1.1                          A bill for an act 
  1.2             relating to state government; modifying appropriations 
  1.3             and programs in the area of economic development and 
  1.4             jobs; transferring funds; eliminating programs; 
  1.5             amending Minnesota Statutes 2000, sections 116J.8731, 
  1.6             subdivisions 5, 7; 155A.095; 214.04, subdivision 3; 
  1.7             repealing Minnesota Statutes 2000, sections 116J.422; 
  1.8             116J.543; 116L.10; 155A.06; 268.30; 268.96. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10  Section 1.  [ECONOMIC DEVELOPMENT APPROPRIATIONS; REDUCTIONS.] 
  1.11     The dollar amounts in the columns under "APPROPRIATIONS" 
  1.12  are added to or, if shown in parentheses, are subtracted from 
  1.13  the appropriations in Laws 2001, First Special Session chapter 
  1.14  4, or other law to the specified agencies.  The appropriations 
  1.15  are from the general fund or other named fund and are available 
  1.16  for the fiscal years indicated for each purpose.  The figure 
  1.17  "2002" or "2003" means that the addition to or subtraction from 
  1.18  the appropriations listed under the figure are for the fiscal 
  1.19  year ending June 30, 2002, or June 30, 2003, respectively. 
  1.20                              SUMMARY 
  1.21                            2002          2003           TOTAL 
  1.22  TRANSFERS FROM 
  1.23  OTHER FUNDS           $(7,757,000)   $(1,607,000)   $(9,364,000) 
  1.24  APPROPRIATION      
  1.25  REDUCTIONS             (7,551,000)   (23,281,000)   (30,832,000) 
  1.26  CANCELLATIONS            (426,000)       -0-           (426,000) 
  1.27                          SUMMARY BY FUND
  1.28                            2002          2003           TOTAL
  2.1   General            $  (15,484,000)$  (18,161,000)$  (33,645,000)
  2.2   TANF Block Grant              -0-     (6,827,000)    (6,827,000)
  2.3   Special Revenue                                                
  2.4   Fund                     (250,000)       100,000       (150,000)
  2.5   TOTAL              $  (15,734,000)$  (24,888,000)$  (40,622,000)
  2.6                                              APPROPRIATIONS 
  2.7                                          Available for the Year 
  2.8                                              Ending June 30 
  2.9                                             2002         2003 
  2.10  Sec. 2.  TRADE AND ECONOMIC
  2.11  DEVELOPMENT
  2.12  Subdivision 1.  Total
  2.13  Appropriation                     $   (8,539,000)$   (9,508,000)
  2.14                Summary by Fund
  2.15  General              (8,539,000)   (4,508,000)
  2.16  TANF Block Grant            -0-    (6,000,000)
  2.17  Special                                      
  2.18  Revenue Fund                -0-     1,000,000
  2.19  Subd. 2.  Business and Community
  2.20  Development                           (7,792,000)    (1,667,000)
  2.21                Summary by Fund
  2.22  General              (7,792,000)   (2,667,000)
  2.23  Special
  2.24  Revenue Fund                -0-     1,000,000
  2.25  Subd. 3.  Minnesota Trade
  2.26  Office                                   (73,000)      (270,000)
  2.27  All special revenue fund accounts for 
  2.28  the World Trade Conference Center in 
  2.29  the Trade Office shall cancel and 
  2.30  transfer to the general fund. 
  2.31  Subd. 4.  Workforce
  2.32  Development                                  -0-     (6,635,000)
  2.33                Summary by Fund
  2.34  General                     -0-      (635,000)
  2.35  TANF Block Grant            -0-    (6,000,000)
  2.36  Base funding for ISEEK shall be 
  2.37  $250,000 for the year beginning July 1, 
  2.38  2003. 
  2.39  Temporary assistance to needy families 
  2.40  funding for the pathways program from 
  2.41  Laws 1999, chapter 223, article 1, 
  2.42  section 2, subdivision 2, is eliminated 
  2.43  as of July 1, 2002. 
  2.44  Subd. 5.  Office of Tourism             (559,000)      (820,000)
  2.45  The base funding for this division 
  2.46  shall be $9,346,000 for the year 
  2.47  beginning July 1, 2003. 
  3.1   The Laws 1999, chapter 223, article 1, 
  3.2   section 2, subdivision 5, appropriation 
  3.3   to the office of tourism to fund the 
  3.4   Journey travel information system is 
  3.5   canceled. 
  3.6   Subd. 6.  Information and
  3.7   Analysis                                (100,000)      (100,000)
  3.8   The base funding for this division 
  3.9   shall be $1,493,000 for the year 
  3.10  beginning July 1, 2003. 
  3.11  Subd. 7.  Administrative Support         (15,000)       (16,000)
  3.12  The base funding for this division 
  3.13  shall be $3,720,000 for the year 
  3.14  beginning July 1, 2003. 
  3.15  Sec. 3.  MINNESOTA TECHNOLOGY,
  3.16  INC.                                         -0-     (3,052,000)
  3.17  Base funding for this agency is 
  3.18  eliminated as of July 1, 2003. 
  3.19  Sec. 4.  ECONOMIC SECURITY
  3.20  Subdivision 1.  Total
  3.21  Appropriation                         (1,726,000)    (5,975,000)
  3.22                Summary by Fund
  3.23  General              (1,726,000)   (4,148,000)
  3.24  TANF Block Grant            -0-      (827,000)
  3.25  Special                                      
  3.26  Revenue Fund                -0-    (1,000,000)
  3.27  Subd. 2.  Workforce Services          (1,726,000)    (5,975,000)
  3.28  Base funding for the youth intervention 
  3.29  program is eliminated retroactive to 
  3.30  July 1, 2001. 
  3.31  Base funding for the Minnesota youth 
  3.32  program is reduced by $2,422,000 in 
  3.33  fiscal year 2003.  The base funding for 
  3.34  this program shall be $4,954,000 
  3.35  beginning July 1, 2003. 
  3.36  Base funding for the displaced 
  3.37  homemakers program is eliminated on 
  3.38  July 1, 2002. 
  3.39  Sec. 5.  HOUSING FINANCE
  3.40  AGENCY                                (4,143,000)    (3,433,000)
  3.41                Summary by Fund
  3.42  General              (3,893,000)   (3,433,000)
  3.43  Special Revenue 
  3.44  Fund                   (250,000)      -0-                   
  3.45  $496,000 each year is reduced from 
  3.46  fiscal years 2002 and 2003 
  3.47  appropriations for the housing 
  3.48  rehabilitation and accessibility 
  3.49  program. 
  4.1   The appropriation to the homeownership 
  4.2   assistance fund program is canceled for 
  4.3   fiscal years 2002 and 2003.  Base 
  4.4   funding for this program shall be 
  4.5   $575,000 beginning July 1, 2003. 
  4.6   $2,097,000 is reduced from the fiscal 
  4.7   year 2002 appropriation and $2,037,000 
  4.8   is reduced from the fiscal year 2003 
  4.9   appropriation for the economic 
  4.10  development and housing challenge 
  4.11  program.  The appropriation reduction 
  4.12  in fiscal years 2002 and 2003 includes 
  4.13  a cancellation of $200,000 each year 
  4.14  for a grant for the CLEARCorps lead 
  4.15  hazard reduction project.  Base funding 
  4.16  for this program shall be $9,804,000 
  4.17  beginning July 1, 2003. 
  4.18  The $400,000 appropriation to the 
  4.19  manufactured home park redevelopment 
  4.20  program under Laws 2001, First Special 
  4.21  Session chapter 4, article 1, section 
  4.22  5, subdivision 13, is canceled. 
  4.23  $250,000 of the amount transferred 
  4.24  under Laws 2001, First Special Session 
  4.25  chapter 4, article 1, section 5, 
  4.26  subdivision 16, paragraph (c), to the 
  4.27  housing development fund shall cancel 
  4.28  to the general fund. 
  4.29  Sec. 6.  COMMERCE
  4.30  Subdivision 1.  Total
  4.31  Appropriation                           (179,000)      (435,000)
  4.32  Subd. 2.  Administrative
  4.33  Services                                 (44,000)      (104,000)
  4.34  Subd. 3.  Enforcement and
  4.35  Compliance                               (76,000)      (184,000)
  4.36  Subd. 4.  Weights and
  4.37  Measures                                 (59,000)      (147,000)
  4.38  Sec. 7.  LABOR AND INDUSTRY
  4.39  Subdivision 1.  Total
  4.40  Appropriation                           (324,000)      (402,000)
  4.41                Summary by Fund
  4.42  General                (324,000)     (502,000)
  4.43  Special                                      
  4.44  Revenue Fund                -0-       100,000
  4.45  Subd. 2.  Workplace Services            (110,000)        (5,000)
  4.46                Summary by Fund
  4.47  General                (110,000)     (105,000) 
  4.48  Special 
  4.49  Revenue Fund            -0-           100,000 
  4.50  This appropriation is from the 
  4.51  workforce development fund. 
  4.52  Subd. 3.  General Support               (214,000)      (397,000)
  5.1   Sec. 8.  BUREAU OF MEDIATION
  5.2   SERVICES                                 (30,000)       (30,000)
  5.3   This reduction is in the 
  5.4   labor-management cooperation grants 
  5.5   made to area labor-management 
  5.6   committees. 
  5.7   Sec. 9.  MINNESOTA HISTORICAL
  5.8   SOCIETY
  5.9   Subdivision 1.  Total
  5.10  Appropriation                           (793,000)    (2,053,000)
  5.11  Subd. 2.  Education and
  5.12  Outreach                                (444,000)    (1,150,000)
  5.13  Subd. 3.  Preservation and
  5.14  Access                                  (349,000)      (862,000)
  5.15  Subd. 4.  Fiscal Agent                   -0-            (41,000)
  5.16  Of the unspent appropriation remaining 
  5.17  in fiscal year 2002, $1,200,000 is 
  5.18  available only for onetime expenses 
  5.19  related to closing facilities and 
  5.20  permanent program reductions, including 
  5.21  layoff costs.  Funding for these 
  5.22  onetime costs is released only upon 
  5.23  submittal to and approval by the 
  5.24  commissioner of finance of a plan for 
  5.25  closing facilities and reducing 
  5.26  programs. 
  5.27     Sec. 10.  Minnesota Statutes 2000, section 116J.8731, 
  5.28  subdivision 5, is amended to read: 
  5.29     Subd. 5.  [~~GRANT~~ LOAN LIMITS.] A Minnesota investment fund 
  5.30  ~~grant~~ loan may not be approved for an amount in excess of 
  5.31  $500,000.  This limit covers all money paid to complete the same 
  5.32  project, whether paid to one or more ~~grant~~ loan recipients and 
  5.33  whether paid in one or more fiscal years.  ~~The portion of a~~ All 
  5.34  Minnesota investment fund ~~grant that exceeds $100,000~~ loans must 
  5.35  be repaid to the state when it is repaid to the local community 
  5.36  or recognized Indian tribal government by the person or entity 
  5.37  to which it was loaned by the local community or Indian tribal 
  5.38  government.  Money repaid to the state ~~must be credited to the~~ 
  5.39  ~~general fund~~ is appropriated to the commissioner of trade and 
  5.40  economic development for the purpose of making additional 
  5.41  Minnesota investment fund loans.  A ~~grant or~~ loan may not be 
  5.42  made to a person or entity for the operation or expansion of a 
  5.43  casino or a store which is used solely or principally for retail 
  5.44  sales.  Persons or entities receiving ~~grants or~~ loans must pay 
  5.45  each employee total compensation, including benefits not 
  6.1   mandated by law, that on an annualized basis is equal to at 
  6.2   least 110 percent of the federal poverty level for a family of 
  6.3   four. 
  6.4      Sec. 11.  Minnesota Statutes 2000, section 116J.8731, 
  6.5   subdivision 7, is amended to read: 
  6.6      Subd. 7.  [CONTRACTUAL OBLIGATION.] A business receiving a 
  6.7   Minnesota investment fund ~~grants~~ loan must demonstrate why the 
  6.8   ~~grant~~ loan is necessary for a project and enter into an 
  6.9   agreement with the local ~~grantor~~ community.  The agreement, 
  6.10  among other things, must obligate the recipient to pay the 
  6.11  minimum compensation set by this section and meet job creation 
  6.12  goals.  A recipient that breaches the agreement must repay 
  6.13  the ~~grant~~ loan directly to the commissioner.  ~~Repayments under~~ 
  6.14  ~~this subdivision must be deposited in the general fund.~~  The 
  6.15  Minnesota investment fund shall operate as a revolving loan fund 
  6.16  as of July 1, 2002.  Repayments to the state will be directed to 
  6.17  a special revenue fund.  Beginning July 1, 2002, all repayments 
  6.18  for contracts entered into shall be directed to the special 
  6.19  revenue fund. 
  6.20     Sec. 12.  Minnesota Statutes 2000, section 155A.095, is 
  6.21  amended to read: 
  6.22     155A.095 [INSPECTIONS.] 
  6.23     The commissioner ~~is responsible for inspecting~~ may inspect 
  6.24  salons and schools licensed pursuant to this chapter to assure 
  6.25  compliance with the requirements of this chapter.  The 
  6.26  commissioner shall direct department resources first to the 
  6.27  inspection of those licensees who fail to meet the requirements 
  6.28  of law, have indicated that they present a greater risk to the 
  6.29  public, or have otherwise, in the opinion of the commissioner, 
  6.30  demonstrated that they require a greater degree of regulatory 
  6.31  attention.  
  6.32     Sec. 13.  Minnesota Statutes 2000, section 214.04, 
  6.33  subdivision 3, is amended to read: 
  6.34     Subd. 3.  [OFFICERS; STAFF.] The executive director of each 
  6.35  health-related board and the executive secretary of each 
  6.36  non-health-related board shall be the chief administrative 
  7.1   officer for the board but shall not be a member of the board.  
  7.2   The executive director or executive secretary shall maintain the 
  7.3   records of the board, account for all fees received by it, 
  7.4   supervise and direct employees servicing the board, and perform 
  7.5   other services as directed by the board.  The executive 
  7.6   directors, executive secretaries, and other employees of the 
  7.7   following boards shall be hired by the board, and the executive 
  7.8   directors or executive secretaries shall be in the unclassified 
  7.9   civil service, except as provided in this subdivision:  
  7.10     (1) dentistry; 
  7.11     (2) medical practice; 
  7.12     (3) nursing; 
  7.13     (4) pharmacy; 
  7.14     (5) accountancy; 
  7.15     (6) architecture, engineering, land surveying, landscape 
  7.16  architecture, geoscience, and interior design; 
  7.17     (7) barber examiners; 
  7.18     ~~(8) cosmetology;~~ 
  7.19     ~~(9)~~ (8) electricity; 
  7.20     ~~(10)~~ (9) teaching; 
  7.21     ~~(11)~~ (10) peace officer standards and training; 
  7.22     ~~(12)~~ (11) social work; 
  7.23     ~~(13)~~ (12) marriage and family therapy; and 
  7.24     ~~(14)~~ (13) dietetics and nutrition practice. 
  7.25     The executive directors or executive secretaries serving 
  7.26  the boards are hired by those boards and are in the unclassified 
  7.27  civil service, except for part-time executive directors or 
  7.28  executive secretaries, who are not required to be in the 
  7.29  unclassified service.  Boards not requiring full-time executive 
  7.30  directors or executive secretaries may employ them on a 
  7.31  part-time basis.  To the extent practicable, the sharing of 
  7.32  part-time executive directors or executive secretaries by boards 
  7.33  being serviced by the same department is encouraged.  Persons 
  7.34  providing services to those boards not listed in this 
  7.35  subdivision, except executive directors or executive secretaries 
  7.36  of the boards and employees of the attorney general, are 
  8.1   classified civil service employees of the department servicing 
  8.2   the board.  To the extent practicable, the commissioner shall 
  8.3   ensure that staff services are shared by the boards being 
  8.4   serviced by the department.  If necessary, a board may hire 
  8.5   part-time, temporary employees to administer and grade 
  8.6   examinations. 
  8.7      Sec. 14.  [MINNESOTA MINERALS 21ST CENTURY FUND.] 
  8.8      Accumulated interest of the Minnesota minerals 21st century 
  8.9   fund in the amount of $5,088,000 shall cancel to the general 
  8.10  fund.  In fiscal year 2003, $1,607,000 of the interest earnings 
  8.11  shall cancel to the general fund.  In fiscal years 2004 and 
  8.12  2005, the amount of interest earnings available up to $804,000 
  8.13  shall cancel each year to the general fund. 
  8.14     Sec. 15.  [MINNESOTA WORKERS' COMPENSATION ASSIGNED RISK 
  8.15  PLAN SURPLUS TRANSFER.] 
  8.16     Subdivision 1.  [EXCESS SURPLUS.] "Excess surplus" means 
  8.17  the amount of the Minnesota workers' compensation assigned risk 
  8.18  plan funds that exceeds the amount necessary to pay all current 
  8.19  liabilities of this plan, including, but not limited to: 
  8.20     (1) administrative expenses; 
  8.21     (2) benefit claims; and 
  8.22     (3) in the event the Minnesota workers' compensation 
  8.23  assigned risk plan is dissolved under Minnesota Statutes, 
  8.24  section 79.251, subdivision 8, the amounts which would be due 
  8.25  insurers who have paid assessments to this plan.  
  8.26     Subd. 2.  [TRANSFER OF EXCESS SURPLUS FUNDS.] (a) On or 
  8.27  before July 15, 2002, the commissioner of commerce shall certify 
  8.28  to the commissioner of finance the amount of the Minnesota 
  8.29  workers' compensation assigned risk plan excess surplus.  On or 
  8.30  before July 15, 2002, the commissioner of finance and the 
  8.31  commissioner of commerce must direct the transfer of $94,900,000 
  8.32  of assets of the assigned risk plan excess surplus to the 
  8.33  general fund. 
  8.34     (b) The transfer of funds authorized by this subdivision is 
  8.35  not subject to review under Minnesota Statutes, chapter 14. 
  8.36     Sec. 16.  [REPEALER.] 
  9.1      (a) Minnesota Statutes 2000, sections 116J.543; 116L.10; 
  9.2   268.30; and 268.96, are repealed effective July 1, 2002. 
  9.3      (b) Minnesota Statutes 2000, section 155A.06, is repealed 
  9.4   effective March 1, 2002. 
  9.5      (c) Minnesota Statutes 2000, section 116J.422, is repealed 
  9.6   the day following final enactment.  The balance of the rural 
  9.7   policy and development center fund established under Minnesota 
  9.8   Statutes, section 116J.422, is canceled to the general fund.