1.1                          A bill for an act 
  1.2             relating to the organization and operation of state 
  1.3             government; appropriating money for economic 
  1.4             development, housing, and certain agencies of state 
  1.5             government, with certain conditions; establishing and 
  1.6             modifying certain programs; providing for regulation 
  1.7             of certain activities and practices; providing for 
  1.8             fees; requiring studies and reports; amending 
  1.9             Minnesota Statutes 1994, sections 5.14; 16B.08, 
  1.10            subdivision 7; 44A.01, subdivision 2; 97A.531, by 
  1.11            adding a subdivision; 116J.982, subdivision 3; 
  1.12            116M.18, subdivision 4, and by adding a subdivision; 
  1.13            116N.08, subdivision 5, and by adding a subdivision; 
  1.14            176.011, subdivision 7a; 176.231, by adding a 
  1.15            subdivision; 216B.2424; 237.701, subdivision 1; 
  1.16            245A.11, subdivision 2; 298.22, subdivision 2; 
  1.17            298.223, subdivision 2; 462.357, subdivision 7; 
  1.18            462A.201, subdivision 2; 462A.202, subdivisions 2 and 
  1.19            6; 462A.204, subdivision 1; 462A.205, subdivision 4; 
  1.20            462A.206, subdivisions 2 and 5; 462A.21, subdivisions 
  1.21            3b, 8b, 21, and by adding subdivisions; 469.0171; 
  1.22            504.33, subdivisions 2 and 3; 504.34, subdivisions 1 
  1.23            and 2; and 504.35; Laws 1993, chapter 369, section 9, 
  1.24            subdivisions 2 and 3; Laws 1994, chapter 643, section 
  1.25            19, subdivision 9; and Laws 1995, chapter 22, by 
  1.26            adding a section; proposing coding for new law in 
  1.27            Minnesota Statutes, chapters 176; 177; 268A; and 462A; 
  1.28            repealing Minnesota Statutes 1994, sections 97A.531, 
  1.29            subdivisions 5 and 6; 298.2211, subdivision 3a; and 
  1.30            462A.21, subdivision 8c; Laws 1990, chapter 521, 
  1.31            section 4. 
  1.32  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.33  Section 1.  [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 
  1.34     The sums shown in the columns marked "APPROPRIATIONS" are 
  1.35  appropriated from the general fund, or another named fund, to 
  1.36  the agencies and for the purposes specified in this act, to be 
  1.37  available for the fiscal years indicated for each purpose.  The 
  1.38  figures "1996" and "1997," where used in this act, mean that the 
  2.1   appropriation or appropriations listed under them are available 
  2.2   for the year ending June 30, 1996, or June 30, 1997, 
  2.3   respectively.  The term "first year" means the fiscal year 
  2.4   ending June 30, 1996, and "second year" means the fiscal year 
  2.5   ending June 30, 1997. 
  2.6                           SUMMARY BY FUND
  2.7                 1995        1996          1997           TOTAL
  2.8   General     $290,000 $186,797,000   $177,653,000   $364,450,000
  2.9   Petroleum Tank
  2.10  Cleanup                   838,000        842,000      1,680,000
  2.11  Trunk Highway             670,000        670,000      1,340,000 
  2.12  Special 
  2.13  Compensation 481,000   23,461,000     18,179,000     41,640,000
  2.14  Special Revenue         1,586,000      2,591,000      4,177,000
  2.15  TOTAL       $771,000 $213,352,000   $199,935,000   $413,287,000
  2.16                                             APPROPRIATIONS 
  2.17                                         Available for the Year 
  2.18                                             Ending June 30 
  2.19                                1995        1996         1997 
  2.20  Sec. 2.  TRADE AND
  2.21  ECONOMIC DEVELOPMENT
  2.22  Subdivision 1.  Total 
  2.23  Appropriation                         40,139,000     28,293,000
  2.24                Summary by Fund
  2.25  General              39,469,000    27,623,000
  2.26  Trunk Highway           670,000       670,000 
  2.27  The amounts that may be spent from this 
  2.28  appropriation for each program are 
  2.29  specified in the following subdivisions.
  2.30  Subd. 2.  Business and Community 
  2.31  Development
  2.32      27,186,000     15,876,000
  2.33  $50,000 the first year and $800,000 the 
  2.34  second year are for the design, 
  2.35  establishment, and implementation of an 
  2.36  electronic licensing data base. 
  2.37  $100,000 the first year and $100,000 
  2.38  the second year are for the affirmative 
  2.39  enterprise program.  The appropriation 
  2.40  is available until spent. 
  2.41  $50,000 the first year and $50,000 the 
  2.42  second year are for making grants and 
  2.43  entering contracts under Minnesota 
  2.44  Statutes, section 116J.982. 
  2.45  $379,000 the first year and $379,000 
  2.46  the second year are for the small 
  3.1   cities federal match.  
  3.2   $125,000 the first year is for a grant 
  3.3   to the Phoenix Group, Inc.  This 
  3.4   appropriation is available until June 
  3.5   30, 1997. 
  3.6   $200,000 the first year and $200,000 
  3.7   the second year are for grants to 
  3.8   Advantage Minnesota, Inc.  The funds 
  3.9   are available only if matched on at 
  3.10  least a dollar-for-dollar basis from 
  3.11  other sources.  The commissioner may 
  3.12  release funds only upon: 
  3.13  (1) certification that matching funds 
  3.14  from each participating organization 
  3.15  are available; and 
  3.16  (2) review and approval by the 
  3.17  commissioner of the proposed operations 
  3.18  plan of Advantage Minnesota, Inc. for 
  3.19  the biennium. 
  3.20  $100,000 the first year and $100,000 
  3.21  the second year are for Minnesota 
  3.22  Diversified Industries. 
  3.23  $950,000 the first year and $950,000 
  3.24  the second year are for the state's 
  3.25  match for the federal small business 
  3.26  development centers.  If funding in one 
  3.27  year is insufficient, the other year's 
  3.28  appropriation is available. 
  3.29  $700,000 the first year and $700,000 
  3.30  the second year are for the job skills 
  3.31  partnership program. 
  3.32  $150,000 the first year and $150,000 
  3.33  the second year is to the job skills 
  3.34  partnership board for a grant to the 
  3.35  city of St. Paul's employment 
  3.36  connection program with the St. Paul 
  3.37  port authority. 
  3.38  $100,000 the first year and $100,000 
  3.39  the second year are to the job skills 
  3.40  partnership board for a grant to the 
  3.41  city of Minneapolis' employment 
  3.42  connection program with the Minneapolis 
  3.43  Community Development Agency. 
  3.44  $500,000 the first year and $500,000 
  3.45  the second year are for the community 
  3.46  resources programs. 
  3.47  $10,000,000 the first year is for 
  3.48  contamination cleanup grants. 
  3.49  $2,000,000 the first year is to match 
  3.50  funds for the biomedical engineering 
  3.51  center at the University of Minnesota. 
  3.52  $190,000 the first year and $190,000 
  3.53  the second year are for WomenVenture, 
  3.54  Inc. 
  3.55  $65,000 the first year and $65,000 the 
  3.56  second year are for Metropolitan 
  3.57  Economic Development Associations, Inc. 
  4.1   Subd. 3.  Minnesota Trade Office 
  4.2        2,304,000      2,318,000
  4.3   $150,000 the first year and $150,000 
  4.4   the second year are for state 
  4.5   participation in the federal City-State 
  4.6   Leveraged Financing Program, support 
  4.7   for the international trade show 
  4.8   program, and supplement of 
  4.9   communication and reclassification 
  4.10  costs. 
  4.11  Subd. 4.  Tourism 
  4.12       8,507,000      8,267,000
  4.13                Summary by Fund
  4.14  General               7,837,000     7,597,000
  4.15  Trunk Highway           670,000       670,000
  4.16  $100,000 is for the costs of activities 
  4.17  by the commissioner of trade and 
  4.18  economic development to resolve a 
  4.19  dispute concerning fishing restrictions 
  4.20  in Ontario waters that unduly restrict 
  4.21  the rights of Minnesota residents to 
  4.22  take fish by angling in border waters.  
  4.23  The commissioner may use this 
  4.24  appropriation for (1) a grant to the 
  4.25  attorney general to study a legal 
  4.26  challenge in the courts of Ontario or 
  4.27  any other available forum to actions of 
  4.28  that province relating to fishing 
  4.29  rights of Minnesotans in border waters, 
  4.30  (2) efforts to mediate the dispute, (3) 
  4.31  seeking recourse through the mechanisms 
  4.32  of international trade agreements, or 
  4.33  (4) other actions the commissioner 
  4.34  deems necessary to achieve a 
  4.35  resolution.  This appropriation is 
  4.36  available until expended. 
  4.37  $100,000 the first year and $175,000 
  4.38  the second year are for expanded group 
  4.39  tour marketing and to host the National 
  4.40  Tour Association Convention in 
  4.41  Minnesota in 1996. 
  4.42  $335,000 in the first year and $120,000 
  4.43  in the second year are for the 
  4.44  Pathfinder interactive information 
  4.45  system. 
  4.46  To develop maximum private sector 
  4.47  involvement in tourism, $2,500,000 the 
  4.48  first year and $2,500,000 the second 
  4.49  year of the amounts appropriated for 
  4.50  marketing activities are contingent 
  4.51  upon receipt of an equal contribution 
  4.52  of nonstate sources that have been 
  4.53  certified by the commissioner.  Up to 
  4.54  one-half of the match may be given in 
  4.55  in-kind contributions.  This 
  4.56  appropriation may not be spent until 
  4.57  the money is matched.  Of this 
  4.58  appropriation, $400,000 the first year 
  4.59  and $400,000 the second year are for 
  4.60  international marketing and tourism 
  5.1   promotion to maximize international 
  5.2   tourism to Minnesota and to promote 
  5.3   Minnesota goods and services in the 
  5.4   international market place.  The office 
  5.5   of tourism shall consult with the trade 
  5.6   office in these promotional efforts.  
  5.7   The office shall report on January 1, 
  5.8   1997, to the chairs of the legislative 
  5.9   committees with jurisdiction over 
  5.10  economic development policy and finance 
  5.11  on these promotional efforts. 
  5.12  In order to maximize marketing grant 
  5.13  benefits, the commissioner must give 
  5.14  priority for joint venture marketing 
  5.15  grants to organizations with year-round 
  5.16  sustained tourism activities.  For 
  5.17  programs and projects submitted, the 
  5.18  commissioner must give priority to 
  5.19  those that encompass two or more areas 
  5.20  or that attract nonresident travelers 
  5.21  to the state. 
  5.22  $25,000 of the first year and $25,000 
  5.23  the second year are for the Lake 
  5.24  Superior Center.  
  5.25  Any unexpended money from general fund 
  5.26  appropriations made under this 
  5.27  subdivision do not cancel, but must be 
  5.28  placed in a special advertising account 
  5.29  for use by the office of tourism to 
  5.30  purchase additional media. 
  5.31  If an appropriation for either year for 
  5.32  grants is not sufficient, the 
  5.33  appropriation for the other year is 
  5.34  available for it.  
  5.35  $229,000 the first year and $229,000 
  5.36  the second year are for the Minnesota 
  5.37  film board.  This appropriation is 
  5.38  available only upon receipt by the 
  5.39  board of $1 in matching contributions 
  5.40  of money or in kind from nonstate 
  5.41  sources for every $3 provided by this 
  5.42  appropriation.  
  5.43  The commissioner may use grant dollars 
  5.44  or the value of in-kind services to 
  5.45  provide the state contribution for the 
  5.46  joint venture grant program. 
  5.47  Subd. 5.  Administration 
  5.48       2,142,000      1,832,000
  5.49  $670,000 the first year and $330,000 
  5.50  the second year are for network 
  5.51  management services and support. 
  5.52  Sec. 3.  MINNESOTA TECHNOLOGY, INC.    7,934,000      7,734,000
  5.53  $6,105,000 the first year and 
  5.54  $6,105,000 the second year are for 
  5.55  transfer from the general fund to the 
  5.56  Minnesota Technology, Inc. fund. 
  5.57  The Minnesota Technology, Inc. shall 
  5.58  augment this appropriation with 
  5.59  $100,000 each year from its reserves. 
  6.1   $75,000 the first year and $75,000 the 
  6.2   second year are for grants to Minnesota 
  6.3   Inventors Congress. 
  6.4   $1,147,000 the first year and $947,000 
  6.5   the second year are for grants to 
  6.6   Natural Resources Research Institute.  
  6.7   Of this appropriation the institute 
  6.8   shall spend $200,000 the first year as 
  6.9   follows: 
  6.10  (1) $100,000 is for a study of water 
  6.11  quality impacts and permitting 
  6.12  requirements related to peat harvesting 
  6.13  operations.  The study must include: 
  6.14  (i) a review of existing water quality 
  6.15  permitting requirements and the ability 
  6.16  of peat producers to comply with these 
  6.17  requirements; (ii) establishment and 
  6.18  monitoring of representative background 
  6.19  control and downstream sampling 
  6.20  locations at selected peat harvesting 
  6.21  operations; (iii) an evaluation of the 
  6.22  use of innovative best management 
  6.23  practices to minimize downstream water 
  6.24  quality impacts; and (iv) development 
  6.25  of a model water quality permit for 
  6.26  peat harvesting operations in this 
  6.27  state.  By October 1, 1997, the 
  6.28  institute shall report on the results 
  6.29  of the study to the chairs of the 
  6.30  senate and house environment and 
  6.31  natural resources committees.  The 
  6.32  report must include recommendations, if 
  6.33  any, for changes to existing state laws 
  6.34  and rules relating to water quality 
  6.35  permitting requirements for peat 
  6.36  harvesting operations. 
  6.37  (2) $100,000 is for a grant to Rainy 
  6.38  River community college for a study of 
  6.39  reclamation and restoration options for 
  6.40  harvested peatlands.  The grant 
  6.41  recipient must submit to the chairs of 
  6.42  the senate and house environment and 
  6.43  natural resources committees a report 
  6.44  on the study, including any 
  6.45  recommendations for changes to existing 
  6.46  laws and rules relating to reclamation 
  6.47  and restoration of harvested peatlands. 
  6.48  $88,000 the first year and $88,000 the 
  6.49  second year are for grants to Minnesota 
  6.50  Council for Quality. 
  6.51  Of this appropriation the institute 
  6.52  shall spend $200,000 the first year as 
  6.53  follows: 
  6.54  $50,000 the first year and $50,000 the 
  6.55  second year are for grants to Minnesota 
  6.56  Technology Corridor Corporation. 
  6.57  $75,000 the first year and $75,000 the 
  6.58  second year are for grants to Minnesota 
  6.59  Cold Weather Research Center. 
  6.60  Sec. 4.  WORLD TRADE CENTER CORP.        170,000 
  6.61  Sec. 5.  ECONOMIC SECURITY            50,302,000     50,452,000 
  7.1                 Summary by Fund
  7.2   General                49,052,000     48,202,000
  7.3   Special Revenue         1,250,000      2,250,000
  7.4   Subdivision 1.  Rehabilitation Services
  7.5       18,332,000     18,212,000
  7.6   $100,000 the first year and $100,000 
  7.7   the second year is for extended 
  7.8   employment program costs. 
  7.9   $100,000 the first year and $100,000 
  7.10  the second year are for centers for 
  7.11  independent living. 
  7.12  $120,000 the first year is for mentally 
  7.13  ill employment support services 
  7.14  authorized by Minnesota Statutes, 
  7.15  section 268A.13.  Of this amount 
  7.16  $50,000 is available for planning the 
  7.17  statewide reimbursement system 
  7.18  authorized by Minnesota Statutes, 
  7.19  section 268A.14. This appropriation is 
  7.20  available until June 30, 1997. 
  7.21  Subd. 2.  Services for the Blind 
  7.22       3,638,000      3,659,000
  7.23  This appropriation may be supplemented 
  7.24  by money provided by the Friends of the 
  7.25  Communication Center, for support of 
  7.26  Services for the Blind's Communication 
  7.27  Center which serves all blind and 
  7.28  visually handicapped Minnesotans.  The 
  7.29  commissioner shall report to the 
  7.30  legislature on a biennial basis the 
  7.31  money provided by the Friends of the 
  7.32  Communication Center. 
  7.33  Subd. 3.  Community-based Services 
  7.34      28,332,000     28,581,000
  7.35                Summary by Fund
  7.36  General                27,082,000     26,331,000
  7.37  Special Revenue         1,250,000      2,250,000
  7.38  $7,000,000 the first year and 
  7.39  $7,000,000 the second year are for the 
  7.40  Minnesota economic opportunity grant 
  7.41  program.  Of this appropriation the 
  7.42  commissioner may use up to 8.7 percent 
  7.43  each year for state operations. 
  7.44  $450,000 the first year and $450,000 
  7.45  the second year are for swab team 
  7.46  services under Minnesota Statutes, 
  7.47  section 268.92. 
  7.48  For the biennium ending June 30, 1997, 
  7.49  the commissioner may transfer to the 
  7.50  low-income home weatherization program 
  7.51  at least five percent of money received 
  7.52  under the low-income home energy 
  7.53  assistance block grant in each year of 
  8.1   the biennium and shall spend all of the 
  8.2   transferred money during the year of 
  8.3   the transfer or the year following the 
  8.4   transfer.  Up to 1.63 percent of the 
  8.5   transferred money may be used by the 
  8.6   commissioner for administrative 
  8.7   purposes. 
  8.8   $100,000 the first year and $100,000 
  8.9   the second year are for youth 
  8.10  intervention programs under Minnesota 
  8.11  Statutes, section 268.30, subdivisions 
  8.12  1 and 2.  Funding may be used to expand 
  8.13  existing programs to serve unmet needs 
  8.14  and to create new programs in 
  8.15  underserved areas.  In awarding these 
  8.16  new funds, the commissioner may waive 
  8.17  or modify the requirement for local 
  8.18  match when this requirement deters 
  8.19  expansion to underserved communities or 
  8.20  populations.  This appropriation is 
  8.21  available until spent. 
  8.22  $915,000 the first year and $915,000 
  8.23  the second year are for transitional 
  8.24  housing programs under Minnesota 
  8.25  Statutes, section 268.38. 
  8.26  For the biennium ending June 30, 1997, 
  8.27  no more than 1.63 percent of money 
  8.28  remaining under the low-income home 
  8.29  energy assistance program after 
  8.30  transfers to the weatherization program 
  8.31  may be used by the commissioner for 
  8.32  administrative purposes. 
  8.33  The state appropriation for the 
  8.34  temporary emergency food assistance 
  8.35  program may be used to meet the federal 
  8.36  match requirements. 
  8.37  $150,000 the first year and $150,000 
  8.38  the second year are for the displaced 
  8.39  homemaker program. 
  8.40  $3,504,000 the first year is for summer 
  8.41  youth employment programs.  Of this 
  8.42  amount for fiscal year 1996, $750,000 
  8.43  is immediately available.  Any 
  8.44  remaining balance of the immediately 
  8.45  available money is available for the 
  8.46  year in which it is appropriated. 
  8.47  Notwithstanding Minnesota Statutes, 
  8.48  section 268.022, subdivision 2, the 
  8.49  commissioner of finance shall transfer 
  8.50  to the general fund from the dedicated 
  8.51  fund $2,000,000 in the first year and 
  8.52  $2,000,000 in the second year of the 
  8.53  money collected through the special 
  8.54  assessment established in Minnesota 
  8.55  Statutes, section 268.022, subdivision 
  8.56  1. 
  8.57  Sec. 6.  HOUSING FINANCE AGENCY        22,257,000     22,107,000
  8.58  This appropriation is for transfer to 
  8.59  the housing development fund for the 
  8.60  programs specified. 
  8.61  Any state appropriations used to meet 
  9.1   match requirements under Title II of 
  9.2   the National Affordable Housing Act of 
  9.3   1990, Public Law Number 101-625, 104 
  9.4   Stat. 4079, must be repaid, to the 
  9.5   extent required by federal law, to the 
  9.6   HOME Investment Trust Fund established 
  9.7   by the federal Department of Housing 
  9.8   and Urban Development pursuant to Title 
  9.9   II of the National Affordable Housing 
  9.10  Act of 1990 for the state of Minnesota 
  9.11  or for the appropriate participating 
  9.12  jurisdiction.  State appropriations to 
  9.13  the Minnesota housing finance agency 
  9.14  may be granted by the agency to cities 
  9.15  or nonprofit organizations to the 
  9.16  extent necessary to meet match 
  9.17  requirements under Title II of the 
  9.18  National Affordable Housing Act of 
  9.19  1990, Public Law Number 101-625, 104 
  9.20  Stat. 4079, provided that other program 
  9.21  requirements are met. 
  9.22  Spending limit on cost of general 
  9.23  administration of agency programs: 
  9.24        1996           1997
  9.25      10,493,000      9,911,000
  9.26  $1,200,000 the first year and 
  9.27  $1,200,000 the second year are for a 
  9.28  rental housing assistance program for 
  9.29  persons with a mental illness or 
  9.30  families with an adult member with a 
  9.31  mental illness under Minnesota 
  9.32  Statutes, section 462A.21, subdivision 
  9.33  8c. 
  9.34  $5,493,000 the first year and 
  9.35  $5,493,000 the second year are for the 
  9.36  affordable rental investment fund 
  9.37  program.  Affordable rental investment 
  9.38  assistance includes loans, credit 
  9.39  enhancement, and coinsurance 
  9.40  participation.  Of this amount, 
  9.41  $2,000,000 each year shall be spent as 
  9.42  follows: 
  9.43  To the extent practicable, these funds 
  9.44  shall be expended 50 percent in the 
  9.45  metropolitan area, as defined in 
  9.46  Minnesota Statutes, section 473.121, 
  9.47  subdivision 2, and 50 percent in areas 
  9.48  of the state outside the metropolitan 
  9.49  area according to the following 
  9.50  procedures: 
  9.51  (a) In the area of the state outside 
  9.52  the metropolitan area, the agency must 
  9.53  work with groups in the McKnight 
  9.54  Initiative Fund regions to assist the 
  9.55  agency in identifying the affordable 
  9.56  housing needed in each region in 
  9.57  connection with economic development 
  9.58  and redevelopment efforts and in 
  9.59  establishing priorities for uses of the 
  9.60  affordable rental investment fund.  The 
  9.61  groups must include the McKnight 
  9.62  Initiative Funds, the regional 
  9.63  development commissioners, the private 
  9.64  industry councils, units of local 
 10.1   government, community action agencies, 
 10.2   the Minnesota housing partnership 
 10.3   network groups, local lenders, 
 10.4   for-profit and nonprofit developers, 
 10.5   and realtors.  In addition to 
 10.6   priorities developed by the group, the 
 10.7   agency must give a preference to 
 10.8   economically viable projects in which 
 10.9   units of local government, area 
 10.10  employers, and the private sector 
 10.11  contribute financial assistance.  
 10.12  (b) In the metropolitan area, the 
 10.13  commissioner shall collaborate with the 
 10.14  metropolitan council to identify the 
 10.15  priorities for use of the affordable 
 10.16  rental investment fund.  Funds 
 10.17  distributed in the metropolitan area 
 10.18  must be consistent with the objectives 
 10.19  of the metropolitan development guide, 
 10.20  adopted under Minnesota Statutes, 
 10.21  section 473.145.  In addition to the 
 10.22  priorities identified in conjunction 
 10.23  with the metropolitan council, the 
 10.24  agency shall give preference to 
 10.25  economically viable projects that: 
 10.26  (1) include a contribution of financial 
 10.27  resources from units of local 
 10.28  government and area employers; 
 10.29  (2) take into account the availability 
 10.30  of transportation in the community; and 
 10.31  (3) take into account the job training 
 10.32  efforts in the community. 
 10.33  $550,000 the first year and $550,000 
 10.34  the second year are for the 
 10.35  acquisition, rehabilitation, or 
 10.36  construction of transitional housing 
 10.37  units. 
 10.38  $1,750,000 the first year and 
 10.39  $1,750,000 the second year are for the 
 10.40  community rehabilitation fund program.  
 10.41  Of this amount, $250,000 each year is 
 10.42  for full cycle home ownership and 
 10.43  purchase-rehabilitation lending 
 10.44  initiatives.  The appropriation in this 
 10.45  paragraph may only be used for programs 
 10.46  located in a census tract and the 
 10.47  surrounding eight blocks, as blocks are 
 10.48  determined by the local unit of 
 10.49  government, that meet at least four of 
 10.50  the five following criteria: 
 10.51  (1) at least 70 percent of the housing 
 10.52  structures are at least 35 years old; 
 10.53  (2) at least 60 percent of the 
 10.54  single-family housing is 
 10.55  owner-occupied; 
 10.56  (3) the median value, as recorded in 
 10.57  the 1990 federal decennial census, of 
 10.58  the area's owner-occupied housing is 
 10.59  not more than 100 percent of the 
 10.60  purchase price limit for existing homes 
 10.61  eligible for purchase in the area under 
 10.62  the agency's home mortgage loan 
 11.1   program; 
 11.2   (4) the geographic area consists of 
 11.3   contiguous parcels of land; and 
 11.4   (5) between 1980 and 1990, the number 
 11.5   of owner-occupied residential 
 11.6   properties in the area declined by five 
 11.7   percent, or at least 80 percent of the 
 11.8   residential properties in the area are 
 11.9   rental properties. 
 11.10  This appropriation may be used only for 
 11.11  grants and loans for owner-occupied 
 11.12  housing.  Priority must be given for 
 11.13  property located in an area where the 
 11.14  median household income is no more than 
 11.15  one-half the median household income 
 11.16  for the area as determined by the 1990 
 11.17  federal decennial census. 
 11.18  $240,000 the first year and $240,000 
 11.19  the second year are for the capacity 
 11.20  building grant program under Minnesota 
 11.21  Statutes, section 462A.21, subdivision 
 11.22  3b.  This appropriation includes 
 11.23  $40,000 in each year for a grant to the 
 11.24  Minnesota Housing Partnership to be 
 11.25  used for grants to regional housing 
 11.26  network organizations that provide 
 11.27  housing and homeless information and 
 11.28  assistance in Greater Minnesota. 
 11.29  $187,000 the first year and $187,000 
 11.30  the second year are for the urban 
 11.31  Indian housing program under Minnesota 
 11.32  Statutes, section 462A.07, subdivision 
 11.33  15. 
 11.34  $1,683,000 the first year and 
 11.35  $1,683,000 the second year are for the 
 11.36  tribal Indian housing program under 
 11.37  Minnesota Statutes, section 462A.07, 
 11.38  subdivision 14. 
 11.39  $186,000 the first year and $186,000 
 11.40  the second year are for the Minnesota 
 11.41  rural and urban homesteading program 
 11.42  under Minnesota Statutes, section 
 11.43  462A.057.  
 11.44  The agency may use up to $1,000,000 of 
 11.45  available resources for the purpose of 
 11.46  making loans under the Minnesota rural 
 11.47  and urban homesteading program 
 11.48  established under Minnesota Statutes, 
 11.49  section 462A.057, subdivision 1.  The 
 11.50  commissioner shall report to the 
 11.51  relevant finance divisions in the house 
 11.52  of representatives and senate on the 
 11.53  outcomes of this program by January 15 
 11.54  of each year. 
 11.55  $4,287,000 the first year and 
 11.56  $4,287,000 the second year are for the 
 11.57  housing rehabilitation and 
 11.58  accessibility program under Minnesota 
 11.59  Statutes, section 462A.05, subdivision 
 11.60  14a.  
 11.61  $2,048,000 the first year and 
 12.1   $2,048,000 the second year are for the 
 12.2   housing trust fund to be deposited in 
 12.3   the housing trust fund account created 
 12.4   under Minnesota Statutes, section 
 12.5   462A.201, and used for the purposes 
 12.6   provided in that section. 
 12.7   $1,500,000 the first year and 
 12.8   $1,500,000 the second year are for the 
 12.9   rent assistance for family 
 12.10  stabilization program under Minnesota 
 12.11  Statutes, section 462A.205. 
 12.12  $2,375,000 the first year and 
 12.13  $2,375,000 the second year are for the 
 12.14  family homeless prevention and 
 12.15  assistance program. 
 12.16  $433,000 the first year and $433,000 
 12.17  the second year are for the emergency 
 12.18  mortgage foreclosure prevention and 
 12.19  emergency rental assistance program. 
 12.20  $150,000 the first year and $150,000 
 12.21  the second year are for residential 
 12.22  lead paint and lead contaminated soil 
 12.23  abatement. 
 12.24  $25,000 the first year and $25,000 the 
 12.25  second year are for home equity 
 12.26  conversion counseling grants under 
 12.27  Minnesota Statutes, section 462A.28. 
 12.28  $150,000 the first year is for the 
 12.29  affordable neighborhood design and 
 12.30  development initiative. 
 12.31  Appropriations in this section that are 
 12.32  in excess of appropriations for the 
 12.33  same purposes in fiscal years 1994 and 
 12.34  1995 are not to be considered as part 
 12.35  of the agency's base funding. 
 12.36  Sec. 7.  COMMERCE 
 12.37  Subdivision 1.  Total 
 12.38  Appropriation                         14,962,000     15,037,000
 12.39                Summary by Fund
 12.40  General              13,788,000    13,854,000
 12.41  Petro Cleanup           838,000       842,000 
 12.42  Special Revenue         336,000       341,000 
 12.43  The amounts that may be spent from this 
 12.44  appropriation for each program are 
 12.45  specified in the following subdivisions.
 12.46  Subd. 2.  Financial Examinations 
 12.47       3,775,000      3,790,000
 12.48  Subd. 3.  Registration and Insurance 
 12.49       3,845,000      3,852,000
 12.50  Subd. 4.  Enforcement and Licensing 
 12.51       3,913,000      3,934,000
 13.1                 Summary by Fund
 13.2   General               3,477,000     3,493,000
 13.3   Special Revenue         336,000       341,000
 13.4   $336,000 the first year and $341,000 
 13.5   the second year are from the real 
 13.6   estate education, research, and 
 13.7   recovery account in the special revenue 
 13.8   fund for the purpose of Minnesota 
 13.9   Statutes, section 82.34, subdivision 
 13.10  6.  If the appropriation from the 
 13.11  special revenue fund for either year is 
 13.12  insufficient, the appropriation for the 
 13.13  other year is available for it. 
 13.14  Subd. 5.  Petroleum Tank 
 13.15  Release Cleanup Board
 13.16         838,000        842,000 
 13.17  This appropriation is from the 
 13.18  petroleum tank release cleanup fund. 
 13.19  Subd. 6.  Administrative Services
 13.20       2,691,000      2,719,000 
 13.21  Sec. 8.  NON-HEALTH-RELATED
 13.22  BOARDS
 13.23  Subdivision 1.  Total for this 
 13.24  section                                1,365,000      1,397,000
 13.25  Subd. 2.  Board of Accountancy
 13.26         537,000        558,000 
 13.27  Subd. 3.  Board of Architecture,
 13.28  Engineering, Land Surveying, Landscape
 13.29  Architecture, and Interior Design
 13.30         625,000        635,000 
 13.31  Subd. 4.  Board of Barber
 13.32  Examiners
 13.33         128,000        129,000 
 13.34  Subd. 5.  Board of Boxing
 13.35          75,000         75,000 
 13.36  Sec. 9.  LABOR AND INDUSTRY 
 13.37  Subdivision 1.  Total 
 13.38  Appropriation               481,000   25,956,000     20,680,000
 13.39                Summary by Fund
 13.40  General                   3,866,000     3,883,000
 13.41  Special  
 13.42  Compensation    481,000  22,090,000    16,797,000
 13.43  The amounts that may be spent from this 
 13.44  appropriation for each program are 
 13.45  specified in the following subdivisions.
 13.46  Subd. 2.  Workers' Compensation 
 14.1   Regulation and Enforcement 
 14.2          481,000       14,681,000      9,412,000
 14.3                 Summary by Fund
 14.4   General                 100,000       100,000
 14.5   Special 
 14.6   Compensation 481,000 14,581,000     9,312,000
 14.7   The appropriation for fiscal year 1995 
 14.8   is from the special compensation fund 
 14.9   for litigation expenses. 
 14.10  $5,000,000 the first year from the 
 14.11  special compensation fund is for the 
 14.12  Daedalus imaging systems project.  This 
 14.13  appropriation is available for either 
 14.14  year of the biennium.  
 14.15  $320,000 the first year is for 
 14.16  temporary employees for the Daedalus 
 14.17  project. 
 14.18  $100,000 the first year and $100,000 
 14.19  the second year are for grants to the 
 14.20  Vinland Center for rehabilitation 
 14.21  service. 
 14.22  Notwithstanding Minnesota Statutes, 
 14.23  section 79.253, $45,000 the first year 
 14.24  and $45,000 the second year are 
 14.25  appropriated from the assigned risk 
 14.26  safety account in the special 
 14.27  compensation fund to the commissioner 
 14.28  of labor and industry for the purpose 
 14.29  of providing information to employers 
 14.30  regarding the prevention of violence in 
 14.31  the workplace. 
 14.32  Notwithstanding Minnesota Statutes, 
 14.33  section 79.253, $140,000 the first year 
 14.34  and $140,000 the second year are 
 14.35  appropriated from the assigned risk 
 14.36  safety account in the special 
 14.37  compensation fund to the commissioner 
 14.38  of labor and industry for the purpose 
 14.39  of hiring two occupational safety and 
 14.40  health inspectors.  The inspectors 
 14.41  shall perform safety consultations for 
 14.42  employers through labor-management 
 14.43  committees as defined in Minnesota 
 14.44  Statutes, section 179.81, subdivision 
 14.45  2, under an interagency agreement 
 14.46  entered into between the commissioners 
 14.47  of labor and industry and mediation 
 14.48  services. 
 14.49  Subd. 3.  Workplace Services 
 14.50       5,353,000      5,339,000
 14.51                Summary by Fund
 14.52  General               2,516,000     2,527,000
 14.53  Special                                      
 14.54  Compensation          2,837,000     2,812,000
 14.55  Subd. 4.  General Support 
 15.1        5,922,000      5,929,000
 15.2                 Summary by Fund
 15.3   General               1,250,000     1,256,000
 15.4   Special 
 15.5   Compensation          4,672,000     4,673,000
 15.6   $204,000 the first year and $204,000 
 15.7   the second year are for labor education 
 15.8   and advancement program grants.  
 15.9   Sec. 10.  MEDIATION SERVICES 
 15.10  Subdivision 1.  Total
 15.11  Appropriation                          1,820,000      1,823,000
 15.12  Subd. 2.  Labor Management Cooperation Grants
 15.13         222,000        222,000
 15.14  $222,000 the first year and $222,000 
 15.15  the second year are for grants to area 
 15.16  labor-management committees.  Any 
 15.17  unencumbered balance remaining at the 
 15.18  end of the first year does not cancel 
 15.19  but is available for the second year. 
 15.20  Subd. 3.  Office of Dispute Resolution
 15.21          81,000         81,000
 15.22  Sec. 11.  WORKERS' COMPENSATION 
 15.23  COURT OF APPEALS                       1,371,000      1,382,000
 15.24  This appropriation is from the special 
 15.25  compensation fund. 
 15.26  Sec. 12.  LABOR INTERPRETIVE 
 15.27  CENTER                                   140,000        200,000
 15.28  Sec. 13.  PUBLIC UTILITIES  
 15.29  COMMISSION                             3,244,000      3,219,000
 15.30  Sec. 14.  DEPARTMENT OF PUBLIC SERVICE 
 15.31  Subdivision 1.  Total       
 15.32  Appropriation                          8,577,000      8,623,000
 15.33  The amounts that may be spent from this 
 15.34  appropriation for each program are 
 15.35  specified in the following subdivisions.
 15.36  Subd. 2.  Telecommunications
 15.37         761,000        767,000
 15.38  Subd. 3.  Weights and Measures 
 15.39       2,926,000      2,937,000
 15.40  Subd. 4.  Information and Operations 
 15.41  Management 
 15.42       1,461,000      1,472,000
 15.43  Subd. 5.  Energy 
 15.44       3,429,000      3,447,000
 16.1   $588,000 the first year and $588,000 
 16.2   the second year are for transfer to the 
 16.3   energy and conservation account 
 16.4   established in Minnesota Statutes, 
 16.5   section 216B.241, subdivision 2a, for 
 16.6   programs administered by the 
 16.7   commissioner of economic security to 
 16.8   improve the energy efficiency of 
 16.9   residential oil-fired heating plants in 
 16.10  low-income households and, when 
 16.11  necessary, to provide weatherization 
 16.12  services to the homes. 
 16.13  Sec. 15.  MINNESOTA HISTORICAL 
 16.14  SOCIETY 
 16.15  Subdivision 1.  Total
 16.16  Appropriation                         19,038,000     19,015,000
 16.17  The amounts that may be spent from this 
 16.18  appropriation for each program are 
 16.19  specified in the following subdivisions.
 16.20  The Minnesota historical society is 
 16.21  eligible for a salary supplement in the 
 16.22  same manner as state agencies if one is 
 16.23  available.  Employees of the Minnesota 
 16.24  historical society will be paid in 
 16.25  accordance with the appropriate pay 
 16.26  plan. 
 16.27  Subd. 2.  Public Programs
 16.28  and Operations                        18,508,000     18,658,000
 16.29  (a) History Center Operations
 16.30       9,080,000      9,080,000 
 16.31  (b) History Center Building Services
 16.32       5,568,000      5,568,000
 16.33  (c) Historic Site Operations
 16.34       2,790,000      2,940,000
 16.35  (d) Statewide Outreach
 16.36         640,000        640,000
 16.37  $48,000 the first year and $48,000 the 
 16.38  second year are for historic 
 16.39  preservation grants to encourage county 
 16.40  and local preservation projects. 
 16.41  (e) Repair and Replacement
 16.42         430,000        430,000
 16.43  Subd. 3.  Fiscal Agent                   530,000        357,000
 16.44  (a) State Archaeologist
 16.45         104,000        104,000 
 16.46  (b) Sibley House Association
 16.47          88,000         88,000 
 16.48  This appropriation is available for 
 16.49  operation and maintenance of the Sibley 
 17.1   House and related buildings on the Old 
 17.2   Mendota state historic site owned by 
 17.3   the Sibley House association. 
 17.4   (c) Minnesota International Center
 17.5           50,000         50,000 
 17.6   (d) Minnesota Air National Guard
 17.7   Museum
 17.8           19,000
 17.9   (e) Institute for Learning and
 17.10  Teaching - Project 120
 17.11          90,000         90,000 
 17.12  (f) Minnesota Military Museum
 17.13          29,000        
 17.14  (g) Farmamerica
 17.15          25,000         25,000
 17.16  Notwithstanding any other law, this 
 17.17  appropriation may be used for 
 17.18  operations. 
 17.19  (h) Kee theatre
 17.20          25,000
 17.21  (i) Children's museum, St. Paul
 17.22         100,000
 17.23  (j) Balances Forward
 17.24  Any unencumbered balance remaining in 
 17.25  this subdivision the first year does 
 17.26  not cancel but is available for the 
 17.27  second year of the biennium. 
 17.28  Subd. 4.  Preservation grants 
 17.29  Notwithstanding Laws 1994, chapter 643, 
 17.30  section 19, subdivision 5, the 
 17.31  historical society may award grants 
 17.32  from the unexpended balance under that 
 17.33  subdivision to public agencies or 
 17.34  entities based on historical 
 17.35  preservation purposes and needs.  The 
 17.36  society shall require significant 
 17.37  matching money for such projects.  A 
 17.38  grant awarded under this section for 
 17.39  historical preservation is not subject 
 17.40  to the requirements of Minnesota 
 17.41  Statutes, section 16A.695. 
 17.42  Subd. 5.  Carryover 
 17.43  Amounts appropriated under Laws 1993, 
 17.44  chapter 369, section 12, subdivisions 
 17.45  2, 3, 4, and 5, do not cancel on June 
 17.46  30, 1995, but are available until June 
 17.47  30, 1997. 
 17.48  Sec. 16.  MINNESOTA HUMANITIES
 17.49  COMMISSION                               586,000        586,000
 18.1   Sec. 17.  BOARD OF THE ARTS
 18.2   Subdivision 1.  Total
 18.3   Appropriation                           6,761,000     6,767,000
 18.4   Any unencumbered balance remaining in 
 18.5   this section the first year does not 
 18.6   cancel but is available for the second 
 18.7   year of the biennium. 
 18.8   Subd. 2.  Operations and
 18.9   Services                                 752,000        756,000
 18.10  Subd. 3.  Grants Program               4,626,000      4,627,000
 18.11  The board shall spend this 
 18.12  appropriation to ensure that at least 
 18.13  ten percent of the expenditure is for 
 18.14  arts programs intended primarily for 
 18.15  children. 
 18.16  Subd. 4.  Regional Arts
 18.17  Councils                               1,383,000      1,384,000
 18.18  The board shall distribute this 
 18.19  appropriation to the regional arts 
 18.20  councils to ensure that ten percent of 
 18.21  the total distribution in each region 
 18.22  is for arts programs intended primarily 
 18.23  for children. 
 18.24  Sec. 18.  MINNESOTA MUNICIPAL
 18.25  BOARD                                    300,000        287,000
 18.26  Sec. 19.  UNIFORM LAWS
 18.27  COMMISSION                                29,000         29,000
 18.28  Sec. 20.  COUNCIL ON BLACK
 18.29  MINNESOTANS                              229,000        232,000
 18.30  The appropriation for the second year 
 18.31  is contingent on submission of the 
 18.32  report required in section 31. 
 18.33  Sec. 21.  COUNCIL ON AFFAIRS
 18.34  OF SPANISH-SPEAKING PEOPLE               246,000        248,000
 18.35  During the biennium ending June 30, 
 18.36  1997, council publications may contain 
 18.37  advertising.  Receipts from advertising 
 18.38  are appropriated to the council for 
 18.39  purposes of council publications.  For 
 18.40  the biennium ending June 30, 1997, the 
 18.41  council shall report to the legislature 
 18.42  on the revenues and expenditures from 
 18.43  advertising by February 15 each year. 
 18.44  The appropriation for the second year 
 18.45  is contingent on submission of the 
 18.46  report required in section 31. 
 18.47  Sec. 22.  COUNCIL ON
 18.48  ASIAN-PACIFIC MINNESOTANS                198,000        200,000
 18.49  The appropriation for the second year 
 18.50  is contingent on submission of the 
 18.51  report required in section 31. 
 18.52  Sec. 23.  INDIAN AFFAIRS
 18.53  COUNCIL                                  458,000        463,000
 19.1   For the biennium ending June 30, 1997, 
 19.2   federal money received for the Indian 
 19.3   affairs council is appropriated to the 
 19.4   council and added to this appropriation.
 19.5   The appropriation for the second year 
 19.6   is contingent on submission of the 
 19.7   report required in section 31. 
 19.8   Sec. 24.  ETHICAL   
 19.9   PRACTICES BOARD          290,000        441,000         446,000
 19.10  The appropriation for fiscal year 1995 
 19.11  is for litigation expenses. 
 19.12  Sec. 25.  SECRETARY OF STATE
 19.13  Subdivision 1.  Total
 19.14  Appropriation                          6,617,000      5,573,000
 19.15  The amounts that may be spent from this 
 19.16  appropriation for each activity are 
 19.17  specified in the following subdivisions.
 19.18  Subd. 2.  Administration
 19.19         801,000        802,000 
 19.20  $127,000 the first year and $135,000 
 19.21  the second year are for the unfunded 
 19.22  salary supplement and inflation factor. 
 19.23  Subd. 3.  Operations
 19.24       3,913,000      3,915,000 
 19.25  $1,318,000 the first year and $188,000 
 19.26  the second year are for equipment for 
 19.27  the 87-county computer network. 
 19.28  Subd. 4.  Election Administration
 19.29         430,000        523,000 
 19.30  $18,000 the first year is for election 
 19.31  judge training. 
 19.32     Sec. 26. Laws 1995, chapter 22, is amended by adding a 
 19.33  section to read: 
 19.34     Sec. 2.  [EFFECTIVE DATE.] 
 19.35     Section 1 is effective March 28, 1995. 
 19.36     Sec. 27.  Laws 1994, chapter 643, section 19, subdivision 
 19.37  9, is amended to read: 
 19.38  Subd. 9.  Museum and Center for 
 19.39  American Indian History                               1,100,000
 19.40  This appropriation is for the ~~Minnesota~~ 
 19.41  ~~historical society~~ state university 
 19.42  board, or its successor, to plan, 
 19.43  design, and construct a museum and 
 19.44  center for American Indian history and 
 19.45  policy.  The facility shall be located 
 19.46  at an institution of higher education, 
 19.47  selected by the state university board, 
 20.1   which serves a region including the 
 20.2   three most populous Indian 
 20.3   reservations.  This appropriation is 
 20.4   not available unless matched by 
 20.5   $1,000,000 from nonpublic sources. 
 20.6      Sec. 28.  Laws 1993, chapter 369, section 9, subdivision 2, 
 20.7   is amended to read: 
 20.8   Subd. 2.  Workers' Compensation 
 20.9   Regulation and Enforcement 
 20.10      14,961,000     9,410,000
 20.11                Summary by Fund
 20.12  General                 100,000       100,000
 20.13  Workers' Comp.       14,861,000     9,310,000
 20.14  $5,000,000 the first year from the 
 20.15  special compensation fund is for the 
 20.16  Daedalus imaging systems project.  This 
 20.17  appropriation must not be allotted 
 20.18  until the commissioner certifies that 
 20.19  all information policy office 
 20.20  requirements for this project have been 
 20.21  met or will be met.  This appropriation 
 20.22  is available ~~for either year of the~~ 
 20.23  ~~biennium~~ until June 30, 1997. 
 20.24  $100,000 in the first year and $100,000 
 20.25  in the second year are for grants to 
 20.26  the Vinland Center for rehabilitation 
 20.27  service. 
 20.28  Fee receipts collected as a result of 
 20.29  providing direct computer access to 
 20.30  public workers' compensation data on 
 20.31  file with the commissioner must be 
 20.32  credited to the general fund. 
 20.33     Sec. 29.  Laws 1993, chapter 369, section 9, subdivision 3, 
 20.34  is amended to read: 
 20.35  Subd. 3.  Workplace Services 
 20.36       5,455,000      4,744,000
 20.37                Summary by Fund
 20.38  General               2,704,000     2,703,000
 20.39  Workers' Comp.        2,751,000     2,041,000
 20.40  This appropriation includes the 
 20.41  transfer of the industrial hygiene 
 20.42  activity from the department of 
 20.43  health.  The appropriation for this 
 20.44  activity is from the special 
 20.45  compensation fund. 
 20.46  $710,000 the first year from the 
 20.47  special compensation fund is for 
 20.48  litigation of alleged ergonomic 
 20.49  violations cases under the occupational 
 20.50  safety and health act (OSHA).  This 
 20.51  appropriation is available ~~for either~~ 
 20.52  ~~year of the biennium~~ until June 30, 
 21.1   1997. 
 21.2      Sec. 30.  [BASE CUT TRANSFERS.] 
 21.3      For any agency assigned base cuts in this act, the 
 21.4   proportion of agency base cuts for pass-through grants compared 
 21.5   to total agency base cuts may not exceed the proportion of 
 21.6   dollars appropriated for pass-through grants in the agency 
 21.7   compared to total dollars appropriated to that agency. 
 21.8      Sec. 31.  [COUNCILS TO REPORT.] 
 21.9      (a) The Indian affairs council, the council on affairs of 
 21.10  Spanish-speaking people, the council on Black Minnesotans, and 
 21.11  the council on Asian-Pacific Minnesotans shall, individually and 
 21.12  jointly as provided in paragraph (b), conduct a study of each 
 21.13  council's membership and operations.  Each council's study must 
 21.14  contain recommendations on: 
 21.15     (1) removal of council members by the governor; 
 21.16     (2) statutory requirements and qualifications for council 
 21.17  membership; 
 21.18     (3) appointment of the council director, including 
 21.19  qualifications; 
 21.20     (4) methods of reducing overall costs of the councils 
 21.21  through sharing of staff and administrative expenses; 
 21.22     (5) methods of improving coordination with other state 
 21.23  agencies; 
 21.24     (6) methods of reducing burdensome reporting requirements 
 21.25  without compromising accountability; 
 21.26     (7) methods of educating council members in management 
 21.27  issues for state agencies, including but not limited to 
 21.28  statewide budget and accounting practices, management practices, 
 21.29  and legal liability; and 
 21.30     (8) a statement of the mission of each council and 
 21.31  measurable impact goals for each council. 
 21.32     (b) Each council must make all feasible efforts to 
 21.33  coordinate its study with each other council's study, to achieve 
 21.34  the maximum possible consistency in recommendations. 
 21.35     (c) Each council must consult with the governor's office in 
 21.36  studying paragraph (a), items (1) to (3). 
 22.1      (d) Each council must submit its report to the legislature 
 22.2   by February 1, 1996. 
 22.3      Sec. 32.  [STUDY TO ASSESS BENEFITS OF CIVIC CENTERS.] 
 22.4      The division of tourism of the department of trade and 
 22.5   economic development shall conduct a statewide study assessing 
 22.6   the benefits of publicly owned civic and convention centers to 
 22.7   the convention and tourism industry in the state.  The results 
 22.8   of the study shall be reported to the house capital investment 
 22.9   committee and the senate finance committee by September 30, 
 22.10  1995.  A copy of the study shall be given to the governor and to 
 22.11  the commissioner of finance, who shall consider whether to 
 22.12  include funding for civic and convention centers in the 1996 
 22.13  capital budget. 
 22.14     Sec. 33.  [WORKERS' COMPENSATION DIVISION; SALARIES 
 22.15  MANAGERIAL PLAN.] 
 22.16     Funds appropriated to the department of labor and industry 
 22.17  may not be used to pay the salaries for any positions in the 
 22.18  managerial plan under Minnesota Statutes, section 43A.18, 
 22.19  subdivision 3, in the workers' compensation division unless the 
 22.20  positions existed on October 1, 1994, and had been filled on or 
 22.21  before that date.  This provision does not prohibit the addition 
 22.22  or modification of duties or responsibilities to existing 
 22.23  managerial plan positions. 
 22.24     Sec. 34.  [LEGISLATIVE AUDITOR; ECONOMIC RECOVERY GRANT 
 22.25  PROGRAM.] 
 22.26     The legislative audit commission is requested to direct the 
 22.27  legislative auditor to conduct an evaluation of the economic 
 22.28  recovery grant program under Minnesota Statutes, section 
 22.29  116J.873.  The evaluation must include an audit of loans and 
 22.30  grants made under the program and the criteria used in selecting 
 22.31  projects for grants and loans.  The legislative auditor shall 
 22.32  report the results of the evaluation to the legislature by 
 22.33  January 15, 1996. 
 22.34     Sec. 35.  [ST. PAUL DISTRICT HEATING AND COOLING FACILITY; 
 22.35  BIOMASS MANDATE.] 
 22.36     Electric energy produced at a district heating and cooling 
 23.1   cogeneration facility in St. Paul may also count toward 
 23.2   satisfaction of the amount of biomass energy required by 
 23.3   Minnesota Statutes, section 216B.2424, clause (1), that a public 
 23.4   utility that operates a nuclear facility in this state must 
 23.5   construct and operate, purchase, or contract to construct and 
 23.6   operate by December 31, 1998.  The electric energy produced at a 
 23.7   St. Paul district heating and cooling facility may count toward 
 23.8   satisfaction of this mandate only if:  (1) the electric energy 
 23.9   is produced in a cogeneration process which utilizes as a 
 23.10  primary fuel source nonhazardous metropolitan tree trimmings and 
 23.11  other nonhazardous metropolitan waste wood, including, but not 
 23.12  limited to, wood that would otherwise be landfilled or burned in 
 23.13  a process not designed to reclaim and use the energy contained 
 23.14  therein; and (2) the cogenerated thermal load of such facility 
 23.15  replaces a thermal load produced by nonrenewable fuels.  All 
 23.16  projects seeking to satisfy the biomass mandate in whole or in 
 23.17  part must be selected in a competitive bidding process or such 
 23.18  other selection process approved by the public utilities 
 23.19  commission. 
 23.20     Sec. 36.  [SUSTAINABLE BIOMASS ENERGY PRODUCTION PROJECT; 
 23.21  TECHNICAL ASSISTANCE AND SUPPORT.] 
 23.22     The commissioner of the department of agriculture, in 
 23.23  collaboration and consultation with the commissioners of the 
 23.24  departments of natural resources, trade and economic 
 23.25  development, and public service, shall provide technical 
 23.26  assistance and support to the Sustainable Biomass Energy 
 23.27  Production Project, a joint effort of the University of 
 23.28  Minnesota, the Minnesota Valley Alfalfa Producers, and other 
 23.29  public and private interests.  The support shall include 
 23.30  assistance in analysis of environmental and economic benefits of 
 23.31  the proposed project, assistance in developing feasibility and 
 23.32  market assessments of the alfalfa-derived coproducts that would 
 23.33  be produced by the project, and assistance to aid the project in 
 23.34  securing a grant from the United States Department of Energy and 
 23.35  the United States Department of Agriculture under the Biomass 
 23.36  Power for Rural Development Initiative.  The assistance provided 
 24.1   under this section shall terminate June 30, 1997. 
 24.2      Sec. 37.  [COGENERATION; POWER PLANT SITING ACT EXEMPTION.] 
 24.3      (a) A person who proposes to construct a cogeneration 
 24.4   facility which utilizes gasified petroleum coke as its primary 
 24.5   fuel source which is derived as a by-product of the oil refining 
 24.6   process at an oil refining facility owned by the person 
 24.7   proposing the project may identify a single site for the project 
 24.8   in its application under Minnesota Statutes, section 116C.57, 
 24.9   subdivision 1, instead of the two sites normally required under 
 24.10  that subdivision, if the site is in reasonable proximity to the 
 24.11  thermal host of the cogeneration plant.  For the purposes of 
 24.12  this subdivision, the "thermal host" of a cogeneration plant 
 24.13  means the facility in which the thermal energy produced by the 
 24.14  cogeneration plant is to be utilized.  The environmental quality 
 24.15  board shall determine whether the cogeneration facility is 
 24.16  reasonably proximate to the thermal host with the understanding 
 24.17  that the site should be adjacent to or contiguous with the site 
 24.18  of the thermal host whenever practicable. 
 24.19     (b) A person who proposes to construct a cogeneration 
 24.20  facility as described in paragraph (a) may apply to the 
 24.21  environmental quality board to exempt the construction from the 
 24.22  requirements of Minnesota Statutes, sections 116C.51 to 116C.69, 
 24.23  under the provisions of Minnesota Statutes, section 116C.57, 
 24.24  subdivision 5a, notwithstanding the size restrictions found in 
 24.25  that subdivision.  All other requirements of Minnesota Statutes, 
 24.26  section 116C.57, subdivision 5a, apply to an application for an 
 24.27  exemption under this subdivision.  If the board determines that 
 24.28  the proposed site will not have a significant human and 
 24.29  environmental impact, the board may exempt the construction of 
 24.30  the proposed plant at the proposed site from the requirements of 
 24.31  Minnesota Statutes, sections 116C.51 to 116C.69 with any 
 24.32  appropriate conditions. 
 24.33     Sec. 38.  Minnesota Statutes 1994, section 5.14, is amended 
 24.34  to read: 
 24.35     5.14 [TRANSACTION SURCHARGE.] 
 24.36     The secretary of state may impose a surcharge of ~~$10~~ $20 on 
 25.1   each transaction involving over-the-counter expedited service~~,~~ 
 25.2   ~~other than simple copying requests,~~ that takes place at the 
 25.3   office of the secretary of state. 
 25.4      Sec. 39.  Minnesota Statutes 1994, section 16B.08, 
 25.5   subdivision 7, is amended to read: 
 25.6      Subd. 7.  [SPECIFIC PURCHASES.] (a) The following may be 
 25.7   purchased without regard to the competitive bidding requirements 
 25.8   of this chapter:  
 25.9      (1) merchandise for resale at state park refectories or 
 25.10  facility operations; 
 25.11     (2) farm and garden products, which may be sold at the 
 25.12  prevailing market price on the date of the sale; 
 25.13     (3) meat for other state institutions from the technical 
 25.14  college maintained at Pipestone by independent school district 
 25.15  No. 583; and 
 25.16     (4) products and services from the Minnesota correctional 
 25.17  facilities.  
 25.18     (b) Supplies, materials, equipment, and utility services 
 25.19  for use by a community-based residential facility operated by 
 25.20  the commissioner of human services may be purchased or rented 
 25.21  without regard to the competitive bidding requirements of this 
 25.22  chapter. 
 25.23     (c) Supplies, materials, or equipment to be used in the 
 25.24  operation of a hospital licensed under sections 144.50 to 144.56 
 25.25  that are purchased under a shared service purchasing arrangement 
 25.26  whereby more than one hospital purchases supplies, materials, or 
 25.27  equipment with one or more other hospitals, either through one 
 25.28  of the hospitals or through another entity, may be purchased 
 25.29  without regard to the competitive bidding requirements of this 
 25.30  chapter if the following conditions are met: 
 25.31     (1) the hospital's governing authority authorizes the 
 25.32  arrangement; 
 25.33     (2) the shared services purchasing program purchases items 
 25.34  available from more than one source on the basis of competitive 
 25.35  bids or competitive quotations of prices; and 
 25.36     (3) the arrangement authorizes the hospital's governing 
 26.1   authority or its representatives to review the purchasing 
 26.2   procedures to determine compliance with these requirements. 
 26.3      ~~(d) Supplies, materials, equipment, and utility services to~~ 
 26.4   ~~be used or purchased by the iron range resources and~~ 
 26.5   ~~rehabilitation board are subject to the competitive bidding~~ 
 26.6   ~~requirements of this chapter only as described in section~~ 
 26.7   ~~298.2211, subdivision 3a.~~ 
 26.8      Sec. 40.  Minnesota Statutes 1994, section 44A.01, 
 26.9   subdivision 2, is amended to read: 
 26.10     Subd. 2.  [BOARD MEMBERSHIP.] The corporation is governed 
 26.11  by a board of directors consisting of: 
 26.12     (1) four members, representing the international business 
 26.13  community, elected to six-year terms by the association of 
 26.14  members established under section 44A.023, subdivision 2, clause 
 26.15  (5); 
 26.16     (2) four members, representing the international business 
 26.17  community, appointed by the governor, to serve at the governor's 
 26.18  pleasure; 
 26.19     (3) the mayor of St. Paul or the mayor's designee; ~~and~~ 
 26.20     (4) the commissioners of trade and economic development, 
 26.21  agriculture, and commerce; and 
 26.22     (5) three members of the house appointed by the speaker of 
 26.23  the house and three members of the senate appointed under the 
 26.24  rules of the senate, who serve as nonvoting members.  One member 
 26.25  from each house must be a member of the minority party of that 
 26.26  house.  Legislative members are appointed at the beginning of 
 26.27  each regular session of the legislature for two-year terms.  A 
 26.28  legislator who remains a member of the body from which the 
 26.29  legislator was appointed may serve until a successor is 
 26.30  appointed and qualifies.  A vacancy in a legislator member's 
 26.31  term is filled for the unexpired portion of the term in the same 
 26.32  manner as the original appointment. 
 26.33     Members appointed by the governor must be knowledgeable or 
 26.34  experienced in international trade in products or services. 
 26.35     Sec. 41. Minnesota Statutes 1994, section 97A.531, is 
 26.36  amended by adding a subdivision to read: 
 27.1      Subd. 4a.  [WAIVER OF REQUIREMENTS.] The governor may issue 
 27.2   a waiver of the requirements of subdivisions 2, 3, and 4 if, 
 27.3   after negotiations with authorized representatives of Ontario, 
 27.4   the governor determines that (1) a waiver is in the best 
 27.5   interests of the citizens of the state, or (2) Ontario has 
 27.6   demonstrated a willingness to negotiate in good faith. 
 27.7      Sec. 42.  Minnesota Statutes 1994, section 116J.982, 
 27.8   subdivision 3, is amended to read: 
 27.9      Subd. 3.  [CERTIFICATION; CORPORATIONS ELIGIBLE.] (a) The 
 27.10  commissioner shall certify a community development corporation 
 27.11  under this section if the corporation is a nonprofit corporation 
 27.12  incorporated under chapter 317A and meets the other criteria in 
 27.13  this subdivision. 
 27.14     (b) The corporation, in its articles of incorporation or 
 27.15  bylaws, must designate a low-income area as the specific 
 27.16  geographic community within which it will operate.  Within 
 27.17  cities of the first class, a designated community must be an 
 27.18  identifiable neighborhood or a combination of neighborhoods but 
 27.19  may not be the entire city.  Outside cities of the first class, 
 27.20  a designated community may be an identifiable neighborhood or 
 27.21  neighborhoods, or home rule charter or statutory cities, 
 27.22  townships, unincorporated areas, or combinations of those 
 27.23  entities, but may not be an entire economic development region 
 27.24  nor cross existing economic development region boundaries except 
 27.25  as provided in this section.  
 27.26     (c) The corporation's major purpose, in its articles of 
 27.27  incorporation or bylaws, must be economic development, 
 27.28  redevelopment, or housing in its designated community. 
 27.29     (d) The corporation must be tax exempt under section 501, 
 27.30  paragraph (c), clause (3), of the Internal Revenue Code of 1986, 
 27.31  as amended. 
 27.32     (e) The membership and board of directors of the 
 27.33  corporation must be representative of the designated community.  
 27.34  At least 20 percent of the directors shall have low incomes or 
 27.35  shall reside in low-income areas described in subdivision 1, 
 27.36  paragraph (e), clause (1), or the low-income subarea described 
 28.1   in subdivision 1, paragraph (e), clause (2).  At least 60 
 28.2   percent of the directors must be residents of, or be employed 
 28.3   in, the designated community.  Other directors shall be 
 28.4   business, financial, or civic leaders or 
 28.5   representatives-at-large of the designated community.  At least 
 28.6   40 percent of the directors must reside in the designated 
 28.7   community.  Notwithstanding the requirements of this paragraph, 
 28.8   a corporation which meets board structure requirements for a 
 28.9   community housing development corporation under Code of Federal 
 28.10  Regulations, title 24, part 92.2, is deemed to meet the board 
 28.11  membership requirements of this subdivision. 
 28.12     (f) The corporation shall not discriminate against any 
 28.13  persons on the basis of a status protected under chapter 363.  
 28.14     (g) The corporation shall demonstrate that it has or can 
 28.15  obtain the technical skills to analyze projects, that it is 
 28.16  familiar with available public and private funding sources and 
 28.17  economic development, redevelopment, and housing programs, and 
 28.18  that it is capable of packaging economic development, 
 28.19  redevelopment, and housing projects. 
 28.20     (h) The corporation must have completed two or more 
 28.21  economic development, redevelopment, or housing projects within 
 28.22  its designated community during the last three years. 
 28.23     Sec. 43.  Minnesota Statutes 1994, section 116M.18, 
 28.24  subdivision 4, is amended to read: 
 28.25     Subd. 4.  [BUSINESS LOAN CRITERIA.] (a) The criteria in 
 28.26  this subdivision apply to loans made under the urban challenge 
 28.27  grant program.  
 28.28     (b) Loans must be made to businesses that are not likely to 
 28.29  undertake a project for which loans are sought without 
 28.30  assistance from the urban challenge grant program.  
 28.31     (c) A loan must be used for a project designed to benefit 
 28.32  persons in low-income areas through the creation of job or 
 28.33  business opportunities for them.  ~~Among loan applicants,~~ 
 28.34  ~~priority must be given on the basis of the number of permanent~~ 
 28.35  ~~jobs created or retained by the project and the proportion of~~ 
 28.36  ~~nonpublic money leveraged by the loan.~~  Priority must also be 
 29.1   given for loans to the lowest income areas.  
 29.2      (d) The minimum loan is $5,000 and the maximum is $150,000. 
 29.3      (e) ~~With the approval of the commissioner, a loan may be~~ 
 29.4   ~~used to provide up to 50 percent of the private investment~~ 
 29.5   ~~required to qualify for a grant from the economic recovery~~ 
 29.6   ~~account.~~  
 29.7      ~~(f)~~ A loan must be matched by at least an equal amount of 
 29.8   new private investment.  
 29.9      ~~(g)~~ (f) A loan may not be used for a retail development 
 29.10  project. 
 29.11     ~~(h)~~ (g) The business must agree to work with job referral 
 29.12  networks that focus on minority applicants from low-income areas.
 29.13     Sec. 44.  Minnesota Statutes 1994, section 116M.18, is 
 29.14  amended by adding a subdivision to read: 
 29.15     Subd. 4a.  [MICROENTERPRISE LOAN.] Urban challenge grants 
 29.16  may be used to make microenterprise loans to small, beginning 
 29.17  businesses, including a sole proprietorship.  Microenterprise 
 29.18  loans are subject to this section except that: 
 29.19     (1) they may also be made to qualified retail businesses; 
 29.20     (2) they may be made for a minimum of $1,000 and a maximum 
 29.21  of $10,000; and 
 29.22     (3) they do not require a match. 
 29.23     Sec. 45.  Minnesota Statutes 1994, section 116N.08, 
 29.24  subdivision 5, is amended to read: 
 29.25     Subd. 5.  [LOAN CRITERIA.] The following criteria apply to 
 29.26  loans made under the challenge grant program:  
 29.27     (a) Loans must be made to businesses that are not likely to 
 29.28  undertake a project for which loans are sought without 
 29.29  assistance from the challenge grant program.  
 29.30     (b) A loan must be used for a project designed principally 
 29.31  to benefit low-income persons through the creation of job or 
 29.32  business opportunities for them.  ~~Among loan applicants,~~ 
 29.33  ~~priority must be given on the basis of the number of permanent~~ 
 29.34  ~~jobs created or retained by the project and the proportion of~~ 
 29.35  ~~nonstate money leveraged by the revolving loan.~~  
 29.36     (c) The minimum loan is $5,000 and the maximum is $100,000. 
 30.1      (d) ~~With the approval of the commissioner, a loan may be~~ 
 30.2   ~~used to provide up to 50 percent of the private investment~~ 
 30.3   ~~required to qualify for a grant from the economic recovery~~ 
 30.4   ~~account.~~ 
 30.5      ~~(e)~~ A loan may not exceed 50 percent of the total cost of 
 30.6   an individual project.  
 30.7      ~~(f)~~ (e) A loan may not be used for a retail development 
 30.8   project. 
 30.9      ~~(g)~~ (f) A business applying for a loan, except a 
 30.10  microenterprise loan under subdivision 5a, must be sponsored by 
 30.11  a resolution of the governing body of the local governmental 
 30.12  unit within whose jurisdiction the project is located. 
 30.13     Sec. 46.  Minnesota Statutes 1994, section 116N.08, is 
 30.14  amended by adding a subdivision to read: 
 30.15     Subd. 5a.  [MICROENTERPRISE LOANS.] Challenge grants may be 
 30.16  used to make microenterprise loans to small, beginning 
 30.17  businesses, including a sole proprietorship.  Microenterprise 
 30.18  loans are subject to this section except that: 
 30.19     (1) they may also be made to qualified retail businesses; 
 30.20     (2) they may be for a minimum of $1,000 and a maximum of 
 30.21  $10,000; and 
 30.22     (3) they do not require a match. 
 30.23     Sec. 47.  Minnesota Statutes 1994, section 176.011, 
 30.24  subdivision 7a, is amended to read: 
 30.25     Subd. 7a.  (1) [COMPENSATION JUDGE.] "Compensation judge" 
 30.26  means a workers' compensation judge at the office of 
 30.27  administrative hearings.  
 30.28     (2) [CALENDAR JUDGE.] "Calendar judge" means a workers' 
 30.29  compensation judge at the office of administrative hearings.  
 30.30     (3) [SETTLEMENT JUDGE.] "Settlement judge" means a 
 30.31  compensation judge at the department of labor and industry.  
 30.32  Settlement judges may conduct settlement conferences, issue 
 30.33  summary decisions, approve settlements and issue awards thereon, 
 30.34  determine petitions for attorney fees and costs, and make other 
 30.35  determinations, decisions, orders, and awards as may be 
 30.36  delegated to them by the commissioner.  Settlement judges must 
 31.1   be learned in the law. 
 31.2      Sec. 48.  Minnesota Statutes 1994, section 176.231, is 
 31.3   amended by adding a subdivision to read: 
 31.4      Subd. 12.  [REPORTS; ELECTRONIC MONITORING.] Beginning July 
 31.5   1, 1995, the commissioner shall monitor electronically all 
 31.6   reports of injury, all payments for reported injuries, and 
 31.7   compliance with all reporting and payment timelines. 
 31.8      Sec. 49.  [176.445] [SETTLEMENT JUDGES.] 
 31.9      Subdivision 1.  [AUTHORITY OF CHIEF SETTLEMENT JUDGE.] The 
 31.10  chief settlement judge at the department is the administrator 
 31.11  and supervisor of all dispute resolution functions and 
 31.12  personnel.  The chief settlement judge reports directly to the 
 31.13  commissioner. 
 31.14     Subd. 2.  [DETERMINATIONS; APPROVAL OF 
 31.15  SETTLEMENTS.] Notwithstanding section 176.011, subdivision 27, 
 31.16  or any law to the contrary, the commissioner may delegate 
 31.17  authority only to settlement judges to make determinations under 
 31.18  the procedures in sections 176.106, 176.238, and 176.239 and to 
 31.19  approve settlements of claims under section 176.521.  A 
 31.20  settlement judge shall preside at all workers' compensation 
 31.21  settlement conferences conducted at the department. 
 31.22     Sec. 50.  [177.255] [STATE ASSISTANCE; EMPLOYMENT; POVERTY 
 31.23  LEVEL WAGE.] 
 31.24     Subdivision 1.  [APPLICATION.] (a) This section applies to 
 31.25  any for-profit corporation, partnership, limited liability 
 31.26  company, or sole proprietorship that does not meet the 
 31.27  definition of a small business in section 645.445 and that 
 31.28  receives state assistance in the form of a state grant, state 
 31.29  loan, or tax increment financing, if: 
 31.30     (1) the sum of all three types of assistance exceeds 
 31.31  $25,000 in a fiscal year; and 
 31.32     (2) the purpose of the assistance is economic development 
 31.33  or job growth. 
 31.34     (b) The state assistance recipient must: 
 31.35     (1) produce a net increase in jobs in Minnesota within two 
 31.36  years of receiving the state assistance.  If without state 
 32.1   assistance the recipient would decrease its number of employees, 
 32.2   then the state assistance recipient must show a net retention in 
 32.3   the number of jobs or lose the assistance; and 
 32.4      (2) pay every employee at least a poverty level wage when 
 32.5   they are hired to work in a job created by an economic 
 32.6   development project or job growth project that receives 
 32.7   assistance from a state grant, a state loan, or tax increment 
 32.8   financing.  For purposes of this section, a poverty level wage 
 32.9   on an annualized basis is equal to 100 percent of the federal 
 32.10  poverty level for a family of four.  The commissioner of trade 
 32.11  and economic development shall determine whether or not any job 
 32.12  created is a result of an economic development project or a job 
 32.13  growth project that receives assistance from a state grant, 
 32.14  state loan, or tax increment financing. 
 32.15     If the state assistance recipient fails to comply with 
 32.16  clause (2), the recipient shall pay the local human service 
 32.17  agency an amount equal to two times the difference between the 
 32.18  wage required under clause (2) and the wage actually paid. 
 32.19     Subd. 2.  [ON-THE-JOB TRAINING EXEMPTION.] (a) The 
 32.20  requirement to pay at least a poverty level wage under 
 32.21  subdivision 1 does not apply to an employee engaged in 
 32.22  on-the-job training.  For purposes of this section, on-the-job 
 32.23  training means: 
 32.24     (1) an apprenticeship program for an apprentice defined by 
 32.25  section 178.06; 
 32.26     (2) a preapprenticeship program that assists learners to 
 32.27  explore occupational areas and assess their skills and interests 
 32.28  in those areas, and acquire knowledge and skills necessary to 
 32.29  succeed in youth apprenticeship programs; or 
 32.30     (3) a training program, not to exceed six months, that is 
 32.31  offered to an individual while employed in productive work that 
 32.32  provides training, technical and other related skills, and 
 32.33  personal skills that are essential to the full and adequate 
 32.34  performance of the employment. 
 32.35     (b) An employer shall pay at least a poverty level wage to 
 32.36  an employee who would otherwise be exempt under paragraph (a), 
 33.1   clause (1), (2), or (3), if: 
 33.2      (1) any other individual has been laid off by the employer 
 33.3   from the position to be filled by the employee engaged in 
 33.4   on-the-job training or from any substantially equivalent 
 33.5   position; or 
 33.6      (2) the employer has terminated the employment of any 
 33.7   regular employee or otherwise reduced the number of employees 
 33.8   with the intention of replacing the employee by hiring an 
 33.9   employee who is not required to receive at least a poverty level 
 33.10  wage. 
 33.11     Subd. 3.  [APPLICATION FOR ON-THE-JOB TRAINING 
 33.12  EXEMPTION.] An employer seeking exemption under subdivision 2 
 33.13  must: 
 33.14     (1) notify the commissioner of labor and industry, who must 
 33.15  certify that the on-the-job training program meets the criteria 
 33.16  stated in subdivision 2; and 
 33.17     (2) describe the program in writing, retain a copy, and 
 33.18  provide a copy to the commissioner of labor and industry and to 
 33.19  the employee. 
 33.20     Subd. 4.  [EMPLOYER EXEMPTIONS.] The requirement to pay at 
 33.21  least a poverty level wage under subdivision 1 does not apply to 
 33.22  the following types of state assistance: 
 33.23     (1) tax increment financing for redevelopment activities, 
 33.24  including assistance financed with increments (i) from districts 
 33.25  defined as redevelopment districts or renewal and renovation 
 33.26  districts under section 469.174, or (ii) from another type of 
 33.27  district used to pay for redevelopment activities as defined in 
 33.28  section 469.176, subdivision 4j; 
 33.29     (2) state grant and state loan assistance to businesses 
 33.30  located in districts that meet the criteria of a redevelopment 
 33.31  district or renewal and renovation district defined in section 
 33.32  469.174; 
 33.33     (3) tax increment assistance financed by districts defined 
 33.34  as housing districts under section 469.174; 
 33.35     (4) tax increment assistance financed by districts created 
 33.36  as hazardous substance subdistricts under section 469.175; 
 34.1      (5) state grant and state loan assistance for the removal 
 34.2   or remediation of a hazardous substance, hazardous waste, 
 34.3   pollutant, or contaminant, including human waste, as defined by 
 34.4   section 115B.02; 
 34.5      (6) loan or loan guarantee assistance from the tourism loan 
 34.6   program under section 116J.617; and 
 34.7      (7) grant assistance from contamination cleanup grants 
 34.8   under section 116J.552. 
 34.9      Subd. 5.  [EMPLOYEE EXEMPTION.] This section does not apply 
 34.10  to an employee who is a blind or disabled eligible individual as 
 34.11  that term is defined in United States Code, title 42, section 
 34.12  1382, paragraph (a). 
 34.13     Sec. 51.  Minnesota Statutes 1994, section 216B.2424, is 
 34.14  amended to read: 
 34.15     216B.2424 [BIOMASS POWER MANDATE.] 
 34.16     A public utility, as defined in section 216B.02, 
 34.17  subdivision 4, that operates a nuclear-powered electric 
 34.18  generating plant within this state must~~, by December 31, 1998,~~ 
 34.19  construct and operate, purchase, or contract to construct and 
 34.20  operate (1) by December 31, 1998, 50 megawatts of electric 
 34.21  energy installed capacity generated by farm grown closed-loop 
 34.22  biomass to be operational by December 31, 2000; and (2) by 
 34.23  December 31, 1998, an additional 75 megawatts of installed 
 34.24  capacity so generated to be operational by December 31, 2002.  
 34.25  Of the total 125 megawatts of biomass electric energy installed 
 34.26  capacity required under this section, no more than one-fourth of 
 34.27  this capacity may be provided by projects within the 
 34.28  seven-county metropolitan area and no more than 75 megawatts may 
 34.29  be provided by a single project. 
 34.30     Sec. 52.  Minnesota Statutes 1994, section 237.701, 
 34.31  subdivision 1, is amended to read: 
 34.32     Subdivision 1.  [FUND CREATED; AUTHORIZED EXPENDITURES.] 
 34.33  The telephone assistance fund is created as a separate account 
 34.34  in the state treasury to consist of amounts received by the 
 34.35  department of administration representing the surcharge 
 34.36  authorized by section 237.70, subdivision 6, and amounts earned 
 35.1   on the fund assets.  Money in the fund may be used only for: 
 35.2      (1) reimbursement to telephone companies for expenses and 
 35.3   credits allowed in section 237.70, subdivision 7, paragraph (d), 
 35.4   clause (5); 
 35.5      (2) reimbursement of the administrative expenses of the 
 35.6   department of human services to implement sections 237.69 to 
 35.7   237.71, not to exceed $314,000 annually; ~~and~~ 
 35.8      (3) reimbursement of the administrative expenses of the 
 35.9   commission not to exceed $25,000 annually; and 
 35.10     (4) reimbursement of the statewide indirect cost of the 
 35.11  commission. 
 35.12     Sec. 53.  Minnesota Statutes 1994, section 245A.11, 
 35.13  subdivision 2, is amended to read: 
 35.14     Subd. 2.  [PERMITTED SINGLE-FAMILY RESIDENTIAL USE.] 
 35.15  Residential programs with a licensed capacity of six or fewer 
 35.16  persons shall be considered a permitted single-family 
 35.17  residential use of property for the purposes of zoning and other 
 35.18  land use regulations, except that a residential program whose 
 35.19  primary purpose is to treat juveniles who have violated criminal 
 35.20  statutes relating to sex offenses or have been adjudicated 
 35.21  delinquent on the basis of conduct in violation of criminal 
 35.22  statutes relating to sex offenses shall not be considered a 
 35.23  permitted use.  Programs otherwise allowed under this 
 35.24  subdivision shall not be prohibited by operation of restrictive 
 35.25  covenants or similar restrictions, regardless of when entered 
 35.26  into, which cannot be met because of the nature of the licensed 
 35.27  program, including provisions which require the home's occupants 
 35.28  be related, and that the home must be occupied by the owner, or 
 35.29  similar provisions. 
 35.30     Sec. 54.  [268A.15] [EXTENDED EMPLOYMENT PROGRAM.] 
 35.31     Subdivision 1.  [ADMINISTRATION.] The department of 
 35.32  economic security shall administer this section through the 
 35.33  division of rehabilitation services.  The department may employ 
 35.34  staff as required to administer this section and may accept and 
 35.35  receive funds from nonstate sources for the purpose of 
 35.36  implementing this section. 
 36.1      Subd. 2.  [PURPOSE.] The purpose of the extended employment 
 36.2   program is to provide the ongoing services necessary to maintain 
 36.3   and advance the employment of persons with severe disabilities.  
 36.4   Employment under this section must encompass the broad range of 
 36.5   employment choices available to all persons and promote an 
 36.6   individual's self-sufficiency and financial independence.  
 36.7      Subd. 3.  [RULE AUTHORITY.] The commissioner shall adopt 
 36.8   rules on an individual's eligibility for the extended employment 
 36.9   program, the certification of rehabilitation facilities, and the 
 36.10  methods, criteria, and units of distribution for the allocation 
 36.11  of state grant funds to certified rehabilitation facilities.  In 
 36.12  determining the allocation, the commissioner shall consider the 
 36.13  economic conditions of the community and the performance of 
 36.14  rehabilitation facilities relative to their impact on the 
 36.15  economic status of workers in the extended employment program. 
 36.16     Subd. 4.  [EVALUATION.] The commissioner of economic 
 36.17  security shall evaluate the extended employment program to 
 36.18  determine whether the purpose of extended employment as defined 
 36.19  in subdivision 2 is being achieved.  The evaluation must include 
 36.20  an assessment of whether workers in the extended employment 
 36.21  program are satisfied with their employment.  A written report 
 36.22  of this evaluation must be prepared at least every two years and 
 36.23  made available to the public.  
 36.24     Subd. 5.  [TECHNICAL ASSISTANCE.] The commissioner of 
 36.25  economic security shall provide technical assistance within 
 36.26  available resources to rehabilitation facilities.  
 36.27     Subd. 6.  [GRANTS.] The commissioner may provide innovation 
 36.28  and expansion grants to rehabilitation facilities to encourage 
 36.29  the development, demonstration, or dissemination of innovative 
 36.30  business practices, training programs, and service delivery 
 36.31  methods that: 
 36.32     (1) expand and improve employment opportunities for persons 
 36.33  with severe disabilities who are unserved or underserved by the 
 36.34  extended employment program; and 
 36.35     (2) increase the ability of persons with severe 
 36.36  disabilities to use new and emerging technologies in employment 
 37.1   settings, and foster the capacity of rehabilitation facilities 
 37.2   and employers to promote the integration of individuals with 
 37.3   severe disabilities into the workplace and the mainstream of 
 37.4   community life. 
 37.5      The grants must require collaboration at the local level 
 37.6   among vocational rehabilitation field offices, county social 
 37.7   service and planning agencies, rehabilitation facilities, and 
 37.8   employers.  
 37.9      Subd. 7.  [WITHDRAWAL OF FUNDS.] The commissioner may 
 37.10  withdraw funds from a rehabilitation facility that is not being 
 37.11  administered in accordance with its approved plan and budget 
 37.12  unless a modified plan and budget is submitted to and approved 
 37.13  by the commissioner, and implemented within a reasonable time.  
 37.14  The commissioner may withdraw funds from a rehabilitation 
 37.15  facility not being administered according to department rules, 
 37.16  or not meeting mandatory standards for certification, unless a 
 37.17  plan bringing the rehabilitation facility into compliance with 
 37.18  the rules and standards is submitted to and approved by the 
 37.19  commissioner, and implemented within a reasonable time.  Funds 
 37.20  withdrawn must be reallocated by the commissioner to other 
 37.21  rehabilitation facilities after reasonable notice and 
 37.22  opportunity for hearing.  
 37.23     Sec. 55.  Minnesota Statutes 1994, section 298.22, 
 37.24  subdivision 2, is amended to read: 
 37.25     Subd. 2.  There is hereby created the iron range resources 
 37.26  and rehabilitation board, consisting of 11 members, five of whom 
 37.27  shall be state senators appointed by the subcommittee on 
 37.28  committees of the rules committee of the senate, and five of 
 37.29  whom shall be representatives, appointed by the speaker of the 
 37.30  house of representatives, their terms of office to commence on 
 37.31  May 1, 1943, and continue until January 3rd, 1945, or until 
 37.32  their successors are appointed and qualified.  Their successors 
 37.33  shall be appointed each two years in the same manner as the 
 37.34  original members were appointed, in January of every second 
 37.35  year, commencing in January, 1945.  The 11th member of said 
 37.36  board shall be the commissioner of natural resources of the 
 38.1   state of Minnesota.  Vacancies on the board shall be filled in 
 38.2   the same manner as the original members were chosen.  At least a 
 38.3   majority of the legislative members of the board shall be 
 38.4   elected from state senatorial or legislative districts in which 
 38.5   over 50 percent of the residents reside within a tax relief area 
 38.6   as defined in section 273.134.  All expenditures and projects 
 38.7   made by the commissioner of iron range resources and 
 38.8   rehabilitation shall first be submitted to said iron range 
 38.9   resources and rehabilitation board ~~which shall recommend~~ for 
 38.10  approval by at least eight board members ~~or disapproval or~~ 
 38.11  ~~modification~~ of expenditures and projects for rehabilitation 
 38.12  purposes as provided by this section, and the method, manner, 
 38.13  and time of payment of all said funds proposed to be disbursed 
 38.14  shall be first approved or disapproved by said board.  The board 
 38.15  shall biennially make its report to the governor and the 
 38.16  legislature on or before November 15 of each even numbered 
 38.17  year.  The expenses of said board shall be paid by the state of 
 38.18  Minnesota from the funds raised pursuant to this section. 
 38.19     Sec. 56.  Minnesota Statutes 1994, section 298.223, 
 38.20  subdivision 2, is amended to read: 
 38.21     Subd. 2.  [ADMINISTRATION.] The taconite environmental 
 38.22  protection fund shall be administered by the commissioner of the 
 38.23  iron range resources and rehabilitation board.  The commissioner 
 38.24  shall by September 1 of each year ~~prepare~~ submit to the board a 
 38.25  list of projects to be funded from the taconite environmental 
 38.26  protection fund, with such supporting information including 
 38.27  description of the projects, plans, and cost estimates as may be 
 38.28  necessary.  Upon ~~recommendation~~ approval by at least eight 
 38.29  members of the iron range resources and rehabilitation board, 
 38.30  this list shall be submitted to the governor by November 1 of 
 38.31  each year.  By December 1 of each year, the governor shall 
 38.32  approve or disapprove, or return for further consideration, each 
 38.33  project.  Funds for a project may be expended only upon approval 
 38.34  of the project by the board and governor.  The commissioner may 
 38.35  submit supplemental projects to the board and governor for 
 38.36  approval at any time.  
 39.1      Sec. 57.  Minnesota Statutes 1994, section 462.357, 
 39.2   subdivision 7, is amended to read: 
 39.3      Subd. 7.  [PERMITTED SINGLE FAMILY USE.] A state licensed 
 39.4   residential facility serving six or fewer persons, a licensed 
 39.5   day care facility serving 12 or fewer persons, and a group 
 39.6   family day care facility licensed under Minnesota Rules, parts 
 39.7   9502.0315 to 9502.0445 to serve 14 or fewer children shall be 
 39.8   considered a permitted single family residential use of property 
 39.9   for the purposes of zoning, except that a residential facility 
 39.10  whose primary purpose is to treat juveniles who have violated 
 39.11  criminal statutes relating to sex offenses or have been 
 39.12  adjudicated delinquent on the basis of conduct in violation of 
 39.13  criminal statutes relating to sex offenses shall not be 
 39.14  considered a permitted use. 
 39.15     Sec. 58.  Minnesota Statutes 1994, section 462A.201, 
 39.16  subdivision 2, is amended to read: 
 39.17     Subd. 2.  [LOW-INCOME HOUSING.] (a) The agency may, in 
 39.18  consultation with the advisory committee, use money from the 
 39.19  housing trust fund account to provide loans or grants for 
 39.20  projects for the development, construction, acquisition, 
 39.21  preservation, and rehabilitation of low-income rental and 
 39.22  limited equity cooperative housing units and homes for 
 39.23  ownership.  No more than 20 percent of available funds may be 
 39.24  used for home ownership projects.  
 39.25     (b) ~~The~~ A rental or limited equity cooperative housing 
 39.26  project must meet one of the following income tests: 
 39.27     (1) at least 75 percent of the rental and cooperative 
 39.28  units~~, and 100 percent of the homes for ownership,~~ must be 
 39.29  rented to or cooperatively owned~~, or owned~~ by persons and 
 39.30  families whose income does not exceed 30 percent of the median 
 39.31  family income for the metropolitan area as defined in section 
 39.32  473.121, subdivision 2; or 
 39.33     (2) all of the units funded by the housing trust fund 
 39.34  account must be used for the benefit of persons and families 
 39.35  whose income does not exceed 30 percent of the median family 
 39.36  income for the metropolitan area as defined in section 473.121, 
 40.1   subdivision 2. 
 40.2      The median family income may be adjusted for families of 
 40.3   five or more. 
 40.4      (c) Homes for ownership must be owned or purchased by 
 40.5   persons and families whose income does not exceed 50 percent of 
 40.6   the metropolitan area median income, adjusted for family size. 
 40.7      (d) In making the grants, the agency shall determine the 
 40.8   terms and conditions of repayment and the appropriate security, 
 40.9   if any, should repayment be required.  To promote the geographic 
 40.10  distribution of grants and loans, the agency may designate a 
 40.11  portion of the grant or loan awards to be set aside for projects 
 40.12  located in specified congressional districts or other 
 40.13  geographical regions specified by the agency.  The agency may 
 40.14  adopt emergency and permanent rules for awarding grants and 
 40.15  loans under this subdivision.  The emergency rules are effective 
 40.16  for 180 days or until the permanent rules are adopted, whichever 
 40.17  occurs first. 
 40.18     Sec. 59.  Minnesota Statutes 1994, section 462A.202, 
 40.19  subdivision 2, is amended to read: 
 40.20     Subd. 2.  [TRANSITIONAL HOUSING.] The agency may make loans 
 40.21  with or without interest to cities and counties to finance the 
 40.22  acquisition, improvement, and rehabilitation of existing housing 
 40.23  properties or the acquisition, site improvement, and development 
 40.24  of new properties for the purposes of providing transitional 
 40.25  housing, upon terms and conditions the agency determines.  
 40.26  Preference must be given to cities that propose to acquire 
 40.27  properties being sold by the resolution trust corporation or the 
 40.28  department of housing and urban development.  Loans under this 
 40.29  subdivision are subject to the restrictions in subdivision 7. 
 40.30     Sec. 60.  Minnesota Statutes 1994, section 462A.202, 
 40.31  subdivision 6, is amended to read: 
 40.32     Subd. 6.  [NEIGHBORHOOD LAND TRUSTS.] The agency may make 
 40.33  loans with or without interest to cities and counties to finance 
 40.34  the capital costs of a land trust project undertaken pursuant to 
 40.35  sections 462A.30 and 462A.31.  Loans under this subdivision are 
 40.36  subject to the restrictions in subdivision 7. 
 41.1      Sec. 61.  Minnesota Statutes 1994, section 462A.204, 
 41.2   subdivision 1, is amended to read: 
 41.3      Subdivision 1.  [ESTABLISHMENT.] The agency may establish a 
 41.4   family homeless prevention and assistance program to assist 
 41.5   families who are homeless or are at imminent risk of 
 41.6   homelessness.  The term "family" may include single 
 41.7   individuals.  The agency may make grants to develop and 
 41.8   implement family homeless prevention and assistance projects 
 41.9   under the program.  For purposes of this section, "families" 
 41.10  means families and persons under the age of ~~18~~ 22.  
 41.11     Sec. 62.  Minnesota Statutes 1994, section 462A.205, 
 41.12  subdivision 4, is amended to read: 
 41.13     Subd. 4.  [AMOUNT AND PAYMENT OF RENT ASSISTANCE.] (a) This 
 41.14  subdivision applies to both the voucher option and the 
 41.15  project-based voucher option.  
 41.16     (b) Within the limits of available appropriations, eligible 
 41.17  families may receive monthly rent assistance for a 36-month 
 41.18  period starting with the month the family first receives rent 
 41.19  assistance under this section.  The amount of the family's 
 41.20  portion of the rental payment is equal to at least 30 percent of 
 41.21  gross income. 
 41.22     (c) The rent assistance must be paid by the local housing 
 41.23  organization to the property owner. 
 41.24     (d) Subject to the limitations in paragraph (e), the amount 
 41.25  of rent assistance is the difference between the rent and the 
 41.26  family's portion of the rental payment. 
 41.27     (e) In no case: 
 41.28     (1) may the amount of monthly rent assistance be more 
 41.29  than $250 for housing located within the metropolitan area, as 
 41.30  defined in section 473.121, subdivision 2, or more than $200 for 
 41.31  housing located outside of the metropolitan area; 
 41.32     (2) may the owner receive more rent for assisted units than 
 41.33  for comparable unassisted units; nor 
 41.34     (3) may the amount of monthly rent assistance be more than 
 41.35  the difference between the family's portion of the rental 
 41.36  payment and the fair market rent for the unit as determined by 
 42.1   the Department of Housing and Urban Development. 
 42.2      Sec. 63.  Minnesota Statutes 1994, section 462A.206, 
 42.3   subdivision 2, is amended to read: 
 42.4      Subd. 2.  [AUTHORIZATION.] The agency may make grants or 
 42.5   loans to cities for the purposes of construction, acquisition, 
 42.6   rehabilitation, demolition, permanent financing, refinancing, ~~or~~ 
 42.7   gap financing of single or multifamily housing, or full cycle 
 42.8   home ownership services, as defined in section 462A.209, 
 42.9   subdivision 2.  Gap financing is financing for the difference 
 42.10  between the cost of the improvement of the blighted property, 
 42.11  including acquisition, demolition, rehabilitation, and 
 42.12  construction, and the market value of the property upon sale.  
 42.13  The agency shall take into account the amount of money that the 
 42.14  city leverages from other sources in awarding grants and loans.  
 42.15  Cities may use the grants and loans to establish revolving loan 
 42.16  funds and to provide grants and loans to eligible mortgagors.  
 42.17  The city may determine the terms and conditions of the grants 
 42.18  and loans.  An agency loan may only be used by a city to make 
 42.19  loans. 
 42.20     Sec. 64.  Minnesota Statutes 1994, section 462A.206, 
 42.21  subdivision 5, is amended to read: 
 42.22     Subd. 5.  [OTHER ELIGIBLE ORGANIZATIONS.] A nonprofit 
 42.23  organization is eligible to apply directly for grants or loans 
 42.24  from the community rehabilitation fund account if the city 
 42.25  within which it is located enacts a resolution authorizing the 
 42.26  organization to apply on the city's behalf, except that a 
 42.27  nonprofit organization providing full cycle home ownership 
 42.28  services may apply directly to the agency. 
 42.29     Sec. 65.  [462A.209] [HOME OWNERSHIP ASSISTANCE.] 
 42.30     Subdivision 1.  [FULL CYCLE HOME OWNERSHIP SERVICES.] The 
 42.31  full cycle home ownership services program shall be used to fund 
 42.32  nonprofit organizations and political subdivisions providing, 
 42.33  building capacity to provide, or supporting full cycle lending 
 42.34  for home ownership to low and moderate income home buyers.  The 
 42.35  purpose of the program is to encourage private investment in 
 42.36  affordable housing and collaboration of nonprofit organizations 
 43.1   and political subdivisions with each other and private lenders 
 43.2   in providing full cycle lending services. 
 43.3      Subd. 2.  [DEFINITION.] "Full cycle home ownership services"
 43.4   means supporting eligible home buyers and owners through all 
 43.5   phases of purchasing and keeping a home, by providing 
 43.6   prepurchase home buyer education, prepurchase counseling and 
 43.7   credit repair, prepurchase property inspection and technical and 
 43.8   financial assistance to buyers in rehabilitating the home, 
 43.9   postpurchase and mortgage default counseling, postpurchase 
 43.10  assistance with home maintenance, entry cost assistance, and 
 43.11  access to flexible loan products. 
 43.12     Subd. 3.  [ELIGIBILITY.] The agency shall establish 
 43.13  eligibility criteria for nonprofit organizations and political 
 43.14  subdivisions to receive funding under this section.  The 
 43.15  eligibility criteria must require the nonprofit organization or 
 43.16  political subdivision to provide, to build capacity to provide, 
 43.17  or support full cycle home ownership services for eligible home 
 43.18  buyers.  The agency may fund a nonprofit organization or 
 43.19  political subdivision that will provide full cycle home 
 43.20  ownership services by coordinating with one or more other 
 43.21  organizations that will provide specific components of full 
 43.22  cycle home ownership services.  The agency may make exceptions 
 43.23  to providing all components of full cycle lending if justified 
 43.24  by the application.  If there are more applicants requesting 
 43.25  funding than there are funds available, the agency shall award 
 43.26  the funds on a competitive basis and also assure an equitable 
 43.27  geographic distribution of the available funds.  The eligibility 
 43.28  criteria must require the nonprofit organization or political 
 43.29  subdivision to have a demonstrated involvement in the local 
 43.30  community and to target the housing affordability needs of the 
 43.31  local community.  Partnerships and collaboration with 
 43.32  innovative, grass roots, or community-based initiatives shall be 
 43.33  encouraged.  The agency shall give priority to nonprofit 
 43.34  organizations and political subdivisions that provide matching 
 43.35  funds.  Applicants for funds under section 462A.057 may also 
 43.36  apply funds under this program. 
 44.1      Subd. 4.  [ENTRY COST HOME OWNERSHIP OPPORTUNITY 
 44.2   PROGRAM.] The agency may establish an entry cost home ownership 
 44.3   opportunity program, on terms and conditions it deems advisable, 
 44.4   to assist individuals with downpayment and closing costs to 
 44.5   finance the purchase of a home. 
 44.6      Sec. 66.  [462A.2095] [CONTRACT FOR DEED GUARANTEE 
 44.7   ACCOUNT.] 
 44.8      Subdivision 1.  [CREATION.] The contract for deed guarantee 
 44.9   account is created as a separate account in the housing 
 44.10  development fund.  Money in the account is appropriated to the 
 44.11  agency for the purposes of this section.  The account consists 
 44.12  of money appropriated to the account and transferred from other 
 44.13  sources and all earnings from money in the account. 
 44.14     Subd. 2.  [ACCOUNT USES.] Money in the account may be used 
 44.15  to create a guarantee fund for the refinancing of contracts for 
 44.16  deed. 
 44.17     Sec. 67.  [462A.2097] [RENTAL HOUSING.] 
 44.18     The agency may establish a rental housing assistance 
 44.19  program for persons of low income or for persons with a mental 
 44.20  illness or families that include an adult family member with a 
 44.21  mental illness.  Rental assistance may be in the form of direct 
 44.22  rental subsidies for housing for persons or families with 
 44.23  incomes of up to 50 percent of the area median income as 
 44.24  determined by the United States Department of Housing and Urban 
 44.25  Development, adjusted for families of five or more.  Housing for 
 44.26  the mentally ill must be operated in coordination with social 
 44.27  service providers who provide services requested by tenants.  
 44.28  Direct rental subsidies must be administered by the agency for 
 44.29  the benefit of eligible tenants.  Financial assistance provided 
 44.30  under this section must be in the form of vendor payments 
 44.31  whenever possible. 
 44.32     Sec. 68.  Minnesota Statutes 1994, section 462A.21, 
 44.33  subdivision 3b, is amended to read: 
 44.34     Subd. 3b.  [CAPACITY BUILDING GRANTS.] It may make capacity 
 44.35  building grants to nonprofit organizations, local government 
 44.36  units, Indian tribes, and Indian tribal organizations to expand 
 45.1   their capacity to provide affordable housing and housing-related 
 45.2   services.  The grants may be used to assess housing needs and to 
 45.3   develop and implement strategies to meet those needs, including 
 45.4   the creation or preservation of affordable housing, prepurchase 
 45.5   and postpurchase counseling and associated administrative costs, 
 45.6   and the linking of supportive services to the housing.  The 
 45.7   agency shall adopt rules specifying the eligible uses of grant 
 45.8   money.  Funding priority must be given to those applicants that 
 45.9   include low-income persons in their membership, have provided 
 45.10  housing-related services to low-income people, and demonstrate a 
 45.11  local commitment of local resources, which may include in-kind 
 45.12  contributions.  Grants under this subdivision may be made only 
 45.13  with specific appropriations by the legislature. 
 45.14     Sec. 69.  Minnesota Statutes 1994, section 462A.21, 
 45.15  subdivision 8b, is amended to read: 
 45.16     Subd. 8b.  [FAMILY RENTAL HOUSING.] It may establish a 
 45.17  family rental housing assistance program to provide loans or 
 45.18  direct rental subsidies for housing for families with incomes of 
 45.19  up to ~~60~~ 80 percent of ~~area~~ state median income.  Priority must 
 45.20  be given to those developments with resident families with the 
 45.21  lowest income.  The development may be financed by the agency or 
 45.22  other public or private lenders.  Direct rental subsidies must 
 45.23  be administered by the agency for the benefit of eligible 
 45.24  families.  Financial assistance provided under this subdivision 
 45.25  to recipients of aid to families with dependent children must be 
 45.26  in the form of vendor payments whenever possible.  Loans and 
 45.27  direct rental subsidies under this subdivision may be made only 
 45.28  with specific appropriations by the legislature.  The 
 45.29  limitations on eligible mortgagors contained in section 462A.03, 
 45.30  subdivision 13, do not apply to loans for the rehabilitation of 
 45.31  existing housing under this subdivision. 
 45.32     Sec. 70.  Minnesota Statutes 1994, section 462A.21, 
 45.33  subdivision 21, is amended to read: 
 45.34     Subd. 21.  [COMMUNITY REHABILITATION PROGRAM.] The 
 45.35  agency or its grantees may spend money for the purposes of the 
 45.36  community rehabilitation program authorized under section 
 46.1   462A.206 and may pay the costs and expenses necessary and 
 46.2   incidental to the development and operation of the program.  
 46.3      Sec. 71.  Minnesota Statutes 1994, section 462A.21, is 
 46.4   amended by adding a subdivision to read: 
 46.5      Subd. 22.  [CONTRACT FOR DEED GUARANTEE PROGRAM.] It may 
 46.6   expend money for the purposes of section 462A.2095 and may pay 
 46.7   the costs and expenses necessary and incidental to the 
 46.8   development and operation of the program authorized by section 
 46.9   462A.2095. 
 46.10     Sec. 72.  Minnesota Statutes 1994, section 462A.21, is 
 46.11  amended by adding a subdivision to read: 
 46.12     Subd. 23.  [RENTAL HOUSING.] The agency may spend money for 
 46.13  the purposes of the rental housing program authorized under 
 46.14  section 462A.2097, and may pay the costs and expenses necessary 
 46.15  and incidental to the development and operation of the program. 
 46.16     Sec. 73.  Minnesota Statutes 1994, section 469.0171, is 
 46.17  amended to read: 
 46.18     469.0171 [HOUSING PLAN, PROGRAM, AND REVIEW.] 
 46.19     Prior to the issuance of bonds or obligations for a housing 
 46.20  development project proposed by an authority under section 
 46.21  469.017, the authority shall: 
 46.22     (1) prepare a plan meeting the requirements of section 
 46.23  462C.03, subdivision 1, paragraphs (a) to (d); 
 46.24     (2) obtain review of the plan in the manner provided in 
 46.25  section 462C.04, subdivision 1; and 
 46.26     (3) prepare and submit for review a program as defined in 
 46.27  section 462C.02, subdivision 3, in the manner provided in 
 46.28  section 462C.04, subdivision 2, and section 462C.05, subdivision 
 46.29  5, for the making or purchasing of loans by cities. 
 46.30     The authority shall prepare and submit the report required 
 46.31  under section 462C.04, subdivision 3. 
 46.32     Sec. 74.  Minnesota Statutes 1994, section 504.33, 
 46.33  subdivision 2, is amended to read: 
 46.34     Subd. 2.  [CITY.] "City" means ~~a~~ any statutory or home rule 
 46.35  charter city located within the metropolitan area as defined in 
 46.36  section 473.121, subdivision 2, and any city of the first class 
 47.1   as defined in section 410.01 not included in the previous 
 47.2   definition.  The term "city" also includes, where applicable, a 
 47.3   port authority, economic development authority, a housing and 
 47.4   redevelopment authority, or any development agency established 
 47.5   under chapter 469 which share common boundaries with the city. 
 47.6      Sec. 75.  Minnesota Statutes 1994, section 504.33, 
 47.7   subdivision 3, is amended to read: 
 47.8      Subd. 3.  [DISPLACE.] "Displace" means to demolish, acquire 
 47.9   for or convert to a use other than low-income housing, or to 
 47.10  provide or spend money that directly results in the demolition, 
 47.11  acquisition, or conversion of housing to a use other than 
 47.12  low-income housing. 
 47.13     "Displace" does not include providing or spending money 
 47.14  that directly results in:  (i) housing improvements made to 
 47.15  comply with health, housing, building, fire prevention, housing 
 47.16  maintenance, or energy codes or standards of the applicable 
 47.17  government unit; (ii) housing improvements to make housing more 
 47.18  accessible to a handicapped person; or (iii) the demolition, 
 47.19  acquisition, or conversion of housing for the purpose of 
 47.20  creating owner-occupied housing that consists of no more than 
 47.21  four units per structure. 
 47.22     "Displace" does not include downsizing large apartment 
 47.23  complexes by demolishing less than 25 percent of the units in 
 47.24  the complex or by eliminating units through reconfiguration and 
 47.25  expansion of individual units for the purpose of expanding the 
 47.26  size of the remaining low-income units.  For the purpose of this 
 47.27  section, "large apartment complex" means two or more adjacent 
 47.28  buildings containing a total of 100 or more units per complex. 
 47.29     In any city in the metropolitan area, as defined in section 
 47.30  473.121, subdivision 2, which has met its housing affordability 
 47.31  goals under the metropolitan council's metropolitan development 
 47.32  guide, adopted under section 473.145, "displace" means the 
 47.33  demolition, acquisition, or conversion of housing only for 
 47.34  purposes other than the construction or rehabilitation of 
 47.35  housing. 
 47.36     Sec. 76.  Minnesota Statutes 1994, section 504.34, 
 48.1   subdivision 1, is amended to read: 
 48.2      Subdivision 1.  [ANNUAL REPORT REQUIRED.] A government 
 48.3   unit, or in the case of a government unit located in the 
 48.4   metropolitan area as defined in section 473.121, ~~the government~~ 
 48.5   ~~unit and~~ the metropolitan council, shall prepare a housing 
 48.6   impact report either: 
 48.7      (1) for each year in which the government unit displaces 
 48.8   ten or more units of low-income housing in a city of the first 
 48.9   class as defined in section 410.01; or 
 48.10     (2) when a specific project undertaken by a government unit 
 48.11  for longer than one year displaces a total of ten or more units 
 48.12  of low-income housing in a city of the first class as defined in 
 48.13  section 410.01. 
 48.14     Sec. 77.  Minnesota Statutes 1994, section 504.34, 
 48.15  subdivision 2, is amended to read: 
 48.16     Subd. 2.  [DRAFT ANNUAL HOUSING IMPACT REPORT.] As provided 
 48.17  in subdivision 1, a government unit or in the case of a 
 48.18  government unit ~~participating with~~ located in the metropolitan 
 48.19  area, as defined in section 473.121, subdivision 2, the 
 48.20  metropolitan council subject to this section must prepare a 
 48.21  draft annual housing impact report for review and comment by 
 48.22  interested persons.  The draft report must be completed by 
 48.23  January 31 of the year immediately following a year in which the 
 48.24  government unit has displaced ten or more units of low-income 
 48.25  housing in a city.  For a housing impact report required under 
 48.26  subdivision 1, clause (2), the draft report must be completed by 
 48.27  January 31 of the year immediately following the year in which 
 48.28  the government unit has displaced a cumulative total of ten 
 48.29  units of low-income housing in a city. 
 48.30     Sec. 78.  Minnesota Statutes 1994, section 504.35, is 
 48.31  amended to read: 
 48.32     504.35 [REPLACEMENT HOUSING REQUIRED.] 
 48.33     A government unit which displaces ten or more units of 
 48.34  low-income housing in a city of the first class as defined in 
 48.35  section 410.01 ~~and is subject to section 504.34~~ or in any city 
 48.36  located within the metropolitan area as defined in section 
 49.1   473.121, subdivision 2, must provide the replacement housing 
 49.2   within 36 months following the date of the final annual housing 
 49.3   impact report, unless there is an adequate supply of available 
 49.4   and unoccupied low-income housing units to meet the demand for 
 49.5   the replacement housing in the city where housing has been 
 49.6   displaced by the government unit. 
 49.7      Sec. 79.  [AFFORDABLE NEIGHBORHOOD DESIGN AND DEVELOPMENT 
 49.8   INITIATIVE.] 
 49.9      In order to develop and implement methods of reducing the 
 49.10  total costs of housing units through the innovative use of 
 49.11  technology and planning, the housing finance agency shall 
 49.12  conduct a competition or secure proposals for innovative plans 
 49.13  for the development of housing units affordable to low-income 
 49.14  persons.  The agency shall seek models for use by local units of 
 49.15  government and nonprofit organizations to develop neighborhoods 
 49.16  with small, owner-occupied affordable housing.  The agency may 
 49.17  seek plans that reduce construction costs through technological 
 49.18  advancements, uniform housing designs suitable for use 
 49.19  throughout the state, central purchasing of material or housing 
 49.20  components, or streamlining of regulatory processes for site 
 49.21  planning and land development.  Designs selected become the 
 49.22  property of the state of Minnesota.  The agency may award one or 
 49.23  more premiums in each competition and may pay the costs and fees 
 49.24  that may be required for the conduct of competitions. 
 49.25     Sec. 80.  [REPEALER.] 
 49.26     (a) Minnesota Statutes 1994, sections 462A.21, subdivision 
 49.27  8c; and 298.2211, subdivision 3a, are repealed. 
 49.28     (b) Minnesota Statutes 1994, section 97A.531, subdivisions 
 49.29  5 and 6, are repealed.  Any action of the commissioner of 
 49.30  natural resources under authority of those subdivisions is void. 
 49.31     (c) Laws 1990, chapter 521, section 4, is repealed. 
 49.32     Sec. 81.  [APPLICATION.] 
 49.33     Sections 76 and 77 apply in the counties of Anoka, Carver, 
 49.34  Dakota, Hennepin, Ramsey, Scott, and Washington. 
 49.35     Sec. 82.  [EFFECTIVE DATE.] 
 49.36     Sections 15, subdivision 5; 26 to 29; 33; 41; 53; 57; 59; 
 50.1   60; 62; 67; 72; 73; and 80, are effective the day following 
 50.2   final enactment.  All other provisions are effective July 1, 
 50.3   1995, except that appropriations for fiscal year 1995 are 
 50.4   effective the day following final enactment.