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

                            CHAPTER 499-S.F.No. 3819 
                  An act relating to legislative enactments; correcting 
                  miscellaneous oversights, inconsistencies, 
                  ambiguities, unintended results, and technical errors; 
                  amending Minnesota Statutes 1998, sections 161.32, 
                  subdivision 7, as added; 256B.501, subdivision 13, as 
                  added; 268.059; 349.163, subdivision 9, as added; 
                  462A.201, subdivision 2; and 477A.06, subdivision 3, 
                  as amended; Minnesota Statutes 1999 Supplement, 
                  sections 123B.54, as amended; 125A.76, subdivision 1, 
                  as amended; 245.4871, subdivision 4, as amended; 
                  256B.431, subdivision 28, as amended; 290.01, 
                  subdivision 19, as amended; and 477A.06, subdivision 
                  1, as amended; Laws 1999, chapter 241, article 2, 
                  section 60, subdivision 14, as amended; chapter 243, 
                  article 1, section 2, as amended; and chapter 245, 
                  article 1, section 2, subdivision 8, as amended; and 
                  Laws 2000, chapter 296, section 1; chapter 429, 
                  section 1; chapter 444, article 1, section 6; chapter 
                  461, article 17, section 14; chapter 463, section 23, 
                  subdivision 2; chapter 479, articles 1, section 2, 
                  subdivision 12; and 2, section 1; chapter 488, 
                  articles 8, section 2, subdivisions 4 and 6; and 9, 
                  section 37; chapter 489, articles 2, section 34; 5, 
                  section 28, subdivision 4; and 6, section 44, 
                  subdivision 1; and chapter 492, article 1, sections 1; 
                  5, subdivisions 4 and 5; 12, subdivision 10; 22, 
                  subdivision 3; 23; 25; and 26, subdivision 1; 
                  Minnesota Statutes, section 58.135, as added; 2000 
                  H.F. No. 2891, section 1, if enacted; repealing Laws 
                  1999, chapter 241, article 1, section 64; and Laws 
                  2000, chapter 492, article 1, section 7, subdivision 
                  31. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1998, section 268.059, is 
        amended to read: 
           268.059 [GARNISHMENT FOR DELINQUENT TAXES AND BENEFIT 
        OVERPAYMENTS.] 
           (a) The commissioner may give notice to any employer that 
        an employee owes delinquent taxes, payments in lieu of taxes, or 
        overpaid benefits, including penalties, interest, and costs, and 
        that the obligation to the department should be withheld from 
        the employee's wages.  The commissioner may proceed only if the 
        tax, payment in lieu of taxes, or benefit overpayment is 
        uncontested or if the time for any appeal has expired.  The 
        commissioner shall not proceed until 30 calendar days after 
        mailing to the debtor employee, at the debtor's last known 
        address, a written notice of intent to garnish wages and 
        exemption notice.  That notice shall list: 
           (1) the amount of taxes, payments in lieu of taxes, 
        overpaid benefits, interest, penalties, or costs due from the 
        debtor; 
           (2) demand for immediate payment; and 
           (3) the intention to serve a garnishment notice on the 
        debtor's employer. 
           The notice shall expire 180 calendar days after it has been 
        mailed to the debtor provided that the notice may be renewed by 
        mailing a new notice that is in accordance with this section.  
        The renewed notice shall have the effect of reinstating the 
        priority of the original notice.  The exemption notice shall be 
        in substantially the same form as in section 571.72.  The notice 
        shall inform the debtor of the right to claim exemptions 
        contained in section 550.37, subdivision 14.  If no written 
        claim of exemption is received by the commissioner within 30 
        calendar days after mailing of the notice, the commissioner may 
        proceed with the garnishment.  The notice to the debtor's 
        employer may be served by mail and shall be in substantially the 
        same form as in section 571.75.  Upon receipt of the garnishment 
        notice, the employer shall withhold from the earnings due or to 
        become due to the employee, the amount shown on the notice plus 
        accrued interest, subject to section 571.922.  The employer 
        shall continue to withhold each pay period the amount shown on 
        the notice plus accrued interest until the garnishment notice is 
        released by the commissioner.  Upon receipt of notice by the 
        employer, the claim of the commissioner shall have priority over 
        any subsequent garnishments or wage assignments.  The 
        commissioner may arrange between the employer and employee for 
        withholding a portion of the total amount due the employee each 
        pay period, until the total amount shown on the notice plus 
        accrued interest has been withheld. 
           The "earnings due" any employee is as defined in section 
        571.921.  The maximum garnishment allowed for any one pay period 
        shall be decreased by any amounts payable pursuant to any other 
        garnishment action served prior to the garnishment notice, and 
        any amounts covered by any irrevocable and previously effective 
        assignment of wages; the employer shall give notice to the 
        commissioner of the amounts and the facts relating to the 
        assignment within ten days after the service of the garnishment 
        notice on the form provided by the commissioner. 
           (b) If the employee ceases to be employed by the employer 
        before the full amount set forth on the garnishment notice plus 
        accrued interest has been withheld, the employer shall 
        immediately notify the commissioner in writing of the 
        termination date of the employee and the total amount withheld.  
        No employer may discharge or discipline any employee because the 
        commissioner has proceeded under this section.  If an employer 
        discharges an employee in violation of this section, the 
        employee shall have the same remedy as provided in section 
        571.927, subdivision 2. 
           (c) Within ten calendar days after the expiration of the 
        pay period, the employer shall remit to the commissioner, on a 
        form and in the manner prescribed by the commissioner, the 
        amount withheld during each pay period. 
           (d) Paragraphs (a) to (c) shall apply if the employer is 
        the state of Minnesota or any political subdivision. 
           (e) The commissioner shall refund to the employee any 
        excess amounts withheld from the employee. 
           (f) An employer that fails or refuses to comply with this 
        section shall be liable as provided in section 268.058, 
        subdivision 3 2, paragraph (i) (j). 
           Sec. 2.  [CORRECTION 1.] Minnesota Statutes 1998, section 
        349.163, subdivision 9, as added by Laws 2000, chapter 300, 
        section 4, is amended to read: 
           Sec. 4.  Minnesota Statutes 1998, section 349.163, is 
        amended by adding a subdivision to read: 
           Subd. 9.  [SALES REQUIRED.] No licensed manufacturer may 
        refuse to sell pull-tab games to a licensed distributor unless: 
           (1) a specific game sold on an exclusive basis is at issue; 
           (2) the manufacturer does not sell the pull-tab games to 
        any distributor in Minnesota; 
           (3) a Minnesota statute or rule prohibits the sale; or 
           (4) the distributor is delinquent on any payment owed to 
        the manufacturer. 
           Sec. 3.  [CORRECTION 2.] Laws 2000, chapter 296, section 1, 
        is amended to read: 
           Section 1.  [STUDY ON REIMBURSEMENT FOR SPECIAL 
        TRANSPORTATION PROVIDERS.] 
           The commissioner of human services, in consultation with 
        special transportation providers, shall prepare a study on 
        appropriate reimbursement for special transportation providers.  
        The study shall include, but not be limited to, an analysis of 
        the cost characteristics of special transportation services, 
        including the differences in costs for services provided to: 
           (1) persons who need a wheelchair lift or ramp van; 
           (2) persons who need a stretcher-equipped vehicle; 
           (3) persons who are ambulatory with assistance multiple 
        door through multiple door doors; 
           (4) persons who are ambulatory without assistance; 
           (5) persons residing in rural areas; and 
           (6) persons residing in urban areas. 
        The commissioner shall make recommendations for reimbursement 
        rates for services to persons in clauses (1) to (6), based 
        primarily on the analysis of service cost characteristics, 
        capital cost characteristics, and industry growth cost 
        characteristics.  The commissioner shall present the study to 
        the legislature no later than September 15, 2000. 
           Sec. 4.  [CORRECTION 6.] Laws 2000, chapter 444, article 1, 
        section 6, is amended to read: 
           Sec. 6.  518.183 [REPLACING CERTAIN ORDERS.] 
           Upon request of both parties the court must modify an order 
        entered under section 518.17 or 518.175 before the effective 
        date of this act section by entering a parenting plan that 
        complies with section 518.1705, unless the court makes detailed 
        findings that entering a parenting plan is not in the best 
        interests of the child.  If only one party makes the request, 
        the court may modify the order by entering a parenting plan that 
        complies with section 518.1705.  The court must apply the 
        standards in section 518.18 when considering a motion to enter a 
        parenting plan that would change the child's primary residence.  
        The court must apply the standards in section 518.17 when 
        considering a motion to enter a parenting plan that would: 
           (1) change decision-making responsibilities of the parents; 
        or 
           (2) change the time each parent spends with the child, but 
        not change the child's primary residence. 
           Sec. 5.  [CORRECTION 7.] 2000 H.F. No. 2891, article 1, section 1, 
        if 
        enacted, is amended to read: 
        Section 1.  [APPROPRIATIONS.] 
           The sums in the column under "APPROPRIATIONS" are 
        appropriated from the general fund, or another named fund, to 
        the state agencies or officials indicated, to be spent for the 
        purposes indicated, for fiscal year 2001.  Unless otherwise 
        specified, the appropriations in this act are available until 
        spent. 
                                    SUMMARY 
        TRANSPORTATION                                     $566,551,000
        METROPOLITAN COUNCIL                                 20,000,000 
        PUBLIC SAFETY                                           119,000 
        TRADE AND ECONOMIC DEVELOPMENT                          750,000 
        FINANCE                                              15,100,000
        TOTAL                                              $602,520,000
        Trunk Highway Bond Proceeds Account                 100,100,000
        Trunk Highway Fund                                  102,298,000 
        General Fund                                        400,122,000 
                                                         APPROPRIATIONS
                                                         $ 
           Sec. 6.  [CORRECTION 9.] Laws 1999, chapter 243, article 1, 
        section 2, as amended by Laws 2000, chapter 490, article 3, 
        section 1, is amended to read: 
           Sec. 2.  [SALES TAX REBATE.] 
           (a) An individual who: 
           (1) was eligible for a credit under Laws 1997, chapter 231, 
        article 1, section 16, as amended by Laws 1997, First Special 
        Session chapter 5, section 35, and Laws 1997, Third Special 
        Session chapter 3, section 11, and Laws 1998, chapter 304, and 
        Laws 1998, chapter 389, article 1, section 3, and who filed for 
        or received that credit on or before June 15, 1999; or 
           (2) was a resident of Minnesota for any part of 1997, and 
        filed a 1997 Minnesota income tax return on or before June 15, 
        1999, and had a tax liability before refundable credits on that 
        return of at least $1 but did not file the claim for credit 
        authorized under Laws 1997, chapter 231, article 1, section 16, 
        as amended, and who was not allowed to be claimed as a dependent 
        on a 1997 federal income tax return filed by another person; or 
           (3) had the property taxes payable on his or her homestead 
        abated to zero under Laws 1997, chapter 231, article 2, section 
        64, 
        shall receive a sales tax rebate. 
           (b) The sales tax rebate for taxpayers who qualify under 
        paragraph (a) as married filing joint or head of household must 
        be computed according to the following schedule: 
             Income                             Sales Tax Rebate
         less than $2,500                              $  358
         at least $2,500 but less than $5,000          $  469
         at least $5,000 but less than $10,000         $  502
         at least $10,000 but less than $15,000        $  549
         at least $15,000 but less than $20,000        $  604
         at least $20,000 but less than $25,000        $  641
         at least $25,000 but less than $30,000        $  690
         at least $30,000 but less than $35,000        $  762
         at least $35,000 but less than $40,000        $  820
         at least $40,000 but less than $45,000        $  874
         at least $45,000 but less than $50,000        $  921
         at least $50,000 but less than $60,000        $  969
         at least $60,000 but less than $70,000        $1,071
         at least $70,000 but less than $80,000        $1,162
         at least $80,000 but less than $90,000        $1,276
         at least $90,000 but less than $100,000       $1,417
         at least $100,000 but less than $120,000      $1,535
         at least $120,000 but less than $140,000      $1,682
         at least $140,000 but less than $160,000      $1,818
         at least $160,000 but less than $180,000      $1,946
         at least $180,000 but less than $200,000      $2,067
         at least $200,000 but less than $400,000      $2,644
         at least $400,000 but less than $600,000      $3,479
         at least $600,000 but less than $800,000      $4,175
         at least $800,000 but less than $1,000,000    $4,785
         $1,000,000 and over                           $5,000
           (c) The sales tax rebate for individuals who qualify under 
        paragraph (a) as single or married filing separately must be 
        computed according to the following schedule: 
              Income                                 Sales Tax Rebate
         less than $2,500                              $  204
         at least $2,500 but less than $5,000          $  249
         at least $5,000 but less than $10,000         $  299
         at least $10,000 but less than $15,000        $  408
         at least $15,000 but less than $20,000        $  464
         at least $20,000 but less than $25,000        $  496
         at least $25,000 but less than $30,000        $  515
         at least $30,000 but less than $40,000        $  570
         at least $40,000 but less than $50,000        $  649
         at least $50,000 but less than $70,000        $  776
         at least $70,000 but less than $100,000       $  958
         at least $100,000 but less than $140,000      $1,154
         at least $140,000 but less than $200,000      $1,394
         at least $200,000 but less than $400,000      $1,889
         at least $400,000 but less than $600,000      $2,485
         $600,000 and over                             $2,500
           (d) Individuals who were not residents of Minnesota for any 
        part of 1997 and who paid more than $10 in Minnesota sales tax 
        on nonbusiness consumer purchases in that year qualify for a 
        rebate under this paragraph only.  Qualifying nonresidents must 
        file a claim for rebate on a form prescribed by the commissioner 
        before the later of June 15, 1999, or 30 days after the date of 
        enactment of this act.  The claim must include receipts showing 
        the Minnesota sales tax paid and the date of the sale.  Taxes 
        paid on purchases allowed in the computation of federal taxable 
        income or reimbursed by an employer are not eligible for the 
        rebate.  The commissioner shall determine the qualifying taxes 
        paid and rebate the lesser of: 
           (1) 69.0 percent of that amount; or 
           (2) the maximum amount for which the claimant would have 
        been eligible as determined under paragraph (b) if the taxpayer 
        filed the 1997 federal income tax return as a married taxpayer 
        filing jointly or head of household, or as determined under 
        paragraph (c) for other taxpayers. 
           (e) "Income," for purposes of this section other than 
        paragraph (d), is taxable income as defined in section 63 of the 
        Internal Revenue Code of 1986, as amended through December 31, 
        1996, plus the sum of any additions to federal taxable income 
        for the taxpayer under Minnesota Statutes, section 290.01, 
        subdivision 19a, and reported on the original 1997 income tax 
        return including subsequent adjustments to that return made 
        within the time limits specified in paragraph (h).  For an 
        individual who was a resident of Minnesota for less than the 
        entire year, the sales tax rebate equals the sales tax rebate 
        calculated under paragraph (b) or (c) multiplied by the 
        percentage determined pursuant to Minnesota Statutes, section 
        290.06, subdivision 2c, paragraph (e), as calculated on the 
        original 1997 income tax return including subsequent adjustments 
        to that return made within the time limits specified in 
        paragraph (h).  For purposes of paragraph (d), "income" is 
        taxable income as defined in section 63 of the Internal Revenue 
        Code of 1986, as amended through December 31, 1996, and reported 
        on the taxpayer's original federal tax return for the first 
        taxable year beginning after December 31, 1996. 
           (f) An individual who would have been eligible for a rebate 
        under paragraph (a), clause (1) or (2), or (d) had the 
        individual filed a 1997 Minnesota income tax return or claim 
        form by June 15, 1999, who files the return or claim form by 
        June 30, 2000, is eligible for the rebate amount under (i) 
        paragraph (b) as adjusted by paragraph (h) if the individual is 
        was a resident of Minnesota for any part of 1997 and filed as 
        either married filing joint or head of household and the rebate 
        amount under, (ii) paragraph (c) as adjusted by paragraph (h) if 
        the individual is was a resident of Minnesota for any part of 
        1997 and filed as either married filing separately separate or 
        single, or (iii) paragraph (d) if the individual was a 
        nonresident in 1997. 
           (g) For a fiscal year taxpayer, the June 15, 1999, dates in 
        paragraphs (a) through (d) are extended one month for each month 
        in calendar year 1997 that occurred prior to the start of the 
        individual's 1997 fiscal tax year. 
           (h) Before payment, the commissioner of revenue shall 
        adjust the rebate as follows: 
           (1) the rebates calculated in paragraphs (b), (c), and (d) 
        must be proportionately reduced to account for 1997 income tax 
        returns that are filed on or after January 1, 1999, but before 
        July 1, 1999, so that the amount of sales tax rebates payable 
        under paragraphs (b), (c), and (d) does not exceed 
        $1,250,000,000; and 
           (2) the commissioner of finance shall certify by July 15, 
        1999, preliminary fiscal year 1999 general fund net nondedicated 
        revenues.  The certification shall exclude the impact of any 
        legislation enacted during the 1999 regular session.  If 
        certified net nondedicated revenues exceed the amount forecast 
        in February 1999, up to $50,000,000 of the increase shall be 
        added to the total amount rebated.  The commissioner of revenue 
        shall adjust all rebates proportionally to reflect any 
        increases.  The total amount of the rebate shall not exceed 
        $1,300,000,000. 
        The adjustments under this paragraph are not rules subject to 
        Minnesota Statutes, chapter 14. 
           (i) The commissioner of revenue may begin making sales tax 
        rebates by August 1, 1999.  Sales tax rebates not paid by 
        October 1, 1999, bear interest at the rate specified in 
        Minnesota Statutes, section 270.75.  Sales tax rebates paid to 
        (1) taxpayers who file their original 1997 Minnesota income tax 
        return after June 15, 1999, and (2) qualifying nonresidents who 
        file a claim for rebate after June 15, 1999, 
        bear interest at the rate specified in Minnesota Statutes, 
        section 270.75, beginning October 1, 2000. 
           (j) A sales tax rebate shall not be adjusted based on 
        changes to a 1997 income tax return that are made by order of 
        assessment after June 15, 1999, or made by the taxpayer that are 
        filed with the commissioner of revenue after June 15, 1999. 
           (k) Individuals who filed a joint income tax return for 
        1997 shall receive a joint sales tax rebate.  After the sales 
        tax rebate has been issued, but before the check has been 
        cashed, either joint claimant may request a separate check for 
        one-half of the joint sales tax rebate.  Notwithstanding 
        anything in this section to the contrary, if prior to payment, 
        the commissioner has been notified that persons who filed a 
        joint 1997 income tax return are living at separate addresses, 
        as indicated on their 1998 income tax return or otherwise, the 
        commissioner may issue separate checks to each person.  The 
        amount payable to each person is one-half of the total joint 
        rebate.  If a rebate is received by the estate of a deceased 
        individual after the probate estate has been closed, and if the 
        original rebate check is returned to the commissioner with a 
        copy of the decree of descent or final account of the estate, 
        social security numbers, and addresses of the beneficiaries, the 
        commissioner may issue separate checks in proportion to their 
        share in the residuary estate in the names of the residuary 
        beneficiaries of the estate. 
           (l) The sales tax rebate is a "Minnesota tax law" for 
        purposes of Minnesota Statutes, section 270B.01, subdivision 8. 
           (m) The sales tax rebate is "an overpayment of any tax 
        collected by the commissioner" for purposes of Minnesota 
        Statutes, section 270.07, subdivision 5.  For purposes of this 
        paragraph, a joint sales tax rebate is payable to each spouse 
        equally. 
           (n) If the commissioner of revenue cannot locate an 
        individual entitled to a sales tax rebate by July 1, 2001, or if 
        an individual to whom a sales tax rebate was issued has not 
        cashed the check by July 1, 2001, the right to the sales tax 
        rebate lapses and the check must be deposited in the general 
        fund. 
           (o) Individuals entitled to a sales tax rebate pursuant to 
        paragraph (a), but who did not receive one, and individuals who 
        receive a sales tax rebate that was not correctly computed, must 
        file a claim with the commissioner before July 1, 2000, in a 
        form prescribed by the commissioner.  Taxpayers who file their 
        original 1997 Minnesota income tax return after June 15, 1999, 
        and qualifying nonresidents who file a claim for rebate after 
        June 15, 1999, and who do not receive it or who receive a sales 
        tax rebate that was not correctly computed, must file a claim 
        with the commissioner before July 1, 2001, in a form prescribed 
        by the commissioner.  These claims must be treated as if they 
        are a claim for refund under Minnesota Statutes, section 
        289A.50, subdivisions 4 and 7. 
           (p) The sales tax rebate is a refund subject to revenue 
        recapture under Minnesota Statutes, chapter 270A.  The 
        commissioner of revenue shall remit the entire refund to the 
        claimant agency, which shall, upon the request of the spouse who 
        does not owe the debt, refund one-half of the joint sales tax 
        rebate to the spouse who does not owe the debt. 
           (q) The rebate is a reduction of fiscal year 1999 sales tax 
        revenues.  The amount necessary to make the sales tax rebates 
        and interest provided in this section is appropriated from the 
        general fund to the commissioner of revenue in fiscal year 1999 
        and is available until June 30, 2001. 
           (r) If a sales tax rebate check is cashed by someone other 
        than the payee or payees of the check, and the commissioner of 
        revenue determines that the check has been forged or improperly 
        endorsed or the commissioner determines that a rebate was 
        overstated or erroneously issued, the commissioner may issue an 
        order of assessment for the amount of the check or the amount 
        the check is overstated against the person or persons cashing 
        it.  The assessment must be made within two years after the 
        check is cashed, but if cashing the check constitutes theft 
        under Minnesota Statutes, section 609.52, or forgery under 
        Minnesota Statutes, section 609.631, the assessment can be made 
        at any time.  The assessment may be appealed administratively 
        and judicially.  The commissioner may take action to collect the 
        assessment in the same manner as provided by Minnesota Statutes, 
        chapter 289A, for any other order of the commissioner assessing 
        tax. 
           (s) Notwithstanding Minnesota Statutes, sections 9.031, 
        16A.40, 16B.49, 16B.50, and any other law to the contrary, the 
        commissioner of revenue may take whatever actions the 
        commissioner deems necessary to pay the rebates required by this 
        section, and may, in consultation with the commissioner of 
        finance and the state treasurer, contract with a private vendor 
        or vendors to process, print, and mail the rebate checks or 
        warrants required under this section and receive and disburse 
        state funds to pay those checks or warrants. 
           (t) The commissioner may pay rebates required by this 
        section by electronic funds transfer to individuals who 
        requested that their 1998 individual income tax refund be paid 
        through electronic funds transfer.  The commissioner may make 
        the electronic funds transfer payments to the same financial 
        institution and into the same account as the 1998 individual 
        income tax refund. 
           Sec. 7.  [CORRECTION 9A.] Minnesota Statutes 1999 
        Supplement, section 290.01, subdivision 19, as amended by Laws 
        2000, chapter 490, article 12, section 2, is amended to read: 
           Subd. 19.  [NET INCOME.] The term "net income" means the 
        federal taxable income, as defined in section 63 of the Internal 
        Revenue Code of 1986, as amended through the date named in this 
        subdivision, incorporating any elections made by the taxpayer in 
        accordance with the Internal Revenue Code in determining federal 
        taxable income for federal income tax purposes, and with the 
        modifications provided in subdivisions 19a to 19f. 
           In the case of a regulated investment company or a fund 
        thereof, as defined in section 851(a) or 851(g) of the Internal 
        Revenue Code, federal taxable income means investment company 
        taxable income as defined in section 852(b)(2) of the Internal 
        Revenue Code, except that:  
           (1) the exclusion of net capital gain provided in section 
        852(b)(2)(A) of the Internal Revenue Code does not apply; 
           (2) the deduction for dividends paid under section 
        852(b)(2)(D) of the Internal Revenue Code must be applied by 
        allowing a deduction for capital gain dividends and 
        exempt-interest dividends as defined in sections 852(b)(3)(C) 
        and 852(b)(5) of the Internal Revenue Code; and 
           (3) the deduction for dividends paid must also be applied 
        in the amount of any undistributed capital gains which the 
        regulated investment company elects to have treated as provided 
        in section 852(b)(3)(D) of the Internal Revenue Code.  
           The net income of a real estate investment trust as defined 
        and limited by section 856(a), (b), and (c) of the Internal 
        Revenue Code means the real estate investment trust taxable 
        income as defined in section 857(b)(2) of the Internal Revenue 
        Code. 
           The net income of a designated settlement fund as defined 
        in section 468B(d) of the Internal Revenue Code means the gross 
        income as defined in section 468B(b) of the Internal Revenue 
        Code. 
           The provisions of sections 1113(a), 1117, 1206(a), 1313(a), 
        1402(a), 1403(a), 1443, 1450, 1501(a), 1605, 1611(a), 1612, 
        1616, 1617, 1704(l), and 1704(m) of the Small Business Job 
        Protection Act, Public Law Number 104-188, the provisions of 
        Public Law Number 104-117, the provisions of sections 313(a) and 
        (b)(1), 602(a), 913(b), 941, 961, 971, 1001(a) and (b), 1002, 
        1003, 1012, 1013, 1014, 1061, 1062, 1081, 1084(b), 1086, 1087, 
        1111(a), 1131(b) and (c), 1211(b), 1213, 1530(c)(2), 1601(f)(5) 
        and (h), and 1604(d)(1) of the Taxpayer Relief Act of 1997, 
        Public Law Number 105-34, the provisions of section 6010 of the 
        Internal Revenue Service Restructuring and Reform Act of 1998, 
        Public Law Number 105-206, and the provisions of section 4003 of 
        the Omnibus Consolidated and Emergency Supplemental 
        Appropriations Act, 1999, Public Law Number 105-277, shall 
        become effective at the time they become effective for federal 
        purposes. 
           The Internal Revenue Code of 1986, as amended through 
        December 31, 1996, shall be in effect for taxable years 
        beginning after December 31, 1996. 
           The provisions of sections 202(a) and (b), 221(a), 225, 
        312, 313, 913(a), 934, 962, 1004, 1005, 1052, 1063, 1084(a) and 
        (c), 1089, 1112, 1171, 1204, 1271(a) and (b), 1305(a), 1306, 
        1307, 1308, 1309, 1501(b), 1502(b), 1504(a), 1505, 1527, 1528, 
        1530, 1601(d), (e), (f), and (i) and 1602(a), (b), (c), and (e) 
        of the Taxpayer Relief Act of 1997, Public Law Number 105-34, 
        the provisions of sections 6004, 6005, 6012, 6013, 6015, 6016, 
        7002, and 7003 of the Internal Revenue Service Restructuring and 
        Reform Act of 1998, Public Law Number 105-206, the provisions of 
        section 3001 of the Omnibus Consolidated and Emergency 
        Supplemental Appropriations Act, 1999, Public Law Number 
        105-277, and the provisions of section 3001 of the Miscellaneous 
        Trade and Technical Corrections Act of 1999, Public Law Number 
        106-36, shall become effective at the time they become effective 
        for federal purposes. 
           The Internal Revenue Code of 1986, as amended through 
        December 31, 1997, shall be in effect for taxable years 
        beginning after December 31, 1997. 
           The provisions of sections 5002, 6009, 6011, and 7001 of 
        the Internal Revenue Service Restructuring and Reform Act of 
        1998, Public Law Number 105-206, the provisions of section 9010 
        of the Transportation Equity Act for the 21st Century, Public 
        Law Number 105-178, the provisions of sections 1004, 4002, and 
        5301 of the Omnibus Consolidation and Emergency Supplemental 
        Appropriations Act, 1999, Public Law Number 105-277, the 
        provision of section 303 of the Ricky Ray Hemophilia Relief Fund 
        Act of 1998, Public Law Number 105-369, and the provisions of 
        sections 532, 534, 536, 537, and 538 of the Ticket to Work and 
        Work Incentives Improvement Act of 1999, Public Law Number 
        160-170 106-170, shall become effective at the time they become 
        effective for federal purposes. 
           The Internal Revenue Code of 1986, as amended through 
        December 31, 1998, shall be in effect for taxable years 
        beginning after December 31, 1998. 
           The Internal Revenue Code of 1986, as amended through 
        December 31, 1999, shall be in effect for taxable years 
        beginning after December 31, 1999. 
           Except as otherwise provided, references to the Internal 
        Revenue Code in subdivisions 19a to 19g mean the code in effect 
        for purposes of determining net income for the applicable year. 
           Sec. 8.  [CORRECTION 9B.] Minnesota Statutes 1999 
        Supplement, section 477A.06, subdivision 1, as amended by Laws 
        2000, chapter 490, article 6, section 8, is amended to read: 
           Subdivision 1.  [ELIGIBILITY.] (a) For assessment years 
        1999, 2000, 2001, and 2002, for all class 4d property on which 
        construction was begun before January 1, 1999, the assessor 
        shall determine the difference between the actual net tax 
        capacity and the net tax capacity that would be determined for 
        the property if the class rates for assessment year 1997 were in 
        effect. 
           (b) In calendar years 2000, 2001, 2002, and 2003, each city 
        shall be eligible for aid equal to (i) the amount by which the 
        sum of the differences determined in clause (a) for the 
        corresponding assessment year exceeds two percent of the city's 
        total taxable net tax capacity for taxes payable in 1998, 
        multiplied by (ii) the city government's average local tax rate 
        for taxes payable in 1998. 
           Sec. 9.  [CORRECTION 9C.] Minnesota Statutes 1998, section 
        477A.06, subdivision 3, as amended by Laws 2000, chapter 490, 
        article 6, section 9, is amended to read: 
           Subd. 3.  [APPROPRIATION; PAYMENT.] (a) The commissioner 
        shall pay each city its qualifying aid amount on or before July 
        20 of each year.  An amount sufficient to pay the aid authorized 
        under this section is appropriated to the commissioner of 
        revenue from the property tax reform account in fiscal years 
        year 2000 and 2001, and from the general fund in fiscal 
        years 2001, 2002, 2003, and 2004. 
           (b) For fiscal years 2001 through 2004, the amount of aid 
        appropriated under this section may not exceed $1,500,000 each 
        year. 
           (c) If the total amount of aid that would otherwise be 
        payable under the formula in this section exceeds the maximum 
        allowed under paragraph (b), the amount of aid for each city is 
        reduced proportionately to equal the limit. 
           Sec. 10.  [CORRECTION 10.] Minnesota Statutes, section 
        58.135, as added by Laws 2000, chapter 427, section 17, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [APPLICATION.] This section applies to 
        residential mortgage loans made on or after August 1, 2001. 
           Sec. 11.  [CORRECTION 11.] Laws 2000, chapter 461, article 
        17, section 14, is amended to read: 
           Sec. 14.  [EFFECTIVE DATE.] 
           (a) Sections 1 to 5 are effective on the day after the date 
        on which the Minneapolis city council and the chief clerical 
        officer of the city of Minneapolis complete, in a timely manner, 
        their compliance with Minnesota Statutes, section 645.021, 
        subdivisions 2 and 3. 
           (b) Section 6 is effective on the day after the date on 
        which the Minneapolis city council and the chief clerical 
        officer of the city of Minneapolis complete, in a timely manner, 
        their compliance with Minnesota Statutes, section 645.021, 
        subdivisions 2 and 3.  Section 5 3, if approved, applies 
        retroactively to contributions beginning after July 1, 1990. 
           (c) Sections 7 to 13 are effective on the day after the 
        date on which the Minneapolis city council and the chief 
        clerical officer of the city of Minneapolis complete, in a 
        timely manner, their compliance with Minnesota Statutes, section 
        645.021, subdivisions 2 and 3.  Section 5 10, if approved, 
        applies retroactively to contributions beginning after July 1, 
        1990. 
           Sec. 12.  [CORRECTION 12.] Laws 2000, chapter 492, article 
        1, section 1, is amended to read: 
        Section 1.  [CAPITAL IMPROVEMENT APPROPRIATIONS.] 
           The sums in the column under "APPROPRIATIONS" are 
        appropriated from the bond proceeds fund, or another named fund, 
        to the state agencies or officials indicated, to be spent for 
        public purposes including, but not limited to, acquiring and 
        bettering public land and buildings and other public 
        improvements of a capital nature, as specified in this article.  
        Unless otherwise specified, the appropriations in this article 
        are available until the project is completed or abandoned. 
                                    SUMMARY 
        UNIVERSITY OF MINNESOTA                          $  100,213,000 
        MINNESOTA STATE COLLEGES AND UNIVERSITIES           131,021,000 
        PERPICH CENTER FOR ARTS EDUCATION                       877,000 
        CHILDREN, FAMILIES, AND LEARNING                     80,741,000 
        MINNESOTA STATE ACADEMIES                             3,066,000 
        NATURAL RESOURCES                                    73,177,000 
        OFFICE OF ENVIRONMENTAL ASSISTANCE                    2,200,000 
        BOARD OF WATER AND SOIL RESOURCES                    23,800,000 
        AGRICULTURE                                          21,700,000 
        ZOOLOGICAL GARDENS                                    1,000,000 
        ADMINISTRATION                                       81,450,000 
        AMATEUR SPORTS COMMISSION                             1,110,000 
        ARTS                                                  4,500,000 
        MILITARY AFFAIRS                                      3,625,000 
        VETERANS AFFAIRS                                         25,000 
        HUMAN SERVICES                                       12,471,000 
        HEALTH                                                7,135,000
        VETERANS HOMES BOARD                                 11,700,000
        PUBLIC SAFETY                                         2,844,000 
        CORRECTIONS                                          18,035,000 
        TRADE AND ECONOMIC DEVELOPMENT                       51,382,000 
        HOUSING FINANCE AGENCY                                2,000,000 
        MINNESOTA HISTORICAL SOCIETY                          5,750,000 
        BOND SALE EXPENSES                                      448,000 
                                                                449,000 
        CANCELLATIONS                                       (29,913,000)
        TOTAL                                            $  610,357,000 
                                                         $  610,358,000 
        Bond Proceeds Fund
        (General Fund Debt Service)                         470,900,000
                                                            426,871,000
        Bond Proceeds Fund Cancellations                    (20,902,000)
        Bond Proceeds Fund  
        (User Financed Debt Service)                         71,359,000
        Maximum Effort School Loan Fund                      44,030,000 
        Bond Proceeds Fund Cancellations                    (20,902,000) 
        General Fund                                         98,011,000
        General Fund Cancellations                           (9,011,000)
                                                         APPROPRIATIONS
                                                         $ 
           Sec. 13.  [CORRECTION 12A.] Laws 2000, chapter 492, article 
        1, section 5, subdivision 4, is amended to read: 
        Subd. 4.  Pine Point School                           4,100,000
        This appropriation is from the general 
        fund. 
        For a grant to independent school 
        district No. 25, Pine Point, to 
        construct a new school facility serving 
        kindergarten through grade 8. 
           Sec. 14.  [CORRECTION 12B.] Laws 2000, chapter 492, article 
        1, section 5, subdivision 5, is amended to read: 
        Subd. 5.  Maximum Effort Capital                                
        Loans                                                44,030,000
        This appropriation is from the maximum 
        effort school loan fund. 
        For capital loans to school districts 
        as provided in Minnesota Statutes, 
        sections 126C.60 to 126C.72.  Capital 
        loans to the recipient school districts 
        are approved in the following amounts: 
        (a)  Independent School District No. 299,
        Caledonia                                            14,134,000
        (b)  Independent School District No. 306,
        La Porte                                              7,200,000
        (c)  Independent School District No. 38,
        Red Lake                                             11,166,000
        (d)  Independent School District No. 115,
        Cass Lake                                             7,505,000
        (e)  Independent School District No. 914,
        Ulen-Hitterdahl                                       4,025,000
        The commissioner shall review the 
        proposed plan and budget of the project 
        and may reduce the amount of the loan 
        to ensure that the project will be 
        economical.  The commissioner may 
        recover the cost incurred by the 
        commissioner for any professional 
        services associated with the final 
        review and construction by reducing the 
        proceeds of the loan paid by the 
        district.  The commissioner shall 
        report to the legislature any 
        reductions to the appropriations in 
        this subdivision by January 10, 2001.  
        The commissioner must study how the 
        maximum effort loan program should be 
        restructured to allow more school 
        districts to qualify for capital 
        financing under the current debt 
        service equalization aid program 
        without needing to turn to the maximum 
        effort loan program.  The commissioner 
        must report to the capital investment 
        and K-12 education finance committees 
        of the house and the education finance 
        committee and the K-12 education budget 
        division of the senate.  The department 
        must not accept any applications for 
        the maximum effort loan program until 
        after the end of the 2001 legislative 
        session. 
           Sec. 15.  [CORRECTION 12C.] Laws 2000, chapter 492, article 
        1, section 22, subdivision 3, is amended to read: 
        Subd. 3.  Wastewater Infrastructure                            
        Funding Program                                      18,319,000 
        $10,409,000 $6,309,000 of this 
        appropriation is from the general fund 
        of which $319,000 is to administer the 
        wastewater infrastructure fund program. 
        To the public facilities authority for 
        grants to eligible municipalities under 
        the wastewater infrastructure program 
        established in Minnesota Statutes, 
        section 446A.072. 
        To the greatest extent practical, the 
        authority should use the grants for 
        projects on the 2000 intended use plan 
        in priority order to qualified 
        applicants that submit plans and 
        specifications to the pollution control 
        agency or receive a funding commitment 
        from USDA rural development before 
        December 1, 2001. In determining 
        whether the penalty factor under 
        Minnesota Rules, part 7077.0196, should 
        be applied to a project, the pollution 
        control agency shall, beginning with 
        the 2001 Intended Use Plan and Project 
        Priority list, first assess the impact 
        of the new or expanded discharge 
        compared to the impact of the 
        preexisting conditions and to the 
        impact of alternative discharge 
        locations.  If the agency determines 
        that the new or expanded discharge is 
        to a less environmentally sensitive 
        area or that it is the preferable 
        location for the discharge compared to 
        the alternatives, the agency shall not 
        apply the penalty factor to the project.
        The pollution control agency shall 
        include as a factor in prioritizing 
        projects whether a project is a 
        multijurisdictional project connecting 
        areas with failing onsite treatment 
        systems with an existing or regional 
        wastewater treatment system. 
        The authority shall set aside up to 
        $400,000 for the Innovative Technology 
        Grants Program to provide 50 percent 
        reimbursement for the cost of equipment 
        and installation into an existing 
        municipal wastewater treatment system.  
        The project must be approved by the 
        pollution control agency and 
        demonstrate the application of existing 
        technology that has not been used 
        before in the treatment of municipal 
        wastewater, but has the potential to 
        improve the treatment of wastewater or 
        make the treatment process more cost 
        effective. 
        Beginning with the 2001 intended use 
        plan, the pollution control agency 
        shall include whether a community has a 
        moratorium on development as a factor 
        in prioritizing projects.  The agency 
        shall adopt rules implementing the 
        provisions of this paragraph under 
        Minnesota Statutes, section 14.389. 
           Sec. 16.  [CORRECTION 12D.] Laws 2000, chapter 492, article 
        1, section 23, is amended to read: 
        Sec. 23.  HOUSING FINANCE AGENCY                      2,000,000
        This appropriation is from the general 
        fund. 
        To the commissioner of the housing 
        finance agency for transfer to the 
        housing development fund to make loans 
        for transitional housing under 
        Minnesota Statutes, section 462A.202 
        462A.201, subdivision 2. 
           Sec. 17.  [CORRECTION 12E.] Laws 2000, chapter 492, article 
        1, section 25, is amended to read: 
        Sec. 25.  BOND SALE EXPENSES                            448,000
                                                                449,000
        To the commissioner of finance for bond 
        sale expenses under Minnesota Statutes, 
        section 16A.641, subdivision 8.  This 
        appropriation is from the bond proceeds 
        fund. 
           Sec. 18.  [CORRECTION 12F.] Laws 2000, chapter 492, article 
        1, section 26, subdivision 1, is amended to read: 
           Sec. 26.  [BOND SALE AUTHORIZATION.] 
           Subdivision 1.  [BOND PROCEEDS FUND.] To provide the money 
        appropriated in this act from the bond proceeds fund, the 
        commissioner of finance shall sell and issue bonds of the state 
        in an amount up to $426,870,000 $498,230,000 in the manner, upon 
        the terms, and with the effect prescribed by Minnesota Statutes, 
        sections 16A.631 to 16A.675, and by the Minnesota Constitution, 
        article XI, sections 4 to 7. 
           Sec. 19.  [CORRECTION 12G.] Minnesota Statutes 1998, 
        section 462A.201, subdivision 2, is amended to read: 
           Subd. 2.  [LOW-INCOME HOUSING.] (a) The agency may, in 
        consultation with the advisory committee, use money from the 
        housing trust fund account to provide loans or grants for 
        projects for the development, construction, acquisition, 
        preservation, and rehabilitation of low-income rental and 
        limited equity cooperative housing units, including temporary 
        and transitional housing, and homes for ownership.  For purposes 
        of this section, "transitional housing" means housing that is 
        provided for a limited duration not exceeding 24 months, except 
        that up to one-third of the residents may live in the housing 
        for up to 36 months.  Loans or grants for residential housing 
        for migrant farmworkers may be made under this section.  No more 
        than 20 percent of available funds may be used for home 
        ownership projects.  
           (b) A rental or limited equity cooperative permanent 
        housing project must meet one of the following income tests: 
           (1) at least 75 percent of the rental and cooperative units 
        must be rented to or cooperatively owned by persons and families 
        whose income does not exceed 30 percent of the median family 
        income for the metropolitan area as defined in section 473.121, 
        subdivision 2; or 
           (2) all of the units funded by the housing trust fund 
        account must be used for the benefit of persons and families 
        whose income does not exceed 30 percent of the median family 
        income for the metropolitan area as defined in section 473.121, 
        subdivision 2. 
           The median family income may be adjusted for families of 
        five or more. 
           (c) Homes for ownership must be owned or purchased by 
        persons and families whose income does not exceed 50 percent of 
        the metropolitan area median income, adjusted for family size. 
           (d) In making the grants, the agency shall determine the 
        terms and conditions of repayment and the appropriate security, 
        if any, should repayment be required.  To promote the geographic 
        distribution of grants and loans, the agency may designate a 
        portion of the grant or loan awards to be set aside for projects 
        located in specified congressional districts or other 
        geographical regions specified by the agency.  The agency may 
        adopt rules for awarding grants and loans under this subdivision.
           Sec. 20.  [CORRECTION 13.] Minnesota Statutes 1998, section 
        161.32, subdivision 7, as added by Laws 2000, chapter 479, 
        article 1, section 13, is amended to read: 
           Subd. 7.  [APPROVAL AND PAYMENT OF SUPPLEMENTAL 
        AGREEMENTS.] Notwithstanding any law to the contrary, when goods 
        or services are provided to the commissioner under an agreement 
        supplemental to a contract for work on a trunk highway, the 
        commissioner or designee may approve the supplemental 
        agreement work.  Payment of valid state obligations must be made 
        within 30 days of approval of the work or submission by the 
        contractor of an invoice indicating completion of work, 
        whichever occurs later. 
           Sec. 21.  [CORRECTION 14.] Laws 2000, chapter 488, article 
        8, section 2, subdivision 4, is amended to read: 
        Subd. 4.  State-Operated Services
              -0-          (1,495,000)
        [STATE-OPERATED SERVICES BASE 
        REDUCTION.] The general fund base level 
        appropriation for state operated 
        services programs and activities shall 
        be reduced by $1,495,000 for fiscal 
        year 2001.  
        The amounts that may be spent from this 
        appropriation for each purpose are as 
        follows: 
        (a) RTC Facilities
              -0-            (1,495,000)
           Sec. 22.  [CORRECTION 14A.] Laws 2000, chapter 488, article 
        8, section 2, subdivision 6, is amended to read: 
        Subd. 6.  Economic Support Grants
            30,509,000     25,368,000                 
        The amounts that may be spent from this 
        appropriation for each purpose are as 
        follows: 
        [ASSISTANCE TO FAMILIES GRANTS TANF 
        FORECAST ADJUSTMENT.] The federal 
        Temporary Assistance to Needy Families 
        (TANF) block grant fund appropriated to 
        the commissioner of human services in 
        Laws 1999, chapter 245, article 1, 
        section 2, subdivision 10, for MFIP 
        cash grants are reduced by $37,513,000 
        in fiscal year 2000 and $30,217,000 in 
        fiscal year 2001. 
        [FEDERAL TANF FUNDS.] (1) In addition 
        to the Federal Temporary Assistance for 
        Needy Families (TANF) block grant funds 
        appropriated to the commissioner of 
        human services in Laws 1999, chapter 
        245, article 1, section 2, subdivision 
        10, federal TANF funds are appropriated 
        to the commissioner in amounts up to 
        $20,000,000 in fiscal year 2000 
        and $80,440,000 $68,394,000 in fiscal 
        year 2001.  In addition to these funds, 
        the commissioner may draw or transfer 
        any other appropriations of federal 
        TANF funds or transfers of federal TANF 
        funds that are enacted into state law. 
        (2) Of the amounts in clause (1), 
        $19,680,000 in fiscal year 2001 is for 
        the local intervention grants program 
        under Minnesota Statutes, section 
        256J.625 and related grant programs and 
        shall be expended as follows: 
        (a) $500,000 in fiscal year 2001 is for 
        a grant to the Southeast Asian MFIP 
        services collaborative to replicate in 
        a second location an existing model of 
        an intensive intervention transitional 
        employment training project which 
        serves TANF-eligible recipients and 
        which moves refugee and immigrant 
        welfare recipients unto unsubsidized 
        employment and leads to economic 
        self-sufficiency.  This is a one-time 
        appropriation. 
        (b) $500,000 in fiscal year 2001 is for 
        nontraditional career assistance and 
        training programs under Minnesota 
        Statutes, section 256K.30, subdivision 
        4.  This is a one-time appropriation. 
        (c) $18,680,000 is for local 
        intervention grants for 
        self-sufficiency program under 
        Minnesota Statutes, section 256J.625.  
        For fiscal years 2002 and 2003 the 
        commissioner of finance shall ensure 
        that the base level funding for the 
        local intervention grants program is 
        $27,180,000 each year. 
        (3) Of the amounts in clause (2), 
        paragraph (c) for local intervention 
        grants, $7,000,000 in fiscal year 2001 
        shall be transferred to the 
        commissioner of health for distribution 
        to county boards according to the 
        formula in Minnesota Statutes, section 
        256J.625, subdivision 3, to be used by 
        county public health boards to serve 
        families with incomes at or below 200 
        percent of the federal poverty 
        guidelines, in the manner specified by 
        Minnesota Statutes, section 145A.16, 
        subdivision 3, clauses (2) through 
        (6).  Training, evaluation and 
        technical assistance shall be provided 
        in accordance with Minnesota Statutes, 
        section 145A.16, subdivisions 5 to 7.  
        For fiscal years 2002 and 2003 the 
        commissioner of finance shall ensure 
        that the base level funding for this 
        activity is $7,000,000 each year. 
        (4) Of the amounts in clause (1), 
        $250,000 in fiscal year 2001 is 
        appropriated to the commissioner to 
        contract with the board of trustees of 
        the Minnesota state colleges and 
        universities to provide tuition waivers 
        to employees of health care and human 
        services providers located in the state 
        that are members of qualifying 
        consortia operating under Minnesota 
        Statutes, sections 116L.10 to 116L.15.  
        This is a one-time appropriation. 
        (5) Of the amounts in clause (1), 
        $320,000 in fiscal year 2001 is for 
        training job counselors about the MFIP 
        program.  For fiscal years 2002 and 
        2003 the commissioner of finance shall 
        ensure that the base level funding for 
        employment services includes $320,000 
        each year for this activity.  The 
        appropriations in this clause shall not 
        become part of the base for the 
        2004-2005 biennium. 
        (6) Of the amounts in clause (1), 
        $1,000,000 in fiscal year 2001 is for 
        out-of-wedlock pregnancy prevention 
        funds to serve children in 
        TANF-eligible families under Minnesota 
        Statutes, section 256K.35. For fiscal 
        years 2002 and 2003 the commissioner of 
        finance shall ensure that the base 
        level funding for this program is 
        $1,000,000 each year.  The 
        appropriations in this clause shall not 
        become part of the base for the 
        2004-2005 biennium. 
        (7) Of the amounts in clause (1), 
        $1,000,000 in fiscal year 2001 is to 
        provide services to TANF-eligible 
        families who are participating in the 
        supportive housing and managed care 
        pilot project under Minnesota Statutes, 
        section 256K.25.  For fiscal years 2002 
        and 2003 the commissioner of finance 
        shall ensure that the base level 
        funding for this project is $1,000,000 
        each year.  The appropriations in this 
        clause shall not become part of the 
        base for this project for the 2004-2005 
        biennium. 
        [TANF TRANSFER TO CHILD CARE BLOCK 
        GRANT.] $651,000 in fiscal year 2001 is 
        transferred from the state's federal 
        TANF block grant to the state's federal 
        child care development fund block 
        grant, and is appropriated to the 
        commissioner of children, families, and 
        learning for the purposes of Minnesota 
        Statutes, section 119B.05. 
        [TANF TRANSFER TO SOCIAL SERVICES.] 
        $7,500,000 is transferred from the 
        state's federal TANF block grant is 
        appropriated to the commissioner of 
        human services for transfer to the 
        state's federal Title XX block grant in 
        fiscal year 2001 and in fiscal year 
        2002, for purposes of increasing 
        services for families with children 
        whose incomes are at or below 200 
        percent of the federal poverty 
        guidelines.  Notwithstanding section 6, 
        this paragraph expires June 30, 2002. 
        [TANF MOE.] (a) In order to meet the 
        basic maintenance of effort (MOE) 
        requirements of the TANF block grant 
        specified under United States Code, 
        title 42, section 609(a)(7), the 
        commissioner may only report nonfederal 
        money expended for allowable activities 
        listed in the following clauses as TANF 
        MOE expenditures: 
        (1) MFIP cash and food assistance 
        benefits under Minnesota Statutes, 
        chapter 256J; 
        (2) the child care assistance programs 
        under Minnesota Statutes, sections 
        119B.03 and 119B.05, and county child 
        care administrative costs under 
        Minnesota Statutes, section 119B.15; 
        (3) state and county MFIP 
        administrative costs under Minnesota 
        Statutes, chapters 256J and 256K; 
        (4) state, county, and tribal MFIP 
        employment services under Minnesota 
        Statutes, chapters 256J and 256K; and 
        (5) expenditures made on behalf of 
        noncitizen MFIP recipients who qualify 
        for the medical assistance without 
        federal financial participation program 
        under Minnesota Statutes, section 
        256B.06, subdivision 4, paragraphs (d), 
        (e), and (j). 
        (b) The commissioner shall ensure that 
        sufficient qualified nonfederal 
        expenditures are made each year to meet 
        the state's TANF MOE requirements.  For 
        the activities listed in paragraph (a), 
        clauses (2) to (6), the commissioner 
        may only report expenditures that are 
        excluded from the definition of 
        assistance under Code of Federal 
        Regulations, title 45, section 260.31.  
        If nonfederal expenditures for the 
        programs and purposes listed in 
        paragraph (a) are insufficient to meet 
        the state's TANF MOE requirements, the 
        commissioner shall recommend additional 
        allowable sources of nonfederal 
        expenditures to the legislature, if the 
        legislature is or will be in session to 
        take action to specify additional 
        sources of nonfederal expenditures for 
        TANF MOE before a federal penalty is 
        imposed.  The commissioner shall 
        otherwise provide notice to the 
        legislative commission on planning and 
        fiscal policy under paragraph (d). 
        (c) If the commissioner uses authority 
        granted under Laws 1999, chapter 245, 
        article 1, section 10, or similar 
        authority granted by a subsequent 
        legislature, to meet the state's TANF 
        MOE requirements in a reporting period, 
        the commissioner shall inform the 
        chairs of the appropriate legislative 
        committees about all transfers made 
        under that authority for this purpose. 
        (d) If the commissioner determines that 
        nonfederal expenditures for the 
        programs under Minnesota Statutes, 
        section 256J.025, are insufficient to 
        meet TANF MOE expenditure requirements, 
        and if the legislature is not or will 
        not be in session to take timely action 
        to avoid a federal penalty, the 
        commissioner may report nonfederal 
        expenditures from other allowable 
        sources as TANF MOE expenditures after 
        the requirements of this paragraph are 
        met. 
        The commissioner may report nonfederal 
        expenditures in addition to those 
        specified under paragraph (a) as 
        nonfederal TANF MOE expenditures, but 
        only ten days after the commissioner of 
        finance has first submitted the 
        commissioner's recommendations for 
        additional allowable sources of 
        nonfederal TANF MOE expenditures to the 
        members of the legislative commission 
        on planning and fiscal policy for their 
        review. 
        (e) The commissioner of finance shall 
        not incorporate any changes in federal 
        TANF expenditures or nonfederal 
        expenditures for TANF MOE that may 
        result from reporting additional 
        allowable sources of nonfederal TANF 
        MOE expenditures under the interim 
        procedures in paragraph (d) into the 
        February or November forecasts required 
        under Minnesota Statutes, section 
        16A.103, unless the commissioner of 
        finance has approved the additional 
        sources of expenditures under paragraph 
        (d). 
        (f) The provisions of paragraphs (a) to 
        (e) supersede any contrary provisions 
        in Laws 1999, chapter 245, article 1, 
        section 2, subdivision 10. 
        (g) The provisions of Minnesota 
        Statutes, section 256.011, subdivision 
        3, which require that federal grants or 
        aids secured or obtained under that 
        subdivision be used to reduce any 
        direct appropriations provided by law 
        do not apply if the grants or aids are 
        federal TANF funds. 
        (h) Notwithstanding section 6 of this 
        article, paragraphs (a) to (g) expire 
        June 30, 2003. 
        (i) Paragraphs (a) to (h) are effective 
        the day following final enactment. 
        (a) Assistance to Families Grants
             9,628,000     (2,305,000)                
        (b) Work Grants
                -0-          (250,000)
        (c) AFDC and Other Assistance
            20,000,000     30,734,000 
        [TRANSFERS TO MINNESOTA HOUSING FINANCE 
        AGENCY.] (a) By June 30, 2001, the 
        commissioner shall transfer $50,000,000 
        of the general funds appropriated under 
        this paragraph to the Minnesota housing 
        finance agency for transfer to the 
        housing development fund.  The program 
        funded by this transfer shall be known 
        as the "Bruce F. Vento Year 2000 
        Affordable Housing Program." Up to 
        $15,000,000 $20,000,000 may be 
        transferred in fiscal year 2000. 
        (b) Of the funds transferred in 
        paragraph (a), $5,000,000 in fiscal 
        year 2001 and $15,000,000 in fiscal 
        year 2002 is for a loan to Habitat for 
        Humanity of Minnesota, Inc.  The loan 
        shall be an interest-free deferred 
        loan.  The loan shall become due and 
        payable in the event and to the extent 
        that Habitat for Humanity of Minnesota, 
        Inc. does not invest repayments and 
        prepayment of mortgage loans financed 
        with this appropriation in new 
        mortgages for additional homebuyers 
        through Habitat for Humanity of 
        Minnesota, Inc.  To the extent 
        practicable, funding must be allocated 
        to Habitat for Humanity chapters on the 
        basis of the number of MFIP households 
        residing within a chapter's service 
        area compared to the statewide total of 
        MFIP households and on the basis of a 
        chapter's capacity. 
        (c) Of the funds transferred in 
        paragraph (a), $15,000,000 in fiscal 
        year 2001 and $15,000,000 in fiscal 
        year 2002 is for the affordable rental 
        investment fund program under Minnesota 
        Statutes, section 462A.21, subdivision 
        8b.  To the extent practicable, the 
        number of units financed with the 
        appropriation under this paragraph 
        within a city, county, or region shall 
        reflect the number of MFIP households 
        residing within the city, county, or 
        region compared to the statewide total 
        of MFIP households.  This appropriation 
        must be used to finance rental housing 
        units that serve families: 
        (1) receiving MFIP benefits under 
        Minnesota Statutes, section 256J.01, or 
        its successor program; and 
        (2) who have lost eligibility for MFIP 
        due to increased income from employment 
        or due to the collection of child or 
        spousal support under part D of title 
        IV of the Social Security Act. 
        Units produced with this appropriation 
        must remain affordable for a 30-year 
        period. 
        In order to coordinate the availability 
        of housing developed with the 
        appropriation under this paragraph with 
        MFIP families in need of affordable 
        housing, the commissioner of the 
        Minnesota housing finance agency, with 
        the assistance of the commissioner of 
        human services, shall establish 
        cooperative relationships with county 
        agencies as defined in Minnesota 
        Statutes, section 256J.08, local 
        employment and training service 
        providers as defined in Minnesota 
        Statutes, section 256J.49, local social 
        service agencies, or other 
        organizations that provide assistance 
        to MFIP households.  
        The commissioner of the Minnesota 
        housing finance agency shall develop 
        strategies to promote occupancy of the 
        units financed by the appropriation 
        under this paragraph by households most 
        in need of subsidized housing.  The 
        strategies shall include provisions 
        that encourage households to move into 
        homeownership or unsubsidized housing 
        as the household secures stable 
        employment and achieves 
        self-sufficiency.  The commissioner of 
        the Minnesota housing finance agency 
        shall consult with interested parties 
        in developing these strategies.  
        (d) The commissioner of the Minnesota 
        housing finance agency and the 
        commissioner of human services shall 
        jointly prepare and submit a report to 
        the governor and the legislature on the 
        results of the funding provided under 
        this section.  The report shall include:
        (1) information on the number of units 
        produced; 
        (2) the household size and income of 
        the occupants of the units at initial 
        occupancy; and 
        (3) to the extent the information is 
        available, measures related to the 
        occupants' attachment to the workforce 
        and public assistance usage, and number 
        of occupant moves. 
        The report must be submitted annually 
        beginning January 15, 2003. 
        (e) Section 6, sunset of uncodified 
        language, does not apply to paragraphs 
        (a) to (d).  Paragraphs (a) to (d) are 
        effective the day following final 
        enactment. 
        [WORKING FAMILY CREDIT.] (a) On a 
        regular basis, the commissioner of 
        revenue, with the assistance of the 
        commissioner of human services, shall 
        calculate the value of the refundable 
        portion of the Minnesota working family 
        credits provided under Minnesota 
        Statutes, section 290.0671, that 
        qualifies for federal reimbursement 
        from the temporary assistance to needy 
        families block grant.  The commissioner 
        of revenue shall provide the 
        commissioner of human services with 
        such expenditure records and 
        information as are necessary to support 
        draws of federal funds.  The 
        commissioner of human services shall 
        reimburse the commissioner of revenue 
        for the costs of providing the 
        information required by this paragraph. 
        (b) Federal TANF funds, as specified in 
        this paragraph, are appropriated to the 
        commissioner of human services based on 
        calculations under paragraph (a) of 
        working family tax credit expenditures 
        that qualify for reimbursement from the 
        TANF block grant for income tax refunds 
        payable in federal fiscal years 
        beginning October 1, 1999.  The draws 
        of federal TANF funds shall be made on 
        a regular basis based on calculations 
        of credit expenditures by the 
        commissioner of revenue.  Up to the 
        following amounts of federal TANF draws 
        are appropriated to the commissioner of 
        human services to deposit into the 
        general fund:  in fiscal year 2000, 
        $30,957,000 $20,000,000; and in fiscal 
        year 2001, $33,895,000 $40,449,000. 
        (d) General Assistance
                557,000    (3,134,000)
        (e) Minnesota Supplemental Aid
                324,000       323,000 
           Sec. 23.  [CORRECTION 14B.] Minnesota Statutes 1999 
        Supplement, section 256B.431, subdivision 28, as amended by Laws 
        2000, chapter 488, article 9, section 19, is amended to read: 
           Subd. 28.  [NURSING FACILITY RATE INCREASES BEGINNING JULY 
        1, 1999, AND JULY 1, 2000.] (a) For the rate years beginning 
        July 1, 1999, and July 1, 2000, the commissioner shall make 
        available to each nursing facility reimbursed under this section 
        or section 256B.434 an adjustment to the total operating payment 
        rate.  For nursing facilities reimbursed under this section or 
        section 256B.434, the July 1, 2000, operating payment rate 
        increases provided in this subdivision shall be applied to each 
        facility's June 30, 2000, operating payment rate.  For each 
        facility, total operating costs shall be separated into costs 
        that are compensation related and all other costs.  
        Compensation-related costs include salaries, payroll taxes, and 
        fringe benefits for all employees except management fees, the 
        administrator, and central office staff. 
           (b) For the rate year beginning July 1, 1999, the 
        commissioner shall make available a rate increase for 
        compensation-related costs of 4.843 percent and a rate increase 
        for all other operating costs of 3.446 percent. 
           (c) For the rate year beginning July 1, 2000, the 
        commissioner shall make available: 
           (1) a rate increase for compensation-related costs of 3.632 
        percent; 
           (2) an additional rate increase for each case mix payment 
        rate which must be used to increase the per-hour pay rate of all 
        employees except management fees, the administrator, and central 
        office staff by an equal dollar amount and to pay associated 
        costs for FICA, the Medicare tax, workers' compensation 
        premiums, and federal and state unemployment insurance, to be 
        calculated according to clauses (i) to (iii): 
           (i) the commissioner shall calculate the arithmetic mean of 
        the eleven June 30, 2000, operating rates for each facility; 
           (ii) the commissioner shall construct an array of nursing 
        facilities from highest to lowest, according to the arithmetic 
        mean calculated in clause (i).  A numerical rank shall be 
        assigned to each facility in the array.  The facility with the 
        highest mean shall be assigned a numerical rank of one.  The 
        facility with the lowest mean shall be assigned a numerical rank 
        equal to the total number of nursing facilities in the array.  
        All other facilities shall be assigned a numerical rank in 
        accordance with their position in the array; 
           (iii) the amount of the additional rate increase shall be 
        $1 plus an amount equal to $3.13 multiplied by the ratio of the 
        facility's numeric rank divided by the number of facilities in 
        the array; and 
           (3) a rate increase for all other operating costs of 2.585 
        percent.  
           Money received by a facility as a result of the additional 
        rate increase provided under clause (2) shall be used only for 
        wage increases implemented on or after July 1, 2000, and shall 
        not be used for wage increases implemented prior to that date. 
           (d) The payment rate adjustment for each nursing facility 
        must be determined under clause (1) or (2): 
           (1) for each nursing facility that reports salaries for 
        registered nurses, licensed practical nurses, aides, orderlies, 
        and attendants separately, the commissioner shall determine the 
        payment rate adjustment using the categories specified in 
        paragraph (a) multiplied by the rate increases specified in 
        paragraph (b) or (c), and then dividing the resulting amount by 
        the nursing facility's actual resident days.  In determining the 
        amount of a payment rate adjustment for a nursing facility 
        reimbursed under section 256B.434, the commissioner shall 
        determine the proportions of the facility's rates that are 
        compensation-related costs and all other operating costs based 
        on the facility's most recent cost report; and 
           (2) for each nursing facility that does not report salaries 
        for registered nurses, licensed practical nurses, aides, 
        orderlies, and attendants separately, the payment rate 
        adjustment shall be computed using the facility's total 
        operating costs, separated into the categories specified in 
        paragraph (a) in proportion to the weighted average of all 
        facilities determined under clause (1), multiplied by the rate 
        increases specified in paragraph (b) or (c), and then dividing 
        the resulting amount by the nursing facility's actual resident 
        days. 
           (e) A nursing facility may apply for the 
        compensation-related payment rate adjustment calculated under 
        this subdivision.  The application must be made to the 
        commissioner and contain a plan by which the nursing facility 
        will distribute the compensation-related portion of the payment 
        rate adjustment to employees of the nursing facility.  For 
        nursing facilities in which the employees are represented by an 
        exclusive bargaining representative, an agreement negotiated and 
        agreed to by the employer and the exclusive bargaining 
        representative constitutes the plan.  For the second rate year, 
        a negotiated agreement constitutes the plan only if the 
        agreement is finalized after the date of enactment of all rate 
        increases for the second rate year.  The commissioner shall 
        review the plan to ensure that the payment rate adjustment per 
        diem is used as provided in paragraphs (a) to (c).  To be 
        eligible, a facility must submit its plan for the compensation 
        distribution by December 31 each year.  A facility may amend its 
        plan for the second rate year by submitting a revised plan by 
        December 31, 2000.  If a facility's plan for compensation 
        distribution is effective for its employees after July 1 of the 
        year that the funds are available, the payment rate adjustment 
        per diem shall be effective the same date as its plan. 
           (f) A copy of the approved distribution plan must be made 
        available to all employees.  This must be done by giving each 
        employee a copy or by posting it in an area of the nursing 
        facility to which all employees have access.  If an employee 
        does not receive the compensation adjustment described in their 
        facility's approved plan and is unable to resolve the problem 
        with the facility's management or through the employee's union 
        representative, the employee may contact the commissioner at an 
        address or phone number provided by the commissioner and 
        included in the approved plan.  
           (g) If the reimbursement system under section 256B.435 is 
        not implemented until July 1, 2001, the salary adjustment per 
        diem authorized in subdivision 2i, paragraph (c), shall continue 
        until June 30, 2001.  
           (h) For the rate year beginning July 1, 1999, the following 
        nursing facilities shall be allowed a rate increase equal to 67 
        percent of the rate increase that would be allowed if 
        subdivision 26, paragraph (a), was not applied: 
           (1) a nursing facility in Carver county licensed for 33 
        nursing home beds and four boarding care beds; 
           (2) a nursing facility in Faribault county licensed for 159 
        nursing home beds on September 30, 1998; and 
           (3) a nursing facility in Houston county licensed for 68 
        nursing home beds on September 30, 1998. 
           (i) For the rate year beginning July 1, 1999, the following 
        nursing facilities shall be allowed a rate increase equal to 67 
        percent of the rate increase that would be allowed if 
        subdivision 26, paragraphs (a) and (b), were not applied: 
           (1) a nursing facility in Chisago county licensed for 135 
        nursing home beds on September 30, 1998; and 
           (2) a nursing facility in Murray county licensed for 62 
        nursing home beds on September 30, 1998. 
           (j) For the rate year beginning July 1, 1999, a nursing 
        facility in Hennepin county licensed for 134 beds on September 
        30, 1998, shall: 
           (1) have the prior year's allowable care-related per diem 
        increased by $3.93 and the prior year's other operating cost per 
        diem increased by $1.69 before adding the inflation in 
        subdivision 26, paragraph (d), clause (2); and 
           (2) be allowed a rate increase equal to 67 percent of the 
        rate increase that would be allowed if subdivision 26, 
        paragraphs (a) and (b), were not applied. 
           The increases provided in paragraphs (h), (i), and (j) 
        shall be included in the facility's total payment rates for the 
        purposes of determining future rates under this section or any 
        other section. 
           Sec. 24.  [CORRECTION 14C.] Minnesota Statutes 1998, 
        section 256B.501, subdivision 13, as added by Laws 2000, chapter 
        488, article 9, section 23, is amended to read: 
           Subd. 13.  [ICF/MR RATE INCREASES BEGINNING OCTOBER 1, 
        1999, AND OCTOBER 1, 2000.] (a) For the rate years beginning 
        October 1, 1999, and October 1, 2000, the commissioner shall 
        make available to each facility reimbursed under this section, 
        section 256B.5011, and Laws 1993, First Special Session chapter 
        1, article 4, section 11, an adjustment to the total operating 
        payment rate.  For each facility, total operating costs shall be 
        separated into costs that are compensation related and all other 
        costs.  "Compensation-related costs" means the facility's 
        allowable program operating cost category employee training 
        expenses and the facility's allowable salaries, payroll taxes, 
        and fringe benefits.  The term does not include these same 
        salary-related costs for both administrative or central office 
        employees. 
           For the purpose of determining the adjustment to be granted 
        under this subdivision, the commissioner must use the most 
        recent cost report that has been subject to desk audit. 
           (b) For the rate year beginning October 1, 1999, the 
        commissioner shall make available a rate increase for 
        compensation-related costs of 4.6 percent and a rate increase 
        for all other operating costs of 3.2 percent. 
           (c) For the rate year beginning October 1, 2000, the 
        commissioner shall make available: 
           (1) a rate increase for compensation related costs of 6.5 
        6.6 percent, 45 percent of which shall be used to increase the 
        per-hour pay rate of all employees except administrative and 
        central office employees by an equal dollar amount and to pay 
        associated costs for FICA, the Medicare tax, workers' 
        compensation premiums, and federal and state unemployment 
        insurance provided that this portion of the compensation-related 
        increase shall be used only for wage increases implemented on or 
        after October 1, 2000, and shall not be used for wage increases 
        implemented prior to that date; and 
           (2) a rate increase for all other operating costs of two 
        percent. 
           (d) For each facility, the commissioner shall determine the 
        payment rate adjustment using the categories specified in 
        paragraph (a) multiplied by the rate increases specified in 
        paragraph (b) or (c), and then dividing the resulting amount by 
        the facility's actual resident days.  
           (e) Any facility whose payment rates are governed by 
        closure agreements, receivership agreements, or Minnesota Rules, 
        part 9553.0075, are not eligible for an adjustment otherwise 
        granted under this subdivision.  
           (f) A facility may apply for the compensation-related 
        payment rate adjustment calculated under this subdivision.  The 
        application must be made to the commissioner and contain a plan 
        by which the facility will distribute the compensation-related 
        portion of the payment rate adjustment to employees of the 
        facility.  For facilities in which the employees are represented 
        by an exclusive bargaining representative, an agreement 
        negotiated and agreed to by the employer and the exclusive 
        bargaining representative constitutes the plan.  For the second 
        rate year, a negotiated agreement may constitute the plan only 
        if the agreement is finalized after the date of enactment of all 
        rate increases for the second rate year.  The commissioner shall 
        review the plan to ensure that the payment rate adjustment per 
        diem is used as provided in this subdivision.  To be eligible, a 
        facility must submit its plan for the compensation distribution 
        by December 31 each year.  A facility may amend its plan for the 
        second rate year by submitting a revised plan by December 31, 
        2000.  If a facility's plan for compensation distribution is 
        effective for its employees after October 1 of the year that the 
        funds are available, the payment rate adjustment per diem shall 
        be effective the same date as its plan. 
           (g) A copy of the approved distribution plan must be made 
        available to all employees.  This must be done by giving each 
        employee a copy or by posting it in an area of the facility to 
        which all employees have access.  If an employee does not 
        receive the compensation adjustment described in their 
        facility's approved plan and is unable to resolve the problem 
        with the facility's management or through the employee's union 
        representative, the employee may contact the commissioner at an 
        address or telephone number provided by the commissioner and 
        included in the approved plan.  
           Sec. 25.  [CORRECTION 14D.] Laws 1999, chapter 245, article 
        1, section 2, subdivision 8, as amended by Laws 2000, chapter 
        488, article 9, section 29, is amended to read: 
        Subd. 8.  Continuing Care and 
        Community Support Grants
        General           1,174,195,000 1,259,767,000
        Lottery Prize         1,158,000     1,158,000
        The amounts that may be spent from this 
        appropriation for each purpose are as 
        follows: 
        (a) Community Social Services
        Block Grants
            42,597,000     43,498,000 
        [CSSA TRADITIONAL APPROPRIATION.] 
        Notwithstanding Minnesota Statutes, 
        section 256E.06, subdivisions 1 and 2, 
        the appropriations available under that 
        section in fiscal years 2000 and 2001 
        must be distributed to each county 
        proportionately to the aid received by 
        the county in calendar year 1998.  The 
        commissioner, in consultation with 
        counties, shall study the formula 
        limitations in subdivision 2 of that 
        section, and report findings and any 
        recommendations for revision of the 
        CSSA formula and its formula limitation 
        provisions to the legislature by 
        January 15, 2000. 
        (b) Consumer Support Grants
             1,123,000      1,123,000 
        (c) Aging Adult Service Grants
             7,965,000      7,765,000 
        [LIVING-AT-HOME/BLOCK NURSE PROGRAM.] 
        Of the general fund appropriation, 
        $120,000 in fiscal year 2000 and 
        $120,000 in fiscal year 2001 is for the 
        commissioner to provide funding to six 
        additional living-at-home/block nurse 
        programs.  This appropriation shall 
        become part of the base for the 
        2002-2003 biennium. 
        [MINNESOTA SENIOR SERVICE CORPS.] Of 
        this appropriation, $160,000 for the 
        biennium is from the general fund to 
        the commissioner for the following 
        purposes: 
        (a) $40,000 in fiscal year 2000 and 
        $40,000 in fiscal year 2001 is to 
        increase the hourly stipend by ten 
        cents per hour in the foster 
        grandparent program, the retired and 
        senior volunteer program, and the 
        senior companion program. 
        (b) $40,000 in fiscal year 2000 and 
        $40,000 in fiscal year 2001 is for a 
        grant to the tri-valley opportunity 
        council in Crookston to expand services 
        in the ten-county area of northwestern 
        Minnesota. 
        (c) This appropriation shall become 
        part of the base for the 2002-2003 
        biennium.
        [HEALTH INSURANCE COUNSELING.] Of this 
        appropriation, $100,000 in fiscal year 
        2000 and $100,000 in fiscal year 2001 
        is from the general fund to the 
        commissioner to transfer to the board 
        on aging for the purpose of awarding 
        health insurance counseling and 
        assistance grants to the area agencies 
        on aging providing state-funded health 
        insurance counseling services.  Access 
        to health insurance counseling programs 
        shall be provided by the senior linkage 
        line service of the board on aging and 
        the area agencies on aging. The board 
        on aging shall explore opportunities 
        for obtaining alternative funding from 
        nonstate sources, including 
        contributions from individuals seeking 
        health insurance counseling services.  
        This is a one-time appropriation and 
        shall not become part of base level 
        funding for this activity for the 
        2002-2003 biennium. 
        (d) Deaf and Hard-of-Hearing 
        Services Grants
             1,859,000      1,760,000 
        [SERVICES TO DEAF PERSONS WITH MENTAL 
        ILLNESS.] Of this appropriation, 
        $100,000 each year is to the 
        commissioner for a grant to a nonprofit 
        agency that currently serves deaf and 
        hard-of-hearing adults with mental 
        illness through residential programs 
        and supported housing outreach.  The 
        grant must be used to operate a 
        community support program for persons 
        with mental illness that is 
        communicatively accessible for persons 
        who are deaf or hard-of-hearing.  This 
        is a one-time appropriation and shall 
        not become part of base level funding 
        for this activity for the 2002-2003 
        biennium. 
        [DEAF-BLIND ORIENTATION AND MOBILITY 
        SERVICES.] Of this appropriation, 
        $120,000 for the biennium is to the 
        commissioner for a grant to DeafBlind 
        Services Minnesota to hire an 
        orientation, mobility, and deaf-blind 
        specialist to work with deaf-blind 
        people and for related costs.  The 
        specialist will provide services to 
        deaf-blind Minnesotans, and training to 
        teachers and rehabilitation counselors, 
        on a statewide basis.  This 
        appropriation shall become part of base 
        level funding for this activity for the 
        2002-2003 biennium only and shall not 
        be part of the base for the 2004-2005 
        biennium.  Notwithstanding section 13, 
        this paragraph expires on June 30, 2003.
        (e) Mental Health Grants
        General          45,169,000     46,528,000 
        Lottery Prize     1,158,000      1,158,000 
        [CRISIS HOUSING.] Of the general fund 
        appropriation, $126,000 in fiscal year 
        2000 and $150,000 in fiscal year 2001 
        is to the commissioner for the adult 
        mental illness crisis housing 
        assistance program under Minnesota 
        Statutes, section 245.99.  This 
        appropriation shall become part of the 
        base for the 2002-2003 biennium. 
        [ADOLESCENT COMPULSIVE GAMBLING GRANT.] 
        $150,000 in fiscal year 2000 and 
        $150,000 in fiscal year 2001 is 
        appropriated from the lottery prize 
        fund created under Minnesota Statutes, 
        section 349A.10, subdivision 2, to the 
        commissioner for the purposes of a 
        grant to a compulsive gambling council 
        located in St. Louis county for a 
        statewide compulsive gambling 
        prevention and education project for 
        adolescents. 
        (f) Developmental Disabilities
        Community Support Grants
           9,323,000     10,958,000 
        [CRISIS INTERVENTION PROJECT.] Of this 
        appropriation, $40,000 in fiscal year 
        2000 is to the commissioner for the 
        action, support, and prevention project 
        of southeastern Minnesota. 
        [SILS FUNDING.] Of this appropriation, 
        $1,000,000 each year is for 
        semi-independent living services under 
        Minnesota Statutes, section 252.275. 
        This appropriation must be added to the 
        base level funding for this activity 
        for the 2002-2003 biennium.  Unexpended 
        funds for fiscal year 2000 do not 
        cancel but are available to the 
        commissioner for this purpose in fiscal 
        year 2001. 
        [FAMILY SUPPORT GRANTS.] Of this 
        appropriation, $1,000,000 in fiscal 
        year 2000 and $2,500,000 in fiscal year 
        2001 is to increase the availability of 
        family support grants under Minnesota 
        Statutes, section 252.32.  This 
        appropriation must be added to the base 
        level funding for this activity for the 
        2002-2003 biennium.  Unexpended funds 
        for fiscal year 2000 do not cancel but 
        are available to the commissioner for 
        this purpose in fiscal year 2001. 
        (g) Medical Assistance Long-Term 
        Care Waivers and Home Care
           349,052,000    414,240,000 
        [PROVIDER RATE INCREASES.] (a) The 
        commissioner shall increase 
        reimbursement rates by four percent the 
        first year of the biennium and by 
        5.9 six percent the second year for the 
        providers listed in paragraph (b).  The 
        increases shall be effective for 
        services rendered on or after July 1 of 
        each year. 
        (b) The rate increases described in 
        this section shall be provided to home 
        and community-based waivered services 
        for persons with mental retardation or 
        related conditions under Minnesota 
        Statutes, section 256B.501; home and 
        community-based waivered services for 
        the elderly under Minnesota Statutes, 
        section 256B.0915; waivered services 
        under community alternatives for 
        disabled individuals under Minnesota 
        Statutes, section 256B.49; community 
        alternative care waivered services 
        under Minnesota Statutes, section 
        256B.49; traumatic brain injury 
        waivered services under Minnesota 
        Statutes, section 256B.49; nursing 
        services and home health services under 
        Minnesota Statutes, section 256B.0625, 
        subdivision 6a; personal care services 
        and nursing supervision of personal 
        care services under Minnesota Statutes, 
        section 256B.0625, subdivision 19a; 
        private-duty nursing services under 
        Minnesota Statutes, section 256B.0625, 
        subdivision 7; day training and 
        habilitation services for adults with 
        mental retardation or related 
        conditions under Minnesota Statutes, 
        sections 252.40 to 252.46; alternative 
        care services under Minnesota Statutes, 
        section 256B.0913; adult residential 
        program grants under Minnesota Rules, 
        parts 9535.2000 to 9535.3000; adult and 
        family community support grants under 
        Minnesota Rules, parts 9535.1700 to 
        9535.1760; semi-independent living 
        services under Minnesota Statutes, 
        section 252.275, including SILS funding 
        under county social services grants 
        formerly funded under Minnesota 
        Statutes, chapter 256I; and community 
        support services for deaf and 
        hard-of-hearing adults with mental 
        illness who use or wish to use sign 
        language as their primary means of 
        communication. 
        (c) The commissioner shall increase 
        reimbursement rates by two percent for 
        the group residential housing 
        supplementary service rate under 
        Minnesota Statutes, section 256I.05, 
        subdivision 1a, for services rendered 
        on or after January 1, 2000. 
        (d) Providers that receive a rate 
        increase under this section shall use 
        at least 80 percent of the additional 
        revenue the first year to increase the 
        compensation paid to employees other 
        than the administrator and central 
        office staff.  In the second year, 
        providers must use the additional 
        revenue as follows: 
        (1) at least 41 40 percent to increase 
        the compensation paid to employees 
        other than the administrator and 
        central office staff; 
        (2) at least 49 50 percent to increase 
        the per-hour pay rate of all employees 
        other than the administrator and 
        central office staff by an equal dollar 
        amount and to pay associated costs for 
        FICA, the Medicare tax, workers' 
        compensation premiums, and federal and 
        state unemployment insurance.  For 
        public employees, the portion of this 
        increase reserved to increase the 
        per-hour pay rate for certain staff by 
        an equal dollar amount shall be 
        available and pay rates shall be 
        increased only to the extent that they 
        comply with laws governing public 
        employees collective bargaining.  Money 
        received by a provider as a result of 
        the additional rate increase described 
        in this clause shall be used only for 
        wage increases implemented on or after 
        July 1, 2000, and shall not be used for 
        wage increases implemented prior to 
        that date; and 
        (3) up to ten percent for other 
        purposes. 
        (e) A copy of the provider's plan for 
        complying with paragraph (d) must be 
        made available to all employees.  This 
        must be done by giving each employee a 
        copy or by posting it in an area of the 
        provider's operation to which all 
        employees have access.  If an employee 
        does not receive the salary adjustment 
        described in the plan and is unable to 
        resolve the problem with the provider, 
        the employee may contact the employee's 
        union representative.  If the employee 
        is not covered by a collective 
        bargaining agreement, the employee may 
        contact the commissioner at a phone 
        number provided by the commissioner and 
        included in the provider's plan. 
        (f) Section 13, sunset of uncodified 
        language, does not apply to this 
        provision. 
        [DEVELOPMENTAL DISABILITIES WAIVER 
        SLOTS.] Of this appropriation, 
        $1,746,000 in fiscal year 2000 and 
        $4,683,000 in fiscal year 2001 is to 
        increase the availability of home and 
        community-based waiver services for 
        persons with mental retardation or 
        related conditions.  
        (h) Medical Assistance Long-Term
        Care Facilities
           546,228,000    558,349,000 
        [MORATORIUM EXCEPTIONS.] Of this 
        appropriation, $250,000 in fiscal year 
        2000 and $250,000 in fiscal year 2001 
        is from the general fund to the 
        commissioner for the medical assistance 
        costs of moratorium exceptions approved 
        by the commissioner of health under 
        Minnesota Statutes, section 144A.073.  
        Unexpended money appropriated for 
        fiscal year 2000 shall not cancel but 
        shall be available for fiscal year 2001.
        [NURSING FACILITY OPERATED BY THE RED 
        LAKE BAND OF CHIPPEWA INDIANS.] (1) The 
        medical assistance payment rates for 
        the 47-bed nursing facility operated by 
        the Red Lake Band of Chippewa Indians 
        must be calculated according to 
        allowable reimbursement costs under the 
        medical assistance program, as 
        specified in Minnesota Statutes, 
        section 246.50, and are subject to the 
        facility-specific Medicare upper limits.
        (2) In addition, the commissioner shall 
        make available an operating payment 
        rate adjustment effective July 1, 1999, 
        and July 1, 2000, that is equal to the 
        adjustment provided under Minnesota 
        Statutes, section 256B.431, subdivision 
        28.  The commissioner must use the 
        facility's final 1998 and 1999 Medicare 
        cost reports, respectively, to 
        calculate the adjustment.  The 
        adjustment shall be available based on 
        a plan submitted and approved according 
        to Minnesota Statutes, section 
        256B.431, subdivision 28.  Section 13, 
        sunset of uncodified language, does not 
        apply to this paragraph. 
        [COSTS RELATED TO FACILITY 
        CERTIFICATION.] Of this appropriation, 
        $168,000 is for the costs of providing 
        one-half the state share of medical 
        assistance reimbursement for 
        residential and day habilitation 
        services under article 3, section 39.  
        This amount is available the day 
        following final enactment. 
        (i) Alternative Care Grants  
        General              60,873,000    59,981,000
        [ALTERNATIVE CARE TRANSFER.] Any money 
        allocated to the alternative care 
        program that is not spent for the 
        purposes indicated does not cancel but 
        shall be transferred to the medical 
        assistance account. 
        [PREADMISSION SCREENING AMOUNT.] The 
        preadmission screening payment to all 
        counties shall continue at the payment 
        amount in effect for fiscal year 1999. 
        [ALTERNATIVE CARE APPROPRIATION.] The 
        commissioner may expend the money 
        appropriated for the alternative care 
        program for that purpose in either year 
        of the biennium. 
        (j) Group Residential Housing
        General              66,477,000    70,390,000
        [GROUP RESIDENTIAL FACILITY FOR WOMEN 
        IN RAMSEY COUNTY.] (a) Notwithstanding 
        Minnesota Statutes 1998, section 
        256I.05, subdivision 1d, the new 23-bed 
        group residential facility for women in 
        Ramsey county, with approval by the 
        county agency, may negotiate a 
        supplementary service rate in addition 
        to the board and lodging rate for 
        facilities licensed and registered by 
        the Minnesota department of health 
        under Minnesota Statutes, section 
        15.17.  The supplementary service rate 
        shall not exceed $564 per person per 
        month and the total rate may not exceed 
        $1,177 per person per month. 
        (b) Of the general fund appropriation, 
        $19,000 in fiscal year 2000 and $38,000 
        in fiscal year 2001 is to the 
        commissioner for the costs associated 
        with paragraph (a).  This appropriation 
        shall become part of the base for the 
        2002-2003 biennium. 
        (k) Chemical Dependency
        Entitlement Grants
        General              36,751,000    38,847,000
        (l) Chemical Dependency 
        Nonentitlement Grants
        General               6,778,000     6,328,000
        [CHEMICAL DEPENDENCY SERVICES.] Of this 
        appropriation, $450,000 in fiscal year 
        2000 is to the commissioner for 
        chemical dependency services to persons 
        who qualify under Minnesota Statutes, 
        section 254B.04, subdivision 1, 
        paragraph (b). 
           Sec. 26.  [CORRECTION 14E.] Laws 2000, chapter 488, article 
        9, section 37, is amended to read: 
           Sec. 37.  [INCONSISTENT AMENDMENTS.] 
           The amendments to Minnesota Statutes, section 256B.501, 
        subdivision 13, in section 10 23 prevail over the amendments to 
        that section in 2000 H.F. No. 3557, if enacted. 
           Sec. 27.  [CORRECTION 15.] Laws 2000, chapter 463, section 
        23, subdivision 2, is amended to read:  
           Subd. 2.  [GAME AND FISH FUND.] (a) $3,591,000 in fiscal 
        year 2001 is appropriated from the game and fish fund to the 
        commissioner of natural resources for fish and wildlife 
        management.  At least 87 percent of this appropriation must be 
        allocated for field operations. 
           (b) $825,000 in fiscal year 2001 is appropriated from the 
        game and fish fund is to the commissioner of natural resources 
        for enforcement of natural resources laws. 
           (c) $12,304,000 in fiscal year 2001 is appropriated from 
        the heritage enhancement account in the game and fish fund to 
        the commissioner of natural resources for game and fish projects 
        on public and private lands.  This is a one-time appropriation 
        and is from the revenue deposited to the game and fish fund 
        under Minnesota Statutes, section 297A.44, subdivision 1, 
        paragraph (e), clause (1), and is subject to the restrictions 
        contained in paragraph (e). 
           Sec. 28.  [CORRECTION 16.] Laws 2000, chapter 489, article 
        2, section 34, is amended to read:  
           Sec. 34.  [TRAINING AND EXPERIENCE REPLACEMENT REVENUE.] 
           (a) For fiscal year 2001 only, a school district's training 
        and experience replacement revenue equals the sum of the 
        following: 
           (1) the ratio of the amount of training and experience 
        revenue the district would have received for fiscal year 1999 
        calculated using the training and experience index in Minnesota 
        Statutes 1996, section 124A.04, to its resident pupil units for 
        that year, times the district's adjusted marginal cost pupil 
        units for fiscal year 2001, times .06 .056; plus 
           (2) the difference between .47 times the training and 
        experience revenue the district would have received for fiscal 
        year 1999, calculated using the training and experience index in 
        Minnesota Statutes 1996, section 124A.04, and the amount 
        calculated in Minnesota Statutes, section 126C.10, subdivision 
        5, for fiscal year 2001, but not less than zero. 
           (b) This revenue is paid entirely in fiscal year 2001. 
           Sec. 29.  [CORRECTION 16A.] Minnesota Statutes 1999 
        Supplement, section 123B.54, as amended by Laws 2000, chapter 
        489, article 5, section 4, is amended to read: 
           123B.54 [DEBT SERVICE APPROPRIATION.] 
           (a) $33,141,000 in fiscal year 2000, $29,400,000 in fiscal 
        year 2001, $26,934,000 in fiscal year 2002, 
        and $25,540,000 $24,540,000 in fiscal year 2003 and each year 
        thereafter is appropriated from the general fund to the 
        commissioner of children, families, and learning for payment of 
        debt service equalization aid under section 123B.53.  
           (b) The appropriations in paragraph (a) must be reduced by 
        the amount of any money specifically appropriated for the same 
        purpose in any year from any state fund. 
           Sec. 30.  [CORRECTION 16B.] Laws 1999, chapter 241, article 
        2, section 60, subdivision 14, as amended by Laws 2000, chapter 
        489, article 3, section 21, is amended to read: 
           Subd. 14.  [SPECIAL EDUCATION EXCESS COST AID.] For excess 
        cost aid: 
                         $66,032,000   .....     2000 
                         $89,072,000 $89,137,000  .....     2001 
           The 2000 appropriation includes $4,693,000 for 1999 and 
        $61,339,000 for 2000.  
           The 2001 appropriation includes $6,815,000 for 2000 
        and $82,257,000 $82,322,000 for 2001. 
           Sec. 31.  [CORRECTION 16C.] Laws 2000, chapter 489, article 
        5, section 28, subdivision 4, is amended to read: 
           Subd. 4.  [ONE-TIME DEFERRED MAINTENANCE AID.] For one-time 
        deferred maintenance aid: 
             $23,260,000 $23,360,000    .....     2001
           This is a one-time appropriation. 
           Sec. 32.  [CORRECTION 16D.] Minnesota Statutes 1999 
        Supplement, section 125A.76, subdivision 1, as amended by Laws 
        2000, chapter 489, article 3, section 11, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] For the purposes of this 
        section, the definitions in this subdivision apply. 
           (a) "Base year" for fiscal year 1998 and later fiscal years 
        means the second fiscal year preceding the fiscal year for which 
        aid will be paid. 
           (b) "Basic revenue" has the meaning given it in section 
        126C.10, subdivision 2.  For the purposes of computing basic 
        revenue pursuant to this section, each child with a disability 
        shall be counted as prescribed in section 126C.05, subdivision 1.
           (c) "Essential personnel" means teachers, related services, 
        and support services staff providing direct services to students.
           (d) "Average daily membership" has the meaning given it in 
        section 126C.05. 
           (e) "Program growth factor" means 1.08 for fiscal year 
        2002, and 1.047 1.046 for fiscal year 2003 and later. 
           Sec. 33.  [CORRECTION 17.] Minnesota Statutes 1999 
        Supplement, section 245.4871, subdivision 4, as amended by Laws 
        2000, chapter 474, section 4, is amended to read: 
           Subd. 4.  [CASE MANAGEMENT SERVICE PROVIDER.] (a) "Case 
        management service provider" means a case manager or case 
        manager associate employed by the county or other entity 
        authorized by the county board to provide case management 
        services specified in subdivision 3 for the child with severe 
        emotional disturbance and the child's family.  
           (b) A case manager must: 
           (1) have experience and training in working with children; 
           (2) have at least a bachelor's degree in one of the 
        behavioral sciences or a related field including, but not 
        limited to, social work, psychology, or nursing from an 
        accredited college or university or meet the requirements of 
        paragraph (d); 
           (3) have experience and training in identifying and 
        assessing a wide range of children's needs; 
           (4) be knowledgeable about local community resources and 
        how to use those resources for the benefit of children and their 
        families; and 
           (5) meets the supervision and continuing education 
        requirements of paragraphs (e), (f), and (g), as applicable. 
           (c) A case manager may be a member of any professional 
        discipline that is part of the local system of care for children 
        established by the county board. 
           (d) A case manager without a bachelor's degree must meet 
        one of the requirements in clauses (1) to (3):  
           (1) have three or four years of experience as a case 
        manager associate; 
           (2) be a registered nurse without a bachelor's degree who 
        has a combination of specialized training in psychiatry and work 
        experience consisting of community interaction and involvement 
        or community discharge planning in a mental health setting 
        totaling three years; or 
           (3) be a person who qualified as a case manager under the 
        1998 department of human services waiver provision and meets the 
        continuing education, supervision, and mentoring requirements in 
        this section. 
           (e) A case manager with at least 2,000 hours of supervised 
        experience in the delivery of mental health services to children 
        must receive regular ongoing supervision and clinical 
        supervision totaling 38 hours per year, of which at least one 
        hour per month must be clinical supervision regarding individual 
        service delivery with a case management supervisor.  The other 
        26 hours of supervision may be provided by a case manager with 
        two years of experience.  Group supervision may not constitute 
        more than one-half of the required supervision hours. 
           (f) A case manager without 2,000 hours of supervised 
        experience in the delivery of mental health services to children 
        with emotional disturbance must: 
           (1) begin 40 hours of training approved by the commissioner 
        of human services in case management skills and in the 
        characteristics and needs of children with severe emotional 
        disturbance before beginning to provide case management 
        services; and 
           (2) receive clinical supervision regarding individual 
        service delivery from a mental health professional at least one 
        hour each week until the requirement of 2,000 hours of 
        experience is met. 
           (g) A case manager who is not licensed, registered, or 
        certified by a health-related licensing board must receive 30 
        hours of continuing education and training in severe emotional 
        disturbance and mental health services annually.  
           (h) Clinical supervision must be documented in the child's 
        record.  When the case manager is not a mental health 
        professional, the county board must provide or contract for 
        needed clinical supervision. 
           (i) The county board must ensure that the case manager has 
        the freedom to access and coordinate the services within the 
        local system of care that are needed by the child. 
           (j) A case manager associate (CMA) must: 
           (1) work under the direction of a case manager or case 
        management supervisor; 
           (2) be at least 21 years of age; 
           (3) have at least a high school diploma or its equivalent; 
        and 
           (4) meet one of the following criteria: 
           (i) have an associate of arts degree in one of the 
        behavioral sciences or human services; 
           (ii) be a registered nurse without a bachelor's degree; 
           (iii) have three years of life experience as a primary 
        caregiver to a child with serious emotional disturbance as 
        defined in section 245.4871, subdivision 6, within the previous 
        ten years; 
           (iv) have 6,000 hours work experience as a nondegreed state 
        hospital technician; or 
           (v) be a mental health practitioner as defined in section 
        245.462, subdivision 26, clause (2). 
           Individuals meeting one of the criteria in items (i) to 
        (iv) may qualify as a case manager after four years of 
        supervised work experience as a case manager associate.  
        Individuals meeting the criteria in item (v) may qualify as a 
        case manager after three years of supervised experience as a 
        case manager associate. 
           (k) Case manager associates must meet the following 
        supervision, mentoring, and continuing education requirements; 
           (1) have 40 hours of preservice training described under 
        paragraph (f), clause (1); 
           (2) receive at least 40 hours of continuing education in 
        severe emotional disturbance and mental health service annually; 
        and 
           (3) receive at least five hours of mentoring per week from 
        a case management mentor.  A "case management mentor" means a 
        qualified, practicing case manager or case management supervisor 
        who teaches or advises and provides intensive training and 
        clinical supervision to one or more case manager associates.  
        Mentoring may occur while providing direct services to consumers 
        in the office or in the field and may be provided to individuals 
        or groups of case manager associates.  At least two mentoring 
        hours per week must be individual and face-to-face. 
           (l) A case management supervisor must meet the criteria for 
        a mental health professional as specified in section 245.4871, 
        subdivision 27. 
           (m) An immigrant who does not have the qualifications 
        specified in this subdivision may provide case management 
        services to child immigrants with severe emotional disturbance 
        of the same ethnic group as the immigrant if the person:  
           (1) is currently enrolled in and is actively pursuing 
        credits toward the completion of a bachelor's degree in one of 
        the behavioral sciences or related fields at an accredited 
        college or university; 
           (2) completes 40 hours of training as specified in this 
        subdivision; and 
           (3) receives clinical supervision at least once a week 
        until the requirements of obtaining a bachelor's degree and 
        2,000 hours of supervised experience are met. 
           Sec. 34.  [CORRECTION 18.] 
           Laws 2000, chapter 492, article 1, section 7, subdivision 
        31, is repealed. 
           Sec. 35.  [CORRECTION 19.] Laws 2000, chapter 429, section 
        1, is amended to read: 
           Section 1.  [INCOME EXCLUSION OR DISREGARD.] 
           (a) The earned income that a temporary census employee for 
        the 2000 census receives from the United States Census Bureau is 
        excluded from income under Minnesota Statutes, sections 
        256B.056, subdivision 4 1a; 256D.03, subdivision 3; 256J.21, 
        subdivision 2; and 256L.01, subdivision 5, and disregarded as 
        income under Minnesota Statutes, sections 256D.06, subdivision 
        1; and 256D.435, subdivision 5. 
           (b) An income exclusion or disregard under paragraph (a) 
        applies to a person receiving benefits on or before March 1, 
        2000, under Minnesota Statutes, chapter 256B, 256J, or 256L, or 
        sections 256D.03, subdivision 3, 256D.06, or 256D.33 to 256D.54. 
           Sec. 36.  [CORRECTION 21.] Laws 2000, chapter 489, article 
        6, section 44, subdivision 1, is amended to read: 
           Subdivision 1.  [LABOR DAY START.] Notwithstanding 
        Minnesota Statutes, section 120A.40, paragraph (a), for the 
        2000-2001 school year only, a district must not begin the 
        elementary or secondary school year prior to Labor Day. 
           Sec. 37.  [CORRECTION 24.] Laws 2000, chapter 492, article 
        1, section 12, subdivision 10, is amended to read: 
        Subd. 10.  Capitol Building Predesign                   300,000
        To predesign the phased restoration of 
        remaining areas in the capitol building.
        The commissioner of administration 
        shall appoint a restoration advisory 
        committee, which must include any 
        members or employees of the senate 
        named by the chair of the committee on 
        rules and administration, and any 
        members or employees of the house named 
        by the speaker of the house, to advise 
        the commissioner on the expenditure of 
        this appropriation. 
           Sec. 38.  [CORRECTION 25.] [REPEALER.] 
           Laws 1999, chapter 241, article 1, section 64, is repealed 
        effective the day following final enactment. 
           Sec. 39.  [CORRECTION 26.] Laws 2000, chapter 488, article 
        8, section 2, subdivision 6, is amended to read: 
        Subd. 6.  Economic Support Grants
            30,509,000     25,368,000                 
        The amounts that may be spent from this 
        appropriation for each purpose are as 
        follows: 
        [ASSISTANCE TO FAMILIES GRANTS TANF 
        FORECAST ADJUSTMENT.] The federal 
        Temporary Assistance to Needy Families 
        (TANF) block grant fund appropriated to 
        the commissioner of human services in 
        Laws 1999, chapter 245, article 1, 
        section 2, subdivision 10, for MFIP 
        cash grants are reduced by $37,513,000 
        in fiscal year 2000 and $30,217,000 in 
        fiscal year 2001. 
        [FEDERAL TANF FUNDS.] (1) In addition 
        to the Federal Temporary Assistance for 
        Needy Families (TANF) block grant funds 
        appropriated to the commissioner of 
        human services in Laws 1999, chapter 
        245, article 1, section 2, subdivision 
        10, federal TANF funds are appropriated 
        to the commissioner in amounts up to 
        $20,000,000 in fiscal year 2000 and 
        $80,440,000 in fiscal year 2001.  In 
        addition to these funds, the 
        commissioner may draw or transfer any 
        other appropriations of federal TANF 
        funds or transfers of federal TANF 
        funds that are enacted into state law. 
        (2) Of the amounts in clause (1), 
        $19,680,000 in fiscal year 2001 is for 
        the local intervention grants program 
        under Minnesota Statutes, section 
        256J.625 and related grant programs and 
        shall be expended as follows: 
        (a) $500,000 in fiscal year 2001 is for 
        a grant to the Southeast Asian MFIP 
        services collaborative to replicate in 
        a second location an existing model of 
        an intensive intervention transitional 
        employment training project which 
        serves TANF-eligible recipients and 
        which moves refugee and immigrant 
        welfare recipients unto unsubsidized 
        employment and leads to economic 
        self-sufficiency.  This is a one-time 
        appropriation. 
        (b) $500,000 in fiscal year 2001 is for 
        nontraditional career assistance and 
        training programs under Minnesota 
        Statutes, section 256K.30, subdivision 
        4.  This is a one-time appropriation. 
        (c) $18,680,000 is for local 
        intervention grants for 
        self-sufficiency program under 
        Minnesota Statutes, section 256J.625.  
        For fiscal years 2002 and 2003 the 
        commissioner of finance shall ensure 
        that the base level funding for the 
        local intervention grants program is 
        $27,180,000 each year. 
        (3) Of the amounts in clause (2), 
        paragraph (c) for local intervention 
        grants, $7,000,000 in fiscal year 2001 
        shall be transferred to the 
        commissioner of health for distribution 
        to county boards according to the 
        formula in Minnesota Statutes, section 
        256J.625, subdivision 3, to be used by 
        county public health boards to serve 
        families with incomes at or below 200 
        percent of the federal poverty 
        guidelines, in the manner specified by 
        Minnesota Statutes, section 145A.16, 
        subdivision 3, clauses (2) through 
        (6).  Training, evaluation and 
        technical assistance shall be provided 
        in accordance with Minnesota Statutes, 
        section 145A.16, subdivisions 5 to 7.  
        For fiscal years 2002 and 2003 the 
        commissioner of finance shall ensure 
        that the base level funding for this 
        activity is $7,000,000 each year. 
        (4) Of the amounts in clause (1), 
        $250,000 in fiscal year 2001 is 
        appropriated to the commissioner to 
        contract with the board of trustees of 
        the Minnesota state colleges and 
        universities to provide tuition waivers 
        to employees of health care and human 
        services providers located in the state 
        that are members of qualifying 
        consortia operating under Minnesota 
        Statutes, sections 116L.10 to 116L.15.  
        (5) Of the amounts in clause (1), 
        $320,000 in fiscal year 2001 is for 
        training job counselors about the MFIP 
        program.  For fiscal years 2002 and 
        2003 the commissioner of finance shall 
        ensure that the base level funding for 
        employment services includes $320,000 
        each year for this activity.  The 
        appropriations in this clause shall not 
        become part of the base for the 
        2004-2005 biennium. 
        (6) Of the amounts in clause (1), 
        $1,000,000 in fiscal year 2001 is for 
        out-of-wedlock pregnancy prevention 
        funds to serve children in 
        TANF-eligible families under Minnesota 
        Statutes, section 256K.35. For fiscal 
        years 2002 and 2003 the commissioner of 
        finance shall ensure that the base 
        level funding for this program is 
        $1,000,000 each year.  The 
        appropriations in this clause shall not 
        become part of the base for the 
        2004-2005 biennium. 
        (7) Of the amounts in clause (1), 
        $1,000,000 in fiscal year 2001 is to 
        provide services to TANF-eligible 
        families who are participating in the 
        supportive housing and managed care 
        pilot project under Minnesota Statutes, 
        section 256K.25.  For fiscal years 2002 
        and 2003 the commissioner of finance 
        shall ensure that the base level 
        funding for this project is $1,000,000 
        each year.  The appropriations in this 
        clause shall not become part of the 
        base for this project for the 2004-2005 
        biennium. 
        [TANF TRANSFER TO SOCIAL SERVICES.] 
        $7,500,000 is transferred from the 
        state's federal TANF block grant to the 
        state's federal Title XX block grant in 
        fiscal year 2001 and in fiscal year 
        2002, for purposes of increasing 
        services for families with children 
        whose incomes are at or below 200 
        percent of the federal poverty 
        guidelines.  Notwithstanding section 6, 
        this paragraph expires June 30, 2002. 
        [TANF MOE.] (a) In order to meet the 
        basic maintenance of effort (MOE) 
        requirements of the TANF block grant 
        specified under United States Code, 
        title 42, section 609(a)(7), the 
        commissioner may only report nonfederal 
        money expended for allowable activities 
        listed in the following clauses as TANF 
        MOE expenditures: 
        (1) MFIP cash and food assistance 
        benefits under Minnesota Statutes, 
        chapter 256J; 
        (2) the child care assistance programs 
        under Minnesota Statutes, sections 
        119B.03 and 119B.05, and county child 
        care administrative costs under 
        Minnesota Statutes, section 119B.15; 
        (3) state and county MFIP 
        administrative costs under Minnesota 
        Statutes, chapters 256J and 256K; 
        (4) state, county, and tribal MFIP 
        employment services under Minnesota 
        Statutes, chapters 256J and 256K; and 
        (5) expenditures made on behalf of 
        noncitizen MFIP recipients who qualify 
        for the medical assistance without 
        federal financial participation program 
        under Minnesota Statutes, section 
        256B.06, subdivision 4, paragraphs (d), 
        (e), and (j). 
        (b) The commissioner shall ensure that 
        sufficient qualified nonfederal 
        expenditures are made each year to meet 
        the state's TANF MOE requirements.  For 
        the activities listed in paragraph (a), 
        clauses (2) to (6), the commissioner 
        may only report expenditures that are 
        excluded from the definition of 
        assistance under Code of Federal 
        Regulations, title 45, section 260.31.  
        If nonfederal expenditures for the 
        programs and purposes listed in 
        paragraph (a) are insufficient to meet 
        the state's TANF MOE requirements, the 
        commissioner shall recommend additional 
        allowable sources of nonfederal 
        expenditures to the legislature, if the 
        legislature is or will be in session to 
        take action to specify additional 
        sources of nonfederal expenditures for 
        TANF MOE before a federal penalty is 
        imposed.  The commissioner shall 
        otherwise provide notice to the 
        legislative commission on planning and 
        fiscal policy under paragraph (d). 
        (c) If the commissioner uses authority 
        granted under Laws 1999, chapter 245, 
        article 1, section 10, or similar 
        authority granted by a subsequent 
        legislature, to meet the state's TANF 
        MOE requirements in a reporting period, 
        the commissioner shall inform the 
        chairs of the appropriate legislative 
        committees about all transfers made 
        under that authority for this purpose. 
        (d) If the commissioner determines that 
        nonfederal expenditures for the 
        programs under Minnesota Statutes, 
        section 256J.025, are insufficient to 
        meet TANF MOE expenditure requirements, 
        and if the legislature is not or will 
        not be in session to take timely action 
        to avoid a federal penalty, the 
        commissioner may report nonfederal 
        expenditures from other allowable 
        sources as TANF MOE expenditures after 
        the requirements of this paragraph are 
        met. 
        The commissioner may report nonfederal 
        expenditures in addition to those 
        specified under paragraph (a) as 
        nonfederal TANF MOE expenditures, but 
        only ten days after the commissioner of 
        finance has first submitted the 
        commissioner's recommendations for 
        additional allowable sources of 
        nonfederal TANF MOE expenditures to the 
        members of the legislative commission 
        on planning and fiscal policy for their 
        review. 
        (e) The commissioner of finance shall 
        not incorporate any changes in federal 
        TANF expenditures or nonfederal 
        expenditures for TANF MOE that may 
        result from reporting additional 
        allowable sources of nonfederal TANF 
        MOE expenditures under the interim 
        procedures in paragraph (d) into the 
        February or November forecasts required 
        under Minnesota Statutes, section 
        16A.103, unless the commissioner of 
        finance has approved the additional 
        sources of expenditures under paragraph 
        (d). 
        (f) The provisions of paragraphs (a) to 
        (e) supersede any contrary provisions 
        in Laws 1999, chapter 245, article 1, 
        section 2, subdivision 10. 
        (g) The provisions of Minnesota 
        Statutes, section 256.011, subdivision 
        3, which require that federal grants or 
        aids secured or obtained under that 
        subdivision be used to reduce any 
        direct appropriations provided by law 
        do not apply if the grants or aids are 
        federal TANF funds. 
        (h) Notwithstanding section 6 of this 
        article, paragraphs (a) to (g) expire 
        June 30, 2003. 
        (i) Paragraphs (a) to (h) are effective 
        the day following final enactment. 
        (a) Assistance to Families Grants
             9,628,000     (2,305,000)                
        (b) Work Grants
                -0-          (250,000)
        (c) AFDC and Other Assistance
            20,000,000     30,734,000 
        [TRANSFERS TO MINNESOTA HOUSING FINANCE 
        AGENCY.] (a) By June 30, 2001, the 
        commissioner shall transfer $50,000,000 
        of the general funds appropriated under 
        this paragraph to the Minnesota housing 
        finance agency for transfer to the 
        housing development fund.  The program 
        funded by this transfer shall be known 
        as the "Bruce F. Vento Year 2000 
        Affordable Housing Program." Up to 
        $15,000,000 may be transferred in 
        fiscal year 2000. 
        (b) Of the funds transferred in 
        paragraph (a), $5,000,000 in fiscal 
        year 2001 and $15,000,000 in fiscal 
        year 2002 is for a loan to Habitat for 
        Humanity of Minnesota, Inc.  The loan 
        shall be an interest-free deferred 
        loan.  The loan shall become due and 
        payable in the event and to the extent 
        that Habitat for Humanity of Minnesota, 
        Inc. does not invest repayments and 
        prepayment of mortgage loans financed 
        with this appropriation in new 
        mortgages for additional homebuyers 
        through Habitat for Humanity of 
        Minnesota, Inc.  To the extent 
        practicable, funding must be allocated 
        to Habitat for Humanity chapters on the 
        basis of the number of MFIP households 
        residing within a chapter's service 
        area compared to the statewide total of 
        MFIP households and on the basis of a 
        chapter's capacity. 
        (c) Of the funds transferred in 
        paragraph (a), $15,000,000 in fiscal 
        year 2001 and $15,000,000 in fiscal 
        year 2002 is for the affordable rental 
        investment fund program under Minnesota 
        Statutes, section 462A.21, subdivision 
        8b.  To the extent practicable, the 
        number of units financed with the 
        appropriation under this paragraph 
        within a city, county, or region shall 
        reflect the number of MFIP households 
        residing within the city, county, or 
        region compared to the statewide total 
        of MFIP households.  This appropriation 
        must be used to finance rental housing 
        units that serve families: 
        (1) receiving MFIP benefits under 
        Minnesota Statutes, section 256J.01, or 
        its successor program; and or 
        (2) who have lost eligibility for MFIP 
        due to increased income from employment 
        or due to the collection of child or 
        spousal support under part D of title 
        IV of the Social Security Act. 
        Units produced with this appropriation 
        must remain affordable for a 30-year 
        period. 
        In order to coordinate the availability 
        of housing developed with the 
        appropriation under this paragraph with 
        MFIP families in need of affordable 
        housing, the commissioner of the 
        Minnesota housing finance agency, with 
        the assistance of the commissioner of 
        human services, shall establish 
        cooperative relationships with county 
        agencies as defined in Minnesota 
        Statutes, section 256J.08, local 
        employment and training service 
        providers as defined in Minnesota 
        Statutes, section 256J.49, local social 
        service agencies, or other 
        organizations that provide assistance 
        to MFIP households.  
        The commissioner of the Minnesota 
        housing finance agency shall develop 
        strategies to promote occupancy of the 
        units financed by the appropriation 
        under this paragraph by households most 
        in need of subsidized housing.  The 
        strategies shall include provisions 
        that encourage households to move into 
        homeownership or unsubsidized housing 
        as the household secures stable 
        employment and achieves 
        self-sufficiency.  The commissioner of 
        the Minnesota housing finance agency 
        shall consult with interested parties 
        in developing these strategies.  
        (d) The commissioner of the Minnesota 
        housing finance agency and the 
        commissioner of human services shall 
        jointly prepare and submit a report to 
        the governor and the legislature on the 
        results of the funding provided under 
        this section.  The report shall include:
        (1) information on the number of units 
        produced; 
        (2) the household size and income of 
        the occupants of the units at initial 
        occupancy; and 
        (3) to the extent the information is 
        available, measures related to the 
        occupants' attachment to the workforce 
        and public assistance usage, and number 
        of occupant moves. 
        The report must be submitted annually 
        beginning January 15, 2003. 
        (e) Section 6, sunset of uncodified 
        language, does not apply to paragraphs 
        (a) to (d).  Paragraphs (a) to (d) are 
        effective the day following final 
        enactment. 
        [WORKING FAMILY CREDIT.] (a) On a 
        regular basis, the commissioner of 
        revenue, with the assistance of the 
        commissioner of human services, shall 
        calculate the value of the refundable 
        portion of the Minnesota working family 
        credits provided under Minnesota 
        Statutes, section 290.0671, that 
        qualifies for federal reimbursement 
        from the temporary assistance to needy 
        families block grant.  The commissioner 
        of revenue shall provide the 
        commissioner of human services with 
        such expenditure records and 
        information as are necessary to support 
        draws of federal funds.  The 
        commissioner of human services shall 
        reimburse the commissioner of revenue 
        for the costs of providing the 
        information required by this paragraph. 
        (b) Federal TANF funds, as specified in 
        this paragraph, are appropriated to the 
        commissioner of human services based on 
        calculations under paragraph (a) of 
        working family tax credit expenditures 
        that qualify for reimbursement from the 
        TANF block grant for income tax refunds 
        payable in federal fiscal years 
        beginning October 1, 1999.  The draws 
        of federal TANF funds shall be made on 
        a regular basis based on calculations 
        of credit expenditures by the 
        commissioner of revenue.  Up to the 
        following amounts of federal TANF draws 
        are appropriated to the commissioner of 
        human services to deposit into the 
        general fund:  in fiscal year 2000, 
        $30,957,000; and in fiscal year 2001, 
        $33,895,000. 
        (d) General Assistance
                557,000    (3,134,000)
        (e) Minnesota Supplemental Aid
                324,000       323,000 
           Sec. 40.  [CORRECTION 27.] Laws 2000, chapter 479, article 
        1, section 2, subdivision 12, is amended to read: 
        Subd. 12. Sales Tax                                   4,800,000 
        For payment of sales tax that may not 
        be paid from the trunk highway 
        fund.  This appropriation is one-time 
        only. 
           Sec. 41.  [CORRECTION 27A.] Laws 2000, chapter 479, article 
        2, section 1, is amended to read: 
           Section 1.  [PROHIBITION AGAINST APPROPRIATIONS FROM TRUNK 
        HIGHWAY FUND.] 
           To ensure compliance with the Minnesota Constitution, 
        article XIV, sections 2, 5, and 6, the commissioner of finance, 
        agency directors, and legislative commission personnel may not 
        include in the biennial budget for fiscal years 2002 and 2003, 
        or in any budget thereafter, expenditures from the trunk highway 
        fund for a nonhighway purpose as jointly determined by the 
        commissioner of finance and the attorney general.  For purposes 
        of this section, an expenditure for a nonhighway purpose is any 
        expenditure not for construction, improvement, or maintenance of 
        highways.  At the time of submission of the biennial budget 
        proposal to the legislature, the commissioner of finance and the 
        attorney general shall report to the senate and house of 
        representatives transportation committees concerning any 
        expenditure that is proposed to be appropriated from the trunk 
        highway fund, if that expenditure is similar to those reduced or 
        eliminated in sections 5 to 20.  The report must explain the 
        highway purpose of, and recommend a fund to be charged for, the 
        proposed expenditure. 
           Sec. 42.  [CORRECTION 27B.] [CLARIFICATION OF CERTAIN 
        APPROPRIATIONS FROM THE TRUNK HIGHWAY FUND TO THE GENERAL FUND.] 
           Subject to the findings of the report required in Laws 
        2000, chapter 479, article 2, section 1, the appropriations 
        changed in sections 7, 10, 13, 14, 15, 17, and 20, from the 
        trunk highway fund to the general fund are one-time only. 
           Sec. 43.  [EFFECTIVE DATE.] 
           Unless provided otherwise, each section of this act takes 
        effect at the time the provision being corrected takes effect. 
           Presented to the governor May 19, 2000 
           Signed by the governor May 30, 2000, 2:19 p.m.

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