1.1                          A bill for an act
  1.2             relating to preservation of historic structures; 
  1.3             creating a historic preservation grant program; 
  1.4             appropriating money; proposing coding for new law in 
  1.5             Minnesota Statutes, chapter 138. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [138.98] [HISTORIC STRUCTURE PRESERVATION GRANT 
  1.8   PROGRAM.] 
  1.9      Subdivision 1.  [DEFINITIONS.] (a) As used in this section, 
  1.10  the terms defined in this subdivision have the meaning given. 
  1.11     (b) "Certified historic structure" means a property located 
  1.12  in Minnesota and listed on the National Register of Historic 
  1.13  Places or a historic property designated by either a certified 
  1.14  local government or a heritage preservation commission created 
  1.15  under the National Historic Preservation Act of 1966 and whose 
  1.16  designation is approved by the state historic preservation 
  1.17  officer. 
  1.18     (c) "Eligible property" means a certified historic 
  1.19  structure or a structure in a certified historic district that 
  1.20  is offered or used for residential or business purposes. 
  1.21     (d) "Structure in a certified historic district" means a 
  1.22  structure located in Minnesota which is certified by the state 
  1.23  historic preservation office as contributing to the historic 
  1.24  significance of a certified historic district listed on the 
  1.25  National Register of Historic Places or a local district that 
  2.1   has been certified by the United States Department of the 
  2.2   Interior. 
  2.3      Subd. 2.  [CERTIFICATION OF ELIGIBILITY.] To be eligible 
  2.4   for a grant, the owner of an eligible property must apply to the 
  2.5   state historic preservation office of the Minnesota historical 
  2.6   society before a historic rehabilitation project begins.  The 
  2.7   state historic preservation office shall approve the amount of 
  2.8   eligible rehabilitation costs and whether the rehabilitation 
  2.9   meets the standards of the United States Department of the 
  2.10  Interior.  The state historic preservation office shall issue 
  2.11  certificates verifying eligibility for and the maximum amount of 
  2.12  the grant.  The owner shall attach the certificate to an 
  2.13  application for a historic structure preservation grant. 
  2.14     Subd. 3.  [MAXIMUM GRANT ALLOWED.] An owner who incurs 
  2.15  costs for the rehabilitation of an eligible property may receive 
  2.16  a grant under the historic structures preservation grant program 
  2.17  for up to 20 percent of the total costs of rehabilitation as 
  2.18  certified by the state historic preservation office.  Costs of 
  2.19  rehabilitation include, but are not limited to, qualified 
  2.20  rehabilitation expenditures as defined under section 47(c)(2)(A) 
  2.21  of the Internal Revenue Code, provided that the costs of 
  2.22  rehabilitation must exceed 20 percent of the adjusted basis in 
  2.23  the property at the time the rehabilitation activity begins, and 
  2.24  the rehabilitation must meet standards consistent with the 
  2.25  standards of the Secretary of the Interior for rehabilitation as 
  2.26  determined by the state historic preservation office of the 
  2.27  Minnesota historical society. 
  2.28     Subd. 4.  [APPLICATION; PROGRAM ADMINISTRATION.] The state 
  2.29  historic preservation office of the Minnesota historical society 
  2.30  shall develop application procedures for the historic structure 
  2.31  preservation grant program, including a method of documenting 
  2.32  rehabilitation costs incurred by applicants.  Grant funds may be 
  2.33  awarded on an annual or biannual basis.  If eligible 
  2.34  applications exceed the funds available for a grant cycle, all 
  2.35  grants must be reduced proportionately so that each eligible 
  2.36  applicant receives the same proportion of the amount for which 
  3.1   the applicant was eligible.  The historical society may collect 
  3.2   fees for applications for the historic structure preservation 
  3.3   grant program.  Fees shall be set at an amount that does not 
  3.4   exceed the costs of administering the grant program. 
  3.5      Sec. 2.  [138.99] [DETERMINATION OF ECONOMIC IMPACT.] 
  3.6      The Minnesota historical society shall annually determine 
  3.7   the economic impact to the state from the rehabilitation of 
  3.8   eligible property for which grants are provided under section 
  3.9   138.98 and report on the impact to the committees on economic 
  3.10  development of the senate and house of representatives. 
  3.11     Sec. 3.  [APPROPRIATION.] 
  3.12     $10,000,000 is appropriated from the general fund to the 
  3.13  Minnesota historical society for the historic structure 
  3.14  preservation grant program.  This appropriation does not cancel.