1.1                          A bill for an act 
  1.2             relating to state government; appropriating money for 
  1.3             economic development, housing, and certain agencies of 
  1.4             state government; establishing and modifying programs; 
  1.5             abolishing the department of economic security; 
  1.6             transferring certain duties and funds; creating a 
  1.7             transition team for the reorganization of state 
  1.8             departments; consolidating housing programs; 
  1.9             regulating activities and practices; modifying fees; 
  1.10            making conforming changes; requiring reports; 
  1.11            codifying reorganization order No. 181; transferring 
  1.12            the remaining duties of the commissioner of public 
  1.13            service to the commissioner of commerce; instructing 
  1.14            the revisor to change certain terms; amending 
  1.15            Minnesota Statutes 2000, sections 3.922, by adding a 
  1.16            subdivision; 3C.12, subdivision 2; 13.679; 15.01; 
  1.17            15.06, subdivision 1; 15A.0815, subdivision 2; 16B.32, 
  1.18            subdivision 2; 16B.335, subdivision 4; 16B.56, 
  1.19            subdivision 1; 16B.76, subdivision 1; 17.86, 
  1.20            subdivision 3; 18.024, subdivision 1; 43A.08, 
  1.21            subdivision 1a; 45.012; 103F.325, subdivisions 2, 3; 
  1.22            115A.15, subdivision 5; 116J.8731, subdivision 1; 
  1.23            116L.03; 116L.04, by adding a subdivision; 116L.05, by 
  1.24            adding a subdivision; 116L.16; 116O.06, subdivision 2; 
  1.25            123B.65, subdivisions 1, 3, 5; 138.664, by adding a 
  1.26            subdivision; 161.45, subdivision 1; 168.61, 
  1.27            subdivision 1; 169.073; 174.03, subdivision 7; 181.30; 
  1.28            184.29; 184.30, subdivision 1; 184.38, subdivisions 6, 
  1.29            8, 9, 10, 11, 17, 18, 20; 184.41; 216A.01; 216A.035; 
  1.30            216A.036; 216A.05, subdivision 1; 216A.07, subdivision 
  1.31            1; 216A.08; 216A.085, subdivision 3; 216B.02, 
  1.32            subdivisions 1, 7, 8; 216B.16, subdivisions 1, 2, 6b, 
  1.33            15; 216B.162, subdivisions 7, 11; 216B.1675, 
  1.34            subdivision 9; 216B.241, subdivisions 1a, 1b, 2b; 
  1.35            216C.01, subdivisions 1, 2, 3; 216C.051, subdivision 
  1.36            6; 216C.37, subdivision 1; 216C.40, subdivision 4; 
  1.37            216C.41, as amended; 237.02; 237.075, subdivisions 2, 
  1.38            9; 237.082; 237.21; 237.30; 237.462, subdivision 6; 
  1.39            237.51, subdivisions 1, 5, 5a; 237.52, subdivisions 2, 
  1.40            4, 5; 237.54, subdivision 2; 237.55; 237.59, 
  1.41            subdivision 2; 237.768; 239.01; 239.10; 268.022, 
  1.42            subdivision 2; 268.145, subdivision 1; 268.665, by 
  1.43            adding a subdivision; 325E.11; 325E.115, subdivision 
  1.44            2; 326.243; 462A.01; 462A.03, subdivisions 1, 6, 10, 
  1.45            by adding a subdivision; 462A.04, subdivision 6; 
  1.46            462A.05, subdivisions 14, 14a, 16, 22, 26; 462A.06, 
  2.1             subdivisions 1, 4; 462A.07, subdivisions 10, 12; 
  2.2             462A.073, subdivision 1; 462A.15; 462A.17, subdivision 
  2.3             3; 462A.20, subdivision 3; 462A.201, subdivisions 2, 
  2.4             6; 462A.204, subdivision 3; 462A.205, subdivisions 4, 
  2.5             4a; 462A.209; 462A.2091, subdivision 3; 462A.2093, 
  2.6             subdivision 1; 462A.2097; 462A.21, subdivisions 5, 10, 
  2.7             by adding subdivisions; 462A.222, subdivision 1a; 
  2.8             462A.24; 462A.33, subdivisions 1, 2, 3, 5, by adding a 
  2.9             subdivision; 473.195, by adding a subdivision; 484.50; 
  2.10            Laws 1993, chapter 301, section 1, subdivision 4, as 
  2.11            amended; Laws 1995, chapter 248, article 12, section 
  2.12            2, as amended; Laws 1995, chapter 248, article 13, 
  2.13            section 2, subdivision 2, as amended; Laws 2000, 
  2.14            chapter 488, article 8, section 2, subdivision 6; 
  2.15            proposing coding for new law in Minnesota Statutes, 
  2.16            chapters 116L; 181; 462A; repealing Minnesota Statutes 
  2.17            2000, sections 184.22, subdivisions 2, 3, 4, 5; 
  2.18            184.37, subdivision 2; 216A.06; 237.69, subdivision 3; 
  2.19            268.975; 268.976; 268.9771; 268.978; 268.9781; 
  2.20            268.9782; 268.9783; 268.979; 268.98; 462A.201, 
  2.21            subdivision 4; 462A.207; 462A.209, subdivision 4; 
  2.22            462A.21, subdivision 17; 462A.221, subdivision 4; 
  2.23            462A.30, subdivision 2; 462A.33, subdivisions 4, 6, 7. 
  2.24  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.25                             ARTICLE 1 
  2.26                           APPROPRIATIONS 
  2.27  Section 1.  [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 
  2.28     The sums shown in the columns marked "APPROPRIATIONS" are 
  2.29  appropriated from the general fund, or another named fund, to 
  2.30  the agencies and for the purposes specified in this act, to be 
  2.31  available for the fiscal years indicated for each purpose.  The 
  2.32  figures "2002" and "2003," where used in this act, mean that the 
  2.33  appropriation or appropriations listed under them are available 
  2.34  for the year ending June 30, 2002, or June 30, 2003, 
  2.35  respectively.  The term "first year" means the fiscal year 
  2.36  ending June 30, 2002, and "second year" means the fiscal year 
  2.37  ending June 30, 2003. 
  2.38                          SUMMARY BY FUND
  2.39                            2002          2003           TOTAL
  2.40  General               $192,471,000   $192,612,000   $385,083,000
  2.41  Petroleum Tank
  2.42  Cleanup                  1,064,000      1,084,000      2,148,000
  2.43  Environmental Fund         700,000        700,000      1,400,000
  2.44  TANF Block Grant        15,198,000     14,302,000     29,500,000
  2.45  Workers' 
  2.46  Compensation            23,216,000     23,765,000     46,981,000
  2.47  Special Revenue  
  2.48  Fund                    11,849,000     10,942,000     22,791,000
  3.1   TOTAL                 $244,498,000   $243,405,000   $487,903,000
  3.2                                              APPROPRIATIONS 
  3.3                                          Available for the Year 
  3.4                                              Ending June 30 
  3.5                                             2002         2003 
  3.6   Sec. 2.  TRADE AND ECONOMIC DEVELOPMENT 
  3.7   Subdivision 1.  Total       
  3.8   Appropriation                         $41,965,000   $39,591,000
  3.9                 Summary by Fund
  3.10  General              38,453,000    37,426,000
  3.11  TANF Block Grant      1,750,000     1,000,000
  3.12  Environmental Fund      700,000       700,000 
  3.13  Special 
  3.14  Revenue Fund          1,062,000       465,000 
  3.15  The amounts that may be spent from this 
  3.16  appropriation for each program are 
  3.17  specified in the following subdivisions.
  3.18  Subd. 2.  Business and Community 
  3.19  Development                            13,149,000    11,167,000
  3.20                Summary by Fund
  3.21  General              11,852,000    10,467,000
  3.22  Environmental Fund      700,000       700,000
  3.23  Special 
  3.24  Revenue Fund            597,000           -0- 
  3.25  (a) $3,867,000 the first year and 
  3.26  $3,867,000 the second year are for 
  3.27  Minnesota investment fund grants.  It 
  3.28  is the intention of the legislature 
  3.29  that the base funding for the Minnesota 
  3.30  investment fund in the 2004-2005 
  3.31  biennium be $4,017,000 each year. 
  3.32  (b) $150,000 the first year and 
  3.33  $150,000 the second year are for 
  3.34  one-time grants to the rural policy and 
  3.35  development center at Minnesota State 
  3.36  University, Mankato.  The grant shall 
  3.37  be used for research and policy 
  3.38  analysis on emerging economic and 
  3.39  social issues in rural Minnesota, to 
  3.40  serve as a policy resource center for 
  3.41  rural Minnesota communities, to 
  3.42  encourage collaboration across higher 
  3.43  education institutions to provide 
  3.44  interdisciplinary team approaches to 
  3.45  research and problem solving in rural 
  3.46  communities, and to administer overall 
  3.47  operations of the center.  
  3.48  The grant shall be provided upon the 
  3.49  condition that each state-appropriated 
  3.50  dollar be matched with a 
  3.51  non-state-appropriated dollar.  
  3.52  Acceptable matching funds are 
  3.53  non-state-appropriated contributions 
  3.54  that the center has received after July 
  4.1   1, 2000, and have not been used to 
  4.2   match previous state grants.  The funds 
  4.3   not spent the first year are available 
  4.4   the second. 
  4.5   (c) $155,000 the first year and 
  4.6   $155,000 the second year are for 
  4.7   one-time grants to the metropolitan 
  4.8   economic development association for 
  4.9   continuing minority business 
  4.10  development programs in the 
  4.11  metropolitan area. 
  4.12  (d) $300,000 the first year is for 
  4.13  one-time grants to nonprofit 
  4.14  organizations to provide technical 
  4.15  assistance to individuals to support 
  4.16  the start-up and growth of 
  4.17  self-employment and microenterprise 
  4.18  businesses.  Eligible businesses are 
  4.19  microenterprises employing fewer than 
  4.20  five people plus the owner and 
  4.21  requiring under $35,000 or no capital 
  4.22  to start or expand the business.  
  4.23  Nonprofit organizations must apply for 
  4.24  grants under this subdivision following 
  4.25  procedures established by the 
  4.26  commissioner.  To be eligible for a 
  4.27  grant, an organization must demonstrate 
  4.28  to the commissioner that it has the 
  4.29  appropriate expertise.  The 
  4.30  commissioner shall give preference for 
  4.31  grants to organizations that target 
  4.32  nontraditional entrepreneurs such as 
  4.33  women, members of a minority, 
  4.34  low-income individuals, or persons 
  4.35  seeking work who are currently on or 
  4.36  recently removed from welfare 
  4.37  assistance or who have recently been 
  4.38  laid off from their previous employment.
  4.39  An application must include: 
  4.40  (1) the local need for microenterprise 
  4.41  support; 
  4.42  (2) proposed criteria for business 
  4.43  eligibility; 
  4.44  (3) a proposal for identifying and 
  4.45  serving eligible businesses; 
  4.46  (4) a description of technical 
  4.47  assistance to be provided to eligible 
  4.48  businesses; 
  4.49  (5) a proposal to coordinate technical 
  4.50  assistance with financial assistance; 
  4.51  (6) demonstration of an ability to 
  4.52  collaborate with other agencies 
  4.53  including educational and financial 
  4.54  institutions; and 
  4.55  (7) project goals identifying the 
  4.56  number of eligible businesses to be 
  4.57  assisted with the state funds awarded 
  4.58  under the grant. 
  4.59  Grant recipients must report to the 
  5.1   commissioner by February 1 in each of 
  5.2   the two years after the year of receipt 
  5.3   of the grant.  The report must detail 
  5.4   the number of customers served; the 
  5.5   number of businesses started, 
  5.6   stabilized, or expanded; the number of 
  5.7   jobs created and retained; and business 
  5.8   success rates.  The commissioner shall 
  5.9   report to the legislature on the 
  5.10  microenterprise entrepreneurial 
  5.11  assistance.  The report shall contain 
  5.12  an evaluation of the results. 
  5.13  (e) $35,000 the first year is for a 
  5.14  one-time grant for a pilot project 
  5.15  incubated by Blue Earth county named 
  5.16  the Rural Advanced Business 
  5.17  Facilitation Program.  The grant shall 
  5.18  be provided on the condition that the 
  5.19  funds be matched on a one-to-one basis 
  5.20  from nonstate sources.  This 
  5.21  appropriation is available until June 
  5.22  30, 2003. 
  5.23  (f) $500,000 the first year is for a 
  5.24  one-time grant to the city of St. Paul 
  5.25  for the planning, predesign, and design 
  5.26  of the new Roy Wilkins auditorium and 
  5.27  exhibit hall.  This appropriation is 
  5.28  available until June 30, 2003. 
  5.29  (g) $50,000 the first year is for a 
  5.30  one-time grant to Minnesota rural 
  5.31  partners.  This grant must be used only 
  5.32  for the Minnesota rural summit and 
  5.33  shall be provided on the condition that 
  5.34  funds be matched on a one-to-one basis 
  5.35  from nongovernmental sources.  This 
  5.36  appropriation is available until June 
  5.37  30, 2003. 
  5.38  (h) $100,000 the first year is for a 
  5.39  one-time grant to the Albert Lea Port 
  5.40  Authority to remodel a building in the 
  5.41  Northaire Industrial Park.  Of this 
  5.42  amount, $50,000 is from the Minnesota 
  5.43  investment fund.  This appropriation is 
  5.44  available until June 30, 2003.  This 
  5.45  grant must be matched on a two-for-one 
  5.46  basis by nonstate funds. 
  5.47  (i) $300,000 the first year is for a 
  5.48  one-time grant to the St. Paul port 
  5.49  authority for the 33-acre Trillium site 
  5.50  that is part of the Trout Brook 
  5.51  greenway corridor in St. Paul. 
  5.52  (j) Notwithstanding the limit in 
  5.53  Minnesota Statutes, section 116J.8731, 
  5.54  subdivision 5, a grant of up to 
  5.55  $1,000,000 may be made to a political 
  5.56  subdivision that is chosen as a site 
  5.57  for a soybean oilseed processing 
  5.58  facility constructed by a 
  5.59  Minnesota-based cooperative.  The grant 
  5.60  may be used for site preparation, 
  5.61  predevelopment, and other 
  5.62  infrastructure improvements, including 
  5.63  public and private utility improvements 
  5.64  that are necessary for development of 
  5.65  the oilseed processing facility.  The 
  6.1   grant may be made any time until June 
  6.2   30, 2003. 
  6.3   (k) $500,000 the first year is from the 
  6.4   workforce development fund for a grant 
  6.5   to the city of Duluth to support the 
  6.6   development of the Duluth Technology 
  6.7   Village.  This is a one-time 
  6.8   expenditure, and funds not spent the 
  6.9   first year are available the second 
  6.10  year. 
  6.11  (l) $75,000 in fiscal year 2002 is for 
  6.12  a grant to the West Central Growth 
  6.13  Alliance to establish a regional 
  6.14  marketing plan, economic development 
  6.15  pilot project in Big Stone, Chippewa, 
  6.16  Kandiyohi, Lac Qui Parle, Meeker, 
  6.17  Renville, Stevens, Swift, and Yellow 
  6.18  Medicine counties.  The grant must be 
  6.19  matched by $75,000 in nonstate money.  
  6.20  This is a one-time appropriation.  This 
  6.21  appropriation is available until June 
  6.22  30, 2003. 
  6.23  (m) $150,000 the first year is for a 
  6.24  one-time grant to the city of Ironton 
  6.25  to be applied to planning for the 
  6.26  Cuyuna Range Technology Center.  This 
  6.27  appropriation is available until June 
  6.28  30, 2003.  The grant must be matched by 
  6.29  $150,000 in nonstate money. 
  6.30  (n) $97,000 the first year from the 
  6.31  workforce development fund is for a 
  6.32  one-time grant to Neighborhood 
  6.33  Development Center, Inc.  The funds not 
  6.34  spent the first year are available the 
  6.35  second. 
  6.36  Subd. 3.  Minnesota Trade Office 
  6.37       2,466,000      2,614,000
  6.38  On or before July 10, 2001, the 
  6.39  commissioner of finance shall transfer 
  6.40  the following amounts from the 
  6.41  unencumbered balance in the export 
  6.42  finance authority working capital 
  6.43  account created by Minnesota Statutes, 
  6.44  section 116J.9673:  to the workforce 
  6.45  development fund, $350,000; and to the 
  6.46  general fund, $771,000. 
  6.47  Subd. 4.  Workforce Development       11,045,000     10,295,000
  6.48                Summary by Fund
  6.49  General               8,830,000     8,830,000
  6.50  Special Revenue         465,000       465,000
  6.51  TANF Block Grant      1,750,000     1,000,000
  6.52  (a) $8,500,000 the first year and 
  6.53  $8,500,000 the second year are for the 
  6.54  job skills partnership and pathways 
  6.55  programs.  If the appropriation for 
  6.56  either year is insufficient, the 
  6.57  appropriation for the other year is 
  6.58  available.  This appropriation does not 
  7.1   cancel. 
  7.2   (b) $450,000 the first year and 
  7.3   $450,000 the second year are for 
  7.4   one-time grants to Lifetrack Resources 
  7.5   for its immigrant/refugee collaborative 
  7.6   programs, including those related to 
  7.7   job-seeking skills and workplace 
  7.8   orientation, intensive job development, 
  7.9   functional work English, and on-site 
  7.10  job coaching.  Of this amount, $200,000 
  7.11  each year is from the workforce 
  7.12  development fund and $250,000 each year 
  7.13  is from the state's federal TANF block 
  7.14  grant under Title I of Public Law 
  7.15  Number 104-193 to the commissioner of 
  7.16  human services, to be transferred to 
  7.17  the commissioner of trade and economic 
  7.18  development. 
  7.19  (c) $330,000 the first year and 
  7.20  $330,000 the second year are from the 
  7.21  general fund for one-time grants to 
  7.22  Twin Cities Rise to provide training to 
  7.23  hard-to-train individuals.  Twin Cities 
  7.24  Rise must report to the commissioner by 
  7.25  October 1 after the close of each 
  7.26  fiscal year.  The report must detail 
  7.27  the number of participants served, the 
  7.28  cost per participant, the number of 
  7.29  participants placed, the number of 
  7.30  participants who otherwise successfully 
  7.31  completed the program, and any other 
  7.32  information requested by the 
  7.33  commissioner. 
  7.34  (d) $750,000 the first year is for the 
  7.35  job skills partnership board to operate 
  7.36  the pilot program provided by article 
  7.37  2, section 30.  This is a one-time 
  7.38  appropriation and is from the state's 
  7.39  federal TANF block grant under Title I 
  7.40  of Public Law Number 104-193 to the 
  7.41  commissioner of human services, to be 
  7.42  transferred to the commissioner of 
  7.43  trade and economic development.  This 
  7.44  appropriation is available until June 
  7.45  30, 2003. 
  7.46  (e) $265,000 the first year and 
  7.47  $265,000 the second year from the 
  7.48  workforce development fund are for 
  7.49  one-time grants to WomenVenture for 
  7.50  women's business development programs. 
  7.51  Subd. 5.  Office of Tourism 
  7.52     10,219,000      10,111,000 
  7.53  To develop maximum private sector 
  7.54  involvement in tourism, $3,500,000 the 
  7.55  first year and $3,500,000 the second 
  7.56  year of the amounts appropriated for 
  7.57  marketing activities are contingent on 
  7.58  receipt of an equal contribution from 
  7.59  nonstate sources that have been 
  7.60  certified by the commissioner.  Up to 
  7.61  one-half of the match may be given in 
  7.62  in-kind contributions. 
  7.63  In order to maximize marketing grant 
  8.1   benefits, the commissioner must give 
  8.2   priority for joint venture marketing 
  8.3   grants to organizations with year-round 
  8.4   sustained tourism activities.  For 
  8.5   programs and projects submitted, the 
  8.6   commissioner must give priority to 
  8.7   those that encompass two or more areas 
  8.8   or that attract nonresident travelers 
  8.9   to the state. 
  8.10  If an appropriation for either year for 
  8.11  grants is not sufficient, the 
  8.12  appropriation for the other year is 
  8.13  available for it. 
  8.14  The commissioner may use grant dollars 
  8.15  or the value of in-kind services to 
  8.16  provide the state contribution for the 
  8.17  partnership program. 
  8.18  Any unexpended money from general fund 
  8.19  appropriations made under this 
  8.20  subdivision does not cancel but must be 
  8.21  placed in a special advertising account 
  8.22  for use by the office of tourism to 
  8.23  purchase additional media. 
  8.24  Of this amount, $50,000 the first year 
  8.25  is for a one-time grant to the 
  8.26  Mississippi River parkway commission to 
  8.27  support the increased promotion of 
  8.28  tourism along the Great River Road. 
  8.29  Of this amount, $150,000 the first year 
  8.30  is for one-time grants to local units 
  8.31  of government, and state or local 
  8.32  nonprofit entities to plan and promote 
  8.33  the 2004 Grand Excursion.  A local 
  8.34  nonstate dollar-for-dollar match is 
  8.35  required. 
  8.36  $50,000 the first year is for a 
  8.37  one-time grant to Koochiching county 
  8.38  for concept development and a marketing 
  8.39  feasibility study related to the 
  8.40  construction of a North American bear 
  8.41  center called the Big Bear Country 
  8.42  Education and Logging Center. 
  8.43  $829,000 the first year and $829,000 
  8.44  the second year are for the Minnesota 
  8.45  film board.  $329,000 of this 
  8.46  appropriation in each year is available 
  8.47  only upon receipt by the board of $1 in 
  8.48  matching contributions of money or 
  8.49  in-kind from nonstate sources for every 
  8.50  $3 provided by this appropriation.  Of 
  8.51  this amount, $500,000 the first year 
  8.52  and $500,000 the second year are for 
  8.53  grants to the Minnesota film board for 
  8.54  a film production jobs fund to 
  8.55  stimulate film production in 
  8.56  Minnesota.  This appropriation is to 
  8.57  reimburse film and television producers 
  8.58  for up to ten percent of the documented 
  8.59  wages and cost of services that they 
  8.60  paid to Minnesotans for film and 
  8.61  television production after January 1, 
  8.62  2001. 
  8.63  $150,000 the first year is for 
  9.1   partnerships with local tourism 
  9.2   interests to operate travel information 
  9.3   centers.  This is a one-time 
  9.4   appropriation. 
  9.5   Subd. 6.  Information and Analysis 
  9.6        1,631,000      1,668,000 
  9.7   Subd. 7.  Administrative Support       3,455,000      3,736,000
  9.8   Sec. 3.  MINNESOTA TECHNOLOGY, INC.    5,930,000      6,105,000
  9.9   $5,005,000 the first year and 
  9.10  $6,105,000 the second year are for 
  9.11  transfer from the general fund to the 
  9.12  Minnesota Technology, Inc. fund.  It is 
  9.13  the intention of the legislature that 
  9.14  the base funding for the Minnesota 
  9.15  Technology, Inc. fund in the 2004-2005 
  9.16  biennium be $6,105,000 each year. 
  9.17  $875,000 the first year is for a grant 
  9.18  to Minnesota Project Innovation.  This 
  9.19  is a one-time appropriation and is not 
  9.20  added to the agency's budget base. 
  9.21  $50,000 the first year is for grants to 
  9.22  Minnesota Inventors Congress.  This is 
  9.23  a one-time appropriation and is not 
  9.24  added to the agency's budget base. 
  9.25  On or before July 10, 2001, the 
  9.26  commissioner of finance shall transfer 
  9.27  $900,000 from the Minnesota technology 
  9.28  account created in Minnesota Statutes, 
  9.29  section 116O.12, to the general fund. 
  9.30  Notwithstanding the provisions of 
  9.31  Minnesota Statutes, section 116O.12, 
  9.32  the legislature does not approve the 
  9.33  industry cluster initiative proposed by 
  9.34  Minnesota Technology, Inc., in the 
  9.35  governor's 2002-2003 biennial budget. 
  9.36  Sec. 4.  ECONOMIC SECURITY  
  9.37  Subdivision 1.  Total 
  9.38  Appropriation                         40,443,000     39,977,000
  9.39                Summary by Fund
  9.40  General              29,376,000    29,381,000
  9.41  TANF Block Grant      1,073,000       927,000
  9.42  Special  
  9.43  Revenue Fund          9,994,000     9,669,000
  9.44  Subd. 2.  Workforce Services          12,046,000     11,944,000
  9.45                Summary by Fund
  9.46  General               9,194,000     9,092,000
  9.47  TANF Block Grant        927,000       927,000
  9.48  Special Revenue       1,925,000     1,925,000
  9.49  (a) $1,827,000 the first year and 
  9.50  $1,827,000 the second year are for 
 10.1   displaced homemaker programs under 
 10.2   Minnesota Statutes, section 268.96.  Of 
 10.3   this amount, $1,000,000 each year is 
 10.4   from the workforce development fund and 
 10.5   $827,000 each year is a one-time 
 10.6   appropriation from the state's federal 
 10.7   TANF block grant under title I of 
 10.8   Public Law Number 104-193 to the 
 10.9   commissioner of human services, to be 
 10.10  transferred to the commissioner of 
 10.11  economic security.  The commissioner of 
 10.12  economic security shall report to the 
 10.13  legislature by February 15, 2003, on 
 10.14  the outcome of grants under this 
 10.15  paragraph. 
 10.16  (b) $111,000 the first year is for 
 10.17  youth violence prevention programs to 
 10.18  match the federal juvenile 
 10.19  accountability incentive block grant.  
 10.20  This is a one-time appropriation and is 
 10.21  not added to the agency's budget base. 
 10.22  (c) No appropriation is made for the 
 10.23  youth curfew and truancy prevention 
 10.24  program established in Laws 1999, 
 10.25  chapter 216, article 1, section 20. 
 10.26  (d) No appropriation is made for asset 
 10.27  preservation and facility repair.  
 10.28  (e) $1,025,000 the first year and 
 10.29  $1,025,000 the second year are for the 
 10.30  opportunities industrialization center 
 10.31  programs.  Of this amount, $150,000 
 10.32  each year is a one-time appropriation 
 10.33  from the workforce development fund and 
 10.34  $100,000 each year is a one-time 
 10.35  appropriation from the state's federal 
 10.36  TANF block grant under Title I of 
 10.37  Public Law Number 104-193 to the 
 10.38  commissioner of human services, to be 
 10.39  transferred to the commissioner of 
 10.40  economic security.  
 10.41  (f) $300,000 each year is added to the 
 10.42  base for youth intervention programs 
 10.43  under Minnesota Statutes, section 
 10.44  268.30.  Of this appropriation, $15,000 
 10.45  is for a grant to the Minnesota Youth 
 10.46  Intervention Programs Association 
 10.47  (YIPA) to provide collaborative 
 10.48  training and technical assistance to 
 10.49  community-based grantees of the program.
 10.50  (g) $150,000 each year is added to the 
 10.51  base for grants to Youthbuild programs 
 10.52  under Minnesota Statutes, sections 
 10.53  268.361 to 268.3661. 
 10.54  Subd. 3.  Rehabilitation Services     23,422,000     22,966,000
 10.55                Summary by Fund
 10.56  General              15,207,000    15,222,000
 10.57  TANF                    146,000           -0- 
 10.58  Special         
 10.59  Revenue Fund          8,069,000     7,744,000
 11.1   $11,927,000 in the first year and 
 11.2   $11,940,000 in the second year are for 
 11.3   extended employment services for 
 11.4   persons with severe disabilities or 
 11.5   related conditions under Minnesota 
 11.6   Statutes, section 268A.15.  Of this 
 11.7   amount, $7,719,000 the first year and 
 11.8   $7,719,000 the second year are from the 
 11.9   workforce development fund; of which 
 11.10  $400,000 each year is to increase the 
 11.11  reimbursement rates for extended 
 11.12  employment services.  It is the 
 11.13  intention of the legislature that the 
 11.14  funding for extended employment from 
 11.15  the workforce development fund shall be 
 11.16  $6,920,000 each year in the 2004-2005 
 11.17  biennium.  
 11.18  $146,000 the first year is from the 
 11.19  state's TANF block grant under Title I 
 11.20  of Public Law Number 104-193 to the 
 11.21  commissioner of human services, to be 
 11.22  transferred to the commissioner of 
 11.23  economic security for extended 
 11.24  employment services for the 
 11.25  continuation of efforts to provide 
 11.26  extended employment training through 
 11.27  the welfare-to-work extended employment 
 11.28  partnership program to welfare 
 11.29  recipients with severe impairments to 
 11.30  employment as provided for under 
 11.31  Minnesota Statutes, section 268A.15.  
 11.32  Of this appropriation, up to five 
 11.33  percent may be used for administrative 
 11.34  costs.  This is a one-time 
 11.35  appropriation and is not added to the 
 11.36  agency's budget base. 
 11.37  $50,000 the first year and $50,000 the 
 11.38  second year are for grants to fund the 
 11.39  eight centers for independent living.  
 11.40  This appropriation shall be added to 
 11.41  the agency's base level funding for the 
 11.42  2004-2005 biennium. 
 11.43  $500,000 the first year and $500,000 
 11.44  the second year are added to the base 
 11.45  for grants for programs that provide 
 11.46  employment support services to persons 
 11.47  with mental illness under Minnesota 
 11.48  Statutes, sections 268A.13 and 
 11.49  268A.14.  Up to $70,000 each year may 
 11.50  be used for administrative and salary 
 11.51  expenses. 
 11.52  $175,000 the first year is appropriated 
 11.53  from the workforce development fund for 
 11.54  purposes of workplace HIV education.  
 11.55  This is a one-time appropriation. 
 11.56  $25,000 each year from the workforce 
 11.57  development fund is for grants to the 
 11.58  Minnesota employment center for people 
 11.59  who are deaf or hard-of-hearing.  This 
 11.60  appropriation is added to the base 
 11.61  level funding for the 2002-2003 
 11.62  biennium for the Minnesota employment 
 11.63  center for people who are deaf or 
 11.64  hard-of-hearing.  Funds not expended in 
 11.65  the first year are available in the 
 11.66  second. 
 12.1   $150,000 the first year is from the 
 12.2   workforce development fund for the 
 12.3   purpose of the vocational 
 12.4   rehabilitation brain injury pilot 
 12.5   program to be available until June 30, 
 12.6   2003.  This is a one-time appropriation.
 12.7   Subd. 4.  State Services for the Blind 
 12.8        4,940,000      5,067,000 
 12.9   Subd. 5.  Workforce Wage Assistance
 12.10  $35,000 in the first year is to prepare 
 12.11  a report to the legislature by February 
 12.12  1, 2002, on the costs and benefits of 
 12.13  providing paid or insured wage 
 12.14  replacement during parental leave.  The 
 12.15  report must include (1) estimates of 
 12.16  the percent of employees who currently 
 12.17  have the option of taking paid parental 
 12.18  leave, including the nature and extent 
 12.19  of the benefits, (2) the impact on 
 12.20  employers of offering paid parental 
 12.21  leave, including wage replacement 
 12.22  costs, and the impact on overall 
 12.23  employment, retention, and recruitment 
 12.24  costs, and (3) an estimate of the 
 12.25  public health costs of not providing 
 12.26  wage replacement during parental leave, 
 12.27  including the impact on infant care and 
 12.28  maternal health.  The commissioners of 
 12.29  health and children, families, and 
 12.30  learning shall assist in the report's 
 12.31  preparation, as needed. 
 12.32  Subd. 6.  Economic Security Contingent Account
 12.33  Beginning in the 2002-2003 biennium, 
 12.34  the first $2,000,000 deposited in each 
 12.35  year of the biennium into the economic 
 12.36  security contingent account created 
 12.37  under Minnesota Statutes, section 
 12.38  268.196, subdivision 3, shall be 
 12.39  transferred upon deposit to the 
 12.40  workforce development fund.  Deposits 
 12.41  in excess of the $2,000,000 shall be 
 12.42  used for purposes of the economic 
 12.43  security contingent account.  It is the 
 12.44  intent of the legislature that in 
 12.45  future years, $2,000,000 each year will 
 12.46  be transferred in this manner. 
 12.47  Sec. 5.  HOUSING FINANCE AGENCY       65,057,000     64,457,000
 12.48                Summary by Fund
 12.49  General              52,932,000    52,332,000
 12.50  TANF                 12,125,000    12,125,000
 12.51  Subdivision 1.  Total Appropriation 
 12.52  The amounts that may be spent from this 
 12.53  appropriation for certain programs are 
 12.54  specified in the following subdivisions.
 12.55  This appropriation is for transfer to 
 12.56  the housing development fund for the 
 12.57  programs specified.  Except as 
 12.58  otherwise indicated, this transfer is 
 13.1   part of the agency's permanent budget 
 13.2   base. 
 13.3   Subd. 2.  Challenge Program 
 13.4   $12,004,000 the first year and 
 13.5   $12,004,000 the second year are for the 
 13.6   economic development and housing 
 13.7   challenge program under Minnesota 
 13.8   Statutes, section 462A.33.  Until 
 13.9   January 1, 2002, the agency may 
 13.10  administer the appropriations under 
 13.11  this subdivision in the same manner as 
 13.12  appropriations for Minnesota Statutes, 
 13.13  section 462A.21, subdivision 8b, 15, 
 13.14  21, or 24.  In funding proposals with 
 13.15  money appropriated under this 
 13.16  subdivision, the agency shall give 
 13.17  priority to no more than three 
 13.18  proposals for pilot projects 
 13.19  encouraging homeowners to make 
 13.20  improvements to the exteriors of 
 13.21  deteriorating properties or assisting 
 13.22  homeowners with interior lead hazard 
 13.23  reduction in targeted neighborhoods.  
 13.24  Eligible proposals must meet the 
 13.25  following criteria: 
 13.26  (1) the funds will be used to discount 
 13.27  the interest rate on the community 
 13.28  fix-up fund program for home 
 13.29  improvement loans provided through the 
 13.30  agency; 
 13.31  (2) matching funds are provided from 
 13.32  either a local unit of government or a 
 13.33  private philanthropic, religious, or 
 13.34  charitable organization; and 
 13.35  (3) the discounted interest rate loans 
 13.36  will be targeted to households based on 
 13.37  need, as determined by the housing 
 13.38  finance agency in consultation with the 
 13.39  community. 
 13.40  Communities receiving funds under a 
 13.41  proposal for this purpose shall report 
 13.42  to the agency on the outcomes of the 
 13.43  pilot project, including the number of 
 13.44  households served, the cost per 
 13.45  household, the changes in property 
 13.46  values, if any, in the targeted 
 13.47  neighborhood, and improvements, if any, 
 13.48  made in the targeted neighborhoods 
 13.49  without government subsidy during the 
 13.50  same time period as the pilot project.  
 13.51  Of this amount, $200,000 each year is 
 13.52  for a grant to a nonprofit organization 
 13.53  currently operating the CLEARCorps lead 
 13.54  hazard reduction project.  The grant 
 13.55  must be used as a match for federal 
 13.56  funds for mitigation and rehabilitation 
 13.57  to reduce lead hazards.  This is a 
 13.58  one-time allocation.  
 13.59  Subd. 3.  Rental Assistance for Mentally Ill 
 13.60  $1,700,000 the first year and 
 13.61  $1,700,000 the second year are for a 
 13.62  rental housing assistance program for 
 14.1   persons with a mental illness or 
 14.2   families with an adult member with a 
 14.3   mental illness under Minnesota 
 14.4   Statutes, section 462A.2097. 
 14.5   Subd. 4.  Family Homeless Prevention 
 14.6   $3,750,000 the first year and 
 14.7   $3,750,000 the second year are for the 
 14.8   family homeless prevention and 
 14.9   assistance program under Minnesota 
 14.10  Statutes, section 462A.204, and are 
 14.11  available until June 30, 2003.  Of this 
 14.12  amount, $125,000 the first year and 
 14.13  $125,000 the second year are one-time 
 14.14  appropriations from the state's federal 
 14.15  TANF block grant under Title I of 
 14.16  Public Law Number 104-193 to the 
 14.17  commissioner of human services, to 
 14.18  reimburse the housing development fund 
 14.19  for assistance under this program for 
 14.20  families receiving TANF assistance 
 14.21  under the MFIP program.  The 
 14.22  commissioner of human services shall 
 14.23  make monthly reimbursements to the 
 14.24  housing development fund.  The 
 14.25  commissioner of human services shall 
 14.26  not make any reimbursement which the 
 14.27  commissioner determines would be 
 14.28  subject to a penalty under Code of 
 14.29  Federal Regulations, section 262.1.  If 
 14.30  the appropriation in either year is 
 14.31  insufficient, the appropriation for the 
 14.32  other year is available.  It is the 
 14.33  intention of the legislature that the 
 14.34  general fund base funding to this 
 14.35  program be $7,250,000 for the 2004-2005 
 14.36  biennium. 
 14.37  Subd. 5.  Home Ownership Education, 
 14.38  Counseling, and Training
 14.39  $983,000 the first year and $983,000 
 14.40  the second year are for the home 
 14.41  ownership education, counseling, and 
 14.42  training program under Minnesota 
 14.43  Statutes, section 462A.209. 
 14.44  Of this amount, $125,000 the first year 
 14.45  and $125,000 the second year are 
 14.46  one-time appropriations for full-cycle 
 14.47  home ownership services for 
 14.48  non-English-speaking persons, recent 
 14.49  immigrants, and historically 
 14.50  underserved populations. 
 14.51  Subd. 6.  Housing Trust Fund
 14.52  $4,623,000 the first year and 
 14.53  $4,623,000 the second year are for the 
 14.54  housing trust fund to be deposited in 
 14.55  the housing trust fund account created 
 14.56  under Minnesota Statutes, section 
 14.57  462A.201, and used for the purposes 
 14.58  provided in that section.  Until 
 14.59  January 1, 2002, the agency may 
 14.60  administer the appropriations under 
 14.61  this subdivision in the same manner as 
 14.62  appropriations for Minnesota Statutes 
 14.63  2000, sections 462A.201, 462A.205, and 
 14.64  462A.21, subdivision 8b.  Among 
 15.1   comparable rehabilitation proposals, 
 15.2   the agency may give a priority for 
 15.3   projects that include lead hazard 
 15.4   reduction. 
 15.5   Subd. 7.  Affordable Rental Investment Fund
 15.6   $22,000,000 the first year and 
 15.7   $22,000,000 the second year are for the 
 15.8   affordable rental investment fund 
 15.9   program under Minnesota Statutes, 
 15.10  section 462A.21, subdivision 8b.  Of 
 15.11  this amount, $12,000,000 in each year 
 15.12  is a one-time appropriation and is not 
 15.13  added to the agency's base budget. 
 15.14  (a) Of this amount, $10,000,000 the 
 15.15  first year and $10,000,000 the second 
 15.16  year are to finance the acquisition, 
 15.17  rehabilitation, and debt restructuring 
 15.18  of federally assisted rental property 
 15.19  and for making equity take-out loans 
 15.20  under Minnesota Statutes, section 
 15.21  462A.05, subdivision 39.  The owner of 
 15.22  the federally assisted rental property 
 15.23  must agree to participate in the 
 15.24  applicable federally assisted housing 
 15.25  program and to extend any existing 
 15.26  low-income affordability restrictions 
 15.27  on the housing for the maximum term 
 15.28  permitted.  The owner must also enter 
 15.29  into an agreement that gives local 
 15.30  units of government, housing and 
 15.31  redevelopment authorities, and 
 15.32  nonprofit housing organizations the 
 15.33  right of first refusal if the rental 
 15.34  property is offered for sale.  Priority 
 15.35  must be given among comparable 
 15.36  properties to properties with the 
 15.37  longest remaining term under an 
 15.38  agreement for federal rental 
 15.39  assistance.  Priority must also be 
 15.40  given among comparable rental housing 
 15.41  developments to developments that are 
 15.42  or will be owned by local government 
 15.43  units, a housing and redevelopment 
 15.44  authority, or a nonprofit housing 
 15.45  organization. 
 15.46  (b) Of this appropriation, $12,000,000 
 15.47  the first year and $12,000,000 the 
 15.48  second year are to be used by the 
 15.49  agency to finance permanent and 
 15.50  supportive rental housing units and 
 15.51  necessary operating cost subsidies 
 15.52  related to the units financed and to 
 15.53  provide rental assistance.  The 
 15.54  appropriation under this paragraph must 
 15.55  be used to finance units or provide 
 15.56  assistance for families whose household 
 15.57  income, at the time of initial 
 15.58  occupancy, does not exceed 30 percent 
 15.59  of the HUD established median income 
 15.60  for the metropolitan area, as defined 
 15.61  in Minnesota Statutes, section 473.121, 
 15.62  subdivision 2.  The median family 
 15.63  income may be adjusted for families of 
 15.64  five or more persons.  The owner of 
 15.65  units financed with the appropriation 
 15.66  under this paragraph must agree to 
 15.67  maintain affordability of the units 
 16.1   financed under this paragraph for a 
 16.2   30-year period. 
 16.3   Housing units financed in the 
 16.4   metropolitan area with the 
 16.5   appropriation under paragraph (b) must 
 16.6   be located near public transit that 
 16.7   provides regular service and access to 
 16.8   jobs, schools, and other services that 
 16.9   support self-sufficiency.  
 16.10  Housing units financed outside the 
 16.11  metropolitan area with the 
 16.12  appropriation under paragraph (b) must 
 16.13  be located near jobs, schools, and 
 16.14  other services that support 
 16.15  self-sufficiency. 
 16.16  The commissioner shall utilize 
 16.17  strategies to:  (1) promote occupancy 
 16.18  of the units financed by the 
 16.19  appropriation under paragraph (b) by 
 16.20  households most in need of subsidized 
 16.21  housing and (2) encourage households to 
 16.22  move into homeownership or unsubsidized 
 16.23  housing as the household achieves 
 16.24  economic self-sufficiency. 
 16.25  The appropriation under paragraph (b) 
 16.26  shall be jointly administered by the 
 16.27  commissioners of the Minnesota housing 
 16.28  finance agency and the department of 
 16.29  human services and the director of the 
 16.30  strategic and long-range planning 
 16.31  office.  
 16.32  [WORKING FAMILY CREDIT.] (a) On a 
 16.33  regular basis, the commissioner of 
 16.34  revenue, with the assistance of the 
 16.35  commissioner of human services, shall 
 16.36  calculate the value of the refundable 
 16.37  portion of the Minnesota working family 
 16.38  credits provided under Minnesota 
 16.39  Statutes, section 290.0671, that 
 16.40  qualifies for federal reimbursement 
 16.41  from the temporary assistance to needy 
 16.42  families block grant.  The commissioner 
 16.43  of revenue shall provide the 
 16.44  commissioner of human services with 
 16.45  such expenditure records and 
 16.46  information as are necessary to support 
 16.47  draw down of federal funds. 
 16.48  (b) Federal TANF funds, as specified in 
 16.49  this paragraph, are appropriated to the 
 16.50  commissioner of housing finance based 
 16.51  on calculations under paragraph (a) of 
 16.52  working family tax credit expenditures 
 16.53  that qualify for reimbursement from the 
 16.54  TANF block grant for income tax refunds 
 16.55  payable in federal fiscal years 
 16.56  beginning October 1, 2001.  The draw 
 16.57  down of federal TANF funds shall be 
 16.58  made on a regular basis based on 
 16.59  calculations of credit expenditures by 
 16.60  the commissioner of revenue.  
 16.61  $12,000,000 in fiscal year 2002 and 
 16.62  $12,000,000 in fiscal year 2003 are 
 16.63  appropriated to the commissioner of the 
 16.64  housing finance agency.  These funds 
 17.1   shall be transferred to the 
 17.2   commissioner of revenue to deposit into 
 17.3   the general fund.  These funds shall 
 17.4   not become part of the 2004-2005 base 
 17.5   budget. 
 17.6   Subd. 8.  Urban Indian Housing Program 
 17.7   $187,000 the first year and $187,000 
 17.8   the second year are for the urban 
 17.9   Indian housing program under Minnesota 
 17.10  Statutes, section 462A.07, subdivision 
 17.11  15.  
 17.12  Subd. 9.  Tribal Indian Housing Program
 17.13  $1,683,000 the first year and 
 17.14  $1,683,000 the second year are for the 
 17.15  tribal Indian housing program under 
 17.16  Minnesota Statutes, section 462A.07, 
 17.17  subdivision 14.  
 17.18  Subd. 10.  Capacity Building Grants 
 17.19  $340,000 the first year and $340,000 
 17.20  the second year are for nonprofit 
 17.21  capacity building grants under 
 17.22  Minnesota Statutes, section 462A.21, 
 17.23  subdivision 3b.  
 17.24  Subd. 11.  Housing Rehabilitation
 17.25  and Accessibility
 17.26  $4,287,000 the first year and 
 17.27  $4,287,000 the second year are for the 
 17.28  housing rehabilitation and 
 17.29  accessibility program under Minnesota 
 17.30  Statutes, section 462A.05, subdivisions 
 17.31  14a and 15a. 
 17.32  Subd. 12.  Home Ownership
 17.33  Assistance Fund
 17.34  $900,000 the first year and $900,000 
 17.35  the second year are for the home 
 17.36  ownership assistance fund under 
 17.37  Minnesota Statutes, section 462A.21, 
 17.38  subdivision 8.  
 17.39  Subd. 13.  Manufactured Home
 17.40  Park Redevelopment
 17.41  $400,000 is for the manufactured home 
 17.42  park redevelopment program created by 
 17.43  Minnesota Statutes, section 462A.2035, 
 17.44  and is available until June 30, 2003.  
 17.45  This is a one-time appropriation and is 
 17.46  not added to the agency's permanent 
 17.47  budget base. 
 17.48  Subd. 14.  Rental Housing
 17.49  Pilot Program
 17.50  $100,000 is for a rental housing pilot 
 17.51  program to encourage landlords to rent 
 17.52  to high-risk tenants with poor rental 
 17.53  histories in the counties of Benton, 
 17.54  Clay, Dakota, Hennepin, Olmsted, 
 17.55  Ramsey, St. Louis, Sherburne, and 
 17.56  Stearns.  This is a one-time 
 17.57  appropriation available until June 30, 
 18.1   2003, and is not added to the agency's 
 18.2   permanent budget base. 
 18.3   For purposes of this subdivision, 
 18.4   preference as a "high-risk tenant" 
 18.5   shall be given to a person who has had 
 18.6   an application for rental housing 
 18.7   denied for reasons other than a felony 
 18.8   conviction of that person or previous 
 18.9   willful substantial damage to rental 
 18.10  housing by that person.  
 18.11  The program shall allow local agencies 
 18.12  to provide payment bonds to landlords 
 18.13  willing to accept high-risk tenants to 
 18.14  reimburse them for losses caused by a 
 18.15  high-risk tenant.  In selecting 
 18.16  recipients for funding under the rental 
 18.17  housing pilot program, priority must be 
 18.18  given to proposals that include 
 18.19  accountability provisions for 
 18.20  participating landlords and training 
 18.21  for participating tenants.  Local 
 18.22  government units, nonprofit agencies, 
 18.23  or partnerships between local 
 18.24  government units and nonprofit agencies 
 18.25  are eligible for funding under the 
 18.26  rental housing pilot program.  
 18.27  Local government units must provide 
 18.28  matching funds, which may include 
 18.29  administrative costs, payment bond 
 18.30  funding, or property tax credits.  
 18.31  The agency shall consult with 
 18.32  representatives of the following 
 18.33  organizations in selecting recipients 
 18.34  for funding under the program:  
 18.35  organizations who advocate for tenants 
 18.36  and provide tenant training, nonprofit 
 18.37  and for-profit housing providers, 
 18.38  supportive housing service providers, 
 18.39  and tenant screening organizations.  
 18.40  The agency must report to the 
 18.41  legislature by January 15, 2003, on the 
 18.42  effectiveness of the pilot program in 
 18.43  securing rental housing for individuals 
 18.44  with poor rental histories.  The report 
 18.45  must also address the feasibility of 
 18.46  and need for expanding the program 
 18.47  statewide and recommend best practices. 
 18.48  Subd. 15.  Supportive Housing
 18.49  Grant
 18.50  $100,000 is for a grant to the district 
 18.51  287 foundation to assist in the 
 18.52  development of supportive housing to 
 18.53  provide independent living 
 18.54  opportunities for adults with 
 18.55  disabilities.  This is a one-time 
 18.56  appropriation and is not added to the 
 18.57  agency's permanent budget base. 
 18.58  Subd. 16.  Cancellations 
 18.59  (a) [TRANSFER OF DISASTER RELIEF 
 18.60  FUNDS.] The unobligated and 
 18.61  unencumbered balance appropriated to 
 18.62  the affordable rental investment fund 
 19.1   account and the community 
 19.2   rehabilitation fund account under Laws 
 19.3   1997, Second Special Session chapter 2, 
 19.4   section 4, is transferred on July 1, 
 19.5   2001, to the housing development fund 
 19.6   under Minnesota Statutes, section 
 19.7   462A.20.  The unobligated and 
 19.8   unencumbered balance appropriated to 
 19.9   the affordable rental investment fund 
 19.10  account and the community 
 19.11  rehabilitation fund account under Laws 
 19.12  1998, chapter 383, section 2, is 
 19.13  transferred on July 1, 2001, to the 
 19.14  housing development fund under 
 19.15  Minnesota Statutes, section 462A.20. 
 19.16  (b) [RENTAL HOUSING PILOT PROGRAM.] Up 
 19.17  to $257,000 of the amount transferred 
 19.18  under paragraph (a) is for the rental 
 19.19  housing pilot program under subdivision 
 19.20  14.  This is a one-time appropriation 
 19.21  and is not added to the agency's 
 19.22  permanent budget base.  
 19.23  (c) [SECTION 8 HOME OWNERSHIP.] Up to 
 19.24  $250,000 of the amount transferred 
 19.25  under paragraph (a) is for grants to 
 19.26  agencies administering the federal 
 19.27  section 8 housing program for 
 19.28  administrative costs associated with 
 19.29  the establishment and operation of 
 19.30  section 8 home ownership programs and 
 19.31  for grants to public or nonprofit 
 19.32  section 8 administering agencies or 
 19.33  collaboratives of those agencies to 
 19.34  acquire and rehabilitate or construct 
 19.35  homes for resale to households eligible 
 19.36  for section 8 assistance using section 
 19.37  8 vouchers and certificates to finance 
 19.38  the home purchases including gap 
 19.39  financing.  The administering agencies 
 19.40  shall set guidelines for the sale of 
 19.41  homes under this subdivision to ensure 
 19.42  that a home buyer who later loses 
 19.43  eligibility for section 8 assistance 
 19.44  due to increased income will have an 
 19.45  opportunity to purchase the home and to 
 19.46  retain any equity built up in the 
 19.47  home.  For purposes of this 
 19.48  subdivision, "section 8" means section 
 19.49  8 of the United States Housing Act of 
 19.50  1937.  This is a one-time appropriation 
 19.51  and is not added to the agency's 
 19.52  permanent budget base. 
 19.53  (d) [HOMELESS VETERANS HOUSING.] 
 19.54  $420,000 of the unobligated and 
 19.55  unencumbered balance in the local 
 19.56  government unit housing account under 
 19.57  Minnesota Statutes, section 462A.202, 
 19.58  is transferred to the housing trust 
 19.59  fund under Minnesota Statutes, section 
 19.60  462A.201, for loans and grants to 
 19.61  assist in the development, 
 19.62  construction, acquisition, or 
 19.63  rehabilitation of supportive and 
 19.64  permanent housing to serve veterans and 
 19.65  single adults who are homeless or at 
 19.66  risk of becoming homeless.  The loans 
 19.67  or grants must be used for at least two 
 19.68  housing projects that: 
 20.1   (1) are located on property owned by 
 20.2   the United States Department of 
 20.3   Veterans Affairs or other property that 
 20.4   could be obtained at no cost; 
 20.5   (2) provide or coordinate health and 
 20.6   social services needed by the 
 20.7   residents; and 
 20.8   (3) are a collaborative partnership 
 20.9   between community agencies and local 
 20.10  units of government or the federal 
 20.11  government. 
 20.12  Sec. 6.  CHILDREN, FAMILIES,
 20.13  AND LEARNING                             500,000        500,000
 20.14                Summary by Fund
 20.15  General                 250,000       250,000
 20.16  TANF                    250,000       250,000 
 20.17  [EMERGENCY SERVICES.] $500,000 the 
 20.18  first year and $500,000 the second year 
 20.19  are one-time appropriations for 
 20.20  emergency services grants according to 
 20.21  Laws 1997, chapter 162, article 3, 
 20.22  section 7. 
 20.23  Of this amount, $250,000 the first year 
 20.24  and $250,000 the second year are 
 20.25  one-time appropriations from the 
 20.26  state's federal TANF block grant under 
 20.27  Title I of Public Law Number 104-193 to 
 20.28  the commissioner of human services. 
 20.29  Sec. 7.  INVESTMENT BOARD                100,000        100,000
 20.30  $100,000 in each year is for the 
 20.31  purpose of paying staff costs related 
 20.32  to focusing efforts on investing in 
 20.33  Minnesota-based startup businesses 
 20.34  under new Minnesota Statutes, section 
 20.35  11A.26.  This is a one-time 
 20.36  appropriation for this pilot project. 
 20.37  Sec. 8.  COMMERCE 
 20.38  Subdivision 1.  Total 
 20.39  Appropriation                         27,061,000     27,728,000
 20.40                Summary by Fund
 20.41  General              25,398,000    26,029,000
 20.42  Petroleum Cleanup     1,064,000     1,084,000 
 20.43  Workers'
 20.44  Compensation            599,000       615,000
 20.45  The amounts that may be spent from this 
 20.46  appropriation for each program are 
 20.47  specified in the following subdivisions.
 20.48  Subd. 2.  Financial Examinations 
 20.49       6,379,000      6,555,000
 20.50  Subd. 3.  Petroleum Tank Release 
 20.51  Cleanup Board 
 21.1        1,064,000      1,084,000
 21.2   This appropriation is from the 
 21.3   petroleum tank release cleanup fund. 
 21.4   Subd. 4.  Administrative Services 
 21.5        5,852,000      6,003,000 
 21.6   Subd. 5.  Enforcement 
 21.7   and Compliance                         5,685,000      5,836,000
 21.8                 Summary by Fund
 21.9   General               5,086,000     5,221,000
 21.10  Workers' Compensation   599,000       615,000
 21.11  Subd. 6.  Energy 
 21.12       3,809,000      3,884,000 
 21.13  $588,000 each year is for transfer to 
 21.14  the energy and conservation account 
 21.15  established in Minnesota Statutes, 
 21.16  section 216B.241, subdivision 2a, for 
 21.17  programs administered by the 
 21.18  commissioner of economic security to 
 21.19  improve the energy efficiency of 
 21.20  residential oil-fired heating plants in 
 21.21  low-income households and, when 
 21.22  necessary, to provide weatherization 
 21.23  services to the homes. 
 21.24  Subd. 7.  Telecommunication 
 21.25         986,000      1,008,000 
 21.26  Subd. 8.  Weights and Measurement 
 21.27       3,286,000      3,358,000 
 21.28  Sec. 9.  BOARD OF ACCOUNTANCY            683,000        721,000
 21.29  Sec. 10.  BOARD OF ARCHITECTURE,
 21.30  ENGINEERING, LAND SURVEYING, 
 21.31  LANDSCAPE ARCHITECTURE, GEOSCIENCE, 
 21.32  AND INTERIOR DESIGN                      951,000        981,000 
 21.33  Sec. 11.  BOARD OF BARBER   
 21.34  EXAMINERS                                153,000        159,000
 21.35  Sec. 12.  LABOR AND INDUSTRY 
 21.36  Subdivision 1.  Total             
 21.37  Appropriation                         25,413,000     26,001,000
 21.38                Summary by Fund
 21.39  General               3,572,000     3,661,000
 21.40  Workers'     
 21.41  Compensation         21,048,000    21,532,000
 21.42  Special   
 21.43  Revenue Fund            793,000       808,000
 21.44  The amounts that may be spent from this 
 21.45  appropriation for each program are 
 21.46  specified in the following subdivisions.
 22.1   Subd. 2.  Workers' Compensation 
 22.2       10,912,000     11,178,000 
 22.3   This appropriation is from the workers' 
 22.4   compensation fund. 
 22.5   $125,000 the first year and $125,000 
 22.6   the second year are for grants to the 
 22.7   Vinland Center for rehabilitation 
 22.8   service. 
 22.9   Subd. 3.  Workplace Services           7,468,000      7,644,000
 22.10                Summary by Fund
 22.11  General               2,493,000     2,555,000
 22.12  Workers'
 22.13  Compensation          4,182,000     4,281,000
 22.14  Special   
 22.15  Revenue Fund            793,000       808,000 
 22.16  $204,000 the first year and $204,000 
 22.17  the second year are for labor education 
 22.18  and advancement program grants.  This 
 22.19  appropriation is from the workforce 
 22.20  development fund. 
 22.21  Subd. 4.  General Support              7,033,000      7,179,000
 22.22                Summary by Fund
 22.23  General               1,079,000     1,106,000
 22.24  Workers'     
 22.25  Compensation          5,954,000     6,073,000
 22.26  $5,000 in the first year is a one-time 
 22.27  appropriation for a study and report to 
 22.28  the legislature by January 15, 2002, on:
 22.29  (1) the extent of wage disparities, 
 22.30  both in the public and private sector, 
 22.31  between men and women, and between 
 22.32  minorities and nonminorities; 
 22.33  (2) those factors that cause, or tend 
 22.34  to cause, such disparities, including 
 22.35  segregation between women and men, and 
 22.36  between minorities and nonminorities 
 22.37  across and within occupations; payment 
 22.38  of lower wages for work in 
 22.39  female-dominated occupations; 
 22.40  child-rearing responsibilities; and 
 22.41  education and training; 
 22.42  (3) the consequences of such 
 22.43  disparities on the economy and families 
 22.44  affected; and 
 22.45  (4) actions, including proposed 
 22.46  legislation, that are likely to lead to 
 22.47  the elimination and prevention of such 
 22.48  disparities. 
 22.49  Sec. 13.  BUREAU OF MEDIATION SERVICES 
 22.50  Subdivision 1.  Total
 22.51  Appropriation                          2,259,000      2,307,000
 23.1   The amounts that may be spent from this 
 23.2   appropriation for each program are 
 23.3   specified in the following subdivisions.
 23.4   Subd. 2.  Mediation Services           1,957,000      2,005,000
 23.5   Subd. 3.  Labor Management 
 23.6   Cooperation Grants                       302,000        302,000
 23.7   $302,000 each year is for grants to 
 23.8   area labor-management committees.  Any 
 23.9   unencumbered balance remaining at the 
 23.10  end of the first year does not cancel 
 23.11  but is available for the second year. 
 23.12  Sec. 14.  WORKERS' COMPENSATION
 23.13  COURT OF APPEALS                       1,569,000      1,618,000
 23.14  This appropriation is from the workers' 
 23.15  compensation fund. 
 23.16  Sec. 15.  PUBLIC UTILITIES  
 23.17  COMMISSION                             3,994,000      4,163,000
 23.18  Sec. 16.  MINNESOTA HISTORICAL 
 23.19  SOCIETY 
 23.20  Subdivision 1.  Total       
 23.21  Appropriation                         26,865,000     27,395,000
 23.22  The amounts that may be spent from this 
 23.23  appropriation for each program are 
 23.24  specified in the following subdivisions.
 23.25  Subd. 2.  Education and     
 23.26  Outreach                              14,935,000     15,412,000
 23.27  $150,000 the first year and $200,000 
 23.28  the second year are for operating 
 23.29  expenses at the Northwest Fur Company 
 23.30  Post. 
 23.31  $150,000 the first year and $250,000 
 23.32  the second year are for operating 
 23.33  expenses at the Mill City Museum, St. 
 23.34  Anthony Falls. 
 23.35  Subd. 3.  Preservation and Access     11,384,000     11,635,000
 23.36  Subd. 4.  Fiscal Agent                   546,000        348,000
 23.37  (a) Sibley House Association 
 23.38          88,000         88,000
 23.39  This appropriation is available for 
 23.40  operation and maintenance of the Sibley 
 23.41  House and related buildings on the Old 
 23.42  Mendota state historic site operated by 
 23.43  the Sibley House Association.  
 23.44  (b) Minnesota International Center 
 23.45          50,000         50,000
 23.46  (c) Minnesota Air National   
 23.47  Guard Museum 
 23.48          19,000        -0-
 24.1   (d) Institute for Learning and
 24.2   Teaching - Project 120
 24.3          110,000        110,000 
 24.4   (e) Minnesota Military Museum
 24.5           79,000        -0-
 24.6   (f) Farmamerica
 24.7          150,000        100,000 
 24.8   Notwithstanding any other law, this 
 24.9   appropriation may be used for 
 24.10  operations. 
 24.11  (g) Little Elk Heritage Preserve
 24.12           50,000           -0-
 24.13  This appropriation is to assist the 
 24.14  Institute for Minnesota Archaeology in 
 24.15  site research and preservation, 
 24.16  economic and infrastructure 
 24.17  development, public outreach, and 
 24.18  education programming.  The 
 24.19  appropriated funds may be matched by 
 24.20  nonstate sources.  This is a one-time 
 24.21  appropriation. 
 24.22  (h) Balances Forward
 24.23  Any unencumbered balance remaining in 
 24.24  this subdivision the first year does 
 24.25  not cancel but is available for the 
 24.26  second year of the biennium. 
 24.27  Subd. 5.  Fund Transfer
 24.28  The society may reallocate funds 
 24.29  appropriated in and between 
 24.30  subdivisions 2 and 3 for any program 
 24.31  purposes. 
 24.32  Sec. 17.  COUNCIL ON BLACK
 24.33  MINNESOTANS                              342,000        352,000
 24.34  Sec. 18.  COUNCIL ON 
 24.35  CHICANO-LATINO AFFAIRS                   334,000        344,000
 24.36  Sec. 19.  COUNCIL ON
 24.37  ASIAN-PACIFIC MINNESOTANS                295,000        304,000
 24.38  Sec. 20.  INDIAN AFFAIRS
 24.39  COUNCIL                                  584,000        602,000
 24.40     Sec. 21.  [FEDERAL FUND APPROVAL.] 
 24.41     Requests to spend federal grants and aids as shown in the 
 24.42  biennial budget document and its supplements for the departments 
 24.43  of trade and economic development, economic security, commerce, 
 24.44  and labor and industry; the Minnesota housing finance agency; 
 24.45  and Minnesota Technology, Inc., for which further review was 
 24.46  requested under Minnesota Statutes, section 3.3005, subdivision 
 25.1   2a, in January or February 2001, are approved and the amounts 
 25.2   shown in the budget documents are appropriated for the purpose 
 25.3   indicated in the request. 
 25.4                              ARTICLE 2 
 25.5                          POLICY PROVISIONS 
 25.6      Section 1.  Minnesota Statutes 2000, section 3.922, is 
 25.7   amended by adding a subdivision to read: 
 25.8      Subd. 10.  [RULEMAKING.] Notwithstanding section 116J.64, 
 25.9   subdivision 7, or other law, the council does not have authority 
 25.10  to adopt, amend, or repeal rules or to adjudicate contested 
 25.11  cases or appeals.  Rules adopted before the effective date of 
 25.12  this subdivision may continue in effect until amended or 
 25.13  repealed by law. 
 25.14     Sec. 2.  Minnesota Statutes 2000, section 116J.8731, 
 25.15  subdivision 1, is amended to read: 
 25.16     Subdivision 1.  [PURPOSE.] The Minnesota investment fund is 
 25.17  created to provide financial assistance, through partnership 
 25.18  with communities, for the creation of new employment or to 
 25.19  maintain existing employment, and for business start-up, 
 25.20  expansions, and retention.  It shall accomplish these goals by 
 25.21  the following means: 
 25.22     (1) creation or retention of permanent private-sector jobs 
 25.23  in order to create above-average economic growth consistent with 
 25.24  environmental protection, which includes investments in 
 25.25  technology and equipment that increase productivity and provide 
 25.26  for a higher wage; 
 25.27     (2) stimulation or leverage of private investment to ensure 
 25.28  economic renewal and competitiveness; 
 25.29     (3) increasing the local tax base, based on demonstrated 
 25.30  measurable outcomes, to guarantee a diversified industry mix; 
 25.31     (4) improvement of employment and economic opportunity for 
 25.32  citizens in the region to create a reasonable standard of 
 25.33  living, consistent with federal and state guidelines on low- to 
 25.34  moderate-income persons; and 
 25.35     (5) stimulation of productivity growth through improved 
 25.36  manufacturing or new technologies, including cold weather 
 26.1   testing.  
 26.2      Sec. 3.  Minnesota Statutes 2000, section 116L.03, is 
 26.3   amended to read: 
 26.4      116L.03 [BOARD.] 
 26.5      Subdivision 1.  [MEMBERS.] The partnership shall be 
 26.6   governed by a board of 12 13 directors.  
 26.7      Subd. 2.  [APPOINTMENT.] The Minnesota job skills 
 26.8   partnership board consists of:  nine seven members appointed by 
 26.9   the governor, the chair of the governor's workforce development 
 26.10  council, the commissioner of trade and economic development, the 
 26.11  commissioner of economic security, and the chancellor, or the 
 26.12  chancellor's designee, of the Minnesota state colleges and 
 26.13  universities, the president, or the president's designee, of the 
 26.14  University of Minnesota, and two nonlegislator members, one 
 26.15  appointed by the subcommittee on committees of the senate 
 26.16  committee on rules and administration and one appointed by the 
 26.17  speaker of the house.  If the chancellor or the president of the 
 26.18  university makes a designation under this subdivision, the 
 26.19  designee must have experience in technical education.  Two Four 
 26.20  of the appointed members must be representatives from members of 
 26.21  the governor's workforce development council, of whom two must 
 26.22  represent organized labor and two must represent business and 
 26.23  industry.  One of the appointed members must be a representative 
 26.24  of a nonprofit organization that provides workforce development 
 26.25  or job training services. 
 26.26     Subd. 3.  [QUALIFICATIONS.] Members must have expertise in, 
 26.27  and be representative of the following fields of education, job 
 26.28  skills training, labor, business, and government.  
 26.29     Subd. 4.  [CHAIR.] The chair shall be appointed by the 
 26.30  governor.  
 26.31     Subd. 5.  [TERMS.] The terms of appointed members shall be 
 26.32  for four years except for the initial appointments.  The initial 
 26.33  appointments of the governor shall have the following terms:  
 26.34  two members each for one, two, three, and four years.  No member 
 26.35  shall serve more than two terms, and no person shall be 
 26.36  appointed after December 31, 2001, for any term that would cause 
 27.1   that person to serve a total of more than eight years on the 
 27.2   board.  Compensation for board members is as provided in section 
 27.3   15.0575, subdivision 3. 
 27.4      Subd. 7.  [OFFICES.] The department of trade and economic 
 27.5   development shall provide staff and administrative services for 
 27.6   the board.  The department of trade and economic development 
 27.7   shall provide office space and staff to the job skills 
 27.8   partnership board for the execution of its duties.  The board 
 27.9   shall hire an executive director to assist in carrying out its 
 27.10  duties. 
 27.11     Sec. 4.  Minnesota Statutes 2000, section 116L.04, is 
 27.12  amended by adding a subdivision to read: 
 27.13     Subd. 4.  [PERFORMANCE STANDARDS AND REPORTING.] By January 
 27.14  15, 2002, the board must develop performance standards for 
 27.15  workforce development and job training programs receiving state 
 27.16  funding.  The standards may vary across program types.  The 
 27.17  board may contract with a consultant to develop the performance 
 27.18  standards.  The board must consult with stakeholder advocacy 
 27.19  groups, nonprofit service providers, and local workforce 
 27.20  councils in the development of both performance standards and 
 27.21  reporting requirements.  The adult standards must at a minimum 
 27.22  measure: 
 27.23     (1) the employability levels of individuals as defined by 
 27.24  basic skill level, the amount of work experience, and barriers 
 27.25  to employment prior to program entry; 
 27.26     (2) the individual's annual income and employability level 
 27.27  for the 12 months prior to entering the program, the starting 
 27.28  annual income upon placement after completing the program, 
 27.29  employability level and annual income one year after completion 
 27.30  of the program, and the individual's reported satisfaction; 
 27.31     (3) the program completion rate, placement rate, 
 27.32  employability level upon placement, and one-year retention rate; 
 27.33  and 
 27.34     (4) the governmental cost per placement and per job 
 27.35  retained at one year and the percentage of program funding 
 27.36  coming from the state and other levels of government. 
 28.1   After January 15, 2002, all workforce development programs 
 28.2   receiving state funds must submit an annual performance report 
 28.3   to the board.  The board may develop a uniform format for the 
 28.4   report and prescribe the manner in which the report is required 
 28.5   to be submitted.  
 28.6      Sec. 5.  Minnesota Statutes 2000, section 116L.05, is 
 28.7   amended by adding a subdivision to read: 
 28.8      Subd. 4.  [LEGISLATIVE RECOMMENDATIONS.] By January 15 of 
 28.9   each odd-numbered year, the board must submit recommendations to 
 28.10  the house and senate committees with jurisdiction over workforce 
 28.11  development programs, regarding modifications to, or elimination 
 28.12  of, existing workforce development programs and the potential 
 28.13  implementation of new programs.  The recommendations must 
 28.14  include recommendations regarding funding levels and sources.  
 28.15     Sec. 6.  Minnesota Statutes 2000, section 116L.16, is 
 28.16  amended to read: 
 28.17     116L.16 [DISTANCE-WORK GRANTS.] 
 28.18     The job skills partnership board may make grants-in-aid for 
 28.19  distance-work projects.  The purpose of the grants is to promote 
 28.20  distance-work projects involving technology in rural areas and 
 28.21  may include a consortium of organizations partnering in the 
 28.22  development of rural technology industry.  Grants may be used to 
 28.23  identify and train rural workers in technology, act as a 
 28.24  catalyst to bring together employers and rural employees to 
 28.25  perform distance work, and provide rural workers with physical 
 28.26  connections to telecommunications infrastructure, where 
 28.27  necessary, in order to be self-employed or employed from their 
 28.28  homes or satellite offices.  Grants must be made according to 
 28.29  sections 116L.02 and 116L.04, except that: 
 28.30     (1) the business match may include, but is not limited 
 28.31  to, office space; additional management or technology staff 
 28.32  costs; start-up equipment costs such as telecommunications 
 28.33  infrastructure, additional software, or computer upgrades; 
 28.34  consulting fees for implementation of distance-work policies or 
 28.35  identification and skill assessment of potential employees; and 
 28.36  the joint financial contribution of two or more businesses 
 29.1   acting as a consortium; 
 29.2      (2) cash or in-kind contributions by partnering 
 29.3   organizations may be used as a match; 
 29.4      (3) eligible grantees may be educational or nonprofit 
 29.5   educational training organizations; and 
 29.6      (4) grants-in-aid may be packaged with loans under section 
 29.7   116L.06, subdivision 6; and 
 29.8      (5) with respect to grants serving as a catalyst to bring 
 29.9   together employers and rural employees to perform distance work, 
 29.10  the match must be at least one-to-two. 
 29.11     The board shall, to the extent there are sufficient 
 29.12  applications, make grant awards to as many parts of the state as 
 29.13  possible.  Subject to the requirement for geographic 
 29.14  distribution of grants, preference shall be given to grant 
 29.15  applications that provide the most cost-effective training 
 29.16  proposals, that provide the best prospects for high-paying jobs 
 29.17  with high retention rates, or that are from more economically 
 29.18  distressed rural areas or communities. 
 29.19     Grantees must meet reporting and evaluation requirements 
 29.20  established by the board. 
 29.21     Sec. 7.  [116L.17] [STATE DISLOCATED WORKER PROGRAM.] 
 29.22     Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
 29.23  section, the following terms have the meanings given them in 
 29.24  this subdivision. 
 29.25     (b) "Dislocated worker" means an individual who is a 
 29.26  resident of Minnesota at the time employment ceased or was 
 29.27  working in the state at the time employment ceased and: 
 29.28     (1) has been terminated or has received a notice of 
 29.29  termination from public or private sector employment, is 
 29.30  eligible for or has exhausted entitlement to unemployment 
 29.31  benefits, and is unlikely to return to the previous industry or 
 29.32  occupation; 
 29.33     (2) has been terminated or has received a notice of 
 29.34  termination of employment as a result of any plant closing or 
 29.35  any substantial layoff at a plant, facility, or enterprise; 
 29.36     (3) has been long-term unemployed and has limited 
 30.1   opportunities for employment or reemployment in the same or a 
 30.2   similar occupation in the area in which the individual resides, 
 30.3   including older individuals who may have substantial barriers to 
 30.4   employment by reason of age; 
 30.5      (4) has been self-employed, including farmers and ranchers, 
 30.6   and is unemployed as a result of general economic conditions in 
 30.7   the community in which the individual resides or because of 
 30.8   natural disasters, subject to rules to be adopted by the 
 30.9   commissioner; 
 30.10     (5) has been self-employed as a farmer or rancher and, even 
 30.11  though that employment has not ceased, has experienced a 
 30.12  significant reduction in income due to inadequate crop or 
 30.13  livestock prices, crop failures, or significant loss in crop 
 30.14  yields due to pests, disease, adverse weather, or other natural 
 30.15  phenomenon.  This clause expires July 31, 2003; or 
 30.16     (6) is a displaced homemaker.  A "displaced homemaker" is 
 30.17  an individual who has spent a substantial number of years in the 
 30.18  home providing homemaking service and (i) has been dependent 
 30.19  upon the financial support of another; and now due to divorce, 
 30.20  separation, death, or disability of that person, must find 
 30.21  employment to self support; or (ii) derived the substantial 
 30.22  share of support from public assistance on account of dependents 
 30.23  in the home and no longer receives such support. 
 30.24     To be eligible under this clause, the support must have 
 30.25  ceased while the worker resided in Minnesota.  
 30.26     (c) "Eligible organization" means a state or local 
 30.27  government unit, nonprofit organization, community action 
 30.28  agency, business organization or association, or labor 
 30.29  organization. 
 30.30     (d) "Plant closing" means the announced or actual permanent 
 30.31  shutdown of a single site of employment, or one or more 
 30.32  facilities or operating units within a single site of employment.
 30.33     (e) "Substantial layoff" means a permanent reduction in the 
 30.34  workforce, which is not a result of a plant closing, and which 
 30.35  results in an employment loss at a single site of employment 
 30.36  during any 30-day period for at least 50 employees excluding 
 31.1   those employees that work less than 20 hours per week. 
 31.2      Subd. 2.  [GRANTS.] The board shall make grants to 
 31.3   workforce service areas or other eligible organizations to 
 31.4   provide services to dislocated workers.  The board shall 
 31.5   allocate funds available for the purposes of this section in its 
 31.6   discretion to respond to large layoffs.  The board shall 
 31.7   regularly allocate funds to provide services to individual 
 31.8   dislocated workers or small groups.  The allocation for this 
 31.9   purpose must be no less than 35 percent and no more than 50 
 31.10  percent of the projected collections, interest and other 
 31.11  earnings of the workforce development fund during the period for 
 31.12  which the allocation is made, less any collection costs paid out 
 31.13  of the fund.  The board shall consider the need for services to 
 31.14  individual workers and workers in small layoffs in comparison to 
 31.15  those in large layoffs relative to the needs in previous years 
 31.16  when making this allocation.  The board may, in its discretion, 
 31.17  allocate funds carried forward from previous years under 
 31.18  subdivision 9 for large, small, or individual layoffs. 
 31.19     Subd. 3.  [ALLOCATION OF FUNDS.] The board, in consultation 
 31.20  with local workforce councils and local elected officials, shall 
 31.21  develop a method of distributing funds to provide services for 
 31.22  dislocated workers who are dislocated as a result of small or 
 31.23  individual layoffs.  The board shall consider current requests 
 31.24  for services and the likelihood of future layoffs when making 
 31.25  this allocation.  The board shall consider factors for 
 31.26  determining the allocation amounts that include, but are not 
 31.27  limited to, the previous year's obligations and projected 
 31.28  layoffs.  After the first quarter of the program year, the board 
 31.29  shall evaluate the obligations by workforce service areas for 
 31.30  the purpose of reallocating funds to workforce service areas 
 31.31  with increased demand for services.  Periodically throughout the 
 31.32  program year, the board shall consider making additional 
 31.33  allocations to the workforce service areas with a demonstrated 
 31.34  need for increased funding.  The board shall make an initial 
 31.35  determination regarding allocations under this subdivision by 
 31.36  July 15, 2001, and in subsequent years shall make a 
 32.1   determination by April 15. 
 32.2      <b>[EFFECTIVE DATE.]</b> This subdivision is effective the day 
 32.3   following final enactment. 
 32.4      Subd. 4.  [USE OF FUNDS.] Funds granted by the board under 
 32.5   this section may be used for any combination of the following, 
 32.6   except as otherwise provided in this section: 
 32.7      (1) employment transition services such as developing 
 32.8   readjustment plans for individuals; outreach and intake; early 
 32.9   readjustment; job or career counseling; testing; orientation; 
 32.10  assessment of skills and aptitudes; provision of occupational 
 32.11  and labor market information; job placement assistance; job 
 32.12  search; job development; prelayoff assistance; relocation 
 32.13  assistance; and programs provided in cooperation with employers 
 32.14  or labor organizations to provide early intervention in the 
 32.15  event of plant closings or substantial layoffs; 
 32.16     (2) services that will allow the participant to become 
 32.17  reemployed by retraining for a new occupation or industry, 
 32.18  enhancing current skills, or relocating to employ existing 
 32.19  skills, including classroom training; occupational skill 
 32.20  training; on-the-job training; out-of-area job search; 
 32.21  relocation; basic and remedial education; literacy and English 
 32.22  for training non-English speakers; entrepreneurial training; and 
 32.23  other appropriate training activities directly related to 
 32.24  appropriate employment opportunities in the local labor market; 
 32.25  and 
 32.26     (3) support services, including family care assistance, 
 32.27  including child care; commuting assistance; housing and rental 
 32.28  assistance; counseling assistance, including personal and 
 32.29  financial; health care; emergency health assistance; emergency 
 32.30  financial assistance; work-related tools and clothing; and other 
 32.31  appropriate support services that enable a person to participate 
 32.32  in an employment and training program. 
 32.33     Subd. 5.  [COST LIMITATIONS.] Funds allocated to a grantee 
 32.34  are subject to the following cost limitations: 
 32.35     (1) no more than 10 percent may be allocated for 
 32.36  administration; 
 33.1      (2) at least 50 percent must be allocated for training 
 33.2   assistance as provided in subdivision 4, clause (2); and 
 33.3      (3) no more than 15 percent may be allocated for support 
 33.4   services as provided in subdivision 4, clause (3). 
 33.5      A waiver of the training assistance minimum in clause (2) 
 33.6   may be sought, but no waiver shall allow less than 30 percent of 
 33.7   the grant to be spent on training assistance.  A waiver of the 
 33.8   support services maximum in clause (3) may be sought, but no 
 33.9   waiver shall allow more than 20 percent of the grant to be spent 
 33.10  on support services. 
 33.11     Subd. 6.  [PERFORMANCE STANDARDS.] (a) The board, in 
 33.12  consultation with representatives of local workforce councils 
 33.13  and local elected officials, shall establish performance 
 33.14  standards for the programs and activities administered or funded 
 33.15  under this section.  The board may use, when appropriate, 
 33.16  existing federal performance standards or, if the commissioner 
 33.17  determines that federal standards are inadequate or not 
 33.18  suitable, may formulate new performance standards to ensure that 
 33.19  the programs and activities of the dislocated worker program are 
 33.20  effectively administered. 
 33.21     (b) The board shall, at a minimum, establish performance 
 33.22  standards that appropriately gauge the program's effectiveness 
 33.23  at placing dislocated workers in employment, replacing lost 
 33.24  income resulting from dislocation, early intervention with 
 33.25  workers shortly after dislocation, and retraining of workers 
 33.26  from one industry or occupation to another. 
 33.27     Subd. 7.  [REPORTS.] (a) Grantees receiving funds under 
 33.28  this section shall report to the board information on program 
 33.29  participants, activities funded, and utilization of funds in a 
 33.30  form and manner prescribed by the board. 
 33.31     (b) The board shall report quarterly to the workforce 
 33.32  development council information on grants awarded, activities 
 33.33  funded, and plant closings and substantial layoffs.  Specific 
 33.34  information to be reported shall be by agreement between the 
 33.35  board and the workforce development council. 
 33.36     Subd. 8.  [ADMINISTRATIVE COSTS.] No more than three 
 34.1   percent of the funds appropriated to the board for the purposes 
 34.2   of this section may be spent by the board for its administrative 
 34.3   costs. 
 34.4      Subd. 9.  [CARRY FORWARD.] Any funds not allocated, 
 34.5   obligated, or expended in a fiscal year shall be available for 
 34.6   allocation, obligation, and expenditure in the following fiscal 
 34.7   year. 
 34.8      Sec. 8.  Minnesota Statutes 2000, section 138.664, is 
 34.9   amended by adding a subdivision to read: 
 34.10     Subd. 50a.  Little Elk Heritage Preserve, Morrison county. 
 34.11     Sec. 9.  [181.9455] [LEAVE FOR ORGAN DONATION.] 
 34.12     Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
 34.13  section, the following terms have the meanings given to them in 
 34.14  this subdivision. 
 34.15     (b) "Employee" means a person who performs services for 
 34.16  hire for a public employer, for an average of 20 or more hours 
 34.17  per week, and includes all individuals employed at any site 
 34.18  owned or operated by a public employer.  Employee does not 
 34.19  include an independent contractor. 
 34.20     (c) "Employer" means a state, county, city, town, school 
 34.21  district, or other governmental subdivision that employs 20 or 
 34.22  more employees. 
 34.23     Subd. 2.  [LEAVE.] An employer must grant paid leaves of 
 34.24  absence to an employee who seeks to undergo a medical procedure 
 34.25  to donate an organ or partial organ to another person.  The 
 34.26  combined length of the leaves shall be determined by the 
 34.27  employee, but may not exceed 40 work hours for each donation, 
 34.28  unless agreed to by the employer.  The employer may require 
 34.29  verification by a physician of the purpose and length of each 
 34.30  leave requested by the employee for organ donation.  If there is 
 34.31  a medical determination that the employee does not qualify as an 
 34.32  organ donor, the paid leave of absence granted to the employee 
 34.33  prior to that medical determination is not forfeited. 
 34.34     Subd. 3.  [NO EMPLOYER SANCTIONS.] An employer shall not 
 34.35  retaliate against an employee for requesting or obtaining a 
 34.36  leave of absence as provided by this section. 
 35.1      Subd. 4.  [RELATIONSHIP TO OTHER LEAVE.] This section does 
 35.2   not prevent an employer from providing leave for organ donations 
 35.3   in addition to leave allowed under this section.  This section 
 35.4   does not affect an employee's rights with respect to any other 
 35.5   employment benefit. 
 35.6      Subd. 5.  [REPORT.] The commissioner of employee relations 
 35.7   must report to the legislature on the use and costs of the leave 
 35.8   under this section. The report must be made by February 15, 2003.
 35.9      Subd. 6.  [SUNSET.] This section expires on June 30, 2004. 
 35.10     Sec. 10.  Minnesota Statutes 2000, section 184.29, is 
 35.11  amended to read: 
 35.12     184.29 [FEES.] 
 35.13     Before a license is granted to an applicant, the applicant 
 35.14  shall pay the following fee: 
 35.15     (a) An employment agent shall pay an annual license fee of 
 35.16  $250 for each license.  
 35.17     (b) A search firm exempt under section 184.22, subdivision 
 35.18  2, shall pay an annual registration fee of $250, accompanying 
 35.19  the annual statement to the commissioner.  
 35.20     (c) An applicant for a counselor's license shall pay a 
 35.21  license fee of $20 and a renewal fee of $10.  
 35.22     (d) (c) An applicant for an employment agency manager's 
 35.23  license shall pay a license fee of $20 and a renewal fee of $10. 
 35.24     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003. 
 35.25     Sec. 11.  Minnesota Statutes 2000, section 184.30, 
 35.26  subdivision 1, is amended to read: 
 35.27     Subdivision 1.  Every application for an employment 
 35.28  agency's license, and every annual report required to be filed 
 35.29  under section 184.22, subdivision 2, must be accompanied by a 
 35.30  surety bond approved by the department in the amount of $10,000 
 35.31  for each location; except, that for a search firm, the bond is 
 35.32  required only for the first five years of registration.  For a 
 35.33  search firm that was previously licensed as an employment 
 35.34  agency, the bond is required only until the firm has met the 
 35.35  bond requirement as an agency or as a search firm for a total of 
 35.36  at least five years.  The bond must be filed in the office of 
 36.1   the secretary of state and conditioned that the employment 
 36.2   agency and each member, shareholder, director, or officer of a 
 36.3   firm, partnership, corporation, or association operating as an 
 36.4   employment agency will comply with the provisions of sections 
 36.5   184.21 to 184.40 and any contract made by the employment agent 
 36.6   in the conduct of the business.  A person damaged by a breach of 
 36.7   any condition of the bond may bring an action on the bond, and 
 36.8   successive actions may be maintained on it. 
 36.9      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003. 
 36.10     Sec. 12.  Minnesota Statutes 2000, section 184.38, 
 36.11  subdivision 6, is amended to read: 
 36.12     Subd. 6.  (a) No employment agent or search firm shall send 
 36.13  out any applicant for employment without having obtained a job 
 36.14  order, and if no employment of the kind applied for existed at 
 36.15  the place to which the applicant was directed, the employment 
 36.16  agent or search firm shall refund to the applicant, within 48 
 36.17  hours of demand, any sums paid by the applicant for 
 36.18  transportation in going to and returning from the place. 
 36.19     (b) Nothing in this chapter shall be construed to prevent 
 36.20  an employment agent or search firm from directing an applicant 
 36.21  to an employer where the employer has previously requested 
 36.22  interviews with applicants of certain types and qualifications, 
 36.23  even though no actual vacancy existed in the employer's 
 36.24  organization at the time the applicant was so directed; nor 
 36.25  shall it prevent the employment agent or search firm from 
 36.26  attempting to sell the services of an applicant to the employer 
 36.27  even though no order has been placed with the employment agent 
 36.28  or search firm; provided, that prior to scheduling an interview 
 36.29  with an employer, when no opening currently exists with that 
 36.30  employer, the applicant is clearly informed that no opening 
 36.31  exists at that time. 
 36.32     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003. 
 36.33     Sec. 13.  Minnesota Statutes 2000, section 184.38, 
 36.34  subdivision 8, is amended to read: 
 36.35     Subd. 8.  No employment agent or search firm shall 
 36.36  knowingly cause to be printed or published a false or fraudulent 
 37.1   notice or advertisement for help or for obtaining work or 
 37.2   employment.  For purposes of this subdivision the phrase "false 
 37.3   or fraudulent notice or advertisement" shall include the 
 37.4   following: 
 37.5      (a) The advertisement of any job for which there is no bona 
 37.6   fide oral or written job order and completed job order form in 
 37.7   existence at the time the advertisement is placed; 
 37.8      (b) The inclusion in any advertisement of any information 
 37.9   concerning the identity, availability, features, or requirements 
 37.10  of any advertised job when such information is not substantiated 
 37.11  by, and included in, the supporting job order form; 
 37.12     (c) The advertisement of any job opening of the type 
 37.13  described in subdivision 6, clause (b); 
 37.14     (d) The advertisement of any job without the inclusion in 
 37.15  the advertisement of the "job order number" required in 
 37.16  subdivision 18; 
 37.17     (e) If an applicant appears at any agency or search firm in 
 37.18  response to the advertisement of a particular job, the failure 
 37.19  to attempt placement of the applicant in the advertised job; 
 37.20  provided however, that the agency or search firm may refuse to 
 37.21  attempt such placement if the reason(s) for the refusal are 
 37.22  clearly and truthfully disclosed to the applicant either orally 
 37.23  or in writing. 
 37.24     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003. 
 37.25     Sec. 14.  Minnesota Statutes 2000, section 184.38, 
 37.26  subdivision 9, is amended to read: 
 37.27     Subd. 9.  No employment agent or search firm shall place or 
 37.28  assist in placing any person in unlawful employment. 
 37.29     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003. 
 37.30     Sec. 15.  Minnesota Statutes 2000, section 184.38, 
 37.31  subdivision 10, is amended to read: 
 37.32     Subd. 10.  No employment agent or search firm shall fail to 
 37.33  state in any advertisement, proposal, or contract for 
 37.34  employment, that there is a strike or lockout at the place of 
 37.35  proposed employment, if the agent or firm has knowledge that 
 37.36  such condition exists. 
 38.1      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003. 
 38.2      Sec. 16.  Minnesota Statutes 2000, section 184.38, 
 38.3   subdivision 11, is amended to read: 
 38.4      Subd. 11.  No employment agency or its employee may split, 
 38.5   divide, or share, directly or indirectly, any fee, charge, or 
 38.6   compensation received from any employer or applicant with any 
 38.7   employer, or person in any way connected with the employer's 
 38.8   business.  No search firm or its employee may split, divide, or 
 38.9   share, directly or indirectly, any fee, charge, or compensation 
 38.10  received from any employer with any person connected in any way 
 38.11  with the employer's business.  A violation of this subdivision 
 38.12  shall be punished by a fine of not less than $100, and not more 
 38.13  than $3,000, or on failure to pay the fine by imprisonment for a 
 38.14  period not to exceed one year, or both, at the discretion of the 
 38.15  court. 
 38.16     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003. 
 38.17     Sec. 17.  Minnesota Statutes 2000, section 184.38, 
 38.18  subdivision 17, is amended to read: 
 38.19     Subd. 17.  Except for applicant information given in the 
 38.20  course of normal agency or firm operations, no employment agent 
 38.21  or search firm shall voluntarily sell, give, or otherwise 
 38.22  transfer any files, records, or other information relating to 
 38.23  its employment agency or search firm applicants and employers to 
 38.24  any person other than a licensed employment agent or registered 
 38.25  search firm or a person who agrees to obtain an employment 
 38.26  agency license or register as a search firm.  Every employment 
 38.27  agent or search firm who ceases to engage in the business of or 
 38.28  act as an employment agent or search firm shall notify the 
 38.29  department of such fact within 30 days thereof, and shall advise 
 38.30  the department as to the disposition of all files and other 
 38.31  records relating to its employment agency or search firm 
 38.32  business. 
 38.33     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003. 
 38.34     Sec. 18.  Minnesota Statutes 2000, section 184.38, 
 38.35  subdivision 18, is amended to read: 
 38.36     Subd. 18.  Every job order communicated to an agency or 
 39.1   search firm shall be recorded by the agency or search firm on a 
 39.2   job order form which form shall contain specific information as 
 39.3   prescribed by the department.  A job order form shall be filled 
 39.4   out for each job order prior to any attempt to advertise the job 
 39.5   opening or to place persons in said job.  Such forms shall each 
 39.6   be assigned a separate number and shall be maintained by the 
 39.7   agency or search firm for a period of one year. 
 39.8      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003. 
 39.9      Sec. 19.  Minnesota Statutes 2000, section 184.38, 
 39.10  subdivision 20, is amended to read: 
 39.11     Subd. 20.  No employment agent or search firm shall 
 39.12  knowingly misrepresent to any employer the educational 
 39.13  background, skills, or qualifications of any job candidate; or 
 39.14  knowingly misrepresent to a job candidate the responsibilities, 
 39.15  salary, or other features of any position of employment.  
 39.16     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003. 
 39.17     Sec. 20.  Minnesota Statutes 2000, section 184.41, is 
 39.18  amended to read: 
 39.19     184.41 [VIOLATIONS.] 
 39.20     Any person who engages in the business of or acts as an 
 39.21  employment agent or counselor without first procuring a license 
 39.22  as required by section 184.22, and any employment agent, 
 39.23  manager, or counselor who violates the provisions of this 
 39.24  chapter, and any exempt firm which violates any of the 
 39.25  applicable provisions of this chapter, is guilty of a 
 39.26  misdemeanor.  
 39.27     In addition to the penalties for commission of a 
 39.28  misdemeanor, the department may bring an action for an 
 39.29  injunction against any person who engages in the business of or 
 39.30  acts as an employment agent or counselor without first procuring 
 39.31  the license required under section 184.22, or who engages in the 
 39.32  business of or acts as a search firm without first filing the 
 39.33  registration required under section 184.22, subdivision 3, and 
 39.34  against any employment agent, manager, or counselor, or search 
 39.35  firm who violates the applicable provisions of this chapter.  If 
 39.36  an agency, manager, or counselor, or search firm is found guilty 
 40.1   of a misdemeanor in any action relevant to the operation of an 
 40.2   agency, or search firm the department may suspend or revoke the 
 40.3   license or registration of the agency, manager, or counselor, or 
 40.4   search firm. 
 40.5      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003. 
 40.6      Sec. 21.  Minnesota Statutes 2000, section 216C.41, as 
 40.7   amended by Laws 2001, chapter 212, article 5, section 1, is 
 40.8   amended to read: 
 40.9      216C.41 [RENEWABLE ENERGY PRODUCTION INCENTIVE.] 
 40.10     Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
 40.11  subdivision apply to this section. 
 40.12     (b) "Qualified hydroelectric facility" means a 
 40.13  hydroelectric generating facility in this state that: 
 40.14     (1) is located at the site of a dam, if the dam was in 
 40.15  existence as of March 31, 1994; and 
 40.16     (2) begins generating electricity after July 1, 1994, or 
 40.17  generates electricity after substantial refurbishing of a 
 40.18  facility that begins after July 1, 2001. 
 40.19     (c) "Qualified wind energy conversion facility" means a 
 40.20  wind energy conversion system that: 
 40.21     (1) produces two megawatts or less of electricity as 
 40.22  measured by nameplate rating and begins generating electricity 
 40.23  after June 30, 1997 December 31, 1996, and before July 1, 1999; 
 40.24     (2) begins generating electricity after June 30, 1999, 
 40.25  produces two megawatts or less of electricity as measured by 
 40.26  nameplate rating, and is: 
 40.27     (i) located within one county and owned by a natural person 
 40.28  who owns the land where the facility is sited; 
 40.29     (ii) owned by a Minnesota small business as defined in 
 40.30  section 645.445; 
 40.31     (iii) owned by a nonprofit organization; or 
 40.32     (iv) owned by a tribal council if the facility is located 
 40.33  within the boundaries of the reservation; or 
 40.34     (3) begins generating electricity after June 30, 1999, 
 40.35  produces seven megawatts or less of electricity as measured by 
 40.36  nameplate rating, and: 
 41.1      (i) is owned by a cooperative organized under chapter 308A; 
 41.2   and 
 41.3      (ii) all shares and membership in the cooperative are held 
 41.4   by natural persons or estates, at least 51 percent of whom 
 41.5   reside in a county or contiguous to a county where the wind 
 41.6   energy production facilities of the cooperative are located. 
 41.7      (d) "Qualified on-farm biogas recovery facility" means an 
 41.8   anaerobic digester system that: 
 41.9      (1) is located at the site of an agricultural operation; 
 41.10     (2) is owned by a natural person who owns or rents the land 
 41.11  where the facility is located; and 
 41.12     (3) begins generating electricity after July 1, 2001.  
 41.13     (e) "Anaerobic digester system" means a system of 
 41.14  components that processes animal waste based on the absence of 
 41.15  oxygen and produces gas used to generate electricity. 
 41.16     Subd. 2.  [INCENTIVE PAYMENT; APPROPRIATION.] (a) Incentive 
 41.17  payments shall must be made according to this section to (1) a 
 41.18  qualified on-farm biogas recovery facility, (2) the owner or 
 41.19  operator of a qualified hydropower facility or qualified wind 
 41.20  energy conversion facility for electric energy generated and 
 41.21  sold by the facility or, for, (3) a publicly owned hydropower 
 41.22  facility, for electric energy that is generated by the facility 
 41.23  and used by the owner of the facility outside the facility, or 
 41.24  (4) the owner of a publicly owned dam that is in need of 
 41.25  substantial repair, for electric energy that is generated by a 
 41.26  hydropower facility at the dam and the annual incentive payments 
 41.27  will be used to fund the structural repairs and replacement of 
 41.28  structural components of the dam, or to retire debt incurred to 
 41.29  fund those repairs.  
 41.30     (b) Payment may only be made upon receipt by the 
 41.31  commissioner of finance of an incentive payment application that 
 41.32  establishes that the applicant is eligible to receive an 
 41.33  incentive payment and that satisfies other requirements the 
 41.34  commissioner deems necessary.  The application shall must be in 
 41.35  a form and submitted at a time the commissioner establishes.  
 41.36     (c) There is annually appropriated from the general fund 
 42.1   sums sufficient to make the payments required under this section.
 42.2      Subd. 3.  [ELIGIBILITY WINDOW.] Payments may be made under 
 42.3   this section only for electricity generated: 
 42.4      (1) from a qualified hydroelectric facility that is 
 42.5   operational and generating electricity before December 31, 
 42.6   2002 2005; or 
 42.7      (2) from a qualified wind energy conversion facility that 
 42.8   is operational and generating electricity before January 1, 
 42.9   2005; or 
 42.10     (3) from a qualified on-farm biogas recovery facility from 
 42.11  July 1, 2001, through December 31, 2015. 
 42.12     Subd. 4.  [PAYMENT PERIOD.] (a) A facility may receive 
 42.13  payments under this section for a ten-year period.  No payment 
 42.14  under this section may be made for electricity generated: 
 42.15     (1) by a qualified hydroelectric facility after December 
 42.16  31, 2010 2015; or 
 42.17     (2) by a qualified wind energy conversion facility after 
 42.18  December 31, 2015; or 
 42.19     (3) by a qualified on-farm biogas recovery facility after 
 42.20  December 31, 2015.  
 42.21     (b) The payment period begins and runs consecutively from 
 42.22  the first year in which electricity generated from the facility 
 42.23  is eligible for incentive payment or after substantial repairs 
 42.24  to the hydropower facility dam funded by the incentive payments 
 42.25  are initiated. 
 42.26     Subd. 5.  [AMOUNT OF PAYMENT.] An incentive payment is 
 42.27  based on the number of kilowatt hours of electricity generated. 
 42.28  The amount of the payment is: 
 42.29     (1) for a facility described under subdivision 2, paragraph 
 42.30  (a), clause (4), 1.0 cents per kilowatt hour; and 
 42.31     (2) for all other facilities, 1.5 cents per kilowatt hour.  
 42.32     For electricity generated by qualified wind energy 
 42.33  conversion facilities, the incentive payment under this section 
 42.34  is limited to no more than 100 megawatts of nameplate capacity.  
 42.35  During any period in which qualifying claims for incentive 
 42.36  payments exceed 100 megawatts of nameplate capacity, the 
 43.1   payments must be made to producers in the order in which the 
 43.2   production capacity was brought into production.  
 43.3      Sec. 22.  Minnesota Statutes 2000, section 268.022, 
 43.4   subdivision 2, is amended to read: 
 43.5      Subd. 2.  [DISBURSEMENT OF SPECIAL ASSESSMENT FUNDS.] (a) 
 43.6   The money collected under this section shall be deposited in the 
 43.7   state treasury and credited to the workforce development fund to 
 43.8   provide for employment and training programs.  The workforce 
 43.9   development fund is created as a special account in the state 
 43.10  treasury. 
 43.11     (b) All money in the fund not otherwise appropriated or 
 43.12  transferred is appropriated to the commissioner who job skills 
 43.13  partnership board for the purposes of section 116L.17.  The 
 43.14  board must act as the fiscal agent for the money and must 
 43.15  disburse that money for the purposes of this section 116L.17, 
 43.16  not allowing the money to be used for any other obligation of 
 43.17  the state.  All money in the workforce development fund shall be 
 43.18  deposited, administered, and disbursed in the same manner and 
 43.19  under the same conditions and requirements as are provided by 
 43.20  law for the other special accounts in the state treasury, except 
 43.21  that all interest or net income resulting from the investment or 
 43.22  deposit of money in the fund shall accrue to the fund for the 
 43.23  purposes of the fund. 
 43.24     (c) No more than five percent of the funds collected in 
 43.25  each fiscal year may be used by the department of economic 
 43.26  security for its administrative costs. 
 43.27     (d) Reimbursement for costs related to collection of the 
 43.28  special assessment shall be in an amount negotiated between the 
 43.29  commissioner and the United States Department of Labor. 
 43.30     (e) The funds appropriated to the commissioner, less 
 43.31  amounts under paragraphs (c) and (d) shall be allocated as 
 43.32  follows:  
 43.33     (1) 40 percent to be allocated annually to substate 
 43.34  grantees for provision of expeditious response activities under 
 43.35  section 268.9771 and worker adjustment services under section 
 43.36  268.9781; and 
 44.1      (2) 60 percent to be allocated to activities and programs 
 44.2   authorized under sections 268.975 to 268.98. 
 44.3      (f) Any funds not allocated, obligated, or expended in a 
 44.4   fiscal year shall be available for allocation, obligation, and 
 44.5   expenditure in the following fiscal year. 
 44.6      Sec. 23.  Minnesota Statutes 2000, section 268.145, 
 44.7   subdivision 1, is amended to read: 
 44.8      Subdivision 1.  [NOTIFICATION.] (a) Upon filing an 
 44.9   application for unemployment benefits, the applicant shall be 
 44.10  informed that: 
 44.11     (1) unemployment benefits are subject to federal and state 
 44.12  income tax; 
 44.13     (2) there are requirements for filing estimated tax 
 44.14  payments; 
 44.15     (3) the applicant may elect to have federal income tax 
 44.16  withheld from unemployment benefits; 
 44.17     (4) if the applicant elects to have federal income tax 
 44.18  withheld, the applicant may, in addition, elect to have 
 44.19  Minnesota state income tax withheld; and 
 44.20     (5) at any time during the benefit year the applicant may 
 44.21  change a prior election. 
 44.22     (b) If an applicant elects to have federal income tax 
 44.23  withheld, the commissioner shall deduct 15 ten percent for 
 44.24  federal income tax, rounded to the nearest whole dollar.  If an 
 44.25  applicant also elects to have Minnesota state income tax 
 44.26  withheld, the commissioner shall make an additional five percent 
 44.27  deduction for state income tax.  Any amounts deducted or offset 
 44.28  pursuant to sections 268.155, 268.156, 268.18, and 268.184 have 
 44.29  priority over any amounts deducted under this section.  Federal 
 44.30  income tax withholding has priority over state income tax 
 44.31  withholding. 
 44.32     (c) An election to have income tax withheld shall not be 
 44.33  retroactive and shall only apply to unemployment benefits paid 
 44.34  after the election. 
 44.35     <b>[EFFECTIVE DATE.]</b> This section is effective August 1, 2001. 
 44.36     Sec. 24.  Minnesota Statutes 2000, section 268.665, is 
 45.1   amended by adding a subdivision to read: 
 45.2      Subd. 3a.  [EXECUTIVE COMMITTEE DUTIES.] The executive 
 45.3   committee must, with advice and input of local workforce 
 45.4   councils and other stakeholders as appropriate, develop 
 45.5   performance standards for the state workforce centers.  By 
 45.6   January 15, 2002, and each odd-numbered year thereafter, the 
 45.7   executive committee shall submit a report to the senate and 
 45.8   house committees with jurisdiction over workforce development 
 45.9   programs regarding the performance and outcomes of the workforce 
 45.10  centers.  The report must provide recommendations regarding 
 45.11  workforce center funding levels and sources, program changes, 
 45.12  and administrative changes.  
 45.13     Sec. 25.  Minnesota Statutes 2000, section 473.195, is 
 45.14  amended by adding a subdivision to read: 
 45.15     Subd. 5.  [HRA GOVERNING BOARD.] For the purposes of 
 45.16  exercising the authority granted to it under this section, the 
 45.17  council may, at its sole discretion, establish within the 
 45.18  council's existing organizational structure a separate governing 
 45.19  body to which the council may delegate any or all of the 
 45.20  authority granted to the council under this section.  The 
 45.21  resolution establishing the separate governing body must: 
 45.22     (1) set out the powers and duties delegated to the separate 
 45.23  governing body; 
 45.24     (2) prescribe the number, qualifications, and terms of its 
 45.25  members; and 
 45.26     (3) provide for any other terms and conditions that are 
 45.27  deemed appropriate by the council. 
 45.28  The council shall appoint the members of the separate governing 
 45.29  body in accordance with a process established by the council.  
 45.30  No fewer than 75 percent of the members of the separate 
 45.31  governing body must be council members.  For purposes of 
 45.32  compliance with United State Code, title 42, section 1437(b), 
 45.33  and implementing federal regulations, at least one member of the 
 45.34  separate governing body members must be a resident directly 
 45.35  assisted by the council.  Members are entitled to reimbursement 
 45.36  for all actual and necessary expenses incurred in the 
 46.1   performance of governing body business, and a member other than 
 46.2   a council member is entitled to payment of $50 for each day the 
 46.3   member attends one or more meetings of the separate governing 
 46.4   body or performs other services authorized by the body.  The 
 46.5   council shall provide administrative and staff support to the 
 46.6   separate governing body.  The council may, at its sole 
 46.7   discretion, abolish the separate governing body or limit or 
 46.8   expand its delegated authority.  Nothing in this section impairs 
 46.9   existing contracts to which the council is a party or limits the 
 46.10  council's ability to enter into contracts when the council 
 46.11  exercises any of the functions, rights, powers, duties, 
 46.12  privileges, immunities, and limitations granted to the council 
 46.13  by this section. 
 46.14     Sec. 26.  Laws 1993, chapter 301, section 1, subdivision 4, 
 46.15  as amended by Laws 1999, chapter 47, section 1, is amended to 
 46.16  read: 
 46.17     Subd. 4.  [WAIVER.] (a) Upon receipt of the committee 
 46.18  report required by subdivision 3, each entity head shall submit 
 46.19  the list of recommended waivers to the commissioner of employee 
 46.20  relations.  The commissioner shall then grant the waivers 
 46.21  requested by each entity, effective for the requesting entity, 
 46.22  for a period ending June 30, 1997, except the waivers granted 
 46.23  for the Minnesota housing finance agency shall extend to June 
 46.24  30, 2001 2003, subject to the restrictions in paragraph (b) and 
 46.25  to revision in accordance with subdivision 5.  The commissioner 
 46.26  shall waive a rule by granting a variance under Minnesota 
 46.27  Statutes, section 14.05, subdivision 4.  
 46.28     (b) The commissioner may not grant a waiver if it would 
 46.29  result in the layoff of classified employees or unclassified 
 46.30  employees covered by a collective bargaining agreement except as 
 46.31  provided in a plan negotiated under Minnesota Statutes, chapter 
 46.32  179A, that provides options to layoff for employees who would be 
 46.33  affected.  If a proposed waiver would violate the terms of a 
 46.34  collective bargaining agreement reached under Minnesota 
 46.35  Statutes, chapter 179A, the waiver may not be granted without 
 46.36  the consent of the exclusive representative that is a party to 
 47.1   the agreement. 
 47.2      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
 47.3      Sec. 27.  Laws 1995, chapter 248, article 12, section 2, as 
 47.4   amended by Laws 1999, chapter 47, section 2, is amended to read: 
 47.5      Sec. 2.  [TERMINATION.] 
 47.6      Section 1 and the civil service pilot project in the 
 47.7   housing finance agency as authorized by Laws 1993, chapter 301, 
 47.8   terminate June 30, 2001 2003, or at any earlier time by a method 
 47.9   agreed upon by the commissioners of employee relations and 
 47.10  housing finance and the affected exclusive bargaining 
 47.11  representative of state employees. 
 47.12     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
 47.13     Sec. 28.  Laws 1995, chapter 248, article 13, section 2, 
 47.14  subdivision 2, as amended by Laws 1997, chapter 97, section 13, 
 47.15  is amended to read: 
 47.16     Subd. 2.  [PILOT PROJECT.] During the biennium ending June 
 47.17  30, 2001 2005, the governor shall designate an executive agency 
 47.18  that will conduct a pilot civil service project.  The pilot 
 47.19  program must adhere to the policies expressed in subdivision 1 
 47.20  and in Minnesota Statutes, section 43A.01.  For the purposes of 
 47.21  conducting the pilot project, the commissioner of the designated 
 47.22  agency is exempt from the provisions that relate to employment 
 47.23  in Minnesota Statutes, chapter 43A, Minnesota Rules, chapter 
 47.24  3900, and administrative procedures and policies of the 
 47.25  department of employee relations.  If a proposed exemption from 
 47.26  the provisions that relate to employment in Minnesota Statutes, 
 47.27  chapter 43A, Minnesota Rules, chapter 3900, and administrative 
 47.28  procedures and policies of the department of employee relations 
 47.29  would violate the terms of a collective bargaining agreement 
 47.30  effective under Minnesota Statutes, chapter 179A, the exemption 
 47.31  is not effective without the consent of the exclusive 
 47.32  representative that is a party to the agreement.  Upon request 
 47.33  of the commissioner carrying out the pilot project, the 
 47.34  commissioner of employee relations shall provide technical 
 47.35  assistance in support of the pilot project.  This section does 
 47.36  not exempt an agency from compliance with Minnesota Statutes, 
 48.1   sections 43A.19 and 43A.191, or from rules adopted to implement 
 48.2   those sections. 
 48.3      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
 48.4      Sec. 29.  [WORKFORCE CENTERS STRATEGIC PLAN.] 
 48.5      The executive committee of the governor's workforce 
 48.6   development council shall develop a strategic plan regarding the 
 48.7   appropriate placement and number of workforce centers within the 
 48.8   state.  The executive committee must consult with local 
 48.9   workforce boards when determining the placement and number of 
 48.10  workforce centers in their area.  The plan must recognize the 
 48.11  differing employment needs of various regions, the workforce 
 48.12  population within proximity of a center, and the potential for 
 48.13  colocation of the workforce centers with available educational 
 48.14  institutions.  By January 15, 2002, the executive committee 
 48.15  shall submit the plan and recommendations for closure or 
 48.16  consolidation of workforce centers to the senate and house 
 48.17  committees with jurisdiction over workforce development programs.
 48.18     Sec. 30.  [TRAINING FOR LOW-INCOME WORKERS.] 
 48.19     The job skills partnership board may operate a pilot 
 48.20  project to provide vouchers for individuals who are 
 48.21  training-ready, have incomes at or below 200 percent of the 
 48.22  federal poverty line, and have dependent children, but are not 
 48.23  eligible for training services under the Minnesota family 
 48.24  investment program.  The board may grant funds to eligible 
 48.25  recipients to pay for vouchers for board-certified training.  
 48.26  Training funded with grants provided under this section should 
 48.27  be flexible and responsive in order to maximize the ability of 
 48.28  funded programs to adapt to changes in economic and business 
 48.29  conditions.  Eligible recipients of grants may include: 
 48.30     (1) public, private, or nonprofit entities that provide 
 48.31  employment services to low-income individuals; and 
 48.32     (2) partnerships of two or more eligible recipients under 
 48.33  clause (1), or partnerships of one or more eligible recipients 
 48.34  and the council on Black Minnesotans, the Chicano-Latino affairs 
 48.35  council, the council on Asian-Pacific Minnesotans, the Indian 
 48.36  affairs council, the Minneapolis community development agency, 
 49.1   or the St. Paul port authority. 
 49.2      The job skills partnership board shall report to the 
 49.3   legislature on the performance and progress of the pilot project 
 49.4   on or before September 1, 2003. 
 49.5      Sec. 31.  [WORKFORCE ENHANCEMENT FEE.] 
 49.6      Subdivision 1.  [FEE.] Notwithstanding Minnesota Statutes, 
 49.7   section 268.022, effective January 1, 2002, the special 
 49.8   assessment under that section on taxable wages as defined in 
 49.9   Minnesota Statutes, section 268.035, subdivision 24, is 
 49.10  suspended until December 31, 2005.  Effective January 1, 2002, 
 49.11  there shall be assessed, in addition to unemployment taxes due 
 49.12  under Minnesota Statutes, section 268.051, a workforce 
 49.13  enhancement fee of .09 percent on taxable wages.  This fee shall 
 49.14  be due and be paid on the same schedule and in the same manner 
 49.15  as unemployment taxes under Minnesota Statutes, section 
 49.16  268.051.  Any amount past due under this section shall be 
 49.17  subject to the same interest and collection provisions as 
 49.18  unemployment taxes.  This fee shall expire on December 31, 2005. 
 49.19     Subd. 2.  [USE OF FUNDS COLLECTED.] An amount equal to .07 
 49.20  percent on taxable wages shall be deposited in the workforce 
 49.21  development fund provided for under Minnesota Statutes, section 
 49.22  268.022, subdivision 2.  An amount equal to .02 percent on 
 49.23  taxable wages, less reimbursement for collection costs of the 
 49.24  total amount of the fee, shall be deposited in the unemployment 
 49.25  insurance technology initiative account provided for in section 
 49.26  32. 
 49.27     Sec. 32.  [UNEMPLOYMENT INSURANCE TECHNOLOGY INITIATIVE.] 
 49.28     Subdivision 1.  [PURPOSE; SET-ASIDE.] The unemployment 
 49.29  insurance technology initiative involves a set-aside of a 
 49.30  portion of the money that would otherwise go into the 
 49.31  unemployment insurance trust fund.  This money shall be used on 
 49.32  technology to substantially enhance unemployment insurance 
 49.33  services to both applicants for benefits and employers. 
 49.34     Subd. 2.  [TAX REDUCTION.] Notwithstanding Minnesota 
 49.35  Statutes, section 268.051, subdivision 2, paragraph (b), 
 49.36  effective January 1, 2002, the base unemployment tax on all 
 50.1   taxable wages shall be reduced by .02 percent.  This subdivision 
 50.2   expires December 31, 2005. 
 50.3      Subd. 3.  [ACCOUNT.] (a) Effective January 1, 2002, the 
 50.4   unemployment insurance technology initiative account is created 
 50.5   as a special account in the special revenue fund in the state 
 50.6   treasury.  This account lapses on December 31, 2007, and any 
 50.7   money remaining in the account on that date shall be paid into 
 50.8   the unemployment insurance program trust fund.  This account 
 50.9   consists of all money collected by the workforce enhancement fee 
 50.10  provided by section 31 and designated for deposit in this 
 50.11  account and all interest earned on any money in this account, 
 50.12  less reimbursement of collection costs under paragraph (e). 
 50.13     (b) Money in the unemployment insurance technology 
 50.14  initiative account is appropriated to the commissioner of 
 50.15  economic security and shall be allocated and expended by the 
 50.16  commissioner only for technology initiatives to enhance 
 50.17  unemployment insurance services for both applicants for benefits 
 50.18  and employers. 
 50.19     (c) Any funds not allocated, obligated, or expended in a 
 50.20  fiscal year shall be available for allocation, obligation, and 
 50.21  expenditure in the following fiscal year. 
 50.22     (d) If the total amount collected by the technology 
 50.23  initiative fee, excluding the amount expended for reimbursement 
 50.24  of collection costs plus interest earned upon money in the 
 50.25  unemployment insurance technology initiative account exceeds 
 50.26  $30,000,000, the excess shall be paid into the unemployment 
 50.27  insurance program trust fund. 
 50.28     (e) Because the administrative cost of collection of the 
 50.29  workforce enhancement fee is borne by federal money made 
 50.30  available only to administer the unemployment insurance program, 
 50.31  the commissioner shall negotiate with the United States 
 50.32  Department of Labor the amount of any reimbursement for costs 
 50.33  related to the collection of the fee.  Because the reimbursement 
 50.34  is subsequently made available by the United States Department 
 50.35  of Labor to the commissioner for administration of the 
 50.36  unemployment insurance program, the commissioner shall expend 
 51.1   the reimbursement on personnel costs of operating the 
 51.2   unemployment insurance program's technology services. 
 51.3      Sec. 33.  [SUNSET.] 
 51.4      Section 31 expires on December 31, 2005.  Section 32 
 51.5   expires on December 31, 2007. 
 51.6      Sec. 34.  [IMPORTANCE.] 
 51.7      The Little Elk Heritage Preserve, a 92.25 acre 
 51.8   archaeological park and nature preserve on the Mississippi river 
 51.9   near Little Falls, contains a unique cluster of cultural and 
 51.10  natural resources that together document diverse human 
 51.11  activities and connections to natural environments in central 
 51.12  Minnesota over thousands of years.  The resources at Little Elk 
 51.13  Heritage Preserve include archaeological remains identified with 
 51.14  ancient native America, the colonial fur trade, early Dakota and 
 51.15  Ojibwe life, Black and women's history, Mississippi valley 
 51.16  exploration, a mission farm and school, United States Indian 
 51.17  treaties, territorial period homesteading and townsite 
 51.18  development, the conflict of 1862, hunting, gathering, 
 51.19  portaging, quarrying, logging, farming, dam building, grist 
 51.20  milling, saw milling, and wood products manufacturing.  Ongoing 
 51.21  research programs explore and interpret these important 
 51.22  resources. 
 51.23     Sec. 35.  [HISTORIC SITE DEFINITION; LITTLE ELK HERITAGE 
 51.24  PRESERVE.] 
 51.25     The state register of historic places listing for the 
 51.26  Little Elk Heritage Preserve includes those portions of the 
 51.27  preserve that contain significant archaeological or historic 
 51.28  resources. 
 51.29     Sec. 36.  [TRANSFER TO COUNTY HISTORICAL SOCIETY.] 
 51.30     Notwithstanding Minnesota Statutes 2000, chapter 134 and 
 51.31  section 138.053, the city of Anoka may transfer before January 
 51.32  1, 2002, the balance in the city of Anoka library fund to the 
 51.33  Anoka county historical society for the society's use for any 
 51.34  Anoka county historical society purpose. 
 51.35     Sec. 37.  [BOARD OF ACCOUNTANCY FEE.] 
 51.36     The legislature approves the board of accountancy's 
 52.1   proposed fee increase included in the governor's 2002-2003 
 52.2   biennial budget.  This approval applies only to the 2002-2003 
 52.3   biennium. 
 52.4      Sec. 38.  [ELECTRONIC REPORTING; FORMAT.] 
 52.5      In developing electronic reporting systems for use in the 
 52.6   administration of the workers' compensation system, the 
 52.7   department of labor and industry must consult with the 
 52.8   International Association of Industrial Accident Boards and 
 52.9   Commissions (IAIABC) so that the department's format of data 
 52.10  elements and their definitions conform as closely as possible to 
 52.11  the data dictionary used by the IAIABC. 
 52.12     Sec. 39.  [MUNICIPAL UTILITY AND COOPERATIVE ELECTRIC 
 52.13  ASSOCIATIONS; CONSERVATION INVESTMENTS.] 
 52.14     Notwithstanding Laws 2001, chapter 212, article 8, section 
 52.15  6, the conservation investment obligation of a municipal utility 
 52.16  shall, until June 1, 2003, exclude revenues attributable to 
 52.17  electricity purchased from a public utility governed by 
 52.18  Minnesota Statutes, section 216B.241, subdivision 1a, or a 
 52.19  cooperative electric association governed by Minnesota Statutes, 
 52.20  section 216B.241, subdivision 1b.  This section expires June 1, 
 52.21  2003. 
 52.22     Sec. 40.  [RETROACTIVITY.] 
 52.23     A contract encumbered or a grant awarded by a state agency 
 52.24  before September 1, 2001, may be made retroactive to July 1, 
 52.25  2001. 
 52.26     Sec. 41.  [REPEALER.] 
 52.27     (a) Minnesota Statutes 2000, sections 268.975; 268.976; 
 52.28  268.9771; 268.978; 268.9781; 268.9782; 268.9783; 268.979; and 
 52.29  268.98, are repealed. 
 52.30     (b) Minnesota Statutes 2000, sections 184.22, subdivisions 
 52.31  2, 3, 4, and 5; and 184.37, subdivision 2, are repealed 
 52.32  effective July 1, 2003. 
 52.33                             ARTICLE 3 
 52.34                   REORGANIZATION OF DEPARTMENTS 
 52.35     Section 1.  [DEPARTMENT OF ECONOMIC SECURITY ABOLISHED.] 
 52.36     The department of economic security is abolished. 
 53.1      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 53.2      Sec. 2.  [TRANSFER OF RESPONSIBILITIES OF DEPARTMENT OF 
 53.3   ECONOMIC SECURITY.] 
 53.4      Subdivision 1.  [TO DEPARTMENT OF TRADE AND ECONOMIC 
 53.5   DEVELOPMENT.] The responsibilities of the department of economic 
 53.6   security performed by its workforce services unit for employment 
 53.7   transition services, youth services, welfare-to-work services, 
 53.8   and workforce exchange services are transferred to the 
 53.9   department of trade and economic development. 
 53.10     <b>[EFFECTIVE DATE.]</b> This subdivision is effective July 1, 
 53.11  2002. 
 53.12     Subd. 2.  [TO DEPARTMENT OF COMMERCE.] The responsibility 
 53.13  for energy programs of the department of economic security is 
 53.14  transferred to the department of commerce. 
 53.15     <b>[EFFECTIVE DATE.]</b> This subdivision is effective October 1, 
 53.16  2001. 
 53.17     Subd. 3.  [OTHER RESPONSIBILITIES.] The transition team 
 53.18  established under section 4 shall make recommendations regarding 
 53.19  the appropriate transfer of the responsibilities of the 
 53.20  department of economic security not otherwise transferred in 
 53.21  this section. 
 53.22     Sec. 3.  [ORGANIZATION OF DEPARTMENT OF TRADE AND ECONOMIC 
 53.23  DEVELOPMENT.] 
 53.24     The department of trade and economic development shall have 
 53.25  a division of economic development consisting of business and 
 53.26  community development, the Minnesota trade office, tourism 
 53.27  division, information and analysis division, and administrative 
 53.28  support.  The job skills partnership program shall be housed in 
 53.29  the department and shall have a policy, research, and evaluation 
 53.30  unit.  The job skills partnership board shall provide 
 53.31  targeted-worker services to include the dislocated worker 
 53.32  program and welfare-to-work services formerly located in the 
 53.33  department of economic security.  The board shall have a unit 
 53.34  providing special programs under a workforce transition services 
 53.35  unit. 
 53.36     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 54.1      Sec. 4.  [TRANSITION TEAM CREATION; COMPOSITION.] 
 54.2      Subdivision 1.  [CREATION.] A workforce development program 
 54.3   reorganization transition advisory team is created.  The 
 54.4   transition team shall make recommendations to the governor and 
 54.5   the legislature by December 1, 2001, concerning the state 
 54.6   government structure and department organization for delivering 
 54.7   workforce development programs and other issues described in 
 54.8   section 5.  The object of the reorganization is to consolidate 
 54.9   and streamline the state's workforce development system and 
 54.10  programs so as to provide the most efficient and effective 
 54.11  workforce development programs. 
 54.12     Subd. 2.  [TRANSITION TEAM COMPOSITION.] The transition 
 54.13  team shall consist of 12 members appointed as follows: 
 54.14     (1) six members appointed by the governor of which one 
 54.15  shall represent business, one shall represent labor, one shall 
 54.16  represent job training providers, and one shall be designated by 
 54.17  the governor as head of the transition team; 
 54.18     (2) three members of the house of representatives appointed 
 54.19  by the speaker of the house of representatives, one of whom must 
 54.20  be a member of the minority party; and 
 54.21     (3) three members of the senate appointed by the 
 54.22  subcommittee on committees of the committee on rules and 
 54.23  administration of the senate, one of whom must be a member of 
 54.24  the minority party. 
 54.25     The transition team must solicit input from all interested 
 54.26  groups on how to best implement the reorganization of state 
 54.27  departments contained in sections 1 to 7 and develop the 
 54.28  recommendations required in subdivision 1. 
 54.29     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 54.30  following final enactment. 
 54.31     Sec. 5.  [TRANSITION TEAM DUTIES.] 
 54.32     Subdivision 1.  [WORKFORCE DEVELOPMENT PROGRAMS.] The 
 54.33  transition team shall: 
 54.34     (1) consider alternative configurations of workforce 
 54.35  development programs within state agencies, including 
 54.36  legislative proposals submitted during the 2001 legislative 
 55.1   session and models from other states; 
 55.2      (2) recommend governance structures for workforce 
 55.3   development; 
 55.4      (3) develop recommendations for creating improved 
 55.5   communications between the higher education system and the 
 55.6   workforce development system; 
 55.7      (4) recommend statutory amendments necessary to implement 
 55.8   sections 1 to 7; 
 55.9      (5) recommend statutory and administrative changes 
 55.10  necessary to strengthen the oversight and management 
 55.11  responsibilities of local workforce boards and local elected 
 55.12  officials to ensure the efficient operation of the workforce 
 55.13  center system and to ensure better coordination of service 
 55.14  delivery at the community level; 
 55.15     (6) recommend the transfer of workforce development related 
 55.16  programs from other state agencies; 
 55.17     (7) recommend program modifications necessary to ensure 
 55.18  coordination between the workforce development system and the 
 55.19  employment and training programs administered by the department 
 55.20  of human services; 
 55.21     (8) recommend procedures for promoting greater coordination 
 55.22  and cooperation among local workforce development agencies, 
 55.23  local economic development agencies, and higher education 
 55.24  institutions; 
 55.25     (9) recommend methods for decreasing administrative costs 
 55.26  at the state agency level for the purpose of redirecting funding 
 55.27  to support the delivery of services at the community level; 
 55.28     (10) recommend where to house the unemployment insurance 
 55.29  program, taking into consideration the possibilities of 
 55.30  transferring the program to the department of labor and industry 
 55.31  or the department of trade and economic development; 
 55.32     (11) study the feasibility of transferring all or part of 
 55.33  the responsibility for collecting unemployment insurance taxes 
 55.34  and other assessments collected with those taxes to the 
 55.35  department of revenue; 
 55.36     (12) consider whether the Minnesota career information 
 56.1   system operated by the department of children, families, and 
 56.2   learning and the ISEEK system operated by the Minnesota state 
 56.3   colleges and universities are duplicative, and if so, the 
 56.4   potential for a consolidated system and recommendations on where 
 56.5   such a system might be housed; and 
 56.6      (13) make other recommendations to complete the 
 56.7   reorganization of state departments contained in sections 1 to 7.
 56.8      Subd 2.  [TRANSFER OF WORKFORCE INVESTMENT ACT 
 56.9   PROGRAMS.] The transition team may recommend, where appropriate, 
 56.10  the transfer of a program, including those programs under the 
 56.11  Workforce Investment Act of 1998, United States Code, title 29, 
 56.12  title I and title III, to local workforce boards. 
 56.13     Subd. 3.  [REVISION OF STATE WORKFORCE INVESTMENT ACT 
 56.14  PLAN.] The transition team shall propose revisions to the state 
 56.15  unified plan submitted to the United States Department of Labor 
 56.16  under the Workforce Investment Act of 1998. 
 56.17     Subd. 4.  [CONSULTATION WITH INTERESTED PARTIES.] The 
 56.18  transition team shall consult with: 
 56.19     (1) all appropriate state authorized councils, including, 
 56.20  but not limited to, the state rehabilitation advisory council, 
 56.21  the statewide independent living council, the rehabilitation 
 56.22  advisory council for the blind, and the Minnesota state council 
 56.23  on disability prior to making recommendations to the legislature 
 56.24  on the appropriate transfer of responsibilities for 
 56.25  administration of those programs for which the councils are 
 56.26  authorized; 
 56.27     (2) the SAFE coordinating council, prior to making any 
 56.28  recommendation to the legislature, on the appropriate state 
 56.29  agency in which to house the juvenile justice program, the 
 56.30  Minnesota city grants program, and the youth intervention 
 56.31  program in the department of economic security; 
 56.32     (3) the representatives of the collective bargaining units 
 56.33  for state employees affected by the transfers of 
 56.34  responsibilities under sections 1 to 7, including the 
 56.35  representatives of the two affected AFL-CIO affiliates and the 
 56.36  representative of another affected major statewide labor 
 57.1   organization; 
 57.2      (4) the commissioners of economic security, trade and 
 57.3   economic development, and labor and industry, prior to making 
 57.4   any recommendations to the legislature; 
 57.5      (5) local workforce councils and local elected officials; 
 57.6      (6) at least one consumer who receives services through the 
 57.7   Minnesota family investment program, or an advocate for such 
 57.8   consumers; 
 57.9      (7) nonprofit job training providers; and 
 57.10     (8) in determining the placement in state government of 
 57.11  state services for the blind, representatives from each of the 
 57.12  following groups: 
 57.13     (i) the Rehabilitation Council for the Blind; 
 57.14     (ii) the National Federation of the Blind; 
 57.15     (iii) the American Council of the Blind; and 
 57.16     (iv) the United Blind of Minnesota. 
 57.17     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 57.18  following final enactment. 
 57.19     Sec. 6.  [STAFF SUPPORT AND OPERATIONS OF THE TRANSITION 
 57.20  TEAM.] 
 57.21     (a) The head of the transition team shall be in the 
 57.22  unclassified service of the state, and may hire staff in the 
 57.23  classified or unclassified service, may contract for staff 
 57.24  assistance, or may have the assistance of existing state 
 57.25  employees. 
 57.26     (b) The commissioners of trade and economic development, 
 57.27  labor and industry, and economic security must cooperate with 
 57.28  and provide staff support to the transition team.  The support 
 57.29  includes, but is not limited to, professional, technical, and 
 57.30  clerical staff necessary to fully assess the programs under 
 57.31  section 5. 
 57.32     (c) The transition team shall have access to private or 
 57.33  nonpublic data within the department of economic security, 
 57.34  department of labor and industry, and the department of trade 
 57.35  and economic development necessary to carry out the objectives 
 57.36  of section 5. 
 58.1      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 58.2   following final enactment. 
 58.3      Sec. 7.  [WORKER PROTECTION.] 
 58.4      In addition to any other protection, no employee in the 
 58.5   classified service shall suffer job loss, have a salary reduced, 
 58.6   or have employment benefits reduced as a result of a 
 58.7   reorganization mandated or recommended under authority of 
 58.8   sections 1 to 7.  No action taken after July 1, 2005, shall be 
 58.9   considered a result of reorganization for the purposes of this 
 58.10  section. 
 58.11     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 58.12  following final enactment. 
 58.13     Sec. 8.  [EXPIRATION.] 
 58.14     Sections 4, 5, and 6 expire June 30, 2002. 
 58.15                             ARTICLE 4 
 58.16               HOUSING PROGRAM AND TECHNICAL CHANGES 
 58.17     Section 1.  Minnesota Statutes 2000, section 462A.01, is 
 58.18  amended to read: 
 58.19     462A.01 [CITATION.] 
 58.20     Sections 462A.01 to 462A.24 462A.34 shall be known as and 
 58.21  may be cited as the "Minnesota Housing Finance Agency Law of 
 58.22  1971."  
 58.23     Sec. 2.  Minnesota Statutes 2000, section 462A.03, 
 58.24  subdivision 1, is amended to read: 
 58.25     Subdivision 1.  [APPLICATION.] For the purpose of sections 
 58.26  462A.01 to 462A.24 this chapter, the terms defined in this 
 58.27  section have the meanings ascribed to them. 
 58.28     Sec. 3.  Minnesota Statutes 2000, section 462A.03, 
 58.29  subdivision 6, is amended to read: 
 58.30     Subd. 6.  [AGENCY.] "Agency" means the Minnesota housing 
 58.31  finance agency created by sections 462A.01 to 462A.24 this 
 58.32  chapter. 
 58.33     Sec. 4.  Minnesota Statutes 2000, section 462A.03, 
 58.34  subdivision 10, is amended to read: 
 58.35     Subd. 10.  [PERSONS AND FAMILIES OF LOW AND MODERATE 
 58.36  INCOME.] "Persons and families of low and moderate income" means 
 59.1   persons and families, irrespective of race, creed, national 
 59.2   origin, sex, or status with respect to guardianship or 
 59.3   conservatorship, determined by the agency to require such 
 59.4   assistance as is made available by sections 462A.01 to 462A.24 
 59.5   this chapter on account of personal or family income not 
 59.6   sufficient to afford adequate housing.  In making such 
 59.7   determination the agency shall take into account the following:  
 59.8   (a) The amount of the total income of such persons and families 
 59.9   available for housing needs, (b) the size of the family, (c) the 
 59.10  cost and condition of housing facilities available, (d) the 
 59.11  eligibility of such persons and families to compete successfully 
 59.12  in the normal housing market and to pay the amounts at which 
 59.13  private enterprise is providing sanitary, decent and safe 
 59.14  housing.  In the case of federally subsidized mortgages with 
 59.15  respect to which income limits have been established by any 
 59.16  agency of the federal government having jurisdiction thereover 
 59.17  for the purpose of defining eligibility of low and moderate 
 59.18  income families, the limits so established shall govern under 
 59.19  the provision provisions of sections 462A.01 to 462A.24 this 
 59.20  chapter.  In all other cases income limits for the purpose of 
 59.21  defining low or moderate income persons shall be established by 
 59.22  the agency by rules. 
 59.23     Sec. 5.  Minnesota Statutes 2000, section 462A.03, is 
 59.24  amended by adding a subdivision to read: 
 59.25     Subd. 23.  [METROPOLITAN AREA.] "Metropolitan area" has the 
 59.26  meaning given in section 473.121, subdivision 2. 
 59.27     Sec. 6.  Minnesota Statutes 2000, section 462A.04, 
 59.28  subdivision 6, is amended to read: 
 59.29     Subd. 6.  [MANAGEMENT, CONTROL.] The management and control 
 59.30  of the agency shall be vested solely in the members in 
 59.31  accordance with the provisions of sections 462A.01 to 462A.24 
 59.32  this chapter. 
 59.33     Sec. 7.  Minnesota Statutes 2000, section 462A.05, 
 59.34  subdivision 14, is amended to read: 
 59.35     Subd. 14.  [REHABILITATION LOANS.] It may agree to 
 59.36  purchase, make, or otherwise participate in the making, and may 
 60.1   enter into commitments for the purchase, making, or 
 60.2   participation in the making, of eligible loans for 
 60.3   rehabilitation to persons and families of low and moderate 
 60.4   income, and to owners of existing residential housing for 
 60.5   occupancy by such persons and families, for the rehabilitation 
 60.6   of existing residential housing owned by them.  The loans may be 
 60.7   insured or uninsured and may be made with security, or may be 
 60.8   unsecured, as the agency deems advisable.  The loans may be in 
 60.9   addition to or in combination with long-term eligible mortgage 
 60.10  loans under subdivision 3.  They may be made in amounts 
 60.11  sufficient to refinance existing indebtedness secured by the 
 60.12  property, if refinancing is determined by the agency to be 
 60.13  necessary to permit the owner to meet the owner's housing cost 
 60.14  without expending an unreasonable portion of the owner's income 
 60.15  thereon.  No loan for rehabilitation shall be made unless the 
 60.16  agency determines that the loan will be used primarily to make 
 60.17  the housing more desirable to live in, to increase the market 
 60.18  value of the housing, for compliance with state, county or 
 60.19  municipal building, housing maintenance, fire, health or similar 
 60.20  codes and standards applicable to housing, or to accomplish 
 60.21  energy conservation related improvements.  In unincorporated 
 60.22  areas and municipalities not having codes and standards, the 
 60.23  agency may, solely for the purpose of administering the 
 60.24  provisions of this chapter, establish codes and standards.  
 60.25  Except for accessibility improvements under this subdivision and 
 60.26  subdivisions 14a and 24, clause (1), no secured loan for 
 60.27  rehabilitation of any property shall be made in an amount which, 
 60.28  with all other existing indebtedness secured by the property, 
 60.29  would exceed 110 percent of its market value, as determined by 
 60.30  the agency.  No loan under this subdivision shall be denied 
 60.31  solely because the loan will not be used for placing the 
 60.32  residential housing in full compliance with all state, county, 
 60.33  or municipal building, housing maintenance, fire, health, or 
 60.34  similar codes and standards applicable to housing.  
 60.35  Rehabilitation loans shall be made only when the agency 
 60.36  determines that financing is not otherwise available, in whole 
 61.1   or in part, from private lenders upon equivalent terms and 
 61.2   conditions.  Accessibility rehabilitation loans authorized under 
 61.3   this subdivision may be made to eligible persons and families 
 61.4   without limitations relating to the maximum incomes of the 
 61.5   borrowers if: 
 61.6      (1) the borrower or a member of the borrower's family 
 61.7   requires a level of care provided in a hospital, skilled nursing 
 61.8   facility, or intermediate care facility for persons with mental 
 61.9   retardation or related conditions; 
 61.10     (2) home care is appropriate; and 
 61.11     (3) the improvement will enable the borrower or a member of 
 61.12  the borrower's family to reside in the housing. 
 61.13  The agency may waive any requirement that the housing units in a 
 61.14  residential housing development be rented to persons of low and 
 61.15  moderate income if the development consists of four or less 
 61.16  dwelling units, one of which is occupied by the owner. 
 61.17     Sec. 8.  Minnesota Statutes 2000, section 462A.05, 
 61.18  subdivision 14a, is amended to read: 
 61.19     Subd. 14a.  [REHABILITATION LOANS; EXISTING OWNER OCCUPIED 
 61.20  RESIDENTIAL HOUSING.] It may make loans to persons and families 
 61.21  of low and moderate income to rehabilitate or to assist in 
 61.22  rehabilitating existing residential housing owned and occupied 
 61.23  by those persons or families.  No loan shall be made unless the 
 61.24  agency determines that the loan will be used primarily for 
 61.25  rehabilitation work necessary for health or safety, essential 
 61.26  accessibility improvements, or to improve the energy efficiency 
 61.27  of the dwelling.  No loan for rehabilitation of owner occupied 
 61.28  residential housing shall be denied solely because the loan will 
 61.29  not be used for placing the residential housing in full 
 61.30  compliance with all state, county or municipal building, housing 
 61.31  maintenance, fire, health or similar codes and standards 
 61.32  applicable to housing.  The amount of any loan shall not exceed 
 61.33  the lesser of (a) a maximum loan amount determined under rules 
 61.34  adopted by the agency not to exceed $20,000, or (b) the actual 
 61.35  cost of the work performed, or (c) that portion of the cost of 
 61.36  rehabilitation which the agency determines cannot otherwise be 
 62.1   paid by the person or family without the expenditure of an 
 62.2   unreasonable portion of the income of the person or family.  
 62.3   Loans made in whole or in part with federal funds may exceed the 
 62.4   maximum loan amount to the extent necessary to comply with 
 62.5   federal lead abatement requirements prescribed by the funding 
 62.6   source.  In making loans, the agency shall determine the 
 62.7   circumstances under which and the terms and conditions under 
 62.8   which all or any portion of the loan will be repaid and shall 
 62.9   determine the appropriate security for the repayment of the 
 62.10  loan.  Loans pursuant to this subdivision may be made with or 
 62.11  without interest or periodic payments.  Loans made without 
 62.12  interest or periodic payments need not be repaid by the borrower 
 62.13  if the property for which the loan is made has not been sold, 
 62.14  transferred, or otherwise conveyed nor has it ceased to be the 
 62.15  principal place of residence of the borrower, within ten years 
 62.16  after the date of the loan.  
 62.17     Sec. 9.  Minnesota Statutes 2000, section 462A.05, 
 62.18  subdivision 16, is amended to read: 
 62.19     Subd. 16.  [PAYMENTS FOR STRUCTURAL DEFECTS.] (a) It may 
 62.20  make payments or expenditures from the housing development fund 
 62.21  to persons of low or moderate income, who are recipients of an 
 62.22  eligible loan as defined in section 462A.03, subdivision 11, or 
 62.23  who have purchased residential housing from a recipient of such 
 62.24  eligible loan, and who are owners and occupants of residential 
 62.25  housing constructed or rehabilitated under sections 462A.01 to 
 62.26  462A.24 this chapter, when, in the agency's determination, such 
 62.27  residential housing contains defects or omissions which affect 
 62.28  the structural soundness, or the use and the livability of such 
 62.29  housing, including but not limited to defects or omissions in 
 62.30  materials, hardware, fixtures, design, workmanship and 
 62.31  landscaping of whatever kind and nature incorporated in said 
 62.32  housing and which are covered by an agency approved warranty, 
 62.33  for the purposes of (i) correcting such defects, or (ii) paying 
 62.34  the claims of the owner arising from such defects, provided, 
 62.35  that this authority shall exist only if the owner has requested 
 62.36  assistance from the agency not later than four years after the 
 63.1   issuance of the eligible loan, or where such residential housing 
 63.2   was rehabilitated under sections 462A.01 to 462A.24 this chapter 
 63.3   only if the owner has requested assistance from the agency not 
 63.4   later than two years after the issuance of the eligible loan. 
 63.5      (b) If such owner elects to receive payments or 
 63.6   expenditures pursuant to this section, the agency is subrogated 
 63.7   to the right of such owner to recover damages against any party 
 63.8   or persons reasonably calculated to be responsible for such 
 63.9   damages. 
 63.10     (c) The agency may require from the seller of such 
 63.11  residential housing, or the contractor responsible for the 
 63.12  construction or rehabilitation of such housing, an agreement to 
 63.13  reimburse the agency for any payments and expenditures made 
 63.14  pursuant to this subdivision with respect to such residential 
 63.15  housing. 
 63.16     Sec. 10.  Minnesota Statutes 2000, section 462A.05, 
 63.17  subdivision 22, is amended to read: 
 63.18     Subd. 22.  [LOANS TO FINANCIAL INSTITUTIONS.] It may make 
 63.19  or participate in the making and enter into commitments for the 
 63.20  making of loans to any banking institution, savings association, 
 63.21  or other lender approved by the members, organized under the 
 63.22  laws of this or any other state or of the United States having 
 63.23  an office in this state, notwithstanding the provisions of 
 63.24  section 462A.03, subdivision 13, if it first determines that the 
 63.25  proceeds of such loans will be utilized for the purpose of 
 63.26  making loans to or for the benefit of eligible persons and 
 63.27  families as provided and in accordance with sections 462A.01 to 
 63.28  462A.24 this chapter.  Loans pursuant to this subdivision shall 
 63.29  be secured, repaid and bear interest at the rate as determined 
 63.30  by the members.  
 63.31     Sec. 11.  Minnesota Statutes 2000, section 462A.05, 
 63.32  subdivision 26, is amended to read: 
 63.33     Subd. 26.  [FORMATION OF NONPROFIT CORPORATIONS.] It may, 
 63.34  when the agency determines it is necessary or desirable to carry 
 63.35  out its purposes and to exercise any or all of the powers 
 63.36  conferred upon it under sections 462A.01 to 462A.24 by this 
 64.1   chapter, and subject to the provisions of subdivision 27, form 
 64.2   or consent to the formation of one or more corporations under 
 64.3   the Minnesota Nonprofit Corporation Act, as amended, or under 
 64.4   other laws of this state.  The agency may be a member of the 
 64.5   corporations, and the members and employees of the agency from 
 64.6   time to time may be members of the board of directors or 
 64.7   officers of the corporations.  The agency may enter into 
 64.8   agreements with them providing for the agency to approve various 
 64.9   aspects of their operations.  The agency may capitalize the 
 64.10  corporations and may acquire all or a part of the corporations' 
 64.11  share or member certificates.  The agency may require that it 
 64.12  approve aspects of the operation of the corporations including 
 64.13  the corporations' articles of incorporation or bylaws, 
 64.14  directors, projects and expenditures, and the sale or conveyance 
 64.15  of projects, and the issuance of obligations.  The agency may 
 64.16  agree to and may take title to property of the corporations upon 
 64.17  their dissolution. 
 64.18     Sec. 12.  Minnesota Statutes 2000, section 462A.06, 
 64.19  subdivision 1, is amended to read: 
 64.20     Subdivision 1.  [LISTED HERE.] For the purpose of 
 64.21  exercising the specific powers granted in section 462A.05 and 
 64.22  effectuating the other purposes of sections 462A.01 to 462A.24 
 64.23  this chapter, the agency shall have the general powers granted 
 64.24  in this section. 
 64.25     Sec. 13.  Minnesota Statutes 2000, section 462A.06, 
 64.26  subdivision 4, is amended to read: 
 64.27     Subd. 4.  [RULES.] It may make, and from time to time, 
 64.28  amend and repeal rules not inconsistent with the provisions of 
 64.29  sections 462A.01 to 462A.24 this chapter.  
 64.30     Sec. 14.  Minnesota Statutes 2000, section 462A.07, 
 64.31  subdivision 10, is amended to read: 
 64.32     Subd. 10.  [HUMAN RIGHTS.] It may establish and enforce 
 64.33  such rules as may be necessary to insure compliance with chapter 
 64.34  363, and to insure that occupancy of housing assisted under 
 64.35  sections 462A.01 to 462A.24 this chapter shall be open to all 
 64.36  persons, and that contractors and subcontractors engaged in the 
 65.1   construction of such housing shall provide an equal opportunity 
 65.2   for employment to all persons, without discrimination as to 
 65.3   race, color, creed, religion, national origin, sex, marital 
 65.4   status, age, and status with regard to public assistance or 
 65.5   disability. 
 65.6      Sec. 15.  Minnesota Statutes 2000, section 462A.07, 
 65.7   subdivision 12, is amended to read: 
 65.8      Subd. 12.  [USE OF OTHER AGENCIES.] It may delegate, use or 
 65.9   employ any federal, state, regional or local public or private 
 65.10  agency or organization, including organizations of physically 
 65.11  handicapped persons, upon terms it deems necessary or desirable, 
 65.12  to assist in the exercise of any of the powers granted in 
 65.13  sections 462A.01 to 462A.24 by this chapter and to carry out the 
 65.14  objectives of sections 462A.01 to 462A.24 this chapter and may 
 65.15  pay for the services from the housing development fund. 
 65.16     Sec. 16.  Minnesota Statutes 2000, section 462A.073, 
 65.17  subdivision 1, is amended to read: 
 65.18     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
 65.19  section, the following terms have the meanings given them. 
 65.20     (b) "Existing housing" means single-family housing that (i) 
 65.21  has been previously occupied prior to the first day of the 
 65.22  origination period; or (ii) has been available for occupancy for 
 65.23  at least 12 months but has not been previously occupied.  
 65.24     (c) "Metropolitan area" means the metropolitan area as 
 65.25  defined in section 473.121, subdivision 2. 
 65.26     (d) "New housing" means single-family housing that has not 
 65.27  been previously occupied.  
 65.28     (e) (d) "Origination period" means the period that loans 
 65.29  financed with the proceeds of qualified mortgage revenue bonds 
 65.30  are available for the purchase of single-family housing.  The 
 65.31  origination period begins when financing actually becomes 
 65.32  available to the borrowers for loans.  
 65.33     (f) (e) "Redevelopment area" means a compact and contiguous 
 65.34  area within which the city finds by resolution that 70 percent 
 65.35  of the parcels are occupied by buildings, streets, utilities, or 
 65.36  other improvements and more than 25 percent of the buildings, 
 66.1   not including outbuildings, are structurally substandard to a 
 66.2   degree requiring substantial renovation or clearance. 
 66.3      (g) (f) "Single-family housing" means dwelling units 
 66.4   eligible to be financed from the proceeds of qualified mortgage 
 66.5   revenue bonds under federal law. 
 66.6      (h) (g) "Structurally substandard" means containing defects 
 66.7   in structural elements or a combination of deficiencies in 
 66.8   essential utilities and facilities, light, ventilation, fire 
 66.9   protection including adequate egress, layout and condition of 
 66.10  interior partitions, or similar factors, which defects or 
 66.11  deficiencies are of sufficient total significance to justify 
 66.12  substantial renovation or clearance. 
 66.13     Sec. 17.  Minnesota Statutes 2000, section 462A.15, is 
 66.14  amended to read: 
 66.15     462A.15 [STATE PLEDGE AGAINST IMPAIRMENT OF CONTRACTS.] 
 66.16     The state pledges and agrees with the holders of any notes 
 66.17  or bonds issued under sections 462A.01 to 462A.24 this chapter, 
 66.18  that the state will not limit or alter the rights vested in the 
 66.19  agency to fulfill the terms of any agreements made with the 
 66.20  holders thereof, or in any way impair the rights and remedies of 
 66.21  the holders until the notes or bonds, together with the interest 
 66.22  thereon, with interest on any unpaid installments of interest, 
 66.23  and all costs and expenses in connection with any action or 
 66.24  proceeding by or on behalf of such holders, are fully met and 
 66.25  discharged.  The agency is authorized to include this pledge and 
 66.26  agreement of the state in any agreement with the holders of such 
 66.27  notes or bonds.  
 66.28     Sec. 18.  Minnesota Statutes 2000, section 462A.17, 
 66.29  subdivision 3, is amended to read: 
 66.30     Subd. 3.  [RAMSEY COUNTY VENUE; NOTICE OF PRINCIPAL DUE.] 
 66.31  The venue of any action or proceedings brought by the trustees 
 66.32  under sections 462A.01 to 462A.24 this chapter, shall be in 
 66.33  Ramsey county.  Before declaring the principal of notes or bonds 
 66.34  due and payable, the trustee shall first give 30 days' notice in 
 66.35  writing to the governor, to the agency and to the state 
 66.36  treasurer.  
 67.1      Sec. 19.  Minnesota Statutes 2000, section 462A.20, 
 67.2   subdivision 3, is amended to read: 
 67.3      Subd. 3.  [SEPARATE ACCOUNTS; TRANSFERS; LIMITS.] Whenever 
 67.4   any money is appropriated by the state to the agency solely for 
 67.5   a specified purpose or purposes, the agency shall establish a 
 67.6   separate bookkeeping account or accounts in the housing 
 67.7   development fund to record the receipt and disbursement of such 
 67.8   money and of the income, gain, and loss from the investment and 
 67.9   reinvestment thereof.  Earnings from investment of any amounts 
 67.10  appropriated by the state to the agency for a specified purpose 
 67.11  or purposes may be aggregated.  The costs and expenses necessary 
 67.12  and incidental to the development and operation of all programs 
 67.13  funded by state appropriations may be paid from the aggregated 
 67.14  earnings from investments prior to periodic distributions of 
 67.15  earnings to separate accounts to be used for the same purpose as 
 67.16  the respective original appropriation.  The agency may transfer 
 67.17  unencumbered balances from one appropriated account to another, 
 67.18  provided that no money appropriated for the purpose of agency 
 67.19  loan programs may be transferred to an account to be used for 
 67.20  making grants, except that money appropriated for the purpose of 
 67.21  section 462A.05, subdivision 14a, may be transferred for the 
 67.22  purpose of section 462A.05, subdivision 15a.  
 67.23     Sec. 20.  [462A.2035] [MANUFACTURED HOME PARK REDEVELOPMENT 
 67.24  PROGRAM.] 
 67.25     Subdivision 1.  [ESTABLISHMENT.] The agency shall establish 
 67.26  a manufactured home park redevelopment program for the purpose 
 67.27  of making manufactured home park redevelopment grants or loans 
 67.28  to cities, counties, or community action programs.  Cities, 
 67.29  counties, and community action programs may use grants and loans 
 67.30  under this program to: 
 67.31     (1) provide current residents of manufactured home parks 
 67.32  with buy-out assistance not to exceed $4,000 per home with 
 67.33  preference given to older manufactured homes; 
 67.34     (2) provide down payment assistance for the purchase of new 
 67.35  and preowned manufactured homes that comply with the current 
 67.36  version of the State Building Code in effect at the time of the 
 68.1   sale, not to exceed $10,000 per home; and 
 68.2      (3) make improvements in manufactured home parks as 
 68.3   requested by the grant recipient. 
 68.4      Subd. 2.  [ELIGIBILITY REQUIREMENTS.] Households assisted 
 68.5   under this section must have an annual household income at or 
 68.6   below 80 percent of the area median household income.  Cities, 
 68.7   counties, or community action programs receiving funds under the 
 68.8   program must give preference to households at or below 50 
 68.9   percent of the area median household income.  Participation in 
 68.10  the program is voluntary and no park resident shall be required 
 68.11  to participate.  The agency shall attempt to make grants and 
 68.12  loans in approximately equal amounts to applicants outside and 
 68.13  within the metropolitan area. 
 68.14     Sec. 21.  Minnesota Statutes 2000, section 462A.204, 
 68.15  subdivision 3, is amended to read: 
 68.16     Subd. 3.  [SET ASIDE.] At least one grant must be awarded 
 68.17  in an area located outside of the metropolitan area as defined 
 68.18  in section 473.121, subdivision 2.  A county, a group of 
 68.19  contiguous counties jointly acting together, or a 
 68.20  community-based nonprofit organization with a sponsoring 
 68.21  resolution from each of the county boards of the counties 
 68.22  located within its operating jurisdiction may apply for and 
 68.23  receive grants for areas located outside the metropolitan area.  
 68.24     Sec. 22.  Minnesota Statutes 2000, section 462A.205, 
 68.25  subdivision 4, is amended to read: 
 68.26     Subd. 4.  [AMOUNT AND PAYMENT OF RENT ASSISTANCE.] (a) This 
 68.27  subdivision applies to both the voucher option and the 
 68.28  project-based voucher option.  
 68.29     (b) Within the limits of available appropriations, eligible 
 68.30  families may receive monthly rent assistance for a 60-month 
 68.31  period starting with the month the family first receives rent 
 68.32  assistance under this section.  The amount of the family's 
 68.33  portion of the rental payment is equal to at least 30 percent of 
 68.34  gross income. 
 68.35     (c) The rent assistance must be paid by the local housing 
 68.36  organization to the property owner. 
 69.1      (d) Subject to the limitations in paragraph (e), the amount 
 69.2   of rent assistance is the difference between the rent and the 
 69.3   family's portion of the rental payment. 
 69.4      (e) In no case: 
 69.5      (1) may the amount of monthly rent assistance be more than 
 69.6   $250 for housing located within the metropolitan area, as 
 69.7   defined in section 473.121, subdivision 2, or more than $200 for 
 69.8   housing located outside of the metropolitan area; 
 69.9      (2) may the owner receive more rent for assisted units than 
 69.10  for comparable unassisted units; nor 
 69.11     (3) may the amount of monthly rent assistance be more than 
 69.12  the difference between the family's portion of the rental 
 69.13  payment and the fair market rent for the unit as determined by 
 69.14  the Department of Housing and Urban Development. 
 69.15     Sec. 23.  Minnesota Statutes 2000, section 462A.205, 
 69.16  subdivision 4a, is amended to read: 
 69.17     Subd. 4a.  [ADDITIONAL AUTHORIZED EXPENSES.] In addition to 
 69.18  the monthly rent assistance authorized under subdivision 4, rent 
 69.19  assistance may include up to $200 for a security deposit for 
 69.20  housing located outside the metropolitan area, as defined in 
 69.21  section 473.121, subdivision 2, and up to $250 for a security 
 69.22  deposit for housing located within the metropolitan area. 
 69.23     Sec. 24.  Minnesota Statutes 2000, section 462A.2091, 
 69.24  subdivision 3, is amended to read: 
 69.25     Subd. 3.  [ELIGIBLE PROPERTY.] Contracts for deed eligible 
 69.26  for refinancing with guarantee fund assistance must be for the 
 69.27  purchase of an owner-occupied single-family or duplex 
 69.28  structure.  In a city of the first class in the metropolitan 
 69.29  area, as defined in section 473.121, subdivision 2, eligible 
 69.30  properties must be located in an area in which at least one 
 69.31  census tract meets at least three of the following four criteria:
 69.32     (1) at least 70 percent of the housing structures were 
 69.33  built before 1960; 
 69.34     (2) at least 60 percent of the single-family housing is 
 69.35  owner-occupied; 
 69.36     (3) the median market value of the area's owner-occupied 
 70.1   housing, as recorded in the most recent federal decennial 
 70.2   census, is not more than 100 percent of the purchase price limit 
 70.3   for existing homes eligible for purchase in the area under the 
 70.4   agency's home mortgage loan program; and 
 70.5      (4) between 1980 and 1990, the rate of owner occupancy of 
 70.6   residential properties in the area declined by at least five 
 70.7   percent, or at least 80 percent of the residential properties in 
 70.8   the area are rental properties.  
 70.9      The area must include eight blocks in any direction from 
 70.10  the census tract.  Priority must be given for property located 
 70.11  in an area that meets all four criteria.  
 70.12     Sec. 25.  Minnesota Statutes 2000, section 462A.2093, 
 70.13  subdivision 1, is amended to read: 
 70.14     Subdivision 1.  [DEFINITIONS.] For purposes of this 
 70.15  section, the following terms have the meanings given them in 
 70.16  this subdivision. 
 70.17     (a) "Municipality" means a town or a statutory or home rule 
 70.18  city. 
 70.19     (b) "Nonmetropolitan" means the area of the state outside 
 70.20  of the metropolitan area defined in section 473.121, subdivision 
 70.21  2. 
 70.22     (c) "Inclusionary housing development" means a new 
 70.23  construction development including owner-occupied or rental 
 70.24  housing, or a combination of both, with a variety of prices and 
 70.25  designs which serve families with a range of incomes and housing 
 70.26  needs. 
 70.27     Sec. 26.  Minnesota Statutes 2000, section 462A.2097, is 
 70.28  amended to read: 
 70.29     462A.2097 [RENTAL HOUSING.] 
 70.30     The agency may establish a tenant-based or project-based 
 70.31  rental housing assistance program for persons of low income or 
 70.32  for persons with a mental illness or families that include an 
 70.33  adult family member with a mental illness.  Rental assistance 
 70.34  may be in the form of direct rental subsidies for housing for 
 70.35  persons or families with incomes, at the time of initial 
 70.36  occupancy, of up to 50 percent of the area median income as 
 71.1   determined by the United States Department of Housing and Urban 
 71.2   Development, adjusted for families of five or more.  Housing for 
 71.3   the mentally ill must be operated in coordination with social 
 71.4   service providers who provide services requested by tenants.  
 71.5   Direct rental subsidies must be administered by the agency for 
 71.6   the benefit of eligible tenants.  Financial assistance provided 
 71.7   under this section must be in the form of vendor payments 
 71.8   whenever possible. 
 71.9      Sec. 27.  Minnesota Statutes 2000, section 462A.21, 
 71.10  subdivision 5, is amended to read: 
 71.11     Subd. 5.  [OTHER AGENCY PURPOSES.] It may expend moneys in 
 71.12  the fund, not otherwise appropriated, for such other agency 
 71.13  purposes as previously enumerated in sections 462A.01 to 462A.24 
 71.14  this chapter as the agency in its discretion shall determine and 
 71.15  provide. 
 71.16     Sec. 28.  Minnesota Statutes 2000, section 462A.21, 
 71.17  subdivision 10, is amended to read: 
 71.18     Subd. 10.  [CERTAIN APPROPRIATIONS AVAILABLE UNTIL 
 71.19  EXPENDED.] Notwithstanding the repeal of section 462A.26 and the 
 71.20  provisions of section 16A.28 or any other law relating to lapse 
 71.21  of an appropriation, the appropriations made to the agency by 
 71.22  the legislature in 1976 and subsequent years are available until 
 71.23  fully expended, and the allocations provided in the 
 71.24  appropriations remain in effect.  Earnings from investments of 
 71.25  any of the amounts appropriated to the agency are appropriated 
 71.26  to the agency to be used for the same purposes as the respective 
 71.27  original appropriations, after payment of the costs and expenses 
 71.28  necessary and incidental to the development and operation of the 
 71.29  programs authorized under this chapter. 
 71.30     Sec. 29.  Minnesota Statutes 2000, section 462A.21, is 
 71.31  amended by adding a subdivision to read: 
 71.32     Subd. 28.  [FAMILY STABILIZATION DEMONSTRATION 
 71.33  PROJECT.] The agency may spend money for the purposes of section 
 71.34  462A.205 and may pay costs and expenses necessary and incidental 
 71.35  to the development and operation of the project. 
 71.36     Sec. 30.  Minnesota Statutes 2000, section 462A.21, is 
 72.1   amended by adding a subdivision to read: 
 72.2      Subd. 29.  [DISASTER RELIEF CONTINGENCY FUND.] It may 
 72.3   establish a disaster relief contingency fund to provide loans or 
 72.4   grants, on terms and conditions it deems advisable, to assist 
 72.5   with the rehabilitation or replacement of housing damaged as a 
 72.6   result of a natural disaster in areas of the state designated 
 72.7   under presidential declarations of a major disaster.  It may 
 72.8   transfer to the disaster relief contingency fund any repayments 
 72.9   of grants or loans made from appropriations specifically for 
 72.10  assistance after natural disasters in areas of the state 
 72.11  designated under a presidential declaration of a major disaster. 
 72.12     Sec. 31.  Minnesota Statutes 2000, section 462A.21, is 
 72.13  amended by adding a subdivision to read: 
 72.14     Subd. 30.  [MANUFACTURED HOME PARK REDEVELOPMENT.] The 
 72.15  agency may spend money for the purposes of section 462A.2035 and 
 72.16  may pay costs and expenses necessary and incidental to the 
 72.17  development and operation of the program. 
 72.18     Sec. 32.  Minnesota Statutes 2000, section 462A.222, 
 72.19  subdivision 1a, is amended to read: 
 72.20     Subd. 1a.  [DETERMINATION OF REGIONAL CREDIT POOLS.] The 
 72.21  agency shall divide the annual per capita amount used in 
 72.22  determining the state ceiling for low-income housing tax credits 
 72.23  provided under section 42 of the Internal Revenue Code of 1986, 
 72.24  as amended, into a metropolitan pool and a greater Minnesota 
 72.25  pool.  The metropolitan pool shall serve the metropolitan area 
 72.26  as defined in section 473.121, subdivision 2.  The greater 
 72.27  Minnesota pool shall serve the remaining counties of the state.  
 72.28  The percentage of the annual per capita amount allotted to each 
 72.29  pool must be determined as follows: 
 72.30     (a) The percentage set-aside for projects involving a 
 72.31  qualified nonprofit organization as provided in section 42 of 
 72.32  the Internal Revenue Code of 1986, as amended, must be deducted 
 72.33  from the annual per capita amount used in determining the state 
 72.34  ceiling. 
 72.35     (b) Of the remaining amount, the metropolitan pool must be 
 72.36  allotted a percentage equal to the metropolitan counties' 
 73.1   percentage of the total number of state recipients of the 
 73.2   Minnesota family investment program, general assistance, 
 73.3   Minnesota supplemental aid, and supplemental security income in 
 73.4   the state, as reported annually by the department of human 
 73.5   services.  The greater Minnesota pool must be allotted the 
 73.6   amount remaining after the metropolitan pool's percentage has 
 73.7   been allotted. 
 73.8      The set-aside for qualified nonprofit organizations must be 
 73.9   divided between the two regional pools in the same percentage as 
 73.10  determined for the credit amounts above. 
 73.11     Sec. 33.  Minnesota Statutes 2000, section 462A.24, is 
 73.12  amended to read: 
 73.13     462A.24 [CONSTRUCTION.] 
 73.14     Sections 462A.01 to 462A.24 are This chapter is necessary 
 73.15  for the welfare of the state of Minnesota and its inhabitants; 
 73.16  therefore, it shall be liberally construed to effect its purpose.
 73.17     Sec. 34.  Minnesota Statutes 2000, section 462A.33, 
 73.18  subdivision 2, is amended to read: 
 73.19     Subd. 2.  [ELIGIBLE RECIPIENTS.] Challenge grants or loans 
 73.20  may be made to a city, a private developer, a nonprofit 
 73.21  organization, or the owner of the housing, including 
 73.22  individuals.  For the purpose of this section, "city" has the 
 73.23  meaning given it in section 462A.03, subdivision 21.  Preference 
 73.24  shall be given to challenge grants or loans for home ownership.  
 73.25  To the extent practicable, grants and loans shall be made so 
 73.26  that an approximately equal number of housing units are financed 
 73.27  in the metropolitan area, as defined in section 473.121, 
 73.28  subdivision 2, and in the nonmetropolitan area. 
 73.29     Sec. 35.  [462A.34] [VISITABILITY REQUIREMENT.] 
 73.30     All new construction of single-family homes, duplexes, 
 73.31  triplexes, and multilevel townhouses that are financed in whole 
 73.32  or in part by the agency must incorporate basic visitability 
 73.33  access into their design and construction.  For the purpose of 
 73.34  this section, "visitability" means designing a dwelling so that 
 73.35  people with mobility impairments may enter and comfortably stay 
 73.36  for a duration.  The specific design elements include one 
 74.1   no-step entrance, 32-inch clear doorways throughout the 
 74.2   dwelling, and a one-half bathroom on the main level.  The agency 
 74.3   may waive the one-half bathroom requirement if it reduces 
 74.4   affordability for the targeted population of the agency program 
 74.5   from which it is funded.  The agency may waive the no-step 
 74.6   entrance requirement if site conditions make the requirement 
 74.7   impractical or if it reduces affordability for the targeted 
 74.8   population of the agency program from which it is funded.  This 
 74.9   section does not apply to owner-occupied housing financed by the 
 74.10  agency through a mortgage program unless the agency has provided 
 74.11  appropriated funds to finance the construction of the new 
 74.12  owner-occupied housing. 
 74.13     Sec. 36.  [MANUFACTURED HOME PARK REDEVELOPMENT REPORT.] 
 74.14     The housing finance agency shall include in its annual 
 74.15  program assessment the program created by Minnesota Statutes, 
 74.16  section 462A.2035. 
 74.17     Sec. 37.  [STUDY.] 
 74.18     The housing finance agency, in conjunction with the office 
 74.19  of strategic and long-range planning, shall study inclusionary 
 74.20  housing statutes and ordinances throughout the country and shall 
 74.21  report to the legislature by January 15, 2002, on the 
 74.22  implementation of statutes and ordinances on inclusionary 
 74.23  housing, including: 
 74.24     (1) a description of the various inclusionary housing 
 74.25  statutes and ordinances; 
 74.26     (2) the number of housing units, both ownership and rental, 
 74.27  developed under inclusionary statutes and ordinances; 
 74.28     (3) the level of affordability achieved in the housing 
 74.29  developed under inclusionary statutes and ordinances; 
 74.30     (4) the demographic characteristics of the households 
 74.31  residing in the affordable units developed under inclusionary 
 74.32  housing statutes and ordinances, if available; and 
 74.33     (5) the amount of public funds, if any, invested in the 
 74.34  affordable units developed under inclusionary housing statutes 
 74.35  and ordinances. 
 74.36     The report shall make recommendations regarding approaches 
 75.1   to encouraging residential developments that include housing for 
 75.2   a range of incomes.  In developing recommendations, the state 
 75.3   agencies must consult with representatives of builders, 
 75.4   developers, realtors, municipalities, local zoning officials, 
 75.5   housing advocates, and local planning officials. 
 75.6      Sec. 38.  Laws 2000, chapter 488, article 8, section 2, 
 75.7   subdivision 6, is amended to read: 
 75.8   Subd. 6.  Economic Support Grants
 75.9       30,509,000     25,368,000                 
 75.10  The amounts that may be spent from this 
 75.11  appropriation for each purpose are as 
 75.12  follows: 
 75.13  [ASSISTANCE TO FAMILIES GRANTS TANF 
 75.14  FORECAST ADJUSTMENT.] The federal 
 75.15  Temporary Assistance to Needy Families 
 75.16  (TANF) block grant fund appropriated to 
 75.17  the commissioner of human services in 
 75.18  Laws 1999, chapter 245, article 1, 
 75.19  section 2, subdivision 10, for MFIP 
 75.20  cash grants are reduced by $37,513,000 
 75.21  in fiscal year 2000 and $30,217,000 in 
 75.22  fiscal year 2001. 
 75.23  [FEDERAL TANF FUNDS.] (1) In addition 
 75.24  to the Federal Temporary Assistance for 
 75.25  Needy Families (TANF) block grant funds 
 75.26  appropriated to the commissioner of 
 75.27  human services in Laws 1999, chapter 
 75.28  245, article 1, section 2, subdivision 
 75.29  10, federal TANF funds are appropriated 
 75.30  to the commissioner in amounts up to 
 75.31  $20,000,000 in fiscal year 2000 and 
 75.32  $80,440,000 in fiscal year 2001.  In 
 75.33  addition to these funds, the 
 75.34  commissioner may draw or transfer any 
 75.35  other appropriations of federal TANF 
 75.36  funds or transfers of federal TANF 
 75.37  funds that are enacted into state law. 
 75.38  (2) Of the amounts in clause (1), 
 75.39  $19,680,000 in fiscal year 2001 is for 
 75.40  the local intervention grants program 
 75.41  under Minnesota Statutes, section 
 75.42  256J.625 and related grant programs and 
 75.43  shall be expended as follows: 
 75.44  (a) $500,000 in fiscal year 2001 is for 
 75.45  a grant to the Southeast Asian MFIP 
 75.46  services collaborative to replicate in 
 75.47  a second location an existing model of 
 75.48  an intensive intervention transitional 
 75.49  employment training project which 
 75.50  serves TANF-eligible recipients and 
 75.51  which moves refugee and immigrant 
 75.52  welfare recipients unto unsubsidized 
 75.53  employment and leads to economic 
 75.54  self-sufficiency.  This is a one-time 
 75.55  appropriation. 
 75.56  (b) $500,000 in fiscal year 2001 is for 
 75.57  nontraditional career assistance and 
 76.1   training programs under Minnesota 
 76.2   Statutes, section 256K.30, subdivision 
 76.3   4.  This is a one-time appropriation. 
 76.4   (c) $18,680,000 is for local 
 76.5   intervention grants for 
 76.6   self-sufficiency program under 
 76.7   Minnesota Statutes, section 256J.625.  
 76.8   For fiscal years 2002 and 2003 the 
 76.9   commissioner of finance shall ensure 
 76.10  that the base level funding for the 
 76.11  local intervention grants program is 
 76.12  $27,180,000 each year. 
 76.13  (3) Of the amounts in clause (2), 
 76.14  paragraph (c) for local intervention 
 76.15  grants, $7,000,000 in fiscal year 2001 
 76.16  shall be transferred to the 
 76.17  commissioner of health for distribution 
 76.18  to county boards according to the 
 76.19  formula in Minnesota Statutes, section 
 76.20  256J.625, subdivision 3, to be used by 
 76.21  county public health boards to serve 
 76.22  families with incomes at or below 200 
 76.23  percent of the federal poverty 
 76.24  guidelines, in the manner specified by 
 76.25  Minnesota Statutes, section 145A.16, 
 76.26  subdivision 3, clauses (2) through 
 76.27  (6).  Training, evaluation and 
 76.28  technical assistance shall be provided 
 76.29  in accordance with Minnesota Statutes, 
 76.30  section 145A.16, subdivisions 5 to 7.  
 76.31  For fiscal years 2002 and 2003 the 
 76.32  commissioner of finance shall ensure 
 76.33  that the base level funding for this 
 76.34  activity is $7,000,000 each year. 
 76.35  (4) Of the amounts in clause (1), 
 76.36  $250,000 in fiscal year 2001 is 
 76.37  appropriated to the commissioner to 
 76.38  contract with the board of trustees of 
 76.39  the Minnesota state colleges and 
 76.40  universities to provide tuition waivers 
 76.41  to employees of health care and human 
 76.42  services providers located in the state 
 76.43  that are members of qualifying 
 76.44  consortia operating under Minnesota 
 76.45  Statutes, sections 116L.10 to 116L.15. 
 76.46  (5) Of the amounts in clause (1), 
 76.47  $320,000 in fiscal year 2001 is for 
 76.48  training job counselors about the MFIP 
 76.49  program.  For fiscal years 2002 and 
 76.50  2003 the commissioner of finance shall 
 76.51  ensure that the base level funding for 
 76.52  employment services includes $320,000 
 76.53  each year for this activity.  The 
 76.54  appropriations in this clause shall not 
 76.55  become part of the base for the 
 76.56  2004-2005 biennium. 
 76.57  (6) Of the amounts in clause (1), 
 76.58  $1,000,000 in fiscal year 2001 is for 
 76.59  out-of-wedlock pregnancy prevention 
 76.60  funds to serve children in 
 76.61  TANF-eligible families under Minnesota 
 76.62  Statutes, section 256K.35. For fiscal 
 76.63  years 2002 and 2003 the commissioner of 
 76.64  finance shall ensure that the base 
 76.65  level funding for this program is 
 76.66  $1,000,000 each year.  The 
 77.1   appropriations in this clause shall not 
 77.2   become part of the base for the 
 77.3   2004-2005 biennium. 
 77.4   (7) Of the amounts in clause (1), 
 77.5   $1,000,000 in fiscal year 2001 is to 
 77.6   provide services to TANF-eligible 
 77.7   families who are participating in the 
 77.8   supportive housing and managed care 
 77.9   pilot project under Minnesota Statutes, 
 77.10  section 256K.25.  For fiscal years 2002 
 77.11  and 2003 the commissioner of finance 
 77.12  shall ensure that the base level 
 77.13  funding for this project is $1,000,000 
 77.14  each year.  The appropriations in this 
 77.15  clause shall not become part of the 
 77.16  base for this project for the 2004-2005 
 77.17  biennium. 
 77.18  [TANF TRANSFER TO SOCIAL SERVICES.] 
 77.19  $7,500,000 is transferred from the 
 77.20  state's federal TANF block grant to the 
 77.21  state's federal Title XX block grant in 
 77.22  fiscal year 2001 and in fiscal year 
 77.23  2002, for purposes of increasing 
 77.24  services for families with children 
 77.25  whose incomes are at or below 200 
 77.26  percent of the federal poverty 
 77.27  guidelines.  Notwithstanding section 6, 
 77.28  this paragraph expires June 30, 2002. 
 77.29  [TANF MOE.] (a) In order to meet the 
 77.30  basic maintenance of effort (MOE) 
 77.31  requirements of the TANF block grant 
 77.32  specified under United States Code, 
 77.33  title 42, section 609(a)(7), the 
 77.34  commissioner may only report nonfederal 
 77.35  money expended for allowable activities 
 77.36  listed in the following clauses as TANF 
 77.37  MOE expenditures: 
 77.38  (1) MFIP cash and food assistance 
 77.39  benefits under Minnesota Statutes, 
 77.40  chapter 256J; 
 77.41  (2) the child care assistance programs 
 77.42  under Minnesota Statutes, sections 
 77.43  119B.03 and 119B.05, and county child 
 77.44  care administrative costs under 
 77.45  Minnesota Statutes, section 119B.15; 
 77.46  (3) state and county MFIP 
 77.47  administrative costs under Minnesota 
 77.48  Statutes, chapters 256J and 256K; 
 77.49  (4) state, county, and tribal MFIP 
 77.50  employment services under Minnesota 
 77.51  Statutes, chapters 256J and 256K; and 
 77.52  (5) expenditures made on behalf of 
 77.53  noncitizen MFIP recipients who qualify 
 77.54  for the medical assistance without 
 77.55  federal financial participation program 
 77.56  under Minnesota Statutes, section 
 77.57  256B.06, subdivision 4, paragraphs (d), 
 77.58  (e), and (j). 
 77.59  (b) The commissioner shall ensure that 
 77.60  sufficient qualified nonfederal 
 77.61  expenditures are made each year to meet 
 77.62  the state's TANF MOE requirements.  For 
 78.1   the activities listed in paragraph (a), 
 78.2   clauses (2) to (6), the commissioner 
 78.3   may only report expenditures that are 
 78.4   excluded from the definition of 
 78.5   assistance under Code of Federal 
 78.6   Regulations, title 45, section 260.31.  
 78.7   If nonfederal expenditures for the 
 78.8   programs and purposes listed in 
 78.9   paragraph (a) are insufficient to meet 
 78.10  the state's TANF MOE requirements, the 
 78.11  commissioner shall recommend additional 
 78.12  allowable sources of nonfederal 
 78.13  expenditures to the legislature, if the 
 78.14  legislature is or will be in session to 
 78.15  take action to specify additional 
 78.16  sources of nonfederal expenditures for 
 78.17  TANF MOE before a federal penalty is 
 78.18  imposed.  The commissioner shall 
 78.19  otherwise provide notice to the 
 78.20  legislative commission on planning and 
 78.21  fiscal policy under paragraph (d). 
 78.22  (c) If the commissioner uses authority 
 78.23  granted under Laws 1999, chapter 245, 
 78.24  article 1, section 10, or similar 
 78.25  authority granted by a subsequent 
 78.26  legislature, to meet the state's TANF 
 78.27  MOE requirements in a reporting period, 
 78.28  the commissioner shall inform the 
 78.29  chairs of the appropriate legislative 
 78.30  committees about all transfers made 
 78.31  under that authority for this purpose. 
 78.32  (d) If the commissioner determines that 
 78.33  nonfederal expenditures for the 
 78.34  programs under Minnesota Statutes, 
 78.35  section 256J.025, are insufficient to 
 78.36  meet TANF MOE expenditure requirements, 
 78.37  and if the legislature is not or will 
 78.38  not be in session to take timely action 
 78.39  to avoid a federal penalty, the 
 78.40  commissioner may report nonfederal 
 78.41  expenditures from other allowable 
 78.42  sources as TANF MOE expenditures after 
 78.43  the requirements of this paragraph are 
 78.44  met. 
 78.45  The commissioner may report nonfederal 
 78.46  expenditures in addition to those 
 78.47  specified under paragraph (a) as 
 78.48  nonfederal TANF MOE expenditures, but 
 78.49  only ten days after the commissioner of 
 78.50  finance has first submitted the 
 78.51  commissioner's recommendations for 
 78.52  additional allowable sources of 
 78.53  nonfederal TANF MOE expenditures to the 
 78.54  members of the legislative commission 
 78.55  on planning and fiscal policy for their 
 78.56  review. 
 78.57  (e) The commissioner of finance shall 
 78.58  not incorporate any changes in federal 
 78.59  TANF expenditures or nonfederal 
 78.60  expenditures for TANF MOE that may 
 78.61  result from reporting additional 
 78.62  allowable sources of nonfederal TANF 
 78.63  MOE expenditures under the interim 
 78.64  procedures in paragraph (d) into the 
 78.65  February or November forecasts required 
 78.66  under Minnesota Statutes, section 
 78.67  16A.103, unless the commissioner of 
 79.1   finance has approved the additional 
 79.2   sources of expenditures under paragraph 
 79.3   (d). 
 79.4   (f) The provisions of paragraphs (a) to 
 79.5   (e) supersede any contrary provisions 
 79.6   in Laws 1999, chapter 245, article 1, 
 79.7   section 2, subdivision 10. 
 79.8   (g) The provisions of Minnesota 
 79.9   Statutes, section 256.011, subdivision 
 79.10  3, which require that federal grants or 
 79.11  aids secured or obtained under that 
 79.12  subdivision be used to reduce any 
 79.13  direct appropriations provided by law 
 79.14  do not apply if the grants or aids are 
 79.15  federal TANF funds. 
 79.16  (h) Notwithstanding section 6 of this 
 79.17  article, paragraphs (a) to (g) expire 
 79.18  June 30, 2003. 
 79.19  (i) Paragraphs (a) to (h) are effective 
 79.20  the day following final enactment. 
 79.21  (a) Assistance to Families Grants
 79.22       9,628,000     (2,305,000)                
 79.23  (b) Work Grants
 79.24          -0-          (250,000)
 79.25  (c) AFDC and Other Assistance
 79.26      20,000,000     30,734,000 
 79.27  [TRANSFERS TO MINNESOTA HOUSING FINANCE 
 79.28  AGENCY.] (a) By June 30, 2001, the 
 79.29  commissioner shall transfer $50,000,000 
 79.30  of the general funds appropriated under 
 79.31  this paragraph to the Minnesota housing 
 79.32  finance agency for transfer to the 
 79.33  housing development fund.  The program 
 79.34  funded by this transfer shall be known 
 79.35  as the "Bruce F. Vento Year 2000 
 79.36  Affordable Housing Program." Up to 
 79.37  $15,000,000 may be transferred in 
 79.38  fiscal year 2000. 
 79.39  (b) Of the funds transferred in 
 79.40  paragraph (a), $5,000,000 in fiscal 
 79.41  year 2001 and $15,000,000 in fiscal 
 79.42  year 2002 is for a loan to Habitat for 
 79.43  Humanity of Minnesota, Inc.  The loan 
 79.44  shall be an interest-free deferred 
 79.45  loan.  The loan shall become due and 
 79.46  payable in the event and to the extent 
 79.47  that Habitat for Humanity of Minnesota, 
 79.48  Inc. does not invest repayments and 
 79.49  prepayment of mortgage loans financed 
 79.50  with this appropriation in new 
 79.51  mortgages for additional homebuyers 
 79.52  through Habitat for Humanity of 
 79.53  Minnesota, Inc.  To the extent 
 79.54  practicable, funding must be allocated 
 79.55  to Habitat for Humanity chapters on the 
 79.56  basis of the number of MFIP households 
 79.57  residing within a chapter's service 
 79.58  area compared to the statewide total of 
 79.59  MFIP households and on the basis of a 
 80.1   chapter's capacity. 
 80.2   (c) Of the funds transferred in 
 80.3   paragraph (a), $15,000,000 in fiscal 
 80.4   year 2001 and $15,000,000 in fiscal 
 80.5   year 2002 is for the affordable rental 
 80.6   investment fund program under Minnesota 
 80.7   Statutes, section 462A.21, subdivision 
 80.8   8b.  To the extent practicable, the 
 80.9   number of units financed with the 
 80.10  appropriation under this paragraph 
 80.11  within a city, county, or region shall 
 80.12  reflect the number of MFIP households 
 80.13  residing within the city, county, or 
 80.14  region compared to the statewide total 
 80.15  of MFIP households.  This appropriation 
 80.16  must be used to finance rental housing 
 80.17  units that serve families: 
 80.18  (1) receiving MFIP benefits under 
 80.19  Minnesota Statutes, section 256J.01, or 
 80.20  its successor program; and 
 80.21  (2) who have lost eligibility for MFIP 
 80.22  due to increased income from employment 
 80.23  or due to the collection of child or 
 80.24  spousal support under part D of title 
 80.25  IV of the Social Security Act for 
 80.26  reasons other than disqualification 
 80.27  from MFIP due to fraud. 
 80.28  Units produced with this appropriation 
 80.29  must remain affordable for a 30-year 
 80.30  period. 
 80.31  In order to coordinate the availability 
 80.32  of housing developed with the 
 80.33  appropriation under this paragraph with 
 80.34  MFIP families in need of affordable 
 80.35  housing, the commissioner of the 
 80.36  Minnesota housing finance agency, with 
 80.37  the assistance of the commissioner of 
 80.38  human services, shall establish 
 80.39  cooperative relationships with county 
 80.40  agencies as defined in Minnesota 
 80.41  Statutes, section 256J.08, local 
 80.42  employment and training service 
 80.43  providers as defined in Minnesota 
 80.44  Statutes, section 256J.49, local social 
 80.45  service agencies, or other 
 80.46  organizations that provide assistance 
 80.47  to MFIP households.  
 80.48  The commissioner of the Minnesota 
 80.49  housing finance agency shall develop 
 80.50  strategies to promote occupancy of the 
 80.51  units financed by the appropriation 
 80.52  under this paragraph by households most 
 80.53  in need of subsidized housing.  The 
 80.54  strategies shall include provisions 
 80.55  that encourage households to move into 
 80.56  homeownership or unsubsidized housing 
 80.57  as the household secures stable 
 80.58  employment and achieves 
 80.59  self-sufficiency.  The commissioner of 
 80.60  the Minnesota housing finance agency 
 80.61  shall consult with interested parties 
 80.62  in developing these strategies.  
 80.63  (d) The commissioner of the Minnesota 
 80.64  housing finance agency and the 
 81.1   commissioner of human services shall 
 81.2   jointly prepare and submit a report to 
 81.3   the governor and the legislature on the 
 81.4   results of the funding provided under 
 81.5   this section.  The report shall include:
 81.6   (1) information on the number of units 
 81.7   produced; 
 81.8   (2) the household size and income of 
 81.9   the occupants of the units at initial 
 81.10  occupancy; and 
 81.11  (3) to the extent the information is 
 81.12  available, measures related to the 
 81.13  occupants' attachment to the workforce 
 81.14  and public assistance usage, and number 
 81.15  of occupant moves. 
 81.16  The report must be submitted annually 
 81.17  beginning January 15, 2003. 
 81.18  (e) Section 6, sunset of uncodified 
 81.19  language, does not apply to paragraphs 
 81.20  (a) to (d).  Paragraphs (a) to (d) are 
 81.21  effective the day following final 
 81.22  enactment. 
 81.23  [WORKING FAMILY CREDIT.] (a) On a 
 81.24  regular basis, the commissioner of 
 81.25  revenue, with the assistance of the 
 81.26  commissioner of human services, shall 
 81.27  calculate the value of the refundable 
 81.28  portion of the Minnesota working family 
 81.29  credits provided under Minnesota 
 81.30  Statutes, section 290.0671, that 
 81.31  qualifies for federal reimbursement 
 81.32  from the temporary assistance to needy 
 81.33  families block grant.  The commissioner 
 81.34  of revenue shall provide the 
 81.35  commissioner of human services with 
 81.36  such expenditure records and 
 81.37  information as are necessary to support 
 81.38  draws of federal funds.  The 
 81.39  commissioner of human services shall 
 81.40  reimburse the commissioner of revenue 
 81.41  for the costs of providing the 
 81.42  information required by this paragraph. 
 81.43  (b) Federal TANF funds, as specified in 
 81.44  this paragraph, are appropriated to the 
 81.45  commissioner of human services based on 
 81.46  calculations under paragraph (a) of 
 81.47  working family tax credit expenditures 
 81.48  that qualify for reimbursement from the 
 81.49  TANF block grant for income tax refunds 
 81.50  payable in federal fiscal years 
 81.51  beginning October 1, 1999.  The draws 
 81.52  of federal TANF funds shall be made on 
 81.53  a regular basis based on calculations 
 81.54  of credit expenditures by the 
 81.55  commissioner of revenue.  Up to the 
 81.56  following amounts of federal TANF draws 
 81.57  are appropriated to the commissioner of 
 81.58  human services to deposit into the 
 81.59  general fund:  in fiscal year 2000, 
 81.60  $30,957,000; and in fiscal year 2001, 
 81.61  $33,895,000. 
 81.62  (d) General Assistance
 82.1           557,000    (3,134,000)
 82.2   (e) Minnesota Supplemental Aid
 82.3           324,000       323,000 
 82.4      Sec. 39.  [REPEALER.] 
 82.5      Minnesota Statutes 2000, sections 462A.221, subdivision 4; 
 82.6   and 462A.30, subdivision 2, are repealed. 
 82.7                              ARTICLE 5
 82.8                    HOUSING PROGRAM CONSOLIDATION
 82.9      Section 1.  Minnesota Statutes 2000, section 462A.201, 
 82.10  subdivision 2, is amended to read: 
 82.11     Subd. 2.  [LOW-INCOME HOUSING.] (a) The agency may, in 
 82.12  consultation with the advisory committee, use money from the 
 82.13  housing trust fund account to provide loans or grants for: 
 82.14     (1) projects for the development, construction, 
 82.15  acquisition, preservation, and rehabilitation of low-income 
 82.16  rental and limited equity cooperative housing units, including 
 82.17  temporary and transitional housing, and homes for ownership; 
 82.18     (2) the costs of operating rental housing, as determined by 
 82.19  the agency, that are unique to the operation of low-income 
 82.20  rental housing or supportive housing; and 
 82.21     (3) rental assistance, either project-based or tenant-based.
 82.22  For purposes of this section, "transitional housing" means 
 82.23  housing that is provided for a limited duration not exceeding 24 
 82.24  months, except that up to one-third of the residents may live in 
 82.25  the housing for up to 36 months has the meaning given by the 
 82.26  United States Department of Housing and Urban Development.  
 82.27  Loans or grants for residential housing for migrant farmworkers 
 82.28  may be made under this section.  No more than 20 percent of 
 82.29  available funds may be used for home ownership projects.  
 82.30     (b) A rental or limited equity cooperative permanent 
 82.31  housing project must meet one of the following income tests: 
 82.32     (1) at least 75 percent of the rental and cooperative units 
 82.33  must be rented to or cooperatively owned by persons and families 
 82.34  whose income does not exceed 30 percent of the median family 
 82.35  income for the metropolitan area as defined in section 473.121, 
 82.36  subdivision 2; or 
 83.1      (2) all The housing trust fund account must be used for the 
 83.2   benefit of persons and families whose income, at the time of 
 83.3   initial occupancy, does not exceed 60 percent of median income 
 83.4   as determined by the United States Department of Housing and 
 83.5   Urban Development for the metropolitan area.  At least 75 
 83.6   percent of the units funded by funds in the housing trust fund 
 83.7   account must be used for the benefit of persons and families 
 83.8   whose income, at the time of initial occupancy, does not exceed 
 83.9   30 percent of the median family income for the metropolitan area 
 83.10  as defined in section 473.121, subdivision 2.  For purposes of 
 83.11  this section, a household with a housing assistance voucher 
 83.12  under section 8 of the United States Housing Act of 1937, as 
 83.13  amended, is deemed to meet the income requirements of this 
 83.14  section. 
 83.15     The median family income may be adjusted for families of 
 83.16  five or more. 
 83.17     (c) Homes for ownership must be owned or purchased by 
 83.18  persons and families whose income does not exceed 50 percent of 
 83.19  the metropolitan area median income, adjusted for family size. 
 83.20     (d) Rental assistance under this section must be provided 
 83.21  by governmental units which administer housing assistance 
 83.22  supplements or by for-profit or nonprofit organizations 
 83.23  experienced in housing management.  Rental assistance shall be 
 83.24  limited to households whose income at the time of initial 
 83.25  receipt of rental assistance does not exceed 60 percent of 
 83.26  median income, as determined by the United States Department of 
 83.27  Housing and Urban Development for the metropolitan area.  
 83.28  Priority among comparable applications for tenant-based rental 
 83.29  assistance will be given to proposals that will serve households 
 83.30  whose income at the time of initial application for rental 
 83.31  assistance does not exceed 30 percent of median income, as 
 83.32  determined by the United States Department of Housing and Urban 
 83.33  Development for the metropolitan area.  Rental assistance must 
 83.34  be terminated when it is determined that 30 percent of a 
 83.35  household's monthly income for four consecutive months equals or 
 83.36  exceeds the market rent for the unit in which the household 
 84.1   resides plus utilities for which the tenant is responsible.  
 84.2   Rental assistance may only be used for rental housing units that 
 84.3   meet the housing maintenance code of the local unit of 
 84.4   government in which the unit is located, if such a code has been 
 84.5   adopted, or the housing quality standards adopted by the United 
 84.6   States Department of Housing and Urban Development, if no local 
 84.7   housing maintenance code has been adopted.  
 84.8      (d) In making the loans or grants, the agency shall 
 84.9   determine the terms and conditions of repayment and the 
 84.10  appropriate security, if any, should repayment be required.  To 
 84.11  promote the geographic distribution of grants and loans, the 
 84.12  agency may designate a portion of the grant or loan awards to be 
 84.13  set aside for projects located in specified congressional 
 84.14  districts or other geographical regions specified by the 
 84.15  agency.  The agency may adopt rules for awarding grants and 
 84.16  loans under this subdivision. 
 84.17     Sec. 2.  Minnesota Statutes 2000, section 462A.201, 
 84.18  subdivision 6, is amended to read: 
 84.19     Subd. 6.  [REPORT.] The agency shall submit a biennial 
 84.20  report to the legislature and the governor annually on the use 
 84.21  of the housing trust fund account including the number of loans 
 84.22  and grants made, the number and types of residential units 
 84.23  assisted through the account, the number of households for whom 
 84.24  rental assistance payments were provided, and the number of 
 84.25  residential units assisted through the account that were rented 
 84.26  to or cooperatively owned by persons or families at or below 30 
 84.27  percent of the median family income of the metropolitan area at 
 84.28  the time of initial occupancy.  
 84.29     Sec. 3.  Minnesota Statutes 2000, section 462A.209, is 
 84.30  amended to read: 
 84.31     462A.209 [HOME OWNERSHIP ASSISTANCE EDUCATION, COUNSELING, 
 84.32  AND TRAINING PROGRAM.] 
 84.33     Subdivision 1.  [FULL CYCLE HOME OWNERSHIP SERVICES.] 
 84.34  The full cycle home ownership services homeownership education, 
 84.35  counseling, and training program shall be used to fund provide 
 84.36  funding to community-based nonprofit organizations and political 
 85.1   subdivisions providing, building capacity to provide, or 
 85.2   supporting full cycle lending for to assist them in building the 
 85.3   capacity to provide and providing full cycle home ownership 
 85.4   services to low and moderate income home buyers and homeowners, 
 85.5   including seniors.  The purpose of the program is to encourage 
 85.6   private investment in affordable housing and collaboration of 
 85.7   nonprofit organizations and political subdivisions with each 
 85.8   other and private lenders in providing full cycle lending 
 85.9   homeownership services. 
 85.10     Subd. 2.  [DEFINITION.] "Full cycle home ownership 
 85.11  services" means supporting eligible home buyers and owners home 
 85.12  owners through all phases of purchasing and keeping a home, by 
 85.13  providing prepurchase home buyer education,; prepurchase 
 85.14  counseling and credit repair,; prepurchase and postpurchase 
 85.15  property inspection and technical and financial assistance to 
 85.16  buyers in rehabilitating the home,; postpurchase counseling, 
 85.17  including home equity conversion loan counseling, mortgage 
 85.18  default counseling, postpurchase assistance with home 
 85.19  maintenance, entry cost assistance,; foreclosure prevention and 
 85.20  assistance; and access to flexible loan products. 
 85.21     Subd. 3.  [ELIGIBILITY.] The agency shall establish 
 85.22  eligibility criteria for nonprofit organizations and political 
 85.23  subdivisions to receive funding under this section.  The 
 85.24  eligibility criteria must require the nonprofit organization or 
 85.25  political subdivision to provide, to build capacity to provide, 
 85.26  or support full cycle home ownership services for eligible home 
 85.27  buyers.  The agency may fund a nonprofit organization or 
 85.28  political subdivision that will provide full cycle home 
 85.29  ownership services by coordinating with one or more other 
 85.30  organizations that will provide specific components of full 
 85.31  cycle home ownership services.  The agency may make exceptions 
 85.32  to providing all components of full cycle lending if justified 
 85.33  by the application.  If there are more applicants requesting 
 85.34  funding than there are funds available, the agency shall award 
 85.35  the funds on a competitive basis and also assure an equitable 
 85.36  geographic distribution of the available funds.  The eligibility 
 86.1   criteria must require the nonprofit organization or political 
 86.2   subdivision to have a demonstrated involvement in the local 
 86.3   community and to target the housing affordability needs of the 
 86.4   local community or to have demonstrated experience with 
 86.5   counseling older persons on housing, or both.  The eligibility 
 86.6   criteria may include a requirement for specific training 
 86.7   provided by designated state or national entities.  The agency 
 86.8   may also include an eligibility criteria that requires counselor 
 86.9   certification or organizational accreditation by specified 
 86.10  organizations which provide certification or accreditation 
 86.11  services.  Partnerships and collaboration with innovative, grass 
 86.12  roots, or community-based initiatives shall be encouraged.  The 
 86.13  agency shall give priority to nonprofit organizations and 
 86.14  political subdivisions that provide matching funds have funding 
 86.15  from other sources for full cycle homeownership services.  
 86.16  Applicants for funds under section 462A.057 may also apply funds 
 86.17  under this program. 
 86.18     Subd. 4.  [ENTRY COST HOME OWNERSHIP OPPORTUNITY PROGRAM.] 
 86.19  The agency may establish an entry cost home ownership 
 86.20  opportunity program, on terms and conditions it deems advisable, 
 86.21  to assist individuals with downpayment and closing costs to 
 86.22  finance the purchase of a home. 
 86.23     Subd. 5.  [SELECTION CRITERIA.] The agency shall take the 
 86.24  following criteria into consideration when determining whether 
 86.25  to award funds to an eligible organization: 
 86.26     (1) the extent to which there is an equitable geographic 
 86.27  distribution of funds among program applicants; 
 86.28     (2) the prior experience and documented familiarity of the 
 86.29  organization, as may be applicable, in establishing, 
 86.30  administering, and maintaining some or all of the components of 
 86.31  full cycle homeownership services; 
 86.32     (3) the reasonableness of the proposed budget in meeting 
 86.33  the program objectives, a demonstrated ability to leverage 
 86.34  program money with other sources of funding, and the extent of 
 86.35  the leveraging of other sources of funding; 
 86.36     (4) the extent to which efforts are targeted towards 
 87.1   households with incomes that do not exceed 80 percent of the 
 87.2   state or area median income or underserved segments of the local 
 87.3   population; and 
 87.4      (5) the extent to which program funding does not duplicate 
 87.5   other efforts currently available in the local area and will 
 87.6   enable, expand, or enhance existing activities. 
 87.7      Subd. 6.  [DESIGNATED AREAS.] A program administrator must 
 87.8   designate specific areas, communities, or neighborhoods within 
 87.9   which the program is proposed to be operated for the purpose of 
 87.10  focusing resources. 
 87.11     Subd. 7.  [ASSISTANCE TO PREVENT MORTGAGE FORECLOSURES.] (a)
 87.12  Program assistance and counseling to prevent mortgage 
 87.13  foreclosures or cancellations of contract for deeds includes 
 87.14  general information, screening, assessment, referral services, 
 87.15  case management, advocacy, and financial assistance to borrowers 
 87.16  who are delinquent on mortgage or contract for deed payments. 
 87.17     (b) Not more than one-half of funds awarded for foreclosure 
 87.18  prevention and assistance activities may be used for mortgage or 
 87.19  financial counseling services. 
 87.20     (c) Financial assistance consists of payments for 
 87.21  delinquent mortgage or contract for deed payments, future 
 87.22  mortgage or contract for deed payments for a period of up to six 
 87.23  months, property taxes, assessments, utilities, insurance, home 
 87.24  improvement repairs, future rent payments for a period of up to 
 87.25  six months, and relocation costs if necessary, or other costs 
 87.26  necessary to prevent foreclosure. 
 87.27     (d) An individual or family may receive a maximum of $5,500 
 87.28  of financial assistance to prevent a mortgage foreclosure or the 
 87.29  cancellation of a contract for deed. 
 87.30     (e) The agency may require the recipient of financial 
 87.31  assistance to enter into an agreement with the agency for 
 87.32  repayment.  The repayment agreement for mortgages or contract 
 87.33  for deed buyers must provide that in the event the property is 
 87.34  sold, transferred, or otherwise conveyed, or ceases to be the 
 87.35  recipient's principal place of residence, the recipient shall 
 87.36  repay all or a portion of the financial assistance.  The agency 
 88.1   may take into consideration financial hardship in determining 
 88.2   repayment requirements.  The repayment agreement may be secured 
 88.3   by a lien on the property for the benefit of the agency. 
 88.4      Subd. 8.  [REPORT.] By January 10 of every year, each 
 88.5   nonprofit organization that delivers services under this section 
 88.6   must submit a report to the agency that summarizes the number of 
 88.7   people served and the sources and amounts of nonstate money used 
 88.8   to fund the services.  The agency shall annually submit a report 
 88.9   to the legislature by February 15. 
 88.10     Sec. 4.  Minnesota Statutes 2000, section 462A.21, is 
 88.11  amended by adding a subdivision to read: 
 88.12     Subd. 27.  [ECONOMIC DEVELOPMENT AND HOUSING CHALLENGE 
 88.13  PROGRAM.] The agency may spend money for the purposes of section 
 88.14  462A.33 and may pay the costs and expenses necessary and 
 88.15  incidental to the development and operation of the program. 
 88.16     Sec. 5.  Minnesota Statutes 2000, section 462A.33, 
 88.17  subdivision 1, is amended to read: 
 88.18     Subdivision 1.  [CREATED.] The economic development and 
 88.19  housing challenge program is created to be administered by the 
 88.20  agency. 
 88.21     (a) The program shall provide grants or loans for the 
 88.22  purpose of construction, acquisition, rehabilitation, demolition 
 88.23  or removal of existing structures, construction financing, 
 88.24  permanent financing, interest rate reduction, refinancing, and 
 88.25  gap financing of housing to support economic development and 
 88.26  redevelopment activities or job creation or job preservation 
 88.27  within a community or region by meeting locally identified 
 88.28  housing needs. 
 88.29     Gap financing is either: 
 88.30     (i) the difference between the costs of the property, 
 88.31  including acquisition, demolition, rehabilitation, and 
 88.32  construction, and the market value of the property upon sale; or 
 88.33     (ii) the difference between the cost of the property and 
 88.34  the amount the targeted household can afford for housing, based 
 88.35  on industry standards and practices. 
 88.36     (b) Preference for grants and loans shall be given to 
 89.1   comparable proposals that include regulatory changes or waivers 
 89.2   that result in identifiable cost avoidance or cost reductions, 
 89.3   such as increased density, flexibility in site development 
 89.4   standards, or zoning code requirements.  Preference must also be 
 89.5   given among comparable proposals to proposals for projects that 
 89.6   are accessible to transportation systems, jobs, schools, and 
 89.7   other services. 
 89.8      (c) If a grant or loan is used for demolition or removal of 
 89.9   existing structures, the cleared land must be used for the 
 89.10  construction of housing to be owned or rented by persons who 
 89.11  meet the income limits of this section or for other 
 89.12  housing-related purposes that primarily benefit the persons 
 89.13  residing in the adjacent housing.  In making selections for 
 89.14  grants or loans for projects that demolish affordable housing 
 89.15  units, the agency must review the potential displacement of 
 89.16  residents and consider the extent to which displacement of 
 89.17  residents is minimized. 
 89.18     Sec. 6.  Minnesota Statutes 2000, section 462A.33, 
 89.19  subdivision 2, is amended to read: 
 89.20     Subd. 2.  [ELIGIBLE RECIPIENTS.] Challenge grants or loans 
 89.21  may be made to a city, a private developer, a nonprofit 
 89.22  organization, or the owner of the housing, including 
 89.23  individuals.  For the purpose of this section, "city" has the 
 89.24  meaning given it in section 462A.03, subdivision 21.  Preference 
 89.25  shall be given to challenge grants or loans for home ownership.  
 89.26  To the extent practicable, grants and loans shall be made so 
 89.27  that an approximately equal number of housing units are financed 
 89.28  in the metropolitan area, as defined in section 473.121, 
 89.29  subdivision 2, and in the nonmetropolitan area. 
 89.30     Sec. 7.  Minnesota Statutes 2000, section 462A.33, 
 89.31  subdivision 3, is amended to read: 
 89.32     Subd. 3.  [CONTRIBUTION REQUIREMENT; REGULATORY 
 89.33  FLEXIBILITY.] Fifty percent of the funds appropriated for this 
 89.34  section must be used for challenge grants or loans which meet 
 89.35  the requirements of this subdivision.  These challenge grants or 
 89.36  loans must be used for economically viable homeownership or 
 90.1   rental housing proposals that:  
 90.2      (1) include a financial or in-kind contribution from an 
 90.3   area employer and either a unit of local government or a private 
 90.4   philanthropic, religious, or charitable organization; and 
 90.5      (2) address the housing needs of the local work force.  
 90.6      For the purpose of this subdivision, an employer 
 90.7   contribution may consist partially or wholly of the premium paid 
 90.8   for federal housing tax credits.  Preference for grants and 
 90.9   loans shall be given to comparable proposals that include 
 90.10  regulatory changes that result in identifiable cost avoidance or 
 90.11  cost reductions, such as increased density, flexibility in site 
 90.12  development standards, or zoning code requirements.  
 90.13     Preference for grants and loans shall also be given to 
 90.14  comparable proposals that include a financial or in-kind 
 90.15  contribution from a unit of local government, an area employer, 
 90.16  and a private philanthropic, religious, or charitable 
 90.17  organization. 
 90.18     Sec. 8.  Minnesota Statutes 2000, section 462A.33, 
 90.19  subdivision 5, is amended to read: 
 90.20     Subd. 5.  [INCOME LIMITS.] Households served through 
 90.21  challenge grants or loans must not have incomes at the time of 
 90.22  initial occupancy that exceed, for homeownership projects, 115 
 90.23  percent of the greater of state or area median income as 
 90.24  determined by the United States Department of Housing and Urban 
 90.25  Development, and for rental housing projects, 115 80 percent of 
 90.26  the greater of state or area median income as determined by the 
 90.27  United States Department of Housing and Urban Development except 
 90.28  that the housing developed or rehabilitated with challenge fund 
 90.29  grants or loans must be affordable to the local work force. 
 90.30     Preference among comparable proposals shall be given those 
 90.31  that provide housing opportunities for an expanded range of 
 90.32  household incomes within a community or that provide housing 
 90.33  opportunities for a wide range of incomes within the development.
 90.34     Sec. 9.  Minnesota Statutes 2000, section 462A.33, is 
 90.35  amended by adding a subdivision to read: 
 90.36     Subd. 8.  [LIMITATION ON RETURN.] The limitations on return 
 91.1   of eligible mortgagors contained in section 462A.03, subdivision 
 91.2   13, do not apply to loans or grants for rental housing if the 
 91.3   loans or grants made by the agency, from all sources, are less 
 91.4   than 50 percent of the total costs, as determined by the agency. 
 91.5      Sec. 10.  [REPEALER.] 
 91.6      Minnesota Statutes 2000, sections 462A.201, subdivision 4; 
 91.7   462A.207; 462A.209, subdivision 4; 462A.21, subdivision 17; and 
 91.8   462A.33, subdivisions 4, 6, and 7, are repealed. 
 91.9                              ARTICLE 6
 91.10                    PUBLIC SERVICE CONSOLIDATION 
 91.11     Section 1.  [CONSOLIDATION OF STATE REGULATION OF 
 91.12  COMMERCE.] 
 91.13     In order to make state government more efficient and 
 91.14  effective and to accomplish more efficient and effective 
 91.15  regulation of commerce in Minnesota, all of the powers, rights, 
 91.16  responsibilities, and duties that remain in the department of 
 91.17  public service after reorganization order No. 181 are 
 91.18  transferred to the department of commerce under Minnesota 
 91.19  Statutes, section 15.039.  This transfer is governed in all 
 91.20  respects by Minnesota Statutes, section 15.039.  The department 
 91.21  of public service is abolished. 
 91.22     Sec. 2.  Minnesota Statutes 2000, section 3C.12, 
 91.23  subdivision 2, is amended to read: 
 91.24     Subd. 2.  [FREE DISTRIBUTION.] The revisor shall distribute 
 91.25  without charge copies of each edition of Minnesota Statutes, 
 91.26  supplements to Minnesota Statutes, and Laws of Minnesota to the 
 91.27  persons or bodies listed in this subdivision.  Before 
 91.28  distributing the copies, the revisor shall inform these persons 
 91.29  or bodies of the cost of the publication and the availability of 
 91.30  statutes and session laws on the Internet, and shall ask whether 
 91.31  their work requires the full number of copies authorized by this 
 91.32  subdivision.  Unless a smaller number is needed, the revisor 
 91.33  shall distribute:  
 91.34     (a) 30 copies to the supreme court; 
 91.35     (b) 30 copies to the court of appeals; 
 91.36     (c) one copy to each judge of a district court; 
 92.1      (d) one copy to the court administrator of each district 
 92.2   court for use in each courtroom of the district court; 
 92.3      (e) one copy to each judge, district attorney, clerk of 
 92.4   court of the United States, and deputy clerk of each division of 
 92.5   the United States district court in Minnesota; 
 92.6      (f) 100 copies to the office of the attorney general; 
 92.7      (g) ten copies each to the governor's office, the 
 92.8   departments of agriculture, commerce, corrections, children, 
 92.9   families, and learning, finance, health, transportation, labor 
 92.10  and industry, economic security, natural resources, public 
 92.11  safety, public service, human services, revenue, and the 
 92.12  pollution control agency; 
 92.13     (h) two copies each to the lieutenant governor and the 
 92.14  state treasurer; 
 92.15     (i) 20 copies each to the department departments of 
 92.16  administration and commerce, state auditor, and legislative 
 92.17  auditor; 
 92.18     (j) one copy each to other state departments, agencies, 
 92.19  boards, and commissions not specifically named in this 
 92.20  subdivision; 
 92.21     (k) one copy to each member of the legislature; 
 92.22     (l) 150 copies for the use of the senate and 200 copies for 
 92.23  the use of the house of representatives; 
 92.24     (m) 50 copies to the revisor of statutes from which the 
 92.25  revisor shall send the appropriate number to the Library of 
 92.26  Congress for copyright and depository purposes; 
 92.27     (n) four copies to the secretary of the senate; 
 92.28     (o) four copies to the chief clerk of the house of 
 92.29  representatives; 
 92.30     (p) 100 copies to the state law library; 
 92.31     (q) 100 copies to the law school of the University of 
 92.32  Minnesota; 
 92.33     (r) five copies each to the Minnesota historical society 
 92.34  and the secretary of state; 
 92.35     (s) one copy each to the public library of the largest 
 92.36  municipality of each county if the library is not otherwise 
 93.1   eligible to receive a free copy under this section or section 
 93.2   15.18; and 
 93.3      (t) one copy to each county library maintained pursuant to 
 93.4   chapter 134, except in counties containing cities of the first 
 93.5   class.  If a county has not established a county library 
 93.6   pursuant to chapter 134, the copy shall be provided to any 
 93.7   public library in the county. 
 93.8      Sec. 3.  Minnesota Statutes 2000, section 13.679, is 
 93.9   amended to read: 
 93.10     13.679 [DEPARTMENT OF PUBLIC SERVICE DATA.] 
 93.11     Subdivision 1.  [TENANT.] Data collected by the department 
 93.12  of public service commissioner of commerce that reveals the 
 93.13  identity of a tenant who makes a complaint regarding energy 
 93.14  efficiency standards for rental housing are private data on 
 93.15  individuals.  
 93.16     Subd. 2.  [UTILITY OR TELEPHONE COMPANY EMPLOYEE OR 
 93.17  CUSTOMER.] (a) The following are private data on individuals:  
 93.18  data collected by the department of public service commissioner 
 93.19  of commerce or the public utilities commission, including the 
 93.20  names or any other data that would reveal the identity of either 
 93.21  an employee or customer of a telephone company or public utility 
 93.22  who files a complaint or provides information regarding a 
 93.23  violation or suspected violation by the telephone company or 
 93.24  public utility of any federal or state law or rule; except this 
 93.25  data may be released as needed to law enforcement authorities. 
 93.26     (b) The following are private data on individuals:  data 
 93.27  collected by the commission or the department of public service 
 93.28  commissioner of commerce on individual public utility or 
 93.29  telephone company customers or prospective customers, including 
 93.30  copies of tax forms, needed to administer federal or state 
 93.31  programs that provide relief from telephone company bills, 
 93.32  public utility bills, or cold weather disconnection.  The 
 93.33  determination of eligibility of the customers or prospective 
 93.34  customers may be released to public utilities or telephone 
 93.35  companies to administer the programs.  
 93.36     Sec. 4.  Minnesota Statutes 2000, section 15.01, is amended 
 94.1   to read: 
 94.2      15.01 [DEPARTMENTS OF THE STATE.] 
 94.3      The following agencies are designated as the departments of 
 94.4   the state government:  the department of administration; the 
 94.5   department of agriculture; the department of commerce; the 
 94.6   department of corrections; the department of children, families, 
 94.7   and learning; the department of economic security; the 
 94.8   department of trade and economic development; the department of 
 94.9   finance; the department of health; the department of human 
 94.10  rights; the department of labor and industry; the department of 
 94.11  military affairs; the department of natural resources; the 
 94.12  department of employee relations; the department of public 
 94.13  safety; the department of public service; the department of 
 94.14  human services; the department of revenue; the department of 
 94.15  transportation; the department of veterans affairs; and their 
 94.16  successor departments. 
 94.17     Sec. 5.  Minnesota Statutes 2000, section 15.06, 
 94.18  subdivision 1, is amended to read: 
 94.19     Subdivision 1.  [APPLICABILITY.] This section applies to 
 94.20  the following departments or agencies:  the departments of 
 94.21  administration, agriculture, commerce, corrections, economic 
 94.22  security, children, families, and learning, employee relations, 
 94.23  trade and economic development, finance, health, human rights, 
 94.24  labor and industry, natural resources, public safety, public 
 94.25  service, human services, revenue, transportation, and veterans 
 94.26  affairs; the housing finance and pollution control agencies; the 
 94.27  office of commissioner of iron range resources and 
 94.28  rehabilitation; the bureau of mediation services; and their 
 94.29  successor departments and agencies.  The heads of the foregoing 
 94.30  departments or agencies are "commissioners." 
 94.31     Sec. 6.  Minnesota Statutes 2000, section 15A.0815, 
 94.32  subdivision 2, is amended to read: 
 94.33     Subd. 2.  [GROUP I SALARY LIMITS.] The salaries for 
 94.34  positions in this subdivision may not exceed 95 percent of the 
 94.35  salary of the governor:  
 94.36     Commissioner of administration; 
 95.1      Commissioner of agriculture; 
 95.2      Commissioner of children, families, and learning; 
 95.3      Commissioner of commerce; 
 95.4      Commissioner of corrections; 
 95.5      Commissioner of economic security; 
 95.6      Commissioner of employee relations; 
 95.7      Commissioner of finance; 
 95.8      Commissioner of health; 
 95.9      Executive director, higher education services office; 
 95.10     Commissioner, housing finance agency; 
 95.11     Commissioner of human rights; 
 95.12     Commissioner of human services; 
 95.13     Executive director, state board of investment; 
 95.14     Commissioner of labor and industry; 
 95.15     Commissioner of natural resources; 
 95.16     Director of office of strategic and long-range planning; 
 95.17     Commissioner, pollution control agency; 
 95.18     Commissioner of public safety; 
 95.19     Commissioner, department of public service; 
 95.20     Commissioner of revenue; 
 95.21     Commissioner of trade and economic development; 
 95.22     Commissioner of transportation; and 
 95.23     Commissioner of veterans affairs. 
 95.24     Sec. 7.  Minnesota Statutes 2000, section 16B.32, 
 95.25  subdivision 2, is amended to read: 
 95.26     Subd. 2.  [ENERGY CONSERVATION GOALS; EFFICIENCY PROGRAM.] 
 95.27  (a) The commissioner of administration in consultation with 
 95.28  the department of public service commissioner of commerce, in 
 95.29  cooperation with one or more public utilities or comprehensive 
 95.30  energy services providers, may conduct a shared-savings program 
 95.31  involving energy conservation expenditures on state-owned 
 95.32  buildings.  The public utility or energy services provider shall 
 95.33  contract with appropriate state agencies to implement energy 
 95.34  efficiency improvements in the selected buildings.  A contract 
 95.35  must require the public utility or energy services provider to 
 95.36  include all energy efficiency improvements in selected buildings 
 96.1   that are calculated to achieve a cost payback within ten years.  
 96.2   The contract must require that the public utility or energy 
 96.3   services provider be repaid solely from energy cost savings and 
 96.4   only to the extent of energy cost savings.  Repayments must be 
 96.5   interest-free.  The goal of the program in this paragraph is to 
 96.6   demonstrate that through effective energy conservation the total 
 96.7   energy consumption per square foot of state-owned and wholly 
 96.8   state-leased buildings could be reduced by at least 25 percent 
 96.9   from consumption in the base year of 1990.  All agencies 
 96.10  participating in the program must report to the commissioner of 
 96.11  administration their monthly energy usage, building schedules, 
 96.12  inventory of energy-consuming equipment, and other information 
 96.13  as needed by the commissioner to manage and evaluate the program.
 96.14     (b) The commissioner may exclude from the program of 
 96.15  paragraph (a) a building in which energy conservation measures 
 96.16  are carried out.  "Energy conservation measures" means measures 
 96.17  that are applied to a state building that improve energy 
 96.18  efficiency and have a simple return of investment in ten years 
 96.19  or within the remaining period of a lease, whichever time is 
 96.20  shorter, and involves energy conservation, conservation 
 96.21  facilities, renewable energy sources, improvements in operations 
 96.22  and maintenance efficiencies, or retrofit activities. 
 96.23     (c) This subdivision expires January 1, 2001. 
 96.24     Sec. 8.  Minnesota Statutes 2000, section 16B.335, 
 96.25  subdivision 4, is amended to read: 
 96.26     Subd. 4.  [ENERGY CONSERVATION.] A recipient to whom a 
 96.27  direct appropriation is made for a capital improvement project 
 96.28  shall ensure that the project complies with the applicable 
 96.29  energy conservation standards contained in law, including 
 96.30  sections 216C.19 to 216C.20, and rules adopted thereunder.  The 
 96.31  recipient may use the energy planning and intervention and 
 96.32  energy technologies units of the department of public service to 
 96.33  obtain information and technical assistance from the state 
 96.34  energy office in the department of commerce on energy 
 96.35  conservation and alternative energy development relating to the 
 96.36  planning and construction of the capital improvement project. 
 97.1      Sec. 9.  Minnesota Statutes 2000, section 16B.56, 
 97.2   subdivision 1, is amended to read: 
 97.3      Subdivision 1.  [EMPLOYEE TRANSPORTATION PROGRAM.] (a) 
 97.4   [ESTABLISHMENT.] To conserve energy and alleviate traffic 
 97.5   congestion around state offices, the commissioner shall, in 
 97.6   cooperation with the commissioner of public service, the 
 97.7   commissioner of transportation, the state energy office in the 
 97.8   department of commerce, and interested nonprofit agencies, 
 97.9   establish and operate an employee transportation program using 
 97.10  commuter vans with a capacity of not less than seven nor more 
 97.11  than 16 passengers.  Commuter vans may be used by state 
 97.12  employees and others to travel between their homes and their 
 97.13  work locations.  However, only state employee drivers may use 
 97.14  the van for personal purposes after working hours, not including 
 97.15  partisan political activity.  The commissioner shall acquire or 
 97.16  lease commuter vans, or otherwise contract for the provision of 
 97.17  commuter vans, and shall make the vans available for the use of 
 97.18  state employees and others in accordance with standards and 
 97.19  procedures adopted by the commissioner.  The commissioner shall 
 97.20  promote the maximum participation of state employees and others 
 97.21  in the use of the vans.  
 97.22     (b) [ADMINISTRATIVE POLICIES.] The commissioner shall adopt 
 97.23  standards and procedures under this section without regard to 
 97.24  chapter 14.  The commissioner shall provide for the recovery by 
 97.25  the state of vehicle acquisition, lease, operation, and 
 97.26  insurance costs through efficient and convenient assignment of 
 97.27  vans, and for the billing of costs and collection of fees.  A 
 97.28  state employee using a van for personal use shall pay, pursuant 
 97.29  to the standards and procedures adopted by the commissioner, for 
 97.30  operating and routine maintenance costs incurred as a result of 
 97.31  the personal use.  Fees collected under this subdivision shall 
 97.32  be deposited in the accounts from which the costs of operating, 
 97.33  maintaining, and leasing or amortization for the specific 
 97.34  vehicle are paid.  
 97.35     Sec. 10.  Minnesota Statutes 2000, section 16B.76, 
 97.36  subdivision 1, is amended to read: 
 98.1      Subdivision 1.  [MEMBERSHIP.] (a) The construction codes 
 98.2   advisory council consists of the following members: 
 98.3      (1) the commissioner of administration or the 
 98.4   commissioner's designee representing the department's building 
 98.5   codes and standards division; 
 98.6      (2) the commissioner of health or the commissioner's 
 98.7   designee representing an environmental health section of the 
 98.8   department; 
 98.9      (3) the commissioner of public safety or the commissioner's 
 98.10  designee representing the department's state fire marshal 
 98.11  division; 
 98.12     (4) the commissioner of public service commerce or the 
 98.13  commissioner's designee representing the department's energy 
 98.14  regulation and resource management division state energy office; 
 98.15  and 
 98.16     (5) one member representing each of the following 
 98.17  occupations or entities, appointed by the commissioner of 
 98.18  administration: 
 98.19     (i) a certified building official; 
 98.20     (ii) a fire service representative; 
 98.21     (iii) a licensed architect; 
 98.22     (iv) a licensed engineer; 
 98.23     (v) a building owners and managers representative; 
 98.24     (vi) a licensed residential building contractor; 
 98.25     (vii) a commercial building contractor; 
 98.26     (viii) a heating and ventilation contractor; 
 98.27     (ix) a plumbing contractor; 
 98.28     (x) a representative of a construction and building trades 
 98.29  union; and 
 98.30     (xi) a local unit of government representative. 
 98.31     (b) For members who are not state officials or employees, 
 98.32  terms, compensation, removal, and the filling of vacancies are 
 98.33  governed by section 15.059.  The council shall select one of its 
 98.34  members to serve as chair. 
 98.35     (c) The council expires June 30, 2001. 
 98.36     Sec. 11.  Minnesota Statutes 2000, section 17.86, 
 99.1   subdivision 3, is amended to read: 
 99.2      Subd. 3.  [INFORMATION.] The University of Minnesota 
 99.3   extension service, in cooperation with the commissioners of 
 99.4   agriculture, children, families, and learning, natural 
 99.5   resources, and public service commerce, shall serve as the 
 99.6   principal agency for publishing and circulating information 
 99.7   derived from research under subdivision 2 among the various 
 99.8   municipalities and individual property owners in the state.  
 99.9   Where practical, the extension service and the state energy 
 99.10  office in the department of public service commerce shall secure 
 99.11  the advice and assistance of various energy utilities interested 
 99.12  and concerned with conservation.  The commissioner of 
 99.13  agriculture shall establish an information source for requests 
 99.14  for nursery stock, to match needs of municipalities with stocks 
 99.15  of trees available for planting from private and governmental 
 99.16  sources.  
 99.17     Sec. 12.  Minnesota Statutes 2000, section 18.024, 
 99.18  subdivision 1, is amended to read: 
 99.19     Subdivision 1.  [WOOD UTILIZATION.] The departments of 
 99.20  agriculture and natural resources, after consultation with the 
 99.21  Minnesota shade tree advisory committee and the commissioner of 
 99.22  public service state energy office in the department of 
 99.23  commerce, shall investigate, evaluate, and make recommendations 
 99.24  to the legislature concerning the potential uses of wood from 
 99.25  community trees removed due to disease or other disorders.  
 99.26  These recommendations shall include maximum resource recovery 
 99.27  through recycling, use as an alternative energy source, or use 
 99.28  in construction or the manufacture of new products.  Wood 
 99.29  utilization or disposal systems as defined in section 18.023 
 99.30  must be included to ensure maximum utilization of diseased shade 
 99.31  trees with designs and procedures to ensure public safety and to 
 99.32  assure compliance with approved disease control programs. 
 99.33     Sec. 13.  Minnesota Statutes 2000, section 43A.08, 
 99.34  subdivision 1a, is amended to read: 
 99.35     Subd. 1a.  [ADDITIONAL UNCLASSIFIED POSITIONS.] Appointing 
 99.36  authorities for the following agencies may designate additional 
100.1   unclassified positions according to this subdivision:  the 
100.2   departments of administration; agriculture; commerce; 
100.3   corrections; economic security; children, families, and 
100.4   learning; employee relations; trade and economic development; 
100.5   finance; health; human rights; labor and industry; natural 
100.6   resources; public safety; public service; human services; 
100.7   revenue; transportation; and veterans affairs; the housing 
100.8   finance and pollution control agencies; the state lottery; the 
100.9   state board of investment; the office of administrative 
100.10  hearings; the office of environmental assistance; the offices of 
100.11  the attorney general, secretary of state, state auditor, and 
100.12  state treasurer; the Minnesota state colleges and universities; 
100.13  the higher education services office; the Perpich center for 
100.14  arts education; and the Minnesota zoological board. 
100.15     A position designated by an appointing authority according 
100.16  to this subdivision must meet the following standards and 
100.17  criteria:  
100.18     (1) the designation of the position would not be contrary 
100.19  to other law relating specifically to that agency; 
100.20     (2) the person occupying the position would report directly 
100.21  to the agency head or deputy agency head and would be designated 
100.22  as part of the agency head's management team; 
100.23     (3) the duties of the position would involve significant 
100.24  discretion and substantial involvement in the development, 
100.25  interpretation, and implementation of agency policy; 
100.26     (4) the duties of the position would not require primarily 
100.27  personnel, accounting, or other technical expertise where 
100.28  continuity in the position would be important; 
100.29     (5) there would be a need for the person occupying the 
100.30  position to be accountable to, loyal to, and compatible with, 
100.31  the governor and the agency head, the employing statutory board 
100.32  or commission, or the employing constitutional officer; 
100.33     (6) the position would be at the level of division or 
100.34  bureau director or assistant to the agency head; and 
100.35     (7) the commissioner has approved the designation as being 
100.36  consistent with the standards and criteria in this subdivision. 
101.1      Sec. 14.  Minnesota Statutes 2000, section 45.012, is 
101.2   amended to read: 
101.3      45.012 [COMMISSIONER.] 
101.4      (a) The department of commerce is under the supervision and 
101.5   control of the commissioner of commerce.  The commissioner is 
101.6   appointed by the governor in the manner provided by section 
101.7   15.06.  
101.8      (b) Data that is received by the commissioner or the 
101.9   commissioner's designee by virtue of membership or participation 
101.10  in an association, group, or organization that is not otherwise 
101.11  subject to chapter 13 is confidential or protected nonpublic 
101.12  data but may be shared with the department employees as the 
101.13  commissioner considers appropriate.  The commissioner may 
101.14  release the data to any person, agency, or the public if the 
101.15  commissioner determines that the access will aid the law 
101.16  enforcement process, promote public health or safety, or dispel 
101.17  widespread rumor or unrest.  
101.18     (c) It is part of the department's mission that within the 
101.19  department's resources the commissioner shall endeavor to: 
101.20     (1) prevent the waste or unnecessary spending of public 
101.21  money; 
101.22     (2) use innovative fiscal and human resource practices to 
101.23  manage the state's resources and operate the department as 
101.24  efficiently as possible; 
101.25     (3) coordinate the department's activities wherever 
101.26  appropriate with the activities of other governmental agencies; 
101.27     (4) use technology where appropriate to increase agency 
101.28  productivity, improve customer service, increase public access 
101.29  to information about government, and increase public 
101.30  participation in the business of government; 
101.31     (5) utilize constructive and cooperative labor-management 
101.32  practices to the extent otherwise required by chapters 43A and 
101.33  179A; 
101.34     (6) report to the legislature on the performance of agency 
101.35  operations and the accomplishment of agency goals in the 
101.36  agency's biennial budget according to section 16A.10, 
102.1   subdivision 1; and 
102.2      (7) recommend to the legislature appropriate changes in law 
102.3   necessary to carry out the mission and improve the performance 
102.4   of the department. 
102.5      (d) The commissioner also has all the powers and 
102.6   responsibilities and shall perform all the duties previously 
102.7   assigned to the commissioner of public service and the 
102.8   department of public service under chapters 216, 216A, 216B, 
102.9   216C, 237, 238, 239, and other statutes prior to the date of 
102.10  final enactment of this act, except in the case where those 
102.11  powers, responsibilities, or duties have been specifically 
102.12  otherwise assigned by law. 
102.13     Sec. 15.  Minnesota Statutes 2000, section 103F.325, 
102.14  subdivision 2, is amended to read: 
102.15     Subd. 2.  [REVIEW AND HEARING.] (a) The commissioner shall 
102.16  make the proposed management plan available to affected local 
102.17  governmental bodies, shoreland owners, conservation and outdoor 
102.18  recreation groups, the commissioner of trade and economic 
102.19  development, the commissioner of public service commerce, the 
102.20  governor, and the general public.  The commissioners of trade 
102.21  and economic development and of public service, the state energy 
102.22  office in the department of commerce, and the governor shall 
102.23  review the proposed management plan in accordance with the 
102.24  criteria in section 86A.09, subdivision 3, and submit any 
102.25  written comments to the commissioner within 60 days after 
102.26  receipt of the proposed management plan.  
102.27     (b) By 60 days after making the information available, the 
102.28  commissioner shall conduct a public hearing on the proposed 
102.29  management plan in the county seat of each county that contains 
102.30  a portion of the designated system area, in the manner provided 
102.31  in chapter 14.  
102.32     Sec. 16.  Minnesota Statutes 2000, section 103F.325, 
102.33  subdivision 3, is amended to read: 
102.34     Subd. 3.  [POST HEARING REVIEW.] Upon receipt of the 
102.35  administrative law judge's report, the commissioner shall 
102.36  immediately forward the proposed management plan and the 
103.1   administrative law judge's report to the commissioners of trade 
103.2   and economic development and of public service commerce for 
103.3   review under section 86A.09, subdivision 3, except that the 
103.4   review by the commissioners must be completed or be deemed 
103.5   completed within 30 days after receiving the administrative law 
103.6   judge's report, and the review by the governor must be completed 
103.7   or be deemed completed within 15 days after receipt.  
103.8      Sec. 17.  Minnesota Statutes 2000, section 115A.15, 
103.9   subdivision 5, is amended to read: 
103.10     Subd. 5.  [REPORTS.] (a) By January 1 of each odd-numbered 
103.11  year, the commissioner of administration shall submit a report 
103.12  to the governor and to the environment and natural resources 
103.13  committees of the senate and house of representatives, the 
103.14  finance division of the senate committee on environment and 
103.15  natural resources, and the house of representatives committee on 
103.16  environment and natural resources finance summarizing past 
103.17  activities and proposed goals of the program for the following 
103.18  biennium.  The report shall include at least: 
103.19     (1) a summary list of product and commodity purchases that 
103.20  contain recycled materials; 
103.21     (2) the results of any performance tests conducted on 
103.22  recycled products and agencies' experience with recycled 
103.23  products used; 
103.24     (3) a list of all organizations participating in and using 
103.25  the cooperative purchasing program; and 
103.26     (4) a list of products and commodities purchased for their 
103.27  recyclability and of recycled products reviewed for purchase. 
103.28     (b) By July 1 of each even-numbered year, the director of 
103.29  the office of environmental assistance and the commissioner of 
103.30  public service commerce through the state energy office shall 
103.31  submit recommendations to the commissioner regarding the 
103.32  operation of the program. 
103.33     Sec. 18.  Minnesota Statutes 2000, section 116O.06, 
103.34  subdivision 2, is amended to read: 
103.35     Subd. 2.  [EQUITY INVESTMENTS.] The corporation may acquire 
103.36  an interest in a product or a private business entity, except 
104.1   that the corporation may not acquire an interest in a business 
104.2   entity engaged in a trade or industry whose profits are directly 
104.3   regulated by the commissioner of commerce or the department of 
104.4   public service public utilities commission.  The corporation may 
104.5   enter into joint venture agreements with other private 
104.6   corporations to promote economic development and job creation.  
104.7      Sec. 19.  Minnesota Statutes 2000, section 123B.65, 
104.8   subdivision 1, is amended to read: 
104.9      Subdivision 1.  [DEFINITIONS.] The definitions in this 
104.10  subdivision apply to this section. 
104.11     (a) "Energy conservation measure" means a training program 
104.12  or facility alteration designed to reduce energy consumption or 
104.13  operating costs and includes: 
104.14     (1) insulation of the building structure and systems within 
104.15  the building; 
104.16     (2) storm windows and doors, caulking or weatherstripping, 
104.17  multiglazed windows and doors, heat absorbing or heat reflective 
104.18  glazed and coated window and door systems, additional glazing, 
104.19  reductions in glass area, and other window and door system 
104.20  modifications that reduce energy consumption; 
104.21     (3) automatic energy control systems; 
104.22     (4) heating, ventilating, or air conditioning system 
104.23  modifications or replacements; 
104.24     (5) replacement or modifications of lighting fixtures to 
104.25  increase the energy efficiency of the lighting system without 
104.26  increasing the overall illumination of a facility, unless such 
104.27  increase in illumination is necessary to conform to the 
104.28  applicable state or local building code for the lighting system 
104.29  after the proposed modifications are made; 
104.30     (6) energy recovery systems; 
104.31     (7) cogeneration systems that produce steam or forms of 
104.32  energy such as heat, as well as electricity, for use primarily 
104.33  within a building or complex of buildings; 
104.34     (8) energy conservation measures that provide long-term 
104.35  operating cost reductions.  
104.36     (b) "Guaranteed energy savings contract" means a contract 
105.1   for the evaluation and recommendations of energy conservation 
105.2   measures, and for one or more energy conservation measures.  The 
105.3   contract must provide that all payments, except obligations on 
105.4   termination of the contract before its expiration, are to be 
105.5   made over time, but not to exceed 15 years from the date of 
105.6   final installation, and the savings are guaranteed to the extent 
105.7   necessary to make payments for the systems. 
105.8      (c) "Qualified provider" means a person or business 
105.9   experienced in the design, implementation, and installation of 
105.10  energy conservation measures.  A qualified provider to whom the 
105.11  contract is awarded shall give a sufficient bond to the school 
105.12  district for its faithful performance. 
105.13     (d) "Commissioner" means the commissioner of public service 
105.14  commerce through the state energy office. 
105.15     Sec. 20.  Minnesota Statutes 2000, section 123B.65, 
105.16  subdivision 3, is amended to read: 
105.17     Subd. 3.  [EVALUATION BY COMMISSIONER.] Upon request of the 
105.18  board, the commissioner of public service shall review the 
105.19  report required in subdivision 2 and provide an evaluation to 
105.20  the board on the proposed contract within 15 working days of 
105.21  receiving the report.  In evaluating the proposed contract, the 
105.22  commissioner shall determine whether the detailed calculations 
105.23  of the costs and of the energy and operating savings are 
105.24  accurate and reasonable.  The commissioner may request 
105.25  additional information about a proposed contract as the 
105.26  commissioner deems necessary.  If the commissioner requests 
105.27  additional information, the commissioner shall not be required 
105.28  to submit an evaluation to the board within fewer than ten 
105.29  working days of receiving the requested information.  
105.30     Sec. 21.  Minnesota Statutes 2000, section 123B.65, 
105.31  subdivision 5, is amended to read: 
105.32     Subd. 5.  [PAYMENT OF REVIEW EXPENSES.] The commissioner of 
105.33  public service may charge a district requesting services under 
105.34  subdivisions 3 and 4 actual costs incurred by the department 
105.35  of public service commerce while conducting the review, or 
105.36  one-half percent of the total identified project cost, whichever 
106.1   is less.  Before conducting the review, the commissioner shall 
106.2   notify a district requesting review services that expenses will 
106.3   be charged to the district.  The commissioner shall bill the 
106.4   district upon completion of the contract review.  Money 
106.5   collected by the commissioner under this subdivision must be 
106.6   deposited in the general fund.  A district may include the cost 
106.7   of a review by the commissioner under subdivision 3 in a 
106.8   contract made pursuant to this section. 
106.9      Sec. 22.  Minnesota Statutes 2000, section 161.45, 
106.10  subdivision 1, is amended to read: 
106.11     Subdivision 1.  [RULES.] Electric transmission, telephone 
106.12  or telegraph lines, pole lines, community antenna television 
106.13  lines, railways, ditches, sewers, water, heat or gas mains, gas 
106.14  and other pipe lines, flumes, or other structures which, under 
106.15  the laws of this state or the ordinance of any city, may be 
106.16  constructed, placed, or maintained across or along any trunk 
106.17  highway, or the roadway thereof, by any person, persons, 
106.18  corporation, or any subdivision of the state, may be so 
106.19  maintained or hereafter constructed only in accordance with such 
106.20  rules as may be prescribed by the commissioner who shall have 
106.21  power to prescribe and enforce reasonable rules with reference 
106.22  to the placing and maintaining along, across, or in any such 
106.23  trunk highway of any of the utilities hereinbefore set forth.  
106.24  Nothing herein shall restrict the actions of public authorities 
106.25  in extraordinary emergencies nor restrict the power and 
106.26  authority of the department of public service commissioner of 
106.27  commerce as provided for in other provisions of law.  Provided, 
106.28  however, that in the event any local subdivision of government 
106.29  has enacted ordinances relating to the method of installation or 
106.30  requiring underground installation of such community antenna 
106.31  television lines, the permit granted by the commissioner of 
106.32  transportation shall require compliance with such local 
106.33  ordinance. 
106.34     Sec. 23.  Minnesota Statutes 2000, section 168.61, 
106.35  subdivision 1, is amended to read: 
106.36     Subdivision 1.  [DEFINITION.] The term "intercity bus" as 
107.1   used in sections 168.61 to 168.65 means a motor bus as defined 
107.2   in section 168.011, subdivision 9, which is owned or operated by 
107.3   either a resident or nonresident of Minnesota in interstate 
107.4   commerce under authority of the Interstate Commerce Commission 
107.5   or in combined interstate and intrastate commerce under 
107.6   authority of the Interstate Commerce Commission and the 
107.7   department of public service transportation of Minnesota, as a 
107.8   result of which operation such bus operates both within and 
107.9   without the territorial limits of the state of Minnesota.  
107.10     Sec. 24.  Minnesota Statutes 2000, section 169.073, is 
107.11  amended to read: 
107.12     169.073 [PROHIBITED LIGHT OR SIGNAL.] 
107.13     (a) No person or corporation shall place, maintain or 
107.14  display any red light or red sign, signal, or lighting device or 
107.15  maintain it in view of any highway or any line of railroad on or 
107.16  over which trains are operated in such a way as to interfere 
107.17  with the effectiveness or efficiency of any highway 
107.18  traffic-control device or signals or devices used in the 
107.19  operation of a railroad.  Upon written notice from the 
107.20  commissioner of transportation, a person or corporation 
107.21  maintaining or owning or displaying a prohibited light shall 
107.22  promptly remove it, or change the color of it to some other 
107.23  color than red.  Where a prohibited light or sign interferes 
107.24  with the effectiveness or efficiency of the signals or devices 
107.25  used in the operation of a railroad, the department of public 
107.26  service transportation may cause the removal of it and the 
107.27  department may issue notices and orders for its removal.  The 
107.28  department shall proceed as provided in sections 216.13, 216.14, 
107.29  216.15, 216.16, and 216.17, with a right of appeal to the 
107.30  aggrieved party in accordance with chapter 14. 
107.31     (b) No person or corporation shall maintain or display any 
107.32  light after written notice from the commissioner of 
107.33  transportation or the department of public service that the 
107.34  light constitutes a traffic hazard and that it has ordered the 
107.35  removal thereof. 
107.36     Sec. 25.  Minnesota Statutes 2000, section 174.03, 
108.1   subdivision 7, is amended to read: 
108.2      Subd. 7.  [ENERGY CONSERVATION.] The commissioner, in 
108.3   cooperation with the commissioner of public service commerce 
108.4   through the state energy office, shall evaluate all modes of 
108.5   transportation in terms of their levels of energy consumption.  
108.6   The commissioner of public service commerce shall provide the 
108.7   commissioner with projections of the future availability of 
108.8   energy resources for transportation.  The commissioner shall use 
108.9   the results of this evaluation and the projections to evaluate 
108.10  alternative programs and facilities to be included in the 
108.11  statewide plan and to otherwise promote the more efficient use 
108.12  of energy resources for transportation purposes. 
108.13     Sec. 26.  Minnesota Statutes 2000, section 181.30, is 
108.14  amended to read: 
108.15     181.30 [DUTY OF DEPARTMENT OF PUBLIC SERVICE.] 
108.16     Any officer of any railroad company in the state violating 
108.17  any of the provisions of section 181.29 shall be guilty of a 
108.18  misdemeanor; and, upon conviction, punished by a fine of not 
108.19  less than $100, and not more than $700, for each offense, or by 
108.20  imprisonment in the county jail not more than 60 days, or both 
108.21  fine and imprisonment, at the discretion of the court.  It shall 
108.22  be the duty of the state department of public 
108.23  service transportation, upon complaint properly filed with it 
108.24  alleging a violation of section 181.29, to make a full 
108.25  investigation in relation thereto, and for such purpose it shall 
108.26  have the power to administer oaths, interrogate witnesses, take 
108.27  testimony and require the production of books and papers, and if 
108.28  such report shall show a violation of the provisions of section 
108.29  181.29, the department of public service transportation shall, 
108.30  through the attorney general, begin the prosecution of all 
108.31  parties against whom evidence of such violation is found; but 
108.32  section 181.29 shall not be construed to prevent any other 
108.33  person from beginning prosecution for the violation of the 
108.34  provisions thereof.  
108.35     Sec. 27.  Minnesota Statutes 2000, section 216A.01, is 
108.36  amended to read: 
109.1      216A.01 [ESTABLISHMENT OF DEPARTMENT AND COMMISSION; POWERS 
109.2   AND DUTIES.] 
109.3      There are hereby created and established the department of 
109.4   public service, and the public utilities commission.  The 
109.5   department of public service commerce shall have and possess all 
109.6   of the rights and powers and perform all of the duties vested in 
109.7   it by this chapter.  The public utilities commission shall have 
109.8   and possess all of the rights and powers and perform all of the 
109.9   duties vested in it by this chapter, and those formerly vested 
109.10  by law in the railroad and warehouse commission. 
109.11     Sec. 28.  Minnesota Statutes 2000, section 216A.035, is 
109.12  amended to read: 
109.13     216A.035 [CONFLICT OF INTEREST.] 
109.14     (a) No person, while a member of the public utilities 
109.15  commission, while acting as executive secretary of the 
109.16  commission, or while employed in a professional capacity by the 
109.17  commission, shall receive any income, other than dividends or 
109.18  other earnings from a mutual fund or trust if these earnings do 
109.19  not constitute a significant portion of the person's income, 
109.20  directly or indirectly from any public utility or other 
109.21  organization subject to regulation by the commission. 
109.22     (b) No person is eligible to be appointed as a member of 
109.23  the commission if the person has been employed with an entity, 
109.24  or an affiliated company of an entity, that is subject to rate 
109.25  regulation by the commission within one year from the date when 
109.26  the person's term on the commission will begin. 
109.27     (c) No person who is an employee of the public service 
109.28  department of commerce shall participate in any manner in any 
109.29  decision or action of the commission where that person has a 
109.30  direct or indirect financial interest.  Each commissioner or 
109.31  employee of the public service department who is in the general 
109.32  professional, supervisory, or technical units established in 
109.33  section 179A.10 or who is a professional, supervisory, or 
109.34  technical employee defined as confidential in section 179A.03, 
109.35  subdivision 4, or who is a management classification employee 
109.36  and whose duties are related to public utilities or 
110.1   transportation utility, telephone company, or telecommunications 
110.2   company regulation shall report to the campaign finance and 
110.3   public disclosure board annually before April 15 any interest in 
110.4   an industry or business regulated by the commission.  Each 
110.5   commissioner shall file a statement of economic interest as 
110.6   required by section 10A.09 with the campaign finance and public 
110.7   disclosure board and the public utilities commission before 
110.8   taking office.  The statement of economic interest must state 
110.9   any interest that the commissioner has in an industry or 
110.10  business regulated by the commission. 
110.11     (d) A professional employee of the commission or department 
110.12  must immediately disclose to the commission or to the 
110.13  commissioner of the department, respectively, any communication, 
110.14  direct or indirect, with a person who is a party to a pending 
110.15  proceeding before the commission regarding future benefits, 
110.16  compensation, or employment to be received from that person. 
110.17     Sec. 29.  Minnesota Statutes 2000, section 216A.036, is 
110.18  amended to read: 
110.19     216A.036 [EMPLOYMENT RESTRICTIONS.] 
110.20     (a) A person who serves as (1) a commissioner of the public 
110.21  utilities commission, (2) commissioner of the department of 
110.22  public service commerce, or (3) deputy commissioner of the 
110.23  department commerce, shall not, while employed with or within 
110.24  one year after leaving the commission, or department, accept 
110.25  employment with, receive compensation directly or indirectly 
110.26  from, or enter into a contractual relationship with an entity, 
110.27  or an affiliated company of an entity, that is subject to rate 
110.28  regulation by the commission. 
110.29     (b) An entity or an affiliated company of an entity that is 
110.30  subject to rate regulation by the commission, or a person acting 
110.31  on behalf of the entity, shall not negotiate or offer to employ 
110.32  or compensate a commissioner of the public utilities commission, 
110.33  the commissioner of public service commerce, or the deputy 
110.34  commissioner of commerce, while the person is so employed or 
110.35  within one year after the person leaves that employment. 
110.36     (c) For the purposes of this section, "affiliated company" 
111.1   means a company that controls, is controlled by, or is under 
111.2   common control with an entity subject to rate regulation by the 
111.3   commission. 
111.4      (d) A person who violates this section is subject to a 
111.5   civil penalty not to exceed $10,000 for each violation.  The 
111.6   attorney general may bring an action in district court to 
111.7   collect the penalties provided in this section.  
111.8      Sec. 30.  Minnesota Statutes 2000, section 216A.05, 
111.9   subdivision 1, is amended to read: 
111.10     Subdivision 1.  [LEGISLATIVE AND QUASI-JUDICIAL FUNCTIONS.] 
111.11  The functions of the commission shall be legislative and 
111.12  quasi-judicial in nature.  It may make such investigations and 
111.13  determinations, hold such hearings, prescribe such rules and 
111.14  issue such orders with respect to the control and conduct of the 
111.15  businesses coming within its jurisdiction as the legislature 
111.16  itself might make but only as it shall from time to time 
111.17  authorize.  It may adjudicate all proceedings brought before it 
111.18  in which the violation of any law or rule administered by the 
111.19  department of commerce is alleged. 
111.20     Sec. 31.  Minnesota Statutes 2000, section 216A.07, 
111.21  subdivision 1, is amended to read: 
111.22     Subdivision 1.  [ADMINISTRATIVE COMMISSIONER DUTIES.] The 
111.23  commissioner shall be the executive and administrative head of 
111.24  the public service department and shall have and possess of 
111.25  commerce has all the rights and powers and shall perform all the 
111.26  duties relating to the administrative function of the department 
111.27  as set forth in this chapter.  The commissioner may: 
111.28     (1) prepare all forms or blanks for the purpose of 
111.29  obtaining information which the commissioner may deem necessary 
111.30  or useful in the proper exercise of the authority and duties of 
111.31  the commissioner in connection with regulated businesses; 
111.32     (2) prescribe the time and manner within which forms or 
111.33  blanks shall be filed with the department; 
111.34     (3) inspect at all reasonable times, and copy the books, 
111.35  records, memoranda and correspondence or other documents and 
111.36  records of any person relating to any regulated business; and 
112.1      (4) cause the deposition to be taken of any person 
112.2   concerning the business and affairs of any business regulated by 
112.3   the department.  Information sought through said deposition 
112.4   shall be for a lawfully authorized purpose and shall be relevant 
112.5   and material to the investigation or hearing before the 
112.6   commission.  Information obtained from said deposition shall be 
112.7   used by the department only for a lawfully authorized purpose 
112.8   and pursuant to powers and responsibilities conferred upon the 
112.9   department.  Said deposition is to be taken in the manner 
112.10  prescribed by law for taking depositions in civil actions in the 
112.11  district court. 
112.12     Sec. 32.  Minnesota Statutes 2000, section 216A.08, is 
112.13  amended to read: 
112.14     216A.08 [CONTINUATION OF RULES OF PUBLIC SERVICE 
112.15  DEPARTMENT.] 
112.16     All valid rules, orders, and directives heretofore 
112.17  enforced, issued, or promulgated by the public service 
112.18  department under authority of chapter 216, 216A, 216B, 216C, 
112.19  218, 219, 221, or 222, 237, 238, or 239 shall remain and 
112.20  continue in force and effect until repealed, modified, or 
112.21  superseded by duly authorized rules, orders, or directives of 
112.22  the public utilities commission or, the commissioner of 
112.23  transportation, or the commissioner of commerce. 
112.24     Sec. 33.  Minnesota Statutes 2000, section 216A.085, 
112.25  subdivision 3, is amended to read: 
112.26     Subd. 3.  [STAFFING.] The intervention office shall be 
112.27  under the control and supervision of the commissioner of the 
112.28  department of public service commerce.  The commissioner may 
112.29  hire staff or contract for outside services as needed to carry 
112.30  out the purposes of this section.  The attorney general shall 
112.31  act as counsel in all intervention proceedings.  
112.32     Sec. 34.  Minnesota Statutes 2000, section 216B.02, 
112.33  subdivision 1, is amended to read: 
112.34     Subdivision 1.  [SCOPE.] For the purposes of Laws 1974, 
112.35  chapter 429 this chapter the terms defined in this section have 
112.36  the meanings given them. 
113.1      Sec. 35.  Minnesota Statutes 2000, section 216B.02, 
113.2   subdivision 7, is amended to read: 
113.3      Subd. 7.  [COMMISSION.] "Commission" means the public 
113.4   utilities commission of the department of public service. 
113.5      Sec. 36.  Minnesota Statutes 2000, section 216B.02, 
113.6   subdivision 8, is amended to read: 
113.7      Subd. 8.  [DEPARTMENT.] "Department" means the department 
113.8   of public service commerce of the state of Minnesota. 
113.9      Sec. 37.  Minnesota Statutes 2000, section 216B.16, 
113.10  subdivision 1, is amended to read: 
113.11     Subdivision 1.  [NOTICE.] Unless the commission otherwise 
113.12  orders, no public utility shall change a rate which has been 
113.13  duly established under this chapter, except upon 60 days' notice 
113.14  to the commission.  The notice shall include statements of 
113.15  facts, expert opinions, substantiating documents, and exhibits, 
113.16  supporting the change requested, and state the change proposed 
113.17  to be made in the rates then in force and the time when the 
113.18  modified rates will go into effect.  If the filing utility does 
113.19  not have an approved conservation improvement plan on file with 
113.20  the department of public service, it shall also include in its 
113.21  notice an energy conservation plan pursuant to section 
113.22  216B.241.  The filing utility shall give written notice, as 
113.23  approved by the commission, of the proposed change to the 
113.24  governing body of each municipality and county in the area 
113.25  affected.  All proposed changes shall be shown by filing new 
113.26  schedules or shall be plainly indicated upon schedules on file 
113.27  and in force at the time. 
113.28     Sec. 38.  Minnesota Statutes 2000, section 216B.16, 
113.29  subdivision 2, is amended to read: 
113.30     Subd. 2.  [SUSPENSION OF PROPOSED RATE; HEARING; FINAL 
113.31  DETERMINATION DEFINED.] (a) Whenever there is filed with the 
113.32  commission a schedule modifying or resulting in a change in any 
113.33  rates then in force as provided in subdivision 1, the commission 
113.34  may suspend the operation of the schedule by filing with the 
113.35  schedule of rates and delivering to the affected utility a 
113.36  statement in writing of its reasons for the suspension at any 
114.1   time before the rates become effective.  The suspension shall 
114.2   not be for a longer period than ten months beyond the initial 
114.3   filing date except as provided in this subdivision or 
114.4   subdivision 1a.  
114.5      (b) During the suspension the commission shall determine 
114.6   whether all questions of the reasonableness of the rates 
114.7   requested raised by persons deemed interested or by the 
114.8   administrative division of the department of public service can 
114.9   be resolved to the satisfaction of the commission.  If the 
114.10  commission finds that all significant issues raised have not 
114.11  been resolved to its satisfaction, or upon petition by ten 
114.12  percent of the affected customers or 250 affected customers, 
114.13  whichever is less, it shall refer the matter to the office of 
114.14  administrative hearings with instructions for a public hearing 
114.15  as a contested case pursuant to chapter 14, except as otherwise 
114.16  provided in this section. 
114.17     (c) The commission may order that the issues presented by 
114.18  the proposed rate changes be bifurcated into two separate 
114.19  hearings as follows:  (1) determination of the utility's revenue 
114.20  requirements and (2) determination of the rate design.  Upon 
114.21  issuance of both administrative law judge reports, the issues 
114.22  shall again be joined for consideration and final determination 
114.23  by the commission. 
114.24     (d) All prehearing discovery activities of state agency 
114.25  intervenors shall be consolidated and conducted by the 
114.26  department of public service commerce. 
114.27     (e) If the commission does not make a final determination 
114.28  concerning a schedule of rates within ten months after the 
114.29  initial filing date, the schedule shall be deemed to have been 
114.30  approved by the commission; except if: 
114.31     (1) an extension of the procedural schedule has been 
114.32  granted under subdivision 1a, in which case the schedule of 
114.33  rates is deemed to have been approved by the commission on the 
114.34  last day of the extended period of suspension; or 
114.35     (2) a settlement has been submitted to and rejected by the 
114.36  commission and the commission does not make a final 
115.1   determination concerning the schedule of rates, the schedule of 
115.2   rates is deemed to have been approved 60 days after the initial 
115.3   or, if applicable, the extended period of suspension. 
115.4      (f) If the commission finds that it has insufficient time 
115.5   during the suspension period to make a final determination of a 
115.6   case involving changes in general rates because of the need to 
115.7   make a final determination of another previously filed case 
115.8   involving changes in general rates under this section or section 
115.9   237.075, the commission may extend the suspension period to the 
115.10  extent necessary to allow itself 20 working days to make the 
115.11  final determination after it has made a final determination in 
115.12  the previously filed case.  An extension of the suspension 
115.13  period under this paragraph does not alter the setting of 
115.14  interim rates under subdivision 3. 
115.15     (g) For the purposes of this section, "final determination" 
115.16  means the initial decision of the commission and not any order 
115.17  which may be entered by the commission in response to a petition 
115.18  for rehearing or other further relief.  The commission may 
115.19  further suspend rates until it determines all those petitions. 
115.20     Sec. 39.  Minnesota Statutes 2000, section 216B.16, 
115.21  subdivision 6b, is amended to read: 
115.22     Subd. 6b.  [ENERGY CONSERVATION IMPROVEMENT.] (a) Except as 
115.23  otherwise provided in this subdivision, all investments and 
115.24  expenses of a public utility as defined in section 216B.241, 
115.25  subdivision 1, paragraph (e), incurred in connection with energy 
115.26  conservation improvements shall be recognized and included by 
115.27  the commission in the determination of just and reasonable rates 
115.28  as if the investments and expenses were directly made or 
115.29  incurred by the utility in furnishing utility service. 
115.30     (b) After December 31, 1999, investments and expenses for 
115.31  energy conservation improvements shall not be included by the 
115.32  commission in the determination of just and reasonable electric 
115.33  and gas rates for retail electric and gas service provided to 
115.34  large electric customer facilities that have been exempted by 
115.35  the commissioner of the department of public service pursuant to 
115.36  section 216B.241, subdivision 1a, paragraph (b).  However, no 
116.1   public utility shall be prevented from recovering its investment 
116.2   in energy conservation improvements from all customers that were 
116.3   made on or before December 31, 1999, in compliance with the 
116.4   requirements of section 216B.241.  
116.5      (c) The commission may permit a public utility to file rate 
116.6   schedules providing for annual recovery of the costs of energy 
116.7   conservation improvements.  These rate schedules may be 
116.8   applicable to less than all the customers in a class of retail 
116.9   customers if necessary to reflect the differing minimum spending 
116.10  requirements of section 216B.241, subdivision 1a.  After 
116.11  December 31, 1999, the commission shall allow a public utility, 
116.12  without requiring a general rate filing under this section, to 
116.13  reduce the electric and gas rates applicable to large electric 
116.14  customer facilities that have been exempted by the commissioner 
116.15  of the department of public service pursuant to section 
116.16  216B.241, subdivision 1a, paragraph (b), by an amount that 
116.17  reflects the elimination of energy conservation improvement 
116.18  investments or expenditures for those facilities required on or 
116.19  before December 31, 1999.  In the event that the commission has 
116.20  set electric or gas rates based on the use of an accounting 
116.21  methodology that results in the cost of conservation 
116.22  improvements being recovered from utility customers over a 
116.23  period of years, the rate reduction may occur in a series of 
116.24  steps to coincide with the recovery of balances due to the 
116.25  utility for conservation improvements made by the utility on or 
116.26  before December 31, 1999.  
116.27     Sec. 40.  Minnesota Statutes 2000, section 216B.16, 
116.28  subdivision 15, is amended to read: 
116.29     Subd. 15.  [LOW-INCOME RATE PROGRAMS; REPORT.] (a) The 
116.30  commission may consider ability to pay as a factor in setting 
116.31  utility rates and may establish programs for low-income 
116.32  residential ratepayers in order to ensure affordable, reliable, 
116.33  and continuous service to low-income utility customers.  The 
116.34  commission shall order a pilot program for at least one 
116.35  utility.  In ordering pilot programs, the commission shall 
116.36  consider the following: 
117.1      (1) the potential for low-income programs to provide 
117.2   savings to the utility for all collection costs including but 
117.3   not limited to:  costs of disconnecting and reconnecting 
117.4   residential ratepayers' service, all activities related to the 
117.5   utilities' attempt to collect past due bills, utility working 
117.6   capital costs, and any other administrative costs related to 
117.7   inability to pay programs and initiatives; 
117.8      (2) the potential for leveraging federal low-income energy 
117.9   dollars to the state; and 
117.10     (3) the impact of energy costs as a percentage of the total 
117.11  income of a low-income residential customer. 
117.12     (b) In determining the structure of the pilot utility 
117.13  program, the commission shall: 
117.14     (1) consult with advocates for and representatives of 
117.15  low-income utility customers, administrators of energy 
117.16  assistance and conservation programs, and utility 
117.17  representatives; 
117.18     (2) coordinate eligibility for the program with the state 
117.19  and federal energy assistance program and low-income residential 
117.20  energy programs, including weatherization programs; and 
117.21     (3) evaluate comprehensive low-income programs offered by 
117.22  utilities in other states. 
117.23     (c) The commission shall implement at least one pilot 
117.24  project by January 1, 1995, and shall allow a utility required 
117.25  to implement a pilot project to recover the net costs of the 
117.26  project in the utility's rates. 
117.27     (d) The commission, in conjunction with the commissioner of 
117.28  the department of public service and the commissioner of 
117.29  economic security, shall review low-income rate programs and 
117.30  shall report to the legislature by January 1, 1998.  The report 
117.31  must include: 
117.32     (1) the increase in federal energy assistance money 
117.33  leveraged by the state as a result of this program; 
117.34     (2) the effect of the program on low-income customer's 
117.35  ability to pay energy costs; 
117.36     (3) the effect of the program on utility customer bad debt 
118.1   and arrearages; 
118.2      (4) the effect of the program on the costs and numbers of 
118.3   utility disconnections and reconnections and other costs 
118.4   incurred by the utility in association with inability to pay 
118.5   programs; 
118.6      (5) the ability of the utility to recover the costs of the 
118.7   low-income program without a general rate change; 
118.8      (6) how other ratepayers have been affected by this 
118.9   program; 
118.10     (7) recommendations for continuing, eliminating, or 
118.11  expanding the low-income pilot program; and 
118.12     (8) how general revenue funds may be utilized in 
118.13  conjunction with low-income programs. 
118.14     Sec. 41.  Minnesota Statutes 2000, section 216B.162, 
118.15  subdivision 7, is amended to read: 
118.16     Subd. 7.  [COMMISSION DETERMINATION.] (a) Except as 
118.17  provided under subdivision 6, competitive rates offered by 
118.18  electric utilities under this section must be filed with the 
118.19  commission and must be approved, modified, or rejected by the 
118.20  commission within 90 days.  The utility's filing must include 
118.21  statements of fact demonstrating that the proposed rates meet 
118.22  the standards of this subdivision.  The filing must be served on 
118.23  the department of public service and the office of the attorney 
118.24  general at the same time as it is served on the commission. 
118.25     (b) In reviewing a specific rate proposal, the commission 
118.26  shall determine: 
118.27     (1) that the rate meets the terms and conditions in 
118.28  subdivision 4, unless the commission determines that waiver of 
118.29  one or more terms and conditions would be in the public 
118.30  interest; 
118.31     (2) that the consumer can obtain its energy requirements 
118.32  from an energy supplier not rate-regulated by the commission 
118.33  under section 216B.16; 
118.34     (3) that the customer is not likely to take service from 
118.35  the electric utility seeking to offer the competitive rate if 
118.36  the customer was charged the electric utility's standard 
119.1   tariffed rate; and 
119.2      (4) that after consideration of environmental and 
119.3   socioeconomic impacts it is in the best interest of all other 
119.4   customers to offer the competitive rate to the customer subject 
119.5   to effective competition. 
119.6      (c) If the commission approves the competitive rate, it 
119.7   becomes effective as agreed to by the electric utility and the 
119.8   customer.  If the competitive rate is modified by the 
119.9   commission, the commission shall issue an order modifying the 
119.10  competitive rate subject to the approval of the electric utility 
119.11  and the customer.  Each party has ten days in which to reject 
119.12  the proposed modification.  If no party rejects the proposed 
119.13  modification, the commissioner's order becomes final.  If either 
119.14  party rejects the commission's proposed modification, the 
119.15  electric utility, on its behalf or on the behalf of the 
119.16  customer, may submit to the commission a modified version of the 
119.17  commission's proposal.  The commission shall accept or reject 
119.18  the modified version within 30 days.  If the commission rejects 
119.19  the competitive rate, it shall issue an order indicating the 
119.20  reasons for the rejection. 
119.21     Sec. 42.  Minnesota Statutes 2000, section 216B.162, 
119.22  subdivision 11, is amended to read: 
119.23     Subd. 11.  [COMMISSION DETERMINATION.] (a) Proposals for 
119.24  discretionary rate reductions offered by utilities must be filed 
119.25  with the commission, with copies of the filing served upon the 
119.26  department of public service and the office of attorney general 
119.27  at the same time it is served upon the commission.  The 
119.28  commission shall review the proposals according to procedures 
119.29  developed under section 216B.05, subdivision 2a.  The commission 
119.30  shall not approve discretionary rate reductions offered by 
119.31  public utilities that do not have an accepted resource plan on 
119.32  file with the commission.  The commission shall not approve 
119.33  discretionary rate reductions unless the utility has made the 
119.34  customer aware of all cost-effective opportunities for energy 
119.35  efficiency improvements offered by the utility. 
119.36     (b) Public utilities that provide service under 
120.1   discretionary rate reductions shall not, through increased 
120.2   revenue requirements or through prospective rate design changes, 
120.3   recover any revenues foregone due to the discretionary rate 
120.4   reductions, nor shall the commission grant such recovery. 
120.5      Sec. 43.  Minnesota Statutes 2000, section 216B.1675, 
120.6   subdivision 9, is amended to read: 
120.7      Subd. 9.  [COMMISSION FINDINGS.] The commission shall issue 
120.8   findings concerning the appropriateness of the proposed plan.  
120.9   The commission may approve, reject, or modify the plan in a 
120.10  manner which meets the requirements of this section.  An 
120.11  approved or modified plan becomes effective unless the plan is 
120.12  withdrawn by the utility within 30 days of a final appealable 
120.13  order.  If the utility withdraws an approved or modified plan, 
120.14  all of the administrative costs related to the plan that are 
120.15  charged by the commission or the department of public service to 
120.16  the utility may not be recovered from ratepayers in current or 
120.17  subsequent rates.  A utility that withdraws an approved or 
120.18  modified plan may not file another plan under this section for a 
120.19  period of one year following the withdrawal of the plan. 
120.20     Sec. 44.  Minnesota Statutes 2000, section 216B.241, 
120.21  subdivision 1a, is amended to read: 
120.22     Subd. 1a.  [INVESTMENT, EXPENDITURE, AND CONTRIBUTION; 
120.23  PUBLIC UTILITY.] (a) For purposes of this subdivision and 
120.24  subdivision 2, "public utility" has the meaning given it in 
120.25  section 216B.02, subdivision 4.  Each public utility shall spend 
120.26  and invest for energy conservation improvements under this 
120.27  subdivision and subdivision 2 the following amounts: 
120.28     (1) for a utility that furnishes gas service, 0.5 percent 
120.29  of its gross operating revenues from service provided in the 
120.30  state; 
120.31     (2) for a utility that furnishes electric service, 1.5 
120.32  percent of its gross operating revenues from service provided in 
120.33  the state; and 
120.34     (3) for a utility that furnishes electric service and that 
120.35  operates a nuclear-powered electric generating plant within the 
120.36  state, two percent of its gross operating revenues from service 
121.1   provided in the state. 
121.2      For purposes of this paragraph (a), "gross operating 
121.3   revenues" do not include revenues from large electric customer 
121.4   facilities exempted by the commissioner of the department of 
121.5   public service pursuant to paragraph (b). 
121.6      (b) The owner of a large electric customer facility may 
121.7   petition the commissioner of the department of public service to 
121.8   exempt both electric and gas utilities serving the large energy 
121.9   customer facility from the investment and expenditure 
121.10  requirements of paragraph (a) with respect to retail revenues 
121.11  attributable to the facility.  At a minimum, the petition must 
121.12  be supported by evidence relating to competitive or economic 
121.13  pressures on the customer and a showing by the customer of 
121.14  reasonable efforts to identify, evaluate, and implement 
121.15  cost-effective conservation improvements at the facility.  If a 
121.16  petition is filed on or before October 1 of any year, the order 
121.17  of the commissioner to exempt revenues attributable to the 
121.18  facility can be effective no earlier than January 1 of the 
121.19  following year.  The commissioner shall not grant an exemption 
121.20  if the commissioner determines that granting the exemption is 
121.21  contrary to the public interest.  The commissioner may, after 
121.22  investigation, rescind any exemption granted under this 
121.23  paragraph upon a determination that cost-effective energy 
121.24  conservation improvements are available at the large electric 
121.25  customer facility.  For the purposes of this paragraph, 
121.26  "cost-effective" means that the projected total cost of the 
121.27  energy conservation improvement at the large electric customer 
121.28  facility is less than the projected present value of the energy 
121.29  and demand savings resulting from the energy conservation 
121.30  improvement.  For the purposes of investigations by the 
121.31  commissioner under this paragraph, the owner of any large 
121.32  electric customer facility shall, upon request, provide the 
121.33  commissioner with updated information comparable to that 
121.34  originally supplied in or with the owner's original petition 
121.35  under this paragraph. 
121.36     (c) The commissioner may require investments or spending 
122.1   greater than the amounts required under this subdivision for a 
122.2   public utility whose most recent advance forecast required under 
122.3   section 216B.2422 or 216C.17 projects a peak demand deficit of 
122.4   100 megawatts or greater within five years under mid-range 
122.5   forecast assumptions.  
122.6      (d) A public utility or owner of a large electric customer 
122.7   facility may appeal a decision of the commissioner under 
122.8   paragraph (b) or (c) to the commission under subdivision 2.  In 
122.9   reviewing a decision of the commissioner under paragraph (b) or 
122.10  (c), the commission shall rescind the decision if it finds that 
122.11  the required investments or spending will: 
122.12     (1) not result in cost-effective energy conservation 
122.13  improvements; or 
122.14     (2) otherwise not be in the public interest. 
122.15     (e) Each utility shall determine what portion of the amount 
122.16  it sets aside for conservation improvement will be used for 
122.17  conservation improvements under subdivision 2 and what portion 
122.18  it will contribute to the energy and conservation account 
122.19  established in subdivision 2a.  A public utility may propose to 
122.20  the commissioner to designate that all or a portion of funds 
122.21  contributed to the account established in subdivision 2a be used 
122.22  for research and development projects.  Contributions must be 
122.23  remitted to the commissioner of public service by February 1 of 
122.24  each year.  Nothing in this subdivision prohibits a public 
122.25  utility from spending or investing for energy conservation 
122.26  improvement more than required in this subdivision. 
122.27     Sec. 45.  Minnesota Statutes 2000, section 216B.241, 
122.28  subdivision 1b, is amended to read: 
122.29     Subd. 1b.  [CONSERVATION IMPROVEMENT BY COOPERATIVE 
122.30  ASSOCIATION OR MUNICIPALITY.] (a) This subdivision applies to: 
122.31     (1) a cooperative electric association that generates and 
122.32  transmits electricity to associations that provide electricity 
122.33  at retail including a cooperative electric association not 
122.34  located in this state that serves associations or others in the 
122.35  state; 
122.36     (2) a municipality that provides electric service to retail 
123.1   customers; and 
123.2      (3) a municipality with gross operating revenues in excess 
123.3   of $5,000,000 from sales of natural gas to retail customers.  
123.4      (b) Each cooperative electric association and municipality 
123.5   subject to this subdivision shall spend and invest for energy 
123.6   conservation improvements under this subdivision the following 
123.7   amounts: 
123.8      (1) for a municipality, 0.5 percent of its gross operating 
123.9   revenues from the sale of gas and one percent of its gross 
123.10  operating revenues from the sale of electricity not purchased 
123.11  from a public utility governed by subdivision 1a or a 
123.12  cooperative electric association governed by this subdivision, 
123.13  excluding gross operating revenues from electric and gas service 
123.14  provided in the state to large electric customer facilities; and 
123.15     (2) for a cooperative electric association, 1.5 percent of 
123.16  its gross operating revenues from service provided in the state, 
123.17  excluding gross operating revenues from service provided in the 
123.18  state to large electric customer facilities indirectly through a 
123.19  distribution cooperative electric association. 
123.20     (c) Each municipality and cooperative association subject 
123.21  to this subdivision shall identify and implement energy 
123.22  conservation improvement spending and investments that are 
123.23  appropriate for the municipality or association, except that a 
123.24  municipality or association may not spend or invest for energy 
123.25  conservation improvements that directly benefit a large electric 
123.26  customer facility.  Each municipality and cooperative electric 
123.27  association subject to this subdivision may spend and invest 
123.28  annually up to 15 percent of the total amount required to be 
123.29  spent and invested on energy conservation improvements under 
123.30  this subdivision on research and development projects that meet 
123.31  the definition of energy conservation improvement in subdivision 
123.32  1 and that are funded directly by the municipality or 
123.33  cooperative electric association.  Load management may be used 
123.34  to meet the requirements of this subdivision if it reduces the 
123.35  demand for or increases the efficiency of electric services.  A 
123.36  generation and transmission cooperative electric association may 
124.1   include as spending and investment required under this 
124.2   subdivision conservation improvement spending and investment by 
124.3   cooperative electric associations that provide electric service 
124.4   at retail to consumers and that are served by the generation and 
124.5   transmission association. 
124.6      (d) By February 1 of each year, each municipality or 
124.7   cooperative shall report to the commissioner its energy 
124.8   conservation improvement spending and investments with a brief 
124.9   analysis of effectiveness in reducing consumption of electricity 
124.10  or gas.  The commissioner shall review each report and make 
124.11  recommendations, where appropriate, to the municipality or 
124.12  association to increase the effectiveness of conservation 
124.13  improvement activities.  The commissioner shall also review each 
124.14  report for whether a portion of the money spent on residential 
124.15  conservation improvement programs is devoted to programs that 
124.16  directly address the needs of renters and low-income persons 
124.17  unless an insufficient number of appropriate programs are 
124.18  available.  For the purposes of this subdivision and subdivision 
124.19  2, "low-income" means an income of less than 185 percent of the 
124.20  federal poverty level. 
124.21     (e) As part of its spending for conservation improvement, a 
124.22  municipality or association may contribute to the energy and 
124.23  conservation account.  A municipality or association may propose 
124.24  to the commissioner to designate that all or a portion of funds 
124.25  contributed to the account be used for research and development 
124.26  projects.  Any amount contributed must be remitted to the 
124.27  commissioner of public service by February 1 of each year. 
124.28     Sec. 46.  Minnesota Statutes 2000, section 216B.241, 
124.29  subdivision 2b, is amended to read: 
124.30     Subd. 2b.  [RECOVERY OF EXPENSES.] The commission shall 
124.31  allow a utility to recover expenses resulting from a 
124.32  conservation improvement program required by the department and 
124.33  contributions to the energy and conservation account, unless the 
124.34  recovery would be inconsistent with a financial incentive 
124.35  proposal approved by the commission.  In addition, a utility may 
124.36  file annually, or the public utilities commission may require 
125.1   the utility to file, and the commission may approve, rate 
125.2   schedules containing provisions for the automatic adjustment of 
125.3   charges for utility service in direct relation to changes in the 
125.4   expenses of the utility for real and personal property taxes, 
125.5   fees, and permits, the amounts of which the utility cannot 
125.6   control.  A public utility is eligible to file for adjustment 
125.7   for real and personal property taxes, fees, and permits under 
125.8   this subdivision only if, in the year previous to the year in 
125.9   which it files for adjustment, it has spent or invested at least 
125.10  1.75 percent of its gross revenues from provision of electric 
125.11  service, excluding gross operating revenues from electric 
125.12  service provided in the state to large electric customer 
125.13  facilities for which the commissioner of public service has 
125.14  issued an exemption under subdivision 1a, paragraph (b), and 0.6 
125.15  percent of its gross revenues from provision of gas service, 
125.16  excluding gross operating revenues from gas services provided in 
125.17  the state to large electric customer facilities for which the 
125.18  commissioner of public service has issued an exemption under 
125.19  subdivision 1a, paragraph (b), for that year for energy 
125.20  conservation improvements under this section. 
125.21     Sec. 47.  Minnesota Statutes 2000, section 216C.01, 
125.22  subdivision 1, is amended to read: 
125.23     Subdivision 1.  [APPLICABILITY.] The definitions in this 
125.24  section apply to sections 216C.02, 216C.05, 216C.07 to 216C.19, 
125.25  216C.20 to 216C.35, and 216C.373 to 216C.381 this chapter. 
125.26     Sec. 48.  Minnesota Statutes 2000, section 216C.01, 
125.27  subdivision 2, is amended to read: 
125.28     Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
125.29  commissioner of the department of public service commerce. 
125.30     Sec. 49.  Minnesota Statutes 2000, section 216C.01, 
125.31  subdivision 3, is amended to read: 
125.32     Subd. 3.  [DEPARTMENT.] "Department" means the department 
125.33  of public service commerce. 
125.34     Sec. 50.  Minnesota Statutes 2000, section 216C.051, 
125.35  subdivision 6, is amended to read: 
125.36     Subd. 6.  [ASSESSMENT; APPROPRIATION.] On request by the 
126.1   cochairs of the legislative task force and after approval of the 
126.2   legislative coordinating commission, the commissioner of the 
126.3   department of public service commerce shall assess from electric 
126.4   utilities, in addition to assessments made under section 
126.5   216B.62, the amount requested for the operation of the task 
126.6   force not to exceed $700,000.  This authority to assess 
126.7   continues until the commissioner has assessed a total of 
126.8   $700,000.  The amount assessed under this section is 
126.9   appropriated to the director of the legislative coordinating 
126.10  commission for those purposes, and is available until expended. 
126.11     Sec. 51.  Minnesota Statutes 2000, section 216C.37, 
126.12  subdivision 1, is amended to read: 
126.13     Subdivision 1.  [DEFINITIONS.] In this section:  
126.14     (a) "Commissioner" means the commissioner of public service 
126.15  commerce. 
126.16     (b) "Energy conservation investments" means all capital 
126.17  expenditures that are associated with conservation measures 
126.18  identified in an energy project study, and that have a ten-year 
126.19  or less payback period.  
126.20     (c) "Municipality" means any county, statutory or home rule 
126.21  charter city, town, school district, or any combination of those 
126.22  units operating under an agreement to jointly undertake projects 
126.23  authorized in this section.  
126.24     (d) "Energy project study" means a study of one or more 
126.25  energy-related capital improvement projects analyzed in 
126.26  sufficient detail to support a financing application.  At a 
126.27  minimum, it must include one year of energy consumption and cost 
126.28  data, a description of existing conditions, a description of 
126.29  proposed conditions, a detailed description of the costs of the 
126.30  project, and calculations sufficient to document the proposed 
126.31  energy savings. 
126.32     Sec. 52.  Minnesota Statutes 2000, section 216C.40, 
126.33  subdivision 4, is amended to read: 
126.34     Subd. 4.  [CONDITION PRECEDENT.] The duties of the 
126.35  department under this section are conditional on the 
126.36  commissioner of public service finding that there will be at 
127.1   least one public utility that will be subject to the assessment 
127.2   created by Laws 1993, chapter 254, section 7. 
127.3      Sec. 53.  Minnesota Statutes 2000, section 237.02, is 
127.4   amended to read: 
127.5      237.02 [GENERAL AUTHORITY OF DEPARTMENT AND COMMISSION; 
127.6   DEFINITIONS.] 
127.7      The department of public service commerce and the public 
127.8   utilities commission, now existing under the laws of this state, 
127.9   are hereby vested with the same jurisdiction and supervisory 
127.10  power over telephone and telecommunications companies doing 
127.11  business in this state as it now has the commission's 
127.12  predecessor, the railroad and warehouse commission, had over 
127.13  railroad and express companies.  The definitions set forth 
127.14  in section sections 216A.02 shall apply and 216B.02 also apply 
127.15  to this chapter. 
127.16     Sec. 54.  Minnesota Statutes 2000, section 237.075, 
127.17  subdivision 2, is amended to read: 
127.18     Subd. 2.  [SUSPENSION OF PROPOSED RATE; HEARING; FINAL 
127.19  DETERMINATION DEFINED.] (a) Whenever there is filed with the 
127.20  commission as provided in subdivision 1 a schedule modifying or 
127.21  resulting in a change in any rate then in force, the commission 
127.22  may suspend the operation of the schedule by filing with the 
127.23  schedule of rates and delivering to the affected telephone 
127.24  company a statement in writing of its reasons for the suspension 
127.25  at any time before the rates become effective.  The suspension 
127.26  shall not be for a longer period than ten months beyond the 
127.27  initial filing date except as provided in paragraph (b).  During 
127.28  the suspension the commission shall determine whether all 
127.29  questions of the reasonableness of the rates requested raised by 
127.30  persons deemed interested or by the administrative division of 
127.31  the department of public service can be resolved to the 
127.32  satisfaction of the commission.  If the commission finds that 
127.33  all significant issues raised have not been resolved to its 
127.34  satisfaction, or upon petition by ten percent of the affected 
127.35  customers or 250 affected customers, whichever is less, it shall 
127.36  refer the matter to the office of administrative hearings with 
128.1   instructions for a public hearing as a contested case pursuant 
128.2   to chapter 14, except as otherwise provided in this section.  
128.3   The commission may order that the issues presented by the 
128.4   proposed rate changes be bifurcated into two separate hearings 
128.5   as follows:  (1) determination of the telephone company's 
128.6   revenue requirements and (2) determination of the rate design.  
128.7   Upon issuance of both administrative law judge reports, the 
128.8   issues shall again be joined for consideration and final 
128.9   determination by the commission.  All prehearing discovery 
128.10  activities of state agency intervenors shall be consolidated and 
128.11  conducted by the department of public service commerce.  If the 
128.12  commission does not make a final determination concerning a 
128.13  schedule of rates within ten months after the initial filing 
128.14  date, the schedule shall be deemed to have been approved by the 
128.15  commission; except if a settlement has been submitted to and 
128.16  rejected by the commission, the schedule is deemed to have been 
128.17  approved 12 months after the initial filing. 
128.18     (b) If the commission finds that it has insufficient time 
128.19  during the suspension period to make a final determination of a 
128.20  case involving changes in general rates because of the need to 
128.21  make final determinations of other previously filed cases 
128.22  involving changes in general rates under this section or section 
128.23  216B.16, the commission may extend the suspension period to the 
128.24  extent necessary to allow itself 20 working days to make the 
128.25  final determination after it has made final determinations in 
128.26  the previously filed cases.  An extension of the suspension 
128.27  period under this paragraph does not alter the setting of 
128.28  interim rates under subdivision 3. 
128.29     (c) For the purposes of this section, "final determination" 
128.30  means the initial decision of the commission and not any order 
128.31  which may be entered by the commission in response to a petition 
128.32  for rehearing or other further relief.  The commission may 
128.33  further suspend rates until it determines all those petitions. 
128.34     Sec. 55.  Minnesota Statutes 2000, section 237.075, 
128.35  subdivision 9, is amended to read: 
128.36     Subd. 9.  [ELECTION ON REGULATION; COOPERATIVE, MUNICIPAL, 
129.1   INDEPENDENT.] For the purposes of this section, "telephone 
129.2   company" shall not include a cooperative telephone association 
129.3   organized under the provisions of chapter 308A, an independent 
129.4   telephone company, or a municipal, unless the cooperative 
129.5   telephone association, independent telephone company, or 
129.6   municipal makes the election provided in this subdivision. 
129.7      A cooperative telephone association may elect to become 
129.8   subject to rate regulation by the commission pursuant to this 
129.9   section.  The election shall be (a) approved by the board of 
129.10  directors of the association in accordance with the procedures 
129.11  for amending the articles of incorporation contained in section 
129.12  308A.135, excluding the filing requirements; or (b) approved by 
129.13  a majority of members or stockholders voting by mail ballot 
129.14  initiated by petition of no fewer than five percent of the 
129.15  members or stockholders of the association.  The ballot to be 
129.16  used for the election shall be approved by the board of 
129.17  directors and the department of public service.  The department 
129.18  shall mail the ballots to the association's members who shall 
129.19  return the ballots to the department.  The department will keep 
129.20  the ballots sealed until a date agreed upon by the department 
129.21  and the board of directors.  On this date, representatives of 
129.22  the department and the association shall count the ballots.  If 
129.23  a majority of the association's members who vote elect to become 
129.24  subject to rate regulation by the commission, the election shall 
129.25  be effective 30 days after the date the ballots are counted.  
129.26  For purposes of this section, the term "member or stockholder"  
129.27  shall mean either the member or stockholder of record or the 
129.28  spouse of the member or stockholder unless the association has 
129.29  been notified otherwise in writing.  
129.30     A municipal may elect to become subject to rate regulation 
129.31  by the commission pursuant to this section.  The election shall 
129.32  be (a) approved by resolution of the governing body of the 
129.33  municipality; or (b) approved by a majority of the customers of 
129.34  the municipal voting by mail ballot initiated by petition of no 
129.35  fewer than 20 percent of the customers of the municipal.  The 
129.36  ballot to be used for the election shall be approved by the 
130.1   governing body of the municipality and the department of public 
130.2   service.  The department shall mail the ballots to the 
130.3   municipal's customers who shall return the ballots to the 
130.4   department.  The department will keep the ballots sealed until a 
130.5   date agreed upon by the department and the governing body of the 
130.6   municipality.  On this date, representatives of the department 
130.7   and the municipal shall count the ballots.  If a majority of the 
130.8   customers of the municipal who vote elect to become subject to 
130.9   rate regulation by the commission, the election shall be 
130.10  effective 30 days after the date the ballots are counted.  For 
130.11  purposes of this section, the term "customer" shall mean either 
130.12  the person in whose name the telephone service is registered or 
130.13  the spouse of the person unless the municipal utility has been 
130.14  notified otherwise in writing.  
130.15     An independent telephone company may elect to become 
130.16  subject to rate regulation by the commission pursuant to this 
130.17  section.  The election shall be (a) approved by the board of 
130.18  directors of the company in accordance with the procedures for 
130.19  amending the articles of incorporation contained in sections 
130.20  302A.133 to 302A.139, excluding the filing requirements; or (b) 
130.21  approved by a majority of subscribers voting by mail ballot 
130.22  initiated by petition of no fewer than five percent of the 
130.23  subscribers of the company.  The ballot to be used for the 
130.24  election shall be approved by the board of directors and the 
130.25  department of public service.  The department shall mail the 
130.26  ballots to the company's subscribers who shall return the 
130.27  ballots to the department.  The department will keep the ballots 
130.28  sealed until a date agreed upon by the department and the board 
130.29  of directors.  On this date, representatives of the department 
130.30  and the company shall count the ballots.  If a majority of the 
130.31  company's subscribers who vote elect to become subject to rate 
130.32  regulation by the commission, the election shall be effective 30 
130.33  days after the date the ballots are counted.  For purposes of 
130.34  this section the term "subscriber" shall mean either the person 
130.35  in whose name the telephone service is registered or the spouse 
130.36  of the person unless the independent telephone company has been 
131.1   notified otherwise in writing.  
131.2      Sec. 56.  Minnesota Statutes 2000, section 237.082, is 
131.3   amended to read: 
131.4      237.082 [TELECOMMUNICATION SERVICE; POLICY OF INCREASED 
131.5   SPEED AND SERVICE.] 
131.6      When setting rates, adopting rules, or issuing orders 
131.7   related to telecommunication matters that affect deployment of 
131.8   the infrastructure, the commission may apply the goals of: 
131.9      (1) achieving economically efficient investment in: 
131.10     (i) higher speed telecommunication services; and 
131.11     (ii) greater capacity for voice, video, and data 
131.12  transmission; and 
131.13     (2) just and reasonable rates. 
131.14     The department of public service may apply the same goals 
131.15  in its regulation of and recommendations regarding 
131.16  telecommunication services. 
131.17     Sec. 57.  Minnesota Statutes 2000, section 237.21, is 
131.18  amended to read: 
131.19     237.21 [VALUATION OF TELEPHONE PROPERTY.] 
131.20     In determining the value of any telephone property for rate 
131.21  making purposes, no valuation shall be allowed upon the value of 
131.22  any franchise granted by the state or any municipality where no 
131.23  payment was or is being made to the state or municipality on 
131.24  account thereof.  The requirement as to reasonableness of rates 
131.25  shall apply to each exchange unit as well as to telephone plants 
131.26  as a whole.  Provided, that in the case of a company operating a 
131.27  telephone system consisting of more than one exchange in the 
131.28  state, reasonableness of rates, as measured by earnings, shall 
131.29  be determined by a reasonable return from the total operations 
131.30  of the system within the state rather than by the return from 
131.31  individual exchanges or services.  No telephone rates or charges 
131.32  shall be allowed or approved by the commission under any 
131.33  circumstances, which are inadequate and which are intended to or 
131.34  naturally tend to destroy competition or produce a monopoly in 
131.35  telephone service in the locality affected.  
131.36     Laws 1953, chapter 25, shall have no effect on proceedings 
132.1   pending before the courts or the department of public service at 
132.2   the time of its enactment.  
132.3      Sec. 58.  Minnesota Statutes 2000, section 237.30, is 
132.4   amended to read: 
132.5      237.30 [TELEPHONE INVESTIGATION FUND; APPROPRIATION.] 
132.6      The sum of $25,000 is hereby appropriated out of any moneys 
132.7   in the state treasury not otherwise appropriated, to establish 
132.8   and provide a revolving fund to be known as the Minnesota 
132.9   Telephone Investigation Fund for the use of the department of 
132.10  public service commerce and of the attorney general in 
132.11  investigations, valuations, and revaluations under section 
132.12  237.295.  All sums paid by the telephone companies to reimburse 
132.13  the department of public service for its expenses pursuant to 
132.14  section 237.295 shall be credited to the revolving fund and 
132.15  shall be deposited in a separate bank account and not commingled 
132.16  with any other state funds or moneys, but any balance in excess 
132.17  of $25,000 in the revolving fund at the end of each fiscal year 
132.18  shall be paid into the state treasury and credited to the 
132.19  general fund.  The sum of $25,000 herein appropriated and all 
132.20  subsequent credits to said revolving fund shall be paid upon the 
132.21  warrant of the commissioner of finance upon application of the 
132.22  department or of the attorney general to an aggregate amount of 
132.23  not more than one-half of such sums to each of them, which 
132.24  proportion shall be constantly maintained in all credits and 
132.25  withdrawals from the revolving fund. 
132.26     Sec. 59.  Minnesota Statutes 2000, section 237.462, 
132.27  subdivision 6, is amended to read: 
132.28     Subd. 6.  [EXPEDITED PROCEEDING.] (a) The commission may 
132.29  order an expedited proceeding under section 237.61 and this 
132.30  subdivision, in lieu of a contested case under chapter 14, to 
132.31  develop an evidentiary record in any proceeding that involves 
132.32  contested issues of material fact either upon request of a party 
132.33  or upon the commission's own motion if the complaint alleges a 
132.34  violation described in subdivision 1, clauses (1) to (4).  The 
132.35  commission may order an expedited proceeding under this 
132.36  subdivision if the commission finds an expedited proceeding is 
133.1   in the public interest, regardless of whether all parties agree 
133.2   to the expedited proceeding.  In determining whether to grant an 
133.3   expedited proceeding, the commission may consider any evidence 
133.4   of impairment of the provision of telecommunications service to 
133.5   subscribers in the state or impairment of the provision of any 
133.6   service or network element subject to the jurisdiction of the 
133.7   commission.  
133.8      (b) Any request for an expedited proceeding under this 
133.9   subdivision must be noted in the title of the first filing by a 
133.10  party.  The filing shall also state the specific circumstances 
133.11  that the party believes warrant an expedited proceeding under 
133.12  this subdivision.  
133.13     (c) A complaint requesting an expedited proceeding, unless 
133.14  filed by the department of public service or the attorney 
133.15  general, must set forth the actions and the dates of the actions 
133.16  taken by the party filing the complaint to attempt to resolve 
133.17  the alleged violations with the party against whom the complaint 
133.18  is filed, including any requests that the party against whom the 
133.19  complaint is filed correct the conduct giving rise to the 
133.20  violations alleged in the complaint.  If no such actions were 
133.21  taken by the complainant, the complaint shall set forth the 
133.22  reasons why no such actions were taken.  The commission may 
133.23  order an expedited proceeding even if the filing complaint fails 
133.24  to meet this requirement if the commission determines that it 
133.25  would be in the public interest to go forward with the expedited 
133.26  proceeding without information in the complaint on attempts to 
133.27  resolve the dispute. 
133.28     (d) The complaining party shall serve the complaint along 
133.29  with any written discovery requests by hand delivery and 
133.30  facsimile on the party against whom the complaint is filed, the 
133.31  department of public service, and the office of the attorney 
133.32  general on the same day the complaint is filed with the 
133.33  commission. 
133.34     (e) The party responding to a complaint that includes a 
133.35  request for an expedited proceeding under this subdivision shall 
133.36  file an answer within 15 days after receiving the complaint.  
134.1   The responding party shall state in the answer the party's 
134.2   position on the request for an expedited proceeding.  The 
134.3   responding party shall serve with the answer any objections to 
134.4   any written discovery requests as well as any written discovery 
134.5   requests the responding party wishes to serve on the complaining 
134.6   party.  Except for stating any objections, the responding party 
134.7   is not required to answer any written discovery requests under 
134.8   this subdivision until a time established at a prehearing 
134.9   conference.  The responding party shall serve a copy of the 
134.10  answer and any discovery requests and objections on the 
134.11  complaining party, the department of public service, and office 
134.12  of the attorney general by hand delivery and facsimile on the 
134.13  same day as the answer is filed with the commission. 
134.14     (f) Within 15 days of receiving the answer to a complaint 
134.15  in a proceeding in which a party has requested an expedited 
134.16  hearing, the commission shall determine whether the filing 
134.17  warrants an expedited proceeding.  If the commission decides to 
134.18  grant a request by a party or if the commission orders an 
134.19  expedited proceeding on its own motion, the commission shall 
134.20  conduct within seven days of the decision a prehearing 
134.21  conference to schedule the evidentiary hearing.  During the 
134.22  prehearing conference, the commission shall establish a 
134.23  discovery schedule that requires all discovery to be completed 
134.24  no later than three days before the start of the hearing.  An 
134.25  evidentiary hearing under this subdivision must commence no 
134.26  later than 45 days after the commission's decision to order an 
134.27  expedited proceeding.  A quorum of the commission shall preside 
134.28  at any evidentiary hearing under this subdivision unless all the 
134.29  parties to the proceeding agree otherwise.  
134.30     (g) All pleadings submitted under this subdivision must be 
134.31  verified and all oral statements of fact made in a hearing or 
134.32  deposition under this subdivision must be made under oath or 
134.33  affirmation. 
134.34     (h) The commission shall issue a written decision and final 
134.35  order on the complaint within 15 days after the close of the 
134.36  evidentiary hearing under this subdivision.  On the day of 
135.1   issuance, the commission shall notify the parties by facsimile 
135.2   that a final order has been issued and shall provide each party 
135.3   with a copy of the final order. 
135.4      (i) The commission may extend any time periods under this 
135.5   subdivision if all parties to the proceeding agree to the 
135.6   extension or if the commission finds the extension is necessary 
135.7   to ensure a just resolution of the complaint. 
135.8      (j) Except as otherwise provided in this subdivision, an 
135.9   expedited proceeding under this subdivision shall be governed by 
135.10  the following procedural rules: 
135.11     (1) the parties shall have the discovery rights provided in 
135.12  Minnesota Rules, parts 1400.6700 to 1400.7000; 
135.13     (2) the parties shall have the right to cross-examine 
135.14  witnesses as provided in section 14.60, subdivision 3; 
135.15     (3) the admissibility of evidence and development of record 
135.16  for decision shall be governed by section 14.60 and Minnesota 
135.17  Rules, part 1400.7300; and 
135.18     (4) the commission may apply other procedures or standards 
135.19  included in the rules of the office of administrative hearings, 
135.20  as necessary to ensure the fair and expeditious resolution of 
135.21  disputes under this section. 
135.22     Sec. 60.  Minnesota Statutes 2000, section 237.51, 
135.23  subdivision 1, is amended to read: 
135.24     Subdivision 1.  [CREATION.] The department of public 
135.25  service commissioner of commerce shall administer through 
135.26  interagency agreement with the department commissioner of human 
135.27  services a program to distribute communication devices to 
135.28  eligible communication-impaired persons and contract with a 
135.29  local consumer group that serves communication-impaired persons 
135.30  to create and maintain a telecommunication relay service.  For 
135.31  purposes of sections 237.51 to 237.56, the department of public 
135.32  service commerce and any organization with which it contracts 
135.33  pursuant to this section or section 237.54, subdivision 2, are 
135.34  not telephone companies or telecommunications carriers as 
135.35  defined in section 237.01. 
135.36     Sec. 61.  Minnesota Statutes 2000, section 237.51, 
136.1   subdivision 5, is amended to read: 
136.2      Subd. 5.  [DEPARTMENT OF PUBLIC SERVICE COMMISSIONER OF 
136.3   COMMERCE DUTIES.] In addition to any duties specified elsewhere 
136.4   in sections 237.51 to 237.56, the department of public service 
136.5   commissioner of commerce shall: 
136.6      (1) prepare the reports required by section 237.55; 
136.7      (2) administer the fund created in section 237.52; and 
136.8      (3) adopt rules under chapter 14 to implement the 
136.9   provisions of sections 237.50 to 237.56. 
136.10     Sec. 62.  Minnesota Statutes 2000, section 237.51, 
136.11  subdivision 5a, is amended to read: 
136.12     Subd. 5a.  [DEPARTMENT OF HUMAN SERVICES DUTIES.] (a) In 
136.13  addition to any duties specified elsewhere in sections 237.51 to 
136.14  237.56, the department commissioner of human services shall: 
136.15     (1) define economic hardship, special needs, and household 
136.16  criteria so as to determine the priority of eligible applicants 
136.17  for initial distribution of devices and to determine 
136.18  circumstances necessitating provision of more than one 
136.19  communication device per household; 
136.20     (2) establish a method to verify eligibility requirements; 
136.21     (3) establish specifications for communication devices to 
136.22  be purchased under section 237.53, subdivision 3; and 
136.23     (4) inform the public and specifically the community of 
136.24  communication-impaired persons of the program.  
136.25     (b) The department commissioner may establish an advisory 
136.26  board to advise the department in carrying out the duties 
136.27  specified in this section and to advise the department of public 
136.28  service commissioner of commerce in carrying out its duties 
136.29  under section 237.54.  If so established, the advisory board 
136.30  must include, at a minimum, the following communication-impaired 
136.31  persons: 
136.32     (1) at least one member who is deaf; 
136.33     (2) at least one member who is speech impaired; 
136.34     (3) at least one member who is mobility impaired; and 
136.35     (4) at least one member who is hard-of-hearing. 
136.36     The membership terms, compensation, and removal of members 
137.1   and the filling of membership vacancies are governed by section 
137.2   15.059.  Advisory board meetings shall be held at the discretion 
137.3   of the commissioner. 
137.4      Sec. 63.  Minnesota Statutes 2000, section 237.52, 
137.5   subdivision 2, is amended to read: 
137.6      Subd. 2.  [ASSESSMENT.] The department of public 
137.7   service commissioner of commerce shall annually recommend to the 
137.8   commission an adequate and appropriate surcharge and budget to 
137.9   implement sections 237.50 to 237.56.  The public utilities 
137.10  commission shall review the budget for reasonableness and may 
137.11  modify the budget to the extent it is unreasonable.  The 
137.12  commission shall annually determine the funding mechanism to be 
137.13  used within 60 days of receipt of the recommendation of the 
137.14  department and shall order the imposition of surcharges 
137.15  effective on the earliest practicable date.  The commission 
137.16  shall establish a monthly charge no greater than 20 cents for 
137.17  each customer access line, including trunk equivalents as 
137.18  designated by the commission pursuant to section 403.11, 
137.19  subdivision 1. 
137.20     Sec. 64.  Minnesota Statutes 2000, section 237.52, 
137.21  subdivision 4, is amended to read: 
137.22     Subd. 4.  [APPROPRIATION.] Money in the fund is 
137.23  appropriated to the department of public service commissioner of 
137.24  commerce to implement sections 237.51 to 237.56. 
137.25     Sec. 65.  Minnesota Statutes 2000, section 237.52, 
137.26  subdivision 5, is amended to read: 
137.27     Subd. 5.  [EXPENDITURES.] Money in the fund may only be 
137.28  used for: 
137.29     (1) expenses of the department of public service commerce, 
137.30  including personnel cost, public relations, advisory board 
137.31  members' expenses, preparation of reports, and other reasonable 
137.32  expenses not to exceed ten percent of total program 
137.33  expenditures; 
137.34     (2) reimbursing the commissioner of human services for 
137.35  purchases made or services provided pursuant to section 237.53; 
137.36     (3) reimbursing telephone companies for purchases made or 
138.1   services provided under section 237.53, subdivision 5; and 
138.2      (4) contracting for establishment and operation of the 
138.3   telecommunication relay service required by section 237.54. 
138.4      All costs directly associated with the establishment of the 
138.5   program, the purchase and distribution of communication devices, 
138.6   and the establishment and operation of the telecommunication 
138.7   relay service are either reimbursable or directly payable from 
138.8   the fund after authorization by the department of public service 
138.9   commissioner of commerce.  The department of public 
138.10  service commissioner of commerce shall contract with the message 
138.11  relay service operator to indemnify the local exchange carriers 
138.12  of the relay service for any fines imposed by the Federal 
138.13  Communications Commission related to the failure of the relay 
138.14  service to comply with federal service standards.  
138.15  Notwithstanding section 16A.41, the department of public service 
138.16  commissioner may advance money to the contractor of the 
138.17  telecommunication relay service if the contractor establishes to 
138.18  the department's commissioner's satisfaction that the advance 
138.19  payment is necessary for the operation of the service.  The 
138.20  advance payment may be used only for working capital reserve for 
138.21  the operation of the service.  The advance payment must be 
138.22  offset or repaid by the end of the contract fiscal year together 
138.23  with interest accrued from the date of payment.  
138.24     Sec. 66.  Minnesota Statutes 2000, section 237.54, 
138.25  subdivision 2, is amended to read: 
138.26     Subd. 2.  [OPERATION.] The department of public 
138.27  service commissioner of commerce shall contract with a local 
138.28  consumer organization that serves communication-impaired persons 
138.29  for operation and maintenance of the telecommunication relay 
138.30  system.  The department commissioner may contract with other 
138.31  than a local consumer organization if no local consumer 
138.32  organization is available to enter into or perform a reasonable 
138.33  contract or the only available consumer organization fails to 
138.34  comply with terms of a contract.  The operator of the system 
138.35  shall keep all messages confidential, shall train personnel in 
138.36  the unique needs of communication-impaired people, and shall 
139.1   inform communication-impaired persons and the public of the 
139.2   availability and use of the system.  The operator shall not 
139.3   relay a message unless it originates or terminates through a 
139.4   communication device for the deaf or a Brailling device for use 
139.5   with a telephone. 
139.6      Sec. 67.  Minnesota Statutes 2000, section 237.55, is 
139.7   amended to read: 
139.8      237.55 [ANNUAL REPORT ON COMMUNICATION ACCESS.] 
139.9      The department of public service commissioner of commerce 
139.10  must prepare a report for presentation to the commission by 
139.11  January 31 of each year.  Each report must review the 
139.12  accessibility of the telephone system to communication-impaired 
139.13  persons, review the ability of non-communication-impaired 
139.14  persons to communicate with communication-impaired persons via 
139.15  the telephone system, describe services provided, account for 
139.16  money received and disbursed annually for each aspect of the 
139.17  program to date, and include predicted future operation. 
139.18     Sec. 68.  Minnesota Statutes 2000, section 237.59, 
139.19  subdivision 2, is amended to read: 
139.20     Subd. 2.  [PETITION.] (a) A telephone company, or the 
139.21  commission on its own motion, may petition to have a service of 
139.22  that telephone company classified as subject to effective 
139.23  competition or emerging competition.  The petition must be 
139.24  served on the commission, the department of public service, the 
139.25  office of the attorney general, and any other person designated 
139.26  by the commission.  The petition must contain at least: 
139.27     (1) a list of the known alternative providers of the 
139.28  service available to the company's customers; and 
139.29     (2) a description of affiliate relationships with any other 
139.30  provider of the service in the company's market. 
139.31     (b) At the time the company first offers a service, it 
139.32  shall also file a petition with the commission for a 
139.33  determination as to how the service should be classified.  In 
139.34  the event that no interested party or the commission objects to 
139.35  the company's proposed classification within 20 days of the 
139.36  filing of the petition, the company's proposed classification of 
140.1   the service is deemed approved.  If an objection is filed, the 
140.2   commission shall determine the appropriate classification after 
140.3   a hearing conducted pursuant to section 237.61.  In either 
140.4   event, the company may offer the new service to its customers 
140.5   ten days after the company files the price list and incremental 
140.6   cost study as provided in section 237.60, subdivision 2, 
140.7   paragraph (f). 
140.8      (c) A new service may be classified as subject to effective 
140.9   competition or emerging competition pursuant to the criteria set 
140.10  forth in subdivision 5.  A new service must be regulated under 
140.11  the emerging competition provisions if it is not integrally 
140.12  related to the provision of adequate local service or access to 
140.13  the telephone network or to the privacy, health, or safety of 
140.14  the company's customers, whether or not it meets the criteria 
140.15  set forth in subdivision 5. 
140.16     Sec. 69.  Minnesota Statutes 2000, section 237.768, is 
140.17  amended to read: 
140.18     237.768 [PERIODIC FINANCIAL REPORT.] 
140.19     In addition to the reports required under section 237.766, 
140.20  an alternative regulation plan may require a telephone company 
140.21  to file with the department an annual report of financial 
140.22  matters for the previous calendar year on or before May 1 of 
140.23  each year on report forms furnished by the department of public 
140.24  service in the same manner as is required of other telephone 
140.25  companies on August 1, 1995.  In addition, any company subject 
140.26  to a plan shall file with the commission and department a copy 
140.27  of any filings it has made to the Federal Communications 
140.28  Commission regarding the provisions of video programming 
140.29  provided through a video dial tone facility in Minnesota.  An 
140.30  alternative regulation plan may require a telephone company to 
140.31  maintain its accounts in accordance with the system of accounts 
140.32  prescribed for the company by the commission under section 
140.33  237.10. 
140.34     Sec. 70.  Minnesota Statutes 2000, section 239.01, is 
140.35  amended to read: 
140.36     239.01 [WEIGHTS AND MEASURES DIVISION; JURISDICTION.] 
141.1      The weights and measures division, referred to in this 
141.2   chapter as the division, is created under the jurisdiction of 
141.3   the department of public service commerce.  The division has 
141.4   supervision and control over all weights, weighing devices, and 
141.5   measures in the state. 
141.6      Sec. 71.  Minnesota Statutes 2000, section 239.10, is 
141.7   amended to read: 
141.8      239.10 [ANNUAL INSPECTION.] 
141.9      Subdivision 1.  [LIGHT CAPACITY SCALES; RETAIL 
141.10  ESTABLISHMENTS.] The director shall inspect light capacity 
141.11  scales in retail establishments such as grocery stores, other 
141.12  retail food establishments, or hardware stores, not more often 
141.13  than once every 36 months except when the owner requests an 
141.14  inspection, when the scale is inspected as part of an 
141.15  investigation, or when the scale has been repaired. 
141.16     Subd. 2.  [PACKAGED FOOD COMMODITIES.] The director shall 
141.17  inspect packaged food commodities in grocery stores and other 
141.18  retail food establishments not more often than once every 36 
141.19  months except when the owner requests an inspection or when 
141.20  packages are inspected as part of an investigation. 
141.21     Subd. 3.  [OTHER WEIGHTS AND MEASURES.] The director shall 
141.22  inspect all weights and measures, except those specified in 
141.23  subdivisions 1 and 2, annually, or as often as deemed possible 
141.24  within budget and staff limitations. 
141.25     Sec. 72.  Minnesota Statutes 2000, section 325E.11, is 
141.26  amended to read: 
141.27     325E.11 [COLLECTION FACILITIES; NOTICE.] 
141.28     (a) Any person selling at retail or offering motor oil or 
141.29  motor oil filters for retail sale in this state shall: 
141.30     (1) post a notice indicating the nearest location where 
141.31  used motor oil and used motor oil filters may be returned at no 
141.32  cost for recycling or reuse, post a toll-free telephone number 
141.33  that may be called by the public to determine a convenient 
141.34  location, or post a listing of locations where used motor oil 
141.35  and used motor oil filters may be returned at no cost for 
141.36  recycling or reuse; or 
142.1      (2) if the person is subject to section 325E.112, 
142.2   subdivision 1, paragraph (b), post a notice informing customers 
142.3   purchasing motor oil or motor oil filters of the location of the 
142.4   used motor oil and used motor oil filter collection site 
142.5   established by the retailer in accordance with section 325E.112, 
142.6   subdivision 1, paragraph (b), where used motor oil and used 
142.7   motor oil filters may be returned at no cost. 
142.8      (b) A notice under paragraph (a) shall be posted on or 
142.9   adjacent to the motor oil and motor oil filter displays, be at 
142.10  least 8-1/2 inches by 11 inches in size, contain the universal 
142.11  recycling symbol with the following language: 
142.12     (1) "It is illegal to put used oil and used motor oil 
142.13  filters in the garbage."; 
142.14     (2) "Recycle your used oil and used motor oil filters."; 
142.15  and 
142.16     (3)(i) "There is a free collection site here for your used 
142.17  oil and used motor oil filters."; 
142.18     (ii) "There is a free collection site for used oil and used 
142.19  motor oil filters located at (name of business and street 
142.20  address)."; 
142.21     (iii) "For the location of a free collection site for used 
142.22  oil and used motor oil filters call (toll-free phone number)."; 
142.23  or 
142.24     (iv) "Here is a list of free collection sites for used oil 
142.25  and used motor oil filters." 
142.26     (c) The division of weights and measures under in the 
142.27  department of public service commerce shall enforce compliance 
142.28  with this section as provided in section 239.54.  The pollution 
142.29  control agency shall enforce compliance with this section under 
142.30  sections 115.071 and 116.072 in coordination with the division 
142.31  of weights and measures. 
142.32     Sec. 73.  Minnesota Statutes 2000, section 325E.115, 
142.33  subdivision 2, is amended to read: 
142.34     Subd. 2.  [COMPLIANCE; MANAGEMENT.] The division of weights 
142.35  and measures under in the department of public service commerce 
142.36  shall enforce compliance of subdivision 1 as provided in section 
143.1   239.54.  The commissioner of the pollution control agency shall 
143.2   inform persons governed by subdivision 1 of requirements for 
143.3   managing lead acid batteries.  
143.4      Sec. 74.  Minnesota Statutes 2000, section 326.243, is 
143.5   amended to read: 
143.6      326.243 [SAFETY STANDARDS.] 
143.7      All electrical wiring, apparatus and equipment for electric 
143.8   light, heat and power, alarm and communication systems shall 
143.9   comply with the rules of the department of public service, the 
143.10  commissioner of commerce, or the department of labor and 
143.11  industry, as applicable, and be installed in conformity with 
143.12  accepted standards of construction for safety to life and 
143.13  property.  For the purposes of this chapter, the rules and 
143.14  safety standards stated at the time the work is done in the then 
143.15  most recently published edition of the National Electrical Code 
143.16  as adopted by the National Fire Protection Association, Inc. and 
143.17  approved by the American National Standards Institute, and the 
143.18  National Electrical Safety Code as published by the Institute of 
143.19  Electrical and Electronics Engineers, Inc. and approved by the 
143.20  American National Standards Institute, shall be prima facie 
143.21  evidence of accepted standards of construction for safety to 
143.22  life and property; provided further, that in the event a 
143.23  Minnesota Building Code is formulated pursuant to section 
143.24  16B.61, containing approved methods of electrical construction 
143.25  for safety to life and property, compliance with said methods of 
143.26  electrical construction of said Minnesota Building Code shall 
143.27  also constitute compliance with this section, and provided 
143.28  further, that nothing herein contained shall prohibit any 
143.29  political subdivision from making and enforcing more stringent 
143.30  requirements than set forth herein and such requirements shall 
143.31  be complied with by all licensed electricians working within the 
143.32  jurisdiction of such political subdivisions.  
143.33     Sec. 75.  Minnesota Statutes 2000, section 484.50, is 
143.34  amended to read: 
143.35     484.50 [SUMMONS; PLACE OF TRIAL; ST. LOUIS COUNTY.] 
143.36     A party wishing to have an appeal from an order of the 
144.1   department of public service public utilities commission, an 
144.2   election contest, a lien foreclosure, or a civil cause or 
144.3   proceeding of a kind commenced or appealed by a party in the 
144.4   court, tried in the city of Virginia shall, in the summons, 
144.5   notice of appeal in a matter, or other jurisdictional instrument 
144.6   issued, in addition to the usual provisions, print, stamp, or 
144.7   write thereon the words, "to be tried at the city of Virginia," 
144.8   and a party wishing a matter commenced or appealed by a party in 
144.9   the court tried at the city of Hibbing shall, in the summons, 
144.10  notice of appeal in a matter, or other jurisdictional instrument 
144.11  issued, in addition to the usual provisions, print, stamp, or 
144.12  write thereon the words, "to be tried at the city of Hibbing," 
144.13  and in a case where a summons, notice of appeal in a matter, or 
144.14  other jurisdictional instrument contains a specification, the 
144.15  case shall be tried at the city of Virginia, or the city of 
144.16  Hibbing, as the case may be, unless the defendant shall have the 
144.17  place of trial fixed in the manner specified in this section. 
144.18     If the place of trial designated is not the proper place of 
144.19  trial, as specified in sections 484.44 to 484.52, the cause 
144.20  shall nevertheless be tried in a place, unless the defendant, in 
144.21  an answer in addition to the other allegations of defense, shall 
144.22  plead the location of the defendant's residence, and demand that 
144.23  the action be tried at the place of holding the court nearest 
144.24  the defendant's residence, as provided in this section; and in a 
144.25  case where the answer of the defendant pleads the place of 
144.26  residence and makes a demand of place of trial, the plaintiff, 
144.27  in reply, may admit or deny the allegations of residence, and if 
144.28  the allegations of residence are not expressly denied, the case 
144.29  shall be tried at the place demanded by the defendant, and if 
144.30  the allegations of residence are denied, the place of trial 
144.31  shall be determined by the court on motion. 
144.32     If there are several defendants, residing at different 
144.33  places in a county, the trial shall be at the place in which the 
144.34  majority of the defendants unite in demanding, or if the numbers 
144.35  are equal, at the place nearest the residence of the majority of 
144.36  the defendants. 
145.1      The venue of an action may be changed from one of these 
145.2   places to another, by order of the court, in the following cases:
145.3      (1) Upon written consent of the parties; 
145.4      (2) When it appears, on motion, that a party has been made 
145.5   a defendant for the purpose of preventing a change of venue as 
145.6   provided in this section; 
145.7      (3) When an impartial trial cannot be held in the place 
145.8   where the action is pending; or 
145.9      (4) When the convenience of witnesses and the ends of 
145.10  justice would be promoted by the change. 
145.11     Application for a change under clause (2), (3), or (4), 
145.12  shall be made by motion which shall be returnable and heard at 
145.13  the place of commencement of the action. 
145.14     Sec. 76.  [REPEALER.] 
145.15     Minnesota Statutes 2000, sections 216A.06; and 237.69, 
145.16  subdivision 3, are repealed. 
145.17     Sec. 77.  [INSTRUCTION TO REVISOR.] 
145.18     The revisor of statutes shall change the words "public 
145.19  service" to the word "commerce" in the following sections of 
145.20  Minnesota Statutes:  13.68; 13.681; 17A.04, subdivisions 6, 7, 
145.21  and 8; 17A.10, subdivision 1; 41A.09, subdivision 7; 116C.03, 
145.22  subdivision 2; 160.262, subdivision 3; 216A.085, subdivision 1; 
145.23  216B.241, subdivision 1; 237.295, subdivision 1; 237.662, 
145.24  subdivision 3; 237.70, subdivision 7; 239.05, subdivisions 6c, 
145.25  7a, 8, and 8c; 272.0211, subdivision 1; 296A.02, subdivision 1; 
145.26  308A.210, subdivisions 5 and 6; 325F.733, subdivision 7; and 
145.27  469.164, subdivision 2. 
145.28     Sec. 78.  [EFFECTIVE DATE.] 
145.29     This article is effective July 1, 2001.