Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 2002, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 380-S.F.No. 3431
An act relating to economic development; regulating
eligibility for unemployment compensation benefits;
providing for a special assessment for interest on
federal loans; providing for extended unemployment
compensation benefits; providing for unemployment
insurance taxes; providing extra benefits for airline
industry, Fingerhut Companies, Inc., and Farmland
Foods Company; appropriating certain federal funds for
unemployment administration; providing for workforce
development fund transfers; making housekeeping
changes related to the department of trade and
economic development; repealing certain authority
given to city of Chisago relating to annexation
arguments; prohibiting employers from charging certain
expenses to employees; regulating redevelopment
grants; allowing foster parents to take certain
leaves; providing certain youth employment to
construct early childhood program facilities;
reinstating a repealed law; providing unemployment
benefits to certain employees doing food service
contract work for school districts; requiring a study
on unemployment trust fund solvency by the
unemployment insurance advisory council; amending
Minnesota Statutes 2000, sections 48.24, subdivision
5; 116J.565, subdivision 1; 116J.58, subdivision 1;
116J.9665, subdivisions 1, 4, 6; 116M.14, subdivision
4; 116M.18, subdivisions 2, 3, 4, 4a, 5, 8, by adding
a subdivision; 119A.45; 181.9412, by adding a
subdivision; 268.051, subdivision 8; 270B.14,
subdivision 8; 298.22, subdivision 7, by adding a
subdivision; 446A.07, subdivision 4; 446A.12,
subdivision 1; Minnesota Statutes 2001 Supplement,
section 116L.17, subdivision 5; Laws 2001, First
Special Session chapter 4, article 1, section 2,
subdivision 5; proposing coding for new law in
Minnesota Statutes, chapter 181; repealing Minnesota
Statutes 2000, sections 116J.9672; 116J.9673; Laws
2001, First Special Session chapter 5, article 3,
section 88.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
UNEMPLOYMENT INSURANCE
Section 1. Minnesota Statutes 2000, section 268.051,
subdivision 8, is amended to read:
Subd. 8. [SOLVENCY SPECIAL ASSESSMENT FOR INTEREST ON
FEDERAL LOAN.] (a) If the fund balance is less than $150,000,000
on June 30 October 31 of any year, the commissioner, in
consultation with the commissioner of finance, determines that
an interest payment will be due during the following calendar
year on any loan from the federal unemployment trust fund under
section 268.194, subdivision 6, a solvency special assessment on
taxpaying employers will be in effect for the following calendar
year. The taxpaying employer shall pay quarterly a solvency The
legislature authorizes the commissioner, in consultation with
the commissioner of finance, to determine the appropriate level
of the assessment, of ten from two percent to eight percent of
the quarterly unemployment taxes due, that will be necessary to
pay the interest due on the loan.
(b) The solvency special assessment shall be placed into a
special account from which the commissioner shall pay any
interest accruing that has accrued on any loan from the federal
unemployment trust fund provided for under section 268.194,
subdivision 6. If, at the end of each calendar quarter, the
commissioner, in consultation with the commissioner of finance,
determines that the balance in this special account, including
interest earned on the special account, is more than is
necessary to pay the interest which has accrued on any loan as
of that date, or will accrue over the following calendar
quarter, the commissioner shall immediately pay to the fund the
amount in excess of that necessary to pay the interest on any
loan.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 2. Minnesota Statutes 2000, section 270B.14,
subdivision 8, is amended to read:
Subd. 8. [EXCHANGE BETWEEN DEPARTMENTS OF LABOR AND
INDUSTRY AND REVENUE.] The departments of labor and industry and
revenue may exchange information as follows:
(1) data used in determining whether a business is an
employer or a contracting agent;
(2) taxpayer identity information relating to employers and
employees for purposes of supporting tax administration and
chapter chapters 176, 177, and 181; and
(3) data to the extent provided in and for the purpose set
out in section 176.181, subdivision 8.
Sec. 3. [UNEMPLOYMENT INSURANCE; FOOD SERVICES.]
Notwithstanding the provisions of Minnesota Statutes,
section 268.085, subdivision 8, wage credits from an employer
are not subject to the provisions of Minnesota Statutes, section
268.085, subdivision 7, if those wage credits were earned by an
employee of a private employer performing work pursuant to a
contract between the employer and an elementary or secondary
school and the employment was related to food services provided
to the school by the employer. This section expires December
31, 2004.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 4. [2003 UNEMPLOYMENT INSURANCE BASE TAX RATE.]
Notwithstanding Minnesota Statutes, section 268.051,
subdivision 2, and Laws 2001, First Special Session chapter 2,
article 2, section 32, subdivision 2, the unemployment insurance
base tax rate for employers is 0.38 percent for calendar year
2003.
Sec. 5. [EXTRA UNEMPLOYMENT BENEFITS.]
Subdivision 1. [AVAILABILITY.] Extra unemployment benefits
are available to an applicant who was permanently laid off due
to lack of work if:
(1) the applicant was laid off from the Farmland Foods
Company in Freeborn county on or after July 8, 2001;
(2) the applicant was laid off by Fingerhut Companies,
Incorporated on or after January 1, 2002, and worked at one of
that employer's facilities in the St. Cloud, Eveleth, or Mora
areas; or
(3) the applicant was laid off by Northwest Airlines, Sun
Country Airlines, Mesaba Airlines, United Airlines, LSG Sky
Chefs, Air Wisconsin, American Airlines, American TransAir,
Champion Air, Chautauqua Airlines, Continental Airlines, Emery
Worldwide Air, Great Lakes Airlines, PanAm International, Skyway
Airlines, or U.S. Airways on or after September 11, 2001, and
before June 1, 2002.
Subd. 2. [PAYMENT FROM FUND; EFFECT ON EMPLOYER.] Extra
benefits under this section are payable from the fund.
Subd. 3. [ELIGIBILITY CONDITIONS.] An applicant described
in subdivision 1 is eligible to collect benefits for any week
through December 31, 2003, if:
(1) a majority of the applicant's wage credits were with
the employer responsible for the layoff described in subdivision
1;
(2) the applicant meets the eligibility requirements of
Minnesota Statutes, section 268.085;
(3) the applicant is not subject to a disqualification
under Minnesota Statutes, section 268.095;
(4) the applicant is not entitled to any regular,
additional, or extended unemployment benefits for that week and
the applicant is not entitled to receive unemployment benefits
under any other state or federal law or the law of Canada for
that week; and
(5) the applicant is enrolled in, or has within the last
two weeks successfully completed, a program that qualifies as
reemployment assistance training under the state dislocated
worker program, except that an applicant whose training is
scheduled to begin in more than 30 days may be considered to be
in training if:
(i) the applicant's chosen training program does not offer
an available start date within 30 days;
(ii) the applicant is scheduled to begin training on the
earliest available start date for the chosen training program;
and
(iii) the applicant is scheduled to begin training in no
more than 60 days.
If an applicant qualifies for a new regular benefit account
at any time after exhausting regular unemployment benefits as a
result of the layoff under subdivision 1, the applicant must
apply for and exhaust entitlement to those new regular or any
other type of unemployment benefits under any state or federal
law.
Subd. 4. [WEEKLY AMOUNT OF EXTRA BENEFITS.] The weekly
unemployment extra benefits amount available to an applicant
under this section is the same as the applicant's regular weekly
benefit amount on the benefit account established as a result of
the layoff under subdivision 1.
Subd. 5. [MAXIMUM AMOUNT OF EXTRA UNEMPLOYMENT
BENEFITS.] The maximum amount of extra unemployment benefits
available is 13 times the applicant's weekly extra unemployment
benefit amount.
Subd. 6. [PROGRAM EXPIRATION.] This extra unemployment
benefit program expires December 31, 2003. No extra
unemployment benefits shall be paid under this section after the
expiration of this program.
Subd. 7. [EFFECTIVE DATE.] This section is effective the
day following final enactment and is effective retroactive to
June 1, 2001.
Sec. 6. [FINDINGS.]
The legislature finds that the extra benefits provided to
workers in this act are appropriate because the affected
employees or their employers meet one of the following criteria:
(a) Benefit extensions may be appropriate where:
(1) taking into consideration the effect of the layoff
affecting the applicant, the unemployment rate in the
applicant's county of employment is higher than the statewide
average rate of unemployment;
(2) the employer involved in the layoff has permanently
ceased operations at the location where the employee worked;
(3) the community or communities in which the employees
worked is disproportionately affected by the layoff; and
(4) the community or communities in which the affected
employees live is in a remote location where opportunities for
reemployment are limited.
(b) Benefit extensions may be appropriate in some cases
where the affected employees were part of layoffs that resulted
from an act of war or terrorism.
Sec. 7. [PAYMENT OF SPECIAL STATE TEMPORARY EXTENDED
UNEMPLOYMENT BENEFITS.]
Subdivision 1. [ELIGIBILITY.] Special state temporary
extended unemployment benefits shall be paid to an applicant who
does not qualify for unemployment benefits under the federal
Temporary Extended Unemployment Compensation Act of 2002 because
the applicant does not meet the requirement under section
202(d)(2)(A) of that act. Special state extended unemployment
benefits shall be paid to individuals who have established a
benefit account effective on or after March 19, 2000, under the
same terms and conditions as apply to federal temporary extended
unemployment compensation. An applicant may not receive more
than a combined total of 13 times the applicant's weekly benefit
amount available under the federal Temporary Extended
Unemployment Compensation Act and this section.
Subd. 2. [PAYMENT FROM THE FUND; EFFECT ON
EMPLOYER.] Special state temporary extended unemployment
benefits shall be paid from the Minnesota unemployment insurance
program trust fund. Special state temporary extended
unemployment benefits paid shall not be used in computing the
future unemployment tax rate of a taxpaying employer nor charged
to the reimbursing account of a government or nonprofit employer.
Subd. 3. [EXPIRATION.] This program expires December 28,
2002. No payments under this section shall be paid for any week
after the expiration date.
[EFFECTIVE DATE.] This section is effective the day
following final enactment and is retroactive to March 10, 2002.
Sec. 8. [ADVISORY COUNCIL REPORT TRUST FUND SOLVENCY.]
The unemployment insurance advisory council shall present
to the legislature, by January 15, 2003, a report, including
proposals for any legislation, on the long-term solvency of the
Minnesota unemployment insurance program trust fund.
Sec. 9. [REED ACT FEDERAL FUNDS APPROPRIATION.]
$12,000,000 of the approximately $163,000,000 of federal
"Reed Act" money transferred to the state of Minnesota on March
13, 2002, pursuant to section 209 of the Temporary Extended
Unemployment Compensation Act of 2002, is appropriated from the
unemployment insurance program trust fund to the commissioner of
economic security for unemployment insurance program
administration. The amount appropriated must be transferred to
the appropriate account used to pay unemployment insurance
program administration costs.
[EFFECTIVE DATE.] This section is effective July 1, 2002.
Sec. 10. [WORKFORCE DEVELOPMENT FUND TRANSFERS.]
Notwithstanding Laws 2001, First Special Session chapter 4,
article 2, sections 31 and 32, the amount actually collected in
calendar years 2002 and 2003, to a maximum of $12,000,000, net
of collection costs, and otherwise required to be deposited in
the unemployment insurance technology initiative account by
those sections shall be deposited into the workforce development
fund created under Minnesota Statutes, section 268.022.
[EFFECTIVE DATE.] This section is effective the day
following final enactment and retroactive to January 1, 2002.
Sec. 11. [TRANSFERS.]
(a) On or before July 15, 2002, the commissioner of finance
shall transfer $89,000 from the general fund to the workforce
development fund.
(b) After July 16, 2002, but on or before July 15, 2003,
the commissioner of finance shall transfer $1,069,000 from the
general fund to the workforce development fund.
(c) After July 16, 2003, but on or before July 15, 2004,
the commissioner of finance shall transfer $1,069,000 from the
general fund to the workforce development fund.
ARTICLE 2
TRADE AND ECONOMIC DEVELOPMENT
Section 1. Minnesota Statutes 2000, section 48.24,
subdivision 5, is amended to read:
Subd. 5. Loans or obligations shall not be subject under
this section to any limitation based upon such capital and
surplus to the extent that they are secured or covered by
guarantees, or by commitments or agreements to take over or to
purchase the same, made by:
(1) the commissioner of agriculture on the purchase of
agricultural land;
(2) any Federal Reserve bank;
(3) the United States or any department, bureau, board,
commission, or establishment of the United States, including any
corporation wholly owned directly or indirectly by the United
States;
(4) the Minnesota energy and economic development
authority; or
(5) the Minnesota export finance authority; or
(6) a municipality or political subdivision within
Minnesota to the extent that the guarantee or collateral is a
valid and enforceable general obligation of that political body.
Sec. 2. Minnesota Statutes 2000, section 116J.58,
subdivision 1, is amended to read:
Subdivision 1. [ENUMERATION.] The commissioner shall:
(1) investigate, study, and undertake ways and means of
promoting and encouraging the prosperous development and
protection of the legitimate interest and welfare of Minnesota
business, industry, and commerce, within and outside the state;
(2) locate markets for manufacturers and processors and aid
merchants in locating and contacting markets;
(3) investigate and study conditions affecting Minnesota
business, industry, and commerce and collect and disseminate
information, and engage in technical studies, scientific
investigations, and statistical research and educational
activities necessary or useful for the proper execution of the
powers and duties of the commissioner in promoting and
developing Minnesota business, industry, and commerce, both
within and outside the state;
(4) plan and develop an effective business information
service both for the direct assistance of business and industry
of the state and for the encouragement of business and industry
outside the state to use economic facilities within the state;
(5) compile, collect, and develop periodically, or
otherwise make available, information relating to current
business conditions;
(6) conduct or encourage research designed to further new
and more extensive uses of the natural and other resources of
the state and designed to develop new products and industrial
processes;
(7) study trends and developments in the industries of the
state and analyze the reasons underlying the trends; study costs
and other factors affecting successful operation of businesses
within the state; and make recommendations regarding
circumstances promoting or hampering business and industrial
development;
(8) serve as a clearing house for business and industrial
problems of the state; and advise small business enterprises
regarding improved methods of accounting and bookkeeping;
(9) cooperate with interstate commissions engaged in
formulating and promoting the adoption of interstate compacts
and agreements helpful to business, industry, and commerce;
(10) cooperate with other state departments, and with
boards, commissions, and other state agencies, in the
preparation and coordination of plans and policies for the
development of the state and for the use and conservation of its
resources insofar as the use, conservation, and development may
be appropriately directed or influenced by a state agency;
(11) assemble and coordinate information relative to the
status, scope, cost, and employment possibilities and the
availability of materials, equipment, and labor in connection
with public works projects, state, county, and municipal;
recommend limitations on the public works; gather current
progress information with reference to public and private works
projects of the state and its political subdivisions with
reference to conditions of employment; inquire into and report
to the governor, when requested by the governor, with respect to
any program of public state improvements and the financing
thereof; and request and obtain information from other state
departments or agencies as may be needed properly to report
thereon;
(12) study changes in population and current trends and
prepare plans and suggest policies for the development and
conservation of the resources of the state;
(13) confer and cooperate with the executive, legislative,
or planning authorities of the United States and neighboring
states and provinces and of the counties and municipalities of
such neighboring states, for the purpose of bringing about a
coordination between the development of such neighboring
provinces, states, counties, and municipalities and the
development of this state;
(14) generally, gather, compile, and make available
statistical information relating to business, trade, commerce,
industry, transportation, communication, natural resources, and
other like subjects in this state, with authority to call upon
other departments of the state for statistical data and results
obtained by them and to arrange and compile that statistical
information in a manner that seems wise;
(15) prepare an annual report to the legislature estimating
and, to the extent possible, describing the number of Minnesota
companies which have left the state or moved to surrounding
states or other countries. The report should include an
estimate of the number of jobs lost by these moves, an estimate
of the total employment payroll, average hourly wage of those
jobs lost and those created in the new location, and to the
extent possible, the reasons for each company moving out of
state, if known;
(16) publish documents and annually convene regional
meetings to inform businesses, local government units,
assistance providers, and other interested persons of changes in
state and federal law related to economic development;
(17) (16) annually convene conferences of providers of
economic development related financial and technical assistance
for the purposes of exchanging information on economic
development assistance, coordinating economic development
activities, and formulating economic development strategies;
(18) (17) provide business with information on the economic
benefits of energy conservation and on the availability of
energy conservation assistance; and
(19) (18) prepare, as part of biennial budget process,
performance measures for each business loan or grant program
within the jurisdiction of the commissioner. Measures would
include source of funds for each program, numbers of jobs
proposed or promised at the time of application and the number
of jobs created, estimated number of jobs retained, the average
salary and benefits for the jobs resulting from the program, and
the number of projects approved.
Sec. 3. Minnesota Statutes 2000, section 116J.9665,
subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] For purposes of this
section, the following terms have the meanings given them:
(1) "Conference and service center" means the approximately
20,000 square feet of space on the third and fourth floors of
the Minnesota world trade center that the state of Minnesota has
the right to possess, occupy, and use subject to the terms and
conditions of the development agreement.
(2) "Development agreement" means the agreement entered
into by and between the world trade center board, as agent of
the state of Minnesota, and Oxford Development Minnesota, Inc.
dated July 27, 1984, and the amendments to that agreement, for
development and construction of a world trade center at a
designated site in Minnesota.
(3) (2) "Minnesota world trade center" means the facility
constructed in accordance with the development agreement or
other facilities meeting the membership requirements of the
World Trade Centers Association.
Sec. 4. Minnesota Statutes 2000, section 116J.9665,
subdivision 4, is amended to read:
Subd. 4. [DUTIES.] The commissioner shall:
(1) promote and market the Minnesota world trade center and
membership in the World Trade Centers Association;
(2) sponsor conferences or other promotional events in the
conference and service center;
(3) sponsor, develop, and conduct educational programs
related to international trade;
(4) (3) establish and maintain an office in the Minnesota
world trade center; and
(5) (4) not duplicate programs or services provided by the
commissioner of agriculture.
Sec. 5. Minnesota Statutes 2000, section 116J.9665,
subdivision 6, is amended to read:
Subd. 6. [WORLD TRADE CENTER ACCOUNT.] The world trade
center account is in the special revenue fund. All money
received from the use of the conference and service center or
appropriated under this section must be deposited in the
account. Money in the account including interest earned is
appropriated to the commissioner and must be used exclusively
for the purposes of this section.
Sec. 6. Minnesota Statutes 2001 Supplement, section
116L.17, subdivision 5, is amended to read:
Subd. 5. [COST LIMITATIONS.] (a) Funds allocated to a
grantee are subject to the following cost limitations:
(1) no more than ten percent may be allocated for
administration;
(2) at least 50 percent must be allocated for training
assistance as provided in subdivision 4, clause (2); and
(3) no more than 15 percent may be allocated for support
services as provided in subdivision 4, clause (3).
(b) A waiver of the training assistance minimum in clause
(2) may be sought, but no waiver shall allow less than 30
percent of the grant to be spent on training assistance. A
waiver of the support services maximum in clause (3) may be
sought, but no waiver shall allow more than 20 percent of the
grant to be spent on support services. A waiver may be granted
below the minimum and above the maximum otherwise allowed by
this paragraph if funds other than state funds appropriated for
the dislocated worker program are used to fund training
assistance.
Sec. 7. Minnesota Statutes 2000, section 116M.14,
subdivision 4, is amended to read:
Subd. 4. [LOW-INCOME AREA.] "Low-income area" means
Minneapolis, St. Paul, and inner ring suburbs as defined by the
metropolitan council that had a median household income below
$31,000 as reported in the 1990 census those cities in the
metropolitan area as defined in section 473.121, subdivision 2,
that have an average income that is below 60 percent of the
median income for a four-person family as of the latest report
by the United States Census Bureau.
Sec. 8. Minnesota Statutes 2000, section 116M.18,
subdivision 2, is amended to read:
Subd. 2. [CHALLENGE GRANT ELIGIBILITY; NONPROFIT
CORPORATION.] The board may enter into agreements with nonprofit
corporations to fund and guarantee loans the nonprofit
corporation makes in low-income areas under subdivision 4. A
corporation must demonstrate that:
(1) its board of directors includes citizens experienced in
development, minority business enterprises, and creating jobs in
low-income areas;
(2) it has the technical skills to analyze projects;
(3) it is familiar with other available public and private
funding sources and economic development programs;
(4) it can initiate and implement economic development
projects;
(5) it can establish and administer a revolving loan
account; and
(6) it can work with job referral networks which assist
minority and other persons in low-income areas.
Sec. 9. Minnesota Statutes 2000, section 116M.18,
subdivision 3, is amended to read:
Subd. 3. [REVOLVING LOAN FUND.] (a) The board shall
establish a revolving loan fund to make grants to nonprofit
corporations for the purpose of making loans and loan guarantees
to new and expanding businesses in a low-income area to promote
minority business enterprises and job creation for minority and
other persons in low-income areas.
(b) Eligible business enterprises include, but are not
limited to, technologically innovative industries, value-added
manufacturing, and information industries. Loan applications
given preliminary approval by the nonprofit corporation must be
forwarded to the board for approval. The commissioner must give
final approval for each loan or loan guarantee made by the
nonprofit corporation. The amount of a grant the state funds
contributed to any loan or loan guarantee may not exceed 50
percent of each loan. The amount of nonstate money must equal
at least 50 percent for each loan.
Sec. 10. Minnesota Statutes 2000, section 116M.18,
subdivision 4, is amended to read:
Subd. 4. [BUSINESS LOAN CRITERIA.] (a) The criteria in
this subdivision apply to loans made or guaranteed by nonprofit
corporations under the urban challenge grant program.
(b) Loans or guarantees must be made to businesses that are
not likely to undertake a project for which loans are sought
without assistance from the urban challenge grant program.
(c) A loan or guarantee must be used for a project designed
to benefit persons in low-income areas through the creation of
job or business opportunities for them. Priority must be given
for loans to the lowest income areas.
(d) The minimum state contribution to a loan or guarantee
is $5,000 and the maximum is $150,000.
(e) A loan The state contribution must be matched by at
least an equal amount of new private investment.
(f) A loan may not be used for a retail development project.
(g) The business must agree to work with job referral
networks that focus on minority applicants from low-income areas.
Sec. 11. Minnesota Statutes 2000, section 116M.18,
subdivision 4a, is amended to read:
Subd. 4a. [MICROENTERPRISE LOAN.] Urban challenge grants
may be used to make microenterprise loans to small, beginning
businesses, including a sole proprietorship. Microenterprise
loans are subject to this section except that:
(1) they may also be made to qualified retail businesses;
(2) they may be made for a minimum of $1,000 and a maximum
of $10,000 $25,000; and
(3) they do not require a match.
Sec. 12. Minnesota Statutes 2000, section 116M.18,
subdivision 5, is amended to read:
Subd. 5. [REVOLVING FUND ADMINISTRATION; RULES.] (a) The
board shall establish a minimum interest rate for loans or
guarantees to ensure that necessary loan administration costs
are covered.
(b) Loan repayment amounts equal to one-half of the
principal and interest must be deposited in a revolving fund
created by the board for challenge grants. The remaining amount
of the loan repayment may be deposited in a revolving loan fund
created by the nonprofit corporation originating the loan being
repaid for further distribution, consistent with the loan
criteria specified in subdivision 4.
(c) Administrative expenses of the board and nonprofit
corporations with whom the board enters into agreements under
subdivision 2, including expenses incurred by a nonprofit
corporation in providing financial, technical, managerial, and
marketing assistance to a business enterprise receiving a loan
under subdivision 4, may be paid out of the interest earned on
loans and out of interest earned on money invested by the state
board of investment under section 116M.16, subdivision 2, as may
be provided by the board.
Sec. 13. Minnesota Statutes 2000, section 116M.18, is
amended by adding a subdivision to read:
Subd. 6a. [NONPROFIT CORPORATION LOANS.] The board may
make loans to a nonprofit corporation with which it has entered
into an agreement under subdivision 1. These loans must be used
to support a new or expanding business. This support may
include such forms of financing as the sale of goods to the
business on installment or deferred payments, lease purchase
agreements, or royalty investments in the business. The
nonprofit corporation must provide at least an equal match to
the loan received by the board. The maximum loan available to
the nonprofit corporation under this subdivision is $50,000.
Loans made to the nonprofit corporation under this subdivision
may be made without interest. Repayments made by the nonprofit
corporation must be deposited in the revolving fund created for
urban initiative grants.
Sec. 14. Minnesota Statutes 2000, section 116M.18,
subdivision 8, is amended to read:
Subd. 8. [REPORTING REQUIREMENTS.] A nonprofit corporation
that receives a challenge grant shall:
(1) submit an annual report to the board by September 30 of
each year that includes a description of projects supported by
the urban challenge grant program, an account of loans made
during the calendar year, the program's impact on minority
business enterprises and job creation for minority persons and
persons in low-income areas, the source and amount of money
collected and distributed by the urban challenge grant program,
the program's assets and liabilities, and an explanation of
administrative expenses; and
(2) provide for an independent annual audit to be performed
in accordance with generally accepted accounting practices and
auditing standards and submit a copy of each annual audit report
to the board.
Sec. 15. Minnesota Statutes 2000, section 298.22,
subdivision 7, is amended to read:
Subd. 7. [GIANTS RIDGE RECREATION AREA PROJECT AREA
DEVELOPMENT AUTHORITY.] (a) In addition to the other powers
granted in this section and other law and notwithstanding any
limitations contained in subdivision 5, the commissioner, for
purposes of fostering economic development and tourism within
the Giants Ridge recreation area or the Ironworld Discovery
Center area, may spend any money made available to the agency
under section 298.28 to acquire real or personal property or
interests therein by gift, purchase, or lease and may convey by
lease, sale, or other means of conveyance or commitment any or
all of those property interests acquired owned or administered
by the commissioner within such areas.
(b) In furtherance of development of the Giants Ridge
recreation area or the Ironworld Discovery Center area, the
commissioner may establish and participate in charitable
foundations and nonprofit corporations, including a corporation
within the meaning of section 317A.011, subdivision 6.
(c) The term "Giants Ridge recreation area" refers to an
economic development project area established by the
commissioner in furtherance of the powers delegated in this
section within St. Louis county in the western portions of the
town of White and in the eastern portion of the westerly,
adjacent, unorganized township.
(d) The term "Ironworld Discovery Center area" refers to an
economic development and tourism promotion project area
established by the commissioner in furtherance of the powers
delegated in this section within St. Louis county in the south
portion of the town of Balkan.
Sec. 16. Minnesota Statutes 2000, section 298.22, is
amended by adding a subdivision to read:
Subd. 9. [ECONOMIC DEVELOPMENT AND TRADE PROMOTION.] In
the promotion of tourism, trade, and economic development, the
commissioner may expend money made available to the agency under
section 298.28 in the same manner as private persons, firms,
corporations, and associations make expenditures for these
purposes. An expenditure for food, lodging, or travel is not
governed by the travel rules of the commissioner of employee
relations.
Sec. 17. Minnesota Statutes 2000, section 446A.07,
subdivision 4, is amended to read:
Subd. 4. [INTENDED USE PLAN.] (a) The pollution control
agency public facilities authority shall annually prepare and
submit to the United States Environmental Protection Agency an
intended use plan. The plan must identify the intended uses of
the amounts available to the water pollution control revolving
fund, including a list of wastewater treatment and storm water
projects and all other eligible activities to be funded during
the fiscal year. Information regarding eligible activities must
be submitted to the pollution control agency by the appropriate
state agency or department within 30 days of written
notification by the pollution control agency.
(b) To be eligible for placement on the intended use plan:
(1) a project must be listed on the pollution control
agency's project priority list;
(2) the applicant must submit a written request to the
public facilities authority, including a brief description of
the project, a project cost estimate and the requested loan
amount, and a proposed project schedule; and
(3) for a construction loan, the project must have a
facility plan approved by the pollution control agency.
(c) The pollution control agency shall annually provide to
the public facilities authority its project priority list of
wastewater and storm water projects to be considered for funding.
The pollution control agency public facilities authority may not
submit the plan until it has received the review and comment of
the authority pollution control agency or until 30 days have
elapsed since the plan was submitted to the authority pollution
control agency, whichever occurs first. In addition, the public
facilities authority shall offer municipalities seeking
placement on the intended use plan an opportunity to review and
comment on the plan before it is adopted. The plan may be
amended to add additional projects for consideration for funding
as it determines funds are available and additional projects are
able to proceed.
Sec. 18. Minnesota Statutes 2000, section 446A.12,
subdivision 1, is amended to read:
Subdivision 1. [BONDING AUTHORITY.] The authority may
issue negotiable bonds in a principal amount that the authority
determines necessary to provide sufficient funds for achieving
its purposes, including the making of loans and purchase of
securities, the payment of interest on bonds of the authority,
the establishment of reserves to secure its bonds, the payment
of fees to a third party providing credit enhancement, and the
payment of all other expenditures of the authority incident to
and necessary or convenient to carry out its corporate purposes
and powers, but not including the making of grants. Bonds of
the authority may be issued as bonds or notes or in any other
form authorized by law. The principal amount of bonds issued
and outstanding under this section at any time may not exceed
$850,000,000 $1,000,000,000, excluding bonds for which refunding
bonds or crossover refunding bonds have been issued.
Sec. 19. Laws 2001, First Special Session chapter 4,
article 1, section 2, subdivision 5, is amended to read:
Subd. 5. Office of Tourism
10,219,000 10,111,000
To develop maximum private sector
involvement in tourism, $3,500,000 the
first year and $3,500,000 the second
year of the amounts appropriated for
marketing activities are contingent on
receipt of an equal contribution from
nonstate sources that have been
certified by the commissioner. Up to
one-half of the match may be given in
in-kind contributions.
In order to maximize marketing grant
benefits, the commissioner must give
priority for joint venture marketing
grants to organizations with year-round
sustained tourism activities. For
programs and projects submitted, the
commissioner must give priority to
those that encompass two or more areas
or that attract nonresident travelers
to the state.
If an appropriation for either year for
grants is not sufficient, the
appropriation for the other year is
available for it.
The commissioner may use grant dollars
or the value of in-kind services to
provide the state contribution for the
partnership program.
Any unexpended money from general fund
appropriations made under this
subdivision does not cancel but must be
placed in a special advertising account
for use by the office of tourism to
purchase additional media.
Of this amount, $50,000 the first year
is for a one-time grant to the
Mississippi River parkway commission to
support the increased promotion of
tourism along the Great River Road.
$829,000 the first year and $829,000
the second year are for the Minnesota
film board. $329,000 of this
appropriation in each year is available
only upon receipt by the board of $1 in
matching contributions of money or
in-kind from nonstate sources for every
$3 provided by this appropriation. Of
this amount, $500,000 the first year
and $500,000 the second year are for
grants to the Minnesota film board for
a film production jobs fund to
stimulate film production in
Minnesota. This appropriation is to
reimburse film and television producers
for up to ten percent of the documented
wages and cost of services that they
paid to Minnesotans for film and
television production after January 1,
2001.
$150,000 the first year is for
partnerships with local tourism
interests to operate travel information
centers. This is a one-time
appropriation. This appropriation is
available until spent.
Sec. 20. [REINSTATEMENT OF LAW.]
Notwithstanding its repeal by Laws 2001, First Special
Session chapter 4, article 2, section 41, Minnesota Statutes
2000, section 268.976, as amended by Laws 2001, chapter 175,
section 50, is revived.
Sec. 21. [REPEALER.]
(a) Minnesota Statutes 2000, sections 116J.9672; and
116J.9673, are repealed.
(b) Laws 2001, First Special Session chapter 5, article 3,
section 88, is repealed.
[EFFECTIVE DATE.] Paragraph (b) is effective July 1, 2002.
ARTICLE 3
BACKGROUND CHECKS
Section 1. [181.645] [EXPENSES FOR BACKGROUND CHECKS,
TESTING, AND ORIENTATION.]
Except as provided by section 123B.03 or as otherwise
specifically provided by law, an employer, as defined in section
181.931, or a prospective employer may not require an employee
or prospective employee to pay for expenses incurred in criminal
or background checks, credit checks, or orientation. An
employer or prospective employer may not require an employee or
prospective employee to pay for the expenses of training or
testing that is required by federal or state law or is required
by the employer for the employee to maintain the employee's
current position, unless the training or testing is required to
obtain or maintain a license, registration, or certification for
the employee or prospective employee.
ARTICLE 4
REDEVELOPMENT GRANTS
Section 1. Minnesota Statutes 2000, section 116J.565,
subdivision 1, is amended to read:
Subdivision 1. [CHARACTERISTICS.] (a) If applications for
grants exceed the available appropriations, grants shall be made
for sites that, in the commissioner's judgment, provide the
highest return in public benefits for the public costs
incurred. In making this judgment, the commissioner shall give
priority to redevelopment projects with one or more of the
following characteristics:
(1) the need for redevelopment in conjunction with
contamination remediation needs;
(2) the redevelopment project meets current tax increment
financing requirements for a redevelopment district and tax
increments will contribute to the project;
(3) the redevelopment potential within the municipality;
(4) proximity to public transit if located in the
metropolitan area; and
(5) multijurisdictional projects that take into account the
need for affordable housing, transportation, and environmental
impact.
(b) The factors in paragraph (a), clauses (1) to (5), are
not listed in a rank order of priority; rather the commissioner
may weigh each factor, depending upon the facts and
circumstances, as the commissioner considers appropriate. The
commissioner may consider other factors that affect the net
return of public benefits for completion of the redevelopment
plan. The commissioner, notwithstanding the listing of
priorities and the goal of maximizing the return of public
benefits, shall make grants that distribute available money to
sites both within and outside of the metropolitan area. The
commissioner shall provide a written statement of the supporting
reasons for each grant. Unless sufficient applications are not
received within the first nine months of a fiscal year for
qualifying sites outside of the metropolitan area, at least 25
50 percent of the money provided as grants in a fiscal year must
be made for sites located outside of the metropolitan area. The
commissioner shall consult with the metropolitan council about
metropolitan area grants.
Sec. 2. [BROWNFIELD SITE; ACQUISITION.]
Funds in the redevelopment accounts created in Minnesota
Statutes, section 116J.561, and allocated for sites within the
metropolitan area may be used for the purchase of a brownfield
site for a facility to house the department of military affairs'
training and community center.
ARTICLE 5
SCHOOL CONFERENCE AND ACTIVITY LEAVE
Section 1. Minnesota Statutes 2000, section 181.9412, is
amended by adding a subdivision to read:
Subd. 1a. [FOSTER CHILD.] For the purpose of this section,
"child" includes a foster child.
ARTICLE 6
YOUTH EMPLOYMENT
Section 1. Minnesota Statutes 2000, section 119A.45, is
amended to read:
119A.45 [EARLY CHILDHOOD LEARNING AND CHILD PROTECTION
FACILITIES.]
The commissioner may make grants to state agencies and
political subdivisions to construct or rehabilitate facilities
for early childhood programs, with priority to centers in
counties or municipalities with the highest percentage of
children living in poverty. The commissioner may also make
grants to state agencies and political subdivisions to construct
or rehabilitate facilities for crisis nurseries or parenting
time centers. The facilities must be owned by the state or a
political subdivision, but may be leased under section 16A.695
to organizations that operate the programs. The commissioner
must prescribe the terms and conditions of the leases. A grant
for an individual facility must not exceed $200,000 for each
program that is housed in the facility, up to a maximum of
$500,000 for a facility that houses three programs or more.
Programs include Head Start, early childhood and family
education programs, and other early childhood intervention
programs. The commissioner must give priority to grants that
involve collaboration among sponsors of programs under this
section and may give priority to projects that collaborate with
child care providers, including all-day and school-age child
care programs, special needs care, sick child care,
nontraditional hour care, and programs that include services to
refugee and immigrant families. The commissioner may give
priority to grants for programs that will increase their child
care workers' wages as a result of the grant. At least 25
percent of the amounts appropriated for these grants up to
$50,000 must If there is work that is appropriate for
youthbuild, as mutually agreed upon by the grantee and the local
youthbuild program, considering safety and skills needed, and if
it is demonstrated by youthbuild that using youthbuild will not
increase the overall cost of the project, then priority must be
given to grants for programs that utilize youthbuild under
sections 268.361 to 268.366 or other youth employment and
training programs for at least 25 percent of each grant awarded
or $50,000, whichever is less, of the labor portion of the
construction. Eligible programs must consult with appropriate
labor organizations to deliver education and training. State
appropriations must be matched on a 50 percent basis with
nonstate funds. The matching requirement must apply programwide
and not to individual grants.
ARTICLE 7
COMPETITIVE BIDDING FOR UTILITIES
Section 1. [IDENTIFICATION AND EVALUATION; COMPETITIVE
BIDDING CRITERIA.]
The commissioner of commerce shall identify and evaluate
various criteria that could be used by a utility in evaluating
and selecting bids submitted in a competitive bidding process
established under Minnesota Statutes, section 216B.2422,
subdivision 5.
To assist in the evaluation, the commissioner shall convene
a series of forums at which input from citizens and stakeholders
can be solicited. The commissioner shall present this
evaluation in a report to the house and senate policy and
finance committees with jurisdiction over energy regulatory
issues and agencies by January 15, 2003.
Presented to the governor May 17, 2002
Signed by the governor May 21, 2002, 3:05 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes