1.1                          A bill for an act 
  1.2             relating to housing; creating an affordable housing 
  1.3             endowment fund using tobacco settlement payments; 
  1.4             allocating a portion of mortgage and deed tax payments 
  1.5             to housing purposes; exempting certain housing 
  1.6             construction material purchases from the sales tax; 
  1.7             appropriating money; amending Minnesota Statutes 1998, 
  1.8             sections 287.12; 287.21, subdivision 2; and 297A.25, 
  1.9             by adding a subdivision; proposing coding for new law 
  1.10            in Minnesota Statutes, chapter 462A. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 1998, section 287.12, is 
  1.13  amended to read: 
  1.14     287.12 [TAXES, HOW APPORTIONED.] 
  1.15     (a) Except as provided in paragraph (b), all taxes paid to 
  1.16  the county treasurer under the provisions of sections 287.01 to 
  1.17  287.12 shall be apportioned, 97 percent to the general fund of 
  1.18  the state, and three percent to the county revenue fund. 
  1.19     On or before the tenth day of each month the county 
  1.20  treasurer shall determine and pay to the commissioner of revenue 
  1.21  for deposit in the state treasury and credit to the general fund 
  1.22  the state's portion of the receipts from the mortgage 
  1.23  registration tax during the preceding month.  The county 
  1.24  treasurer shall provide any related reports requested by the 
  1.25  commissioner of revenue. 
  1.26     (b) Beginning with fiscal year 2000 and each fiscal year 
  1.27  thereafter, if the amount credited to the general fund under 
  1.28  paragraph (a) exceeds the amount credited to the general fund 
  2.1   under paragraph (a) for fiscal year 1998, the excess over the 
  2.2   fiscal year 1998 amount must be credited to the community 
  2.3   rehabilitation fund account in the housing development fund 
  2.4   created by section 462A.20. 
  2.5      Sec. 2.  Minnesota Statutes 1998, section 287.21, 
  2.6   subdivision 2, is amended to read: 
  2.7      Subd. 2.  [APPORTIONMENT OF PROCEEDS.] (a) Except as 
  2.8   provided in paragraph (b), the proceeds of the taxes levied and 
  2.9   collected under sections 287.21 to 287.36 shall be apportioned, 
  2.10  97 percent to the general fund of the state, and three percent 
  2.11  to the county revenue fund.  
  2.12     (b) Beginning with fiscal year 2000 and each fiscal year 
  2.13  thereafter, if the amount credited to the general fund under 
  2.14  paragraph (a) exceeds the amount credited to the general fund 
  2.15  under paragraph (a) for fiscal year 1998, the excess over the 
  2.16  fiscal year 1998 amount must be credited to the community 
  2.17  rehabilitation fund account in the housing development fund 
  2.18  created by section 462A.20. 
  2.19     Sec. 3.  Minnesota Statutes 1998, section 297A.25, is 
  2.20  amended by adding a subdivision to read: 
  2.21     Subd. 79.  [CONSTRUCTION MATERIALS; HOUSING PROJECTS AND 
  2.22  HOUSING DEVELOPMENT PROJECTS.] Purchases of materials and 
  2.23  supplies used or consumed in, and fixtures, furnishings, and 
  2.24  equipment incorporated into, the construction or improvement of 
  2.25  housing projects or housing development projects are exempt from 
  2.26  the tax imposed under this section, regardless of whether 
  2.27  purchased by the owner or a contractor, subcontractor, or 
  2.28  builder.  The tax shall be calculated and paid as if the rate in 
  2.29  section 297A.02, subdivision 1, was in effect and a refund 
  2.30  applied for in the manner prescribed in section 297A.15, 
  2.31  subdivision 7.  For purposes of this subdivision, "housing 
  2.32  project" is defined pursuant to section 469.002, subdivision 15, 
  2.33  and means the following: 
  2.34     (1) is owned by a housing and redevelopment authority 
  2.35  established under sections 469.001 to 469.047 or special law or 
  2.36  an economic development authority enabled with the powers of 
  3.1   sections 469.001 to 469.047; 
  3.2      (2) has or will receive federal low-income housing tax 
  3.3   credits and will have rents for the initial 15 years of 
  3.4   occupancy that are no more than the maximum monthly rent allowed 
  3.5   to be charged under the program; or 
  3.6      (3) has received financial assistance in the form of a loan 
  3.7   or grant from the Minnesota housing finance agency or local 
  3.8   government and a condition of the assistance is an agreement 
  3.9   regarding the maximum amount of monthly rent paid. 
  3.10     Sec. 4.  [462A.32] [AFFORDABLE HOUSING ENDOWMENT FUND.] 
  3.11     Subdivision 1.  [CREATION.] The affordable housing 
  3.12  endowment fund is created as an account in the state treasury.  
  3.13  The commissioner of finance shall credit to the fund 30 percent 
  3.14  of the proceeds received by the state in fiscal years 1999 to 
  3.15  2003 as a result of the settlement of the lawsuit styled as 
  3.16  State by Humphrey, et al. v. Philip Morris Incorporated, et al., 
  3.17  No. C1-94-8565 (Minnesota District Court, Second Judicial 
  3.18  District).  The state board of investment shall invest the fund 
  3.19  according to section 11A.24.  All earnings of the fund must be 
  3.20  credited to the fund.  Any assets remaining in the fund after 
  3.21  January 1, 2023, shall revert to the general fund.  
  3.22     Subd. 2.  [EXPENDITURES.] The assets of the fund must be 
  3.23  appropriated by law to the livable communities demonstration 
  3.24  account in the metropolitan livable communities account created 
  3.25  under section 473.251, to the housing development fund for 
  3.26  approximately equal allocation between the affordable rental 
  3.27  investment fund program and the community rehabilitation 
  3.28  program, and to the housing development fund for block grants to 
  3.29  local housing agencies for pilot projects for delivering 
  3.30  affordable housing.  The amount appropriated each year of a 
  3.31  biennium, commencing on July 1 in each odd-numbered year and 
  3.32  ending on June 30 in the next odd-numbered year, may be up to 
  3.33  five percent of the market value of the fund one year before the 
  3.34  start of the biennium. 
  3.35     Sec. 5.  [APPROPRIATION.] 
  3.36     Notwithstanding the limitation in Minnesota Statutes, 
  4.1   section 462A.32, subdivision 2, the following amounts are 
  4.2   appropriated from the affordable housing endowment fund: 
  4.3      (1) $....... for the biennium ending June 30, 2001, to the 
  4.4   livable communities demonstration account; 
  4.5      (2) $....... for the biennium ending June 30, 2001, to the 
  4.6   housing development fund in equal shares for the affordable 
  4.7   rental investment program and the community rehabilitation 
  4.8   program; and 
  4.9      (3) $....... for the biennium ending June 30, 2001, to the 
  4.10  housing development for block grants to local housing agencies 
  4.11  for pilot projects for delivering affordable housing.