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1983 Minnesota Session Laws

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                         Laws of Minnesota 1983 

                        CHAPTER 289--H.F.No. 300
           An act relating to the operation of state government; 
          reorganizing the department of commerce; providing for 
          appointment of a commissioner of commerce; prescribing 
          his powers and duties; transferring certain powers and 
          duties from the commissioners of administration, 
          banks, insurance, securities and real estate, and the 
          director of the office of consumer services, to the 
          commissioner of commerce; transferring certain powers 
          and duties from the chairman of the commerce 
          commission to the commissioner of commerce; 
          transferring certain powers and duties from the 
          director of the office of consumer services to the 
          commissioner of commerce and the attorney general; 
          eliminating certain positions and divisions in the 
          department of commerce; transferring certain rural 
          credit records from the commissioner of banks to the 
          commissioner of natural resources; creating an office 
          of debt management in the department of finance; 
          reorganizing the department of energy, planning and 
          development; creating a state planning agency, a 
          department of energy and economic development, and an 
          office of tourism; renaming the small business finance 
          agency the energy and economic development authority; 
          creating an information office and an export financing 
          authority; naming the energy and economic development 
          authority assignee of community development 
          corporations; creating energy financing programs; 
          creating an energy intervention office in the 
          department of public service; transferring 
          responsibilities for trade and export development from 
          the commissioner of energy, planning and development 
          to the commissioner of agriculture; transferring the 
          functions of the environmental quality board under the 
          Environmental Procedures Act to the commissioner of 
          energy and economic development and the bureau of 
          business licenses; transferring the function of 
          issuing certificates of need for large energy 
          facilities from the department of energy, planning and 
          development to the public utilities commission; 
          appropriating money; amending Minnesota Statutes 1982, 
          sections 15.039; 15.06, subdivisions 1 and 8; 15A.081, 
          subdivision 1; 43A.08, subdivision 1a; 45.04; 45.05; 
          45.06; 45.07; 45.071, subdivision 2; 45.08, 
          subdivision 3, and by adding a subdivision; 45.16, 
          subdivisions 1 and 2; 45.17, subdivisions 1, 2, 3, 4, 
          5, 7, and by adding a subdivision; 46.22; 46.221; 
          116C.24, subdivision 3, and by adding a subdivision; 
          116C.25; 116C.32; 116C.33, subdivision 2; 116C.34; 
          116J.01, subdivisions 1, 2, and 3; 116J.03; 116J.09; 
          116J.10; 116J.28; 116J.31; 116J.42, subdivisions 1, 2, 
          4, 7, and 9; 116J.58, subdivision 1; 116J.60; 116J.61; 
          116J.65, subdivision 5, and by adding subdivisions; 
          116J.67, subdivision 1; 116J.88, subdivisions 2, 4, 5, 
          6, 7, 8, and by adding a subdivision; 116J.89, 
          subdivisions 1, 2, 7, 8, 9, 10, and by adding 
          subdivisions; 116J.90; 116J.91, subdivisions 1, 4, 9, 
          10, 11, 12, 14, 16, 19, and by adding a subdivision; 
          144A.53, subdivision 4; 155A.03, by adding a 
          subdivision; 155A.05; 155A.18; 214.14, subdivision 1; 
          216B.16, by adding a subdivision; 216B.62, 
          subdivisions 2 and 3; 299A.04; 325E.09, subdivision 
          4a; 325F.09; 325F.11; 472.03, subdivision 2; 472.13; 
          proposing new law coded in Minnesota Statutes, 
          chapters 16A, 17, 45, 116J, 216A, and 216B; proposing 
          new law coded as Minnesota Statutes, chapter 116K; 
          repealing Minnesota Statutes 1982, sections 45.01; 
          45.02; 45.021; 45.03; 45.031; 45.032; 45.033; 45.034; 
          45.15; 45.16, subdivisions 4 and 5; 45.17, subdivision 
          6; 116J.02; 116J.41; 116J.42, subdivisions 3, 5, and 
          6; 116J.46; 116J.47; 116J.62; 116J.88, subdivision 3; 
          155A.03, subdivision 10; and 155A.17.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 15.039, is 
amended to read:  
    15.039 [EFFECT OF TRANSFER OF POWERS AMONG AGENCIES.] 
    Subdivision 1.  [APPLICATION OF SECTION.] The provisions of 
this section apply whenever the responsibilities of an agency 
are transferred by law to another agency unless the act 
directing the transfer provides otherwise.  The term 
"responsibilities" includes powers, duties, rights, obligations, 
and other authority imposed by law on an agency.  The term "new 
agency" means the agency to which responsibilities have been 
transferred from another agency.  
    Subd. 2.  [IN GENERAL.] The new agency is a continuation of 
the former agency as to those matters within the jurisdiction of 
the former agency which that are transferred to the new agency.  
Following a transfer the new agency shall carry out the assigned 
responsibilities as though the responsibilities of the former 
agency had not been transferred.  No A transfer constitutes is 
not a new authority for the purpose of succession to all 
responsibilities of the former agency as constituted at the time 
of the transfer. 
    Subd. 3.  [RULES.] All rules adopted pursuant to 
responsibilities which that are transferred to another agency 
remain effective and shall be enforced until amended or repealed 
in accordance with law by the new agency.  Any rulemaking 
authority which that existed to implement the responsibilities 
which that are transferred is transferred to the new agency.  
    Subd. 4.  [COURT ACTIONS.] Any proceeding, court action, 
prosecution, or other business or matter which is pending on the 
effective date of a transfer of responsibilities may be 
conducted and completed by the new agency in the same manner 
under the same terms and conditions, and with the same effect, 
as though it involved or were commenced and conducted or 
completed by the former agency prior to the transfer.  
    Subd. 5.  [CONTRACTS; RECORDS.] The agency whose 
responsibilities are transferred shall give all contracts, 
books, maps, plans, papers, records, and property of every 
description relating to the transferred responsibilities and 
within its jurisdiction or control to the new agency.  The new 
agency shall accept the material presented.  The transfer shall 
be made in accordance with the directions of the new agency.  
    Subd. 6.  [UNEXPENDED FUNDS.] All The unexpended funds 
originally appropriated balance of any appropriation to an 
agency for the purposes of any responsibilities which that are 
transferred to another agency are reappropriated under the same 
conditions as the original appropriation to the new agency 
effective on the date of the transfer of responsibilities.  If 
the responsibilities are transferred to more than one agency, 
the commissioner of finance shall allocate any unexpended 
appropriation to the agencies affected.  The new agencies shall 
pay all valid claims presented against those appropriations.  
    Subd. 7.  [PERSONNEL.] The All classified and unclassified 
positions associated with the responsibilities being transferred 
are abolished in transferred with their incumbents to the new 
agency whose responsibilities are transferred.  The approved 
staff complement for that the agency whose responsibilities are 
being transferred is decreased accordingly.  The employees who 
fill the abolished positions are employees of the agency 
receiving the new responsibilities.  The approved staff 
complement for that the new agency is increased accordingly.  
Personnel changes are effective on the date of transfer of 
responsibilities.  Nothing in this subdivision shall be 
construed as abrogating or modifying any rights now enjoyed by 
affected employees under the managerial or commissioner's plan 
under section 43A.18 or the terms of an agreement between an 
exclusive representative of public employees and the state or 
one of its appointing authorities.  
    Sec. 2.  Minnesota Statutes 1982, 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 
development, economic security, education, employee relations, 
energy and economic development, finance, health, human rights, 
labor and industry, natural resources, personnel, public safety, 
public welfare, revenue, transportation, and veterans affairs; 
the banking, insurance and securities divisions and the consumer 
services section of the department of commerce; the energy, 
housing finance, state planning, 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 referred to in this section as 
"commissioners." 
    Sec. 3.  Minnesota Statutes 1982, section 15.06, 
subdivision 8, is amended to read:  
    Subd. 8.  [NUMBER OF DEPUTY COMMISSIONERS.] Unless 
specifically authorized by statute, other than section 43A.08, 
subdivision 2, no department or agency specified in subdivision 
1 shall have more than one deputy commissioner.  Notwithstanding 
any other law to the contrary, none of the departments or 
agencies shall have more than two deputy commissioners.  
    Sec. 4.  Minnesota Statutes 1982, section 15A.081, 
subdivision 1, is amended to read:  
    Subdivision 1.  The following salaries or salary ranges are 
provided for the below listed employees in the executive branch 
of government: 
                                       Salary or Range
                                  Effective  Effective Effective 
                                    July 1,    July 1,  July 1, 
                                     1979       1980     1981 
 Administration,
  department of
     commissioner                   $44,000    $47,000
 Administrative hearings
 office
    chief hearing
    examiner                         38,000     40,000
 Agriculture,
  department of
     commissioner                    38,000     40,000
Commerce,
  department of 
     commissioner of                                    $47,000
     banks                           34,000     36,500
     commissioner of
     insurance                       34,000     36,500
     commissioner of
     securities and real estate      34,000     36,500
     director of
     consumer services               28,000     30,000
 Community college
  system
     chancellor                      44,000     46,000
 Corrections,
  department of
     commissioner                    42,000     45,000
     ombudsman                       33,000     35,000
 Economic security,
  department of
    commissioner                     43,000     45,000
 Education,
  department of
    commissioner                     43,000     45,000
 Energy, planning and 
   development 
   department of 
     commissioner                                        46,000
 Finance, department of
    commissioner                     48,000     50,000
 Health, department of
    commissioner                     47,000     49,000
 Higher education
  coordinating board
    executive director               40,000     42,000
 Housing finance agency
    executive director               39,000     41,000
 Human rights,
   department of
     commissioner                    31,000     33,000
 Indian affairs board
     executive director              27,000     29,000
 Iron range resources
  and rehabilitation
   board
     commissioner                    30,000     31,000
 Labor and industry,
   department of
     commissioner                    38,000     40,000
     judge of the
      workers'
      compensation
      court of appeals               38,000     40,000
 Mediation services,
   bureau of
     director                        36,000     38,000
 Natural resources,
  department of
     commissioner                    44,000     47,000
 Personnel,
  department of
     commissioner                    44,000     47,000
 Pollution control
  agency
     director                        38,000     40,000
 Public safety,
  department of
     commissioner                    38,000     41,000
 Public service,
  department of
     commissioner,
     public utilities
     commission                      34,000     36,000
     director                        34,000     36,000
 Public welfare,
  department of
     commissioner                    44,000     48,000
 Revenue,
   department of
     commissioner                    44,000     47,000
 State university
  system
     chancellor                      44,000     46,000
 Transportation,
  department of
     commissioner                    44,000     48,000
Transportation,
  regulation board,
     board member                               32,000
 Veterans affairs,
  department of
      commissioner                   31,000     33,000
    Sec. 5.  [16A.80] [OFFICE OF DEBT AND LOAN MANAGEMENT.] 
    Subdivision 1.  [CREATION.] The office of debt and loan 
management is created in the department of finance. 
Administrative employees of the office shall have at least five 
years of experience in commercial lending or a related field. 
These employees shall receive compensation comparable to that 
received by employees with similar backgrounds in the private 
sector, but not greater than the commissioner or deputy 
commissioner of finance.  
    Subd. 2.  [DUTIES.] Notwithstanding any law to the 
contrary, an agency of state government which is authorized (1) 
to make, participate in, or guarantee loans to private sector 
businesses, or (2) to invest directly or indirectly in a private 
sector business shall submit each loan, loan participation, loan 
guarantee, or investment proposal to the office of debt and loan 
management before making a commitment to make the loan, loan 
participation, loan guarantee, or investment.  No loan, loan 
participation, loan guarantee, or investment covered by this 
section shall be made without the approval of the office of loan 
management.  This section does not apply to the housing finance 
agency, the state board of investment, the iron range resources 
and rehabilitation board, the higher education coordinating 
board, the higher education facilities authority, or the energy 
and economic development authority.  
    Subd. 3.  [CRITERIA.] In deciding whether to approve 
proposals submitted to it, the office of debt and loan 
management shall consider the likelihood of the state suffering 
financial loss as a result of the project, the magnitude of 
potential losses, and the intent of the legislation authorizing 
the loans, loan participation, loan guarantees, and investments. 
    Subd. 4.  [DELEGATION.] The office of debt and loan 
management may delegate its approval responsibilities under this 
section to an agency which is authorized to make loans, loan 
participation agreements, loan guarantees, or investments 
involving private businesses if the office determines that the 
agency has the internal capability to make the judgments 
required by subdivision 3.  
     Sec. 6.  [17.103] [TRADE AND EXPORT DEVELOPMENT.] 
     The commissioner of agriculture shall encourage and develop 
commerce with other states and foreign countries and devise ways 
and means of removing trade barriers hampering the free flow of 
commerce between this and other states.  
    Sec. 7.  [17.104] [DEFINITIONS.] 
    Subdivision 1.  [SCOPE.] For the purposes of section 8, the 
following terms have the meanings given them.  
    Subd. 2.  [FINANCE AUTHORITY.] "Finance authority" means 
the export finance authority.  
    Subd. 3.  [PRE-EXPORT.] "Pre-export" means that period of 
time between the formation of a sale and the actual shipment of 
the goods.  
    Sec. 8.  [17.105] [EXPORT FINANCE AUTHORITY.] 
    Subdivision 1.  [CREATION; PURPOSE.] The export finance 
authority is created to aid and facilitate the financing of 
exports from this state.  The finance authority powers shall be 
used exclusively to meet the pre-export credit needs of 
Minnesota exporters.  
    Subd. 2.  [BOARD OF DIRECTORS.] The governor shall appoint 
six members to the authority's board of directors.  The six 
members shall be knowledgeable in international finance, 
exporting, or international law.  The commissioner of 
agriculture shall be chairman of the board.  Membership, terms, 
compensation and removals are governed by section 15.0575. Board 
members shall perform their duties in a nonself-serving manner 
and in compliance with section 10A.07.  
    Subd. 3.  [POWERS.] The finance authority has the power and 
authority to perform the following functions and may:  
    (1) insure, coinsure, and guarantee against commercial 
pre-export credit risks;  
    (2) sue and be sued;  
    (3) enter into agreements and transactions with any person, 
partnership, or corporation, both foreign and domestic, state, 
federal, and foreign governments and governmental agencies;  
    (4) acquire and hold personal and real property pursuant to 
the provisions of insurance and the granting of guarantees;  
    (5) pledge and appropriate collateral;  
    (6) charge premiums, interest, and fees;  
    (7) provide administrative, consultative, and technical 
services to assist in the financing of exports;  
    (8) prepare and receive reports regarding credit, 
insurance, and guarantees with respect to export finance;  
    (9) perform all necessary and appropriate operations, 
administration, processing, and marketing functions related to 
the authority's functions; and 
    (10) adopt rules necessary to carry out responsibilities 
under this section.  
    Subd. 4.  [WORKING CAPITAL ACCOUNT.] An export finance 
authority working capital account is created as a special 
account in the state treasury.  Money in the account is 
appropriated to the finance authority for the purposes of this 
section.  
    Subd. 5.  [ANNUAL REPORT.] The chairman and board of 
directors shall submit to the governor an annual report on the 
activities of the finance authority.  
    Subd. 6.  [LIABILITY LIMITATION.] The finance authority may 
not have at any one time net liabilities greater than four times 
its capital and reserves.  
    Subd. 7.  [INSURANCE AND GUARANTEES.] The finance authority 
may provide insurance and guarantees to the following extent:  
    (1) the finance authority may not provide to any one person 
insurance or guarantees in excess of $250,000;  
    (2) the policy of the finance authority is to provide 
insurance and guarantees for export credits that would otherwise 
not be made and that the chairman and the board deem to 
represent a reasonable risk and have a sufficient likelihood of 
repayment;  
    (3) the finance authority shall contract with, among 
others, the Foreign Credit Insurance Association, the U.S. 
Export-Import Bank, and private insurers to secure reinsurance 
for country and commercial risks for the finance authority's 
insurance program;  
    (4) losses incurred by the finance authority that relate to 
its insurance or guarantee activities shall be solely borne by 
the finance authority to the extent of its capital and reserves. 
    Subd. 8.  [STAFFING.] The commissioner of agriculture shall 
provide staff to work for the finance authority.  
    Sec. 9.  [17.106] [EXPORT INFORMATION OFFICE.] 
    Subdivision 1.  [CREATION; DIRECTOR.] An export information 
office is created in the department of agriculture.  The 
commissioner of agriculture shall appoint a director of the 
export information office in the unclassified service.  
    Subd. 2.  [PURPOSE; DUTIES.] The export information office 
shall:  
    (1) create a worldwide foreign communication network to 
coordinate foreign trade information and activities;  
    (2) compile foreign trade information available from, among 
other places, the United States Department of Commerce and 
private sources, and produce readily consumable marketing 
information;  
    (3) create a program to assess the potential of 
international investment in Minnesota and promote international 
investment which results in the infusion of new capital and the 
creation of new jobs to the benefit of the state;  
    (4) disseminate to Minnesota businesses collected market 
information that relates to potential exporting, and to export 
trading companies, export management companies, and other 
interested persons;  
    (5) prepare a list of firms that provide export support 
services and disseminate the list to potential exporters to 
assist their endeavors;  
    (6) assist public and private universities or colleges to 
develop undergraduate or graduate level education programs to 
train persons in the knowledge of export trading; and 
    (7) coordinate the current international trading activities 
of various state and local agencies and organizations. 
    Sec. 10.  Minnesota Statutes 1982, 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 pursuant according to this subdivision:  
the departments of administration; agriculture; commerce;  
corrections; economic security; education; employee relations; 
energy, planning and economic development; finance; health; 
human rights; labor and industry; natural resources; public 
safety; public service; public welfare; revenue; transportation; 
and veterans affairs; the banking, securities and real estate, 
insurance and consumer services divisions of the department of 
commerce; the housing finance, state planning, and pollution 
control agencies; the state board of investment; and the offices 
of the secretary of state, state auditor, and state treasurer.  
    A position designated by an appointing authority pursuant 
according to this subdivision must meet the following standards 
and criteria:  
    (a) the designation of the position would not be contrary 
to the provisions of other law relating specifically to that 
agency;  
    (b) 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;  
    (c) the duties of the position would involve significant 
discretion and substantial involvement in the development, 
interpretation, and implementation of agency policy;  
    (d) the duties of the position would not require primarily 
personnel, accounting, or other technical expertise where 
continuity in the position would be important;  
    (e) 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, or the employing constitutional 
officer;  
    (f) the position would be at the level of division or 
bureau director or assistant to the agency head; and 
    (g) the commissioner has approved the designation as being 
consistent with the standards and criteria in this subdivision.  
    Sec. 11.  [45.011] [DEFINITIONS.] 
    Subdivision 1.  [SCOPE.] As used in chapters 45 to 83, 
unless the context indicates otherwise, the terms defined in 
this section have the meanings given them.  
     Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
commissioner of commerce.  
     Subd. 3.  [DEPARTMENT.] "Department" means the department 
of commerce.  
    Sec. 12.  [45.012] [COMMISSIONER.] 
    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.  
    Sec. 13.  [45.013] [DEPUTY COMMISSIONERS; ASSISTANT 
COMMISSIONERS; ASSISTANT TO THE COMMISSIONER.] 
    The commissioner of commerce may appoint four deputy 
commissioners, four assistant commissioners, and an assistant to 
the commissioner.  Those positions, as well as that of a 
confidential secretary, are unclassified.  The commissioner may 
appoint other employees necessary to carry out the duties and 
responsibilities entrusted to the commissioner.  
    Sec. 14.  [45.023] [RULES.] 
    The commissioner of commerce may adopt, amend, suspend, or 
repeal rules, including temporary rules, in accordance with 
chapter 14, and as otherwise provided by law, whenever necessary 
or proper in discharging the commissioner's official 
responsibilities.  
    Sec. 15.  [45.024] [HEARINGS.] 
    Subdivision 1.  [GENERAL.] In any case in which the 
commissioner of commerce is required by law to conduct a 
hearing, the hearing must be conducted in accordance with 
chapter 14 and other applicable laws.  
    Subd. 2.  [DELEGATION.] The commissioner of commerce may 
delegate to one or more of the deputy commissioners the exercise 
of the commissioner's statutory powers and duties, including the 
authority to decide and issue final orders in contested cases, 
rulemaking proceedings, and other hearings held under chapter 14.
    Sec. 16.  Minnesota Statutes 1982, section 45.04, is 
amended to read:  
    45.04 [BANK APPLICATIONS.] 
    Subdivision 1.  [FILING; FEE; HEARING.] The incorporators 
of any a bank proposed to be organized under the laws of this 
state shall execute and acknowledge an a written application, in 
writing, in the form prescribed by the department commissioner 
of commerce, and shall file the same it in its the 
commissioner's office, which.  The application shall must be 
signed by two or more of the incorporators, requesting and 
request a certificate authorizing the proposed bank to transact 
business at the place and in the name stated in the 
application.  At the time of filing the application, the 
applicant shall pay a $1,000 filing fee of $1,000, which shall 
be paid into the state treasury and credited to the general fund 
and shall pay to the commissioner of banks the sum of and a $500 
as a investigation fee for investigating the application, which 
shall be turned over by him the commissioner to the state 
treasurer and credited by the treasurer to the general fund of 
the state.  Thereupon the commission commissioner shall fix a 
time, within 60 days after the filing of the application, for a 
hearing at its office at the state capitol, at which hearing it 
shall to decide whether or not the application shall will be 
granted.  A notice of the hearing shall must be published in the 
form prescribed by the commission commissioner in some newspaper 
published in the municipality in which the proposed bank is to 
be located, and if there be no such newspaper, then at the 
county seat of the county in which the bank is proposed to be 
located.  The notice shall must be published once, at the 
expense of the applicants, not less than 30 days prior to the 
date of the hearing.  At the hearing the commission commissioner 
shall consider the application and hear the applicants and such 
witnesses as may that appear in favor of or against the granting 
of the application of the proposed bank. 
    Subd. 2.  [APPROVAL, DISAPPROVAL.] If, upon the hearing, it 
shall appear appears to the commission commissioner that the 
application should be granted, it he shall, not later than 90 
days after the hearing, and after the applicants have otherwise 
complied with the provisions of law applicable to the 
organization of a bank, including the provisions herein 
contained, make and file in the his office of the commissioner 
of banks its a written order, in writing, directing him to issue 
the issuance of a certificate of authorization as provided by 
law.  If the certificate of authorization is not activated 
within a period of 12 months from date of directive to the 
commissioner of banks issuance, the department of commerce 
commissioner may upon written notice in writing to the 
applicants request a new hearing.  If the commission shall 
decide commissioner decides that the application should not be 
granted, it he shall deny the application and make its a written 
order, in writing, to that effect, and file the same it in the 
his office of the commissioner of banks, and forthwith give 
notice thereof by certified mail to one of the incorporators 
named in the application for the proposed bank, addressed to the 
incorporator at the address stated in the application, and.  
Thereupon the commissioner of banks shall refuse to issue the 
certificate of authorization, which is prescribed by law, to the 
proposed bank. 
    Sec. 17.  Minnesota Statutes 1982, section 45.05, is 
amended to read:  
    45.05 [NOTICE AND HEARING, WHEN NOT GIVEN.] 
    The department commissioner of commerce may, at its his 
discretion, dispense with the notice and hearing provided for by 
section 45.04 in cases where if application is made for the 
incorporation of a new bank to take over the assets of one or 
more existing banks, or where if the application contemplates 
the reorganization of a national bank into a state bank in the 
same locality; provided, this act shall not increase the number 
of banks in the community affected.  
    Sec. 18.  Minnesota Statutes 1982, section 45.06, is 
amended to read:  
    45.06 [EXPENSES OF ORGANIZATION AND INCORPORATION OF BANKS 
LIMITED.] 
    The expenses of organization and incorporation to be paid 
by any such banks shall a bank may not exceed the statutory fees 
for filing applications as provided in section 45.04 and the 
necessary legal expenses incurred incident to drawing articles 
of incorporation, publication, and recording thereof, and.  The 
incorporators shall, prior to the issuance of the certificate of 
authorization provided for by law, file with the commissioner of 
banks a verified statement showing the total amount of expense 
incurred in the organization of the bank and to be paid by it 
after commencing operation.  
    Sec. 19.  Minnesota Statutes 1982, section 45.07, is 
amended to read:  
    45.07 [CHARTERS ISSUED, CONDITIONS.] 
    If the applicants are of good moral character and financial 
integrity, if there is a reasonable public demand for this bank 
in this location, if the organization expenses being paid by the 
subscribing shareholders do not exceed the necessary legal 
expenses incurred in drawing incorporation papers and the 
publication and the recording thereof, as required by law, if 
the probable volume of business in this location is sufficient 
to insure and maintain the solvency of the new bank and the 
solvency of the then existing bank or banks in the locality 
without endangering the safety of any bank in the locality as a 
place of deposit of public and private money, and if the 
department commissioner of commerce is satisfied that the 
proposed bank will be properly and safely managed, the 
application shall must be granted; otherwise it shall must be 
denied.  In case of the denial of the application, the 
department commissioner of commerce shall specify the grounds 
for the denial and the supreme court, upon petition of any a 
person aggrieved, may review by certiorari any such order or the 
determination of the department of commerce.  
    Sec. 20.  Minnesota Statutes 1982, section 45.071, 
subdivision 2, is amended to read:  
    Subd. 2.  [APPLICATION FOR INSURANCE; UNINSURED BANKS.] 
Notwithstanding the provisions of subdivision 1, a bank which 
does not have insurance of its deposits or a commitment for 
insurance of its deposits by the federal deposit insurance 
corporation, an agency of this state, or a federal agency 
established for the purpose of insuring deposits in banks or 
collateral security deposited under section 48.74 upon the 
effective date of Laws 1982, chapter 473, sections 1 to 29 on 
March 19, 1982, must apply for insurance of deposits not later 
than July 1, 1983.  A bank subject to this subdivision which has 
been denied a commitment for insurance of its deposits shall 
either dissolve, merge, or consolidate with another bank which 
is insured or apply in writing within 30 days of denial to the 
commissioner of banks commerce for additional time to obtain an 
insurance commitment.  The commissioner of banks shall grant 
additional time to obtain the insurance commitment upon 
satisfactory evidence that the bank has made or is making a 
substantial effort to achieve the conditions precedent to 
issuance of the commitment.  Additional time shall not extend 
later than July 1, 1984.  
    Sec. 21.  Minnesota Statutes 1982, section 45.08, 
subdivision 3, is amended to read: 
    Subd. 3.  [DEPARTMENT.] The word "Department" means the 
department of commerce of the state of Minnesota.  
    Sec. 22.  Minnesota Statutes 1982, section 45.08, is 
amended by adding a subdivision to read:  
    Subd. 4.  [COMMISSIONER.] "Commissioner" means the 
commissioner of commerce.  
    Sec. 23.  Minnesota Statutes 1982, section 45.16, 
subdivision 1, is amended to read: 
    45.16 [CONSUMER SERVICES SECTION, RESPONSIBILITIES AND 
DUTIES AFFAIRS.] 
    Subdivision 1.  [GENERALLY.] The section of consumer 
services shall have attorney general has the responsibilities 
and duties prescribed by this section and section 45.17 and such 
other authority as may be conferred by the commissioner of 
commerce. 
    Sec. 24.  Minnesota Statutes 1982, section 45.16, 
subdivision 2, is amended to read: 
    Subd. 2.  [DUTIES.] The attorney general shall:  
    (a) Act as the representative of the governor in all 
matters affecting consumer affairs;  
    (b) enforce the provisions of law relating to consumer 
fraud and unlawful practices in connection therewith as set 
forth in sections 325F.68 and 325F.69, and the attorney general 
shall act for the division in pursuing the remedies set forth in 
section 325F.70; 
    (c) (b) make recommendations to the chairman of the 
commerce commission for transmission to the governor and the 
legislature for such statutory needs as may that exist in 
adequately protecting the consumer;  
    (d) Receive registration statements and annual reports of 
persons soliciting charitable funds in accordance with the 
requirements of sections 309.50 to 309.61, in lieu of the duties 
of the secretary of state in connection therewith.  The duties 
of the secretary of state under such sections are hereby 
abolished and the activity assigned to the department of 
commerce, division of licensing and consumer services as 
provided herein; adopt, pursuant to the administrative 
procedures act, rules and regulations to implement the 
provisions of this section. 
    Sec. 25.  Minnesota Statutes 1982, section 45.17, 
subdivision 1, is amended to read:  
    Subdivision 1.  [DEFINITIONS.] For the purposes of this 
section, the following terms defined in this subdivision shall 
apply have the meanings given them: 
    (1) "Public utility" means a publicly or privately owned 
entity engaged in supplying utility services to residential 
utility consumers in this state or to another public utility for 
ultimate distribution to residential utility consumers in this 
state and whose rates or charges are subject to approval by the 
public utilities commission or any an agency of the federal 
government provided that.  No municipal or cooperative utility 
shall be considered a "public utility" for the purposes of this 
clause. 
    (2) "Consumer services section" means the consumer services 
section of the department of commerce.  
    (3) "Residential utility consumer" or "consumer" means a 
person who uses utility services at his residence in this state 
and who is billed by or pays a public utility for these services.
    (4) (3) "Utility services" means electricity, natural gas, 
or telephone services distributed to residential utility 
consumers by a public utility. 
    Sec. 26.  Minnesota Statutes 1982, section 45.17, 
subdivision 2, is amended to read:  
    Subd. 2.  [DUTIES.] The consumer services section shall be 
attorney general is responsible for representing and furthering 
the interests of residential utility consumers through 
participation in matters before the public utilities commission 
involving utility rates and adequacy of utility services to 
residential utility consumers.  The consumer services section 
attorney general shall expend a reasonable portion of its his 
efforts among all three kinds of utility services and shall 
identify and promote the needs of each class of residential 
consumers with respect to each of the utility services. 
    Sec. 27.  Minnesota Statutes 1982, section 45.17, 
subdivision 3, is amended to read:  
    Subd. 3.  [RIGHT OF INTERVENTION.] Subject to the 
limitations of subdivision 2, the consumer services section 
attorney general may intervene as of right or participate as an 
interested party in matters pending before the public utilities 
commission which affect the distribution by a public utility of 
utility services to residential utility consumers.  The right of 
the consumer services section attorney general to participate or 
intervene shall in no way does not affect the obligation of the 
public utilities commission to protect the public interest. 
    Sec. 28.  Minnesota Statutes 1982, section 45.17, 
subdivision 4, is amended to read:  
    Subd. 4.  [NOTICE; PROCEDURES.] The public utilities 
commission shall give reasonable notice to the consumer services 
section attorney general of any matter scheduled to come before 
the commission affecting a public utility's rates or adequacy of 
services to residential utility consumers.  Rules of the 
commission governing procedures before the commission shall 
apply to the consumer services section attorney general and its 
his employees or representatives.  The consumer services section 
shall have attorney general has the same rights and privileges 
accorded other intervenors or participants in matters pending 
before the commission. 
    Sec. 29.  Minnesota Statutes 1982, section 45.17, 
subdivision 5, is amended to read:  
    Subd. 5.  [APPEALS.] The consumer services section attorney 
general shall be deemed to have an interest sufficient to 
maintain, intervene as of right in, or otherwise participate in 
any civil action in the trial courts or supreme court of this 
state for the review or enforcement of any public utilities 
commission action which affects a public utility's rates or 
adequacy of service to residential utility consumers. 
    Sec. 30.  Minnesota Statutes 1982, section 45.17, 
subdivision 7, is amended to read:  
    Subd. 7.  [INTERVENTION IN FEDERAL PROCEEDINGS.] The 
consumer services section attorney general shall represent and 
further the interests of residential utility consumers through 
participation as an intervenor or interested party in federal 
proceedings relating to the regulation of:  (a) wholesale rates 
for energy delivered through interstate facilities; or (b) fuel 
used in generation of electricity or the manufacture of gas.  
The consumer services section attorney general may maintain, 
intervene in, or otherwise participate in any civil actions 
relating to the federal proceedings.  In performing its duties 
pursuant to this subdivision, the section shall follow the 
guidelines established pursuant to subdivision 6, clause (1).  
    Sec. 31.  Minnesota Statutes 1982, section 45.17, is 
amended by adding a subdivision to read:  
    Subd. 8.  [ADDITIONAL POWERS.] The power granted by this 
section is in addition to powers otherwise provided by law to 
the attorney general.  
     Sec. 32.  Minnesota Statutes 1982, section 46.22, is 
amended to read: 
    46.22 [RURAL CREDIT RECORDS.] 
    The commissioner of banks natural resources shall have 
charge of the records of the former department of rural credit.  
He shall provide the public with appropriate access to and 
copies of the records.  
    Sec. 33.  Minnesota Statutes 1982, section 46.221, is 
amended to read: 
    46.221 [ISSUANCE OF QUITCLAIM DEEDS.] 
    The commissioner of banks natural resources is empowered to 
issue quitclaim deeds in connection with loans made by the now 
defunct department of rural credit, a former state agency.  The 
commissioner shall issue the quitclaim deeds upon reasonable 
evidence the state of Minnesota no longer has a valid claim of 
title to the property involved.  No fee shall be charged for the 
issuance of a quitclaim deed.  
    Sec. 34.  Minnesota Statutes 1982, section 116C.24, is 
amended by adding a subdivision to read: 
    Subd. 2a.  "Commissioner" means the commissioner of energy 
and economic development.  
    Sec. 35.  Minnesota Statutes 1982, section 116C.24, 
subdivision 3, is amended to read: 
    Subd. 3.  "Coordination unit" means the environmental 
coordination unit bureau of business licenses established 
pursuant to section 116C.25 sections 116J.73 to 116J.76. 
    Sec. 36.  Minnesota Statutes 1982, section 116C.25, is 
amended to read: 
    116C.25 [ENVIRONMENTAL PERMITS COORDINATION UNIT.] 
    The board shall establish an environmental permits 
commissioner of energy and economic development shall direct the 
bureau of business licenses to act as the coordination unit to 
implement and administer the provisions of sections 116C.22 to 
116C.34 and.  The chairman of the board commissioner shall 
employ necessary staff to work for the coordination unit on a 
continuous basis. 
    Sec. 37.  Minnesota Statutes 1982, section 116C.32, is 
amended to read: 
    116C.32 [RULES; COOPERATION.] 
    The board commissioner shall as soon as practicable adopt 
rules, not inconsistent with rules of procedure established by 
the office of administrative hearings, to implement the 
provisions of sections 116C.22 to 116C.34, including master 
application procedures, notice procedures, and public hearing 
procedures and costs.  
    Sec. 38.  Minnesota Statutes 1982, section 116C.33, 
subdivision 2, is amended to read: 
    Subd. 2.  The board commissioner, to the limited extent 
necessary to comply with procedural requirements of federal 
statutes relating to permit systems operated by the state, may 
modify the notice, timing, hearing, and related procedural 
matters provided in sections 116C.22 to 116C.34. 
    Sec. 39.  Minnesota Statutes 1982, section 116C.34, is 
amended to read: 
    116C.34 [PERMIT INFORMATION CENTERS BUREAU OF BUSINESS 
LICENSES.] 
    Subdivision 1.  The board shall establish a permit 
information center in its office at St. Paul, which center 
bureau of business licenses shall establish and maintain an 
information and referral system to assist the public in the 
understanding and compliance with the requirements of state and 
local governmental regulations concerning the use of natural 
resources and protection of the environment.  The system shall 
provide a telephone information service and disseminate printed 
materials.  The board bureau shall provide assistance to 
regional development commissions desiring to create a permit 
information center. 
    Subd. 2.  The permit information center in St. Paul bureau 
shall: 
    (a) Identify all existing state licenses, permit 
certifications, approvals, compliance schedules, or other 
programs which pertain to the use of natural resources and to 
protection of the environment. 
    (b) Standardize permit titles and assign designation codes 
to all such permits which would thereafter be imprinted on all 
permit forms. 
    (c) Develop permit profiles including applicable rules and 
regulations, copies of all appropriate permit forms, statutory 
mandate and legislative history, names of individuals 
administering the program, permit processing procedures, 
documentation of the magnitude of the program and of geographic 
and seasonal distribution of the workload, and estimated 
application processing time. 
    (d) Identify the public information procedures currently 
associated with each permit program. 
    (e) Identify the data monitored or acquired through each 
permit and ascertain current users of that data. 
    (f) Recommend revisions to the list of natural resource 
management and development permits contained in Minnesota 
Statutes 1974, section 116D.04, subdivision 5. 
    (g) Recommend legislative or administrative modifications 
of existing permit programs to increase their efficiency and 
utility. 
    Subd. 3.  The auditor of each county shall post in a 
conspicuous place in his office the telephone numbers of the 
permit information centers established in St. Paul and bureau of 
business licenses and the permit information center in the 
office of the applicable regional development commission; copies 
of any master applications or permit applications forwarded to 
the auditor pursuant to section 116C.27, subdivision 1; and 
copies of any information published by any permit the bureau or 
an information center pursuant to subdivision 1.  
    Sec. 40.  Minnesota Statutes 1982, section 116J.01, 
subdivision 1, is amended to read: 
    Subdivision 1.  [APPOINTMENT.] The department of energy, 
planning and economic development shall be supervised and 
controlled by the commissioner of energy, planning and economic 
development, who shall be appointed by the governor and serve 
under the provisions of section 15.06.  
    Sec. 41.  Minnesota Statutes 1982, section 116J.01, 
subdivision 2, is amended to read:  
    Subd. 2.  [UNCLASSIFIED POSITIONS CONFIDENTIAL SECRETARY.] 
The commissioner may appoint a deputy commissioner and a 
personal confidential secretary in the unclassified service. 
    Sec. 42.  Minnesota Statutes 1982, section 116J.01, 
subdivision 3, is amended to read: 
    Subd. 3.  [DEPARTMENTAL ORGANIZATION.] The commissioner 
shall organize the department as provided in section 15.06.  The 
department shall be organized into three divisions, which shall 
be designated the energy division, the economic development 
division, and the financial management division; and the office 
of tourism.  Each division and office is responsible for 
administering the duties and functions assigned to it by law. 
When the duties of the divisions or office are not allocated by 
law, the commissioner may establish and revise the assignments 
of each division and office.  Each division shall be under the 
direction of a deputy commissioner in the unclassified service. 
The office of tourism is under the direction of a director of 
tourism in the unclassified service.  The governor shall appoint 
the director of tourism.  
    Sec. 43.  Minnesota Statutes 1982, section 116J.03, is 
amended to read: 
    116J.03 [DEFINITIONS.] 
    Subdivision 1.  [SCOPE.] As used in sections 116J.05 to 
116J.35; 116J.41 to 116J.54; 116J.58 to 116J.91; 299A.03; and 
299A.04 chapter 116J, the terms defined in this section have the 
meaning given them.  
    Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
commissioner of energy, planning and economic development.  
    Subd. 3.  [DEPARTMENT.] "Department" means the department 
of energy, planning and economic development.  
    Sec. 44.  Minnesota Statutes 1982, section 116J.09, is 
amended to read: 
    116J.09 [DUTIES.] 
    The commissioner shall: 
    (a) manage the department as the central repository within 
the state government for the collection of data on energy; 
    (b) prepare and adopt an emergency allocation plan 
specifying actions to be taken in the event of an impending 
serious shortage of energy, or a threat to public health, 
safety, or welfare; 
    (c) undertake a continuing assessment of trends in the 
consumption of all forms of energy and analyze the social, 
economic, and environmental consequences of these trends; 
    (d) carry out energy conservation measures as specified by 
the legislature and recommend to the governor and the 
legislature additional energy policies and conservation measures 
as required to meet the objectives of sections 116J.05 to 
116J.30; 
    (e) collect and analyze data relating to present and future 
demands and resources for all sources of energy, and specify 
energy needs for the state and various service areas as a basis 
for planning large energy facilities; 
    (f) require certificate of need for construction of large 
energy facilities;  
    (g) evaluate policies governing the establishment of rates 
and prices for energy as related to energy conservation, and 
other goals and policies of sections 116J.05 to 116J.30, and 
make recommendations for changes in energy pricing policies and 
rate schedules; 
    (h) (g) study the impact and relationship of the state 
energy policies to international, national, and regional energy 
policies; 
    (i) (h) design and implement a state program for the 
conservation of energy; this program shall include but not be 
limited to, general commercial, industrial, and residential, and 
transportation areas; such program shall also provide for the 
evaluation of energy systems as they relate to lighting, 
heating, refrigeration, air conditioning, building design and 
operation, and appliance manufacturing and operation;  
    (j) (i) inform and educate the public about the sources and 
uses of energy and the ways in which persons can conserve energy;
    (k) (j) dispense funds made available for the purpose of 
research studies and projects of professional and civic 
orientation, which are related to either energy conservation, 
resource recovery, or the development of alternative energy 
technologies which conserve nonrenewable energy resources while 
creating minimum environmental impact; 
    (l) (k) charge other governmental departments and agencies 
involved in energy related activities with specific information 
gathering goals and require that those goals be met;  
    (l) report to the legislature by February 1 of each year 
both the processes and results of efforts to communicate the 
statutory requirements concerning energy efficiency standards 
under section 116J.27 and the extent of compliance with the 
requirements. 
    Sec. 45.  Minnesota Statutes 1982, section 116J.10, is 
amended to read: 
    116J.10 [POWERS.] 
    The commissioner may: 
    (a) Adopt rules pursuant to chapter 14 as necessary to 
carry out the purposes of sections 116J.05 to 116J.30 and, when 
necessary for the purposes of section 116J.15, adopt temporary 
rules pursuant to sections 14.29 to 14.36; 
    (b) Make all contracts pursuant to sections 116J.05 to 
116J.30 and do all things necessary to cooperate with the United 
States government, and to qualify for, accept and disburse any 
grant intended for the administration of sections 116J.05 to 
116J.30.  Notwithstanding any other law the commissioner is 
designated the state agent to apply for, receive and accept 
federal or other funds made available to the state for the 
purposes of sections 116J.05 to 116J.30. 
    (c) Contract for professional services if such work or 
services cannot be satisfactorily performed by employees of the 
department or by any other state agency; 
    (d) Enter into interstate compacts to jointly carry out 
such research and planning with other states or the federal 
government where appropriate; 
    (e) Distribute informational material at no cost to the 
public upon reasonable request;  
    (f) Provide on-site technical assistance to units of local 
government in order to enhance local capabilities for dealing 
with energy problems;  
    (g) Administer for the state, energy programs pursuant to 
federal law, regulations or guidelines, except for the crisis 
fuel assistance and low income weatherization programs 
administered by the department of economic security, and 
coordinate the programs and activities with other state 
agencies, units of local government and educational institutions;
    (h) Design and administer a statewide program for the 
energy and economic development authority and actively involve 
major organizations and community leaders in its work and shall 
solicit funds from all sources;  
    (i) Develop a state energy investment plan with yearly 
energy conservation and alternative energy development goals, 
investment targets, and marketing strategies;  
    (j) Perform market analysis studies relating to 
conservation, alternative and renewable energy resources, and 
energy recovery;  
    (k) Assist with the preparation of proposals for innovative 
conservation, renewable, alternative, or energy recovery 
projects;  
    (l) Manage and disburse funds made available for the 
purpose of research studies or demonstration projects related to 
energy conservation or other activities deemed appropriate by 
the commissioner; and 
     (m) Intervene in certificate of need proceedings before the 
public utilities commission. 
    Sec. 46.  Minnesota Statutes 1982, section 116J.28, is 
amended to read: 
    116J.28 [CERTIFICATE OF NEED.] 
    Subdivision 1.  The commissioner commission shall, pursuant 
to chapter 14 and sections 116J.05 to 116J.30, adopt assessment 
of need criteria to be used in the determination of need for 
large energy facilities pursuant to this section. 
    Subd. 2.  No large energy facility shall be sited or 
constructed in Minnesota without the issuance of a certificate 
of need by the commissioner commission pursuant to sections 
116J.05 to 116J.30 or other federal or state legislation on 
long-term energy demand; 
    (3) The relationship of the proposed facility to overall 
state energy needs, as described in the most recent state energy 
policy and conservation report prepared pursuant to section 
116J.18; 
    (4) Promotional activities which may have given rise to the 
demand for this facility; 
    (5) Socially beneficial uses of the output of this 
facility, including its uses to protect or enhance environmental 
quality; 
    (6) The effects of the facility in inducing future 
development; 
    (7) Possible alternatives for satisfying the energy demand 
including but not limited to potential for increased efficiency 
of existing energy generation facilities; 
    (8) The policies, rules, and regulations of other state and 
federal agencies and local governments; and 
    (9) Any feasible combination of energy conservation 
improvements, required by the public utilities commission 
pursuant to section 216B.241, that can (a) replace part or all 
of the energy to be provided by the proposed facility, and (b) 
compete with it economically. 
    Subd. 4.  Any person proposing to construct a large energy 
facility shall apply for a certificate of need prior to 
construction of the facility.  The application shall be on forms 
and in a manner established by the commissioner commission.  In 
reviewing each application the commissioner commission shall 
hold at least one public hearing pursuant to chapter 14.  The 
public hearing shall be held at a location and hour reasonably 
calculated to be convenient for the public.  An objective of the 
public hearing shall be to obtain public opinion on the 
necessity of granting a certificate of need.  The commissioner 
commission shall designate a department commission employee 
whose duty shall be to facilitate citizen participation in the 
hearing process. 
    Subd. 5.  Within six months of the submission of an 
application, the commissioner commission shall approve or deny a 
certificate of need for the facility.  Approval or denial of the 
certificate shall be accompanied by a statement of the reasons 
for the decision.  Issuance of the certificate may be made 
contingent upon modifications required by the commissioner 
commission. 
    Subd. 6.  Any application for a certificate of need shall 
be accompanied by the fee required pursuant to this 
subdivision.  The maximum fee shall be $50,000, except for an 
application for an electric power generating plant as defined in 
section 116J.06, subdivision 3, clause (a), or a high voltage 
transmission line as defined in section 116J.06, subdivision 3, 
clause (b), for which the maximum fee shall be $100,000.  The 
commissioner commission may require an additional fee to recover 
the costs of any rehearing.  The fee for a rehearing shall not 
be greater than the actual cost of the rehearing or the maximum 
fee specified above, whichever is less.  The commissioner 
commission shall establish by rule pursuant to chapter 14 and 
sections 116J.05 to 116J.30, a schedule of fees based on the 
output or capacity of the facility and the difficulty of 
assessment of need.  Money collected in this manner shall be 
credited to the general fund of the state treasury. 
    Subd. 7.  Other state agencies authorized to issue permits 
for siting, construction or operation of large energy 
facilities, and those state agencies authorized to participate 
in matters before the Minnesota public utilities commission 
involving utility rates and adequacy of utility services, shall 
present their position regarding need and participate in the 
public hearing process prior to the issuance or denial of a 
certificate of need.  Issuance or denial of certificates of need 
shall be the sole and exclusive prerogative of the commissioner 
commission and said these determinations and certificates shall 
be binding upon other state departments and agencies, regional, 
county, and local governments and special purpose government 
districts except as provided in sections 116C.01 to 116C.08 and 
116D.04, subdivision 9. 
    Subd. 8.  This section shall does not apply to plants or 
facilities for the production of ethanol or fuel alcohol nor in 
any case where the commissioner commission shall determine after 
being advised by the attorney general that its application has 
been preempted by federal law.  * 
    Sec. 47.  Minnesota Statutes 1982, section 116J.31, is 
amended to read: 
    116J.31 [ENERGY AUDITS.] 
    The commissioner, in cooperation with the director of 
consumer services, shall develop the state plan for the program 
of energy audits of residential and commercial buildings 
required by 42 United States Code, Section title 42, section 
8211, et seq.  The consumer services division and the attorney 
general are authorized to may release information on consumer 
complaints about the operation of the program to the 
commissioner. 
    Sec. 48.  Minnesota Statutes 1982, section 116J.42, 
subdivision 1, is amended to read: 
    Subdivision 1.  [POWERS AND DUTIES.] The commissioner 
director shall: 
    (1) Prepare comprehensive, long range recommendations for 
the orderly and coordinated growth of the state including 
detailed recommendations for long range plans of operating state 
departments and agencies on major public investment proposals 
and programs in the state. 
    (2) The state, in the development of long range planning, 
shall take into consideration its relationship to local units of 
government and the planning to be accomplished on such levels.  
Develop and maintain a statewide long-range policy planning 
process involving local units of government, regional 
development commissions, the metropolitan council, and state 
agencies.  
    (3) Develop and analyze information and forecasts relating 
to the state's population, economy, natural resources and human 
services, including but not limited to:  (a) collection and 
analysis of information necessary to enable him to report 
annually to the governor and the legislature on the status of 
the state's economy and on forecasts of medium and long-term 
economic prospects for the state; (b) analysis and reporting on 
the comparability of economic data, assumptions and analyses 
used by other planning entities, state agencies, and levels of 
government as he deems appropriate; (c) assessment of the 
implications of demographic, economic, and programmatic trends 
on state and local policies and institutions for providing 
health, education, and other human services; and (d) assessment 
of the availability and quality of data for long-range planning 
and policy development.  
    (4) Assist the governor in developing and evaluating 
alternative long-range policies and strategies.  
    (5) Act in coordination with the commissioner of finance 
and affected state agencies in the planning and financing of 
major public programs, including but not limited to capital 
improvements.  
    (6) Initiate studies of major policy issues having 
long-range implications.  
    (7) Provide planning assistance to local, regional, and 
state agencies, and coordinate these levels of planning with the 
state long-range policy planning process.  
    Sec. 49.  Minnesota Statutes 1982, section 116J.42, 
subdivision 2, is amended to read: 
    Subd. 2.  The commissioner director shall: 
    (1) Review current programming and future planning plans, 
studies and proposed studies, of all state departments and 
agencies. 
    (2) Report regularly and on or before November 15 of each 
even numbered year to the legislature, reviewing in each report 
the state planning program, and the progress and development 
thereof.  Thereafter, as soon as practicable, he shall make 
recommendations for desirable legislation and necessary 
appropriations. 
    (3) To the extent practicable coordinate with state budgets 
the items therein relating to and reflecting statewide planning 
as authorized by the legislature and as recommended for the 
consideration of the legislature.  
    (4) Require each state department and agency having 
planning programs to regularly file copies thereof with him for 
review.  
    (5) Make available to the legislature or any authorized 
committee or commission thereof information concerning statewide 
development plans and basic research from which the plans have 
been developed. 
    (6) Act as the coordinating agency for the planning 
activities of all state departments and agencies and local 
levels of government.  
    (7) Review all plans filed with the federal government by 
state departments and agencies pursuant to section 16A.30, or 
any other law as a part of his duties prescribed by this 
section.  The commissioner of finance shall furnish the 
commissioner the information required by this clause.  
    (8) Encourage the development of planning programs by state 
departments and agencies and local levels of government.  
    (9) Act as the coordinating agency for submission of the 
environmental impact statements required by the National 
Environmental Policy Act and the state's comments thereon to the 
appropriate federal agencies.  
    (4) Develop and maintain, in consultation with local 
government elected officials, a process and procedures for the 
review of federal grant applications, and the coordination of 
planning activities including state and local responsibilities 
as existed on January 1, 1983, in federal Office of Management 
and Budget Circular A-95, Parts I, II, III, and IV; and the 
federal Executive Order 12372.  
    (5) Assist the governor and the commissioner of finance in 
the review of biennial budget proposals and in the analysis of 
major public investments.  
    (6) Promote awareness by citizens and public officials of 
major long-range trends and policy issues.  
    Sec. 50.  Minnesota Statutes 1982, section 116J.42, 
subdivision 4, is amended to read: 
    Subd. 4.  The commissioner director shall:  
    (1) undertake studies to obtain information and data on 
urban and rural needs, assistance programs, and activities.  The 
commissioner shall provide technical assistance and advice in 
the solution of such problems.  The duties of the commissioner 
shall include, but are not limited to, the assembly, the 
correlation, and dissemination of physical, social, and economic 
development data to inform local governmental units and 
interested persons and organizations of the availability and 
status of federal, state, and local programs and other resources 
for the solution of urban and rural problems; 
    (2) Make available to the governor and the legislature 
pertinent information relating to federal grants in aid to local 
governmental units and an analysis thereof;  
    (3) Inform local governmental units about federal programs 
of social or economic aid or assistance for which they are 
eligible, together with the criteria, standards, and conditions 
upon which the aid is based conduct research and make 
recommendations to the governor and the legislature concerning 
relationships among federal, state, and local governments; and 
review and report on changes in federal policies and budgets as 
they affect the state and state and local government programs;  
    (3) provide regional development commissions, the 
metropolitan council, and units of local government with 
information, technical assistance, training, and advice in 
utilizing federal and state programs;  
    (4) receive and administer the small cities community 
development block grant program authorized by the Congress under 
the Housing and Development Act of 1974, as amended; and 
    (5) receive and administer other state and federal grants 
and grant programs for planning, community affairs, community 
development purposes, and other state and federal programs 
assigned to the agency by law or by the governor in accordance 
with section 4.07.  
    Sec. 51.  Minnesota Statutes 1982, section 116J.42, 
subdivision 7, is amended to read: 
    Subd. 7.  The commissioner director shall: 
    (1) Appoint the state demographer, who shall be compensated 
in accordance with section 43A.18, subdivision 3.  The state 
demographer shall be professionally competent in the field of 
demography and shall possess demonstrated ability, based upon 
past performance;  
    (1) Shall (2) Continuously gather and develop demographic 
data within the state; 
    (2) Shall (3) Design and test methods of research and data 
collection; 
    (3) Shall have the power to call upon any agency of the 
state or political subdivision for data as may be available, and 
the agencies and political subdivisions shall cooperate to the 
fullest extent possible;  
    (4) Shall Periodically prepare population projections for 
designated regions and for the state and may periodically 
prepare projections for each county, or other political or 
geographic division as necessary to carry out the purposes of 
this section; 
    (5) Shall Review, comment, and prepare analysis of 
population estimates and projections made by state agencies, 
political subdivisions, other states, federal agencies or 
nongovernmental persons, institutions or commissions; 
     (6) Shall Serve as the state liaison with the federal 
bureau of census, shall and coordinate his activities with 
federal demographic activities to the fullest extent possible, 
and shall aid the legislature in preparing a census data plan 
and form for each decennial census; 
    (7) Shall Compile an annual study of population estimates 
on the basis of county, regional or other political or 
geographic divisions as necessary to carry out the purposes of 
this subdivision and section 116J.43; 
    (8) Shall, On or before January 1 of each year, issue a 
report to the legislature containing an analysis of the 
demographic implications of the annual population study and 
population projections; 
    (9) Shall Cause to be prepared maps of all counties in the 
state, all municipalities with a population of 10,000 or more, 
and any other municipalities as deemed necessary for census 
purposes, according to scale and detail recommended by the 
federal bureau of the census, with the maps of cities showing 
boundaries of precincts; and 
    (10) Shall annually Prepare a population estimate for each 
governmental subdivision for which the metropolitan council does 
not prepare an annual population estimate, and shall communicate 
the estimate to the governing body of each governmental 
subdivision by May 1 of each year.  
    Sec. 52.  Minnesota Statutes 1982, section 116J.42, 
subdivision 8, is amended to read: 
    Subd. 8.  (1) The land management information center is 
established to foster integration of environmental information 
and provide services in computer mapping and graphics, 
environmental analysis, and small systems development.  
    (2) The director shall periodically compile studies of land 
use and natural resources on the basis of county, regional, and 
other political subdivisions.  
    (3) The commissioner director may charge a fee fees to 
each user of the Minnesota land management clients for 
information system products and services. 
    Sec. 53.  Minnesota Statutes 1982, section 116J.42, 
subdivision 9, is amended to read: 
    Subd. 9.  [JUVENILE JUSTICE.] The governor shall designate 
the department of energy, state planning, and development agency 
as the sole agency responsible for supervising the preparation 
and administration of the state plan for juvenile justice 
required by the Juvenile Justice and Delinquency Prevention Act 
of 1974, as amended.  
    The governor shall designate the Juvenile Justice Advisory 
Committee as the supervisory board for the department of energy, 
state planning and development agency with respect to 
preparation and administration of the state plan and award of 
grants.  
    The governor shall appoint members to the Juvenile Justice 
Advisory Committee in accordance with the membership 
requirements of the Juvenile Justice and Delinquency Prevention 
Act of 1974, as amended.  
    Sec. 54.  Minnesota Statutes 1982, section 116J.58, 
subdivision 1, is amended to read:  
    Subdivision 1.  [ENUMERATION.] The commissioner shall: 
    (1) investigate, study, and undertake ways and means of 
promoting and encouraging the prosperous development and 
protection of the legitimate interest and welfare of Minnesota 
business, industry, and commerce, within and outside the state; 
    (2) locate markets for manufacturers and processors and aid 
merchants in locating and contacting markets; 
    (3) investigate and study conditions affecting Minnesota 
business, industry, and commerce and collect and disseminate 
information, and engage in technical studies, scientific 
investigations, and statistical research and educational 
activities necessary or useful for the proper execution of the 
powers and duties of the commissioner in promoting and 
developing Minnesota business, industry, and commerce, both 
within and outside the state; 
    (4) plan and develop an effective business information 
service both for the direct assistance of business and industry 
of the state and for the encouragement of business and industry 
outside the state to use economic facilities within the state; 
    (5) compile, collect, and develop periodically, or 
otherwise make available, information relating to current 
business conditions; 
    (6) conduct or encourage research designed to further new 
and more extensive uses of the natural and other resources of 
the state and designed to develop new products and industrial 
processes; 
    (7) study trends and developments in the industries of the 
state and analyze the reasons underlying the trends; study costs 
and other factors affecting successful operation of businesses 
within the state; and make recommendations regarding 
circumstances promoting or hampering business and industrial 
development; 
    (8) serve as a clearing house for business and industrial 
problems of the state; and advise small business enterprises 
regarding improved methods of accounting and bookkeeping; 
    (9) Encourage and develop commerce with other states and 
foreign countries and devise ways and means of removing trade 
barriers hampering the free flow of commerce between this and 
other states;  
    (10) cooperate with interstate commissions engaged in 
formulating and promoting the adoption of interstate compacts 
and agreements helpful to business, industry, and commerce; 
    (11) (10) cooperate with other state departments, and with 
boards, commissions, and other state agencies, in the 
preparation and coordination of plans and policies for the 
development of the state and for the use and conservation of its 
resources insofar as the use, conservation, and development may 
be appropriately directed or influenced by a state agency; 
    (12) (11) assemble and coordinate information relative to 
the status, scope, cost, and employment possibilities and the 
availability of materials, equipment, and labor in connection 
with public works projects, state, county, and municipal; 
recommend limitations on the public works; gather current 
progress information with reference to public and private works 
projects of the state and its political subdivisions with 
reference to conditions of employment; inquire into and report 
to the governor, when requested by him, with respect to any 
program of public state improvements and the financing thereof; 
and request and obtain information from other state departments 
or agencies as may be needed properly to report thereon; 
    (13) (12) study changes in population and current trends 
and prepare plans and suggest policies for the development and 
conservation of the resources of the state; 
    (14) (13) confer and cooperate with the executive, 
legislative, or planning authorities of the United States and 
neighboring states and of the counties and municipalities of 
such neighboring states, for the purpose of bringing about a 
coordination between the development of such neighboring states, 
counties, and municipalities and the development of this state; 
    (15) (14) generally, gather, compile, and make available 
statistical information relating to business, trade, commerce, 
industry, transportation, communication, natural resources, and 
other like subjects in this state, with authority to call upon 
other departments of the state for statistical data and results 
obtained by them and to arrange and compile that statistical 
information in a manner that seems wise. 
    Sec. 55.  Minnesota Statutes 1982, section 116J.60, is 
amended to read:  
    116J.60 [PROMOTIONAL EXPENSES.] 
    In the promotion of tourism and economic development of the 
state of Minnesota, the state commissioner of energy, planning 
and economic development may expend from moneys money 
appropriated by the legislature for such these purposes in the 
same manner as private persons, firms, corporations, and 
associations make expenditures for such these purposes.  For 
purposes of allotment, encumbrance and disbursement all 
transactions for promotional purposes shall be coded under the 
commissioner of finance's object of expenditure code for 
advertising.  The encumbrance shall be made on a miscellaneous 
encumbrance requisition.  Any such expenditures An expenditure 
for food, lodging, or travel shall is not be governed by the 
travel regulations rules of the commissioner of administration 
employee relations.  No money shall be expended for the 
appearance in radio or television broadcasts by an elected 
public official. 
    Sec. 56.  Minnesota Statutes 1982, section 116J.61, is 
amended to read: 
    116J.61 [ADDITIONAL POWERS AND DUTIES.] 
    The commissioner shall: 
    (1) Have control of the work of carrying on a continuous 
program of education for businessmen; 
    (2) Publish, disseminate, and distribute information and 
statistics;  
    (3) Promote and encourage the expansion and development of 
markets for Minnesota products; 
    (4) Promote and encourage the location and development of 
new business in the state as well as the maintenance and 
expansion of existing business and for that purpose cooperate 
with state and local agencies and individuals, both within and 
outside the state; 
    (5) Advertise and disseminate information as to natural 
resources, desirable locations, and other advantages for the 
purpose of attracting business to locate in this state; 
    (6) Aid the various communities in this state in getting 
business to locate therein; 
     (7) Advise and cooperate with municipal, county, regional, 
and other planning agencies and planning groups within the state 
for the purpose of promoting coordination between the state and 
localities as to plans and development in order to maintain a 
high level of gainful employment in private profitable 
production and achieve commensurate advancement in social and 
cultural welfare; coordinate the activities of state-wide and 
local planning agencies, correlate information secured from them 
and from state departments and disseminate information and 
suggestions to the planning agencies; and encourage and assist 
in the organization and functioning of local planning agencies 
where none exist; and may provide at the request of any 
governmental subdivision hereinafter mentioned planning 
assistance, which includes but is not limited to surveys, land 
use studies, urban renewal plans, technical services and other 
planning work to any city or other municipality in the state or 
perform similar planning work in any county, metropolitan or 
regional area in the state.  The commissioner shall not perform 
the planning work with respect to a metropolitan or regional 
area which is under the jurisdiction for planning purposes of a 
county, metropolitan, regional or joint planning body, except at 
the request or with the consent of the respective county, 
metropolitan, regional or joint planning body.  The commissioner 
is authorized to receive and expend money from municipal, 
county, regional and other planning agencies; and may accept and 
disburse grants and other aids for planning purposes from the 
federal government and from other public or private sources, and 
may utilize moneys so received for the employment of consultants 
and other temporary personnel to assist in the supervision or 
performance of planning work supported by money other than state 
appropriated money, and may enter into contracts with agencies 
of the federal government, units of local government or 
combinations thereof, and with private persons that are 
necessary in the performance of the planning assistance function 
of the commissioner.  In furtherance of their planning 
functions, any city or town, however organized, may expend money 
and contract with agencies of the federal government, 
appropriate departments of state government, other local units 
of government and with private persons; 
     (8) Adopt measures calculated to promote public interest in 
and understanding of the problems of planning and, to that end, 
may publish and distribute copies of any plan or any report and 
may employ other means of publicity and education that will give 
full effect to the provisions of sections 116J.58 to 116J.63;  
    (9) Plan and conduct programs of information and publicity 
designed to attract tourists, visitors, and other interested 
persons from outside the state to this state, and in that 
connection encourage and coordinate the efforts of other public 
and private organizations or groups of citizens to publicize the 
facilities and attractions of the state and work with 
representatives of the tourist and resort industry in carrying 
out its programs. 
    Sec. 57.  [116J.615] [OFFICE OF TOURISM.] 
    Subdivision 1.  [DUTIES OF DIRECTOR.] The director of 
tourism shall:  
    (1) publish, disseminate, and distribute informational and 
promotional literature;  
     (2) promote and encourage the expansion and development of 
international tourism marketing; 
     (3) advertise and disseminate information about travel 
opportunities in the state of Minnesota;  
     (4) aid various local communities to improve their tourism 
marketing programs;  
     (5) coordinate and implement a comprehensive state tourism 
marketing program that takes into consideration all public and 
private businesses and attractions;  
     (6) conduct market research and analysis to improve 
marketing techniques in the area of tourism;  
    (7) investigate and study conditions affecting Minnesota's 
tourism industry, collect and disseminate information, and 
engage in technical studies, scientific investigations, and 
statistical research and educational activities necessary or 
useful for the proper execution of the powers and duties of the 
director in promoting and developing Minnesota's tourism 
industry, both within and outside the state;  
    (8) apply for, accept, receive, and expend any funds for 
the promotion of tourism in Minnesota.  All money received by 
the director under this subdivision shall be deposited in the 
state treasury and is appropriated to the director for the 
purposes for which the money has been received.  The money does 
not cancel and is available until expended; and 
     (9) plan and conduct information and publicity programs to 
attract tourists, visitors, and other interested persons from 
outside the state to this state; encourage and coordinate 
efforts of other public and private organizations or groups of 
citizens to publicize facilities and attractions in this state; 
and work with representatives of the hospitality and tourism 
industry to carry out its programs.  
    Subd. 2.  [ART AND HISTORICAL EXHIBITIONS.] In order to 
promote tourism, trade, and cultural enrichment, the director of 
tourism may arrange for the exhibition of art collections and 
historical displays from other nations in the state capitol and 
in other public buildings throughout the state of Minnesota. The 
director of tourism shall cooperate with the state historical 
society in implementing this cultural exchange program and may 
enter into any contracts or joint ventures that are necessary to 
achieve the objectives of this section. 
    Sec. 58.  Minnesota Statutes 1982, section 116J.65, is 
amended by adding a subdivision to read: 
    Subd. 1a.  "Authority" means the energy and economic 
development authority, formerly known as the small business 
finance agency.  
    Sec. 59.  Minnesota Statutes 1982, section 116J.65, 
subdivision 5, is amended to read: 
    Subd. 5.  The commissioner authority shall administer this 
section and shall enforce the rules related to the community 
development corporations promulgated by the commissioner 
authority.  The commissioner authority may amend, suspend, 
repeal or otherwise modify these rules as provided for in 
chapter 14. 
    Sec. 60.  Minnesota Statutes 1982, section 116J.65, is 
amended by adding a subdivision to read:  
    Subd. 8a.  The energy and economic development authority 
shall be named as an assignee of the rights of a state funded 
community development corporation on any loan or other evidence 
of debt provided by a community development corporation to a 
private enterprise.  The assignment of rights shall provide that 
it will be effective upon the dormancy or cessation of existence 
of the community development corporation.  "Dormancy" for the 
purpose of this section means the continuation of the 
corporation in name only without any functioning officers or 
activities.  Upon the cessation of the activities of a state 
funded community development corporation, any assigned moneys 
paid to the energy and economic development authority shall be 
deposited into the community development corporation fund to be 
used for the purposes as set out in chapter 116J.  
    Sec. 61.  Minnesota Statutes 1982, section 116J.67, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PURPOSE; OBJECTIVES.] The commissioner of 
energy, planning and development energy and economic development 
authority may create, promote, and assist a state development 
company, also known as a "503" certified development company, 
which that will qualify as a certified development company for 
the purposes of 15 United States Code, title 15, section 697, 
and Code of Federal Regulations, title 13, section 108.503.  
    The commissioner authority shall utilize the development 
company program to stimulate the state's economic activity.  
    The development company and its directors and officers 
shall comply with the organizational, operational, regulatory, 
and reporting requirements as promulgated by the United States 
small business administration and the guidelines contained in 
the bylaws, articles of incorporation, and standard operating 
procedure prescribed by the small business administration. 
    Sec. 62.  [116J.875] [ENERGY AND ECONOMIC DEVELOPMENT 
AUTHORITY; PURPOSES.] 
    The legislature finds that certain public needs can best be 
met by the public and private sectors working in close 
cooperation.  Two of the specific areas in which this 
cooperation is most needed are small business development and 
energy program management and financing.  The energy and 
economic development authority created by section 116J.89 is the 
mechanism for cooperation in these two areas.  By providing an 
efficient arrangement to pool financing, personnel, information, 
and technological knowledge, the authority, as a partnership 
between the public and private sectors, will promote job 
creation, business development, and energy policies more 
effectively than would be the case if these sectors acted 
independently.  
    Sec. 63.  Minnesota Statutes 1982, section 116J.88, 
subdivision 2, is amended to read: 
    Subd. 2.  [AUTHORITY.] "Agency" "Authority" means the small 
business finance agency energy and economic development 
authority created in section 116J.89. 
    Sec. 64.  Minnesota Statutes 1982, section 116J.88, 
subdivision 4, is amended to read: 
    Subd. 4.  [ELIGIBLE SMALL BUSINESS.] "Eligible small 
business" means an enterprise determined by the agency authority 
to constitute a small business concern as defined in regulations 
of the United States small business administration pursuant to 
15 U. S. Code United States Code, title 15, sections 631 to 647, 
as in effect March 1, 1980, which is engaged in any industrial 
or commercial activity except:  
    (a) banking or other financial service;  
    (b) real estate brokerage, management, sale, ownership, or 
leasing;  
    (c) legal, medical, dental, accounting, engineering, or any 
other professional or consulting service;  
    (d) furnishing recreational or athletic facilities; and 
    (e) serving food or beverages to be consumed on or adjacent 
to the premises where they are sold amended from time to time.  
    Sec. 65.  Minnesota Statutes 1982, section 116J.88, 
subdivision 5, is amended to read:  
    Subd. 5.  [TARGETED SMALL BUSINESS.] "Eligible Targeted 
small business" for the purpose of section 116J.90, subdivision 
5, means a business entity organized for profit, including but 
not limited to any individual, partnership, corporation, joint 
venture, association, or cooperative, which entity: 
    (a) has 20 or fewer full-time employees or not more than 
the equivalent of $1,000,000 in annual gross revenues in the 
preceding fiscal year; and 
    (b) is not at least 20 percent owned by a business dominant 
in its field of operation, or by partners, officers, directors, 
majority stockholders, or their equivalent, of a business 
dominant in its field of operation.  For the purpose of this 
subdivision, "dominant in its field of operation" means having 
more than 20 full-time employees and more than $1,000,000 in 
annual gross revenues. 
    "Farm business" means a business entity "Targeted small 
business" includes a farm business engaged in farming, 
agricultural production or processing, or storage of 
agricultural products, which otherwise qualifies as a small 
business.  
    Sec. 66.  Minnesota Statutes 1982, section 116J.88, 
subdivision 6, is amended to read:  
    Subd. 6.  [FINANCIAL INSTITUTION.] "Financial institution" 
means any a bank or other financial corporation described in 
chapter 47, any insurance company licensed to do business under 
chapter 60A, and any securities broker-dealer licensed under 
chapter 80A, bank or trust company, trust company, mortgage 
company, mortgage banker, national banking association, savings 
bank, savings and loan association, building and loan 
association, insurance company, securities broker-dealer, 
financial organizations relating to commercial credit or venture 
capital or any other financial or lending institution, whether 
organized under federal law or the laws of any state of the 
United States, and whether located within or without this state. 
    Sec. 67.  Minnesota Statutes 1982, section 116J.88, 
subdivision 7, is amended to read:  
    Subd. 7.  [BUSINESS LOAN.] "Business loan" means a loan, 
other than a pollution control loan, to the owner of a an 
eligible small business for the interim or long term financing 
of (a) capital expenditures, on an interim or long-term basis, 
for the acquisition or improvement of land, acquisition, 
construction, removal, or improvement of buildings, or 
acquisition and installation of fixtures and equipment useful 
for the conduct of the business; or (b) short-term costs of 
conducting an eligible small business.  
    Subd. 7a.  [FARM LOAN.] "Farm loan" means a loan to a farm 
business for the acquisition, installation, improvement, 
construction or removal of buildings, or acquisition and 
installation of fixtures or equipment, useful for the conduct of 
a farm business. 
    Sec. 68.  Minnesota Statutes 1982, section 116J.88, 
subdivision 8, is amended to read:  
    Subd. 8.  [POLLUTION CONTROL LOAN.] "Pollution control 
loan" means a loan to the owner of a an eligible small business 
for the acquisition, construction, or improvement of pollution 
control facilities or operations.  Pollution control facilities 
or operations may include real and personal property likely to 
help prevent, reduce, abate, or control noise, air, or water 
pollution or contamination by removing, altering, disposing, or 
storing pollutants, contaminants, wastes, or heat, and real and 
personal property to be used for the collection, storage, 
treatment, utilization, processing, or final disposal of solid 
or liquid waste.  
    Sec. 69.  Minnesota Statutes 1982, section 116J.88, is 
amended by adding a subdivision to read:  
    Subd. 9.  [FUND.] "Fund" means the economic development 
fund created by section 73.  
    Sec. 70.  Minnesota Statutes 1982, section 116J.89, 
subdivision 1, is amended to read:  
    Subdivision 1.  [ENERGY AND ECONOMIC DEVELOPMENT AUTHORITY; 
CREATION; SUCCESSOR STATUS.] A The small business finance agency 
created by Laws 1980, chapter 547, is renamed the energy and 
economic development authority is hereby created and is 
constituted as an authority to and may act on behalf of the 
state within the scope of the powers granted to it in sections 
116J.63 and 116J.88 to 116J.91 to implement a loan program loan 
programs and to provide financial assistance under the economic 
development fund by which, the authority alone or in cooperation 
with cities, towns, counties, and private or public lenders, may 
provide adequate funds may be provided or incentives to 
financing such as guarantees or insurance on sufficiently 
favorable terms to assist and encourage the establishment, 
maintenance, and growth of eligible small business businesses 
and employment opportunities in Minnesota and to reduce to a 
manageable level the cost of the control of pollution and 
disposal of waste resulting from the operations of eligible 
small business businesses. 
    The authority so named is the legal successor in all 
respects of the small business finance agency as originally 
named and constituted and all bonds, resolutions, contracts, and 
liabilities of that original agency are the bonds, resolutions, 
contracts, and liabilities of the authority as so renamed and 
reconstituted.  
    Because of its ability to pool or combine loans to be 
funded from one or more issues of bonds, whether or not the 
interest on the bonds is exempt from federal income taxes, the 
agency authority will be able to spread its financing costs 
among the eligible small businesses to which the agency makes 
loans authority provides financing, thereby reducing costs 
incurred by each eligible small business. 
    Sec. 71.  Minnesota Statutes 1982, section 116J.89, is 
amended by adding a subdivision to read:  
    Subd. 1a.  [USE OF ECONOMIC DEVELOPMENT FUND.] In addition, 
the authority may use the economic development fund to provide 
financial assistance to eligible small businesses as follows:  
    (a) to provide loan guarantees or insurance, in whole or in 
part, to eligible small businesses in connection with business 
loans or pollution control loans;  
    (b) to provide direct loans to eligible small businesses in 
connection with business loans or pollution control loans;  
    (c) to participate in other investment programs as 
appropriate under the terms of sections 116J.65, 116J.67, 
116J.88 to 116J.91, and chapters 472 and 474;  
    (d) to purchase loan packages made to eligible small 
businesses by financial institutions in the state in connection 
with business loans or pollution control loans;  
    (e) to enter into or to pay fees on insurance contracts, 
letters of credit, municipal bond insurance, surety bonds, or 
similar obligations and other agreements or contracts with 
financial institutions;  
    (f) to guarantee or insure bonds and notes issued by the 
authority, in whole or in part;  
    (g) the authority may create separate accounts within the 
fund for use in accordance with the separate purposes listed in 
this section and may irrevocably pledge and allocate moneys on 
deposit in the fund to the accounts for the purposes.  The 
authority may make contracts with note and bond holders, 
trustees for them, financial institutions, or other persons 
interested in the disposition of moneys in the fund or its 
accounts with respect to the conditions upon which money in the 
fund or its accounts is to be held, invested, applied, and 
disposed of and the use of the fund and its accounts and the 
termination of accounts.  The authority may determine to 
leverage amounts in accounts to be used to guarantee or insure 
bonds and notes of the authority or loans to eligible small 
businesses and may covenant as to the rate of leveraging with 
holders of the authority's bonds and notes or any trustee for 
them, financial institutions, or other persons.  Money in the 
fund and its accounts shall, consistent with contracts with 
holders of the authority's bonds and notes or any trustee for 
them, financial institutions, or other interested persons, be 
invested in accordance with section 116J.91, subdivision 15, and 
the investment income from them, absent contractual provisions 
to the contrary, shall be added to and retained in the fund or 
its accounts if provided by the authority.  The repayments to 
the authority of any direct loans made by the authority from 
money in the fund or its accounts shall be paid by the authority 
into the fund or, as provided by the authority, into an 
account.  The authority may collect fees, initially or from time 
to time, or both, with respect to any direct loan it extends or 
any insurance or guarantee it grants.  The authority may enter 
into contracts and security instruments with eligible small 
businesses, with bond and note holders or any trustee for them, 
or financial institutions or other persons to provide for and 
secure the repayment to the authority of money provided by the 
authority from the fund or its accounts for direct loans or 
which have been paid by the authority from the fund or accounts 
pursuant to an authority guarantee or insurance.  
    The state covenants with all holders of the authority's 
bonds and notes, financial institutions, and other persons 
interested in the disposition of money in the fund or its 
accounts, which money the authority has irrevocably pledged and 
allocated for any authorized purpose described in this 
subdivision, that the state will not take any action to limit 
the effect of the pledge and allocation and will not take any 
action to limit the effect of contracts entered into as 
authorized in this subdivision with respect to the pledge and 
allocation and will not limit or alter the rights vested in the 
authority or the state to administer the application of money 
pursuant to the pledge and allocation and to perform its 
obligations under the contracts.  The authority may include and 
recite this covenant of the state in any of its bonds or notes 
benefitting from the pledge and allocation or contracts or 
related documents or resolutions;  
    (h) to enter into contract with note and bond holders or 
other persons interested in the disposition of the fund; and 
    (i) for any legal purpose or program of the authority, 
including without limitation the payment of the cost of issuing 
authority bonds and notes and authority administrative costs and 
expenses. 
    Sec. 72.  Minnesota Statutes 1982, section 116J.89, is 
amended by adding a subdivision to read:  
    Subd. 1b.  [PREFERENCES.] (a) The following eligible small 
businesses have preference among business applicants:  
    (1) businesses located in areas of the state that are 
experiencing the most severe unemployment rates in the state;  
    (2) eligible small businesses that are likely to expand and 
provide additional permanent employment;  
    (3) businesses located in border communities that 
experience a competitive disadvantage due to location;  
    (4) businesses that have been unable to obtain traditional 
financial assistance due to a disadvantageous location, minority 
ownership, or other factors rather than due to the business 
having been considered a poor financial risk;  
    (5) businesses that utilize state resources, thereby 
reducing state dependence on outside resources, and that produce 
products or services consistent with the long-term social and 
economic needs of the state;  
    (6) businesses located in designated enterprise zones, as 
described in section 273.1312, subdivision 4; and 
    (7) business located in federally designated economically 
distressed areas.  
    (b) Except in the issuance of agency bonds or notes, the 
agency may not invest the fund in a program that does not have 
financial participation from the private sector, as determined 
by the authority.  
    Sec. 73.  Minnesota Statutes 1982, section 116J.89, is 
amended by adding a subdivision to read:  
    Subd. 1c.  [CREATION OF ECONOMIC DEVELOPMENT FUND.] There 
is created the economic development fund to be administered by 
the authority.  All money in the fund is appropriated to the 
authority to accomplish the authority's business development 
purposes.  
    Sec. 74.  Minnesota Statutes 1982, section 116J.89, 
subdivision 2, is amended to read:  
    Subd. 2.  [PUBLIC PURPOSES.] Sections 116J.63 and 116J.88 
to 116J.91 and sections 90 to 95 are enacted to promote the 
welfare and prosperity of the state by maintaining and 
increasing the career and job opportunities of its citizens,; by 
reducing, controlling, and preventing environmental pollution 
and waste of resources; and by protecting and enhancing the tax 
base on which state and local governments depend for the 
financing of public services. 
    Sec. 75.  Minnesota Statutes 1982, section 116J.89, 
subdivision 7, is amended to read:  
    Subd. 7.  [TAXATION OF AUTHORITY NOTES AND BONDS.] The 
state covenants with the purchasers and all subsequent holders 
and transferees of notes and bonds issued by the agency 
authority in consideration of the acceptance of and payment for 
the notes and bonds, that the notes and bonds of the agency 
authority issued pursuant to sections 116J.65, 116J.67, 116J.88 
to 116J.91, sections 90 to 95, and chapters 472 and 474, and the 
income therefrom and all its fees, charges, gifts, grants, 
revenues, receipts, and other moneys received or to be received, 
pledges to pay or secure the payment of such notes or bonds 
shall at all times be free and exempt from all state, city, 
county or other taxation provided by the laws of the state, 
except for estate and gift taxes and taxes on transfers, and 
except for the Minnesota corporate franchise tax measured by 
income, so long as the interest on federal bonds is included in 
the income by which such tax is measured. 
    Sec. 76.  Minnesota Statutes 1982, section 116J.89, 
subdivision 8, is amended to read: 
    Subd. 8.  [MEMBERSHIP.] The members and governing body of 
the agency authority shall be the commissioner and six ten other 
members holding no other elective or appointive office of the 
state or any local government, appointed by the governor with 
advice and consent of the senate.  The commissioner shall be 
vice chairman, and The governor shall designate the chairman 
from among the other members, to serve as chairman at the 
pleasure of the governor.  The board shall elect a secretary 
from among its members.  On the effective date of this act, the 
governor shall have authority to appoint new members.  The terms 
of the current members shall expire, respectively, when they are 
replaced and new members are appointed by the governor and 
qualified.  Section 15.0575, governs the terms, compensation, 
removal and filling of vacancies in the offices of members other 
than the commissioner. 
    Sec. 77.  Minnesota Statutes 1982, section 116J.89, 
subdivision 9, is amended to read: 
    Subd. 9.  [EXERCISE OF POWERS.] The members shall be 
responsible for management and control of the agency powers of 
the authority are vested in the members.  A majority of the 
members, excluding vacant memberships, is a quorum.  When a 
quorum is present at any meeting of which notice has been given 
to or waived by all absent members in the manner provided in 
bylaws adopted by the vote of a majority of all members, any 
action of the agency authority may be taken by the vote of a 
majority of the members present.  Fewer than a quorum may hear 
reports and adjourn from time to time.  
    Sec. 78.  Minnesota Statutes 1982, section 116J.89, 
subdivision 10, is amended to read: 
    Subd. 10.  [STAFFING.] The commissioner shall designate an 
employee as executive director of the agency and may appoint 
permanent and temporary employees necessary for the 
administration of the agency authority.  The governing body of 
the agency may enter into agreements under which the department 
will provide administrative support for the agency.  The 
commissioner may enter into agreements under which staff from 
private corporations, agencies, or other organizations are 
loaned to the authority for the purpose of performing its duties.
    Sec. 79.  Minnesota Statutes 1982, section 116J.90, is 
amended to read: 
    116J.90 [LOANS.] 
    Subdivision 1.  [GENERALLY.] The agency authority may make 
or purchase or participate with financial institutions in making 
or purchasing business loans and, pollution control loans, and 
farm loans upon the conditions described in this section, and 
may enter into commitments therefor.  
    Subd. 2.  [BUSINESS LOANS; LIMITATIONS.] The agency 
authority may make or purchase or participate with financial 
institutions in making or purchasing business loans not 
exceeding $1,000,000 in principal amount, to be serviced by such 
institutions, provided that:  
    (a) The agency's share shall not exceed 90 percent of the 
total principal amount, and shall be payable with interest at 
the same times but not necessarily at the same interest rate as 
the share of the financial institution, and both shares shall be 
equally and ratably secured by a valid mortgage on or security 
interest in real or personal property or by any other security 
satisfactory to the agency to secure payment of the loan 
provided, that the agency's share may equal 100 percent of the 
total principal amount of the business loan if the financial 
institution participating in the making or purchasing of the 
business loan by servicing the loan, purchases 100 percent of 
the total amount of the bonds issued by the agency in connection 
with the loan;  
    (b) The total principal amount shall not exceed 90 percent 
of the value of the property securing the loan, unless the 
amount in excess of 90 percent is:  
    (1) Loaned from available funds which are not proceeds 
received directly from the sale of the agency's bonds or notes 
and are not restricted under the terms of any resolution or 
indenture securing bonds or notes, or 
    (2) Insured or guaranteed by a federal agency or by a 
private insurer qualified to write such insurance in the state, 
insuring a percentage of any claim for loss at least equal to 
that percentage of the value by which the loan exceeds 90 
percent thereof;  
    (c) The value of the property securing the loan shall be 
certified by the participating financial institution, on the 
basis of such appraisals, bids, purchase orders, and engineers' 
certificates as the agency may require; provided that the value 
of items purchased and constructed from the proceeds of the loan 
shall not be deemed to exceed the contract price of purchase or 
construction;  
    (d) The agency shall not disburse funds under a commitment 
to participate in a loan for the construction or substantial 
improvement of property until the construction or improvement 
has been completed, unless a financial institution furnishes an 
irrevocable letter of credit or a qualified corporate surety 
furnishes payment and performance bonds, satisfactory to the 
agency and in an aggregate amount equal to the amount payable 
under the construction contract; and 
    (e) No other indebtedness may be secured by a mortgage on 
or security interest in property securing a business loan made 
or purchased pursuant to this subdivision without the prior 
express written authorization of the agency with respect to 
business loans made or purchased by the authority and not 
exceeding $1,000,000 principal amount with respect to the 
authority's share thereof when the authority participates in 
making or purchasing business loans.  
    With respect to business loans that the authority makes or 
purchases or participates with, the authority may determine or 
provide for their servicing, the percentage of authority 
participation, if any, the times the loans or participations 
shall be payable and the amounts of payment, their amount and 
interest rates, their security, if any, and other terms, 
conditions, and provisions necessary or convenient in connection 
with them and may enter into all necessary contracts and 
security instruments in connection with them.  The authority may 
provide for or require the insurance or guaranteeing of the 
business loans or authority participations in whole or in part 
by the federal government or a department, agency, or 
instrumentality of it, by an appropriate account created with 
respect to the economic development fund, or by a private 
insurer.  In connection with making or purchasing business loans 
or participations in them, the authority may enter into 
commitments to purchase or participate with financial 
institutions upon the terms, conditions, and provisions 
determined by it.  Business loans or participations may be 
serviced by financial institutions or other persons designated 
by the authority.  The dollar limitations contained in this 
subdivision do not apply to energy loans and loans insured under 
sections 93 and 94.  
    Subd. 3.  [DIRECT BUSINESS AND FARM LOANS; LIMITATIONS.] 
The agency authority may make business loans or farm loans not 
exceeding $100,000 in principal amount, at interest rates and 
subject to terms determined by the authority, provided that each 
loan shall be made only from the proceeds of a bond or note sold 
and issued to a financial institution, payable exclusively in 
whole or part from the repayments of principal and interest on 
the loan, which shall be assigned to and serviced by the 
financial institution.  The loans may also be guaranteed or 
insured by money on deposit in the economic development fund or 
any special account of it, and may be secured by reserve funds 
and other collateral and available money as determined by the 
authority.  The authority may enter into all necessary contracts 
and security instruments in connection with them.  The 
limitation on loan amounts in this subdivision does not apply to 
energy loans and loans insured under sections 93 and 94.  
    Subd. 4.  [POLLUTION CONTROL LOANS.] The agency authority 
may make or purchase or participate in making or purchasing 
pollution control loans which are fully secured by the guarantee 
or insurance of any agency or instrumentality of the United 
States or by a private insurer qualified to write the insurance 
in the state, or by reserves provided by the agency or any 
combination of the foregoing in any amount, which may be secured 
in whole or part by the guarantee or insurance of the federal 
government or any federal department, agency, or 
instrumentality, by a private insurer, from guarantees or 
insurance provided by the economic development fund or any 
special account of it, by reserves, moneys, funds, or other 
collateral required by the authority or any combination of the 
foregoing.  To the extent consistent with this subdivision, the 
authority may make or purchase or participate in the making or 
purchasing of pollution control loans in the manner provided in 
subdivision 2 or 3 with respect to business loans.  
    Subd. 5.  [TARGETED LOANS.] The agency authority shall make 
every effort to assure that at least 50 percent of the principal 
amount of the loans made or purchased by the agency authority in 
each fiscal year consists of loans with a principal amount of 
$100,000 or less to eligible targeted small businesses as 
defined in section 116J.88, subdivision 5, and the financial 
management division shall provide technical assistance needed by 
eligible targeted small business owners businesses to complete 
applications and meet other requirements for those loans.  The 
agency authority shall report to the legislature annually on or 
before October February 1 as to its compliance with the 
requirements of this subdivision during the preceding fiscal 
year.  Noncompliance with this subdivision does not affect the 
validity of bonds and notes heretofore or hereafter issued.  
    Subd. 6.  [REPORTS.] (a) Each financial institution which 
that participates in a pollution control or business loan with 
the agency authority shall annually on or before March 1 submit 
a report for the prior calendar year to the agency authority on 
a form prescribed by the state auditor.  The report shall 
include a listing of each new and outstanding loan in which the 
financial institution is a participant, the amount and terms of 
the loan, the purpose of the loan, and any other information as 
the state auditor may reasonably require.  
    (b) The agency authority shall annually on or before May 1 
submit a report on a form prescribed by the state auditor for 
the prior calendar year to the state auditor on all loans which 
that it makes, purchases, or participates in.  The report shall 
include a listing of each new and outstanding loan in which the 
financial institution is a participant, the amount and terms of 
the loan, the purpose of the loan, and any other information as 
the state auditor may reasonably require.  
    (c) The state auditor shall annually on or before July 1 
submit a report for the prior calendar year to the governor and 
the legislature summarizing the report submitted pursuant to 
clause (b).  
    (d) The cost of preparing and submitting the reports 
required by this subdivision shall be borne by the party 
submitting it.  Any financial institution which that fails to 
comply with the requirements of this subdivision shall be 
prohibited from participating in future loans until it complies. 
    Sec. 80.  Minnesota Statutes 1982, section 116J.91, 
subdivision 1, is amended to read:  
    Subdivision 1.  In implementing its corporate the purposes 
and the programs described in sections 116J.63 and 116J.88 to 
116J.91, the agency authority shall have the powers and duties 
set forth in this section.  
    Sec. 81.  Minnesota Statutes 1982, section 116J.91, 
subdivision 4, is amended to read:  
    Subd. 4.  It may adopt, amend, and repeal rules not 
inconsistent with the provisions of sections 116J.63 and 116J.88 
to 116J.91 as necessary to effectuate its corporate purposes. 
    Sec. 82.  Minnesota Statutes 1982, section 116J.91, 
subdivision 9, is amended to read: 
    Subd. 9.  It may procure insurance against any loss in 
connection with its property in such the amounts, and from such 
the insurers, as may be necessary or desirable.  It may obtain 
municipal bond insurance, letters of credit, surety obligations, 
or equivalent security for its bonds and notes.  
    Sec. 83.  Minnesota Statutes 1982, section 116J.91, 
subdivision 10, is amended to read:  
    Subd. 10.  It may consent, whenever it deems it necessary 
or desirable in the fulfillment of its corporate purpose, to the 
modification of the rate of interest, time of payment, or any 
installment of principal or interest, or any other term, of any 
mortgage loan, mortgage loan commitment, construction loan, 
temporary loan, a contract or agreement of any kind to which the 
agency authority is a party. 
    Sec. 84.  Minnesota Statutes 1982, section 116J.91, 
subdivision 11, is amended to read:  
    Subd. 11.  It may borrow money to carry out and effectuate 
its corporate purpose purposes and may issue its negotiable 
bonds or notes as evidence of any such borrowing in accordance 
with sections 462A.08 to 462A.13, 462A.16 and 462A.17, all with 
the force and effect stated and the incidental powers granted 
and duties imposed in those sections.  The bonds and notes may 
be issued pursuant to a trust indenture that is substantially 
identical to a resolution pursuant to which the authority issues 
bonds and notes as provided in sections 462A.08 to 462A.13, 
462A.16, and 462A.17, except that the authority may pledge money 
and securities to a trustee for the security of the holders of 
bonds and notes.  The authority may refund bonds and notes and 
may guarantee or insure its bonds and notes in whole or in part 
with money from the economic development fund or an account 
created by the authority for that purpose.  The aggregate 
principal amount of the agency's authority's bonds and notes 
outstanding at any one time, excluding the amount satisfied and 
discharged by payment or provision for payment in accordance 
with their terms, and deducting amounts held in debt service 
reserve funds therefor and amounts used to make loans guaranteed 
or insured by the federal government or a department, an agency 
or instrumentality of the federal government or by a private 
insurer or guarantor authorized to do business in the state of 
Minnesota and acceptable to the authority, shall not exceed 
$30,000,000 unless authorized by another law.  
    Sec. 85.  Minnesota Statutes 1982, section 116J.91, 
subdivision 12, is amended to read:  
    Subd. 12.  It may issue and sell bonds, notes, and other 
obligations payable solely from particular moneys, assets, or 
revenues derived from its programs, or any business loan, farm 
loan, or pollution control loan, notwithstanding section 
462A.08, subdivision 3.  Obligations issued to participate in 
making or purchasing business loans pursuant to section 116J.90, 
subdivision 2, or pollution control loans shall be payable 
solely from revenues derived by the agency authority from 
repayments of such these loans and from enforcement of the 
security therefor, or from a debt service reserve fund or funds, 
or from a general reserve fund or from a segregated portion 
thereof, or from other funds or security specifically pledged by 
the authority, irrevocably pledged and appropriated to pay 
principal and interest due, for which other funds are not 
available.  A general reserve fund is hereby created and is 
eligible to receive direct appropriations from the state 
treasury or a transfer from the economic development fund as the 
authority may provide by resolution.  The agency authority may 
irrevocably pledge and appropriate all or a segregated portion 
of the general reserve fund to pay principal and interest due on 
all or one or more series of its obligations for which other 
funds are not available, pursuant to the terms and conditions 
that the agency authority shall determine.  Until so pledged and 
appropriated by the agency authority the general reserve fund 
shall not be available to pay principal and interest on the 
agency's authority's obligations.  No obligations shall be 
issued to participate in making or purchasing business loans 
pursuant to section 116J.90, subdivision 2, unless the 
obligations are secured at the time of issuance by a debt 
service reserve fund, a portion of the general reserve fund 
segregated to secure one or more series of bonds, or the portion 
of the general reserve fund not segregated to secure one or more 
series of bonds, and unless the amount then held or then 
deposited in the fund or segregated portion is at least equal to 
ten percent of the aggregate principal amount of all obligations 
secured by the fund or segregated portion thereof The authority 
may at its option provide by resolution that obligations issued 
to participate in making or purchasing business loans or 
pollution control loans be secured at the time of issuance in 
whole or in part by a debt service reserve fund or funds, a 
portion of the general reserve fund segregated to secure one or 
more series of bonds, or the portion of the general reserve fund 
not segregated to secure one or more series of bonds.  The 
operation of the debt service reserve fund or funds or a 
segregated portion of the general reserve fund and other 
relevant terms or provisions shall be determined by resolution 
or indenture of the authority.  Obligations issued to make or 
purchase business loans, farm loans, or pollution control loans 
may be issued pursuant to an indenture of trust or a resolution 
of the authority.  It may pledge to holders of obligations, or 
to a trustee, repayments from the loans, any security or 
collateral for them, contract rights with respect to them, and 
any other funds or security specifically pledged by the 
authority for them.  
    Sec. 86.  Minnesota Statutes 1982, section 116J.91, 
subdivision 14, is amended to read:  
    Subd. 14.  It may establish and collect reasonable interest 
and amortization payments on loans, and in connection therewith 
may establish and collect or authorize the collection of 
reasonable fees and charges or require funds to be placed in 
escrow, sufficient to provide for the payment and security of 
its bonds, notes, commitments and other obligations and for the 
servicing thereof, to provide reasonable allowances for or 
insurance against losses which may be incurred and to cover the 
cost of issuance of obligations and technical, consultative, and 
project assistance services.  It shall require the payment of 
all processing, administrative and guarantee fees and the 
deposit in escrow of all funds required by the small business 
administration or other federal agency or instrumentality 
guaranteeing any loan and shall comply and enforce compliance 
with all terms and conditions of each guarantee, and the prompt 
filing of all claims which may arise thereunder.  
    Sec. 87.  Minnesota Statutes 1982, section 116J.91, 
subdivision 16, is amended to read:  
    Subd. 16.  It may provide general consultative and 
technical services to assist in financing small business 
facilities for which loans may be made pursuant to section 
116J.90.  It may enter into agreements or other transactions 
concerning the receipt or provision of those services.  
    Sec. 88.  Minnesota Statutes 1982, section 116J.91, 
subdivision 19, is amended to read:  
    Subd. 19.  All Proceeds of the agency's authority's bonds, 
notes, and other obligations, any; amounts granted or 
appropriated to the agency for the making or purchase or the 
insurance or guaranty of loans or for bond reserves, all; income 
from their investment; money in the economic development fund;  
and all revenues from loans, fees, and charges of the agency 
authority are annually appropriated to the agency for the 
accomplishment of its corporate purposes and shall be expended, 
administered, and accounted for in accordance with the 
applicable provisions of all bond and note resolutions, 
indentures, and other instruments, contracts, and agreements of 
the agency.  Notwithstanding section 16A.28, these 
appropriations are available until expended.  
    Sec. 89.  Minnesota Statutes 1982, section 116J.91, is 
amended by adding a subdivision to read: 
    Subd. 20.  The authority may do all things necessary and 
proper to fulfill its purpose and the purposes of the economic 
development fund as provided in sections 116J.65, 116J.67, 
116J.88 to 116J.91, sections 90 to 95, and chapters 472 and 474. 
    Sec. 90.  [116J.921] [ENERGY FINANCING POLICIES.] 
    A reliable, economic supply of energy is essential for the 
state's households, business establishments, and 
municipalities.  Imported supplies are increasingly costly, 
unreliable, and environmentally disadvantageous.  As a result, a 
partnership of the private and public sectors is needed to 
provide leadership, cooperation, and aid for the purposes of 
planning, developing, and managing economically viable energy 
conservation programs.  
    Sec. 91.  [116J.922] [DEFINITIONS.] 
    Subdivision 1.  [GENERAL.] For purposes of sections 90 to 
95, the terms defined in this section have the meanings given 
them, unless the context in which they are used clearly 
indicates otherwise or another meaning is specifically provided. 
    Subd. 2.  [AUTHORITY.] "Authority" means the energy and 
economic development authority, formerly known as the small 
business finance agency.  
    Subd. 3.  [PERSON.] "Person" includes an individual, firm, 
partnership, corporation, or association.  
    Subd. 4.  [CONSERVATION.] "Conservation" means a product or 
system designed to reduce the amount of energy needed for an 
energy-consuming activity or process.  Conservation includes but 
is not limited to thermal insulation and air infiltration 
control in buildings, products or methods that reduce energy 
consumption for transportation or soil tillage practices, 
improvements in combustion efficiency or heat transfer 
efficiency in boilers, furnaces or direct-fired process heaters, 
and changes to industrial production equipment that result in 
lower energy use per unit of output.  
    Subd. 5.  [MUNICIPALITY.] "Municipality" means a city, 
town, county, school district, special taxing district, or a 
municipal power agency governed by chapter 453, or a group or 
combination of those units operating under an agreement to 
jointly undertake projects authorized by sections 90 to 95.  
    Subd. 6.  [ALTERNATIVE ENERGY RESOURCE.] "Alternative 
energy resource" means a source of energy available from 
indigenous Minnesota resources including but not limited to 
peat, biomass, solar energy, wind, municipal wastes, 
agricultural or forestry wastes, hydropower, and agricultural 
crops suitable for conversion to an energy fuel.  
    Subd. 7.  [RENEWABLE ENERGY RESOURCE.] "Renewable energy 
resource" means a source of energy occurring in Minnesota which, 
when consumed for energy purposes, is replaced within a matter 
of days, months, or years by new or additional supplies of the 
energy source.  Renewable energy resources include, but are not 
limited to, forestry products and forest harvest residues, solar 
energy, wind energy, waterpower, and agricultural wastes.  
    Subd. 8.  [ENERGY RECOVERY.] "Energy recovery" means the 
extraction of energy from materials, components, or processes 
which would normally represent wasted energy resources. 
Municipal solid wastes, volatile sewer gases, and power plant 
waste heat, among others, offer the potential for energy 
recovery.  
    Subd. 9.  [BUSINESS.] "Business" means any commercial, 
industrial, or nonprofit enterprise.  
    Sec. 92.  [116J.923] [POWERS AND DUTIES OF COMMISSIONER AND 
AUTHORITY RELATING TO ENERGY PROGRAMS.] 
    Subdivision 1.  [SERVICES.] The authority shall identify 
general consultative and technical services to assist in 
financing and marketing household and municipal energy 
conservation or alternative energy development.  It may enter 
into agreements or other transactions concerning the receipt or 
provisions of those services.  
    Subd. 2. [DATA PRIVACY.] Financial information, including 
but not limited to credit reports, financial statements and net 
worth calculations, received or prepared by the authority 
regarding any loan or loan insurance issued by the authority is 
private data on individuals, as defined in section 13.02, 
subdivision 12, or, if not relating to individuals, is nonpublic 
data as defined in section 13.02, subdivision 9.  
    Subd. 3.  [BROAD INTERPRETATION.] The authority through the 
commissioner shall perform, direct, or closely oversee the 
functions and programs delegated to it.  The powers granted to 
the authority shall be broadly interpreted to facilitate 
innovative leadership in all areas of energy including policy 
setting, goal definition, strategy planning, conservation, 
development of renewable and alternative energy resources, 
energy recovery, and monitoring.  
    Subd. 4.  [CAMPAIGN FOR ENERGY EFFICIENCY.] The authority 
shall promote a campaign for energy efficiency.  The authority 
shall actively promote public awareness of the potentials and 
benefits of energy efficiency.  
    Subd. 5.  [JOB CREATION, LOW INCOME.] The authority shall 
assure that programs under its control and direction make 
accommodation wherever possible for job creation and the needs 
of low income families and persons.  
    Subd. 6.  [FINANCING PROGRAMS.] The authority shall 
initiate and operate programs to assist the financing of 
qualified energy projects by:  
    (a) insuring private loans to businesses; and 
    (b) issuing its revenue bonds, notes, or other obligations 
for the purpose of making or purchasing or participating with 
financial institutions in making or purchasing loans to 
businesses.  
    Subd. 7.  [LOANS TO MUNICIPALITIES.] The authority shall 
receive applications from municipalities for loans to finance 
improvements to public buildings for the purpose of energy 
conservation, reduction of the use of conventional energy 
sources, or the use of alternative energy resources, and make 
recommendations thereon to the commissioner of finance, in the 
event of the authorization and issuance of bonds of the state 
for this purpose.  Financial and technical support for this 
program shall be provided by the financial management division. 
This program shall include the district heating loan program 
established in section 116J.36 and the program of energy 
improvement loans to schools created by the concepts in a bill 
styled as H. F. No. 549 of the 1983 legislative session.  
     Subd. 8.  [RULES.] The authority may adopt temporary and 
permanent rules for the purpose of implementing subdivisions 6 
and 7.  The temporary rules need not be adopted in compliance 
with chapter 14 and shall be effective for 360 days or until the 
permanent rules are adopted, whichever occurs first.  The 
temporary rules shall be effective upon adoption by the 
authority and shall be published in the State Register as soon 
thereafter as possible. 
    Subd. 9.  [PLANNING AND REPORTS.] (a) The authority shall 
adopt a plan to use as the basis for its investment decisions.  
    (b) By the start of the 1984 legislative session, the 
authority shall have (1) identified various nongovernmental 
funding sources; (2) provided for the efficient administration 
of its affairs; (3) solicited public comment on its plans; and 
(4) prepared recommendations as to appropriate reserve and 
guarantee fund levels required by sections 90 to 95.  
    (c) The authority shall annually report not later than 
February 1 to the legislature.  The report should contain 
recommendations for legislation as necessary to better 
coordinate its activities and the energy activities of state 
government.  
    Subd. 10.  [CONSERVATION EQUIPMENT.] The authority may 
assist in the financing of the development and operation of 
conservation or alternative or renewable energy system equipment.
     Subd. 11.  [SERVICES TO BUSINESSES.] The authority shall 
provide direct assistance to businesses that plan to begin or 
expand their operations into the area of energy.  The assistance 
shall include:  
     (a) providing data currently collected by the state that 
relates to resources, markets, economics, demographics, loans, 
and business planning;  
     (b) performing a limited technical review of prototypes or 
processes;  
     (c) conducting a limited number of feasibility studies to 
assist business development;  
     (d) conducting workshops, seminars, and other educational 
opportunities that relate to starting energy businesses or 
specific technical subjects, when appropriate, working in 
cooperation with the department of education and appropriate 
educational institutions in the state; and 
     (e) sharing information or networking among energy 
developers by use of newsletters, conferences, or the like.  
    Subd. 12.  [APPROPRIATIONS, GIFTS, GRANTS.] The authority 
may accept appropriations, gifts, grants, bequests, and devises 
and utilize or dispose of the same to carry out any provision of 
sections 90 to 95.  All gifts, grants, bequests, and revenues 
from those sources are appropriated to the authority for the 
purposes of sections 90 to 95.  The funding may include, but is 
not limited to, public utility investments and expenditures 
ordered by the public utilities commission pursuant to the 
provisions of section 216B.241.  
    Sec. 93.  [116J.924] [ENERGY LOAN INSURANCE PROGRAM.] 
    Subdivision 1.  [DEFINITIONS.] For purposes of this 
section, the following terms have the meanings given:  
    (a) "Fund" means the energy loan insurance fund created by 
subdivision 2.  
    (b) "Lender" means any state or federally chartered bank, 
credit union, savings bank, savings and loan association, 
savings association, trust company or a lender certified by the 
secretary of housing and urban development or the administrator 
of veterans affairs or approved or certified by the 
administrator of the farmers home administration.  
    (c) "Energy loan" means a loan or advance of credit, with 
security as may be required by the authority.  
    (d) "Qualified energy project" means acquiring, installing 
or constructing land, buildings, capital improvements, or 
equipment for (1) conservation of energy or use of alternative 
or renewable energy resources in the operation of a business, 
(2) recovery or production from alternative or renewable 
resources of energy to be sold in the course of business, or (3) 
production for sale in the course of business of equipment for 
the conservation or recovery of energy or for the use of energy 
from alternative or renewable resources.  
    Subd. 2.  [ENERGY LOAN INSURANCE FUND.] An energy loan 
insurance fund is created.  The fund shall be used by the 
authority as a revolving fund, and all money in the fund is 
appropriated to the authority, for carrying out the provisions 
of this section with respect to loans insured under subdivision 
3.  
    Subd. 3.  [INSURANCE OF LOANS.] (a) [AUTHORIZATION.] The 
authority is authorized, upon application by a lender, to insure 
loans for qualified energy projects as provided in this section; 
and under terms as the authority may prescribe by rule, to make 
commitments for the insuring of loans prior to the date of their 
execution or disbursement.  
    (b) [ELIGIBILITY REQUIREMENTS.] The authority may by rule 
establish requirements for energy loans to be eligible for 
insurance under this section, relating to:  
    (1) maximum principal amount, amortization schedule, 
interest rate, delinquency charges, and other terms;  
    (2) the portion of the loan to be insured;  
    (3) acceleration and other remedies;  
    (4) covenants regarding insurance, repairs, and maintenance 
of the project;  
    (5) conditions regarding subordination of the loan 
security, if any, of the project to other liens against the 
property;  
    (6) the aggregate principal amount of loans to be insured 
in relation to the reserves from time to time on hand in the 
insurance fund, and priorities as to the loans to be insured; 
and 
    (7) any other matters determined by the authority.  
    (c) [CONCLUSIVE EVIDENCE OF INSURABILITY.] Any contract of 
insurance executed by the authority under this section shall be 
conclusive evidence of the eligibility of the loan for 
insurance, and the validity of any contract of insurance 
properly executed and in the hands of any approved lender shall 
not be contestable, except for fraud or misrepresentation on the 
part of the lender.  
    (d) [PREMIUMS.] The authority is authorized to fix premium 
charges for the insurance of loans under this section at levels 
which in its judgment, taking into account other amounts 
available in the fund, will be sufficient to cover and maintain 
a reserve for loan losses.  
    (e) [PROCEDURES UPON DEFAULT.] The authority may establish 
procedures to be followed by lenders and to be taken by the 
authority in the event of default upon an energy loan, including:
    (1) time for filing claims;  
    (2) rights and interests to be assigned and documents to be 
furnished by the lender;  
    (3) principal and interest to be included in the claim; and 
    (4) conditions, if any, upon which the authority will pay 
the entire principal amount in default, after foreclosure and 
receipt of marketable title to the property.  
    Subd. 4.  [INVESTMENT INTEREST.] All interest and profits 
accruing from investment of the fund's money shall be credited 
to and be a part of the fund, and any loss incurred in the 
principal of the investments of the fund shall be borne by the 
fund.  
    Subd. 5.  [MAXIMUM AUTHORIZED INSURANCE.] The authority may 
not at any time issue insurance under this section aggregating 
in excess of an amount equal to the current balance contained in 
the fund multiplied by ten.  
    Sec. 94.  [116J.925] [ENERGY LOAN PROGRAM.] 
    Subdivision 1.  [AUTHORITY TO MAKE LOANS.] The authority 
may make loans to individuals, partnerships, corporations, or 
other entities for the financing of capital improvements to be 
used in connection with a trade or business if the principal 
purpose of improvement is energy conservation, to reduce the 
usage of conventional fuels as a source of energy, or to develop 
Minnesota's alternative energy resources as provided by the 
authority's rules.  
    Subd. 2.  [REVENUE BONDS.] The authority may borrow money 
and may issue bonds, notes, or other obligations as evidence of 
the borrowing in accordance with sections 462A.08 to 462A.17, 
all with the force and effect stated and the incidental powers 
granted and duties imposed in those sections.  The authority may 
sell any of its obligations at public or private sale, at the 
price or prices as the authority determines are appropriate, 
notwithstanding the limitations on sale price in section 462A.09.
These obligations may be issued and loans made from the proceeds 
in excess of the limitations contained in section 116J.90, 
subdivisions 2 and 3, and section 116J.91, subdivision 11.  
    Subd. 3.  [ENERGY DEVELOPMENT FUND.] An energy development 
fund is created and is eligible to receive appropriations.  The 
authority may irrevocably pledge and appropriate all or a 
segregated portion of the energy development fund to make 
principal and interest payments when due on all or one or more 
series of its obligations for which other funds are not 
available, pursuant to the terms and conditions the authority 
shall prescribe.  Unless the energy development fund has been 
pledged and appropriated to secure the obligations, the energy 
development fund shall not be available to make principal or 
interest payments on the obligations.  
    Subd. 4.  [INVESTMENT INCOME.] All interest and profits 
accruing from investment of the energy development fund's moneys 
shall be credited to and be part of the energy development fund, 
and any loss incurred in the principal of the investment of the 
reserve fund shall be borne by the fund.  Assets of the energy 
development fund shall be invested only in direct obligations or 
obligations of agencies of the United States or in insured 
depository accounts, up to the amount of the insurance, in any 
institution insured by an agency of the United States 
government, or in other obligations or depository accounts 
referred to in section 11A.24, subdivision 4, except clause (d) 
of that subdivision.  Other funds and revenues of the authority 
shall be invested or deposited in the manner and with the 
security provided in bond or note resolutions or indentures 
under which obligations of the authority are issued for the 
program.  
    Subd. 5.  [ADDITIONAL POWERS.] In addition to the powers 
specifically enumerated, the authority shall have any corporate 
powers necessary to effectuate or appropriate to the efficient 
implementation and operation of the revenue bond loan program 
authorized by this section, except to the extent explicitly 
limited by this section.  
    Subd. 6.  [FUNDING.] All proceeds of the authority's bonds, 
notes, and other obligations, any amounts granted or 
appropriated to the authority to make, purchase, or insure 
loans, or for bond reserves, all income from the investment 
thereof, and all revenues from loans, fees, and charges of the 
authority are annually appropriated to the authority to 
accomplish its purposes and shall be expended, administered, and 
accounted for in accordance with the applicable provisions of 
all bond and note resolutions, indentures, and other 
instruments, contracts, and agreements of the authority.  
    Sec. 95.  [116J.926] [LOANS TO MUNICIPALITIES.] 
    Subdivision 1.  [QUALIFIED ENERGY IMPROVEMENTS.] For the 
purposes of this section, "qualified energy improvements" means 
any capital improvements to public land or buildings, including 
the installation of equipment, undertaken by a municipality for 
the principal purpose of energy conservation or to reduce usage 
of conventional energy sources, as provided by rules adopted by 
the authority.  
    Subd. 2.  [APPLICATIONS.] The authority shall establish 
procedures, form, and the required contents of applications to 
be made by municipalities for loans to finance the acquisition 
or construction of qualified energy improvements when state 
bonds are authorized and issued for this purpose.  
    Subd. 3.  [MUNICIPAL OBLIGATION.] A loan shall not be made 
to a municipality until it has entered into an agreement with 
the state providing that the municipality shall make payments of 
principal and interest at least equal in the aggregate to the 
principal amount of the loan plus interest at the rate payable 
on the state bonds.  The annual amounts of the payments shall be 
determined by the commissioner of finance, and need not coincide 
with the principal and interest payments on the bonds.  However, 
the amounts due each year shall be payable prior to the times 
transfers are required to be made pursuant to section 16A.65. 
The agreement shall obligate the municipality to levy an ad 
valorem property tax equal to the amounts necessary to make the 
payments.  The amount required to be levied may be reduced by 
any other available amounts contained in a special fund 
dedicated to payment of the loan obligation.  
    Subd. 4.  [RECEIPTS.] The principal and interest in 
repayment of the loans authorized by this section shall be 
deposited in the state treasury and credited to the state bond 
fund and are appropriated to the commissioner of finance for the 
purpose of that fund. 
    Sec. 96.  [116K.01] [STATE PLANNING AGENCY.] 
    Subdivision 1.  [CREATION.] A state planning agency is 
created in the executive branch of state government.  
    Subd. 2.  [DIRECTOR.] The governor shall appoint a state 
planning director in the unclassified service.  He shall be 
professionally competent in the fields of public administration 
and planning and shall possess demonstrated ability, based upon 
past performance, to perform the duties of state planning 
director.  
    Subd. 3.  [ORGANIZATION.] The director shall organize the 
agency and employ the officers, employees, and agents as the 
director deems necessary to discharge the functions of the 
office, and define their duties.  The director shall appoint a 
deputy director and division directors, who shall serve in the 
unclassified service of the state.  To fulfill long-range 
planning objectives requiring special projects anticipated to be 
of limited duration, the director shall request temporary 
unclassified positions pursuant to section 43A.08, subdivision 
2a.  All other officers, employees, and agents are in the 
classified service of the state civil service.  
    Subd. 4.  [STAFF.] The director shall employ personnel with 
qualifications needed to perform the duties prescribed in 
chapter 116K.  
    Sec. 97.  [116K.02] [DEFINITIONS.] 
    Subdivision 1.  [SCOPE.] For the purposes of chapter 116K, 
the terms defined in this section have the meanings given them.  
    Subd. 2.  [DIRECTOR.] "Director" means the state planning 
director.  
    Subd. 3.  [AGENCY.] "Agency" means the state planning 
agency.  
    Sec. 98.  Minnesota Statutes 1982, section 144A.53, 
subdivision 4, is amended to read: 
    Subd. 4.  [REFERRAL OF COMPLAINTS.] If a complaint received 
by the director relates to a matter more properly within the 
jurisdiction of an occupational licensing board, the office of 
consumer services or any other governmental agency, the director 
shall forward the complaint to that agency and shall inform the 
complaining party of the forwarding.  The agency shall promptly 
act in respect to the complaint, and shall inform the 
complaining party and the director of its disposition.  If a 
governmental agency receives a complaint which is more properly 
within the jurisdiction of the director, it shall promptly 
forward the complaint to the director, and shall inform the 
complaining party of the forwarding.  If the director has reason 
to believe that any an official or employee of an administrative 
agency or health facility has acted in a manner warranting 
criminal or disciplinary proceedings, he shall refer the matter 
to the state commissioner of health, the commissioner of public 
welfare, an appropriate prosecuting authority, or any other 
appropriate agency. 
    Sec. 99.  Minnesota Statutes 1982, section 155A.03, is 
amended by adding a subdivision to read:  
    Subd. 13.  [COMMISSIONER.] "Commissioner" means the 
commissioner of commerce.  
    Sec. 100.  Minnesota Statutes 1982, section 155A.05, is 
amended to read:  
    155A.05 [RULES.] 
    The director commissioner shall develop and adopt rules to 
carry out the provisions of sections 155A.01 to 155A.18 by 
December 31, 1982, pursuant according to chapter 14.  For 
purposes of sections 155A.01 to 155A.18, the director 
commissioner may adopt temporary rules, pursuant according to 
sections 14.29 to 14.36.  These rules may be reissued as 
temporary rules until permanent rules are adopted or until 
December 31, 1982, whichever is earlier.  These temporary rules 
may provide that for any a renewal license issued by the 
director commissioner within one year after July 1, 1981, the 
term of renewal shall be either one, two, or three years.  The 
fee for a one-year renewal license shall be one-third of the fee 
for a three-year renewal license, and the fee for a two-year 
renewal shall be two-thirds of the three-year fee.  
    Sec. 101.  Minnesota Statutes 1982, section 155A.18, is 
amended to read:  
    155A.18 [PRIOR LICENSES.] 
    All licenses which were issued by the board of cosmetology 
director of the office of consumer services under chapter 155 
155A, shall continue in effect under the office of consumer 
services commissioner until the licenses expire.  
    Sec. 102.  Minnesota Statutes 1982, section 214.14, 
subdivision 1, is amended to read:  
    Subdivision 1.  There is established a human services 
occupations advisory council to assist the commissioner of 
health in formulating policies and rules pursuant according to 
section 214.13.  The commissioner shall determine the duties of 
the council, shall establish procedures for the proper 
functioning of the council including, but not limited to the 
following:  the method of selection of membership, the selection 
of a committee chairman and methods of communicating 
recommendations and advice to the commissioner for his 
consideration.  Each of the health related licensing boards, the 
state examining committee for physical therapists, the consumer 
services section of the department of commerce, the state 
comprehensive health planning advisory council and the higher 
education coordinating board shall have a representative 
selected by the boards or section, committee, or council.  The 
governor shall appoint the remaining members who shall not 
exceed 11 and shall include six persons broadly representative 
of human services, particularly human services professions not 
presently credentialed pursuant according to existing law, and 
five public members.  The committee shall expire and the terms 
of the appointed members and the compensation and removal of all 
members shall be as provided in section 15.059. 
    Sec. 103.  [216A.085] [ENERGY ISSUES INTERVENTION OFFICE.] 
    Subdivision 1.  [CREATION.] There is created within the 
department of public service an intervention office to represent 
the interests of Minnesota residents, businesses, and 
governments before bodies and agencies outside the state that 
make, interpret, or implement national and international energy 
policy.  
    Subd. 2.  [DUTIES.] The intervention office shall determine 
those areas in which state intervention is most needed, most 
likely to have a positive impact, and most effective for the 
broad public interest of the state.  The office shall seek 
recommendations from appropriate public and private sources 
before deciding which cases merit intervention.  
    Subd. 3.  [STAFFING.] The intervention office shall be 
under the control and supervision of the director of the 
department of public service.  The director 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. 104.  Minnesota Statutes 1982, section 216B.16, is 
amended by adding a subdivision to read: 
    Subd. 10.  [INTERVENOR PAYMENT.] The commission may order a 
utility to pay all or a portion of a party's intervention costs 
not to exceed $20,000 per intervenor in any proceeding when the 
commission finds that the intervenor has materially assisted the 
commission's deliberation and the intervenor has insufficient 
financial resources to afford the costs of intervention.  
    Sec. 105.  Minnesota Statutes 1982, section 216B.62, 
subdivision 2, is amended to read: 
    Subd. 2.  Whenever the commission or department, in a 
proceeding upon its own motion, on complaint, or upon an 
application to it, shall deem it necessary, in order to carry 
out the duties imposed by Laws 1974, Chapter 429 under this 
chapter and section 103, to investigate the books, accounts, 
practices, and activities of, or make appraisals of the property 
of any public utility, or to render any engineering or 
accounting services to any public utility, or to intervene 
before an energy regulatory agency, the public utility shall pay 
the expenses reasonably attributable to the investigation, 
appraisal, or service, or intervention.  The commission and 
department shall ascertain the expenses, and the department 
shall render a bill therefor to the public utility, either at 
the conclusion of the investigation, appraisal, or services, or 
from time to time during its progress, which bill shall 
constitute notice of the assessment and a demand for payment.  
The amount of the bills so rendered by the department shall be 
paid by the public utility into the state treasury within 30 
days from the date of rendition.  The total amount, in any one 
calendar year, for which any public utility shall become liable, 
by reason of costs incurred by the commission within that 
calendar year, shall not exceed two-fifths of one percent of the 
gross operating revenue from retail sales of gas, or electric 
service by the public utility within the state in the last 
preceding calendar year.  Where, pursuant to this subdivision, 
costs are incurred within any calendar year which are in excess 
of two-fifths of one percent of the gross operating revenues, 
the excess costs shall not be chargeable as part of the 
remainder under subdivision 3, but shall be paid out of the 
general appropriation to the department and commission.  In the 
case of public utilities offering more than one public utility 
service only the gross operating revenues from the public 
utility service in connection with which the investigation is 
being conducted shall be considered when determining this 
limitation. 
    Sec. 106.  Minnesota Statutes 1982, section 216B.62, 
subdivision 3, is amended to read: 
    Subd. 3.  The department and commission shall quarterly, at 
least 30 days before the start of each quarter, estimate the 
total of their expenditures in the performance of their duties 
relating to public utilities under section 103, and sections 
216B.01 to 216B.67, other than amounts chargeable to public 
utilities under subdivision 2 or 6.  The remainder shall be 
assessed by the commission and department to the several public 
utilities in proportion to their respective gross operating 
revenues from retail sales of gas or electric service within the 
state during the last calendar year.  The assessment shall be 
paid into the state treasury within 30 days after the bill has 
been mailed to the several public utilities, which shall 
constitute notice of the assessment and demand of payment 
thereof.  The total amount which may be assessed to the public 
utilities, under authority of this subdivision, shall not exceed 
one-eighth of one percent of the total gross operating revenues 
of the public utilities during the calendar year from retail 
sales of gas or electric service within the state.  The 
assessment for the second quarter of each fiscal year shall be 
adjusted to compensate for the amount by which actual 
expenditures by the commission and department for the preceding 
fiscal year were more or less than the estimated expenditures 
previously assessed. 
    Sec. 107.  Minnesota Statutes 1982, section 299A.04, is 
amended to read: 
    299A.04 [GRANTS-IN-AID TO YOUTH INTERVENTION PROGRAMS.] 
    Subdivision 1.  The commissioner director may make grants 
to nonprofit agencies administering youth intervention programs 
in communities where the programs are or may be established. 
    "Youth intervention program" means a nonresidential 
community based program providing advocacy, education, 
counseling, and referral services to youth and their families 
experiencing personal, familial, school, legal, or chemical 
problems with the goal of resolving the present problems and 
preventing the occurrence of the problems in the future. 
    Subd. 2.  Applications for a grant-in-aid shall be made by 
the administering agency to the commissioner director.  The 
grant-in-aid is contingent upon the agency having obtained from 
the community in which the youth intervention program is 
established local matching money two times the amount of the 
grant that is sought. 
    The commissioner director shall provide by rule the 
application form, procedures for making application form, 
criteria for review of the application, and kinds of 
contributions in addition to cash that qualify as local matching 
money.  No grant to any agency shall exceed $25,000. 
    Sec. 108.  Minnesota Statutes 1982, section 325E.09, 
subdivision 4a, is amended to read: 
    Subd. 4a.  For the purposes of this section, octane rating 
shall be determined in the manner described in the American 
Society for Testing and Materials (ASTM) "Standard Specification 
for Gasoline," D439-71 or such other manner as prescribed by the 
director of consumer services by regulations the department of 
public service in accordance with applicable rules, adopted 
pursuant according to the Administrative procedures Procedure 
Act.  Such regulations shall The rules must only be promulgated 
adopted to place Laws 1973, chapter 687 in accordance with 
regulations promulgated by a federal agency. 
    Sec. 109.  Minnesota Statutes 1982, section 325F.09, is 
amended to read: 
    325F.09 [DEFINITIONS.] 
    (a) "Child" means any person less than 14 years of age; 
    (b) A toy presents an electrical hazard if, in normal use 
or when subjected to reasonably foreseeable damage or abuse, its 
design or manufacture may cause personal injury or illness by 
electrical shock or electrocution; 
    (c) A toy presents a mechanical hazard if, in normal use or 
when subjected to reasonably foreseeable damage or abuse, its 
design or manufacture presents an unreasonable risk of personal 
injury or illness: 
    (1) from fracture, fragmentation, or disassembly of the 
article; 
    (2) from propulsion of the article or any part or accessory 
thereof; 
    (3) from points or other protrusions, surfaces, edges, 
openings, or closures; 
    (4) from moving parts; 
    (5) from lack or insufficiency of controls to reduce or 
stop motion; 
    (6) as a result of self-adhering characteristics of the 
article; 
    (7) because the article or any part or accessory thereof 
may be aspirated or ingested; 
    (8) because of instability; 
    (9) from stuffing material which is not free of dangerous 
or harmful substances; or 
    (10) because of any other aspect of the article's design or 
manufacture.  
    (d) A toy presents a thermal hazard if, in normal use or 
when subjected to reasonably foreseeable damage or abuse, its 
design or manufacture presents an unreasonable risk of personal 
injury or illness because of heat as from heated parts, 
substances, or surfaces.  
    (e) "Toxic" means able to produce personal injury or 
illness to a person through ingestion, inhalation, or absorption 
through any body surface and can apply to any substance other 
than a radioactive substance.  
    (f) "Flammable" means having a flash point up to 80 degrees 
Fahrenheit as determined by the Tagliabue Open Cup Tester.  The 
flammability of solids and of the contents of self-pressurized 
containers shall be determined by methods generally recognized 
as applicable to the materials or containers and established by 
regulations rules issued by the director commissioner.  
    (g) A toy presents a hazard of asphyxiation or suffocation 
if, in normal use or when subject to reasonable foreseeable 
damage or abuse, its design, manufacture or storage presents a 
risk of personal injury or illness from interference with normal 
breathing.  
    (h) "Director" "Commissioner" means the director 
commissioner of the consumer services section of the department 
of commerce.  
    (i) "Inspector" means an inspector of the consumer services 
section of the department of commerce.  
    Sec. 110.  Minnesota Statutes 1982, section 325F.11, is 
amended to read: 
    325F.11 [TESTING OF ARTICLES TO DETERMINE AND INSURE 
COMPLIANCE.] 
    The director commissioner or an authorized and qualified 
employee or inspector, may undertake or provide for testing of 
toys and other articles as he deems necessary to determine their 
safety and fitness for commerce in this state in compliance with 
the provisions of sections 325F.08 to 325F.18.  The director 
commissioner may contract or otherwise arrange with any testing 
facility, public or private, for testing and reporting the 
results.  The director commissioner may, by regulation rule, 
require that any toy or other article within the provisions of 
sections 325F.08 to 325F.18 be adequately tested by the consumer 
services section, a reputable testing facility, or the 
manufacturer or distributor of the article, and that the 
certified results of the test be filed with the director 
commissioner before the sale, distribution, or other movement in 
commerce within this state of the toys or articles.  The 
director commissioner may by regulation rule provide for 
penalties for the failure to provide test results.  
    Sec. 111.  Minnesota Statutes 1982, section 472.03, 
subdivision 2, is amended to read:  
    Subd. 2.  "State agency" "Authority" means the executive 
council created and established by section 9.011 energy and 
economic development authority. 
    Sec. 112.  Minnesota Statutes 1982, section 472.13, is 
amended to read: 
    472.13 [APPROPRIATION TO ECONOMIC DEVELOPMENT REVOLVING 
FUND.] 
    Subdivision 1.  [APPROPRIATION.] There is hereby 
appropriated out of the general fund in the state treasury not 
otherwise appropriated the sum of $1,500,000 to the state 
executive council authority to be used for the purposes set 
forth in these sections 472.01 to 472.16 excluding the necessary 
cost of administration thereof.  The sum hereby appropriated 
shall be credited to a special account in the state treasury to 
be known as the economic development revolving fund created in 
section 73 to be drawn upon and used by the state agency 
authority in the manner and for the purposes provided for in 
these sections 472.01 to 472.16. 
    Subd. 2.  [LOANS.] The state agency authority shall have 
the power, from time to time, to draw upon the special account 
in the economic development revolving fund such the amounts as 
the state agency shall determine authority determines for loans 
to local or area redevelopment agencies for the financing and 
planning of redevelopment projects.  When the amounts so 
allocated by the state agency authority as loans to local or 
area redevelopment agencies are repaid to the state agency 
authority pursuant to the terms of its agreements with the local 
agency, the state agency authority shall pay such the amounts 
into the special account in the economic development revolving 
fund, it being the purpose and intent of this section that said 
fund the account shall operate as a revolving fund account 
whereby all appropriations and payments made thereto to it may 
be applied and reapplied to the purposes of these sections 
472.01 to 472.16 and shall not revert to the general revenues 
fund of the state. 
    Subd. 3.  [EXCESS FUNDS.] In the event that If the state 
agency shall determine authority determines that funds held for 
the credit of the special account in the economic development 
revolving fund are in excess of the amounts needed by the state 
agency authority to carry out the purposes of these sections 
472.01 to 472.16, the state agency authority may by resolution 
release such the excess from the development revolving fund, the 
same to be transferred account and transfer it to the general 
revenues fund of the state treasury. 
    Subd. 4.  [MATCHING FUNDS.] The state agency authority may 
utilize any moneys in the revolving fund special account for the 
purpose of matching federal funds available under the Public 
Works and Economic Development Act of 1965. 
    Sec. 113.  Minnesota Statutes 1982, section 474.01, is 
amended by adding a subdivision to read: 
    Subd. 11.  [EMPLOYMENT PREFERENCE.] The welfare of the 
state requires that, whenever feasible, employment opportunities 
made available in part by sections 474.01 to 474.15 or other 
state law providing for financing mechanisms similar to those 
described in those sections should be offered to individuals who 
are unemployed or who are economically disadvantaged as defined 
in the federal Job Training Partnership Act of 1982, Statutes at 
Large, volume 96, page 1322.  Every municipality, redevelopment 
agency, or other person undertaking a project financed wholly or 
in part by these financing mechanisms is encouraged to target 
employment opportunities to qualified individuals who are 
unemployed or economically disadvantaged.  The intent of this 
subdivision may be accomplished by but is not limited to 
mechanisms such as a first source agreement in which the 
employer agrees to use a designated employment office as a first 
source for employment recruitment, referral, and placement.  
    Not later than July 1, 1984, and each July 1 for the 
succeeding three years, every municipality, redevelopment 
agency, or other person who undertakes a project financed wholly 
or in part by these financing mechanisms shall submit an 
employment report to the commissioner of energy and economic 
development.  The report shall be on forms provided by the 
commissioner and shall include, but need not be limited to, the 
following information:  
    (a) the total number of jobs created by the project, 
    (b) the number of unemployed and economically disadvantaged 
persons hired, and 
    (c) the average wage level of the jobs created.  
    Sec. 114.  [INSTRUCTIONS TO REVISOR.] 
    Subdivision 1.  The revisor of statutes shall substitute 
the term "commissioner of commerce" or "commissioner" or 
"department" or similar terms as appropriate for the following 
terms and similar terms, as necessary to reflect the transfers 
of powers, duties, and responsibilities prescribed by this act:  
    (a) "commerce commission" meaning the state commerce 
commission, "department of commerce," or "commerce department" 
where those terms appear in Minnesota Statutes;  
    (b) "commissioner of banks," "commissioner of banking," or 
"banking commissioner" where those terms appear in Minnesota 
Statutes;  
    (c) "commissioner of insurance" or "insurance commissioner" 
where those terms appear in Minnesota Statutes;  
    (d) "commissioner of securities and real estate" where that 
term appears in Minnesota Statutes;  
    (e) "division" where that term appears in chapters 46 to 
59A, and "banking division" or "division of banking" where those 
terms appear in Minnesota Statutes;  
    (f) "division of insurance," "insurance division," 
"department of insurance," or "insurance department" where those 
terms appear in Minnesota Statutes;  
    (g) "department of securities and real estate," "securities 
and real estate department," "securities and real estate 
division," or "division of securities and real estate" where 
those terms appear in Minnesota Statutes;  
    (h) "department of administration" or "commissioner of 
administration" where those terms appear in chapter 238; and 
    (i) "director of office of consumer services," "office of 
consumer services," "consumer services section," where those 
terms appear in chapter 155A and sections 325F.08 to 325F.18.  
    Subd. 2.  The revisor of statutes shall renumber each 
section specified in column A with the numbers set forth in 
column B.  The revisor shall also make necessary cross-reference 
changes consistent with the renumbering.  
                  Column A               Column B
                    45.04                 46.041
                    45.05                 46.042
                    45.06                 46.043
                    45.07                 46.044
                   45.071                 46.045
                    45.08                 46.046
                    45.16                   8.32
                    45.17                   8.33
    Sec. 115.  [INSTRUCTIONS TO REVISOR.] 
    Subdivision 1.  [TERMS.] (a) The revisor of statutes shall 
substitute the terms "state planning director" or "director" or 
"state planning agency" or "agency" or similar terms as 
appropriate for the terms "commissioner" or "department" meaning 
the commissioner or department of energy, planning and 
development, and similar terms where those terms appear in 
chapters 116C, 116D, and 116G, sections 116J.40 to 116J.54, and 
other laws relating to the planning functions of the department 
of energy, planning and development.  
    (b) The revisor of statutes shall remove the term "planning"
wherever it appears in Minnesota Statutes in reference to the 
department of energy, planning and development, the commissioner 
of energy, planning and development or similar terms to reflect 
the removal of the planning functions from that department.  
    (c) The revisor of statutes shall substitute the terms 
"commissioner of energy and economic development" or 
"commissioner" for the terms meaning the commissioner or 
department of energy, planning and development, where those 
terms appear in sections 116J.04 to 116J.36 and 116J.58 to 
116J.91, and other laws relating to the energy and economic 
development functions of the department of energy, planning and 
development.  
    (d) The revisor of statutes shall change the words 
"commissioner," "commissioner of energy, planning and 
development," "department," "agency," "state agency," "executive 
council," or similar terms to "the energy and economic 
development authority" wherever it appears in sections 116J.65 
and 116J.67; and in chapters 472 and 474.  
    Subd. 2.  [RENUMBERING.] The revisor of statutes shall 
renumber each section specified in column A with the numbers in 
column B.  The revisor shall also make necessary cross-reference 
changes consistent with the renumbering.  
                 Column A                Column B 
                  116J.28                 216B.242 
                  116J.40                 116K.01 
                  116J.42                 116K.04 
                  116J.43                 116K.05 
                  116J.44                 116K.06 
                  116J.45                 116K.07 
                  116J.48                 116K.08 
                  116J.49                 116K.09 
                  116J.50                 116K.10 
                  116J.51                 116K.11 
                  116J.52                 116K.12 
                  116J.53                 116K.13 
                  116J.54                 116K.14 
                  299A.04                 116K.15 
    Sec. 116.  [INSTRUCTION TO REVISOR.] 
    The revisor of statutes shall change the words "agency" or 
"small business finance agency" or similar terms to "authority" 
or "energy and economic development authority" wherever it 
appears in chapter 116J and other laws to reflect the change of 
name made by this act.  
    Sec. 117.  [TRANSFER OF TRADE AND EXPORT DEVELOPMENT 
RESPONSIBILITIES.] 
    The responsibilities for trade and export development set 
forth in Minnesota Statutes 1982, section 116J.58, subdivision 
1, clause (9), are transferred from the commissioner of energy, 
planning and development to the commissioner of agriculture 
under the provisions of section 15.039.  
    Sec. 118.  [APPROPRIATION.] 
    The sum of $196,900 is appropriated from the general fund 
to the director of the department of public service for 
intervention in energy policy development and regulatory 
proceedings, to be available for the fiscal year ending June 30 
in the years indicated.  
             1984          1985
           $98,400       $98,500
    The complement of the department is increased by one 
position in the unclassified service.  
    Sec. 119.  [REPEALER.] 
    Minnesota Statutes 1982, sections 45.01; 45.02; 45.021; 
45.03; 45.031; 45.032; 45.033; 45.034; 45.15; 45.16, 
subdivisions 4 and 5; 45.17, subdivision 6; 116J.02; 116J.41; 
116J.42, subdivisions 3, 5, and 6; 116J.46; 116J.47; 116J.62; 
116J.88, subdivision 3; 155A.03, subdivision 10; and 155A.17 are 
repealed.  
    Sec. 120.  [EFFECTIVE DATE.] 
    This act is effective July 1, 1983. 
    Approved June 7, 1983

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