 8.  [EXPIRATION.] 
           Sections 4, 5, and 6 expire June 30, 2002. 

                                   ARTICLE 4 
                     HOUSING PROGRAM AND TECHNICAL CHANGES 
           Section 1.  Minnesota Statutes 2000, section 462A.01, is 
        amended to read: 
           462A.01 [CITATION.] 
           Sections 462A.01 to 462A.24 462A.34 shall be known as and 
        may be cited as the "Minnesota Housing Finance Agency Law of 
        1971."  
           Sec. 2.  Minnesota Statutes 2000, section 462A.03, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [APPLICATION.] For the purpose of sections 
        462A.01 to 462A.24 this chapter, the terms defined in this 
        section have the meanings ascribed to them. 
           Sec. 3.  Minnesota Statutes 2000, section 462A.03, 
        subdivision 6, is amended to read: 
           Subd. 6.  [AGENCY.] "Agency" means the Minnesota housing 
        finance agency created by sections 462A.01 to 462A.24 this 
        chapter. 
           Sec. 4.  Minnesota Statutes 2000, section 462A.03, 
        subdivision 10, is amended to read: 
           Subd. 10.  [PERSONS AND FAMILIES OF LOW AND MODERATE 
        INCOME.] "Persons and families of low and moderate income" means 
        persons and families, irrespective of race, creed, national 
        origin, sex, or status with respect to guardianship or 
        conservatorship, determined by the agency to require such 
        assistance as is made available by sections 462A.01 to 462A.24 
        this chapter on account of personal or family income not 
        sufficient to afford adequate housing.  In making such 
        determination the agency shall take into account the following:  
        (a) The amount of the total income of such persons and families 
        available for housing needs, (b) the size of the family, (c) the 
        cost and condition of housing facilities available, (d) the 
        eligibility of such persons and families to compete successfully 
        in the normal housing market and to pay the amounts at which 
        private enterprise is providing sanitary, decent and safe 
        housing.  In the case of federally subsidized mortgages with 
        respect to which income limits have been established by any 
        agency of the federal government having jurisdiction thereover 
        for the purpose of defining eligibility of low and moderate 
        income families, the limits so established shall govern under 
        the provision provisions of sections 462A.01 to 462A.24 this 
        chapter.  In all other cases income limits for the purpose of 
        defining low or moderate income persons shall be established by 
        the agency by rules. 
           Sec. 5.  Minnesota Statutes 2000, section 462A.03, is 
        amended by adding a subdivision to read: 
           Subd. 23.  [METROPOLITAN AREA.] "Metropolitan area" has the 
        meaning given in section 473.121, subdivision 2. 
           Sec. 6.  Minnesota Statutes 2000, section 462A.04, 
        subdivision 6, is amended to read: 
           Subd. 6.  [MANAGEMENT, CONTROL.] The management and control 
        of the agency shall be vested solely in the members in 
        accordance with the provisions of sections 462A.01 to 462A.24 
        this chapter. 
           Sec. 7.  Minnesota Statutes 2000, section 462A.05, 
        subdivision 14, is amended to read: 
           Subd. 14.  [REHABILITATION LOANS.] It may agree to 
        purchase, make, or otherwise participate in the making, and may 
        enter into commitments for the purchase, making, or 
        participation in the making, of eligible loans for 
        rehabilitation to persons and families of low and moderate 
        income, and to owners of existing residential housing for 
        occupancy by such persons and families, for the rehabilitation 
        of existing residential housing owned by them.  The loans may be 
        insured or uninsured and may be made with security, or may be 
        unsecured, as the agency deems advisable.  The loans may be in 
        addition to or in combination with long-term eligible mortgage 
        loans under subdivision 3.  They may be made in amounts 
        sufficient to refinance existing indebtedness secured by the 
        property, if refinancing is determined by the agency to be 
        necessary to permit the owner to meet the owner's housing cost 
        without expending an unreasonable portion of the owner's income 
        thereon.  No loan for rehabilitation shall be made unless the 
        agency determines that the loan will be used primarily to make 
        the housing more desirable to live in, to increase the market 
        value of the housing, for compliance with state, county or 
        municipal building, housing maintenance, fire, health or similar 
        codes and standards applicable to housing, or to accomplish 
        energy conservation related improvements.  In unincorporated 
        areas and municipalities not having codes and standards, the 
        agency may, solely for the purpose of administering the 
        provisions of this chapter, establish codes and standards.  
        Except for accessibility improvements under this subdivision and 
        subdivisions 14a and 24, clause (1), no secured loan for 
        rehabilitation of any property shall be made in an amount which, 
        with all other existing indebtedness secured by the property, 
        would exceed 110 percent of its market value, as determined by 
        the agency.  No loan under this subdivision shall be denied 
        solely because the loan will not be used for placing the 
        residential housing in full compliance with all state, county, 
        or municipal building, housing maintenance, fire, health, or 
        similar codes and standards applicable to housing.  
        Rehabilitation loans shall be made only when the agency 
        determines that financing is not otherwise available, in whole 
        or in part, from private lenders upon equivalent terms and 
        conditions.  Accessibility rehabilitation loans authorized under 
        this subdivision may be made to eligible persons and families 
        without limitations relating to the maximum incomes of the 
        borrowers if: 
           (1) the borrower or a member of the borrower's family 
        requires a level of care provided in a hospital, skilled nursing 
        facility, or intermediate care facility for persons with mental 
        retardation or related conditions; 
           (2) home care is appropriate; and 
           (3) the improvement will enable the borrower or a member of 
        the borrower's family to reside in the housing. 
        The agency may waive any requirement that the housing units in a 
        residential housing development be rented to persons of low and 
        moderate income if the development consists of four or less 
        dwelling units, one of which is occupied by the owner. 
           Sec. 8.  Minnesota Statutes 2000, section 462A.05, 
        subdivision 14a, is amended to read: 
           Subd. 14a.  [REHABILITATION LOANS; EXISTING OWNER OCCUPIED 
        RESIDENTIAL HOUSING.] It may make loans to persons and families 
        of low and moderate income to rehabilitate or to assist in 
        rehabilitating existing residential housing owned and occupied 
        by those persons or families.  No loan shall be made unless the 
        agency determines that the loan will be used primarily for 
        rehabilitation work necessary for health or safety, essential 
        accessibility improvements, or to improve the energy efficiency 
        of the dwelling.  No loan for rehabilitation of owner occupied 
        residential housing shall be denied solely because the loan will 
        not be used for placing the residential housing in full 
        compliance with all state, county or municipal building, housing 
        maintenance, fire, health or similar codes and standards 
        applicable to housing.  The amount of any loan shall not exceed 
        the lesser of (a) a maximum loan amount determined under rules 
        adopted by the agency not to exceed $20,000, or (b) the actual 
        cost of the work performed, or (c) that portion of the cost of 
        rehabilitation which the agency determines cannot otherwise be 
        paid by the person or family without the expenditure of an 
        unreasonable portion of the income of the person or family.  
        Loans made in whole or in part with federal funds may exceed the 
        maximum loan amount to the extent necessary to comply with 
        federal lead abatement requirements prescribed by the funding 
        source.  In making loans, the agency shall determine the 
        circumstances under which and the terms and conditions under 
        which all or any portion of the loan will be repaid and shall 
        determine the appropriate security for the repayment of the 
        loan.  Loans pursuant to this subdivision may be made with or 
        without interest or periodic payments.  Loans made without 
        interest or periodic payments need not be repaid by the borrower 
        if the property for which the loan is made has not been sold, 
        transferred, or otherwise conveyed nor has it ceased to be the 
        principal place of residence of the borrower, within ten years 
        after the date of the loan.  
           Sec. 9.  Minnesota Statutes 2000, section 462A.05, 
        subdivision 16, is amended to read: 
           Subd. 16.  [PAYMENTS FOR STRUCTURAL DEFECTS.] (a) It may 
        make payments or expenditures from the housing development fund 
        to persons of low or moderate income, who are recipients of an 
        eligible loan as defined in section 462A.03, subdivision 11, or 
        who have purchased residential housing from a recipient of such 
        eligible loan, and who are owners and occupants of residential 
        housing constructed or rehabilitated under sections 462A.01 to 
        462A.24 this chapter, when, in the agency's determination, such 
        residential housing contains defects or omissions which affect 
        the structural soundness, or the use and the livability of such 
        housing, including but not limited to defects or omissions in 
        materials, hardware, fixtures, design, workmanship and 
        landscaping of whatever kind and nature incorporated in said 
        housing and which are covered by an agency approved warranty, 
        for the purposes of (i) correcting such defects, or (ii) paying 
        the claims of the owner arising from such defects, provided, 
        that this authority shall exist only if the owner has requested 
        assistance from the agency not later than four years after the 
        issuance of the eligible loan, or where such residential housing 
        was rehabilitated under sections 462A.01 to 462A.24 this chapter 
        only if the owner has requested assistance from the agency not 
        later than two years after the issuance of the eligible loan. 
           (b) If such owner elects to receive payments or 
        expenditures pursuant to this section, the agency is subrogated 
        to the right of such owner to recover damages against any party 
        or persons reasonably calculated to be responsible for such 
        damages. 
           (c) The agency may require from the seller of such 
        residential housing, or the contractor responsible for the 
        construction or rehabilitation of such housing, an agreement to 
        reimburse the agency for any payments and expenditures made 
        pursuant to this subdivision with respect to such residential 
        housing. 
           Sec. 10.  Minnesota Statutes 2000, section 462A.05, 
        subdivision 22, is amended to read: 
           Subd. 22.  [LOANS TO FINANCIAL INSTITUTIONS.] It may make 
        or participate in the making and enter into commitments for the 
        making of loans to any banking institution, savings association, 
        or other lender approved by the members, organized under the 
        laws of this or any other state or of the United States having 
        an office in this state, notwithstanding the provisions of 
        section 462A.03, subdivision 13, if it first determines that the 
        proceeds of such loans will be utilized for the purpose of 
        making loans to or for the benefit of eligible persons and 
        families as provided and in accordance with sections 462A.01 to 
        462A.24 this chapter.  Loans pursuant to this subdivision shall 
        be secured, repaid and bear interest at the rate as determined 
        by the members.  
           Sec. 11.  Minnesota Statutes 2000, section 462A.05, 
        subdivision 26, is amended to read: 
           Subd. 26.  [FORMATION OF NONPROFIT CORPORATIONS.] It may, 
        when the agency determines it is necessary or desirable to carry 
        out its purposes and to exercise any or all of the powers 
        conferred upon it under sections 462A.01 to 462A.24 by this 
        chapter, and subject to the provisions of subdivision 27, form 
        or consent to the formation of one or more corporations under 
        the Minnesota Nonprofit Corporation Act, as amended, or under 
        other laws of this state.  The agency may be a member of the 
        corporations, and the members and employees of the agency from 
        time to time may be members of the board of directors or 
        officers of the corporations.  The agency may enter into 
        agreements with them providing for the agency to approve various 
        aspects of their operations.  The agency may capitalize the 
        corporations and may acquire all or a part of the corporations' 
        share or member certificates.  The agency may require that it 
        approve aspects of the operation of the corporations including 
        the corporations' articles of incorporation or bylaws, 
        directors, projects and expenditures, and the sale or conveyance 
        of projects, and the issuance of obligations.  The agency may 
        agree to and may take title to property of the corporations upon 
        their dissolution. 
           Sec. 12.  Minnesota Statutes 2000, section 462A.06, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [LISTED HERE.] For the purpose of 
        exercising the specific powers granted in section 462A.05 and 
        effectuating the other purposes of sections 462A.01 to 462A.24 
        this chapter, the agency shall have the general powers granted 
        in this section. 
           Sec. 13.  Minnesota Statutes 2000, section 462A.06, 
        subdivision 4, is amended to read: 
           Subd. 4.  [RULES.] It may make, and from time to time, 
        amend and repeal rules not inconsistent with the provisions of 
        sections 462A.01 to 462A.24 this chapter.  
           Sec. 14.  Minnesota Statutes 2000, section 462A.07, 
        subdivision 10, is amended to read: 
           Subd. 10.  [HUMAN RIGHTS.] It may establish and enforce 
        such rules as may be necessary to insure compliance with chapter 
        363, and to insure that occupancy of housing assisted under 
        sections 462A.01 to 462A.24 this chapter shall be open to all 
        persons, and that contractors and subcontractors engaged in the 
        construction of such housing shall provide an equal opportunity 
        for employment to all persons, without discrimination as to 
        race, color, creed, religion, national origin, sex, marital 
        status, age, and status with regard to public assistance or 
        disability. 
           Sec. 15.  Minnesota Statutes 2000, section 462A.07, 
        subdivision 12, is amended to read: 
           Subd. 12.  [USE OF OTHER AGENCIES.] It may delegate, use or 
        employ any federal, state, regional or local public or private 
        agency or organization, including organizations of physically 
        handicapped persons, upon terms it deems necessary or desirable, 
        to assist in the exercise of any of the powers granted in 
        sections 462A.01 to 462A.24 by this chapter and to carry out the 
        objectives of sections 462A.01 to 462A.24 this chapter and may 
        pay for the services from the housing development fund. 
           Sec. 16.  Minnesota Statutes 2000, section 462A.073, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
        section, the following terms have the meanings given them. 
           (b) "Existing housing" means single-family housing that (i) 
        has been previously occupied prior to the first day of the 
        origination period; or (ii) has been available for occupancy for 
        at least 12 months but has not been previously occupied.  
           (c) "Metropolitan area" means the metropolitan area as 
        defined in section 473.121, subdivision 2. 
           (d) "New housing" means single-family housing that has not 
        been previously occupied.  
           (e) (d) "Origination period" means the period that loans 
        financed with the proceeds of qualified mortgage revenue bonds 
        are available for the purchase of single-family housing.  The 
        origination period begins when financing actually becomes 
        available to the borrowers for loans.  
           (f) (e) "Redevelopment area" means a compact and contiguous 
        area within which the city finds by resolution that 70 percent 
        of the parcels are occupied by buildings, streets, utilities, or 
        other improvements and more than 25 percent of the buildings, 
        not including outbuildings, are structurally substandard to a 
        degree requiring substantial renovation or clearance. 
           (g) (f) "Single-family housing" means dwelling units 
        eligible to be financed from the proceeds of qualified mortgage 
        revenue bonds under federal law. 
           (h) (g) "Structurally substandard" means containing defects 
        in structural elements or a combination of deficiencies in 
        essential utilities and facilities, light, ventilation, fire 
        protection including adequate egress, layout and condition of 
        interior partitions, or similar factors, which defects or 
        deficiencies are of sufficient total significance to justify 
        substantial renovation or clearance. 
           Sec. 17.  Minnesota Statutes 2000, section 462A.15, is 
        amended to read: 
           462A.15 [STATE PLEDGE AGAINST IMPAIRMENT OF CONTRACTS.] 
           The state pledges and agrees with the holders of any notes 
        or bonds issued under sections 462A.01 to 462A.24 this chapter, 
        that the state will not limit or alter the rights vested in the 
        agency to fulfill the terms of any agreements made with the 
        holders thereof, or in any way impair the rights and remedies of 
        the holders until the notes or bonds, together with the interest 
        thereon, with interest on any unpaid installments of interest, 
        and all costs and expenses in connection with any action or 
        proceeding by or on behalf of such holders, are fully met and 
        discharged.  The agency is authorized to include this pledge and 
        agreement of the state in any agreement with the holders of such 
        notes or bonds.  
           Sec. 18.  Minnesota Statutes 2000, section 462A.17, 
        subdivision 3, is amended to read: 
           Subd. 3.  [RAMSEY COUNTY VENUE; NOTICE OF PRINCIPAL DUE.] 
        The venue of any action or proceedings brought by the trustees 
        under sections 462A.01 to 462A.24 this chapter, shall be in 
        Ramsey county.  Before declaring the principal of notes or bonds 
        due and payable, the trustee shall first give 30 days' notice in 
        writing to the governor, to the agency and to the state 
        treasurer.  
           Sec. 19.  Minnesota Statutes 2000, section 462A.20, 
        subdivision 3, is amended to read: 
           Subd. 3.  [SEPARATE ACCOUNTS; TRANSFERS; LIMITS.] Whenever 
        any money is appropriated by the state to the agency solely for 
        a specified purpose or purposes, the agency shall establish a 
        separate bookkeeping account or accounts in the housing 
        development fund to record the receipt and disbursement of such 
        money and of the income, gain, and loss from the investment and 
        reinvestment thereof.  Earnings from investment of any amounts 
        appropriated by the state to the agency for a specified purpose 
        or purposes may be aggregated.  The costs and expenses necessary 
        and incidental to the development and operation of all programs 
        funded by state appropriations may be paid from the aggregated 
        earnings from investments prior to periodic distributions of 
        earnings to separate accounts to be used for the same purpose as 
        the respective original appropriation.  The agency may transfer 
        unencumbered balances from one appropriated account to another, 
        provided that no money appropriated for the purpose of agency 
        loan programs may be transferred to an account to be used for 
        making grants, except that money appropriated for the purpose of 
        section 462A.05, subdivision 14a, may be transferred for the 
        purpose of section 462A.05, subdivision 15a.  
           Sec. 20.  [462A.2035] [MANUFACTURED HOME PARK REDEVELOPMENT 
        PROGRAM.] 
           Subdivision 1.  [ESTABLISHMENT.] The agency shall establish 
        a manufactured home park redevelopment program for the purpose 
        of making manufactured home park redevelopment grants or loans 
        to cities, counties, or community action programs.  Cities, 
        counties, and community action programs may use grants and loans 
        under this program to: 
           (1) provide current residents of manufactured home parks 
        with buy-out assistance not to exceed $4,000 per home with 
        preference given to older manufactured homes; 
           (2) provide down payment assistance for the purchase of new 
        and preowned manufactured homes that comply with the current 
        version of the State Building Code in effect at the time of the 
        sale, not to exceed $10,000 per home; and 
           (3) make improvements in manufactured home parks as 
        requested by the grant recipient. 
           Subd. 2.  [ELIGIBILITY REQUIREMENTS.] Households assisted 
        under this section must have an annual household income at or 
        below 80 percent of the area median household income.  Cities, 
        counties, or community action programs receiving funds under the 
        program must give preference to households at or below 50 
        percent of the area median household income.  Participation in 
        the program is voluntary and no park resident shall be required 
        to participate.  The agency shall attempt to make grants and 
        loans in approximately equal amounts to applicants outside and 
        within the metropolitan area. 
           Sec. 21.  Minnesota Statutes 2000, section 462A.204, 
        subdivision 3, is amended to read: 
           Subd. 3.  [SET ASIDE.] At least one grant must be awarded 
        in an area located outside of the metropolitan area as defined 
        in section 473.121, subdivision 2.  A county, a group of 
        contiguous counties jointly acting together, or a 
        community-based nonprofit organization with a sponsoring 
        resolution from each of the county boards of the counties 
        located within its operating jurisdiction may apply for and 
        receive grants for areas located outside the metropolitan area.  
           Sec. 22.  Minnesota Statutes 2000, section 462A.205, 
        subdivision 4, is amended to read: 
           Subd. 4.  [AMOUNT AND PAYMENT OF RENT ASSISTANCE.] (a) This 
        subdivision applies to both the voucher option and the 
        project-based voucher option.  
           (b) Within the limits of available appropriations, eligible 
        families may receive monthly rent assistance for a 60-month 
        period starting with the month the family first receives rent 
        assistance under this section.  The amount of the family's 
        portion of the rental payment is equal to at least 30 percent of 
        gross income. 
           (c) The rent assistance must be paid by the local housing 
        organization to the property owner. 
           (d) Subject to the limitations in paragraph (e), the amount 
        of rent assistance is the difference between the rent and the 
        family's portion of the rental payment. 
           (e) In no case: 
           (1) may the amount of monthly rent assistance be more than 
        $250 for housing located within the metropolitan area, as 
        defined in section 473.121, subdivision 2, or more than $200 for 
        housing located outside of the metropolitan area; 
           (2) may the owner receive more rent for assisted units than 
        for comparable unassisted units; nor 
           (3) may the amount of monthly rent assistance be more than 
        the difference between the family's portion of the rental 
        payment and the fair market rent for the unit as determined by 
        the Department of Housing and Urban Development. 
           Sec. 23.  Minnesota Statutes 2000, section 462A.205, 
        subdivision 4a, is amended to read: 
           Subd. 4a.  [ADDITIONAL AUTHORIZED EXPENSES.] In addition to 
        the monthly rent assistance authorized under subdivision 4, rent 
        assistance may include up to $200 for a security deposit for 
        housing located outside the metropolitan area, as defined in 
        section 473.121, subdivision 2, and up to $250 for a security 
        deposit for housing located within the metropolitan area. 
           Sec. 24.  Minnesota Statutes 2000, section 462A.2091, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ELIGIBLE PROPERTY.] Contracts for deed eligible 
        for refinancing with guarantee fund assistance must be for the 
        purchase of an owner-occupied single-family or duplex 
        structure.  In a city of the first class in the metropolitan 
        area, as defined in section 473.121, subdivision 2, eligible 
        properties must be located in an area in which at least one 
        census tract meets at least three of the following four criteria:
           (1) at least 70 percent of the housing structures were 
        built before 1960; 
           (2) at least 60 percent of the single-family housing is 
        owner-occupied; 
           (3) the median market value of the area's owner-occupied 
        housing, as recorded in the most recent federal decennial 
        census, is not more than 100 percent of the purchase price limit 
        for existing homes eligible for purchase in the area under the 
        agency's home mortgage loan program; and 
           (4) between 1980 and 1990, the rate of owner occupancy of 
        residential properties in the area declined by at least five 
        percent, or at least 80 percent of the residential properties in 
        the area are rental properties.  
           The area must include eight blocks in any direction from 
        the census tract.  Priority must be given for property located 
        in an area that meets all four criteria.  
           Sec. 25.  Minnesota Statutes 2000, section 462A.2093, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] For purposes of this 
        section, the following terms have the meanings given them in 
        this subdivision. 
           (a) "Municipality" means a town or a statutory or home rule 
        city. 
           (b) "Nonmetropolitan" means the area of the state outside 
        of the metropolitan area defined in section 473.121, subdivision 
        2. 
           (c) "Inclusionary housing development" means a new 
        construction development including owner-occupied or rental 
        housing, or a combination of both, with a variety of prices and 
        designs which serve families with a range of incomes and housing 
        needs. 
           Sec. 26.  Minnesota Statutes 2000, section 462A.2097, is 
        amended to read: 
           462A.2097 [RENTAL HOUSING.] 
           The agency may establish a tenant-based or project-based 
        rental housing assistance program for persons of low income or 
        for persons with a mental illness or families that include an 
        adult family member with a mental illness.  Rental assistance 
        may be in the form of direct rental subsidies for housing for 
        persons or families with incomes, at the time of initial 
        occupancy, of up to 50 percent of the area median income as 
        determined by the United States Department of Housing and Urban 
        Development, adjusted for families of five or more.  Housing for 
        the mentally ill must be operated in coordination with social 
        service providers who provide services requested by tenants.  
        Direct rental subsidies must be administered by the agency for 
        the benefit of eligible tenants.  Financial assistance provided 
        under this section must be in the form of vendor payments 
        whenever possible. 
           Sec. 27.  Minnesota Statutes 2000, section 462A.21, 
        subdivision 5, is amended to read: 
           Subd. 5.  [OTHER AGENCY PURPOSES.] It may expend moneys in 
        the fund, not otherwise appropriated, for such other agency 
        purposes as previously enumerated in sections 462A.01 to 462A.24 
        this chapter as the agency in its discretion shall determine and 
        provide. 
           Sec. 28.  Minnesota Statutes 2000, section 462A.21, 
        subdivision 10, is amended to read: 
           Subd. 10.  [CERTAIN APPROPRIATIONS AVAILABLE UNTIL 
        EXPENDED.] Notwithstanding the repeal of section 462A.26 and the 
        provisions of section 16A.28 or any other law relating to lapse 
        of an appropriation, the appropriations made to the agency by 
        the legislature in 1976 and subsequent years are available until 
        fully expended, and the allocations provided in the 
        appropriations remain in effect.  Earnings from investments of 
        any of the amounts appropriated to the agency are appropriated 
        to the agency to be used for the same purposes as the respective 
        original appropriations, after payment of the costs and expenses 
        necessary and incidental to the development and operation of the 
        programs authorized under this chapter. 
           Sec. 29.  Minnesota Statutes 2000, section 462A.21, is 
        amended by adding a subdivision to read: 
           Subd. 28.  [FAMILY STABILIZATION DEMONSTRATION 
        PROJECT.] The agency may spend money for the purposes of section 
        462A.205 and may pay costs and expenses necessary and incidental 
        to the development and operation of the project. 
           Sec. 30.  Minnesota Statutes 2000, section 462A.21, is 
        amended by adding a subdivision to read: 
           Subd. 29.  [DISASTER RELIEF CONTINGENCY FUND.] It may 
        establish a disaster relief contingency fund to provide loans or 
        grants, on terms and conditions it deems advisable, to assist 
        with the rehabilitation or replacement of housing damaged as a 
        result of a natural disaster in areas of the state designated 
        under presidential declarations of a major disaster.  It may 
        transfer to the disaster relief contingency fund any repayments 
        of grants or loans made from appropriations specifically for 
        assistance after natural disasters in areas of the state 
        designated under a presidential declaration of a major disaster. 
           Sec. 31.  Minnesota Statutes 2000, section 462A.21, is 
        amended by adding a subdivision to read: 
           Subd. 30.  [MANUFACTURED HOME PARK REDEVELOPMENT.] The 
        agency may spend money for the purposes of section 462A.2035 and 
        may pay costs and expenses necessary and incidental to the 
        development and operation of the program. 
           Sec. 32.  Minnesota Statutes 2000, section 462A.222, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [DETERMINATION OF REGIONAL CREDIT POOLS.] The 
        agency shall divide the annual per capita amount used in 
        determining the state ceiling for low-income housing tax credits 
        provided under section 42 of the Internal Revenue Code of 1986, 
        as amended, into a metropolitan pool and a greater Minnesota 
        pool.  The metropolitan pool shall serve the metropolitan area 
        as defined in section 473.121, subdivision 2.  The greater 
        Minnesota pool shall serve the remaining counties of the state.  
        The percentage of the annual per capita amount allotted to each 
        pool must be determined as follows: 
           (a) The percentage set-aside for projects involving a 
        qualified nonprofit organization as provided in section 42 of 
        the Internal Revenue Code of 1986, as amended, must be deducted 
        from the annual per capita amount used in determining the state 
        ceiling. 
           (b) Of the remaining amount, the metropolitan pool must be 
        allotted a percentage equal to the metropolitan counties' 
        percentage of the total number of state recipients of the 
        Minnesota family investment program, general assistance, 
        Minnesota supplemental aid, and supplemental security income in 
        the state, as reported annually by the department of human 
        services.  The greater Minnesota pool must be allotted the 
        amount remaining after the metropolitan pool's percentage has 
        been allotted. 
           The set-aside for qualified nonprofit organizations must be 
        divided between the two regional pools in the same percentage as 
        determined for the credit amounts above. 
           Sec. 33.  Minnesota Statutes 2000, section 462A.24, is 
        amended to read: 
           462A.24 [CONSTRUCTION.] 
           Sections 462A.01 to 462A.24 are This chapter is necessary 
        for the welfare of the state of Minnesota and its inhabitants; 
        therefore, it shall be liberally construed to effect its purpose.
           Sec. 34.  Minnesota Statutes 2000, section 462A.33, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ELIGIBLE RECIPIENTS.] Challenge grants or loans 
        may be made to a city, a private developer, a nonprofit 
        organization, or the owner of the housing, including 
        individuals.  For the purpose of this section, "city" has the 
        meaning given it in section 462A.03, subdivision 21.  Preference 
        shall be given to challenge grants or loans for home ownership.  
        To the extent practicable, grants and loans shall be made so 
        that an approximately equal number of housing units are financed 
        in the metropolitan area, as defined in section 473.121, 
        subdivision 2, and in the nonmetropolitan area. 
           Sec. 35.  [462A.34] [VISITABILITY REQUIREMENT.] 
           All new construction of single-family homes, duplexes, 
        triplexes, and multilevel townhouses that are financed in whole 
        or in part by the agency must incorporate basic visitability 
        access into their design and construction.  For the purpose of 
        this section, "visitability" means designing a dwelling so that 
        people with mobility impairments may enter and comfortably stay 
        for a duration.  The specific design elements include one 
        no-step entrance, 32-inch clear doorways throughout the 
        dwelling, and a one-half bathroom on the main level.  The agency 
        may waive the one-half bathroom requirement if it reduces 
        affordability for the targeted population of the agency program 
        from which it is funded.  The agency may waive the no-step 
        entrance requirement if site conditions make the requirement 
        impractical or if it reduces affordability for the targeted 
        population of the agency program from which it is funded.  This 
        section does not apply to owner-occupied housing financed by the 
        agency through a mortgage program unless the agency has provided 
        appropriated funds to finance the construction of the new 
        owner-occupied housing. 
           Sec. 36.  [MANUFACTURED HOME PARK REDEVELOPMENT REPORT.] 
           The housing finance agency shall include in its annual 
        program assessment the program created by Minnesota Statutes, 
        section 462A.2035. 
           Sec. 37.  [STUDY.] 
           The housing finance agency, in conjunction with the office 
        of strategic and long-range planning, shall study inclusionary 
        housing statutes and ordinances throughout the country and shall 
        report to the legislature by January 15, 2002, on the 
        implementation of statutes and ordinances on inclusionary 
        housing, including: 
           (1) a description of the various inclusionary housing 
        statutes and ordinances; 
           (2) the number of housing units, both ownership and rental, 
        developed under inclusionary statutes and ordinances; 
           (3) the level of affordability achieved in the housing 
        developed under inclusionary statutes and ordinances; 
           (4) the demographic characteristics of the households 
        residing in the affordable units developed under inclusionary 
        housing statutes and ordinances, if available; and 
           (5) the amount of public funds, if any, invested in the 
        affordable units developed under inclusionary housing statutes 
        and ordinances. 
           The report shall make recommendations regarding approaches 
        to encouraging residential developments that include housing for 
        a range of incomes.  In developing recommendations, the state 
        agencies must consult with representatives of builders, 
        developers, realtors, municipalities, local zoning officials, 
        housing advocates, and local planning officials. 
           Sec. 38.  Laws 2000, chapter 488, article 8, section 2, 
        subdivision 6, is amended to read: 
        Subd. 6.  Economic Support Grants
            30,509,000     25,368,000                 
        The amounts that may be spent from this 
        appropriation for each purpose are as 
        follows: 
        [ASSISTANCE TO FAMILIES GRANTS TANF 
        FORECAST ADJUSTMENT.] The federal 
        Temporary Assistance to Needy Families 
        (TANF) block grant fund appropriated to 
        the commissioner of human services in 
        Laws 1999, chapter 245, article 1, 
        section 2, subdivision 10, for MFIP 
        cash grants are reduced by $37,513,000 
        in fiscal year 2000 and $30,217,000 in 
        fiscal year 2001. 
        [FEDERAL TANF FUNDS.] (1) In addition 
        to the Federal Temporary Assistance for 
        Needy Families (TANF) block grant funds 
        appropriated to the commissioner of 
        human services in Laws 1999, chapter 
        245, article 1, section 2, subdivision 
        10, federal TANF funds are appropriated 
        to the commissioner in amounts up to 
        $20,000,000 in fiscal year 2000 and 
        $80,440,000 in fiscal year 2001.  In 
        addition to these funds, the 
        commissioner may draw or transfer any 
        other appropriations of federal TANF 
        funds or transfers of federal TANF 
        funds that are enacted into state law. 
        (2) Of the amounts in clause (1), 
        $19,680,000 in fiscal year 2001 is for 
        the local intervention grants program 
        under Minnesota Statutes, section 
        256J.625 and related grant programs and 
        shall be expended as follows: 
        (a) $500,000 in fiscal year 2001 is for 
        a grant to the Southeast Asian MFIP 
        services collaborative to replicate in 
        a second location an existing model of 
        an intensive intervention transitional 
        employment training project which 
        serves TANF-eligible recipients and 
        which moves refugee and immigrant 
        welfare recipients unto unsubsidized 
        employment and leads to economic 
        self-sufficiency.  This is a one-time 
        appropriation. 
        (b) $500,000 in fiscal year 2001 is for 
        nontraditional career assistance and 
        training programs under Minnesota 
        Statutes, section 256K.30, subdivision 
        4.  This is a one-time appropriation. 
        (c) $18,680,000 is for local 
        intervention grants for 
        self-sufficiency program under 
        Minnesota Statutes, section 256J.625.  
        For fiscal years 2002 and 2003 the 
        commissioner of finance shall ensure 
        that the base level funding for the 
        local intervention grants program is 
        $27,180,000 each year. 
        (3) Of the amounts in clause (2), 
        paragraph (c) for local intervention 
        grants, $7,000,000 in fiscal year 2001 
        shall be transferred to the 
        commissioner of health for distribution 
        to county boards according to the 
        formula in Minnesota Statutes, section 
        256J.625, subdivision 3, to be used by 
        county public health boards to serve 
        families with incomes at or below 200 
        percent of the federal poverty 
        guidelines, in the manner specified by 
        Minnesota Statutes, section 145A.16, 
        subdivision 3, clauses (2) through 
        (6).  Training, evaluation and 
        technical assistance shall be provided 
        in accordance with Minnesota Statutes, 
        section 145A.16, subdivisions 5 to 7.  
        For fiscal years 2002 and 2003 the 
        commissioner of finance shall ensure 
        that the base level funding for this 
        activity is $7,000,000 each year. 
        (4) Of the amounts in clause (1), 
        $250,000 in fiscal year 2001 is 
        appropriated to the commissioner to 
        contract with the board of trustees of 
        the Minnesota state colleges and 
        universities to provide tuition waivers 
        to employees of health care and human 
        services providers located in the state 
        that are members of qualifying 
        consortia operating under Minnesota 
        Statutes, sections 116L.10 to 116L.15. 
        (5) Of the amounts in clause (1), 
        $320,000 in fiscal year 2001 is for 
        training job counselors about the MFIP 
        program.  For fiscal years 2002 and 
        2003 the commissioner of finance shall 
        ensure that the base level funding for 
        employment services includes $320,000 
        each year for this activity.  The 
        appropriations in this clause shall not 
        become part of the base for the 
        2004-2005 biennium. 
        (6) Of the amounts in clause (1), 
        $1,000,000 in fiscal year 2001 is for 
        out-of-wedlock pregnancy prevention 
        funds to serve children in 
        TANF-eligible families under Minnesota 
        Statutes, section 256K.35. For fiscal 
        years 2002 and 2003 the commissioner of 
        finance shall ensure that the base 
        level funding for this program is 
        $1,000,000 each year.  The 
        appropriations in this clause shall not 
        become part of the base for the 
        2004-2005 biennium. 
        (7) Of the amounts in clause (1), 
        $1,000,000 in fiscal year 2001 is to 
        provide services to TANF-eligible 
        families who are participating in the 
        supportive housing and managed care 
        pilot project under Minnesota Statutes, 
        section 256K.25.  For fiscal years 2002 
        and 2003 the commissioner of finance 
        shall ensure that the base level 
        funding for this project is $1,000,000 
        each year.  The appropriations in this 
        clause shall not become part of the 
        base for this project for the 2004-2005 
        biennium. 
        [TANF TRANSFER TO SOCIAL SERVICES.] 
        $7,500,000 is transferred from the 
        state's federal TANF block grant to the 
        state's federal Title XX block grant in 
        fiscal year 2001 and in fiscal year 
        2002, for purposes of increasing 
        services for families with children 
        whose incomes are at or below 200 
        percent of the federal poverty 
        guidelines.  Notwithstanding section 6, 
        this paragraph expires June 30, 2002. 
        [TANF MOE.] (a) In order to meet the 
        basic maintenance of effort (MOE) 
        requirements of the TANF block grant 
        specified under United States Code, 
        title 42, section 609(a)(7), the 
        commissioner may only report nonfederal 
        money expended for allowable activities 
        listed in the following clauses as TANF 
        MOE expenditures: 
        (1) MFIP cash and food assistance 
        benefits under Minnesota Statutes, 
        chapter 256J; 
        (2) the child care assistance programs 
        under Minnesota Statutes, sections 
        119B.03 and 119B.05, and county child 
        care administrative costs under 
        Minnesota Statutes, section 119B.15; 
        (3) state and county MFIP 
        administrative costs under Minnesota 
        Statutes, chapters 256J and 256K; 
        (4) state, county, and tribal MFIP 
        employment services under Minnesota 
        Statutes, chapters 256J and 256K; and 
        (5) expenditures made on behalf of 
        noncitizen MFIP recipients who qualify 
        for the medical assistance without 
        federal financial participation program 
        under Minnesota Statutes, section 
        256B.06, subdivision 4, paragraphs (d), 
        (e), and (j). 
        (b) The commissioner shall ensure that 
        sufficient qualified nonfederal 
        expenditures are made each year to meet 
        the state's TANF MOE requirements.  For 
        the activities listed in paragraph (a), 
        clauses (2) to (6), the commissioner 
        may only report expenditures that are 
        excluded from the definition of 
        assistance under Code of Federal 
        Regulations, title 45, section 260.31.  
        If nonfederal expenditures for the 
        programs and purposes listed in 
        paragraph (a) are insufficient to meet 
        the state's TANF MOE requirements, the 
        commissioner shall recommend additional 
        allowable sources of nonfederal 
        expenditures to the legislature, if the 
        legislature is or will be in session to 
        take action to specify additional 
        sources of nonfederal expenditures for 
        TANF MOE before a federal penalty is 
        imposed.  The commissioner shall 
        otherwise provide notice to the 
        legislative commission on planning and 
        fiscal policy under paragraph (d). 
        (c) If the commissioner uses authority 
        granted under Laws 1999, chapter 245, 
        article 1, section 10, or similar 
        authority granted by a subsequent 
        legislature, to meet the state's TANF 
        MOE requirements in a reporting period, 
        the commissioner shall inform the 
        chairs of the appropriate legislative 
        committees about all transfers made 
        under that authority for this purpose. 
        (d) If the commissioner determines that 
        nonfederal expenditures for the 
        programs under Minnesota Statutes, 
        section 256J.025, are insufficient to 
        meet TANF MOE expenditure requirements, 
        and if the legislature is not or will 
        not be in session to take timely action 
        to avoid a federal penalty, the 
        commissioner may report nonfederal 
        expenditures from other allowable 
        sources as TANF MOE expenditures after 
        the requirements of this paragraph are 
        met. 
        The commissioner may report nonfederal 
        expenditures in addition to those 
        specified under paragraph (a) as 
        nonfederal TANF MOE expenditures, but 
        only ten days after the commissioner of 
        finance has first submitted the 
        commissioner's recommendations for 
        additional allowable sources of 
        nonfederal TANF MOE expenditures to the 
        members of the legislative commission 
        on planning and fiscal policy for their 
        review. 
        (e) The commissioner of finance shall 
        not incorporate any changes in federal 
        TANF expenditures or nonfederal 
        expenditures for TANF MOE that may 
        result from reporting additional 
        allowable sources of nonfederal TANF 
        MOE expenditures under the interim 
        procedures in paragraph (d) into the 
        February or November forecasts required 
        under Minnesota Statutes, section 
        16A.103, unless the commissioner of 
        finance has approved the additional 
        sources of expenditures under paragraph 
        (d). 
        (f) The provisions of paragraphs (a) to 
        (e) supersede any contrary provisions 
        in Laws 1999, chapter 245, article 1, 
        section 2, subdivision 10. 
        (g) The provisions of Minnesota 
        Statutes, section 256.011, subdivision 
        3, which require that federal grants or 
        aids secured or obtained under that 
        subdivision be used to reduce any 
        direct appropriations provided by law 
        do not apply if the grants or aids are 
        federal TANF funds. 
        (h) Notwithstanding section 6 of this 
        article, paragraphs (a) to (g) expire 
        June 30, 2003. 
        (i) Paragraphs (a) to (h) are effective 
        the day following final enactment. 
        (a) Assistance to Families Grants
             9,628,000     (2,305,000)                
        (b) Work Grants
                -0-          (250,000)
        (c) AFDC and Other Assistance
            20,000,000     30,734,000 
        [TRANSFERS TO MINNESOTA HOUSING FINANCE 
        AGENCY.] (a) By June 30, 2001, the 
        commissioner shall transfer $50,000,000 
        of the general funds appropriated under 
        this paragraph to the Minnesota housing 
        finance agency for transfer to the 
        housing development fund.  The program 
        funded by this transfer shall be known 
        as the "Bruce F. Vento Year 2000 
        Affordable Housing Program." Up to 
        $15,000,000 may be transferred in 
        fiscal year 2000. 
        (b) Of the funds transferred in 
        paragraph (a), $5,000,000 in fiscal 
        year 2001 and $15,000,000 in fiscal 
        year 2002 is for a loan to Habitat for 
        Humanity of Minnesota, Inc.  The loan 
        shall be an interest-free deferred 
        loan.  The loan shall become due and 
        payable in the event and to the extent 
        that Habitat for Humanity of Minnesota, 
        Inc. does not invest repayments and 
        prepayment of mortgage loans financed 
        with this appropriation in new 
        mortgages for additional homebuyers 
        through Habitat for Humanity of 
        Minnesota, Inc.  To the extent 
        practicable, funding must be allocated 
        to Habitat for Humanity chapters on the 
        basis of the number of MFIP households 
        residing within a chapter's service 
        area compared to the statewide total of 
        MFIP households and on the basis of a 
        chapter's capacity. 
        (c) Of the funds transferred in 
        paragraph (a), $15,000,000 in fiscal 
        year 2001 and $15,000,000 in fiscal 
        year 2002 is for the affordable rental 
        investment fund program under Minnesota 
        Statutes, section 462A.21, subdivision 
        8b.  To the extent practicable, the 
        number of units financed with the 
        appropriation under this paragraph 
        within a city, county, or region shall 
        reflect the number of MFIP households 
        residing within the city, county, or 
        region compared to the statewide total 
        of MFIP households.  This appropriation 
        must be used to finance rental housing 
        units that serve families: 
        (1) receiving MFIP benefits under 
        Minnesota Statutes, section 256J.01, or 
        its successor program; and 
        (2) who have lost eligibility for MFIP 
        due to increased income from employment 
        or due to the collection of child or 
        spousal support under part D of title 
        IV of the Social Security Act for 
        reasons other than disqualification 
        from MFIP due to fraud. 
        Units produced with this appropriation 
        must remain affordable for a 30-year 
        period. 
        In order to coordinate the availability 
        of housing developed with the 
        appropriation under this paragraph with 
        MFIP families in need of affordable 
        housing, the commissioner of the 
        Minnesota housing finance agency, with 
        the assistance of the commissioner of 
        human services, shall establish 
        cooperative relationships with county 
        agencies as defined in Minnesota 
        Statutes, section 256J.08, local 
        employment and training service 
        providers as defined in Minnesota 
        Statutes, section 256J.49, local social 
        service agencies, or other 
        organizations that provide assistance 
        to MFIP households.  
        The commissioner of the Minnesota 
        housing finance agency shall develop 
        strategies to promote occupancy of the 
        units financed by the appropriation 
        under this paragraph by households most 
        in need of subsidized housing.  The 
        strategies shall include provisions 
        that encourage households to move into 
        homeownership or unsubsidized housing 
        as the household secures stable 
        employment and achieves 
        self-sufficiency.  The commissioner of 
        the Minnesota housing finance agency 
        shall consult with interested parties 
        in developing these strategies.  
        (d) The commissioner of the Minnesota 
        housing finance agency and the 
        commissioner of human services shall 
        jointly prepare and submit a report to 
        the governor and the legislature on the 
        results of the funding provided under 
        this section.  The report shall include:
        (1) information on the number of units 
        produced; 
        (2) the household size and income of 
        the occupants of the units at initial 
        occupancy; and 
        (3) to the extent the information is 
        available, measures related to the 
        occupants' attachment to the workforce 
        and public assistance usage, and number 
        of occupant moves. 
        The report must be submitted annually 
        beginning January 15, 2003. 
        (e) Section 6, sunset of uncodified 
        language, does not apply to paragraphs 
        (a) to (d).  Paragraphs (a) to (d) are 
        effective the day following final 
        enactment. 
        [WORKING FAMILY CREDIT.] (a) On a 
        regular basis, the commissioner of 
        revenue, with the assistance of the 
        commissioner of human services, shall 
        calculate the value of the refundable 
        portion of the Minnesota working family 
        credits provided under Minnesota 
        Statutes, section 290.0671, that 
        qualifies for federal reimbursement 
        from the temporary assistance to needy 
        families block grant.  The commissioner 
        of revenue shall provide the 
        commissioner of human services with 
        such expenditure records and 
        information as are necessary to support 
        draws of federal funds.  The 
        commissioner of human services shall 
        reimburse the commissioner of revenue 
        for the costs of providing the 
        information required by this paragraph. 
        (b) Federal TANF funds, as specified in 
        this paragraph, are appropriated to the 
        commissioner of human services based on 
        calculations under paragraph (a) of 
        working family tax credit expenditures 
        that qualify for reimbursement from the 
        TANF block grant for income tax refunds 
        payable in federal fiscal years 
        beginning October 1, 1999.  The draws 
        of federal TANF funds shall be made on 
        a regular basis based on calculations 
        of credit expenditures by the 
        commissioner of revenue.  Up to the 
        following amounts of federal TANF draws 
        are appropriated to the commissioner of 
        human services to deposit into the 
        general fund:  in fiscal year 2000, 
        $30,957,000; and in fiscal year 2001, 
        $33,895,000. 
        (d) General Assistance
                557,000    (3,134,000)
        (e) Minnesota Supplemental Aid
                324,000       323,000 
           Sec. 39.  [REPEALER.] 
           Minnesota Statutes 2000, sections 462A.221, subdivision 4; 
        and 462A.30, subdivision 2, are repealed. 

                                   ARTICLE 5
                         HOUSING PROGRAM CONSOLIDATION
           Section 1.  Minnesota Statutes 2000, section 462A.201, 
        subdivision 2, is amended to read: 
           Subd. 2.  [LOW-INCOME HOUSING.] (a) The agency may, in 
        consultation with the advisory committee, use money from the 
        housing trust fund account to provide loans or grants for: 
           (1) projects for the development, construction, 
        acquisition, preservation, and rehabilitation of low-income 
        rental and limited equity cooperative housing units, including 
        temporary and transitional housing, and homes for ownership; 
           (2) the costs of operating rental housing, as determined by 
        the agency, that are unique to the operation of low-income 
        rental housing or supportive housing; and 
           (3) rental assistance, either project-based or tenant-based.
        For purposes of this section, "transitional housing" means 
        housing that is provided for a limited duration not exceeding 24 
        months, except that up to one-third of the residents may live in 
        the housing for up to 36 months has the meaning given by the 
        United States Department of Housing and Urban Development.  
        Loans or grants for residential housing for migrant farmworkers 
        may be made under this section.  No more than 20 percent of 
        available funds may be used for home ownership projects.  
           (b) A rental or limited equity cooperative permanent 
        housing project must meet one of the following income tests: 
           (1) at least 75 percent of the rental and cooperative units 
        must be rented to or cooperatively owned by persons and families 
        whose income does not exceed 30 percent of the median family 
        income for the metropolitan area as defined in section 473.121, 
        subdivision 2; or 
           (2) all The housing trust fund account must be used for the 
        benefit of persons and families whose income, at the time of 
        initial occupancy, does not exceed 60 percent of median income 
        as determined by the United States Department of Housing and 
        Urban Development for the metropolitan area.  At least 75 
        percent of the units funded by funds in the housing trust fund 
        account must be used for the benefit of persons and families 
        whose income, at the time of initial occupancy, does not exceed 
        30 percent of the median family income for the metropolitan area 
        as defined in section 473.121, subdivision 2.  For purposes of 
        this section, a household with a housing assistance voucher 
        under section 8 of the United States Housing Act of 1937, as 
        amended, is deemed to meet the income requirements of this 
        section. 
           The median family income may be adjusted for families of 
        five or more. 
           (c) Homes for ownership must be owned or purchased by 
        persons and families whose income does not exceed 50 percent of 
        the metropolitan area median income, adjusted for family size. 
           (d) Rental assistance under this section must be provided 
        by governmental units which administer housing assistance 
        supplements or by for-profit or nonprofit organizations 
        experienced in housing management.  Rental assistance shall be 
        limited to households whose income at the time of initial 
        receipt of rental assistance does not exceed 60 percent of 
        median income, as determined by the United States Department of 
        Housing and Urban Development for the metropolitan area.  
        Priority among comparable applications for tenant-based rental 
        assistance will be given to proposals that will serve households 
        whose income at the time of initial application for rental 
        assistance does not exceed 30 percent of median income, as 
        determined by the United States Department of Housing and Urban 
        Development for the metropolitan area.  Rental assistance must 
        be terminated when it is determined that 30 percent of a 
        household's monthly income for four consecutive months equals or 
        exceeds the market rent for the unit in which the household 
        resides plus utilities for which the tenant is responsible.  
        Rental assistance may only be used for rental housing units that 
        meet the housing maintenance code of the local unit of 
        government in which the unit is located, if such a code has been 
        adopted, or the housing quality standards adopted by the United 
        States Department of Housing and Urban Development, if no local 
        housing maintenance code has been adopted.  
           (d) In making the loans or grants, the agency shall 
        determine the terms and conditions of repayment and the 
        appropriate security, if any, should repayment be required.  To 
        promote the geographic distribution of grants and loans, the 
        agency may designate a portion of the grant or loan awards to be 
        set aside for projects located in specified congressional 
        districts or other geographical regions specified by the 
        agency.  The agency may adopt rules for awarding grants and 
        loans under this subdivision. 
           Sec. 2.  Minnesota Statutes 2000, section 462A.201, 
        subdivision 6, is amended to read: 
           Subd. 6.  [REPORT.] The agency shall submit a biennial 
        report to the legislature and the governor annually on the use 
        of the housing trust fund account including the number of loans 
        and grants made, the number and types of residential units 
        assisted through the account, the number of households for whom 
        rental assistance payments were provided, and the number of 
        residential units assisted through the account that were rented 
        to or cooperatively owned by persons or families at or below 30 
        percent of the median family income of the metropolitan area at 
        the time of initial occupancy.  
           Sec. 3.  Minnesota Statutes 2000, section 462A.209, is 
        amended to read: 
           462A.209 [HOME OWNERSHIP ASSISTANCE EDUCATION, COUNSELING, 
        AND TRAINING PROGRAM.] 
           Subdivision 1.  [FULL CYCLE HOME OWNERSHIP SERVICES.] 
        The full cycle home ownership services homeownership education, 
        counseling, and training program shall be used to fund provide 
        funding to community-based nonprofit organizations and political 
        subdivisions providing, building capacity to provide, or 
        supporting full cycle lending for to assist them in building the 
        capacity to provide and providing full cycle home ownership 
        services to low and moderate income home buyers and homeowners, 
        including seniors.  The purpose of the program is to encourage 
        private investment in affordable housing and collaboration of 
        nonprofit organizations and political subdivisions with each 
        other and private lenders in providing full cycle lending 
        homeownership services. 
           Subd. 2.  [DEFINITION.] "Full cycle home ownership 
        services" means supporting eligible home buyers and owners home 
        owners through all phases of purchasing and keeping a home, by 
        providing prepurchase home buyer education,; prepurchase 
        counseling and credit repair,; prepurchase and postpurchase 
        property inspection and technical and financial assistance to 
        buyers in rehabilitating the home,; postpurchase counseling, 
        including home equity conversion loan counseling, mortgage 
        default counseling, postpurchase assistance with home 
        maintenance, entry cost assistance,; foreclosure prevention and 
        assistance; and access to flexible loan products. 
           Subd. 3.  [ELIGIBILITY.] The agency shall establish 
        eligibility criteria for nonprofit organizations and political 
        subdivisions to receive funding under this section.  The 
        eligibility criteria must require the nonprofit organization or 
        political subdivision to provide, to build capacity to provide, 
        or support full cycle home ownership services for eligible home 
        buyers.  The agency may fund a nonprofit organization or 
        political subdivision that will provide full cycle home 
        ownership services by coordinating with one or more other 
        organizations that will provide specific components of full 
        cycle home ownership services.  The agency may make exceptions 
        to providing all components of full cycle lending if justified 
        by the application.  If there are more applicants requesting 
        funding than there are funds available, the agency shall award 
        the funds on a competitive basis and also assure an equitable 
        geographic distribution of the available funds.  The eligibility 
        criteria must require the nonprofit organization or political 
        subdivision to have a demonstrated involvement in the local 
        community and to target the housing affordability needs of the 
        local community or to have demonstrated experience with 
        counseling older persons on housing, or both.  The eligibility 
        criteria may include a requirement for specific training 
        provided by designated state or national entities.  The agency 
        may also include an eligibility criteria that requires counselor 
        certification or organizational accreditation by specified 
        organizations which provide certification or accreditation 
        services.  Partnerships and collaboration with innovative, grass 
        roots, or community-based initiatives shall be encouraged.  The 
        agency shall give priority to nonprofit organizations and 
        political subdivisions that provide matching funds have funding 
        from other sources for full cycle homeownership services.  
        Applicants for funds under section 462A.057 may also apply funds 
        under this program. 
           Subd. 4.  [ENTRY COST HOME OWNERSHIP OPPORTUNITY PROGRAM.] 
        The agency may establish an entry cost home ownership 
        opportunity program, on terms and conditions it deems advisable, 
        to assist individuals with downpayment and closing costs to 
        finance the purchase of a home. 
           Subd. 5.  [SELECTION CRITERIA.] The agency shall take the 
        following criteria into consideration when determining whether 
        to award funds to an eligible organization: 
           (1) the extent to which there is an equitable geographic 
        distribution of funds among program applicants; 
           (2) the prior experience and documented familiarity of the 
        organization, as may be applicable, in establishing, 
        administering, and maintaining some or all of the components of 
        full cycle homeownership services; 
           (3) the reasonableness of the proposed budget in meeting 
        the program objectives, a demonstrated ability to leverage 
        program money with other sources of funding, and the extent of 
        the leveraging of other sources of funding; 
           (4) the extent to which efforts are targeted towards 
        households with incomes that do not exceed 80 percent of the 
        state or area median income or underserved segments of the local 
        population; and 
           (5) the extent to which program funding does not duplicate 
        other efforts currently available in the local area and will 
        enable, expand, or enhance existing activities. 
           Subd. 6.  [DESIGNATED AREAS.] A program administrator must 
        designate specific areas, communities, or neighborhoods within 
        which the program is proposed to be operated for the purpose of 
        focusing resources. 
           Subd. 7.  [ASSISTANCE TO PREVENT MORTGAGE FORECLOSURES.] (a)
        Program assistance and counseling to prevent mortgage 
        foreclosures or cancellations of contract for deeds includes 
        general information, screening, assessment, referral services, 
        case management, advocacy, and financial assistance to borrowers 
        who are delinquent on mortgage or contract for deed payments. 
           (b) Not more than one-half of funds awarded for foreclosure 
        prevention and assistance activities may be used for mortgage or 
        financial counseling services. 
           (c) Financial assistance consists of payments for 
        delinquent mortgage or contract for deed payments, future 
        mortgage or contract for deed payments for a period of up to six 
        months, property taxes, assessments, utilities, insurance, home 
        improvement repairs, future rent payments for a period of up to 
        six months, and relocation costs if necessary, or other costs 
        necessary to prevent foreclosure. 
           (d) An individual or family may receive a maximum of $5,500 
        of financial assistance to prevent a mortgage foreclosure or the 
        cancellation of a contract for deed. 
           (e) The agency may require the recipient of financial 
        assistance to enter into an agreement with the agency for 
        repayment.  The repayment agreement for mortgages or contract 
        for deed buyers must provide that in the event the property is 
        sold, transferred, or otherwise conveyed, or ceases to be the 
        recipient's principal place of residence, the recipient shall 
        repay all or a portion of the financial assistance.  The agency 
        may take into consideration financial hardship in determining 
        repayment requirements.  The repayment agreement may be secured 
        by a lien on the property for the benefit of the agency. 
           Subd. 8.  [REPORT.] By January 10 of every year, each 
        nonprofit organization that delivers services under this section 
        must submit a report to the agency that summarizes the number of 
        people served and the sources and amounts of nonstate money used 
        to fund the services.  The agency shall annually submit a report 
        to the legislature by February 15. 
           Sec. 4.  Minnesota Statutes 2000, section 462A.21, is 
        amended by adding a subdivision to read: 
           Subd. 27.  [ECONOMIC DEVELOPMENT AND HOUSING CHALLENGE 
        PROGRAM.] The agency may spend money for the purposes of section 
        462A.33 and may pay the costs and expenses necessary and 
        incidental to the development and operation of the program. 
           Sec. 5.  Minnesota Statutes 2000, section 462A.33, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CREATED.] The economic development and 
        housing challenge program is created to be administered by the 
        agency. 
           (a) The program shall provide grants or loans for the 
        purpose of construction, acquisition, rehabilitation, demolition 
        or removal of existing structures, construction financing, 
        permanent financing, interest rate reduction, refinancing, and 
        gap financing of housing to support economic development and 
        redevelopment activities or job creation or job preservation 
        within a community or region by meeting locally identified 
        housing needs. 
           Gap financing is either: 
           (i) the difference between the costs of the property, 
        including acquisition, demolition, rehabilitation, and 
        construction, and the market value of the property upon sale; or 
           (ii) the difference between the cost of the property and 
        the amount the targeted household can afford for housing, based 
        on industry standards and practices. 
           (b) Preference for grants and loans shall be given to 
        comparable proposals that include regulatory changes or waivers 
        that result in identifiable cost avoidance or cost reductions, 
        such as increased density, flexibility in site development 
        standards, or zoning code requirements.  Preference must also be 
        given among comparable proposals to proposals for projects that 
        are accessible to transportation systems, jobs, schools, and 
        other services. 
           (c) If a grant or loan is used for demolition or removal of 
        existing structures, the cleared land must be used for the 
        construction of housing to be owned or rented by persons who 
        meet the income limits of this section or for other 
        housing-related purposes that primarily benefit the persons 
        residing in the adjacent housing.  In making selections for 
        grants or loans for projects that demolish affordable housing 
        units, the agency must review the potential displacement of 
        residents and consider the extent to which displacement of 
        residents is minimized. 
           Sec. 6.  Minnesota Statutes 2000, section 462A.33, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ELIGIBLE RECIPIENTS.] Challenge grants or loans 
        may be made to a city, a private developer, a nonprofit 
        organization, or the owner of the housing, including 
        individuals.  For the purpose of this section, "city" has the 
        meaning given it in section 462A.03, subdivision 21.  Preference 
        shall be given to challenge grants or loans for home ownership.  
        To the extent practicable, grants and loans shall be made so 
        that an approximately equal number of housing units are financed 
        in the metropolitan area, as defined in section 473.121, 
        subdivision 2, and in the nonmetropolitan area. 
           Sec. 7.  Minnesota Statutes 2000, section 462A.33, 
        subdivision 3, is amended to read: 
           Subd. 3.  [CONTRIBUTION REQUIREMENT; REGULATORY 
        FLEXIBILITY.] Fifty percent of the funds appropriated for this 
        section must be used for challenge grants or loans which meet 
        the requirements of this subdivision.  These challenge grants or 
        loans must be used for economically viable homeownership or 
        rental housing proposals that:  
           (1) include a financial or in-kind contribution from an 
        area employer and either a unit of local government or a private 
        philanthropic, religious, or charitable organization; and 
           (2) address the housing needs of the local work force.  
           For the purpose of this subdivision, an employer 
        contribution may consist partially or wholly of the premium paid 
        for federal housing tax credits.  Preference for grants and 
        loans shall be given to comparable proposals that include 
        regulatory changes that result in identifiable cost avoidance or 
        cost reductions, such as increased density, flexibility in site 
        development standards, or zoning code requirements.  
           Preference for grants and loans shall also be given to 
        comparable proposals that include a financial or in-kind 
        contribution from a unit of local government, an area employer, 
        and a private philanthropic, religious, or charitable 
        organization. 
           Sec. 8.  Minnesota Statutes 2000, section 462A.33, 
        subdivision 5, is amended to read: 
           Subd. 5.  [INCOME LIMITS.] Households served through 
        challenge grants or loans must not have incomes at the time of 
        initial occupancy that exceed, for homeownership projects, 115 
        percent of the greater of state or area median income as 
        determined by the United States Department of Housing and Urban 
        Development, and for rental housing projects, 115 80 percent of 
        the greater of state or area median income as determined by the 
        United States Department of Housing and Urban Development except 
        that the housing developed or rehabilitated with challenge fund 
        grants or loans must be affordable to the local work force. 
           Preference among comparable proposals shall be given those 
        that provide housing opportunities for an expanded range of 
        household incomes within a community or that provide housing 
        opportunities for a wide range of incomes within the development.
           Sec. 9.  Minnesota Statutes 2000, section 462A.33, is 
        amended by adding a subdivision to read: 
           Subd. 8.  [LIMITATION ON RETURN.] The limitations on return 
        of eligible mortgagors contained in section 462A.03, subdivision 
        13, do not apply to loans or grants for rental housing if the 
        loans or grants made by the agency, from all sources, are less 
        than 50 percent of the total costs, as determined by the agency. 
           Sec. 10.  [REPEALER.] 
           Minnesota Statutes 2000, sections 462A.201, subdivision 4; 
        462A.207; 462A.209, subdivision 4; 462A.21, subdivision 17; and 
        462A.33, subdivisions 4, 6, and 7, are repealed. 

                                   ARTICLE 6
                          PUBLIC SERVICE CONSOLIDATION 
           Section 1.  [CONSOLIDATION OF STATE REGULATION OF 
        COMMERCE.] 
           In order to make state government more efficient and 
        effective and to accomplish more efficient and effective 
        regulation of commerce in Minnesota, all of the powers, rights, 
        responsibilities, and duties that remain in the department of 
        public service after reorganization order No. 181 are 
        transferred to the department of commerce under Minnesota 
        Statutes, section 15.039.  This transfer is governed in all 
        respects by Minnesota Statutes, section 15.039.  The department 
        of public service is abolished. 
           Sec. 2.  Minnesota Statutes 2000, section 3C.12, 
        subdivision 2, is amended to read: 
           Subd. 2.  [FREE DISTRIBUTION.] The revisor shall distribute 
        without charge copies of each edition of Minnesota Statutes, 
        supplements to Minnesota Statutes, and Laws of Minnesota to the 
        persons or bodies listed in this subdivision.  Before 
        distributing the copies, the revisor shall inform these persons 
        or bodies of the cost of the publication and the availability of 
        statutes and session laws on the Internet, and shall ask whether 
        their work requires the full number of copies authorized by this 
        subdivision.  Unless a smaller number is needed, the revisor 
        shall distribute:  
           (a) 30 copies to the supreme court; 
           (b) 30 copies to the court of appeals; 
           (c) one copy to each judge of a district court; 
           (d) one copy to the court administrator of each district 
        court for use in each courtroom of the district court; 
           (e) one copy to each judge, district attorney, clerk of 
        court of the United States, and deputy clerk of each division of 
        the United States district court in Minnesota; 
           (f) 100 copies to the office of the attorney general; 
           (g) ten copies each to the governor's office, the 
        departments of agriculture, commerce, corrections, children, 
        families, and learning, finance, health, transportation, labor 
        and industry, economic security, natural resources, public 
        safety, public service, human services, revenue, and the 
        pollution control agency; 
           (h) two copies each to the lieutenant governor and the 
        state treasurer; 
           (i) 20 copies each to the department departments of 
        administration and commerce, state auditor, and legislative 
        auditor; 
           (j) one copy each to other state departments, agencies, 
        boards, and commissions not specifically named in this 
        subdivision; 
           (k) one copy to each member of the legislature; 
           (l) 150 copies for the use of the senate and 200 copies for 
        the use of the house of representatives; 
           (m) 50 copies to the revisor of statutes from which the 
        revisor shall send the appropriate number to the Library of 
        Congress for copyright and depository purposes; 
           (n) four copies to the secretary of the senate; 
           (o) four copies to the chief clerk of the house of 
        representatives; 
           (p) 100 copies to the state law library; 
           (q) 100 copies to the law school of the University of 
        Minnesota; 
           (r) five copies each to the Minnesota historical society 
        and the secretary of state; 
           (s) one copy each to the public library of the largest 
        municipality of each county if the library is not otherwise 
        eligible to receive a free copy under this section or section 
        15.18; and 
           (t) one copy to each county library maintained pursuant to 
        chapter 134, except in counties containing cities of the first 
        class.  If a county has not established a county library 
        pursuant to chapter 134, the copy shall be provided to any 
        public library in the county. 
           Sec. 3.  Minnesota Statutes 2000, section 13.679, is 
        amended to read: 
           13.679 [DEPARTMENT OF PUBLIC SERVICE DATA.] 
           Subdivision 1.  [TENANT.] Data collected by the department 
        of public service commissioner of commerce that reveals the 
        identity of a tenant who makes a complaint regarding energy 
        efficiency standards for rental housing are private data on 
        individuals.  
           Subd. 2.  [UTILITY OR TELEPHONE COMPANY EMPLOYEE OR 
        CUSTOMER.] (a) The following are private data on individuals:  
        data collected by the department of public service commissioner 
        of commerce or the public utilities commission, including the 
        names or any other data that would reveal the identity of either 
        an employee or customer of a telephone company or public utility 
        who files a complaint or provides information regarding a 
        violation or suspected violation by the telephone company or 
        public utility of any federal or state law or rule; except this 
        data may be released as needed to law enforcement authorities. 
           (b) The following are private data on individuals:  data 
        collected by the commission or the department of public service 
        commissioner of commerce on individual public utility or 
        telephone company customers or prospective customers, including 
        copies of tax forms, needed to administer federal or state 
        programs that provide relief from telephone company bills, 
        public utility bills, or cold weather disconnection.  The 
        determination of eligibility of the customers or prospective 
        customers may be released to public utilities or telephone 
        companies to administer the programs.  
           Sec. 4.  Minnesota Statutes 2000, section 15.01, is amended 
        to read: 
           15.01 [DEPARTMENTS OF THE STATE.] 
           The following agencies are designated as the departments of 
        the state government:  the department of administration; the 
        department of agriculture; the department of commerce; the 
        department of corrections; the department of children, families, 
        and learning; the department of economic security; the 
        department of trade and economic development; the department of 
        finance; the department of health; the department of human 
        rights; the department of labor and industry; the department of 
        military affairs; the department of natural resources; the 
        department of employee relations; the department of public 
        safety; the department of public service; the department of 
        human services; the department of revenue; the department of 
        transportation; the department of veterans affairs; and their 
        successor departments. 
           Sec. 5.  Minnesota Statutes 2000, section 15.06, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [APPLICABILITY.] This section applies to 
        the following departments or agencies:  the departments of 
        administration, agriculture, commerce, corrections, economic 
        security, children, families, and learning, employee relations, 
        trade and economic development, finance, health, human rights, 
        labor and industry, natural resources, public safety, public 
        service, human services, revenue, transportation, and veterans 
        affairs; the housing finance and pollution control agencies; the 
        office of commissioner of iron range resources and 
        rehabilitation; the bureau of mediation services; and their 
        successor departments and agencies.  The heads of the foregoing 
        departments or agencies are "commissioners." 
           Sec. 6.  Minnesota Statutes 2000, section 15A.0815, 
        subdivision 2, is amended to read: 
           Subd. 2.  [GROUP I SALARY LIMITS.] The salaries for 
        positions in this subdivision may not exceed 95 percent of the 
        salary of the governor:  
           Commissioner of administration; 
           Commissioner of agriculture; 
           Commissioner of children, families, and learning; 
           Commissioner of commerce; 
           Commissioner of corrections; 
           Commissioner of economic security; 
           Commissioner of employee relations; 
           Commissioner of finance; 
           Commissioner of health; 
           Executive director, higher education services office; 
           Commissioner, housing finance agency; 
           Commissioner of human rights; 
           Commissioner of human services; 
           Executive director, state board of investment; 
           Commissioner of labor and industry; 
           Commissioner of natural resources; 
           Director of office of strategic and long-range planning; 
           Commissioner, pollution control agency; 
           Commissioner of public safety; 
           Commissioner, department of public service; 
           Commissioner of revenue; 
           Commissioner of trade and economic development; 
           Commissioner of transportation; and 
           Commissioner of veterans affairs. 
           Sec. 7.  Minnesota Statutes 2000, section 16B.32, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ENERGY CONSERVATION GOALS; EFFICIENCY PROGRAM.] 
        (a) The commissioner of administration in consultation with 
        the department of public service commissioner of commerce, in 
        cooperation with one or more public utilities or comprehensive 
        energy services providers, may conduct a shared-savings program 
        involving energy conservation expenditures on state-owned 
        buildings.  The public utility or energy services provider shall 
        contract with appropriate state agencies to implement energy 
        efficiency improvements in the selected buildings.  A contract 
        must require the public utility or energy services provider to 
        include all energy efficiency improvements in selected buildings 
        that are calculated to achieve a cost payback within ten years.  
        The contract must require that the public utility or energy 
        services provider be repaid solely from energy cost savings and 
        only to the extent of energy cost savings.  Repayments must be 
        interest-free.  The goal of the program in this paragraph is to 
        demonstrate that through effective energy conservation the total 
        energy consumption per square foot of state-owned and wholly 
        state-leased buildings could be reduced by at least 25 percent 
        from consumption in the base year of 1990.  All agencies 
        participating in the program must report to the commissioner of 
        administration their monthly energy usage, building schedules, 
        inventory of energy-consuming equipment, and other information 
        as needed by the commissioner to manage and evaluate the program.
           (b) The commissioner may exclude from the program of 
        paragraph (a) a building in which energy conservation measures 
        are carried out.  "Energy conservation measures" means measures 
        that are applied to a state building that improve energy 
        efficiency and have a simple return of investment in ten years 
        or within the remaining period of a lease, whichever time is 
        shorter, and involves energy conservation, conservation 
        facilities, renewable energy sources, improvements in operations 
        and maintenance efficiencies, or retrofit activities. 
           (c) This subdivision expires January 1, 2001. 
           Sec. 8.  Minnesota Statutes 2000, section 16B.335, 
        subdivision 4, is amended to read: 
           Subd. 4.  [ENERGY CONSERVATION.] A recipient to whom a 
        direct appropriation is made for a capital improvement project 
        shall ensure that the project complies with the applicable 
        energy conservation standards contained in law, including 
        sections 216C.19 to 216C.20, and rules adopted thereunder.  The 
        recipient may use the energy planning and intervention and 
        energy technologies units of the department of public service to 
        obtain information and technical assistance from the state 
        energy office in the department of commerce on energy 
        conservation and alternative energy development relating to the 
        planning and construction of the capital improvement project. 
           Sec. 9.  Minnesota Statutes 2000, section 16B.56, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [EMPLOYEE TRANSPORTATION PROGRAM.] (a) 
        [ESTABLISHMENT.] To conserve energy and alleviate traffic 
        congestion around state offices, the commissioner shall, in 
        cooperation with the commissioner of public service, the 
        commissioner of transportation, the state energy office in the 
        department of commerce, and interested nonprofit agencies, 
        establish and operate an employee transportation program using 
        commuter vans with a capacity of not less than seven nor more 
        than 16 passengers.  Commuter vans may be used by state 
        employees and others to travel between their homes and their 
        work locations.  However, only state employee drivers may use 
        the van for personal purposes after working hours, not including 
        partisan political activity.  The commissioner shall acquire or 
        lease commuter vans, or otherwise contract for the provision of 
        commuter vans, and shall make the vans available for the use of 
        state employees and others in accordance with standards and 
        procedures adopted by the commissioner.  The commissioner shall 
        promote the maximum participation of state employees and others 
        in the use of the vans.  
           (b) [ADMINISTRATIVE POLICIES.] The commissioner shall adopt 
        standards and procedures under this section without regard to 
        chapter 14.  The commissioner shall provide for the recovery by 
        the state of vehicle acquisition, lease, operation, and 
        insurance costs through efficient and convenient assignment of 
        vans, and for the billing of costs and collection of fees.  A 
        state employee using a van for personal use shall pay, pursuant 
        to the standards and procedures adopted by the commissioner, for 
        operating and routine maintenance costs incurred as a result of 
        the personal use.  Fees collected under this subdivision shall 
        be deposited in the accounts from which the costs of operating, 
        maintaining, and leasing or amortization for the specific 
        vehicle are paid.  
           Sec. 10.  Minnesota Statutes 2000, section 16B.76, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MEMBERSHIP.] (a) The construction codes 
        advisory council consists of the following members: 
           (1) the commissioner of administration or the 
        commissioner's designee representing the department's building 
        codes and standards division; 
           (2) the commissioner of health or the commissioner's 
        designee representing an environmental health section of the 
        department; 
           (3) the commissioner of public safety or the commissioner's 
        designee representing the department's state fire marshal 
        division; 
           (4) the commissioner of public service commerce or the 
        commissioner's designee representing the department's energy 
        regulation and resource management division state energy office; 
        and 
           (5) one member representing each of the following 
        occupations or entities, appointed by the commissioner of 
        administration: 
           (i) a certified building official; 
           (ii) a fire service representative; 
           (iii) a licensed architect; 
           (iv) a licensed engineer; 
           (v) a building owners and managers representative; 
           (vi) a licensed residential building contractor; 
           (vii) a commercial building contractor; 
           (viii) a heating and ventilation contractor; 
           (ix) a plumbing contractor; 
           (x) a representative of a construction and building trades 
        union; and 
           (xi) a local unit of government representative. 
           (b) For members who are not state officials or employees, 
        terms, compensation, removal, and the filling of vacancies are 
        governed by section 15.059.  The council shall select one of its 
        members to serve as chair. 
           (c) The council expires June 30, 2001. 
           Sec. 11.  Minnesota Statutes 2000, section 17.86, 
        subdivision 3, is amended to read: 
           Subd. 3.  [INFORMATION.] The University of Minnesota 
        extension service, in cooperation with the commissioners of 
        agriculture, children, families, and learning, natural 
        resources, and public service commerce, shall serve as the 
        principal agency for publishing and circulating information 
        derived from research under subdivision 2 among the various 
        municipalities and individual property owners in the state.  
        Where practical, the extension service and the state energy 
        office in the department of public service commerce shall secure 
        the advice and assistance of various energy utilities interested 
        and concerned with conservation.  The commissioner of 
        agriculture shall establish an information source for requests 
        for nursery stock, to match needs of municipalities with stocks 
        of trees available for planting from private and governmental 
        sources.  
           Sec. 12.  Minnesota Statutes 2000, section 18.024, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [WOOD UTILIZATION.] The departments of 
        agriculture and natural resources, after consultation with the 
        Minnesota shade tree advisory committee and the commissioner of 
        public service state energy office in the department of 
        commerce, shall investigate, evaluate, and make recommendations 
        to the legislature concerning the potential uses of wood from 
        community trees removed due to disease or other disorders.  
        These recommendations shall include maximum resource recovery 
        through recycling, use as an alternative energy source, or use 
        in construction or the manufacture of new products.  Wood 
        utilization or disposal systems as defined in section 18.023 
        must be included to ensure maximum utilization of diseased shade 
        trees with designs and procedures to ensure public safety and to 
        assure compliance with approved disease control programs. 
           Sec. 13.  Minnesota Statutes 2000, section 43A.08, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [ADDITIONAL UNCLASSIFIED POSITIONS.] Appointing 
        authorities for the following agencies may designate additional 
        unclassified positions according to this subdivision:  the 
        departments of administration; agriculture; commerce; 
        corrections; economic security; children, families, and 
        learning; employee relations; trade and economic development; 
        finance; health; human rights; labor and industry; natural 
        resources; public safety; public service; human services; 
        revenue; transportation; and veterans affairs; the housing 
        finance and pollution control agencies; the state lottery; the 
        state board of investment; the office of administrative 
        hearings; the office of environmental assistance; the offices of 
        the attorney general, secretary of state, state auditor, and 
        state treasurer; the Minnesota state colleges and universities; 
        the higher education services office; the Perpich center for 
        arts education; and the Minnesota zoological board. 
           A position designated by an appointing authority according 
        to this subdivision must meet the following standards and 
        criteria:  
           (1) the designation of the position would not be contrary 
        to other law relating specifically to that agency; 
           (2) the person occupying the position would report directly 
        to the agency head or deputy agency head and would be designated 
        as part of the agency head's management team; 
           (3) the duties of the position would involve significant 
        discretion and substantial involvement in the development, 
        interpretation, and implementation of agency policy; 
           (4) the duties of the position would not require primarily 
        personnel, accounting, or other technical expertise where 
        continuity in the position would be important; 
           (5) there would be a need for the person occupying the 
        position to be accountable to, loyal to, and compatible with, 
        the governor and the agency head, the employing statutory board 
        or commission, or the employing constitutional officer; 
           (6) the position would be at the level of division or 
        bureau director or assistant to the agency head; and 
           (7) the commissioner has approved the designation as being 
        consistent with the standards and criteria in this subdivision. 
           Sec. 14.  Minnesota Statutes 2000, section 45.012, is 
        amended to read: 
           45.012 [COMMISSIONER.] 
           (a) The department of commerce is under the supervision and 
        control of the commissioner of commerce.  The commissioner is 
        appointed by the governor in the manner provided by section 
        15.06.  
           (b) Data that is received by the commissioner or the 
        commissioner's designee by virtue of membership or participation 
        in an association, group, or organization that is not otherwise 
        subject to chapter 13 is confidential or protected nonpublic 
        data but may be shared with the department employees as the 
        commissioner considers appropriate.  The commissioner may 
        release the data to any person, agency, or the public if the 
        commissioner determines that the access will aid the law 
        enforcement process, promote public health or safety, or dispel 
        widespread rumor or unrest.  
           (c) It is part of the department's mission that within the 
        department's resources the commissioner shall endeavor to: 
           (1) prevent the waste or unnecessary spending of public 
        money; 
           (2) use innovative fiscal and human resource practices to 
        manage the state's resources and operate the department as 
        efficiently as possible; 
           (3) coordinate the department's activities wherever 
        appropriate with the activities of other governmental agencies; 
           (4) use technology where appropriate to increase agency 
        productivity, improve customer service, increase public access 
        to information about government, and increase public 
        participation in the business of government; 
           (5) utilize constructive and cooperative labor-management 
        practices to the extent otherwise required by chapters 43A and 
        179A; 
           (6) report to the legislature on the performance of agency 
        operations and the accomplishment of agency goals in the 
        agency's biennial budget according to section 16A.10, 
        subdivision 1; and 
           (7) recommend to the legislature appropriate changes in law 
        necessary to carry out the mission and improve the performance 
        of the department. 
           (d) The commissioner also has all the powers and 
        responsibilities and shall perform all the duties previously 
        assigned to the commissioner of public service and the 
        department of public service under chapters 216, 216A, 216B, 
        216C, 237, 238, 239, and other statutes prior to the date of 
        final enactment of this act, except in the case where those 
        powers, responsibilities, or duties have been specifically 
        otherwise assigned by law. 
           Sec. 15.  Minnesota Statutes 2000, section 103F.325, 
        subdivision 2, is amended to read: 
           Subd. 2.  [REVIEW AND HEARING.] (a) The commissioner shall 
        make the proposed management plan available to affected local 
        governmental bodies, shoreland owners, conservation and outdoor 
        recreation groups, the commissioner of trade and economic 
        development, the commissioner of public service commerce, the 
        governor, and the general public.  The commissioners of trade 
        and economic development and of public service, the state energy 
        office in the department of commerce, and the governor shall 
        review the proposed management plan in accordance with the 
        criteria in section 86A.09, subdivision 3, and submit any 
        written comments to the commissioner within 60 days after 
        receipt of the proposed management plan.  
           (b) By 60 days after making the information available, the 
        commissioner shall conduct a public hearing on the proposed 
        management plan in the county seat of each county that contains 
        a portion of the designated system area, in the manner provided 
        in chapter 14.  
           Sec. 16.  Minnesota Statutes 2000, section 103F.325, 
        subdivision 3, is amended to read: 
           Subd. 3.  [POST HEARING REVIEW.] Upon receipt of the 
        administrative law judge's report, the commissioner shall 
        immediately forward the proposed management plan and the 
        administrative law judge's report to the commissioners of trade 
        and economic development and of public service commerce for 
        review under section 86A.09, subdivision 3, except that the 
        review by the commissioners must be completed or be deemed 
        completed within 30 days after receiving the administrative law 
        judge's report, and the review by the governor must be completed 
        or be deemed completed within 15 days after receipt.  
           Sec. 17.  Minnesota Statutes 2000, section 115A.15, 
        subdivision 5, is amended to read: 
           Subd. 5.  [REPORTS.] (a) By January 1 of each odd-numbered 
        year, the commissioner of administration shall submit a report 
        to the governor and to the environment and natural resources 
        committees of the senate and house of representatives, the 
        finance division of the senate committee on environment and 
        natural resources, and the house of representatives committee on 
        environment and natural resources finance summarizing past 
        activities and proposed goals of the program for the following 
        biennium.  The report shall include at least: 
           (1) a summary list of product and commodity purchases that 
        contain recycled materials; 
           (2) the results of any performance tests conducted on 
        recycled products and agencies' experience with recycled 
        products used; 
           (3) a list of all organizations participating in and using 
        the cooperative purchasing program; and 
           (4) a list of products and commodities purchased for their 
        recyclability and of recycled products reviewed for purchase. 
           (b) By July 1 of each even-numbered year, the director of 
        the office of environmental assistance and the commissioner of 
        public service commerce through the state energy office shall 
        submit recommendations to the commissioner regarding the 
        operation of the program. 
           Sec. 18.  Minnesota Statutes 2000, section 116O.06, 
        subdivision 2, is amended to read: 
           Subd. 2.  [EQUITY INVESTMENTS.] The corporation may acquire 
        an interest in a product or a private business entity, except 
        that the corporation may not acquire an interest in a business 
        entity engaged in a trade or industry whose profits are directly 
        regulated by the commissioner of commerce or the department of 
        public service public utilities commission.  The corporation may 
        enter into joint venture agreements with other private 
        corporations to promote economic development and job creation.  
           Sec. 19.  Minnesota Statutes 2000, section 123B.65, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] The definitions in this 
        subdivision apply to this section. 
           (a) "Energy conservation measure" means a training program 
        or facility alteration designed to reduce energy consumption or 
        operating costs and includes: 
           (1) insulation of the building structure and systems within 
        the building; 
           (2) storm windows and doors, caulking or weatherstripping, 
        multiglazed windows and doors, heat absorbing or heat reflective 
        glazed and coated window and door systems, additional glazing, 
        reductions in glass area, and other window and door system 
        modifications that reduce energy consumption; 
           (3) automatic energy control systems; 
           (4) heating, ventilating, or air conditioning system 
        modifications or replacements; 
           (5) replacement or modifications of lighting fixtures to 
        increase the energy efficiency of the lighting system without 
        increasing the overall illumination of a facility, unless such 
        increase in illumination is necessary to conform to the 
        applicable state or local building code for the lighting system 
        after the proposed modifications are made; 
           (6) energy recovery systems; 
           (7) cogeneration systems that produce steam or forms of 
        energy such as heat, as well as electricity, for use primarily 
        within a building or complex of buildings; 
           (8) energy conservation measures that provide long-term 
        operating cost reductions.  
           (b) "Guaranteed energy savings contract" means a contract 
        for the evaluation and recommendations of energy conservation 
        measures, and for one or more energy conservation measures.  The 
        contract must provide that all payments, except obligations on 
        termination of the contract before its expiration, are to be 
        made over time, but not to exceed 15 years from the date of 
        final installation, and the savings are guaranteed to the extent 
        necessary to make payments for the systems. 
           (c) "Qualified provider" means a person or business 
        experienced in the design, implementation, and installation of 
        energy conservation measures.  A qualified provider to whom the 
        contract is awarded shall give a sufficient bond to the school 
        district for its faithful performance. 
           (d) "Commissioner" means the commissioner of public service 
        commerce through the state energy office. 
           Sec. 20.  Minnesota Statutes 2000, section 123B.65, 
        subdivision 3, is amended to read: 
           Subd. 3.  [EVALUATION BY COMMISSIONER.] Upon request of the 
        board, the commissioner of public service shall review the 
        report required in subdivision 2 and provide an evaluation to 
        the board on the proposed contract within 15 working days of 
        receiving the report.  In evaluating the proposed contract, the 
        commissioner shall determine whether the detailed calculations 
        of the costs and of the energy and operating savings are 
        accurate and reasonable.  The commissioner may request 
        additional information about a proposed contract as the 
        commissioner deems necessary.  If the commissioner requests 
        additional information, the commissioner shall not be required 
        to submit an evaluation to the board within fewer than ten 
        working days of receiving the requested information.  
           Sec. 21.  Minnesota Statutes 2000, section 123B.65, 
        subdivision 5, is amended to read: 
           Subd. 5.  [PAYMENT OF REVIEW EXPENSES.] The commissioner of 
        public service may charge a district requesting services under 
        subdivisions 3 and 4 actual costs incurred by the department 
        of public service commerce while conducting the review, or 
        one-half percent of the total identified project cost, whichever 
        is less.  Before conducting the review, the commissioner shall 
        notify a district requesting review services that expenses will 
        be charged to the district.  The commissioner shall bill the 
        district upon completion of the contract review.  Money 
        collected by the commissioner under this subdivision must be 
        deposited in the general fund.  A district may include the cost 
        of a review by the commissioner under subdivision 3 in a 
        contract made pursuant to this section. 
           Sec. 22.  Minnesota Statutes 2000, section 161.45, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [RULES.] Electric transmission, telephone 
        or telegraph lines, pole lines, community antenna television 
        lines, railways, ditches, sewers, water, heat or gas mains, gas 
        and other pipe lines, flumes, or other structures which, under 
        the laws of this state or the ordinance of any city, may be 
        constructed, placed, or maintained across or along any trunk 
        highway, or the roadway thereof, by any person, persons, 
        corporation, or any subdivision of the state, may be so 
        maintained or hereafter constructed only in accordance with such 
        rules as may be prescribed by the commissioner who shall have 
        power to prescribe and enforce reasonable rules with reference 
        to the placing and maintaining along, across, or in any such 
        trunk highway of any of the utilities hereinbefore set forth.  
        Nothing herein shall restrict the actions of public authorities 
        in extraordinary emergencies nor restrict the power and 
        authority of the department of public service commissioner of 
        commerce as provided for in other provisions of law.  Provided, 
        however, that in the event any local subdivision of government 
        has enacted ordinances relating to the method of installation or 
        requiring underground installation of such community antenna 
        television lines, the permit granted by the commissioner of 
        transportation shall require compliance with such local 
        ordinance. 
           Sec. 23.  Minnesota Statutes 2000, section 168.61, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITION.] The term "intercity bus" as 
        used in sections 168.61 to 168.65 means a motor bus as defined 
        in section 168.011, subdivision 9, which is owned or operated by 
        either a resident or nonresident of Minnesota in interstate 
        commerce under authority of the Interstate Commerce Commission 
        or in combined interstate and intrastate commerce under 
        authority of the Interstate Commerce Commission and the 
        department of public service transportation of Minnesota, as a 
        result of which operation such bus operates both within and 
        without the territorial limits of the state of Minnesota.  
           Sec. 24.  Minnesota Statutes 2000, section 169.073, is 
        amended to read: 
           169.073 [PROHIBITED LIGHT OR SIGNAL.] 
           (a) No person or corporation shall place, maintain or 
        display any red light or red sign, signal, or lighting device or 
        maintain it in view of any highway or any line of railroad on or 
        over which trains are operated in such a way as to interfere 
        with the effectiveness or efficiency of any highway 
        traffic-control device or signals or devices used in the 
        operation of a railroad.  Upon written notice from the 
        commissioner of transportation, a person or corporation 
        maintaining or owning or displaying a prohibited light shall 
        promptly remove it, or change the color of it to some other 
        color than red.  Where a prohibited light or sign interferes 
        with the effectiveness or efficiency of the signals or devices 
        used in the operation of a railroad, the department of public 
        service transportation may cause the removal of it and the 
        department may issue notices and orders for its removal.  The 
        department shall proceed as provided in sections 216.13, 216.14, 
        216.15, 216.16, and 216.17, with a right of appeal to the 
        aggrieved party in accordance with chapter 14. 
           (b) No person or corporation shall maintain or display any 
        light after written notice from the commissioner of 
        transportation or the department of public service that the 
        light constitutes a traffic hazard and that it has ordered the 
        removal thereof. 
           Sec. 25.  Minnesota Statutes 2000, section 174.03, 
        subdivision 7, is amended to read: 
           Subd. 7.  [ENERGY CONSERVATION.] The commissioner, in 
        cooperation with the commissioner of public service commerce 
        through the state energy office, shall evaluate all modes of 
        transportation in terms of their levels of energy consumption.  
        The commissioner of public service commerce shall provide the 
        commissioner with projections of the future availability of 
        energy resources for transportation.  The commissioner shall use 
        the results of this evaluation and the projections to evaluate 
        alternative programs and facilities to be included in the 
        statewide plan and to otherwise promote the more efficient use 
        of energy resources for transportation purposes. 
           Sec. 26.  Minnesota Statutes 2000, section 181.30, is 
        amended to read: 
           181.30 [DUTY OF DEPARTMENT OF PUBLIC SERVICE.] 
           Any officer of any railroad company in the state violating 
        any of the provisions of section 181.29 shall be guilty of a 
        misdemeanor; and, upon conviction, punished by a fine of not 
        less than $100, and not more than $700, for each offense, or by 
        imprisonment in the county jail not more than 60 days, or both 
        fine and imprisonment, at the discretion of the court.  It shall 
        be the duty of the state department of public 
        service transportation, upon complaint properly filed with it 
        alleging a violation of section 181.29, to make a full 
        investigation in relation thereto, and for such purpose it shall 
        have the power to administer oaths, interrogate witnesses, take 
        testimony and require the production of books and papers, and if 
        such report shall show a violation of the provisions of section 
        181.29, the department of public service transportation shall, 
        through the attorney general, begin the prosecution of all 
        parties against whom evidence of such violation is found; but 
        section 181.29 shall not be construed to prevent any other 
        person from beginning prosecution for the violation of the 
        provisions thereof.  
           Sec. 27.  Minnesota Statutes 2000, section 216A.01, is 
        amended to read: 
           216A.01 [ESTABLISHMENT OF DEPARTMENT AND COMMISSION; POWERS 
        AND DUTIES.] 
           There are hereby created and established the department of 
        public service, and the public utilities commission.  The 
        department of public service commerce shall have and possess all 
        of the rights and powers and perform all of the duties vested in 
        it by this chapter.  The public utilities commission shall have 
        and possess all of the rights and powers and perform all of the 
        duties vested in it by this chapter, and those formerly vested 
        by law in the railroad and warehouse commission. 
           Sec. 28.  Minnesota Statutes 2000, section 216A.035, is 
        amended to read: 
           216A.035 [CONFLICT OF INTEREST.] 
           (a) No person, while a member of the public utilities 
        commission, while acting as executive secretary of the 
        commission, or while employed in a professional capacity by the 
        commission, shall receive any income, other than dividends or 
        other earnings from a mutual fund or trust if these earnings do 
        not constitute a significant portion of the person's income, 
        directly or indirectly from any public utility or other 
        organization subject to regulation by the commission. 
           (b) No person is eligible to be appointed as a member of 
        the commission if the person has been employed with an entity, 
        or an affiliated company of an entity, that is subject to rate 
        regulation by the commission within one year from the date when 
        the person's term on the commission will begin. 
           (c) No person who is an employee of the public service 
        department of commerce shall participate in any manner in any 
        decision or action of the commission where that person has a 
        direct or indirect financial interest.  Each commissioner or 
        employee of the public service department who is in the general 
        professional, supervisory, or technical units established in 
        section 179A.10 or who is a professional, supervisory, or 
        technical employee defined as confidential in section 179A.03, 
        subdivision 4, or who is a management classification employee 
        and whose duties are related to public utilities or 
        transportation utility, telephone company, or telecommunications 
        company regulation shall report to the campaign finance and 
        public disclosure board annually before April 15 any interest in 
        an industry or business regulated by the commission.  Each 
        commissioner shall file a statement of economic interest as 
        required by section 10A.09 with the campaign finance and public 
        disclosure board and the public utilities commission before 
        taking office.  The statement of economic interest must state 
        any interest that the commissioner has in an industry or 
        business regulated by the commission. 
           (d) A professional employee of the commission or department 
        must immediately disclose to the commission or to the 
        commissioner of the department, respectively, any communication, 
        direct or indirect, with a person who is a party to a pending 
        proceeding before the commission regarding future benefits, 
        compensation, or employment to be received from that person. 
           Sec. 29.  Minnesota Statutes 2000, section 216A.036, is 
        amended to read: 
           216A.036 [EMPLOYMENT RESTRICTIONS.] 
           (a) A person who serves as (1) a commissioner of the public 
        utilities commission, (2) commissioner of the department of 
        public service commerce, or (3) deputy commissioner of the 
        department commerce, shall not, while employed with or within 
        one year after leaving the commission, or department, accept 
        employment with, receive compensation directly or indirectly 
        from, or enter into a contractual relationship with an entity, 
        or an affiliated company of an entity, that is subject to rate 
        regulation by the commission. 
           (b) An entity or an affiliated company of an entity that is 
        subject to rate regulation by the commission, or a person acting 
        on behalf of the entity, shall not negotiate or offer to employ 
        or compensate a commissioner of the public utilities commission, 
        the commissioner of public service commerce, or the deputy 
        commissioner of commerce, while the person is so employed or 
        within one year after the person leaves that employment. 
           (c) For the purposes of this section, "affiliated company" 
        means a company that controls, is controlled by, or is under 
        common control with an entity subject to rate regulation by the 
        commission. 
           (d) A person who violates this section is subject to a 
        civil penalty not to exceed $10,000 for each violation.  The 
        attorney general may bring an action in district court to 
        collect the penalties provided in this section.  
           Sec. 30.  Minnesota Statutes 2000, section 216A.05, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [LEGISLATIVE AND QUASI-JUDICIAL FUNCTIONS.] 
        The functions of the commission shall be legislative and 
        quasi-judicial in nature.  It may make such investigations and 
        determinations, hold such hearings, prescribe such rules and 
        issue such orders with respect to the control and conduct of the 
        businesses coming within its jurisdiction as the legislature 
        itself might make but only as it shall from time to time 
        authorize.  It may adjudicate all proceedings brought before it 
        in which the violation of any law or rule administered by the 
        department of commerce is alleged. 
           Sec. 31.  Minnesota Statutes 2000, section 216A.07, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ADMINISTRATIVE COMMISSIONER DUTIES.] The 
        commissioner shall be the executive and administrative head of 
        the public service department and shall have and possess of 
        commerce has all the rights and powers and shall perform all the 
        duties relating to the administrative function of the department 
        as set forth in this chapter.  The commissioner may: 
           (1) prepare all forms or blanks for the purpose of 
        obtaining information which the commissioner may deem necessary 
        or useful in the proper exercise of the authority and duties of 
        the commissioner in connection with regulated businesses; 
           (2) prescribe the time and manner within which forms or 
        blanks shall be filed with the department; 
           (3) inspect at all reasonable times, and copy the books, 
        records, memoranda and correspondence or other documents and 
        records of any person relating to any regulated business; and 
           (4) cause the deposition to be taken of any person 
        concerning the business and affairs of any business regulated by 
        the department.  Information sought through said deposition 
        shall be for a lawfully authorized purpose and shall be relevant 
        and material to the investigation or hearing before the 
        commission.  Information obtained from said deposition shall be 
        used by the department only for a lawfully authorized purpose 
        and pursuant to powers and responsibilities conferred upon the 
        department.  Said deposition is to be taken in the manner 
        prescribed by law for taking depositions in civil actions in the 
        district court. 
           Sec. 32.  Minnesota Statutes 2000, section 216A.08, is 
        amended to read: 
           216A.08 [CONTINUATION OF RULES OF PUBLIC SERVICE 
        DEPARTMENT.] 
           All valid rules, orders, and directives heretofore 
        enforced, issued, or promulgated by the public service 
        department under authority of chapter 216, 216A, 216B, 216C, 
        218, 219, 221, or 222, 237, 238, or 239 shall remain and 
        continue in force and effect until repealed, modified, or 
        superseded by duly authorized rules, orders, or directives of 
        the public utilities commission or, the commissioner of 
        transportation, or the commissioner of commerce. 
           Sec. 33.  Minnesota Statutes 2000, section 216A.085, 
        subdivision 3, is amended to read: 
           Subd. 3.  [STAFFING.] The intervention office shall be 
        under the control and supervision of the commissioner of the 
        department of public service commerce.  The commissioner may 
        hire staff or contract for outside services as needed to carry 
        out the purposes of this section.  The attorney general shall 
        act as counsel in all intervention proceedings.  
           Sec. 34.  Minnesota Statutes 2000, section 216B.02, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SCOPE.] For the purposes of Laws 1974, 
        chapter 429 this chapter the terms defined in this section have 
        the meanings given them. 
           Sec. 35.  Minnesota Statutes 2000, section 216B.02, 
        subdivision 7, is amended to read: 
           Subd. 7.  [COMMISSION.] "Commission" means the public 
        utilities commission of the department of public service. 
           Sec. 36.  Minnesota Statutes 2000, section 216B.02, 
        subdivision 8, is amended to read: 
           Subd. 8.  [DEPARTMENT.] "Department" means the department 
        of public service commerce of the state of Minnesota. 
           Sec. 37.  Minnesota Statutes 2000, section 216B.16, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [NOTICE.] Unless the commission otherwise 
        orders, no public utility shall change a rate which has been 
        duly established under this chapter, except upon 60 days' notice 
        to the commission.  The notice shall include statements of 
        facts, expert opinions, substantiating documents, and exhibits, 
        supporting the change requested, and state the change proposed 
        to be made in the rates then in force and the time when the 
        modified rates will go into effect.  If the filing utility does 
        not have an approved conservation improvement plan on file with 
        the department of public service, it shall also include in its 
        notice an energy conservation plan pursuant to section 
        216B.241.  The filing utility shall give written notice, as 
        approved by the commission, of the proposed change to the 
        governing body of each municipality and county in the area 
        affected.  All proposed changes shall be shown by filing new 
        schedules or shall be plainly indicated upon schedules on file 
        and in force at the time. 
           Sec. 38.  Minnesota Statutes 2000, section 216B.16, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SUSPENSION OF PROPOSED RATE; HEARING; FINAL 
        DETERMINATION DEFINED.] (a) Whenever there is filed with the 
        commission a schedule modifying or resulting in a change in any 
        rates then in force as provided in subdivision 1, the commission 
        may suspend the operation of the schedule by filing with the 
        schedule of rates and delivering to the affected utility a 
        statement in writing of its reasons for the suspension at any 
        time before the rates become effective.  The suspension shall 
        not be for a longer period than ten months beyond the initial 
        filing date except as provided in this subdivision or 
        subdivision 1a.  
           (b) During the suspension the commission shall determine 
        whether all questions of the reasonableness of the rates 
        requested raised by persons deemed interested or by the 
        administrative division of the department of public service can 
        be resolved to the satisfaction of the commission.  If the 
        commission finds that all significant issues raised have not 
        been resolved to its satisfaction, or upon petition by ten 
        percent of the affected customers or 250 affected customers, 
        whichever is less, it shall refer the matter to the office of 
        administrative hearings with instructions for a public hearing 
        as a contested case pursuant to chapter 14, except as otherwise 
        provided in this section. 
           (c) The commission may order that the issues presented by 
        the proposed rate changes be bifurcated into two separate 
        hearings as follows:  (1) determination of the utility's revenue 
        requirements and (2) determination of the rate design.  Upon 
        issuance of both administrative law judge reports, the issues 
        shall again be joined for consideration and final determination 
        by the commission. 
           (d) All prehearing discovery activities of state agency 
        intervenors shall be consolidated and conducted by the 
        department of public service commerce. 
           (e) If the commission does not make a final determination 
        concerning a schedule of rates within ten months after the 
        initial filing date, the schedule shall be deemed to have been 
        approved by the commission; except if: 
           (1) an extension of the procedural schedule has been 
        granted under subdivision 1a, in which case the schedule of 
        rates is deemed to have been approved by the commission on the 
        last day of the extended period of suspension; or 
           (2) a settlement has been submitted to and rejected by the 
        commission and the commission does not make a final 
        determination concerning the schedule of rates, the schedule of 
        rates is deemed to have been approved 60 days after the initial 
        or, if applicable, the extended period of suspension. 
           (f) If the commission finds that it has insufficient time 
        during the suspension period to make a final determination of a 
        case involving changes in general rates because of the need to 
        make a final determination of another previously filed case 
        involving changes in general rates under this section or section 
        237.075, the commission may extend the suspension period to the 
        extent necessary to allow itself 20 working days to make the 
        final determination after it has made a final determination in 
        the previously filed case.  An extension of the suspension 
        period under this paragraph does not alter the setting of 
        interim rates under subdivision 3. 
           (g) For the purposes of this section, "final determination" 
        means the initial decision of the commission and not any order 
        which may be entered by the commission in response to a petition 
        for rehearing or other further relief.  The commission may 
        further suspend rates until it determines all those petitions. 
           Sec. 39.  Minnesota Statutes 2000, section 216B.16, 
        subdivision 6b, is amended to read: 
           Subd. 6b.  [ENERGY CONSERVATION IMPROVEMENT.] (a) Except as 
        otherwise provided in this subdivision, all investments and 
        expenses of a public utility as defined in section 216B.241, 
        subdivision 1, paragraph (e), incurred in connection with energy 
        conservation improvements shall be recognized and included by 
        the commission in the determination of just and reasonable rates 
        as if the investments and expenses were directly made or 
        incurred by the utility in furnishing utility service. 
           (b) After December 31, 1999, investments and expenses for 
        energy conservation improvements shall not be included by the 
        commission in the determination of just and reasonable electric 
        and gas rates for retail electric and gas service provided to 
        large electric customer facilities that have been exempted by 
        the commissioner of the department of public service pursuant to 
        section 216B.241, subdivision 1a, paragraph (b).  However, no 
        public utility shall be prevented from recovering its investment 
        in energy conservation improvements from all customers that were 
        made on or before December 31, 1999, in compliance with the 
        requirements of section 216B.241.  
           (c) The commission may permit a public utility to file rate 
        schedules providing for annual recovery of the costs of energy 
        conservation improvements.  These rate schedules may be 
        applicable to less than all the customers in a class of retail 
        customers if necessary to reflect the differing minimum spending 
        requirements of section 216B.241, subdivision 1a.  After 
        December 31, 1999, the commission shall allow a public utility, 
        without requiring a general rate filing under this section, to 
        reduce the electric and gas rates applicable to large electric 
        customer facilities that have been exempted by the commissioner 
        of the department of public service pursuant to section 
        216B.241, subdivision 1a, paragraph (b), by an amount that 
        reflects the elimination of energy conservation improvement 
        investments or expenditures for those facilities required on or 
        before December 31, 1999.  In the event that the commission has 
        set electric or gas rates based on the use of an accounting 
        methodology that results in the cost of conservation 
        improvements being recovered from utility customers over a 
        period of years, the rate reduction may occur in a series of 
        steps to coincide with the recovery of balances due to the 
        utility for conservation improvements made by the utility on or 
        before December 31, 1999.  
           Sec. 40.  Minnesota Statutes 2000, section 216B.16, 
        subdivision 15, is amended to read: 
           Subd. 15.  [LOW-INCOME RATE PROGRAMS; REPORT.] (a) The 
        commission may consider ability to pay as a factor in setting 
        utility rates and may establish programs for low-income 
        residential ratepayers in order to ensure affordable, reliable, 
        and continuous service to low-income utility customers.  The 
        commission shall order a pilot program for at least one 
        utility.  In ordering pilot programs, the commission shall 
        consider the following: 
           (1) the potential for low-income programs to provide 
        savings to the utility for all collection costs including but 
        not limited to:  costs of disconnecting and reconnecting 
        residential ratepayers' service, all activities related to the 
        utilities' attempt to collect past due bills, utility working 
        capital costs, and any other administrative costs related to 
        inability to pay programs and initiatives; 
           (2) the potential for leveraging federal low-income energy 
        dollars to the state; and 
           (3) the impact of energy costs as a percentage of the total 
        income of a low-income residential customer. 
           (b) In determining the structure of the pilot utility 
        program, the commission shall: 
           (1) consult with advocates for and representatives of 
        low-income utility customers, administrators of energy 
        assistance and conservation programs, and utility 
        representatives; 
           (2) coordinate eligibility for the program with the state 
        and federal energy assistance program and low-income residential 
        energy programs, including weatherization programs; and 
           (3) evaluate comprehensive low-income programs offered by 
        utilities in other states. 
           (c) The commission shall implement at least one pilot 
        project by January 1, 1995, and shall allow a utility required 
        to implement a pilot project to recover the net costs of the 
        project in the utility's rates. 
           (d) The commission, in conjunction with the commissioner of 
        the department of public service and the commissioner of 
        economic security, shall review low-income rate programs and 
        shall report to the legislature by January 1, 1998.  The report 
        must include: 
           (1) the increase in federal energy assistance money 
        leveraged by the state as a result of this program; 
           (2) the effect of the program on low-income customer's 
        ability to pay energy costs; 
           (3) the effect of the program on utility customer bad debt 
        and arrearages; 
           (4) the effect of the program on the costs and numbers of 
        utility disconnections and reconnections and other costs 
        incurred by the utility in association with inability to pay 
        programs; 
           (5) the ability of the utility to recover the costs of the 
        low-income program without a general rate change; 
           (6) how other ratepayers have been affected by this 
        program; 
           (7) recommendations for continuing, eliminating, or 
        expanding the low-income pilot program; and 
           (8) how general revenue funds may be utilized in 
        conjunction with low-income programs. 
           Sec. 41.  Minnesota Statutes 2000, section 216B.162, 
        subdivision 7, is amended to read: 
           Subd. 7.  [COMMISSION DETERMINATION.] (a) Except as 
        provided under subdivision 6, competitive rates offered by 
        electric utilities under this section must be filed with the 
        commission and must be approved, modified, or rejected by the 
        commission within 90 days.  The utility's filing must include 
        statements of fact demonstrating that the proposed rates meet 
        the standards of this subdivision.  The filing must be served on 
        the department of public service and the office of the attorney 
        general at the same time as it is served on the commission. 
           (b) In reviewing a specific rate proposal, the commission 
        shall determine: 
           (1) that the rate meets the terms and conditions in 
        subdivision 4, unless the commission determines that waiver of 
        one or more terms and conditions would be in the public 
        interest; 
           (2) that the consumer can obtain its energy requirements 
        from an energy supplier not rate-regulated by the commission 
        under section 216B.16; 
           (3) that the customer is not likely to take service from 
        the electric utility seeking to offer the competitive rate if 
        the customer was charged the electric utility's standard 
        tariffed rate; and 
           (4) that after consideration of environmental and 
        socioeconomic impacts it is in the best interest of all other 
        customers to offer the competitive rate to the customer subject 
        to effective competition. 
           (c) If the commission approves the competitive rate, it 
        becomes effective as agreed to by the electric utility and the 
        customer.  If the competitive rate is modified by the 
        commission, the commission shall issue an order modifying the 
        competitive rate subject to the approval of the electric utility 
        and the customer.  Each party has ten days in which to reject 
        the proposed modification.  If no party rejects the proposed 
        modification, the commissioner's order becomes final.  If either 
        party rejects the commission's proposed modification, the 
        electric utility, on its behalf or on the behalf of the 
        customer, may submit to the commission a modified version of the 
        commission's proposal.  The commission shall accept or reject 
        the modified version within 30 days.  If the commission rejects 
        the competitive rate, it shall issue an order indicating the 
        reasons for the rejection. 
           Sec. 42.  Minnesota Statutes 2000, section 216B.162, 
        subdivision 11, is amended to read: 
           Subd. 11.  [COMMISSION DETERMINATION.] (a) Proposals for 
        discretionary rate reductions offered by utilities must be filed 
        with the commission, with copies of the filing served upon the 
        department of public service and the office of attorney general 
        at the same time it is served upon the commission.  The 
        commission shall review the proposals according to procedures 
        developed under section 216B.05, subdivision 2a.  The commission 
        shall not approve discretionary rate reductions offered by 
        public utilities that do not have an accepted resource plan on 
        file with the commission.  The commission shall not approve 
        discretionary rate reductions unless the utility has made the 
        customer aware of all cost-effective opportunities for energy 
        efficiency improvements offered by the utility. 
           (b) Public utilities that provide service under 
        discretionary rate reductions shall not, through increased 
        revenue requirements or through prospective rate design changes, 
        recover any revenues foregone due to the discretionary rate 
        reductions, nor shall the commission grant such recovery. 
           Sec. 43.  Minnesota Statutes 2000, section 216B.1675, 
        subdivision 9, is amended to read: 
           Subd. 9.  [COMMISSION FINDINGS.] The commission shall issue 
        findings concerning the appropriateness of the proposed plan.  
        The commission may approve, reject, or modify the plan in a 
        manner which meets the requirements of this section.  An 
        approved or modified plan becomes effective unless the plan is 
        withdrawn by the utility within 30 days of a final appealable 
        order.  If the utility withdraws an approved or modified plan, 
        all of the administrative costs related to the plan that are 
        charged by the commission or the department of public service to 
        the utility may not be recovered from ratepayers in current or 
        subsequent rates.  A utility that withdraws an approved or 
        modified plan may not file another plan under this section for a 
        period of one year following the withdrawal of the plan. 
           Sec. 44.  Minnesota Statutes 2000, section 216B.241, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [INVESTMENT, EXPENDITURE, AND CONTRIBUTION; 
        PUBLIC UTILITY.] (a) For purposes of this subdivision and 
        subdivision 2, "public utility" has the meaning given it in 
        section 216B.02, subdivision 4.  Each public utility shall spend 
        and invest for energy conservation improvements under this 
        subdivision and subdivision 2 the following amounts: 
           (1) for a utility that furnishes gas service, 0.5 percent 
        of its gross operating revenues from service provided in the 
        state; 
           (2) for a utility that furnishes electric service, 1.5 
        percent of its gross operating revenues from service provided in 
        the state; and 
           (3) for a utility that furnishes electric service and that 
        operates a nuclear-powered electric generating plant within the 
        state, two percent of its gross operating revenues from service 
        provided in the state. 
           For purposes of this paragraph (a), "gross operating 
        revenues" do not include revenues from large electric customer 
        facilities exempted by the commissioner of the department of 
        public service pursuant to paragraph (b). 
           (b) The owner of a large electric customer facility may 
        petition the commissioner of the department of public service to 
        exempt both electric and gas utilities serving the large energy 
        customer facility from the investment and expenditure 
        requirements of paragraph (a) with respect to retail revenues 
        attributable to the facility.  At a minimum, the petition must 
        be supported by evidence relating to competitive or economic 
        pressures on the customer and a showing by the customer of 
        reasonable efforts to identify, evaluate, and implement 
        cost-effective conservation improvements at the facility.  If a 
        petition is filed on or before October 1 of any year, the order 
        of the commissioner to exempt revenues attributable to the 
        facility can be effective no earlier than January 1 of the 
        following year.  The commissioner shall not grant an exemption 
        if the commissioner determines that granting the exemption is 
        contrary to the public interest.  The commissioner may, after 
        investigation, rescind any exemption granted under this 
        paragraph upon a determination that cost-effective energy 
        conservation improvements are available at the large electric 
        customer facility.  For the purposes of this paragraph, 
        "cost-effective" means that the projected total cost of the 
        energy conservation improvement at the large electric customer 
        facility is less than the projected present value of the energy 
        and demand savings resulting from the energy conservation 
        improvement.  For the purposes of investigations by the 
        commissioner under this paragraph, the owner of any large 
        electric customer facility shall, upon request, provide the 
        commissioner with updated information comparable to that 
        originally supplied in or with the owner's original petition 
        under this paragraph. 
           (c) The commissioner may require investments or spending 
        greater than the amounts required under this subdivision for a 
        public utility whose most recent advance forecast required under 
        section 216B.2422 or 216C.17 projects a peak demand deficit of 
        100 megawatts or greater within five years under mid-range 
        forecast assumptions.  
           (d) A public utility or owner of a large electric customer 
        facility may appeal a decision of the commissioner under 
        paragraph (b) or (c) to the commission under subdivision 2.  In 
        reviewing a decision of the commissioner under paragraph (b) or 
        (c), the commission shall rescind the decision if it finds that 
        the required investments or spending will: 
           (1) not result in cost-effective energy conservation 
        improvements; or 
           (2) otherwise not be in the public interest. 
           (e) Each utility shall determine what portion of the amount 
        it sets aside for conservation improvement will be used for 
        conservation improvements under subdivision 2 and what portion 
        it will contribute to the energy and conservation account 
        established in subdivision 2a.  A public utility may propose to 
        the commissioner to designate that all or a portion of funds 
        contributed to the account established in subdivision 2a be used 
        for research and development projects.  Contributions must be 
        remitted to the commissioner of public service by February 1 of 
        each year.  Nothing in this subdivision prohibits a public 
        utility from spending or investing for energy conservation 
        improvement more than required in this subdivision. 
           Sec. 45.  Minnesota Statutes 2000, section 216B.241, 
        subdivision 1b, is amended to read: 
           Subd. 1b.  [CONSERVATION IMPROVEMENT BY COOPERATIVE 
        ASSOCIATION OR MUNICIPALITY.] (a) This subdivision applies to: 
           (1) a cooperative electric association that generates and 
        transmits electricity to associations that provide electricity 
        at retail including a cooperative electric association not 
        located in this state that serves associations or others in the 
        state; 
           (2) a municipality that provides electric service to retail 
        customers; and 
           (3) a municipality with gross operating revenues in excess 
        of $5,000,000 from sales of natural gas to retail customers.  
           (b) Each cooperative electric association and municipality 
        subject to this subdivision shall spend and invest for energy 
        conservation improvements under this subdivision the following 
        amounts: 
           (1) for a municipality, 0.5 percent of its gross operating 
        revenues from the sale of gas and one percent of its gross 
        operating revenues from the sale of electricity not purchased 
        from a public utility governed by subdivision 1a or a 
        cooperative electric association governed by this subdivision, 
        excluding gross operating revenues from electric and gas service 
        provided in the state to large electric customer facilities; and 
           (2) for a cooperative electric association, 1.5 percent of 
        its gross operating revenues from service provided in the state, 
        excluding gross operating revenues from service provided in the 
        state to large electric customer facilities indirectly through a 
        distribution cooperative electric association. 
           (c) Each municipality and cooperative association subject 
        to this subdivision shall identify and implement energy 
        conservation improvement spending and investments that are 
        appropriate for the municipality or association, except that a 
        municipality or association may not spend or invest for energy 
        conservation improvements that directly benefit a large electric 
        customer facility.  Each municipality and cooperative electric 
        association subject to this subdivision may spend and invest 
        annually up to 15 percent of the total amount required to be 
        spent and invested on energy conservation improvements under 
        this subdivision on research and development projects that meet 
        the definition of energy conservation improvement in subdivision 
        1 and that are funded directly by the municipality or 
        cooperative electric association.  Load management may be used 
        to meet the requirements of this subdivision if it reduces the 
        demand for or increases the efficiency of electric services.  A 
        generation and transmission cooperative electric association may 
        include as spending and investment required under this 
        subdivision conservation improvement spending and investment by 
        cooperative electric associations that provide electric service 
        at retail to consumers and that are served by the generation and 
        transmission association. 
           (d) By February 1 of each year, each municipality or 
        cooperative shall report to the commissioner its energy 
        conservation improvement spending and investments with a brief 
        analysis of effectiveness in reducing consumption of electricity 
        or gas.  The commissioner shall review each report and make 
        recommendations, where appropriate, to the municipality or 
        association to increase the effectiveness of conservation 
        improvement activities.  The commissioner shall also review each 
        report for whether a portion of the money spent on residential 
        conservation improvement programs is devoted to programs that 
        directly address the needs of renters and low-income persons 
        unless an insufficient number of appropriate programs are 
        available.  For the purposes of this subdivision and subdivision 
        2, "low-income" means an income of less than 185 percent of the 
        federal poverty level. 
           (e) As part of its spending for conservation improvement, a 
        municipality or association may contribute to the energy and 
        conservation account.  A municipality or association may propose 
        to the commissioner to designate that all or a portion of funds 
        contributed to the account be used for research and development 
        projects.  Any amount contributed must be remitted to the 
        commissioner of public service by February 1 of each year. 
           Sec. 46.  Minnesota Statutes 2000, section 216B.241, 
        subdivision 2b, is amended to read: 
           Subd. 2b.  [RECOVERY OF EXPENSES.] The commission shall 
        allow a utility to recover expenses resulting from a 
        conservation improvement program required by the department and 
        contributions to the energy and conservation account, unless the 
        recovery would be inconsistent with a financial incentive 
        proposal approved by the commission.  In addition, a utility may 
        file annually, or the public utilities commission may require 
        the utility to file, and the commission may approve, rate 
        schedules containing provisions for the automatic adjustment of 
        charges for utility service in direct relation to changes in the 
        expenses of the utility for real and personal property taxes, 
        fees, and permits, the amounts of which the utility cannot 
        control.  A public utility is eligible to file for adjustment 
        for real and personal property taxes, fees, and permits under 
        this subdivision only if, in the year previous to the year in 
        which it files for adjustment, it has spent or invested at least 
        1.75 percent of its gross revenues from provision of electric 
        service, excluding gross operating revenues from electric 
        service provided in the state to large electric customer 
        facilities for which the commissioner of public service has 
        issued an exemption under subdivision 1a, paragraph (b), and 0.6 
        percent of its gross revenues from provision of gas service, 
        excluding gross operating revenues from gas services provided in 
        the state to large electric customer facilities for which the 
        commissioner of public service has issued an exemption under 
        subdivision 1a, paragraph (b), for that year for energy 
        conservation improvements under this section. 
           Sec. 47.  Minnesota Statutes 2000, section 216C.01, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [APPLICABILITY.] The definitions in this 
        section apply to sections 216C.02, 216C.05, 216C.07 to 216C.19, 
        216C.20 to 216C.35, and 216C.373 to 216C.381 this chapter. 
           Sec. 48.  Minnesota Statutes 2000, section 216C.01, 
        subdivision 2, is amended to read: 
           Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
        commissioner of the department of public service commerce. 
           Sec. 49.  Minnesota Statutes 2000, section 216C.01, 
        subdivision 3, is amended to read: 
           Subd. 3.  [DEPARTMENT.] "Department" means the department 
        of public service commerce. 
           Sec. 50.  Minnesota Statutes 2000, section 216C.051, 
        subdivision 6, is amended to read: 
           Subd. 6.  [ASSESSMENT; APPROPRIATION.] On request by the 
        cochairs of the legislative task force and after approval of the 
        legislative coordinating commission, the commissioner of the 
        department of public service commerce shall assess from electric 
        utilities, in addition to assessments made under section 
        216B.62, the amount requested for the operation of the task 
        force not to exceed $700,000.  This authority to assess 
        continues until the commissioner has assessed a total of 
        $700,000.  The amount assessed under this section is 
        appropriated to the director of the legislative coordinating 
        commission for those purposes, and is available until expended. 
           Sec. 51.  Minnesota Statutes 2000, section 216C.37, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] In this section:  
           (a) "Commissioner" means the commissioner of public service 
        commerce. 
           (b) "Energy conservation investments" means all capital 
        expenditures that are associated with conservation measures 
        identified in an energy project study, and that have a ten-year 
        or less payback period.  
           (c) "Municipality" means any county, statutory or home rule 
        charter city, town, school district, or any combination of those 
        units operating under an agreement to jointly undertake projects 
        authorized in this section.  
           (d) "Energy project study" means a study of one or more 
        energy-related capital improvement projects analyzed in 
        sufficient detail to support a financing application.  At a 
        minimum, it must include one year of energy consumption and cost 
        data, a description of existing conditions, a description of 
        proposed conditions, a detailed description of the costs of the 
        project, and calculations sufficient to document the proposed 
        energy savings. 
           Sec. 52.  Minnesota Statutes 2000, section 216C.40, 
        subdivision 4, is amended to read: 
           Subd. 4.  [CONDITION PRECEDENT.] The duties of the 
        department under this section are conditional on the 
        commissioner of public service finding that there will be at 
        least one public utility that will be subject to the assessment 
        created by Laws 1993, chapter 254, section 7. 
           Sec. 53.  Minnesota Statutes 2000, section 237.02, is 
        amended to read: 
           237.02 [GENERAL AUTHORITY OF DEPARTMENT AND COMMISSION; 
        DEFINITIONS.] 
           The department of public service commerce and the public 
        utilities commission, now existing under the laws of this state, 
        are hereby vested with the same jurisdiction and supervisory 
        power over telephone and telecommunications companies doing 
        business in this state as it now has the commission's 
        predecessor, the railroad and warehouse commission, had over 
        railroad and express companies.  The definitions set forth 
        in section sections 216A.02 shall apply and 216B.02 also apply 
        to this chapter. 
           Sec. 54.  Minnesota Statutes 2000, section 237.075, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SUSPENSION OF PROPOSED RATE; HEARING; FINAL 
        DETERMINATION DEFINED.] (a) Whenever there is filed with the 
        commission as provided in subdivision 1 a schedule modifying or 
        resulting in a change in any rate then in force, the commission 
        may suspend the operation of the schedule by filing with the 
        schedule of rates and delivering to the affected telephone 
        company a statement in writing of its reasons for the suspension 
        at any time before the rates become effective.  The suspension 
        shall not be for a longer period than ten months beyond the 
        initial filing date except as provided in paragraph (b).  During 
        the suspension the commission shall determine whether all 
        questions of the reasonableness of the rates requested raised by 
        persons deemed interested or by the administrative division of 
        the department of public service can be resolved to the 
        satisfaction of the commission.  If the commission finds that 
        all significant issues raised have not been resolved to its 
        satisfaction, or upon petition by ten percent of the affected 
        customers or 250 affected customers, whichever is less, it shall 
        refer the matter to the office of administrative hearings with 
        instructions for a public hearing as a contested case pursuant 
        to chapter 14, except as otherwise provided in this section.  
        The commission may order that the issues presented by the 
        proposed rate changes be bifurcated into two separate hearings 
        as follows:  (1) determination of the telephone company's 
        revenue requirements and (2) determination of the rate design.  
        Upon issuance of both administrative law judge reports, the 
        issues shall again be joined for consideration and final 
        determination by the commission.  All prehearing discovery 
        activities of state agency intervenors shall be consolidated and 
        conducted by the department of public service commerce.  If the 
        commission does not make a final determination concerning a 
        schedule of rates within ten months after the initial filing 
        date, the schedule shall be deemed to have been approved by the 
        commission; except if a settlement has been submitted to and 
        rejected by the commission, the schedule is deemed to have been 
        approved 12 months after the initial filing. 
           (b) If the commission finds that it has insufficient time 
        during the suspension period to make a final determination of a 
        case involving changes in general rates because of the need to 
        make final determinations of other previously filed cases 
        involving changes in general rates under this section or section 
        216B.16, the commission may extend the suspension period to the 
        extent necessary to allow itself 20 working days to make the 
        final determination after it has made final determinations in 
        the previously filed cases.  An extension of the suspension 
        period under this paragraph does not alter the setting of 
        interim rates under subdivision 3. 
           (c) For the purposes of this section, "final determination" 
        means the initial decision of the commission and not any order 
        which may be entered by the commission in response to a petition 
        for rehearing or other further relief.  The commission may 
        further suspend rates until it determines all those petitions. 
           Sec. 55.  Minnesota Statutes 2000, section 237.075, 
        subdivision 9, is amended to read: 
           Subd. 9.  [ELECTION ON REGULATION; COOPERATIVE, MUNICIPAL, 
        INDEPENDENT.] For the purposes of this section, "telephone 
        company" shall not include a cooperative telephone association 
        organized under the provisions of chapter 308A, an independent 
        telephone company, or a municipal, unless the cooperative 
        telephone association, independent telephone company, or 
        municipal makes the election provided in this subdivision. 
           A cooperative telephone association may elect to become 
        subject to rate regulation by the commission pursuant to this 
        section.  The election shall be (a) approved by the board of 
        directors of the association in accordance with the procedures 
        for amending the articles of incorporation contained in section 
        308A.135, excluding the filing requirements; or (b) approved by 
        a majority of members or stockholders voting by mail ballot 
        initiated by petition of no fewer than five percent of the 
        members or stockholders of the association.  The ballot to be 
        used for the election shall be approved by the board of 
        directors and the department of public service.  The department 
        shall mail the ballots to the association's members who shall 
        return the ballots to the department.  The department will keep 
        the ballots sealed until a date agreed upon by the department 
        and the board of directors.  On this date, representatives of 
        the department and the association shall count the ballots.  If 
        a majority of the association's members who vote elect to become 
        subject to rate regulation by the commission, the election shall 
        be effective 30 days after the date the ballots are counted.  
        For purposes of this section, the term "member or stockholder"  
        shall mean either the member or stockholder of record or the 
        spouse of the member or stockholder unless the association has 
        been notified otherwise in writing.  
           A municipal may elect to become subject to rate regulation 
        by the commission pursuant to this section.  The election shall 
        be (a) approved by resolution of the governing body of the 
        municipality; or (b) approved by a majority of the customers of 
        the municipal voting by mail ballot initiated by petition of no 
        fewer than 20 percent of the customers of the municipal.  The 
        ballot to be used for the election shall be approved by the 
        governing body of the municipality and the department of public 
        service.  The department shall mail the ballots to the 
        municipal's customers who shall return the ballots to the 
        department.  The department will keep the ballots sealed until a 
        date agreed upon by the department and the governing body of the 
        municipality.  On this date, representatives of the department 
        and the municipal shall count the ballots.  If a majority of the 
        customers of the municipal who vote elect to become subject to 
        rate regulation by the commission, the election shall be 
        effective 30 days after the date the ballots are counted.  For 
        purposes of this section, the term "customer" shall mean either 
        the person in whose name the telephone service is registered or 
        the spouse of the person unless the municipal utility has been 
        notified otherwise in writing.  
           An independent telephone company may elect to become 
        subject to rate regulation by the commission pursuant to this 
        section.  The election shall be (a) approved by the board of 
        directors of the company in accordance with the procedures for 
        amending the articles of incorporation contained in sections 
        302A.133 to 302A.139, excluding the filing requirements; or (b) 
        approved by a majority of subscribers voting by mail ballot 
        initiated by petition of no fewer than five percent of the 
        subscribers of the company.  The ballot to be used for the 
        election shall be approved by the board of directors and the 
        department of public service.  The department shall mail the 
        ballots to the company's subscribers who shall return the 
        ballots to the department.  The department will keep the ballots 
        sealed until a date agreed upon by the department and the board 
        of directors.  On this date, representatives of the department 
        and the company shall count the ballots.  If a majority of the 
        company's subscribers who vote elect to become subject to rate 
        regulation by the commission, the election shall be effective 30 
        days after the date the ballots are counted.  For purposes of 
        this section the term "subscriber" shall mean either the person 
        in whose name the telephone service is registered or the spouse 
        of the person unless the independent telephone company has been 
        notified otherwise in writing.  
           Sec. 56.  Minnesota Statutes 2000, section 237.082, is 
        amended to read: 
           237.082 [TELECOMMUNICATION SERVICE; POLICY OF INCREASED 
        SPEED AND SERVICE.] 
           When setting rates, adopting rules, or issuing orders 
        related to telecommunication matters that affect deployment of 
        the infrastructure, the commission may apply the goals of: 
           (1) achieving economically efficient investment in: 
           (i) higher speed telecommunication services; and 
           (ii) greater capacity for voice, video, and data 
        transmission; and 
           (2) just and reasonable rates. 
           The department of public service may apply the same goals 
        in its regulation of and recommendations regarding 
        telecommunication services. 
           Sec. 57.  Minnesota Statutes 2000, section 237.21, is 
        amended to read: 
           237.21 [VALUATION OF TELEPHONE PROPERTY.] 
           In determining the value of any telephone property for rate 
        making purposes, no valuation shall be allowed upon the value of 
        any franchise granted by the state or any municipality where no 
        payment was or is being made to the state or municipality on 
        account thereof.  The requirement as to reasonableness of rates 
        shall apply to each exchange unit as well as to telephone plants 
        as a whole.  Provided, that in the case of a company operating a 
        telephone system consisting of more than one exchange in the 
        state, reasonableness of rates, as measured by earnings, shall 
        be determined by a reasonable return from the total operations 
        of the system within the state rather than by the return from 
        individual exchanges or services.  No telephone rates or charges 
        shall be allowed or approved by the commission under any 
        circumstances, which are inadequate and which are intended to or 
        naturally tend to destroy competition or produce a monopoly in 
        telephone service in the locality affected.  
           Laws 1953, chapter 25, shall have no effect on proceedings 
        pending before the courts or the department of public service at 
        the time of its enactment.  
           Sec. 58.  Minnesota Statutes 2000, section 237.30, is 
        amended to read: 
           237.30 [TELEPHONE INVESTIGATION FUND; APPROPRIATION.] 
           The sum of $25,000 is hereby appropriated out of any moneys 
        in the state treasury not otherwise appropriated, to establish 
        and provide a revolving fund to be known as the Minnesota 
        Telephone Investigation Fund for the use of the department of 
        public service commerce and of the attorney general in 
        investigations, valuations, and revaluations under section 
        237.295.  All sums paid by the telephone companies to reimburse 
        the department of public service for its expenses pursuant to 
        section 237.295 shall be credited to the revolving fund and 
        shall be deposited in a separate bank account and not commingled 
        with any other state funds or moneys, but any balance in excess 
        of $25,000 in the revolving fund at the end of each fiscal year 
        shall be paid into the state treasury and credited to the 
        general fund.  The sum of $25,000 herein appropriated and all 
        subsequent credits to said revolving fund shall be paid upon the 
        warrant of the commissioner of finance upon application of the 
        department or of the attorney general to an aggregate amount of 
        not more than one-half of such sums to each of them, which 
        proportion shall be constantly maintained in all credits and 
        withdrawals from the revolving fund. 
           Sec. 59.  Minnesota Statutes 2000, section 237.462, 
        subdivision 6, is amended to read: 
           Subd. 6.  [EXPEDITED PROCEEDING.] (a) The commission may 
        order an expedited proceeding under section 237.61 and this 
        subdivision, in lieu of a contested case under chapter 14, to 
        develop an evidentiary record in any proceeding that involves 
        contested issues of material fact either upon request of a party 
        or upon the commission's own motion if the complaint alleges a 
        violation described in subdivision 1, clauses (1) to (4).  The 
        commission may order an expedited proceeding under this 
        subdivision if the commission finds an expedited proceeding is 
        in the public interest, regardless of whether all parties agree 
        to the expedited proceeding.  In determining whether to grant an 
        expedited proceeding, the commission may consider any evidence 
        of impairment of the provision of telecommunications service to 
        subscribers in the state or impairment of the provision of any 
        service or network element subject to the jurisdiction of the 
        commission.  
           (b) Any request for an expedited proceeding under this 
        subdivision must be noted in the title of the first filing by a 
        party.  The filing shall also state the specific circumstances 
        that the party believes warrant an expedited proceeding under 
        this subdivision.  
           (c) A complaint requesting an expedited proceeding, unless 
        filed by the department of public service or the attorney 
        general, must set forth the actions and the dates of the actions 
        taken by the party filing the complaint to attempt to resolve 
        the alleged violations with the party against whom the complaint 
        is filed, including any requests that the party against whom the 
        complaint is filed correct the conduct giving rise to the 
        violations alleged in the complaint.  If no such actions were 
        taken by the complainant, the complaint shall set forth the 
        reasons why no such actions were taken.  The commission may 
        order an expedited proceeding even if the filing complaint fails 
        to meet this requirement if the commission determines that it 
        would be in the public interest to go forward with the expedited 
        proceeding without information in the complaint on attempts to 
        resolve the dispute. 
           (d) The complaining party shall serve the complaint along 
        with any written discovery requests by hand delivery and 
        facsimile on the party against whom the complaint is filed, the 
        department of public service, and the office of the attorney 
        general on the same day the complaint is filed with the 
        commission. 
           (e) The party responding to a complaint that includes a 
        request for an expedited proceeding under this subdivision shall 
        file an answer within 15 days after receiving the complaint.  
        The responding party shall state in the answer the party's 
        position on the request for an expedited proceeding.  The 
        responding party shall serve with the answer any objections to 
        any written discovery requests as well as any written discovery 
        requests the responding party wishes to serve on the complaining 
        party.  Except for stating any objections, the responding party 
        is not required to answer any written discovery requests under 
        this subdivision until a time established at a prehearing 
        conference.  The responding party shall serve a copy of the 
        answer and any discovery requests and objections on the 
        complaining party, the department of public service, and office 
        of the attorney general by hand delivery and facsimile on the 
        same day as the answer is filed with the commission. 
           (f) Within 15 days of receiving the answer to a complaint 
        in a proceeding in which a party has requested an expedited 
        hearing, the commission shall determine whether the filing 
        warrants an expedited proceeding.  If the commission decides to 
        grant a request by a party or if the commission orders an 
        expedited proceeding on its own motion, the commission shall 
        conduct within seven days of the decision a prehearing 
        conference to schedule the evidentiary hearing.  During the 
        prehearing conference, the commission shall establish a 
        discovery schedule that requires all discovery to be completed 
        no later than three days before the start of the hearing.  An 
        evidentiary hearing under this subdivision must commence no 
        later than 45 days after the commission's decision to order an 
        expedited proceeding.  A quorum of the commission shall preside 
        at any evidentiary hearing under this subdivision unless all the 
        parties to the proceeding agree otherwise.  
           (g) All pleadings submitted under this subdivision must be 
        verified and all oral statements of fact made in a hearing or 
        deposition under this subdivision must be made under oath or 
        affirmation. 
           (h) The commission shall issue a written decision and final 
        order on the complaint within 15 days after the close of the 
        evidentiary hearing under this subdivision.  On the day of 
        issuance, the commission shall notify the parties by facsimile 
        that a final order has been issued and shall provide each party 
        with a copy of the final order. 
           (i) The commission may extend any time periods under this 
        subdivision if all parties to the proceeding agree to the 
        extension or if the commission finds the extension is necessary 
        to ensure a just resolution of the complaint. 
           (j) Except as otherwise provided in this subdivision, an 
        expedited proceeding under this subdivision shall be governed by 
        the following procedural rules: 
           (1) the parties shall have the discovery rights provided in 
        Minnesota Rules, parts 1400.6700 to 1400.7000; 
           (2) the parties shall have the right to cross-examine 
        witnesses as provided in section 14.60, subdivision 3; 
           (3) the admissibility of evidence and development of record 
        for decision shall be governed by section 14.60 and Minnesota 
        Rules, part 1400.7300; and 
           (4) the commission may apply other procedures or standards 
        included in the rules of the office of administrative hearings, 
        as necessary to ensure the fair and expeditious resolution of 
        disputes under this section. 
           Sec. 60.  Minnesota Statutes 2000, section 237.51, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CREATION.] The department of public 
        service commissioner of commerce shall administer through 
        interagency agreement with the department commissioner of human 
        services a program to distribute communication devices to 
        eligible communication-impaired persons and contract with a 
        local consumer group that serves communication-impaired persons 
        to create and maintain a telecommunication relay service.  For 
        purposes of sections 237.51 to 237.56, the department of public 
        service commerce and any organization with which it contracts 
        pursuant to this section or section 237.54, subdivision 2, are 
        not telephone companies or telecommunications carriers as 
        defined in section 237.01. 
           Sec. 61.  Minnesota Statutes 2000, section 237.51, 
        subdivision 5, is amended to read: 
           Subd. 5.  [DEPARTMENT OF PUBLIC SERVICE COMMISSIONER OF 
        COMMERCE DUTIES.] In addition to any duties specified elsewhere 
        in sections 237.51 to 237.56, the department of public service 
        commissioner of commerce shall: 
           (1) prepare the reports required by section 237.55; 
           (2) administer the fund created in section 237.52; and 
           (3) adopt rules under chapter 14 to implement the 
        provisions of sections 237.50 to 237.56. 
           Sec. 62.  Minnesota Statutes 2000, section 237.51, 
        subdivision 5a, is amended to read: 
           Subd. 5a.  [DEPARTMENT OF HUMAN SERVICES DUTIES.] (a) In 
        addition to any duties specified elsewhere in sections 237.51 to 
        237.56, the department commissioner of human services shall: 
           (1) define economic hardship, special needs, and household 
        criteria so as to determine the priority of eligible applicants 
        for initial distribution of devices and to determine 
        circumstances necessitating provision of more than one 
        communication device per household; 
           (2) establish a method to verify eligibility requirements; 
           (3) establish specifications for communication devices to 
        be purchased under section 237.53, subdivision 3; and 
           (4) inform the public and specifically the community of 
        communication-impaired persons of the program.  
           (b) The department commissioner may establish an advisory 
        board to advise the department in carrying out the duties 
        specified in this section and to advise the department of public 
        service commissioner of commerce in carrying out its duties 
        under section 237.54.  If so established, the advisory board 
        must include, at a minimum, the following communication-impaired 
        persons: 
           (1) at least one member who is deaf; 
           (2) at least one member who is speech impaired; 
           (3) at least one member who is mobility impaired; and 
           (4) at least one member who is hard-of-hearing. 
           The membership terms, compensation, and removal of members 
        and the filling of membership vacancies are governed by section 
        15.059.  Advisory board meetings shall be held at the discretion 
        of the commissioner. 
           Sec. 63.  Minnesota Statutes 2000, section 237.52, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ASSESSMENT.] The department of public 
        service commissioner of commerce shall annually recommend to the 
        commission an adequate and appropriate surcharge and budget to 
        implement sections 237.50 to 237.56.  The public utilities 
        commission shall review the budget for reasonableness and may 
        modify the budget to the extent it is unreasonable.  The 
        commission shall annually determine the funding mechanism to be 
        used within 60 days of receipt of the recommendation of the 
        department and shall order the imposition of surcharges 
        effective on the earliest practicable date.  The commission 
        shall establish a monthly charge no greater than 20 cents for 
        each customer access line, including trunk equivalents as 
        designated by the commission pursuant to section 403.11, 
        subdivision 1. 
           Sec. 64.  Minnesota Statutes 2000, section 237.52, 
        subdivision 4, is amended to read: 
           Subd. 4.  [APPROPRIATION.] Money in the fund is 
        appropriated to the department of public service commissioner of 
        commerce to implement sections 237.51 to 237.56. 
           Sec. 65.  Minnesota Statutes 2000, section 237.52, 
        subdivision 5, is amended to read: 
           Subd. 5.  [EXPENDITURES.] Money in the fund may only be 
        used for: 
           (1) expenses of the department of public service commerce, 
        including personnel cost, public relations, advisory board 
        members' expenses, preparation of reports, and other reasonable 
        expenses not to exceed ten percent of total program 
        expenditures; 
           (2) reimbursing the commissioner of human services for 
        purchases made or services provided pursuant to section 237.53; 
           (3) reimbursing telephone companies for purchases made or 
        services provided under section 237.53, subdivision 5; and 
           (4) contracting for establishment and operation of the 
        telecommunication relay service required by section 237.54. 
           All costs directly associated with the establishment of the 
        program, the purchase and distribution of communication devices, 
        and the establishment and operation of the telecommunication 
        relay service are either reimbursable or directly payable from 
        the fund after authorization by the department of public service 
        commissioner of commerce.  The department of public 
        service commissioner of commerce shall contract with the message 
        relay service operator to indemnify the local exchange carriers 
        of the relay service for any fines imposed by the Federal 
        Communications Commission related to the failure of the relay 
        service to comply with federal service standards.  
        Notwithstanding section 16A.41, the department of public service 
        commissioner may advance money to the contractor of the 
        telecommunication relay service if the contractor establishes to 
        the department's commissioner's satisfaction that the advance 
        payment is necessary for the operation of the service.  The 
        advance payment may be used only for working capital reserve for 
        the operation of the service.  The advance payment must be 
        offset or repaid by the end of the contract fiscal year together 
        with interest accrued from the date of payment.  
           Sec. 66.  Minnesota Statutes 2000, section 237.54, 
        subdivision 2, is amended to read: 
           Subd. 2.  [OPERATION.] The department of public 
        service commissioner of commerce shall contract with a local 
        consumer organization that serves communication-impaired persons 
        for operation and maintenance of the telecommunication relay 
        system.  The department commissioner may contract with other 
        than a local consumer organization if no local consumer 
        organization is available to enter into or perform a reasonable 
        contract or the only available consumer organization fails to 
        comply with terms of a contract.  The operator of the system 
        shall keep all messages confidential, shall train personnel in 
        the unique needs of communication-impaired people, and shall 
        inform communication-impaired persons and the public of the 
        availability and use of the system.  The operator shall not 
        relay a message unless it originates or terminates through a 
        communication device for the deaf or a Brailling device for use 
        with a telephone. 
           Sec. 67.  Minnesota Statutes 2000, section 237.55, is 
        amended to read: 
           237.55 [ANNUAL REPORT ON COMMUNICATION ACCESS.] 
           The department of public service commissioner of commerce 
        must prepare a report for presentation to the commission by 
        January 31 of each year.  Each report must review the 
        accessibility of the telephone system to communication-impaired 
        persons, review the ability of non-communication-impaired 
        persons to communicate with communication-impaired persons via 
        the telephone system, describe services provided, account for 
        money received and disbursed annually for each aspect of the 
        program to date, and include predicted future operation. 
           Sec. 68.  Minnesota Statutes 2000, section 237.59, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PETITION.] (a) A telephone company, or the 
        commission on its own motion, may petition to have a service of 
        that telephone company classified as subject to effective 
        competition or emerging competition.  The petition must be 
        served on the commission, the department of public service, the 
        office of the attorney general, and any other person designated 
        by the commission.  The petition must contain at least: 
           (1) a list of the known alternative providers of the 
        service available to the company's customers; and 
           (2) a description of affiliate relationships with any other 
        provider of the service in the company's market. 
           (b) At the time the company first offers a service, it 
        shall also file a petition with the commission for a 
        determination as to how the service should be classified.  In 
        the event that no interested party or the commission objects to 
        the company's proposed classification within 20 days of the 
        filing of the petition, the company's proposed classification of 
        the service is deemed approved.  If an objection is filed, the 
        commission shall determine the appropriate classification after 
        a hearing conducted pursuant to section 237.61.  In either 
        event, the company may offer the new service to its customers 
        ten days after the company files the price list and incremental 
        cost study as provided in section 237.60, subdivision 2, 
        paragraph (f). 
           (c) A new service may be classified as subject to effective 
        competition or emerging competition pursuant to the criteria set 
        forth in subdivision 5.  A new service must be regulated under 
        the emerging competition provisions if it is not integrally 
        related to the provision of adequate local service or access to 
        the telephone network or to the privacy, health, or safety of 
        the company's customers, whether or not it meets the criteria 
        set forth in subdivision 5. 
           Sec. 69.  Minnesota Statutes 2000, section 237.768, is 
        amended to read: 
           237.768 [PERIODIC FINANCIAL REPORT.] 
           In addition to the reports required under section 237.766, 
        an alternative regulation plan may require a telephone company 
        to file with the department an annual report of financial 
        matters for the previous calendar year on or before May 1 of 
        each year on report forms furnished by the department of public 
        service in the same manner as is required of other telephone 
        companies on August 1, 1995.  In addition, any company subject 
        to a plan shall file with the commission and department a copy 
        of any filings it has made to the Federal Communications 
        Commission regarding the provisions of video programming 
        provided through a video dial tone facility in Minnesota.  An 
        alternative regulation plan may require a telephone company to 
        maintain its accounts in accordance with the system of accounts 
        prescribed for the company by the commission under section 
        237.10. 
           Sec. 70.  Minnesota Statutes 2000, section 239.01, is 
        amended to read: 
           239.01 [WEIGHTS AND MEASURES DIVISION; JURISDICTION.] 
           The weights and measures division, referred to in this 
        chapter as the division, is created under the jurisdiction of 
        the department of public service commerce.  The division has 
        supervision and control over all weights, weighing devices, and 
        measures in the state. 
           Sec. 71.  Minnesota Statutes 2000, section 239.10, is 
        amended to read: 
           239.10 [ANNUAL INSPECTION.] 
           Subdivision 1.  [LIGHT CAPACITY SCALES; RETAIL 
        ESTABLISHMENTS.] The director shall inspect light capacity 
        scales in retail establishments such as grocery stores, other 
        retail food establishments, or hardware stores, not more often 
        than once every 36 months except when the owner requests an 
        inspection, when the scale is inspected as part of an 
        investigation, or when the scale has been repaired. 
           Subd. 2.  [PACKAGED FOOD COMMODITIES.] The director shall 
        inspect packaged food commodities in grocery stores and other 
        retail food establishments not more often than once every 36 
        months except when the owner requests an inspection or when 
        packages are inspected as part of an investigation. 
           Subd. 3.  [OTHER WEIGHTS AND MEASURES.] The director shall 
        inspect all weights and measures, except those specified in 
        subdivisions 1 and 2, annually, or as often as deemed possible 
        within budget and staff limitations. 
           Sec. 72.  Minnesota Statutes 2000, section 325E.11, is 
        amended to read: 
           325E.11 [COLLECTION FACILITIES; NOTICE.] 
           (a) Any person selling at retail or offering motor oil or 
        motor oil filters for retail sale in this state shall: 
           (1) post a notice indicating the nearest location where 
        used motor oil and used motor oil filters may be returned at no 
        cost for recycling or reuse, post a toll-free telephone number 
        that may be called by the public to determine a convenient 
        location, or post a listing of locations where used motor oil 
        and used motor oil filters may be returned at no cost for 
        recycling or reuse; or 
           (2) if the person is subject to section 325E.112, 
        subdivision 1, paragraph (b), post a notice informing customers 
        purchasing motor oil or motor oil filters of the location of the 
        used motor oil and used motor oil filter collection site 
        established by the retailer in accordance with section 325E.112, 
        subdivision 1, paragraph (b), where used motor oil and used 
        motor oil filters may be returned at no cost. 
           (b) A notice under paragraph (a) shall be posted on or 
        adjacent to the motor oil and motor oil filter displays, be at 
        least 8-1/2 inches by 11 inches in size, contain the universal 
        recycling symbol with the following language: 
           (1) "It is illegal to put used oil and used motor oil 
        filters in the garbage."; 
           (2) "Recycle your used oil and used motor oil filters."; 
        and 
           (3)(i) "There is a free collection site here for your used 
        oil and used motor oil filters."; 
           (ii) "There is a free collection site for used oil and used 
        motor oil filters located at (name of business and street 
        address)."; 
           (iii) "For the location of a free collection site for used 
        oil and used motor oil filters call (toll-free phone number)."; 
        or 
           (iv) "Here is a list of free collection sites for used oil 
        and used motor oil filters." 
           (c) The division of weights and measures under in the 
        department of public service commerce shall enforce compliance 
        with this section as provided in section 239.54.  The pollution 
        control agency shall enforce compliance with this section under 
        sections 115.071 and 116.072 in coordination with the division 
        of weights and measures. 
           Sec. 73.  Minnesota Statutes 2000, section 325E.115, 
        subdivision 2, is amended to read: 
           Subd. 2.  [COMPLIANCE; MANAGEMENT.] The division of weights 
        and measures under in the department of public service commerce 
        shall enforce compliance of subdivision 1 as provided in section 
        239.54.  The commissioner of the pollution control agency shall 
        inform persons governed by subdivision 1 of requirements for 
        managing lead acid batteries.  
           Sec. 74.  Minnesota Statutes 2000, section 326.243, is 
        amended to read: 
           326.243 [SAFETY STANDARDS.] 
           All electrical wiring, apparatus and equipment for electric 
        light, heat and power, alarm and communication systems shall 
        comply with the rules of the department of public service, the 
        commissioner of commerce, or the department of labor and 
        industry, as applicable, and be installed in conformity with 
        accepted standards of construction for safety to life and 
        property.  For the purposes of this chapter, the rules and 
        safety standards stated at the time the work is done in the then 
        most recently published edition of the National Electrical Code 
        as adopted by the National Fire Protection Association, Inc. and 
        approved by the American National Standards Institute, and the 
        National Electrical Safety Code as published by the Institute of 
        Electrical and Electronics Engineers, Inc. and approved by the 
        American National Standards Institute, shall be prima facie 
        evidence of accepted standards of construction for safety to 
        life and property; provided further, that in the event a 
        Minnesota Building Code is formulated pursuant to section 
        16B.61, containing approved methods of electrical construction 
        for safety to life and property, compliance with said methods of 
        electrical construction of said Minnesota Building Code shall 
        also constitute compliance with this section, and provided 
        further, that nothing herein contained shall prohibit any 
        political subdivision from making and enforcing more stringent 
        requirements than set forth herein and such requirements shall 
        be complied with by all licensed electricians working within the 
        jurisdiction of such political subdivisions.  
           Sec. 75.  Minnesota Statutes 2000, section 484.50, is 
        amended to read: 
           484.50 [SUMMONS; PLACE OF TRIAL; ST. LOUIS COUNTY.] 
           A party wishing to have an appeal from an order of the 
        department of public service public utilities commission, an 
        election contest, a lien foreclosure, or a civil cause or 
        proceeding of a kind commenced or appealed by a party in the 
        court, tried in the city of Virginia shall, in the summons, 
        notice of appeal in a matter, or other jurisdictional instrument 
        issued, in addition to the usual provisions, print, stamp, or 
        write thereon the words, "to be tried at the city of Virginia," 
        and a party wishing a matter commenced or appealed by a party in 
        the court tried at the city of Hibbing shall, in the summons, 
        notice of appeal in a matter, or other jurisdictional instrument 
        issued, in addition to the usual provisions, print, stamp, or 
        write thereon the words, "to be tried at the city of Hibbing," 
        and in a case where a summons, notice of appeal in a matter, or 
        other jurisdictional instrument contains a specification, the 
        case shall be tried at the city of Virginia, or the city of 
        Hibbing, as the case may be, unless the defendant shall have the 
        place of trial fixed in the manner specified in this section. 
           If the place of trial designated is not the proper place of 
        trial, as specified in sections 484.44 to 484.52, the cause 
        shall nevertheless be tried in a place, unless the defendant, in 
        an answer in addition to the other allegations of defense, shall 
        plead the location of the defendant's residence, and demand that 
        the action be tried at the place of holding the court nearest 
        the defendant's residence, as provided in this section; and in a 
        case where the answer of the defendant pleads the place of 
        residence and makes a demand of place of trial, the plaintiff, 
        in reply, may admit or deny the allegations of residence, and if 
        the allegations of residence are not expressly denied, the case 
        shall be tried at the place demanded by the defendant, and if 
        the allegations of residence are denied, the place of trial 
        shall be determined by the court on motion. 
           If there are several defendants, residing at different 
        places in a county, the trial shall be at the place in which the 
        majority of the defendants unite in demanding, or if the numbers 
        are equal, at the place nearest the residence of the majority of 
        the defendants. 
           The venue of an action may be changed from one of these 
        places to another, by order of the court, in the following cases:
           (1) Upon written consent of the parties; 
           (2) When it appears, on motion, that a party has been made 
        a defendant for the purpose of preventing a change of venue as 
        provided in this section; 
           (3) When an impartial trial cannot be held in the place 
        where the action is pending; or 
           (4) When the convenience of witnesses and the ends of 
        justice would be promoted by the change. 
           Application for a change under clause (2), (3), or (4), 
        shall be made by motion which shall be returnable and heard at 
        the place of commencement of the action. 
           Sec. 76.  [REPEALER.] 
           Minnesota Statutes 2000, sections 216A.06; and 237.69, 
        subdivision 3, are repealed. 
           Sec. 77.  [INSTRUCTION TO REVISOR.] 
           The revisor of statutes shall change the words "public 
        service" to the word "commerce" in the following sections of 
        Minnesota Statutes:  13.68; 13.681; 17A.04, subdivisions 6, 7, 
        and 8; 17A.10, subdivision 1; 41A.09, subdivision 7; 116C.03, 
        subdivision 2; 160.262, subdivision 3; 216A.085, subdivision 1; 
        216B.241, subdivision 1; 237.295, subdivision 1; 237.662, 
        subdivision 3; 237.70, subdivision 7; 239.05, subdivisions 6c, 
        7a, 8, and 8c; 272.0211, subdivision 1; 296A.02, subdivision 1; 
        308A.210, subdivisions 5 and 6; 325F.733, subdivision 7; and 
        469.164, subdivision 2. 
           Sec. 78.  [EFFECTIVE DATE.] 
           This article is effective July 1, 2001. 
           Presented to the governor June 28, 2001 
           Signed by the governor June 30, 2001, 8:52 p.m.

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569